Page 187 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Standalone Financial Statements

Note No. : 17 Other equity (contd.)

Foot notes:
i) Capital reserves comprise of reserve arising consequent to business combination in earlier years, in accordance with applicable
accounting standard and in terms of the relevant scheme sanctioned by the Court.

ii) Capital redemption reserve is created consequent to redemption of preference share capital and buy back of equity shares. This reserve
shall be utilised in accordance with the provisions of the Act.
iii) Securities premium is used to record the premium on issue of shares. This reserve is being utilised in accordance with the provisions of
the Act.
iv) The share options outstanding account is used to record the value of equity-settled share based payment transactions with employees
under its employee share option plan. The amounts recorded in share options outstanding account are transferred to securities
premium upon exercise of stock options by employees.
v) The general reserve represents amount transferred out of the profits of the Company and reserve aggregating to H 4224.23 lacs
(Previous year: H 4224.23 lacs) arising consequent to business combination in earlier years, in accordance with applicable accounting
standard and in terms of the relevant scheme sanctioned by the Court. It is not earmarked for any specific purpose.
vi) The storage fund for molasses has been created to meet the cost of construction of molasses storage tank as required under Uttar
Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974. During the previous year ended 31st March, 2019, H 139.17 lacs was utilized from
the fund and credited to the Statement of Profit and Loss in the year of utilization. The said storage fund is represented by investment
in the form of fixed deposits with banks amounting to H 99.77 lacs (Previous year: H 47.70 lacs).
vii) Retained earnings represents the undistributed profit / amount of accumulated earnings of the Company.
viii) Other Comprehensive income (OCI) represents the balance in equity relating to re-measurement gain/(loss) of defined benefit
obligation and gain or loss on non-current equity investments. This would not be re-classified to Statement of Profit and Loss.

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