3.9 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when the Company has a present legal or constructive obligation as a result
of a past event; it is probable that an outflow of economic resources will be required from the Company
and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. Provisions
are measured at the estimated expenditure required to settle the present obligation, based on the most
reliable evidence available at the reporting date, including the risks and uncertainties associated with the
present obligation. Provisions are discounted to their present values, where the time value of money is
material.
A Contingent Liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the control of the
Company or
• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
In those cases, where the outflow of economic resources as a result of present obligations is considered
improbable or remote, no liability is recognized or disclosure is made.
Any reimbursement that the Company can be virtually certain to collect from a third party concerning the
obligation (such as from insurance) is recognized as a separate asset. However, this asset may not exceed
the amount of the related provision.
Contingent Assets are not recognized. However, when the inflow of economic benefits is probable, the related
asset is disclosed.
3.10 Taxes on Income
Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax
Act, 1961 on the taxable income for the year and any adjustment to the tax payable or receivable in respect
of previous years.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax base used in the computation of taxable income.
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 liability is recognized for all taxable temporary differences. A deferred tax asset is recognized
for all deductible temporary differences to the extent that it is probable that future taxable profits will be
available against which the deductible temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized. Under the current scenario, the company does not have any deferred tax asset
or liability.
3.11 Earnings per share
Basic earnings per share is calculated by dividing the net Profit or Loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares
outstanding during the period.
To calculate diluted earnings per share, the net profit or loss (interest and other finance cost associated) for
the period attributable to equity shareholders (after deducting attributable taxes) and the weighted average
number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares, except in case where results are anti-dilutive.
3.12 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 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.
4. Significant management judgment in applying accounting policies and estimation of
uncertainty
The preparation of the Company’s Standalone Financial Statements requires management to make judgments,
estimates, and assumptions that affect the reported amounts of Revenues, Expenses, Assets and Liabilities,
and the related disclosures. Actual results may differ from these estimates.
Significant management judgments
Evaluation of indicators for impairment of assets - The evaluation of the applicability of indicators of
impairment of assets requires assessment of several external and internal factors which could result in
deterioration of recoverable amount of the assets.
Significant estimates
Income Taxes - Significant estimates are involved in determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions and also in respect of expected future
profitability to assess deferred tax asset.
Recoverability of Receivables and Investments
At each balance sheet date, based on historical default rates observed over expected life, the management
assesses the expected credit loss on outstanding receivables and investments.
Note:-
Capital Reserve
Capital Reserve arises on account of Scheme of Arrangement & Reconstruction between IBP Co Ltd, and Balmer Lawrie Investments
Limited due to reconstruction of IBP Co Ltd
General Reserve
This represents Statutory Reserve Fund created as per RBI Act, upto Financial Year 2015-2016.
Retained Earnings :
Retained earnings are the portion of company's net income that is left out after distributing dividend to share holders .
Out of ? 240.54 lakhs, Rs 43.62 Lakhs pertains to year 2025-26, Rs 38.31 lakhs pertains to year 2024-25 , ? 35.70 lakhs pertains to
F.Y. 2023-24, Rs 43.35 lakhs pertains to FY 22-23, Rs 25.78 lakhs pertains to FY 2021-22 ? 10.68 lakhs pertains to F.Y. 2020-21, ?
27.90 lakhs pertains to F.Y 2019-20 and ? 15.20 lakhs pertains to F.Y. 2018-19.
The figures of fine as reflected as on 31st March, 2026 has been calculated based on notices received from BSE Ltd. for the period
ended 31.03.2026 and waiver thereof.
The Company being a Governement Company, the compliance regarding composition of directors is not within the control of the
Company but as per directions of the Administrative Ministry.
23 Scheme of Arrangement and Reconstruction
(a) A Scheme of Arrangement and Reconstruction ('the Scheme'),made under sections 391 to 394 of the erstwhile Companies Act,
1956 ('the Act'), was executed by and between IBP Co. Ltd. ('IBP') and Balmer Lawrie Investments Ltd. ('the Company') and their
respective creditors and shareholders. The Scheme under notification no. GSR/238 dated 2nd February 1978, was approved by the
erstwhile Department of Company Affairs, Ministry of Law, Justice and Company Affairs, Govt. of India, was approved on 8th January
2002, with the appointed date of 15th October 2001.Under the Scheme 1,00,64,700 Equity Shares of ? 10/- each, fully paid-up, of
Balmer Lawrie & Co. Ltd. ('BL'), held by IBP, was transferred to the Company, whereby the Company became holder of 61.8% Equity
Shares of BL, with effect from the aforesaid appointed date of the Scheme, i.e., 15th October 2001.
(b) In consideration of transfer of the aforesaid shares of BL by IBP, the Company had allotted 2,21,47,269 equity shares of ? 10/- each,
fully paid-up to the shareholders of IBP (consideration other than cash), in the ratio of 1:1.
24 Public Deposit :
The Company has not accepted any Public deposit within the meaning of Section 45I(bb) of RBI Act 1934 during the year in
question & the company has also passed resolution for non-acceptance of any Public Deposit.
25 Non Banking Financial Company ('NBFC')
Balmer Lawrie Investments Limited is a non-banking financial Company as defined under section 45-I(f) of the Reserve Bank of India
Act, 1934. On the basis of application given by the Company the RBI in exercise of their power conferred under section 45-NC of the
Reserve Bank of India Act, 1934, has exempted the Company to comply with the formalities of registration and minimum net owned
funds, under the Notification No. DNBS.153/CGM(LMF)-2001 dated December 10, 2001.
The Financial Statements have been prepared as per the requirements of Division III to the Revised Schedule III of the Companies
Act,2013
26 Investment Details
The Company holds 61.8 % equity shares of Balmer Lawrie & Co. Ltd.(BL). The Company holds 10,56,79,350 Equity Shares of Balmer
Lawrie & Co. Ltd. Investments are recognised in books at cost. Hence, disclosure requirement regarding fair value is not required.
27 Details of dues to Micro, Small and Medium Enterprises are given below:
(i) The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends
that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum
Number as allocated after filing of the Memorandum in accordance with the ‘Micro, Small and Medium Enterprise Development Act,
2006 (‘the Act'). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial
statements based on the information received and available with the Company.
(ii) Based on the information / documents available with the company, no interest provisions / payments has to be made by the
Company to micro enterprises and small enterprises creditors and thus, no related disclosures as required under Section 22 of the
Micro, Small and Medium Enterprises Development Act, 2006 are made in these accounts.
28 Unclaimed Dividend Accounts
The Company has to maintain a dividend account from where the dividends are issued to the shareholders, the amount of unclaimed
dividend which remains there for more than seven years is then transferred to the Investor Education & Protection Fund Account.
The Unclaimed Final dividend outstanding in the accounts for the Financial year 2017-18 was Rs 34.54 lakhs which has been
transferred to the Investors' Education & protection Fund Account during the year.
29 Service Agreement with Balmer Lawrie & Co. Ltd (BL)
The company has entered into Service Agreement with Balmer Lawrie & Co. Ltd (BL) whereby BL shall act as a Service Provider to
maintain Books of Accounts, Statutory Registers , provide services, in nature of administration , finance, taxation , secretarial and other
allied functions, provide office space and other requisite infrastructure.
(iii) Fair values hierarchy
The Company does not have any Financial Assets or Financial Liabilities carried at fair value.
34 Financial Risk Management
i) Risk Management
The Company is exposed to various risks in relation to Financial Instruments. The Company's Financial Assets and Liabilities by
category are summarised in Note 33(i). The main types of risks are credit risk, liquidity risk and market risk.
The Company's risk management is coordinated in close co-operation with the Board of Directors, and focuses on securing the
Company's short to medium term cash flows. The Company does not engage in trading of Financial Assets for speculative purposes.
A) Credit Risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is
limited to the carrying amount of Financial Assets recognised at Balance Sheet date as summarised in Note 33(i).
The Company has Investment in Equity Instrument of subsidiaries and therefore, credit risk in respect of such Financial Assets is
considered negligible.
The credit risk for cash and cash equivalents and other bank balances are considered negligible, since the counterparties are reputable
banks with high quality external credit ratings.
B) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its Financial Liabilities that
are settled by delivering Cash or another Financial Asset.
The Company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities
as and when they are due.
Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Company manages liquidity risk by
maintaining adequate reserves, back-up facilities such as deposits and by continuously monitoring forecast and actual cash flows,
and by matching the maturity profiles of Financial assets and Liabilities. Management monitors rolling forecasts of the Company's
liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of Financial Liabilities
The tables below analyse the Company's Financial Liabilities into relevant maturity groupings based on their contractual maturities.
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.
C) Market Risk
Market risk is the risk that the fair value or future cash flows of a Financial Instrument will fluctuate because of changes in market
prices. It comprises of currency risk, interest rate risk and price risk.
Currency Risk:
The company does not have any foreign currency transactions, hence, it is not exposed to currency risk.
Interest Rate Risk:
As the Company does not have any borrowings outstanding, it is not exposed to interest rate risk.
Price Risk:
The company does not have any Financial Instrument which exposes it to price risk.
35 Capital Management
The Company's capital includes issued share capital and all other distributable reserves. The primary objective of the Company's
capital management is to maximise shareholder value and to maintain an optimal capital structure to reduce the cost of capital. The
Company does not have any Non-current borrowings and all its capital needs are met by capital or shareholders fund only.
Following table summarizes the capital structure of the Company.
38 Segment Reporting
The Company has only one line of business i.e. Non Banking Financial activities. There are no separate reportable segments as per
Ind AS 108.
39 Disclosure required under additional regulatory information as prescribed are either Nil or not applicable to the Company
40 There have been no events after the reporting date that require disclosure in these Financial Statements.
41 Previous year figures have been regrouped or rearranged or reclassified wherever necessary to conform with current year classification
42 Authorisation of Financial Statements
These Financial Statements for the year ended 31 March 2026 (including comparatives) has been signed by the Board of Directors
as on 21.05 .2026
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