V2 Retail : Annual Report FY 2022-23

V2 Retail Limited

Empowering the Indian Shopper with Affordable Fashion

Annual Report

2022-23

Contents

1	Corporate overview
6	Our growing stores
	network
8	Our performance over
	the years
10	Chairman's message
12	Board of Directors
16	Management discussion
	and analysis
23	Notice
34	Director's Report
53	Corporate Governance
	Report
79	Business Responsibility
	Report

Standalone Financial

Statements

87	Independent Auditor's
	Report
101	Standalone Balance
	Sheet
102	Statement of Standalone
	Profit & Loss Account
103	Statement of Standalone
	Cash Flow Statement
104	Statement of Changes in
	Equity
105	Notes

Consolidated Financial

Statements

146	Independent Auditor's
	Report
157	Consolidated Balance
	Sheet
158	Statement of
	Consolidated Profit &
	Loss Account
159	Statement of
	Consolidated Cash Flow
	Statement
160	Statement of Changes in
	Consolidated Equity
161	Notes

Forward-looking statement in this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically, 'projects', 'intends', 'plans', 'believes' and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we make, contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried wherever possible to identify such statements by using words such as 'anticipates', 'estimates', 'expects' believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

ii	V2 Retail Limited

Corporate	Notice	Statutory	Financial Statements
Overview		Section	and Notes

"Charting a Path to Success: Empowering the Indian Shopper with Affordable Fashion"

As we embark on a new chapter in our journey, to ensure a bright and prosperous future, V2 Retail Limited has undertaken several strategic initiatives to strengthen its market position and drive growth. After a period of consolidation, we are now poised for exponential growth, reinforced by our unwavering commitment to product development,

customer satisfaction, technological advancements, and seamless integration. With a focus on becoming the premier value retailer in India, we aim to offer the best fashion at affordable prices, empowering the Indian shopper like never before.

Product Development and

Assortment:

At V2 Retail, we thrive on innovation and continuously strive to enhance our product offerings to cater to the evolving needs of our customers. We have invested substantial resources in product development, collaborating with renowned designers and leveraging market insights to curate

a diverse range of fashion choices. Our extensive assortment spans across various categories, ensuring that every customer finds something that resonates with their unique style and preferences. From trendy apparel to accessories and more, we leave no stone unturned in providing

a comprehensive and affordable fashion experience.

Moreover, we have also invested in an in-house product development team

Annual Report 2022-23

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of 25 dedicated individuals. This team is focused on creating unique and trend-setting designs, a departure from our previous reliance on vendor-provided designs. This shift to in-house design not only allows us to have greater control over our product portfolio, but it also enables us to react swiftly to market trends and consumer preferences.

Customer Satisfaction:

Our customers are at the heart of everything we do, and their satisfaction is our utmost priority. We recognize the power of exceptional customer experiences in building long-lasting relationships and fostering loyalty. To achieve this, we have implemented robust feedback mechanisms, actively listening to our customers' needs and preferences. Armed with this valuable insight, we continuously refine our offerings, tailor our services, and create an environment that delights and surpasses expectations. Through personalized interactions, seamless in-store experiences, and a commitment to unrivaled quality, we endeavor to make every customer feel valued and cherished.

Technological Investments and Integration:

In today's digital age, technology plays a pivotal role in shaping retail experiences. At V2 Retail, we embrace innovation and invest in cutting-edge technologies to stay ahead of the curve. We have made substantial investments to integrate our online and offline channels, creating a seamless omni-channel experience for our customers. This integration empowers shoppers to explore, compare, and makes informed purchase decisions, all from the comfort of their homes or in-store. By leveraging advanced analytics, automation, and artificial intelligence, we strive to deliver personalized recommendations and a frictionless shopping journey, setting new benchmarks in customer convenience.

As part of our strategic growth plan, we have implemented a vertical integration model by establishing two of our own manufacturing units in our subsidiary Company. This significant move is aimed at optimizing costs while enhancing quality control. It positions us to have direct oversight of our supply chain, from fabrication to retail, thus ensuring a seamless process that translates into superior products for our customers.

By vertically integrating our operations and investing in in-house design capabilities, we are building a robust platform for sustained competitive advantage. We believe these strategic changes will not only enhance our brand value but also drive profitability, thus delivering superior returns to our shareholders. We are excited about these developments and look forward to sharing our continued progress in upcoming reports.

Becoming India's Leading Value Retailer:

Our vision is to be the number one value retailer in India, renowned for offering the best fashion at affordable prices. To achieve this, we have strategically positioned ourselves to tap into the immense potential of the value fashion segment. By catering to a wider customer base and reaching addressable geographies, we are poised to capture a significant market share. Through vertical integration, optimized supply chains, and cost- saving measures, we can deliver unbeatable value to our customers without compromising on quality. Our commitment to affordability, style, and superior customer experiences will propel us towards the pinnacle of success.

Conclusion:

As we forge ahead, we express our gratitude to our esteemed customers for their unwavering support and trust in our brand. We also extend our heartfelt appreciation to our dedicated team whose relentless efforts have brought us to this point of resurgence. With a renewed sense of purpose, V2 Retail is bouncing back with strong growth prospects, poised to shape the future of retail in India. We remain steadfast in our commitment to providing affordable fashion, unparalleled customer satisfaction, and technological innovation. Together, let us embark on this exciting journey towards a brighter and more prosperous tomorrow.

2	V2 Retail Limited

Corporate	Notice	Statutory	Financial Statements
Overview		Section	and Notes

Our ability to defy odds demonstrates our strength. Our performance is reflection of our swiftness to embrace the changing trends and as well as innovate at V2 Retail.

Consumers V2 Retail addressed the growing	Omni Channel V2 Retail strengthen its Omni-
needs of the 'neo middle-class' and 'middle-class'	channel capabilities and improved its cost
population segments, marked by rising incomes,	efficiency. The Company had also launched its
aspirations and spending. The Company is	e-commerce portal V2 Kart (www.v2kart.com)
respected as a price-leader with an average selling	during the lockdown.
price of B 283 and average bill value per customer
of B 797.
Low Debt Equity Most retail companies grew	Cost Control We have also initiated a number of
their business through a combination of debt	measures to keep our fixed cost under control like
and accruals. V2 Retail have only working capital	rental renegotiations, engaging with suppliers,
facilities and Debt Equity Ratio is 0.19.	control over variable cost.
Semi-urban and rural Most retail chains focused	Technology driven Most retail chain invested in
on developed markets with presence of organised	technologies as a back end tool for record keeping
retail. V2 Retail focused on the taking organised	and storage. V2 Retail leverage technology
retail to the real Bharat - semi-urban and Tier 2 /	to deliver superior consumer experience and
3 cities instead	enabling efficient operation management.
Focus on private label Most retail chains focused	One-stop destination The Company's product
on a trading operation - outsourcing and	range addresses the fashion aspirations of
retailing. V2 Retail focused on enhancing the	Bharat. The fashion desires of young and the old
brand recall value by marketing proprietary	Bharat, the 'neo middle-class' and 'middle-class'
labels alongside increasing consumer overall	Families.
shopping experience.

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