JCRFASHION RETAIL PRIVATE LIMITED

REGISTERED OTTICE

23 Kalasagar Mall,
Ghatlocliya, Ahm edab ad

BOARD OF DIRECTORS

Jayesh Rajde
KetanT'ha?,kar

AUDITORS,
MEHTA SHETH & ASSOCIATES
Chartercd Accountants
A,hmedabad.
 MEHTA SHETH & ASSOCIATES 304, Poritosh, Nr. Dorpon Acodemy, Usmonpuro (River Side),
CHARTERED ACCOUNTANTS Ahmedobod - 390 013. Guiorot. lndio.

T : +91 79 2755 2653 I 1578, 4006 gttl t il W: www.mehrosherh.rom E, solil@mehtosheth.com, moniko@mehtosheth.rom

lndependent Auditotrs Report

To the Members of JCR Fashion Retai! private Limited

Report on the Audit of Financial Statements

Opinion

we have audited the accompanying financial statements of

JcR Fshion Retail private timited (,,the
company"), which comprise the Balance Sheet as at March
31, 2019, Statement of profit and
Loss and the cash Flow statement for the year then
ended, and a summary of significant
accounting policies and other explanatory information.

ln our opinion and to the best of our information and according

to the explanations given to us,
the aforesaid financial statements give the information required
by the companies Act, 2013
("the Act") in the manner so required and give a true
and fair view in coniormity with the
accounting principles generally accepted in lndia, of the
state of affairs of the company as at
March 3L, 20L9, and its profit and its cash flows for the year
ended on that date.

Basis for Opinion

we conducted our audit of the financial statements in accordance with

the standards on Auditing
(sAs) specified under section 143(10) of the Act. our
responsibilities under those standards are
further described in the "Auditor's Responsibility for the Audit of the
Financial Statements,,
section of our report. We are independent of the company in accordance
with the ,Code of
Ethics' issued by the lnstitute of Chartered Accountants of lndia (lCAl)
together with the ethical
requirements that are relevant to our audit of the financial statements
under the provisions of
the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in
accordance with these requirements and the lCAt's Code of Ethics.
We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion
on the financial statements.

!nformation other than Financial statements and Auditor/s Report rhereon

The Company's Board of Directors is responsible for the other information.

The other information
comprises the information included in the Boards' Report including Annexure
to Board,s Report,
but does not include the financial statements and our auditor's report thereon.

Page 1 of 11

Ahmedobod 0ffite , 71, Brohmin Mitro Mondol Society, 0pp. Jolorom Temple, Ellisbridge, Ahmedobod - 380 006. Guiorot. lndio. I T : +91 79 26587462
Gondhinogor0lfire, 90,| -902,Sholin, Plol-24,0pp. Petrol Pump,Sector- ll,Gondhinogor-38201'l. Guiorot. lndio. I I: +91 7923238848,23224889
 MEHTA SHETH & ASSOCIATES (ontinuotion Sheei

CHARTERED ACCOUNTANTS

our opinion on the financial statements does not

cover the other information and we do
express any form of assurance conclusion not
thereon.
ln connection with our audit of financial statements,
our responsibility is to read the other
information identified above and in doing so,
consider whether such other information is
materially inconsistent with the financiat statements
or our knowledge obtained in the audit or
otherwise appears to be materially misstated.

lf' based on the work we have performed, we conclude

that there is a material misstatement of
this other information, we are required to report
that fact, we have nothing to report in this
regard.

Responsibilities of Management for the Financiat

statements
The company's Board of Directors is responsible
for the matters stated in section 134(5) of the
Act with respect to the preparation of these financiat
statements that give a true and fair view of
the financial position, financial performance and
cash flows of the company in accordance
with
the accounting principtes generally accepted in lndia, including
the Accounting standards (AS)
specified under section 133 of the Act as amended.
This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions
of the Act for safeguarding of
the assets of the company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates
that are reasonable and prudent; and the design, implementation
and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation
and presentation of the
financial statements that give a true and fair view and
are free from material misstatement,
whether due to fraud or error.

ln preparing the financial statements, company management

is responsible for assessing the
company's ability to continue as a going concern, disclosing,
as applicable, matters related to
going concern and using the going concern basis of
accounting unless management either intends
to liquidate the company or to cease operations, or has no realistic
alternative but todo so.
The company management is also responsible for overseeing
the company,s financial reporting
process.

+\AH JT

Page 2 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet

CHARTERED ACCOUNTANTS

Auditol's Responsibilities for the Audit of the Financial statements

our objectives are to obtain reasonable assurance about whether

the financial statements as a
whole are free from material misstatement, whether due
to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance
is a high level of assurance, but
is not a guarantee that an audit conducted in accordance
with sAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with sAs, we exercise professional judgment
and maintain
professional skepticism throughout the audit. We also:

' ldentify and assess the risks of material misstatement of the financial
statements,
whether due to fraud or error, design and perform audit procedures
responsive
to those risks, and obtain audit evidence that is sufficient and appropriate
to
provide a basis for our opinion. The risk of not detecting
a materiat misstatement
resulting from fraud is higher than for one resulting from error,
as fraud may
involve collusion, forgery, intentional omissions, misrepresentations,
or the
override of internal control.

' obtain an understanding of internal control relevant to the audit in order

to design
audit procedures that are appropriate in the circumstances.
Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether
the
Company has adequate internal financial controls system in place
and the operating
effectiveness of such controls.

' Evaluate the appropriateness of accounting policies used and the

reasonableness
of accounting estimates and related disclosures made by management.

' conclude on the appropriateness of management's use of the going

concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant
doubt on
the Company's ability to continue as a going concern. lf we conclude that
a material
uncertainty exists, we are required to draw attention in our auditor,s report
to the
related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions
may
cause the company to cease to continue as a going concern.

Page 3 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet

CHARTERED ACCOUNTANTS

' Evaluate the overall presentation, structure

and content of the financial statements,
including the disclosures, and whether the
financial statements represent the
underlying transactions and events in a
manner that achieves fair presentation.
we ose charged with governance regarding,
among other matters,
the ming of the audiiand significant audit findings,
including any
sign internar controrthat we identify during
orr r,r-dit,
we also provide those charged with governance
with a statement that we have complied
with relevant ethical requirements regarding independence,
and to communicate with
them all relationships and other matters that may
reasonably be thought to bear on our
independence, and where appticable, related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor,s Report)

Order, 2016 (,,the Order,,), as
amended, issued by the central Government of lndia
in terms of sub-section (11) of
Section 143 of the Act. We give in the "Annexure
1,, a statement on the matters
specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report

that:
(a) we have sought and obtained all the information and explanations
which to
the best of our knowledge and belief were necessary
for the purposes of our
audiU

(b) ln our opinion, proper books of account as required

by law have been kept by
the company so far as it appears from our examination
of those books;
(c) The Balance sheet, the Statement of Profit and Loss
and the cash Flow
statement dealt with by this Report are in agreement
with the books of
account;

(d) ln our opinion, the aforesaid financial statements comply

with the Accounting
standards specified under section 133 of the Act, as
amended read with Rute
7 of The Companies (Accounts) Rules, 2Ot4;

(e) on the basis of the written representations received from the

directors as on
March 3L20L9 taken on record by the Board of Directors,
none of the directors
is disqualified as on March 3L,zoLgfrom being
appointed as a director in terms
of Section LG4 (2llof the Act;

Page 4 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet

CHARTERED ACCOUNTANTS

(f) with respect to the adequacy of the internal financial controls

over financial
reporting of the company with reference to these
financial statements and the
operating effectiveness of such controts, refer to
our separate Report in
'?nnexure 2,, to this report;
(g) with respect to the other matters to be included
in the Auditor,s Report in
accordance with Rule 11of the companies (Audit
and Auditors) Rules, 2o!4, as
amended in our opinion and to the best of our
information and according to the
explanations given to us:

i' No material litigations are pending against the company,

which will have
potential material impact on the financial statements
of the company;
ii' The company does not deal in long term contracts (inctuding
derivative
contracts) and hence, there is no need to make provisions,
as required under
applicable law or accounting standards for material
foreseeable losses on the
same;

iii' No amount needs to be transferred to the lnvestor Education and protection

Fund by the Company.

For Mehta Sheth & Associates

Chartered Accountants
Firm Registration No: 10623gW_-

6$,Ar\s-
CA. SalilG Sheth
Partner
Membership No.110500
Date: 4th September ,2}lrg
Place: Ahmedabad
U DIst' \q t 1e 9oo fi (1 eq I Bs"?5

Page 5 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet

CHARTERED ACCOIJNTANTS

Annexure "L" to the tndependent Auditors Report

(Referred to in Paragraph 1 under

"Report on other Legal & Regulatory Requirements,, section
of our report of even date)

1) ln respect of Company,s Fixed assets:

(a) The company has maintained proper records

showing
quantitative details and situation of fixed assets.
full particulars, including

(b) The fixed assets were physically verified during

the year by the Management in
accordance with a regular programme of verification
which in oui opinion, provides for
physical verification of all fixed assets at a
reasonable interval and no material discrepancies
were noticed on such verification.

(c) Accordingto information and explanations given to us and the records examined
by us,
we report that, the title deeds, comprising of all the immovable
properties are held in the
name of the company as at Balance Sheet date.

2l As explained to us the inventories were physically

verified by the management during the
year at reasonable intervals and no material
discrepancies noticed on physical verification.

3) The company has not granted any loans, secured or unsecured,

to companies, firms, and
Limited liability partnerships or other parties covered in the
register maintained under
section 189 of the Act. Accordingly, the provisions of clause
3(iii) (ai, (b) and (c) of the order
are not applicable to the company and hence not commented
upon.

4) ln our opinion and according to the information and explanations

given to us, the company
has complied with the provisions of sections 185 and 18G
of the Act in respect of grant of
loans, making investments and providing guarantees and
securities, as applicable.

5) The company has not accepted any deposits during the year and does not
have any
unclaimed deposits as at March 3L,2o7g an I therefore, the provisions
of clause 3 (v) of the
order are not applicable to the company.

5) Reporting under clause 3(vi) of the order is not applicable

as the company activities are not
covered by the companies (cost Records and Audit) Rules, zoL4.

7l According to the information and explanations given to us, in respect

of statutory dues:

Page 5 of 11
. MEHTA SHETH & ASSOCIATES
CHARTERED ACCOUNTANTS
Conlinuotion Sheet

(a) The company has generally been

regutar in depositing undisputed statutory
including lncome Tax, Tax deduction at sources, dues,
Excise, Vatue added Tax, central state
and other materialstatutory dues applicable Tax,
to it with ih. ,ppropriate authorities.
(b) There were no undisputed amounts payable
in respect of rncome Tax other material
statutory dues in arrears as at March 3L,2o7.gfor period
a of more than six months from the
date they became payable.

8) ln our opinion and according to the information and expranations given to us the company
has not defaulted inthe repayment of loans or borrowings to banks.
The company does not
have any loans or borrowings from financial institutions
or government and has not issued
any debentures.

9) The Company has not raised moneys by way

of initial public offer or further public offer
(including debt instruments) or term loans
and hence reporting under clause 3 (ix) of the
Order is not applicable.

10)To the best of our knowledge and according to

the information and explanations given to us,
no fraud by the company and no fraud on the
company by its officers or employees has been
noticed or reported during the year.

11)The provisions of section 197 as wetl as schedule

v to the act are not applicable to the
company and hence, clause 3(xi) is not commented
upon.

12)The company is not a Nidhi company and hence

reporting under clause 3(xii) of the order is
not applicable.

13) ln our opinion and according to the information

and exptanations given to us the company is
in compliance with section t77 and 188 of the Act,
where applicable, for alltransactions
with
the related parties and the details of related party transactions
have been disctosed in the
financial statements as required by the appticabre accounting
standards.

14) During the year, the company has not made

any preferential allotment or private placement
of shares or fully or partly convertible debentures and
hence reporting under clause 3(xiv) of
the order is not applicable to the company.

15) ln our opinion and according to the information and

explanations givento us, during the year
the company has not entered into any non-cash transactions
with its Directors or persons
connected to its Directors and hence provisions of section
L92 ofthe Act are not applicable.

Page 7 of 11
 MEHTA SHETH & ASSOCIATES Conlinuotion Sheet

CHARTERED ACCOUNTANTS

16)The company is not required to be registered

under section 45-l of the Reserve Bank of lndia
Act, 1934.

For Mehta Sheth & Associates

Chartered Accountants
Firm Registration No: 10G23gW

Partner i

Membership No.110500

Date: 4th September ,21lg

Place:Ahmedabad
DDrN, \q \\ agoo ftSRR \ BB-1lE

Page 8 of 11
 MEHTA SHETH & ASSOCIATES Continustion Sheet

CHARTERED ACCOUNTANTS

Annexure "2" to the lndependent Auditors Report of even date on the

Financial statement of JCR Fashion Retair private Limited

Report on the lnternal Financial Control under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reponing of JCR Fashion Retail private
Limited ("the Company")as of March 37,2o1rg in conjunction with our audit of the financialstatements
of the Company for the year ended on that date.

Management's Responsibility for Interna! Financial Controts

The Company's Management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of lnternal Financial
Controls over Financial Reporting issued by the lnstitute of Chartered Accountants of lndia. These
responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the Company's policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting with reference to these standalone financial statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of lnternal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued
by the lnstitute of Chartered Accountants of lndia. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting with reference to these
standalone financial statements was established and maintained and if such controls operated effectively
in all material respects.

our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls over financial reporting with reference to these standalone financial statements and
their operating effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting with ref_etence to these

Page 9 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet
. CHARTERED ACCOIINTANTS

standalone financial statements, assessing the risk that a material weakness exists, and
testing and
evaluating the design and operating effectiveness of internal control based on the
assessed risk. The
procedures selected depend on the auditor's judgement, including the assessment
of the risks of material
misstatement of the financial statements, whether due to fraud or error. We believe that
the audit
evidence.

We have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal
financial controls over financial reporting with reference to these standalone financial statements.

Meaning of tnternal Financial Controls over Financial Reporting with Reference to these Financial
Statements

A company's internal financial control over financial reporting with reference to these
standalone financial
statements is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally
accepted accounting principles. A company's internal financial control over financial reporting with
reference to these standalone financial statements includes those policies and procedures that

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the
transactions and dispositions of the assets of the company;

2l provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company,s
assets that could have a material effect on the financial statements.

lnherent Limitations of lnternal Financia! Controls Over Financial Reporting With Reference to these
Financial Statements

Because of the inherent limitations of internal financial controls over financial reporting with reference to
these standalone financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting with reference
to
these standalone financial statements to future periods are subject to the risk that the internal financial
control over financial reporting with reference to these standalone financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Page 10 of 11
 MEHTA SHETH & ASSOCIATES Continuotion Sheet

CHARTERED ACCOI]NTANTS

Opinion

ln our opinion, the Company has, in all material respects, adequate internal financial controls over
financial reporting with reference to these financial statements and such internal financial controls over
financial reporting with reference to these standalone financial statements were operating effectively as
at March 3L, 2079, based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note on Audit
of lnternal Financial Controls Over Financial Reporting issued by the lnstitute of Chartered Accountants of
lndia.

For Mehta Sheth & Associates

Chartered Accountants
Firm Registration No: 106238W

$llu&{\aF
CA SalilSheth
Partner
Membership No.110500

Date: 4th September ,20L9

Place: Ahmedabad
ffi;.,f \.ii["5oo sflss t s81ne

Page 11 of 11
 JCR Fashion Retail private timited

Balance Sheet as at 31st March, 2019

Particulars Note Figures as at Figures as at

No 31.03.2019 31.03.2018
t;Equ[YAND UABIUTIES

Shareholder's Funds
(a) Share Capital
3 5,000,000 5,000,000
(b) Reserves and Surplus
4 18,745,247 5,659,297
Non-Current Liabilities
(a) Long-term borrowings
5 67,569,979 57,994,525
(h) Deferred tax liabilities
6 2,247,L07 L,2L7,BO3
Current tiabilities
(a) Short-term borrowings
7 34,931,593 25,203,966
(b) Trade payables
8 203,354,O7L t32,234,2O2
(c) Other current liabilities
9 38,119,110 27,481,974
[d) Short-term provisions 10 3,744,654 t,900,220
Total 373,610,745 250,590,977
.!l.Assets

lJon-current assets
(a) Property, Plant and Equipment
(i) Tangible assets 7L 76,395,429 50,479,699
(b) Other Non-current assets
72 25,591,4L7 tL,401,742
Crrrrent assets
(a) lnventories
227,753,2L0 t75,026,252
(b)Trade receivables 13 2,693,O57 1,906,943
(c) Cash and cash equivalents 74 20,652,79L 3,873,557
(C) Short-term loans and advances 15 20,233,552 7,490,221
(e ) Other Current Assets L6 311,300 472,663
Tota! 373,610,745 25O,590,977

iis per our report of even date attached For and on behalfofthe Board

For Mehta Sheth & Associates

{.ha rte red Accou nta nts Jayesh Rajde JCR Fa
Firrn Regd No. : - 106238 W Director
lDlN:07691833I

CA. SalilG Sheth

Pa rtner Ketan Thakkar JCR Fashion Retail pvt. [td.
i'ri,'lmbershiP No. : 110500
Date: qS$ep\eaabrr, gor\
{?lirce: Ahmedabad
Director
lDlN:076913531 /-< Director
DOr r-\' \t \\o 9oo ftftftqr grT ?j;
 JCR Fashion Retail private Limited

statement of Profit and Loss Account for the year ended 31st Marchr2olg

Particulars Note Figures as at Figures as at

No 31.03.2019 31.03.2018
I. !NCOME
Revenue from Operations
17 978,768,310 466,564,059
Other lncome
18 541,556 980,018
Total lnrama 979,309,866 467,544,078
EXPENSES
Purchase Of Goods and Consumables
19 738,252,027 362,675,958
(lncrease)/Decrease in inventories
20 (52,726,959) (63,81 I ,313)
[:mployee Benefit Expense
2L 95,363,639 57,418,937
[:inance Costs 't0,045,908
22 5,323,303
Depreciation and Amortization Expense
11 4,360,301 1,502,85s
Other Expenses
23 166,154,038 95,512,929
Total ExDenses 951,449,955 458,622.679

Profit before Exceptional ltems and Tax

17,860,9L1 8,92L,399

Exceptional ltems

Profit before Tax after Exceptional ltems

17.860.911 8,921,399

Current Tax
3,744,654 7,900,220
Deferred Tax
t,029,304 1,217,803
(lixcess)/Short Provision of lncome Tax

Profit/(Loss) for the period

13,096,954 5,903,376

Basic/Diluted Earings per equity share:

26.17 11.61

As per our report of even date attached

For and on behalf of the Board

For Mehta Sheth & Associates

Chartered Accountants
Jayesh Rajde JCR FaShiOn Retall
Firm Re
Director
lDlN:07691833I
AHMEDABAD /
CA. Sali
Paftner Ketanrhakkar JCR Fashion Retail Fvt. Itd.
Membership No. : 110500 Director
0.,. ,;gt.--t -'
r*I,..r eo Iq
IDlN:07591853]
Place: Ahmedabad
;;i"i:"iiir osoo hseo rs B:t:ts
 JCR Fashion Retail private timited

Cashflow Statement For The Year 2018-19

Particulars 2018-19 2017-18

A. Cash flow from Operatong Activities:
Profit before tax 17,860,911 8,921,399
Add/Less: Non Cash/Non Operating Expenditure/(lncome)
Depreciation 4,360,301 1,502,86s
lnterest 10,045,909 5,323,303
Operating Profit before Working Capital Changes 32,267,121 15,747,567
(lncrease)/Decrease in

Trade and Other Receivables (776,2741 (1,906,843)

lnventory (52,726,9581 (63,811,313)
Other Current asstes 161,363 1L70,972)
Short Term Loans and advances (.12,743,3371 (1,880,432)

Other Cu rrent liabilities t6,637,137 2\,393,974

Trade Payabale 71,1L9,869 15,968,824
Other Non Current Assres (14,189,675) 1t7,40t,742\
Cash Generated from Operations 39,749,310 (25,071,038)
Direct Taxes Paid lt,90o,22ol
Net Cashflow from Operating Activities 37,849,091 (25,071,0381

B. Cashflow from lnvesting Activities

Acquisition of Fixed Assets (30,266,033) (51,982,564)

Net Cash Used in lnvesting Activities (30,266,033) (51,982,554)

c. Cashflow from Financing Activities

I ncrease/(Repayment) of Loans 9,674,454 56,956,525

lncrease/(Repayment) of Bank Overdraft 9,627,617 25,203,966
lssue of Share Capital 4,900,000
lnterest Paid (10,045,908) (5,323,303)

Net Cash Used in Financing Activities 9,256,163 81,737,188

Total Cashflow of Company 16,839,220 3,593,595
Cash & Cash Equivalents (Opening Balance) 3,813,557 129,971
Cash & Cash Equivalents (Closing Balance) 20,652,782 3,813,557

As per our report of even date attached For and on behalf of the Board

For Mehta Sheth & Associates JCR Fashion Retail Ltd,

Chartered Accountants Jayesh Rajde
Firm Regd No. : - 106238 W Director

\--
CA. Salil G Sheth JGR Fashion Retail Pvt. Ltd.
Partner Ketan Thakkar
Membership No. : 1L0500 Director
oate: );$@fPrnbe,a, Qo d Director
Place: Ahmedabad-iq
;5;"(- iiooo esna I B84vq
 JCR Fashion Retail private Limited

Notes Forming Part of Financial Statements

Note
Amount in Rs. lAmount in Rs,
Particulars
As at As at
No.
31{3-19 31{3-18
Note 3: Share Capital

Authorised Share Caoital

5,00,000 Equity Shares of Rs.10/- each
5,000,000 5,000,000

ssued Subscried & paid Uo Share Caoital

;,00,000 Equity Shares of Rs.10/- each
5,000,m0 s,000,000

Tota 3 s,000,000 5,000,000

Note 3 (a,

Details of shares held by shareholders holding more than 5%

of the aggregate shares in the company
No,of Shares No.of Shares

Equity Shares
layesh C Rajde
3s0,000 350,000
(etan P Thakkar
150,000 150,000

Note 4 : Reserves & SurDlus

Opening Balance
5,658,287 (14s,0891
Add: Profit & Loss Account (Current)
13,086,9s4 5,803,376
Less: Depreciation Arrears due to change in rate of depreciation
:n Capitalized Asset

Tota 4 t8,745,24t s,65A,287

42,249,437 27,66s,523

Mansi Circle, Vastrapur, Ahmedabad in the name of Director,s

relative as Collateral Security )

less:Current maturities of long term debt(Refer note 9)

19,293,2291 (7,603, 368)

Unsecured Eorrowings
Loans From Bank
7,052,244
Loans from related Parties
27,560,527 37,832,370

Tota 5 67,568,979 | 57,894,525

 JCR Fashion Retail prlyate Llmited

Notes Formlnt Part of Flnanclal Statements

Note
Amount in Rs. lAmount in Rs,
Particulars As at
No. As at
31.03-19 31{3-1E
Loans From Bank Comprises
HOFC Bank
4,455,897
Kotak Mahindra Bank Ltd. 2,596,347

Loans from related Parties comorise:

Jayesh C Rajde 19,638,835 22,572,81O
Ketan P Thakkar 7,927,692 14,607,5q)
Hitesh Thakkar
552,m0

Note 6: Deferred Tax Liabilities

Deferred Tax Liabilities

Opening Balance t,277,803

Difference between Depreciation provided as per Companies
7,277,803
Act,2013/1956 & lncome Tax Act,1951 1,029,304

Tota 6 2,247,LO7 t,2L7,AOt

Note 7 : Short Term Borrowins

Cash Credit 30,250,676 25,203,966

(Secured against Hypothetication by way of first and exclusive
charge on all present and future current assets inclusive of all
Stocks, Book Debts and Plant and Machinery as primary
Security and equitable Motagage of property situated at
Basement 1, Kalasagar Mall, Satadhar Cross Road , Ghatlodia
District Ahmedabad -383061 in the name ofcompnay as
Collateral Security )

Unsecured Bank Overdraft 4,580,908

Tota 7 34831,s83 25,203,966

NoteS: TradePayables

Irade payable
To, Micro & Small Enterprises 77,987,076 2,988,583
Io, Others 185,367,055 729,245,619

Tota 8 203,354,07t 132,214,202

Note 9 : Other Current Liabilires

TDS payable 2,546,702 7,732,757

Salary Payable 7,354,520 7,353,568
ESIC Payable 82,496
Provident Fund Payable s64,357 34,553
Professional Tax Payable 667,748 194,440
Labour Welfare Fund 1,545
Audit Fees payable 1@,000 129,500
Advace From Customer 5s0,0@
Expenses Payable 22,948,574 4,423,788

Current Maturities of Long Term Debt (Refer Note 5l

HDFC Bank Term Loan
9,293,229 7,603,368

Total 9 38,119,110 2t,481,974

[ote 10 : Short Term P]ovisions

ncome Tax Provision FY 2017-18

tp@,220
ncome Tax Provision FY 2018-19 3,744,654

rotall 10 1,744,654 t,9oo,22o

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 JCR Fashlon Retall prlvate Llmlted

Notes Forming Part of Financia! Statements

As at As at
Note
Particulars
No.
31-Mar-2019 31-Mar-2018

Note - 12 : Other Non Current lnvestments

Store Security Deposits 25,591,417 11,401,742

Total t2 25,591,417 Lt,fiOt,742

Note 13 : Trade Receivables

a. More than 5 months 664,8t2
b. Less than 6 months 2,OL&,245 1,906,943

Total 13 2,693,O57 1,906,943

Note 14 : Cash And Bank Balances

(i) Cash & Cash Equivalents

Cash on hand 16,455,034 1,552,950

(ii) Other Bank Balances

Balance with Banks L,987,428 178,810
Fixed Deposit with Banks 2,2L0,320 2,081,997

Total L4 20,652,79L 3,813,557

Note - 15 : Short Term Loan And Advances

Considered Good
(i) Balance with Government Authority 20,233,552 7,490,227

Total 15 20,233,552 7,49O,22L

Note - 16 :Other Current Assets

Considered Good
Others
(i)Prepaid Expenses 101,300 472,663
(ii) Advance for Expenses 210,000

Total 16 311,300 472,663

ffi
 JCR Fashion Retail private Limited

Notes Forming paft of Financial Statements

Particulars
Note Amount in Rs. Amount in Rs.
No. 2018-19 2017-18

t7 Revenue from Operations

Sale of Merchandise Products 978,769,31O 465,554,059

TOTAl t7 978,769,31O 465,564,059

18 Other lncome

Discount Received 73,725 594,772

Fixed Deposit lnterest lncome 742,703 90,995
Other lnterest lncome 239,760 164,510
Misc lncome 145,358 29,870

TOTAl 18 541,556 980,019

19 Purchase of Goods and Consumables

I

Purchase of Goods 730,696,999 357,337,065

Purchase of Consumables 3,649,776 5,338,993
Commission on Purchase 3,905,253

TOTAl 19 738,252,027 362,675,959

20 Changes in lnventories

Opening stock t75,026,252 77t,274,939

Closing stock 227,753,2L7 L75,026,252

TOTAl 20 152,726,9591 (53,811,3131

2t EMPTOYEE BENEFITS EXPENSE

Salaries and Wages 77,955,949 47,392,52L

Director's Remuneration 6,900,000 5,800,000
Bonus Expenses 2,673,756 2,006,7gg
lncentive and Commission 972,930 139,509
Staff Welfare Expenses 4,567,440 1,933,009
Employer's Statutory Contribution Expenses 2,231,554 L57,700
Recruitment Charges 758,47L
Staff Uniform Exp 19,530
;f,HeAN\
Medical Exp. 34,109 rlfl
l(n
lc
t'),
I
TOTAT 27 95,363,539 57,4t8,937
\gen=inc€)/
v u
 JCR Fashion Retail private [imited

Grouping Of Balance Sheet

Amount (Rs.) Amount (Rs.)

Sr No Particulars As at 31st March As at 31st March
2019 2018
1 Secured Borrowings

HDFC Bank (83629033) 79,74t,726

HDFC Bank (82697292) 22,507,7L7 27,665,5;3

fotal 42,249,437 27,665,523

2 Cash Credit

HDFC Bank 30,250,676 25,203,966

ndusind Bank 4,580,908

Total 34,831,583 25,203,966

 JCR Fashion Retail Private limited

Grouplng of Balance sheet

3s0,000
100,000
100,000
45,000
25,773
7,O2t,O20
2,t87,5@
636,948
470,574
Bindiya Sanjay Shah 181,350
Raffiqahmed Ebrahim Patel 46,095
45,338
45,338
45,338
47r,20r
160,863
823,s20
816,894
Reshma Sattar Vohra 53,675
Rishabh Yashwant Surana 290,2t4
lmran A. Patel 42,000
16t,760
t6L,760
500,000
750,000 750,000
1,001,000
356,737
356,737
356,737
3s6,737
500,000
7,OOO
220,W 220,000
220,000 220,0@
Rupalben Prajapati 232,500 232,500
Hetalben Prajapati 232,500 232,500
D. V. Property 600,000 600,000
25,000
s00,000 500,000
390,000 390,000
78,000 78,000
78,000 78,000
514,000
466,950
474,540
t45,640
1,512,0m
775,O@
387,500
387,500
387,500
 JCR Fashion Retail private [imited

Grouping Of Balance Sheet

{mount (Rs.) lAmount (Rs.)

Sr No Particularc As at 31st March As at 31st March
2019 2018

4 Trade Receivables
i) More Than 6 Months

ii) Less than 6 Months

HDFC Card
2,278,580 531,830
Gayatri Enterprise 253,618 620,048
Hitesh Thakkar (260,33s) 22L,497
Shree Siddhivinayak Fashion 4Lt,t94 533,468

Tota 2,683,O57 1,906,843

5 Balancewith Bank
HDFC Bank 502000023853092 t,636,760 178,810
HDFC Bank _502000025290051 70,268
HDFC Bank _502000025290200 23,4@
HDFC Bank _502000029625402 257,W

Tota t,987,428 178,810

6 Balance with Government Authority

VAT Receivable
GST Receivable 19,195,306 7,4il,670
TDS Receivable 38,246 25,551
Advance Tax 2018-19 . 1,000,000

Total 20,233,s52 7,490,22L

7 Advances For Expense

Rugnathbhai Laxmanbhai Bharvad 30,000
Kamlesh Thakkar 160,000
,atin Pujara 20,000

210,m0
 JCR Fashion Retail private Limited

Notes Forming Part of Financia! Statements

6,629,03t 2,O5O,7gg
2,494,596 2,822,505
604,799 450,000
377,493

Professional and Legal fees 3,814,090 3,890,595

17,605,990 10,299,901
ling and Marketing Expenses 20,399,939 7,800,767
2,707,792 1,068,494
3,O1L,776 2,014,199
92L,934 7,237,950
5,481,901 3,961,640
3,230
6,977,4!3 3,665,532
470,659 t,022,7L6
'ravelling Expenses
5,937,135 4,L55,2O3
rieght Expenses 70,852,L44 4,351,931
994,159 437,043
Printing and Stationery Expense 591,004 490,315
Rates & Taxes 2,799,536 1,959,121
Repair & Maintenance 74,765,997 7,854,159
Communication Expense 970,139 t,722,186
Rent Expenses 67,706,793 39,452,290
Director's Expense 350,823
Miscellaneous Expense 699,759

88,500
(b) Taxation Matters
 JCR Fashion Retail private limited

Groupings Of Profit and Loss Account

Amount (Rs.l Amount (Rs,l

Sr No Particulars As at As at
31-Mar-19 31-Mar-18

8 Selling and Marketing Expenses

(a) Advertisement Expense
L8,557,@3 4,758,360
(b) Donation Expense
83,000 101,000
(c ) Printing Exp.
707,L49 L,753,933
(d) Sales Promotion Exp.
396,950 t,tt2,2t9
(e) VM & lnstore Branding
641,456 39,578
(f) Web Hosting Exp.
7,000
(g) Round Off.
7,34L 35,677

fotal 20,399,939 7,800,767

9 Rates & Taxes

(a) MunicipalTax 2,786,676 L,780,943
(b) Professional Tax 11,860 77,L78

Total 2,798,536 1,858,121

10 Repair & Maintenance

(a) Vehicle Repairs 137,180 LOg,762
(b)Computer Maintenance L27,666 zLO,Otz
(c) Office Repairs and Maintenance
5,5U,468 738,083
(d) Annual Maintenance Contract Charges 17s,353 542,298
(e ) Furniture Repairs 8,765 68,867
(f ) Store Repairs 2,346,9t3 7,406,660
(g ) Store Development Expenses 6,265,643 4,778,476
(H )Godown Repairs 140,000

Iotal 14,765,997 7.854.1s8

tt Communication Expense
(a) Postage, Telegram & Telephones L92,376 t24,555
(b) Telephone & Telex Charges 29L,6t4 418,699
(c) lnternet Expenses 486,L48 s78,932

fotal 970,138 t,L22,L86

t2 Rent Expenses
(a) Store Rent 67,106,783 39,452,290

fotal 67,106,783 t9,452,290

13 Mlscellaneous Expense
(a) Man Power Services
245,L68
(b) Misc Labour
309,861
(c) lnterest on TDS 283,466 10s,933
(d) Penalty on GST 45,344
(e) Mannequins Purchase
24,L55
(f )Medical Exp.
t4,652
(g )General Meeting Expense
4,Lts
(h )Miscellaneous Expense
340
(i )Plastic Expense 2,L60
(j )Round Off L4,825
(k )Seminar Expense 16,888
(l )Sundry Balance W/off (42s,693)

Iotal (s8.sss) 699,759

t4 Director's Expense
(a)Director's Expense '147,110
(b)Director's Travelling Expense 2',t3,713

Iotal 360,88 | rfl

@
o
?t
%
 JCR FASHION RETAIL PRIVATE LTMITED

24. Contingent Liabilities provided for the year : NIL

25. Dues to Micro, Small and Medium Enterprises:

(Rs ln Lakhs)
Sr. Particulars As at As at
No. 31't March,2019 31't March, 2018
(1) The principal amount and the interest
due thereon remaining unpaid to any
supplier at year end
- Principal 779_.87 29.88
- lnterest

l2l The amount of interest paid by buyer in

terms of Section 16 of the Micro, Small
and Medium Enterprises Development NIL NIL
Act, 2006 (27 of 2006), along with the
amounts of the payment made to the
supplier leyond the appointed day
(3) The amount of interest due and
payable for the year of delay in making
payment (which have been paid but
beyond the appointed day during the NIL NIL
year) but without adding the interest
specified under the Micro, Small and
Medium Enterprises Development Act,
2006
(4) The amount of interest accrued and Nil Nil
remaining unpaid
(s) The amount of further interest Nil Nil
remaining due and payable even in the
succeeding years, until such date when
the interest dues above are actually
paid to the small enterprises, for the
purpose of disallowance of a deductible
expenditure under Section 23 of the
Micro Small and Medium Enterprises
Development Act, 2006

Note:
Trade payable are non-interest bearing. There are no other amounts
paid/payable towards interest/principal under the MSMED Act.

The information relates to

such vendors identified as micro, small and
medium enterprises on the basis of information available with the company.
 JCR FASHION RETAIL PRIVATE [tMITED

Name of the Nature of Amt. of Transactions Relationship

Related Party Payment during FY 2018-19 (Rs.)
Monika Rajde Salary L5,23,858/- Relative of Key
Managerial Personnel
Nilam Thakkar Salary L7,25,OOO/-

Rajde Sales Payment to 88,82,70L/- Enterprise in which Key

Creditors Managerial Personnel
has Substantial lnterest

29. Previous year figures are regrouped, wherever necessary.

As per our report of even date attached For and on behalf of the Board

For Mehta Sheth & Associates

Chartered Accountants
JCR 1 Pvt. Ltflyesh
Firm Regd No.: - 105238 W najde

6,"
CA. Sali! Sheth
,$ Direct
Director
N :075e18331

Partner Fashion Retait pvt. Ltd. Ketan_Thakkar

1 Dtrector
Membership No.: 110500 [DlN :075e1853]
/4
Director
Place: Ahmedabad
Qo \41
Date: \un Se(ks'toe"'
uDl-st' \1tto9oo fieFft \861"9'
 JCR FASHION RETAtt PRIVATE [tMITED

Notes Forming parts of Financiat statements

1. Corporate lnformation :
JcR Fashion Retail Pvt. Ltd. was incorporated in the year 2017 with clN
U52609GJ2017PTC095734 operates retail business across the
state ofGujarat.

2. Sienificant accountins policies:

o) Bosic lor preporotion of occounts:

The financial Statements of the company have been prepared in

accordance
with generally accepted accounting principles in tndia (lndian GAAp). The
company has prepared financiat statements to comply in all materiat respect
with accounting standard specified under section 133 of the Companies Act
2o!3, read with Rule 7 of the companies (Accounts) Rules, 2014 and the
relevant provisions of the companies Act, 20L3. The financial Statements
have been prepared under historical cost convention on an accrual
basis. The
accounting policies adopted in the preparation of the financial statements
are consistent with those of the previous year.

b) Use of estimotes:

The preparation of financial statements in conformity with lndian GAAp

requires the management of the company to make estimates and
assumptions that affects the reported balances of assets and liabilities
as at
the date of financial statements and reported amounts of income and
expenses during the year. Examples of such estimates include provision for
expenses, provision for income taxes, useful lives of depreciable fixed assets.

c) Revenue Recognition:

All income and expenditure are recognized and accounted on accrual basis.
Revenue from operation includes Retailing of Garments, Accessories, Toys,
Footwear and Other products.

d) Provision, Contingent Liabitities & Contingent Assets:

A Provision is recognized, when the company has a present obligation as a

result of past events, for which it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and
a
reliable estimate can be made. Provisions are reviewed regularly and are
adjusted regularly and are adjusted where necessary to reflect the current
best estimate of the obligation.
 JCR FASHiON RETAIL PRTVATE LIMTTED

A disclosure for contingent liabilities is made

where there is possible
obligation or a present obligation that probably will not
require any outflow
of resources. when there is a possible or a present obligation for
which the
likelihood of outflow of resources is remote, no provision
or disclosure is
made.

Company has identified dues to Micro, Smalt and Medium Enterprises

as
defined in Micro, small & Medium Enterprises Development Act, 200G, and
accordingly additional disclosures have been made in Notes to Account.

The above information regarding Micro, Smalt and Medium Enterprises has
been determined to the extent such parties have been identified on the basis
of information available with the company. This has been retied upon by the
auditors.

e) Borrowing Costs:
Borrowing Costs are charged to Profit & Loss Account, except to the extent
attributable to acquisition of eualifying Assets. A eualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use.

f) lmpairment of Assets:

At each Balance sheet date, the Company assesses whether there is any
indication that the asset may be impaired. lf any such indication exists, the
company estimates the recoverable amount. lf the carrying amount of assets
exceeds its recoverable amount/value in use, any impairment loss is
recognized in the Profit & Loss Account to the extent the carrying amount
exceeds recoverable amount.

g) lnvestments:

All the investments that are long term in nature, are stated at cost of
acquisition.

hl Property Plant & Equipment:

Property Plant & Equipment are stated at cost including all incidental
expenses incurred in installing the assets in their present location. Pursuant
to enactment of companies Act zoL3, the company has provided
Depreciation on Fixed Assets on Straight Line Method basis using the
estimated useful lives as specified in Schedule ll. Accordingly the unamortized
carrying value is being depreciated/ amortized over the revised/remaining
useful lives.
 JCR FASHION RETAIL PRIVATE IIMITED

i) Toxes on lncome:

Current Taxation:

Provision for Current tax has been made as per the prevailing provisions of
lncome Tax Act, 1961.

Deferred Tax Accounting:

ln accordance with Accounting standard 22 - Accounting for taxes on

lncome, issued by the lnstitute of Chartered Accountants of lndia, the
deferred tax for timing difference between the books and tax profits for the
year is accounted for using the tax rates and laws that have been enacted or
substantively enacted as of the balance sheet date.

j) Cosh & cosh equivolents;

Cash and cash equivalents comprise cash and deposits with banks and
financial institutions. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or less
and that are readily convertible to known amounts of cash to be cash
equivalents.