Notes to Accounts of BLB Ltd.

Mar 31, 2018

1 First-Time Adoption of Ind AS

Ind AS 101 First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS, effective for April 1, 2016 opening balance sheet, as explained below :

1.1 Exemptions Availed on First-Time Adoption of Ind AS 101

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions.

a. Deemed Cost - Property, Plant and Equipment (Including Capital Work in Progress)

Ind AS 101 allows a first-time adopter to elect measurement at fair value for all of its property, plant and equipment to be recognised in the financial statements as at the date of transition to Ind AS, and use that as its deemed cost as at the date of transition.

b. Deemed Cost - Investment in Subsidiary

Under previous GAAP, investment in subsidiaries were stated at cost. Under Ind AS, the company has considered their previous GAAP carrying amount as their deemed cost.

The Company has elected to apply this exemption for such contracts/arrangements.

1.2. Reconciliations Between Previous GAAP and Ind AS

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

Note 1: Property, Plant and Equipment (including Capital Work in Progress)

The Company has elected to measure items of its property, plant and equipment and intangible assets at fair value as deemed cost except for certain class of assets which are measured at its carrying value upon transition. The resulting fair value changes have been recognised in retained earnings as at the date of transition. This increased the retained earnings by INR 558.93 Lacs as at 1 April 2016.

Further, under previous GAAP the Company has followed written down value method of depreciation and upon transition the Company has applied straight line method of depreciation. Due to the election to measure major property, plant and equipment at fair value and change in depreciation method, it has consequently increased depreciation expense by INR 6.23 Lacs for the year ended 31 March 2017. This has decreased total comprehensive income by INR 6.23 Lacs.

Consequent to the above, the total equity as at 31 March 2017 increased by INR 552.70 Lacs.

Note 2: Intangible Assets

Under previous GAAP the Company has followed written down value method of depreciation and upon transition the Company has applied straight line method of depreciation. Due to the change in the depreciation method, it has consequently increased its residual value for the year ended 31 March 2017 by INR 0.34 Lacs. This has increased total comprehensive income by INR 0.34 Lacs for the year ended 31 March 2017.

Note 3: Fair valuation of Non- Current Investments

Under previous GAAP the Company carried the long-term investments at cost less provision for diminution in value other than temporary, if any in the value of such investments. and upon transition the Company has subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in retained earnings or in other comprehensive income as the case may be. This has consequently decreased the retained earnings by INR 462.37 lacs as at the date of transition on 1 April 2016 .

Consequent to the above, the Other Comprehensive Income has increased by INR 0.27 lacs for the year ended 31 March 2017.

Note 4: Deferred Tax Assets (Net)

Deferred tax has been recognised on the adjustments made on transition to Ind AS. The impact of transition adjustments has resulted for recomputation of deferred taxes in the retained earnings, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

MAT entitlement credit being of the nature of deferred tax, on transition to Ind AS MAT credit entitlement of INR 1.32 lacs for March 31, 2017 has been regrouped under deferred tax liability from Current tax assets (net).

Note 5: Fair valuation of Financial Assets

Under previous GAAP, the Company has recognised membership fees paid to various stock exchanges and Pre-amalgamation expenses as deferred revenue expenditure and amortise over a period of five years whereas such cost are not recognised under Ind AS. And accordingly the same have been recognised in retained earnings as at the date of transition. This has consequently decreased the retained earnings by INR 5.59 lacs on the transition date.

Under previous GAAP, the Company carried Advances given to parties for purchase of properties at cost and under Ind AS, upon transition, the Company has considered the diminution in the market value of the said property. Accordingly, Advances for Capital goods have been reduced by INR 65 lacs with a corresponding adjustment to retained earnings on the date of transition. Consequent to the above, the Comprehensive Income has increased increased by INR 5.59 lacs for the year ended 31 March 2017.

Note 6: Retained Earnings

Retained earnings as at 1 April 2016 and 31 March 2017 has been adjusted consequent to the above Ind AS transition adjustment.

The investment of 200,000 shares in Midvalley Entertainment Ltd. was made by the company with an amount of INR 150 Lacs and as at 1 April 2016, a provision for impairment of INR 150.00 Lacs has been made and the net investment has been recognised at a carrying amount of INR 1/The Board of Directors of the Company and four subsidiaries namely BLB Commodities Ltd, BLB Global Business Ltd, Caprise Commodities Ltd and Sri Sharadamba Properties Ltd approved the Composite Scheme of Arrangement for amalgamation with the Company and subsequent demerger of ‘Commodities Trading Division’ and ‘ Financial Services Division’ of merged entity into two newly incorporated wholly owned subsidiaries i.e. Sakala Commodities Ltd and Samagra Capital Ltd. The Company subscribed 7 equity shares of Rs.10/- each aggregating to Rs.70/- in each of these two subsidiaries. Later on the Board of Directors of Company and four subsidiaries mentioned above decided to withdraw the Composite Scheme of Arrangement. Accordingly, the shareholders of Sakala Commodities Ltd. and Samagra Capital Ltd. in their respective meetings decided to get their names struck off in the records of Registrar of Companies, NCT of Delhi and Haryana (ROC). However the application made for the same is still pending with the ROC.

Since these two companies were formed and applied for striking off their names with ROC in the same financial year 201718 without undertaking any business, the investment of Rs.140/- in said subsidiaries was written off alongwith expenses of Rs.18,999/- incurred on incorpoaration of these companies.

During the year company has received 60,000 equity shares of Indian Oil Corporation Ltd. on stock-in-hand as bonus shares. The same has been retained by company as Short-term investment at nil value. Subsequently, the Company has measured the same at fair value, with unrealised gain arising from changes in the fair value and recognised in comprehensive income. ( Note No. 23)

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price and are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level3.

2.1 Valuation Technique used to determine Fair Value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices

2.2 Fair value of Financial Assets and Liabilities measured at Amortised Cost

The carrying amounts of financial assets comprising trade receivables cash and cash equivalents, fixed deposits with banks, security and other deposits and carrying value of financial liabilities comprising borrowings and trade and other payables are considered to be the same as their fair values, due to their short-term nature and covered under level 3 category.

3 Financial Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures and price risk exposures.

This note explains the sources of risk which the Company is exposed to and how such risk were managed.

The Company’s risk management is carried out by a central treasury department under policies approved by the board of directors. The Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, Securities price risk, credit risk, use of derivative financial instruments and nonderivative financial instruments, and investment of excess liquidity.

3.1 Credit Risk Management

The risk of financial loss due to counterparty’s failure to honour its obligations arises principally in relation to transactions where the Company provides goods on deferred terms.

The Company’s policies are aimed at minimising such losses, and require that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures are monitored with customers subject to credit limits to ensure that the Company’s exposure to bad debts is not significant. The maximum exposure to credit risk regarding financial assets is the carrying amount as disclosed in the balance sheet. With respect to credit risk arising from all other financial assets of the Company, the Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the corresponding carrying amount of these instruments.

On account of the adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as historical experience for customers. The Company’s receivable are high quality with negligible credit risk and the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Accordingly, no provision for expected credit loss is recognised.

The following table provides information about the exposure to credit risk for trade receivables from individual customers.

3.2 Liquidity Risk Management

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 and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. In addition, the Company’s liquidity management policy involves monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Maturities of Financial Liabilities

The table below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

- all non-derivative financial liabilities, and

- net settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

3.3 Market Risk Management Interest Rate Risk

The Company’s main risk i.e. interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2017 and 31 March 2016, the Company’s borrowings at variable rate were mainly denominated in INR.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The long term variable interest rate borrowings are not significant and accordingly, no such sensitivity for interest rate cash flow has been disclosed.

Price Risk

The Company’s significant exposure for price risk is relating to forward contracts. However, no open forward contract is outstanding as on the reporting date and accordingly, doesn’t have related price risk.

4 Capital Management

4.1 Risk Management

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company issue new shares. Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total borrowings net of cash and cash equivalents) divided by Total ‘equity’ (as shown in the balance sheet.

4.2 Loan Covenants

The Company has complied with all loan covenants required under borrowing facilities.

5 Interest in Other Entities - Subsidiaries

The details of Company’s subsidiaries at 31 March 2018 are set out below. They have share capital consisting solely of equity shares that are held directly by the Company, and the proportion of ownership interests held equals the voting rights held by the Company. The country of incorporation is also their principal place of business.

6 Related Party Transactions

6.1 Controlling Shareholders

The Company is controlled by Sh.Brij Rattan Bagri owning 61.12% of Equity Share Capital as on 31 March 2018 (61.12% - 31 March 2017, 61.12% - 1 April 2016)

Subsidiaries

Interests in subsidiaries are set out in Note No. 33.

Key Management Personnel and Their Relatives

Name of key management personnel, their relatives and entities over which they have control or significant influence with whom transaction were entered during the year or balance was outstanding at the balance sheet date are as follows: Key Management Personnel and Relatives:

Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Malati Bagri (Wife),

Ms. Nanditaa Bagri (Daughter), Sh. Siddharth Bagri (Son)

Sh. Vikram Rathi (Executive Director)

Sh. Vikash Rawal (Chief Financial Officer)

Ms. Abha Garg (Company Secretary) (w.e.f 17/08/2016)

Ms. Swati Sharma (Company Secretary) (upto 13/08/2016)

Enterprises where Key Managerial Personnel along with their relatives exercise Significant Influence:

1) Manu Properties Pvt. Limited

2) BLB Limited Employees Group Gratuity Trust

6.3 Transaction with Related Parties

The details of the related-party transactions entered into by the Company for the years ended 31st March 2018 and 31st March 2017 are as follows:

6.4 Collateral and Personal Guarantee by Related Parties

The Key Management Personnel along with their relatives and entities over which they have significant influence has also given collateral security and personal guarantee for the borrowings obtained by Company are as follows:

7 During the year under review, the Board of Directors of the Company in their meeting held on 25.10.2017 have decided to withdraw Composite Scheme of Arrangement involving Amalgamation of four wholly owned subsidiaries namely, BLB Commodities Limited, BLB Global Business Limited, Caprise Commodities Limited and Sri Sharadamba Properties Limited with the Company and subsequent Demerger of ‘Commodities Trading Division’ and ‘Financial Service Division’ of BLB Limited i.e. to Sakala Commodities Limited and Samagra Capital Limited respectively.

7.1 The Board of Directors in their meeting held on 14th December, 2017 had adopted the Scheme of Arrangement involving Amalgamation of its four wholly owned subsidiaries namely, BLB Commodities Limited, BLB Global Business Limited, Caprise Commodities Limited and Sri Sharadamba Properties Limited with the Company.

The State Government of Delhi has levied stamp duty through Indian Stamp (Delhi Amendment) Act, 2010 w.e.f 01/06/2010 on securities business carried by the company on proprietary basis. The constitutional validity of the said levy is under challenge in Delhi High Court through a writ petition filled by an association of brokers wherein the company is a member and the matter is subjudice. The liability on account of levy of stamp duty for the period 01/06/2010 to 30/09/2013 works out to Rs.104.80 Lacs (without interest) for which no provision has been made.

7.2 Non-cancellable Operating Leases

The operating leases entered by the Company are cancellable on serving a notice of one to three months and accordingly, there are no non-cancellable operating leases required commitments for operating lease payments.

8 Legal and Professional charges include Rs.0.08 Lacs paid as professional fees for income tax matters to a Director of the Company. (Previous year : Rs.1.25 Lacs)

9 The Company has not received any intimation from ‘Suppliers’ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

10 Loans and advances in the nature of Loans (As required by Clause 34(1) of the Listing Regulation with the stock exchanges):

a. Loans and Advances in the nature of Loans to Subsidiaries for business activities

11 Earnings Per Share

The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstanding for the purposes of calculation of basic earnings per share as well as diluted earnings per share are as follows:

12 Segment Reporting

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolve around the main business. As such thee are no separate reportable segments as per Ind AS-109 “Operating Segment” notified by the Central Government under the Companies (Accounting Standard) Rules 2016.

13 Events Occurring after the Reporting Period

There have been no material events other than disclosed in the financial statements after reporting date which would require disclosure or adjustments to the financial statements as of and for the year ended 31st March 2018.

---

Mar 31, 2016

1 No provision for diminution in the value of investments to the extent of Rs. 441.83 Lacs (Previous year - Rs. 416.23 Lacs) has been made as the same is considered to be temporary in nature. [Refer Note No. 2(j)(ii)]

2. The trading in shares of Midvalley Entertainment Limited has been suspended by the BSE Limited since 10/07/2012 due to some penal reasons. The market value of the said shares have been adopted on the basis of last available market quotation.

3. During the year, the company has floated a wholly owned subsidiary namely Caprise Commodities Limited and has made an investment in 15 lacs equity shares of Rs. 10/- each at par of the said company.

4. The Board of Directors has approved the scheme of amalgamation of Manu Properties Private Limited with the company in their meeting held on 07/11/2015. The company has incurred certain professional expenses and has shown under the pre-amalgamation expenses as it has applied to various Stock Exchanges for necessary prior approval.

5. Rs. 876.90 Lacs given to The Calcutta Stock Exchange Association Limited to tide over the payment crisis, which erupted in March 2001. A suit for recovery was filled with the Hon''ble Delhi High Court and has been taken up for hearing. The management is confident of recovery thereof (Previous year: Rs. 876.90 Lacs).

6. The company has initiated legal proceedings against two parties for the recovery of Rs. 7.35 Lacs in the Court of law and the management is confident of recovery thereof (Previous year: Rs. 7.35 Lacs).

The Bank Fixed Deposits taken by the Company have been partly pledged as follows:

7. Rs. 591.25 Lacs with various Stock Exchanges towards Capital adequacy deposits/margins (Previous year Rs. 82.50 Lacs). Rs. 1778.75 Lacs with Banks against various facilities provided by them. (Previous year Rs. 1328.75 Lacs).

8. Rs. 57.50 Lacs with various Stock Exchanges towards Capital adequacy deposits/margins (Previous year Rs. 76.25 Lacs). Rs. 1.25 Lacs with Banks against various facilities provided by them. (Previous year Rs. 251.25 Lacs).

9. SEGMENT ACCOUNTING

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per Accounting Standard - 17 “Segment Reporting” notified by the Central Government under the Companies (Accounting Standard) Rules 2006.

10. OPERATING LEASES

Since the existing operating lease entered into by the company is cancelable on serving a notice of one to three months, as such there is no information required to be furnished as per AS-19.

11 RELATED PARTY DISCLOSURE I) List of Related Parties

12. Key Management Personnel & Relatives

13. Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Malati Bagri (Wife)*,

Ms. Nanditaa Bagri (Daughter), Sh. Siddharth Bagri (Son)*

14. Sh. Vikram Rathi (Executive Director)

15. Sh. Vikash Rawal (Chief Financial Officer)

16. Ms. Arpita Banerjee (Company Secretary) up to 20/09/2015

17. Ms. Swati Sharma (Company Secretary) w.e.f 28/09/2015

18. Wholly Owned Subsidiary Enterprises

19. Sri Chaturbhuj Properties Limited*

20 BLB Commodities Limited

21. Sri Sharadamba Properties Limited

22. BLB Global Business Limited

23. Caprise Commodities Limited w.e.f 19/12/2015

24. Step Down Overseas Subsidiary

BLB Singapore Ventures Pte Ltd, Singapore, wholly owned overseas Subsidiary of BLB Global Business Limited

Note: The name of the Wholly Owned Subsidiary BLB Singapore Ventures Pte Ltd, Singapore was struck off upon the completion of its winding up process.

25. Enterprise where principal shareholder has control of significant influence (significant interest entities)

26. Manu Properties Pvt. Limited*[Refer Note No. 14(i)]

*During the year, the Company did not enter into any transaction with such parties.

27. Legal and Professional charges include Rs. 123,100/- paid as professional fees for income tax matters to an Independent Director of the Company. (Previous year : Rs. 211,000/-)

28. The Company has not received any intimation from ''Suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been given.

29. Borrowers have made no investments in shares of the Company

30. In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

31. Previous year''s figures have been regrouped and/ or rearranged wherever necessary to conform to this year''s classification.

---

Mar 31, 2015

1) During the year, the Deferred Tax Asset has been reversed as the benefit of set-off of business losses lapsed due to expiry of time limit available as per the provisions of the Income Tax Act, 1961. Since the credit of Deferred Tax Asset was accumulated with Retained Earnings as such the same has been reversed there-from. [Refer Note No. 12(i)]

2) Additional Information:

(i) No provision for diminution in the value of investments to the extent of Rs. 416.23 Lacs (Previous year - Rs. 435.63 Lacs) has been made as the same is considered to be temporary in nature. [Refer Note No. 2(j)(ii)]

(ii) The trading in shares of Midvalley Entertainment Limited has been suspended by the BSE Limited since 10/07/2012 due to some penal reasons. The market value of the said shares have been adopted on the basis of last available market quotation.

Additional Information :

i) Rs. 876.90 Lacs given to The Calcutta Stock Exchange Association Limited to tide over the payment crisis, which erupted in March 2001. A suit for recovery is pending with the Hon'ble Delhi High Court and the management is confident of recovery thereof (Previous year: Rs. 876.90 Lacs).

ii) Rs. 7.35 Lacs due from various parties are under arbitration proceedings and the management is confident of recovery thereof (Previous year: Rs. 7.35 Lacs).

3) CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

PARTICULARS 2014-15 2013-14 Rs. in Lacs Rs. in Lacs a) Contingent liabilities

i) Claims not acknowledged by the company

Reliefs granted by various 1267.54 1267.54 appellate authorities but not accepted by the income tax authorities in various cases involving Income tax liabilities

Stamp duty levied by State 104.80 104.80 Govt. of Delhi*

Service Tax on legal services 4.82 2.74 of Advocates or Advocate firms under Reverse Charge.

ii) Guarantees

Outstanding guarantees to various 2410.00 1210.00 banks, in respect of the guarantees given by those banks in favour of stock exchanges and others

Counter Guarantees given by 8115.00 6,600.00 the company jointly with its Director(s) to the banks on behalf of its Subsidiaries.

b) Capital Commitments (net of advances) Estimated amount of contracts 939.08 2,091.59 remaining to be executed on capital account

* The State Government of Delhi has levied stamp duty through Indian Stamp (Delhi Amendment) Act, 2010 w.e.f 01/06/2010 on securities business carried by the company on proprietary basis. The constitutional validity of the said levy is under challenge in Delhi High Court through a writ petition filled by an association of brokers wherein the company is a member and the matter is subjudice. The liability on account of levy of stamp duty for the period 01/06/2010 to 30/09/2013 works out to Rs. 104.80 Lacs (without interest) for which no provision has been made.

4) SEGMENT ACCOUNTING

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per Accounting Standard - 17 "Segment Reporting" notified by the Central Government under the Companies (Accounting Standard) Rules 2006.

5) OPERATING LEASES

Since the existing operating lease entered into by the company is cancelable on serving a notice of one to three months, as such there is no information required to be furnished as per AS-19.

6) RELATED PARTY DISCLOSURE

I) List of Related Parties

a) Key Management Personnel & Relatives

1) Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Malati Bagri (Wife)*, Ms. Nanditaa Bagri (Daughter), Sh. Siddharth Bagri (Son)*

2) Sh. Vikram Rathi (Executive Director)

3) Sh. Satish Kumar Sharma (Executive Director Upto 13/08/2014)

4) Sh. Vikash Rawal (Chief Financial Officer)

5) Ms. Arpita Banerjee (Company Secretary)

b) Wholly Owned Subsidiary Enterprises

1) Sri Chaturbhuj Properties Limited*

2) BLB Commodities Limited

3) Sri Sharadamba Properties Limited

4) BLB Global Business Limited

Wholly Owned Subsidiaries of BLB Global Business Limited *

i) BLB Singapore Ventures Pte Ltd, Singapore. (under the Process of winding up)

c) Enterprise where principal shareholder has control of significant influence (significant interest entities)

1) Manu Properties Pvt. Limited*

* During the year, the Company did not enter into any transaction with such parties.

7) Legal and Professional charges include Rs. 211,000/- paid as professional fees for income tax matters to an Independent Director of the Company. (Previous year : Rs. 171,500/-)

8) The Company has not received any intimation from 'Suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

38) In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

9) Previous year's figures have been regrouped and/ or rearranged wherever necessary to conform to this year's classification.

---

Mar 31, 2014

1. CORPORATE INFORMATION

BLB Limited is a Public Company duly incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed at NSE and BSE. The Company is a corporate member of NSE, BSE and MCX-SX and is primarily engaged in the business of trading in shares & securities.

2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

PARTICULARS 2013-14 2012-13 Rs. in Lacs Rs. in Lacs

a) Contingent liabilities

i) Claims not acknowledged by the company

Disputed Income Tax liabilities - 6.06

Stamp duty levied by State Govt. of Delhi* 104.80 91.77

Service Tax on legal services of advocates 2.74 1.77 or Advocate firms under on Reverse Charge.

ii) Guarantees

Outstanding guarantees to various banks, in respect 1210.00 860.00 of the guarantees given by those banks in favour of stock exchanges and others

Counter Guarantees given by company jointly with two of 6,600.00 6,400.00 its Directors to the banks on behalf of its Subsidiaries

b) Capital Commitments (net of advances)

Estimated amount of contracts remaining to 2,091.59 2,717.38 be executed on capital account

* The State Government of Delhi has levied stamp duty through Indian Stamp (Delhi Amendment) Act, 2010 w.e.f 01/06/2010 on securities business carried by the company on proprietary basis. During that year, the constitutional validity of the said levy has been challenged in Delhi High court through a writ petition filled by an association of brokers wherein the company is a member and the matter is subjudice.

3. SEGMENT ACCOUNTING

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per Accounting Standard - 17 "Segment Reporting" notified by the Central Government under the Companies (Accounting Standard) Rules 2006.

4. OPERATING LEASES

Since the existing operating lease entered into by the company is cancelable on serving a notice of one to three months, as such there is no information required to be furnished as per AS-19.

5. RELATED PARTY DISCLOSURE I) List of Related Parties

a) Key Management Personnel & Relatives

1) Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Malati Bagri (Wife), Ms. Nanditaa Bagri (Daughter), Sh. Siddharth Bagri (Son)

2) Sh. Vikram Rathi (Executive Director)

3) Sh. Satish Kumar Sharma (Executive Director) Relative: Sh. Arun Kumar Sharma (Brother)*, Sh. D.K. Sharma (Brother)

b) Wholly Owned Subsidiary Enterprises

1) BLB Institute of Financial Markets Limited (Amalgamated with BLB Global Business Limited)

2) Sri Chaturbhuj Properties Limited*

3) BLB Commodities Limited

4) Sri Shardamba Properties Limited

5) BLB Global Business Limited

Wholly Owned Subsidiaries of BLB Global Business Limited (India)*

i) BLB Business Ventures DMCC, Dubai (wound up during the year) ii) BLB Singapore Ventures Pte Ltd, Singapore.

c) Associate Enterprises

1) Manu Properties Pvt. Limited* * During the year, the company did not enter into any transaction with such parties.

6. Legal and Professional charges include Rs. 171,500/- paid as professional fees for income tax matters to an Independent Director of the Company. (Previous year : Rs. 296,500/-)

7. The Company has not received any intimation from ''Suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

8. In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

9. Previous year''s figures have been regrouped and/ or rearranged wherever necessary to conform to this year''s classification.

---

Mar 31, 2013

1. CORPORATE INFORMATION

BLB Limited is a Public Company duly incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed at NSE and BSE. The Company is a corporate member of NSE, BSE, MCX-SX and USE and is primarily engaged in the business of trading in shares & securities.

2. SEGMENT ACCOUNTING

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolve around the main business. As such there are no separate reportable segments as per Accounting Standard - 17 "Segment Reporting" notified by the Central Government under the Companies (Accounting Standard) Rules 2006.

3. OPERATING LEASES

Since the existing operating lease entered into by the company is cancelable on serving a notice of one to three months, as such there is no information required to be furnished as per AS-19.

4. RELATED PARTY DISCLOSURE I) List of Related Parties

a) Key Management Personnel & Relatives

1) Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Malti Bagri (Wife), Ms. Nanditaa Bagri (Daughter), Sh. Siddharth Bagri (Son)

2) Sh. Vikram Rathi (Executive Director)

3) Sh. Satish Kumar Sharma (Executive Director) Relatives: Sh. D.K. Sharma (Brother)*, Sh. Arun Kumar Sharma (Brother).

b) Wholly Owned Subsidiary Enterprises

1) BLB Global Business Limited (Mauritius)*

2) BLB Institute of Financial Markets Limited

3) Sri Chaturbhuj Properties Limited

4) BLB Commodities Limited

5) Sri Shardamba Properties Limited

6) BLB Global Business Limited (India)

7) Wholly Owned Subsidiaries of BLB Global Business Limited (India)*

i) BLB Business Ventures DMCC, Dubai

ii) BLB Singapore Ventures Pte Ltd, Singapore.

c) Associate Enterprises

1) Manu Properties Pvt. Limited* *During the year, the company did not enter into any transaction with such parties.

5. Legal and Professional charges include Rs. 296,500/- paid for income tax matters to a non executive director of the Company. (Previous year : Rs. 446,000/-)

6. The Company has not received any intimation from ''Suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

7. During the year, in line with the AS 30, 31 and 32 which are presently recommendatory in nature, the Company has measured / valued the derivatives at fair value and the corresponding mark to market margin for such instruments has been debited / credited to the statement of profit and loss account. Earlier for the hedged items the Company used to value the Stock in Trade at lower of cost or market value and the negative impact of Mark to Market margin in case of increase in the value of stock in trade was reversed from the Statement of Profit and Loss. In respect of un-hedged items, the net gain/loss was accounted for in the Statement of Profit and Loss on the basis of recommendations given by ICAI. The Management believes that such change will result in better presentation of the financial statements in line with global practices. The profit for the financial year under consideration has been increased by Rs. 2.76 Lacs on account of change in the method of valuation of stock in trade and treatment of negative Mark to Market margin for the hedged instruments.

8. In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

9. Previous year''s figures have been regrouped and/ or rearranged wherever necessary to conform to this year''s classification.

---

Mar 31, 2012

1) Corporate Information

BLB Limited is a Public Company and incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed at NSE and BSE. The Company is a corporate member of NSE, BSE, MCX-SX and USE and is primarily engaged in the business of trading in shares & securities.

Additional Information :

2(i) During the year Singhal Agro Industries Limited was merged with Sharp Corp Limited under the scheme of merger vide order passed by the Hon'ble Delhi High Court 09th August 2011. As a result the company has received 88000 equity shares of Sharp Corp Limited for 80000 equity shares of Singhal Agro Industries Limited as on date of merger.

2(ii) No provision for diminution in the value of investments to the extent of Rs. 298.43 Lacs (Previous year - Nil) has been made as the same is considered to be temporary in nature. [Refer Note No. 2(j)(ii)]

Additional Information :

i) Rs. 876.90 Lacs given to The Calcutta Stock Exchange Association Limited to tide over the payment crisis, which erupted in March 2001. A suit for recovery is pending with the Hon'ble Delhi High Court and the management is confident of recovery thereof (Previous year: Rs. 876.90 Lacs).

ii) Rs. 8.29 Lacs due from various parties are under arbitration proceedings and the management is confident of recovery thereof (Previous year: Rs. 8.29 Lacs).

Additional Information :

i) Balances with Banks include unclaimed Dividend of Rs. 21,76,041/- (previous year Rs. 20,17,192/-)

ii) (a) Fixed deposits with banks include deposits of Rs. 75.00 lacs (previous year: Rs. 1849.75 lacs) with maturity of more than 12 months.

(b) Bank Fixed Deposits have been pledged as follows:

i) Rs. 60.00 Lacs with various Stock Exchanges towards Capital adequacy deposits/margins (Previous year Rs. 619.00 Lacs).

ii) Rs. 358.75 Lacs with Banks against various facilities provided by them. (Previous year Rs. 2,262.00 Lacs).

3) Contingent liabilities and Commitments (to the extent not provided for):

Particulars AS AT 31.03.2012 AS AT 31.03.2011 (Rs. in Lacs) (Rs. in Lacs)

a) Contingent liabilities

i) Claims not acknowledged by the company

Disputed Income Tax liabilities 343.74 498.04

Stamp duty levied by State Govt. of Delhi* 70.50 65.20

ii) Guarantees

Outstanding guarantees to various banks, in respect of the guarantees given by those banks

in favour of stock exchanges and others 310.00 1,730.00

Counter Guarantees given by company jointly with its Chairman to the banks on behalf of one

of its Subsidiary Companies 2.975.00 1,675.00

b) Capital Commitments (net of advances)

Estimated amount of contracts remaining to

be executed on capital account 2.070.46 51.02

* The State Government of Delhi has levied stamp duty through Indian Stamp (Delhi Amendment) Act, 2010 w.e.f. 01/06/2010 on securities business carried by the company on proprietary basis. During that year, the constitutional validity of the said levy has been challenged in Delhi High court through a writ petition filled by an association of brokers wherein the company is a member and the matter is subjudice.

4) Segment Accounting

The Company is primarily engaged in a single business segment of dealing in shares, securities and derivatives. All the activities of the Company revolves around the main business. As such there are no separate reportable segments as per Accounting Standard - 17 “Segment Reporting notified by the Central Government under the Companies (Accounting Standard) Rules 2006.

5) Operating Leases

Since the existing operating lease entered into by the company is cancelable on serving a notice of one to three months, as such there is no information required to be furnished as per AS-19.

6) Related Party Disclosure

I) List of Related Parties

a) Key Management Personnel & Relatives

1) Sh. Brij Rattan Bagri (Chairman), Relatives: Smt. Neerja Bagri (Wife), Ms. Nanditaa Bagri (Daughter), Sh. Siddhartha Bagri (Son)

2) Sh. Vikram Rathi (Executive Director)

3) Sh. Satish Kumar Sharma (Executive Director) Relatives: Sh. D.K. Sharma (Brother)*, Sh. Arun Kumar Sharma (Brother).

b) Subsidiary Enterprises

1) BLB Global Business Limited (Mauritius)*

2) BLB Institute of Financial Markets Limited

3) Sri Chaturbhuj Properties Limited

4) BLB Commodities Limited

5) Sri Shardamba Properties Limited

6) BLB Global Business Limited (India)

7) BLB Business Ventures DMCC, Dubai

[100% Subsidiary of BLB Global Business Limited (India)]*

7) Legal and Professional charges include Rs. 4,46,000/- paid for income tax matters to a non executive director of the Company. (Previous year : Rs. 5,76,000/-)

8) The Company has not received any intimation from ‘Suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

9) During the year, the company has scaled down its trading operations to safeguard against volatile market situations, on account of high statutory levies and other overheads.

10) During the previous year, the Company reversed the provision of Rs. 512.10 Lacs under Exceptional Items in the Statement of Profit & Loss which was created in the earlier years under the ‘Employees Benefit Scheme' since no such employees remained in employment in the said category at the end of the previous year.

11) In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

12) The revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statement. Previous year's figures have been regrouped and/ or rearranged wherever necessary to conform to this year's classification.

---

Mar 31, 2010

1) Contingent liabilities

i) Guarantees issued by banks on behalf of the Company as on 31/03/2010 : Rs. 3,200 Lacs. (Previous year : Rs.2,950 Lacs).

ii) Amount payable towards the purchase of immovable properties as on 31/03/2010 : Rs. 439.30 lacs (Previous year : Rs. 1723.79 lacs).

iii) Disputed Income Tax liabilities not acknowledged as debt and under appeals : Rs.196.40 Lacs. (Previous year : Rs. 156.74)

iv) The State Government of Maharastra had levied stamp duty on the company under the Bombay Stamp Act, 1958 for the period from 01/04/2001 to 23/06/2006. However the company has disputed the same with Honble Delhi High Court & Honble Bombay High Court and the matter is subjudice. Hence, the liability on account of stamp duty cannot be ascertained and no provision on this account has been made in the books.

2) i) During the year the Company has withdrawn 1,73,534 equity shares of VBC Ferro Alloys Ltd from stock-in-trade and taken to investment account at its original cost of Rs. 429.84 Lacs. The surplus arising upon such withdrawal amounting to Rs. 93.70 Lacs has been shown under the Other Income in Schedule - 13.

ii) During the year, the Company received 2,58,400 equity shares of Jindal Steel & Power Limited, 50,700 equity shares of Reliance Industries Limited and 5,00,000 equity shares of Shree Renuka Sugars Limited as bonus shares during the normal course of business and has taken the said bonus shares to Long Term Investment account at Nil Value. Out of total bonus shares of Jindal Steel & Power Limited, the Company has sold 1,58,400 equity shares during the year.

3) The Company made donations of Rs. 911.00 Lacs for Charitable objects in accordance with the Special Resolution passed by the Shareholders in the Extraordinary General Meeting held on 6th February, 2010 and the provisions of Section 293(1)(e) of the Companies Act, 1956 (Previous year : Rs. 205.52 Lacs).

4) Sundry debtors include :

i) Rs. 876.90 Lacs given to The Calcutta Stock Exchange Association Limited to tide over the payment crisis, which erupted in March 2001. A suit for recovery is pending with the Honble Delhi High Court and the management is confident of recovery thereof (Previous year : Rs.876.90 Lacs).

ii) Rs. 15.62 Lacs due from various parties are under arbitration proceedings and the management is confident of recovery thereof (Previous year: Rs.15.62 Lacs).

5) In the opinion of the Board of Directors, the aggregate value of Current Assets, Loans and Advances on realization, in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

6) Bank Fixed Deposits are pledged as follows:

i) Rs.2,887.25 Lacs with Stock Exchanges towards capital adequacy deposits/margins (Previous year: Rs.2,057.25 Lacs).

ii) Rs.4,895.78 Lacs with banks against various facilities provided by them (Previous Year: Rs.4,074.84 Lacs).

7) The Company has created a provision for Rs. 62.19 Lacs for the year under the head ‘Employees Benefits in Schedule ‘12 towards special incentive for a certain category of staff payable at the time of their successful completion of the agreed tenure of service (Previous year: Rs. 80.95 Lacs). The company has made total payments of Rs. 55.79 Lacs to such staff (Previous year: Rs. 196.36 Lacs). The Company has reversed Rs.340.28 Lacs from the accumulated provision since some of such staff left the company before the completion of agreed tenure. (Previous year : Rs. Nil)

8) Legal and Professional charges include Rs. 4,19,500/- paid for income tax matters to a non executive director of the Company. (Previous year : Rs. NIL)

9) Related Party Disclosure

I) List of Related Parties

a) Key Management Personnel & Relatives

1) Sh Brij Rattan Bagri (Chairman), Relatives: Smt. Neerja Bagri (Wife), Ms. Nanditaa Bagri (Daughter), Sh. Siddhartha Bagri (Son)

2) Sh. Vikram Rathi (Executive Director)

3) Sh. Satish Kumar Sharma (Executive Director) Relatives: Sh. D.K. Sharma (Brother), Sh. Arun Kumar Sharma (Brother).

b) Subsidiary Enterprises

1) BLB Global Business Limited*

2) BLB Institute of Financial Markets Limited

3) BLB Realty Ventures Limited

4) BLB Commodities Pvt. Ltd.(w.e.f 11th May,2009)

c) Associate Enterprises

1) Manu Properties Pvt. Ltd.*

*During the year the company did not enter into any transaction with the said parties.

10) Segment Accounting

Since the Companys operations primarily comprise of trading in shares, securities and derivatives as such there is no other reportable segment as specified by Accounting Standard 17 issued by The Institute of Chartered Accountants of India.

11) Operating Leases

Since all existing Operating Leases entered into by the Company are cancelable on serving a notice of one to three months, as such no information is required to be furnished as per Accounting Standard AS-19.

12) The Company has not received any intimation from ‘Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

13) Previous years figures have been regrouped and/or rearranged wherever necessary to conform to this year classification.

14) Statement Pursuant to Part-IV of Schedule VI to the Companies Act, 1956.