2.15 Provisions, contingent liabilities and contingent assets
Provisions are recognized when the Company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. The amount recognized as a provision is the
best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those each flows.
A contingent liability is:
a possible obligation that arises from past events and whose existence 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 but is not recognized
because It is not obligation that an outflow of resources embodying economic benefits will be
required to settle the obligation; or the amount of the obligation cannot be measured with
sufficient reliability. When it is probable at any stage of the contract that the total cost will exceed
the total contract revenue, the expected loss is recognized immediately.
2.16 Employee Benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employees' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.
(ii) Other long-term employee benefit obligations
Other long-term employee benefits comprise of earned leave and sick leave compensated
absences that are not expected to be settled wholly within 12 months after the end of the
period in which the employees render related services. These obligations are therefore
measured as the present value of expected future payments and expected utilisations (in
case of sick leaves) to be made in respect of services provided by employees up to the end
of the reporting period using the projected unit credit method. The benefits are discounted
using the appropriate market yields at the end of the reporting period that have terms
approximating to the terms of the related obligation. Re-measurements as a result of
experience adjustments and changes in actuarial assumptions are recognized in Other
comprehensive income.
The obligations are presented as current liabilities in the balance sheet if the entity does not
have an unconditional right to defer settlement for at least twelve months after the reporting
period, regardless of when the actual settlement is expected to occur.
2.17 Earnings Per Share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the Company
• by the weighted average number of equity shares outstanding during the financial
year.
(ii) Diluted Earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share to take into account:
• the after income tax effect of interest and other financing costs associated with
dilutive potential equity shares, and
• the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.
2.18 Operating cycle
All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle. The operating cycle is the time between acquisition of assets for
construction/fabrication activities and their realization in cash and cash equivalents. Based on the
nature of activities performed and time between acquisition of assets for construction/fabrication
activities and their realization in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months.
2.19 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.
2.20 Expected Credit Loss Allowance on other financial assets
No Expected Credit Loss provision, other than specific provisions, has been created for Cash and
Cash equivalents and Other financial assets since the Company considers the life time credit risk of
these financial assets to be very low.
2.21 Terms/rights attached to equity shares
The Company's issued, subscribed and paid-up capital comprises of equity shares only and no
preference shares have been issued. The Company's paid-up capital comprises only one class, i.e.
equity shares having par value of ^ 10 per share. They entitle the holder to participate in dividends,
and to share in the proceeds of winding up of the Company in proportion to the number of and
amounts paid on the shares held.
Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll each share is entitled to one vote.
The liability of the members is limited.
Restriction on distribution of dividend:
Pursuant to the terms of the loan given by the Holding Company, the Company is not permitted to
declare any dividend to the equity shareholders without the payment of loan amount to the
Holding Company in full.
a. No bonus shares have been issued during the last five years.
b. No shares have been issued for consideration other than cash during the last five years.
c. No shares have been bought back during the last five years.
24. Related party transactions
In accordance with the requirement of Ind AS 24 on Related Parties notified under the Companies (Indian
Accounting Standards) Rules, 2015, the name of related parties where control exists and / or with whom
transactions have taken place during the year and description of relationships, as identified and certified
by the Management are:
List of related parties and nature of relationship where control exists:
Key Managerial Personnel as on 31st March 2025
Mamta Nilesh Kothari, (CFO)
Kalpesh Chandrakant Joshi, (Company Secretary)
Nikita D. Kothari, (Promoter & Director)
Anil Babubhai Mehta, (Managing Director)
Companies having Directors Interest
a. Arham Overseas Limited (U36100MH2009PLC194386)
b. Lexoraa Bullions Private Limited (U24205MH2009PTC197360)
The Management assessed that trade receivables, cash and cash equivalents, other bank balances,
other financial assets, borrowings, trade payables and other financial liabilities approximate their
carrying amounts largely due to the short-term maturities or interest-bearing nature of these
instruments. The fair value of the 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, other than those with carrying amounts that are reasonable approximations
of fair values:
This section explains the judgments and estimates made in determining the fair values of the
financial instruments that are measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its financial instruments
into the three levels prescribed under the accounting standard. An explanation of each level
follows underneath the table.
All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
27. Financial risk management
The Company's principal financial liabilities comprise borrowings, security deposits, trade and other
payables, etc. The main purpose of these financial liabilities is to finance the Company's operations.
The Company's principal financial assets include trade receivable, security deposit, cash and cash
equivalents, etc. that derive directly from its operations. The Company also holds investments in the
shares of its subsidiary measured at amortised cost.
The Company is exposed to market risk, credit risk and liquidity risk. The management oversees the
management of these risks. The management is responsible for formulating an appropriate financial
risk governance framework for the Company and periodically reviewing the same. The management
ensures that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. The management reviews and agrees policies for managing each of these
risks, which are summarised below.
(a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprise three types of risk: interest rate risk,
foreign currency risk and Equity price risk.
(i) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Since the Company has borrowings, therefore
Company is exposed to such risk.
(ii) Foreign Currency Risk
The Indian Rupee is the Company's most significant currency. As a consequence, the Company's
results are presented in Indian Rupee and exposures are managed against Indian Rupee accordingly.
So, the Company is exposed to such risk.
(iii) Equity Price Risk
The Company's investment in shares are susceptible to market price risk arising from uncertainties
about future values of the investment securities. The Company manages the price risk through
diversification and by placing limits on individual and total instruments. Reports on the portfolio are
submitted to the management on a regular basis.
(b) Credit Risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. The Company is exposed to credit risk from its
operating activities (primarily trade receivables).
Trade receivables
Customer credit risk is managed by each business unit subject to the Company's established policy,
procedures and control relating to customer credit risk management.
The Company maintains a defined credit policy and monitors the exposures to these credit risks on
an ongoing basis. None of the trade receivables are credit impaired as on reporting date.
Other financials assets
Company has dispute for recovery of advances given to Pishu travels and Tours of Rs 6.50 lakhs and
matter is pending with the court from long time and management has strong view that they will win
the case and amount is recoverable hence no provision against this disputed due has been created.
(c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will have
sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The following table shows the maturity analysis of the company's financial liabilities based on
contractually agreed undiscounted cash flows as at the balance sheet date:
28. Capital management
The management policy is to maintain a strong capital base so as to maintain investor and creditor
confidence and to sustain future development of the business. The Company's management monitor the
return on capital employed.
29. Loans and Advances, Sundry Debtors, Sundry Creditors, Current Liabilities & Provisions, and other personal
accounts are subject to confirmation and reconciliation.
30. Other statutory information
(i) The Company does not have any transactions with companies struck off.
(ii) The Company does not have any charges or satisfaction which is yet to be registered
with Registrar of Companies (ROC) beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during
the year.
(iv) The Company has not advanced or given loan or invested funds to any other person(s)
or entity(ies), including foreign entities ('intermediaries') with the understanding that
the intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company; or
b. provide any guarantee, security or the like to or on behalf of the Company;
(v) The Company does not have any transaction which is not recorded in the books of
account that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961
(vi) The Company is not declared as a wilful defaulter by any bank or financial institution.
(vii) The Company has complied with the restriction on number of layers prescribed under
the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017.
(viii) The Company has not entered into any scheme or arrangement in terms of Section 230
to Section 237 of the Companies Act, 2013.
(ix) The provisions of Section 135 relating to Corporate Social Responsibility is not
applicable to the Company.
(x) The Company does not have any immovable property whose title deeds are not held
in the name of Company.
31. Payable to MSME
Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development
Act, 2006" is based on the information available with the Company regarding the status of registration of such
vendors under the said Act, as per the intimation received from them on requests made by the company.
There are no overdue principal amounts/ interest payable amounts for delayed payments to such vendors at
the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any
earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of
payments made during the year or brought forward from previous years.
32. Expenditure on Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to
spend at least 2% of its average net profit for the immediately preceding three financial years on corporate
social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition,
promoting education, art and culture, healthcare, destitute care and rehabilitation, environment
sustainability, disaster relief and rural development projects. A CSR committee has been formed by the
Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule
VII of the Companies Act, 2013.
(a) Gross amount required to be spent by the Company during the year - Nil
(b) Amount spent during the year on : Nil
35. Going Concern
The Company has incurred a net loss of ^47.56 Lakhs during the year ended 31st March 2025, has
accumulated losses of ^507.35 Lakhs, and its net worth has been fully eroded and stands negative
at ^84.39 Lakhs as at that date. These conditions, together with other matters described in the said
note, indicate the existence of a material uncertainty that may cast significant doubt on the
Company's ability to continue as a going concern.
However, as disclosed in the said note, the financial statements of the Company have been prepared
on a going concern basis, considering management's plans. The Company has already commenced
operations and closed the last quarter with revenue of ^254.93 Lakhs and a gross profit of ^16.20
Lakhs, and intends to continue operations under the revised business model. Further, the
promoters/management have confirmed their commitment to explore new business opportunities
and to infuse additional funds, as necessary, to meet the Company's working capital requirements
and cash flow needs. Based on this commitment and management's assessment of future business
prospects under the revised business model, the financial statements of the Company have been
prepared on a going concern basis.
36. Previous Years' Figures
The financial statements have been prepared in accordance with the companies (Indian Accounting
Standards) Rules, 2015 (Ind-AS) prescribed under Section 133 of the Companies Act, 2013 and other
recognised accounting practices and policies to the extent applicable. The previous period's figures
have been regrouped or rearranged wherever necessary.
For Bakliwal & Co. For Lexoraa Industries Limited
Chartered Accountants
Firm's Registration No.: 130381W
Sd /-
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Ankur Jain Anil B.Mehta Nikita D.Kothari
Partner (M No.197643) Director Director
Mumbai,28/05/2025
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Kalpesh Chandrakant Joshi Mamta Kothari
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