1.15 Impairment of Non-Financial Assets
Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets. In such cases, the recoverable amount is
determined for the cash generating unit to which the asset belongs.
1.16 Borrowing Costs
Borrowings are measured at amortized cost. Fees paid on the establishment of loan facilities are
recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility
will be drawn down. To the extent there is no evidence that it is probable that some or all of the facility will
be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the
period of the facility to which it relates.
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale. Investment income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in
which they are incurred.
1.17 Income Tax
Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognised in the Statement of Profit and Loss,
except when they relate to items that are recognised in Other Comprehensive Income or directly in
equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income
or directly in equity, respectively.
(i) Current tax:
Current tax expenses are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made for the tax liability payable on taxable income after
considering tax allowances, deductions and exemptions determined in accordance with the
applicable tax rates and the prevailing tax laws.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set
off the recognised amounts and there is an intention to settle the asset and the liability on a net
basis.
(ii) Deferred tax :
Deferred income tax is recognised using the balance sheet approach. Deferred tax assets and
liabilities are recognised for deductible and taxable temporary differences arising between the tax
base of assets and liabilities and their carrying amount in financial statements, except when the
deferred tax arises from the initial recognition of goodwill, an asset or liability in a transaction that is
not a business combination and affects neither accounting nor taxable profits or loss at the time of
the transaction.
Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilised.
Deferred tax liabilities are generally recognised for all taxable temporary differences except in
respect of taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures where the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantially enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the
same taxation authority and the Company intends to settle its current tax assets and liabilities on a
net basis.
1.18 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
management of the company. The Board of Directors assesses the financial performance and position of
the Company and makes strategic decisions.
1.19 Earnings Per Share
a. Basic Earnings Per Share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year
b. Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account the after-income tax effect of interest and other financing costs associated
with dilutive potential equity shares, and the weighted average number of additional equity shares
that would have been outstanding assuming the conversion of all dilutive potential equity shares.
1.20 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/loss for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash flows.
The cash flows from operating, investing and financing activities of the Company are segregated.
1.21 Recent pronouncements
Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
31st March 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.
1.22 Events occurring after the Balance Sheet date
There were no material events other than disclosed in the financial statements after reporting date which
would require disclosure or adjustments to the financial statements as of and for the year ended 31st
March 2025.
Additional Information
i) The entire non-current and current fixed deposits with banks are restricted deposits and held by the
Banks, Stock Exchange, etc as security deposits and margin money.
' 50.00 lacs (2024: ' 50.00 lacs) with National Stock Exchange towards Capital adequacy
deposits/margins.
' 4,708.75 lacs (2024: ' 3,736.25 lacs) with Banks against various facilities provided by them.
' 7.71 lacs (2024: ' 7.71 lacs) with various VAT Departments, Mandi Samitis etc. towards security
deposits.
ii) The Security Deposits include ' 9.50 lacs (2024: ' 9.50 lacs) given to NSEL by BLB Commodities Ltd
(erstwhile wholly-owned subsidiary) is due for refund as the membership was surrendered in the
earlier year.
The Company provides gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who
are in continuous service for a period of 5 years are eligible for gratuity. The Company contributes
Gratuity liabilities to the BLB Limited Employees Group Gratuity Scheme (the Trust). Trustees administer
contributions made to the Trust and contributions are invested in schemes with the Life Insurance
Corporation of India as permitted by Indian law. The amounts recognised in the balance sheet and the
movements in the net defined benefit obligation over the year are as follows:
27 Other Statutory Information
i) In the opinion of the management, all current assets, advances and non-current investments unless
stated otherwise have a value on realization in the ordinary course of the business at least equal to
the amount at which they are stated in the books of accounts and the provision for all known
liabilities is adequate and considered reasonable.
ii) The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder.
iii) The Company has not been declared wilful defaulter by any bank or financial institution or other
lender.
iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
v) The Company has no transactions, not recorded in the books of accounts that have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.
vi) The Company has not advanced or loaned or invested funds to any other person or entity, including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner in
whatsoever by or on behalf of the Company (Ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
vii) The Company has not received any funds from any person(s) or entity(ies) including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner in
whatsoever by or on behalf of the funding party (Ultimate beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
viii) As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold,
needs to spend at least 2% of its average net profit for the immediately preceding three financial
years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting
education, promoting gender equality by empowering women, healthcare, environment
sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and
rural development projects. A CSR committee has been formed by the company as per the Act. The
funds were primarily utilized through the year on these activities which are specified in Schedule VII
of the Companies Act, 2013:
ix) Previous Year's figures have been regrouped, reclassified and rearranged wherever necessary to
conform to this year's classification.
x) During the year, HDFC Bank has sanctioned bank guarantee limits of Rs. 10,000.00 lakhs (2024 : Rs.
8,000.00 lakhs), overdraft facility (ODFD) of Rs. 1,400.00 lakhs (2024 : Rs. 1,400 lakhs) and overdraft
- intraday facility of Rs. 3,000.00 lakhs (2024 : Nil) to the Company. The said bank limits were
secured against the security of commercial space situated at Greater Noida, fixed deposits with
Bank, exclusive charge on the current assets of the Company, personal guarantees and immovable
properties owned by the managing director cum chairman of the Company & his two relatives. The
Company has utilised the said limits for the specific purposes for which it were taken.
xi) The comparative financial information of the Company for the year ended 31st March 2024,
included in these financial statements, have been audited by the predecessor auditor vide its audit
report dated 24th May 2024.
xii) Compliance with the number of layers of companies
The company does not have any layer of companies and hence no compliance is required
prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number
of Layers) Rules, 2017.
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the
reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the accounting standard.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
>1.2 Valuation Technique used to determine Fair Value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices
31.3 Fair value of Financial Assets and Liabilities measured at Amortised Cost
The carrying amounts of financial assets comprising trade receivables cash and cash equivalents, fixed
deposits with banks, security and other deposits and carrying value of financial liabilities comprising
borrowings and trade and other payables are considered to be the same as their fair values, due to their
short-term nature and covered under level 3 category.
31.4 Financial 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 Company is exposed to and how such risk were
managed.
The Company's risk management is carried out under the policies approved by the board of directors.
The board regularly reviews overall risk management, as well as policies covering specific areas,
Securities price risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.
31.5 Credit Risk Management
The risk of financial loss due to counterparty's failure to honour its obligations arises principally in
relation to transactions where the Company provides goods on deferred terms.
The Company's policies are aimed at minimising such losses, and require that deferred terms are
granted only to customers who demonstrate an appropriate payment history and satisfy
creditworthiness procedures. Individual exposures are monitored with customers subject to credit
limits to ensure that the Company's exposure to bad debts is not significant. The maximum exposure to
credit risk regarding financial assets is the carrying amount as disclosed in the balance sheet. With
respect to credit risk arising from all other financial assets of the Company, the Company's exposure to
credit risk arises from default of the counterparty, with a maximum exposure equal to the corresponding
carrying amount of these instruments.
On account of the adoption of Ind AS 109, the Company uses expected credit loss model to assess the
impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss
allowance for trade receivables. The provision matrix takes into account available external and internal
credit risk factors such as historical experience for customers. The Company's receivable are high
quality with negligible credit risk and the counter-party has strong capacity to meet the obligations and
where the risk of default is negligible or nil. Accordingly, no provision for expected credit loss is
recognised.
31.6 Liquidity Risk Management
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 and to close out market positions. Due to the dynamic nature of the underlying businesses,
Company treasury maintains flexibility in funding by maintaining availability under committed credit
lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn
borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. In
addition, the Company's liquidity management policy involves monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.
Maturities of Financial Liabilities
The table below analyse the Company's financial liabilities into relevant maturity groupings based on
their contractual maturities for:
- all non-derivative financial liabilities, and
- net settled derivative financial instruments for which the contractual maturities are essential for an
understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is not significant.
31.7 Market Risk Management
Interest Rate Risk
The Company's main risk i.e. interest rate risk arises from borrowings with variable rates, which expose
the Company to cash flow interest rate risk. During 31st March 2025 and 31st March 2024, the
Company's borrowings at variable rate were mainly denominated in '.
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates.
The long term variable interest rate borrowings are not significant and accordingly, no such sensitivity
for interest rate cash flow has been disclosed.
32 Capital Management
32.1 Risk Management
The Company's objectives when managing capital are to
- safeguard their ability to continue as a going concern, so that they can continue to provide returns
for shareholders and benefits for other stakeholders, and
- Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company issue new shares. Consistent with
others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt
(total borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance
sheet).
35 Segment information
Description of segments and principal activities
Based on the guiding principles given in Ind AS 108 on 'Operating Segments', during the year the
Company's business activity falls within a single operating segment, namely Shares, securities &
commodities which has been considered by the management to be the only reportable business
segment. The Company is primarily operating in India, which is considered as a single geographical
segment.
a) During the financial year 2018-19, M/s Balcorp Ltd, Canada has filed a Suit for Recovery with
Hon'ble Delhi High Court claiming USD 16,68,669 (Principal USD 13,02,532 and Interest USD
3,66,136.40) against the erstwhile amalgamated Wholly Owned subsidiary BLB Commodities Ltd for
alleged breach of contract for import of almonds, which was however mutually settled earlier by the
two parties. The company is contesting the same.
b) The Income Tax Department had raised a tax demand of Rs. 51.28 lacs in the case of erstwhile
amalgamated subsidiary (BLB Commodities Limited) under section 153C /144 of the Income Tax Act
1961 on 31-03-2024 for the assessment year 2013-14. However, upon disposing the writ, the
Hon'ble Delhi High Court quashed the said assessment vide its order dated 02-07-2024. The
company has filed an application with the concerned income tax authorities for the cancellation of
said tax demand.
c) The Ahmedabad VAT Department has demanded additional VAT in the case of the erstwhile
amalgamated subsidiary - BLB Commodities Ltd . The said company has challenged the said
demands in appeals filed with Gujarat VAT Tribunal, Ahmedabad and is hopeful of getting necessary
relief.
As per our report of even date attached For and on behalf of the Board
For M/s Ram Rattan & Associates
Chartered Accountants
FRN: 004472N
Brij Rattan Bagri Anshul Mehra
(Chairman and Managing Director) (Executive Director)
DIN : 00007441 DIN: 00014049
(Vaibhav Singhal)
Partner
Membership number: 525749
Dated : 20th May, 2025
Place : New Delhi Deepak Sharma Nishant Garud
UDIN : 25525749BMNTTT7438 (Chief Financial Officer) (Company Secretary)
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