Notes to Accounts of VIP Industries Ltd.

Mar 31, 2025

l Provisions, contingent liabilities and contingent
assets

Provisions: Provisions for Legal claims, Service
Warranties, discounts and returns are recognised
when the Company has a present Legal or constructive
obligation as a result of past events, it is probable
that an outflow of resources will be required to
settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future
operating losses.

If the effect of time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to passage of time is recognised as
a finance cost.

Contingent liabilities: Contingent liabilities are
disclosed when there is a possible obligation arising
from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the Company or a present obligation that
arises from past events where it is either not probable
that an outflow of resources will be required to settle
or a reliable estimate of the amount cannot be made.

Contingent assets: Contingent assets are disclosed
when there is a possible asset that arises from past
events and where existence of which will be confirmed
only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the
control of the Company.

m Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of
the reporting period but not distributed at the end of
the reporting period.

n Earnings per share

i) Basic earnings per share

Basic earnings per share is calculated by dividing
the net profit for the period attributable to the
equity shareholders of the Company, by the
weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during
the year and excluding treasury shares, if any.

ii) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings per
share to take into account:

• the after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

• the weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.

o Exceptional items

An item of income or expenses, pertaining to the
ordinary activities of the Company, is classified as
an exceptional item, when the size, type or incidence
of the item merits seperate disclosure in order to
provide better understanding of the performance of
the Company. Accordingly the same is disclosed in the
notes accompanying the financial statements.

2B OTHER ACCOUNTING POLICIES
a Revenue recognition - Export Benefits

In case of export sales made by the Company, export
benefits arising from Duty Drawback scheme and
Remission of Duties or Taxes on Export Products
Scheme are recognised along with underlying revenue.

b Income Recognition

i) Interest income

Interest income from debt instruments is
recognised using the effective interest rate
method. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected Life of the financial asset to
the gross carrying amount of a financial asset.
When calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument (for example, prepayment,
extension, call and similar options) but does not
consider the expected credit losses.

ii) Dividend income

Dividends are recognised in the statement of
profit and loss only when the right to receive
payment is established, it is probable that the
economic benefits associated with the dividend
will flow to the Company, and the amount of the
dividend can be measured reliably.

c Leases - As a lessor

Lease income from operating leases where the
Company is lessor is recognised as income on a straight
line basis over the lease term unless the receipts are
structured to increase in line with expected general
inflation to compensate for the expected inflationary
cost increases.

d Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief operating
decision maker of the Company assesses the financial
performance and position of the Company and makes
strategic decisions. The chief operating decision maker
is the Managing director of the Company. Refer note
38 for Segment information presented.

e Investment Properties

Property that is held for long-term rental yields
or for capital appreciation or both, and that is not
occupied by the Company, is classified as Investment
property. Investment property is measured initially at
its cost, including related transaction costs and where
applicable borrowing costs. Subsequent expenditure
are capitalised to the asset''s carrying amount only
when it is probable that future economic benefits
associated with the expenditure will flow to the
Company and the cost of the item can be measured
reliably. All other repairs and maintenance costs are

expensed when incurred. When part of an investment
property is replaced, the carrying amount of the
replaced part is derecognised. Investment properties
(except freehold land) are depreciated using the
straight-line method over their estimated useful lives.

Intangible assets

a) Patents and trademark

Separately acquired patents and copyrights are
shown at historical cost. They have a finite useful
life and are subsequently carried at cost less
accumulated amortisation and impairment losses.

b) Computer software

Costs associated with maintaining software
programmes are recognised as an expense as
incurred. Development costs that are directly
attributable to the design and testing of identifiable
and unique software products controlled by the
Company are recognised as intangible assets
when the following criteria are met:

• It is technically feasible to complete the
software so that it will be available for use

• Management intends to complete the
software and use or sell it

• there is an ability to use or sell the software

• It can be demonstrated how the software will
generate probable future economic benefits

• Adequate technical, financial and other
resources to complete the development and
to use or sell the software are available, and

• The expenditure attributable to the
software during its development can be
reliably measured.

Capitalised development costs are recorded as
intangible assets and amortised from the point
at which the asset is available for use.

g Contributed Equity

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of
tax, from the proceeds.

h Rounding of amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest Rupees in
Crores (upto two decimals), unless otherwise stated as
per the requirement of Schedule III of the Companies
Act 2013.

3 CRITICAL ESTIMATES AND JUDGMENTS

In the application of the Company''s accounting policies,
which are described in note 2, the management
is required to make judgement, estimates, and
assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
process. The estimates and associated assumptions
are based on historical experience and other factors
that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that
period, or in the period of the revision and future period
if the revision affects both current and future period.

The following are the critical estimates and
judgements, that have the significant effect on the
amounts recognised in the financial statements.

i) Estimation of Provisions and Contingent
Liabilities

The Company exercises judgment in measuring
and recognising provisions and the exposures to
contingent liabilities which are related to pending
litigation or other outstanding claims. Judgement is
necessary in assessing the likelihood that a pending
claim will succeed, or a liability will arise, and to
quantify the possible range of the financial settlement.

Because of the inherent uncertainty in this evaluation
process, actual liability may be different from the
originally estimated as provision. Although there can
be no assurance of the final outcome of the legal
proceedings in which the Company is involved, it is not
expected that such contingencies will have a material
effect on its financial position or profitability. (Refer
note 39)

ii) Estimation of rebates, discounts and sales
returns

The Company''s revenue recognition policy requires
estimation of rebates, discounts and sales returns.
The Company has a varied number of rebates/discount
schemes offered which are primarily driven by the
terms and conditions for each scheme including the
working methodology to be followed and the eligibility
criteria for each of the scheme. The estimates for
rebates/discounts need to be based on evaluation
of eligibility criteria and the past trend analysis. The
Company estimates expected sales returns based on
a detailed historical study of past trends. [Refer Note
2A(c) and 24]

iii) Estimation of useful life of Property, Plant
and Equipment, Intangible assets, Investment
properties

Property, Plant and Equipment, Intangible assets,
Investment properties represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived
after determining an estimate of an asset''s expected
useful life and the expected residual value at the
end of its life. The useful lives and residual values of
Company''s assets are determined by management at
the time the asset is acquired and reviewed periodically,
including at each financial year end. The useful lives
are based on historical experience with similar assets
as well as anticipation of future events, which may
impact their life, such as changes in technology. (Refer
note 4, 5 and 6)

iv) Estimation of provision for inventory

The Company writes down inventories to net realisable
value based on an estimate of the realisability of
inventories. Write downs on inventories are recorded
where events or changes in circumstances indicate
that the balances may not realised. The identification
of write-downs requires the use of estimates of net
selling prices of the down-graded inventories. Where
the expectation is different from the original estimate,
such difference will impact the carrying value of
inventories and write-downs of inventories in the
periods in which such estimate has been changed.

v) Estimation of defined benefit obligation

The Company provides defined benefit employee
retirement plans. The present value of the defined
benefit obligations depends on a number of factors that
are determined on an actuarial basis using a number of
assumptions. The assumptions used in determining the
net cost (income) for post employments plans include
the discount rate, salary escalation rate, attrition rate
and mortality rate. Any changes in these assumptions
will impact the carrying amount of such obligations.

The Company determines the appropriate discount
rate, salary escalation rate and attrition rate at the end
of each year. In determining the appropriate discount
rate, the Company considers the interest rates of
government bonds of maturity approximating the
terms of the related plan liability and attrition rate
and salary escalation rate is determined based on the
Company''s past trends adjusted for expected changes
in rate in the future. (Refer note 27)

vi) Estimated fair value of Financial Instruments

When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including Discounted Cash Flow Model. The inputs to
these models are taken from observable markets
where possible, but where this is not feasible, a degree
of judgement is required in establishing fair values.
Judgements include considerations of inputs such
as liquidity risks, credit risks and volatility. Changes
in assumptions about these factors could affect the
reported fair value of financial instruments.

vii) Estimation of provision for warranty claims

The Company offers warranties for its products.
Management estimates the related provision for
future warranty claims based on historical warranty
claim information, as well as recent trends that might
suggest that past cost information may differ from
future claims. The assumptions made in relation to the
current period are consistent with those in the prior
year (Refer note 35).

viii) Impairment of trade receivable

The impairment provisions for trade receivable are
based on expected credit loss method. The Company
uses judgement in making the assumptions in
calculating the default rate required for identifying the
provision as per the expected credit loss method at the
end of each reporting period. (Refer note 14)

ix) Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the
applicable discount rate. The Company determines the
lease term as the non-cancellable period of a lease,
together with periods covered by an option to extend
the lease if the Company is reasonably certain to
exercise that option. The lease term is determined
without considering an option to terminate the lease,
if the Company is reasonably certain not to exercise
that option. In assessing whether the Company is
reasonably certain to exercise an option to extend
a lease, or not to exercise an option to terminate a
lease, it considers all relevant facts and circumstances
that create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The
discount rate is generally based on the incremental
borrowing rate specific to the lease being evaluated
or for a portfolio of leases with similar characteristics.

x) Shared Based compensation benefits

The company provides share based compensation
benefits to its employees as per the Employee
Stock Appreciation Rights Plan. Liabilities for the
Company''s share appreciation rights are recognised
at the fair value of options using the Black-Scholes
options pricing model which is widely used globally
for valuing employee stock options. The Black-Scholes
model requires consideration of certain variables
like volatility, risk free rate, expected dividend yeild,
expected option life, market price and excercise price.

xi) Deferred tax recognition

Deferred tax assets (DTA) is recognized only when
and to the extent there is a reasonable probability or
estimate that the Company will have sufficient taxable
profits in the future against which such assets/losses
can be utilized. Management judgment is required to
determine the amount of deferred tax assets that can
be recognized, based upon the likely timing and the
level of future taxable profits.

xii) Investments in Subsidiaries

Investments in subsidiaries, Including equity Investment
and other Investments, are tested for impairment
whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by
which the carrying amount of investments exceeds its
recoverable amount.

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholding.

(c) Shares reserved for issue under options

Information relating to VIP Employees Stock Appreciation Rights Plan, including details of rights granted, exercised,
forfeited and expired during the financial year and rights outstanding at the end of the reporting period, is set out in
note 45.

1) The Charge on the current assets of the Company has been created for above mentioned secured working capital
Loans and undrawn borrowing facilities at the end of the reporting period. The working capital facilities are having
maturity of less than 180 days from disbursement. The interest rate for working capital loans is in the range of
7.75% to 8.50% per annum.

2) The Company had issued unsecured Commercial paper agreegating to '' 25 Crores on October 15, 2024 with a
coupon rate of 7.70% per annum and the same was duly repaid as per due date, within 3 months from the date
of drawdown by the Company.

3) The factored payables amount disclosed above represents the extended Interest bearing credit (Bill discounting)
facility availed by the Company beyond the due date as per credit terms. Under this arrangement the supplier is
eligible to receive payment from the bank on due date as per credit terms. The Interest for the extended credit
period has been presented under Finance Cost. The Interest rate for the above facility ranges between 7.0%-8.50%
per annum and is having maturity of less than 180 days.

v) The total cash outflow for Leases for the year '' 82.43 Crores (March 31, 2024: '' 66.58 Crores)

vi) Variable lease payments

Some property Leases contain variable payment terms that are Linked to sales generated from a store. For individual
store, lease payments are on the basis of variable payment terms with percentages on sales. Variable lease payments
that depend on sales are recognised in profit and Loss in the period in which the condition that triggers those payments
occurs."

vii) Extension and termination options

Extension and termination options are included in a number of leases across the Company. These are used to maximise
operational flexibility in terms of managing the assets used in the Company''s operations.In case of termination, the
difference between the right of use assets and related lease liability is charged to profit and loss account.

37 MANAGERIAL REMUNERATION

Pursuant to the provisions of section 197, 198 and other applicable provisions of the Companies Act, 2013 (the ''Act'')
read with Schedule V of the said Act,as amended, the Company at the ensuing annual general meeting will be seeking
the approval from the shareholders of the Company for the waiver of recovery of excess managerial remuneration
paid ''4 Crores for the period from April 01, 2024 to March 31, 2025, through a special resolution.

38 SEGMENT REPORTING

In accordance with Accounting Standard Ind AS- 108 “Segmental Reporting", the Company has determined its business
segment as manufacturing and marketing of Luggage, bags and accessories. Since more than 99% of business is from
manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments.
Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities,
total cost incurred to acquire segment assets, total amount of charge of depreciation and amortisation, other material
items of Income and expenses during the year are all as is reflected in the financial statements as at and for the year
ended March 31, 2025.

# During the year, the Company has received a favourable order from the Maharashtra Sales Tax Tribunal, Mumbai allowing its claim
under the Central Sales Tax Act for the financial years from 2009-2010 to 2017-2018 (upto June, 2017).

The matter has been remanded back to the assessing authority for recalculation of tax liability.

The Company has implemented the decision given in the Supreme Court Judgement in case of “The Regional Provident
Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir & Ors, Civil Appeal Number 6221 of 2011" dated
February 28, 2019 for inclusion of certain allowances within the scope of "basic wages" of the relevant employees for
the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous
Provisions Act, 1952 w.e.f. March 01, 2019. Basis the assessment of the management, which is supported by legal
advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.

The Company''s risk management is carried out by a central treasury department under the guidance from the board
of directors. Company''s treasury identifies and evaluates financial risks in close co-ordination with the Company''s
operating units. The board provides written principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non¬
derivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for
managing the risk and methods used to measure the risk as compared to previous year.

1) Credit risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer
contract, leading to financial loss. The Credit risk mainly arises from receivables from customers, investments
securities, cash and cash equivalents, and deposits with banks and financial institutions.

a) Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has
been managed by the company through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the company grants credit terms in the normal course of business.
On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment
loss or gain.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to
''368.18 Crores as at March 31, 2025 (March 31, 2024 : '' 325.15 Crores). Trade receivables are typically unsecured
and are derived from revenue earned from customers located in India as well as outside India.The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in
respect of trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry, the country and the state in which
the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals,establishing credit Limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit Loss experience and adjusted
for forward looking information. The expected credit loss allowance is based on the ageing of the days for which
the receivables are due and the expected loss rates as given in the provision matrix. The provision matrix at the
end of the reporting period is as follows:

The average credit period on sates of products is Less than 120 days. Credit risk arising from trade receivables
is managed in accordance with the Company''s established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness
and accordingly individual credit Limits are defined/modified. The concentration of credit risk is Limited due to the
fact that the customer base is large.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of '' 27.62 crores (March 31, 2024: ''27.09 crores).
The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.
12-months expected credit losses is used as basis for recognition of loss provision.

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating. 12-months
expected credit losses is used as basis for recognition of loss provision.

d) Investment in mutual funds:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these counter¬
parties. 12-months expected credit losses is used as basis for recognition of loss provision.

e) Other financial assets:

Other financial assets are neither past due nor impaired. 12-months expected credit losses is used as basis for
recognition of loss provision.

f) Investments in debt instruments:

Investments in debt instruments are neither past due nor impaired. Majority of the debt instruments are held
within the group i.e. in subsidiaries of the Company.

2) Liquidity risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines including Bill discounting faclilities. To mitigate the
risk of Bill discounting arrangement being unavailable or inadequate, the company treasury has arranged for other
credit facilities adequately. Management monitors rolling forecasts of the Company''s liquidity position (comprising
the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

3) Market risk :

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of risks namely interest rate risk, currency risk and other price risk, such as
commodity risk.

A) Market Risk- Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from
overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by
purchasing of goods, commodities and services in the respective currencies. The Company closely monitors the
movement in foreign currency exchange rates to strategise the timing operations and effectively optimise the
overall exposure.

B) Market Risk- Other price risk

(a) Exposure

The Company is mainly exposed to the price risk due to its investment in equity instruments and investment in mutual
funds held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through
profit or loss. The price risk arises due to uncertainties about the future market values of these investments. To
manage its price risk arising from investments in equity securities, the Company diversifies its portfolio The majority
of the Company''s equity investments are publicly traded.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain/
Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5
% with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

42B CAPITAL MANAGEMENT
(a) Risk management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets
to reduce debt.

B) Defined benefit plan
a) Gratuity:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are
in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable
on retirement/ termination is the employees Last drawn basic salary per month computed proportionately for
fifteen days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the
Company makes contributions to the "VIP Industries Limited Employees Gratuity Fund Trust". The Company does
not fully fund the liability and maintains a target level of funding to be maintained over a period of time based
on estimations of expected gratuity payments.

b) Provident Fund

Provident fund for eligible employees is managed by the Company through the "VIP Industries Limited
Employees Provident Fund Trust", in line with the Provident fund and Miscellaneous Provisions Act 1952.
The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the
employer and employee together with the interest accumulated thereon are payable to employees at the
time of their separation from the Company or retirement whichever is earlier. The benefits vest immediately
on rendering the services by the employee. The Company does not currently have any unfunded plans.

I n terms of the guidance note issued by the Institute of Actuaries of India for measurement of provident
fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions
provided below, there is no shortfall as at March 31, 2025. The Company has contributed ''4.67 Crores (March
31,2024: ''4.62 Crores) towards VIP Industries Limited Employees Provident Fund Trust during the year ended
March 31, 2025.

g) Terms and conditions

ALL transactions were made on normal commercial terms and conditions and at market rates.

ALL outstanding balances are unsecured and are payable in cash.

45 EMPLOYEE STOCK APPRECIATION RIGHTS

The Nomination and Remuneration Committee of the Board of Directors of the Company at its various meetings held
during the year, approved to grant new stock appreciation rights to eligible employees of the Company, in accordance
with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018 named ''ESARP 2018'' as
approved by the shareholders of the Company on July 17, 2018. Accordingly, during the year the Company has granted
277,500 (March 31, 2024 : 931,500) stock appreciation rights to eligible employees resulting in a net expense of '' 2.48
Crores (March 31, 2024 : '' 8.07 Crores) during the year ended March 31, 2025. During the year ended March 31, 2025,
the eLigibLe empLoyees of the company exercised 192,350 (March 31, 2024 : 442,399) stock appreciation rights, in
accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018. Consequently
the Company has issued 67,822 (March 31, 2024 : 296,647) fully paid up equity shares of '' 2 each of the company

(ii) Details of Benami property Held

No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) Borrowings secured against current assets

The Company has borrowings from banks and financial institutions on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in
agreement with the books of accounts.

(iv) Wilful Defaulter

The Company has never been declared as wilful defaulter by any bank or financial institution or government or any
government authority.

(v) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) 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.

(viii) Utilisation of borrowed funds and share 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) or

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.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(xi) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(xiii) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes
for which such loans were was taken.

51 As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014, the Company has used an accounting
software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and that
has operated throughout the year except for certain transactions, changes made through specific access and for
direct database changes. The Company did not notice any instance of audit trail feature being tampered with in
cases where the audit trail feature was enabled. The Company has established and maintained an adequate internal
control framework and based on its assessment, believes that this was effective as of 31^st March, 2025. Additionally,
the audit trail, to the extent maintained in the previous year, has been preserved by the Company as per the statutory
requirements for record retention.

52 The standalone financial statements are approved for issue by the board of directors at their meeting conducted on
May 13, 2025.

As per our attached report of even date.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/N500016

Alpa Kedia Dilip G. Piramal Neetu Kashiramka

Partner Chairman Managing Director

Membership Number: 100681 (DIN: 00032012) (DIN: 01741624)

Manish Desai Ashitosh Sheth

Chief Financial Officer Company Secretary

ACS: 25997

Place: Mumbai Place: Mumbai

Date: May 13, 2025 Date: May 13, 2025

---

Mar 31, 2024

Estimation of fair value

The Company obtains independent valuations for its investment properties at Least annually based on current prices in an active market for properties of similar nature or recent prices of similar properties. The fair value of investment properties is based on valuation by a independent registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuations) Rules, 2017. The main inputs used are the rental growth rates and market rates bases on comparable transactions.

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(c) Shares reserved for issue under options

Information relating to VIP Employees Stock Appreciation Rights Plan, including details of rights granted, exercised, forfeited and expired during the financial year and rights outstanding at the end of the reporting period, is set out in note 45.

1) The Charge on the current assets of the Company has been created for above mentioned secured working capital Loans and undrawn borrowing facilities at the end of the reporting period. The working capital facilities are having maturity of less than 180 days from disbursement. The interest rate for working capital loans is in the range of 7.75% to 8.75% per annum.

2) The Company has issued unsecured Commercial paper agreegating to '' 50 Crores on February 14, 2024 with a coupon rate of 7.80% per annum, repayable within 6 months from the date of drawdown by the Company.

3) The factored payables amount disclosed above represents the extended Interest bearing credit (Bill discounting) facility availed by the Company beyond the due date as per credit terms. Under this arrangement the supplier is eligible to receive payment from the bank on due date as per credit terms. The Interest for the extended credit period has been presented under Finance Cost. The Interest rate for the above facility ranges between 7.5%-9.0% per annum and is having maturity of less than 180 days.

Disclosure of Trade payables and payable on capital purchases to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on request made by the Company. The overdue principal amount and interest thereon remaining unpaid as at March 31, 2024 is '' 26.01 Crores and '' 0.11 Crores respectively. There are no delays in payment made to such suppliers during the year or any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous year.

Sales Tax Provision: The amounts in respect of sales tax represent the best possible estimates arrived on the available information. The uncertainties are dependent on the outcome of the different Legal processes. The timing of the future cash flows will be determinable only on receipt of judgements/ decisions pending with various forums/ authorities. The said provisions primarily relate to subjudice matters under the erstwhile local sales tax acts, value added tax acts of respective states and the central sales tax act 1961.

36 LEASES

i) The Company''s major leasing arrangements are in respect of commercial premises (including furniture and fittings therein wherever applicable taken on leave and license basis), generally with a lease terms ranging between 2 and 10 years.

iii) Additions to the right-of-use assets during the year were '' 234.34 Crores (March,31, 2023: '' 134.10 Crores), which includes right-of-use assets building of '' 227.20 Crores (March,31, 2023: '' 131.70 Crores) and right-of-use assets deposit of '' 7.14 Crores (March,31, 2023: '' 2.40 Crores)

v) The total cash outflow for Leases for the year ''66.58 Crores (March 31, 2023: '' 47.40 Crores)

vi) Variable lease payments

Some property Leases contain variable payment terms that are Linked to sales generated from a store. For individual store, lease payments are on the basis of variable payment terms with percentages on sales. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs.

vii) Extension and termination options

Extension and termination options are included in a number of leases across the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations.In case of termination, the difference between the right of use assets and related lease liability is charged to profit and loss account.

37 Pursuant to the provisions of section 197, 198 and other applicable provisions of the Companies act, 2013 read with Schedule V of the said act,as amended, the Company at the ensuing annual general meeting will be seeking the approval from the shareholders of the Company for the waiver of recovery of excess managerial remuneration paid ''10.60 Crores for the period from April 01, 2023 to March 31, 2024, by way of a special resolution.

Further, as per the provisions of regulation 17(6)(ca) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the Company at the ensuing annual general meeting will be seeking the approval from the shareholders of the Company for payment of ''1.53 Crores as commission to nonexecutive directors. This amount exceeds the permissible limit by '' 1.26 Crores pursuant to the provisions of sections 197, 198 and other applicable provisions of the Companies Act,2013 read with Schedule V of the said act, as amended.

38 SEGMENT REPORTING

In accordance with Accounting Standard Ind AS- 108 “Segmental Reporting”, the Company has determined its business segment as manufacturing and marketing of luggage, bags and accessories. Since more than 99% of business is from manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments. Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortisation during the year are all as is reflected in the financial statements as at and for the year ended March 31, 2024.

39 CONTINGENT LIABILITIES
Non Current Assets	As at March 31, 2024	As at March 31, 2023
Claims against the Company not acknowledged as debts
Income tax matters	10.96	9.98
Sales tax matters	401.24	373.10
Excise and customs matters	0.55	0.55

The Company has implemented the decision given in the Supreme Court Judgement in case of “The Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir & Ors, Civil Appeal Number 6221 of 2011” dated February 28, 2019 for inclusion of certain allowances within the scope of "basic wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 w.e.f. March 01, 2019. Basis the assessment of the management, which is supported by legal advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.

#The Company has made an irrevocable election at initial recognition, to recognise changes in fair value of equity securities which are not held for trading, through OCI, rather than profit and Loss as these are strategic investments and the company considered this to be more relevant.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Listed equity instruments that have quoted price. The fair value of alt equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included in level 3.

There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

• Investments in quoted equity instruments are valued using the closing price at Bombay Stock Exchange (BSE) at the reporting period.

• the use of Net Assets Value (''NAV'') for valuation of mutual fund investment. NAV represents the price at which the issuer will issue further units and will redeem such units of mutual fund to and from the investors.

• the fair value of the preference shares is determined based on present values and the discount rates used were adjusted for counterparty risk and country risk.

a) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, borrowings and other financial Liabilities are considered to be the same as their fair values, due to their short-term nature.

(b) The fair values and carrying value for security deposits, other financial assets and other financial liabilities are materially the same.

42A FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk, credit risk and interest risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company has a robust risk management framework comprising risk governance structure and defined risk management processes. The risk governance structure of the Company is a formal organisation structure with defined roles and responsibilities for risk management.

The Company''s risk management is carried out by a central treasury department under the guidance from the board of directors. Company''s treasury identifies and evaluates financial risks in close co-ordination with the Company''s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and nonderivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for managing the risk and methods used to measure the risk as compared to previous year.

1) Credit risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Credit risk mainly arises from receivables from customers, investments securities, cash and cash equivalents, and deposits with banks and financial institutions.

a) Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 325.15 Crores as at March 31, 2024 (March 31, 2023- '' 242.66 Crores). Trade receivables are typically unsecured and are derived from revenue earned from customers located in India as well as outside India.The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, the country and the state in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals,establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

The average credit period on sales of products is Less than 120 days. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit Limits are defined/modified. The concentration of credit risk is Limited due to the fact that the customer base is large.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of ''27.09 crores (March 31, 2023: ''21.53 crores). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision.

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision.

d) Investment in mutual funds:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties. 12-months expected credit losses is used as basis for recognition of loss provision.

e) Other financial assets:

Other financial assets are neither past due nor impaired. 12-months expected credit losses is used as basis for recognition of loss provision.

f) Investments in debt instruments:

I nvestments in debt instruments are neither past due nor impaired. Majority of the debt instruments are held within the group i.e. in subsidiaries of the Company.

2) Liquidity risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines including Bill discounting faclilities. To mitigate the risk of Bill discounting arrangement being unavailable or inadequate, the company treasury has arranged for other credit facilities adequately. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risks namely interest rate risk, currency risk and other price risk, such as commodity risk.

A) Market Risk- Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company closely monitors the movement in foreign currency exchange rates to strategise the timing operations and effectively optimise the overall exposure.

B) Market Risk- Other price risk

(a) Exposure

The Company is mainly exposed to the price risk due to its investment in mutual funds and investment in equity instruments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. The price risk arises due to uncertainties about the future market values of these investments. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio The majority of the Company''s equity investments are publicly traded.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

The sensitivity analysis below have been determined based on the exposure to interest rates for debt obligations at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is based on the currently observable market environment.

42B CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

B) Defined benefit plan a) Gratuity:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for fifteen days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to the "VIP Industries Limited Employees Gratuity Fund Trust". The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the defined benefit obligation asset/ (liability) recognised in the Balance Sheet.

b) Provident Fund

Provident fund for eligible employees is managed by the Company through the "VIP Industries Limited Employees Provident Fund Trust", in line with the Provident fund and Miscellaneous Provisions Act 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement whichever is earlier. The benefits vest immediately on rendering the services by the employee. The Company does not currently have any unfunded plans.

I n terms of the guidance note issued by the Institute of Actuaries of India for measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions provided below, there is no shortfall as at March 31, 2024. The Company has contributed '' 4.62 Crores (March 31,2023: ''4.03 Crores) towards VIP Industries Limited Employees Provident Fund Trust during the year ended March 31, 2024.

Further, the Key Management personnel compensation above includes (wherever applicable) the share based payment expense which is accounted during the year, at fair value at the time of grant of the Share appreciation rights, as prescribed under the Ind AS 102 on Share Based Payment and variable pay on payment basis.

The perquisite value calculated under the Income Tax Act 1961, on the grant of fully paid up equity shares of the company during the year, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018, is as follows-

g) Terms and conditions

ALL transactions were made on normal commercial terms and conditions and at market rates.

ALL outstanding balances are unsecured and are payable in cash.

45 EMPLOYEE STOCK APPRECIATION RIGHTS

The Nomination and Remuneration Committee of the Board of Directors of the Company at its various meetings held during the year, approved to grant new stock appreciation rights to eligible employees of the Company, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018 named ''ESARP 2018'' as approved by the shareholders of the Company on July 17, 2018. Accordingly, during the year the Company has granted 9,31,500 stock appreciation rights to eligible employees resulting in a net expense of '' 8.07 Crores during the year ended March 31, 2024. During the year ended March 31, 2024, the eligible employees of the company exercised 4,42,399 stock appreciation rights, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018. Consequently the Company has issued 2,96,647 fully paid up equity shares of '' 2 each of the company during the year ended March 31, 2024, to the eligible employees, as approved by the Allotment Committee of the Board of Directors of the Company. Accordingly the company has transferred '' 8.31 Crores to the Securities Premium during the year ended March 31, 2024.

ii) Other commitments

For Lease commitments, refer note 36

48 EXCEPTIONAL ITEM

The Exceptional item of '' 25.78 Crores disclosed for the year ended March 31, 2024 relates to full and final settlement against the insurance claim lodged by the Company, with reference to a loss of property, plant and equipment and inventories that were destroyed due to a fire at the Company''s regional warehouse at Ghaziabad on April 03, 2019. (The Exceptional item of '' 15.00 Crores disclosed for the year ended March 31, 2023 pertains to partial receipt of the above referred insurance claim).

(ii) Details of Benami property Held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) Borrowings secured against current assets

The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

(iv) Wilful Defaulter

The Company has never been declared as wilful defaulter by any bank or financial institution or government or any government authority.

(v) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(vi) Compliance with number of layers of companies

The Company has complied with the number of Layers prescribed under the Companies Act, 2013.

(vii) 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.

(viii) Utilisation of borrowed funds and share 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) or

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.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(xi) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

51 The Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit Log) facility and that has operated throughout the year except for certain transactions, changes made through specific access and for direct database changes. The Company did not notice any instance of audit trail feature being tampered with in cases where the audit trail feature was enabled.

52 The standalone financial statements are approved for issue by the board of directors at their meeting conducted on May 10, 2024.

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Mar 31, 2023

i) Contractual obligations :

Refer note 47 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

ii) For details pertaining to title deeds of immovable properties not held in the name of Company, please refer note 49.

iii) Capital work-in-progress :

iv) The listed, secured Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores which were secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and immovable properties comprising of Industrial land and building situated at Plot No 78/78A, MIDC Estate, Satpur, Nashik, Maharashtra by way of mortgage. Subsequently, the company has repaid these Non- Convertible Debentures on September 06, 2022 together with the interest due thereon as per the terms laid out in the debenture trust deed.

Estimation of fair value

The Company obtains independent valuations for its investment properties at Least annually based on current prices in an active market for properties of similar nature or recent prices of similar properties. The fair value of investment properties is based on valuation by a independent registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuations) Rules, 2017. The main inputs used are the rental growth rates and market rates bases on comparable transactions.

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(c) Shares reserved for issue under options

Information relating to VIP Employees Stock Appreciation Rights Plan, including details of rights granted, exercised, forfeited and expired during the financial year and rights outstanding at the end of the reporting period, is set out in note 45.

1) Secured Borrowings: The Company had issued Listed, secured Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores which were secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and immovable properties comprising of Industrial land and building situated at Plot No 78/78A, MIDC Estate, Satpur, Nashik, Maharashtra by way of mortgage. Subsequently, the company has repaid these Non- Convertible Debentures on September 06, 2022 together with the interest due thereon as per the terms laid out in the debenture trust deed.

2) Interest on Debentures had been calculated using effective interest rate method as per Ind AS 109. The same had been classified as current financial liability and shown separately during previous year.

3) The coupon rate for the Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores had been amended to 6.25% w.e.f. September 06, 2021 vide supplementary debenture trust deed executed with the debenture trustees.

4) The Charge on the current assets of the Company has been created for above mentioned working capital loans and undrawn borrowing facilities at the end of the reporting period. The working capital facilities are having maturity of less than 180 days from disbursement. The interest rate for working capital loans is in the range of 7.25% to 8.30% per annum.

Disclosure of Trade payables and payable on capital purchases to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on request made by the Company. There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous year.

Sales Tax Provision: The amounts in respect of sales tax represent the best possible estimates arrived on the available information. The uncertainties are dependent on the outcome of the different legal processes. The timing of the future cash flows will be determinable only on receipt of judgements/ decisions pending with various forums/ authorities. The said provisions primarily relate to subjudice matters under the erstwhile local sales tax acts, value added tax acts of respective states and the central sales tax act 1961.

36 LEASES

i) The Company''s major leasing arrangements are in respect of commercial premises (including furniture and fittings therein wherever applicable taken on leave and license basis), generally with a lease terms ranging between 2 and 10 years.

iii) Additions to the right-of-use assets during the year were '' 134.10 Crores (March 31, 2022: '' 49.47 Crores), which includes right-of-use assets building of '' 131.70 Crores (March 31, 2022: '' 47.61 Crores) and right-of-use assets deposit of '' 2.40 Crores (March 31, 2022: '' 1.86 Crores)

v) The total cash outflow for Leases for the year '' 47.40 Crores (March 31, 2022: '' 39.98 Crores)

vi) Variable lease payments

Some property leases contain variable payment terms that are linked to sales generated from a store. For individual store, lease payments are on the basis of variable payment terms with percentages on sales. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs.

vii) Extension and termination options

Extension and termination options are included in a number of leases across the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations.

37 COVID-19 - IMPACT ASSESSMENT

The Company has witnessed a strong revival after two years of disruptions caused by the Covid 19 pandemic and has infact entered a growth trajectory. Consequently, there is no impact of COVID-19 on the business operations of the entity in the current year. The financial results for the comparative period i.e. quarter and year ended March 31, 2022 were impacted due to the lockdowns and disruptions caused by the COVID-19 pandemic during the previous fiscal year.

38 SEGMENT REPORTING

In accordance with Accounting Standard Ind AS- 108 “Segmental Reporting”, the Company has determined its business segment as manufacturing and marketing of luggage, bags and accessories. Since more than 99% of business is from manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments. Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortisation during the year are all as is reflected in the financial statements as at and for the year ended March 31, 2023.

	(AH amounts in '' Crores, unless otherwise stated)
39 CONTINGENT LIABILITIES
Non Current Assets	As at	As at
	March 31, 2023	March 31, 2022
Claims against the Company not acknowledged as debts
Income tax matters	9.98	2.90
Sales tax matters	373.10	349.79
Excise and customs matters	0.55	0.55

The Company has implemented the decision given in the Supreme Court Judgement in case of “The Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir & Ors, Civil Appeal Number 6221 of 2011” dated February 28, 2019 for inclusion of certain allowances within the scope of "basic wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 w.e.f. March 01, 2019. Basis the assessment of the management, which is supported by legal advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.

#The company has made an irrevocable election at initial recognition, to recognise changes in fair value of equity securities which are not held for trading, through OCI, rather than profit and loss as these are strategic investments and the company considered this to be more relevant.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included in level 3.

There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

• Investments in quoted equity instruments are valued using the closing price at Bombay Stock Exchange (BSE) at the reporting period.

• the use of Net Assets Value (''NAV'') for valuation of mutual fund investment. NAV represents the price at which the issuer will issue further units and will redeem such units of mutual fund to and from the investors.-

• the fair value of the preference shares is determined based on present values and the discount rates used were adjusted for counterparty risk and country risk.

a) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, borrowings, Investment (commercial paper) and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

(b) The fair values and carrying value for security deposits, other financial assets and other financial liabilities are materially the same.

The Company''s risk management is carried out by a central treasury department under the guidance from the board of directors. Company''s treasury identifies and evaluates financial risks in close co-ordination with the Company''s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and nonderivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for managing the risk and methods used to measure the risk as compared to previous year.

1) Credit risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Credit risk mainly arises from receivables from customers, investments securities, cash and cash equivalents, and deposits with banks and financial institutions.

a) Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 242.66 Crores as at March 31, 2023 (March 31, 2022- '' 206.89 Crores). Trade receivables are typically unsecured and are derived from revenue earned from customers located in India as well as outside India. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, the country and the state in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

The average credit period on sales of products is Less than 120 days. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. The concentration of credit risk is limited due to the fact that the customer base is large.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of '' 21.53 crores (March 31, 2022: ''6.70 crores). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision.

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision

d) Investment in mutual funds:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties. 12-months expected credit losses is used as basis for recognition of loss provision.

e) Other financial assets:

Other financial assets are neither past due nor impaired. 12-months expected credit losses is used as basis for recognition of loss provision.

f) Investments in debt instruments:

Investments in debt instruments are neither past due nor impaired. Majority of the debt instruments are held within the group i.e. in subsidiaries of the Company.

2) Liquidity risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

3) Market risk :

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risks namely interest rate risk, currency risk and other price risk, such as commodity risk.

A) Market Risk- Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company closely monitors the movement in foreign currency exchange rates to strategise the timing operations and effectively optimise the overall exposure.

Unhedged foreign currency exposure

B) Market Risk- Other price risk (a) Exposure

The Company is mainly exposed to the price risk due to its investment in mutual funds and investment in equity instruments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. The price risk arises due to uncertainties about the future market values of these investments. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio The majority of the Company''s equity investments are publicly traded.

C) Market Risk- Interest rate risk

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

The sensitivity analysis below have been determined based on the exposure to interest rates for debt obligations at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is based on the currently observable market environment.

42B CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

B) Defined benefit plan a) Gratuity:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for fifteen days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to the "VIP Industries Limited Employees Gratuity Fund Trust". The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the defined benefit obligation asset/ (liability) recognised in the Balance Sheet.

b) Provident Fund

Provident fund for eligible employees is managed by the Company through the "VIP Industries Limited Employees Provident Fund Trust", in line with the Provident fund and Miscellaneous Provisions Act 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement whichever is earlier. The benefits vest immediately on rendering the services by the employee. The Company does not currently have any unfunded plans.

In terms of the guidance note issued by the Institute of Actuaries of India for measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions provided below, there is no shortfall as at March 31, 2023. The Company has contributed '' 4.03 Crores (March 31, 2022: ''3.18 Crores) towards VIP Industries Limited Employees Provident Fund Trust during the year ended March 31, 2023.

g) Terms and conditions

ALL transactions were made on normaL commerciaL terms and conditions and at market rates.

ALL outstanding balances are unsecured and are payable in cash.

45 EMPLOYEE STOCK APPRECIATION RIGHTS

The Nomination and Remuneration Committee of the Board of Directors of the Company at its meetings held on Oct 21, 2022, approved to grant new stock appreciation rights to eligible employees of the Company, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018 named ''ESARP 2018'' as approved by the shareholders of the Company on July 17, 2018. Accordingly, during the year the Company has granted 60,000 stock appreciation rights to eligible employees resulting in a net expense of '' 0.68 Crores during the year ended March 31, 2023. During the year ended March 31, 2023, the eligible employees of the company exercised 2,54,800 stock appreciation rights, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018. Consequently the Company has issued 1,81,794 fuLLy paid up equity shares of '' 2 each of the company during the year ended March 31, 2023, to the eligible employees, as approved by the Allotment Committee of the Board of Directors of the Company. Accordingly the company has transferred '' 4.03 Crores to the Securities Premium during the year ended March 31, 2023.

ii) Other commitments

For Lease commitments, refer note 36

48 EXCEPTIONAL ITEM

The Exceptional item of '' 15.00 Crores relates to a partial receipt of the insurance claim from the Insurance company against the claim lodged with reference to a loss of property, plant and equipment and inventories that were destroyed due to a fire at the Company''s regional warehouse at Ghaziabad on April 03, 2019. The Company expects to receive the baLance cLaim in the near future.

(iv) Wilful Defaulter

The company has never been declared as wilful defaulter by any bank or financial institution or government or any government authority.

(v) Relationship with struck off companies

The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(vi) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) 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.

(viii) Utilisation of borrowed funds and share 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) or

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.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(xi) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xiii) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were was taken.

51 The standalone financial statements are approved for issue by the board of directors at their meeting conducted on May 08, 2023.

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Mar 31, 2022

i) Contractual obligations :

Refer note 47 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

ii) For details pertaining to Title deeds of immovable properties not held in the name of Company, please refer note 50.

iii) Capital work-in-progress :

iv) The listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores are secured by a first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and were secured by immovable properties comprising of Industrial land and building situated at Plot No 78/78A, MIDC Estate, Satpur, Nashik, Maharashtra by way of mortgage.

The Listed, secured Redeemable, 7.45% Non- Convertible Debentures (NCDs) aggregating to '' 100 Crores were secured by a first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and immovable properties comprising of Industrial land and building situated at Sinnar in District Nashik, Maharashtra by way of mortgage. Subsequently the Company has exercised the call option for the Redeemable 7.45% NonConvertible Debentures (NCDs) aggregating to '' 100 Crores and repaid the same on July 30, 2021, together with the interest due thereon. (Refer Note 22)”

v) During the previous year, the Company had disposed off the property plant & equipments at its Haridwar Plant and accordingly, recognised a gain of '' 0.15 Crores under the head ‘Other Income''. (Refer Note 48)

Estimation of fair value

The Company obtains independent valuations for its investment properties at Least annually based on current prices in an active market for properties of similar nature or recent prices of similar properties. The fair value of investment properties is based on valuation by a independent registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuations) Rules, 2017. The main inputs used are the rental growth rates and market rates bases on comparable transactions.

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(c) Shares reserved for issue under options

Information relating to VIP Employees Stock Appreciation Rights Plan, including details of rights granted, exercised, forfeited and expired during the financial year and rights outstanding at the end of the reporting period, is set out in note 45.

1) Secured Borrowings:The Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores are secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and were secured by immovable properties comprising of Industrial land and building situated at Plot No 78/78A, MIDC Estate, Satpur, Nashik, Maharashtra by way of mortgage.

The Company had issued Listed, secured Redeemable, 7.45% Non- Convertible Debentures (NCDs) aggregating to '' 100 Crores which were secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and immovable properties comprising of Industrial land and building situated at the Sinnar in District Nashik, Maharashtra by way of mortgage. Subsequently the company has exercised the call option for the Redeemable 7.45% Non- Convertible Debentures (NCDs) aggregating to '' 100 Crores and repaid the same on July 30, 2021, together with the interest due thereon. (Refer Note 49)

2) Interest on Debentures has been calculated using effective interest rate method as per Ind AS 109. The same has been classified as current financial liability and shown separately.

3) The coupon rate for the Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores has been amended to 6.25% w.e.f. September 06, 2021 vide supplementary debenture trust deed executed with the debenture trustees.

4) The Charge on the current assets of the Company has been created for above mentioned working capital loans and undrawn borrowing facilities at the end of the reporting period. The working capital facilities are having maturity of less than 180 days from disbursement.

Disclosure of Trade payables and payable on capital purchases to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on request made by the Company. There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous year.

Sales Tax Provision: The amounts in respect of sales tax represent the best possible estimates arrived on the available information. The uncertainties are dependent on the outcome of the different legal processes. The timing of the future cash flows will be determinable only on receipt of judgements/ decisions pending with various forums/ authorities. The said provisions primarily relate to subjudice matters under the erstwhile local sales tax acts, value added tax acts of respective states and the central sales tax act 1961.

36 LEASES

i) The Company''s major leasing arrangements are in respect of commercial premises (including furniture and fittings therein wherever applicable taken on leave and license basis).

v) The total cash outflow for Leases for the year '' 39.98 Crores (March 31, 2021: '' 37.19 Crores)

vi) Income due to rent concession & modification

As part of its strategy to counter the impact of Covid 19 pandemic, the Company has continued to take various measures including changes in Lease payments in the form of Lease concessions and Lease terminations.

The Company continues to apply the practical expedient as per paragraph 46A of the Indian Accounting standard on Leases ‘Ind AS 116'', for accounting changes in leases, in the form of Lease concessions that meet the conditions prescribed in paragraph 46B of Ind AS 116. The Company has consequently recognised an income of '' 8.47 Crores for the Year ended March 31, 2022, under the head ‘Other Income''. For changes in leases in the form of terminations, the Company continues to account for such terminations in accordance with Ind AS 116 and has consequently recognised a net gain of '' 5.84 Crores for the Year ended March 31, 2022, under the head ‘Other Income''. Therefore the aggregate impact of lease concessions and terminations for the Year ended March 31, 2022, recognised under the head Other Income is '' 14.31 Crores.

37 COViD-19 - IMPACT ASSESSMENT

The Company''s operations and financial results for the quarter and year ended March 31, 2022 have seen signs of a robust recovery with the receding impact of the COVID 19 pandemic. The early part of the first quarter ended June 30, 2021 was adversely impacted due to the temporary slowdown caused by fresh restrictions that were imposed due to the surge in COVID-19.

The travel industry has been amongst the most affected segments in the economy since the outbreak of COVID 19. The Company has been closely monitoring the changes in the economic conditions and its possible impact on its business. The Company is experiencing a strong economic growth in the industry and has fully resumed operations across all locations including manufacturing plants and its supply chain functions. The Company has taken into account external and internal information for assessing possible impact of COVID-19 on various elements of its financial results and its liquidity, including assessment of recoverable value of its assets comprising trade receivables and others.

As per our current assessment no significant impact on the financial position of the Company is expected. The actual impact may differ from that estimated as at the date of approval of these financial results. The Company will continue to monitor any changes in the future economic conditions.

38 SEGMENT REPORTiNG

In accordance with Accounting Standard Ind AS- 108 “Segmental Reporting”, the Company has determined its business segment as manufacturing and marketing of luggage, bags and accessories. Since more than 99% of business is from manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments. Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortisation during the year are all as is reflected in the financial statements as at and for the year ended March 31, 2022.

The Company has implemented the decision given in the Supreme Court Judgement in case of “The Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir & Ors, Civil Appeal Number 6221 of 2011” dated February 28, 2019 for inclusion of certain allowances within the scope of “basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 w.e.f. March 01, 2019. Basis the assessment of the management, which is supported by legal advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. The Company has mutual funds & bonds for which all significant inputs required to fair value an instrument falls under level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included in level 3.

There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

♦ Investments in quoted equity instruments are valued using the closing price at Bombay Stock Exchange (BSE) at the reporting period.

♦ the use of Net Assets Value (‘NAV'') for valuation of mutual fund investment. NAV represents the price at which the issuer will issue further units and will redeem such units of mutual fund to and from the investors.

♦ the fair value of the preference shares is determined based on present values and the discount rates used were adjusted for counterparty risk and country risk.

a) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, borrowings, Investment (commercial paper) and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

(b) The fair values and carrying value for security deposits, other financial assets and other financial liabilities are materially the same.

42AFINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk, credit risk and interest risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The Company has a robust risk management framework comprising risk governance structure and defined risk management processes. The risk governance structure of the Company is a formal organisation structure with defined roles and responsibilities for risk management.

The Company''s risk management is carried out by a central treasury department under the guidance from the board of directors. Company''s treasury identifies, evaluates and hedges financial risks in close co-ordination with the Company''s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for managing the risk and methods used to measure the risk as compared to previous year.

1) Credit risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Credit risk mainly arises from receivables from customers, investments securities, cash and cash equivalents, and deposits with banks and financial institutions.

a) Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 206.89 Crores as at March 31, 2022 (March 31, 2021- '' 146.69 Crores). Trade receivables are typically unsecured and are derived from revenue earned from customers located in India as well as outside India. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, the country and the state in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals,establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The management continuously monitors the credit exposure towards the customers outstanding at the end of each reporting period to determine incurred and expected credit losses.Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The average credit period on sales of products is less than 120 days. Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. The concentration of credit risk is limited due to the fact that the customer base is large. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision table as above.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of '' 6.70 crores (March 31, 2021: ''11.31 crores). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating. 12-months expected credit losses is used as basis for recognition of loss provision

d) Investment in mutual funds:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties. 12-months expected credit losses is used as basis for recognition of loss provision.

e) Other financial assets:

Other financial assets are neither past due nor impaired. 12-months expected credit losses is used as basis for recognition of loss provision.

e) Investments in debt instruments:

Investments in debt instruments are neither past due nor impaired. Majority of the debt instruments are held within the group i.e. in subsidiaries of the Company.

2) Liquidity risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of risks namely interest rate risk, currency risk and other price risk, such as commodity risk.

A) Market Risk- Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company also uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments, highly probable forecast transactions and foreign currency required at the settlement date of certain receivables/payables. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the board of directors, which provide principles on the use of such forward contracts consistent with the Company''s risk management policy and procedures.

B) Market Risk- Other price risk

(a) Exposure

The Company is mainly exposed to the price risk due to its investment in mutual funds and investment in equity instruments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. The price risk arises due to uncertainties about the future market values of these investments. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio The majority of the Company''s equity investments are publicly traded.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in Line with the index.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

The sensitivity analysis below have been determined based on the exposure to interest rates for debt obligations at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is based on the currently observable market environment.

42B Capital management (a) Risk management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

B) Defined benefit plan

a) Gratuity:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for fifteen days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to the “VIP Industries Limited Employees Gratuity Fund Trust”. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the defined benefit obligation asset/ (liability) recognised in the Balance Sheet.

b) Provident Fund

Provident fund for eligible employees is managed by the Company through the “VIP Industries Limited Employees Provident Fund Trust”, in line with the Provident fund and Miscellaneous Provisions Act 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement whichever is earlier. The benefits vest immediately on rendering the services by the employee. The Company does not currently have any unfunded plans.

In terms of the guidance note issued by the Institute of Actuaries of India for measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions provided below, there is no shortfall as at March 31, 2022. The Company has contributed '' 3.18 Crores (March 31,2021: ''3.35 Crores) towards VIP Industries Limited Employees Provident Fund Trust during the year ended March 31, 2022.

45 EMPLOYEE STOCK APPRECiATiON RiGHTS

The Nomination and Remuneration Committee of the Board of Directors of the Company at its meetings held on Oct 29, 2021 and Feb 01, 2022, approved to grant new stock appreciation rights to eligible employees of the Company, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018 named ‘ESARP 2018'' as approved by the shareholders of the Company on July 17. 2018. Accordingly, during the year the Company has granted 2,85,000 stock appreciation rights to eligible employees resulting in a net expense of '' 1.69 Crores during the year ended March 31, 2022 respectively. During the quarter and year ended March 31, 2022, the eligible employees of the company exercised 45,700 and 2,25,200 stock appreciation rights respectively, in accordance with the terms and conditions of the VIP Employees Stock Appreciation Rights plan 2018. Consequently the Company has issued 33,872 fully paid up equity shares of '' 2 each during the quarter ended March 31, 2022 and a cumulative of 1,56,126 fully paid up equity shares of '' 2 each of the company during the year ended March 31, 2022, to the eligible employees, as approved by the Allotment Committee of the Board of Directors of the Company. Accordingly the company has transferred '' 3.03 Crores to the Securities Premium during the year ended March 31, 2022.

ii) Other commitments

For Lease commitments, refer note 36

48 As part of the several measures taken by the Company to optimise operations during the covid pandemic, the Company had decided to consolidate its India manufacturing operations by transferring the capacities at its plant at Hardwar to its plants at Nasik with a view to optimise costs and enhance control while maintaining its capacities. Consequently, the Board of Directors passed a resolution dated August 24, 2020 according their approval for the disposal of the immovable property at its plant at Hardwar (Land and Building). The Company disposed off the said immovable property during the previous year and recognised a gain of '' 13.29 Crores for the year ended March 31, 2021. The same has been disclosed under ‘Other Income''.

49 LiSTED REDEEMABLE NON- CONVERTiBLE DEBENTURES

The Company had issued Listed Redeemable 7.45% Non- Convertible Debentures (NCDs) aggregating to '' 100 Crores on July 30, 2020 and Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores on September 07, 2020. Subsequently the company has exercised the call option for the Redeemable 7.45% NonConvertible Debentures (NCDs) aggregating to '' 100 Crores and repaid the same on July 30, 2021, together with the interest due thereon.

The coupon rate for the Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores has been amended to 6.25% w.e.f. September 06, 2021 vide supplementary debenture trust deed executed with the debenture trustees.

b) Credit Rating and change in credit rating (if any)- The Non Convertible Debentures issued by the Company are rated “CRISIL AA/STABLE”

c) Security cover: The Company has maintained the requisite asset cover as per the terms of the Debenture Trust Deed.

The Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to '' 50 Crores are secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and were secured by immovable properties comprising of Industrial land and building situated at Plot No 78/78A, MIDC Estate, Satpur, Nashik, Maharashtra by way of mortgage.

The Listed, secured Redeemable, 7.45% Non- Convertible Debentures (NCDs) aggregating to '' 100 Crores were secured by a first pari passu charge on the current assets of the Company by way of Hypothecation and first exclusive charge on the Fixed Assets (including movables comprising of Plant and Machineries) and immovable properties comprising of Industrial land and building situated at the Sinnar in District Nashik, Maharashtra by way of mortgage, which have been redeemed during the year.

(ii) Details of Benami property Held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) Borrowings secured against current assets

The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.

(iv) Wilful Defaulter

The company has never been declared as wilful defaulter by any bank or financial institution or government or any government authority.

(v) Relationship with struck off companies

The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(vi) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) 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.

(viii) Utilisation of borrowed funds and share 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) or

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

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(xi) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xiii) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were was taken.

51 PREViOUS YEAR FiGURES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2018

Notes :

i) The company has opted to measure all of its property, plant and equipment at their previous GAAP carrying value. [Refer note 48(A.1.2)]

ii) Contractual obligations : Refer note 39 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

iii) Capital work-in-progress : Capital work-in-progress mainly comprises of moulds to be used for production

iv) Working capital loans from banks are secured by second charge on the fixed assets of the Company located at Sinnar.

# An amount of Rs 0.01 Crores (March 31, 2017: Rs 0.01 Crores) included in freehold land, Rs * Crores (March 31, 2017: Rs * Crores) included in leasehold land and Rs 0.96 Crores (March 31, 2017: Rs 1.44 Crores) included in building is yet to be registered in the name of the Company.

*Amount is below the rounding off norm adopted by the Company

Estimation of fair value

The Company obtains independent valuations for its investment properties at least annually based on current prices in an active market for properties of similar nature or recent prices of similar properties. The fair values of investment properties have been determined by an independent valuer. The main inputs used are the rental growth rates and market rates bases on comparable transactions. Resulting fair value estimate for investment are included in level 3.

iii) The company has opted to measure all of its investment property at their previous GAAP carrying value. [Refer note 48(A.1.2)]

iv) Leasing Arrangements (Refer Note 38)

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of each reserve

Capital reserve - This reserve was created in the Financial year 1987-88 and 1990-91. Capital reserves are created out of capital profits and are usually utilised for issue of Bonus Shares or to adjust capital losses.

Capital redemption reserve - Whenever there is a buy-back or redemption of the share capital, the nominal value of the capital is transferred to the capital redemption reserve out of the free reserves available for distribution. This reserve is usually utilised for issue of bonus shares. The said reserve was created in the financial year 1987-88 by erstwhile Blow Plast Limited, which was later-on merged with the Company in the financial year 2006-07. Securities premium reserve - Securities premium reserve is used to record the premium on issue of shares. This reserve is utilized in accordance with the provisions of the Companies Act 2013.

General reserve - General Reserve is a free reserve and is available for distribution as dividend, issue of bonus shares, buyback of the company''s securities. It was created by transfer of amounts out of distributable profits, from time to time.

Equity instruments through other comprehensive income - The Company has opted to recognize changes in fair value of certain investments in equity instruments through other comprehensive income, under an irrevocable option. These changes are accumulated within the FVOCI equity investments reserve within equity. The amount under this reserve is net of amounts reclassified to retained earnings when such instruments are disposed off.

Total _224.39 _151.96 _158.69

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on request made by the Company. There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous year.

Goods and Service Tax (GST) has been implemented from July 1, 2017. Consequently, excise duty, value added tax (VAT), Service tax etc. have been replaced with GST. Until June 30, 2017, ''Sale of products'' included the amount of excise duty recovered on sales. With effect from July 1, 2017, ''Sale of products'' excludes the amount of GST recovered. Accordingly, revenue from ''Sale of Products, and ''Revenue from operations'' for the year ended March 31, 2018 are not comparable with those of previous year.

Sales Tax Provision: The amounts in respect of sales tax represent the best possible estimates arrived on the available information. The uncertainties are dependent on the outcome of the different legal processes. The timing of the future cash flows will be determinable only on receipt of judgments/ decisions pending with various forums/ authorities. The said provisions primarily relate to subjudice matters under the erstwhile local sales tax acts, value added tax acts of respective states and the central sales tax act 1961.

Warranty: A provision for warranty has been recognized for the expected warranty claims on product sold based on past experience. It is expected that the majority of this expenditure will be incurred in the next 2-3 years.

38 Leases

As a leasee:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). These leasing arrangements which are cancellable, range 11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

The Company has given certain assets-building on leases. These leasing arrangements which are cancellable, range

11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

41 Segment reporting

In accordance with Accounting Standard Ind AS- 108 “Segmental Reporting”, the Company has determined its business segment as manufacturing and marketing of luggage, bags and accessories. Since more than 99% of business is from manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments. Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortization during the year are all as is reflected in the financial statements as at and for the year ended March 31, 2018.

There is no transactions with single external customer which amounts to 10% or more of the Company’s revenue.

(i) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. The Company has mutual funds for which all significant inputs required to fair value an instrument falls under level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included in level 3.

There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- Investments in quoted equity instruments are valued using the closing price at Bombay Stock Exchange (BSE) at the reporting period.

- the fair value of forward foreign exchange contracts is determined using forward exchange rates as at the balance sheet date, prevailing with Authorized Dealers dealing in foreign exchange.

- the use of Net Assets Value (''NAV'') for valuation of mutual fund investment. NAV represents the price at which the issuer will issue further units and will redeem such units of mutual fund to and from the investors.

- the fair value of the preference shares is determined based on present values and the discount rates used were adjusted for counterparty risk and country risk.

(iv) Valuation inputs and relationships to fair value

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.

See (ii) above for the valuation technique adopted.

(v) Valuation process

The fair value of unlisted preference shares are determined using discounted cash flow analysis by independent valuer.

a) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, borrowings and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

(b) The fair values and carrying value for security deposits, other financial assets and other financial liabilities are materially the same.

44A Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The company has a robust risk management framework comprising risk governance structure and defined risk management processes. The risk governance structure of the company is a formal organization structure with defined roles and responsibilities for risk management.

The Company risk management is carried out by a central treasury department under the guidance from the board of directors. Company''s treasury identifies, evaluates and hedges financial risks in close co-ordination with the company''s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for managing the risk and methods used to measure the risk as compared to previous year.

1) Credit risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Credit risk mainly arises receivables from customers, investments securities, cash and cash equivalents, and deposits with banks and financial institutions.

a) Trade receivables

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 176.57Crores as at March 31, 2018 (March 31, 2017- Rs.120.96 Crores; April 1, 2016 - Rs.149.33 Crores). Trade receivables are typically unsecured and are derived from revenue earned from customers located in India as well as outside India. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, the country and the state in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

The management continuously monitors the credit exposure towards the customers outstanding at the end of each reporting period to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The average credit period on sales of products is less than 90 days. Credit risk arising from trade receivables is managed in accordance with the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. The concentration of credit risk is limited due to the fact that the customer base is large. There is no customer representing more than 5% of the total balance of trade receivables. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision table as above.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of Rs. 17.05 Crores (March 31, 2017: Rs. 6.81 Crores and April 1, 2016: Rs. 4.39 Crores). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating.

d) Investment in mutual funds:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties.

e) Other financial assets:

Other financial assets are neither past due nor impaired.

2) Liquidity risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

A) Market Risk- Foreign currency risk.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company also uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments, highly probable forecast transactions and foreign currency required at the settlement date of certain receivables/payables. The use of foreign currency forward contracts is governed by the Company’s strategy approved by the board of directors, which provide principles on the use of such forward contracts consistent with the Company’s risk management policy and procedures

The company mainly exposed to USD. The below table demonstrates the sensitivity to 1% increase or decrease in the USD against INR with all other variables held constant. The sensitivity analysis is prepared on the unheeded exposure of the company as at the reporting date.

‘Amount is below the rounding off norm adopted by the Company

B) Market Risk- Price risk.

(a) Exposure

The company is mainly exposed to the price risk due to its investment in mutual funds and investment in equity instruments held by the company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. The price risk arises due to uncertainties about the future market values of these investments. To manage its price risk arising from investments in equity securities, the company diversifies its portfolio The majority of the company''s equity investments are publicly traded and are included in the BSE Sensex 30 index.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company’s equity and Gain/ Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

44B Capital management (a) Risk management

The company’s objectives when managing capital are to safeguard the company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt

B) Defined benefit plan

a) Gratuity:

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for fifteen days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to the "VIP Industries Limited Employees Gratuity Fund Trust". The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the Balance Sheet.

vi) Risk exposure

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: Investment risk, interest rate risk, salary risk._

Investment risk: The present value of the defined benefit liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments. Interest risk: A fall in the discount rate which is linked to the G. Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increase the mark to market value of the assets depending on the duration of asset.

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

vii) Defined benefit liability and employer contributions

The company expects to make a contribution for the year ending March 31, 2019 is Rs. 2.12 Crores (March 31, 2018: Rs.0.51 Crores, March 31, 2017: Rs. 4.66 Crores) to the defined benefit plans during the next financial year.

b) Provident Fund

Provident fund for eligible employees is managed by the Company through the "VIP Industries Limited Employees Provident Fund Trust", in line with the Provident fund and Miscellaneous Provisions Act 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement whichever is earlier. The benefits vest immediately on rendering the services by the employee. The Company does not currently have any unfunded plans.

In terms of the guidance note issued by the Institute of Actuaries of India for measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions provided below, there is no shortfall as at March 31, 2018. The Company has contributed Rs.2.93 Crores (March 31,2017: Rs.2.58 Crores; April 1, 2016: Rs. 2.29 Crores) towards VIP Industries Limited Employees Provident Fund Trust during the year ended March 31, 2018.

c) Other long term employee benefits:

Leave obligation

The leave obligation cover the company’s liability for privilege leave and sick leave

Based on the past experience, the group does not expect all employees to avail full amount of accrued leave or require payment for such leave within the next 12 months.

b) Key management personnel

Name Nature of relationship

Mr Dilip G. Piramal Chairman and Managing Director

Ms. Radhika Piramal Vice Chairperson and Executive Director

Mr. Ashish K Saha Director Works

c) List of Others over which key management personnel or relatives of such personnel exercise significant influence or control and with whom transaction have taken place during the year:

Name Nature of relationship

^{DGP Securities Limited} Mr. Dilip G. Piramal - Chairman and Managing Director of the

Company is also Director of DGP Securities Limited.

^Kemp & ^{Company Limited} Mrs. Shalini D. Piramal, Managing Director of KEMP &

Company Limited is wife of Mr. Dilip G. Piramal, Chairman and Managing Director of the Company.

^{Indian Merchants Chambers (IMC)} Mr. Dilip G. Piramal - Chairman and Managing Director of the __Company was President of IMC till June 28, 2016_

d) Trust

VIP Industries Limited Employees Gratuity Fund Trust VIP Industries Limited Employees Provident Fund Trust

47 Specified bank notes

i The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.

ii Following are the details of holdings as well as dealings in Specified Bank Notes for the previous year ended March 31, 2017.

48 First Time Adoption of Ind AS Transition to Ind AS

These are the Company’s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the company’s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company opted to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

A.1.2 Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property.

Ind AS 101 permits a first-time adopter to opt to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities if any. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment properties covered by Ind AS 40 Investment Properties.

Accordingly, the company has opted to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value and use the same as deemed cost in the opening Ind AS balance sheet.

A.1.3 Designation of previously recognized financial instrument

Ind AS 101 allows an entity to recognize investments in equity instruments at fair value through other comprehensive income (FVOCI) through an irrevocable election on the basis of the facts and circumstances at the date of transition to Ind AS.The company has opted to apply this exemption for its investment in quoted equity investments.

A.1.4 Investment in subsidiaries and joint ventures

The Company has opted to measure its equity investment in subsidiaries and joint ventures at its previous GAAP carrying values which shall be the deemed cost as at the date of transition to Ind AS.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity’s estimates in accordance with Ind AS’s at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP

- Investment in equity instruments carried at FVTPL or FVOCI

- Investment in debt instruments carried at FVTPL

- Impairment of financial assets based on expected credit loss model

Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by previous GAAP.

A.2.2 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Note 1:Investment property

Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

Note 2: Fair valuation of investments

Under the previous GAAP, investments in equity instruments, debt instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments recognized at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2017 which reduced the retained earnings by Rs. 0.63 Crores as at March 31, 2017 (increased by Rs. 0.64 Crores as at April 1, 2016).

Fair value changes with respect to investments in equity instruments have been recognized in ‘Other reserves

- FVOCI-Equity investment’ as at the date of transition and subsequently in the other comprehensive income for the year ended 31 March 2017. Consequently other reserves have been increased by Rs. 0.39 Crores as at March 31, 2017 ( increased by Rs. 0.32 Crores as at April 1, 2016).

Consequent to the above, the total equity decreased by Rs. 0.25 Crores as at March 31, 2017 ( increased by Rs. 0.96 Crores as at April 1, 2016) and profit for the year ended March 31, 2017 decreased by Rs. 1.27 Crores and other comprehensive income for the year ended March 31, 2017 increased by Rs. 0.06 Crores.

Note 3: Long-term receivable

Under the previous GAAP, interest free long-term receivable are to be recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the company has fair valued these long-term receivable on sale of property under Ind AS. Difference between the fair value and transaction value of the receivable has been recognized in equity as at the date of transition. Consequent to this change, the amount of receivable decreased by Rs. 0.66 Crores as at March 31, 2017 ( decreased by Rs. 0.94 Crores as at April 1, 2016). The profit for the year and total equity as at March 31, 2017 increased by Rs. 0.28 Crores due to notional interest income recognized on the receivable.

Note 4: Security deposits - Paid

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the amount of security deposits decreased by Rs. 3.76 Crores as at March 31, 2017 (decreased by Rs. 3.30 Crores as at April 1, 2016). The prepaid rent increased by Rs. 3.47 Crores as at March 31, 2017 ( increased by Rs. 3.01 Crores as at April 1, 2016). Total equity decreased by Rs. 0.29 Crores as at April 1, 2016. The profit for the year and total equity as at March 31, 2017 decreased by Rs. 0.01 Crores due to amortization of the prepaid rent of Rs. 1.26 Crores which is partially off-set by the notional interest income of Rs. 1.25 Crores recognized on security deposits.

Note 5: Trade receivables

As per Ind AS 109, the company is required to apply expected credit loss model for recognizing the allowance for doubtful debts. As a result, the allowance for doubtful debts remained at the same level as earlier resulting in no impact to the Profit for the year ended March 31, 2017 and to the total equity as at March 31, 2017 and as at April 1, 2016.

Note 6: Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs.

23.81 Crores as at April 1, 2016 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 7: Security deposits - Received

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognized at fair value. Accordingly, the company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as unearned income. Consequent to this change, the amount of security deposits decreased by Rs.0.19 Crores as at March 31, 2017 ( decreased by Rs. 0.20 Crores as at April 1, 2016). The unearned income increased by Rs. 0.17 Crores as at March 31, 2017 ( increased by Rs. 0.18 Crores as at April 1, 2016). Total equity increased by Rs. 0.02 Crores as at April 1, 2016. The profit for the year and total equity as at March 31, 2017 decreased by Rs. * due to amortization of the unearned income of Rs. 0.11 Crores which is partially off-set by the notional interest expense of Rs. 0.11 Crores recognized on security deposits.

Note 8: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs 1.83 Crores. There is no impact on the total equity as at March 31, 2017.

Note 9: Excise duty

Under the previous GAAP, revenue from sale of products was presented net of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 31.03 Crores. There is no impact on the total equity and profit.

Note 10: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

Note 11: Deferred tax

Deferred taxes impact of the above adjustments, wherever applicable have been recognized on transition to Ind AS.

Note 12: Financial instruments - derivatives

Under the previous GAAP, forward contracts were accounted for as prescribed under AS 11 “ The Effects of Changes in Foreign Exchange Rates”, under which forward premium was amortized over the period of forward contract and forward contracts were restated at the closing spot exchange rate. Under Ind AS 109, all derivative financial instrument are to be marked to market and any resultant gain or loss is to be charged to the statement of profit and loss. Accordingly, the marked to market has been recognized and forward premium unamortized balance has been derecognized. As a result of this adjustment, the total equity as at March 31, 2017 decreased by Rs. * Crores (decrease by Rs. 0.01 Crores as at April 01, 2016 ). The profit for the year ended March 31, 2017 is decreased by Rs. * Crores.

Note 13: Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments. Note 14: Discount

Under the previous GAAP, discounts and rebates paid to customers were recorded as part of expenses in the statement of profit and loss. However, under Ind AS, these expenses are netted off against revenue. This change has resulted in decrease in total revenue and total expenses for the year ended 31 March 2017 by Rs. 23.66 Crores. There is no impact on the total equity and profit.

*Amount is below the rounding off norm adopted by the Company

49 Previous year figures

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

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Mar 31, 2017

(b) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs.2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on request made by the Company. There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous year.

1. Segment reporting

In accordance with Accounting Standard 17 “Segmental Reporting”, the Company has determined its business segment as manufacturing and marketing of luggage, bags and accessories. Since more than 99% of business is from manufacturing and marketing of luggage, bags and accessories, there are no other primary reportable segments. Thus, the segment revenue, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortization during the year are all as is reflected in the financial statements as at and for the year ended March 31, 2017. The Company is primarily operating in domestic market and hence there are no reportable geographical segments.

(b) Defined benefit plan Gratuity :

The Company operates a gratuity plan through the "VIP Industries Limited Employees Gratuity Fund Trust". Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

Provident fund:

Provident fund for employees is managed by the Company through the "VIP Industries Limited Employees Provident Fund Trust", in line with the Provident fund and Miscellaneous Provisions Act 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the company or retirement whichever is earlier. The benefits vest immediately on rendering the services by the employee. The Company does not currently have any unfunded plans.

2. Leases

As a leasee:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). These leasing arrangements which are cancellable, range 11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

3. Previous year figures

Previous year figures have been reclassified to conform to this year’s classification.

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Mar 31, 2016

1 ASSETS TAKEN ON LEASE:-

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs, 42.05 Crores (previous year Rs, 38.61 Crores ) are charged as Rent and grouped under the Note No. 27 “Other Expenses”. These leasing arrangements which are cancellable, range 11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

2. SEGMENT REPORTING:

Segment Information for the year ended 31^st March, 2016

The Company has two primary business segments, viz i. Luggage, Bags & Accessories and ii. Furniture. Since the segment revenue, segment result and segment assets of the segment ''Furniture'' is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is reportable. Further the geographical segment revenue, segment result and segment assets of the business of the segment ''Outside India'' is less than 10% of the respective totals, no geographical business segment is reportable.

3. RELATED PARTY DISCLOSURES:

A) Name of the related party and description of relationship

Name of Related Parties Nature of Relationship

Parties where control exists:

Blow Plast Retail Ltd. Wholly owned Subsidiary Company

VIP Industries Bangladesh Pvt Ltd. Wholly owned Subsidiary Company

VIP Nitol Industries Ltd. Joint Venture (Refer Note No. 10.1)

Key Management Personnel:

Mr. Dilip G. Piramal Whole time Director & Chairman

Ms. Radhika Piramal Managing Director

Mr. Ashish K Saha Director Works

Companies where Directors are interested:

Indian Merchants'' Chambers (IMC) Mr. Dilip G. Piramal - Whole time Director & Chairman of the Company is President of IMC w.e.f. 18.06.2015 DGP Securities Limited Mr. Dilip G. Piramal - Whole time Director & Chairman of the Company is also Director of DGP Securities Limited KEMP & Company Limited Mrs. Shalini D. Piramal, Managing Director of KEMP &Company Limited w.e.f. 26.03.2015 is wife of Mr. Dilip G. Piramal, Whole time Director & Chairman of the Company

Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund/gratuity/leave encashment and Compensated absences for sick leave. In case of funded scheme, the funds are recognized by the Income tax authorities and administered through trustees / appropriate authorities. The Company''s defined benefit plans include provident fund/ gratuity/leave encashment and Compensated absences for sick leave. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the yearend no shortfall remains unprovoked for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually. Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

The following table sets out the assumptions taken, status of the gratuity plan/leave encashment and Compensated absences for sick leave the amount recognized in the Company Financial Statements as on 31^st March, 2016

Notes:

a) The Closing Balance includes Rs, 0.68 Crores as Short Term and Rs, 1.35 Crores as Long Term in Current year (Previous year Rs, 0.53 Crores as short Term and Rs, 1.07 Crores as Long Term)

b) A Provision has been recognized for the expected Warranty Claims on Product Sold based on past experience. It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

4. DERIVATIVES :

A) HEDGED :The Company has entered into Forward Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

5. CORPORATE INFORMATION

VIP INDUSTRIES LTD. ( the ''Company) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). The Company is Asia''s No.1 Luggage manufacturer and heralded the birth of modern luggage in India. The Company has manufacturing facilities at various locations across India. The Company has set up a wholly owned subsidiary in Bangladesh under the name and style VIP Industries Bangladesh Private Limited to manufacture and market luggage and bags.

6. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES:

A) BASIS OF ACCOUNTING:

The Financial Statements have been prepared under the historical cost convention on an accrual basis and comply in all material aspects with the mandatory accounting standards and the relevant provisions of the Companies Act, 2013.

B) USE OF ESTIMATES :

The presentation and preparation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting year. Difference between the actual result and the estimates are recognized in the year in which the results are known / materialized.

C) INVENTORY:

(i) Raw materials, components, stores & spares, packing material, Work-in-Process & finished goods are valued at lower of cost and net realizable value.

(ii) Cost of Raw Materials, components, stores & spares and packing material are valued at Weighted Average Cost.

(iii) Cost of inventory includes purchase cost/cost of conversion and other costs incurred in bringing the inventory to their present location and condition.

(iv) Scrap is valued at net realizable value.

D) CASH AND CASH EQUIVALENTS :

Cash and Cash equivalents for the purpose of cash flow statements comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

E) REVENUE RECOGNITION :

Sale & Sale of Services

(i) Sales are recognized when goods are supplied and are recorded inclusive of Excise Duty and net off Value Added Tax and trade discount.

(ii) Revenues from Services are recognized as and when services are rendered.

Other Income

Interest income is recorded on a time proportion basis taking into account the amounts invested and rate of interest.

Export Benefits

All export benefits other than advance license benefits are accounted for on accrual basis.

Dividends

Dividend is accounted when the right to receive the dividend is established.

F) FIXED ASSETS AND DEPRECIATION:

(i) The depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act,2013 except in respect of the following categories of assets, in which life of the assets has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support etc.

(ii) Intangible assets are identified when the assets are expected to provide future enduring economic benefits. The assets are identified in the year in which the relevant asset is put to use in the production or supply of goods or services. The assets are mortised over a period of estimated useful life as determined by the management.

- Expenditure on trademarks is amortized over a period of ten years on straight line method.

- Expenditure on patents is amortized over a period of ten years on straight line method or over the period of control, whichever is earlier.

- Expenditure on Computer Software is mortised over a period of three years on straight line method.

G) FOREIGN CURRENCY TRANSACTIONS :

(i) In respect of foreign exchange transaction, the transaction in foreign currency is recorded in rupees by applying the exchange rate prevailing on the date of the transaction. Amount short or excess realized/incurred is transferred to Statement of Profit and Loss.

(ii) All foreign currency liabilities / assets not covered by forward contracts, are restated at the rates prevailing at the year end and any exchange differences are debited / credited to the Statement of Profit & Loss .

(iii) In respect of transaction covered by forward contracts, the difference between the contract rate and the spot rate on the date of transaction is charged to the Statement of Profit & Loss over the period of the contract.

H) GOVERNMENT GRANTS & SUBSIDY:

The Government Grants are treated as deferred income. The deferred income is recognized in the Statement of profit and loss/ retained earnings on systematic and rational basis over the periods necessary to match them with the related costs, which they are intended to compensate.

I) INVESTMENTS:

Long term investments are stated at cost. Provision for diminution in value of long term investment is made only if such decline is other than temporary in the opinion of the management. Current investment are carried individually, at the lower of cost and fair value.

J) EMPLOYEE BENEFITS:

(i) Short term employee benefits are recognized as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Contribution payable to the recommended Provident Fund is charged to Statement of Profit and Loss.

(iii) Liabilities in respect Gratuity & Leave Encashment which are defined benefit plans other than provident fund schemes are determined based on actuarial valuation made by an independent actuary as on the balance sheet date. The actuarial gains or losses are recognized immediately in the Statement of Profit and Loss.

K) SEGMENT REPORT:

(i) The company identifies primary segment based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segment are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

(ii) The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

L) BORROWING COST :

Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale as per Accounting Standard 16 “Borrowing Cost”. All other borrowing costs are charged to revenue.

M) EARNINGS PER SHARE :

Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares except where the results would be anit-dilutive. The numbers of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential equity shares.

N) TAXATION :

(i) Provision for income tax is made on the basis of the taxable income for the current accounting period in accordance with the provisions of Income Tax Act, 1961.

(ii) The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax asset arising from timing differences are recognized to the extent there is a virtual certainty that this would be realized in future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

O) LEASE :

(i) Lease rentals in respect of assets acquired under operating leases are charged to the Statement of Profit and Loss.

(ii) Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.

(iii) Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc., are recognized immediately in the statement of profit and loss.

P) Research and Development Expenses

Revenue expenditure pertaining to research is charged to Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product''s technical feasibility has been

established, in which case such expenditure is capitalized. The amount capitalized comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilized for research and development and depreciated in accordance with the policies stated for Fixed Assets.

Q) IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

R) PROVISION AND CONTINGENT LIABILITIES:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

S) OPERATING CYCLE:

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization 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 noncurrent.

7. Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

8. During the year, the Company has made a provision of Rs, 0.35 Crores (Previous Year Rs, 0.28 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

9. In the opinion of the Board, amounts of Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to at which they are stated.

10. The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation.

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Mar 31, 2015

1.Terms/rights attached to equity shares:

The Company has only one class of Issued, subscribed and fully paid up shares referred to as Equity Shares having a par value of Rs. 2 each. Each holder of Equity Share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. The Board of Directors have recommended a final dividend of Rs. 1 (previous year Rs. 1.2) per share on par value of equity share of Rs. 2.0 each amounting to Rs. 14.13 Crores (previous year Rs. 16.96 Crores) for the financial year 2014-15. An interim dividend of Rs. 0.5 per share (previous year Rs. 0.5) amounting to Rs. 7.07 Crores (previous year Rs. 7.07 Crores) was paid during the financial year 2014-15. Hence, total dividend declared for the financial year 2014-15 would be Rs. 1.5 per share (previous year Rs. 1.7) amounting to Rs. 21.20 Crores (previous year Rs. 24.02 Crores) and Dividend Distribution Tax Rs. 4.29 Crores (previous year Rs. 4.08 Crores).

3. Leasehold Land

Lease hold land includes original cost of Rs. Nil (Previous Year Rs. 0.21 Crores), further Building includes original cost of Rs. Nil (Previous Year Rs. 2.15 Crores) and net block Rs. Nil (Previous Year Rs. 0.42 Crores) being assets held for sale. The same has been valued at lower of cost and Net Realisable value.

4. Building

Buildings include Original cost of Rs. 0.70 Crores (previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares of Rs. 50 each of Co-operative housing societies.

5. Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores ( Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand ( SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

6. Obsolescence of Fixed Assets

Deduction/Adjustment includes Obsolescence of Fixed Assets done during the Year.

7. Pursuant to Schedule II to the Companies Act, 2013 (''the Act'') effective from April 1,2014, the Company has revised depreciation rates on tangible fixed assets except Moulds, Furniture & Fixtures and Computer Server as per useful life specified in Part ''C'' of Schedule II of the Act. Due to the same there has been a change in the estimated useful life of depreciable tangible assets which has affected the depreciation for the year ending 31st March 2015 and also for subsequent years during the remaining useful life of the assets.

Accordingly, the Company has re-worked depreciation with reference to the estimated economic lives of Fixed Assets prescribed by Schedule II of the Act during the year ended 31st March 2015. In case of an asset whose life is completed before 1st April 2014, the carrying amount (Net of residual value) of Rs. 4.70 Crores has been adjusted to the Retained Earnings after adjusting impact of deferred tax of Rs. 1.63 Crores and in other cases the carrying amount has been depreciated over the remaining revised useful life of the assets. As a result the charge for depreciation is higher by Rs. 2.59 Crores for the year ended 31st March 2015.

8. During the year application has been filed for voluntary winding up of the VIP Nitol Industries Limited. The company has already made provision for diminution in value of investment of Rs. 2.12 Crores in the accounts. Consequently the disclosure under AS 27 "Joint Venture" is not applicable.

9. The Balances can be utilized only towards settlement of the unpaid dividend/unpaid matured deposits.

10. Margin money deposits amounting to Rs. 0.07 Crores (Previous Year Rs.0.81 Crores) are lying with bank against Bat Guarantees and Letter of credit.

11. a) CONTINGENT LIABILITY

1) Claims against the company not acknowledged as Debts 0.04 0.04

2) Disputed Income Tax Liability 2.23 3.11

3) Disputed Sales Tax Liability 115.44 77.43

4) Bonds issued under EPCG scheme 4.71 4.41

5) Disputed Excise duty liability 0.80 0.41

6) Disputed Employees state insurance corporation Liability. 0.08 0.08

12. The Carlton Travel Goods Limited (CTG) was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December, 2011.Provision for Diminution in value of investment of Rs. 1.66 Crores was already made in the books, in earlier year. During the previous year the company had received approval from Reserve Bank of India to write off the investment in CTG and accordingly the investment of. Rs.1.66 Crores had been written off during the previous year.

13. ASSETS TAKEN ON LEASE:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 38.61 Crores (previous year Rs. 36.61 Crores) are charged as Rent and grouped under the Note No. 27 "Other Expenses". These leasing arrangements which are cancellable, range 11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 1.42 Crores (previous year Rs. 1.33 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 21 "Other Income".

14. SEGMENT REPORTING:

Segment Information for the year ended 31st March 2015

The Company has two primary business segments, viz i.Luggage, Bags & Accessories and ii. Furniture. Since the segment revenue, segment result and segment assets of the segment ''Furniture'' is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total revenue, geographical segment is reported as the secondary segment.

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

15. RELATED PARTY DISCLOSURES:

A) Name of the related party and description of relationship

Name of Related Parties Nature of Relationship

Parties where control exists:

Blow Plast Retail Ltd. Wholly owned Subsidiary Company

VIP Industries Bangladesh Pvt Ltd. Wholly owned Subsidiary Company

VIP Nitol Industries Ltd. Joint Venture (Refer Note No. 10.1)

Key Management Personnel:

Mr Dilip G. Piramal Whole time Director W.e.f. 15.05.2013 and Chairman

Ms. Radhika Piramal Managing Director

Mr. Ashish K Saha Director Works

Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity,leave encashment and Compensated absences for sick leave. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Company''s defined benefit plans include provident fund, gratuity,leave encashment and Compensated absences for sick leave. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually. Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

Notes:

a) The Closing Balance includes Rs. 0.54 Crores as Short Term and Rs. 1.07 Crores as Long Term in Current year (Previous year Rs. 0.43 Crores as short Term and Rs. 0.85 Crores as Long Term)

b) A Provision has been recognised for the expected Warranty Claims on Product Sold based on past experience. It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

16. CORPORATE INFORMATION

VIP INDUSTRIES LTD. ( the ''Company) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). The Company is Asia''s No.1 Luggage manufacturer and heralded the birth of modern luggage in India. The Company has manufacturing facilities at various locations across India. The Company has set up a wholly owned subsidiary in Bangladesh under the name and style VIP Industries Bangladesh Private Limited to manufacture and market luggage and bags.

17. Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

18. During the year there was fire in one of the plant of the Company and Properties & Inventories of the company were damaged. As the losses are fully recoverable from insurance company the same has been shown as receivable from insurance company. There is no impact on the Profit of the company for the year. In respect of losses which are being identified and quantified, the management expects that the losses are fully recoverable from insurance company and the same are being accounted on its determination.

19. During the year, the Company has made a provision of Rs. 0.28 Crores (Previous Year Rs. 0.52 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

20. In the opinion of the Board, amounts of Current Assets, Loans and Advances have value on realisation in the ordinary course of business at least equal to at which they are stated.

21. The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation.

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Mar 31, 2013

Note No. 1.1 :Terms/rights attached to equity shares:

a) The Company has only one class of Issued, subscribed and fully paid up shares referred to as Equity Shares having a par value of Rs. 2 each. Each holder of Equity Share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

b) The dividend of Rs.1 (Previous Year Rs. 1.60) per share has been proposed to be distributed to Equity shareholders for the year ended 31st March, 2013. The total amount of dividend shall be Rs.14.13 Crores and Dividend Distribution Tax Rs.2.40 Crores

Note No 2.1: Building

Buildings include Original cost of Rs. 0.70 Crores(previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares ofRs. 50 each of Co-operative societies.

Note No 2.2: Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores ( Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand (SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

Note 3.1: Goods in Transit

Raw Materials inventory includes Goods-in transit Rs. 0.06 Crores (Previous year Rs. 0.07 Crores) Finished Goods inventory includes Goods-in transit Rs. 0.04 Crores (Previous year Rs. 0.02 Crores) Stock-in-Trade inventory includes Goods-in transit Rs. 4.56 Crores (Previous vear Rs. 14.56 Crores)

Note No. 4.1

The Balances can be utilized only towards settlement of the unclaimed dividend/unclaimed matured deposits.

Note No. 4.2

Margin money deposits amounting to Rs. 1.36 Crores (Previous Year Rs. 3.21 Crores) are lying with bank against Bank Guarantees and Letter of credit.

5 ASSETS TAKEN ON LEASE:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and licence basis). The aggregate lease rentals of Rs. 35.82 Crores (previous year Rs. 26.66 Crores) as Rent are charged as Rent and grouped under the Note No. 26 "Other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 0.54 Crores (previous yearRs. 0.13 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 20 "Other Income".

6 SEGMENT REPORTING:

Segment Information for the year ended 31st March, 2013

The Company has three primary business segments, viz i.Luggage & Accessories ii. Furniture and iii Ladies Handbag. Since the segment revenue, segment result and segment assets of the segment ''Furniture'' and ladies Handbag'' are less than 10% of the respective totals, the same are considered insignificant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees I appropriate authorities. The Company''s defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

7 DERIVATIVES

HEDGED: The company has entered in to forward contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of curency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

8 CORPORATE INFORMATION

VIP INDUSTRIES LTD. (the ''Company) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is Asia''s No.1 Luggage manufacturer and heralded the birth of modern luggage in India. The Company has manufacturing facilities at various locations accross India. The Company has set up a wholly owned subsidiary in Bangladesh under the name and style of VIP Industries Bangladesh Private Limited to manufacture and market luggage.

9 Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

10 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected, pending clearances from the authorities in Bangladesh. Consequently the disclosure under AS 27 is not applicable. Further the Provision for Diminution in value of Investment of Rs. 2.12 Crores has already been made in the accounts.

11 The Carlton Travel Goods Limited was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December,2011.Provision for Diminution in value of investment of Rs. 1.66 Crores has already been made in the books, the same will be written off after obtaining approval from Reserve Bank of India for which application has already been made to Reserve Bank of India.

12 During the year, the Company has made a provision of Rs. 1.23 Crores (previous year Rs. 0.72 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

13 In the opinion of the Board, amounts of Current Assets, Loans and Advances have value on realisation in the ordinary course of business at least equal to at which they are stated.

14 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.

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Mar 31, 2012

Note No. 1.1 :Terms/rights attached to equity shares:

a) The Company has only one class of Issued, subscribed and fully paid up shares referred to as equity shares having a par value of Rs. 2 each. Each holder of equity share is entitled to one vote per share. The dividend pro- posed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

b) The amount of per share dividend of Rs. 1.60 (Previous Year Rs. 2) has been proposed to be distributed to equity shareholders for the year ended 31st March, 2012 including Interim Dividend paid during the year. The total amount of dividend shall be Rs. 22.61 Crores and Dividend Distribution Tax Rs. 3.67 Crores.

c) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note No. 1.2 :Aggregate number of shares allotted under the scheme of amalgamation during the period of five years immediately preceding the reporting date:

Pursuant to the Order dated 14th December, 2007 passed by the Hon'ble High Court of Judicature at Bombay sanctioning the scheme of Amalgamation of Aristocrat Luggage Limited and Quality Plastics Limited with V.I.P. Industries Limited (the Company), 28,01,650 Equity Shares of Rs. 10 each, (1,40,08,250 Equity Shares at par value of Rs. 2, post subdivision) of the Company were issued to the shareholders of erstwhile Aristocrat Luggage Ltd and erstwhile Quality Plastics Ltd.

Note No. 2.1

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

Note No 3.1: Buildings

Buildings include Original cost of Rs. 0.70 Crores (previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares of Rs. 50 each of Co-operative societies.

Note No 3.2 : Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores (Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand (SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

Note No:-4.1:-

The Carlton Travel Goods Limited was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December,2011.Provision for Diminution in value of investment of Rs. 1.66 Crores has already been made in the books, the same will be written off after obtaining approval from Reserve Bank of India.

5 ASSETS TAKEN ON LEASE:

The Company's major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 26.79 Crores (previous year Rs. 19.13 Crores) as Rent are charged as Rent and grouped under the Note No. 26 "Other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 0.13 Crores (previous year Rs. 0.13 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 20 "Other Income".

6 SEGMENT REPORTING:

Segment Information for the year ended 31st March, 2012

The Company has two primary business segments, viz i. Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment 'Furniture' is less than 10% of the respective totals, the same is not considered significant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

7 Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

8 During the year, the wholly owned subsidiary Carlton Travel Goods Limited, was dissolved with effect from 6th December, 2011 vide on order issued by the Registrar of Companies of England and Wales dated 13th December, 2011. The provision for doubtful recovery of the receivables from the subsidiary company was made in the year 2010-11. Subsequently, the company has received the approval from the Reserve Bank of India for the write off of these receivables amounting to USD 58,30,109 and Euro 1,20,917 (Approximately Rs. 27 Crores) and accordingly these receivables have been written off in the current year.

9 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. Consequently the disclosure under AS 27 is not applicable.

10 During the year the Company has made a provision of Rs. 0.72 Crores (previous year Rs. 0.64 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

11 In the opinion of the Board, amounts of Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to at which they are stated.

12 The Financial Statement for the year ended 31st March 2011 had been prepared as per the then applicable prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956 the financial statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year figures have also been regrouped/reclassified to confirm to the current year's classification.

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Mar 31, 2011

(Rupees in '000)

2011 2010

1. Contingent Liabilities not provided for in respect of:

a. Disputed Income Tax liability 22,517 26,659

b. Disputed Sales Tax liability 154,818 132,807

c. Disputed Property Tax - 100,756

d. Bills discounted with Bank - 163,522

e. Bonds issued under EPCG scheme 42,305 55,465

f. Disputed Excise duty liability 1,105 1,105

g. Claims against the Company not acknowledged as Debts 338 326

h. Disputed Employees state insurance corporation dues. 786 786

2. During the year the Company has made a provision of Rs. 64,17,386 (previous year Rs. 97,05,445 ) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods. There is no effect of this on the profit for the year.

3. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

4. The Ministry of Company Affairs, Government of India vide its Order No. 46/29/2011-CL-lll dated 18th January, 2011 issued under Section 211 (4) of the Companies Act, 1956, has exempted the Company from disclosure of details required to be provided under Paragraph 3(i)(a), 3(ii)(a), 3(ii)(b) of the part II of Schedule VI to the Companies Act, 1956.

5. Related Parties Disclosure :

1. Name of Related Parties & description of relationship

VIP Nitol Industries Ltd Joint Venture

Carlton Travel Goods Ltd. (A) Wholly owned Subsidiary Company

Blow Plast Retail Ltd. (B) Wholly owned Subsidiary Company

Ramgopal Polytex Ltd. Enterprise in which Key Management

Personnel had significant influence

Key Management Personnel:

Mr Dilip G. Piramal Chairman

Mr. Sudhir Jatia Managing Director (resigned 30/04/2010)

Ms. Radhika Piramal Managing Director (w.e.f 01/05/2010)

Mr. Premanand Thangavelu Director Works (w.e.f 27/07/2010)

6. Earning PerShare(EPS)-Thenumeratorsand denominators usedtocalculateBasicand Diluted Earning PerShare.

7 Segment Information for the year ended 31 st March 2011

The Company has two primary business segments, viz i.Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment 'Furniture' is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the assets outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

8 Employee Benefits:

The disclosures as required under the revised AS 15 are as under:

a) Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Company's defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

b) Contribution to Provident Fund Rs. 29,820,047 (Previous year Rs. 26,104,827)

c) Disclosures for Gratuity benefit plans based on actuarial reports as on 31/03/2011

9 Assets taken on Lease

The Company's major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 190,480,794 (previous year Rs. 194,708,978) as Rent are grouped under schedule of "Administrative, selling and other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 1,257,792 (previous year Rs. 3,076,338) from Operating leases are recognised in the Profit & Loss Account & grouped under the schedule of 'Other Income'.

10 Disclosure relating to Provisions

Provision related to Warranty

A Provision has been recognised for the expected Warranty Claims on Product Sold based on past experience.

It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

11 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. During the previous year the company has erroneously shown the said investment as written off instead of provision, however the same has been rectified in the Currrent year. Consequently the disclosure under AS 27 is not applicable.

12 During the year the Board has approved the write off (subject to the approval from the Reserve Bank of India) of the trade debtors due from its wholly owned subsidiary M/s Carlton Travel Goods Ltd to the extent of Rs. 27 Crores and a provision for Diminution in value of Investment in the said subsidiary to the extent of Rs. 1.7 Crores. The Company has applied to the RBI seeking approval for the write off of the trade debtors. Pending the approval, the Company has made a provision for the same. Accordingly an amount of Rs. 28.7 Crores is shown as Exceptional item in the Standalone results.

13 During the previous year, the Company had received Rs. 3,000,000 from SIDCUL, Uttaranchal towards capital Incentive for its Hardwar Plant. Accordingly an amount of Rs. 500,000 has been transferred to the Profit and Loss account on SLM basis.

14 Previous Year figures have been regrouped and/or rearranged wherever necessary.

15 Balances of Sundry Creditors, Sundry Debtors, Loans and Advances are subject to confirmation and consequential adjustment if any.

16 Figures in brackets are in respect of previous year.

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Mar 31, 2010

2010 2009 Rs in Lacs Rs in Lacs

1. Estimated amounts of Contracts remaining to be executed on 88 33 Capital Account and not provided for (net of advances).

2. Contingent Liabiiities not provided for in respect of:

a. Disputed Income Tax liability 2,67 3,99

b. Disputed Sales Tax liability 13,28 12,89

c. Disputed Property Tax 10,08 8,43

d. Bills discounted with Bank 16,35 1,49

e. Bonds issued under EPCG scheme 5,55 5,47

f. Disputed Excise duty liability 11 11

g. Claims against the Company not acknowledged as Debts 3 30 h. Disputed Employees State Insurance Corporation dues. 8 8

3 During the year the Company has made a provision of Rs. 97 lacs (previous year Rs. 48 lacs) for excise duty on closing stocks, other than goods meant for exports, in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods. Hence there is no effect of this on the profit for the year.

4. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

5. The Ministry of Company Affairs, Government of India vide its Order No. 46/13/2010-CL-lll dated 08th February, 2010 issued under Section 211(4) of the Companies Act, 1956, has exempted the Company from disclosure of details required to be provided under Paragraph 3(i)(a), 3(ii)(a), 3(ii)(b) of the part II of Schedule VI to the Companies Act, 1956.

6. Related Parties Disclosure :

1. Name of Related Parties & description of relationship

VIP Nitol Industries Ltd Joint Venture

Carlton Travel Goods Ltd. (A) Wholly owned Subsidiary Company

Blow Plast Retail Ltd. (B) Wholly owned Subsidiary Company

Ramgopal Polytex Ltd. Enterprise in which Key Management

Personnel had significant influence

Key Management Personnel:

Mr Dilip G. Piramal Chairman

Mr. Sudhir Jatia Managing Director

Ms. Radhika Piramal Executive Director (w.e.f 13/07/2009)

7 Segment Information for the year ended 31st March 2010

The Company has two primary business segments, viz i.Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment Furniture is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the sales outside India is more than 10% of the total sales, geographical segment is reported as the secondary segment.

8 Employee Benefits:

The disclosures as required under the revised AS 15 are as under:

a) Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

b) Contribution to Provident Fund Rs.2,61 lacs (Previous year Rs.2,49 lacs)

9 Assets taken / given on Lease

The Companys major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 19,47 lacs (previous year Rs 17,27 lacs) as Rent are grouped under schedule of "Administrative, selling and other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs.31 lacs (previous year Rs.37 lacs) from Operating leases are recognised in the Profit & Loss Account & grouped under the schedule of Other Income.

10 Disclosure relating to Provisions

Provision related to Warranty

A Provision has been recognised for the expected Warranty Claims on Products Sold based on past experience.

It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

11 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. During the current year the company has written off the amount of investments (net of provision for diminution in value of investments) as in the opinion of the management, the chances of recovery of the amount as per the sale agreement are remote. Further there are no activities in the Joint Venture. Consequently the disclosure under AS 27 is not applicable.

12 The Net worth of M/s. Carlton Travel Goods Ltd. (a wholly owned subsidiary company) is negative and the subsidiary company continues to incur losses. Based on the latest financial results of the subsidiary company, the subsidiary company may face financial hardships in repayment of its liabilities, majority of which are payable to the parent company. However the management of the company is hopeful of the recovery and turnaround of the subsidiary company, and accordingly the Equity Investment made of Rs. 1,66 lacs, loans given of Rs.15,71 lacs and sales receivable of Rs. 22,34 lacs have been considered good by the management. Accordingly no provision has been made for the same in the books of accounts.

13 During the year the company has changed its accounting policy of charging depreciation on Computer Hardware @ 25% as against 16.21% charged hitherto and Computer Software @ 33.33% as against 20% charged hitherto. Accordingly the retrospective impact of the depreciation of Rs.2,11 lacs short charged up to the period ended 31/03/2009 has been charged to profit and loss account and has been included in depreciation for the year. Further due to such change the written down value of such assets is understated by Rs.2,51 lacs and profit for the year is understated by Rs. 2,51 lacs (including the impact of the current year of Rs.40 lacs) and consequently the reserves.

14 The Cost of Materials is net of insurance claim received of Rs.Nil ( previous year Rs. 97 lacs)

15 Previous Year figures have been regrouped and/or rearranged wherever necessary.

16 Balances of Sundry Creditors, Sundry Debtors, Loans and Advances are subject to confirmation and consequential adjustment if any.

17 Figures in brackets are in respect of previous year.