Page 223 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Standalone Financial Statements

Note No. : 36 Other disclosures (contd.)
13. The Company has adopted Ind AS 116 ‘Leases’ with effect from 1st April, 2019 and applied the Standard to lease contracts existing on
1st April, 2019 using the modified retrospective method , and therefore, comparatives for the year ended 31st March 2019 have not
been restated.
Consequent to this, such assets have been recognised as “Right-of-use” assets and have been amortized over the term of the lease.
Further, finance cost in respect of corresponding lease liabilities has been measured and considered in these financial statements.
The Company’s lease asset class primarily consist of leases for land. The Company has entered into various agreements in respect
of land under lease arrangements. The lease agreements include renewal and escalation clause and do not provide the Company a
right to sub-lease. For most of the lease agreements, original lease term is 30 years subject to maximum of 90 years from the date of
inception.
The following is the summary of practical expedients elected on initial application:
(i) Applied the practical expedient to the transactions previously identified as leases under Ind AS 17.
(ii) Applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease term on the
date of initial application.
Pursuant to the said transition, the Company has re-classified its leased assets as Right-of-use (“ROU”) assets. Disposals / deductions
/ adjustments during the year ended 31st March 2020 as shown under Note No. 4 – Property, plant and equipment include
reclassification with respect to Right-of-use asset with corresponding increase of such assets being shown under Additions /
reclassification during the year.

Depreciation charge for Right-of-use assets is included under depreciation and amortization expense in the Statement of Profit and
Loss.
Further, to above, the Company has certain lease arrangement on short term basis, expenditure on which has been recognised under
line item “Rent” under Other expenses.
The effect of adoption of Ind AS 116 ‘Leases’ is not material on the profit before tax, profit for the year and earnings per share.
The details of the contractual maturities of lease liabilities as at 31st March, 2020 on an undiscounted basis have been disclosed
under Note No. 36(20)(c ).

Movement in lease liabilities :
Particulars (H in Lacs)
Balance as at 1st April, 2019 -
Addition to lease liabilities 232.39
Finance cost accrued during the year 16.31
Payment of lease liabilities 8.32
Balance as at 31st March, 2020 240.38
- Non-current 223.75
- Current 16.63
14. Disclosure under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The Company has neither given any loan nor has advanced any amount either during the year ended 31st March, 2020 or year ended
31st March, 2019. Hence, the requirements under the said Schedule is not applicable to the Company and no information is required
to be disclosed.
15. Details of Investments covered under section 186 (4) of the Companies Act, 2013 :
Details of investments made are given under the respective note.

Annual Report 2019-20 | 221