in a foreign currency is determined in that
foreign currency and translated at the spot
rate at the end of each reporting period. For
foreign currency denominated financial assets
measured at amortised cost and FVTPL,
the exchange differences are recognised in
statement of profit and loss.
d) Financial liabilities: All financial liabilities are
subsequently measured at amortised cost
using the effective interest method or at FVTPL.
Financial liabilities at FVTPL - Financial liabilities
at FVTPL are stated at fair value, with any gains
or losses arising on remeasurement recognised
in statement of profit and loss. The net gain or
loss recognised in statement of profit and loss
incorporates any interest paid on the financial
liability and is included in the 'Other income/
Other expenses' line item.
Financial liabilities subsequently
measured at amortised cost
Financial liabilities that are not held-for-
trading and are not designated as at FVTPL
are measured at amortised cost at the end
of subsequent accounting periods. The
carrying amounts of financial liabilities that
are subsequently measured at amortised
cost are determined based on the effective
interest method.
The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate
is the rate that exactly discounts estimated
future cash payments through the expected life
of the financial liability, or (where appropriate)
a shorter period, to the net carrying amount on
initial recognition.
Foreign exchange gains and losses
For financial liabilities that are denominated
in a foreign currency and are measured at
amortised cost at the end of each reporting
period, the foreign exchange gains and losses
are determined based on the amortised cost
of the instruments and are recognised in the
statement of profit and loss. The fair value of
financial liabilities denominated in a foreign
currency is determined in that foreign currency
and translated at the spot rate at the end of the
reporting period. For financial liabilities that are
measured as at FVTPL, the foreign exchange
(p) Provisions and contingencies
Provisions: A provision is recognised when the
Company has a present obligation as a result of past
events and it is probable that an outflow of resources
will be required to settle the obligation, in respect of
which a reliable estimate can be made.
The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle
the present obligation, its carrying amount is the
present value of those cash flows (when the effect
of time value of money is material).
Contingent liabilities: Contingent liabilities are not
recognised but are disclosed in notes to accounts.
(q) Financial instruments
Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contractual provisions of the instruments.
Financial assets and liabilities are initially recognised
at fair value. Transaction costs that are directly
attributable to financial assets and liabilities [other
than financial assets and liabilities measured at fair
value through profit and loss (FVTPL)] are added to
or deducted from the fair value of the financial assets
or liabilities, as appropriate on initial recognition.
Transaction costs directly attributable to acquisition
of financial assets or liabilities measured at FVTPL
are recognised immediately in the statement of
profit and loss.
a) Non-derivative Financial assets: All regular
way purchases or sales of financial assets
are recognised and derecognised on a trade
date basis. Regular way purchases or sales
are purchases or sales of financial assets that
require delivery of assets within the time frame
established by regulation or convention in
the marketplace.
All recognised financial assets are subsequently
measured in their entirety at either amortised
cost or fair value, depending on the classification
of the financial assets.
Financial assets at amortised cost
A financial asset is measured at amortised cost
if both of the following conditions are met:
1) the financial asset is held within a business
model whose objective is to hold financial
assets in order to collect contractual cash
flows and
2) the contractual terms of the financial
asset give rise on specified dates to cash
flows that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.
Effective interest method:
The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is that which exactly discounts estimated
future cash receipts through the expected life
of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount
on initial recognition. Income is recognised on
an effective interest basis for debt instruments
other than those financial assets. Interest
income is recognised in profit or loss and is
included in the "Other income" line item."
b) Derecognition of financial assets: A financial
asset is derecognised only when the Company:
- has transferred the rights to receive cash
flows from the financial asset or
- retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.
When the entity has transferred an asset,
the Company evaluates whether it has
transferred substantially all risks and
rewards of ownership of the financial
asset. In such cases, the financial asset
is derecognised. Where the entity has
not transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not derecognised.
Where the entity has neither transferred
a financial asset nor retains substantially
all risks and rewards of ownership of
the financial asset, the financial asset
is derecognised if the Company has not
retained control of the financial asset.
When the Company retains control of the
financial asset, the asset is continued to
be recognised to the extent of continuing
involvement in the financial asset.
c) Foreign exchange gains and losses: The
fair value of financial assets denominated
component forms part of the fair value gains
or losses and is recognised in the statement of
profit and loss.
Derecognition of financial liabilities
The Company derecognises financial liabilities
when, and only when, the Company's
obligations are discharged, cancelled or have
expired. An exchange between with a lender
of debt instruments with substantially different
terms is accounted for as an extinguishment of
the original financial liability and the recognition
of a new financial liability.
(r) Segment reporting
Operating segments are reported in the manner
consistent with the internal reporting to the
Managing director. The Company is reported at
an overall level, and hence there are no separate
reportable segments as per Ind AS 108.
(s) Cash and cash equivalents
Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term
balances (with an original maturity of three months
or less from the date of acquisition) and highly
liquid investments that are readily convertible into
known amounts of cash and which are subject to
insignificant risk of changes in value.
(t) Earnings per share (EPS)
Basic earnings per share are computed using
the weighted average number of equity shares
outstanding during the period.
Diluted EPS is computed by dividing the profit
or loss attributable to ordinary equity holders by
the weighted average number of equity shares
considered for deriving basic EPS and also weighted
average number of equity shares that could have
been issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity
shares are determined independently for each
period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
bonus shares, as appropriate.
(u) Operating Cycle
Based on the nature of products / activities of the
Company and the normal time between acquisition
of assets and their realisation in cash or cash
equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.
(v) Capital work-in-progress
Capital work in progress includes, cost of assets not
yet commissioned, and incidental expenses during
the construction period. Certain directly attributable
pre-operative expenses during construction period
are included under Capital Work in Progress. These
expenses are allocated to the cost of Fixed Assets
when the same are ready for intended use.
(w) Note on ESOP Trust
The company has created "SSKL EmployeesTrust" for
providing share based payments to its employees.
The company uses SSKL EmployeesTrust as a
vehicle for distributing shares to employees under
the employee remuneration schemes.
For the said purpose, the ESOP Trust borrowed
funds from the Company and paid the same towards
acquisition of shares of the Company for allocating
the same to the eligible employees.
Own Equity instruments that are acquired (Treasury
Shares) are recognised at Cost and deducted from
Equity. No gain or loss is recognised in profit and
loss on the purchase, sale, issue or cancellation of
the Group's own equity instruments. Any difference
between the Carrying amount and the consideration,
if reissued / sold is recognised in Other Equity.
As the ESOP Trust carries out activities for the benefit
of the employees of the Company, for appropriate
presentation of the activity of the ESOP trust in the
Financial Statements of the company, the Company
has adopted the accounting policy to consolidate
the ESOP Trust in the Financial Statements by
treating the Trust as its extension.
Consequently, in the Financial Statements of the
Company, the loan given to ESOP Trust is eliminated
and the equity shares that are allotted to ESOP
Trust (Treasury shares) are recognised at cost and
disclosed as deduction from Equity.
Further, for the purpose of computation of Weighted
Average Number of Equity shares outstanding
for calculating Earnings per share, the weighted
average number of Treasury shares outstanding are
reduced from the number of shares at the end of
the year.
(x) Basis for Accounting of invoices / Debit notes
/ Credit Notes towards procurement Goods /
Services
We account the invoices / Debit notes / Credit
Notes only after acceptance of the received goods
/ services related to that respective invoices / Debit
notes / Credit Notes. And these goods become
forming part of our inventory only after completion
of accounting of respective invoices / Debit notes /
Credit Notes.
(i) Property, plant and equipment mortgaged as security
Refer to note 41 for information on property, plant and equipment mortgaged as security by the company.
(ii) Contractual obligations
Refer to note 37(b) for disclosure of contractual commitments for the acquisition of property, plant and
equipment.
(iii) Capital work-in-progress
The ageing of Capital work-in progress is provided in Note 40.
(iv) Ind AS 101 - Deemed Cost exemption
As per para D7AA of Ind AS 101, the company has adopted to continue with the carrying value for all of its property,
plant and equipment as recognised in the financial statements as at the date of transition to Ind AS's (01 April
2019), measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
(v) Refer Note No. 40 regarding the CWIP ageing schedule.
(iii) Extension and termination options
Extension and termination options are included in a number of property and equipment leases across the
company. These are used to maximise operational flexibility in terms of managing the assets used in the
company's operations. The majority of termination options held are exercisable only by the company and not
by the respective lessor. In case the company wishes to extend the lease, the same can be done on mutually
agreeable basis with the lessor.
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is reasonably certain to be extended (or not to be terminated).
Also the company has used the discounting rate as 10% (the borrowing rate from the banks) for the purpose of
arriving at present value.
For leases of retail stores, the following factors are normally the most relevant
(a) If any leasehold improvements are expected to have a significant remaining value, the company is typically
reasonably certain to extend (or not to terminate).
(b) Most extension options in retail leases have been included in the lease liability, because the company
only has the right to extend the lease (only with the approval of the lessor) and has incurred lease hold
improvements in them.
(c) The assessment of reasonable certainty is only revised if a significant event or a significant change in
circumstances occurs, which affects this assessment, and that is within the control of the lessee.
(d) If there are significant penalty payments to terminate (or not to extend), the company is typically reasonably
certain to extend (or not to terminate).
(iv) The company is operating through 68 showrooms & 5 warehouses spread across the southern part of India and
on evaluation of those rental agreements, 46 showrooms & 4 warehouses have come under the purview of Ind
AS 116 and impact of the same has been provided in the financials (refer note 5). As per the terms and conditions
stipulated in the lease deeds/agreements of the remaining 22 showrooms, the termination option is available
with both lessor and lessee leading to the same being treated as short term and the impact appears in the rental
expenses (refer note 34).
2. One of our lessors namely M/s. Profit shoe company private limited (who is the lessor of our showroom
at Rajahmundry) had increased the rent abnormally, which is in deviation to the rent escalation clause as
mentioned in the agreement and we disagreed. So, he filed a suit for vacation of the premises and we filed
counter against it. The matter is pending before the Addl. District Judge, Rajahmundry with case no. 75
of 2024.
3. The company received a notice from Greater Hyderabad Municipal Corporation (GHMC) pursuant to a
written complaint by residents alleging noise and traffic nuisance resulting from presence of our stores.
The company filed response to such notice by providing clarifications and requesting relief in the matter.
Consequently, a petition was preferred before the High Court of Telangana by the complainants to direct
GHMC to stop the alleged activity against which an interim injunction was obtained by our company.
Thereafter another contempt petition was filed by the complainants against the company and the matter is
still pending.
4. A legal notice dated August 16, 2022 was received by the company and its directors, alleging that the
company is playing various sound recordings, copyrights of which vests with Phonographic performance
limited without an appropriate copyright license and paying a sum of ? 5 Crores as damages. The company
filed a reply to the above notice stating that the complainant does not have a statutory right to raise the
demands given in the notice. Consequently, a commercial suit was filed vide suit no.37964 of 2022 along
with an interim application no.37970 of 2022, dated December 5, 2022 before the Hon'ble Bombay High
court praying for an order of injunction restraining the company to use the above mentioned intellectual
property. Consequently, the company made a statement before the Court that none of the Sound recordings
for which the complainant claims to have copyright shall be played in the malls and stores run by the
Company which was taken on record by the Court on December 19, 2022. The matter is currently pending
before the Court.
5. Search and seizure operations under section 132 of the Income tax act: Search and seizure of operations
in the premises was conducted in the month of May 2023, by income tax department under section 132
of Income Tax Act,1961. Information and documents submitted to income tax department as per notices
served from time to time.
Consequent to Scrutiny proceedings, the Income Tax Department has determined the total liability for an
amount of C 27.07 Crores (which includes an interest of C 8.35 Cr). Regarding this the company has made a
provision of C 6.42 Crores during the FY 2023-24 itself. Therefore, the Company has made a provision for
the balance amount during the FY 2024-25. The same were paid in the month of April,2025 and thereby the
liability on the company upon search proceedings were concluded.
Note no. 43 Employee benefits
(a) Salaries and Wages
Compensatory absence which accrue to the employees which are expected to be availed or encashed within
twelve months after the end of the period in which the employees render the related service are short-term
in nature. These compensatory absences require measurement on an actual basis and not on actuarial basis.
As per the leave policy of the company, the compensatory absences are paid within the next month from the date
they are due and there is no accrual benefit that needs to be accounted as per Ind AS 19. They are processed
along with monthly payroll.
(b) Defined contribution plan
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. Expenses recognized against defined contribution plans:
The Company is primarily engaged in the business of retail trade through retail and departmental stores facilities,
which in 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. During the year ended 31 Mar 2025 and Mar 2024 the revenue from
transactions with a single external customer did not amount to 10 percent or more of the Company's revenues from
the external customers.
Note No. 46 Capital and Financial risk management objectives and policies
(a) Risk management framework
Company is being driven by the market forces, its businesses are subject to several risks and uncertainties
including financial risks. The Company's documented risk management policies act as an effective tool in
mitigating the various financial risks to which the business is exposed to, in the course of their daily operations.
The risk management policies cover areas around all identified business risks including commodity price
risk, foreign exchange risk etc., Risks are identified through a formal risk management programme with
active involvement of senior management personnel and business managers. The Company has in place risk
management processes in line with the Company's policy. Each significant risk has an owner, who coordinates
the risk management process.
The risk management framework aims to:
• Better understand our risk profile;
• Understand and better manage the uncertainties which impact our performance;
• Contribute to safeguarding Company value and interest of various stakeholders;
• Ensure that sound business opportunities are identified and pursued without exposing the business to an
unacceptable level of risk;
• Improve compliance with good corporate governance guidelines and practices as well as laws & regulations; and
• Improve financial returns"
Treasury management
The Company's treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the
Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks
include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and
cash flow interest rate risk.
Treasury management focuses on capital protection, liquidity maintenance and yield maximization. The treasury
operates as per the delegation of authority from the Board. Day-to-day treasury operations are managed by
Company's finance team. Long-term fund raising including strategic treasury initiatives are handled by a Treasury
team. The Company has a strong system of internal control which enables effective monitoring of adherence to
Company's policies."
Financial risk
The Company's Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty
risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize
interest through proven financial instruments.
(i) Liquidity
The Company requires funds both for short-term operational needs as well as for long-term investment
programmes mainly in growth projects. The Company generates sufficient cash flows from the current
operations which together with the available cash and cash equivalents and short-term investments provide
liquidity both in the short-term as well as in the long-term.
The Company has been rated by "India Ratings" for its banking facilities in line norms.
The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and
strengthening balance sheet. The maturity profile of the Company's financial liabilities based on the
remaining period from the date of balance sheet to the contractual maturity date is given in the table below.
The figures reflect the contractual undiscounted cash obligation of the Company.
The Company has hypothecated its trade receivables, inventory, advances and other current assets in order
to fulfil the collateral requirements for the financial facilities in place. There are no other significant terms
and conditions associated with the use of collateral.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure 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 the other payables. The risks primarily relate to fluctuations
in US Dollar, GBP against the functional currencies of the Company. The Company's exposure to
foreign currency changes for all other currencies is not material. The Company evaluates the impact of
foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
(iii) Credit risk
Credit risk is the risk that the counter party will not meet its obligation under a financial
instrument, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including deposits with
banks, foreign exchange transactions and other financial instruments. The carrying amount
of trade receivables, advances, deposits, cash and bank balances, bank deposits and
interest receivable on deposits represents company's maximum exposure to the credit risk.
Credit risk from balances with banks is managed by the Company's treasury department in accordance
with Company's policy. No other financial asset carry a significant exposure with respect to the
credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with
reputable government, public bodies and others. Since company operates on business model of primarily
cash and carry, credit risk from receivable perspective is insignificant.
(b) Capital management and Gearing Ratio
For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders. The primary objective of the company's capital
management is to maximise the shareholder value. The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and the requirements of the financial covenants. The
Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes
within debt, interest bearing loans and borrowings.
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:
(i) The Company has disclosed financial instruments such as borrowings, trade payable, and other current
liabilities, loans, 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.
(ii) 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.
(iii) 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.
(a) Title deeds of immovable properties
Title deeds of immovable properties are held in the name of the Company.
(b) Valuation of Property Plant & Equipment, intangible asset
The Company has not revalued its fixed assets.
(c) Loans or advances to specified persons
No loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013) either severally or jointly with any other person, that are repayable on
demand or without specifying any terms or period of repayment.
(d) Details of benami property held
The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company.
(e) Borrowing secured against current assets
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks are in agreement with the books of accounts.
(f) Wilful defaulter
The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(g) Relationship with struck off companies
The Company does not have any transactions with companies struck off.
(h) Registration of charges or satisfaction with Registrar of Companies (ROC)
There were no charges, particulars of creation of which were pending to be filed / registered with the Registrar
of Companies (MCA), beyond the prescribed period, except in 1 instance wherein the Company availed a vehicle
loan from ICICI Bank for an amount of C 0.23 Cr and created a Hypothecation charge on 27.09.2024. Further, in
the matter of repayment of vehicle loans, i.e., C 1.16 Cr from HDFC Bank, C 0.93 Cr from Toyota Financial Services
India Limited and C 0.77 Cr from Daimler Financial Services, the Company is yet to receive the NOCs from the
respective charge holders and thus the particulars of satisfaction of said charges remains to be filed with the
Registrar of Companies (MCA)
(i) Compliance with number of layers of companies
The Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules,
2017 is not applicable to the company.
(j) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(k) Utilisation of borrowed funds and securities premium
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:
a) 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);
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
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:
a) 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;
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries"
(l) Undisclosed income
The Company does not have any 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).
But, As a part of Search & Seizure proceedings, some of the expenditures relating to past 7 years were disallowed
by the Income Tax Dept. during the Assessment of respective years, and the liability relating to it has been
disclosed at note no. 37."
(m) Details of crypto currency or virtual currency
The Company has not traded or invested in Crypto currency or Virtual Currency.
(n) Utilisation of borrowings availed from banks and financial institutions
The borrowings obtained by the Company from the Banks and Financial Institutions have been applied for the
purposes for which such loans were taken.
As per our audit report of even date For and on behalf of the board
For SAGAR & ASSOCIATES
Chartered Accountants
Sd/- Sd/- Sd/-
CA. D. Manohar Ch.N.K.D.Prasad Annam Kalyan Srinivas
Partner Managing Director Whole Time Director
Membership No. 029644 DIN : 01929166 DIN : 02428313
F. No. 003510S
Sd/- Sd/-
Place: Hyderabad K.V.L.N. Sarma M K Bhaskara Teja
Date: 16th May, 2025 Chief Financial Officer Company Secretary & Compliance Offer
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