ae) 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 event and it is probable that an
outflow of resources will be required to settle
the obligation, in respect of which a reliable
estimate can be made. Provisions (excluding
retirement benefits and compensated
absences) are not discounted to its present
value and are determined based on the 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. Contingent liabilities
are not recognized in the financial statements.
A contingent asset is neither recognized nor
disclosed in financial statements.
af) 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.
ag) Rounding of amounts
All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest Crores 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 amortized 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
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.
Mine Closure, Site Restoration and
Decommissioning Obligation
The Company’s obligation for land reclamation
and decommissioning of structures consists of
spending at both surface and underground mines
in accordance with the guidelines from Ministry of
Coal, Government of India. The Company estimates
its obligation for Mine Closure, Site Restoration and
Decommissioning based upon detailed calculation
and technical assessment of the amount and
timing of the future cash spending to perform
the required work. Mine Closure expenditure
is provided as per approved Mine Closure Plan.
The estimates of expenses are escalated for
inflation, and then discounted at a discount rate
that reflects current market assessment of the
time value of money and the risks, such that the
amount of provision reflects the present value
of the expenditures expected to be incurred to
settle the obligation. The Company records a
corresponding asset associated with the liability for
final reclamation and mine closure. The obligation
and corresponding assets are recognised in the
period in which the liability is incurred. The asset
representing the total site restoration cost as per
mine closure plan is recognised as a separate item
in PPE and amortised over the balance project/
mine life. The value of the provision is progressively
increased over time as the effect of discounting
unwinds; creating an expense recognised as
financial expenses.
35. FINANCIAL INSTRUMENT AND RISK MANAGEMENT
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 short term nature.
2. Borrowings (non-current) consists of loans from banks and government authorities, other financial
liabilities (noncurrent) consists of interest accrued but not due on deposits, other financial assets consist
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.
Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s
financial instruments:
36. FINANCIAL RISK AND CAPITAL RISK MANAGEMENT
A) 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 unpredictability of these elements and seek to minimize 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 framework,
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.
B) 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.
i) Price risk
The Company uses surplus funds 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 counterparty 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 non-interest 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 the concerned team based on
the Company’s established policy and procedures and by setting
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
favor. 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 summarizes the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:
C) 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.
37. CAPITAL MANAGEMENT
Capital management and Gearing Ratio :
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders. The primary objective of the company’s capital
management is to maximise shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which
is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.
Terms and conditions of transactions with related parties
1 The Company has been entering into transactions with related parties for its business purposes.
Related party vendors are selected competitively in line with other unrelated parties having regard
to strict adherence to quality, timely servicing and cost advantage. Further related party vendors
provide additional advantages in terms of:
(a) Supplying products primarily to the Company,
(b) Advanced and innovative technology
(c) Customisation of products to suit the Company’s specific requirements, and
(d) Enhancement of the Company’s purchase cycle and assurance of just in time supply with
resultant benefits-notably on working capital.
2 The purchases from and sales to related parties are made on terms equivalent to and those applicable
to all unrelated parties on arm’s length transactions. Outstanding balances payable and receivable
at the year-end are unsecured, interest free and will be settled in business transactions.
45. The Board of Directors, at their meeting held on 25th April, 2025 proposed a final dividend of ' 1 per equity
share for the year ended 31st March, 2025, subject to approval of shareholders. On approval, the total dividend
outgo is expected to be ' 52.52 Crore based on number of shares outstanding as on 31st March, 2025.
46. Previous year’s figures are regrouped and rearranged wherever necessary.
47. Approval of Financial Statements
The financial statements were approved by the Board of Directors on 25th April, 2025.
As per our Report of even date For and on behalf of the Board of Directors of
Lloyds Metals and Energy Limited
For Todarwal & Todarwal LLP
Chartered Accountants Sd/- Sd/-
Firm Registration No W100231/ 111009W Mukesh R. Gupta Rajesh Gupta
Chairman Managing Director
DIN: 00028347 DIN: 00028379
Sd/-
Sunil Todarwal Sd/- Sd/-
Partner Riyaz Shaikh Akshay Vora
Membership No 032512 Chief Financial Officer Company Secretary
UDIN: 25032512BMMLWM7928 Membership No.-ACS-43122
Place: Mumbai
Date: 25th April, 2025
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