Page 165 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Standalone Financial Statements

Note No. : 1 Corporate information
Balrampur Chini Mills Limited (”BCML” or “Company”) having Corporate Identity Number (“CIN”) L15421WB1975PLC030118 is a public limited
company incorporated and domiciled in India and has its registered office situated at FMC Fortuna, 2nd Floor, 234/3A, AJC Bose Road, Kolkata
– 700020, West Bengal, India.
Company’s shares are listed on the BSE Ltd. and National Stock Exchange of India Ltd.

The Company is one of the major integrated sugar manufacturing companies in India. The principal activity of the Company is manufacturing
and sale of sugar. Besides this the allied business activities of the Company primarily consists of manufacturing and sale of Ethanol, Ethyl
Alcohol, generation and sale of Power and manufacturing and sale of agricultural fertilizers.
The financial statements for the year ended 31st March, 2020 were approved for issue by the Board of Directors of Company on 23rd June,
2020 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

Note No. : 2 Significant accounting policies
2.1 Basis of preparation
These financial statements have been prepared under Indian Accounting Standards (“Ind AS”) prescribed under Section 133 of the
Companies Act, 2013 (“Act”) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time
to time) under historical cost convention on an accrual basis, except certain financial instruments and biological assets which are
measured in terms of relevant Ind AS at fair value/cost, other relevant provisions of the Act (to the extent notified).

All Ind AS issued and notified till the financial statements are approved for issue by the Board of Directors have been considered in
preparing these financial statements.
Accounting policies have been consistently applied except where a newly issued Ind AS is initially adopted or a revision to an existing
Ind AS requires a change in the accounting policy hitherto in use.
All the assets and liabilities (other than deferred tax assets/liabilities) have been classified as current or non-current as per Company’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. The operating cycle is the time between
the acquisition of assets for processing and their realization in cash or cash equivalents. Company has ascertained its operating cycle
as 12 months for current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are considered as non-
current.
The items included in the financial statements (including notes thereon) are measured using the currency of the primary economic
environment in which Company operates (“the functional currency”) and are, therefore, presented in Indian Rupees (“INR” or “Rupees”
or “Rs.” or “H”). All amounts disclosed in the financial statements including notes thereon have been rounded off to the nearest Lacs.
2.2 Recent pronouncements
New and revised standards adopted by the Company
Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies
(Indian Accounting Standards) Second Amendment Rules, has notified “Ind AS” - 116 - Leases which replaces the existing lease standard,
“Ind AS” - 17 Leases and other interpretations and added Appendix C, Uncertainty over Income Tax Treatments to Ind AS 12 – Income
taxes.
(a) Ind AS 116 – Leases
The Company has applied “Ind AS” – 116 - Leases, with effect from 1st April 2019 under modified retrospective approach with cumulative
effect of adoption being given effect to on the date of application. Impact in this respect has been given in Note No. 36(13).
(b) Appendix C, Uncertainty over Income Tax treatments to Ind AS 12 – Income taxes have also been revised with effect from the said date.
Revision in the standard did not have any material impact on the financial statements.

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