Balmer Lawrie and Company

1 (a) Fixed Deposit with bank amounting to (Rs. 2.12 Lakhs) (Rs.
 0.95 lakhs) are lodged with certain authorities as security.
 
 (b) Conveyance deeds of certain land costing Rs. 1,807.80 Lakhs
 (Rs.1,844.67 lakhs) and buildings, with written down value of Rs.
 113.94 Lakhs (Rs. 117.13 lakhs) are pending registration / mutation.
 
 (c) Certain buildings & sidings with written down value of Rs. 4,157.90
 Lakhs (Rs.3,655.07 lakhs) are situated on leasehold/rented land.
 
 2 Contingent Liabilities as at 31st March, 2009 not provided for in
 the accounts are:
 
 (a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service
 Tax amounting to Rs. 6,101.52 lakhs (Rs. 2,275.79 lakhs) against which
 the Company has lodged appeal/petition before appropriate authorities.
 Details of such disputed demands as on 31st March, 2009 are given in
 Annexure – A.
 
 (b) Claims against the company not acknowledged as debts amounts to
 Rs.697.48 lakhs (Rs. 756.38 lakhs) in respect of which the Company has
 lodged appeals/petitions before appropriate authorities. In respect of
 employees/ex-employees related disputes financial effect is
 ascertainable on settlement ;
 
 3 Counter guarantees given to Standard Chartered Bank, Bank of
 Baroda, Canara Bank, HSBC, State Bank of India, United Bank of India
 and Indusind Bank in respect of guarantees given by them amounts to Rs.
 4,290.27 Lakhs (Rs. 4,067.37 lakhs).
 
 4 Estimated amount of contract remaining to be executed on Capital
 Accounts and not provided for [net of advances paid - Rs.48.12 Lakhs
 (2007-08 Rs. 1.46 lakhs)] amounted to Rs. 1,564.85 Lakhs (Rs. 1,699.77
 lakhs).
 
 5 There are no Micro, Small and Medium Enterprises, to whom the
 Company owes dues, which are outstanding for more than 45 days at the
 Balance Sheet date.
 
 The above information has been determined to the extent such parties
 have been identified onthe basis of information available with the
 Company and relied upon by the auditors.
 
 6 The amount of exchange difference credited to Profit & Loss
 Account is Rs. (-)471.01 lakhs (Rs.145.61 lakhs).
 
 7 Confirmation letters have been issued in respect of debts, loans
 and advances and deposits of the Company but not responded to in many
 cases. Hence unconfirmed balances are subject to reconciliation and
 consequent adjustments, if any, would be determined/made on receipt of
 such confirmation.
 
 (i) Under the Industrial Policy Statement dated 24th July, 1991, and
 the notifications issued thereunder, no licensing is required for the
 Company’s products.
 
 (ii) Installed Capacities are as certified by the Management.
 
 (iii) Production of Barrels and Drums and Blended Teas do not include
 Nil Nos. (2,400 Nos.) and 83 M.T. (457 M.T.) respectively manufactured
 through outside parties.
 
 8 Research and Development expenditure charged to Profit & Loss
 Account during the year 2008-09 amounts to Rs. 271.45 lakhs (Rs. 219.53
 lakhs)
 
 9 Operations at the Lube Blending Plant at Taloja remain suspended
 since 2006-07 due to unremunerative orders.
 
 10 The amount of Excise Duty deducted from the amount of ‘‘Sales -
 Manufactured Goods’’ is relatable to Sales made during the period and
 the amount of Excise Duty recognised separately in Schedule 12 -
 ‘‘General Expenditure’’ is related to the difference between the
 closing stock and the opening stock.
 
 11 Employee Benefits
 
 Consequent to Accounting Standard 15 on Employee Benefits (Revised)
 issued by the Institute of Chartered Accountants of India being
 applicable to the Company during the year, the prescribed disclosures
 are made in Annexure B.
 
 Defined Benefit Plans/Long Term Employee benefits in respect of
 Gratuity, Leave Encashment, Long Service Awards and Leave Travel
 Assistance are recognised in the Profit & Loss Account on the basis of
 Actuarial valuation done at the year end. The details of such employee
 benefits as recognised in the financial statements are attached as
 Annexure B.
 
 12 Loans and Advances in the nature of loans to Subsidiary/Joint
 Ventures/Associates
 
 The company do not have any Loans and Advances in the nature of Loans
 provided to its subsidiary/Joint Venture Companies/Associates as at the
 year end.
 
 13. Related Party Disclosure
 
 i) Name of Related Party        Nature of Relationship
 
 Balmer Lawrie Investments Ltd.  Holding Company
 Balmer Lawrie (UK) Ltd.         Wholly Owned Subsidiary
 Transafe Services Ltd           Joint Venture
 Balmer Lawrie-Van Leer Ltd.     Joint Venture
 Balmer Lawrie (UAE) Lic.        Joint Venture
 Avi-Oil India (P) Ltd.          Joint Venture
 Proseal Closures Ltd.           Subsidiary of Balmer Lawrie-Van 
                                 Leer Ltd.
 Shri S. K. Mukherjee, 
 Managing Director              Key Management Personnel
 Shri P. Radhakrishnan, 
 Director (Services Businesses) Key Management Personnel
 Shri V. N. Sharma, Director 
 (Manufacturing Businesses)     Key Management Personnel
 Shri K. Subramanyan, 
 Director (Finance)             Key Management Personnel
 
 14 An amount of Rs. 506.99 lakhs due from State Company for Food
 Stuff Trading, Iraq against supply of Tea during the financial year
 2005-06 has been netted off with the corresponding back to back
 liability of Rs. 503.71 lakhs for procurement and supply of Tea against
 this export order with an Indian supplier and the balance amount of Rs.
 3.28 lakhs, being doubtful in nature, has been fully provided as
 doubtful as doubtful debts.
 
 15 Trade discount to the extent of Rs. 431.71 lakhs accounted for in
 the previous financial year under Miscellaneous Expenses - Discount
 (other than cash) has now been re-grouped as Trade Discount and netted
 off with sales to make it comparable with current year’s figures.
 
 16 Segment Reporting
 
 Information about business segment for the year ended 31st March, 2009
 in respect of reportable segments as defined by the Institute of
 Chartered Accountants of India in the Accounting Standard – 17 in
 respect of “Segment Reporting” is attached as Annexure - C.
 
 17 Earnings per Share
 
 (i) Earnings per share of the Company has been calculated considering
 the Profit after Taxation of Rs.10,161.37 lakhs (Rs. 8,692.67 lakhs) as
 the numerator.
 
 (ii) The weighted average number of equity shares used as denominator
 is 1,62,86,081 (1,62,86,081) and face value per share is Rs.  10.  
 
 (iii) The nominal value of shares is Rs.1,628.61 lakhs (Rs.  1,628.61
 lakhs) and the earnings per share (Basic and Diluted) for the year on
 the above mentioned basis comes to Rs. 62.39 (Rs. 53.37)
 
 18 Miscellaneous Expenses shown under “General Expenditure”
 (Schedule 12) do not include any item of expenditure which exceeds 1%
 of the total revenue.
 
 19 (a) Previous year’s figures have been re-grouped or re-arranged
 wherever so required to make them comparable with current
 year figures.
 
 (b) Figures in brackets relate to previous year.