Page 210 - BCML AR 2019-20

FINANCIAL STATEMENTS

Notes forming part of the Standalone Financial Statements

Note No. : 36 Other disclosures (contd.)

Under the said scheme, HDFC Bank and ICICI Bank has disbursed Rupee Loan aggregating to H 8024.00 Lacs and H 5000.00 Lacs
respectively, during the year ended 31st March, 2020 which has been utilized for setting up of 160 KLPD distillery at Gularia unit.
Accordingly, H 125.98 Lacs (Previous Year: H Nil) has been adjusted with interest on long term borrowings. Further, a sum of H 20.47 Lacs
(Previous Year: H Nil) has been adjusted with interest on long term borrowings capitalised.

(x) Pursuant to the Sugar Industry, Cogeneration and Distillery Promotion Policy, 2013 notified by the Government of Uttar Pradesh,
the Company was eligible for re-imbursement @ 5% on the interest payable on the loans obtained from bank for setting up of new
Co-Generation unit at Kumbhi Unit. Accordingly, H Nil (Previous Year: H 109.17 Lacs) has been adjusted with interest on long term
borrowings.
During, the year ended 31st March, 2020, the Company has received H 61.27 Lacs as full and final settlement of total interest subvention
claim as against the outstanding claims receivable amounting to H 324.21 Lacs as at 31st March, 2019.
Accordingly, the Company has written off the balance amount of claims receivable aggregating to H 262.94 Lacs (Previous Year: H Nil).
(xi) The Central Government vide its Notification No. 20-90/2013-S.P.-II dated 3rd January, 2014 issued by the Ministry of Consumer Affairs,
Food and Public Distribution (Department of Food and Public Distribution) notified a Scheme for extending financial assistance to
sugar undertakings (“SEFASU 2014”) with a view to improve the liquidity position of sugar factories to clear cane price arrears of
previous sugar seasons and timely settlement of cane price of sugar season 2013-14 relating to the Fair and Remunerative Price (FRP),
the Company was eligible for interest subvention upto 12% or at actual rate charged by the banks, whichever was lower. Accordingly,
H Nil (Previous Year: H 528.54 Lacs) has been adjusted with interest on long term borrowings.
(xii) The Central Government vide its Notification No. 1(4)/2019-S.P.-I dated 2nd March, 2019 issued by the Ministry of Consumer Affairs,
Food and Public Distribution (Department of Food and Public Distribution) notified a Scheme for extending soft loan to sugar mills
with a view to facilitate payment of cane price dues of farmers for the Sugar Season 2018-19 relating to the Fair and Remunerative (FRP)
of sugarcane fixed by the Central Government for which interest subvention @ 7% would be borne by the Central Government for a
tenure of 1 year from the date of disbursement of the loan.
Under the said scheme, during the year ended 31st March 2019, HDFC Bank disbursed Rupee Loan aggregating to H 38762.94 Lacs
which was utilized for clearance of sugarcane price for sugar season 2018-19 as per the scheme. Accordingly, H 2683.67 Lacs (Previous
Year: H 29.74 Lacs) has been adjusted with interest on short term borrowings.
(xiii) The Government of Uttar Pradesh vide its Order No. - 12/2018/1698 / 46-3-18-3 (36-A) / 2018 dated 28th September, 2018 notified a
scheme for assistance to sugar mills under the Scheme for Extending Financial Assistance to Sugar Undertakings-2018 (“SEFASU 2018”),
for the purpose of clearance of sugarcane price for sugar season 2016-17 and 2017-18 as per the State Advised Price of sugarcane fixed
by the State Government.
Under the said scheme, during the year ended 31st March 2019, the State Government extended Rupee term loan to the Company
through ICICI Bank @ 5% p.a. interest for a period of 5 years aggregating to H 36508.11 Lacs which was utilized for clearance of sugarcane
price for sugar season 2017-18 as per the scheme.
Pursuant to the requirements of Ind AS 20– “Accounting for Government Grants and Disclosure of Government Assistance” and Ind
AS 109 – “Financial Instruments”, H 4051.19 Lacs was accounted for during the year ended 31st March, 2019 and included under Note
No. 20 - “Deferred income”. Accordingly, proportionate income amounting to H 1190.38 Lacs (Previous Year: H 410.41 Lacs) has been
adjusted with interest on long term borrowings.
9. Employee Benefits :
As per Ind AS - 19 “ Employee Benefits”, the disclosures of Employee Benefits are as follows:
Defined Contribution Plan :
Employee benefits in the form of Provident Fund are considered as defined contribution plan.

The contributions to the respective fund are made in accordance with the relevant statute and are recognised as expense when
employees have rendered service entitling them to the contribution. The contributions to defined contribution plan, recognised as
expense in the Statement of Profit and Loss are as under :

208 | Balrampur Chini Mills Limited