1.11. Provisions and Contingent liabilities
The Company recognises provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources will be required and the amount of outflow can be reliably estimated. If the effect of time value of money is material, provisions are discounted using a current pre¬ tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may but probably will not require an outflow of resources or the amount of such outflow cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.
1.12. Employee benefitsDefined Contribution Plans
Employee benefits in the form of Provident Fund, Employees' State Insurance and Labour Welfare Fund are considered as defined contribution plans. The Company has no obligation beyond its contributions to such funds.
Contributions to defined contribution plans are recognised as an expense in the Statement of Profit and Loss in the period in which the employees render the related services. If the contribution payable for services received before the reporting date exceeds the contribution already paid, the deficit is recognised as a liability. Conversely, if the contribution already paid exceeds the contribution due for services received before the reporting date, the excess is recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
Defined Benefit Plans
The Company operates a funded gratuity scheme for eligible employees. The gratuity obligation is a defined benefit plan and is determined through an independent actuarial valuation at each reporting date using the Projected Unit Credit Method.
The liability recognised in the Balance Sheet in respect of gratuity represents the present value of the defined benefit obligation less the fair value of plan assets.
Current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss in the period in which they arise. Net interest on the net defined benefit liability/(asset) is also recognised in the Statement of Profit and Loss.
Remeasurements of the net defined benefit liability/(asset), comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest) and the effect of the asset ceiling, if any, are recognised immediately in Other Comprehensive Income and
are not subsequently reclassified to the Statement of Profit and Loss.
The liability recognised in the Balance Sheet in respect of gratuity represents the net present value of the defined benefit obligation less the fair value of plan assets. For the purpose of balance sheet presentation, the net defined benefit liability/(asset) is bifurcated into current and non¬ current portions. To determine these portions, the fair value of plan assets is first allocated to offset the current defined benefit obligation (the amount expected to be settled within the next twelve months as per actuarial valuation). Any remaining fair value of plan assets is subsequently allocated against the non-current defined benefit obligation. The resulting net shortfalls are presented as current and non-current provisions respectively.
Short-Term Employee Benefits
Short-term employee benefits are recognised as an expense in the period in which the related services are rendered. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay such amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Accumulated leave expected to be utilised within twelve months after the end of the reporting period is treated as a short-term employee benefit and is measured at the undiscounted amount expected to be paid.
Other Long-Term Employee Benefits
Accumulated leave that is not expected to be wholly utilised within twelve months after the reporting period is treated as an other long-term employee benefit.
The obligation in respect of such benefits is determined through an independent actuarial valuation using the Projected Unit Credit Method at each reporting date. Actuarial gains and losses arising on remeasurement of such obligations are recognised immediately in the Statement of Profit and Loss and are not deferred.
The liability for long-term compensated absences is presented as current or non-current based on the actuarial valuation at the reporting date and the expected timing of settlement of the obligation.
1.13. Segment information
Segments are identified based on the manner in which the Chief Operating Decision Maker ('CODM') decides about resource allocation and reviews performance. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
1.14. Revenue recognition
Revenue from contracts with customer is recognised upon transfer of control of promised goods/services to customers at an amount that reflects the consideration to which the Company expect to be entitled for those goods/ services.
To recognize revenues, the Company applies the following five-step approach:
- Identify the contract with a customer;
- Identify the performance obligations in the contract;
- Determine the transaction price;
- Allocate the transaction price to the performance obligations in the contract; and
- Recognise revenues when a performance obligation is satisfied.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
Goods and Service Tax (GST) is not received by the Company in its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.
Revenue from merchandise sold through concession stores located within the Company's retail outlets is recognized on a gross basis under Retail sales. The Company acts as the principal in these arrangements because it obtains control of the specified goods prior to their transfer to the end customer. Control is evidenced by the Company holding primary responsibility for fulfilling the promise to provide the goods to the retail customer, assuming inventory risk (including
shrinkage and unreturned merchandise), and having latitude in establishing the final selling prices to the customer.
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognised as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).
Income from services are recognised as they are rendered based on agreements/ arrangements with the concerned parties, and recognised net of goods and services tax/ applicable taxes.
Interest Income is recognised on an accrual basis using effective interest rate (EIR) method.
Revenue in respect of Insurance and other claim is recognised only on reasonable certainty of its recovery.
1.15. Government grants
Government grants related to revenue expenditure are recognized when there is reasonable assurance that the Company will comply with the conditions attached to the grant and the grant will be received. Such grants are recognized in the Statement of Profit and Loss on a systematic basis over the periods in which the related costs are recognized. The grants are presented as a deduction from the related expense.
1.16. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur in the Statement of Profit and Loss.
Borrowing cost includes interest and other costs incurred in connection with the arrangement of borrowings. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the interest costs.
1.17. Income taxes Current tax
The Income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in India.
The management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Standalone Financial Statements and the corresponding tax bases used in the computation of taxable profit in accordance with the applicable tax laws. Deferred tax assets and liabilities are generally recognised for all deductible and taxable temporary differences respectively. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit or does not give rise to equal taxable and deductible temporary differences, deferred tax assets or liabilities are not recognised. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognised. Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. The Company recognises a deferred tax asset arising from unused tax losses or tax credits only to the extent it has a sufficient taxable temporary difference or there is convincing evidence that sufficient taxable profits willbe available. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax assets to be utilized. Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Uncertain tax positions:
The management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company reflects the effect of uncertainty for each uncertain tax treatment by using one of two methods, the expected value method (the sum of the probability - weighted amounts in a range of possible outcomes) or the most likely amount (single most likely amount method in a range of possible outcomes), depending on which is expected to better predict the resolution of the uncertainty. The Company applies consistent judgements and estimates if an uncertain tax treatment affects both the current and the deferred tax.
Presentation of current and deferred tax:
Current and deferred tax are recognised as income or an expense in the Standalone Statement of Profit and loss, except when they relate to items that are recognised in Other Comprehensive Income, in which case, the current and deferred tax income/ expense are recognised in Other Comprehensive Income. The Company offsets tax assets and liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
1.18. Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company's earnings per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
1.19. Exceptional Items
An item of income or expense which by its size, type or incidence is material & requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the Financial Statements.
1.20. Share Issue Expenses
Incremental costs directly attributable to the issue of new equity shares are recognised as a deduction equity, net of any related income tax benefit, in accordance with Ind AS 32. Costs relating to an offer for sale of shares by existing shareholders are borne by those shareholders and are not recognised by the Company.
1.21. Investment in Subsidiary
Investment in the subsidiary is carried at cost less accumulated impairment losses. Where an investment is disposed of, the difference between net disposal proceeds and the carrying amount is recognised in the Standalone Statement of Profit and Loss.
2.1 Key accounting judgments, estimates and assumptions
The preparation of the Standalone Financial Statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities effected in future periods.
Critical accounting estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:
a) Income taxes
Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.
b) Useful lives of property, plant & equipment and intangible assets
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, the usage of the asset, expected physical wear and tear, the operating conditions of the asset, anticipated technological changes or a change in market demand of the product or service output of the asset, manufacturers warranties and maintenance support, etc.
c) Defined Benefit Obligation
The costs of providing post-employment benefits are charged to the Standalone Statement of Profit and loss in accordance with Ind AS 19 'Employee benefits' over the period during which benefit is derived from the employees' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.
d) Assessment of potential markdown inventory
The Company at each reporting date makes an assessment of potential markdown due to aged inventory. In doing so, it estimates the
net realisable value of aged inventory based on historic trend of sale of such/ similar aged inventory. Further, it also estimates the provision for shrinkage based on past trends which it believes is more than or near to actual shrink to be booked as and when stores are counted.
e) Incremental borrowing rate for leases
The Company cannot readily determine the interest rate implicit in the lease; therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company 'would have to pay', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.
f) Estimation of lease term and assessment of renewal options
The Company reassesses the lease term of its store leases based on management's assessment of the period over which it is reasonably certain to exercise renewal or termination options, considering relevant factors including historical trends, store performance and future business plans. Changes in such estimates may result in a significant impact on the measurement of right-of-use assets and corresponding lease liabilities. The key assumptions and estimates relating to lease terms are reviewed periodically and updated when there is a change in facts and circumstances. Further details are disclosed in Note 30.2.
2.2 Recent Pronouncements
Ministry of Corporate Affairs ("MCA") has notified amendments to the existing standards Ind AS 12 - Income Taxes relating to international tax reforms
- Pillar Two Model Rules, Ind AS 21 - The Effect of Changes in Foreign Exchange Rates, Ind AS 107
- Financial Instruments: Disclosures, and Ind AS 7 - Statement of Cash Flows relating to disclosure of supplier financing arrangements, which are applicable for reporting periods beginning on or after April 1, 2025. The Company has assessed that there is no significant impact on its financial statements with respect to these amendments.
Standards notified but not yet effective
Amendments to Ind AS 1 (Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants) and Ind AS 10 (Events after the Reporting Period): Ind AS 10 has been amended to remove the previous treatment under which a lender's post-reporting date waiver—granted before the financial statements were approved for issue— of a breach of a material covenant in a long-term loan arrangement that occurred on or before the end of the reporting period, resulting in the liability becoming payable on demand at the reporting date, was regarded as an adjusting event.
For annual reporting periods beginning on or after April 1, 2026, any breach of a covenant—whether material or immaterial—occurring on or before the reporting date will, in accordance with Ind AS 1, require the related liability to be classified as current, unless the lender has granted a waiver of the breach on or before the reporting date and has agreed not to demand repayment for at least 12 months after the reporting date as a consequence of the breach. Such a waiver shall be treated as an adjusting event.
The amendments are effective for annual reporting periods beginning on or after April 1, 2026, retrospectively in accordance with Ind AS 8. The Company will adopt these amendments to the standards when they become effective and is currently evaluating their potential impact on the financial statements.
b) Terms / rights attached to equity shares:
The Company has only one class of equity shares having a par value of C5 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) The Company does not have any Holding Company / Ultimate Holding Company.
f) Note on bonus issue of equity shares
The Company has issued and allotted 2,61,31,392 bonus shares on July 2, 2021 to the equity shareholders in the ratio of 6 (six) fully paid-up equity shares of face value of C10 each for every existing 1 (one) fully paid up equity share of the face value C10 each, held by the members as at July 2, 2021, the Record Date, by capitalisation of a sum of ' 2,613.14 lakhs from and out of Securities Premium account of the Company.
g) No ordinary shares have been reserved for issue under options and contracts/commitments for sale of shares/ disinvestment as at the reporting date.
h) No Calls are unpaid by any Director or Officer of the Company during the year ended March 31,2026 and year ended March 31, 2025.
Nature and purpose of other reservesa) Securities premium
Securities premium is used to record the premium received on issue of shares. The securities premium can be utilised only in accordance with the provisions of the Companies Act, 2013.
b) Capital reserve
Capital reserve pertain to business combinations, which occurred prior to transition date of Ind AS.
c) Retained earnings
Created from the profit/ (loss) of the Company, as adjusted for distribution to owners, transfers to other reserves, etc.
(e) Commercial premises in the building "Euphoria", comprising Ground Floor (North-West Side) and 1st Floor (East-West Side), located at Holding No. 643/449, Benimadhab Road (Dangalpara), Suri, PS - Suri, PO - Suri, District - Birbhum, West Bengal.
(f) Commercial apartments being Flat Nos. 3, 4, and A5, located at Premises No. 68, Ward No. 011, Sri Aurobindo Road, District - Howrah, PS - Golabari, under Howrah Municipal Corporation, Pin - 711106.
(g) All that piece and parcel of land containing an area of 29.46 sataks equivalent to an area of 17 Cottahs 13 Chittaks 3 Ganda be the same a little more or less lying situate at Mouza Pirojpur, J.L. No. 69, S.R. Malda, Police Station - English Bazar, within English Bazar Municipality, under ward no. 6, Holding no. 81/26/27, 24/28, R.S. Dag Nos. 625 and 624, L.R. Dag NO. 4026, R.S. Khaitan Nos. 676 and 672 corresponding to L.R. Khaitan Nos. 5672, 921,6965, 6125, 3765 and 6964, District - Malda, Pin-732101, owned by the company.
17.1 Nature of security
Cash Credit, Working Capital Demand Loan and Term Loan facilities are secured by a first pari-passu charge by way of hypothecation over the entire current assets of the Company, both present and future, shared equally among all member banks. In addition, these borrowings are further secured by a pari-passu hypothecation charge over the entire movable fixed assets of the Company, both present and future. This excludes assets specifically financed by other lenders, and motor vehicles, if any.
First pari-passu charge by way of equitable mortgage over the following immovable properties, all standing in the name of the Company:-
(a) A commercial property with a covered area of 1,968 sq. ft. and super built-up area of 2,361.6 sq. ft., and a covered area of 2,235 sq. ft. and super built-up area of 2,682 sq. ft., located on the 1st Floor of the building "Lalanalaya Apartment", Holding No. 239/192 295/209, Ward No. 20, Hoogly Chinsurah Municipality, RS Dag Nos. 3448 & 3449, RS Khatian No. 181, JL No. 20, PS - Chinsurah, District - Hooghly.
(b) A residential flat at Snehalata Abasan, 4th Floor, Flat Nos. 2 & 3, Holding No. 137, Pilkhana Road, P.O. & P.S. - Berhampore, District - Murshidabad, West Bengal, admeasuring 1,243 sq. ft.
(c) Commercial land and building located at Mouza - Gobinda Sarak, Parganas - Ukkhra, JL No. 94, comprising RS Khatian No. 354, LR Khatian Nos. 5591 to 5596, RS Dag No. 532, LR Dag No. 620, Ward No. 20, Holding Nos. 37, 38, now 65, under Krishnanagar Municipality, PS - Krishnanagar, District - Nadia, with a super built-up area of 11,400 sq. ft.
(d) Commercial complex named "Venus Plaza", comprising Ground Floor, 1st Floor, and 2nd Floor, situated at Holding No. AN21BOLO18211, Bolpur-Sriniketan Road, Bolpur, PS - Bolpur, PO - Bolpur, District - Birbhum, West Bengal - 731204.
31.1 Loss due to fire and settlement of insurance claims:
On May 20, 2024, a fire at the Company's erstwhile central warehouse located in Serampore, Hooghly, West Bengal resulted in significant damage to inventory as well as property, plant and equipment. The Company is adequately insured against such losses and had lodged insurance claims with the insurer.
For the year ended March 31, 2025, the Company recognised a loss of C5,085.21 lakhs in respect of inventory and C424.57 lakhs relating to property, plant and equipment. Based on the assessment of insurance policy coverage and management's evaluation at that time, an insurance claim receivable of C4,731.34 lakhs was recognised. These amounts were presented on a net basis, resulting in a net exceptional loss of C1,075.60 lakhs for the year ended March 31, 2025, inclusive of related input tax credits.
On July 8, 2025, the insurance claim relating to property, plant and equipment amounting to C424.57 lakhs was settled at C347.97 lakhs (including C57.98 lakhs realised from salvage), resulting in an additional exceptional loss of C76.60 lakhs, which was recognised during the year ended March 31, 2026.
Subsequently, on April 14, 2026, the Company received communication from the insurer confirming settlement of the inventory claim for an aggregate amount of C2,300.15 lakhs, which was accepted by the Company and received on April 29, 2026. Consequently, the balance insurance claim receivable of C2,064.60 lakhs has been written off and recognised as an exceptional loss for the year ended March 31,2026.
31.2 Reassessment of Lease Term
(a) During the year ended March 31,2026, the Company reassessed its lease term estimates for store leases in accordance with Ind AS 116. This reassessment reflects the evolving nature of the Company's store portfolio, informed by historical trends and future strategic plans. Lease term estimates have been revised to better align with the period over which management reasonably expects to exercise renewal options under lease contracts.
This reassessment, based on business decision, led to changes in the measurement and recognition of Right-of-Use (ROU) assets (including associated security deposits) and corresponding lease liabilities, resulting in an exceptional gain of C5,525.90 lakhs (net of tax impact C4,135.14 lakhs). The ROU Assets and Lease Liabilities were reduced by C31,920.08 lakhs and C36,783.78 lakhs respectively as on July 1, 2025.
EPS excluding the above exceptional gain (net of tax) stood at C0.74 for the year ended March 31, 2026.
34. Earnings per share
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the period plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.
(b) Capital commitments:
Capital commitments of as at March 31,2026 C 127.67 lakhs; March 31, 2025 C 785.67 lakhs.
36 . On November 21, 2025 the Government of India notified four Labour Codes namely the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (Collectively referred as the "Labour Codes"), which subsume 29 existing labour laws. The Ministry of Labour and Employment has issued draft Central Rules and FAQs to facilitate evaluation of the impact arising from the implementation of the said Codes.
The Company has assessed the impact of the Labour Codes based on the best information currently available and in accordance with the guidance issued by the Institute of Chartered Accountants of India. Accordingly, the Company has recognised impact of C 133.59 lakhs, which has been presented under "Exceptional Items" for the year ended March 31, 2026. However, the Company continues to monitor the notification of the final Central and State Rules and other related clarifications and will recognise any impact, if applicable, in the period in which the relevant provisions become effective.
*Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these towards the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.
38. Segment information
In the opinion of the management, there is only one reporting segment "Retail Sales" as envisaged by Ind AS 108 "Operating Segments". The Company is operating only in India and there is no other significant geographical segment. They are reviewed regularly by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.The Company operates solely in India and does not have any revenue or non-current assets outside India. Further, no single customer accounts for 10% or more of the Company's revenue during the year.
39. Corporate Social Responsibility (CSR)
In accordance with the provisions of section 135 of the Companies Act 2013, the Board of Directors of the Company had constituted a Corporate Social Responsibility (CSR) Committee. In terms with the provisions of the said Act, the Company was required to spend a sum of ' 76.44 lakhs and '40.36 lakhs towards CSR activities during the year ended March 31, 2026 and March 31,2025 respectively. The detail of amount spent is as follows:
There is no unspent amount at the end of the year to be deposited in specified fund of Schedule VII under section 135(5) of the Companies Act, 2013.
As there are no ongoing CSR projects under Section 135(6) of the Companies Act, 2013, the disclosure under the said section is not applicable.
40. Employee benefit obligations (a) Defined contribution plan
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident and Pension Fund, Employee State Insurance ('ESI') and others which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are recognised in the Standalone Statement of Profit and Loss as they accrue.
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
(i) Interest Rate risk:
The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
(ii) Liquidity Risk:
This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non- availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
(iii) Salary Escalation Risk:
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
(iv) Demographic Risk:
The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
(v) Regulatory Risk:
Gratuity benefit is paid in accordance with the requirements of Chapter V (Gratuity) of the Code on Social Security, 2020 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20,00,000).
(vi) Asset Liability Mismatching or Market Risk:
The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/ fall in interest rate.
(vii) Investment Risk:
The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
(b) Defined benefit plan Gratuity
The Company operates a gratuity plan through a Trust wherein eligible employees are entitled to a benefits equivalent to fifteen days' wages last drawn for each completed year of service, in compliance with the Code on Social Security, 2020. In accordance with the Code's standardized definition of wages, the calculation base is mandated to comprise a minimum of 50% of the employee's total Cost to Company (CTC). In cases where the Company's internal scheme provides more favorable terms than the minimum obligations under the Code, the more favorable terms are applied. The benefits are payable on termination of service, resignation, or retirement, whichever occurs earlier. For regular permanent employees, the benefits vest after five years of continuous service. The gratuity plan is funded. Details are provided below:
43. Capital risk management
The Company's objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term. Net debt (total borrowings less cash and cash equivalents) to equity ratio is used to monitor capital.
44. Fair value hierarchy
The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). Fair value of the financial instruments is classified in various fair value 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 including 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 valuation techniques which maximize 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. and
• Level 3: Inputs for the assets or 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 input being the discount rate that reflects the credit risk of counterparty. This is the case with listed instruments where market is not liquid and for unlisted instruments.
44.1 There are no transfers between levels during the year.
45. Fair value of financial assets and financial liabilities:
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
46. Financial risk management objectives and policies
The Company's activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
a) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. To manage this, the Company periodically assesses financial reliability of customers and other counterparties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy.
The Company maintains its cash and cash equivalents and other bank balances with approved banks and financial institutions. The Company deals only with counterparties having a good credit rating from external rating agencies or considered to have an acceptable credit profile based on the Company's internal assessment. The balances are maintained with such counterparties within the limits approved by the Company.
Financial assets are written off when there is no reasonable expectations of recovery.
The Company is exposed to credit risk from primarily security deposits, deposits with banks. For exposure refer note 44.2.
b) Liquidity risk
It 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 always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
c.ii) Product price risk
In a potentially inflationary economy, the Company expects periodical price increases across its retail product lines. Product price increases which are not in line with the levels of customers' discretionary spends, may affect the business/retail sales volumes. In such a scenario, the risk is managed by offering judicious product discounts to retail customers to sustain volumes. The Company negotiates with its vendors for purchase price rebates such that the rebates substantially absorb the product discounts offered to the retail customers. This helps the Company protect itself from significant product margin losses. This mechanism also works in case of a downturn in the retail sector, although overall volumes would get affected.
c) Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices.
Market risk comprises two type of risks:
i) Interest Rate Risk
ii) Product Price Risk c. i) 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 of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates. The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on
49. Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company did not have any transactions with struck-off companies.
(iii) The Company did not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial year.
(v) 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.
(viii) Title deeds for immovable properties are held in the name of the Company.
(ix) The Company did not have any transaction which was not recorded in the books of account that was 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.
(x) 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.
(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.
(xii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
50 . The Board of Directors, at its meeting held on January 20, 2026, approved the issuance of up to 1,01,00,000 equity share warrants of face value C5 each on a preferential basis to a non-promoter body corporate, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBI ICDR Regulations"), which was subsequently approved by the shareholders at the extra-ordinary general meeting held on February 13, 2026.
Each warrant is convertible into one fully paid-up equity share at an issue price of C328.25 per warrant (including a premium of C323.25), aggregating to C33,153.25 lakhs, assuming full conversion.
On April 2, 2026, the Company allotted 1,01,00,000 warrants and received 25% of the issue price (C8,288.31 lakhs) as upfront consideration. The balance 75% is payable upon conversion within 18 months, failing which the warrants shall lapse and the upfront amount shall be forfeited.
On May 15, 2026, the Company received C3,692.81 lakhs towards 75% of the consideration for conversion of 15,00,000 warrants, with the remaining 25% already received at the time of allotment. Accordingly, these warrants have been converted into an equivalent number of fully paid-up equity shares at the aforesaid issue price.
The proceeds from the preferential issue shall be utilised towards (a) repayment and/or prepayment of borrowings, (b) capital expenditure for opening of new stores, and (c) general corporate purposes.
The issue and resulting equity shares are subject to applicable provisions of the SEBI ICDR Regulations, the Companies Act, 2013 and other applicable laws.
51 . Audit Trail
The Company has used Ginesys - ERP, Lease Fix, FAMS - Fixed Assets Management, Infor - WMS, Exactlly - HRMS and Supplymint software for maintaining its books of account. The software provides an audit trail (edit log) facility, which was operational throughout the year for all relevant transactions recorded, except for the instances stated below. The audit trail feature has not been tampered with in respect of the accounting software(s) where it was enabled. Further, the audit trail has been preserved in accordance with statutory requirements for record retention, wherever enabled in previous years.
The audit trail (edit log) facility was not enabled at the database level to capture direct data changes in respect of five accounting software applications.
53. Certain items in the financial statement for previous year may have been reclassified or regrouped to align with the presentation for the current year. These changes have been made to enhance the quality of information disclosed and do not impact the previously reported profit or total equity.
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