Page 191 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Standalone Financial Statements

Note No. : 18 Borrowings (contd.)

Nature of securities :
a) Working capital loans from SBI are secured / to be secured:

i) by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets
including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with HDFC, ICICI,
Kotak and BOB.
ii) by way of exclusive hypothecation of entire current assets of all the Cogeneration units of the Company.
iii) by way of third charge on immovable and movable properties (excluding current assets and book debts), both present and
future, of all the ten sugar units of the Company on pari passu with HDFC.
During the year Company has appointed Security Trustee for custody of the title deeds of immovable properties of all the ten
sugar units of the Company. At present title deeds of eight sugar units has been handed over and accordingly charge has been
created.
b) Working capital loans from HDFC are secured / to be secured (except as given in (c ) below)
i) by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets
including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with SBI, ICICI,
Kotak and BOB.
ii) by way of third charge on immovable and movable properties (excluding current assets and book debts), both present and
future, of all the ten sugar units of the Company on pari passu with SBI.
During the year Company has appointed Security Trustee for custody of the title deeds of immovable properties of all the ten
sugar units of the Company. At present title deeds of eight sugar units has been handed over and accordingly charge has been
created.
c) Working Capital Loan from HDFC amounting to H Nil (Previous Year: H 38762.94 lacs) under the Scheme for extending Soft Loans to
Sugar Mills by Central Government was secured by first charge, by way of hypothecation of movable fixed assets, both present and
future, pertaining to nine sugar units of the Company viz. Balrampur, Babhnan, Tulsipur, Haidergarh, Akbarpur, Mankapur. Kumbhi,
Gularia and Maizapur and was further secured by way of hypothecation of movable fixed assets, both present and future, pertaining
to three distillery units of the Company viz. Balrampur, Babhnan and Mankapur. The said amount has been fully repaid during the
year and charge has been duly satisfied.
d) Working capital loans from ICICI are secured:
i) by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets
including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with SBI, HDFC,
Kotak and BOB.
e) Working capital loans from Kotak are secured:
i) by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets
including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with SBI, HDFC,
ICICI and BOB.
f) Working capital loans from BOB are secured:
i) by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets
including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with SBI, HDFC,
ICICI and Kotak.

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