Page 291 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Consolidated Financial Statements

Note No. : 37 Other disclosures (Contd.)
(“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 ` 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”, ` 4051.19 Lacs was accounted for during the year ended 31st March, 2019 and included under
Note No. 21 - “Deferred income”. Accordingly, proportionate income amounting to ` 1190.38 Lacs (Previous Year: ` 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 :
(` in Lacs)

Defined Contribution Plan Year Year
ended 31st ended 31st
March, 2020 March, 2019
Employer’s Contribution to Provident Fund 1098.49 947.24
Employer’s Contribution to Pension Scheme 745.34 713.21
Gratuity
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the said Act, an employee who has completed five years
of continuance service is entitled to the same. The gratuity plan provides a lumpsum payment to employees at retirement, death,
incapacitation or termination of employment. The level of benefits depends on the member’s length of service and salary at the time
of cessation of the employment contract with the Company. The fund is in the form of a trust and is governed by the Board of Trustees
who are responsible for its administration. The Company contributes ascertained liabilities towards gratuity to trust.
The following tables summarizes the components of net benefit expense recognised in the Statement of Profit and Loss, the funded
status and amounts recognised in the consolidated balance sheet for the said plan:
(a) Details of funded post retirement plans are as follows : (` in Lacs)
Sl. Particulars Year Year
No. ended 31st ended 31st
March, 2020 March, 2019
I. Expenses recognised in the Statement of Profit and Loss:
1 Current service cost 512.32 458.82
2 Net interest on the net defined benefit liability/asset 1.43 (40.17)
3 Expense recognised in the Statement of Profit and Loss 513.75 418.65

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