Page 299 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

Notes forming part of the Consolidated Financial Statements

Note No. : 37 Other disclosures (Contd.)

with customers are as follows:
(a) Sugar
The Sugar segment of the Company principally generates revenue from manufacturing and sale of sugar and
its by-products, such as molasses, bagasse, pressmud. Domestic sales of sugar is made on ex-factory terms/agreed terms to
wholesale/institutional buyers/merchant exporters within the country. Domestic sugar sales is majorly done on advance payment
terms.
Export sales of sugar to merchant exporters are done on ex-factory /delivered basis in terms of the agreement and revenue is
recognised when the goods have been shipped to / delivered to the buyers’ specific location (as per agreed terms). The sale price
is fixed as per contracted terms and payments terms.
Molasses are sold to customers on ex-factory /delivered basis in terms of the agreement and revenue is recognised when the goods
have been shipped to / delivered to the buyer. The sale price is fixed as per contracted terms and payments terms is determined as
per Company’s credit policy which is up-to 60 days.
Bagasse and pressmud are sold generally on advance payment terms to customers on ex-factory basis in terms of the agreement
and revenue is recognised when the goods have been shipped to / delivered to the buyer.
(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. 37(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

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