Page 245 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Consolidated Financial Statements

Note No. : 1 Corporate information
The consolidated financial statements comprise financial statements of Balrampur Chini Mills Ltd. (”BCML” or “Company” or “the Parent”) and
its two associates; Visual Percept Solar Projects Pvt. Ltd. (“VPSPPL”) and Auxilo Finserve Pvt. Ltd. (“AFPL”).
Balrampur Chini Mills Limited (”BCML” or “Company”) having Corporate Identity Number (“CIN”) L15421WB1975PLC030118 is a public limited
company incorporated and domiciled in India and has its registered office situated at FMC Fortuna, 2nd Floor, 234/3A, AJC Bose Road, Kolkata
– 700020, West Bengal, India.
Company’s shares are listed on the BSE Ltd. and National Stock Exchange of India Ltd.
The Company is one of the major integrated sugar manufacturing companies in India. The principal activity of the Company is manufacturing
and sale of sugar. Besides this, the allied business activities of the Company primarily consists of manufacturing and sale of Ethanol, Ethyl
Alcohol, generation and sale of Power and manufacturing and sale of agricultural fertilizers.
The consolidated financial statements for the year ended 31st March, 2020 were approved for issue by the Board of Directors of Company on
23rd June, 2020 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

Note No. : 2 Significant accounting policies
2.1 Basis of preparation and consolidation
2.1.1 Basis of preparation
These consolidated financial statements have been prepared under Indian Accounting Standards (“Ind AS”) prescribed under Section
133 of the Companies Act, 2013 (“Act”) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from
time to time) under historical cost convention on an accrual basis, except certain financial instruments and biological assets which are
measured in terms of relevant Ind AS at fair value/cost, other relevant provisions of the Act (to the extent notified).
All “Ind AS” issued and notified till the consolidated financial statements are approved for issue by the Board of Directors have been
considered in preparing these consolidated financial statements.
Accounting policies have been consistently applied except where a newly issued “Ind AS” is initially adopted or a revision to an existing
“Ind AS” requires a change in the accounting policy hitherto in use.
All the assets and liabilities (other than deferred tax assets/liabilities) have been classified as current or non-current as per Company’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. The operating cycle is the time between
the acquisition of assets for processing and their realization in cash or cash equivalents. Company has ascertained its operating cycle
as 12 months for current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are considered as non-
current.
The items included in the consolidated financial statements (including notes thereon) are measured using the currency of the primary
economic environment in which Company operates (“the functional currency”) and are, therefore, presented in Indian Rupees (“INR” or
“Rupees” or “Rs.” or “ H ”). All amounts disclosed in the consolidated financial statements including notes thereon have been rounded
off to the nearest Lacs.
2.1.2 Basis of consolidation
The consolidated financial statements have been prepared in accordance with the principles laid down in Ind AS 110 on Consolidated
Financial Statements and Ind AS 28 on Accounting for Investments in Associates and Joint Ventures.
The Company’s investments in its associates are accounted for using the equity method. Under the equity method, the investment
in associates is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Company’s
share of net assets of the associate since the acquisition date. If the Company’s share of the net fair value of the investee’s identifiable
assets and liabilities exceeds the cost of the investment, any excess is recognised directly in Equity as capital reserve in the period in
which the investment is acquired. Goodwill, if any, relating to the associate is included in the carrying amount of the investment and is
not tested for impairment.
The consolidated statement of profit and loss reflects the Company’s share of the results of operations of the associates. Any change
in other comprehensive income of investee is presented as part of the Company’s other comprehensive income. In addition, when
there has been a change recognised directly in the equity of the associates, the Company recognises its share of any changes, when

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