(xii) Provisions, Contingent Liabilities and Contingent Assets
A provision shall be recognised when:
(a) The company has a present obligation (legal or constructive) as a result of a past event;
(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and
(c) A reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision shall be the best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The risks and uncertainties that inevitably surround
many events and circumstances shall be taken into account in reaching the best estimate of a provision.
Where the effect of the time value of money is material, the amount of a provision shall be the present
value of the expenditures expected to be required to settle the obligation. Provisions is reviewed at the
end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, the
provision is reversed.
Unless the possibility of any outflow in settlement is remote, the company will disclose for each class
of contingent liability at the end of the reporting period a brief description of the nature of the contingent
liability and, where practicable:
(a) An estimate of its financial effect,
(b) An indication of the uncertainties relating to the amount or timing of any outflow; and (c) the possibility
of any reimbursement.
Where an inflow of economic benefits is probable, the company will disclose a brief description of the
nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of
their financial effect.
(xiii) Earnings per Share
The company will calculate basic earnings per share amounts for profit or loss attributable to ordinary
equity holders and, if presented, profit or loss from continuing operations attributable to those equity
holders. Basic earnings per share shall be calculated by dividing profit or loss attributable to ordinary
equity holders (the numerator) by the weighted average number of ordinary shares outstanding (the
denominator) during the period. The objective of basic earnings per share information is to provide a
measure of the interests of each ordinary share in the performance of the company over the reporting
period.
If the number of ordinary or potential ordinary shares outstanding increases as a result of a capitalisation,
bonus issue or share split, or decreases as a result of a reverse share split, the calculation of basic and
diluted earnings per share for all periods presented shall be adjusted retrospectively. If these changes
occur after the reporting period but before the financial statements are approved for issue, the per share
calculations for those and any prior period financial statements presented shall be based on the new
number of shares. The fact that per share calculations reflect such changes in the number of shares
shall be disclosed. In addition, basic and diluted earnings per share of all periods presented shall be
adjusted for the effects of errors and adjustments resulting from changes in accounting policies accounted
for retrospectively.
(xiv) Employee Benefits.
Short-term employee benefits include items such as the following, if expected to be settled wholly
before twelve months after the end of the annual reporting period in which the employees render the
related services: (a) wages, salaries and social security contributions; (b) paid leave; (c) bonuses; and
(d) non-monetary benefits if any for current employees. When an employee has rendered service to the
company during an accounting period, it recognises the undiscounted amount of short-term employee
benefits expected to be paid in exchange for that service: (a) as a liability (accrued expense), after
deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the
benefits, it recognises that excess as an asset (prepaid expense) to the extent that the prepayment will
lead to, for example, a reduction in future payments or a cash refund.(b) as an expense. It will recognise
the expected cost of bonus payments only when: (a) it has a present legal or constructive obligation to
make such payments as a result of past events; and (b) a reliable estimate of the obligation can be
made.
A present obligation exists when, and only when, the entity has no realistic alternative but to make the
payments.
Post-employment benefits include items such as the following: (a) retirement benefits (lump sum payments
on retirement i.e. gratuity); and (b) other post-employment benefits, such as leave encashment, terminal
benefits. Arrangements whereby company provides post-employment benefits are post-employment
benefit plans. It applies this Standard to all such arrangements whether or not they involve the
establishment of a separate entity to receive contributions and to pay benefits.
Post-employment benefit plans are classified as either defined contribution plans or defined benefit
plans, depending on the economic substance of the plan as derived from its principal terms and conditions.
Under defined contribution plans the company's legal or constructive obligation is limited to the amount
that it agrees to contribute to the fund. Thus, the amount of the post-employment benefits received by
the employee is determined by the amount of contributions paid by the company (and perhaps also the
employee) to a post-employment benefit plan or to an insurance company, together with investment
returns arising from the contributions. In consequence, actuarial risk (that benefits will be less than
expected) and investment risk (that assets invested will be insufficient to meet expected benefits) fall, in
substance, on the employee. The company may pay insurance premiums to fund a postemployment
benefit plan. The entity shall treat such a plan as a defined contribution plan unless the entity will have
(either directly, or indirectly through the plan) a legal or constructive obligation either: (a) to pay the
employee benefits directly when they fall due; or (b) to pay further amounts if the insurer does not pay all
future employee benefits relating to employee service in the current and prior periods. If it retains such
a legal or constructive obligation, it shall treat the plan as a defined benefit plan.
When an employee has rendered service to the company during a period, it shall recognise the contribution
payable to a defined contribution plan in exchange for that service: (a) as a liability (accrued expense),
after deducting any contribution already paid. If the contribution already paid exceeds the contribution
due for service before the end of the reporting period, an entity shall recognise that excess as an asset
(prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future
payments or cash refund. (b) as an expense. When contributions to a defined contribution plan are not
expected to be settled wholly before twelve months after the end of the annual reporting period in which
the employees render the related service, they shall be discounted using the discount rate.
Accounting by an entity for defined benefit plans involves the following steps: (a) determining the deficit
or surplus. (b) Determining the amount of the net defined benefit liability (asset). (c) Determining amounts
to be recognised in profit or loss :(i) current service cost (ii) any past service cost and gain or loss on
settlement (iii) net interest on the net defined benefit liability (asset). (d) Determining the reameasurements
of the net defined benefit liability (asset), to be recognised in other comprehensive income, comprising:
(i) actuarial gains and losses;(ii) return on plan assets, excluding amounts included in net interest on
the net defined benefit liability (asset) ; and (iii) any change in the effect of the asset ceiling , excluding
amounts included in net interest on the net defined benefit liability (asset).
The company will account not only for its legal obligation under the formal terms of a defined benefit
plan, but also for any constructive obligation that arises from its informal practices. Informal practices
give rise to a constructive obligation where it has no realistic alternative but to pay employee benefits.
The company recognises the net defined benefit liability (asset) in the balance sheet. When the company
has a surplus in a defined benefit plan, it shall measure the net defined benefit asset at the lower of: (a)
the surplus in the defined benefit plan; and (b) the asset ceiling, determined using the discount rate
The company uses the projected unit credit method to determine the present value of its defined benefit
obligations and the related current service cost and, where applicable, past service cost.
(xv) Income Taxes
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a)
deductible temporary differences; (b) the carry forward of unused tax losses; and (c) the carry forward of
unused tax credits.
Current tax for current and prior periods shall, to the extent unpaid, be recognised as a liability. If the
amount already paid in respect of current and prior periods exceeds the amount due for those periods,
the excess shall be recognised as an asset.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the
period, except to the extent that the tax arises from a transaction or event which is recognised, in the
same or a different period, outside profit or loss, either in other comprehensive income or directly in
equity. Current tax and deferred tax shall be recognised outside profit or loss if the tax relates to items
that are recognised, in the same or a different period, outside profit or loss. Therefore, current tax and
deferred tax that relates to items that are recognised, in the same or a different period: (a) in other
comprehensive income, shall be recognised in other comprehensive income (b) directly in equity, shall
be recognised directly in equity.
(xvi) Mandatory Exemptions adopted by the Company
i. De recognition of financial assets and financial liabilities The Company shall apply the derecognition
requirements in IND AS 109 prospectively for transactions occurring on or after the date of transition
to IND ASs.
ii. Classification and measurement of financial assets The Company shall assess whether a financial
asset meets the conditions of IND AS 109 on the basis of the facts and circumstances that exist at
the date of transition to IND AS.
iii. Impairment of financial assets The Company shall apply the impairment requirements of IND AS
109 retrospectively subject to exemptions provided in IND AS 101.
(xvii) Optional Exemptions Availed by the Company
Deemed cost
The Company elects to continue with the carrying value for all of its property, plant and equipment as
recognised in the financial statements as at the date of transition to IND ASs, measured as per the
previous GAAP and use that as its deemed cost as at the date of transition. Hence, no further adjustments
to the deemed cost of the property, plant and equipment so determined in the opening balance sheet
shall be made for transition adjustments that might arise from the application of other IND ASs. This
option is also be availed for intangible assets covered by IND AS 38, Intangible Assets and investment
property covered by IND AS 40, Investment Property.
(b) Terms of Issue
The company has only one class of equity shares having a face value of Rs.2/- per share to one
vote per share. The company declares and pays dividend in Indian rupees.In the event of liquidation
of the company,each Shareholder is entitled to receive remaining assets of the company,after
distribution of all prefential amounts,in proportion to the number of equity shares held by them.
(c) Aggregate no. of bonus shares issued,shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceeeding the reporting date is NIL
(d) The company does not have any holding company/ ultimate Holding company
18. The Company had 106200 equity shares of GHCL in the demat account maintained with destiny
securities Limited which was also the trading member . Subsequently the company found that the
trading member had withdrawn the equity shares and the balance in demat account was showing
NIL.“The Company filed a claim of 106200 equity shares of GHCL with Bombay Stock Exchange
(BSE) which was admitted and the award was passed in favour of the company for a sum of Rs.
2,60,29,620/- vide order ref no. E/C/2019/04/01 dated 07.06.2019. The company is perusing BSE
towards the claim but no payment has been received till date. The Company as a prudence written
off the amount as exceptional item.
19. Reconciliation between previous GAAP & Ind AS :-
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for
prior period. The following table represents the reconciliation from previous GAAP to Ind AS.
25. The companies registration as NBFC was cancelled vide dated 27.08.2019 by RBI. The company is
not carrying the business of NBFC.
26 (a). Valuation of Inventory (Book Value - Rs 0.63 Lakhs, previous year Rs. 0.63 lakhs ) has been
done on Cost Basis due to unavailability of data to compute the Fair Value of the Inventory held by
the Company
(b). Inventory of Unquoted shares, valuing Rs 0.63 lacs, held in physical form and physical share
certificates were not available .These are misplaced and not traceable. Necessary steps are being
taken to recover the share certificates.
27. The Company has not entered into any transactions with the companies struck off under the
Companies Act, 2013 or the Companies Act, 1956.
28. The Company has not been declared wilful defaulter by any bank or financial institution or government
or any government authority.
29. The company has not surrendered or disclosed any income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account.
30. The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.
31. No proceedings have been initiated on or are pending against the company for holding benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
therunder.
34. The company does not have any immovable property and no asset has been revalued in FY 2024¬
2025
35. The management is of the opinion that Current Assets and Current Liabilities are stated at realizable
value in a normal course of business and no provision has been considered necessary.
36. The Company does not have any Intangible Assets under development
37. (a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the company to or in any other person or entity, including
foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate
Beneficiaries). The Company has not received any fund from any party (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other persons
or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
(b) No funds have been received by the company from any person(s) or entity (ies), including foreign
entities (“Funding Parties”), with the understanding whether recorded in writing or otherwise, that
the company shall, whether, directly or indirectly lend or invest in other person or entities identified
in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
38. No Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013 is approved
by any Competent Authority.
39. The Company has not obtained any credit rating as there are no borrowings in the Company .
40. There are no restructured accounts as at the end of financial year.
41. Earning in foreign exchange and expenditure in foreign currency-NIL
42. Previous Year Figures have been regrouped/rearranged/reclassified according to the requirement of
IND-AS wherever necessary
43. All the figures in these notes are in Indian Rupees in Lacs except otherwise stated.
For and on behalf of the Board of Directors
, . , ... , . For Blue Chip India Limited
In terms of our report of even date H
For Agarwal Sanganeria & Co. soni jain Arihant Jain
Chartered Accountants gpg Managing Director
Firm Registration No : 317224E DIN : 00174557
(C.A. P K Agarwal) Tanmoy Ghosh
Place : Kolkata Partner Pooja Bhartia Director
Date : 28th May, 2025 Membership No . 053496 Company Secretary DIN : 03071928
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