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Notes to Accounts of Balmer Lawrie & Company Ltd.

Mar 31, 2023

1.9 Provisions, Contingent liabilities and Capital commitments

a) Provision is recognised when there is a present
obligation as a result of a past event 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. Provision amount
are discounted to their present value where the
impact of time value of money is expected to be
material.

b) Contingent liabilities are disclosed in respect of
possible obligations that arise from past events
but their existence is confirmed by the occurrence
of one or more uncertain future events not wholly
within the control of the Company.

c) Contingent liabilities pertaining to various
government authorities are considered only on
conversion of show cause notices issued by them
into demand.

1.10Intangible assets

a) Expenditure incurred for acquiring intangible assets
like software costing ?500,000 and above and
license to use software per item of ?25,000 and
above, from which economic benefits will flow over
a period of time, is amortised over the estimated
useful life of the asset or five years, whichever is
earlier, from the time the intangible asset starts
providing the economic benefit.

b) Brand value arising on acquisition are recognised
as an asset and are amortised on a straight line
basis over 10 years.

c) Goodwill on acquisition is not amortised but tested
for impairment annually.

d) In other cases, the expenditure is charged to
revenue in the year in which the expenditure is
incurred.

1.11 Accounting for Research & Development

a) Revenue Expenditure is shown under Primary
Head of Accounts with the total of such expenditure
being disclosed in the Notes.

b) Capital expenditure relating to research &
development is treated in the same way as
other fixed assets.

1.12Treatment of Grant / Subsidy

a) Revenue grant/subsidy in respect of research
& development expenditure is set off
against respective expenditure.

b) Capital grant/subsidy against specific fixed assets
is set off against the cost of those fixed assets.

c) When grant/subsidy is received as compensation
for extra cost associated with the establishment of
manufacturing units or cannot be related otherwise
to any particular fixed assets the grant/subsidy so
received is credited to capital reserve. On expiry
of the stipulated period set out in the scheme of
grant/subsidy the same is transferred from capital
reserve to general reserve.

d) Revenue grant in respect of organisation of certain
events is shown under Sundry Income and the
related expenses there against under normal heads
of expenditure.

1.13 Impairment of assets

An assessment is made at each Balance Sheet
date to determine whether there is an indication
of impairment of the carrying amount of the fixed
assets. If any indication exists, an asset''s recoverable
amount is estimated. An impairment loss is recognised
whenever the carrying amount of the asset exceeds
the recoverable amount.

The recoverable amount of an asset or a cash¬
generating unit is the higher of its fair value less costs
to sell and its value in use.

Value in use is the present value of the future cash
flows expected to be derived from an asset or cash¬
generating unit using an appropriate discount factor.

1.14 Income taxes

Tax expense recognized in profit or loss comprises the
sum of deferred tax and current tax not recognized in
other comprehensive income or directly in equity.

Current tax is payable on taxable profit, which
differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax
laws that have been enacted or substantively enacted
by the end of the reporting period.

Deferred income taxes are calculated using the
liability method on temporary differences between the
carrying amounts of assets and liabilities and their
tax bases. However, deferred tax is not provided on
the initial recognition of an asset or liability unless
the related transaction is a business combination or
affects tax or accounting profit. Deferred tax assets
and liabilities are calculated, without discounting, at
tax rates that are expected to apply to their respective
period of realization, provided those rates are enacted
or substantively enacted by the end of the reporting
period.

Deferred tax asset (''DTA'') is recognized for all
deductible temporary differences, carry forward of
unused tax credit and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which deductible temporary difference, and
the carry forward of unused tax credits and unused
tax losses can be utilized or to the extent of taxable
temporary differences except:

- Where the DTA relating to the deductible
temporary difference arises from the initial
recognition of an asset or liability in a transaction
that is not a business combination; and at the time
of the transaction, affects neither accounting profit
nor taxable profit or loss.

- in respect of deductible temporary differences
arising from investments in subsidiaries,
branches and associates, and interests in joint
arrangements, to the extent that, and only to
the extent that, it is probable that the temporary
difference will reverse in the foreseeable future;
and taxable profit will be available against which
the temporary difference can be utilized.

This is assessed based on the Company''s forecast of
future operating results, adjusted for significant non¬
taxable income and expenses and specific limits on the
use of any unused tax loss or credit.

Changes in deferred tax assets or liabilities are
recognised as a component of tax income or expense
in profit or loss, except where they relate to items that
are recognized in other comprehensive income or

directly in equity, in which case the related deferred tax
is also recognized in other comprehensive income or
equity, respectively.

Deferred tax liabilities are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries, branches and
associates and interest in joint arrangements where the
Company is able to control the timing of the reversal of
the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.

1.15 Leases

The Company as a lessee

The Company considers whether a contract is, or
contains a lease. A lease is defined as ''a contract,
or part of a contract, that conveys the right to use
an asset (the underlying asset) for a period of
time in exchange for consideration''. To apply this
definition, the Company assesses whether the
contract meets three key evaluations of whether:

a) The contract contains an identified asset, which
is either explicitly identified in the contract or
implicitly specified by being identified at the time
the asset is made available to the Company.

b) The Company has the right to obtain substantially
all of the economic benefits from use of the
identified asset throughout the period of use,
considering its rights within the defined scope of
the contract.

c) The Company has the right to direct the use of the
identified asset throughout the period of use.

Measurement and recognition of leases

At lease commencement date, the Company
recognises a right-of-use asset and a lease liability. The
right-of-use asset is measured at cost, which includes
the initial measurement of the lease liability, any initial
direct costs incurred by the Company, an estimate of
any costs to dismantle and remove the asset at the end
of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives
received).

The Company depreciates the right-of-use asset on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment
when any indicators exist.

At lease commencement date, the Company
measures the lease liability at the present value of
the lease payments unpaid at that date, discounted
using the interest rate implicit in the lease if that rate
is readily available or the Company''s incremental
borrowing rate. Lease payments included in the
measurement of the lease liability are made up of fixed
payments, variable payments based on an index or
rate, amounts expected to be payable under a residual
value guarantee and payments arising from options
reasonably certain to be exercised.

Subsequent to the initial measurement, the liability
will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment
or modification, or if there are changes in fixed
payments. When the lease liability is remeasured, the
corresponding adjustment is reflected in the right-of-
use asset, or profit and loss if the right-of-use asset is
already reduced to zero.

The Company has elected to account for short-term
leases i.e. for leases for period less than 12 months
and leases of low-value i.e. value of leased asset which
is less than ?3,50,000 using the practical expedients.
Instead of recognising a right-of-use asset and lease
liability, the payments in relation to these are recognised
as an expense in profit or loss on a straight-line basis
over the lease term. In the Balance Sheet, right-of-
use assets have been disclosed under non-current
assets and lease liabilities have been disclosed under
financial liabilities.

The Company as a lessor

The Company classifies leases as either operating or
finance leases. A lease is classified as a finance lease
if the Company transfers substantially all the risks and
rewards incidental to ownership of the underlying asset
to the lessee, and classifies it as an operating lease if
otherwise.

1.16 Revenue recognition

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation.

Sale of goods

When the control over goods is transferred to the buyer
and no significant uncertainty exists regarding the
amount of consideration that is derived from the sale
of goods.

Services rendered

a) When control over the service rendered in full or
part is recognized by the buyer and no significant
uncertainty exists regarding the amount of
consideration that is derived from rendering the
services.

b) In case of project activities: As per the percentage
of completion method after progress of work
to a reasonable extent for which control can be
transferred to the buyer.

c) In cases where the Company collects consideration
on account of another party, it recognises revenue
as the net amount retained on its own account.

Other income

a) Interest on a time proportion basis using the
effective Interest rate method.

b) Dividend from investments in shares on
establishment of the Company''s right to receive.

c) Royalties are recognised on accrual basis in
accordance with the substance of the relevant
agreement

d) Export incentives are recognised as income only
at the time when there is no significant uncertainty
as to its measurability and ultimate realisation.

For determining the transaction price, the Company
measures the revenue in respect of each performance
obligation of a contract at its relative standalone selling
price.

The Company accounts for volume discounts and
pricing incentives to a buyer as a reduction of revenue
based on the ratable allocation of the discounts/
incentives to each of the underlying performance
obligation that corresponds to the progress by the
buyer towards earning the discount/ incentive.

Term of returns, refunds etc. are agreed with the
buyers on a case to case basis upon mutually
accepted terms and conditions. The impact of returns
and refunds is negligible on the turnover of the
Company.

As a practical expedient, as given in Ind AS 115,
the Company has not disclosed the remaining
performance obligation related disclosures for
contracts where the revenue recognized from the
satisfaction of the performance obligation corresponds
directly with the value to the customer of the entity''s
performance completed to date especially in relation
to those contracts where invoicing is on time and
material basis.

Significant payment terms:

Payment is generally received either in cash or based
on credit terms. Credit terms are agreed to with the
buyers and is generally in line with the respective
industry standards.

1.17 Borrowing Costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period
of time that is required to complete and prepare the
asset for its intended use or sale. Qualifying assets
are assets that necessarily take a substantial period of
time to get ready for their intended use or sale. Other
Borrowing Costs are recognised as expense in the
period in which they are incurred.

1.18 Cash Flow Statement

Cash Flow Statement, as per Ind AS - 7, is prepared
using the indirect method, whereby profit for the
period is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and items
of income or expenses associated with investing or
financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.

1.19 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 recognised at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligation
in balance sheet

(ii) Post-employment obligations

Defined Contribution Plans
Provident Fund: the Company transfers provident
fund contributions to the trust registered for
maintenance of the fund and has no further
obligations on this account. These are recognised
as and when they are due.

Superannuation Fund (SAF): the Company
contributes for eligible employees, a sum
equivalent to 9% and 8% for Executives and
Officers, respectively of salary, to the fund
administered by the trustees and managed by Life
Insurance Corporation of India (LIC) (for eligible
optees for LIC managed scheme) or to the fund
administered and managed by the NPS Trust
(for balance eligible optees for NPS managed
scheme). The Company has no further obligations
on this account. These are recognised as and
when they are due.

Defined Benefit Plans

Gratuity and Post Retirement Benefit plans - The
defined benefit obligation is calculated annually
by actuary using the projected unit credit method.
Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity. Changes
in present value of the defined benefit obligation
resulting from plan amendments or curtailments
are recognised immediately in profit or loss as
past service cost.

(iii) Other long term employee benefit obligations

The liabilities for leave encashment and long
service awards are not expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service.
They are measured annually by actuary using the

projected unit credit method. Re-measurement as
a result of experience adjustments and changes
in actuarial assumptions are recognised in the
period in which they occur in profit or loss.

1.20 Prior period Items

Material prior period items which arise in the current
period as a result of error or omission in the preparation
of prior period''s financial statement are corrected
retrospectively in the first set of financial statements
approved for issue after their discovery by:

a) restating the comparative amounts for the prior
period(s) presented in which the error occurred; or

b) If the error occurred before the earliest prior
period presented, restating the opening balances
of assets, liabilities and equity for the earliest prior
period presented.

c) Any items exceeding rupees twenty five lacs (?25
Lacs) shall be considered as material prior period
item.

d) Retrospective restatement shall be done except
to the extent that it is impracticable to determine
either the period specific effects or the cumulative
effect of the error. When it is impracticable to
determine the period specific effects of an error
on comparative information for one or more prior
periods presented, the Company shall restate the
opening balances of assets, liabilities and equity
for the earliest prior period for which retrospective
restatement is practicable (which may be the
current period).

1.21 Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss (excluding other comprehensive
income) for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for events such as bonus issue, share splits or
consolidation that have changed the number of equity
shares outstanding without a change in corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year
attributable to equity shareholders and the weighted
average number of equity shares outstanding during
the year are adjusted for the effects of dilutive potential
equity shares.

For and on behalf of the Board of Directors

For B. K. Shroff & Co. Adika Ratna Sekhar Adhip Nath Palchaudhuri R. M. Utthayaraja Saurav Dutta

Chartered Accountants Chairman and Director Director Director (Finance) &

Firm Registration No. 302166E Managing Director (Service Businesses) (Manufacturing Businesses) Chief Financial Officer

DIN 08053637 DIN 08695322 DIN 09678056 DIN 10042140

CA. P. K. Shroff Abhijit Ghosh Vandana Minda Heda Kavita Bhavsar

Partner Director Independent Director Company Secretary

Membership No. 059542 (Human Resource & DIN 09402294

Place: Kolkata Corporate Affairs)

Date: 25th May, 2023 DIN 10042785


Mar 31, 2018

GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

Balmer Lawrie & Co. Ltd. (the “Company”) is a Government of India Enterprise engaged in diversified business with presence in both manufacturing and service businesses. The Company is engaged in the business of Industrial Packaging, Greases & Lubricants, Leather Chemicals, Logistic Services and Infrastructure, Refinery & Oil Field and Travel & Vacation Services in India. The company is a Government company domiciled in India and is incorporated under the provisions of Companies Act applicable in India, its shares are listed on recognized stock exchange of India.

Basis of Preparation

The standalone financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules 2015 as amended issued by Ministry of Corporate Affairs and other relevant provisions of the Companies Act, 2013. The Company has uniformly applied the accounting policies during the period presented. The Company’s financial statements are prepared in accordance with and comply in all material aspects with Indian Accounting Standards (Ind AS). Unless otherwise stated, all amounts are stated in lakhs of Rupees.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

The preparation of financial statements requires the use of accounting estimates which, by definition, may or may not equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

The Standalone financial statements for the year ended 31st March are authorised and approved for issue by the Board of Directors.

The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:

a) current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.

b) discounted cash flow projections based on reliable estimates of future cash flows.

c) restrictions on remittance of income receipts or receipt of proceeds from disposals.

d) capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived from an analysis of market evidence.

e) The fair values of investment properties have been determined by external valuer. The main inputs used are rental growth rates, expected vacancy rates, terminal yield and discount rates based on industry data.

b) Rights/preferences/restrictions attached to equity shares

The Company has one class of equity shares having a par value of 10 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of Other Reserves Share Premium Reserve

Share Premium Reserve represents premium received on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income (OCI) Reserve

(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Fair Value through Other Comprehensive Income (FVOCI) equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(ii) The Company has recognised remeasurement benefits on defined benefits plans through Other Comprehensive Income

The Company has availed Term Loan of Rs.15 Crores for its integrated cold chain facilities at Rai and Patalganga from Standard Chartered Bank to obtain Grant - in- aid from Ministry of food Processing Industries (MoFPI). The Term Loan has an interest rate as 6 months MCLR applicable at the time of disbursement of Term Loan. The Loan is secured against the fixed and movable assets of Temperature Controlled Warehouses at Rai and Patalganga respectively. The Loan is repayable in 12 equal instalments starting from 18 months from the date of first drawal.

The major components of income tax expense and the reconciliation of expense based on the domestic effective tax rate of 34.608% and the reported tax expense in profit or loss are as follows :

NOTE NO. 1

EARNINGS PER EQUITY SHARE

The Company’s Earnings Per Share (‘EPS’) is determined based on the net profit after tax attributable to the shareholders’ of the Company being used as the numerator. Basic earnings per share is computed using the weighted average number of shares outstanding during the year as the denominator. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the year including share options, except where the result would be anti-dilutive. The Face value of the shares is Rs.10.

NOTE NO. 2

ACCOUNTING FOR EMPLOYEE BENEFITS

Defined Contribution Plans

The disclosures are made consequent to adoption of Ind AS 19 on Employee Benefits, issued by the Institute of Chartered Accountants of India, by the Company. Defined Benefit / Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment, Post-retirement medical benefits and Long Service Awards are recognized in the Statement of Profit & Loss on the basis of Actuarial valuation done at the year end. Actuarial gain /loss on post-employment benefit plans that is gratuity and post-retirement medical benefit plans are recognized in Other Comprehensive Income.

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund and Employee State Insurance Scheme which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund for the year aggregated to Rs.1,141.58 lakhs (Rs. 976.18 lakhs); Superannuation fund Rs.602.96 lakhs (Rs. 474.73 lakhs) and contribution to Employee State Insurance Scheme for the year aggregated to Rs.22.26 lakhs (Rs.13.24 lakhs).

Defined Benefit Plans Post Employment Benefit Plans

A. Gratuity

The gratuity plan entitles an employee, who has rendered atleast five years of continuous service, to receive fifteen days salary for each year of completed service at the time of superannuation/exit. Any shortfall in obligations is met by the company by way of transfer of requisite amount to the fund.

The reconciliation of the Company’s defined benefit obligations (DBO) and plan assets in respect of gratuity plans to the amounts presented in the statement of financial position is presented below:

(vi) Sensitivity Analysis

The significant actuarial assumption for the determination of defined benefit obligation in respect of gratuity plans is the discount rare. The calculation of the net defined benefit obligation is sensitive to this assumption. The following table summarises the effects of changes in this actuarial assumption on the defined benefit obligation:

B. Post retirement medical benefits scheme (Non-funded)

The post retirement medical benefit is on contributory basis and voluntary. It is applicable for all employees who superannuate/resign after satisfactory long service and includes dependant spouse, parents and children as per applicable rules.

C. Other long term benefit plans

Leave encashment (Non-funded), long service award(Non-funded)and half pay leave (Nonfunded)

The Company provides for the encashment of accumulated leave subject to a maximum of 300 days. The liability is provided based on the number of days of unutilised leave at each Balance Sheet date on the basis of an independent acturial valuation. Amount of Rs.603.51 Lakhs [Rs. (-) 24.76 Lakhs] has been recognised in the statement of Profit and Loss.

Long service award is given to the employees to recognise long and meritorious service rendered to the company. The minimum eligibility for the same starts on completion of 10 years of service and there after every 5 years of completed service. Amount of Rs. (-)37.60 Lakhs [Rs. (-) 37.07 Lakhs] has been recognised in the statement of Profit and Loss.

The leave on half pay is 20 days for each completed year of service on medical certificate or on personal grounds. Amount of Rs.50.96 Lakhs (Rs.110.81 Lakhs) has been recognised in the statement of Profit and Loss.

NOTE NO. 3 ADDITIONAL DISCLOSURES

3.1 (a) Conveyance deeds of certain Leasehold land costing Rs.2,541.35 lakhs (Rs. 2,598.32 lakhs) and buildings, with written down value of Rs.3,040.20 lakhs (Rs. 3,008.07 lakhs) are pending registration / mutation.

(b) Certain buildings & sidings with written down value of Rs. 6,662.84 lakhs (Rs. 6,772.63 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for finalizing the agreements with Kolkata Port Trust for renewal of such pending cases.

3.2 Contingent Liabilities as at 31st March, 2018 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax, Provident Fund and Service Tax amounting to Rs. 10,918.67 lakhs (Rs.. 11,465.40 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2018 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 893.17 lakhs (Rs. 913.73 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

3.3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Vijaya Bank, Yes Bank and Indusind Bank in respect of guarantees given by them amounts to Rs. 7,365.88 lakhs (Rs. 8,556.77 lakhs).

3.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid - Rs.88.11 lakhs (Rs. 100.08 lakhs)] amounted to Rs. 1,928.55 lakhs (Rs. 379.53 lakhs).

3.5 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are Outstanding for more than 45 days at the Balance Sheet date.

3.6 The net amount of exchange difference debited to Statement of Profit & Loss is Rs.12.84 lakhs [Credited Rs. 365.10 lakhs].

3.7 Trade receivables, loans and advances and deposits for which confirmations are not received from the parties are subject to reconciliation and consequential adjustments on determination / receipt of such confirmation.

3.8 Remuneration of Chairman & Managing Director, Whole time Directors and Company Secretary:

3.9 Excess Income Tax provision in respect of earlier years amounting to Rs.1,279 Lakhs (Rs.. 450 Lakhs) has been reversed in the current year.

3.10 The amount of Excise duty included in the amount of “Sale of Products” in Note 27 is relatable to Sales made during the period 1st April, 2017 and 30th June, 2017. With the introduction of GST with effect from 1st July 2017 excise duty has been subsumed in GST resulting in NIL value in Note 35 - “Other Expenses” related to the closing stock. Consequent to the same the turnover and finished goods figures are not comparable.

3.11 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in Note 40.19 below.

3.12 Segment Reporting

Information about business segment for the year ended 31st March, 2018 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the IND AS - 108 in respect of “Operating Segments ” is attached in Note 41.

Avi Oil India (P) Ltd. is classified as associate on the basis of the shareholding pattern which leads to significant influence over them by the Company. Further, in Balmer Lawrie (UAE) LLC, Balmer Lawrie Van Leer Ltd and Transafe Services Ltd. both the partners have equal nominee representatives in the Board. Hence, these entities are classified as joint ventures and the Company recognises its share in net assets through equity method.

The Company’s proportionate share of the estimated amount of contracts remaining to be executed on Capital Accounts relating to the Joint Venture & Associate Companies and not provided for in their respective financial statements amounts to Rs.608.87 lakhs (Rs. 359.60 lakhs).

With the adoption of Ind AS by the company and its group companies, the consolidation of individual line items under proportionate consolidation method being followed earlier under previous GAAP has been discontinued. Under the equity method as prescribed in Ind AS, the net assets of the group companies are shown as an increase in equity with corresponding increase in value of Investments in the parent company’s books. Hence the disclosure for aggregate amounts of each of the assets, liabilities, income and expenses related to the interests in the Joint Venture and associate companies are no longer relevant.

3.13 Miscellaneous Expenses shown under “Other Expenses” (Note no. 35) do not include any item of expenditure which exceeds 1% of the total revenue.

3.14 (a) Certain fixed deposits with banks amounting to Rs.5,299.82 lakhs (Rs. 7,317.64 lakhs) are pledged with a bank against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2018.

(b) Certain fixed deposits amounting to Rs.69.76 lakhs (Rs. 69.70 lakhs) are pledged with a bank against guarantees availed from the said bank.

(c) Fixed Deposit with bank amounting to ''0.85 lakhs (Rs. 0.79 lakhs) are lodged with certain authorities as security.

3.15 Ind AS 36, Impairment, requires the company to test assets for impairment at every financial year end wherever there exists conditions which indicate that an impairment loss may have occurred. The Vacations Vertical and the Kolkata plant of the SBU Industrial Packaging have been incurring losses for the last few years. In view of the same, Goodwill recognized in Vacations Vertical and fixed assets of the IP Kolkata unit have been impaired during the current financial year. The impairment loss resulting from the same has been disclosed as a separate line item under Other expenses in Note no 35 of the Statement of Profit & Loss.

3.16 The company has been sanctioned a Grant-in-aid of Rs.7.83 crores from the Ministry of Food Processing Industries (MoFPI) for setting up integrated cold chain facilities at Rai, Haryana and Patalganga in Maharashtra. Against the same the company has been disbursed Rs.1.81 crores during the current financial year which is treated as a deferred income and grouped under Non Financial liabilities (current) to be apportioned over the useful life of the assets procured out of such grant. During the current financial year a sum of Rs.5.50 lakhs has been credited to income in the statement of profit and loss.

3.17 (a) The financial statements have been prepared as per the requirement of Schedule III to the Companies Act, 2013.

(b) Previous year’s figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures .

(c) Figures in brackets relate to previous year.

(d) All amounts in Rs. Lakhs unless otherwise stated.


Mar 31, 2017

1. Earnings Per Equity Share

The Company’s Earnings Per Share (‘EPS’) is determined based on the net profit attributable to the shareholders’ of the Company. Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the year including share options, except where the result would be anti-dilutive.

2. Accounting for employee benefits Defined Contribution Plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, Superannuation Fund and Employee State Insurance Scheme which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contribution to Provident Fund for the year aggregated to Rs, 976.18 lakhs (Rs, 954.27 lakhs); Superannuation Fund Rs, 474.73 lakhs (Rs, 451.81 lakhs) and contribution to Employee State Insurance Scheme for the year aggregated to Rs, 13.24 lakhs (Rs,14.67 lakhs).

Defined Benefit Plans Post Employment Benefit Plans

A. Gratuity

The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive fifteen days salary for each year of completed service at the time of superannuation/exit. Any shortfall in obligations is met by the company by way of transfer of requisite amount to the fund.

The Company provides for the encashment of accumulated leave subject to a maximum of 300 days. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent acturial valuation. Amount of Rs, (-)24.76 lakhs (Rs, 255.38 lakhs ) has been recognized in the statement of profit and loss.

Long service award is given to the employees to recognize long and meritorious service rendered to the company. The minimum eligibility for the same starts on completion of 10 years of service and there after every 5 years of completed service. Amount of Rs, (-)37.07 lakhs (Rs, (-) 49.09 lakhs) has been recognized in the statement of profit and loss.

The leave on half pay is 20 days for each completed year of service on medical certificate or on personal grounds. Amount of Rs, (-)110.80 lakhs (Rs, 73.65 lakhs) has been recognized in the statement of profit and loss.

3. ( a) Conveyance deeds of certain Leasehold land costing Rs, 5,666.10 lakhs (Rs, 5,789.78 lakhs) and buildings, with written down value of Rs, 3,008.07 lakhs (Rs, 2,998.16 lakhs) are pending registration / mutation.

(b) Certain buildings & sidings with written down value of Rs, 6,772.63 lakhs (Rs, 6908.04 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port Trust have expired and are under renewal. Action has been taken for finalizing the agreements with Kolkata Port Trust for renewal of such pending cases.

4. Contingent Liabilities as at 31st March, 2017 not provided for in the accounts are :

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax, Provident Fund and Service Tax amounting to Rs, 11,465.40 lakhs (Rs, 10,185.49 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2017 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs, 913.73 lakhs (Rs, 1,181.03 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

5. Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Yes Bank and Indusind Bank in respect of guarantees given by them amounts to Rs, 8,556.77 lakhs (Rs, 10,274.64 lakhs).

6. Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid - Rs, NIL lakhs (Rs, NIL lakhs)] amounted to Rs, 379.53 lakhs (Rs, 132.66 lakhs).

7. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are Outstanding for more than 45 days at the Balance Sheet date.

8. The net amount of exchange difference credited to Statement of Profit & Loss is Rs, 365.10 lakhs [Debited Rs, 7.89 lakhs].

9. Trade receivables, loans and advances and deposits for which confirmations are not received from the parties are subject to reconciliation and consequential adjustments on determination/receipt of such confirmation.

10. Remuneration of Chairman & Managing Director, Whole time Directors and Company Secretary :

11. Excess Income Tax provision in respect of earlier years amounting to Rs, 450 Lakhs (Rs, 700 Lakhs ) has been reversed in the current year.

12. The amount of Excise duty included in the amount of “Sale of Products” in Note 27 is relatable to Sales made during the period and the amount of Excise Duty recognized separately in Note 35 - “Other Expenses” is related to the difference between the closing stock and the opening stock.

13. Employee Benefits

Consequent to adoption of Ind AS 19 on Employee Benefits, issued by the Institute of Chartered

Accountants of India, by the Company during the year, the prescribed disclosures are made in Note No 39 .

Defined Benefit/s Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment, Postretirement medical benefits and Long Service Awards are recognized in the Statement of Profit & Loss on the basis of Actuarial valuation done at the year end. Actuarial gain /loss on post-employment benefit plans that is gratuity and post-retirement medical benefit plans are recognized in Other Comprehensive Income.

14. Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in Note 40.20 below.

15. Related Party Disclosure

i) Name of Related Party Nature of Relationship

Balmer Lawrie Investments Ltd. (BLIL) Holding Company

Balmer Lawrie (U.K.) Ltd. Wholly owned subsidiary

Vishakhapatnam Port Logistics Park Ltd. Wholly owned subsidiary

Transafe Services Ltd. Joint Venture

Balmer Lawrie - Van Leer Ltd. Joint Venture

Balmer Lawrie (UAE) Llc. Associate

Avi - Oil India (P) Ltd. Associate

Balmer Lawrie Hind Terminals Pvt. Ltd. Joint Venture (Liquidation completed on 20th Oct 2016)

Proseal Closures Ltd. Wholly owned subsidiary of Balmer Lawrie Van Leer Ltd.

PT Balmer Lawrie Indonesia Joint Venture of Balmer Lawrie (UK) Ltd.

Shri V Sinha, Chairman and Managing Director Key Management Personnel (till 31.07.2015)

Shri N. Gupta, Director (Services Businesses) Key Management Personnel (till 31.07.2015)

Shri Prabal Basu, Chairman and Managing Director Key Management Personnel

Ms Manjusha Bhatnagar Director (HR & CA) Key Management Personnel Shri D. Sothi Selvam, Director (Manufacturing Business) Key Management Personnel

Shri K Swaminathan, Director (Service Business) Key Management Personnel (w.e.f 01.08.2015)

Shri S S Khuntia, Director (Finance ) Key Management Personnel (w.e.f 28.03.2016)

Ms Indrani Kaushal (Govt Nominee director) Key Management Personnel (w.e.f 27.12.2016)

Ms Atreyee Borooah Thekedath (Independent Director) Key Management Personnel (w.e.f 13.02.2017)

Ms Kavita Bhavsar, Company Secretary Key Management Personnel

16. Segment Reporting

Information about business segment for the year ended 31st March, 2017 in respect of reportable

segments as defined by the Institute of Chartered Accountants of India in the IND AS - 108 in respect of

“Operating Segments ” is attached in Note 41.

17. Earnings per Share

i. Earnings per share of the company has been calculated considering the Profit after Taxation of Rs,. 17041.89 lakhs (Rs,. 16435.01 lakhs) as the numerator.

ii. The weighted average number of equity shares used as denominator for calculation of basic and diluted earnings per share is 11,40,02,564 (11,40,02,564) and face value per share is Rs,. 10.

iii. The nominal value of shares for calculation of basic and diluted earnings per share is Rs,.11400.25 lakhs (Rs,. 11400.25 lakhs) and the earnings per share for the year on the above mentioned basis comes to Rs,. 14.95 (Rs,. 14.42).

Balmer Lawrie (UAE) LLC, Avi Oil India (P) Ltd. are classified as associate on the basis of the shareholding pattern which leads to significant influence over these companies by the Company. Further, in Balmer Lawrie Van Leer Ltd and Transafe Services Ltd. both the partners have equal nominee representatives in the Board. Hence, these entities are classified as joint ventures and the Company recognises its share in net assets through equity method.

The CompanyRs,s proportionate share of the estimated amount of contracts remaining to be executed on Capital Accounts relating to the Joint Venture & Associate Companies and not provided for in their respective financial statements amounts to Rs,. 359.60 lakhs (Rs,. 1,695.58 lakhs).

With the adoption of Ind AS by the company and its group companies, the consolidation of individual line items under proportionate consolidation method being followed earlier under previous GAAP has been discontinued. Under the equity method as prescribed in Ind AS, the net assets of the group companies are shown as an increase in equity with corresponding increase in value of investments in the parent company’s books. Hence the disclosure for aggregate amounts of each of the assets, liabilities, income and expenses related to the interests in the Joint Venture and Associate Companies are no longer relevant.

(2) Subject to final allocation / adjustment at the time of capitalization.

18. Miscellaneous Expenses shown under “Other Expenses” (Note no. 35) do not include any item of expenditure which exceeds 1% of the total revenue.

19. (a) Certain fixed deposits with banks amounting to Rs,. 7317.64 lakhs (Rs,. 4,600 lakhs) are pledged with a

bank against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2017.

(b) Certain fixed deposits amounting to Rs,. 69.70 lakhs (Rs,. 63.78 lakhs) are pledged with a bank against guarantees availed from the said bank.

(c) Fixed Deposit with bank amounting to Rs, 0.79 lakhs (Rs,. 1.37 lakhs) are lodged with certain authorities as security.

20. Balmer Lawrie Hind Terminals Pvt. Ltd. [“BLHTPL”], a joint venture company had gone for voluntary winding-up by its members. Last final accounts of BLHTPL was drawn for a period of 9 months from 1st April 2015 to 31st DecRs,2015, which has been audited by their Statutory Auditors. Based on the audited accounts, the Directors of BLHTPL have given Declaration of Solvency and recommended for winding-up, which was thereafter approved by BLHTPL’s shareholders on 11th FebRs,2016. Consequently, BLHTPL was treated as a Company in liquidation, Subsequently vide order of H’onble High Court of Madras dated 20th October 2016, the Company stands dissolved. Balmer Lawrie received Rs, 12.51 lakhs as final payment towards their investment in the same.

21. (a) The financial statements have been prepared as per the requirement of Schedule III to the Companies Act, 2013.

(b) Previous year’s figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures .

(c) Figures in brackets relate to previous year.

(d) All amounts in Rs, Lakhs unless otherwise stated.

*All financial assets/liabilities stated above are measured at amortized cost and their respective carrying values are not considered to be materially different from their fair values.

**1 Investment in equity instrument of subsidiaries, joint ventures and associates have been carried at cost amounting to Rs, 8723.30 (31 March 2016 Rs, 5723.30 and 01 April 2015 Rs, 5725.80) as per Ind AS 27 “Separate Financial Statement” and hence not presented here.

**2 This investment includes investment in other unquoted securities and the management estimates that its fair value would not be materially different from its carrying value, hence no fair value hierarchy disclosures are given in respect to these instruments, except BLHTPL for which fair valued method has been adopted.

ii) Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. 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.

The Company’s risk management other than in respect of trade receivables is carried out by a central treasury department under policies approved in-principle by the board of directors. The policies include principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of surplus funds. Company’s risk in respect of trade receivables is managed by the Chief Operating Officer of the respective Strategic Business Units.

A) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk is primarily from trade receivables and other receivables amounting to Rs, 46195.32 lakhs as at March 31, 2017 and Rs, 42109.20 lakhs as at March 31, 2016 respectively. The receivables are typically unsecured and are derived from revenue earned from customers which is predominantly outstanding from sales to Government departments and public sector entities whose risk of default has been very low in the past. In case of other trade receivables, the credit risk has been managed based on continuous montitoring of credit worthiness of customers, ability to repay and their past track record.

Provisions For receivables

There are no universal expected loss percentages which can be derived for the Company as a whole. The Company generally considers its receivables as impaired when they are outstanding for over three years period. Considering the historical trends based on amounts actually incurred as a loss in this regard over the past few years and market information, the Company estimates that the provision computed on its trade receivables will not be materially different from the amount computed using expected credit loss method prescribed under Ind AS 109. Since the amount of provision is not material for the Company as a whole, no disclosures have been given in respect of expected credit losses.

For other Financial assets

Loans - are given to regular employees who are on the payroll of the company as per the employment terms and primarily secured in case of house building and vehicle loans. For other loans the amounts are well within the net dues to the employeees and hence credit risk is taken as nil.

Accrued income - includes Dividend income from both Indian and foreign JV’s/associates. Hence no credit risk is envisaged.

Deposits - represent amounts lying with customers mainly Government and Public Sector Undertakings on account of security deposits, earnest money deposits and retention money given as per contractual terms. Based on past records the risk of default is minimal.

Cash & Cash equivalents - represent cash in hand and balances lying in current accounts with various consortium banks who have high credit ratings.

Other Bank balances - mainly represent fixed deposits having maturities up to one year and includes accrued interest on such deposits. These deposits have been taken with various public and private sector banks having the high credit rating.

B) Liquidity risk

Liquidity risk arises from borrowings and other liabilities. The company is an unleveraged entity, with no long term borrowings or debt.

“Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining short term debt financing plans.

The company does not foresee any problems in discharging their liabilities towards trade payables and other current liabilities as and when they are falling due.

C) Market Risk

Market risk arises due to change in foreign exchange rates or interest rates.

1) Interest rate risk

The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company has also invested in preference share capital of its joint venture company, Tran safe Services Limited which has been entirely provided for in the books of the company on account of total erosion of net worth of the JV and hence no further income is being accrued on this account. The company has not invested in any other instruments except equity investments. The company has no borrowings on which interest is payable.

2) Foreign currency risk

The Company is exposed to foreign exchange risk arising from net foreign currency payables, primarily with respect to the US Dollar, GBP and Euro. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Company’s functional currency. The Company as per its overall strategy uses forward contracts to mitigate its risks associated with fluctuations in foreign currency and interest rates on borrowings and such contracts are not designated as hedges under Ind AS 109. The Company does not use forward contracts for speculative purposes.

The Company is also exposed to foreign exchange risk arising from net foreign currency receivables on account of dividend and other fees from its foreign subsidiaries and associates, primarily with respect to the US Dollar and AED.

The Company, as a matter of policy decided by the Board of Directors, does not enter into derivative contracts.

Capital management

The Company’ s capital management objectives are :

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

DISCLOSURES IN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

First time adoption of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS applicable as at 31st March, 2017.

The accounting policies set out in Note no 1 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies ( Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act ( previous GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows are set out in the following tables and notes.

Exemptions and exceptions availed

The applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS is given below.

A. Ind AS optional exemptions

Deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and Ind AS 40- Investment Property.

Accordingly, the Company has elected to measure all of its Property, Plant and Equipment, Investment Properties and Intangible Assets at their previous GAAP carrying value.

Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to apply this exemption of making this assessment on the date of transition to Ind AS for such contracts/ arrangements.

Investment in subsidiaries, joint ventures and associates

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all its subsidiaries, joint ventures and associate companies as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly the company has elected to measure the investment in subsidiaries, joint ventures and associates at previous GAAP carrying amount.

B. Ind AS mandatory exemptions

1. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP.

2. Classification and measurement of financial assets and liabilities

The classification and measurement of financial instruments will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition to Ind AS.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to apply retrospectively the effective interest rate method requirements, then, fair value of financial assets at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

The company has applied the classification and measurement provisions as per Ind AS 109 as on the date of transition.

3. De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Under the previous GAAP, the upfront payment on account of leasehold land was recognized under property, plant and equipment as per the disclosure requirements of Schedule III. Under Ind AS, leasehold land with lease tenure up to thirty years disclosed under property, plant and equipment is reclassified to other assets ( prepaid rent). As a result of this change, the balance of property, plant and equipment has decreased by Rs, 3162.95 Lakhs as at 31st March, 2016 (Rs, 3298.61 Lakhs as at 1st April,2015) and consequently, other current and noncurrent assets have increased by Rs, 135.67 and Rs, 3027.28 Lakhs respectively as at 31st March, 2016 (Rs, 135.67 Lakhs and Rs, 3162.95 Lakhs respectively as at 1st April, 2015 ).

Under Ind AS, property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as Investment Property. As a result of this change, the balance of Property, plant and equipment has decreased and Investment Properties have increased by Rs, 95.25 Lakhs as at 31st March, 2016 ( Rs, 97.79 Lakhs as at 1st April, 2015).

Note B2 : Intangible Assets - Goodwill

Under Ind AS 103, goodwill is not written down unless impairment is evident. Goodwill needs to be reviewed annually for impairment using principles of Ind AS 36 - Impairment. Accordingly the amortisation of goodwill during the financial year ending on 31st March, 2016 for Rs, 183.65 Lakhs included under depreciation has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has increased by an equivalent amount.

Note B3 : Loans given to Employees

Under the previous GAAP, loan to employees was measured at cost. Under the Ind AS, these loans are considered as debt instruments and falls under the category of amortized cost. These instruments are measured at fair value and the difference between the carrying value and the discounted value ( fair value) shall be treated as prepaid employee cost resulting in decrease of loans by Rs, 138.75 Lakhs as at 31st March, 2016 (Rs, 150.03 Lakhs as at 1st April, 2015) and increase in other current and non-current assets by Rs, 20.22 Lakhs and Rs, 118.53 Lakhs respectively as at 31st March, 2016 (Rs, 19.41 Lakhs and Rs, 130.62 Lakhs respectively as at 1st April, 2015).

Note B4 : Revenue recognition

Under Ind AS, where the Company collects consideration on account of another party, it recognizes revenue as the net amount retained on its own account for services rendered in its Ticketing and Logistics businesses. This has resulted in reduction of turnover from services rendered and corresponding decrease in cost of services rendered of the company by Rs, 111493.62 Lakhs during the financial year 2015-16.

The company recognized its revenue relating to sale of tour packages on the basis of certainty of collection of the amount. In previous GAAP, revenue regarding the sale of service could be recognized on the basis of either Completed method or Percentage of completion method. In Ind AS, revenue regarding sale of service can only be recognized on the basis of Percentage of completion method and hence revenue relating to incomplete tours have been reversed. This has resulted in reduction of turnover from services rendered and corresponding decrease in cost of services rendered of the company by Rs, 38.61 Lakhs and Rs, 33.67 Lakhs respectively during the year ended 31st March, 2016 (Rs, 15.72 Lakhs and Rs, 14.68 Lakhs respectively as at 1st April, 2015). The same has been reversed in the subsequent years.

Note B5 : Trade Receivable and other receivables

Consequent to the change in revenue recognition under Ind AS as stated above, the receivables from the customers have also been reclassified from Trade receivables to Other receivables under other financial assets. As a result of this change, the balance of trade receivables has decreased and other receivables have increased by Rs, 19074.50 Lakhs as at 31st March, 2016 ( Rs, 14932.42 Lakhs as at 1st April, 2015).

Note B6 : Proposed Dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly the liability for proposed dividend including dividend distribution tax of Rs, 6892.82 Lakhs as at 31st March, 2016 (Rs, 6203.58 Lakhs as at 1st April, 2015) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has increased by an equivalent amount.

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of products is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31st March 2016 by Rs, 12105.14 Lakhs. There is no impact on total equity and profit.

Note B8 : Deferred Tax

As per Ind AS, deferred tax has been recognized on the adjustments made on transition to Ind AS. The impact of transition adjustments together with using balance sheet approach as per Ind AS against profit and loss approach in the previous GAAP for computation of deferred tax has impacted the reserves on date of transition, with consequential impacts on the profit and loss for the subsequent periods.

Note B9 : Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ represents re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

Actuarial gains/ losses on defined benefit plans for employees was being recognized in statement of profit and loss under IGAAP. This is now being recognized in other comprehensive income net of deferred tax. The net impact for the year ending 31st March 2016 is Rs, 246.63 Lakhs.

Note B10 : Other Equity

Other equity has been adjusted consequent to the above Ind AS transition adjustments.

Note B11 : Cash Credit (Short Term Borrowings)

Under Ind AS, cash credit (bank overdrafts) repayable on demand and which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, cash credit (bank overdrafts) were considered as part of borrowings and movements in cash credit (bank overdrafts) were shown as part of financing activities. Consequently, cash and cash equivalents have reduced by as at 31st March 2016 (as at 1st April 2015) and cash flows from financing activities for the year ended 31st March 2016 have also reduced by to the effect of the movements in cash credit (bank overdrafts).

Note B12 : Depreciation

As explained in note B1, Leasehold land has been de-capitalised and treated as prepaid rent under Ind AS. The prepaid rent is being charged to statement of profit and loss over the balance lease period as rent expenses. This has resulted in increase in rent expenses on this account by Rs, 135.67 Lakhs during 2015-16 with corresponding decrease in depreciation expenses on leasehold land.

Note B13 : Other Long Term Loans and Advances

Items like security deposits, retention money and other financial items of long term nature have been treated under the category of amortized cost. These instruments are measured at fair value and the difference between the carrying value and the discounted value (fair value) are treated as deferred cost and deferred gains for assets and liabilities respectively. The deferred cost/ deferred gains are being charged to statement of profit and loss over the life of the long term assets and liabilities on straight line basis.

This has resulted in decrease of long term deposits(assets) by Rs, 33.12 Lakhs as at 31st March, 2016 (Rs, 27.23 Lakhs as at 1st April, 2015) and increase in Deferred cost asset - current and non-current by Rs, 6.93 Lakhs and Rs, 26.19 Lakhs respectively as at 31st March, 2016 (Rs, 5.46 Lakhs and Rs, 21.77 Lakhs respectively as at 1st April, 2015 ).

Also, long term deposits ( Liabilities) have decreased by Rs, 10.55 Lakhs as at 31st March, 2016 (Rs, 17.48 Lakhs as at 1st April, 2015) with corresponding increase in Deferred gain(Liability) - current and non-current by Rs, 9.88 Lakhs and Rs, 0.67 Lakhs respectively as at 31st March, 2016 (Rs, 9.45 Lakhs and Rs, 8.03 Lakhs respectively as at 1st April, 2015 ).

All deposits with statutory authorities, utility departments and the like for which the cash flows cannot be predicted with certainty have been excluded.

Note B14 : Fair value gain on investment

Investment in equity shares of a joint venture which had gone for voluntary winding up has been fair valued at the value which was received from the official liquidator on liquidation.

Note : As per Ind AS 28 -Investments in Associates and Ind AS 31 - Interests in Joint Ventures, the company has followed the equity method of accounting for all its Joint ventures and associate companies. The net share of net worth including Profit/ Loss during the year has been adjusted to the Investment value with corresponding increase/ Decrease in Equity. In case of Transafe Services Ltd, since the net worth has turned negative, hence no further consolidation is required.


Mar 31, 2016

ADDITIONAL DISCLOSURES

1. (a) Conveyance deeds of certain Leasehold land costing Rs. 5,789.78 lakhs (Rs. 5,867.94 lakhs) and buildings, with written
down value of Rs. 2,998.16 lakhs (Rs. 2,933.76 lakhs) are pending registration / mutation.

(b) Certain buildings & sidings with written down value of Rs. 6,908.04 lakhs (Rs. 4,991.72 lakhs) are situated on
leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for
finalising the agreements with Kolkata Port Trust for renewal of such pending cases.

2. Contingent Liabilities as at 31st March, 2016 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax, Provident Fund and Service Tax amounting to Rs. 10,185.49 lakhs (Rs.
9,418.35 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed
demands as on 31st March, 2016 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 1,181.03 lakhs (Rs. 1,102.53 lakhs) in respect of which
the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes,
financial effect is ascertainable on settlement.

3. Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Yes Bank and Indusind Bank in respect of
guarantees given by them amounts to Rs. 10,274.64 lakhs (Rs. 10,726.36 lakhs).

4. Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid Rs. NIL
lakhs (Rs. 24.29 lakhs)] amounted to Rs. 132.66 lakhs (Rs. 208.91 lakhs).

5. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days
at the Balance Sheet date.

6. The net amount of exchange difference debited to Statement of Profit & Loss is Rs. 7.89 lakhs [ Credited Rs. 235.79 lakhs].

7. Trade receivables, loans and advances and deposits of which confirmations are not received from the parties are subject to
reconciliation and consequential adjustments on determination / receipt of such confirmation.

8. Research and Development expenditure charged to Statement of Profit & Loss during the year amounts to Rs. 535.39 lakhs (Rs.
603.57 lakhs).

9. Excess Income Tax provision in respect of earlier years amounting to Rs. 700 lakhs (Rs. 500 Lakhs ) has been reversed in
the current year.

10. The amount of Excise duty deducted from the amount of "Sale of Products" in Note 17 is relatable to Sales made during the
period and the amount of Excise Duty recognised separately in Note 25 - "Other Expenses" is related to the difference between the
closing stock and the opening stock.

11. Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India
being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are
recognised in the Statement of Profit & Loss on the basis of Actuarial valuation done at the year end. The details of such
employee benefits as recognised in the financial statements are attached as Annexure B.

12. Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its subsidiary / Joint Venture Companies /
Associates as at the year end except as is disclosed in Note 26.20 below.

13. Segment Reporting

Information about business segment for the year ended 31st March, 2016 in respect of reportable segments as defined by the
Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as
Annexure - C.

14. Earnings per Share

i. Earnings per share of the company has been calculated considering the Profit after Taxation of Rs. 16,320.04 lakhs (Rs.
14,744.44 lakhs) as the numerator.

ii. The weighted average number of equity shares used as denominator for calculation of basic and diluted earnings per share is
2,85,00,641 (2,85,00,641) and face value per share is Rs. 10.

iii. The nominal value of shares for calculation of basic and diluted earnings per share is Rs. 2,850.06 lakhs (Rs. 2850.06
lakhs) and the earnings per share for the year on the above mentioned basis comes to Rs. 57.26 (Rs. 51.73).

15. Miscellaneous Expenses shown under "Other Expenses" (Note no. 25) do not include any item of expenditure which exceeds 1%
of the total revenue.

16. (a) Certain fixed deposits with a bank amounting to Rs. 4,600 lakhs (Rs. 3,200 lakhs) are pledged with a bank against short
term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2016.

(b) Certain fixed deposits amounting to Rs. 63.78 lakhs (Rs. 58.87 lakhs) are pledged with a bank against guarantees availed from
the said bank.

(c) Fixed Deposit with banks amounting to Rs. 1.37 lakhs (Rs. 1.37 lakhs) are lodged with certain authorities as security.

17. A case of misappropriation of cash through wrong adjustments was noticed in one of the units of the company during the
course of review of debtors in the month of January, 2016. The company is presently undertaking a thorough reconciliation of the
relevant out standings. Based on preliminary in-house enquiry, an amount of Rs. 34.58 lacs has now been identified as defalcated
and the same is provided for in the books. The case has since been handed over to an investigating agency and necessary further
legal action will be taken thereafter.

18. Balmer Lawrie Hind Terminals Pvt. Ltd. [BLHTPL], a joint venture company has gone for voluntary wind- ing-up by its
members. Last final accounts of BLHTPL was drawn for a period of 9 months from 1st April'' 2015 to 31st Dec'' 2015, which has been
audited by their Statutory Auditors. Based on the audited ac- counts, the Directors of BLHTPL have given Declaration of Solvency
and recommended for winding-up, which was thereafter approved by BLHTPL''s shareholders on 11th Feb'' 2016. Consequently, BLHTPL
is treated as a Company in liquidation.

19. (a) The financial statements have been prepared as per the requirement of Schedule III to the Companies Act, 2013.

(b) Previous year''s figures have been re-grouped or re-arranged wherever so required to make them comparable with current year
figures.

(c) Figures in brackets relate to previous year.


Mar 31, 2015

1 Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ADDITIONAL DISCLOSURES

1 (a) Conveyance deeds of certain Leasehold land costing Rs. 5,867.94 lakhs (Rs. 2,889.41 lakhs) and buildings, with written down value of Rs. 2,933.76 lakhs (Rs. 2,900.70 lakhs) are pending registration / mutation.

(b) Certain buildings & sidings with written down value of Rs. 4,991.72 lakhs (Rs. 5083.80 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for finalising the agreements with Kolkata Port Trust for renewal of such pending cases.

2 Contingent Liabilities as at 31st March, 2015 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax, Provident Fund and Service Tax amounting to Rs. 9,418.35 lakhs (Rs. 18,972.80 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2015 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 1,102.53 lakhs (Rs. 1,090.76 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Yes Bank and Indusind Bank in respect of guarantees given by them amounts to Rs. 10,726.36 lakhs (Rs. 10,884.35 lakhs).

4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid - Rs. 24.29 lakhs (Rs. 15.37 lakhs)] amounted to Rs. 208.91 lakhs (Rs. 1,741.34 lakhs).

5 The net amount of exchange difference credited to Profit & Loss account is Rs. 235.79 lakhs [ (-) Rs. 416.95 lakhs].

6 Trade receivables, loans and advances and deposits of which confirmations are not received from the parties are subject to reconciliation and consequential adjustments on determination / receipt of such confirmation.

7 Research and Development expenditure charged to Profit & Loss Account during the year amounts to Rs. 762.49 lakhs (Rs. 609.48 lakhs).

8 Excess Income Tax provision in respect of earlier years amounting to Rs. 500 lakhs (Rs. 600 Lakhs) has been reversed in the current year.

9 The amount of Excise duty deducted from the amount of "Sales - Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Note 25 - "Other Expenses" is related to the difference between the closing stock and the opening stock.

10 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

11 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 26.20 below.

5 Related Party Disclosure

i) Name of related Party Nature of Relationship

Balmer Lawrie Investments Ltd. Holding Company

Balmer Lawrie (U.K.) Ltd. Wholly owned subsidiary

Visakhapatnam Port Logistics Wholly owned subsidiary Park Ltd.

Transafe Services Ltd. Joint Venture

Balmer Lawrie - Van Leer Ltd. Joint Venture

Balmer Lawrie (UAE) Llc. Joint Venture

Avi - Oil India (P) Ltd. Joint Venture

Balmer Lawrie Hind Terminals Joint Venture Pvt. Ltd.

Proseal Closures Ltd. Wholly owned subsidiary of Balmer Lawrie Van Leer Ltd.

i) Name of Related Party Nature of Relationship

PT Balmer Lawrie Indonesia Joint Venture of Balmer Lawrie (UK) Ltd.

Shri V Sinha, Chairman and Key Management Personnel Managing Director

Shri P.P. Sahoo, Director Key Management Personnel (till 31.05.2014) (HR & CA)

Shri A. Dayal, Director Key Management Personnel (Manufacturing Businesses) (till 31.12.2014)

Shri N. Gupta, Director Key Management Personnel (Services Businesses)

Shri P. Basu, Director (Finance) Key Management Personnel

Ms Manjusha Bhatnagar Director Key Management Personnel (HR & CA) (w.e.f. 30.12.2014)

Shri D. Sothi Selvam, Director Key Management Personnel (Manufacturing Business) (w.e.f. 02.01.2015)

Shri Amit Ghosh, Company Secretary Key Management Personnel (till 31.10.2014)

Ms Kavita Bhavsar, Company Secretary Key Management Personnel (w.e.f. 08.12.2014)

12 Segment Reporting

Information about business segment for the year ended 31st March, 2015 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as Annexure - C.

13 Earnings per Share

i. Earnings per share of the company has been calculated considering the Profit after Taxation of Rs. 14,744.44 lakhs (Rs. 15,666.99 lakhs) as the numerator.

ii. The weighted average number of equity shares used as denominator for calculation of basic and diluted earnings per share is 2,85,00,641 (2,85,00,641) and face value per share is Rs. 10.

iii. The nominal value of shares for calculation of basic and diluted earnings per share is Rs. 2,850.06 lakhs (Rs. 2850.06 lakhs) and the earnings per share for the year on the above mentioned basis comes to Rs. 51.73 (Rs. 54.97).

14 Miscellaneous Expenses shown under "Other Expenses" (Note no. 25) do not include any item of expenditure which exceeds 1% of the total revenue.

15 (a) Certain fixed deposits amounting to Rs. 3,200 lakhs (Rs. 3,400 lakhs) are pledged with a ban against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2015.

(b) Certain fixed deposits amounting to Rs. 58.87 lakhs (Rs. 54.21 lakhs) are pledged with a bank against guarantees availed from the said bank.

(c) Fixed Deposit with bank amounting to Rs. 1.37 lakhs (Rs. 1.37 lakhs) are lodged with certain authorities as security.

16 Consequent to implementation of SAP in Industrial Packaging & Leather Chemicals, overheads are loaded on real time basis on to semi-finished goods and finished goods on standard cost which is periodically reviewed. Prior to introduction of SAP, such loading of overheads was done on the closing stock of semi-finished goods and finished goods at the year-end based on the allocation of overheads at pre-determined ratios on the stock of semi-finished goods and finished goods. The impact of this change, however, is not ascertainable.

17 Pursuant to the enactment of the Companies Act 2013 (the 'Act'), the Company has, effective 1st April 2014, reviewed and revised the estimated useful lives of its fixed assets, in accordance with the provisions of Schedule II of the Act, except those mentioned in 2(f) of Significant Accounting Policies. This has resulted in lower depreciation for the year on account of Plant & Machinery to the tune of Rs. 212.18 Lacs and higher depreciation for other assets of Rs. 576.77 Lacs, net impact being Rs. 364.59 Lacs. Out of this a sum of Rs. 301.65 Lacs has been adjusted against retained earnings as per transitional provisions specified in Schedule II of the Act, and the consequential estimated impact on the results for the year is Rs. 62.94 lakhs. An amount of Rs. 199 Lacs (net of deferred tax) has been adjusted against the opening balance of Retained earnings for the assets which had no residual life as at 1st April, 2014.

18 (a) The financial statements have been prepared as per revised Schedule III to the Companies Act, 2013.

(b) Previous year's figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures.

(c) Figures in brackets relate to previous year.


Mar 31, 2014

Note No. 1

ADDITIONAL DISCLOSURES

1.1 (a) Fixed Deposit with bank amounting to Rs 1.37 lakhs (Rs 1.57 lakhs) are lodged with certain authorities as security.

(b) Conveyance deeds of certain land costing Rs 2,889.41 lakhs (Rs 2,948.46 lakhs) and buildings, with written down value of Rs 2,900.70 lakhs (Rs 2,880.29 lakhs) are pending registration / mutation.

(c) Certain buildings & sidings with written down value ofRs 5,083.80 lakhs (Rs 5,156.87 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port Trust have expired and are under renewal. Action has been taken for finalising the agreements with Kolkata Port Trust for renewal of such pending cases.

1.2 Contingent Liabilities as at 31st March, 2014 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax, Provident Fund and Service Tax amounting to Rs 18,972.80 lakhs (Rs 8,462.88 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2014 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs 1,090.76 lakhs (Rs 1,039.40 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

1.3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank and Indusind Bank in respect of guarantees given by them amounts to Rs 10,884.35 lakhs (Rs 10,864.36 lakhs).

1.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid - Rs 15.37 lakhs (Rs 940.69 lakhs)] amounted to Rs 1,741.34 lakhs (Rs 5,094.96 lakhs).

1.5 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date except as is shown below:

The above information has been determined to the extent such parties have been identified on the basis of information available with the company and relied upon by the auditors

1.6 The net amount of exchange difference debited to Profit & Loss account isRs 416.95 lakhs (Rs 103.74 lakhs).

1.7 Confirmation letters have been issued in respect of trade receivables, loans and advances and deposits of the company but not responded to in many cases. Hence unconfirmed balances are subject to reconciliation and consequent adjustments, if any, would be determined / made on receipt of such confirmation.

1.8 Research and Development expenditure charged to Profit & Loss Account during the year 2013-14 amounts to Rs 609.48 lakhs (Rs 585.48 lakhs).

1.9 Excess Income Tax provision in respect of earlier years amounting toRs 600 lakhs (Rs 1,040.00 Lakhs) has been reversed in the current year.

1.10 The amount of Excise duty deducted from the amount of "Sales - Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Note 25 - "Other Expenses" is related to the difference between the closing stock and the opening stock.

1.11 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

1.12 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 26.21 below.

1.13 Related Party Disclosure

i) Name of Related Party Nature of Relationship

Balmer Lawrie Investments Ltd. Holding Company

Balmer Lawrie (U.K.) Ltd. Wholly owned subsidiary

Transafe Services Ltd. Joint Venture

Balmer Lawrie - Van Leer Ltd. Joint Venture

Balmer Lawrie (UAE) Llc. Joint Venture

Avi - Oil India (P) Ltd. Joint Venture

Balmer Lawrie Hind Terminals Pvt. Ltd. Joint Venture

Proseal Closures Ltd. Wholly owned subsidiary of Balmer Lawrie Van Leer Limited.

PT Balmer Lawrie Indonesia Joint Venture of Balmer Lawrie (UK) Ltd. Shri V Sinha, Chairman and Managing Director Key Management Personnel

Shri V N Sharma, Director Key Management Personnel (Manufacturing Businesses) (till 31-07-2012)

Shri K Subramanyan, Director (Finance) Key Management Personnel (till 30-11-2012) Shri P.P. Sahoo, Director (HR & CA) Key Management Personnel

Shri A. Dayal, Director Key Management Personnel (Manufacturing Businesses) (w.e.f. 01-08-2012)

Shri N. Gupta, Director (Services Businesses) Key Management Personnel (w.e.f. 27-07-2012)

Shri P. Basu, Director (Finance) Key Management Personnel (w.e.f. 01-12-2012)

1.14 Segment Reporting

Information about business segment for the year ended 31st March, 2014 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as Annexure - C.

1.15 Earnings per Share

i. Earnings per share of the company has been calculated considering the Profit after Taxation of Rs 15,666.99 lakhs (Rs 16,277.03 lakhs) as the numerator.

ii. The weighted average number of equity shares used as denominator for calculation of basic and diluted earnings per share is 2,85,00,641 (2,85,00,641) and face value per share is Rs 10.

iii. The nominal value of shares for calculation of basic and diluted earnings per share is Rs 2,850.06 lakhs (Rs 2850.06 lakhs) and the earnings per share for the year on the above mentioned basis comes to Rs 54.97 (Rs 57.11).

iv. Consequent to the approval of the shareholders, vide the postal ballot, the Company has issued Bonus Shares in the proportion of three new equity shares for every four existing equity shares held. Accordingly a sum ofRs 1221.45 lakhs has been capitalized out of General Reserve and transferred to Share Capital Account on allotment of fully paid bonus shares on 25th May, 2013. The earnings per share have been adjusted for bonus issue of 3:4.

The Company''s proportionate share of the estimated amount of contracts remaining to be executed on Capital Accounts relating to the Joint Venture Companies and not provided for in their respective financial statements amounts to Rs 2257.24 lakhs (Rs 9.79 lakhs).

The aggregate amounts of each of the assets, liabilities, income and expenses related to the interests in the Joint Venture companies are as follows :-

1.16 Miscellaneous Expenses shown under "Other Expenses" (Note no. 25) do not include any item of expenditure which exceeds 1% of the total revenue.

1.17 (a) Certain fixed deposits amounting to Rs 3,400 lakhs (Rs 3,500 lakhs) are pledged with a bank against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2014.

(b) Certain fixed deposits amounting to Rs 54.21 lakhs (Rs 43.20 lakhs) are pledged with a bank against guarantees availed from the said bank.

26.29 Consequent to implementation of SAP in Industrial Packaging, overheads are loaded on real time basis on to semi-finished goods and finished goods on standard cost which is periodically reviewed. Prior to introduction of SAP, such loading of overheads was done on the closing stock of semi-finished goods and finished goods at the year-end based on the allocation of overheads at pre-determined ratios on the stock of semi-finished goods and finished goods. The impact of this change, however, is not ascertainable.

1.18 During the current year the company finally closed down the operations of the Tea division which had been underperforming over a number of years. It was a non-core activity and was not a reportable segment under Accounting Standard 17 - Segment Reporting. With the closure of operations on 30th September, 2013 all the fixed assets of the division, having a carrying value ofRs 90.10 lakhs, have been disposed off during the year at a net profit on sale of such assets ofRs 36.56 lakhs. The closure of the business has neither any material impact on the operating results of the Company nor on its cash flows.

1.19 During the year the Company revised depreciation rates on items given under furniture equipment scheme to employees. The effect of such revision amounted to reduction of current year profit by Rs 13.85 lakhs.

1.20 (a) The financial statements have been prepared as per revised Schedule VI to the Companies Act, 1956.

(b) Previous year''s figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures.

(c) Figures in brackets relate to previous year.


Mar 31, 2013

1.1 (a) Fixed Deposit with bank amounting to Rs. 1.57 lakhs (Rs. 1.57 lakhs) are lodged with certain authorities as security.

(b) Conveyance deeds of certain land costing Rs.2,948.46 lakhs (Rs. 3,007.51 lakhs) and buildings, with written down value of Rs. 2,880.29 lakhs (Rs. 2,930.28 lakhs) are pending registration / mutation.

(c) Certain buildings & sidings with written down value of Rs. 5,156.87 lakhs (Rs. 4,794.34 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for finalising the agreements with Kolkata Port Trust for renewal of such pending cases.

1.2 Contingent Liabilities as at 31st March, 2013 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service Tax amounting to Rs. 8,461.33 lakhs (Rs. 7,787.79 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2013 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 1039.40 lakhs (Rs. 779.53 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

(c) Bills discounted with banks Rs. NIL Lakhs (Rs. 12.67 Lakhs).

1.3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, HSBC, State Bank of India, Canara Bank and Indusind Bank in respect of guarantees given by them amounts to Rs. 10,864.36 lakhs (Rs. 10,779.88 lakhs).

1.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid - Rs. 940.69 lakhs (Rs. 188.24 lakhs)] amounted to Rs. 5,094.96 lakhs (Rs. 1,875.37 lakhs).

1.5 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date.

The above information has been determined to the extent such parties have been identified on the basis of information available with the company and relied upon by the auditors.

1.6 The net amount of exchange difference debited to Profit & Loss account is Rs. 103.74 lakhs (Rs. 283.66 lakhs).

1.7 Confirmation letters have been issued in respect of trade receivables, loans and advances and deposits of the company but not responded to in many cases. Hence unconfirmed balances are subject to reconciliation and consequent adjustments, if any, would be determined / made on receipt of such confirmation.

1.8 Remuneration of Chairman & Managing Director and Wholetime Directors:

1.9 Research and Development expenditure charged to Profit & Loss Account during the year 2012-13 amounts to Rs. 585.48 lakhs (Rs. 523.47 lakhs).

1.10 Excess Income Tax provision in respect of earlier years amounting to Rs. 1,040.00 lakhs (Rs. 1,320.00 Lakhs ) has been reversed in the current year.

1.11 During the current financial year, the performance of Transafe Services Ltd. a joint venture company, was not upto the levels envisaged in the Corporate Debt Restructuring Scheme (CDR) due to adverse market conditions. Considering the same, the Company, as a measure of prudence, has provided a sum of Rs. 147.63 lakhs (Rs. 1,181.87 lakhs) towards diminution in the value of investments in TSL. Further, the Company, has also made a provision of Rs. 908.96 lakhs (Rs. 908.96 lakhs), which is balance of the loan provided earlier to Balmer Lawrie-Van Leer Ltd. (another joint venture company) for acquisition of shares of TSL.

1.12 The amount of Excise duty deducted from the amount of "Sales - Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Note 25 - "Other Expenses" is related to the difference between the closing stock and the opening stock.

1.13 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

1.14 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 26.21 below.

1.15 Segment Reporting

Information about business segment for the year ended 31st March, 2013 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as Annexure - C.

1.16 Earnings per Share

(i) Earnings per share of the company has been calculated considering the Profit after Taxation of Rs. 16,277.03 lakhs (Rs. 13,807.28 lakhs) as the numerator.

(ii) (a) The weighted average number of equity shares used as denominator for calculation of basic earnings per share is 1,62,86,081 (1,62,86,081) and face value per share is Rs. 10.

(b) The weighted average number of equity shares used as denominator for calculation of diluted earnings per share is 2,85,00,641 (2,85,00,641) and face value per share is Rs. 10. (Please refer to Note No. 1F)

(iii) (a) The nominal value of shares for calculation of basic earnings per share is Rs. 1,628.61 lakhs (Rs. 1,628.61 lakhs) and the Basic earnings per share for the year on the above mentioned basis comes to Rs. 99.94 (Rs. 84.78).

(b) The nominal value of shares for calculation of diluted earnings per share is Rs. 2,850.06 lakhs (Rs. 2,850.06 lakhs ) and the Diluted earnings per share for the year on the above mentioned basis comes to Rs. 57.11 (Rs. 48.45).

1.17 Miscellaneous Expenses shown under "Other Expenses" (Note no. 25) do not include any item of expenditure which exceeds 1% of the total revenue.

1.18 (a) Certain fixed deposits amounting to Rs. 3,500 lakhs (Rs. 2,700 lakhs) are pledged with a bank against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2013.

(b) Certain fixed deposits amounting to Rs. 43.20 lakhs (Rs. 43.20 lakhs) are pledged with a bank against guarantees availed from the said bank.

1.19 (a) The financial statements have been prepared as per revised Schedule VI to the Companies Act, 1956.

(b) Previous year''s figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures.

(c) Figures in brackets relate to previous year.


Mar 31, 2012

1. ADDITIONAL DISCLOSURES

1.1

(a) Fixed Deposit with bank amounting to Rs.. 1.57 lakhs (Rs. 1.37 lakhs) are lodged with certain authorities as security.

(b) Conveyance deeds of certain land costing Rs.. 3,007.51 lakhs (Rs.. 1,733.57 lakhs) and buildings, with written down value of Rs.. 2,930.28 lakhs (Rs.. 1,672.90 lakhs) are pending registration / mutation.

(c) Certain buildings & sidings with written down value of Rs.. 4,794.34 lakhs (Rs.. 4,237.88 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for fi nalising the agreements with Kolkata Port Trust for renewal of such pending cases.

1.2 Contingent Liabilities as at 31st March, 2012 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service Tax amounting to Rs.. 7,787.79 lakhs (Rs.. 6,879.20 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2012 are given in Annexure – A.

(b) Claims against the company not acknowledged as debts amounts to Rs.. 779.53 lakhs (Rs.. 710.47 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

(c) Bills discounted with banks Rs.. 12.67 Lakhs (Rs.. 108.85 Lakhs).

1.3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, HSBC, State Bank of India, Canara Bank and Indusind Bank in respect of guarantees given by them amounts to Rs.. 10,779.88 lakhs (Rs.. 9,493.18 lakhs).

1.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [net of advances paid – Rs.. 188.24 lakhs (2010-11 Rs.. 195.92 lakhs)] amounted to Rs.. 1,875.37 lakhs (Rs.. 1,405.25 lakhs).

1.5 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days at the Balance Sheet date.

The above information has been determined to the extent such parties have been identifi ed on the basis of information available with the company and relied upon by the auditors

1.6 The amount of exchange difference credited to Profit & Loss account is Rs.. -283.66 lakhs (Rs.. 41.79 lakhs).

1.7 Confi rmation letters have been issued in respect of trade receivables, loans and advances and deposits of the company but not responded to in many cases. Hence unconfi rmed balances are subject to reconciliation and consequent adjustments, if any, would be determined / made on receipt of such confi rmation.

1.15 Research and Development expenditure charged to Profit & Loss Account during the year 2011-12 amounts to Rs.. 523.47 lakhs (Rs.. 352.22 lakhs).

1.16 Excess Income Tax provision in respect of earlier years amounting to Rs.. 1,320.00 lakhs ( Rs.. Nil Lakhs ) has been reversed in the current year.

1.17 During the current financial year, the performance of Transafe Services Ltd. (TSL), was not upto the levels envisaged in the Corporate Debt Restructuring Scheme (CDR) due to adverse market conditions. Considering the same, the Company, as a measure of prudence, has provided a sum of Rs.. 1,181.87 lakhs towards diminution in the value of investments in TSL. Further, the Company, has also made a provision of Rs.. 908.96 lakhs, which is 50% of the loan provided earlier to Balmer Lawrie-Van Leer Ltd. (another joint venture company) for acquisition of shares of TSL.

1.18 The amount of Excise duty deducted from the amount of "Sales – Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Note 25 – "Other Expenses" is related to the difference between the closing stock and the opening stock.

1.19 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defi ned Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

1.20 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company does not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 26.21 (ii) below.

1.21 Segment Reporting

Information about business segment for the year ended 31st March, 2012 in respect of reportable segments as defi ned by the Institute of Chartered Accountants of India in the Accounting Standard – 17 in respect of "Segment Reporting" is attached as Annexure - C.

1.22 Earnings per Share

(i) Earnings per share of the company has been calculated considering the Profit after Taxation of Rs..13,807.28 lakhs (Rs..12,108.90 lakhs) as the numerator.

(ii) The weighted average number of equity shares used as denominator is 1,62,86,081 ( 1,62,86,081 ) and face value per share is Rs.. 10.

(iii) The nominal value of shares is Rs..1,628.61 lakhs ( Rs.. 1,628.61 lakhs ) and the earnings per share (Basic and Diluted ) for the year on the above mentioned basis comes to Rs.. 84.78 (Rs.. 74.35)

1.23 Miscellaneous Expenses shown under "Other Expenses" (Note no. 25) do not include any item of expenditure which exceeds 1% of the total revenue.

1.24 (a) Certain fixed deposits amounting to Rs.. 2,700.00 lakhs (Rs.. Nil) are pledged with a bank against short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2012.

(b) Certain fixed deposits amounting to Rs.. 43.20 lakhs (Rs.. Nil) are pledged with a bank against guarantees availed from the said bank.

1.25 (a) The financial statements have been prepared as per revised Schedule VI to the Companies Act, 1956.

(b) Previous year's figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures

(c) Figures in brackets relate to previous year.


Mar 31, 2011

1.1 (a) Fixed Deposit with bank amounting to Rs.1.37 lakhs (Rs. 2.12 lakhs) are lodged with certain authorities as security.

(b) Conveyance deeds of certain land costing Rs. 1,733.57 lakhs (Rs. 1,770.94 lakhs) and buildings, with written down value of Rs. 1,672.90 lakhs (Rs. 1,461.51 lakhs) are pending registration / mutation.

(c) Certain buildings & sidings with written down value of Rs. 4,237.88 lakhs (Rs. 4,173.24 lakhs) are situated on leasehold/ rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for finalising the agreements with Kolkata Port Trust for renewal of such pending cases.

1.2 Contingent Liabilities as at 31st March, 2011 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service Tax amounting to Rs. 6,952.14 lakhs (Rs. 6,498.63 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2011 are given in Annexure – A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 710.47 lakhs (Rs. 721.76 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex- employees related disputes financial effect is ascertainable on settlement

(c) Bills discounted with banks Rs. 108.85 Lakhs (Rs. 75.77 Lakhs).

1.3 Counter guarantees given to Standard Chartered Bank, Bank of Baroda, HSBC, State Bank of India and Indusind Bank in respect of guarantees given by them amounts to Rs. 9,493.19 lakhs (Rs. 3,578.24 lakhs).

1.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [ net of advances paid – Rs. 195.92 lakhs (2009-10 Rs. 55.41 lakhs)] amounted to Rs. 1,405.25 lakhs (Rs. 1,562.90 lakhs).

1.5 The amount of exchange difference credited to Profit & Loss account is Rs. 41.79 lakhs (Rs. 238.35 lakhs).

1.6 Confirmation letters have been issued in respect of debts, loans and advances and deposits of the company but not responded to in many cases. Hence unconfirmed balances are subject to reconciliation and consequent adjustments, if any, would be determined / made on receipt of such confirmation.

1.7 Particulars in respect of goods manufactured:

1.7 (a) Capacity and Production:

(i) Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued there under, no licensing is required for the Company's products.

(ii) Installed Capacities are as certified by the Management.

1.8 Research and Development expenditure charged to Profit & Loss Account during the year 2010-11 amounts to Rs. 352.22 lakhs (Rs. 323.62 lakhs).

1.9 Excess Income Tax provision in respect of four earlier years amounting to Rs. Nil lakhs (Rs. 1,976.30 Lakhs) has been set- off with the current year's provision.

1.10 A major irregularity in the accounts of Transafe Services Limited (TSL), a joint venture company promoted by the Company in 1991, was detected during the financial year 2009-10 leading to its accounts for the year 2009-10 showing substantial loss after incorporation of rectification entries. TSL is operating primarily in the Logistics sector, where the long term prospects are bright. However, the Company, following the policy of conservative accounting, had during the year 2009-10 provided Rs. 1165.12 lakhs, being the full value of investments in equity share capital of TSL in terms of Accounting Standard - 13 "Accounting for Investments" towards diminution in value. During the year 2010- 11, a Corporate Debt Restructuring Scheme (CDR) for TSL was approved by its bankers, pursuant to which, the Company has invested Rs. 1330 lakhs (comprising conversion of loan of Rs. 730 lakhs given in earlier years and fresh infusion of Rs. 600 Lakhs in Preference Shares) in 1.33 crores Cumulative Redeemable Preference Shares of Rs. 10 each of TSL.

1.11 Operations at the Lube Blending Plant at Taloja remain suspended since 2006-07 due to unremunerative orders.

1.12 The amount of Excise duty deducted from the amount of "Sales - Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Schedule 12 - "General Expenditure" is related to the difference between the closing stock and the opening stock.

1.13 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity, Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

1.14 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company do not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 14.22 below.

1.15 Related Party Disclosure

i) Name of Related Party Nature of Relationship

Balmer Lawrie Investments Ltd. Holding Company

Balmer Lawrie (U.K.) Ltd. Wholly owned Subsidiary

Transafe Services Ltd. Joint Venture

Balmer Lawrie - Van Leer Ltd. Joint Venture

Balmer Lawrie (UAE) Llc. Joint Venture

Avi - Oil India (P) Ltd. Joint Venture

Proseal Closures Ltd. Subsidiary of Balmer Lawrie Van Leer Ltd.

PT Balmer Lawrie Indonesia Joint Venture of Balmer Lawrie (UK) Ltd. (w.e.f. 15-02-2010)

Shri S K Mukherjee, Managing Director Key Management Personnel

Shri P Radhakrishnan, Director (Services Businesses) Key Management Personnel ( Till 31-12-2009 )

Shri V N Sharma, Director (Manufacturing Businesses) Key Management Personnel

Shri K Subramanyan, Director(Finance) Key Management Personnel

Shri V Sinha, Director (Services Businesses) Key Management Personnel ( w.e.f. 14-06-2010 )

1.16 Segment Reporting

Information about business segment for the year ended 31st March, 2011 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as Annexure - C.

1.17 Earnings per Share

(i) Earnings per share of the company has been calculated considering the Profit after Taxation of Rs. 12,108.85 lakhs (Rs. 11,729.20 lakhs) as the numerator.

(ii The weighted average number of equity shares used as denominator is 1,62,86,081 ( 1,62,86,081 ) and face value per share is Rs. 10.

(iii) The nominal value of shares is Rs. 1,628.61 lakhs ( Rs. 1,628.61 lakhs ) and the earnings per share (Basic and Diluted ) for the year on the above mentioned basis comes to Rs. 74.35 ( Rs. 72.02)

The Company's proportionate share of the estimated amount of contracts remaining to be executed on Capital Accounts relating to the Joint Venture Companies and not provided for in their respective financial statements amounts to Rs. 134.88 lakhs (Rs. 220.02 lakhs).

The aggregate amounts of each of the assets, liabilities, income and expenses related to the interests in the Joint Venture companies are as follows :-

Assets – Rs. 39,315 lakhs (Rs. 40,682 lakhs)

Liabilities – Rs. 30,029 lakhs (Rs. 31,264 lakhs)

Income – Rs. 35,998 lakhs (Rs. 37,060 lakhs)

Expense – Rs. 35,287 lakhs (Rs. 37,129 lakhs )

1.18 Miscellaneous Expenses shown under "General Expenditure" (Schedule 12) do not include any item of expenditure which exceeds 1% of the total revenue.

1.19 (a) Previous year's figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures.

(b) Figures in brackets relate to previous year.


Mar 31, 2010

1.1 (a) Fixed Deposit with bank amounting to Rs. 2.12 lakhs (Rs. 2.12 lakhs) are lodged with certain authorities as security.

(b) Conveyance deeds of certain land costing Rs.1,770.94 lakhs (Rs. 1,807.80 lakhs) and buildings, with written down value of Rs. 113.94 lakhs (Rs. 117.13 lakhs) are pending registration / mutation.

(c) Certain buildings & sidings with written down value of Rs. 4,173.24 lakhs (Rs.4,157.90 lakhs) are situated on leasehold/rented land. Some of the leases with Kolkata Port trust have expired and are under renewal. Action has been taken for finalizing the agreements with Kolkata Port Trust for renewal of such pending cases.

1.2 Contingent Liabilities as at 31st March, 2010 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service Tax amounting to Rs. 7,037.98 lakhs (Rs. 6,101.52 lakhs) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2010 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to Rs. 721.76 lakhs (Rs. 697.48 lakhs) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ ex-employees related disputes financial effect is ascertainable on settlement.

(c) Bills discounted with banks Rs. 75.77 Lakhs (Rs. Nil Lakhs).

1.3 Counter guarantees given to Standard Chartered Bank , Bank of Baroda , HSBC , State Bank of India and Indusind Bank in respect of guarantees given by them amounts to Rs. 3,578.24 lakhs (Rs. 4,290.27 lakhs).

1.4 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for [ net of advances paid - Rs. 55.41 lakhs (2008-09 Rs. 48.12 lakhs )] amounted to Rs. 1,513.33 lakhs (Rs. 1,564.85 lakhs).

1.5 The amount of exchange difference credited to Profit & Loss account is Rs. 238.35 lakhs ( Rs. (-) 471.01 lakhs).

1.6 Confirmation letters have been issued in respect of debts , loans and advances and deposits of the company but not responded to in many cases. Hence unconfirmed balances are subject to reconciliation and consequent adjustments , if any, would be determined / made on receipt of such confirmation.

1.7 Research and Development expenditure charged to Profit & Loss Account during the year 2009-10 amounts to Rs. 323.62 lakhs ( Rs. 271.45 lakhs).

1.8 Excess Income Tax provision in respect of four earlier years amounting to Rs. 1976.30 lakhs ( Rs. Nil Lakhs ) has been set-off with the current years provision.

1.9 A major irregularity in the accounts of Transafe Services Limited (TSL), a joint venture company promoted by the Company in 1991, was detected leading to its accounts for the year 2009-10 showing substantial loss after incorporation of rectification entries. TSL is operating primarily in the Logistics sector, where the long term prospects are bright. However, the Company , following the policy of conservative accounting, has during the year provided Rs. 1165.12 lakhs, being the full value of investments in TSL in terms of Accounting Standard - 13 "Accounting for Investments" towards diminution in value.

1.10 Operations at the Lube Blending Plant at Taloja remain suspended since 2006-07 due to unremunerative orders.

1.11 The amount of Excise duty deducted from the amount of "Sales - Manufactured Goods" is relatable to Sales made during the period and the amount of Excise Duty recognised separately in Schedule 12 - "General Expenditure" is related to the difference between the closing stock and the opening stock.

1.2 Employee Benefits

Consequent to Accounting Standard 15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants of India being applicable to the Company during the year, the prescribed disclosures are made in Annexure B.

Defined Benefit Plans / Long Term Employee benefits in respect of Gratuity , Leave Encashment and Long Service Awards are recognised in the Profit & Loss Account on the basis of Actuarial valuation done at the year end. The details of such employee benefits as recognised in the financial statements are attached as Annexure B.

1.3 Loans and Advances in the nature of loans to Subsidiary / Joint Ventures / Associates

The company do not have any Loans and Advances in the nature of Loans provided to its Subsidiary / Joint Venture Companies / Associates as at the year end except as is disclosed in 14.22 below.

1.4 Related Party Disclosure

i) Name of Related Party Nature of Relationship

Balmer Lawrie Investments Ltd. Holding Company

Balmer Lawrie (U.K.) Ltd. Wholly owned Subsidiary

Transafe Services Ltd Joint Venture

Balmer Lawrie - Van Leer Ltd. Joint Venture

Balmer Lawrie (UAE) Llc. Joint Venture

Avi - Oil India (P) Ltd. Joint Venture

Proseal Closures Ltd. Subsidiary of Balmer Lawrie Van Leer Ltd.

PT Imani Ganda Utama Joint Venture of Balmer Lawrie (UK) Ltd. ( w.e.f. 15-02-2010)

Shri S K Mukherjee, Managing Director Key Management Personnel

Shri P Radhakrishnan, Director (Services Businesses) Key Management Personnel ( Till 31-12-2009 )

Shri V N Sharma, Director (Manufacturing Businesses) Key Management Personnel

Shri K Subramanyan, Director(Finance) Key Management Personnel

1.5 Segment Reporting

Information about business segment for the year ended 31st March, 2010 in respect of reportable segments as defined by the Institute of Chartered Accountants of India in the Accounting Standard - 17 in respect of "Segment Reporting" is attached as Annexure - C.

1.6 Earnings per Share

(i) Earnings per share of the company has been calculated considering the Profit after Taxation of Rs.11,729.20 lakhs (Rs.10,161.37 lakhs) as the numerator.

(ii) The weighted average number of equity shares used as denominator is 1,62,86,081 ( 1,62,86,081 ) and face value per share is Rs. 10.

(iii) The nominal value of shares is Rs.1,628.61 lakhs ( Rs. 1,628.61 lakhs ) and the earnings per share (Basic and Diluted ) for the year on the above mentioned basis comes to Rs. 72.02 (Rs. 62.39)

1.7 Miscellaneous Expenses shown under “General Expenditure” (Schedule 12) do not include any item of expenditure which exceeds 1% of the total revenue.

1.8 (a) Previous years figures have been re-grouped or re-arranged wherever so required to make them comparable with current year figures

(b) Figures in brackets relate to previous year.

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