d. Provisions and Contingencies
Provisions and contingencies are based on the
Management’s best estimate of the liabilities
based on the facts known at the balance sheet
date.
Recognition and measurement
Property, plant and equipment is stated at historical
cost net of accumulated depreciation and
accumulated impairment loss, if any. Historical cost
includes expenditure that are directly attributable to
the acquisition of the items, including borrowing
costs in case of qualifying assets.
Gains or losses arising on retirement or disposal of
property, plant and equipment are recognised in the
Statement of Profit and Loss.
All other expenses for repairs and maintenance
are charged to the Statement of Profit and Loss
during the period in which these are incurred.
Subsequent Measurement
Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will flow
to the Company and the cost of the item can be
measured reliably.
Depreciation Method, Estimated Useful Lives
and Residual Values
Depreciation is calculated on pro-rata basis using
the straight-line method to allocate their cost, net of
their estimated residual value, over their estimated
useful lives.
The useful lives of Property, Plant and Equipment
have been determined based on the useful lives
prescribed under Schedule II to the Companies
Act, 2013.
Leasehold land is depreciated on a straight-line
basis over the lease term in accordance with Ind AS
116. Considering the immateriality of the lease
payments associated with such leasehold land, no
material impact arises on the recognition and
measurement of the related right-of-use asset and
lease liability.
An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated
recoverable amount. The residual values and useful
lives of property, plant and equipment are reviewed
at each financial year end and adjusted prospectively,
if appropriate.
An item of property, plant and equipment is
de-recognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,
plant and equipment is determined as the difference
between net disposal proceeds and the carrying
amount of the asset and is recognised in the
Statement of Profit & Loss.
Advances paid towards the acquisition of property,
plant and equipment outstanding at each Balance
Sheet date is classified as ‘Capital Advances’ under
‘Other Non-current Assets'.
4. OTHER INTANGIBLE ASSETS
Accounting Policy:
Intangible assets having finite useful lives are
stated at cost less accumulated amortisation
and accumulated impairment losses, if any.
An intangible asset is derecognised on disposal, or
when no future economic benefits are expected from
use or disposal. Gains or losses arising from
de-recognition of an intangible asset, measured as
the difference between the net disposal proceeds
and the carrying amount of the asset are recognised
in the statement of profit and loss when the asset is
derecognised. Intangible assets with indefinite useful
lives and intangible assets not yet available for use
are tested for impairment annually, and whenever
there is an indication that the asset may be impaired,
impairment loss is recognised in the statement of
profit & loss.
Computer software
Computer software acquired for internal use, primarily
from third-party vendors, is capitalised as an
intangible asset when it is probable that future
economic benefits attributable to the asset will flow
to the Company and the cost of the asset can be
measured reliably. Cost of computer software includes
purchase price, license fees, implementation and
system integration costs, and other directly
attributable expenditure incurred to bring the asset
to its intended use.
Subsequent expenditure relating to computer
software is capitalised only when it increases
the future economic benefits from the specific
asset beyond its originally assessed standard of
performance.
Computer software is amortised on a straight-line
basis over its estimated useful life of 5 years
from the date the software is available for use.
Patents
Patent is recognised at cost together with incidental
expenses. The amortisation is made on straight line
method every year based on the estimated useful
life as per Patent Certificate.
Note : 3A Capital-Work-In Progress Ageing Schedule
Accounting Policy:
Capital work-in-progress comprises of assets in the course of construction for production or/and supply of
goods or services or administrative purposes, are carried at cost, less any recognised impairment loss. At
the point when an asset is operating at management’s intended use, the cost of construction is transferred
to the appropriate category of property, plant and equipment. Costs associated with the commissioning of
an asset are capitalised where the asset is available for use and commissioning has been completed.
‘Advances paid towards the acquisition of property, plant and equipment outstanding at each
Balance Sheet date is classified as ‘Capital Advances’ under ‘Other Non-current Assets.
Note 6 : Inventories
Accounting Policy:
Inventories comprising raw materials, work-in-progress, finished goods, stores and spares are carried at
the lower of cost and net realisable value. Cost is determined using the weighted average method and
includes expenditure incurred in acquiring the inventories and bringing them to their existing location and
condition.
Cost of work-in-progress and finished goods includes direct material cost, direct labour cost and an
appropriate share of manufacturing overheads based on normal operating capacity.
Scrap items are valued at net realisable value (net of selling cost, if any).
Net realisable value is the estimated selling price in the ordinary course of business less estimated costs
of completion and estimated costs necessary to effect the sale.
Provision for obsolete/ old inventories is made, wherever required.
Note 7 : Trade Receivables
Accounting Policy
Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised
cost, using the effective interest rate method net of any expected credit losses. The effective interest rate
is the rate that discounts estimated future cash income through the expected life of a financial instrument.
No trade receivables are due from directors or other officers of the Company either severally or jointly with
any other person. Further no trade receivables are due from firms in which any director is a partner.
Trade Receivables are hypothecated to secure borrowings.
A. Terms / Rights attached to Equity Shares:
The company has one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share
is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled
to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.
B. There has been no changes in Authorised, Issued and Subscribed Capital during the years covered by this financial
statements.
C. Shares reserved for issue under options and contracts, or commitments for sell of shares or disinvestment - Nil
Previous year - Nil
D. Aggregate number of shares allotted as fully paid-up without cash, as bonus shares, and bought back during the
five years preceding the balance sheet date - Nil Previous year - Nil
E. 35,54,829 Shares i.e., 71.66% (previous year 35,54,829 Shares) are held by the holding company, B&A Limited.
Note 15 : Non-Current Borrowings
Accounting Policy
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the Effective Interest Rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through
the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement
of Profit and Loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as the derecognition of the original liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the Statement of Profit or Loss.
Note 16 : Non-Current Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past
event and it is probable that it is required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation.
Note 17 : Deferred Tax
Accounting Policy:
Deffered Tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. A
deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying
amount of assets or liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting
period.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. Deferred tax assets are reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
The Company recognizes revenue when it satisfies a performance obligation in accordance with the provisions
of contract with the customer. This is achieved when control of the product has been transferred to the
customer, which is generally determined when title, ownership, risk of obsolescence and loss pass to the
customer and the Company has the present right to payment, all of which occurs at a point in time upon
shipment or delivery of the product.
“Performance Obligation is achieved when :
i) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
ii) the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
iii) the amount of revenue can be measured reliably;
iv) it is probable that the economic benefits associated with the transaction will flow to the Company; and
v) the costs incurred or to be incurred in respect of the transaction can be measured reliably.’’ Revenue
towards satisfaction of a performance obligation is measured at the amount of transaction price (net
of variable consideration) allocated to that performance obligation. The transaction price of goods sold
and services rendered is net of variable consideration on account of various discounts and schemes
offered by the Company as part of the contract. Shipping and handling amounts invoiced to customers
are included in revenue and the related shipping and handling costs incurred are included in freight and
forwarding expenses when the Company is acting as principal in the shipping and handling arrangement.
No element of significant financing is deemed present as the sales are made with a credit term, which
is consistent with market practice. Sales exclude Goods and Service Tax.
Short Term Employee Benefits
These are recognised at the undiscounted amount as expense for the Short-term employee benefits are
expensed as the related service is provided. A liability is recognised for the amount expected to be paid if
the Company has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliable year in which the related service is
rendered.
Post-Employment Benefit Plans
The Company makes defined contributions to a Provident Fund scheme, which is recognised as expenses.
The estimated cost of providing defined benefits under the Payment of Gratuity Act, 1972 is calculated by
independent actuary using the projected unit credit method. Service costs and interest expense are reflected
in the Statement of Profit and Loss. Actuarial gains or losses are recognised in full under Other Comprehensive
Income.
Note 29 : Finance cost
Accounting Policy:
Borrowing Costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying assets are
capitalised as part of the cost of such assets up to the assets are substantially ready for their intended use
or sale.
All other borrowing costs are recognised in the statement of profit and loss in the period in which they are
incurred.
Current Tax
Current tax is the expected tax payable on the taxable income for the year using the applicable tax rates.
Any adjustment to taxes in respect of previous years is recognised and disclosed separately under Tax
expenses.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off
the recognised amounts and there is an intention to settle the assets and liabilities on a net basis. Deferred
tax assets and liabilities are set off when there is a legally enforceable right to set off current tax assets
against current tax liabilities; and deferred tax assets and the deferred tax liabilities relate to taxes levied
by the same taxation authority.
Note 33 : Earnings Per Share
Accounting Policy :
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equities shares outstanding during the year. The weighted
average number of equities shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have
changed the number of equities shares outstanding, without a corresponding change in resources. For the
purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
The Company enters into transactions with related parties in the ordinary course of business. Such
transactions are undertaken on terms and conditions comparable to those prevailing in arm's length
transactions. Necessary approvals, wherever applicable, have been obtained in accordance with Section
188 of the Companies Act, 2013. Outstanding balances at the year-end are unsecured and are expected
to be settled in cash. No provision for expected credit losses has been recognised in respect of outstanding
balances with related parties, and no expense has been recognised during the year in respect of bad or
doubtful debts due from related parties.
39 Events occurring after the Balance Sheet Date
Refer to note no 34 for the final dividend for Financial Year 2025-26 of Rs 1.00 per share,
as recommended by the Board of Directors of the Company which is subject to approval of the
shareholders in the ensuing Annual General Meeting.
40 Terms & Conditions of Term Loan & Working Capital Loan
Term Loans from Punjab National Bank
a) Nature of Security: Secured by equitable mortgage of Company's entire Fixed assets both
present and future and also collaterally secured by:
i) Equitable mortgage of properties at Kolkata in the name of B & A Ltd and substitution of
Immoveable property of Barooahs & Associates Pvt Ltd with Fixed Deposit receipt of equivalent
amount.
ii) Corporate Guarantee of B&A Ltd. and Barooahs & Associates Pvt. Ltd
iii) Personal Guarantee of Mr. Somnath Chatterjee.
b) Rate of Interest: 8.60% p.a (RLLR BSP-0.25%)
c) Terms of repayment: 14 equal quarterly instalments of Rs 96.10 Lakhs each and one last
instalment of Rs.114.21 Lakhs commencing from 30.06.2026. In FY 26-27 - 384.40 Lakhs,
In FY 27-28 - 384.40 Lakhs, In FY 28-29 - 384.40 Lakhs and In FY 29-30 - 306.41 Lakhs
43 Financial Risk Management
The Company’s principal financial liabilities comprise of borrowings, trade payables and other financial
liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The
Company’s principal financial assets include trade receivables and cash & bank balances. The Company’s
activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company focuses on a system based approach to business risk management. Its financial risk
management process seeks to enable the early identification, evaluation and effective management
of key risks facing the business.
Market Risk
i) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign currency exchange rates. The source of foreign currency
risk is import of raw materials and export sales. Increase/ decrease of 50 basis points in the foreign
currency exchange rates at the end of the year (keeping all other variables constant) would expose
the company to an impact of Rs.1.99 lakhs on the profit for the year ended 31st March, 2026
(previous year Rs. 0.39 Lakhs).
ii) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows from a financial instrument will
fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises
from short term and long term borrowings with variable interest rate. The exposure of the Company’s
financial assets and liabilities as at 31stMarch 2026 and 31st March 2025 to interest rate risk are
as follows: -
Increase / decrease of 50 basis points in interest rates (keeping all other variables constant) as at the
balance sheet date would result in an impact (decrease / increase in case of net income) of Rs.9.35 lakhs
and Rs. 1.00 lakhs on profit before tax for the year ended 31 st March, 2026 and 31 st March, 2025 respectively.
Credit Risk
Credit risk is the risk of financial loss arising from default / failure by the counterparty to meet financial
obligations as per the terms of contract. The Company is exposed to credit risk for trade receivables. None
of the financial instruments of the Company result in material concentration of credit risks. Credit risk on
receivables is minimum since sales are made after judging the credit worthiness of the customers or receiving
advance payment. The history of defaults has been minimaland outstanding trade receivables are monitored
on a regular basis.
Liquidity Risk:
Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with
terms of contract. To mitigate such liquidity risk the Company maintains sufficient balance of cash and cash
equivalents together with availability of funds through an adequate amount of committed credit facilities to
meet its obligations when dues. The table below provides the details regarding the remaining contractual
maturities of significant financial liabilities as on the reporting date: -
44 Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital, general
reserves. The primary objective of the Company is to maximise shareholders’ value.
The Company manages its capital structure and makes adjustments in light of the change in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure,
the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares.
In order to achieve the overall objective as elicited above, the Company’s capital management among
other things, aims to ensure that it meets the financial covenants attached to interest bearing loans and
borrowings that define the capital structure requirements. There were no breaches in the financial
covenants of any interest bearing loans and borrowings in the reported periods.
46 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decisionmaker. Revenue and expenses are identified to segments on the basis of their
relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which
are not allocable to segments on a reasonable basis, are included under “Unallocated revenue/ expenses/
assets/ liabilities”.
47 Loans, Advances, Trade and Other Receivables
No loans, advances, trade or other receivables are due from directors or other officers of the company
either severally or jointly with any other person, except as has been disclosed. Nor any loans, advances,
trade or other receivables were due from any firm or private company in which director is a partner, a
director or a member, except as has been disclosed.
48 Expenditure of Corporate Social Responsibility
The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended
31st March, 2026 is Rs 27.92 lakhs i.e. 2% of average net profits for last three financial years, calculated
as per Section 198 of the Companies Act, 2013. The Company has spent the full of amount of
Rs. 27.92 lakhs during the financial year 2025-26. Expenditure incurred on Corporate Social Responsibility
activities, included in Miscellaneous Expenses in the Statement of Profit and Loss is Rs. 27.92 lakhs.
50 Previous year/period figures have been regrouped/rearranged, wherever considered necessary
to confirm to current year's classification as below:-
In accordance with Ind AS 1, certain comparative figures have been regrouped and reclassified to
align with the current year’s presentation. In the Balance Sheet, ?217.26 lakhs relating to sundry
creditors for services and certain other balances were reclassified from Other Financial Liabilities to
Trade Payables, resulting in a net increase of ?180.64 lakhs in Trade Payables, a net decrease of
?19.55 lakhs in Trade Receivables and a net decrease of ?8.21 lakhs in Other Current Assets. Further,
?8.87 lakhs previously presented under Loans has been reclassified to Other Current Assets. In the
Statement of Profit and Loss, discount received of ?87.90 lakhs, previously disclosed under Other
Income, has been reclassified and presented as a reduction from Cost of Materials Consumed. In the
Statement of Cash Flows, comparative figures have been regrouped and reclassified in respect of
advances for purchase of capital goods ?180.90 lakhs, accrued interest ?7.26 lakhs, current loans and
other current financial assets ?5.48 lakhs, provisions ?15.52 lakhs, unrealised foreign exchange
fluctuations ?8.78 lakhs and current borrowings T76.58 lakhs to better reflect the nature of the underlying
transactions. These reclassifications are made for presentation purposes only and have no impact on
the Company's total assets, total liabilities, equity, profit for the year or cash flows.
52 No proceeding has been initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the year
ending 31st March, 2026 and also for the year ending 31st March, 2025.
53 The Company does not have any transactions with Companies struck off under Section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956 during the year ending 31st March, 2026 and also for
year ending 31st March, 2025.
54 The Company has not been declared wilful defaulter by any bank, financial institution or any other entity.
55 There are no charges or satisfaction yet to be registered with ROC beyond the statutory period, for the current
year and the previous year.
56 The Group does not have any Core Investment Company in the group.
57 The Company does not have any subsidiary, therefore compliance of number of layers as prescribed under
clause-87 of section 2 of the Companies Act,2013 read with Companies Rule,2017 is not applicable.
58 The Company have not any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the current period in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
59 The Company has not traded or invested in Crypto currency or Virtual Currency during the current year &
previous year respectively.
60 Utilisation Of Borrowed Funds and Share Premium
A) The Company has not advanced, loaned or invested funds(either borrowed funds or share premium or
any other sources or kind of funds) to any other person/(s) or entity/(ies) including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall -
i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (Ultimate Beneficiaries)
ii) provide any Guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.
So, required disclosure with respect to the above is not applicable.
B) The Company has not received any fund from any person(s) or entity(ies) including foreign entities(Funding
Party) with the understanding(whether recorded in writing or otherwise) that the Company shall -
i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries)
ii) provide any guarantee or security or the like on behalf of the Ultimate Beneficiaries.
So, required disclosure with respect to the above is not applicable.
61 The company has not granted any loans or advances in the nature of loans either repayable on demand or
without specifying any terms or period of repayment during the year ended 31st March 2026 and also for
the year ended 31st March, 2025.
62 The Company has not taken any funds from any entity or person on account of or to meet the obligations of
its subsidiaries, associates or joint ventures.
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