28.15 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.

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 hence same is shown under the head non-current financial assets 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

28.16 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.

28.17 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.

28.18 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.

28.19 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.

28.20 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.

28.21 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.

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:

(ii) Fair value hierarchy

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.

31. Financial risk management
A. Credit risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and
current and non-current held-to maturity financial assets.

(i) Credit risk management

The credit risk to the Company arises from two sources:

(a) Customers, who default on their contractual obligations, thus resulting in financial loss to the Company.

(b) Non certification by the customers, either in part or in full, the works billed as per the contract, being non claimable
cost as per the terms of the contract with the customer.

(a) Customers

The Company evaluates the credentials of a customer at a very early stage of the bid. Before participating for any
bid, the Company performs verification of customer credentials and ensures the compliance with the following
criterion,

(i) Customer’s financial health by examining the audited financial statements

(ii) Whether the Customer has achieved the financial closure for the work for which the Company is bidding

(iii) Brand and market reputation of the customer

(iv) Details of other contractors working with the customer

(v) Where the customer is Public Sector Undertaking, sanction and availability of adequate financial resources
for the proposed work

The Company makes provision on it’s financial assets, on every reporting period, as per Expected Credit Loss
Method. The provision is made separately for each financial assets of each business line. The percentage at which
the provision is made, is determined on the basis of historical experience of such provisions, modified to the current
and prospective business and customer profile.

Trade receivables consist of large number of customers, spread across diverse industries and geographical areas.
Majority of the customers of the Company comprise of Public Sector Undertakings, with whom the Company does
not perceive any default risk, however there would be a credit risk on account of delays in payments. Additionally
the Company has significant revenue contracts with Holding Company, Tata Projects Limited, the credit risk for
these transactions has been considered minimal. As regards the customers from private sector, The Company
carries out financial evaluation on regular basis and provides for any amount perceived as non realisable, in the
books of accounts.

(b) Non certification of works billed

The costs incurred on projects are regularly monitored through the Project budgets. Costs which are incurred
beyond the agreed terms and conditions of the contract,would be claimed from the customer, based on the actual
works performed. The realisability of such claims is reviewed by the Management on a periodic basis and the
costs, which are identified as non-tenable or costs beyond the collectible amounts would be provided in the books
of accounts.

B. Liquidity risk

The company has purposed new business operation which will be in operation from mid of next financial year and
management will infuse the fund to meet liquidity requirement of company.

32. Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006:

According to information available with the Management, on the basis of intimation received from suppliers regarding
their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has
not due any amount payable to micro, small and medium enterprise.

Disclosure under Section of Micro, Small and Medium Enterprises Development Act, 2006

# Amounts unpaid to micro and small enterprises on account of retention money has not been considered for the
purpose of interest calculations.

Dues to the Micro and small enterprises have been determined to the extent such parties have been identified on the
basis of information collected by the Management.

34. The accumulated losses of the Company (including other comprehensive income) as at 31st March
2024 stood at f 4059.80 Lakhs.

On account of the operating losses incurred during the year, the previous periods and discontinuation of existing business
operation, the Management, including the Board of Directors of the Company has been changed from December 2023 and
business objective of company has been changed

a. To carry on the business of purchase, sale, supply, import, export, distribute and to trade as traders, buyers,
sellers, retailers, wholesalers, suppliers, agents, sub-agents, merchants, distributors, or otherwise deal in all
agricultural and horticultural and agro based products including oil food products, fruits products, vegetables
products, organic foods, processed foods, health foods, protein foods, dairy products, milk products, convenience
foods, fast moving consumer goods, agro foods, fast foods, packed foods thereof..

b. To carry on the business of purchase, sale, supply, import, export, distribute and to trade as traders, buyers,
sellers, retailers, wholesalers, suppliers, agents, sub-agents, merchants, distributors, or otherwise deal in all
agricultural and horticultural and agro based products including oil food products, fruits products, vegetables
products, organic foods, processed foods, health foods, protein foods, dairy products, milk products, convenience
foods, fast moving consumer goods, agro foods, fast foods, packed foods thereof.

Managements has reassured all our stakeholders, including customers, suppliers, employees, and investors, that despite
these changes and accumulated loss made by company during last years, with change in managements, Servoteach
Industries Limited remains firmly committed to its operations. Our transition to a new business model and leadership
structure is a testament to our resilience and determination to thrive in an ever-evolving marketplace. We are confident in
our ability to effectively execute our strategies, maintain operational continuity, and deliver value in line with our vision and
mission.

Further management has assured that they will bring required cash to continue business operation and meet cash flow
need of company for a period of 12 months.

The significant accounting policies and accompanying notes forming an integral part of financial statements
As Per Our Report of even date

FOR LEXORAA INDUSTRIES LIMITED

(Formerly known as SERVOTEACH INDUSTRIES LIMITED)

FOR PATEL KABRAWALA AND CO.

CHARTERED ACCOUNTANTS
FRN NO:130952W

ANIL B. MEHTA NIKITA D. KOTHARI

MG DIRECTOR W. DIRECTOR

HARDIK VIKRAMBHAI PATEL DIN:-02979904 DIN:-07780991

PARTNER

MEMBERSHIP NO:135535

Place: Surat SHIVANSHI MAMTA KOTHARI

Date:28-05-2024 MISHRA CFO

UDIN: 24135535BKCPZL9119 (CS)