Notes to Accounts of Lloyds Luxuries Ltd.

Mar 31, 2025

(i) The company has one class of share having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

(ii) In the event of liquidation of the company the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all prefrential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

(iii) Reconciliation of the number of Equity shares and amount outstanding at the beginning and at the end of the reporting period:

During the year, the Company allotted 10,00,000 equity shares to Mrs. Alpana Sanjay Dangi on a preferential basis in the Board meeting held on June 7, 2024, pursuant to the approval obtained through Postal Ballot on June 3, 2024.

"During the Financial year under 2023-24, the Nomination and Remuneration Committee granted 14,00,852 stock options under the "Lloyds Luxuries Limited Employee Stock Option Scheme - 2023" to eligible employees. This scheme was duly approved by the shareholders through a Postal Ballot conducted on February 24, 2023.These options are exercisable upon completion of the respective vesting periods, as specified under the Scheme.

In line with the vesting schedule, the Nomination and Remuneration Committee allotted to the "Lloyds Luxuries Employees Welfare Trust"

• 11,872 equity shares on September 30, 2024, against options vested on November 13, 2024, and

• 1,98,492 equity shares on March 3, 2025, against options will be vested on April 7, 2025,

The allotment of these 12,10,364 equity shares resulted in a corresponding increase in the paid-up share capital of the Company as on March 31, 2025"

The promoters'' shareholding decreased from 72.84% as on 31^st March, 2024 to 69.14% as on 31^st March, 2025, reflecting a 3.70% reduction. This change occurred because the company''s total number of shares increased by 12,10,364, while the number of shares held by the promoters remained the same. The increase in shares is due to the Preferential Issue of shares and Issuance of shares to eligible employees under the Lloyds Luxuries Limited Employee Stock Option Scheme-2023.

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Mar 31, 2024

. 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.

Sr. No.	Particulars	State	Demand Date	Amount (in H)	Forum where dispute is pending
1	GST	Maharashtra	18/05/2022	26,32,336	Deputy Commissioners of State Tax Jurisdiction: DELISLE_ROAD_502: MAZGAON: MUMBAI_SOUTH_EAST: Maharashtra, State/UT: Maharashtra
			06/10/2022	8,14,409
2		Delhi	02/04/2024	4,27,836	Sales Tax Officer Class II / AVATO Jurisdiction: Ward 98: Zone 9: Delhi, State/UT: Delhi
3		Telangana	30/01/2023	11,455	Commercial Taxes Department ASSISTANT COMMISSIONER (ST) JUBILEE HILLS 2 PUNJAGUTTA
Total				38,86,036

•	Pending Litigations
	Sr. No.	Party Name	Claim Amount	Interest	Total
	HH1	Shashank Garg	1^11,65,000.00	^jfj!TJfl510,48,500.00	Jfr“r''^2,13,500.00
		Interest amount	-	40,216.44	40,216.44
		Total (A)	11,65,000.00	10,88,716.44	22,53,716.44
	2	Ajay Bhartiya	10,03,600.00	Cv,*-	10,03,600.00
		Total (B)	10,03,600.00	fry -	10,03,600.00
		Total (A B)	21,68,600.00	10,88,716.44	32,57,316.44
•	Bank Guarantee
	Sr. No.	Particulars			Amount
	1	Bank Guarantee (Secured against FD held with HDFC Bank)			2,00,000

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 Information

a. 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.

3.	Explanation for Changes in Ratios by more than 25%
	Ratios	Explanation for Changes in Ratios	1
	(a) Current Ratio	The Current Ratio has risen to 2.071 driven by redemption of Fixed deposit and increase in inventory levels to capitalize on potential sales opportunities.
	(b) Debt Service Coverage Ratio	The Debt Service Coverage Ratio has increased due to a rise in the provision for ESOP expenses
	(c) Return on Equity Ratio	The company''s financial ratios have deteriorated, impacting the Return on Equity (ROE).This decline is due to losses incurred during the current financial year from the provision for ESOP expenses, amortization of preoperative capitalized expenses and the fact that the relative increase in costs has outpaced the relative increase in sales.
	(d) Trade Payables Turnover Ratio	Trade Payables Turnover Ratio has increased due to increase in Credit Purchases of inventory to maintain the inventory levels and meet the demand for the new stores.
	(e) Net Capital Turnover Ratio	Net Capital Turnover Ratio has improved due to increase in Net Sales. The company is able to increase the sales due to effectively utilising the working capital employed in the business.
	(f) Net Profit Ratio	The losses incurred during the current financial year, resulting from the provision for ESOP expenses, amortisation of Preoperative Capitalised Expenses and the fact that the relative increase in costs has outpaced the relative increase in sales, have impacted the company''s financial ratios resulting in decreased net profit ratio.
	(g) Return on Capital Employed	Return on Capital Employed has decreased due to decrease in EBIT as company has incurred ESOP expenses, Amortisation cost and the fact that the relative increase in costs has outpaced the relative increase in sales.
	(h) Return on Investment	Return on Investment has decreased due to redemption of Fixed deposit.

j. Previous Year figures have been regrouped / rearranged wherever necessary, to make them comparable with current year figure

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Mar 31, 2023

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.

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 would be
amortized from the end of F.Y. 2023-24 till next 20 years through Intangible Assets.

o. Accounting Standard - 17 Segment reporting:

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

p. Related Party Disclosures:

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

y. Previous Year figures have been regrouped / rearranged wherever necessary, to make them comparable
with current year figure

As per our report of even date attached

For S Y Lodha & Associates For and on behalf of the Board

Chartered Accountants LLOYDS LUXURIES LIMITED

ICAI Firm Reg. No. 136002W

sd/- sd/- sd/-

Mr. Shashank Lodha Mr. Shreekrishna Gupta Mr. Prannay Dokkania

Partner Chairman & Non-Executive Director Managing Director

Membership No. 153498 DIN: 06726742 DIN: 09621091

sd/- sd/-

UDIN : 23153498BGXKBF6009 Mr. Sushant Mishra Ms. Shubhada Shirke

Place : Mumbai Chief Financial Officer Company Secretary

Date : 26^th May 2023 PAN: AKYPM8597Q MEMBERSHIP: A66511