I. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:a. Basis & Method of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles ("GAAP") and in compliance with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and Companies (Accounting Standards) Amendment Rules, 2016

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of tangible and intangible assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Difference, if any, between the actual results and estimates is recognized in the period in which the results are known.

b. Use of Estimates:

Management has made certain estimates and assumptions in conformity with the GAAP, which are reflected in the preparation of these financial statements. The Difference between the actual results and estimates are recognized in the period in which the results are known.

c. Property, Plant & Equipment (PPE):

1. PPE are stated at cost less accumulated depreciation. Cost comprises of cost of acquisition and expenditure directly attributable for commissioning of the asset.

2. PPE are to be carried at the residual value which is two percent of cost, at the end of their useful life.

3. Capital work in progress comprises of expenditure, direct or indirect, incurred on Outlets which are yet to be brought into working condition.

4. Leasehold premises comprises of fixtures that are immovable in nature.

5. Furniture and fixtures comprise of assets which are movable in nature.

d. Intangible Assets:

1. License Rights includes the right to operate the stores for a period of 10 years from the year 2014-15. The company has not capitalise the license right from the financial year 2022 -23 and the same is booked in profit & loss account.

2. Software comprises of the initial set up cost for the installation of the Abitzu software required to record product and service sales affected at the respective outlets.

e. Depreciation:

1. Depreciation on fixed assets is provided on the straight-line method as per the useful life decided by the management from the current year, which is as follows:

2. Leasehold improvements are amortized over the period of 10 years.

3. Individual assets having life of less than one year are entirely depreciated in the year of acquisition.

4. Depreciation on addition/deletion to fixed assets during the year is provided on pro-rata basis from the date of such addition / deletion as the case may be.

5. The fixtures which form part of leasehold premises are depreciated over the period of 10 years.

6. The assets having value of Rs. 5,000 or less are fully depreciated in the year of purchase.

7. Residual Value for fixed assets has been calculated at 2% of purchase value.

8. Service Equipments are fully depreciated in the year of purchase.

f. Amortization of Intangible Assets:

1. The license amount is amortized over the license term i.e., 10 years. From the financial year 2022 - 23 all the license amounts during that period are expensed off in the same year.

2. The company amortizes the amount of software over a period of 5 years.

g. Revenue Recognition:

1. Income from services rendered is recognized once the services are provided to the customer.

2. Membership sales are recognized on as and when they occur i.e., when the membership is purchased by the customer and for the services which can be availed within a period of one year from the date of purchase.

3. Revenue on sale of gift card is recognized when gift card is sold/issued to customer instead of when redeemed.

4. Revenue on sale of Sub-Franchisees is recognized as income when the new Sub-Franchisee are sold at any location as One-time Sub-Franchisee Fees based on Sub franchisee Agreement.

5. Monthly royalty is charged to the Sub-Franchisees.

6. Sale of product are recognized as below:

h. Inventory:

1. Inventories, including those held by the Company, are valued at lower of cost or net realizable value.

2. Cost of inventories is determined on first-in-first out (FIFO) method of inventory and valuation is done on the basis of weighted average method.

3. Cost of inventories comprises costs of purchase and other costs incurred in bringing them to their respective operating location.

4. The saleable products are classified under traded goods and stock-in-trade.

i. Employee Benefits:

1. Long term Employee benefits:

The provision for gratuity is recognized on full liability basis and calculated as per the Payment of Gratuity Act, 1972 i.e., in the case of monthly rated employees, fifteen days salary is divided by the monthly rate of salary last drawn by the employee on twenty-six-day basis. Gratuity is payable to employees only if they serve the company for a minimum period of five years.

2. Short term Employee Benefits:

All employee benefits payable wholly within Six months of rendering the service are classified as short-term employee benefits. Benefits such as salaries and other incentives are recognized at the undiscounted amount in the Profit and Loss Account in the period in which the employee renders the related service.

3. Other Employee Benefits - Leave Encashment

Under the other long term employee benefit plan, the company extends benefits of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon 45 leaves service tenure.

The company provides for the liability towards the said benefit on the basis of actuarial valuation carried out yearly as at the reporting date, by an independent qualified actuary using the projected unit credit method. The related re-measurements are recognized in the statement of profit and loss in the period in which they arise.

4. Employee Stock Option

Stock Options are granted to eligible employees under the "LLOYDS LUXURIES LIMITED EMPLOYEES STOCK OPTION SCHEME - 2023', as may be decided by the Nomination & Compensation Committee / Board. Eligible employees for this purpose include employees of the company. Under AS, the cost of Stock Options is recognised based on the fair value of Stock Options as on the grant date. While the fair values of Stock Options granted is recognised in the Statement of Profit and Loss for employees of the company (other than those out on deputation).

5. Provident Fund benefit to employees is provided for on accrual basis and charged to Profit and Loss Account.

j. Foreign Exchange Transactions:

Transactions in foreign currency are recorded at exchange rates prevailing on the dates of respective transactions. The difference in translation and realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss Account. Company has recognized a net Foreign Exchange Gain which has been calculated as per principles laid down in AS-11 (Please refer No. 23 (vi)).

The transactions that are due at the end of financial year are revalued at closing rate and the difference of realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss Account.

k. Impairment of Fixed Assets:

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, such assets are subject to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, loss is recognized.

l. Taxes on income:

1. Tax expense comprises both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period as per Income tax Act, 1961.

2. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.

m. Provisions and Contingent Liability/ Contingent Asset:

Provisions are recognized when the company has a legal and constructive present obligation as a result of a past event, for which it is probable that outflow of resources will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when there is a possible obligation that may result in an outflow of resources. Contingent assets are neither recognized nor disclosed. Please refer below.

Details of Disputed Statutory Dues, Pending litigations and Bank Guarantee shown as contingent liability as on 31^st March, 2025.

• Disputed Statutory Dues

During the financial year 2024-25, the Company has opted for the GST Amnesty Scheme and has paid the applicable tax amount while applying for waiver of interest and penalties. The order under the GST Amnesty Scheme is currently pending. Accordingly, the contingent liability for the year has been reduced to the extent of the tax amount paid.

• Pending Litigations

During the financial year, the previously ongoing litigation has been concluded, and as of the reporting date, the Company does not have any ongoing litigation; hence, there are no contingent liabilities recognized for the financial year.

n. Branding, Pre-operative and marketing expenditure:

During the year all branding marketing & pre operative cost are booked in profit & loss account.

Amount of branding, pre-operative and marketing costs carried forward from the previous years are amortized from the end of F.Y. 2023-24 for next 20 years through Intangible Assets.

Note 26: Additional Regulatory Informationa. Accounting Standard - 17 Segment reporting:

The Company is engaged in the sale & services of men's and women's groom care products which, in the context of Accounting Standard 17 on Segment Reporting constitutes a single reportable business segment.

b. Related Party Disclosures:

Disclosure on Related Party Transactions as required by AS 18 - Related Party Disclosures is given below: