The Company has only one class of equity shares. The Company declares and pays dividend in Indian rupees. The holders of equity shares are entitled to receive dividend as declared from time to time and are entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
(h) An aggregate of 4000000 (Previous year: 4000000) equity shares has been approved pursuant to the "BCML Employees Stock Appreciation Rights Plan 2023" ("ESAR 2023"/ "Plan") for grant to eligible employees of the Company out of which 201191 equity shares (Previous year: 153126 equity shares) has been issued and allotted upto 31st March, 2026. Each ESAR, when exercised, would be converted into less than one equity share of the Company with a par value of H1/- each. ESARs granted under the Plan do not entitle the holders to dividend or voting rights until they are exercised and converted into equity shares. Refer to note no. 38(4)(a) for further disclosures.
(i) An aggregate of 2500000 (Previous year: 2500000) Restricted Stock Units (RSUs) has been approved under the "BCML Restricted Stock Unit Scheme 2025" ("RSU 2025"/"Scheme") for grant to eligible employees of the Company. The Scheme was approved by the Shareholders of the Company on 16th March, 2025. Each RSU, when exercised, would be converted into one equity share of the Company with a par value of H1/- each. RSUs granted under the Scheme do not entitle the holders to dividend or voting rights until such units are exercised and converted into equity shares. Refer to note no. 38(4)(b) for further disclosures.
i) Capital reserve comprises 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) Securities premium represents the premium on issue of equity shares and includes amount transferred from share options outstanding account on exercise of ESARs. The same will be utilised in accordance with the provisions of the Act.
iii) Capital redemption reserve has been created consequent to redemption of preference shares and buy-back of equity shares. This reserve will be utilised in accordance with the provisions of the Act.
iv) The share options outstanding account is used to record the value of equity-settled share-based payment transactions related to rights/ units granted by the Company to its eligible employees under the ESAR 2023 and RSU 2025. This reserve is used for the settlement of ESARs and RSUs.
v) The storage fund for molasses has been created to meet the cost of construction of molasses storage tank as required under the Uttar Pradesh Sheera Niyantran (Sansodhan) Adesh, 1974. During the year ended 31st March, 2026 H Nil (Previous year: H31.41 Lakhs) has been utilised from the fund and credited to the Statement of Profit and Loss. The amount lying in the said storage fund has been maintained in fixed deposits with banks amounting to H165.10 Lakhs and H104.67 Lakhs as at 31st March, 2026 and 31st March, 2025 respectively.
vi) The general reserve represents profits transferred out of retained earnings of the Company from time to time. It includes amounts transferred from the share options outstanding account on lapse of vested ESARs.
It also includes amount aggregating to H4224.23 Lakhs (Previous year: H4224.23 Lakhs) arisen consequent to business combination given effect to 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.
vii) Retained earnings represent the undistributed profit or accumulated earnings of the Company. This includes net cumulative losses of H1994.42 Lakhs (Previous year: H2170.18 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.
viii) 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) Reserve for equity instruments through other comprehensive income:
This reserve represents the cumulative gains and losses arising on the fair valuation of equity instruments designated as at FVTOCI, net of cumulative gain/ (loss) reclassified to retained earnings upon disposal.
note no. 18(ii)] :
i) Rupee Term Loan from HDFC amounting to H4250.00 Lakhs (Previous year: H7650.00 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 Balrampur distillery unit of the Company.
ii) Rupee Term Loan from SBI amounting to H5500.00 Lakhs (Previous year: H11000.00 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.
iii) Rupee Term Loan from HDFC amounting to H16000.00 Lakhs (Previous year: H8200.00 Lakhs), including transaction costs on account of effective interest rate adjustment, is secured by first charge on pari passu basis with INDUSIND, PNB and AXIS, by way of hypothecation of all movable fixed assets (PPE) and mortgage of immovable properties, both present and future, pertaining to Polylactic Acid plant at Kumbhi unit of the Company. Balance undrawn amount of term loan out of sanction limit of H20000.00 Lakhs is available for drawal.
iv) Rupee Term Loan from PNB amounting to H43000.00 Lakhs (Previous year: H13500.00 Lakhs), including transaction costs on account of effective interest rate adjustment, is secured by first charge on pari passu basis with HDFC, INDUSIND and AXIS, by way of hypothecation of all movable fixed assets (PPE) and mortgage of immovable properties, both present and future, pertaining to Polylactic Acid plant at Kumbhi unit of the Company. Balance undrawn amount of term loan out of sanction limit of H80000.00 Lakhs is available for drawal.
v) Rupee Term Loan from INDUSIND amounting to H19200.00 Lakhs (Previous year: H10700.00 Lakhs), including transaction costs on account of effective interest rate adjustment, is secured by first charge on pari passu basis with HDFC, PNB and AXIS, by way of hypothecation of all movable fixed assets (PPE) and mortgage of immovable properties, both present and future, pertaining to Polylactic Acid plant at Kumbhi unit of the Company. Balance undrawn amount of term loan out of sanction limit of H30000.00 Lakhs is available for drawal.
vi) Rupee Term Loan from AXIS, amounting to H9600.00 Lakhs (Previous year: H7100.00 Lakhs), including transaction costs on account of effective interest rate adjustment, is secured by first charge on pari passu basis with HDFC, INDUSIND and PNB, by way of hypothecation of all movable fixed assets (PPE) and mortgage of immovable properties, both present and future, pertaining to Polylactic Acid plant at Kumbhi unit of the Company. Balance undrawn amount of term loan out of sanction limit of H20000.00 Lakhs is available for drawal.
vii) Rupee Term Loan from AXIS, amounting to H2500.00 Lakhs (Previous year: H Nil), including transaction costs on account of effective interest rate adjustment, is secured by first charge on pari passu basis with HDFC, INDUSIND and PNB, by way of hypothecation of all movable fixed assets (PPE) and is further to be secured by way of mortgage of immovable properties, both present and future, pertaining to Polylactic Acid plant at Kumbhi unit of the Company. Balance undrawn amount of term loan out of sanction limit of H15000.00 Lakhs is available for drawal.
Working capital loans from banks (viz: SBI, HDFC, PNB, AXIS, KOTAK and ICICI) are secured by way of hypothecation of entire stock of sugar, sugar in process, mill stores, bagasse, moiasses and other current assets inciuding book debts, both present and future, of aii the ten sugar units including stock of grains of Maizapur distillery unit of the Company on pari passu basis with each of them.
In addition, working capital loans from HDFC is to be secured by way of hypothecation of stock of Ethanoi, Absolute Aicohoi, ENA, Fusei Oii and Receivables of aii the distillery units of the Company.
(b) Working capitai ioans have been utiiised for the purposes for which they were sanctioned.
(c) Refer note no. 38(17)(a) and (c) for information regarding market risk and iiquidity risk respectiveiy associated with borrowings.
(i) Further to the above, the Company has certain lease arrangements that qualify for recognition exemptions under Ind AS 116 "Leases", comprising short-term leases and leases of low-value assets. Lease payments relating to such leases are recognised as an expense in the Standalone Statement of Profit and Loss under the line item "Rent", included within "Other expenses" (Refer note no. 35).
(ii) The Company does not have significant liquidity risk in respect of its lease liabilities, as its current assets are sufficient to meet the related obligations as and when they fall due.
(iii) Details regarding the future payment of lease liabilities on an undiscounted basis have been provided in note no. 38(17)(c).
Note No. : 38 Other disclosures
1. Contingent liabilities and commitments (to the extent not provided for)
(a) Contingent liabilities : (H in Lakhs)
Sl.
No.
Particulars
As at
31st March, 2026
31st March, 2025
(i)
Claims against the Company not acknowledged as debt :
- Statutory dues - under appeal/ litigation (including interest and other claims)
Sales tax and entry tax
51.46
Others
105.15
123.07
156.61
174.53
- Non-statutory dues - under appeal/ litigation
101.62
258.23
276.15
(ii) Claims relating to acquisition of 1.99 acres of land for the Distillery at the Balrampur unit, including related compensation are under dispute and pending adjudication before the appropriate authority
Amount not ascertainable
Movement in contingent liabilities during the year reflects changes resulting from disposals/ settlements of matters.
The amounts disclosed above represent management's best estimates based on the information currently available. The timing and amount of cash outflows, if any, are dependent on the outcome of the respective appellate and legal proceedings and are therefore uncertain. Based on management's assessment and legal advice, the likelihood of an outflow of economic resources in respect of the disputes mentioned above is not considered probable. Accordingly, no provision has been recognised in the standalone financial statements. The Company does not expect any reimbursement in respect of the above contingent liabilities as at the balance sheet date.
Also refer note no. 38(3)(b) for availment of remission of taxes and levies pending final decision with the Hon'ble Supreme Court on the matter and note no. 38(3)(c).
(b) Commitments :
Estimated amount of contracts remaining to be executed on capital account and not provided for
(H in Lakhs)
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for (Refer footnote below)
98376.11
147091.74
(ii)
Advance paid against the above
19622.67
63953.06
Estimated amount of contracts remaining to be executed on capital account primarily relates to the Company's ongoing Polylactic Acid (PLA) project with a capacity of 80000 tonnes per annum (TPA). These commitments include contracts entered into with domestic and overseas vendors for the supply of plant and equipment, core technology and associated services, as well as engineering, procurement and construction (EPC) contracts. Such commitments represent firm contractual obligations and have not been recognised as liabilities as at the balance sheet date. The Company is eligible to receive various incentives in relation to the PLA project, subject
to fulfilment of the prescribed eligibility criteria [Refer note no. 38(8)(a)]. Also refer note no. 38(19)(a)(i) regarding revision in estimated capital outlay of the PLA project approved subsequent to the balance sheet date.
The above amount of H98376.11 Lakhs (Previous year: H147091.74 Lakhs) includes capital contracts denominated in foreign currencies for execution of the Company's PLA project. These contractual commitments are subject to fluctuations in foreign exchange rates, which may impact the final settlement in Indian Rupees. The details of such foreign currency-denominated commitments are set out below:
(i) Figures in brackets pertain to previous year.
(ii) Equivalent INR values are based on exchange rates prevailing as at the respective balance sheet date.
In order to mitigate the risk arising from fluctuations in foreign exchange rates in respect of the above foreign currency denominated capital commitments relating to the PLA project, the Company has entered into foreign exchange forward contracts. The outstanding forward contracts are measured at fair value at each balance sheet date, and the resulting gain or loss is recognised in the Statement of Profit and Loss.
In the normal course of business, certain claims in favour of the Company remain unresolved. Owing to uncertainties surrounding the related events and circumstances, the inflow of economic benefits in respect of such claims cannot be measured reliably. Accordingly, these have not been recognised in the standalone financial statements. Refer note no. 38(3)(a) for details.
3 (a) The Hon'bie 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 provisions 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, 2026. As at the date of approval of the standalone financial statements, the matter has not been listed for hearing subsequent to 13th November, 2025, and no further hearing date has been notified.
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 in the standalone financial statements.
(b) 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. 38(3)(a) above.
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 as per the Order 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.
(c) During the year, the Company received demands for Income Tax for Assessment Years 2022-23 and 202324 aggregating to H3656.46 Lakhs (Previous year: Not applicable), against which necessary appeals have been filed before the Income Tax Authorities and are pending as on this date. Considering that the Company has favourable orders from the Income Tax Appellate Tribunal on similar matters in previous years, the management continues to believe that no outflow of resources in respect of these demands is expected to arise. Accordingly, these have not been recognised or disclosed as contingent liabilities as at 31st March, 2026.
(d) The Uttar Pradesh Electricity Regulatory Commission ("UPERC"), vide Notification No. UPERC/Secretary/CRE Regulations/2024/014, dated 17th October, 2025, issued the Uttar Pradesh Electricity Regulatory Commission (Captive and Renewable Energy Generating Plants) Regulations, 2024 revising the power tariff rates retrospectively w.e.f. 1st April, 2024.
Accordingly, revenue arising from the tariff revision amounting to H1702.90 Lakhs (Previous year: Not applicable) for the period from 1st April, 2024 to 31st March, 2025 was recognised by the Company during the year ended 31st March, 2026. The aforesaid amount has been included in line item Co-generated power under "Revenue from operations" and forms part of "Profit before tax" for the year ended 31st March, 2026.
(e) During the year ended 31st March, 2026, the Company has imported capital goods for its own consumption for setting up of the PLA project under the Manufacturing and Other Operations in Warehouse Scheme ("MOOWR Scheme""). Under the MOOWR Scheme, the Company is eligible to avail deferment/exemption of applicable customs duties, including Basic Customs Duty ("BCD"), Social Welfare Surcharge ("SWS"), and Integrated Goods and Services Tax ("IGST"), on import of eligible capital goods, subject to compliance with the conditions prescribed under the MOOWR Scheme and applicable customs regulations.
As at 31st March, 2026, the Company has availed benefits amounting to H24181.11 Lakhs (Previous year: Not applicable), including GST benefits amounting to H16903.96 Lakhs (Previous year: Not applicable), under the aforesaid MOOWR Scheme. The related liability, being remote in nature, if any, would arise upon removal of the goods or occurrence of events specified under the MOOWR Scheme. However, the Company would be eligible to avail input tax credit of the applicable GST amount paid, subject to compliance with applicable laws.
The BCML Employees Stock Appreciation Rights Plan 2023 ("ESAR 2023"/ "Plan") was formulated by the Nomination and Remuneration Committee of the Board of Directors and approved by the Board of Directors at its meeting held on 21st March, 2023. The Plan was subsequently approved by the shareholders of the Company through Postal Ballot on 23rd April, 2023, in accordance with the provisions of 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, as amended from time to time prescribed by the Securities and Exchange Board of India.
The Plan is an employee share-based payment arrangement implemented with the objective of incentivising employees, aligning their interests with those of the shareholders and promoting improved performance. The Plan is accounted for in accordance with Ind AS 102 - Share-based Payment.
Under the Plan, the Company grants Employee Stock Appreciation Rights ("ESARs") to eligible employees in permanent employment of the Company, including directors (whether whole-time or otherwise), but excluding promoters, members of the promoter group, independent directors and directors who, either directly or indirectly, hold more than 10% of the outstanding equity shares of the Company.
The ESARs entitle eligible employees to receive the appreciation in the value of the Company's equity shares, subject to the fulfilment of vesting conditions and other terms and conditions as determined by the Nomination and Remuneration Committee.
The aggregate number of equity shares that may be issued pursuant to the exercise of ESARs under the Plan shall not exceed 4000000 equity shares of par value of H1/- each.
The Plan is superintended and administered by the Nomination and Remuneration Committee of the Board of Directors.
The total expense arising from equity-settled employee share-based payment arrangements under ESAR 2023, amounting to H1116.98 Lakhs (Previous year: H1605.08 Lakhs), has been recognised under "Share-based payments to employees - equity settled" and included in note no. 32 - Employee benefits expense.
Further, an amount of H8.63 Lakhs (Previous year: H Nil) has been recognised under "Share-based payments to employees - equity settled" and capitalised under note no. 4A - Capital work-in-progress.
Pursuant to exercise of ESARs during the year, 48065 (Previous year: 153126) equity shares of par value of H1/- each were issued and allotted to eligible employees of the Company.
The weighted average remaining contractual life for the ESARs outstanding as at 31st March, 2026 is 4.23 years (Previous year: 5.01 years). The weighted average market price of ESARs exercised during the year was H609.43 (Previous year: H573.90).
The fair value of ESARs granted is determined at each grant date by an independent valuer, in accordance with Ind AS 102 - Share-based Payment. The fair value so determined is recognised as an employee benefits expense over the respective vesting period, based on the number of ESARs expected to vest. The weighted average fair value of ESARs granted during the year is H212.50 (Previous year: H236.82).
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, 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 dividend yield has been calculated as : Dividend paid ^ market price as on the date of grant.
Nil
The expected price volatility is determined using annualised standard deviation (a measure of volatility used in Biack-Schoies-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:
Nii
(vii) 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:
18750 (Previous year: Nii).
154662 (Previous year: 326458).
Nii (Previous year: Nii).
The BCML Restricted Stock Unit Scheme 2025 ("RSU 2025"/ "Scheme") was formuiated by the Nomination and Remuneration Committee of the Board of Directors and approved by the Board of Directors. The Scheme was subsequentiy approved by the sharehoiders of the Company through Postai Baiiot on 16th March, 2025, in accordance with the provisions of Section 62(1)(b) of the Companies Act 2013, read with the Securities and Exchange Board of India (Share Based Empioyee Benefits and Sweat Equity) Reguiations 2021, as amended from time to time, prescribed by the Securities and Exchange Board of India (SEBI).
The Scheme is an empioyee share-based payment arrangement impiemented with the objective of rewarding key empioyees, inciuding those associated with the PLA verticai and other criticai roies, aiigning their interests with those of the sharehoiders and promoting iong-term vaiue creation. The Scheme is accounted for in accordance with Ind AS 102 - Share-based Payment.
Under the Scheme, the Company grants Restricted Stock Units ("RSUs") to eiigibie empioyees in permanent empioyment of the Company, inciuding directors (whether whoie-time or otherwise), but exciuding promoters, members of the promoter group, independent directors and directors who, either directiy or indirectiy, hoid more than 10% of the outstanding equity shares of the Company.
Each RSU represents a right to receive one fuiiy paid-up equity share of the Company, subject to fuifiiment of vesting conditions and other terms and conditions as determined by the Nomination and Remuneration Committee.
The aggregate number of equity shares that may be issued pursuant to exercise of RSUs under the Scheme shaii not exceed 2500000 equity shares of par vaiue of H1/- each.
The Scheme is superintended and administered by the Nomination and Remuneration Committee of the Board of Directors.
The total expense arising from equity-settled employee share-based payment arrangements under RSU 2025, amounting to H173.19 Lakhs (Previous year: Not applicable), has been recognised under "Share-based payments to employees - equity settled" and included in note no. 32 - Employee benefits expense.
Further, an amount of H1942.19 Lakhs (Previous year: Not applicable) has been recognised under "Share-based payments to employees - equity settled" and capitalised under note no. 4A - Capital work-in-progress.
As per the vesting schedule, RSUs did not vest during the year and accordingly, equity shares were not issued or allotted to eligible employees of the Company.
The fair value of RSUs granted is determined at each grant date by an independent valuer, in accordance with Ind AS 102 - Share-based Payment. The fair value so determined is recognised as an employee benefits expense over the respective vesting period, based on the number of RSUs expected to vest.
The weighted average fair value of RSUs granted during the year is H542.90 (Previous year: Not applicable).
Since, the Scheme has been introduced during year ended 31st March, 2026; therefore, details for the previous year ended 31st March, 2025 have been excluded from the above tables.
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 RSUs based on the zero-coupon yield curve for Government Securities.
While calculating the interest rate, 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 RSUs 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:
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 RSUs.
(vii) RSUs 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:
1082000 (Previous year: Not applicable).
(viii) Any other employee who receives a grant in any one year of RSUs amounting to 5% or more of RSUs granted during the year:
1000000 (Previous year: Not applicable).
(ix) Identified employees who were granted RSUs, 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).
The Company is eligible for incentives under the Bioplastic Industry Policy 2024 introduced by the Government of Uttar Pradesh to promote the manufacturing of bioplastics, including Polylactic Acid (PLA). Under this policy, the Company is entitled to receive various incentives towards PLA project subject to meeting the eligibility criteria, including:
(i) Capital Investment Subsidy of 50% of the eligible capital investment over a period of seven years.
(ii) 5% Interest subvention for seven years.
(iii) 100% reimbursement of Net State Goods and Services Tax (SGST) for a period of ten years.
(iv) Electricity duty exemption for ten years.
(v) Stamp duty exemption on land relating to the project.
Cap on total benefits: 200% of the eligible capital investment.
The Company has submitted an application, along with the requisite documentation, to the appropriate authority for grant of incentives under the Uttar Pradesh Bioplastic Industry Policy 2024 in respect of its PLA project. Subsequently, Invest UP, the Investment Promotion & Facilitation Agency of the Government of Uttar Pradesh, has issued a Letter of Comfort to the Company for its PLA project under the "Anchor Unit" (Super Mega) category.
The said Letter of Comfort has been approved and the eligibility to receive incentive is subject to commencement of commercial operations of the plant and fulfilment of the conditions stipulated under the Uttar Pradesh Bioplastic Industry Policy 2024 and the applicable guidelines.
(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 had disbursed rupee term loans aggregating to H8024.00 Lakhs and H5000.00 Lakhs respectively, during the year ended 31st March, 2020, which were utilised for setting up the 160 KLPD distillery at the Gularia unit. Both the loans were fully repaid during the year ended 31st March, 2025 in accordance with the terms of the respective sanction letters. Accordingly, no amount is outstanding as at 31st March, 2026.
Further, SBI disbursed rupee term loans aggregating to H22000.00 Lakhs up to 31st March, 2024 and HDFC disbursed rupee term loans aggregating to H13600.00 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 at Balrampur unit, adding an additional distillation capacity of 170 KLPD.
Accordingly, H553.28 Lakhs (Previous year: H1090.53 Lakhs) has been adjusted with interest on long-term borrowings for the year ended 31st March, 2026.
(ii) Pursuant to a financial assistance scheme notified by the Government of Uttar Pradesh vide its Order No. -12/2018/1698/46-3-18-3 (36-A)/2018 dated 28th September, 2018, the Company had availed a concessional rupee term loan of H36508.11 Lakhs from ICICI during the year ended 31st March, 2019 for clearance of sugarcane price arrears. The benefit arising from the concessional interest rate, amounting to H4051.19 Lakhs was recognised as deferred income in accordance with Ind AS 20 and amortised over the tenure of the loan by adjustment against interest expense.
The loan was fully repaid during the year ended 31st March, 2025 and no balance remains outstanding as at 31st March, 2026. Accordingly, amortisation of H6.89 Lakhs was recognised during the year ended 31st March, 2025.
9. Employee benefits :
As per Ind AS - 19 "Employee benefits", the disclosures of Employee benefits are as follows:
The Company operates defined contribution retirement benefit plans, under which the Company pays fixed contributions to separate funds or statutory authorities. The Company has no further payment obligations once the contributions have been paid.
The defined contribution plans of the Company include the following:
The Company makes contributions at prescribed rates towards the Employees' Provident Fund, a fund administered and managed by the Government of India. Contributions are determined in accordance with applicable statutory provisions, as amended from time to time.
The Company makes prescribed contributions towards the Employees' Pension Scheme, which is administered by the Government of India. Contributions are determined in accordance with applicable statutory requirements.
The Company makes contributions towards the Employees' State Insurance Scheme for eligible employees in accordance with applicable statutory provisions. The scheme is administered by the Employees' State Insurance Corporation, and the Company has no further obligation beyond such contributions.
The Company makes contributions towards the National Pension Scheme for certain employees in accordance with applicable regulations. The contributions are remitted to the designated pension fund managers, and the Company has no further obligation beyond such contributions.
The Company operates a gratuity plan for its employees. Under the plan, eligible employees are entitled to gratuity upon completion of the prescribed period of continuous service. The plan provides for a lump sum payment to employees on retirement, death, incapacitation or termination of employment. The level of benefits depends on the employee's length of service and salary at the time of cessation of employment.
The obligation in respect of gratuity is determined based on actuarial valuation using the projected unit credit method as at the balance sheet date.
The Company contributes the actuariaiiy determined liability towards gratuity to a trust managed by a Board of Trustees. The Trustees are responsible for administration of the plan and formulation 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:
The major risks to which the Company is exposed in relation to defined benefit plans are :
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.
Higher than expected increase in salary will increase the defined benefit obligation.
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.
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.
(i) Expenses charged to profit or loss for gratuity and defined contribution plan has been recognised under "Contribution to provident, gratuity and other funds" and compensated absences (leave encashment) has been included under "Salaries and wages" in note no. 32 Employee benefits expense.
(ii) The Government of India has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Labour Codes"). These Codes have been made effective from 21st November, 2025, replacing and rationalising multiple labour laws then prevailing in the country. In accordance with the requirements of the Indian Accounting Standard 19 "Employee Benefits", changes to employee benefit
plans resulting from legislative amendments constitute a plan amendment, necessitating recognition of past service cost immediately upon notification.
The impact on the employee benefit expenses with respect to gratuity and leave encashment amounting to H36.49 Lakhs (Previous year: Not applicable), as determined actuarially, have been recognised as past service cost towards employees' benefit obligations during the year ended 31st March, 2026. The Company continues to monitor the provisions of the Labour Codes and development thereof, including related Central and State rules as and when notified, and implications as relevant to the Company are given effect to in the respective period.
(i) The above remuneration does not include provisions for gratuity and compensated absences (leave encashment), which are determined on an actuarial basis for the Company as a whole.
(ii) Performance-linked incentive to Ms. Avantika Saraogi for the year ended 31st March, 2025 includes H3.30 Lakhs towards the proportionate performance-linked incentive for the financial year ended 31st March, 2024. The said incentive amount was determined during the previous year based on the evaluation of performance parameters approved by the Nomination and Remuneration Committee and in accordance with the terms of her engagement.
(iii) Mr. Praveen Gupta has been granted ESARs under the BCML Employees Stock Appreciation Rights Plan, 2023 and RSUs under the BCML Restricted Stock Unit Scheme, 2025. The above remuneration excludes the accounting impact of ESARs and RSUs, which is determined for the Company as a whole.
(d) Related party transactions entered during the current year, as well as in the previous year, were in the ordinary course of business and on an arm's length basis, in compliance with applicable regulatory and statutory requirements, including the Company's Policy on Related Party Transactions. The transactions with related parties have been carried out at amounts that are not materially different from those agreed upon under normal business 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 including performance linked incentive/ commission has been determined by the Nomination and 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 prevailing market trends.
11. Revenue
The Company recognises revenue in accordance with Ind AS 115 - "Revenue from Contracts with Customers", based on the transfer of control of goods or services to the customer and satisfaction of performance obligations under the respective contracts.
The details of performance obligations for each reportable segment are set out below:
The Sugar segment of the Company principally generates revenue from the sale of sugar, its by-products (such as molasses, bagasse and pressmud), co-generated power and trading of power.
Revenue from sale of sugar and its by-products is recognised at a point in time, upon dispatch or delivery, as applicable, when the performance obligation is satisfied and control of the goods is transferred to the buyer, in accordance with the terms of the contract.
Domestic sales of sugar are undertaken on an ex-factory basis or on other agreed terms to wholesale and institutional buyers within the country and are generally undertaken against advance payment terms. In certain cases, sales are made on short-term credit in accordance with the respective agreements.
Sale of sugar for export, in accordance with Government guidelines, whether to merchant exporters or through direct export sales, is undertaken either on an ex-factory basis or on a delivered basis, as per the terms agreed in the respective contracts.
Molasses, bagasse and pressmud are generally sold against advance payment terms, either on an ex-factory basis or in accordance with the terms agreed in the respective contracts. In certain cases, bagasse is sold on credit terms in accordance with the respective agreements.
In the case of pressmud supplied to institutional buyers under long-term contracts, delivery is made from the Company's facilities in accordance with the terms of the respective agreements. Pressmud sold to farmers on an ex-factory basis is also recognised at the point of dispatch.
Revenue from co-generated power is recognised based on power supplied from the Company's facilities in accordance with the terms of the Power Purchase Agreements ("PPA"). Revenue is also generated from power supplied under open access arrangements, as authorised by regulatory authorities, and from trading of power. Revenue is recognised upon delivery through the transmission or distribution system, when control is transferred to the customer, in accordance with the terms of the agreement.
The sale price is determined in accordance with the terms agreed in the respective contracts, and payment terms are governed by the Company's credit policy, which may include advance payments or short-term credit, as applicable. There are no significant financing components or variable consideration in such contracts. Revenue is measured at the transaction price agreed with the customer.
The distillery segment of the Company principally generates revenue from the sale of industrial alcohol, which primarily comprises ethanol sold under contracts with Public and Private Oil Marketing Companies ("OMCs"), Distiller's Dried Grains with Solubles (DDGS) to wholesale and institutional buyers, co-generated power and other products to institutional buyers.
Revenue from sale of ethanol, DDGS and other products is recognised at a point in time, upon dispatch or delivery, as applicable, when the performance obligation is satisfied and control of the goods is transferred to the customer, in accordance with the terms of the contract.
Ethanol is sold on a delivered basis in accordance with the terms of the respective agreements with Public and Private OMCs. The sale price is determined based on the Expression of Interest ("EOI") or tenders floated in the case of Public OMCs and on mutually agreed terms in the case of Private OMCs. Payment terms in case of Public OMCs and Private OMCs are generally within 21 days and 15 days, respectively, from the date of delivery.
DDGS is generally sold against advance payment terms on an ex-factory basis in accordance with the terms of the respective agreements. Other products such as Extra Neutral Alcohol ("ENA"), CO2 and Dry Ice are sold in bulk to institutional buyers on an ex-factory basis or on other agreed terms in accordance with the respective contracts. In such cases, sales are generally made on credit terms in accordance with the respective agreements.
Revenue from co-generated power is recognised based on power supplied from the Company's facilities in accordance with the terms of the Power Purchase Agreements ("PPA"). Revenue is recognised upon delivery through the transmission or distribution system, when control is transferred to the customer, in accordance with the terms of the agreement.
The sale price is determined in accordance with the terms agreed in the respective contracts, and payment terms are governed by the Company's credit policy, which may include advance payments or short-term credit, as applicable.
The Company is setting up a manufacturing facility for Polylactic Acid (PLA), a bio-based polymer, with commissioning expected during the financial year ending 31st March, 2027.
During the year, the Company has commenced trading of PLA products to get insights into market dynamics and to develop the market.
Trading of PLA is undertaken with wholesale and institutional customers on an ex-factory, ex-warehouse or delivered basis, in accordance with the terms of the respective agreements. Revenue from trading of PLA is recognised at a point in time, upon dispatch or delivery, as applicable, when the performance obligation is satisfied and control of the goods is transferred to the customer, in accordance with the terms of the contract. PLA represents an emerging business segment. Credit practices are evolving and are determined based on customer profile and contractual arrangements.
Revenue recognition policies in respect of manufacturing of PLA will be formulated upon commencement of commercial operations.
The Others segment principally generates revenue from the sale of agricultural fertilisers such as granulated potash.
Revenue from sale of agricultural fertilisers is recognised at a point in time, upon dispatch or delivery, as applicable, when the performance obligation is satisfied and control of the goods is transferred to the buyer, in accordance with the terms of the contract.
Sales of agricultural fertilisers are undertaken on an ex-factory or delivered basis in accordance with the terms of the respective agreements. In such cases, sales are generally made on credit terms of up to 60 days.
12. Segment information
(a) The Chairman and Managing Director has been identified as the Chief Operating Decision Maker ("CODM") in accordance with Ind AS 108 - Operating Segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of financial and operating performance indicators of the business segments. The CODM evaluates segment performance, inter alia, based on growth, operating income and return on capital employed.
These segments represent the components of the Company for which discrete financial information is available and which are regularly reviewed by the CODM for decision-making purposes. Accordingly, the Company's reportable segments under Ind AS 108 comprise: Sugar, Distillery, Polylactic Acid (PLA) and Others. The "Others" segment comprises operating activities of the Company that do not meet the quantitative thresholds for separate disclosure under Ind AS 108 and includes manufacturing and sale of agricultural fertilisers such as granulated potash etc. The details of performance obligations for each reportable segment are given in note no. 38(11). The accounting policies of the reportable segments are consistent with the accounting policies described in note no. 2.
Revenue and expenses have been allocated to segments based on the segments' operating activities. Segment assets and segment liabilities represent assets and liabilities attributable to the respective segments and are allocated on the same basis. Segment assets are monitored by the CODM for the purpose of assessing segment performance and allocating resources.
Items which relate to the Company as a whole and cannot be allocated to segments on a reasonable basis have been disclosed as "Unallocable". These primarily include investments, certain financial assets, tax-related assets and liabilities, and other similar items. Transactions between segments are primarily entered at cost or at prices based on current estimated market prices and common costs are apportioned on a reasonable basis.
Segment profit represents the profit earned by each segment excluding unallocable income and expenses. Interest income and finance costs are not allocated to segments as the underlying instruments are managed at the Company level. Current taxes, deferred taxes and certain financial assets and liabilities are also not allocated to segments on the same basis. Segment profit is reconciled to the Company's profit before tax through unallocable items presented below.
Revenues from one customer of the Company's Distillery segment is H70269.79 Lakhs (Previous year: H57241.89 Lakhs) representing approximately 11.21% (Previous year: 10.57%) of the Company's total revenues for the year ended 31st March, 2026.
13. Disclosure under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
The Company has neither given any loan nor advanced any amount during the year ended 31st March, 2026 or 31st March, 2025. Hence, the requirements under the said Schedule are not applicable to the Company and no information is required to be disclosed.
14. Investment in an associate
(a) The Company holds 165292000 (Previous year: 165292000) equity shares of Auxilo Finserve Private Limited ("AFPL") having a par value of H10/- each, at a total cost of H17499.64 Lakhs (Previous year: H17499.64 Lakhs) which were acquired on a preferential issue basis up to financial year ended 31st March, 2023. AFPL is a Non-Banking Financial Company (NBFC) engaged in financing activities in the education sector. Its debenture securities are listed on BSE Limited.
During the previous year ended 31st March, 2025, AFPL had raised funds through the issuance of shares on a preferential basis to investors other than the Company, as per the details given below:
During the previous year ended 31st March, 2025, AFPL allotted 51524429 compulsorily convertible preference shares and 10 equity shares at H58.04 each (with a par value of H10/- at a premium of H48.04 per share), aggregating to H29904.79 Lakhs on a private placement basis to investors.
Additionally, during the previous year ended 31st March, 2025, AFPL also allotted 831850 equity shares with a par value of H10/- upon exercise of options by its employees, in accordance with the Employee Stock Options Scheme of AFPL.
Due to the investment made by investors in CCPS of AFPL, which are entirely in nature of equity or otherwise in the equity shares as aforesaid, there was an eventual dilution of the Company's ownership interest in AFPL in the previous year ended 31st March, 2025 from 33.72% to 30.47%. AFPL continues to be an Associate of the Company.
(b) Balrampur Chini Mills Limited and Elme Advisors LLP, together referred to as Majority Shareholders shall not transfer, any of the securities of the AFPL held by them to any person other than their Affiliates; without the prior written consent of each Key Investor of AFPL, where such transfer results in the aggregate equity shareholding of the Majority Shareholders and their respective Affiliates in AFPL falling below 51% of the Share Capital of the AFPL; Key Investor means each Investor who holds securities representing equal to or more than 7.5% of the Share Capital of the AFPL at the relevant time.
16. Financial instruments - Fair value measurements
The fair value of the financial assets and 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.
(a) 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. Long-term borrowings and lease liabilities are measured at amortised cost.
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 standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of 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).
(b) The following tables provide the fair value hierarchy of the Company's assets and liabilities measured at fair value on a recurring basis:
Financial instruments categorised in Level 2, are fair valued based on mark to market from banks as at balance sheet date.
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 financial assets comprise mainly investments, cash and cash equivalents, other balances with banks, trade receivables, derivative financial assets and other receivables, and financial liabilities comprise mainly borrowings, trade payables, derivative financial liabilities and other payables.
The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors ("Board") oversees the management of these risks through its Risk Management Committee. The following disclosures summarise the Company's exposure to financial risks and the manner in which such risks are managed.
In addition to the above financial risks, the Company is exposed to various operational, strategic and regulatory risks, including project execution risks (including those relating to the PLA project), environmental and sustainability risks, technological changes, cyber security risks and industry cyclicality. These risks are managed through the Company's enterprise risk management framework and are disclosed in the Board's Report and Management Discussion and Analysis.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprises interest rate risk, foreign currency risk and other price risks, including commodity price risk. Financial instruments primarily exposed to market risk include borrowings, trade and other payables, other financial liabilities, investments and derivative financial instruments.
The Company enters into derivative financial instruments to manage its exposure to foreign currency and interest rate risks. These include foreign exchange forward contracts and interest rate swaps entered into for risk management purposes and not for speculative trading.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk primarily on its borrowings.
The Company manages its interest rate exposure by aligning its borrowing profile with prevailing market conditions. This includes the use of interest rate swaps, where considered appropriate, to modify the interest rate characteristics of borrowings, resulting in effective exposure to interest rates aligned to prevailing market conditions. The Company also continuously monitors interest rate movements to manage its overall cost of borrowing.
Sugar is produced over a period of 5 to 6 months and stored for sale over an extended period, resulting in significant working capital requirements. Consequently, the cost of funding is influenced by prevailing interest rate conditions and the Company's credit profile.
As at 31st March, 2026, the Company has outstanding non-current borrowings aggregating to H100050.00 Lakhs (Previous year: H58150.00 Lakhs), of which borrowings of H9750.00 Lakhs (Previous year: H18650.00 Lakhs) are covered under interest subvention scheme. Further details of the Company's borrowings, including their terms and interest rate profile are provided in note no. 18.
The Company has entered into interest rate swap contracts with banks in respect of certain borrowings to manage exposure to interest rates. Under such arrangements, the Company receives fixed interest and pays floating interest, thereby resulting in the underlying borrowings being effectively aligned to prevailing market conditions. Accordingly, the Company's overall exposure to interest rate movements reflects the combined effect of its borrowings and associated derivative arrangements. These contracts are entered into for risk management purposes and are not held for speculative trading.
The interest rate swaps are recognised at fair value on initial recognition and are subsequently remeasured at fair value through profit or loss at each balance sheet date in accordance with Ind AS 109.
Net settlements under the interest rate swaps represent adjustments to the effective borrowing cost and are recognised as part of finance costs. To the extent directly attributable to the construction of qualifying assets, such costs are considered for capitalisation in accordance with Ind AS 23.
Fair value changes (mark-to-market movements) on the interest rate swaps represent remeasurement of the derivative and do not constitute borrowing costs.
Interest rate swaps with a positive fair value are presented as derivative financial assets and those with a negative fair value are presented as derivative financial liabilities.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates.
The Company has entered into transactions denominated in foreign currencies, primarily in connection with imports and capital expenditure for its PLA project, which result in exposure to exchange rate fluctuations.
The Company's primary exposure to commodity price risk arises from sugar and ethanol operations, which are subject to regulatory and market-driven pricing dynamics.
The domestic sugar industry operates within a regulatory framework under which the Government announces monthly domestic sales quotas. The Central Government has prescribed a Minimum Sale Price (MSP) for sugar, currently H31 per kilogram, which acts as a floor price for open market sales.
While prevailing market realisations are currently above the MSP, industry representations have indicated the need for revision of MSP levels to better reflect cost structures and ensure long-term sustainability of operations.
The Company undertakes export of sugar in accordance with Government policies and permissions, as applicable. Such exports are driven by the regulatory framework and market conditions, and the associated price exposure is managed through appropriate risk management practices.
Ethanol prices (excluding ethanol produced from grains) are notified by the Central Government and are influenced by factors such as Fair and Remunerative Price (FRP) of sugarcane, cost of sugar production and realisation from by-products. Accordingly, movements in input costs and regulatory pricing may impact operating margins. Prices of ethanol from juice/B-heavy routes have not been revised by the Government after ethanol season year 2022-23 despite a ~ 16.39% increase in FRP of sugarcane from H305/- per quintal to H355/- per quintal.
Mitigation of these risks are influenced by Government policy; however, the Company manages these risks, in part, by maintaining flexibility in its production mix, including balancing sugar production with diversion towards ethanol, and aligning operations with prevailing regulatory and market conditions.
Prices of ethanol produced from grains are announced by Oil Marketing Companies ("OMCs"). In such cases, fluctuations in maize prices may impact profitability where realisations are not aligned with procurement costs. The Company mitigates this risk by monitoring maize price trends and maintaining operational flexibility through diversification of feedstock sources.
The Company's commodity price risk disclosures primarily focus on commodities that significantly impact revenue realisations and overall margin profile. While the Company is also exposed to fluctuations in prices of certain inputs such as fuel, chemicals, sulphur, steel and other materials used in operations, such risks are generally managed through procurement strategies, contractual arrangements and operational efficiencies, and are not separately disclosed as commodity price risks, as the Company does not undertake specific hedging activities in respect of such inputs.
The Company is exposed to equity price risk arising from its equity investments. Investments in equity instruments are held for strategic rather than trading purposes, and the Company does not actively trade these investments.
The Board of Directors reviews and approves all investment decisions. Investments are measured in accordance with Ind AS at cost, fair value through Other Comprehensive Income ("OCI"), or fair value through profit or loss. Investments measured at cost are subject to impairment testing in accordance with applicable Ind AS.
The Company's maximum exposure to equity price risk is limited to the amount invested and, accordingly, such exposure is not considered material.
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, resulting in a financial loss to the Company. The Company is exposed to credit risk arising from its operating activities, primarily trade receivables, as well as from deposits with banks and financial institutions.
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.
The Company manages credit risk through established credit policies, procedures and internal control frameworks across its business units. Trade receivables are non-interest bearing and are monitored on an ongoing basis to ensure timely realisation.
The Company's sugar sales are largely on a cash basis. Power is supplied to Government entities under long-term arrangements and to private entities under open access arrangements. Ethanol is sold under contractual arrangements to Public and Private Oil Marketing Companies ("OMCs"). Accordingly, the Company's exposure to credit risk is largely concentrated towards Government-backed entities and reputed counterparties, which are considered to have strong credit profile. The Company keeps a close watch on the realisation of the outstanding amounts and has not experienced any significant default.
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.
Credit risk for balances with banks is managed in accordance with the Company's policy governing placement of funds with approved counterparties. Credit risk arising from such balances is limited as the counterparties comprise banks with high credit ratings.
The Company's maximum exposure to credit risk for such financial assets as at 31st March, 2026 and 31st March, 2025 represents their carrying amounts as disclosed under note nos. 13 and 14 and fixed deposits with banks included under note nos. 7(i) and 7(ii).
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities as they fall due.
The Company's approach to managing liquidity is to ensure that sufficient liquidity is available to meet its financial obligations when due under both normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation.
The Company manages liquidity risk through ongoing cash flow forecasting and funding plans, and by maintaining access to diversified sources of funding, including cash credit facilities, commercial paper and other short-term borrowings. The Company also maintains adequate committed credit arrangements with banks and financial institutions to ensure sufficient liquidity to meet operational requirements in a timely and cost-effective manner.
Operating cash flows, working capital management and access to short-term funding arrangements collectively support liquidity requirements associated with the Company's normal operating cycle.
In connection with the ongoing Polylactic Acid (PLA) project presently under implementation, the Company has established a structured financing plan comprising internal accruals and committed external funding arrangements aligned with the project execution schedule. Project-related cash flow forecasts, contractual commitments and anticipated funding drawdowns are periodically reviewed against available cash balances and sanctioned borrowing facilities to ensure adequacy of financial resources throughout the implementation phase. Based on the above assessment and currently available funding sources, management expects that sufficient liquidity resources are available to meet operational requirements and planned capital expenditure commitments.
The following table summarises the Company's remaining contractual maturities for its non-derivative financial liabilities and presents their carrying value together with undiscounted contractual cash flows, which are based on the carrying value outstanding as at the balance sheet date.
During the year ended 31st March, 2026, the Company entered into interest rate swap arrangements in respect of certain fixed rate borrowings with the objective of managing interest rate risk and effectively converting such borrowings into floating rate borrowings.
A reasonably possible increase/ decrease of 100 basis points (1.00%) in the applicable benchmark interest rates, with all other variables held constant, would result in a corresponding adverse/ favourable impact of H129.65 Lakhs (Previous year: Not applicable) on the estimated net cash flows over the remaining tenure of the outstanding interest rate swap contracts, based on the contractual payment schedule, as at 31st March, 2026.
18. Capital management
The Company's objective in managing capital is to safeguard its ability to continue as a going concern while providing sustainable returns to shareholders and other stakeholders. The Company aims to maintain an optimal capital structure that optimises the overall cost of capital.
The Company's capital structure comprises equity (including issued capital, reserves and retained earnings) and debt (including borrowings and lease liabilities), consistent with the financial risk exposures described in note no. 38(17).
The Company manages its capital structure by monitoring its financial performance, and adjusts its capital structure through measures such as revision of dividend payouts, return of capital to shareholders, issuance of new equity or modification of debt levels.
In connection with the ongoing Polylactic Acid (PLA) project, the Company expects a measured increase in leverage during the implementation phase, as capital expenditure is being funded through a combination of internal accruals and committed term borrowings. The timing and quantum of debt drawdowns are aligned with project execution milestones and the overall funding strategy. This approach is consistent with the Company's liquidity risk management framework described in note no. 38(17)(c).
To achieve its overall objective, the Company's capital management strategy also focuses on meeting financial covenants attached to interest-bearing loans and borrowings. The Company regularly monitors covenant compliance and funding utilisation, including those associated with PLA financing arrangements, and takes proactive measures to maintain covenant thresholds. During the year ended 31st March, 2026 and 31st March, 2025, there were no breaches of financial covenants associated with the Company's interest-bearing loans and borrowings.
The Company monitors its capital structure using a combination of leverage and liquidity indicators, including long term debt-equity ratio and net debt metrics, which consider the level of borrowings relative to equity and available cash resources.
The Company's objectives, policies and processes for managing capital remained unchanged during the year ended 31st March, 2026 and the previous year ended 31st March, 2025.
(i) The Board of Directors of the Company at its meeting held on 23rd April, 2026:
(a) Approved issuance of up to 9316771 fully paid-up equity shares of par value of H1/- each on a preferential basis at an issue price of H483/- per equity share (including premium of H482/-) aggregating up to H45000.00 Lakhs, subject to approval of shareholders and regulatory/ statutory authorities relevant for the purpose. The proposed preferential issue comprises participation by promoters, members of promoter group and certain institutional investors.
(b) Approved revision in the estimated capital outlay of the Company's 80000 TPA Poly Lactic Acid ("PLA") Project at Kumbhi unit, from H285000.00 Lakhs to H308000.00 Lakhs, including cost escalations of approximately H23000.00 Lakhs. The revised project cost is proposed to be funded through issue of equity shares on a preferential basis, debt and internal accruals.
(ii) Nomination and Remuneration Committee ("NRC"), at its meeting held on 23rd April, 2026 granted 12777 ESARs under the Plan at an ESAR price of H541.55 to eligible employees of the Company. The ESARs vest over a period of four years and are exercisable within four years from the date of vesting, in accordance with the terms of the Plan. The consequential impact shall be given effect to and recognised in the respective vesting periods.
(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(ies) (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.
The differences as stated above have arisen primarily due to the variation in the basis of valuation followed for inventory of sugar for respective purposes. The sugar inventory for the purpose of the Statements has been valued at market price arrived on the basis as per the terms of the sanction letter whereas, in the books of account, these have been carried at lower of cost or net realisable value as per the accounting policy followed in this respect by 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).
(vii) The Company has not been declared a wilful defaulter by any bank, financial institution, government, or government authority during the current or previous financial year.
(viii) The Company does not have any charges or satisfaction pending registration with the Registrar of Companies (ROC) beyond the statutory period during the current or previous financial year.
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.