a. There has been no movement in the Issued, Subscribed and Paid -up
capital of the Company.
b. Terms/Rights attached to equity shares
The Company has only one class of equity share having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote per
share and entitled to dividends approved by shareholders.
In the event of liquidation of the company, the holders of equity share
will be entitled to receive remaining assets of the company, after
distribution to creditors and all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by each shareholder
a. 9.42% Secured Redeemable Non-Convertible Bonds of Rs.10,00,000/- each
issued with five years tenor redeemable at par in three installments at
the end of third year from issue date of 15th September, 2011 (30% at
end of 3rd year, 30% at the end of 4th year and balance 40% at end of
5th year). These bonds are secured by mortgage/charge on land and
building of Company located at Corporate office at Noida.
b. Rupee loan from scheduled banks, with total sanctioned amount of
Rs.3850 crore for Ammonia Feedstock Conversion Projects is secured by
first charge ranking pari-passu inter-se on entire fixed assets,
movable and immovable (present & future) related to Nangal, Bathinda &
Panipat units and second charge over the entire current assets and
subsidy (excluding reimbursement related to energy savings and interest
expenses) of the Company. Repayment of sanctioned term loan would fall
due for Rs.770 crore in FY 2013-14, Rs.770 crore in FY 2014-15, Rs.770 crore
in FY 2015-16, Rs.770 crore in FY 2016-17 and Rs.770 crore in FY 2017-18.
The rate of interest on the term loan is linked to the SBI base rate
and during the year varied between 9.75%-11.50% p.a.
c. Foreign currency External Commercial Borrowing (ECB) loan from
Schedule Banks, with total sanctioned limit of USD 50 million has been
used for energy saving and urea capacity augmentation projects at
Vijaipur and is secured by first pari-passu charge on all fixed assets,
movable and immovable (both present and future) related to Vijaipur and
second pari-passu charge on the current assets (both present and
future) and subsidy of the company. The rate of interest is 6 months
USD LIBOR plus margin of 3.05% p.a. and upfront arrangement fee of
1.58% of facility. Repayment of ECB loan would fall due for Rs.6.12 crore
in FY 2014-15, Rs.14.09 crore in FY 2015- 16, Rs.14.10 crore in FY 2016-17,
Rs.09 crore in FY 2017-18, Rs.14.10 crore in FY 2018-19 and Rs.14.95 crore
in FY 2019-20.
d. Foreign currency loans - Buyers Credit from scheduled Banks, total
drawn amount of USD 15.68 million for energy saving and urea capacity
augmentation projects at Vijaipur. The rate of interest is 6 months
LIBOR plus margin of 2.00% p.a. for Buyer Credit of USD 9.89 million
and 6 months USD LIBOR plus margin of 1.50%p.a. and upfront fee of 1.1%
p.a. for Buyer''s credit of USD 5.79 million. Repayment of Buyer''s
credit would fall due for Rs.47.05 crore in FY 2013-14, Rs.31.45 crore in
FY 2014-15 and Rs.2.46 crore in FY 2015-16.
a. Title/Lease Deed for land acquired at Nangal (Rs.0.93 crore),
Vijaipur (Rs.4.36 crore), Bathinda (Rs.0.15 crore), Building at Scope
Complex, New Delhi (Rs.2.07 crore) and Land/Building at Bhopal (Rs.0.38
crore) are pending execution.
b. 325.70 acres of land at Nangal (Rs. 0.01 crore) had been symbolically
possessed by the Punjab Government on 29.10.1998 without determination
of consideration. Though the ownership of the entire land including
325.70 acres vests with the Company, however, the physical possession
of 325.70 acres of land is with its erstwhile owners.
c. Consequent upon the implementation of Feed Stock changeover
Projects and its expected completion during 2012-2013, depreciation on
plant & machinery expected to be replaced has been charged over the
reduced residual life and accordingly during the year, in respect of
plant & machinery, depreciation provided is higher by Rs.0.82 crore
(previous year Rs.0.84 crore) in the accounts.
a. Capital work-in-progress includes amount ofRs.2161.52 crore incurred
upto 31st March, 2012 relating to feedstock conversion projects from
fuel oil to natural gas at Panipat, Nangal and Bathinda units. In terms
of Government policy notified on 6th March, 2009, the Company is
entitled to capital subsidy after successful commissioning of the
projects over a period of 5 years, which shall be appropriately
accounted for in terms of the policy.
b. * Addition to capital work in progress under the head Expenditure
during construction period includes Rs.3.37 crore (previous year Rs.Nil) on
account of foreign exchange fluctuation on longterm loan relating to
acquisition of Fixed Assets pursuant to the Company exercising the
option under Clause 46 A (i) of AS-11 to treat Foreign Currency Loans
as Long Term Foreign Currency monetary items under the Notification
number (G.S.R. 914(E) dated 29th December, 2011) issued by the Ministry
of Corporate affairs relating to Accounting Standard 11.
* Includes amount due from Directors - Rs. 23000/- (Previous year Rs. NIL)
# Includes an advance of Rs.130.69 crore (US$ 37.62 million) given to a
foreign supplier M/s. Karsan during the year 1995-96 against import of
Urea, the supplies of which were not received and subsequently the
contract was terminated. Pending litigation, the amount has been fully
provided for in the earlier years from the revenue reserve and surplus.
The outstanding advance (net of recovery) of Rs.129.64 crore is shown in
the Accounts under Loans and Advances Recoverable with
corresponding adjustment in revenue reserve. Adjustment, if any, shall
be made on settlement of the litigation.
As at As at
2012 31st March
1. CONTINGENT LIABILITIES
Claims against the Company not
acknowledged as debts a Pending
Income tax 269.00 201.31
Purchase tax 59.23 59.23
Excise, customs and service tax 6.04 7.37
VAT 0.14 -
Land compensation / development claims 3.86 13.69
Arbitration and civil cases 37.77 29.23
b. Other claims 1.20 1.18
c. Claims in respect of legal cases filed
against the company for labour and other
matters, amount whereof is not
1. The company has funded the gratuity liability through a separate
Gratuity Fund. The fair value of the plan assets is mainly based on the
information given by the insurance companies through whom the
investment have been made by the fund. Gratuity liability of Rs. 7.72
crore is unfunded as on 31st March, 2012.
2. The defined benefit obligations, other than gratuity are unfunded.
3.1.1 Other Employee Benefit Schemes:
Provision of Rs.1.44 crore (Previous year Rs.3.07 crore) towards
Employees'' Family Economic Rehabilitation Scheme and Social Security
Benefits scheme has been made on the basis of actuarial valuation and
charged to the Statement of Profit & Loss. A net liability of Rs.13.09
crore has been recognized in the Balance Sheet as at 31st March 2012 on
account of these schemes.
3.1.2 Provident Fund: 12% of Basic Pay plus Dearness allowance
contributed to the Provident Trust of the Company. The Company does not
anticipate any further obligation in the near foreseeable future having
regard to the amount of the fund and return on investment as confirmed
by the actuary.
3.2 AS-17: SEGMENT REPORTING
3.2.1 Business Segments:
Company''s primary business segments are ''area'' & ''Other Products''
(which include Industrial Products and Bio Fertilizers, traded goods
which have got similar risk and return profiles) and are reportable
segments under Accounting Standard-17 on ''Segment Reporting'' issued
by the Institute of Chartered Accountants of India.
3.2.2 Geographical Segment:
The operations of the company are conducted within India and there is
no separate reportable geographical segment
C) Transactions with Related parties:
(I) There is no transaction with related party at A) above except
investment of Rs. Nil crore towards its paid-up capital during the year
(previous year Rs.0.03 crore). Against total investment of Rs.0.18 crore as
on 31st March, 2012, provision of Rs. 0.15 crore has been made in the
Accounts on account of diminution in value of investments).
(ii) Remuneration to Key Management Personnel at B) above is Rs.0.86
crore (Previous year Rs.0.77 crore) which does not include remuneration
to Key Management Personnel at (i) and (ii) above who have been given
additional charge of the Company by GOI.
3.3 AS-19: LEASES
3.3.1 Assets taken on Operating lease:
The Company''s significant leasing arrangements are in respect of
operating leases of premises for offices, godowns, residential use of
employees and vehicles. These leasing arrangements are usually
renewable on mutually agreed terms but are not non-cancellable. Note:
26 Employee benefit expense remuneration and benefits include Rs.0.19
crore (Previous year Rs.0.26 crore) towards lease payments, net of
recoveries, in respect of premises for residential use of employees.
Lease payments in respect of premises for offices, godowns and
vehicles, Rs.3.32 crore (Previous year Rs.3.62 crore) are shown in Note:
3.4 AS-27: FINANCIAL REPORTING OF INTERESTS IN JOINT VENTURES
3.4.1 The disclosure of Company''s interest in Joint Venture entity in
terms of Accounting Standard-27 issued by the Institute of Chartered
Accountants of India is as under:
(i) Name of the Joint Venture entity: ''UrvarakVidesh Limited''
(ii) Co-Joint Venture companies: Krishak Bharti Co-operative Ltd. and
Rashtriya Chemicals & Fertilizers Ltd. as equal partners.
(iii) Company has an investment of Rs.0.18 crore towards paid up equity
capital representing one third share.
(iv) The Company''s share of ownership interest assets, liabilities,
income, expenses, contingent liabilities and capital commitment in the
Joint Venture Company, incorporated in India, are given below:
3.5 AS-28: IMPAIRMENT OF ASSETS
In accordance with Accounting Standard (AS)-28, the carrying amount of
fixed assets have been reviewed at year-end for indication of
impairment loss, if any, by considering assets of entire one plant as
Cash Generating Unit. As there is no indication of impairment, no loss
has been recognized during the year.
3.6 In terms of notification No. G.S.R 914(E) dated 29th December, 2011
relating to AS 11 issued by Ministry of Corporate affairs and
consequent upon exercising of option by the company to treat long term
foreign currency loan as long term foreign currency monetary items as
per Clause 46A (i) of AS-11, an amount of Rs.3.37 crore has been included
in the CWIP and profit are higher by Rs.3.37 crore due to change in
4 REMITTANCE IN FOREIGN CURRENCIES FOR DIVIDENDS
The Company has not remitted any amount in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittances, if any, in foreign currencies on
account of dividends have been made by/on behalf of non-resident
shareholders. The particulars of dividend for the year 2010-11 paid in
current year on account of non-resident shareholders in Indian rupees
are as under:
The Chairman & Managing Director and Functional Directors are allowed
the use of company''s car for private purposes upto 1000 km per month
and recoveries wherever required are made as per Government guidelines.
5 AS PER REQUIREMENTS OFTHE LISTING AGREEMENTS WITH THE STOCK
EXCHANGES,THE REQUISITE DETAILS OF LOANS AND ADVANCES IN THE NATURE OF
LOANS GIVEN BYTHE COMPANY ARE AS UNDER:
(I) There are no loans and advances in the nature of loans to any
(ii) No loans have been given (other than loans to employees), wherein
there is no repayment schedule or repayment is beyond seven years; and
(iii) There are no loans and advances in the nature of loans to
firms/companies in which Directors are interested.
6 Debit/Credit balances of some of the parties are in the process of
7 Figures of previous year have been re-arranged / regrouped /
re-cast, wherever necessary and to comply with the requirement of
revised Schedule VI of the Companies Act.