2.21 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) CurrentTax
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 ordirectly 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 remeasurements 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 Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, it 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 shortterm 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 noncancellable 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 or useful Iife of assets which ever is lower.
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 items 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 and subsidies are recognised when there is reasonable assurance that the company will comply with the conditions attached to them and the grants/subsidy will be received.
Government Grant whose primary condition is that the company should purchase, construct or otherwise aquire capital assets are presented by adding them to the carrying value of Assets. The grant is recognized as income over the life of depreciable asset by way of transferring balance from deferred revenue income to other income."
2.31 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.
(iv) Terms / rights attached to Equity Shares
The Company has only one class of equity shares having a par value of ? 2/- per share. Every member holding equity shares therein shall have voting rights in proportion to his shares of the paid up equity share capital. The Company declares and pay dividend in Indian rupees.
In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(v) Split of Shares
The Board of Directors of the Company at their meeting held on 12th August, 2023 had considered and approved the Stock Split/ Sub-Division of every 1 equity share of the Nominal/Face value of ? 10/- each into 5 equity shares of the Nominal/Face value of ? 2/- each and the same has been approved by the shareholders of the Company at the Annual General Meeting held on September 28,2023. Further the Board of Directors of the Company at their meeting held on 21st October, 2023 has approved the Record Date November 02, 2023, for the stock split. Post record date, equity shares increased from 1,63,27,608 shares to 8,16,38,040 shares. Accordingly Number of Equity Shares as on 31st March, 2023 has been restated.
(vi) Preferential Issue:
a) On 18th January, 2024, the Board of Directors of the Company approved a Preferential Issue of 20,00,000 fully paid up Equity Shares of face value of ?2/- each, for cash, at a price of ? 252/- per Equity Share (including a premium of ? 250/-per Equity Share) amounting to ? 5040.00 Lakhs, to Think India Opportunities Master Fund LP, an exempted limited partnership formed under the laws of Cayman Islands situated at United Kingdom by way of preferential allotment on private placement basis in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) regulations, 2018 (“ICDR Regulations”) as amended and other applicable laws.
b) The Company received the approval of the Shareholders in its extra ordinary general meeting (EGM) held on 14th February, 2024.
c) On 22nd February, 2024, the Board of Directors approved the allotment to the Investor on receipt of consideration aggregating to? 5040 Lakhs towards 20,00,000/-fully paid up equity shares @ ?252/- each, of which ? 2/- is towards face value and ? 250/- towards premium.
(vii) No shares have been issued by the company for consideration other than cash, during the period of five years immediately preceding the reporting periods. Further, no shares are reissued for use under options and contracts or commitment for sale of shares or disinvestment.
25. Borrowings (Current) (Cont...)
(i) STANDARD CHARTERED BANK
Interest payable @three month MIBOR 1.81% p.a. to be applied on daily balances on the Overdraft Facility.
Primary Security : Hypothecation of entire Present and Future current assets of the company on Pari Passu basis with HDFC Bank, Axis Bank and State Bank of India.
Colletaral Security: On industrial Land & Building bearing at plot No. 359,360 & 361 Phase 4B, HSIIDC Industrial Estate, Bahadurgarh (Haryana) Pari Passu with HDFC Bank, Axis Bank and State Bank of India by way of Equitable Mortgage.
Personal Guarantee of Mr. Vijay Bansal (CMD) and Mr. Deepak Bansal (Whole Time Director).
(ii) STATE BANK OF INDIA
Interest payable @ MCLR (6 months) 8.40% 0.5%, i.e. 8.90% p.a. effectively chargeable on monthly rests, to be applied on daily balances of the cash credit facility.
Primary Security: First Pari-Passu Charge alongwith HDFC Bank, Standard Chartered Bank and Axis Bank by hypothecation over company's entire current assets such as stocks of raw material, stock-in-process, Finished goods, stores & Spares of garment manufacturing unit and book debts and other current assets lying in the factory premises and existing trading offices/ branches or elsewhere present or Future.
Colletaral Security: First Pari Passu Charge alongwith HDFC Bank, Standard Chartered Bank and Axis Bank on industrial Land & Building bearing at plot No. 359,360&361 Phase 4B, HSIIDC Industrial Estate, Bahadurgarh (Haryana) by way of Equitable Mortgage.
Personal Guarantee of Mr. Vijay Bansal (CMD) and Mr. Deepak Bansal (Whole Time Director).
(iii) HDFC BANK:
Interest payable @ 8.5% p.a. linked with 3 month Treasury Bill rate, reset on quarterly basis, chargeable on monthly rests, to be applied on daily balances of the overdraft facility.
Primary Security : First Pari Passu Charge on entire current assets with State Bank of India, Axis Bank and Standard Chartered Bank by way of hypothecation.
Colletaral Security : First Pari Passu Charge alongwith State Bank of India, Standard Chartered Bank and Axis Bank on industrial Land & Building bearing at plot No. 359,360 & 361 Phase 4B, HSIIDC Industrial Estate, Bahadurgarh (Haryana) by way of Equitable Mortgage.
Personal Guarantee of Mr. Vijay Bansal (CMD) and Mr. Deepak Bansal (Whole Time Director).
(iv) AXISBANK:
Interest payable @ REPO 2.30% (Presently 8.80% p.a.) chargeable on monthly rests.
Primary Security: First Pari-Passu charge on entire current assets of the company both present and future with State Bank of India, HDFC Bank Ltd. and Standard Chartered Bank by way of hypothecation.
Colletaral Security: First Pari Passu Charge alongwith HDFC Bank, Standard Chartered Bank and State Bank of India on industrial Land & Building bearing at plot No. 359,360 & 361 Phase 4B, HSIIDC Industrial Estate, Bahadurgarh (Haryana) by way of Equitable Mortgage.
Personal Guarantee of Mr. Vijay Bansal (CMD) and Mr. Deepak Bansal (Whole Time Director).
All charges are registered with Registrar of Companies (ROC) within the statutory period.
The company has borrowed funds from banks repayable on demand for the purpose of working capital, on the basis of security of current assets and has sent quarterly returns or statements of current assets with banks which are in agreement with the books of accounts.
50 Fair Value Disclosures i) Fair Values Hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
ii) Risk Management
The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A) Credit Risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Company’s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.
- cash and cash equivalents,
- trade receivables,
- loans & receivables carried at amortised cost, and
- deposits with banks
a) Credit Risk Management
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.
Cash & Cash Equivalents And Bank Deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.The Company invest surplus fund in highly liquid Mutual Funds which have insignificant risk of change in value.
Trade Receivables and Other Financial Assets
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.
Expected Credit Loss for Trade Receivables:
The Company based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 month (net of expected credit loss allowance), is? 45.07 lakhs (31 March 2023:? 6.84 lakhs).
Loan & Other financial assets measured at amortised cost includes security deposits, fixed deposits loan to related parties and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
56 Leases
Company as Lessee
The Company has entered into certain lease arrangements in the form of finance leases for its company owned retail outlets. Also the company pays non-lease payments to its franchisee owned outlets which includes embedded lease payments. As per the terms, the Company’s obligation could be fixed or purely variable or variable with minimum guarantee payment for use of property.
The Company also has certain leases of offices, store premises and warehouses with lease terms of 12 months or less. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. The lease payments for such leases is being recognised on actual basis by applying paragraph 6 of Ind AS 116.
Impact on Cash Flow Statements for the year ending 31st March 2024
For the financial year ended March 31,2024, the company had cash outflows in terms of repayment of lease liability for ? 6809.82 Lakhs (PY 5856.77 Lakhs) (including finance costs) which is shown under financing activities in cash flow statement.
56 Dividends
The Company paid Final Dividend of ? 2.5/- (Rupees Two & Fifty Paise Only) per share i.e. @ 25% of face value of equity share of ? 10/- (Rupees Ten only) each fully paid up, for the financial year 2022-23, approved in AGM held on 28th September 2023.
The Company paid Interim Dividend of ? 0.40/- (Rupees Forty Paise Only) per share i.e. @20% of face value of equity share of? 2/- (Rupees Two only) each fully paid up, for the financial year 2023-24, approved in Board Meeting held on February 7, 2024.
58 Segment Reporting
The Company is primarily engaged in the business of "Retail" which constitutes a single reporting 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. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, therefore no additional disclosures are required under Ind AS 108 - “Segment Reporting”.
59 Contingent Liabilities and Commitments (To The Extent Not Provided For)
(a) Contingent Liabilities
1 Appeals under Tax Laws : (Claims against the company not acknowledged as debts)
(i) Central Excise Department had raised a demand amounting to ? 110.39 lakhs on the company on 30th Sep., 2013. The demand order has been set aside by Central Excise and Service Appellate Tribunal by order dated 01st June,2017. However, the department has made an appeal before Hon'ble Delhi High Court against the order of CESTAT. In case department succeeds in the appeal, the company may be liable to pay the said demand of 110.39 lakhs along with due interest.
Note: It is not possible to predict the outcome of the pending litigation with accuracy, however, the Company believes
based on the facts of the cases stated above that it has meritorious defenses to the claims. The management believe that the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the company.
2 Custom Duty against Unexecuted Export Obligation
In respect of pending export obligation of f 433.92 lakhs, the company may be required to pay custom duty of ?72.32 lakhs along with interest to the custom authority if such export obligation is not met by the company.
3 Enhancement Cost for Industrial Plot at Bahadurgarh
HSIIDC (Haryana State Industrial & Infrastructure Development Corporation) had raised demand of f 1438.82 Lakhs in FY 2019-20 upon company towards enhancement in cost of Industrial plot at Bahadurgarh. The demand was contested by the company as a members of association of Bahadurgarh Industrial Estate before the High Court and then the Supreme Court of India. In compliance of order issued by the Apex court, the HSIIDC has issued show cause notice dated 12.04.22 for payment of f 1152.17 lakhs towards the enhanced cost of plot no. 359, 360 & 361, Phase 4-B, Sec.-17, HSIIDC Industrial Estate, Footwear Park, Bahadurgarh, Haryana. The company has submitted application before HSIIDC that the said demand is not correct and has requested for verification of records and reduction of demand. Till demand is finally reviewed by the HSIIDC, there is a probability of future cash outflow for payment of revised enhancement cost or the original demand raised by HSIIDC which will result into corresponding increase in Fixed Assets in cost of land under the head Property, Plant and Equipment. However, it will not impact the profitability ofthe company.
(b) Estimated Amounts of Commitments of Contracts remaining to be executed (net of advances)
The company has saved custom duty amounting to f 72.32 lakhs under zero duty Export Promotion Capital Goods(EPCG) scheme on import of machinery in FY 2018-19, 2019-20 & 2022-23 . Under the said scheme the company is required to fulfill future export obligation amounting to f 433.92 lakhs. The company has not received any redemption letter during the year from relevant authorities, which makes Export obligation to the extent unexecuted as on March 31, 2024 remains f 433.92 lakhs. In case the company fails to fulfill the export obligation then the company shall be liable to pay the custom duty saved related to unexecuted export obligation along with 15% interest per annum to the customs authority.
The company has dispute with M/s Ambience Infrastructure Private Limited in arbitration regarding grant of lease retail space to the company. The arbitrator has passed an award in favour of company for f 61.72 lakhs. Out of f 61.72 lakhs, f 20.00 lakhs has been received from the M/s Ambience Infrastructure Private Limited during financial year 2019-20. However, the company has filed an application under section 35(2) of the Arnitration and Conciliation Act, 1996, Saket court, New Delhi disputing total claim amount of ?61.72 Lakhs to ?38.18 Lakhs.
61 Skill Development Program under DDU-GKY
The Company has entered into an MOU to implement the Skill Development Training Programs under DDU-GKY (Deen Dayal Upadhyay - Gramin Kaushal Yojna) Project funded by Ministry of Rural Development (MoRD) and Haryana State Rural Livelihood Mission (HSRLM) on "No Profit No Loss basis". The Objective of the project is to work for the empowerment ofthe poor and for reduction in poverty by focusing on livelihoods ofthe poor and vulnerable sections ofthe society in rural areas. Total Estimated Cost of the Project is f 483.14 Lakhs. Total amount spent till 31st March, 2024 was f 286.14 Lakhs, out of which f 44.59 Lakhs is receivable.
62 Micro, Small & Medium Enterprises
The information as required to be disclosed in relation to Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.
1 The Company has received security deposits from its franchisees. In accordance with the requirements of Ind AS 32, 107 and 109, "Financial Instruments: Presentation and Disclosures", the said amount of the security deposits received has been treated as deferred income.
2 The Company was eligible and applied for the grant in FY 2016-17 for subsidy for installation and commissioning of machinery under TUFS (Technology Upgradation Fund Scheme). The same has been recognised as deferred income in accordance with the requirements of Ind AS 20, "Accounting for Government Grants and Disclosure of Government Assistance".
3 The Company also saved customs duty on import of machinery, the same has been recognised as deferred income in accordance with the requirements of Ind AS 20, "Accounting for Government Grants and Disclosure of Government Assistance".
4 A company owned running outlet was franchised to a franchisee, for which the company has received a lump sum amount of f 22.00 Lakhs towards right to use of outlet for a period of 9 years. The amount has been recognised as deferred income in accordance with the requirements of Ind AS 116 "Leases".
Note: The above reclassification in the previous year's published numbers have been made for better presentation in the financial statements and to confirm to the current year classification/disclosure. This does not have any impact on the profit and loss, hence no change in the basic and diluted earnings per share of previous year.
67 The Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relavant provisions.
68 Previous Year Figures
Previous years’ figures have been regrouped/reclassified wherever necessary to conform to the current year’s classifications).
As per our attached report of even date
For Suresh & Associates For and on behalf of the Board of Directors
Chartered Accountants FRN: 0003316N
(Vijay Bansal) (Deepak Bansal)
(CANarendraKumarArora) Chairman&ManagingDirector Director
Partner DIN:01110877 DIN : 01111104
M.No. 088256
Date: May 15,2024 (CA Shivendra Nigam) (CS Poonam Chahal)
Place: Delhi Chief Financial Officer Company Secretary &
Head Legal
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