Provisions and contingencies
Provisions: A provision is recognised when the
Company has a present obligation as a result of
past events 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.
The amount recognised 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.
Contingent liabilities: Contingent liabilities are
disclosed 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 will be required to settle or a reliable
estimate of the amount cannot be made.
Contingent Asset: A contingent asset is a possible
asset 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 entity.
Contingent assets are disclosed in the Financial
Statements by way of notes to accounts when an
inflow of economic benefits is probable.
Cash and cash equivalents
Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term
balances (with an original maturity of three months
or less from the date of acquisition) and highly
liquid investments that are readily convertible into
known amounts of cash and which are subject to
insignificant risk of changes in value.
For the purposes of the cash flow statement, cash
and cash equivalents include cash on hand, in banks
and demand deposits (with an original maturity of
three months or less from the date of acquisition)
with banks.
Trade receivables
Trade receivables are recognised initially at fair
value unless they do not carry a significant financing
component, in which case they are recognized
at the transaction price. The Company generally
determines the allowance for expected credit
losses based on historical loss experience adjusted
to reflect current and estimated future economic
conditions. The Company considered current and
anticipated future economic conditions relating to
industries the company deals with and the countries
where it operates. In calculating expected credit
loss, the Company has also considered credit
reports and other related credit information for its
customers to estimate the probability of default in
future.
Trade Payables
For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.
Cash Flow statement
Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items
and tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals
of past or future cash receipts or payments. The
cash flows from operating, investing and financing
activities of the Company are segregated based
on the available information. Cash and cash
equivalents include cash on hand, cash with banks
in current and deposit accounts with necessary
disclosure of cash and cash equivalent balances
that are not available for use by the company.
Earning Per Share
Basic earnings per share have been computed by
dividing the net income by the weighted average
number of shares outstanding during the year.
Diluted earnings per share has been computed
using the weighted average number of shares and
diluted potential shares, except where the result
would be anti-dilutive
Dividends
Final dividends on shares are recorded on the date
of approval by the shareholders of the Company.
* The Company at its Extra-ordinary General Meeting of the Shareholders held on 24th day of March,2021 has
resolved to consolidate 10 (Ten) Equity Shares of T10/- each into 1 (one) Equity Share of T 100/- each fully
paidup with effect from the ‘Record date’ ie 05.05.2021 and the allotment of the consolidated shares has been
completed on 07.05.2021 after obtaining relevant approvals during the financial year 2021-2022.
(c) Rights, Preferences and restrictions attached to Shares
The company has only one class of equity shares having a par value of T 100/- per share. Each share holder
is entitled for one vote. As per the terms of the share issued, dividend is payable to the share holders in
proportion to the respective equity shares held by them on a fully diluted basis. Repayment of share capital on
liquidation will be in proportion to the number of equity shares held.
The CEO of the company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108
Operating Segments. The CODM evaluates the Company’s performance and allocates resources based on an analysis
of various performance indicators by industry classes. Accordingly, segment information has been presented.
The Company is structured into two reportable business segments - “Warehousing Rental Services” and “Engineering
Services”. The reportable business segments are in line with the segment wise information which is being presented
to the CODM.
Each segment item reported is measured at the measure used to report to the chief operating decision maker for
the purposes of making decisions about allocating resources to the segment and assessing its performance.
Geographic information is based on business sources from that geographic region. Accordingly the geographical
segments are determined as Domestic ie., within India and External ie., Outside India.
Income and direct expenses in relation to segments are categorized based on items that are individually identifiable
to that segment, while the remainder of costs are apportioned on an appropriate basis. Certain expenses are not
specifically allocable to individual segments as the underlying services are used interchangeably. The management
therefore believes that it is not practicable to provide segment disclosures relating to such expenses and accordingly
such expenses are separately disclosed as “unallocated” and directly charged against total income.
Note:
There were three customers who contributed to 10% or more to the company’s revenue belonging to Warehousing
rental segment (T570.66 Lakhs) for FY 2024-25.
There were three customers who contributed 10% or more to the company’s revenue out of which one belong to
Warehousing rental segment (T245.32 Lakhs) and two belong to Engineering services segment (T 429.50 Lakhs) for
FY 2023-24.
(a) Defined Contribution Plan:
The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined
contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs towards the benefits. The Company has recognised ? 20.74 Lakhs (for
the year ended March 31, 2024:? 19.31 Lakhs) as contribution to Provident Fund, and ? 3.80 Lakhs (for the
year ended March 31,2024 ? 4.49 Lakhs) as payment under Employee State Insurance Scheme in the Statement
of Profit and Loss. These contributions have been made at the rates specified in the rules of the respective
schemes and has been recognised in the Statement of Profit and Loss under the head Employee Benefits
Expense.
(b) Defined Benefit Plans:
Gratuity and Leave encashment
The gratuity obligation is funded. The following table sets out the status of the defined benefit schemes and
the amount recognised in the financial statements as per the Actuarial Valuation done by an Independent
Actuary:
Note: The compensation for employee absences are expected to be discharged within 12 months from the relevant
reporting period. As a result, the leave salary is determined to be a short-term employee benefit expense in
accordance with IND AS 19, Employee Benefits.
The employee benefit obligations expose the Company to actuarial risks such as: longevity risk, salary risk, market
risk, legislative risk and liquidity risk
Longevity Risk: The present value of the defined benefit obligation is calculated by reference to the best estimate
of the mortality of the participants during their employment. An increase in the life expectancy of the participants
will increase the obligation.
Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of
the participants. As such, an increase in the salary of the participants will increase the obligation.
Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the
financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of
the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and
hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due
to change in the legislation /regulation. The government may amend the Payment of Gratuity Act thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined
Benefit Obligation. The new labour code is a case in point and the same will have to be recognized immediately in
the year when any such amendment is effective.
Liquidity risk: Employees with high salaries and long durations of service or those higher in hierarchy, accumulate
significant level of benefits. If some of such employees resign / retire from the company there can be strain on
the cash flows.
The Company’s management objectives are:
- to ensure the Company’s ability to continue as a going concern
- to create value for Shareholders by facilitating the meeting of long term and short term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with long
term and short term expansion plans. The funding needs are met through equity, cash generated from operations,
long term and short term bank borrowings.
The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of
the overall debt portfolio of the Company. Net debt includes interest bearing instruments less cash and cash
equivalents and other bank balances (including non-current earmarked balances)
This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments. The details of significant accounting policies,
including the criteria for recognition, the basis of measurement and the basis on which income and expenses are
recognised in respect of each class of financial asset, and financial liability are disclosed in Note 2C(7) of Material
Accounting Policies.
A. Financial Assets and Liabilities
The accounting classification of each category of financial instruments, and their carrying amounts, are set out below:
The Management has assessed that the fair values of cash and cash equivalents, bank balances, trade receivables,
other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be
a reasonable approximation of fair value.
The following methods and assumptions are used to estimate the fair values:
Fair values of the Company’s interest-bearing instruments are determined by using Effective Interest Rate (EIR)
method. The own non- performance risk as at March 31, 2025 was assessed to be insignificant.
B. Fair value hierarchy
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments
by valuation techniques. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31.3 - Financial risk management objective
The Company’s activities expose it to certain / reasonable financial risks. The Company’s primary focus is to foresee
the unpredictability of such risks and seek to minimize potential adverse effects on its financial performance.
The Company has a risk management process and framework in place. This process is coordinated by the Board,
which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to
identify, evaluate business risks and challenges across the Company through such framework. These risks include
market risks, credit risk and liquidity risk.
The risk management process aims to:
- improve financial risk awareness and risk transparency
- identify, control and monitor key risks
- identify risk accumulations
- provide management with reliable information on the Company’s risk situation
- improve financial returns
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements:
Market Risk - Foreign Exchange
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not
the Company’s functional currency. Exposures to foreign currency balances are periodically reviewed to ensure
that the results from fluctuating currency exchange rates are appropriately managed.
The Company does not have any foreign currency receivable or payable exposures as at 31.03.2025 and 31.03.2024.
Market Risk - Interest Rate
(i) Liabilities:
The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At March 31,
2025, the Company is exposed to changes in market interest rates through bank borrowings at variable interest
rates. Below is the overall exposure of the Company to interest rate risk:
(ii) Assets:
The Company’s financial assets are carried at amortised cost and are at fixed rate only. They are, therefore,
not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates.
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts
due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks, security
deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at
reporting date.
In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to
any single counterparty or any company of counterparties having similar characteristics. The Company has very
limited history of customer default, and considers the credit quality of trade receivables, that are not past due or
impaired, to be good.
Therefore, the Company does not expect any material risk on account of non performance by any of the Company’s
counterparties. The Company uses a simplified approach of estimated credit losses for trade receivables which
provide for expected credit loss on lifetime expected losses. The credit risk for cash and cash equivalents, bank
deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations.
Liquidity Risk
The Company requires funds both for short-term operational needs as well as for long-term expansion programmes.
The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the
balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities and by continuously
monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The Company’s Finance department is responsible for liquidity, funding as well as settlement management. In
addition, processes and policies related to such risks are overseen by senior management.
The Company’s financial liability is represented significantly by long term and short term borrowings from banks
and trade payables. The maturity profile of the Company’s short term and long term borrowings and trade payables
based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table
below. The figures reflect the contractual undiscounted cash obligation of the Company.
(i) Financial Arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period:
Other disclosures under Schedule III of the Companies Act, 2013
32.2 The Union Ministry of Labour issued draft rules under section 67 of the Code on Wages Act on July 7, 2020 in
the Gazette and the Act is yet to be effective. The three labour codes, the Occupational Health, Safety and
Working Conditions Code 2020, the Industrial Relations Code 2020 and the Code on Social Security 2020 have
been passed by the parliament and have also received the assent of the President of India on 28 September
2020. However, the date on which these Codes will come into effect has not been notified. The Company
would assess the impact of these Codes and would record any related impact in the period these Codes
become effective.
32.3 Additional disclosures under Schedule III of the Companies Act,2013
i The Company did not undertake transactions that were not recorded in the books of accounts and
which have been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,
1961).
ii The Company has not made investments in any body corporate and hence disclosure regarding
compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017 does not apply.
iii The Company has not been declared a Wilful Defaulter by its lenders.
iv The Company does not hold any benami property and hence no proceedings have been initiated against
the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
v The Company has not traded in cryptocurrencies or vitual currencies during the year.
vi The Company has not entered into transactions with Companies that have been struck off the Register
of Companies
vii The Company has not (which are material either individually or in the aggregate) advanced or loaned or
invested any funds (either from borrowed funds or share premium or any other sources or kind of funds)
in any other person or entity, including foreign entity (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
viii The Company has not (which are material either individually or in the aggregate) received any funds
from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries
ix No scheme of arrangement has been approved by the competent authority in terms of Section 230 to
237 of the Companies Act, 2013.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets
are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Lease liabilities are monitored within the Company’s treasury function. All lease obligations are denominated
in currency units.
34.1 The financial statements of Lakshmi Engineering and Warehousing Limited were approved by the Board of
Directors and authorised for issue on 23rd May 2025
34.2 The Final Dividend on shares is recorded as liablity on the date of approval by the shareholders.
Dividend declared by the company are based on the profits available for distribution.
The Board of Directors have recommended a Dividend of ' 10/-(10%) each per equity share of the face value
of ' 100/- each, subject to the approval of the shareholders at the ensuing Annual General Meeting. This will
result in a total Dividend outgo of ' 66.87 Lakhs.
35 All figures have been rounded off to Lakhs unless stated otherwise. Discrepancies, if any, in between the
totals and the sum of the items forming part of such totals are due to rounding off in the financial statements.
Wherever figures are indicated as 0.00 Lakhs, it represents value less than ' 0.01 Lakhs due to rounding off
to the nearest Lakhs.
For and on behalf of the Board of Directors
(Sd.) S. PATHY (Sd.) R. SANTHARAM In terms of our report attached
Chairman (DIN:00013899) Director (DIN:00151333) For SUBBACHAR & SRINIVASAN
Chartered Accountants
(Sd.) R.D. ANANDAKUMAR (Sd.) K.P. KRISHNAKUMAR Firm Registration No. 00N083S
Chief Executive Officer Chief Financial Officer
(Sd.) ABHINAV VENKATESH
Coimbatore (Sd.) R. MUTHUKUMAR Partner
23-05-2025 Company Secretary Membership No. 263357
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