(i) Contractual obligations

There is no contractual commitment for the acquisition of Investment Property.

(ii) Capitalised borrowing cost

No borrowing costs were capitalised during the year ended 31 March 2024 or previous year ended 31 March 2023.

(iii) Restrictions

There are no restrictions on remittance of income receipts or receipt of proceeds from disposals.

b) Rights/preferences/restrictions attached to equity shares

The Company has one class of equity shares having a par value of ? 10 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The Company's Earnings Per Share ('EPS') is determined based on the net profit after tax attributable to the shareholders' of the Company being used as the numerator. Basic earnings per share is computed using the weighted average number of shares outstanding during the year as the denominator. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period including share options, except where the result would be anti-dilutive. The Face value of the shares is ? 10.

Note No. 40

Accounting for Employee Benefits Defined Benefit Plans

The disclosures are made consequent to adoption of IND AS 19 on Employee Benefits, notified by the Ministry of Corporate Affairs, by the Company. Defined Benefit(s) Plans/ Long Term Employee benefits in respect of Gratuity, Leave Encashment, Post-retirement Medical Benefits and Long Service Awards are recognized in the Statement of Profit & Loss on the basis of Actuarial valuation done at the year end. Actuarial gain/loss on post-employment benefit plans that is gratuity and post-retirement medical benefit plans are recognized in Other Comprehensive Income.

Defined Contribution Plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, Superannuation Fund, NPS and Employee State Insurance Scheme which are defined contribution plans. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund for the year aggregated to ? 1213.06 Lakhs (?1162.66 Lakhs); Superannuation fund/NPS ? 721.34 Lakhs (?694.24 Lakhs ) and contribution to Employee State Insurance Scheme for the year aggregated to ? 0.65 Lakhs (?1.25 Lakhs).

Post Employment Benefit Plans A. Gratuity

The gratuity plan entitles an employee, who has rendered atleast five year of continuous service, to receive fifteen days salary for each year of completed service at the time of superannuation/exit. Any shortfall in obligations is met by the company by way of transfer of requisite amount to the fund named "Balmer Lawrie & Co. Ltd. Gratuity Fund".

The reconciliation of the Company's defined benefit obligations (DBO) and plan assets in respect of gratuity plans to the amounts presented in the statement of financial position is presented below:

(vi) Sensitivity Analysis

The significant actuarial assumption for the determination of defined benefit obligation in respect of gratuity plans is the discount rate. The calculation of the net defined benefit obligation is sensitive to this assumption. The following table summarises the effects of changes in this actuarial assumption on the defined benefit obligation:

The Company has several lease contracts that include extension and termination options which are used for regular operations of its business. These options are negotiated by management to provide flexibility in managing the Company's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee.

Note 42

Additional Disclosures

42.1 (a) Conveyance deeds of certain leasehold land with written down value of ?2,199.49 Lakhs (?2,256.46 Lakhs) are pending registration/mutation.

(b) Conveyance deeds of certain buildings with written down value of ?3,887.98 Lakhs (?3,862.25 Lakhs) are pending registration/mutation.

(c) Certain buildings & sidings with written down value of ?11,438.05 Lakhs (?10,865.79 Lakhs) are situated on leasehold/ rented land. Some of the leases with Syama Prasad Mookerjee Port (SMP) erstwhile Kolkata Port Trust have expired and are under renewal.

42.2 The details of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company are as under:

None of the title deed holder is a promoter, Director or relative of promoter/ director or employee of promoter/ director.

The title deeds/ lease deeds are primarily held in the name of the company, except for a few properties, wherein the same are in the process of being registered or pending to be registered due to certain modalities. Details are as under:

(a) Disputed demand for Excise Duty, Sales Tax, Service Tax, Cess, GST and Income Tax, as applicable, amounting to ?10115.97 Lakhs (?8,284.37 Lakhs) against which the Company has lodged appeals/petitions before appropriate authorities. Details of such disputed demands as on 31st March, 2024 are given in Annexure - A.

(b) Claims against the company not acknowledged as debts amounts to ?1074.45 Lakhs (?812.66 Lakhs) in respect of which the Company has lodged appeals/ petitions before appropriate authorities. In respect of employees/ exemployees related disputes, financial effect is ascertainable on settlement.

42.4 Counter Guarantees and Letter of Credit given by banks as on 31.03.2024 are as below:

(a) Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Yes Bank, Indusind Bank and Axis Bank in respect of guarantees given by them amounts to ?8280.05 Lakhs (?7,190.41 Lakhs).

(b) Letter of Credit issued by HDFC Bank and Axis Bank amounts to ?0.00 Lakhs (?5,727.03 Lakhs).

42.5 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for amounted to ?3027.30

Lakhs (?4,072.58 Lakhs).

42.6 Details of dues to Micro, Small and Medium Enterprises are as given below:

(a) The principal amount remaining unpaid to any supplier at the end of accounting year 2023-24 ?1259.51 Lakhs (?992.62 Lakhs).

(b) The interest due thereon remaining unpaid to any supplier at the end of accounting year 2023-24 ?Nil (?Nil).

(c) The amount of interest paid by the company in terms of section 16 of the Micro, Small and Medium Enterprises

Development Act, 2006 (MSMED Act) during the accounting year 2023-24 ? Nil (?Nil).

(d) The amount of payment made to the supplier beyond the appointed day during the accounting year 2023-24 ? Nil (?Nil).

(e) The amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act during the accounting year 2023-24 ?Nil (?Nil).

(f) The amount of interest accrued and remaining unpaid at the end of accounting year 2023-24 ?Nil (?Nil).

(g) The amount of further interest remaining due and payable even in the succeeding years, until such date when the

interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under Section 23 of MSMED Act for the year 2023-24 ?Nil (?Nil).

42.7 The gross amount of exchange difference credited to the Statement of Profit & Loss is ?355.76 Lakhs (?382.36 Lakhs) and

the gross amount of exchange difference debited to the Statement of Profit & Loss is ?149.61 Lakhs (?198.93 Lakhs).

42.8 Trade receivables, loans and advances and deposits for which confirmations are not received from the parties are subject

to reconciliation and consequential adjustments on determination/ receipt of such confirmation.

(*) Subsequent to the order of Hon'ble NCLT in the Insolvency case of Transafe Services Ltd. (TSL), the investments of the company (in both Equity and Preference shares) have been unilaterally reduced by way of capital reduction. The Company had filed an appeal to Hon'ble National Company Law Appellate Tribunal (NCLAT) against the orders of Hon'ble NCLT.

The Appellate Tribunal vide its order dt July 26, 2023 has dismissed the case referring to the earlier apex court decisions wherein it was established that the Insolvency & Bankruptcy Code (IBC) does not stipulate that related parties, such as Equity Share holders (i.e. the promoter group) must be compensated at par with related parties. The management had no other option but to comply with the verdict of NCLAT. Consequently, the investments in the Equity Share Capital and the Preference Share Capital of TSL have now been written off in the books of accounts. ¹

Avi - Oil India Private Limited is classified as associate on the basis of the shareholding pattern which leads to significant influence over them by the Company. Further, in Balmer Lawrie (UAE) LLC, Balmer Lawrie - Van Leer Limited and PT Balmer Lawrie Indonesia, both the partners have equal nominee representatives in the Board. Hence, these entities are classified as joint ventures. The Company recognizes its share in net assets through equity method.

The Company's proportionate share of the estimated amounts of contracts remaining to be executed on Capital Accounts relating to the Joint Venture & Associate Companies and not provided for in their respective financial statements amounts to ?1,623.12 Lakhs (?2,032.54 Lakhs).

42.25 Miscellaneous Expenses shown under “Other Expenses” (Refer Note No. 36) do not include any item of expenditure which exceeds 1% of revenue from operations.

42.26 (a) Certain fixed deposits with banks amounting to ?900.00 Lakhs (?2,800.00 Lakhs) are pledged with a bank against

short term loans availed from the said bank. However, there are no loans outstanding against these pledges as on 31.3.2024.

(b) Certain fixed deposits amounting to ?496.88 Lakhs (?106.12 Lakhs) are pledged with a bank against guarantees availed from the said bank.

42.28 The company had been sanctioned a grant-in-aid by the Ministry of Food Processing Industries (MoFPI), Government of India for setting up integrated cold chain facilities at Rai, Haryana and Patalganga, Maharashtra, against which, the company has been disbursed a full and final grant of ?671.59 Lakhs. This has been treated as a deferred income and grouped under Non-Financial Liabilities-Others (Current)/ Non-Financial Liabilities-Others (Non-Current) and shall be apportioned over the useful life of the assets procured out of such grant. During the current financial year, a sum of ?53.83 Lakhs (?86.37 Lakhs) has been credited as income in the statement of profit and loss.

42.29 The review of the residual value and the useful life of the assets (including for Property, Plant & Equipment, Intangible Assets and Investment Properties) is done by the management on a regular basis at periodic intervals.

42.30 Visakhapatnam Port Logistics Park Limited (VPLPL), a subsidiary, where the Company holds 60% of the equity capital has been facing initial teething problems since the start of operations in the second half of 2019 and is going through initial stabilization phase which has been further heightened by impact of Covid-19 and delayed receipt of Container Freight Service (CFS) licence resulting in starting of CFS operations from March 2023 only. This being an infrastructure project, the gestation period is generally higher than for normal projects. Bank term loan has also been restructured under special resolution framework for Covid-19 for stressed units. Though the business is gradually increasing, it continues to experience challenges in achieving growth as originally expected. The afore-mentioned factors and continuing losses has eroded the net-worth of the Company by almost 50% as on 31st March 2024.The management while continuing to be hopeful of a turnaround in its performance in the coming future, has decided to make a provision of 50% of its investment in VPLPL as a matter of abundant precaution and accounting prudence.

42.34 The additional notes to accounts for the year ended 31.03.2024/ 31.03.2023:

(a) The company has not revalued its Property, Plant and Equipment (including Right of Use Assets) and Intangible Assets.

(b) No proceedings have been initiated on or are pending against the company for holding any benami property under the “Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

(c) Clause (87) of section 2 of the Companies Act, 2013 read with Rule 2 (2) (d) of the Companies (Restriction on number of Layers) Rules, 2017 is not applicable to the company, being a Government Company as referred to in clause (45) of Section 2 of the Act.

(d) No Scheme of Arrangements in respect of the company has been approved by the Competent Authority in terms of Sections 230 to 237 of Companies Act, 2013.

(e) The company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(f) The company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) to any persons or entities, including foreign entities (Intermediaries), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(g) The company has not received any fund from any persons or entities, 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 persons 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.

(h) The company has not traded or invested in Crypto Currency or Virtual Currency.

(i) The dividend declared and paid by the company is in accordance with Section 123 of the Companies Act, 2013.

(j) The company has no such transactions not recorded in the books of account which have been surrendered or disclosed as income 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) and there is no immunity either to not disclose the same. There are no such cases of previously unrecorded income and related assets which have been recorded in the books of account.

(k) The company does not have any relationship with struck off Companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(l) The company does not have any such case where the borrowings from banks and financial institutions have been used otherwise than for the specific purpose for which it was taken.

42.35 Impact of New Labour Codes

The Indian Parliament has approved 4 Labour Codes viz: The Code on Wages, 2019, The Code on Social Security, 2020, The Industrial Relations Code, 2020 and The Occupational Safety Health and Working Conditions, 2020 subsuming many existing labour legislations. These would impact the contributions by the Company towards Provident Fund, Bonus and Gratuity. The effective date from which the codes and rules will be applicable is yet to be notified. The Company will assess the impact and its valuation and will give appropriate impact in its financial statements in the period(s) in which, the Codes become effective and the related rules to determine the financial impact are notified.

42.36 Plots of Syama Prasad Mookerjee Port (SMP) erstwhile Kolkata Port Trust in and around Kolkata are being utilised by various businesses of the Company. Some of the leases with SMP have expired and are under renewal. Continuous reconciliation has been undertaken over the last couple of years and based on the same payments have been released for the confirmed amounts. SMP continues to reflect certain balance as receivable from the company which seems to have arisen mainly out of improper adjustment by SMP for payments made by the company, consequential accrual of interest on outstandings as per SMP policy, non-accounting by SMP of TDS deducted and deposited by the company and charging of rent at higher rates by SMP for specific periods after the expiry of lease. For some of these, SMP needs to take internal approvals for waiver and for others the correctness of the figures including their computation needs to be established before the company can release the payments. The company had made adequate provisions during 2022-23 in its books and based on the latest SMP statement dated 23.04.2024 no further provision is required in the FY 2023-24.

42.37 (a) The financial statements have been prepared as per the requirement of Division-II to the Schedule III of the Companies

Act, 2013.

(b) Previous year's figures have been re-grouped or re-arranged or re-classified wherever so required to make them comparable with current year figures.

(c) Figures in brackets relate to previous year.

(d) All amounts in ? Lakhs unless otherwise stated. The words Lakhs and Lacs are used interchangeably vin these financial statements and have the same connotation.

ii) Risk Management

The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

The Company's risk management other than in respect of trade receivables is carried out by a central treasury department under policies approved in-principle by the Board of Directors. The policies include principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of surplus funds. Company's risk in respect of trade receivables is managed by the Chief Operating Officer of the respective Strategic Business Units.

A) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk is primarily from trade receivables and other receivables amounting to ? 61,506.18 Lakhs as at March 31, 2024 (? 57,189.00 Lakhs as at March 31,2023). The receivables are typically unsecured and are derived from revenue earned from customers which is predominantly outstanding from sales to Government departments and public sector entities whose risk of default has been very low in the past. In case of other trade receivables, the credit risk has been managed based on continuous monitoring of credit worthiness of customers, ability to repay and their past track record.

Provisions For Receivables

There are no universal expected loss percentages which can be derived for the Company as a whole. The Company generally considers its receivables as impaired when they are outstanding for over three years period. Considering the historical trends based on amounts actually incurred as a loss in this regard over the past few years and market information, the Company estimates that the provision computed on its trade receivables will not be materially different from the amount computed using expected credit loss method prescribed under Ind AS - 109. Since the amount of provision is not material for the Company as a whole, no disclosures have been given in respect of expected credit losses.

For Other Financial assets

Loans - are given to regular employees who are on the payroll of the company as per the employment terms and primarily secured in case of house building and vehicle loans. For other loans, the amounts are well within the net dues to the employees and hence credit risk is taken as nil.

Accrued income - includes Dividend income from both Indian and foreign JV's/associates. Hence no credit risk is envisaged.

Deposits - represent amounts lying with customers mainly government and public sector undertakings on account of security deposits, earnest money deposits and retention money given as per contractual terms. Based on past records the risk of default is minimal.

Cash & Cash equivalents - represent cash in hand and balances lying in current accounts with various consortium banks who have high credit ratings.

Other Bank Balances - mainly represent fixed deposits having maturities up to one year and includes accrued interest on such deposits. These deposits have been taken with various public and private sector banks having the high credit ratings.

B) Liquidity risk

Liquidity risk arises from borrowings and other liablities.

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. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company's liquidity management policy involves considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining short term debt financing plans.

The company does not foresee any problems in discharging their liabilities towards trade payables and other current liabilities as and when they are falling due.

C) Market Risk

Market risk arises due to change in interest rates or foreign exchange rates.

1) Interest rate risk

The company is exposed to interest rate risk to the extent of its investments in fixed deposits with banks. The company has not invested in any other instruments except equity investments.

2) Foreign currency risk

The Company is exposed to foreign exchange risk arising from net foreign currency payables, primarily with respect to the US Dollar, GBP and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company's functional currency. The Company as per its overall strategy uses forward contracts to mitigate its risks associated with fluctuations in foreign currency and interest rates on borrowings and such contracts are not designated as hedges under Ind AS-109. The Company does not use forward contracts for speculative purposes.

The Company is also exposed to foreign exchange risk arising from net foreign currency receivables on account of dividend and other fees from its foreign subsidiaries and associates, primarily with respect to the US Dollar and AED .

The Company, as a matter of policy decided by the Board of Directors, do not enter into derivative contracts.

Note No. 45 Capital Management

The Company's capital management objectives are:

- to ensure the Company's ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of Balance Sheet.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

The Company, being a CPSE is governed by the guidelines on Capital issued from time to time by the Government of India.

1 As per Ind AS 28 -Investments in Associates and Ind AS 31 - Interests in Joint Ventures, the company has followed the equity method of accounting for all its joint ventures and associate companies. In case of PT Balmer Lawrie Indonesia, since the net worth has turned negative, hence no further consolidation is required as per IND AS.

2 None of the associates or joint ventures have been liquidated or sold during the year.Refer Note no.42.19 of the Standalone notes to accounts.

1

Effective 08.08.2022, BLUAE acquired 100% of the issued share capital of Elegant Industries LLC which is a limited liability company registered at UAE and its financials are merged with BLUAE.