The percentage of shareholding changed due to the extinguishment of the equity shares bought back till 31st March, 2023 pursuant to the buyback approved at the meeting of the Board of Directors held on 9th November, 2022.

(g) The aggregate number of equity shares bought back in immediately preceding last five years ended 31st March, 2024 - 26689082 equity shares (previous period of five years ended 31st March, 2023 - 26689082 equity shares).

(h) An aggregate of 4000000 (Previous year: Nil) Employee Stock Appreciation Rights (ESARs) has been approved under the "BCML Employees Stock Appreciation Rights Plan 2023" ("ESAR 2023"/ "Plan") for grant to eligible employees of the Company. Each ESAR, when exercised, would be converted into less than one equity share of the Company with a par value of HI/- each. Refer to note no. 37(4)(b) for further disclosures.

i) Capital reserve comprise of reserve arising consequent to business combination in earlier years, in accordance with applicable accounting standard and in terms of the relevant schemes sanctioned by the Court.

ii) Capital redemption reserve has been created consequent to redemption of preference shares and buy-back of equity shares. This reserve shall be utilised in accordance with the provisions of the Act.

iii) The share options outstanding account is used to record the value of equity-settled share-based payment transactions related to rights granted by the Company to its eligible employees under the Plan.

iv) The general reserve represents profits transferred out of retained earnings of the Company from time to time and it also includes amount aggregating to H4224.23 Lakhs (Previous year: H4224.23 Lakhs) arisen consequent to business combination entered by the Company in earlier years, in accordance with the then applicable accounting standard and in terms of the relevant schemes sanctioned by the Court. It is not earmarked for any specific purpose.

v) The storage fund for molasses has been created to meet the cost of construction of molasses storage tank as required under Uttar Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974. During the year ended 31st March, 2024, H117.15 Lakhs (Previous year: H33.44 Lakhs) has been utilised from the fund and credited to the Statement of Profit and Loss. The said storage fund is represented by investment in the form of fixed deposits with banks amounting to H82.09 Lakhs (Previous year: H140.80 Lakhs).

vi) Retained earnings represent the undistributed profit or accumulated earnings of the Company. This includes net cumulative losses of H2366.99 Lakhs (Previous year: H 3170.94 Lakhs) as at the balance sheet date related to the re-measurement of the defined benefit plan resulting from experience adjustments and changes in actuarial assumptions, recognised in other comprehensive income.

vii) Other comprehensive income (OCI) represents the balance with respect to:

a) Re-measurement gains/ (losses) resulting from experience adjustments and changes in actuarial assumptions. These gains/ (losses) are recognised directly in OCI during the period in which they occur and are subsequently transferred to Retained earnings.

b) Cumulative gains/ (losses) arising from the fair valuation of non-current equity investments at fair value through other comprehensive income, net of amounts reclassified to Retained earnings when those instruments are disposed of.

a) Nature of securities for the aforesaid borrowings including current maturities of long-term borrowings [Refer note no.

18(ii)] and deferred income [Refer note no. 21]:

i) Senior, Unlisted, Rated, Redeemable, Non-convertible Debentures subscribed by debenture holder amounting to H14000.00 Lakhs (Previous year: H14000.00 Lakhs) is secured by first exclusive charge, by way of hypothecation of movable fixed assets (PPE), both present and future, pertaining to two sugar units of the Company viz. Balrampur and Babhnan.

ii) Rupee Term Loan from HDFC amounting to H11050.00 Lakhs (Previous year: H13600.00 Lakhs) under the Scheme for Extending Financial Assistance to project proponents for enhancement of ethanol capacity, is secured by pari passu first charge, by way of hypothecation of all the movable fixed assets (PPE), both present and future, pertaining to Balrampur distillery unit of the Company.

iii) Rupee Term Loan from HDFC amounting to H1504.50 Lakhs (Previous year: H3510.50 Lakhs) under the Scheme for Extending Financial Assistance to Sugar Mills for enhancement and augmentation of ethanol capacity, is secured by first charge on pari passu basis with ICICI, by way of hypothecation of all the movable fixed assets (PPE), both present and future, pertaining to Gularia distillery unit of the Company.

iv) Rupee Term Loan from ICICI amounting to H1250.00 Lakhs (Previous year: H2500.00 Lakhs) under the Scheme for Extending Financial Assistance to Sugar Mills for enhancement and augmentation of ethanol capacity, is secured by first charge on pari passu basis with HDFC, by way of hypothecation of all the movable fixed assets (PPE), both present and future, pertaining to Gularia distillery unit of the Company.

v) Rupee Term Loan from SBI amounting to H16500.00 Lakhs (Previous year: H19000.00 Lakhs) under the Scheme for Extending Financial Assistance to project proponents for enhancement of ethanol capacity, is secured by first charge, by way of hypothecation of all the movable fixed assets (PPE), both present and future, pertaining to Maizapur distillery unit of the Company.

vi) Rupee Term Loan from ICICI (Acting as an agent on behalf of Government of Uttar Pradesh), including deferred income, aggregating to H1825.41 Lakhs (Previous year: H9127.03 Lakhs) under the Scheme for Extending Financial Assistance to Sugar Undertakings, 2018, of Uttar Pradesh Government is secured by pari passu first charge, by way of hypothecation of movable fixed assets (PPE), both present and future, pertaining to seven cogen units of the Company viz. Balrampur, Babhnan, Haidergarh, Akbarpur, Mankapur, Kumbhi and Gularia.

* The Company is having favourable balance with ICICI Bank Ltd. (ICICI) at the year end and accordingly, the same has been clubbed with Balances with banks under note no. - 13 "Cash and cash equivalents".

** Refer note no. 18(i) (a) and (b) for nature of securities and terms of repayment respectively.

Nature of securities :

Working capital loans (including working capital demand loans) from banks (viz: SBI, HDFC, ICICI and KOTAK) are secured by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, molasses and other current assets including book debts, both present and future, of all the ten sugar units of the Company on pari passu basis with each of them.

In addition, working capital from SBI is secured by way of hypothecation of entire stock of grains and receivables, both present and future, of Maizapur distillery unit of the Company.

The ultimate realisation of deferred tax assets is dependent upon the generation of future taxable income. Deferred tax assets including MAT credit entitlement is recognised on management's assessment of reasonable certainty for reversal/ utilisation thereof against future taxable income.

Based on the assessment of the possible impact of the new tax regime, the Company has decided to continue with existing normal tax structure till certain deductions are available and accumulated MAT credit entitlement is substantially exhausted and thereafter, to opt for the concessional rate under new tax regime.

Footnotes:

Ý The amounts shown in (i) above represent the best possible estimates based on the available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be . Therefore, these amounts cannot be estimated accurately. The Company does not expect any reimbursement in respect of the above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the appeals/ litigations.

Ý Also refer note no.37(3)(d) for availment of remission of taxes and levies pending final decision with the Hon'ble Supreme Court on the matter and note no.37(3)(e).

Footnote:

The Board of Directors at its meeting held on 18th February, 2024 has approved an estimated investment of H200000.00 Lakhs to undertake the business of manufacturing Polylactic Acid (PLA).

Estimated amount of contracts remaining to be executed on the capital account, and not yet provided for, includes H83613.09 Lakhs (Previous year: H Nil) related to the aforesaid PLA business. Of this amount, contracts entered in foreign currency aggregates to H80032.89 Lakhs (Euro 889.20 Lakhs) (Previous year: H Nil, Euro Nil).

It is not possible to estimate the timing or uncertainties related to the utilisation or reversal of the provision for contingencies. Future cash outflows will be determinable upon the resolution of appeals. The Company does not expect any reimbursement for this provision.

(b) Contingent assets

During the normal course of business, several unresolved claims are currently outstanding. The inflow of economic benefits in respect of such claims cannot be measured due to uncertainties that surround the related events and circumstances. Also refer note no.37(3)(a), 37(3)(b) and 37(3)(c) in this respect.

3 (a) The Hon'ble High Court at Allahabad, Lucknow Bench, vide its order dated 12th February, 2019 ("Order") had quashed the

G.O. dated 4th June, 2007, vide which the Sugar Industry Promotion Policy 2004 ("SIPP") was withdrawn, and held that the petitioner companies were entitled to all the benefits for the entire period of the validity of SIPP. Consequent to this, the company, in respect of its capital projects and expansions during the period from 2004 to 2008, is entitled to the capital subsidy, reimbursement of certain expenses, remission of certain taxes and levies under the provision of the said policy.

The State Government of Uttar Pradesh and others have filed Special Leave Petitions challenging the said Order before the Hon'ble Supreme Court of India and the cases are pending for hearing as on 31st March, 2024.

Pending this, the Company's claim for reimbursement of H33654.94 Lakhs (Previous year: H33654.94 Lakhs) and capital subsidy of H13137.77 Lakhs (Previous year: H13137.77 Lakhs) pursuant to SIPP being contingent in nature, has not been recognised.

Next hearing date is scheduled for the last week of July 2024.

(b) Uttar Pradesh Electricity Regulatory Commission vide notification dated 25th July, 2019 reduced the power purchase rates of bagasse-based power plants w.e.f. 1st April, 2019 and revenue in this respect has accordingly, been recognised at such reduced rates. The Uttar Pradesh Cogen Association has filed a writ petition challenging the reduction in power rates before the Hon'ble High Court at Allahabad, Lucknow bench, which is pending for final hearing.

(c) Uttar Pradesh Excise Authorities had imposed payment of H20/- per quintal on molasses transferred, sold, or supplied for captive consumption w.e.f. 24th December, 2021 as "Regulatory Fee" under amended Section 8(4) of Uttar Pradesh Sheera Niyantran Adhiniyam, 1964. The Uttar Pradesh Sugar Mills Association and Others have filed a writ petition against the aforesaid levy before Lucknow Bench of Hon'ble High Court at Allahabad. The said Court vide its Interim Order dated 25th February, 2022 have deferred the realisation thereof pending final decision on the matter. However, the Company has continued to deposit the amount under protest and has expensed out the Regulatory Fees to the Statement of Profit and Loss.

(d) In terms of SIPP, the Company availed remission of taxes and levies, namely, Entry Tax on Sugar, Trade Tax on Molasses and Cane Purchase Tax, Stamp duty and registration charges on purchase of land aggregating to H11278.45 Lakhs (Previous year: H11278.45 Lakhs) in earlier years. These remissions were availed pursuant to protection earlier provided by the Hon'ble High Court at Allahabad, which has been confirmed pursuant to the Order of the said Court as given in note no. 37(3)(a) above.

In the assessment of Entry Tax on Sugar and Trade Tax on Molasses relating to four sugar units, namely, Akbarpur, Mankapur, Kumbhi and Gularia aggregating to H6300.63 Lakhs (Previous year: H6300.63 Lakhs) has been assessed, though these units are also eligible for the remission under the SIPP. However, no demand has been raised and pursued against the Company in view of the protection by the Hon'ble High Court as aforesaid. Since these units are eligible for incentive under SIPP and no demand has yet been raised against the Company, the aforesaid amount of H6300.63 Lakhs (Previous year: H6300.63 Lakhs) has not been considered as contingent liability.

(e) The Company has received demands for Income Tax for the Assessment Years 2017-2018 to 2021-2022 aggregating to H9611.53 Lakhs, for which necessary appeals have been filed before the Income Tax Authorities and the same are pending as on this date. Considering that the Company has favorable Order of Income Tax Appellate Tribunal on identical matter pending outcome of the appeals so filed and effect to be given thereof by the Assessing Authorities, no outflow of resources with respect to these demands are expected to arise. Accordingly, these have not been recognised and disclosed as contingent liabilities as on 31st March, 2024.

4 (a) The Board of Directors at its meeting held on 9th November, 2022 approved the buy-back of equity shares not exceeding

H14544.00 Lakhs ("Maximum Buy-back Size" excluding transaction costs and tax on buy-back) at a price not exceeding H360/-per Equity share ("Maximum Buy-back Price").

The buy-back, offered to the equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchanges, commenced on 16th November, 2022. The buy-back closed on 15th May, 2023 with no additional equity shares being bought back during the year ended 31st March, 2024.

During the year ended 31st March, 2024, the Company bought back and extinguished a total of Nil (Previous year: 2290755) equity shares at an aggregate consideration of HNil (Previous year: H8185.14 Lakhs) (excluding transaction costs and tax on buyback). Consequently, the equity share capital has been reduced by HNil (Previous year: H22.91 Lakhs), and an amount equivalent to the face value of equity shares bought back has been transferred from Retained earnings to Capital redemption reserve. The differential amount of HNil (Previous year: H8162.23 Lakhs) with respect to the aggregate consideration in excess of the face value of the equity shares bought back has been adjusted from Retained Earnings. Further, various costs incurred for the buy-back aggregating to H5.23 Lakhs (Previous year: H74.31 Lakhs) [net of tax of H2.81 Lakhs (Previous year: H39.92 Lakhs)], and the taxation on buy-back amounting to HNil (Previous year: H1893.47 Lakhs), has also been adjusted from Retained earnings.

(b) Employees Stock Appreciation Rights Plan 2023 (“ESAR 2023"/“the Plan")

BCML Employees Stock Appreciation Rights Plan 2023 ("ESAR 2023"/ "the Plan") of the Company was formulated by the Nomination & Remuneration Committee of the Board of Directors and approved by the Board of Directors of the Company at its meeting held on 21st March, 2023 and by the shareholders through Postal Ballot on 23rd April, 2023 in accordance with Section 62(1)(b) of the Companies Act, 2013 read with Regulation 6 of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 prescribed by the Securities and Exchange Board of India.

The Plan is an Employee Share-based Payment Arrangement which has been implemented to incentivise employees, align their interests with those of the shareholders, and promote enhanced performance which is accounted for in accordance with Ind AS 102 "Share Based Payment".

(i) Brief Description of the Plan:

Under the Plan, the Company shall grant Employees Stock Appreciation Rights ("ESAR") to such employees who are in permanent employment of the Company within the meaning of the Plan, including any director, whether whole-time or otherwise (other than promoters of the Company, or member of the promoter group, independent directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the Company), entitling the employees eligible for ESAR to receive in aggregate not more than 4000000 equity shares of par value of HI/- each, based on such eligibility criteria and terms and conditions as may be decided by the Nomination & Remuneration Committee of the Board of Directors.

The Plan shall be superintended and administered by the Nomination & Remuneration Committee of the Board of Directors.

(iii) Expense recognised:

The total expense arising from the employee share-based payment arrangements aggregating to H2396.04 Lakhs (Previous year: H Nil) have been recognised under "Share based payments to employees - equity settled" under note no. 31 - Employee benefits expense.

No ESARs have been exercised under the Plan during the year. Since, the Plan has been introduced during year ended 31st March, 2024; therefore, details for the previous year ended 31st March, 2023 have been excluded from the above tables.

Assumptions Risk-free rate of return:

The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the ESARs based on the zero-coupon yield curve for Government Securities.

While calculating the interest rate used as a benchmark (known as the risk-free interest rate) is chosen based on government securities. Specifically, this interest rate corresponds to a zero-coupon yield curve, which represents the yields on government securities that do not pay periodic interest and mature at the end of their term. The maturity period chosen for this interest rate matches the expected duration that the ESARs will be held before they are exercised or expire.

A zero-coupon yield curve shows the yields of zero-coupon bonds (bonds that do not make periodic interest payments) across different maturities. The curve reflects the interest rates that an investor would earn if they bought a zero-coupon bond today and held it until its maturity date.

Expected divided yield:

Expected dividend yield has been calculated as :

Dividend paid divided by market price as on the date of grant.

The method used and the assumptions made to incorporate the effects of expected early exercise:

Not Applicable

Basis of determination of expected volatility, including an explanation of the extent to which expected volatility was based on historical volatility:

The expected price volatility is determined using annualised standard deviation (a measure of volatility used in Black-Scholes-Merton option pricing) and the historic volatility based on remaining life of the ESARs.

Other features of the ESARs granted which were incorporated into the measurement of fair value, such as a market condition:

NIL

(vi) ESARs granted to Senior managerial personnel as defined under Regulation 16(d) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the year.

1732896 (Previous year: Not applicable)

(vii) Any other employee who receives a grant in any one year of ESAR amounting to 5% or more of ESAR granted during the year

Nil (Previous year: Not applicable)

(viii) Identified employees who were granted ESAR, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant

Nil (Previous year: Not applicable)

(b) Nature of CSR activities

The CSR activities of the Company are aimed at bringing social and economic change to the underprivileged sections of the society in an equitable and sustainable manner and to contribute for the skill development as means of livelihood for the weaker sections of the society. The initiatives include supporting livelihood enhancement and poverty reduction, promoting education including skill development for the empowerment of women and others, improving healthcare, sanitation and making available safe drinking water, promoting sports, advancing rural development, and supporting environmental sustainability and climate change mitigation efforts.

(i) Notification No. S.O. 3523 (E) dated 19th July, 2018 and subsequent notifications, were issued from time to time by the Central Government for the purpose of extending financial assistance to sugar mills to enhance and augment ethanol production capacity. This initiative aims to increase ethanol production and its supply under the Ethanol Blended with Petrol (EBP) Programme, thereby improving the liquidity position of sugar mills, enabling them to clear cane price arrears owed to farmers. Under this scheme, interest subvention at a rate of 6% per annum or 50% of the interest rate charged by banks (whichever is lower) will be borne by the Central Government for a tenure of 5 years from the date of loan disbursement. Under the said scheme, HDFC and ICICI disbursed rupee term loan aggregating to H8024.00 Lakhs and H5000.00 Lakhs respectively, during the year ended 31st March, 2020 which was utilised for setting up of 160 KLPD distillery at Gularia unit.

Up to 31st March, 2024, SBI disbursed rupee term loans aggregating H22000.00 Lakhs, which is an increase of H3000.00 Lakhs from H19000.00 Lakhs disbursed during the year ended 31st March, 2023. HDFC disbursed rupee term loans aggregating to H 13600.00 Lakhs during the year ended 31st March, 2023. The funds from SBI were utilised to set up a 320 KLPD distillery at the Maizapur unit, while the funds from HDFC facilitated the expansion of the distillery unit at Balrampur, adding an additional distillation capacity of 170 KLPD.

Accordingly, H1576.26 Lakhs (Previous year: H954.47 Lakhs) has been adjusted with interest on long-term borrowings for the year ended 31st March, 2024. Further, a sum of H Nil (Previous year: H216.59 Lakhs) has been adjusted with interest on long-term borrowings capitalised.

(ii) The Government of Uttar Pradesh vide its Order No. - 12/2018/1698/46-3-18-3 (36-A)/2018 dated 28th September, 2018 notified a scheme for assistance to sugar mills under the Scheme for Extending Financial Assistance to Sugar Undertakings, 2018 of Uttar Pradesh Government, 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 @ 5% p.a. interest for a period of 5 years aggregating to H36508.11 Lakhs which was utilised for clearance of sugarcane as per the said scheme. Pursuant to the requirements of Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance" and Ind AS 109 -"Financial Instruments", H4051.19 Lakhs was accounted for during the year ended 31st March, 2019 and included under note no. 21 - "Deferred income".

Accordingly, proportionate income amounting to H215.64 Lakhs and H495.13 Lakhs has been adjusted with interest on long-term borrowings for the year ended 31st March, 2024 and 31st March, 2023 respectively.

9. Employee benefits :

As per Ind AS - 19 " Employee benefits" the disclosures of Employee benefits are as follows:

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 continuous service is entitled to the gratuity. 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 Company contributes ascertained liabilities towards gratuity to a trust managed by the Board of Trustees, who are responsible for its administration and the definition of the investment strategy. Each year, the Board of Trustees reviews the asset-liability matching strategy and the investment risk management policy. The Board of Trustees decides on its contribution based on the results of this annual review.

The following tables summarises the components of net benefit expense recognised in the Standalone Statement of Profit and Loss, the funded status and amounts recognised in the Standalone Balance sheet for the said plan:

(c) Risks related to defined benefit plans:

The major risks to which the Company is exposed in relation to defined benefit plans are :

(i) Interest rate risk :

The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

(ii) Salary inflation risk :

Higher than expected increases in salary will increase the defined benefit obligation.

(iii) Demographic risk :

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

(d) Asset - liability management and funding arrangements :

The trustees are responsible for determining the investment strategy of plan assets. The overall investment policy and strategy for Company's funded defined benefit plan is guided by the objective of achieving an investment return which, together with the contribution paid, is sufficient to maintain reasonable control over various funding risks of the plan.

(e) Other disclosures :

The gratuity and provident fund expenses have been recognised under "Contribution to provident, gratuity and other funds" and compensated absences (leave encashment) has been clubbed with "Salaries and wages" under note no. 31 - Employee benefits expense.

Footnotes:

(i) The above remuneration does not include provisions for gratuity and compensated absences (leave encashment), which are determined for the Company as a whole.

(ii) Remuneration to Dr. Arvind Krishna Saxena excludes gratuity payment amounting to H24.81 Lakhs pursuant to settlement during the year ended 31st March, 2023 which was reimbursed by The Balrampur Sugar Company Limited Employees Gratuity Fund.

(iii) Mr. Praveen Gupta was granted 117284 ESARs pursuant to ESAR Scheme [Refer note no. 37(4)(b)]. The above remuneration does not include impact arising on its accounting of ESAR which are determined for the Company as a whole.

(d) The transactions with related parties have been entered at an amount that is not materially different from those on normal commercial terms.

(e) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No provision for bad or doubtful debts has been recognised in the current year and previous year concerning the amounts owed by related parties.

(f) The remuneration of directors has been determined by the Nomination & Remuneration Committee and approved by the Board of Directors/ shareholders of the Company (as the case may be), taking into account the performance of individuals and market trends.

11. Revenue

The details of performance obligations in terms of Ind AS 115 - "Revenue from Contracts with Customers" are as follows:

(i) Sugar

The Sugar segment of the Company principally generates revenue from the sale of sugar, its by-products, and co-generated power to distribution companies.

Domestic sales of sugar are made on ex-factory terms or agreed terms to wholesale, institutional buyers, or merchant exporters within the country and revenue is recognised when the goods have been delivered to the buyer's specific location (as per agreed terms). Domestic sugar sales are mainly done on advance payment terms.

Export sales of sugar to merchant exporters are done on ex-factory or delivered basis in terms of the agreement, and revenue is recognised when the goods have been delivered to the buyer's specific location (as per agreed terms). The sale price are fixed as per contracted terms.

Revenue from co-generated power is recognised on power supplies to distribution companies from the Company's facilities in accordance with the terms of the Power Purchase Agreements ("PPA"). Revenue is also generated from co-generated power supplied from the Company's facilities under open access arrangements, as authorised by regulatory authorities. Revenue is recognised when control of the power is transferred to the customer, which occurs at the point of delivery through the transmission or distribution system, in accordance with the terms of the agreement.

Bagasse and pressmud are generally sold on advance payment terms to customers on an ex-factory basis or agreed terms as per the agreement, and revenue is recognised when the goods have been delivered to the buyer.

Pressmud to certain institutional buyers is supplied from the Company's facilities as per the conditions stated in the long-term supply contract. Revenue is recognised when the goods have been delivered to the buyer.

(ii) Distillery

The distillery segment of the Company principally generates revenue from the sale of industrial alcohol, which mainly constitutes ethanol sold under contracts with Public and Private Oil Marketing Companies ("OMCs"), Distiller's dried grains with solubles (DDGS) to wholesale/ institutional buyers, co-generated power to distribution companies and other products to institutional buyers. Ethanol is sold on a delivered basis as per the agreement, and revenue is recognised when the goods have been delivered to the Public and Private OMC's locations (as per agreed terms). The sale price is determined based on the Expression of Interest ("EOI") or Tender floated in case of Public OMCs and on agreement in case of Private OMCs. The payment terms in the case of Public and Private OMCs are within 21 days and 15 days respectively after the delivery of the material and submission of original invoices.

Distiller's dried grains with solubles (DDGS) are majorly sold on advance payment terms to customers on an ex-factory basis as per the agreement, and revenue is recognised when the goods have been delivered to the buyer.

Revenue from co-generated power is recognised on power supplies to distribution companies from the Company's facilities in accordance with the terms of the Power Purchase Agreements ("PPA").

Other products like Extra neutral alcohol (ENA), CO2, Dry ice etc., are sold in bulk to institutional buyers on an ex-factory basis as per agreed terms. Revenue is recognised when goods have been delivered to the buyer's specific location as per agreed terms. The payment terms is up to 45 days.

(iii) Polylactic Acid (PLA)

The Company has decided to enter into new line of business of manufacturing of Polylactic Acid (PLA), a biodegradable polymer.

The preparation for commercial production of PLA is expected to take around 2.5 years from the balance sheet date. This includes setting up production facilities, finalizing operational processes, and ensuring compliance with environmental and industry standards. Detailed revenue recognition policies will be established and enforced from the start of commercial operations.

(iv) Others

The Others segment principally generates revenue from the sale of agricultural fertilizers such as granulated potash etc.

Sale of agricultural fertilizers are done on an ex-factory or delivered basis in terms of the agreement, and revenue is recognised when the goods have been delivered to the buyer's specific location (as per agreed terms). The payment terms is up to 60 days.

12. Segment information

(a) The Chairman and Managing Director has been identified as the Company's Chief Operating Decision Maker (CODM) in terms of Ind AS 108 - "Operating Segments". The 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 growth, operating income and return on capital employed.

Furthermore, given the significance of emerging business, polylactic acid (PLA) has been identified as a separate reportable segment. Accordingly, the disclosures, as required under Ind AS 108 - "Operating Segments" to the extent relevant and applicable, have been provided in these standalone financial statements.

In addition, revenue and expenses have been allocated to a segment based on the segment's operating activities. 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".

(i) Inter-segment revenues are eliminated upon consolidation and reflected in the "adjustments/eliminations" column. Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed at Company level. Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments as they are also managed at Company level.

(ii) Transactions between segments are primarily transferred at cost/ transaction price based on current estimated market prices. Common costs are apportioned on reasonable basis.

(iii) Figures in bracket pertains to previous year

Notes forming part of the standalone financial statements

for the year ended 31st March, 2024

Note No. : 37 - Other disclosures (Contd.)

(c) Other information ^{(H in Lakhs)}

*Capital expenditure consists of additions to property, plant and equipment, capital work-in-progress and intangible assets and includes depreciation, finance costs and other pre-operative and trial run expenses capitalised.

**Shown as Nil due to rounding off Footnote:

Figures in bracket pertains to previous year.

(d) In the following table, revenue is disaggregated by geographical market, major products/service lines and timing of revenue recognition and includes a reconciliation of the disaggregated revenue with the Company's reportable segments.

(H in Lakhs)

294 | Balrampur Chini Mills Limited

(e) Information about major customers:

Revenues from one customer of the Company's Distillery segment was H74545.84 Lakhs representing approximately 13.33% of the Company's total revenues for the year ended 31st March, 2024.

Revenues from one customer of the Company's Sugar segment was H52945.56 Lakhs representing approximately 11.35% of the Company's total revenues for the year ended 31st March, 2023.

13. 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, 2024 or 31st March, 2023. Hence, the requirements under the said Schedule is not applicable to the Company and no information is required to be disclosed.

14. The Company has so far acquired 165292000 (Previous year: 165292000) equity shares of Auxilo Finserve Private Limited ("AFPL") having par value H10/- each with total cost of H17499.64 Lakhs (Previous year: H17499.64 Lakhs) on preferential issue basis. AFPL is a NBFC engaged in financing activities in education sector and its debenture securities are listed on BSE Limited.

During the year ended on 31st March, 2024, AFPL allotted 113134145 compulsorily convertible preference shares (Series A CCPS) and 25015 equity shares at H41.53 each (with a par value of H10/- at a premium of H31.53 per share), aggregating to H46994.99 Lakhs on a private placement basis to investors.

Additionally, during the year ended on 31st March, 2024, AFPL also allotted 700000 equity shares at H10/- each (with a par value of H10/-) upon exercise of options by its employees, in accordance with the Employee Stock Options Scheme.

Due to the investment made by investors in Series A CCPS of AFPL, which are entirely in nature of equity and the allotment of equity shares as mentioned above, there is an eventual dilution of the Company's ownership interest in AFPL from 43.93% to 33.72% as of 31st March, 2024. AFPL continues to be an Associate of the Company.

16. Financial instruments - Fair value measurements

The fair value of the financial assets, financial liabilities are included at an amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

Fair value of trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, other current financial assets, short term borrowings from banks and financial institutions, trade and other payables, and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Valuation techniques used for Fair valuations of Financial assets which are fair valued

Level 1: Financial assets categorised in Level 1, are fair valued based on market data as at balance sheet date.

Level 3: The fair valuation of investment in unquoted equity shares of Konkan Speciality Polyproducts Private Limited has been done by an independent valuation firm using Market Approach.

17. Financial risk management objectives and policies

The Company's principal financial liabilities includes borrowings, lease liabilities, trade payables, other payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investments, trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents and other financial assets that derive mainly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management under the supervision of the Board of Directors oversees the management of these risks. The Company's financial risks are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised as below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk. Financial instruments affected by market risk include borrowings , other financial liabilities and investments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's borrowings obligations.

Sugar is produced over a period of 5 to 6 months and is required to be stored for sale over a period of 12 months, thereby resulting in very high requirement of working capital. Cost of funding depends on the overall fiscal environment in the country as well as the Company's credit worthiness/credit ratings. Failure to maintain credit rating can adversely affect the cost of funds.

To mitigate the interest rate risk, the Company maintains an impeccable track record and ensures long term relation with the lenders to raise adequate funds at competitive rates. Company has access to low cost borrowings because of its healthy Balance Sheet and credit rating. Moreover, Company deals with four banks thereby reducing the risk significantly. In addition, steady revenue from distillery business reduces the overall requirements of working capital.

As at 31st March, 2024, the Company has outstanding non-current borrowings, aggregating to H46114.19 Lakhs (Previous year: H61705.12 Lakhs). Of these, non-current borrowings of H44288.78 Lakhs (Previous year: H52578.09 Lakhs) are linked to variable interest rates and among them, non-current borrowings of H30304.50 Lakhs (Previous year: H38610.50 Lakhs) are covered under interest subvention scheme [For details of the Company's current and non-current borrowings, including interest rate profiles, refer note no. 18(i) and 18(ii)].

(iii) Commodity price risk

The major segment in which the company operates, accounting for around 70% of the company's total revenue, is Sugar. As such, the Company is exposed to commodity price risk.

The Government announces domestic sales quotas on a monthly basis. Moreover, there are not many active platforms in India that allow hedging of domestic sugar sales. Additionally, the Central Government had announced a Minimum Sale Price (MSP) for the sale of sugar in the open market by every sugar mill. Currently set at H31/- per kilogram, this MSP acts as a minimum floor price for the sale of sugar by the sugar mills in India.

Normally, the Company does not engage in the physical export of sugar. However, the Company has established a policy to hedge the underlying exposure associated with exports in cases where the export of sugar is permitted by the Government of India.

The pricing methodology for ethanol remained unchanged. Ethanol prices (excluding ethanol produced from grains) are announced by the Central Government which are based on Fair and Remunerative Price (FRP) of sugarcane, cost of production of sugar and realisation of by-products.

Price of Ethanol produced from grains are announced annually by the Oil Marketing Companies (OMCs).

(iv) Other price risk:

The Board of Directors reviews and approves equity investment decisions. The Company's exposure to equity risk is limited to cost, and these investments are subject to impairment testing according to the policies in this respect. Accordingly, other price risks are not expected to be material.

(b) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including borrowings from banks and financial institutions. The Company's sugar sales are mostly on cash. Co-generated Power is sold to government entities and under open access arrangements. Ethanol is sold under contracts to Public and Private Oil Marketing Companies ("OMCs"). The Company keeps a close watch on the realisation of the outstanding amounts and has not experienced any significant default.

The Company uses judgment in making the assumptions and selecting the inputs for assessing the impairment calculation, based on the Company's past history, existing market conditions, and future estimates at the end of each balance sheet date. Impairment allowance against financial assets is created and subsequently written off when there is no reasonable expectation of recovery. However, the Company continues to recover the receivables. Where recoveries are made, these are recognised in the Standalone Statement of Profit and Loss.

(i) Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing; Refer note no. 37(11) for credit terms.

An impairment analysis is performed at each balance sheet date on an individual basis for major customers. Large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the balance sheet date is the carrying value of assets as disclosed under note no. 12.

(ii) Balances with banks

Credit risk for balances with banks is managed in accordance with the Company's policy.

The Company's maximum exposure to credit risk for the components of the Standalone balance sheet as at 31st March, 2024 and 31st March, 2023 is the carrying amounts as stated under note no. 13 and 14 and fixed deposits with banks included under note no. 7(i) and 7(ii).

(c) Liquidity risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company's objective is to meet the funding requirement and maintain flexibility in this respect through the use of cash credit facilities, commercial papers and other short-term borrowings.

The Company possesses current financial and non-financial assets that are expected to be realised in the ordinary course of business. Furthermore, the Company ensures that it maintains sufficient liquidity to meet anticipated operational expenses as they arise.

18. Capital Management

(a) Risk management

The Company's objective while managing capital is to safeguard its ability to continue as a going concern and continue to provide returns to shareholders and other stakeholders. The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the financial covenants' requirements and return of capital to shareholders.

To achieve this overall objective, the Company's capital management, amongst other things, also aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2024 and 31st March, 2023.

19 (a). Other Statutory information

(i) Details of balance outstanding with struck off companies as at 31st March, 2024:

The Company has not entered into transactions with struck off companies either during the year ended 31st March, 2024 or 31st March, 2023. Hence, the requirements is not applicable to the Company and no information is required to be disclosed.

(ii) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) For working capital facilities, the Company has submitted Stock statement to banks on monthly basis. The difference between the value as per books and as per the monthly statements submitted on quarter ends with the banks are given below:

Differences are primarily due to the variation in valuation methodology of inventory for sugar. For Stock Statements submitted to banks, sugar inventory have been valued in terms of sanction letters, whereas in books such inventory are carried at lower of cost or net realisable value as per the accounting policy of the Company.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

(v) There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(vi) The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

20. The previous year's figures have been regrouped and rearranged wherever necessary to make them comparable with those of the current year's figures.