aa) Accounting for Provisions, Contingent
Liabilities & Contingent Assets
In conformity with Ind-AS 37, ‘Provisions,
Contingent Liabilities and Contingent
Assets’, issued by the ICAI. A provision is
recognized when the Company has a present
obligation as a result of past even and it is
probable than an outflow of resources will be
required to settle the obligation, in respect
of which a reliable estimate can be made.
Provisions (excluding retirement benefits and
compensated absences) are not discounted
to its present value and are determined
based on best estimate required to settle the
obligation at the balance sheet date. These
are reviewed at each balance sheet date
adjusted to reflect the current best estimates.
Disclosure of contingent liability is made
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
embodying economic benefits will be
required to settle or a reliable estimate of
amount cannot be made.
Contingent assets where it is probable that
future economic benefits will flow to the
Company are not recognised but disclosed
in the standalone financial statements.
However, when the realisation of income is
virtually certain, then the related asset is no
longer a contingent asset, but it is recognised
as an asset.
ab) Provision for doubtful debts
The management reviews on a periodical
basis the outstanding debtors with a view
to determine as to whether the debtors
are good, bad or doubtful after taking into
consideration all the relevant aspects. On
the basis of such review and in pursuance
of other prudent financial considerations
the management determines the extent of
provision to be made in the accounts.
ac) Rounding of amounts
All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.
3. Critical estimates and Judgments
The preparation of these financial statements in
conformity with the recognition and measurement
principles of Ind AS requires the management of the
Company to make estimates and assumptions that
affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the
date of the financial statements and the reported
amounts of income and expense for the periods
presented. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the
estimates are revised and future periods are affected.
Key sources of estimation of uncertainty at the date of
the financial statements, which may cause a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, is in respect
of impairment of investments, useful lives of property,
plant and equipment, valuation of deferred tax assets,
provisions and contingent liabilities.
Impairment of Investments
The Company reviews its carrying value of investments
carried at amortised cost annually, or more frequently
when there is indication for impairment. If the
recoverable amount is less than its carrying amount,
the impairment loss is accounted for.
Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant
and equipment at the end of each reporting period. This
reassessment may result in change in depreciation
expense in future periods.
(B) Terms/Rights attached to equity shares
The Company has issued only one class of Equity Shares having a par value of ' 1/- per share. Each holder of Equity
Shares is entitled to one vote per share.The final dividend proposed if any, by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.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.
(C) The Company had allotted 13,26,21,156 Equity Shares in exchange of Shares of Lloyds Engineering Works
Limited on 21st May 2021 other then that there was no issuance of shares other than cash . The Company has
not bought back any shares in last 5 years.
Nature and Purpose
General Reserve
General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the
General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
Securities Premium
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions
of the Companies Act, 2013.
Capital Reserve
Capital Reserve is arising out of scheme of arrangement between Ragini Trading & Investments Limited and Parishram
Properties Private Limited and Lloyds Enterprises Limited and Pragya Realty Developers Private Limited and their respective
Shareholders & Creditors.
Retained Earnings
Retained Earnings are the profits of the Company earned till date net of appropriations.
Other Comprehensive Income
This reserve represents the cumulative gains and losses arising on revaluation of equity instruments measured at fair value
through other comprehensive income, net of amounts reclassified to retained earnings when those assets are disposed of
and remeasurement of defined benefit plan.
Note 29. Disclosure as required by the Ind AS -19 “Employee Benefit” is given below:
Defined benefit plan: The Company operates one defined benefit plan, viz., gratuity benefit, for its employees. The Gratuity
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of
employment of an amount equivalent to 15 days basic salary payable for each completed year of service. The company does
not have any fund for gratuity liability and the same is accounted for as provision.
Under the other long term employee benefit plan, the company extends benefit of compensated absences to the employees,
whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement / separation or
during tenure of service. The Plan is not funded by the company.
Fair values
1. The carrying amounts of trade payables, other financial liabilities(current), borrowings (current), trade receivables,
cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their
shortterm nature.
2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (non¬
current) consists of interest accrued but not due on deposits other financial assets consists of employee advances
where the fair value is considered based on the discounted cash flow.
3. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward
exchange rates, currency basis spreads between the respective currencies and interest rate curves.
The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.
Note 31. Financial risk and capital risk management
1) Financial Risk
The business activities of the Company expose it to a variety of financial risks, namely market risks (that is, foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s risk management strategies
focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial
performance.
The financial risk management for the Company is driven by the Company’s senior management and internal/ external
experts subject to necessary supervision.
The Company does not undertake any speculative transactions either through derivatives or otherwise. The senior
management is accountable to the Board of Directors and Audit Committee. They ensure that the Company’s financial
risk-taking activities are governed by appropriate financial risk governance frame work, policies and procedures. The
Board of Directors periodically reviews the exposures to financial risks, and the measures taken for risk mitigation and
the results thereof.
2) Foreign currency Risk
Foreign exchange risk arises on all recognised monetary assets and liabilities and on highly probable forecasted
transactions which are denominated in a currency other than the functional currency of the Company. The Company
does not have any foreign currency trade payables and receivables.
The foreign exchange risk management policy of the Company requires it to manage the foreign exchange risk by
transacting as far as possible in the functional currency.
No Forward contracts were entered into by the company either during the year or previous years since the company
has very minimum exposure to foreign currency risk as stated in above table.
i. Price risk
The company uses surplus fund in operations and for further growth of the company. Hence, there is no price
risk associated with such activity.
ii. Credit risk
Credit risk refers to the risk of default on its obligation by the counter-party the risk of deterioration of
creditworthiness of the counter-party as well as concentration risks of financial assets, and thereby exposing
the Company to potential financial losses. The Company is exposed to credit risk mainly with respect to trade
receivables.
Trade receivables
The Trade receivables of the Company are typically noninterest bearing un-secured. As there is no independent credit
rating of the customers available with the Company, the management reviews the credit-worthiness of its customers
based on their financial position, past experience and other factors. The credit risk related to the trade receivables is
managed / mitigated by concerned team based on the Company’s established policy and procedures and by setting
appropriate payment terms and credit period. The credit period provided by the Company to its customers depend
upon the contractual terms with the customers.
The Company performs on-going credit evaluations of its customers’ financial condition and monitors the credit¬
worthiness of its customers to which it grants credit in its ordinary course of business. The gross carrying amount of
a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This
is generally the case when the Company determines that the debtor does not have assets or sources of income that
could generate sufficient cash flows to repay the amount due or there are some disputes which in the opinion of the
management is not in the Company’s favour. Where the financial asset has been written-off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognised in profit and loss.
iii. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
Accordingly, as a prudent liquidity risk management measure, the Company closely monitors its liquidity position
and deploys a robust cash management system.
Based on past performance and current expectations, the Company believes that the Cash and cash equivalents
and cash generated from operations will satisfy its working capital needs, capital expenditure, investment
requirements, commitments and other liquidity requirements associated with its existing operations, through at
least the next twelve months.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:-
3) Capital Risk
The Company’s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is
enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business
stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and/ or relevant laws and
regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital. However, the
key objective of the Company’s capital management is to, ensure that it maintains a stable capital structure with the
focus on total equity, uphold investor; creditor and customer confidence, and ensure future development of its business
activities. In order to maintain or adjust the capital structure, the Company may issue new shares, declare dividends,
return capital to shareholders, etc.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or
its business requirements.
Note 32. Proposed Dividend clause
On 09th May, 2025, the Board of Directors of the Company have proposed a final dividend of Ten paise per share in
respect of the year ended 31st March, 2025 subject to approval of Shareholders at the Annual General Meeting and if
approved, would result in a cash outflow of approximately ' 1,272 lakhs.
Note 33. Segment reporting under Ind AS -108
The Company is engaged in the business of Trading and there are no separate reportable segments as per Indian
Accounting Standard (AS-108) “Segment Reporting”. The Company’s operations are within India.
Explanations to the changes in ratios-
1. The current ratio has decreased due to an increase in the company’s operations compared to last year, which has led
to a decrease in inventories, increase in investments, and the use of the short term borrowed funds.
2. The debt service coverage ratio has decreased due to higher interest payments. Additionally, the company has taken
new loans from bank to finance the fixed assets and operations, resulting in higher borrowings compared to the
previous year.
3. The ROE has decreased this year due to higher profits compared to last year, primarily because last year profits
contained by the sale of rights entitlement due to which high profits were seen.
4. The inventory ratio has decreased because the company’s operations have expanded compared to last year, and there
has been a decrease in the closing stock for the current year.
5. The debtor turnover has increased due to the company’s expanded operations, which have led to higher sales.
6. The trade payables ratio is Nil this year because there were no outstanding trade payables at year-end. All payables
were settled due to increased cash flows.
7. The net capital turnover has decreased due to a rise in the company’s revenue and lesser working capital, driven by
expanded operations.
8. The net profit ratio has decreased due to a fall in the company’s profit, as the previous year’s profit contained sale of
rights entitlement which was a major contributor to the profit.
9. The return on capital employed has reduced as a result of the distortion in the profit of the previous year due to sale of
rights entitlements, contributing to a higher net profit in the last year.
10. The Return on Investment is increased due increase in income from invested funds which is primarily due to selection
of good investments and increase in Interest Income as compared to last year.
Note 40. Approval of Financial Statements
The financial statements were approved for issue by the board of directors on 09th May, 2025.
See accompanying notes 1 to 40 are integral part of these Financial Statements
For Todarwal & Todarwal LLP For and on behalf of the Board of Directors
Chartered Accountants Lloyds Enterprises Limited
Firm Registration No 111009W/W100231
Sd/- Sd/- Sd/-
Sunil Todarwal Babulal Agarwal Rajesh R.Gupta
Partner Chairman & Managing Director Director
Membership No 032512 DIN: 00029389 DIN:00028379
Place : Mumbai Sd/- Sd/-
Date : 09th May, 2025 Viresh Sohoni Pranjal Mahapure
UDIN: 25032512BMMLXA3563 Chief Financial Officer Company Secretary
Membership No.-69408
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