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.
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.
As per our report of even date
For DBK associates For and on behalf of the Board of Directors
Chartered Accountants Balmer Lawrie investments Limited
FRN: 322817E
saurav dutta samir Kumar Mohanty abhishek Lahoti
Director Director Company Secretary
( DIN: 10042140) (DIN : 10404198)
CA Pulak Chatterjee
(Partner)
Membership No: 056493
Place : Kolkata Date: May 28, 2024
22 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 Rs. 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.
23 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.
24 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
25 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. carrying at cost. Hence, disclosure requirement regarding fair value is not required.
26 details of dues to Micro, small and Medium Enterprises are given below:
The principal amount remaining unpaid at the end of accounting year 2023-24 is Rs Nil .(Previous Year: 0.52 lacs) . As at the end of the accounting period the same has remained unpaid because of dispute in the bill.
27 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 2015-16 was ? 35.78 lacs which has been transferred to the Investors' Education & protection Fund Account during the year.
33 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 32(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 32(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.
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.
34 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 only.
37 Disclosure required under additional regulatory information as prescribed under paragraph WB to general instruction of preparation of Balance Sheet under Schedule III of Companies Act 2013 are not applicable to the Company except activities related to CSR as disclosed in Note No 18.
38 There have been no events after the reporting date that require disclosure in these Financial Statements.
39 Previous year figures have been regrouped or rearranged or reclassified wherever considered necessary.
40 Authorisation of Financial Statements
These Financial Statements for the year ended 31st March 2024 (including comparatives) has been signed by the Board of Directors as on 28th May2024
Summary of significant Accounting Policies and the accompanying notes are integral part of the Financial Statements.
For DBK associates For and on behalf of the Board of Directors
Chartered Accountants Balmer Lawrie investments Limited
FRN: 322817E
saurav dutta samir Kumar Mohanty abhishek Lahoti
Director Director Company Secretary
( DIN: 10042140) (DIN : 10404198)
CA Pulak Chatterjee
(Partner)
Membership No: 056493
Place : Kolkata Date: May 28, 2024
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