1. Corporate Information
Baazar Style Retail Pvt Ltd. (the Company) is a private company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The Company is engaged in business of retailing a variety of apparels and non-apparels consumer products through retail stores under the Brand/Trade name of Style Baazar and Exbrss Baazar.
1.2 Significant Accounting Policies
(a) Basis of Preparation of financial statements
The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act 2013, read with Rule 7 of Company (Accounts) Rule 2014 and the relevant provisions of the Companies Act, 2013, issued by the Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis, under the historical cost convention.
(b)Use of Estimates
The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reported period. Actual result could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future period.
(c) Inventories
Inventories comprises of stock of apparel and non-apparel items and are carried at lower of cost and net realisable value. Cost of inventories comprises of purchase price and all incidental expenses incurred in bringing the inventory to its brsent location and condition. Cost is determined on first in first out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale. Merchandise received under consignment belongs to the consignors are excluded from the Inventories. Inventories of stores and spare parts are valued at cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.
(d) Cash & Cash Equivalents
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of three months or less.
(e)Revenue Recognition
Revenue is recognised when it is earned, and not significant uncertainty exists as to it realisation or collection. Revenue are recognised on delivery of the merchandise to the customer, when the property in goods and significant risks and rewards are transferred for a price and no effective ownership control is retained. Revenue is net of discount and rebates and Goods and Service tax(GST). In respect of gift vouchers and point award schemes operated by the Company, sales are recognised when the gift vouchers or points are either expired or redeemed and the merchandise is sold to the customers. Interest income is recognised on time proportion basis taking into account the amount outstanding and the interest rate applicable. Income from scrap sale / disposal of waste item has been measured in the books of accounts on as and when they realized. Facility management fees are recognized pro-data over the period of service. Commissions on Franchisee Service are recognized over the period of contract
(f)(i) Property, plant and equipments
Items of property, plant and equipments are stated at cost of acquisition or construction (net of GST credit where GST credit is available) less accumulated debrciation and impairment losses, if any. Cost comprises of purchase price (inclusive of duties) and any directly attributable cost of bringing the asset to its working condition for its intended use.
Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with expenditure will flow towards company and cost can be measured reliably.
Cost of fixed assets not ready for intended use at each balance sheet date are disclosed as capital work in progress.
(f)(ii)Intangible Fixed Assets
Intangible assets are stated at cost, net of accumulated amortization and impairment losses, if any. Cost includes directly attributable expenditure for acquisition of the assets for its intended use.
(g) Debrciation and Amortization
Property, plant and equipment Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately. Leasehold improvements are debrciated over the period of lease.  Intangible fixed assets Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/deletions is provided on pro-rata basis in the year of purchase/disposal.
Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013 except CCTV Camera. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately.
Leasehold improvements are amortised over the period of lease term.
Assets received under the scheme of amalgamation in the F.Y. 2016-17:- Life of assets has been taken after consideration of usage by the amalgamated company.
Intangible fixed assets
Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/ deletions is provided on pro-rata basis in the year of purchase/disposal
(h) Foreign Currency Translations
Foreign exchange transactions are recorded at the exchange rate brvailing on the date of the transactions. Year-end monetary assets and liabilities denominated in foreign currencies are translated at the year-end foreign exchange rate. Exchange differences arising on settlements/ year end transactions are recognised in the Statement of Profit and Loss for the year in which they arise.
(i) Investments
Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long- term investments. However, that part of long term investment which is expected to be realized within 12 months after the reporting date is also brsented under "current assets" as "current portion of long term investment" in consonance with the current and non-current classification scheme of revised Schedule III. Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investments. Current investment are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment. Any reduction in the carrying amount and any reversals of such reduction re changed or credited to the Statement of Profit and Loss.
(j) Employee Benefits
The Company's obligation towards various employee benefits have been recognised s follows: Short term benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short- term employee benefits. These benefits include salaries and wages, bonus, and ex-gratia. The undiscounted amount of short-term employees benefits to be paid in exchange for employee services is recognised as an expense as the related services is rendered by employees.
Post employment benefits Defined contribution plans The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services. Defined benefit plans The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date.  The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss. Compensated absences The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Termination benefits Termination benefits are recognised as an expense when, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Defined contribution plans
The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services.
Defined benefit plans
The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date
The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss
Compensated absences
The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement.
(k) Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction of qualifying assets is capitalized until the time all substantial activities necessary to brpare the qualifying assets for their use are complete. A qualifying asset is the one that necessarily takes substantial period to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.
(l)Segment Reporting
Based on the synergies, risks, and returns associated with business operations and in terms of Accounting Standard - 17, the Company is brdominantly engaged in a single segment of garments and apparels during the year. The analysis of geographical segments is based on the areas in which customers of the Company are located.
(m) Leases
For assets acquired under operating lease, rentals payable are charged to statement of profit and loss on a straight line basis over a lease term. For assets acquired under finance lease, the assets are capitalized at lower of their respective fair value and brsent value of minimum lease payments after discounting them at an appropriate discount rate.
(n)Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year, except where the results would be anti-dilutive.
(o)Income Taxes
Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). Income-tax expenses is recognised in the Statement of Profit and Loss. Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing difference between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognised using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
(p) Impairment
The carrying amounts of fixed assets are reviewed at each balance sheet date in accordance with Accounting Standard 28 on 'Impairment of Assets' to determine if there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated at each reporting date. An impairment loss is recognized wherever the carrying amount of an asset or cash generating unit of which it is a part exceeds the corresponding recoverable amount. Impairment losses are recognised in the statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortisation if no impairment loss had been recognised.
(q)Contingent Liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
(r) Provisions
A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(s) Current - Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the providing of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities. Assets  An asset is classified as current when it satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within 12 months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current

1. Corporate Information
Baazar Style Retail Pvt Ltd. (the Company) is a private company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The Company is engaged in business of retailing a variety of apparels and non-apparels consumer products through retail stores under the Brand/Trade name of Style Baazar and Exbrss Baazar.
1.2 Significant Accounting Policies
(a) Basis of Preparation of financial statements
The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act 2013, read with Rule 7 of Company (Accounts) Rule 2014 and the relevant provisions of the Companies Act, 2013, issued by the Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis, under the historical cost convention.
(b)Use of Estimates
The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reported period. Actual result could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future period.
(c) Inventories
Inventories comprises of stock of apparel and non-apparel items and are carried at lower of cost and net realisable value. Cost of inventories comprises of purchase price and all incidental expenses incurred in bringing the inventory to its brsent location and condition. Cost is determined on first in first out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale. Merchandise received under consignment belongs to the consignors are excluded from the Inventories. Inventories of stores and spare parts are valued at cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.
(d) Cash & Cash Equivalents
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of three months or less.
(e)Revenue Recognition
Revenue is recognised when it is earned, and not significant uncertainty exists as to it realisation or collection. Revenue are recognised on delivery of the merchandise to the customer, when the property in goods and significant risks and rewards are transferred for a price and no effective ownership control is retained. Revenue is net of discount and rebates and Goods and Service tax(GST). In respect of gift vouchers and point award schemes operated by the Company, sales are recognised when the gift vouchers or points are either expired or redeemed and the merchandise is sold to the customers. Interest income is recognised on time proportion basis taking into account the amount outstanding and the interest rate applicable. Income from scrap sale / disposal of waste item has been measured in the books of accounts on as and when they realized. Facility management fees are recognized pro-data over the period of service. Commissions on Franchisee Service are recognized over the period of contract
(f)(i) Property, plant and equipments
Items of property, plant and equipments are stated at cost of acquisition or construction (net of GST credit where GST credit is available) less accumulated debrciation and impairment losses, if any. Cost comprises of purchase price (inclusive of duties) and any directly attributable cost of bringing the asset to its working condition for its intended use.
Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with expenditure will flow towards company and cost can be measured reliably.
Cost of fixed assets not ready for intended use at each balance sheet date are disclosed as capital work in progress.
(f)(ii)Intangible Fixed Assets
Intangible assets are stated at cost, net of accumulated amortization and impairment losses, if any. Cost includes directly attributable expenditure for acquisition of the assets for its intended use.
(g) Debrciation and Amortization
Property, plant and equipment Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately. Leasehold improvements are debrciated over the period of lease.  Intangible fixed assets Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/deletions is provided on pro-rata basis in the year of purchase/disposal.
Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013 except CCTV Camera. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately.
Leasehold improvements are amortised over the period of lease term.
Assets received under the scheme of amalgamation in the F.Y. 2016-17:- Life of assets has been taken after consideration of usage by the amalgamated company.
Intangible fixed assets
Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/ deletions is provided on pro-rata basis in the year of purchase/disposal
(h) Foreign Currency Translations
Foreign exchange transactions are recorded at the exchange rate brvailing on the date of the transactions. Year-end monetary assets and liabilities denominated in foreign currencies are translated at the year-end foreign exchange rate. Exchange differences arising on settlements/ year end transactions are recognised in the Statement of Profit and Loss for the year in which they arise.
(i) Investments
Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long- term investments. However, that part of long term investment which is expected to be realized within 12 months after the reporting date is also brsented under "current assets" as "current portion of long term investment" in consonance with the current and non-current classification scheme of revised Schedule III. Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investments. Current investment are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment. Any reduction in the carrying amount and any reversals of such reduction re changed or credited to the Statement of Profit and Loss.
(j) Employee Benefits
The Company's obligation towards various employee benefits have been recognised s follows: Short term benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short- term employee benefits. These benefits include salaries and wages, bonus, and ex-gratia. The undiscounted amount of short-term employees benefits to be paid in exchange for employee services is recognised as an expense as the related services is rendered by employees.
Post employment benefits Defined contribution plans The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services. Defined benefit plans The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date.  The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss. Compensated absences The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Termination benefits Termination benefits are recognised as an expense when, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Defined contribution plans
The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services.
Defined benefit plans
The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date
The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss
Compensated absences
The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement.
(k) Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction of qualifying assets is capitalized until the time all substantial activities necessary to brpare the qualifying assets for their use are complete. A qualifying asset is the one that necessarily takes substantial period to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.
(l)Segment Reporting
Based on the synergies, risks, and returns associated with business operations and in terms of Accounting Standard - 17, the Company is brdominantly engaged in a single segment of garments and apparels during the year. The analysis of geographical segments is based on the areas in which customers of the Company are located.
(m) Leases
For assets acquired under operating lease, rentals payable are charged to statement of profit and loss on a straight line basis over a lease term. For assets acquired under finance lease, the assets are capitalized at lower of their respective fair value and brsent value of minimum lease payments after discounting them at an appropriate discount rate.
(n)Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year, except where the results would be anti-dilutive.
(o)Income Taxes
Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). Income-tax expenses is recognised in the Statement of Profit and Loss. Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing difference between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognised using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
(p) Impairment
The carrying amounts of fixed assets are reviewed at each balance sheet date in accordance with Accounting Standard 28 on 'Impairment of Assets' to determine if there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated at each reporting date. An impairment loss is recognized wherever the carrying amount of an asset or cash generating unit of which it is a part exceeds the corresponding recoverable amount. Impairment losses are recognised in the statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortisation if no impairment loss had been recognised.
(q)Contingent Liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
(r) Provisions
A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(s) Current - Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the providing of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities. Assets  An asset is classified as current when it satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within 12 months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current

1. Corporate Information
Baazar Style Retail Pvt Ltd. (the Company) is a private company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The Company is engaged in business of retailing a variety of apparels and non-apparels consumer products through retail stores under the Brand/Trade name of Style Baazar and Exbrss Baazar.
1.2 Significant Accounting Policies
(a) Basis of Preparation of financial statements
The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act 2013, read with Rule 7 of Company (Accounts) Rule 2014 and the relevant provisions of the Companies Act, 2013, issued by the Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis, under the historical cost convention.
(b)Use of Estimates
The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reported period. Actual result could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future period.
(c) Inventories
Inventories comprises of stock of apparel and non-apparel items and are carried at lower of cost and net realisable value. Cost of inventories comprises of purchase price and all incidental expenses incurred in bringing the inventory to its brsent location and condition. Cost is determined on first in first out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale. Merchandise received under consignment belongs to the consignors are excluded from the Inventories. Inventories of stores and spare parts are valued at cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.
(d) Cash & Cash Equivalents
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of three months or less.
(e)Revenue Recognition
Revenue is recognised when it is earned, and not significant uncertainty exists as to it realisation or collection. Revenue are recognised on delivery of the merchandise to the customer, when the property in goods and significant risks and rewards are transferred for a price and no effective ownership control is retained. Revenue is net of discount and rebates and Goods and Service tax(GST). In respect of gift vouchers and point award schemes operated by the Company, sales are recognised when the gift vouchers or points are either expired or redeemed and the merchandise is sold to the customers. Interest income is recognised on time proportion basis taking into account the amount outstanding and the interest rate applicable. Income from scrap sale / disposal of waste item has been measured in the books of accounts on as and when they realized. Facility management fees are recognized pro-data over the period of service. Commissions on Franchisee Service are recognized over the period of contract
(f)(i) Property, plant and equipments
Items of property, plant and equipments are stated at cost of acquisition or construction (net of GST credit where GST credit is available) less accumulated debrciation and impairment losses, if any. Cost comprises of purchase price (inclusive of duties) and any directly attributable cost of bringing the asset to its working condition for its intended use.
Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with expenditure will flow towards company and cost can be measured reliably.
Cost of fixed assets not ready for intended use at each balance sheet date are disclosed as capital work in progress.
(f)(ii)Intangible Fixed Assets
Intangible assets are stated at cost, net of accumulated amortization and impairment losses, if any. Cost includes directly attributable expenditure for acquisition of the assets for its intended use.
(g) Debrciation and Amortization
Property, plant and equipment Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately. Leasehold improvements are debrciated over the period of lease.  Intangible fixed assets Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/deletions is provided on pro-rata basis in the year of purchase/disposal.
Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013 except CCTV Camera. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately.
Leasehold improvements are amortised over the period of lease term.
Assets received under the scheme of amalgamation in the F.Y. 2016-17:- Life of assets has been taken after consideration of usage by the amalgamated company.
Intangible fixed assets
Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/ deletions is provided on pro-rata basis in the year of purchase/disposal
(h) Foreign Currency Translations
Foreign exchange transactions are recorded at the exchange rate brvailing on the date of the transactions. Year-end monetary assets and liabilities denominated in foreign currencies are translated at the year-end foreign exchange rate. Exchange differences arising on settlements/ year end transactions are recognised in the Statement of Profit and Loss for the year in which they arise.
(i) Investments
Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long- term investments. However, that part of long term investment which is expected to be realized within 12 months after the reporting date is also brsented under "current assets" as "current portion of long term investment" in consonance with the current and non-current classification scheme of revised Schedule III. Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investments. Current investment are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment. Any reduction in the carrying amount and any reversals of such reduction re changed or credited to the Statement of Profit and Loss.
(j) Employee Benefits
The Company's obligation towards various employee benefits have been recognised s follows: Short term benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short- term employee benefits. These benefits include salaries and wages, bonus, and ex-gratia. The undiscounted amount of short-term employees benefits to be paid in exchange for employee services is recognised as an expense as the related services is rendered by employees.
Post employment benefits Defined contribution plans The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services. Defined benefit plans The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date.  The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss. Compensated absences The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Termination benefits Termination benefits are recognised as an expense when, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Defined contribution plans
The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services.
Defined benefit plans
The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date
The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss
Compensated absences
The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement.
(k) Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction of qualifying assets is capitalized until the time all substantial activities necessary to brpare the qualifying assets for their use are complete. A qualifying asset is the one that necessarily takes substantial period to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.
(l)Segment Reporting
Based on the synergies, risks, and returns associated with business operations and in terms of Accounting Standard - 17, the Company is brdominantly engaged in a single segment of garments and apparels during the year. The analysis of geographical segments is based on the areas in which customers of the Company are located.
(m) Leases
For assets acquired under operating lease, rentals payable are charged to statement of profit and loss on a straight line basis over a lease term. For assets acquired under finance lease, the assets are capitalized at lower of their respective fair value and brsent value of minimum lease payments after discounting them at an appropriate discount rate.
(n)Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year, except where the results would be anti-dilutive.
(o)Income Taxes
Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). Income-tax expenses is recognised in the Statement of Profit and Loss. Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing difference between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognised using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
(p) Impairment
The carrying amounts of fixed assets are reviewed at each balance sheet date in accordance with Accounting Standard 28 on 'Impairment of Assets' to determine if there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated at each reporting date. An impairment loss is recognized wherever the carrying amount of an asset or cash generating unit of which it is a part exceeds the corresponding recoverable amount. Impairment losses are recognised in the statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortisation if no impairment loss had been recognised.
(q)Contingent Liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
(r) Provisions
A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(s) Current - Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the providing of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities. Assets  An asset is classified as current when it satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within 12 months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current

1. Corporate Information
Baazar Style Retail Pvt Ltd. (the Company) is a private company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The Company is engaged in business of retailing a variety of apparels and non-apparels consumer products through retail stores under the Brand/Trade name of Style Baazar and Exbrss Baazar.
1.2 Significant Accounting Policies
(a) Basis of Preparation of financial statements
The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act 2013, read with Rule 7 of Company (Accounts) Rule 2014 and the relevant provisions of the Companies Act, 2013, issued by the Ministry of Corporate Affairs. The financial statements have been brpared on an accrual basis, under the historical cost convention.
(b)Use of Estimates
The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reported period. Actual result could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future period.
(c) Inventories
Inventories comprises of stock of apparel and non-apparel items and are carried at lower of cost and net realisable value. Cost of inventories comprises of purchase price and all incidental expenses incurred in bringing the inventory to its brsent location and condition. Cost is determined on first in first out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale. Merchandise received under consignment belongs to the consignors are excluded from the Inventories. Inventories of stores and spare parts are valued at cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.
(d) Cash & Cash Equivalents
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of three months or less.
(e)Revenue Recognition
Revenue is recognised when it is earned, and not significant uncertainty exists as to it realisation or collection. Revenue are recognised on delivery of the merchandise to the customer, when the property in goods and significant risks and rewards are transferred for a price and no effective ownership control is retained. Revenue is net of discount and rebates and Goods and Service tax(GST). In respect of gift vouchers and point award schemes operated by the Company, sales are recognised when the gift vouchers or points are either expired or redeemed and the merchandise is sold to the customers. Interest income is recognised on time proportion basis taking into account the amount outstanding and the interest rate applicable. Income from scrap sale / disposal of waste item has been measured in the books of accounts on as and when they realized. Facility management fees are recognized pro-data over the period of service. Commissions on Franchisee Service are recognized over the period of contract
(f)(i) Property, plant and equipments
Items of property, plant and equipments are stated at cost of acquisition or construction (net of GST credit where GST credit is available) less accumulated debrciation and impairment losses, if any. Cost comprises of purchase price (inclusive of duties) and any directly attributable cost of bringing the asset to its working condition for its intended use.
Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with expenditure will flow towards company and cost can be measured reliably.
Cost of fixed assets not ready for intended use at each balance sheet date are disclosed as capital work in progress.
(f)(ii)Intangible Fixed Assets
Intangible assets are stated at cost, net of accumulated amortization and impairment losses, if any. Cost includes directly attributable expenditure for acquisition of the assets for its intended use.
(g) Debrciation and Amortization
Property, plant and equipment Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately. Leasehold improvements are debrciated over the period of lease.  Intangible fixed assets Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/deletions is provided on pro-rata basis in the year of purchase/disposal.
Debrciation is provided under the straight-line method by allocating the debrciable amount over useful lives of property, plant and equipment, as estimated by the management. Useful lives so estimated are in line with the useful lives indicated by the Schedule II to the Companies Act, 2013 except CCTV Camera. Debrciation on addition/deletions is provided on pro-rata basis in the year of purchase/disposal. The residual value and useful life of assets are reviewed at least at each financial year end and adjusted appropriately.
Leasehold improvements are amortised over the period of lease term.
Assets received under the scheme of amalgamation in the F.Y. 2016-17:- Life of assets has been taken after consideration of usage by the amalgamated company.
Intangible fixed assets
Computer softwares is amortised over its useful life of 3 years as estimated by management. Amortisation on additions/ deletions is provided on pro-rata basis in the year of purchase/disposal
(h) Foreign Currency Translations
Foreign exchange transactions are recorded at the exchange rate brvailing on the date of the transactions. Year-end monetary assets and liabilities denominated in foreign currencies are translated at the year-end foreign exchange rate. Exchange differences arising on settlements/ year end transactions are recognised in the Statement of Profit and Loss for the year in which they arise.
(i) Investments
Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long- term investments. However, that part of long term investment which is expected to be realized within 12 months after the reporting date is also brsented under "current assets" as "current portion of long term investment" in consonance with the current and non-current classification scheme of revised Schedule III. Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investments. Current investment are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investment. Any reduction in the carrying amount and any reversals of such reduction re changed or credited to the Statement of Profit and Loss.
(j) Employee Benefits
The Company's obligation towards various employee benefits have been recognised s follows: Short term benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short- term employee benefits. These benefits include salaries and wages, bonus, and ex-gratia. The undiscounted amount of short-term employees benefits to be paid in exchange for employee services is recognised as an expense as the related services is rendered by employees.
Post employment benefits Defined contribution plans The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services. Defined benefit plans The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date.  The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss. Compensated absences The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Termination benefits Termination benefits are recognised as an expense when, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Defined contribution plans
The company made specified monthly contribution towards employee provident fund to Government administered provident fund 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 services.
Defined benefit plans
The Company's gratuity benefit scheme is defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their services in the current and prior periods. That benefit is discounted to determine its brsent value. Any unrecognised past services costs and the fair value of any plan assets are deducted. The calculation of the Company's obligation under the plan is performed annually by a qualified actuary using the projected unit credit method carried out at the Balance Sheet date
The Company recognises all actuarial gains and losses from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefits plan are recognised in employee benefit expenses in the Statement of Profit and Loss
Compensated absences
The employee can carry- forward a portion of unutilised accrued compensated absences and utilize it in future services periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related services and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as long-term employee benefit. The Company records an obligation for such compensated absences in the period in which employee render the services that increase this entitlement.
(k) Borrowing Costs
Borrowing cost directly attributable to the acquisition or construction of qualifying assets is capitalized until the time all substantial activities necessary to brpare the qualifying assets for their use are complete. A qualifying asset is the one that necessarily takes substantial period to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.
(l)Segment Reporting
Based on the synergies, risks, and returns associated with business operations and in terms of Accounting Standard - 17, the Company is brdominantly engaged in a single segment of garments and apparels during the year. The analysis of geographical segments is based on the areas in which customers of the Company are located.
(m) Leases
For assets acquired under operating lease, rentals payable are charged to statement of profit and loss on a straight line basis over a lease term. For assets acquired under finance lease, the assets are capitalized at lower of their respective fair value and brsent value of minimum lease payments after discounting them at an appropriate discount rate.
(n)Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year, except where the results would be anti-dilutive.
(o)Income Taxes
Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). Income-tax expenses is recognised in the Statement of Profit and Loss. Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing difference between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognised using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
(p) Impairment
The carrying amounts of fixed assets are reviewed at each balance sheet date in accordance with Accounting Standard 28 on 'Impairment of Assets' to determine if there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated at each reporting date. An impairment loss is recognized wherever the carrying amount of an asset or cash generating unit of which it is a part exceeds the corresponding recoverable amount. Impairment losses are recognised in the statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortisation if no impairment loss had been recognised.
(q)Contingent Liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
(r) Provisions
A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(s) Current - Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the providing of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities. Assets  An asset is classified as current when it satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within 12 months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current

25		Employer Benefit as per Accounting Standard - 15 (Revised)
	(A)	Defined Benefit Plan
	i)	Gratuity
		The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more of service is entitled to gratuity as per the provisions of Gratuity Act, 1972. The Scheme is unfunded.
		The following table summarizes the components of net benefit expenses recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.
	a)	Total Expenses recognized in the Statement of Profit & Loss				2019-20		2018-19
										(Rs.)		(Rs.)
		Current service cost								46,67,160.00		29,74,982
		Interest Cost								4,20,483.00		1,45,928
		Past Service Cost								-		-
		Expected Return on Plan assets								-		-
		Net Actuarial (Gains)/Losses recognized in the year								3,66,483.00		5,02,063
		Net benefit expenses *								54,54,126.00		36,22,973
		Actual return on plan assets
		* Gratuity expenses have been disclosed under the head Employees Benefit Expenses under Note 20.
	b)	Net Asset / (Liability) recognized in the Balance Sheet
										2019-20		2018-19
		Present value of defined benefit obligation								(109,72,270.00)		(72,45,946)
		Fair value of plan assets								-
		Plan liability								(109,72,270.00)		(72,45,946)
	c)	Changes in brsent value of defined benefit obligation are as follows
										2019-20		2018-19
		Opening Defined Benefit obligation								55,18,144.00		18,95,171
		Current Service Cost								46,67,160.00		29,74,982
		Past Service Cost								-		-
		Interest Cost								4,20,483.00		1,45,928
		Benefits Paid
		Actual (gains)/losses on obligation								3,66,483.00		5,02,063
		Closing Defined Benefit obligation								109,72,270.00		55,18,144
										2019-20		2018-19
	d)	The principal assumptions used in determining gratuity obligations for the Company are shown below:
		Discount Rate								0.07		7.62%
		Expected return on plan assets								-		0.00%
		Salary Increase								0.05		5.00%
		Withdrawal rates								varying between 6% to 1% depending on duration and age of the employees
		The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
	(B)	Defined Contribution Plan
		The Company has recognized the following amount as an expense and included under "Employee Benefit Expenses".
										2019-20		2018-19
										(Rs.)		(Rs.)
		Provident Fund								91,46,878.00		73,02,859
		Employee State Insurance								80,75,274.00		77,80,584
										172,22,152.00		150,83,443
	(C )	Other Long Term Benefits
		Compensated absence
		The Leave scheme is a final salary defined benefit plan that provides for lumpsum payment at the time of exit by way of retirement/retrenchment or when the leave balance exceeds 60 days payable at the end of Financial Year.

26

Segment Reporting

The Company is primarily engaged in the business of retail trade through retail stores and the principal geographical segment in India which in the terms of Accounting Standard 17 "Segment Reporting" (AS-17) constitutes a single reporting segment. Since the relevant information is available from the Balance sheet and the Statements of Profit and Loss itself, the Company is not required to disclose segment information as per Accounting Standard 17 "Segment Reporting" (AS-17).