Page 219 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Standalone Financial Statements

Note No. : 36 Other disclosures (contd.)
(b) Co-generation

The co-generation segment of the Company principally generates revenue from sale of power to distribution companies.
Power is supplied to distribution companies from the Company’s facility in accordance with the sale price, payment terms and other
conditions as per the Power Purchase Agreements (“PPA”).
(c) Distillery

The distillery segment of the Company principally generates revenue from sale of industrial alcohol which mainly constitutes ethanol
sold under contracts with Oil Marketing Companies (“OMCs”) and other products to institutional buyers.

For sale of ethanol under contracts with OMCs, sale price is pre-determined based on Expression of Interest (“EOI”)/ TENDER floated from
OMC’s. The prices are on delivered cost basis at OMC’s locations inclusive of all duties / levies/ taxes/ charges etc. Payment terms is within
21 days after delivery of material and submission of original invoices.
Other products like Rectified Spirit, ENA, SDS etc. are sold on bulk basis to institutional buyers on Ex-factory/ Delivered cost basis as per
agreed terms. Revenue is recognised when goods have been shipped to the buyers’ specific location as per agreed terms (as the case
may be). The payments terms are fixed as per Company’s credit policy which is up-to 45 days.

(d) Others
Other segment principally generates revenue from sale of agricultural fertilizers such as soil conditioner, granulated potash etc.
Agricultural fertilizers such as soil conditioner, granulated potash etc. are sold to customers on ex-factory/ delivered cost basis as per
agreed terms. Revenue is recognised when the goods have been shipped to the buyers’ specific location as per agreed terms (as the case
may be). The payments terms are fixed as per Company’s credit policy which is up-to 60 days.
(ii) Disaggregated revenue information have been given along with segment information [Refer Note No. 36(12)(c )].
12. Segment information

(a) The Managing Director has been identified as the Company’s chief operating decision-maker (CODM) as defined by Ind AS 108 –
Operating Segments. The Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based
on an analysis of various performance indicators by Business segments. The CODM of the Company evaluates the segments based on
their revenue growth, operating income and return on capital employed. No operating segments have been aggregated in arriving at
the Business Segment of the Company.
Management has determined the operating segments based on the information reviewed by the CODM for the purpose of allocating
resources and assessing performance. The Company has identified three business segments viz. Sugar, Co-generation and Distillery and
presented the same in the financial statements on a consistent basis. Revenue and expenses have been identified to a segment on the
basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not
allocable to a segment on reasonable basis have been disclosed as “Unallocable”.
Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax related assets/ liabilities
and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “ Unallocable”.

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