At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the Company assess whether:
• The contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
• The Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and
• The Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, either the Company has the right to operate the asset; or the Company designed the asset in a way that predetermines how and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.
Where the Company is the lessee Right-of-use assets
The Company recognises a right-of-use asset and a lease liability at the lease commencement date except for short-term leases which are less than 12 months and leases of low value assets. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability plus any initial direct costs incurred less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the lease commencement date to the end of the lease term. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, adjusted for certain remeasurements of the lease liability.
Right-of-use assets taken over pursuant to the Composite Scheme from Aditya Birla Fashion and Retail Limited have been depreciated over their remaining estimated term of the lease contract.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise of fixed payments, including in-substance fixed payments. The lease liabilities are measured at amortised cost using the effective interest method.
In addition, the carrying amount of lease liabilities is re-measured if there is a modification arising due to change in the lease term, change in the lease payments or a change in the assessment of an option to purchase the underlying asset. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero and there is a further reduction in measurement of the lease liability.
The Company presents right-of-use assets that do not meet the definition of investment property, and lease liabilities, separately in the Standalone Balance Sheet.
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset is classified as an operating lease. Assets subject to operating leases are included in the property, plant and equipment. Rental income on an
operating lease is recognised in the Standalone Statement of Profit and Loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as an expense in the Standalone Statement of Profit and Loss.
During the previous year, the Company has received Right-of use assets relating to Madura Fashion & lifestyle business pursuant to Composite Scheme. Title deeds of Right-of use assets for leasehold land and leasehold building of ' 10.42 Crores and ' 1471.75 Crores respectively are held in the name of Aditya Birla Fashion and Retail Limited (Demerged Company) (Refer note: 48). As per the scheme of demerger, all the rights of title deeds in the name of Aditya Birla Fashion and Retail Limited (Demerged Company) is vested to Aditya Birla Lifestyle Brands Limited (Resulting Company).
Goodwill relating to Madura Fashion & Lifestyle was taken over pursuant to the Composite Scheme of arrangement between the Company and Aditya Birla Fashion and Retail Limited as approved by the NCLT on March 27, 2025.
Madura Undertaking is a leading premium branded apparel player in India with brands like Louis Philippe, Van Heusen, Allen Solly and Peter England. The Madura Garments division is involved in manufacturing and trading of apparels and other lifestyle products.
The recoverable amount of the CGU as at March 31, 2026, have been determined based on value in use method using cash flow projections from financial budgets approved by senior management covering a three - year period ending March 31, 2029 and cash flow projections for financial years 2030 and 2031 have been extrapolated to demonstrate the tapering of growth rate for computation of perpetual cash flows. The Company has considered a terminal growth rate of 5% to arrive at the value in use to perpetuity beyond March 31, 2031. The post-tax discount rate is applied to discounted future cash flow projections. It is concluded that the carrying value of goodwill does not exceed the value in use. As a result of this analysis, the management did not identify impairment for these CGUs.
Discount rates represent the current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation of the CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both cost of debt and equity. The cost of equity is derived from the expected return on investment by the Company's investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a post-tax discount rate.
Growth rate is based on the Company's projection of business and growth of the industry in which the CGU is operating. The growth rate is in line with the long-term growth rate of the industry. The growth rate of the CGU considers the Company's plan to launch new stores, expected same store growth and change in merchandise.
No reasonable possible change in key assumptions are likely to result in the recoverable amount of the CGU being less than their carrying amount.
1. Aditya Birla Garments Limited (ABGL), a wholly owned subsidiary of the Company was incorporated on June 15, 2022 in compliance with the requirements of ‘Operational Guidelines for the Production Linked Incentive (PLI) scheme for promoting manufacture and sale of Manmade fibre and Textile. The Company has committed to provide support to fund the operations of ABGL in the forseeable future.
Trade receivables are amounts due from customers for goods sold or services provided in the ordinary course of business and reflect the Company's unconditional right to consideration (that is, payment is due only on the passage of time).
Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.
For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
No trade or other receivables is due from directors or other officers of the Company either severally or jointly with any other person.
For terms and conditions relating to related party receivables, refer Note - 45.
Trade receivables are generally non-interest bearing and the credit period generally between 30 to 180 days.
Based on the risk profiling for each category of customer, the Company has not evaluated credit risk where the risk is mitigated by collateral. The Company has evaluated credit risk for departmental, depletion, e-commerce B2B, export and trade customers. The Company follows the simplified approach method for computing the expected credit loss. Additionally, specific provisions are considered taking into account customer related specific information over and above probability of default (PD). Provision matrix takes into account historical credit loss experience adjusted for forward-looking estimates and macro-economic factors. The expected credit loss allowance is based on the ageing of the receivables and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:
Birla Group Holdings Private Limited is the Promoter of the Company as on March 31, 2026.The Promoter and Promoter Group holds an aggregate of 56,87,48,248 Equity Shares, representing 46.60 % of the paid-up equity share capital of the Company as on March 31, 2026.The Promoter and Promoter Group has acquired shareholding in the Company pursuant to the Scheme of Arrangement among ABFRL (“Demerged Company”), Aditya Birla Lifestyle Brands Limited (“the Company”) and their respective shareholders and creditors (“Scheme”). Prior to the Scheme, Aditya Birla Fashion Retail Limited was the promoter of the Company.
The Company has only one class of equity shares having face value of 10 per share. Each holder of an equity share is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders at the ensuing Annual General Meeting.In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution to all preference shareholders. The distribution will be in proportion to the number of the equity shares held by the shareholders.
The description of the nature and purpose of each reserve within other equity is as follows:
Securities premium is used to record the premium on issue of shares. Securities premium is utilised in accordance with the provisions of the Act.
Retained earnings comprise of the Company's accumulated undistributed profits/ (losses) after taxes.
The fair value of the equity-settled share based payment transactions with employees is recognised in Standalone Statement of Profit and Loss with corresponding credit to employee stock options outstanding account. The amount of cost recognised (net of exercise price) is transferred to share premium on exercise of the related stock options.
This reserve is created against the difference in the net assets transferred and issuance of equity share capital in accordance with the Composite Scheme. The reserve will be utilised in accordance with the provision of the Act.
The cumulative balances of gains/ (losses) arising on remeasurements of defined benefit plan is accumulated and recognised within this component of other comprehensive income. Items included in remeasurement gains/ (losses) reserve will not be reclassified subsequently to Standalone Statement of Profit and Loss.
The Board of Directors have recommended a dividend of ' 0.50 per equity share of face value of 10/- each aggregating to ' 61.03 Crore and dividend of 8% on the outstanding preference shares aggregating to ' 0.04 Crore for the financial year 2025-26. The dividend proposed is subject to approval of members in the ensuing Annual General Meeting of the Company.
The Company participates in supplier financing arrangements involving its suppliers and financial institutions. This arrangement allow suppliers to receive early payment for their invoices through the financial institution. The financial institution pays the supplier early at a discounted rate, and the Company settles the outstanding balance directly with the financial institution at the contractual due date agreed with the vendors. No guarantees or collateral are provided under the arrangement.
Key terms and conditions of the arrangement are:
• The financial institution pays the supplier within 2 days from submission.
• The Company pays the financial institution on the contractual due date agreed with the vendors. The Company does not obtain any extended credit terms from the financial institution beyond the contractual due date agreed with the vendors.
* The Company has not provided comparative information in respect of the amendments to Ind AS 7 and Ind AS 107 relating to supplier finance arrangements, as it has applied the transitional relief available on initial adoption of these amendments, which allows entities not to present comparative disclosures for prior period.
There were no material business combinations or foreign exchange differences that would affect the liabilities under the supplier finance arrangement in either period.
The carrying amounts of liabilities under the supplier finance arrangement are considered to be reasonable approximations of their fair values, due to their short-term nature.
In its liquidity assessment, the Company does not see any liquidity risk on account of these supplier financing arrangements, as terms for the Company do not vary materially based on whether the supplier avails such financing arrangements.
Accounting Policy
Revenue from contracts with customers 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 from sale of products
Revenue from sales of products is measured at the amount of transaction price (net of returns, customer incentives, discounts, variable consideration and other similar charges offered by the Company) allocated to that performance obligation.
Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on behalf of the government. Accordingly, it is excluded from revenue.
Assets and liabilities arising from right to return
The Company has contracts with customers which entitles the customer to an right to return.
Right to return assets
A right of return gives an entity a contractual right to recover the goods from a customer (right to return asset), if the customer exercises its option to return the goods and obtain a refund. The asset is measured at the carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods.
Refund liabilities
A refund liability is the obligation to refund part or all of the consideration received (or receivable) from the customer. The Company has therefore recognised refund liabilities in respect of customer's right to return. The liability is measured at the amount the Company ultimately expects it will have to return to the customer. The Company updates its estimate of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period.
The Company has presented its right to return assets and refund liabilities under other current assets and other current liabilities, respectively.
Income from gift voucher
Gift voucher sales are recognised when the vouchers are redeemed, and the goods are sold to the customer.
Loyalty points programme
The Company operates a loyalty programme which allows customers to accumulate points on purchases made in retail stores. The points give rise to a separate performance obligation as it entitles them for redemption as settlement of future purchase transaction price. Consideration received is allocated between the sale of products and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of points is determined based on the historical trends. Transaction price allocated to reward points is deferred and recognised when points are redeemed or when the points expire. The amount of revenue is based on the value of points redeemed/ expired.
Income from services
Income from services is recognised as they are rendered based on agreements/ arrangements with the concerned parties, and recognised net of goods and services tax/ applicable taxes.
Export incentives income
Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty with respect to its recoverability.
Licence fees and royalties
Royalty and licensing revenue is received from customers for usage of the Group's brand name. Revenue is recognised over time based on the terms of contracts with the customer.
Commission income
In case of sales of goods, where the Company is an agent in the transaction, the difference between the revenue and the cost of the goods sold is disclosed as commission income under other operating income.
(i) On November 21, 2025, the Government of India notified 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 (together referred to as the Labour Code), consolidating 29 existing labour laws. The Company has assessed impact of the Labour Code based on the available information and recognised past service cost on gratuity, amounting to ' 48.97 crores (Contractual : ' 35.09 Crore and Non-contractual : ' 13.88 Crore), arising on account of revised definition of wages. The said past service cost has been presented as an ‘exceptional item' in standalone financial statements for the year ended March 31, 2026. Management continues to monitor the developments relating to the implementation of the Labour Code and will review the estimates as further clarifications are issued and the Rules are notified.
(ii) Exceptional items for the period ended March 31, 2025 includes provision for impairment of goodwill, right-of-use assets, franchisee rights and Inventory Obsolescence amounting to ' 98.33 Crore pursuant to restructuring of operations of a business unit.
Basic EPS amounts are calculated by dividing the profit/(loss) 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/(loss) attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year 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 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.
Following the effectiveness of the Composite Scheme of Arrangement (refer Note 48), Management is actively executing the necessary legal and regulatory procedures to transfer the existing fund and its underlying assets from the name of Aditya Birla Fashion and Retail Limited (ABFRL) into the name of the Company.
The gratuity plan is fully funded through annual contributions to an Insurer Managed Fund administered by the Life Insurance Corporation of India under its Gratuity Scheme.
The following tables summarise the components of net benefit expense recognised in the Standalone Statement of Profit and Loss and Standalone Balance Sheet
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated using the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.
The Company is expected to contribute ' 32.63 Crore to the gratuity fund during the year ended March 31, 2027. (March 31, 2026 : 24.03 Crores)
The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8 years. (March 31, 2025 : 8 years)
Risk exposure
Through its defined benefit plans, Company is exposed to number of risks, the most significant of which are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to yields of government securities; if plan assets underperform this yield, this will create a deficit. Plan asset investments for gratuity are made in pre-defined insurance plans. These are subject to risk of default and interest rate risk. The fund manages credit risk/ interest rate risk through continuous monitoring to minimise risk to an acceptable level.
Inflation Risk
The present value of the defined benefit plan liability is sensitive to future salary growth assumptions. The obligation is calculated based on projected salaries of employees, which incorporate expected inflation and career progression. If actual salary increase is higher than the assumed, the defined benefit obligation will rise, leading to an increase in the plan liability.
Life Expectancy
The present value of the defined benefit plan liability is calculated by reference to the best estimates of the mortality of plan participants both during and after their employment. An increase in life expectancy of the plan participants will increase the plan's liability.
Provident Fund: Contributions are made mainly to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
Employees’ State Insurance: Employees' State Insurance is a state plan applicable to employees of the Company whose salaries do not exceed a specified amount. The contributions are made on the basis of a percentage of salary to a fund administered by government authority. The obligation of the Company is limited to the extent of contributions made on a monthly basis.
Superannuation Fund: Certain executive staff of the Company participate in Superannuation Fund, which is a voluntary contribution plan.
The Company has no further obligations to the plan beyond its monthly contributions to the Superannuation Fund, the corpus of which is administered by a Trust belonging to demerged company and is invested in insurance products.
National Pension Scheme: Certain executive staff of the Company participate in National Pension Scheme, which is a voluntary contribution plan. The Company has no further obligations to the plan beyond its monthly contributions to a fund administered by a pension fund manager appointed by Pension Fund Regulatory and Development Authority.
In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL') Employee Stock Option Schemes, comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock options and Restricted Stock Units (RSUs) of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the above ESOP Scheme which was approved on May 23, 2025.
Options and RSUs granted under the plan carry no dividend or voting rights. Upon exercise, each option/ RSU is convertible into one equity share. Options and RSUs granted under the Scheme shall have remaining Vesting Period and Exercise Period of corresponding outstanding options/ RSUs of ABFRL.
Share options outstanding at the end of the year have expiry dates ranging from September 7, 2026 till February 01, 2027 and exercise prices ranging from ' 53.50 to ' 58.30.
Weighted average remaining contractual life of options outstanding at end of the year is 0.45 years.
There are no RSUs outstanding at the end of the year relating to this scheme.
The options granted under this Scheme is continued to be settled by ABFRL Employee Welfare Trust. The Trust holds and transfer the shares of the Company to the eligible employees upon exercise of the options, in accordance with the terms of the Scheme and applicable regulatory provisions.
Weighted average remaining contractual life of options outstanding at end of the year is 1.81 years.
RSUs outstanding at the end of the year have expiry dates ranging from December 1, 2027 till September 19, 2030 and exercise prices of ' 6.73.
Weighted average remaining contractual life of RSUs outstanding at end of the year is 2.48 years.
Eligible employees of the Company were granted Stock options by Aditya Birla Fashion and Retail Limited under Aditya Birla Fashion and Retail Limited Employee Stock Option Scheme 2019 (“Scheme 2019”). As per the Composite Scheme of Arrangement (refer Note 48), the Employees of the Company continues to be entitled to the Options/RSUs granted by ABFRL post demerger of the MFL undertaking under the Composite Scheme.
The options granted under this Scheme continues to be settled by ABFRL Employee Welfare Trust. The Trust holds and transfers the shares of ABFRL to the eligible employees upon exercise of the options, in accordance with the terms of the Scheme and applicable regulatory provisions.
In accordance with the Composite Scheme of Arrangement, the Exercise Price per Option has been adjusted, based on the fair and reasonable adjustments made to the options granted to the Eligible Employees under the Stock Option Schemes.
Under the plan, participants are granted options and RSUs with graded vesting over 3 years of service from the grant date. Once vested, the options and RSUs remain exercisable for a period of 5 years. Options and RSUs carry no dividend or voting rights. Upon exercise, each option or RSUs are convertible into one equity share. The Scheme is administered by the Aditya Birla Lifestyle Brands Limited Employee Welfare Trust. Upon exercise, the Trust transfers the shares to the eligible employees.
# In accordance with the Composite Scheme of Arrangement, the Exercise Price per Option and RSU has been adjusted, based on the fair and reasonable adjustments made to the options and RSUs granted to the Eligible Employees under the Stock Option Schemes. Such adjustments have been made to the weighted average exercise price per option/RSU from opening grants.
Share options outstanding at the end of the year have expiry dates ranging from December 1, 2026 till December 27, 2030 and exercise prices ranging from ' 53.66 to ' 108.16.
Weighted average remaining contractual life of options outstanding at end of the year is 1.84 years.
Options (RSUs) outstanding at the end of the year have expiry dates ranging from December 1, 2027 till September 19, 2030 and exercise price of ' 3.27.
Weighted average remaining contractual life of Options (RSUs) outstanding at end of the year is 2.5 years.
On November 4, 2025, the Nomination and Remuneration Committee and the Board of Directors (“Board”) of the Company, approved introduction of Employee Stock Option Scheme, viz. Aditya Birla Lifestyle Brands Limited Employee Stock Option Scheme 2025 (“Scheme 2025”), for issue of Stock Options in the form of Options (“Options”) and/or Restricted Stock Units (“RSUs”) to the identified employees. Shareholders of the Company, vide a resolution passed at the Annual General Meeting of the Company, held on September 23, 2025, approved the introduction of the Scheme and authorised the Board/ NRC to finalise and implement the Scheme.
Share options outstanding at the end of the year have expiry dates ranging from November 3, 2031 till February 1, 2034 and exercise prices ranging from ' 102.97 to ' 136.20.
Weighted average remaining contractual life of options outstanding at end of the year is 6.6 years.
Options RSUs outstanding at the end of the year have expiry dates ranging from November 3, 2033 till February 1, 2034 and exercise price of ' 10.
Weighted average remaining contractual life of RSUs outstanding at end of the year is 7.61 years.
The fair value at grant date of options granted during the year ended 31 March 2026 was in the range of ' 43.95 to ' 64.57 and ' 97.26 to ' 130.39 for RSUs. The fair value at grant date is independently determined using the Binomial Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
(a) Exercise price: ' 102.97 to ' 136.20 for options; ' 10 for RSUs
(b) Grant date: 1 November 2025 and 2 February 2026
(c) Share price at grant date: ' 102.97 and ' 136.20
(d) Expected price volatility of the company's shares: 27.94% to 29.47%
(e) Expected dividend yield: 0%
(f) Risk-free interest rate: 6.56% to 7.01%
In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL') TCNS Employee Stock Option Scheme 2024, comprising certain employees of ABFRL were entitled to an equal number of stock options of ABLBL. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the ABLBL formulated the above ESOP Scheme which was approved on May 23, 2025. Options granted under the plan carry no dividend or voting rights. Upon exercise, each option is convertible into one equity share of ABLBL. Options granted under the Scheme shall have remaining Vesting Period and Exercise Period of corresponding outstanding options of ABFRL.
In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL') Stock Appreciation Rights Scheme 2019 (‘SAR 2019'), comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock appreciation rights of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the Stock Appreciation Rights Scheme which was approved on May 23, 2025. Upon exercise, eligible employees of the Company and of ABFRL are entitled to cash payment by the Company. SAR granted under the Scheme shall have remaining Exercise Period of corresponding outstanding SARs of ABFRL.
In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL') Stock Appreciation Rights Scheme 2024 (‘SAR 2024'), comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock appreciation rights of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the Stock Appreciation Rights Scheme which was approved on May 23, 2025. Upon exercise, eligible employees of the Company and of ABFRL are entitled to cash payment by the Company. SAR granted under the Scheme shall have remaining Exercise Period of corresponding outstanding SARs of ABFRL.
*The weighted average share price at the date of exercise of SAR options during the year was ' 134.45 and ' 127.94 for SAR RSUs.
Certain employees of the Company were granted Stock Appreciation Rights by Aditya Birla Fashion and Retail Limited under Aditya Birla Fashion and Retail Limited Stock Appreciation Rights 2019 (“SAR 2019”). In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL') SAR 2019 continued to held such SAR which is to be settled by ABFRL.When exercisable, each SAR entitle to a cash payment to the respective employees. The Company treats such SARs as equity settled as the entity has no obligation to settle the share-based payment transaction.
SAR options outstanding at the end of the year have expiry dates ranging from August 04, 2026 till November 07, 2028 and exercise prices ranging from ' 67.48 to ' 108.16.
Weighted average remaining contractual life of SARs(options) outstanding at end of the year is 1.38 years.
SAR RSUs outstanding at the end of the year have expiry dates ranging from August 17, 2027 till November 07, 2028 and exercise price of ' 3.27.
Weighted average remaining contractual life of SAR RSUs outstanding at end of the year is 1.84 years.
The Company has entered into agreements for taking on lease certain land/ office/ store premises, warehouses, factories, property, plant and equipment on lease and licence basis. The lease term is for periods ranging from 3 to 21 years, with escalation clauses in the lease agreements. Consistent with Industry practice, the Company has contracts which have fixed rentals or variable rentals based on a percentage of sales in the stores, or a combination of both.
The initial non-cancellable period of the lease agreement pertaining to stores are upto 3 years, beyond which there is an option for the Company to continue the lease, which the Company expects to continue for a period of 2 years after the initial non-cancellable period, accordingly 5 years has been considered as the lease term of the stores. Post such period, the Company has the option to exit the lease by giving a notice period and the Company assesses its intention to continue considering location and other economic factors associated with the lease arrangement.
Total net cash outflow for leases for the year ended March 31, 2026 is ' 1453.89 Crore. (March 31, 2025 is ' 1,405.66 Crore)
In accordance with its capital expenditure strategy, the Company is engaged in a sale and leaseback transaction involving certain assets, including furniture and fixtures, and office equipment.
Some property leases contain variable payment terms that are linked to sales generated from a store. For certain individual stores, upto 100% of lease payment are on the basis of variable payment terms. Variable payment terms are used for a variety of reasons, including minimising the fixed cost base for newly established stores. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occur. Sensitivity analysis of the variable lease payments on the profit/ (loss) before tax is as discussed below :
The Company's pending litigations primarily comprise of claims relating to indirect taxes. These includes matters pertains to customs duty representing obligations under the export promotion capital goods (EPCG) scheme benefits obtained on the import of goods against export obligations; excise duty involving demands raised on account of reversal of CENVAT credit upon sale of capital goods and commercial taxes, covering cases relating to shortfall in submission of statutory forms (F, H, I and C), disallowance of input tax credit and other related issues.
The Company has reviewed all its pending litigations and proceedings, and has adequately provided for where provisions are required and disclosed the contingent liabilities in its standalone financial statements where financial outflow is not probable. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its standalone financial statements. In respect of certain disputes in nature of service tax, Kerala surcharge,shortfall in submission of statutory forms (F, H, I and C) and certain other litigations, where the management's assessment of a financial outflow is probable, the Company is carrying a provision of ' 50.02 Crore as at March 31, 2026 (March 31, 2025 : ' 50.02 Crore) (Refer Note: 29).
The Company has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. The Company has made provision as required under the accounting standards for material foreseeable losses on derivative contracts as at March 31, 2026.
ABFRL, demerged company, received a GST demand of ' 308 Crores (including penalty of ' 227 Crores). Demand mainly relates to availment of ineligible credit, irregular availment of ITC and non payment of GST on ISD invoices . Management of ABFRL has filed a writ petition against the said demand with the Honorable High Court of Karnataka on April 30, 2026. Management of ABFRL and the Company have determined that approximately ' 272 Crores out of the said demand pertains to the Madura Fashion and Lifestyle division (MFL division) for periods prior to the demerger of the MFL division into the Company. In accordance with the Scheme of Arrangement, ABFRL shall take necessary steps to substitute the Company in proceedings before the authorities and all the related costs, liabilities and obligations incurred by ABFRL in this regard shall be reimbursed by the Company.Based on an evaluation carried out with the assistance of an external legal counsel and internal indirect tax experts, management is of the view that the likelihood of any outflow of economic resources in respect of this matter is remote.
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables and cash and cash equivalents that arise directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree policies for managing each of these risks, which are summarised below:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price 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 the market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. As at March 31, 2026, approximately 39% (March 31, 2025 : 58%) of the Company's borrowings are at a fixed rate of interest.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings taken at floating rates. With all other variables held constant, the Company's profit/ (loss) before tax is affected through the impact on floating rate borrowings, as follows:
The assumed movement in interest rates for interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in the prior years.
ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities denominated in foreign currency.
The Company manages foreign currency risk by hedging its transactions using foreign currency forward contracts. The foreign exchange forward contracts are not designated as cash flow hedges, and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 1 to 6 months. As at March 31, 2026, the Company has hedged Nil (March 31, 2025 : Nil) receivables in foreign currency and has hedged 99% (March 31, 2025 : 98%) of its payables in foreign currency.
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. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
The Company only deals with parties which has good credit rating given by external rating agencies or based on the Company's internal assessment.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable dues where recoveries are made, these are recognised as income in the Standalone Statement of Profit and Loss.
The Company is exposed to credit risk from its operating activities (primarily trade receivables and security deposits). Trade receivables
Customer credit risk is managed by each business unit, subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed, and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. As at March 31, 2026, the Company has 28 customers (March 31, 2025 : 24 customers) that owed the Company more than ' 5.00 Crore each and account for approximately 81% (March 31, 2025 : 75%) of all the receivables outstanding. There are 187 customers (March 31, 2025 : 158 customers) with balances greater than ' 0.50 Crore upto ' 5.00 Crore each and account for approximately 13% (March 31, 2025 : 12%) of the total amounts receivable.
An impairment analysis is performed at each reporting date on the basis of sales channel. In addition, a large number of immaterial receivables are grouped into homogeneous groups and assessed for impairment collectively. The calculation is based on losses based on historical data.
The Company's maximum exposure to credit risk for the components of the Standalone Balance Sheet as at March 31, 2026 and March 31, 2025 , is the carrying amount as provided in Note - 15.
Credit risk from balances with banks is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
The Company monitors its risk of shortage of funds. The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures. Approximately, 30.50% of the Company's debt will mature in less than one year (March 31, 2025 : 99.88%) based on the carrying value of borrowings reflected in the financial statements. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to various sources of funding.
The Company's objective, when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholder's expectations. The policy of the Company is to borrow funds through banks/ financial institutions supported by committed borrowing facilities to meet anticipated funding requirements. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirement of financial markets.
The capital structure is governed by policies approved by the Board of Directors, and is monitored by various metrics. Funding requirements are reviewed periodically with any debt issuances.
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations, to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.
The Company is leader in apparels in the country and has a diversified portfolio of brands.
The Company has no investment in mutual funds and other similar financial asset at March 31, 2026 and accordingly is not exposed to price risk.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings.
During the year, the Company has not defaulted on any loans payable, and there have been no breach of any financial covenants attached to the borrowings.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2026.
The Board at its meeting held on April 19, 2024, subject to necessary approvals, considered and approved the demerger of the Madura Fashion and Lifestyle division (‘MFL division') under a Scheme of Arrangement between Aditya Birla Fashion and Retail Limited (‘Demerged Company') and the Company. The Scheme received sanction from the Hon'ble NCLT on March 27, 2025 and a certified copy of the order was received on April 22, 2025 (“Order”). The Company and the Demerged Company filed the certified copy of the Order and the Scheme with the Registrar of Companies, Mumbai, making the Scheme effective from May 1, 2025.
The financial statements of the Company for the year ended March 31, 2025 included the results of operation, cash flows and financial affairs of the MFL Division. On May 26, 2025, the Company allotted 1,22,02,94,773 fully paid-up equity shares of face value ' 10/- each, to the shareholders of the Demerged Company as on the record date i.e. May 22, 2025, in the share exchange ratio 1:1 i.e. 1 (one) fully paid-up equity share of the Company having face value of ' 10/- each for every 1 (one) fully paid-up equity share of ' 10/- each of the Demerged Company, in accordance with the terms of the Scheme.
The equity shares of the Company were listed on BSE Limited and the National Stock Exchange of India Limited on June 23, 2025.
Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the company. The company's business activity falls within a single operating business segment of Branded Apparels (Garments and Accessories).
The Company measures financial instruments, such as investments (other than equity investments in subsidiaries) and derivatives at fair value at each Standalone Balance Sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(a) In the principal market for the asset or liability; or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use, or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances, and for which sufficient data are available to measure the fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on its nature, characteristics and risks:
• Level 1 - inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
• Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
Transactions and balances:
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.
Foreign exchange gains and losses arising on foreign currency borrowings are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other income/other expenses, as appropriate.
Government grants are recognised where there is a reasonable assurance that the grant will be received and all attached conditions will be complied with:
• When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
• When the grant relates to an asset, it is recognised as income in Statement of Profit and Loss in equal amounts over the expected useful life of the related asset.
When loans or similar assistance are provided by governments or related institutions, at a below-market rate of interest, the effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised and measured at fair value, and the government grant is measured as the difference between the proceeds received and the initial carrying value of the loan. The loan is subsequently measured as per the accounting policies applicable to financial liabilities.
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 Standalone 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.
(e) 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 tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except when the deferred tax liability arises from the initial recognition of goodwill or an asset or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
The Company had adopted the new tax regime as per Section 115BAA of the Income Tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019.
Current tax and deferred tax relating to items recognised outside the Standalone Statement of Profit and Loss are recognised outside the Standalone Statement of Profit and Loss (either in OCI or in equity). Current tax and deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Freehold land is carried at historical cost. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Property, plant and equipment is stated at cost net of accumulated depreciation and accumulated impairment losses, if any. Cost includes borrowing costs for long-term construction projects, if the recognition criteria is met.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company, and the cost of the item
can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognised when replaced. All other repairs and maintenance are charged to the Standalone Statement of Profit and Loss, during the reporting period in which they are incurred.
Capital work-in-progress is stated at cost net of accumulated impairment losses, if any.
Based on managements' assessment, items of property, plant and equipment individually costing less than five thousand rupees, are depreciated within one year from the date the asset is ready to use or useful life of class of asset to which these assets belong.
Gains or losses on disposal of property, plant and equipment are determined by comparing proceeds with carrying amount. These are included in the Standalone Statement of Profit and Loss within other gains/ losses.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Intangible assets are stated at cost less accumulated amortisation and impairment. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in the Standalone Statement of Profit and Loss, in the period in which the expenditure is incurred.
Intangible assets with finite life are amortised over the useful economic life and assessed for impairment, whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period and changes if any, are made on a prospective basis. The amortisation expense on intangible assets with finite lives is recognised in the Standalone Statement of Profit and Loss.
Intangible assets with indefinite useful life are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Standalone Statement of Profit and Loss when the asset is de-recognised.
Business Combinations are accounted for using the acquisition method. Cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. Acquisition-related costs are recognised in Standalone Statement of Profit and Loss as incurred.
At the acquisition date, the identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair values. However, certain assets and liabilities i.e. deferred tax assets or liabilities, assets or liabilities related to employee benefit arrangements, liabilities or equity instruments related to share-based payment arrangements and assets or disposal groups that are classified as held for sale, acquired or assumed in a business combination are measured as per the applicable Ind-AS.
Judgement is applied in determining the acquisition date and determining whether control is transferred from one party
to another. Control exists when the Company is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive.
At the acquisition date, goodwill on business combination is initially measured at cost, being the excess of the sum of the consideration transferred, the amount recognised for any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net identifiable assets acquired and the liabilities assumed.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired in a business combination is allocated to each of the Company's cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
A cash-generating unit (CGU) to which goodwill has been allocated is tested for impairment annually as at reporting date. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
At the end of each reporting period, the Company reviews the carrying amounts of its assets to determine whether there is any indication of impairment based on internal/ external factors. An impairment loss, if any, is charged to the Standalone Statement of Profit and Loss in the year in which an asset is identified as impaired. An asset's recoverable amount is higher of an asset's or cash-generating unit's (CGUs) fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rates, that reflects current market assessment of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses are recognised in the Standalone Statement of Profit and Loss.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually as at reporting date. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in the Standalone Statement of Profit and Loss.
Reversal of impairment losses, except on goodwill, is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased. An impairment loss recognised for goodwill is not reversed in subsequent periods.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value, except for trade receivables which do not contain significant financing component are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through the Standalone Statement of Profit and Loss are recognised immediately in the Standalone Statement of Profit and Loss.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognised on the trade date.
All recognized financial assets, are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories:
(a) Non-derivative financial assets
(i) Financial assets at amortised cost
Financial asset is measured at amortised cost using Effective Interest Rate (EIR), if both the conditions are met:
• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
• The contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Effective Interest Rate (EIR) method:
The EIR method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument or, where appropriate, a shorter period, to the gross carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at Fair Value Through Profit or Loss (FVTPL). Interest income is recognised in the Standalone Statement of Profit and Loss and is included in the ‘Other income' line item.
(ii) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)
An instrument shall be measured at FVTOCI, if both of the following conditions are met:
• The objective of the business model is achieved by both collecting contractual cash flows and selling financial assets; and
• The asset's contractual cash flows represent Solely Payments of Principal and Interest (SPPI).
Financial assets included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction cost. Fair value movements are recognised in other comprehensive income. However, the Company recognises interest income, impairment losses and reversals and foreign exchange gain/ (loss) in the Standalone Statement of Profit and Loss. On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to the Standalone Statement of Profit and Loss.
(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL)
Financial assets that do not meet the amortised cost criteria or FVTOCI criteria (refer above) are measured at FVTPL. In addition, financial assets that meet the amortised cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at FVTPL.
A financial asset that meets the amortised cost criteria or financial assets that meet the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognised in the Standalone Statement of Profit and Loss. The net gain or loss recognised in the Standalone Statement of Profit and Loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Other income' line item. Dividend on financial assets at FVTPL is recognised when the Company's right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.
Call options over shares in the acquired subsidiary is initially recognised as a financial asset at fair value, with subsequent changes in fair value recognised in the standalone statement of profit and loss.
(iv) Equity investments
Investment in Subsidiaries is out of scope of Ind AS 109 and hence, the Company has accounted for its investment in Subsidiaries at cost. All other equity investments are measured at fair value as per Ind AS 109. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company has an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to the Standalone Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Impairment of financial assets:
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Expected credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all
cash shortfalls), discounted at the original effective interest rate (or credit adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the lifetime expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.
If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period, but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous period, the Company again measures the loss allowance based on 12-month expected credit losses.
When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.
For trade receivables or any contractual right to receive cash or another financial asset that results from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix, which takes into account historical credit loss experience and adjusted for forward looking information.
The impairment requirements for the recognition and measurement of a loss allowance are equally applied to debt instruments at FVTOCI except that the loss allowance is recognised in OCI and is not reduced from the carrying amount in the Standalone Balance Sheet.
The Company determines whether it is necessary to recognise an impairment loss on its investment in its subsidiaries. At each reporting date, the Company determines whether there is objective evidence that the investment in the subsidiaries is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the subsidiaries its carrying value, and then recognises the impairment loss in the standalone statement of profit and loss.
(b) Non-derivative financial liabilities
(i) Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
(1) Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in the Standalone Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
(2) Compound financial instruments:
The component parts of compound financial instruments (convertible notes) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date.
(3) Financial liabilities:
All financial liabilities are measured at amortised cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.
Financial liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading, if:
• It has been acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or
• On initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or
• It is a derivative that is not a financial guarantee contract or designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading may, be designated as at FVTPL upon initial recognition, if:
• Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;
• The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company's documented risk management or investment strategy, and information about the Company is provided internally on that basis; or
• It forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contracts to be designated as at FVTPL in accordance with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in the Standalone Statement of Profit and Loss.
However, financial liabilities that are not held-for-trading and are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in the Standalone Statement of Profit and Loss, in which case these effects of changes in credit risk are recognised in the Standalone Statement of Profit and Loss. The remaining amount of change in the fair value of liability is always recognised in the Standalone Statement of Profit and Loss. Changes in fair value attributable to a financial liability's credit risk that are recognised in other comprehensive income are reflected immediately in other comprehensive income under other equity and are not subsequently reclassified to the Standalone Statement of Profit and Loss.
Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are designated by the Company as at fair value through profit or loss are recognised in the Standalone Statement of Profit and Loss.
Financial liabilities subsequently measured at amortised cost:
Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ‘Finance costs' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the gross carrying amount on initial recognition.
(ii) Loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Standalone Statement of Profit and Loss over the period of borrowings using the EIR method. Fees paid on the establishment of loan facilities are recognised as the transaction cost of the loan to the extent it is probable that some or all of the facility will be drawn down, the fees are deferred until the draw down occurs. To the extent that there is no evidence that is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity and amortised over the period of facility to which it relates.
Preference shares, which are mandatorily redeemable on a specific date, are classified as liabilities. The dividends on these preference shares are recognised in the Standalone Statement of Profit and Loss as ‘Finance costs'.
(iii) Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.
• For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised in the Standalone Statement of Profit and Loss, except for those which are designated as hedging instruments in a hedging relationship.
• For the purposes of recognising foreign exchange gains and losses, FVTOCI financial assets are treated as financial assets measured at amortised cost. Thus, the exchange differences on the amortised cost are recognised in the Standalone Statement of Profit and Loss, and other changes in the fair value of FVTOCI financial assets are recognised in OCI.
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised in ‘Other income'.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in the Standalone Statement of Profit and Loss.
De-recognition of financial assets and financial liabilities
The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for the amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable, and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in the Standalone Statement of Profit and Loss.
On de-recognition of a financial asset other than in its entirety (for example: when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in the Standalone Statement of Profit and Loss. A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts.
The Company de-recognises financial liabilities only when the Company's obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability de-recognised and the consideration paid and payable is recognised in the Standalone Statement of Profit and Loss.
Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount is reported in the Standalone Balance Sheet where there is a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business.
The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks and options contract in accordance with agreement. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Standalone Statement of Profit and Loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to the Standalone Statement of Profit and Loss when the hedge item affects the Standalone Statement of Profit and Loss or treated as basis adjustment, if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability.
Raw materials, components, stores and spares, and packing materials are valued at lower of cost or net realisable value.
However, these items are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost. Cost includes cost of purchase and other costs in bringing the inventories to their present location and condition. Cost is determined on weighted average cost basis.
Traded goods, work-in-progress and finished goods are valued at cost or net realisable value, whichever is lower. Work-in-progress and finished goods include costs of direct materials, labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing cost. Traded goods cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
Proceeds in respect of sale of raw materials/ stores are credited to the respective heads. Obsolete and defective inventory are duly provided for, basis the management estimates.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss, net of any reimbursements.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
A present obligation that arises from past events, where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company (Refer Note - 44).
Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.
Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
(a) Short-term employee benefits
Short-term employee benefits are recognised as an expense on accrual basis.
(b) Defined contribution plan
The Company makes defined contribution to the Government Employee Provident Fund and Superannuation Fund, which are recognised in the Standalone Statement of Profit and Loss, on accrual basis. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related service. The Company has no obligation, other than the contribution payable to the provident fund.
(c) Defined benefit plan
The Company operates a defined benefit gratuity plan in India. The Company operates gratuity plan through a Trust wherein certain employees are entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service as per the Payment of Gratuity Act, 1972. In case of some employees, the Company's scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972. The benefit vests after five years of continuous service and the same is payable on termination of service or retirement, whichever is earlier. The gratuity plan is funded (maintained by an independent insurance company) hence the liability has been categorized as funded. The Company's liabilities under The Payment of Gratuity Act, 1972 are determined on the basis of actuarial valuation made at the end of each financial year using the projected unit credit method. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Standalone Balance Sheet date on Government bonds, where the terms of the Government bonds are consistent with the estimated terms of the defined benefit obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in the ‘Employee benefits expense' in the Standalone Statement of Profit and Loss. Re-measurement gains or losses and return on plan assets (excluding amounts included in net Interest on the net defined benefit liability) arising from changes in actuarial assumptions are recognised in the period in which they occur, directly in OCI. These are presented as re-measurement gains or losses on defined benefit plans under other comprehensive income in other equity. Remeasurements gains or losses are not reclassified subsequently to the Standalone Statement of Profit and Loss.
(d) Compensated absences
The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the unutilised accumulating compensated absences and utilise it in future periods or receive cash at retirement or termination of employment. The Company records an obligation for compensated absences in the period in which the employee renders the services that increases this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognises accumulated compensated absences based on actuarial valuation in the Standalone Statement of Profit and Loss.
The Company presents the entire leave as a current liability in the Standalone Balance Sheet, since it does not have any unconditional right to defer its settlement for twelve months after the reporting date.
Certain employees of the Company have been granted stock-based awards, including stock options, stock appreciation rights (SARs), and restricted stock units (RSUs) of Aditya Birla Fashion and Retail Limited (Demerged Company), in accordance with the ESOP Policy of ABFRL. In compliance with Ind AS 102 - Share-based Payments, the Company has
accounted for these awards using the graded vesting method. The Grant date fair value of equity-settled awards has been used for the purpose of accounting the related expenses. SARs are remeasured at fair value at each balance sheet date, with changes recognized in the Statement of Profit and Loss.
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the period.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. Earnings, considered in ascertaining the Company's earnings per share, is the net profit for the period after deducting preference dividends. The weighted average number of equity shares outstanding during the period is adjusted for treasury shares and events such as bonus issue, bonus element in a rights issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
Cash and cash equivalents in the Standalone Balance Sheet and for the purpose of the Standalone Statement of Cash Flows comprise cash on hand and cash at bank including fixed deposits with original maturity period of three months or less and short-term highly liquid investments with an original maturity of three months or less net of outstanding bank overdrafts as they are considered an integral part of the Company's cash management.
Acquisition of business under common control has been accounted in accordance with “Pooling of interest method”, as specified below:
(a) All assets and liabilities acquired are stated at their carrying values as appearing in the financial statements of de-merged company
(b) Shares held by the de-merged company in the Company shall be cancelled
(c) Difference between the carrying amounts of assets and liabilities acquired, face value of the shares cancelled as referred to in (b) above and the amount recorded as share-capital issued to the shareholders of the de-merged company shall be transferred to capital reserve; and
(d) Financial information relating to the acquired business has been accounted from the beginning of the financial year, as if the acquisition had occurred from that date.
No proceedings have been initiated on or are pending against the Company under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder.
The Company has complied with the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with Companies (Restriction of number of layers) Rules, 2017.
The Company has no transactions with or balances due to or from companies struck off under Companies Act, 2013 or Companies Act, 1956.
During the period, the Company was not granted working capital loans secured by current assets; therefore, it was not required to file quarterly statements with any banks or financial institutions.
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
The company has not entered into any scheme of arrangement which has an accounting impact on current financial year
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) orb. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any funds 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 on behalf of the ultimate beneficiaries.
There is no income surrendered or disclosed as income during the current year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
The Company has not traded or invested in crypto currency or virtual currency during the current year.
The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) and Intangible assets during the current year. The Company did not have any Investment Property during the current year.
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.