1.1 (a) Fixed Deposit with bank amounting to Rs.1.37 lakhs (Rs. 2.12
 lakhs) are lodged with certain authorities as security.
 
 (b) Conveyance deeds of certain land costing Rs. 1,733.57 lakhs (Rs.
 1,770.94 lakhs) and buildings, with written down value of Rs. 1,672.90
 lakhs (Rs. 1,461.51 lakhs) are pending registration / mutation.
 
 (c) Certain buildings & sidings with written down value of Rs. 4,237.88
 lakhs (Rs. 4,173.24 lakhs) are situated on leasehold/ rented land. Some
 of the leases with Kolkata Port trust have expired and are under
 renewal. Action has been taken for finalising the agreements with
 Kolkata Port Trust for renewal of such pending cases.
 
 1.2 Contingent Liabilities as at 31st March, 2011 not provided for in
 the accounts are:
 
 (a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service
 Tax amounting to Rs. 6,952.14 lakhs (Rs. 6,498.63 lakhs) against which
 the Company has lodged appeal/petition before appropriate authorities.
 Details of such disputed demands as on 31st March, 2011 are given in
 Annexure – A.
 
 (b) Claims against the company not acknowledged as debts amounts to Rs.
 710.47 lakhs (Rs. 721.76 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
 
 (c) Bills discounted with banks Rs. 108.85 Lakhs (Rs. 75.77 Lakhs).
 
 1.3 Counter guarantees given to Standard Chartered Bank, Bank of
 Baroda, HSBC, State Bank of India and Indusind Bank in respect of
 guarantees given by them amounts to Rs. 9,493.19 lakhs (Rs. 3,578.24
 lakhs).
 
 1.4 Estimated amount of contract remaining to be executed on Capital
 Accounts and not provided for [ net of advances paid – Rs. 195.92 lakhs
 (2009-10 Rs. 55.41 lakhs)] amounted to Rs. 1,405.25 lakhs (Rs. 1,562.90
 lakhs).
 
 1.5 The amount of exchange difference credited to Profit & Loss
 account is Rs. 41.79 lakhs (Rs. 238.35 lakhs).
 
 1.6 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.
 
 1.7 Particulars in respect of goods manufactured: 
 
 1.7 (a) Capacity and Production:
 
 (i) Under the Industrial Policy Statement dated 24th July, 1991 and the
 notifications issued there under, no licensing is required for the
 Company''s products.
 
 (ii) Installed Capacities are as certified by the Management.
 
 1.8 Research and Development expenditure charged to Profit & Loss
 Account during the year 2010-11 amounts to Rs. 352.22 lakhs (Rs. 323.62
 lakhs).
 
 1.9 Excess Income Tax provision in respect of four earlier years
 amounting to Rs. Nil lakhs (Rs. 1,976.30 Lakhs) has been set- off with
 the current year''s provision.
 
 1.10 A major irregularity in the accounts of Transafe Services Limited
 (TSL), a joint venture company promoted by the Company in 1991, was
 detected during the financial year 2009-10 leading to its accounts for
 the year 2009-10 showing substantial loss after incorporation of
 rectification entries. TSL is operating primarily in the Logistics
 sector, where the long term prospects are bright. However, the Company,
 following the policy of conservative accounting, had during the year
 2009-10 provided Rs. 1165.12 lakhs, being the full value of investments
 in equity share capital of TSL in terms of Accounting Standard - 13
 Accounting for Investments towards diminution in value. During the
 year 2010- 11, a Corporate Debt Restructuring Scheme (CDR) for TSL was
 approved by its bankers, pursuant to which, the Company has invested
 Rs. 1330 lakhs (comprising conversion of loan of Rs. 730 lakhs given in
 earlier years and fresh infusion of Rs. 600 Lakhs in Preference Shares)
 in 1.33 crores Cumulative Redeemable Preference Shares of Rs. 10 each
 of TSL.
 
 1.11 Operations at the Lube Blending Plant at Taloja remain suspended
 since 2006-07 due to unremunerative orders.
 
 1.12 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.
 
 1.13 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 and Long Service Awards 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.
 
 1.14 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 except as is disclosed in 14.22 below.
 
 1.15 Related Party Disclosure
 
 i) Name of Related Party Nature of Relationship
 
 Balmer Lawrie Investments Ltd.  Holding Company
 
 Balmer Lawrie (U.K.) Ltd.  Wholly owned Subsidiary
 
 Transafe Services Ltd.  Joint Venture
 
 Balmer Lawrie - Van Leer Ltd.  Joint Venture
 
 Balmer Lawrie (UAE) Llc.  Joint Venture
 
 Avi - Oil India (P) Ltd.  Joint Venture
 
 Proseal Closures Ltd.  Subsidiary of Balmer Lawrie Van Leer Ltd.
 
 PT Balmer Lawrie Indonesia Joint Venture of Balmer Lawrie (UK) Ltd.
 (w.e.f. 15-02-2010)
 
 Shri S K Mukherjee, Managing Director Key Management Personnel
 
 Shri P Radhakrishnan, Director (Services Businesses) Key Management
 Personnel ( Till 31-12-2009 )
 
 Shri V N Sharma, Director (Manufacturing Businesses) Key Management
 Personnel
 
 Shri K Subramanyan, Director(Finance) Key Management Personnel
 
 Shri V Sinha, Director (Services Businesses) Key Management Personnel (
 w.e.f. 14-06-2010 )
 
 1.16 Segment Reporting
 
 Information about business segment for the year ended 31st March, 2011
 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.
 
 1.17 Earnings per Share
 
 (i) Earnings per share of the company has been calculated considering
 the Profit after Taxation of Rs. 12,108.85 lakhs (Rs. 11,729.20 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. 74.35 ( Rs. 72.02)
 
 The Company''s proportionate share of the estimated amount of contracts
 remaining to be executed on Capital Accounts relating to the Joint
 Venture Companies and not provided for in their respective financial
 statements amounts to Rs. 134.88 lakhs (Rs. 220.02 lakhs).
 
 The aggregate amounts of each of the assets, liabilities, income and
 expenses related to the interests in the Joint Venture companies are as
 follows :-
 
 Assets – Rs. 39,315 lakhs (Rs. 40,682 lakhs)
 
 Liabilities – Rs. 30,029 lakhs (Rs. 31,264 lakhs)
 
 Income – Rs. 35,998 lakhs (Rs. 37,060 lakhs)
 
 Expense – Rs. 35,287 lakhs (Rs. 37,129 lakhs )
 
 1.18 Miscellaneous Expenses shown under General Expenditure
 (Schedule 12) do not include any item of expenditure which exceeds 1%
 of the total revenue.
 
 1.19 (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.