2. Material accounting policies
2.1 Basis of preparation
These standalone financial statements have been prepared in
accordance with Indian Accounting Standards (Ind AS) as per
the Companies (Indian Accounting Standards) Rules, 2015 (as
amended from time to time) and presentation requirements of
Division II of Schedule III to the Companies Act, 2013 (Ind AS
compliant Schedule III).
The accounting policies have been consistently applied except
where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
The standalone financial statements provide comparative
information in respect of the corresponding previous year.
The functional currency of the Company is the Indian rupee.
These standalone financial statements are presented in Indian
rupees. All amounts have been rounded-off to the nearest lakhs,
up to two places of decimal, unless otherwise indicated.
Basis of measurement
The standalone financial statements have been prepared on
a historical cost convention on accrual basis, except for certain
assets and liabilities that are measured at fair values at the
end of each reporting period, as explained in the accounting
policies below.
The Company have prepared the standalone financial statements
on the basis that they will continue to operate as a going concern.
2.2 Summary of material accounting policies
a) Current versus non-current classification
Based on the time involved between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has identified twelve months as
its operating cycle for determining current and non-current
classification of assets and liabilities in the balance sheet.
Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.
b) Investment in subsidiaries, associate and joint venture
A subsidiary is an entity that is controlled by another entity.
An associate is an entity over which the Company has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions
of the investee but is not control or joint control over
those policies.
A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties
sharing control.
The Company's investments in its subsidiaries, associates
and joint ventures are accounted at cost less impairment.
Impairment of investments
The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there is
indication for impairment. If the recoverable amount is less
than its carrying amount, the impairment loss is recorded in
the Statement of Profit and Loss.
When an impairment loss subsequently reverses, the
carrying amount of the Investment is increased to the
revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the cost of the
Investment. A reversal of an impairment loss is recognised
immediately in Statement of Profit or Loss.
c) Property, plant and equipment (‘PPE’)
Recognition and measurement
Property, Plant & Equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. Cost of an item of PPE comprises its purchase
price, including import duties and non-refundable purchase
taxes, after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to its working
condition for its intended use. The cost of a self-constructed
item of property, plant and equipment comprises the cost
of materials and direct labour, any other costs directly
attributable to bringing the item to working condition for
its intended use, and estimated costs of dismantling and
removing the item and restoring the site on which it is
located. If significant parts of an item of property, plant
and equipment have different useful lives, then they are
accounted for as separate items (major components) of
property, plant and equipment.
Capital work-in-progress is stated at cost, net of accumulated
impairment loss, if any. Property, plant and equipment are
stated at cost of acquisition or construction which includes
capitalised finance costs less accumulated depreciation and
accumulated impairment loss, if any.
Recognition criteria
The cost of an item of property, plant and equipment is
recognised as an asset if and only if,
(a) It is probable that future economic benefits associated
with the item will flow to the entity, and
(b) The cost of the item can be measured reliably.
Capital work-in-progress comprises the cost of property,
plant and equipment that are not ready for their intended
use at the reporting date, net of accumulated impairment
loss, if any. Advances paid towards acquisition of PPE
outstanding at each balance sheet date, are shown under
other non-current assets.
Any gain or loss on disposal of an item of property, plant and
equipment is recognised in the statement of profit or loss.
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the
expenditure will flow to the Company and its cost can be
measured reliably with the carrying amount of the replaced
part getting derecognised.
Depreciation
Depreciation is calculated on cost of items of PPE less their
estimated residual values over their estimated useful lives
using the straight-line method and is recognised in the
statement of profit and loss.
The management basis its past experience and technical
assessment has estimated the useful lives, which is at
variance with the life prescribed in Schedule II to the
Companies Act, 2013 and has accordingly, depreciated the
assets over such useful lives.
Depreciation on improvements carried out on buildings
taken on lease is provided for the lease term or useful life of
assets, whichever is lower. Refer lease policy under section of
leases below for period of leases.
On an item of property, plant and equipment discarded
during the year, accelerated depreciation is provided
upto the date on which such item of property, plant and
equipment is discarded.
Depreciation method, useful lives and residual values
are reviewed at each financial year-end and adjusted
if appropriate.
Depreciation on additions (disposal) is provided on a pro¬
rata basis i.e. from (upto) the date on which asset is ready
for use (disposed of).
Derecognition
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected from its use and disposal. Any gain or loss arising
on derecognition of the asset is measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and is recognised in the Statement of
Profit and Loss.
d) Intangible assets
Acquired Intangible
Intangible assets that are acquired by the Company are
measured initially at cost. Cost of an item of Intangible
asset comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended
use. After initial recognition, an intangible asset is carried
at its cost less any /accumulated amortisation and any
accumulated impairment loss.
Amortisation
Amortisation is calculated to write off the cost of intangible
assets over their estimated useful lives using the straight-line
method and is included in depreciation and amortisation
expense in statement of profit and loss. The estimated
useful life of Computer Software (ERP), Business Intelligence
software, Application and Website is 6 years.
Intangible assets with indefinite useful lives such as Brands
are not amortised, but are tested for impairment annually.
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.
Amortisation method, useful life and residual values are
reviewed at the end of each financial year and adjusted
if appropriate.
Derecognition
Intangible assets are derecognised on disposal or when
no future economic benefits are expected from its use
and disposal. Any gain or loss arising upon derecognition
of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is
included in the statement of profit and loss when the asset
is derecognised.
Research and development costs
Research costs are expensed as incurred. Development
expenditures on an individual project are recognised as an
intangible asset when the Company can demonstrate:
> The technical feasibility of completing the intangible
asset so that the asset will be available for use or sale
> Its intention to complete and its ability and intention
to use or sell the asset
> How the asset will generate future economic benefits
> The availability of resources to complete the asset
The ability to measure reliably the expenditure
during development
Following initial recognition of the development
expenditure as an asset, the asset is carried at cost less any
accumulated amortisation and accumulated impairment
losses. Amortisation of the asset begins when development
is complete, and the asset is available for use. It is amortised
over the period of expected future benefit. Amortisation
expense is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of
another asset. During the period of development, the asset
is tested for impairment annually.
e) Inventories
Inventories is valued at cost or net realisable value, whichever
is lower. Cost is determined using the specific identification
method and includes all cost incurred in bringing the
inventories to their present location and condition, including
non-recoverable duties and taxes. Net realisable value
represents the estimated selling price in the ordinary course
of business, less the estimated costs necessary to make the
sale. The comparison between cost and net realisable value
was performed on an item-by-item basis.
During the year ended March 31, 2025, the Company
had changed its method of inventory valuation from the
weighted average cost method to the specific identification
method with effect from June 1, 2024, to ensure
consistency with the system implementation date relating
to inventory tracking and valuation. Accordingly, inventories
purchased on or after this date were valued on an item-by¬
item basis. This change was made considering the nature
of the Company's business in high-value luxury goods with
unique identifiers, where the specific identification method
provided more reliable and relevant information.
Based on management's assessment, the aforesaid change
in accounting policy did not have a material impact on the
financial statements for the year ended March 31, 2025
and was also not material for the previous year.
f) Retirement and other employee benefits
Short-term employee benefits
Short-term employee benefit obligations are measured on
an undiscounted basis and are expensed as the related
service is provided. A liability is recognised for the amount
expected to be paid e.g., salaries and wages and bonus
etc., if the Company has a present legal or constructive
obligation to pay this amount as a result of past service
provided by the employee, and the amount of obligation
can be estimated reliably.
Post-employment benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit
plan under which an entity pays specified contributions
to a separate entity and will have no legal or constructive
obligation to pay further amounts. The Company makes
specified monthly contributions towards employee
provident fund and employee state insurance scheme
(‘ESI') to Government administered scheme which is a
defined contribution plan. The Company's contribution is
recognised as an expense in the Statement of Profit and
Loss during the period in which the employee renders the
related service.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan
other than a defined contribution plan. Gratuity is a defined
benefit plan. The administration of the gratuity scheme has
been entrusted to the Life Insurance Corporation of India
(‘LIC’). The Company's net obligation in respect of gratuity
is calculated separately by estimating the amount of future
benefit that employees have earned in the current and prior
periods, discounting that amount and deducting the fair
value of any plan assets.
The calculation of defined benefit obligation is performed
annually by a qualified actuary using the projected
unit credit method.
Re-measurements of the net defined benefit liability
i.e. Gratuity, which comprise actuarial gains and losses
are recognised in Other Comprehensive Income (OCI).
Remeasurements are not reclassified to profit or loss in
subsequent periods. The Company determines the net
interest expense (income) on the net defined benefit
liability for the period by applying the discount rate used to
measure the defined benefit obligation at the beginning of
the annual period to the then- net defined benefit liability,
taking into account any changes in the net defined benefit
liability during the period as a result of contributions and
benefit payments. Net interest expense and other expenses
related to defined benefit plans are recognised in the
Statement of Profit or Loss.
When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that relates to
past service (‘past service cost' or ‘past service gain') or the
gain or loss on curtailment is recognised immediately in the
statement of profit or loss. The Company recognises gains
and losses on the settlement of a defined benefit plan when
the settlement occurs.
Compensated absences
The Company's net obligation in respect of long-term
employee benefits other than post-employment benefits is
the amount of future benefit that employees have earned
in return for their service in the current and prior periods;
that benefit is discounted to determine its present value,
and the fair value of any related assets is deducted. Such
obligation such as those related to compensated absences
is measured on the basis of an annual independent actuarial
valuation using the projected unit cost credit method.
Remeasurements gains or losses are recognised in profit or
loss in the period in which they arise. The Company presents
the leave liability as a current liability in the balance sheet;
to the extent it does not have an unconditional right to defer
its settlement for 12 months after the reporting date. Where
Company has the unconditional legal and contractual right
to defer the settlement for a period beyond 12 months, the
same is presented as non-current liability.
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