1.9 Provisions, Contingent liabilities and Capital
commitments
a) Provision is recognised when there is a
present obligation as a result of a past event
and it is probable that an outflow of resources
will be required to settle the obligation in
respect of which a reliable estimate can be
made. Provision amount are discounted to
their present value where the impact of time
value of money is expected to be material.
b) Contingent liabilities are disclosed in respect
of possible obligations that arise from past
events but their existence is confirmed by the
occurrence of one or more uncertain future
events not wholly within the control of the
Company.
c) Contingent liabilities pertaining to various
government authorities are considered only
on conversion of show cause notices issued
by them into demand.
1.10 Intangible assets
a) Expenditure incurred for acquiring intangible
assets like software costing ?500,000 and
above and license to use software per item
of ?25,000 and above, from which economic
benefits will flow over a period of time, is
amortised over the estimated useful life of the
asset or five years, whichever is earlier, from
the time the intangible asset starts providing
the economic benefit.
b) Brand value arising on acquisition are
recognised as an asset and are amortised on
a straight line basis over 10 years.
c) Goodwill on acquisition is not amortised but
tested for impairment annually.
d) In other cases, the expenditure is charged to
revenue in the year in which the expenditure
is incurred.
1.11 Accounting for Research & Development
a) Revenue Expenditure is shown under
Primary Head of Accounts with the total of
such expenditure being disclosed in the Notes.
b) Capital expenditure relating to research &
development is treated in the same way as
other fixed assets.
1.12 Treatment of Grant / Subsidy
a) Revenue grant/subsidy in respect of research
& development expenditure is set off
against respective expenditure.
b) Capital grant/subsidy against specific fixed
assets is set off against the cost of those
fixed assets.
c) When grant/subsidyis received as compensation
for extra cost associated with the establishment
of manufacturing units or cannot be related
otherwise to any particular fixed assets the
grant/subsidy so received is credited to capital
reserve. On expiry of the stipulated period set
out in the scheme of grant/subsidy the same
is transferred from capital reserve to general
reserve.
d) Revenue grant in respect of organisation of
certain events is shown under Sundry Income
and the related expenses there against under
normal heads of expenditure.
1.13 Impairment of assets
An assessment is made at each Balance Sheet
date to determine whether there is an indication
of impairment of the carrying amount of the
fixed assets. If any indication exists, an asset’s
recoverable amount is estimated. An impairment
loss is recognised whenever the carrying amount
of the asset exceeds the recoverable amount.
The recoverable amount of an asset or a cash¬
generating unit is the higher of its fair value less
costs to sell and its value in use.
Value in use is the present value of the future
cash flows expected to be derived from an asset
or cash-generating unit using an appropriate
discount factor.
1.14 Income taxes
Tax expense recognized in profit or loss
comprises the sum of deferred tax and current
tax not recognized in other comprehensive
income or directly in equity.
Current tax is payable on taxable profit,
which differs from profit or loss in the financial
statements. Calculation of current tax is based
on tax rates and tax laws that have been
enacted or substantively enacted by the end of
the reporting period.
Deferred income taxes are calculated using
the liability method on temporary differences
between the carrying amounts of assets and
liabilities and their tax bases. However, deferred
tax is not provided on the initial recognition of an
asset or liability unless the related transaction
is a business combination or affects tax or
accounting profit. Deferred tax assets and
liabilities are calculated, without discounting,
at tax rates that are expected to apply to their
respective period of realization, provided those
rates are enacted or substantively enacted by
the end of the reporting period.
Deferred tax asset (‘DTA’) is recognized for all
deductible temporary differences, carry forward
of unused tax credit and unused tax losses,
to the extent that it is probable that taxable
profit will be available against which deductible
temporary difference, and the carry forward of
unused tax credits and unused tax losses can
be utilized or to the extent of taxable temporary
differences except:
- Where the DTA relating to the deductible
temporary difference arises from the
initial recognition of an asset or liability
in a transaction that is not a business
combination; and at the time of the
transaction, affects neither accounting
profit nor taxable profit or loss.
- in respect of deductible temporary
differences arising from investments in
subsidiaries, branches and associates,
and interests in joint arrangements, to the
extent that, and only to the extent that, it
is probable that the temporary difference
will reverse in the foreseeable future; and
taxable profit will be available against which
the temporary difference can be utilized.
This is assessed based on the Company’s
forecast of future operating results, adjusted for
significant non-taxable income and expenses
and specific limits on the use of any unused tax
loss or credit.
Changes in deferred tax assets or liabilities
are recognised as a component of tax income
or expense in profit or loss, except where they
relate to items that are recognized in other
comprehensive income or directly in equity,
in which case the related deferred tax is also
recognized in other comprehensive income or
equity, respectively.
Deferred tax liabilities are not recognised for
temporary differences between the carrying
amount and tax bases of investments in
subsidiaries, branches and associates and
interest in joint arrangements where the
Company is able to control the timing of the
reversal of the temporary differences and it is
probable that the differences will not reverse in
the foreseeable future.
1.15 Leases
The Company as a lessee
The Company considers whether a contract
is, or contains a lease. A lease is defined as ‘a
contract, or part of a contract, that conveys the
right to use an asset (the underlying asset) for
a period of time in exchange for consideration’.
To apply this definition, the Company assesses
whether the contract meets three key evaluations
of whether:
a) The contract contains an identified asset,
which is either explicitly identified in the
contract or implicitly specified by being
identified at the time the asset is made
available to the Company.
b) The Company has the right to obtain
substantially all of the economic benefits
from use of the identified asset throughout
the period of use, considering its rights
within the defined scope of the contract.
c) The Company has the right to direct the use
of the identified asset throughout the period
of use.
Measurement and recognition of leases
At lease commencement date, the Company
recognises a right-of-use asset and a lease
liability. The right-of-use asset is measured at
cost, which includes the initial measurement of
the lease liability, any initial direct costs incurred
by the Company, an estimate of any costs to
dismantle and remove the asset at the end of
the lease, and any lease payments made in
advance of the lease commencement date (net
of any incentives received).
The Company depreciates the right-of-use
asset on a straight-line basis from the lease
commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end
of the lease term. The Company also assesses
the right-of-use asset for impairment when any
indicators exist.
At lease commencement date, the Company
measures the lease liability at the present value
of the lease payments unpaid at that date,
discounted using the interest rate implicit in
the lease if that rate is readily available or the
Company’s incremental borrowing rate. Lease
payments included in the measurement of the
lease liability are made up of fixed payments,
variable payments based on an index or rate,
amounts expected to be payable under a
residual value guarantee and payments arising
from options reasonably certain to be exercised.
Subsequent to the initial measurement, the
liability will be reduced for payments made
and increased for interest. It is remeasured to
reflect any reassessment or modification, or if
there are changes in fixed payments. When the
lease liability is remeasured, the corresponding
adjustment is reflected in the right-of-use asset,
or profit and loss if the right-of-use asset is
already reduced to zero.
The Company has elected to account for short¬
term leases i.e. for leases for period less than
12 months and leases of low-value i.e. value of
leased asset which is less than ?3,50,000 using
the practical expedients. Instead of recognising
a right-of-use asset and lease liability, the
payments in relation to these are recognised
as an expense in profit or loss on a straight-line
basis over the lease term. In the Balance Sheet,
right-of-use assets have been disclosed under
non-current assets and lease liabilities have
been disclosed under financial liabilities.
The Company as a lessor
The Company classifies leases as either
operating or finance leases. A lease is classified
as a finance lease if the company transfers
substantially all the risks and rewards incidental
to ownership of the underlying asset to the
lessee, and classifies it as an operating lease if
otherwise.
1.16 Revenue recognition
Revenue towards satisfaction of a performance
obligation is measured at the amount of
transaction price (net of variable consideration)
allocated to that performance obligation.
Sale of goods
When the control over goods is transferred to
the buyer and no significant uncertainty exists
regarding the amount of consideration that is
derived from the sale of goods.
Services rendered
a) When control over the service rendered in
full or part is recognized by the buyer and no
significant uncertainty exists regarding the
amount of consideration that is derived from
rendering the services.
b) In case of project activities: As per the
percentage of completion method after
progress of work to a reasonable extent for
which control can be transferred to the buyer.
c) In cases where the Company collects
consideration on account of another party,
it recognises revenue as the net amount
retained on its own account.
Other income
a) Interest on a time proportion basis using the
effective Interest rate method
b) Dividend from investments in shares on
establishment of the Company’s right to
receive.
c) Royalties are recognised on accrual basis in
accordance with the substance of the relevant
agreement
d) Export incentives are recognised as income
only at the time when there is no significant
uncertainty as to its measurability and ultimate
realisation.
For determining the transaction price, the
Company measures the revenue in respect of
each performance obligation of a contract at its
relative standalone selling price.
The company accounts for volume discounts
and pricing incentives to a buyer as a reduction
of revenue based on the ratable allocation of the
discounts/incentives to each of the underlying
performance obligation that corresponds to
the progress by the buyer towards earning the
discount/ incentive.
Term of returns, refunds etc. are agreed with the
buyers on a case to case basis upon mutually
accepted terms and conditions. The impact of
returns and refunds is negligible on the turnover
of the company.
As a practical expedient, as given in Ind AS 115,
the Company has not disclosed the remaining
performance obligation related disclosures for
contracts where the revenue recognized from
the satisfaction of the performance obligation
corresponds directly with the value to the
customer of the entity’s performance completed
to date especially in relation to those contracts
where invoicing is on time and material basis.
Significant payment terms:
Payment is generally received either in cash or
based on credit terms. Credit terms are agreed
to with the buyers and is generally in line with
the respective industry standards.
1.17 Borrowing Costs
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. Other Borrowing Costs are recognised as
expense in the period in which they are incurred.
1.18 Cash Flow Statement
Cash Flow Statement, as per Ind AS - 7, is
prepared using the indirect method, whereby
profit 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 items 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.
1.19 Employee Benefits
(i) Short term obligations
Liabilities for wages and salaries including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised
at the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligation in balance sheet.
(ii) Post-employment obligations
Defined Contribution Plans
Provident Fund: the company transfers
provident fund contributions to the trust
registered for maintenance of the fund and
has no further obligations on this account.
These are recognised as and when they are
due.
Superannuation Fund (SAF): the company
contributes for eligible employees, a sum
equivalent to 9% and 8% for Executives and
Officers, respectively of salary, to the fund
administered by the trustees and managed
by Life Insurance Corporation of India (LIC)
(for eligible optees for LIC managed scheme)
or to the fund administered and managed by
the NPS Trust (for balance eligible optees for
NPS managed scheme). The company has no
further obligations on this account. These are
recognised as and when they are due.
Defined Benefit Plans
Gratuity and Post Retirement Benefit plans
- The defined benefit obligation is calculated
annually by actuary using the projected unit
credit method. Re-measurement gains and
losses arising from experience adjustments
and changes in actuarial assumptions are
recognised in the period in which they occur,
directly in other comprehensive income.
They are included in retained earnings in
the statement of changes in equity. Changes
in present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in
profit or loss as past service cost.
(iii) Other long term employee benefit
obligations
The liabilities for leave encashment and
long service awards are not expected to be
settled wholly within 12 months after the end
of the period in which the employees render
the related service. They are measured
annually by actuary using the projected unit
credit method. Re-measurement as a result
of experience adjustments and changes in
actuarial assumptions are recognised in the
period in which they occur in profit or loss.
1.20 Prior period Items
Material prior period items which arise in the
current period as a result of error or omission
in the preparation of prior period’s financial
statement are corrected retrospectively in the
first set of financial statements approved for
issue after their discovery by:
a) restating the comparative amounts for the prior
period(s) presented in which the error occurred;
or
b) If the error occurred before the earliest prior
period presented, restating the opening
balances of assets, liabilities and equity for the
earliest prior period presented.
c) The value of error and omission is construed to
be material for restating the opening balances
of assets and liabilities and equity for the
earliest prior period presented if the amount in
aggregate for all cases of prior period income/
expenses exceeds 1% of the revenue from
operations of the previous year.
d) Retrospective restatement shall be done
except to the extent that it is impracticable to
determine either the period specific effects or
the cumulative effect of the error. When it is
impracticable to determine the period specific
effects of an error on comparative information
for one or more prior periods presented, the
company shall restate the opening balances of
assets, liabilities and equity for the earliest prior
period for which retrospective restatement is
practicable (which may be the current period).
1.21 Earnings per share
Basic earnings per share are calculated by
dividing the net profit or loss (excluding other
comprehensive income) for the year attributable
to equity shareholders by the weighted average
number of equity shares outstanding during
the year. The weighted average number of
equity shares outstanding during the year is
adjusted for events such as bonus issue, share
splits or consolidation that have changed the
number of equity shares outstanding without a
change in corresponding change in resources.
For the purpose of calculating diluted earnings
per share, the net profit or loss (excluding
other comprehensive income) for the year
attributable to equity shareholders and the
weighted average number of equity shares
outstanding during the year are adjusted for the
effects of dilutive potential equity shares.
Nature and Purposes of Reserves within Other Equity
Securities Premium
Securities Premium represents premium received on issue of shares. This shall be utilised in accordance with the provisions of the
Companies Act, 2013.
General Reserve
General Reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation purposes.
Retained Earnings
Retained Earnings are the portion of company's net income that is left out after distributing dividends to shareholders. These are kept aside
by the company for reinvesting it in the main business.
Other Comprehensive Income Reserve (OCI)
(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive
income. These changes are accumulated within the Fair Value through Other Comprehensive Income (FVOCI) equity investments reserve
within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
(ii) The Company has recognised remeasurement benefits on defined benefits plans through Other Comprehensive Income.
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 ? 1288.99 Lakhs (? 1259.75 Lakhs); Superannuation fund/NPS ? 771.60 Lakhs (? 751.48 Lakhs ) and contribution
to Employee State Insurance Scheme for the year aggregated to ? 0.07 Lakhs (? 0.13 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) Extension and termination options
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 ?2,085.53 Lakhs (?2,142.51 Lakhs) are pending
registration/mutation.
(b) Conveyance deeds of certain buildings with written down value of ?4,135.69 Lakhs (?3,814.28 Lakhs) are pending registration/
mutation.
(c) Certain buildings & sidings with written down value of ?11,403.60 Lakhs (?11,584.45 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:
42.3 Contingent Liabilities as at 31st March, 2026 not provided for in the accounts are:
(a) Disputed demand for Excise Duty, Sales Tax, Service Tax, Cess, GST and Income Tax, as applicable, amounting to ?11,950.54
Lakhs (?10,876.22 Lakh) against which the Company has lodged appeals/petitions before appropriate authorities. Details of such
disputed demands as on 31st March, 2026 are given in Annexure - A.
(b) Claims against the company not acknowledged as debts amounts to ? 616.79 Lakhs (? 455.90 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) The Company has issued Corporate Guarantee on behalf of its Subsidiary Company, Visakhapatnam Port Logistics Park Limited
(VPLPL), in respect of the term loan of ?7,650.00 lakhs from Power Finance Corporation Ltd. The Subsidiary Company has repayed 3
Nos of principal installments within the scheduled timeline as on 31st March 26.
(d) BSE Ltd. & NSE Ltd. has been imposing fines on the Company on quarterly basis for non-compliance of provisions of SEBI LODR
Regulations 2015 pertaining to composition of Board of Directors and the composition of some Board level Committees. Suitable
request has been made by the Company to BSE Ltd. & NSE Ltd. for waiver of these fines. The amount of cumulative fine from June
2021 to December 2025 is ? 197.69 Lakhs (? 130.54 Lakhs) as at 31st March 2026 (31st March 2025) based on notices received
till 31.03.2026 from BSE Ltd. & NSE Ltd. excluding waiver received. The Company being a Government Company, the compliance
regarding composition of directors is not within the control of the Company but as per directions of the Administrative Ministry.
42.4 Counter Guarantees and Letter of Credit given by banks as on 31.03.2026 are as below:
(a) Counter guarantees given to Standard Chartered Bank, Bank of Baroda, Canara Bank, Yes Bank, HDFC, Indusind Bank and Axis
Bank in respect of guarantees given by them amounts to ? 12,802.95 Lakhs (?9,424.38 Lakhs).
(b) Letter of Credit issued amounts to ? 0 Lakhs (?260.25 Lakhs).
42.5 Estimated amount of contract remaining to be executed on Capital Accounts and not provided for amounted to ?4,443.57 Lakhs
(?2,227.41 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 2025-26 ? 2,435.24 Lakhs (?1,995.75 Lakhs).
(b) The interest due thereon remaining unpaid to any supplier at the end of accounting year 2025-26 ?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 2025-26 ? Nil (?Nil).
(d) The amount of payment made to the supplier beyond the appointed day during the accounting year 2025-26 ?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 2025-26 ?Nil (?Nil).
(f) The amount of interest accrued and remaining unpaid at the end of accounting year 2025-26 ?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 2025-26 ?Nil (?Nil).
42.7 The gross amount of exchange difference credited to the Statement of Profit & Loss is ?543.28 Lakhs (?317.78 Lakhs) and the gross
amount of exchange difference debited to the Statement of Profit & Loss is ?349.13 Lakhs (?138.29 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.
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 ?37.80 Lakhs (?52.47 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 a) Visakhapatnam Port Logistics Park Limited (VPLPL), a subsidiary, where the Company holds 60% of the equity capital has
been facing teething problems since the start of operations in the second half of 2019 and is going through stabilization phase
which has been further heightened by impact of Covid-19 and delayed receipt of Container Freight Service (CFS) license
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. Restructured Bank term loan from SBI has also been re-financed through Power
Finance Corporation Limited (PFCL) during FY 24-25 with a moratorium of one year and favourable repayment schedule. The
Company has also issued Corporate Guarantee to PFCL towards infusing funds for meeting any shortfall in debt servicing
of the loan facility during the entire tenure of the loan. The Subsidiary Company has repayed 3 Nos of principal installments
within the scheduled timeline as on 31st March 26.
Though the business is steady, 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 subsidiary by almost 73 % as on 31st March 2026.
The management while continuing to be hopeful of a turnaround in its performance in the coming future, has decided to make
an additional provision of ?1,015.25 lakhs during FY 2025-26 on its investment in VPLPL as a matter of abundant precaution
and accounting prudence.
b) The company has recognized the Initial Fair Value of Financial Guarantee of Rs. 772.72 Lakhs as deemed Investment in
VPLPL with a corresponding liability recorded as Financial Guarantee Obligation under Note no. 20 & 25. The company has
amortized an amount of Rs. 77.27 Lakhs in the current financial year as other Income. The carrying value of the financial
liability as at 31st March 26 stands at Rs. 695.45 Lakhs.
42.34 The additional notes to accounts for the year ended 31.03.2026/ 31.03.2025
(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 willful 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
On November 21,2025, the Government of India notified provisions of four 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 Code,
2020, subsuming twenty-nine existing labour laws into a unified framework governing employee benefits during employment and
post-employment. The Labour Codes, amongst other things introduce changes, including a uniform definition of wages. The Rules
for the corresponding codes have been published on May 8, 2026. The Company has assessed the financial implications of these
changes, which has resulted in increase in gratuity liability arising out of past service cost by ?368.09 lakhs. The Company continues
to monitor the developments pertaining to Labour Codes and will evaluate impact, if any, on the measurement of the employee benefit
liability.
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 in its books.
42.37 Ind AS 36, Impairment of Assets, requires the company to test for impairment at each reporting date where there exist conditions
which indicate that the asset may be impaired. AMTZ Vizag, a unit of the Company with a dry warehouse and cold storage facility
has been incurring losses for last few years and it continues to experience challenges in achieving revenue and growth as originally
expected due to various operational constraints which are beyond the control of the Company. Accordingly, the company has carried
out an Impairment assessment of the Property, Plant & Equipment under Ind AS 36 of the unit during the current financial year. The
additional Impairment Loss of ?14.50 Lakhs (?584.05 Lakhs) resulting from the above has been disclosed as a separate line item
under Note no. 36 - Other Expenses of the financial statements.
42.38 Ind AS 36, Impairment of Assets, requires the Company to assess at each reporting date whether there are any indicators that an
asset may be impaired. SBU ROFS, engaged in providing oily sludge processing services from tanks and lagoons to the oil and gas
industry in India since 2001, has been experiencing lower operating margins over the past few years. Further, purchase preferences
accorded to MSMEs by a majority of the clientele adversely impacted the commercial viability of the business segment.
Considering the continued operational and financial challenges, the Board of Directors, in its meeting held on 15th May 2025, approved
the closure of SBU ROFS along with disposal of the related fixed assets. Accordingly, the Company engaged an independent valuer
to assess the fair value of the Property, Plant and Equipment located across various geographies. Based on the valuation report,
the Company has recognised an impairment loss of ? 806.64 Lakhs during the current financial year, which has been disclosed as a
separate line item under Note No. 36 - Other Expenses of the financial statements.
42.39 During the previous year, the Company identified a suspected fraud at its Northern Region branch involving payments made in the
earlier year to a vendor, amounting to ?190.25 Lakhs for services not received. These amounts were reflected as recoverable from
the vendor and the Company has made a provision of ?190.25 Lakhs against these amounts. Based on the internal investigation,
disciplinary proceedings have been initiated against the concerned employees which is in final stages. The management has also
deployed an external firm to scrutinise the transactions of the unit for three financial years (2022-23 to 2024-25). Due to complexities
involved, the report is taking considerable time and is near completion. In the meanwhile, further transactions aggregating to ?162.42
Lakhs related to the aforesaid period were identified during the ongoing review which based on the information available have
been considered doubtful. These amounts are reflected as recoverable from the vendor and the company has made corresponding
provisions against the same. The matter continues to be under investigation/review by the management.
42.40 During the year, the company identified suspected misuse/unauthorised redemption of Digital Loyalty coupons under the Balmerol
Connect plus Programme for SBU - Greases & Lubricants. Preliminary internal analysis indicates unauthorised redemption aggregating
to approximately ?16.56 Lakhs. The matter is under further investigation and the company has initiated remedial actions including
suspension of the application based transaction securing the Portal Data, seizure of unused physical coupons and suspension
of payment to the vendor till further review. The company has formed an internal committee for investigating the unauthorised
redemption. Based on the final report of the Internal Committee, the financial impact if any may differ from the current estimate.
42.41 (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 in these financial statements
and have the same connotation.
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