Provisions, Contingent Liabilities and Contingent Assets

Provisions are measured at the Present value of the
management's best estimate (these estimated are
reviewed at each reporting date and adjusted to reflect
the current best estimate) of the expenditure required to
settle the present obligation at the end of reporting
period. Provisions involving substantial degree of
estimation in measurement are recognized when there
is a present obligation as a result of past events and it is
probable that there will be an outflow of resources.

Contingent liabilities are disclosed only 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 which is not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle the obligation or
estimate of the amount cannot be measured reliably.

No contingent asset is recognized but disclosed by way
of notes to accounts only when its recognition is virtually
certain.

2.22 Revenue Recognition

Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the company and
the revenue can be reliably measured, regardless of
when the payment is being made. Amount of sales are
net of goods and service tax, sale returns, trade
allowances and discounts.

To determine whether to recognize revenue, the
company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to the performance
obligations

5. Recognising revenue when/as performance
obligation(s) are satisfied.

The company considers the terms of the contract and its
customary business practice to determine the
transaction price.

In all cases, the total transaction price is allocated
amongst the various performance obligations based on
their relative standalone selling price. The transaction
price excludes amounts collected on behalf of third
parties. The consideration promised include fixed
amounts, variable amounts, or both.

Revenue is recognised either at a point in time or over
time, when (or as) the company satisfies performance
obligations by transferring the promised goods or
services to its customers.

For each performance obligation identified the
company determines at contract inception whether it
satisfies the performance obligation over time or
satisfies the performance obligation at point in time. If
any entity does not satisfy a performance obligation
over time, the performance obligation is satisfied at a
point in time.

A receivable is recognised where the company's right to
consideration is unconditional (i.e. any passage of time
is required before payment if the consideration is due).
When either party to a contract has performed, an entity
shall present the contract in the balance sheet as
contract asset or contract liability, depending on the
relationship between the entity's performance and the
customer's payment.

While this represents significant new guidance, the
implementation of this new guidance had no impact on
the timing or amount of revenue recognised by the
company in any year.

Company continues to account for export benefits on
accrual basis.

Other Income

All other income is recognized on accrual basis when no
significant uncertainty exists on their receipt.

Interest Income

Interest income from a financial asset is recognized
when it is probable that the economic benefits will flow
to the company and the amount of income can be
measured reliably. Interest is accrued on time
proportion basis, by reference to the principle
outstanding at the effective interest rate.

Dividends

Income from dividend on investments is accrued in the
year in which it is declared, whereby the company’s
right to receive is established.

2.23 Foreign Currency Conversions/Transactions

Foreign Currency Transactions are recorded at the
exchange rates prevailing on the date of the
transactions. Gains and losses arising out of
subsequent fluctuations are accounted for on actual
payments or realisations as the case may be. Monetary
assets and liabilities denominated in foreign currency as
on Balance Sheet date are translated into functional
currency at the exchange rates prevailing on that date
and Exchange differences arising out of such
conversion are recognised in the Statement of Profit
and Loss.

2.24 Income Taxes

Income tax expense for the year comprises of current
tax and deferred tax. It is recognised in the Statement of
Profit and Loss except to the extent it relates to any
business combination or to an item which is recognised
directly in equity or in other comprehensive income.

a) Current Tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the tax authorities. The tax rates and
tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting
date.

Current income tax relating to items recognized
outside statement of profit or loss is recognized
outside statement of profit or loss (either in other
comprehensive income or in equity). Current tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to
interpretation and establishes provisions where

b) Deferred Tax

Deferred tax is provided using the liability method 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 assets are recognized for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax

assets are recognized 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 utilized.

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 utilized. Unrecognized
deferred tax assets are re-assessed at each reporting
date and are recognized 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 realized 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 relating to items recognized outside
statement of profit or loss is recognized outside
statement of profit or loss. Deferred tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.

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
company Group and the same taxation authority.

2.25 Employee Benefits

i) 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 recognized for the amount expected to be
paid under performance related pay 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 obligation can be estimated
reliably.

ii) Post-Employment benefits

Employee benefit that are payable after the
completion of employment are Post-Employment
Benefit (other than termination benefit). Company
has identified two types of post employment benefits:
a) Defined Contribution Plans

Defined contribution plans are those plans in
which the company pays fixed contribution into
separate entities and will have no legal or
constructive obligation to pay further amounts.
Provident Fund and Employee State Insurance
are Defined Contribution Plans in which
company pays a fixed contribution and will have
no further obligation beyond the monthly

contributions and are recognised as an expenses
in Statement of Profit & Loss.
b) Defined Benefit Plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan.

Company pays Gratuity as per provisions of the
Gratuity Act, 1972. The Company’s net
obligation in respect of defined benefit plans is
calculated separately for each plan by estimating
the amount of future benefit that employees have
earned in return for their service in the current
and prior periods; that benefit to employees is
discounted to determine its present value.

The calculation is performed annually by a
qualified actuary using the projected unit credit
method. The net interest cost is calculated by
applying the discount rate to the net balance of
the defined benefit obligation and the fair value of
plan assets. This cost is included in employee
benefit expense in the statement of profit and
loss. Any actuarial gains or losses pertaining to
components of re-measurements of net defined
benefit liability/(asset) are recognized in OCI in
the period in which they arise. The calculation is
performed annually by a qualified actuary using
the projected unit credit method. The net interest
cost is calculated by applying the discount rate
to the net balance of the defined benefit
obligation and the fair value of plan assets. This
cost is included in employee benefit expense in
the statement of profit and loss. Any actuarial
gains or losses pertaining to components of re¬
measurements of net defined benefit
liability/(asset) are recognized in OCI in the
period in which they arise.

Company provided for compensated absences
which are expected to occur within twelve
months after the end of the period in which the
employee renders the related services are
recognised as undiscounted liability at the
balance sheet date. Compensated absences
which are not expected to occur within twelve
months after the end of the period in which the
employee renders the related services are
recognised as an actuarially determined liability
at the present value of the defined benefit
obligation at the balance sheet date.

2.26 Borrowing Cost

Borrowing cost include interest calculated using the
effective interest method, amortization of ancillary costs
and other costs the company incurs in connection with
the borrowing of funds. Borrowing costs directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalized during

the period of time that is necessary to complete and
prepare the asset for its intended use or sale. A
qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use.
Capitalisation of borrowing costs is suspended in the
period during which the active development is delayed
due to, other than temporary, interruption. All other
borrowing costs are charged to the statement of profit
and loss as incurred.

2.27 Earning Per Share

Basic Earning Per Share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, net profit after tax during the year and the
weighted average number of shares outstanding during
the year are adjusted for the effect of all dilutive potential
equity shares.

2.28 Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.
Company as Lessee

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets.

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

Right of Use Assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any measurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the lease
term.

Lease Liability

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.

The lease payments include fixed payments less any
lease incentives receivable. Variable lease payments
that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition
that triggers the payment occurs.

In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in
the lease payments or a change in the assessment of an
option to purchase the underlying asset.

Short Term Lease & Leases of Low Value Assets

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 of office equipment
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.

2.29 Statement of Cash Flows

Statement of cash flows is prepared in accordance with
the Indirect method prescribed in Ind AS-7 ‘Statement
of Cash Flows'.

2.30 Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,
ultimate collection of the grant/subsidy is reasonably
certain 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 equal amounts
over the expected useful life of the related asset.

2.31 Segment Reporting

The company is engaged in “the business of designing,
manufacturing, branding and retailing of apparel
accessories and footwear for womens and mens which
in the context of Ind AS 108 “Operating Segment" is
considered as the only segment and the Executive
Management Committee does not monitors the
operating results of its business units separately for the
purpose of making decisions about resource allocation
and performance assessment.

2.32 Standards issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. There are no new Standards
that became effective during the year. Amendments
that became effective during the year did not have any
material effect. On March 31,2023, MCA amended the
Companies (Indian Accounting Standards) Amendment
Rules, 2023, as below

Ind AS 1— Presentation of Financial Statements

The amendments require the entities to disclose their
material accounting policies rather than their significant
accounting policies

Ind AS 8 - Accounting Policies, changes in
accounting estimates and Errors

This amendement has introduced a definition of
accounting estimates and includes amendement to IND
AS 8 to help entities distinguish changes in accounting
policies from changes in accounting estimates.

Ind AS 12 -Income Taxes

This amendment has narrowed the scope of the initial
recognition exemption so that it does not apply to
transactions that give rise to equal and offsetting
temporary differences.

The effective date for adoption of these amendments is
annual periods beginning on or after April 1,2023