Other Notes:

1. Cost of Inventories pledged as security against current borrowings, details of which have been described in Note 14.

2. Provision made for slow moving inventories amounts to ' 551.25 Lakhs for March 31, 2024 (' 400.95 Lakhs for March 31, 2023)

3. The Inventories include ' 1,371.14 Lakhs which are lying with third parties as at March 31, 2024 (' 1,387.58 Lakhs as on March 31, 2023).

4. For mode of valuation of inventories refer Note 2.12 of Accounting Policies.

9.1 The Company has trade receivable outstanding of more than 5% from two customers amounting to ' 6,407.44 Lakhs (As at March 31, 2023: ' 5,481.13 Lakhs).

9.2 Trade Receivables are hypothecated as Security for part of Cash Credit facilities (Refer Note 14). The credit worthiness of Trade Receivables and the credit terms set are determined on a case to case basis. The fair values of Trade Receivables are not considered to be significantly different from their carrying values, given their generally short period to maturity, with impairment reviews considered on an individual basis rather than when these become overdue. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

9.3 As per Ind AS 109, the Company uses the Expected Credit Loss (ECL) model to assess any required allowances; and uses a provision matrix to compute the ECL allowance for trade receivables. In calculating ECL, the Company has also other related credit information for customers to estimate the probability of default in future.

The Company in its meeting of the Board of Directors held on October 29, 2021, converted 24,99,615 Series A Compulsorily Convertible Preference shares and 23,99,860 Series B Compulsorily Convertible Preference shares into 1,49,97,690 and 71,99,580 equity shares of ' 10 each respectively at face value.

The Company’s equity shares were listed on the National Stock Exchange (“NSE”) and on the BSE Limited (“BSE”) on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of ' 10 each at an issue price of ' 690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. During the previous year 2022-23, considering the actual IPO expenditure incurred, an amount of ' 16.44 has been adjusted in Securities premium account.

(a) Securities premium account is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings represent the amount of accumulated earnings / deficit of the Company, and re-measurement gains/losses on defined benefit plans. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in its entirety.

(c) In accordance with the notification issued by Ministry of Corporate Affairs dated March 24, 2021, remeasurement of defined benefit plan shall be recognised as a part of retained earnings with separate disclosure of such item. Accordingly re-measurement of defined benefit plan has been disclosed as part of retained earnings.

14.1 The working capital facility from Ratnakar Bank Limited comprising of ' 8,000 Lakhs (March 31, 2023: ' 8,000 Lakhs), from ICICI Bank for ' 6,000 Lakhs (March 31, 2023: ' 3,000 Lakhs) & from Axis Bank for ' 4,000 Lakhs (March 31, 2023: ' 4,000 Lakhs) & from HDFC Bank for ' 2,500 Lakhs (March 31, 2023: ' Nil), has been obtained. The facility has been availed for a tenure of 12 months.

14.2 The facility is secured by way of an exclusive charge on the entire current assets and movable property, plant and equipment of the Company, both present and future.

14.3 As at March 31, 2024 Interest is charged at 0.25% above 1 year MCLR on a monthly basis in case of RBL Bank, at 1.50% above 6 month MCLR in case of ICICI Bank & at 0.25% above 1 month MCLR in case of Axis Bank & at WCDL 8.75% linked to 1 month T Bill with monthly reset in case of HDFC Bank.

14.4 The cash credit availed has been utilised to meet the Working Capital requirements of the Company.

14.5 There are no differences between the financial information filed with the banks and books of accounts for the first three quarter of the financial year 2023-24. The Company is in the process of filing the statement for the 4th Quarter of Financial year 2023-24.

14.6 The Company does not have any charges or satisfaction of charge which is yet to be registered with the Registrar of Companies beyond the statutory period.

14.7 The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

Gains arising from rent concession and early termination of lease arrangements:

The Company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per Ind AS 116. Consequently, the remaining amount of unadjusted lease value as per Ind AS 116 computation has been credited to Other income from lease accounting, it amounts to ' Nil in the Current Financial Year (March 31, 2023: ' 83.45 Lakhs).

During the year, the Company has also recognised ' 228.84 Lakhs (March 31, 2023: ' 243 Lakhs), as Other income from lease accounting, arising out of difference between the closing lease asset & liability value, on account of short closure of lease agreements.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The Company has disclosed financial instruments such as comprise of borrowings, trade payable,and other current liabilities, trade receivable, cash and cash equivalents and bank balances other than cash and cash equivalents at carrying value because their carrying values are a reasonable approximation of the fair values due to their short term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party.

C) Financial Risk Management

The Company’s principal financial liabilities, comprise of borrowings, trade payable and other financial liabilities.

The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors.

This process provides assurance to Company’s senior management that the Company’s financial risktaking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company policies and Company’s risk objective.

The management reviews and agrees policies for managing each of these risks which are summarised as below:

(a) Market Risk:

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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk. Financial instruments affected by market risks include borrowings, security deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2024. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2024.

i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument 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 its operating activities (when revenue or expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

of risk with respect to trade receivables as low, as a majority of its trade receivable balance is receivable from Large Format Stores(‘LFS’), who are well established business entities, and have been regular in their payments over the history of the business.

ii) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counter party’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company.

d) Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

This note provides information about how the Company determines fair value of various financial assets and liabilities.

32. EMPLOYEE BENEFITS (a) Defined Contribution plan:

(i) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

(b) Defined Benefit plans:

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India. In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2024. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. When there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk: A decrease in the bond interest rate will increase the plan liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

The Code on Social Security, 2020 ("the Code) which would impact the contributions by the Company towards Provident Fund and Gratuity has received Presidential assent in September 2020. The Code have been published in the Gazette of India. However, the date from which the Code will come into effect has not been notified. The Company will complete its evaluation and will give appropriate impact in its financial results in the period in which the Code becomes effective and the related rules are published.

33. SEGMENT REPORTING

The Company is primarily engaged in the business of retail trade through retail and departmental stores facilities, which in the terms of Ind AS 108 on ‘Operating Segments’, constitutes a single reporting business segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets.

34. AUDIT TRAIL

As per the requirements of Rule 3(1) of the Companies (Accounts) Rules, 2014, the Company uses only such accounting software for maintaining its books of account that have a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting software. This feature of recording audit trail has operated throughout the year and was not tampered with during the year.

35. The Company’s equity shares were listed on the National Stock Exchange (“NSE”) and on the BSE Limited (“BSE”) on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of ' 10 each at an issue price of ' 690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. The IPO entire proceeds of ' 11,904.63 Lakhs has been utilised by the Company as at March 31, 2024 for the purpose stated in the prospectus / offer. As at March 31, 2024, Unutilised amount is Nil.

36. No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 and as at March 31, 2023 for holding any benami property under Benami Property Transactions (prohibition) Act, 1988.

37. Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at March 31, 2024 and March 31, 2023 is Nil.

38. The Company has not traded / invested in Crypto currency or virtual currency during the financial year March 31, 2024 and March 31, 2023.

39. 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:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

40. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

40 (a). Previous period’s figures have been reclassified wherever necessary to correspond with the current period’s classification/disclosure.

Explanations to items included in computing the above ratios:

1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total share holders equity (including Reserves & Surplus)

3. Debt Service Coverage Ratio: EBIT Interest on lease liabilities Depreciation over Lease payments (prinicipal interest)

4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory

6. Trade Receivables turnover ratio: Revenue from operations over average Trade Receivable

7. Trade payables turnover ratio: Purchases over average Trade Payable

8. Net capital turnover ratio: Revenue from operations over average working capital

9. Net profit ratio: Profit After Tax over Revenue from operations

10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total share holders equity, borrowings, short term and long term lease liabilities)

11. Return on investment: Interest income on fixed deposit with banks Mutual fund investment gain over average investments (investments includes investments in mutual funds, margin money and other bank deposits)

The Non-GAAP measures presented may not be comparable to similarly titled measures reported by other

companies. Further, it should be noted that EBIDTA, EBITDA Margin, Gross Margin, Net worth, Return on

Net Worth, Net Asset Value (per Equity Share), debt equity ratio, Return on Capital Employed, Return on

Equity is not a measure of operating performance or liquidity defined by generally accepted accounting

principles and may not be comparable to similarly titled measures presented by other companies.

42. The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

43. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

44. The Company has not declared or paid any dividend during the year and has not proposed any final dividend for the year.

45. No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 and thus the disclosure is not applicable.

46. The Company has maintained the backup of the books of accounts on a daily basis on server situated in India.

47. There were no unclaimed or unpaid dividend during the previous year and current year. Hence no funds or shares required to be transferred to Investor Education and Protection Fund during the year under audit.

48. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

49. APPROVAL OF THE FINANCIAL STATEMENTS:

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on May 03, 2024.