NAgarjuna Annual Report 08 09
NAgarjuna Annual Report 08 09
Board of Directors
K S Raju
Chairman & Managing Director
Ashok Chopra
Nominee of Snamprogetti
B K Batra
Nominee of IDBI
B Sam Bob
Nominee of Government of Andhra Pradesh
Secretary
M Ramakanth
N C B Nath
Auditors
M P Radhakrishnan M/s. M Bhaskara Rao & Co.,
Nominee of SBI Chartered Accountants
Hyderabad - 500 082
INDIA
S R Ramakrishnan
Registered Office
B B Tandon Nagarjuna Hills
Nominee of IFCI Hyderabad - 500 082
INDIA
P P Singh
Director (Technical) Website
www.nagarjunafertilizers.com
R S Nanda
Director & Chief Operating Officer Factory
Kakinada - 533 003
East Godavari Dist.
K Rahul Raju Andhra Pradesh
Joint Managing Director INDIA
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NOTICE Explanation: The expenditure incurred by the company on
NOTICE IS HEREBY GIVEN THAT THE THIRTY THIRD gas, electricity, water and furnishings shall be valued as per
ANNUAL GENERAL MEETING OF NAGARJUNA FERTILIZERS the Income-tax Rules, 1962, subject to a ceiling of ten per
AND CHEMICALS LIMITED WILL BE HELD AT 10.00 A.M ON cent of the salary.
SEPTEMBER 17, 2009 AT SRI SATYA SAI NIGAMAGAMAM, ii. Medical Reimbursement:
8-3-987/2, SRINAGAR COLONY, HYDERABAD - 500 073 TO Reimbursement of the expenses incurred for self and family
TRANSACT THE FOLLOWING BUSINESS : subject to a ceiling of one month’s salary in a year
ORDINARY BUSINESS iii. Leave Travel Concession:
1. To receive, consider and adopt the 33rd Annual Report of the Leave travel concession for self and family once in a year,
company, Balance Sheet as at March 31, 2009, the Profit incurred in accordance with the rules of the company.
and Loss Account for the financial year ended March 31, Explanation: Family for (ii) and (iii) means the spouse, the
2009, the Cash Flow Statement for the financial year ended dependant children and dependant parents.
March 31, 2009, and the Reports of the Directors and Auditors iv. Club Fees:
thereon. Fees of clubs subject to a maximum of two clubs. No
2. To declare a dividend on preference shares for the year admission and life membership fee shall be paid.
ended March 31, 2009. v. Personal Accident Insurance:
3. To appoint a Director in the place of Shri S R Ramakrishnan, Personal accident insurance of an amount, the annual premium
who retires by rotation and is eligible for re-appointment. of which does not exceed Rs.10,000/- per annum.
4. To appoint a Director in the place of Shri Chandra Pal Singh vi. a. Company’s contribution towards provident fund as
Yadav, who retires by rotation and is eligible for re-appointment. per the rules of the company.
5. To appoint a Director in the place of Shri Ashok Chopra, who b. Gratuity as per the rules of the company.
retires by rotation and is eligible for re-appointment. c. Company’s contribution towards superannuation fund
6. To consider and if thought fit, to pass with or without as per the rules of the company.
modification(s) the following resolution which will be proposed The aforesaid perquisites stated in (vi)(a), (vi)(b) and (vi) (c)
as an Ordinary Resolution : shall not be included in the computation of minimum
“RESOLVED THAT the retiring Auditors of the company, M/s. remuneration to the extent these either singly or put together
M Bhaskara Rao and Co., Chartered Accountants, Hyderabad, are not taxable under the Income-Tax Act, 1961.
being eligible for reappointment be and are hereby re-appointed vii. Earned Leave:
as Auditors of the company to hold office from the conclusion On full pay and allowances and perquisites, as per the rules
of the 33rd Annual General Meeting up to the conclusion of of the company. Encashment of leave at the end of the
the next Annual General Meeting on such terms and conditions tenure shall not be included in the computation of the minimum
as may be fixed by the Board of Directors of the company.” remuneration.
SPECIAL BUSINESS viii. Car for use on company’s business and telephone at residence
7. To consider and if thought fit, to pass with or without shall not be considered as perquisites”.
modification(s), the following resolution as an Ordinary “RESOLVED FURTHER THAT the remuneration specified
Resolution: above for Shri P P Singh, Director (Technical) may, subject
“RESOLVED THAT subject to Sections 198, 269, 309 and to overall ceiling specified above and subject to Schedule
Schedule XIII and other applicable provisions of the Companies XIII of the Companies Act, 1956, be modified as may be
Act, 1956 Shri P P Singh, be and is hereby re-appointed as agreed to by the company and Shri P P Singh, Director
Director (Technical) of the company for a further period of (Technical)”.
one year with effect from February 24, 2009 to February 23, “RESOLVED FURTHER THAT the perquisites mentioned
2010, subject to the necessary approvals of the Financial above shall be interchangeable within the overall ceiling of
Institutions”. the annual salary of Shri P P Singh, Director (Technical)”.
“RESOLVED FURTHER THAT Shri P P Singh, be and is hereby 8. To consider and if thought fit, to pass with or without
paid the following remuneration and perquisites during the modification(s), the following resolution as an Ordinary
term of his office and the same also be paid as minimum Resolution:
remuneration in the event of inadequacy or absence of profits “RESOLVED THAT subject to Sections 198, 269, 309 and
in any financial year, during his term of office.” Schedule XIII and other applicable provisions of the
1. Salary Companies Act, 1956 Shri K Rahul Raju be and is hereby
Salary (including dearness allowance and all other allowances) re-appointed as Joint Managing Director of the company for
– Rs.1.75 lakh per month a further period of five years with effect from June 26, 2009
2. Commission – Nil to June 25, 2014 subject to the necessary approvals of the
3. Perquisites Financial Institutions”.
Perquisites shall be restricted to an amount equal to the “RESOLVED FURTHER THAT Shri K Rahul Raju, be and is
hereby paid the following remuneration and perquisites during
annual salary.
the term of his office and the same also be paid as minimum
i. Housing:
remuneration in the event of inadequacy or absence of
a. The expenditure incurred by the company on hiring furnished
profits in any financial year, during his term of office.”
accommodation will be subject to a ceiling of 60% of the 1. Salary
salary; or Salary (including dearness allowance and all other allowances)
b. In case the accommodation is owned by the company, ten – Rs.1,50,000/- per month
percent of the salary shall be deducted by the company; or 2. Commission - Nil
c. In case no accommodation is provided by the company, Shri 3. Perquisites
P P Singh shall be entitled to house rent allowance subject to Perquisites shall be restricted to an amount equal to the
the ceiling laid down in clause (a). annual salary.
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i. Housing: remuneration in the event of inadequacy or absence of profits
a. The expenditure incurred by the company on hiring furnished in any financial year, during his term of office.”
accommodation will be subject to a ceiling of 60% of the 1. Salary
salary; or Rs.1.75 lakh per month (including dearness allowance and
b. In case the accommodation is owned by the company, ten other allowances)
per cent of the salary shall be deducted by the company; or 2. Commission - Nil
c. In case no accommodation is provided by the company, Shri 3. Perquisites
K Rahul Raju shall be entitled to house rent allowance subject Perquisites shall be restricted to an amount equal to the
to the ceiling laid down in clause (a). annual salary.
Explanation:The expenditure incurred by the company on i. Housing:
gas, electricity, water and furnishings shall be valued as per a. The expenditure incurred by the company on hiring furnished
the Income-tax Rules, 1962, subject to a ceiling of ten per accommodation will be subject to a ceiling of 60% of the
cent of the salary. salary; or
ii. Medical Reimbursement: b. In case the accommodation is owned by the company, ten
Reimbursement of the expenses incurred for self and family per cent of the salary shall be deducted by the company; or
subject to a ceiling of one month’s salary in a year or three c. In case no accommodation is provided by the company, Shri
months’ salary over a period of three years. R S Nanda shall be entitled to house rent allowance subject
iii. Leave Travel Concession: to the ceiling laid down in clause (a).
Leave travel concession for self and family once in a year, Explanation:The expenditure incurred by the company on
incurred in accordance with the rules of the company. gas, electricity, water and furnishings shall be valued as per
Explanation: Family for (ii) and (iii) means the spouse, the the Income-tax Rules, 1962, subject to a ceiling of ten per
dependant children and dependant parents. cent of the salary.
iv. Club Fees: ii. Medical Reimbursement:
Fees of clubs subject to a maximum of two clubs. No admission Reimbursement of the expenses incurred for self and family
and life membership fee shall be paid. subject to a ceiling of one month’s salary in a year.
v. Personal Accident Insurance: iii. Leave Travel Concession:
Personal accident insurance of an amount, the annual premium Leave travel concession for self and family once in a year,
of which does not exceed Rs.10,000/- per annum. incurred in accordance with the rules of the company.
vi. a. Company’s contribution towards provident fund as Explanation: Family for (ii) and (iii) means the spouse, the
per the rules of the company. dependant children and dependant parents.
b. Gratuity as per the rules of the company. iv. Club Fees:
c. Company’s contribution towards superannuation fund Fees of clubs subject to a maximum of two clubs. No admission
as per the rules of the company. and life membership fee shall be paid.
The aforesaid perquisites stated in (vi)(a), (vi)(b) and (vi) (c) v. Personal Accident Insurance:
shall not be included in the computation of minimum Personal accident insurance of an amount, the annual premium
remuneration to the extent these either singly or put together of which does not exceed Rs.10,000/- per annum.
are not taxable under the Income-Tax Act, 1961. vi. a. Company’s contribution towards provident fund as
vii. Earned Leave: per the rules of the company.
On full pay and allowances and perquisites, as per the rules b. Gratuity as per the rules of the company.
of the company. Encashment of leave at the end of the c. Company’s contribution towards superannuation fund
tenure shall not be included in the computation of the minimum as per the rules of the company.
remuneration. The aforesaid perquisites stated in (vi)(a), (vi)(b) and (vi) (c)
viii. Car for use on company’s business and telephone at residence shall not be included in the computation of minimum
shall not be considered as perquisites”. remuneration to the extent these either singly or put together
“RESOLVED FURTHER THAT the remuneration specified are not taxable under the Income-tax Act, 1961.
above for Shri K Rahul Raju, Joint Managing Director may, vii. Earned Leave:
subject to overall ceiling specified above and subject to On full pay and allowances and perquisites, as per the rules
Schedule XIII of the Companies Act, 1956, be modified as of the company. Encashment of leave at the end of the
may be agreed to by the company and Shri K Rahul Raju, tenure shall not be included in the computation of the minimum
Joint Managing Director”. remuneration.
“RESOLVED FURTHER THAT the perquisites mentioned above viii. Car for use on company’s business and telephone at residence
shall be interchangeable within the overall ceiling of the annual shall not be considered as perquisites”.
salary of Shri K Rahul Raju, Joint Managing Director”. “RESOLVED FURTHER THAT the remuneration specified
9. To consider and if thought fit, to pass with or without above for Shri R S Nanda, Director and Chief Operating
modification(s), the following resolution as an Ordinary Officer may, subject to overall ceiling specified above and
Resolution: subject to Schedule XIII of the Companies Act, 1956, be
“RESOLVED THAT subject to Sections 198, 269, 309 and modified as may be agreed to by the company and Shri R S
Schedule XIII and other applicable provisions of the Companies Nanda, Director and Chief Operating Officer”.
Act, 1956 Shri R S Nanda, be and is hereby re-appointed as “RESOLVED FURTHER THAT the perquisites mentioned above
Director and Chief Operating Officer of the company for a shall be interchangeable within the overall ceiling of the annual
further period of one year with effect from June 26, 2009, salary of Shri R S Nanda, Director and Chief Operating Officer”.
subject to the necessary approvals of the financial institutions”.
“RESOLVED FURTHER THAT Shri R S Nanda, be and is By Order of the Board
Hyderabad M Ramakanth
hereby paid the following remuneration and perquisites during
April 29, 2009 Secretary
the term of his office and the same also be paid as minimum
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NOTES year effective February 24, 2009, on the terms and
conditions stated in the notice.
1. A member entitled to attend and vote at the meeting is
The Board of Directors of the company at their meeting
entitled to appoint a proxy to attend and vote instead of
held on January 20, 2009 approved the re-appointment
himself and such a proxy need not be a member of the of Shri P P Singh as Director (Technical) of the company
company. for a period of one year with effect from February 24,
2. Instrument of proxies in order to be effective must be 2009 based on the commendation of the remuneration
deposited at the company’s registered office not less committee.
than 48 hours before the meeting.
None of the Directors of the company except Shri P P
3. Members are requested to notify immediately the change, Singh may be deemed to be concerned or interested in
if any, of the address registered with the company. this resolution
4. Members desiring to seek any information on the annual
accounts are requested to write to the company at an Item No. 8:
early date to enable compilation of information. The Board of Directors of the company at their meeting
5. The Securities and Exchange Board of India has notified held on June 26, 2004, appointed Shri K Rahul Raju as
your company’s equity shares for compulsory trading in Director – Business Development & Strategic Planning
the dematerialised form for institutional investors from for a period of five years effective from June 26, 2004,
June 26, 2000, and for other investors from August 20, subject to necessary approvals.
2000. The shareholders at their meeting held on September 22,
Shareholders may also avail of the facility of trading in 2004, approved the appointment of Shri K Rahul Raju as
the demat form and may contact the company in this Director – Business Development & Strategic Planning
regard. for a period of five years with effect from June 26,
6. The Register of Members and the Share Transfer Books 2004, and also approved the remuneration payable to
will remain closed from September 1, 2009, to September Shri K Rahul Raju.
17, 2009, (both days inclusive). The Board of Directors of the company at their meeting
7. The company’s equity shares are now traded only on the held on October 30, 2008, re-designated Shri K Rahul
National Stock Exchange of India Limited (NSE) and The Raju as Joint Managing Director of the company with
Stock Exchange, Mumbai (BSE). effect from November 1, 2008 upto June, 25, 2009, with
same terms and conditions of appointment as Director -
8. The company has paid the listing fees for the year 2009 Business Development and Strategic Planning.
– 2010 to The Stock Exchange, Mumbai and The National
Stock Exchange of India Limited, Mumbai, where the The Board of Directors of the company at their meeting
securities of the company continue to be listed. held on April 29, 2009 approved the reappointment of
9. Shareholders are requested to furnish their e-mail Shri K.Rahul Raju as Joint Managing Director of the
id’s to enable the company forward information in company for a further period of five years effective
from June 26, 2009 based on the commendation of the
relation to the company on a regular basis.
remuneration committee.
10 The Securities and Exchange Board of India has notified
that the shareholders/ transferee of shares (including In view of the expertise of Shri K Rahul Raju, it would be
necessary to extend the term of office of Shri K Rahul
joint holders) holding shares in physical form are
Raju for a further period of five years effective June
required to furnish a certified copy of their PAN Card to 26, 2009. Your Directors commend the resolution for
the company/ RTA while transacting in the securities approval.
market including transfer, transmission or any other
corporate action. None of the Directors of the company except Shri K S
Raju (being related to Shri K Rahul Raju) and Shri K
Accordingly, all the shareholders/ transferee of shares Rahul Raju may be deemed to be concerned or interested
(including joint holders) are requested to furnish a in this resolution.
certified copy of their PAN Card to the company/ RTA
while transacting in the securities market including Item No. 9:
transfer, transmission or any other corporate action. Shri R S Nanda was appointed as Director and Chief
11. The company has designated an exclusive email ID Operating Officer of the company at the Meeting of the
called [email protected] for redressal Board of Directors held on June 26, 2004, for a period of
of shareholder’s complaints / grievances. In case you three years with effect from June 26, 2004. He has
have any queries / complaints or unresolved grievances, since then been appointed on a yearly basis.
then please write to us at The Board of Directors of the company at their meeting
[email protected]. held on April 29, 2009, approved the reappointment of
12. All communication relating to shares are to be addressed Shri R S Nanda as Director and Chief Operating Officer
to the company or the company’s Share Transfer Agent, of the company for a further period of one year with
XL Softech Systems Limited, Plot No.3, Road No.2, effect from June 26, 2009, based on the commendation
Sagar Society, Banjara Hills, Hyderabad – 500 034. of the remuneration committee.
His vast experience and expertise would immensely
Explanatory Statement under Section 173 (2) for Item benefit the company.
Nos. 7 to 9 of the Notice for the 33 rd Annual General
Meeting to be held on September 17, 2009 In view of the experience and expertise of Shri R S
Nanda, it would be necessary to extend the term of
Item No. 7: office of Shri R S Nanda for a further period of one year
Shri P P Singh was appointed as Director (Operations) of effective June 26, 2009.
the company with effect from February 24, 2001, for a Your Directors commend the resolution for approval.
period of three years, thereafter re-appointed for a further None of the Directors of the company except Shri R S
period of two years with effect from February 24, 2004, Nanda may be deemed to be concerned or interested in
and was re-designated as Director (Technical). He has this resolution.
since then been appointed on a yearly basis. Inspection of Documents
Shri P P Singh looks after the expansion plans and The documents pertaining to Special Business are
technology related issues of the company. available for inspection at the Registered Office of
In view of the experience and expertise of Shri P P the company between 10.30 a.m. and 12.30 p.m. on
Singh, it would be desirable to re-appoint Shri P P Singh any working day prior to the meeting.
as Director (Technical) of the company. Your Directors By Order of the Board
commend the reappointment of Shri P P Singh as Director Hyderabad M. Ramakanth
(Technical) of the company for a further period of one April 29, 2009 Secretary
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Addendum to the Notice convening the 33 rd Annual Explanatory Statement under Section 173 (2) for Item
General Meeting to be held on September 17, 2009 Nos.10 and 11 of the Addendum to the Notice for the 33 rd
Special Business : Annual General Meeting to be held on September 17,
10. To consider and if thought fit, to pass with or without 2009
modification(s), the following resolution as a Special Item No.10
Resolution: Your Directors at their meeting held on July 23, 2009 forfeited
“RESOLVED THAT in accordance with Section 81(1A) 3,75,151 equity shares for non-payment of outstanding
and other applicable provisions, if any, of the Companies allotment/ call money due. Prior to the forfeiture, your
Act, 1956, Articles of Association of the company and company had mailed forfeiture notices dated May 15, 2009
the existing Guidelines of the Securities and Exchange to 2,614 shareholders in respect of 4,28,731 equity shares.
Board of India (SEBI) and subject to all consents and 2,286 shareholders in respect of 3,75,151 equity shares have
permissions required by law and subject to such not remitted the outstanding call/allotment money due and
conditions and modifications as may be imposed, and their shares now stand forfeited. This was apart from notice
accepted by the Board of Directors of the company
being mailed earlier at regular intervals.
(hereinafter referred ‘The Board’), which term shall include
any Committee which the Board of Directors of the Article 27 of the Articles of Association of the Company
company may constitute or may hereafter constitute, provides that any share forfeited, shall be deemed to be the
the consent of the company be and is hereby accorded property of the Company and the Board may sell, re-allot or
to the Board to re-issue on preferential basis 3,75,151 otherwise dispose of the same in such manner as it thinks
forfeited equity shares of the company of the face fit.
value of Rs.10/- each for cash to Nagarjuna Holdings Your Directors now propose to re-issue the 3,75,151 forfeited
Private Limited, one of the Core Promoters of the equity shares of the face value of Rs.10/- each on preferential
company (hereinafter referred to as the re-issue) as basis to Nagarjuna Holdings Private Limited, a Core Promoter,
follows : at an issue price determined as per the Guidelines for
a. The re-issue price of the shares shall be in accordance Preferential Issue of Shares.
with the Guidelines for Preferential Issue of Shares
Pursuant to the provisions of Section 81(1A) of the Companies
The relevant date for purpose of determination of the Act, 1956, any offer or issue of shares in a company made
price of the shares shall be thirty (30) days prior to to persons other than the holders of the equity shares of a
the date of the general body meeting i.e., August 17, company requires prior approval of the shareholders in a
2009.
general meeting by a Special Resolution. The Listing
b. The re-issued shares shall rank pari - passu in all Agreements executed by the company with the Stock
respects with the existing shares.” Exchanges also provide that the company shall, in the first
“RESOLVED FURTHER THAT the Board be and is instance, offer all forfeited Securities for subscription on
hereby authorised to settle all questions and matters pro rata basis to the existing Shareholders unless the
arising out of, and incidental to the proposed offer and Shareholders in a general meeting decide otherwise.
re-issue of forfeited equity shares and to take all steps
As per regulation 13.IA of the SEBI (Disclosure and Investor
which the Board, in its absolute discretion, considers
Protection) Guidelines, 2000 as applicable from time to time,
necessary, proper or expedient for implementing this
resolution”. the required details are furnished as under:
“RESOLVED FURTHER THAT the Board be and is a. Objects of the issue through preferential offer:
hereby authorised to make on its own accord or to accept Since the number of forfeited equity shares available
such amendments, modifications, variations and for re-issue, being less and not adequate to offer to all
alterations and to amend, modify, or vary or alter all or the shareholders on rights basis, it is proposed to re-
any of the terms of the re-issue of forfeited equity issue the said shares on preferential basis to one of the
shares on such terms as the Board may in its absolute Core Promoters, Nagarjuna Holdings Private Limited.
discretion decide”
b. Pricing:
11. To consider and, if thought fit, to pass with or without
modification(s) the following resolution which will be The pricing of the Shares shall not be lower than the
proposed as a Special Resolution: price determined in accordance with Chapter XIII of SEBI
(Disclosure and Investor Protection) Guidelines, 2000 -
“RESOLVED THAT pursuant to Section 372A and other Guidelines for Preferential Issues.
applicable provisions of the Companies Act, 1956 and
other applicable laws and subject to the approval of The subscriber to the re-issue has agreed to pay the
financial institutions, the Board of Directors of the price determined in accordance with Guidelines for
company be and are hereby authorised to acquire by Preferential Issue of Shares and not the unpaid balance
purchase or otherwise, all of the equity shares upto an on the shares forfeited.
amount of Rs.5,00,000/- constituting 50,000 fully paid c. Intention of Promoters/Directors/Key Management
equity shares of Rs.10/- each in the equity share capital persons to subscribe to the offer:
of Kakinada Fertilizers Limited (KFL), a company
incorporated under the Companies Act, 1956 and having Nagarjuna Holdings Private Limited has consented to
its registered office at No.10-4–771/5/1/A, Sriram Nagar subscribe to the re-issue of forfeited equity shares being
Colony, Masab Tank, Hyderabad – 500 028, from the offered on Preferential basis.
existing shareholders of KFL .” Shri K S Raju, Chairman & Managing Director and Shri K
“RESOLVED FURTHER THAT the Board of Directors of Rahul Raju, Joint Managing Director may be deemed to
the company be and are hereby authorised to do all such be interested in the resolution. They are personally not
acts, deeds, matters and things as in absolute discretion subscribing to the reissue of shares.
may be considered necessary, expedient or desirable Other Directors and Key Management personnel are not
and to settle any question that may arise thereto in interested in this item and they do not intend to subscribe
order to give effect to the foregoing resolution or to the offer.
otherwise considered by the board of directors to be in
the interest of the company.” d. Relevant Date:
By Order of the Board The Relevant Date for purpose of determination of the
Hyderabad M Ramakanth price of the shares shall be thirty (30) days prior to the
July 23, 2009 Secretary date of the general body meeting i.e., August 17, 2009.
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e. Shareholding Pattern of the Company before and after the issue :
The Shareholding Pattern before, i.e. as on June 30, 2009 and the one likely to emerge after the proposed re-issue of
Equity Shares would be as under:
Category Pre Issue as on June 30, 2009 Post Issue
Category of Shareholder
Code
No. of Shares % of Holding No. of Shares % of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
A Promoter 13,91,03,328 32.49 13,94,78,479 32.58
B Persons Acting in Concert - - - -
(2) Foreign
A Promoters - - - -
B Persons Acting in Concert - - -
C Bodies Corporate 1,20,00,000 2.80 1,20,00,000 2.80
Total Shareholding of Promoter and Promoter Group 15,11,03,328 35.29 15,14,78,479 35.38
(B) Public Shareholding
(1) Institutions
A Mutual Funds / UTI 1,64,23,236 3.84 1,64,23,236 3.84
B Financial Institutions / Banks 3,22,888 0.08 3,22,888 0.08
C Insurance Companies 89,27,316 2.08 89,27,316 2.08
D Foreign Institutional Investors 1,84,59,141 4.31 1,84,59,141 4.31
Sub-Total (B)(1) 4,41,32,581 10.31 4,41,32,581 10.31
(2) Non-Institutions
A Bodies Corporate 5,86,61,697 13.70 5,86,61,697 13.70
B Individuals 16,64,54,868 38.87 16,60,79,717 38.78
C Others
Clearing Members 28,63,607 0.67 28,63,607 0.67
Foreign Nationals - - - -
Non-Resident Indians 49,65,740 1.16 49,65,740 1.16
Overseas Corporate Bodies - - - -
Trusts - - - -
HUFs - - - -
Sub-Total (B)(2) 23,29,45,912 54.40 23,25,70,761 54.31
Total Public Shareholding (B) = (B)(1) + (B)(2) 27,70,78,493 64.71 27,67,03,342 64.62
(C) Share held by Custodians against which Depository
Receipts have been issued - - - -
GRAND TOTAL = (A)+(B)+(C) 42,81,81,821 100 42,81,81,821 100
Name of the Allottee PAN Number Category Pre-Issue Holding % to Total Post-Issue % to Total
Equity Holding Equity
Nagarjuna Holdings Private Ltd. AAACN6619H Promoter 3,38,51,474 7.90 3,42,26,625 7.99
h. Auditor’s Certificate:
A certificate as required under SEBI Guidelines certifying that the proposed issue is being made in accordance with the
requirements contained in SEBI Guidelines shall be obtained from the Auditors of the company.
i. Lock-in:
The equity shares to be allotted on preferential basis shall be subject to lock-in as per applicable SEBI Guidelines in this
behalf.
Your Directors commend the resolution for approval of the Shareholders.
Item No.11
Your company is looking at various growth options which are synergistic with the agri-business ventures in micro
irrigation, fertilizers and other agri-inputs of the company. Your company proposes to acquire 100% equity of Kakinada
Fertilizers Limited as it is considered advantageous to the company’s future prospects. In this regard, approval of the
shareholders is being sought to acquire the entire equity capital of 50,000 equity shares of Rs.10/- each at par from the
present shareholders of Kakinada Fertilizers Limited, as the proposed investment exceeds the limits prescribed by Section
372 (A) of the Companies Act, 1956.
None of the directors are concerned or interested in the said resolution.
Your Directors commend the resolution for approval of the Shareholders.
Inspection of Documents
The documents pertaining to Special Business are available for inspection at the Registered Office of the company
between 10.30 a.m. and 12.30 p.m. on any working day prior to the meeting.
By Order of the Board
Hyderabad M. Ramakanth
July 23, 2009 Secretary
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DIVIDEND
REPORT OF THE DIRECTORS Your Directors after careful consideration of the accounts of
rd
Your Directors have pleasure in presenting the 33 Annual the company and the global scenario have not recommended
Report together with the Audited Accounts of your company any dividend to the equity shareholders of the company.
for the year ended March 31, 2009. While placing on record their deep concern, the Directors
The Financial Results and the Consolidated Financial Results decided that in view of the inadequate profits it would not be
of the company for the year ended March 31, 2009 are as possible to declare dividends as there was a need to conserve
under: the profits for better financial health of the company.
Your Directors recommend 0.01 % dividend to the preference
FINANCIAL RESULTS Rs. in Crores shareholders of the company for the year ended March 31,
Particulars 2008 – 2009 2007 – 2008 2009 amounting to Rs.37,203/-.
current year previous year SHARE CAPITAL
Net Sales / Income from Operations 2371.91 2193.59 In view of the unprecedented economic conditions and
Other Income 11.99 19.84 downward share price movement, the Core Promoters have
Remission of principal amount of loan expressed their inability to raise necessary financial resources
Total Expenditure to meet the balance payment towards the allotment of
a. (Increase) / decrease in Stock 106.15 -100.98 2,25,00,000 convertible warrants. Accordingly the warrants
b . Consumption of Raw Materials 731.32 601.25 allotted to the Core Promoters stands annulled and the 10 %
c. Staff Cost 66.26 59.33 payment made by the Core Promoters stands forfeited in
d. Purchases – Traded Products 346.52 641.04 terms of the SEBI Guidelines for Preferential Issue.
e. Power and Fuel 470.42 311.59 FORFEITURE AND REISSUE OF PARTLY PAID SHARES
f. Marketing, Operating, Your company had made public issue and public cum rights
Administrative issue in the year 1991 and 1992. Even after a lapse of 18
and other Expenses 322.67 377.96 years certain members had not paid the outstanding call
Total 2043.34 1 890.19 money.
Interest 169.32 162.97 In view of the long period of time your Board of Directors
Depreciation 120.96 120.15 approved forfeiture of 3,75,151 equity shares of Rs 10/-
Profit before tax 50.28 40.13 from 2286 members amounting to Rs 20,68,877.
Provision for tax 31.96 44.85 Your Directors also approved reissue of forfeited equity
Deferred Tax Cr 15.34 28.31 shares of 3,75,151 of Rs 10 each at a price to be determined
Fringe Benefit Tax 1.25 1.10 as per SEBI Guidelines for Preferential Issue to the Core
Profit / (loss) after Tax 32.41 22.49 Promoter of the company on preferential basis. The proposal
Dividend – Preference Shares* 0.0037* 0.0037 is being placed before the members at the ensuing Annual
Balance c/d to Balance Sheet 158.20 125.79 General Meeting for their approval.
Paid Up Equity Share Capital PLANT OPERATIONS
(Face Value of Rs.10/- per share) 428.00 427.97 Urea
Reserves excluding revaluation Your company during the year manufactured 13.78 LMT of
reserve 481.97 441.04 Urea as against 13.54 LMT in the previous year.
Earning per share The significant delay in the supply of gas from KG basin,
which was to be available by August, 2008, was made
(annualised) - in Rs. available from April 9, 2009. Necessary agreements for
• Basic 0.76 0.53 supply and transport of natural gas have been executed. The
• Diluted ----- 0.51 production of the plant I was affected due to reduction of
* Proposed supply of gas. The delay in supply of natural gas from the
KG Basin had effected the production of plant II, leading to
CONSOLIDATED FINANCIAL RESULTS the plant being operated fully on naphtha as there was no
Rs. in Crores contribution from production beyond 100% capacity in this
Particulars 2008 – 2009 2007 – 2008 mode of operation.
current year previous year Your company during the year undertook various initiatives
Net Sales / Income from Operations 2371.91 2193.59 for improving energy efficiency, reliability and cost reduction.
Other Income 11.99 19.84 Carbon Dioxide Recovery (CDR) Plant
Remission of principal amount Your company commissioned the CDR Plant of 450 metric
of loan tonnes per day capacity for commercial use in the existing
Total Expenditure urea production facilities. The CDR Project is being carried
a . (Increase) / decrease in Stock 106.15 -100.98 out under Clean Development Mechanism which shall reduce
b . Consumption of Raw Materials 731.32 601.25 CO 2 emission by 450 metric tonnes per day.
c . Staff Cost 66.26 59.33 This change would put an end to usage of naphtha causing
d . Purchases – Traded Products 346.52 641.04 reduced subsidy burden on the Government and the additional
e . Power and Fuel 470.42 311.59 production will help to make up the shortfall of urea in the
f. Marketing, Operating, Administrative country, which otherwise had to be imported at huge cost.
and other Expenses 322.67 377.96 FUTURE PLANS
Total 2043.34 1890.19 The New Pricing Scheme (NPS), Stage-III policy effective
Interest 169.32 162.97 from October 1, 2006 to March 31, 2010 was notified by
Depreciation 120.96 120.15 Government of India in March, 2007. In terms of the policy
Profit before tax 50.28 40.13 there was a need to change over from naphtha to natural gas
Provision for tax 31.96 44.85 and setting up of a revamp project with the installation of
Deferred Tax Cr 15.34 28.31 CDR unit at a capital outlay of approximately Rs. 210 crores.
Fringe Benefit Tax 1.25 1.10 Your company commissioned the CDR unit successfully in
Profit / (loss) after Tax 32.41 22.49 March ‘2009 and the Revamp project is expected to be
Dividend – Preference Shares* 0.0037* 0.0037 completed in October, 2009. The de-bottlenecking and revamp
Balance c/d to Balance Sheet 158.20 125.79 of the existing Plant would result in the capacity of the Plant
Paid Up Equity Share Capital
(Face Value of Rs.10/- per share) 428.00 427.97 going up from the present 13.5 Lakh MTS per annum to 15.65
Reserves excluding revaluation reserve 481.97 441.04 Lakh MTS per annum.
Earning per share (annualised) – in Rs. The increased requirements of natural gas shall be met out
• Basic 0.76 0.53 of definitive supplies for which requisite contracts are entered
• Diluted ----- 0.51 into by the company.
* Proposed
7
NFCL
Micro Irrigation feedstocks and biofuels to reduce dependency on the
Your company during the year commissioned and streamlined hydrocarbon feedstocks, but also be carbon negative and
the production of new high output plain lateral production line environmentally safe.
successfully and also improved its product range. Your company has taken up ‘development of plant nutrition
Your company has achieved highest ever production of 511.05 business’ with an aim to develop cost effective end to end
lakh meters of micro irrigation products against 376.5 lakh plant nutrition solutions including new product development
meters during the previous year. and its field evaluation. This product will help to build the
Your company during the year achieved the highest production market share, once established.
in the various products manufactured by the micro irrigation POLICY MATTERS
division while maintaining high levels of quality. Your company’s endeavor has always been to maintain high
MARKETING levels of transparency and accountability to its stakeholders.
During the year under review, your company established In this direction, various policies mentioned in the Corporate
new records in sales and marketing as under Governance Report have been put in place to enable the
G Achieved highest ever manufactured Urea sale of 13.97 stakeholders to appreciate the various interventions the
Lakh MT company has taken in areas connected with the stakeholders
G Marketed 9.11 lakh MT of imported urea. of the company.
G Recorded sale of 7150 MT of water soluble fertilizers. The implementation of these policies are reviewed periodically
G Achieved record sales in micro irrigation segment 519.77 by the Board of Directors and updated from time to time.
Lakhs meters (354.26 LMTs higher than the year 2007-08) The company has set up a Grievance Redressal Mechanism
G Achieved record sales of all micronutrients. for all its associates. The Grievance Redressal Mechanism
Urea is aimed to redress the grievances of associates expeditiously
The year 2008 - 2009 witnessed substantial rise in demand to ensure good working atmosphere and culture in the
for all fertilizer products following favourable agro climatic organization.
situation across all the states. Your company accordingly CORPORATE GOVERNANCE
achieved high levels of sales of 23.08 lakh MT as against Your company driven by a desire to be more competitive
25.90 lakh MT during the previous year. and recognized globally had inculcated more than a decade
Speciality Fertilizers ago, the rules that define ethical business, much before it
Your company sold 9890 MTS during the year, in comparison was introduced as statutory compliance through Clause 49
with sales of 9600 MTS during the previous year. of the Listing Agreement.
Micro Irrigation Your company firmly believes that building a culture of
Your company during the year achieved 27% growth in sales compliance is more than meeting regulations and standards.
aggregating Rs. 60.88 crores as compared with that of the Your company is always proactive in meeting mandated
previous year (Rs.48 crores). standards and practicing corporate governance in spirit and
ENVIRONMENT, SAFETY AND AWARDS not just the letter of the law.
Environment A report on Corporate Governance along with the Practicing
Your company continues its mission of protecting the Company Secretary’s Certificate on its compliance is
environment and has inculcated the concept right down the annexed hereto. Your company is happy to inform you that
organization. there were no adverse remarks / qualifications/ reservations
The statutory compliance of the company on environmental raised in the Corporate Governance Report.
matters are being complied from time to time. DIRECTORS
Safety In accordance with the Articles of Association of the company,
Your company has implemented the Process Safety Shri S R Ramakrishnan, Shri Chandra Pal Singh Yadav and
Management Systems in the company and successfully up- Shri Ashok Chopra, retire at the forthcoming Annual General
graded itself to ISO-14001-2004. Meeting and being eligible, offer themselves for
Process Safety Management System (PSMS) compliance reappointment.
audit was completed and the highest rating of 4 for activity With effect from September 16, 2008 Shri B Sam Bob, IAS,
and 4 for documentation for the system was declared. Principal Secretary to Government & Commissioner for
Your company has high safety standards for preventing Industrial Promotion, Industries & Commerce Department,
unforeseen accidents. There has been no accident during the has been nominated by Government of Andhra Pradesh as
year. Nominee Director in the vacancy of Smt. D Lakshmi
The Plant has achieved the milestone of eleven million Parthasarathy, IAS.
accident free man-hours without any lost time injury as on The Board of Directors at their meeting held on January 20,
March 12, 2009 taking into account the man-hours worked by 2009 re-appointed Shri P P Singh as Director (Technical) of
associates and contract employees together. This landmark the company for a period of one year with effect from
was achieved for the first time since inception of the plant. February 24, 2009.
Awards ICICI Bank had withdrawn nomination of Shri K M Jaya Rao,
Your company during the year has bagged prestigious awards from the Board of Directors of the company with effect from
such as March 13, 2009.
§ Greentech Environment Excellence Silver Award for The Board of Directors have placed on record their appreciation
the year 2008 under Fertilizer category awarded by Greentech for the services rendered by Smt Lakshmi Parthasarathy
Foundation, New Delhi. and Shri. K M Jaya Rao, during their term as Directors of the
§ IFA Green Leaf 2 nd Runner-up Award in the Global company.
Competition for Excellence and Innovation in Safety, Health The Board of Directors at their meeting held on October 30,
and Environment in the manufacturing area at Kakinada. The 2008 appointed Shri K Rahul Raju as Joint Managing Director
ceremony was held during the First Global Safety Summit of the company with effect from November 1, 2008 up to
conducted by International Fertilizer Industry Association June 25, 2009. The Board of Directors at their Meeting held
and hosted by Gulf Petrochemical Industries Limited, Bahrain. on April 29, 2009 re-appointed Shri. K Rahul Raju as Joint
§ Fertilizer Association of India (FAI) Environmental Managing Director for a period of five years with effect from
Protection Award in the Nitrogenous Fertilizer Plants category June 26, 2009.
for the year 2007-2008. The Board of Directors at their meeting held on April 29, 2009
RESEARCH AND DEVELOPMENT re-appointed Shri R S Nanda as Director & Chief Operating
Your company has undertaken adaptive research to develop Officer of the company for a period of one year with effect
cost effective, renewable and sustainable alternate feed from June 26, 2009.
stocks and biofuels. The research being carried out with The requisite resolutions for the appointments have been
latest testing tools not only helps in developing alternate included in the notice to the ensuing Annual General Meeting.
8
NFCL
AUDITORS AND AUDIT REPORT DISCLOSURES
M/s. M Bhaskara Rao & Co., Chartered Accountants, Disclosure in terms of Companies (Particulars of Employees)
Hyderabad, the company’s auditors retire at the conclusion Rules, 1975 and Companies (Disclosure of particulars in the
of the ensuing Annual General Meeting. They have signified Report of the Board of Directors) Rules, 1988 in respect of
their willingness to accept re-appointment and have further conservation of energy, technology absorption, earnings and
confirmed their eligibility under Section 224 (1B) of the outgo of foreign exchange are attached and forms part of
Companies Act, 1956. this Report.
COST AUDITOR AUDIT COMMITTEE CONSTITUTION
Pursuant to section 233 B of the Companies Act, 1956 the In compliance with the provisions of the Section 292A of the
Central Government has directed that the cost accounts Companies Act, 1956 and the listing agreement entered into
maintained by the company be audited by a cost auditor. with the stock exchanges, the company had constituted an
Subject to the approval of the Central Government, the Audit Committee consisting of highly qualified and
company has appointed Shri Dantu Mitra, Cost Accountant, experienced members from various fields. The committee
as the Cost Auditor of the company for the financial year consists of three independent Directors, and one Whole-
2009 – 2010. time Director. The Chairman of the committee Dr. N C B
SUBSIDIARY COMPANIES Nath, is an Independent Director and the committee meets
A statement of the holding company’s interest in the periodically to review the quarterly financial statements and
subsidiary companies viz., Jaiprakash Engineering and Steel recommends its findings to the Board apart from taking action
Company Limited (JESCO) and Nagarjuna Oil Corporation independently whenever required. The Statutory Auditors,
Limited (NOCL), is enclosed in accordance with Section Secretary and the Internal and Cost Auditors attend and
212(2)(a) of the Companies Act, 1956. participate in the Audit Committee Meetings. The Audit
In accordance with the approval granted by the Central Committee comprises of :
Government, the Balance Sheet and Profit and Loss account,
Dr. N C B Nath Chairman, Independent Director
Report of the Directors’ and Auditors’ Report of subsidiary
companies viz., Nagarjuna Oil Corporation Limited and Shri B K Batra Member & Independent Director
Jaiprakash Engineering and Steel Company Limited are Shri S R Ramakrishnan Member & Independent Director
exempted from being appended to the Annual Report. Any Shri M P Radhakrishnan* Member & Independent Director
member seeking information on any of the subsidiary Shri K S Raju Member & CMD
companies may write to the company to enable the same to *Appointed with effect from July 23, 2009
be forwarded. CORPORATE SOCIAL RESPONSIBILITY
Jaiprakash Engineering and Steel Company Limited The company has always been a responsible corporate citizen
(JESCO) and has made significant contributions towards community
Your Company had terminated the agreement entered into in development. NFCL has always lived by its philosophy of
relation to disinvestment of its equity in JESCO, to comply “Serving Society through Industry”. The company believes
with the requirements of the Corporate Debt Restructuring in living every moment of life in harmony with nature to
scheme approved by the financial institutions and banks as create value for ourselves, our stakeholders and the society.
the buyer had expressed inability in raising funds in view of To have a systematic, dynamic and result oriented approach,
the slump in the stock market. The agreement accordingly a CSR Core Group was constituted to assess the ‘ as is’
stands terminated and the deposit placed with the company condition on CSR in the company and to steer forward the
shall stand forfeited in terms of the agreement. initiative. It was further strengthened by encouraging
Nagarjuna Oil Corporation Limited (NOCL) associates of the company to be part of the initiative and
NOCL, a subsidiary of your company is involved in setting with their contribution give impetus to the movement. Your
up a 6 Million Metric Tons Per Annum refinery project at company made significant contributions towards education,
Cuddalore, Tamil Nadu. NOCL has made substantial progress sports, health care and community welfare.
during the year under review. The equity and debt required DIRECTORS RESPONSIBILITY STATEMENT
for the Project is fully tied up and the investors have brought Pursuant to Section 217(2AA) of the Companies Act, 1956,
in their full share of initial equity contribution as per the your Directors hereby report:
schedule of subscription. Two tranches of debt totaling to a. that in the preparation of Annual Accounts for the year
Rs. 609.17 crores has already been drawn by NOCL. ended March 31, 2009, the applicable accounting
The process of selection of the EPCM contractors for the standards have been followed.
various process units has commenced and tender documents b. that the Directors have selected such accounting policies
have been issued. The company has started draw down from and applied them consistently and made judgements
the lenders. and estimates that are reasonable and prudent so as to
The shipment of the equipment from European ports has give a true and fair view of the state of affairs of the
made significant progress and the Engineering activities for company as at March 31, 2009 and of profit and loss
the relocated units of the project have commenced. account for the period ended March 31, 2009.
Various agreements and MOUs have been executed for c. that the Directors have taken proper and sufficient care
implementation of the Project and all the statutory approvals for the maintenance of adequate accounting records in
are valid and subsisting. accordance with the provisions of the Companies Act,
The company expects to complete the project within 36 1956 for safeguarding the assets of the company and
months of the Zero Date. for preventing and detecting fraud and other irregularities.
Investment in Kakinada Fertilizers Limited d. that the Directors have prepared the Annual Accounts
Your company is looking at various growth options which are on a going concern basis.
synergistic with the agri-business ventures in micro-irrigation,
fertilizers and other agri inputs. In view of the specialised ACKNOWLEDGEMENT
activity involved in this segment, your company’s Board of
Directors decided to carry out the activity initially through a Your Directors place on record their gratitude to the
subsidiary company. Government of India, Government of Andhra Pradesh and
It is initially proposed to invest in the entire equity capital of Government of Tamilnadu and the financial institutions and
Kakinada Fertilizers Limited amounting to Rs.5 lakhs, subject company’s bankers for their assistance and co operation.
to the approval of the members of the company, under Further, the company places on record its sincere appreciation
Section 372(A) of the Companies Act, 1956. The proposed for the continuing support and unstinting efforts of investors,
investment exceeds the limits prescribed by Section 372 (A) dealers and associates in ensuring an excellent allround
of the Companies Act, 1956 and is accordingly being placed operational performance.
before the members of the company at the ensuing Annual On behalf of the Board
general meeting for approval. Hyderabad K S Raju
July 23, 2009 Chairman & Managing Director
9
NFCL
FORM A : Form for disclosure of particulars with respect to conservation of energy
I.Urea
Particulars Unit Year ended
31.03.2009 31.03.2008
Power & Fuel Consumption
1.Electricity
a) Purchased
Unit 1000 KWH 2884.933 3359.292
Total Amount Rs. Lakhs 231.634 250.472
Rate/ KWH Rs./KWH 8.03* 7.46*
b)Own Generation
Through Gas Turbine Units 1000 KWH 220976.0 212111.2
KWH per SM 3 of Gas 5.796 5.611
Cost of gas per Unit of Power generated Rs./KWH 0.82 0.82
2. Fuel
(Including Ammonia-fuel, steam & power)
Quantity - Natural Gas 1000 SM3 264506.578 315549.529
NG LHV Kcal/SM 3 8823.356 8814.137
Total Cost Rs. Lakhs 12631.90 14516.69
Rate per Unit of Natural Gas Rs./1000 SM3 4775.65 4600.45
Quantity - Naphtha MT 71123.032 44949.717
Naphtha LHV Kcal/kg 10423.448 10389.274
Total Cost Rs. Lakhs 26757.10 16315.93
Rate per Unit of Naphtha Rs./MT 37620.87 36298.17
Quantity - LSHS MT 19538.77 -
LSHS LHV Kcal/kg 9619.468 -
Total Cost Rs. Lakhs 5857.52 -
Rate per Unit of LSHS Rs./MT 29978.98 -
Quantity - Furnace Oil MT 5236.088 -
Furnace Oil LHV Kcal/kg 9536.805 -
Total Cost Rs. Lakhs 1478.50 -
Rate per Unit of Furnace Oil Rs./MT 28236.68 -
3. Consumption per MT of Urea Production (Including Ammonia - fuel, steam & power) Year Ended
Particulars Unit Standard 31.03.2009 31.03.2008
Electricity (Incl. Internal Generaion) KWH 132.8 162.43 159.10
Naphtha at 10500kcal/kg Kg 64.5 51.23 32.84
LSHS (At actual calorific value) Kg Nil 14.18 0
Furnace Oil (At actual Calorific value) Kg Nil 3.80 0
Natural Gas (Fuel)*** at 8168 Kcal/SM3 Sm 3 251 207.326 251.395
* This amount is paid towards purchased power to APTRANSCO. *** 8168 KCal per SM3 is as per Design Norms.
II. Micro Irrigation
Particulars Unit Year ended
31.03.2009 31.03.2008
Electricity
a) Purchased 1000 KWH 1742.29 1590.162
Total Amount Rs. in Lac 67.69 58.83
Rate/KWH Rs./KWH 3.88 3.70
b) Own Generation
Diesel 1000 KWH 187.09 170.07
Total Cost Rs. in Lac 20.60 16.46
Rate per unit Cost of diesel per unit
of power generation 11.01 9.67
Consumption per meter of Lateral
Particulars Unit Standard Year ended
31.03.2009 31.03.2008
Electricity (incl. Internal Generation) KWH - 0.03 0.04
FORM-B place and the Company’s efforts have been recognized by M/s IFA (International
Form for disclosure of particulars with respect to technology absorption for Fertilizers Association) by awarding the 2nd Runner-up prize in the SHE
the year 2008-09 Performance in a global competition. Also, M/s FAI (Fertilizer Association
A. Research and Development (R & D): of India) recognized by presenting the Environmental Protection Award in
1. Specific areas in which R & D was carried out by the company at Kakinada Nitrogenous Fertilizer Plants category for the year 2007-08.
Plant: iv. PSMS (Process Safety Management System) has been implemented
Engineers engaged in Process, Production, General Engineering and successfully and achieved the highest rating, 4 out of 4.
Maintenance departments undertake activities which are aimed at Improvements v. Kakinada Plant Site Achieved 11 Million Man hours Accident Free period for
in the following areas through innovative ways: the first time since inception of the Company.
a. Energy Conservation vi. Carbon dioxide Recovery (CDR) unit for 450MT/day capacity from the flue
b. Capacity Utilization gases of Ammonia Reformer was commissioned successfully on 24th March
c. Environmental Protection 2009 which is a pollution abatement measure to reduce CO2 emission into
d. Process and Personal Safety the atmosphere. It has potential to be considered under Clean Development
e. Enhancement of Plant reliability. Mechanism (CDM). The availability of CDR unit will also help increase
f. Cost effective improved packing in Micro Irrigation. production on availability of Natural Gas from RIL which has started with
2. Benefits derived as a result of the above efforts : effect from April 9, 2009.
The improvements achieved in the areas of Production Performance, Specific vii. Micro Irrigation division established new indigenous stretch wrap packing
Raw Water Consumption, Treated Effluent Generation, Environmental for Flat Type IDL, increased number of coils per truck and also lateral length
Protection, Process & Personal Safety are given below: per coil of 12mm Super line.
i. Complex Specific Raw Water Consumption is 5.292 m³ / MT of Urea, which 3. Future Plan of Action:
is better than the previous year Specific Consumption of 5.335 m³ / MT of A number of action plans have been made to improve Production, Plant
Urea. Reliability and reduce Specific Energy Consumption as mentioned below:
i i . The Specific Effluent Generation for this year is 0.78 m³ / MT of Urea, which i. Signed Contract with Reliance Industries Limited (RIL) to ensure adequate
is better than the previous year Specific Effluent Generation of 0.83 m³ / MT Natural Gas (NG) supply and convert the Company’s entire operations from
of Urea. Naphtha to full NG. Gas supply from RIL was started w.e.f. April 9, 2009.
iii. In the area of Environment Protection, continuous improvement is taking i i . First phase of revamping is completed during 2007-08. The second phase
10
NFCL
of revamping / De-bottlenecking of Ammonia & Urea Plants to 1325 MTPD B. Technology Absorption, Adaptation and Innovation:
& 2281 MTPD Production respectively is in progress with a targeted completion 1. Efforts, in brief, made towards technology absorption, adaptation and
by September 2009. Necessary thrust has been given in the area of Energy Innovation:
Conservation by implementing Schemes like Suction cooling of Compressors, i. Carbon Dioxide Recovery (CDR) Plant was installed in Ammonia Plant-I to
installation of MP Condensate Stripper in Ammonia-I, Pre-decomposers in recover CO2 from flue gas. The Plant was successfully commissioned and
Urea Plants, etc. Detailed Engineering & Procurement have been nearly commercial production was declared on March 24, 2009. The CDR Plant is an air
completed, equipment arrival at site commenced and necessary site works pollution control system, which recovers the CO 2 present in Flue gas and thereby
to erect the new equipment is in progress. reduces the CO 2 emission to Atmosphere to the tune of 450 MTPD. The CDR
iii. Feasibility study is on for 3 rd phase of Revamp of Ammonia & Urea Plants. Plant consists of CO2 Absorber, wherein the proprietary solvent is made to contact
This has been taken up with the Company’s Technology Suppliers. with the flue gas in counter current fashion in the structured packed bed system.
iv. Installation of Fluid Coupling for Ammonia-I Primary Reformer FD Fan as an The CO 2 absorbed solution is regenerated in the CO 2 Regenerator which also
energy saving scheme is planned for implementation in the forthcoming consists of structured packed bed system, wherein the CO 2 liberated from the
September ‘2009 Annual Turnaround. Solution is cooled and sent to Urea Plants for Urea Production.
In Micro Irrigation (MI) a number of actions have been planned for capacity i i . Aerodynamic diffusers were installed in Ammonia Plant-II Combustion Air
enhancement and also for product diversification to meet the market demand. Pre-heater (EE-204) inlet duct as well as in the inter-modular ducts for optimizing
1. Installation of New Flat High output Integral production line. FD fan draft system and to recover more heat from reformer flue gases.
2. Cost effective design modification and manufacturing of HDPE couplers. iii. Gas Turbine-A overhauling was carried out and up-rated parts were installed.
3. Production enhancement measures will be taken up on key production lines. iv. Canteen / Technical building sewage water treatment facility (100 KL per day)
4. Establishment of PVC pipe manufacturing unit for internal consumption. was installed to improve the storm water quality.
5. Indigenous of critical spare parts of IDL machines. v. Installation of Advance Process Control (APC) in Ammonia Plant–I is in
4. Research and Development (R & D) progress to reduce Specific Energy Consumption by way of optimizing the critical
a) Specific areas in which R & D was carried out by the company. parameters.
Alternate feedstock’s and Biofuels: vi. MI division Commissioned and streamlined the production of new high output
This programme has been taken up with an aim to develop cost effective, plain lateral Production line successfully. Improved the product range with Super
renewable and sustainable alternate feedstocks and biofuels. The research is line 12/4 and heavy wall thickness as per the market requirement. Improved
done employing the latest cutting edge biotechnological tools and in some finished goods packaging, indigenization of spare parts and development of
cases using the thermo chemical tools as well. The Company has completed components
the initial lab experiments to establish the proof of concept (POC). 2. Benefits derived as a result of the above efforts ex. Product Improvement,
Development of Plant Nutrition Business : Cost Reduction, Product Development Import Substitution etc.
This programme has been taken up with an aim to develop cost effective end Benefits realized are mentioned under A. 2 above.
to end plant nutrition solutions including new product development and its field 3. In case of import technology (imported during the last five years reckoned
evaluation. The process optimization including the scale up studies has been from the beginning of the financial year), following information may be furnished:
initiated. NFCL has successfully installed the CDR (Carbon Dioxide Recovery) Plant under
b) Benefits derived as a result of the above efforts : the License of M/s Mitsubishi Heavy Industries (MHI), Japan. M/s MHI had been
Alternate feedstocks and biofuels: Development of economical, renewable the Technology Supplier & Basic Engineering Contractor for this Project.
and sustainable feedstock’s and biofuels will give freedom from the dependency
on the hydrocarbon feedstocks and it will also be carbon negative and Form C
environmentally safe. Particulars of Foreign Exchange Earnings and outgoings for the year 2008-09
Plant Nutrition Business: The upcoming new product range once established A. Activities relating to exports, initiatives taken to increase exports,
will provide a better market share as well as a healthy top and bottom line. development of new export markets for products and services, export plans: Not
c) Future Plan of Action Applicable
The future experiments are designed to optimise the process modules, conduct B.1. Foreign Exchange Outgo Rs. in lacs
simulation studies and scale up studies to establish the proof of value (POV) a) Technical know-how (net of Tax) Nil
in both alternate feedstock’s / Biofuels and Plant nutrition business areas. b) Interest 77.66
The new plant nutrition solution products being identified would also be put c) Dividend
under process scale up and wide range of field trials. Equity Nil
d) Expenditure on R&D: Preference Nil
A separate record of the expenditure incurred in R&D is maintained for the R&D d) Others 478.73
division 2. Foreign Exchange earnings NIL
Statement of particulars of employees pursuant to the provisions of Section 217(2A) of the Companies Act, 1956 and forming part of the Directors Report
for the year ended March 31, 2009.
Name Age Qualifications Designation Date of Years of Remuneration Previous Employment before
Commencement Experience Received (Rs) joining the company
of Employment
Employed for the year :
Mr K S Raju* 59 B.E(Mech) Chairman & Managing Director 01.07.1987 34 5441661 Managing Director, Nagarjuna Finance Ltd.,
Mr P P Singh* 68 FIE Director (Tech) 24.02.2001 44 4238841 Managing Director, KRIBHCO
Mr R S Nanda* 65 B.Sc(Engg) Mech Director & COO 26.06.2004 42 4236312 President & Managing Director,
Coromandel Fertilisers Ltd.,
Mr K Rahul Raju* 32 B.Com(Hons) Joint Managing Director 26.06.2004 11 3813776 Head - Business Initiatives -
Nagarjuna Holdings Pvt. Ltd.
Mr M Srinivas 47 B.Com(Hons),M.B.A Vice President-Spl Proj. 01.10.1985 26 2591998 Administrative Asst., Nagarjuna
Steels Ltd.,
Mr J Mahalingam 55 B.A,ACA Exec Director-Corp Strategy 01.10.1990 30 3977314 DGM(Finance), Andhra Cement Co., Ltd.,
Mr M Ramakanth 53 B.Sc., FCS, LLB Vice President-Legal & Secretary 14.09.1994 25 3094339 Company Secretary, Nagarjuna
Dip in Public Relations,. Investment Trust Ltd.,
P.G.Diploma in
Business Admin.
P.G Diploma in Pers. Mgt.
Mr Banibrata Pandey 49 M.Sc(Micro.), G.M/Head-Bio 19.09.2002 25 3105448 Senior Manager, Barnaby
Ph.D(Sc),M.B.A Informatics & Res Technologies Ltd., USA
Mr Rajendra Swarup 54 B.Tech(Chem) Head-NIC 08.10.2002 26 2889595 General Manager-Production,
Duncan Agro
Mr R Durga Prasad 52 M.S.W,LLB G.M-HPD 01.06.2006 28 2415552 Group Head-HR, ITW India Ltd.,
Mr M D Joshi* 60 B.E(Chem), V P - Projects 10.06.2005 37 2658651 Managing Director, GSEG Ltd.,
PGDIM
Mr Y Vijayanand* 61 M.A,B.L Corporate Advisor 01.11.2007 40 3045565 Deputy Managing Director, SBI
Mr R D Mall* 66 B.Tech(Chem) V P- Manuf 13.02.2005 41 2941765 Plant Incharge, Chambal Fertilizers
& Projects & Chemicals Ltd.,
Mr Himakara Dharudu* 62 M.A(Economics) Sr. General Manager 29.01.2005 40 2402656 General Manager-Busi. Devel. &
Inspection Offices, PDIL
Employed for part of the year
Mr K Krishna Murty 57 B.SC., A.C.A Sr. G M - Finance 12.06.2003 30 1984220 General Manager- Finance, Zuari Cements Ltd.,
Mr Kamalakant Roy* 63 B.Sc(Eng Mech) Exec Director-Projects 05.12.2007 39 1416984 Chairman & Managing Director,PDIL
Mr Sudhir Bhansali 51 B.Com, A.C.S, A.C.A Chief Financial Officer 13.05.2008 28 2940573 President & CFO, The Andhra
Pradesh Paper Mills Ltd.,
Mr Sudhakar Kudva* 58 B.Com(Hons),F.C.A V P -Corp Affairs 08.11.2008 33 1099100 Executive Director-Commercial,
Arcelor Mittal Ltd.,
Mr Mridul Chakraborty 50 MBA (Finance) VicePresident-Operations 14.11.2008 27 2370833 Corporate Head-Mawana Sugars Ltd.,
B.E(Chemical)
Notes: 1. All the above persons are regular employees of the company governed by the normal rules and regulations of the company applicable to them from time
to time except * marked who are on contractual basis and whose appointment are terminable by notice.
2. Remuneration includes Salary, Perquisites and Company’s contribution to Provident Fund, Gratuity and Superannuation Fund.
3. Shri K S Raju, Chairman & Managing Director and Shri K Rahul Raju, Joint Managing Director are related to each other.
4. None of the above employees hold 2% or more of the equity shares of the company within the meaning of sub-clause (iii) of Sub-section (2A) of Section
217 of the Companies Act, 1956.
11
NFCL
Statement pursuant to Section 212 of the Companies Act, 1956 relating to company’ s interest in subsidiary companies as at March 31,2009
Name of the Subsidiary company
Sl. No Particulars Jaiprakash Engineering
Nagarjuna Oil
and Steel Company Limited
Corporation Limited
1 The financial year of the subsidiary companies ended on 31st March, 2009 31st March, 2009
2 a) Number of shares held by Nagarjuna Fertilizers and
Chemicals Ltd with its nominees in the subsidiaries 225,61,693 69,97,20,000
at the end of financial year of the subsidiary companies Equity Shares of face value Equity Shares of face value
of Rs.10/- each fully paid-up of Rs.10/- each fully paid-up
b) Extent of interest of holding company at the end
of the financial year of the subsidiary companies 99.84% 71.07%
3 The net aggretate amount of the subsidiary companies
profit/loss so far as it concerns the members of the
holding company.
a) Not dealt with in the holding company’s accounts
i) For the financial year ended 31st March, 2009 —- —-
ii) For the previous financial years of the subsidiary
companies since they became the holding
company’s subsidiaries —- —-
b) Dealt with in the holding company’s accounts
i) For the financial year ended 31st March, 2009 —- —-
ii) For the previous financial years of the
subsidiary companies since they became the
holding company’s subsidiaries —- —-
For and on behalf of the Board
K S Raju N C B Nath
Chairman & Managing Director S R Ramakrishnan
Directors
Hyderabad M. Ramakanth
April 29, 2009 Secretary
Particulars of Subsidiaries as at March 31, 2009 in terms of approval dated March 4, 2009 obtained by the company under
Section 212 (8) of the Companies Act, 1956 from the Government of India. Rs. Lakhs
Name of the Subsidiary company
Jaiprakash Engineering
Sl. No Particulars Nagarjuna Oil
and Steel Company
Corporation Limited
Limited
a. Capital 103,938.00 5,771.90
(including share application money)
b. Reserves 1.07 2.85
c. Total Assets
Fixed Assets (incl. CWIP) 126,227.42 28.83
Expenditure Pending Allocation 42,523.75 3,885.72
Current Assets, Loans & Advances 16,604.60 1,939.41
Miscellaneous Expenditure 3,270.90
(to the extent not written off or adjusted)
d. Total Liabilities
Loans Secured / Unsecured 60,951.81 42.56
Others 23,735.79 36.65
e. Details of Investment -
(except in case of
investment in subsidiaries)
f. Turnover - -
g. Profit before taxation - -
h. Provision for taxation - -
( on Miscellaneous Income)
i. Profit after taxation - -
j. Proposed dividend - -
Note: No profit and loss A/c has been prepared as the projects are under implementation. However a statement on
expenditure during construction pending allocation has been prepared in accordance with Schedule VI to the Companies Act,
1956.
Checked and found correct
M Bhaskara Rao & Co.
Chartered Accountants
V.K. Muralidhar for Nagarjuna Fertilizers and Chemicals Limited
Partner
Hyderabad M Ramakanth
April 29, 2009 Secretary
12
NFCL
CORPORATE GOVERNANCE REPORT FOR THE culture of transparency, accountability and integrity
YEAR 2008-2009 across the company.
(Annexure D to the Directors’ Report) i v ) Perceiving and mitigating the various risks that impact
the company.
A. COMPANY’S PHILOSOPHY
v ) Make timely and transparent disclosures.
At Nagarjuna, we believe in the philosophy of SERVING
SOCIETY THROUGH INDUSTRY, with the Nagarjuna v i ) Legal and statutory compliances.
Culture being ‘We live every moment of life in harmony Your company’s contributory factor is self regulatory
with nature to create value for ourselves, our stakeholders system of prompt reporting, monitoring, certification and
and the society’. voluntary code of practice and standards which improves
This philosophy is backed by principles of concern, management effectiveness, supervision and
commitment, ethics, excellence and learning in all its accountability to stakeholders.
acts and relationships with stakeholders, customers, CORPORATE ETHICS
associates and community at large which has always
propelled the Group towards higher horizons. As a responsible corporate the company consciously
follows corporate ethics in both business and corporate
Owing to the changing business environment in which the interactions. The various Codes and Policies adopted by
company today operates, your company has drawn up a the company, act as a guiding principle to its functioning.
Vision ‘To be global leaders in plant nutrition’ with a Some of our Codes and Policies are:
Mission ‘We shall pioneer transformation in plant nutrition,
deliver wholesome plant nutrition solutions to the farmers G Code of Conduct and Ethics for Senior Management
and be the most preferred organization to be associated G Code of Conduct for Prevention of Insider Trading
with’. G Policy of Corporate Social Responsibility
At Nagarjuna, we continue to strive to transform the G Policy of Corporate Governance
business environment we operate in. We are committed G Legal Compliance Policy
to continuously evoke customer delight through constant G Whistle Blowers Policy
review, monitoring and delivering proactive value added G Policy on Vendor’s Grievances
solutions. We are also committed to strive for
satisfaction of all stakeholders in a balanced manner G Policy on Supply Chain
through sustainable growth and profitability. We also aim G Policy on Succession Planning
to create an environment where work becomes enjoyable G Policy on Employee Participation in Management
experience so as to align individual goals with G Policy on Conflict Management
organizational goals, share knowledge and information, G Policy on Training for Board of Directors
be pro-active and responsible, pursue excellence and be
G Policy on Induction of Directors
committed so as to transform the society around. Our
aim is to create an environment which enhances G Board Charter
opportunities for all the good things, better health, These Codes / Policies and their effective implementation
education and overall quality of living that life has to underpin the commitment of the company to uphold
offer. highest principles of Corporate Governance consistent
At Nagarjuna, we believe that it is not the latest technology with the company’s goal to enhance stakeholder value.
or management practice (as important as they are) that These Codes / Policies have been briefly described in
makes an organization successful as it ought to be. the Report.
However, what makes it an enterprise worthy of emulation DATE OF REPORT
is that it shapes up the environment in which it grows. and
to achieve this, we strive to be a learning organization The information provided in the Corporate Governance
where creativity, innovation, entrepreneurship and Report for the purpose of unanimity is as on March 31,
knowledge sharing are encouraged and fostered actively. 2009.
We believe in the principles of trusteeship, fair play and The report is updated as on the date of the report wherever
transparency in all our dealings. We endeavor to have a applicable.
work culture, which is performance driven and conducive B. BOARD OF DIRECTORS
to improving discipline, accountability, depth of character,
team spirit and honesty in all our personal and professional PECUNIARY RELATIONSHIP
relationships. Non executive Directors/ Independent Directors are
We also believe that mutual care and concern among the committed to high level of Corporate Governance and as
employees and the organization shall be a guiding principle. such they do not have any material pecuniary relationship
with the company except as stated in the Corporate
GOVERNANCE PHILOSOHPY Governance Report.
Your company firmly believes that building a culture of COMPOSITION
compliance is more than meeting regulations and
standards. Your company is always proactive in meeting The Board of Directors of the company consists of an
mandated standards and practicing Corporate Governance optimum combination of Executive and Non Executive
in spirit and not just the letter of the Law. Directors, from eminent fields. The composition of the
Board is in conformity with the Clause 49 of the listing
Your company’s philosophy on Corporate Governance is agreement, which stipulates that not less than fifty
based on following principles: percent of the Board of Directors should comprise of
i) Preserving core values and ethical business conduct. Non- Executive Directors and where the Chairman of the
Board is an Executive Director, at least half of the Board
ii) Commitment to maximizing shareholder value on a should comprise of Independent Directors.
sustained basis.
The members of the Board of Directors of the company
iii) To enhance the efficacy of the Board and inculcate a include nominees of Industrial Development Bank of India
13
NFCL
Limited, IFCI Limited, State Bank of India, Government BOARD MEETINGS HELD DURING THE YEAR
of Andhra Pradesh, our co-promoters Krishak Bharathi The Board of Directors met five times during the year on April
Co-operative Limited and Snamprogetti and Nominees of 29, 2008, July 25, 2008, September 26, 2008, October 30,
Core Promoter Companies. 2008 and January 20, 2009. The maximum gap between any
The table below shows the composition of the Board as on two meetings was less than four months.
March 31st, 2009 DIRECTORS ATTENDANCE AND DIRECTORSHIP HELD
CATEGORY NO. OF % OF TOTAL NO. None of the Directors of your company are Directors on the
Board of more than fifteen companies or ten Board level
DIRECTORS OF DIRECTORS Committees or Chairman in more than five Committees,
Executive Directors 4 33 across all companies in which they are Directors.
Non Executive Directors 2 17 The table below gives the details of the Board and AGM
Non Executive and attendance, membership in Committees of Board of Nagarjuna
Fertilizers and Chemicals Limited and Directorships held in
Independent Directors 6 50 other companies, for the year 2008-2009.
Attendance Committees of Board of No. of Board, Committee Memberships &
Particulars NFCL Chairmanship (Other than NFCL) in
DIN Public, Pvt. Sec 25 Companies etc.
Director Board
No. AGM
Meetings Board Board Committees
held on
attended/
26-09-08 Chair Director Chair Director
held
Shri Chandra Pal
Singh Yadav 00023382 3/5 Ye s NIL 2 5 3 2
Smt D Lakshmi
Parthasarathy* 00661803 0/5 No • Audit
• Management Nil 3 Nil Nil
Shri B Sam Bob** 01595001 1/3 No • Management 3 6 Nil Nil
INDEPENDENT &
NON EXECUTIVE
Shri Ashok Chopra 00047113 0/5 No NIL Nil Nil Nil Nil
Dr. N C B Nath 00026509 4/5 No • Audit
• Remuneration Nil 1 Nil Nil
• Investor Grievance
• Asset Sale Management
• Warrants Allotment
Shri M P Radhakrishnan 00129222 4/5 No • Asset Sale Management
• Management Nil Nil Nil Nil
Shri S R Ramakrishnan 00015839 3/5 No • Audit
• Asset Sale Management
• Remuneration
• Warrants Allotment. 2 1 Nil 3
Shri B K Batra 00011318 3/5 No • Audit
• Management
• Asset Sale Management
• Investment
• Remuneration Nil 2 Nil 4
Shri B B Tandon 00740511 4/5 Ye s • Asset Sale Management Nil 15 5 10
EXECUTIVE DIRECTORS
Shri P P Singh 00051401 5/5 Ye s • Investment
• Warrants Allotment
• Investor Grievance
• Shares & Debentures
• Banking Nil 3 1 1
Shri R S Nanda 00008255 5/5 Ye s • Warrants Allotment
• Shares & Debentures
• Banking Nil 2 Nil 1
Shri K Rahul Raju 00015990 5/5 Ye s NIL Nil 10 Nil Nil
Shri K S Raju 00008177 5/5 Ye s • Audit
• Management
• Asset Sale Management
• Investment
• Shares & Debentures
• Banking 8 11 4 2
* Ceased to be Director w.e.f April 29, 2008
** Appointed as Nominee Director of the Government of Andhra Pradesh w.e.f September 16, 2008
*** Ceased to be Director w.e.f March 13, 2009
14
NFCL
BOARD AGENDA AND MINUTES The table below shows the details of remuneration paid to
Agenda papers are generally circulated to the Board members Non Executive / Independent Directors of the company during
well in advance before the meeting of the Board of Directors. the financial year 2008 – 2009. Rs.
All material information is incorporated in the agenda papers Sitting Fees paid for attending
for facilitating focused discussions at the meeting. Name of the Director meetings of the Board of Directors /
Committees of Directors
Matters of urgent nature are approved by the Board by passing NON EXECUTIVE
resolutions through circulation. Shri Chandra Pal Singh Yadav 30,000
INFORMATION TO THE BOARD Shri B Sam Bob 20,000
The Board has complete access to all information with the INDEPENDENT
company. Interalia the following information is regularly & NON EXECUTIVE
provided to the Board as part of the agenda papers. Shri B K Batra 1,10,000*
Shri Ashok Chopra NIL
G Monthly operations report and quarterly results of the Shri K M Jaya Rao** 40,000*
company. Dr N C B Nath 1,50,000
G Annual operating plans, budgets, capital budgets, Shri M P Radhakrishnan 80,000
updates and all variances. Shri S R Ramakrishnan 80,000
G Contracts in which Directors are deemed to be interested. Shri B B Tandon 40,000
G Materially important show cause notices, demand, * Paid to respective Banks
prosecutions or other legal notices. ** Ceased to be a Director w.e.f March 13, 2009
G Materially relevant default in financial obligations to and Remuneration to Executive Directors
by the company. The Executive Directors’ remuneration is subject to
G Significant labour problems and their proposed solutions compliance of Schedule XIII of the Companies, Act 1956 and
other applicable provisions. The Board, on the
and other significant developments.
recommendations of the ‘Remuneration Committee of the
G Compliance of any regulatory, statutory nature or listing Board of Directors’, considers the remuneration of the
requirements. Executive Directors. The Board recommends the remuneration
G Minutes of the meetings of the Board of Directors and of Executive Directors, for approval of the shareholders, at
Committees of the Board of Directors. the General Body Meeting or any such authority as may be
required.
G Status of subsidiary companies.
The table below shows the details of remuneration paid to
G Minutes of meetings of the Board of Directors of Executive Directors of the company during the financial
subsidiary companies. year 2008 – 2009. Rs.
G Details of related party transactions. Salary Performance
Directors Perquisites
G Quarterly compliance report on Clause 49 and any non Name p.m Linked Bonus
compliance. To be paid based
Shri K S Raju 2,00,000 @perquisites are
G Report on risk assessment and minimization procedures. restricted to an amount on assessment of
G Information on recruitment and remuneration of senior Board of Directors
equal to the annual
as applicable to
managerial personnel below the Board level. salary. m a n a g e r i a l
G Fatal or serious accidents, dangerous occurrences, any personnel
material effluent or pollution problems. Shri K Rahul Raju 1,50,000* Same as above NA
G Issues which involves possible public or product liability Shri R S Nanda 1,75,000 Same as above NA
claims of substantial nature, including any judgement or Shri P P Singh 1,75,000** Same as above NA
order which, may have passed strictures on the conduct * w.e.f April 1, 2008 to June 25, 2009
of the company or taken an adverse view regarding ** w.e.f April 1, 2008 to February 23, 2009.
another enterprise that can have negative implications The company during the year 2008-2009 did not advance
on the company. any loans to any of its Directors. The company had
G Significant sale of investments, subsidiaries, assets, provided a housing loan to Shri K S Raju in accordance
with the rules of the company in the year 1997 after
which are not in the normal course of business. obtaining requisite approvals.
G Details of any joint ventures or collaboration agreements.
@ Perquisites include housing, medical reimbursement, leave
G Transactions that involve substantial payment towards travel concession, club fees, personal accident insurance,
goodwill, brand equity or intellectual property. gratuity, provident fund, superannuation fund, earned leave
G Quarterly details of foreign exchange exposures and the and car etc.
steps taken by the management to limit the risks of There is no additional payment being made towards
adverse exchange rate movement, if material. performance of managerial personnel.
REVIEW OF LEGAL COMPLIANCE REPORTS The company has not entered into any contract with the
The Board periodically reviews during the year the compliance managerial personnel and the notice period is governed by
reports in respect of the various statutory enactments the rules of the company and no severance fees is
payable.
applicable to the company.
The company does not have any stock option scheme for
REMUNERATION TO DIRECTORS
the managerial personnel.
Remuneration to Non Executive Directors/ Independent
Directors RE-APPOINTMENT OF THE DIRECTORS
The Non Executive Directors of the company, whether According to the Articles of Association of the company,
Independent or Non Independent, are paid sitting fees for one third of the Directors are liable to retire every year
attending the meetings of the Board of Directors / Committees and if eligible, offer themselves for re-appointment at
of Board of Directors. every Annual General Meeting.
15
NFCL
The table below shows the list of the Directors retiring by rotation and being re- appointed and the Directors whose tenure of
Directorship is extended.
Name of the Date of Birth Last Re- Qualification & Experience Directorships in Membership of
Directors appointment Other Companies Committees of the Board
Date (Only Public Cos.,) in other Companies.
ROTATIONAL DIRECTORS
Shri S R
Ramakrishnan 04-02-35 21-09-07 B.E (Mech.) Hons. • Shriram EPC Limited Shriram EPC Limited
Former MD, Bokaro Steel Plant, SAIL • Nagarjuna Oil • Audit Committee
Former Director, Raw Materials, SAIL Corporation Limited • Investment
Former Director, Commercial, SAIL Committee
• Compensation Committee
Shri Chandra Pal 19-03-59 21-09-07 M.Sc, B.Ed, L.L.B • Krishak Bharati Co- NIL
Singh Yadav 20 years of experience operative Limited
• IFFCO – TOKIO General
Insurance Limited
• Gujurat State Energy
Generation Limited
• National Agricultural
Co-operative Marketing
Federation
• KRIBHCO Shyam
Fertilizers Limited
• IFFCO Tokio Insurance
Services Limited
• Krishi Utpadan Evam
Vipnan Sahakari Samiti
• National Coop Union
of India
Shri. P P Singh 15-01-41 24-02-08 FIE • Jai Prakash Engineering Jai Prakash Engineering
Engineer with 44 years of experience in & Steel Company Ltd & Steel Company Ltd
management of fertilizer companies. • Ikisan Ltd • Audit Committee
• Remuneration
16
NFCL
RETIREMENT POLICY OF THE DIRECTORS encourage healthy discussions and openness amongst the
The company does not have a Retirement Policy for the members of the Board.
members of the Board of Directors of the company. TRAINING FOR THE BOARD MEMBERS
RESPONSIBILITIES OF THE DIRECTORS As part of ongoing knowledge sharing and updation, the Board
of Directors are updated with relevant statutory amendments
Responsibilities of the Board and landmark judicial pronouncements encompassing
The primary role of the Board is that of trusteeship to protect important laws such as Company law, SEBI Law, Income Tax
and enhance shareholders’ value. As trustee, the Board Law etc, at meetings of the Board of Directors.
ensures that the company has clear goals and policies for The company whenever required, has engaged reputed
achievement. The Board oversees the company’s strategic consultants to advise for developing training and other
direction, reviews corporate performance, authorizes and processes in line with best international corporate governance
monitors strategic decision, ensures regulatory compliance practices.
and safeguards interests of stakeholders.
The Board of Directors meet periodically senior managerial
Responsibilities of the Chairman and Managing Director personnel and discuss areas of interest of the company.
The Board of Directors at their Meeting held on April 29, 2009 The company as a good governance practice had put in
delegated the powers to Shri K S Raju, Chairman and Managing place a “Policy on Training of Board of Directors”.
Director to enable him carry out the day-to-day operations COMMITTEES TO THE BOARD
of the company. The powers encompass all areas such as
finance, personnel, legal, general and miscellaneous powers. The Board of Directors have constituted various committees
with adequate delegation to focus on specific areas and take
Responsibilities of the Joint Managing Director decisions so as to discharge day to day affairs of the
In order to strengthen the internal operations of the company company. Each committee is guided by its charter, which
and provide an impetus to the future growth of the company defines the composition, scope and powers of the Committee.
and with a view of Succession Planning, Shri K Rahul Raju All decisions and recommendations of the Committees are
was appointed as Joint Managing Director of the company placed before the Board of Directors.
with effect from November 1, 2008, for the balance of his The Committees constituted by the Board as on date are:
term as Director – Business Development and Strategic 1. SHARES AND DEBENTURES COMMITTEE
Planning.
The Shares and Debentures Committee consists of:
Responsibilities of Other Whole Time Directors Shri K S Raju Chairman
Shri R S Nanda, Director and COO, is incharge of the Shri P P Singh Member
operations of the company, which includes plant operations, Shri R S Nanda Member
marketing operations and human resources development. The Committee met every Saturday from April 2008 to
Shri P P Singh, Director (Technical) is responsible for the November 2008 and thereafter twice in a month for the balance
company’s forays into new projects. period, apart from considering matters through circulation.
The quorum is two members present in person.
SHARES HELD BY EXECUTIVE AND NON – EXECUTIVE Terms of reference:
DIRECTORS Allotment of Shares, accept calls in advance, and / or Share
The table below shows the shares held by Executive Directors capital not called up, approve / reject or otherwise deal with
of the company, as on March 31, 2009. applications for transfer, transmission, transposition,
Name of the Director Shares Held mutation of shares and debentures, issue share and debenture
certificates including duplicate, split, sub-divide or
EXECUTIVE DIRECTORS consolidated certificates and to deal with all related matters.
Shri K S Raju 28700 2. INVESTOR GRIEVANCES COMMITTEE
Shri K Rahul Raju 3202 The Investor Grievances Committee of Directors met four
Shri R S Nanda 2200 times during the financial year 2008-2009.
Shri P P Singh NIL
The table below shows the list of members of Investor
None of the Non Executive Directors were holding any shares Grievances Committee and the various dates on which
in the company. Meetings were held and their attendance particulars.
PLEDGE OF SHARES Name of the Dates of Meeting and attendance particulars
Category
The company in compliance of the amended SEBI (Substantial Member 29-04-08 25-07-08 30-10-08 20--01-09
acquisition of shares and takeovers) Regulations, 1997 made
necessary disclosures to the Stock Exchanges intimating Dr. N C B Nath Chairman
the details of the shares pledged by the promoter and every Shri P P Singh Member
person forming a part of the promoter group. *Shri K M Jaya Rao Member
CODE OF CONDUCT AND ETHICS
The company adopted the Code of Conduct and Ethics for * Ceased to be a Director w.e.f March 13, 2009
Directors and senior management personnel. The Code has - Present, - Absent
been circulated to all the members of the Board and senior The quorum is two members present in person.
management and the same has been put on the company’s Terms of reference:
website www.nagarjunafertilizers.com.
The committee, inter alia looks into and redresses
The Board of Directors and senior managerial personnel have shareholders / investors grievances relating to
affirmed their compliance with the Code and a declaration
along with certificate of compliance appears in the annexure a. transfer of shares
to the Corporate Governance Report. b. non-receipt of declared dividends
c. non-receipt of Balance Sheet and
LEAD INDEPENDENT DIRECTOR d. all such complaints directly concerning the
Dr. N C B Nath, who is the Chairman of the Audit Committee shareholders / investors as stakeholders of the
of Board of Directors, is the Lead Independent Director. The company.
Lead Independent Director on behalf of the Independent e. and such other matters that may be considered
Directors provides structural feedback to the Board to necessary in relation to shareholders, debenture
holders and investors of the company.
17
NFCL
3. MANAGEMENT COMMITTEE Dates of Audit Committee Meetings and
Name of the attendance particulars
The Management Committee of Directors met four times Category
Member 29-04-08 25-07-08 30-10-08 20-1-09
during the financial year 2008-2009, apart from considering
matters through circulation due to inadequate quorum. Dr. N C B Nath Chairman
The table below shows the list of members of the Shri B K Batra Member
Management Committee and the various dates of Meetings
and their attendance particulars. Shri S R
Name of the Dates of Meeting and attendance particulars Ramakrishnan Member
Category
Member 29-04-08 25-07-08 30-10-08 20-01-09 Shri K S Raju Member
Shri K S Raju Chairman Shri K M Jaya
Rao * Member
Shri B K Batra Member
Shri M P Radha * Ceased to be a Director w.e.f March 13, 2009
krishnan Member - Present, - Absent
The Secretary of the company also acts as Secretary to the
Shri B Sam Committee. The Statutory Auditors, the Cost Auditor and the
Bob* Member NA NA Head-Internal Audit are present as invitees for the Meetings
Shri K M Jaya of the Audit Committee.
Rao** Member The quorum is two independent members present in person.
* Appointed as Nominee Director of Government of Andhra Pradesh w.e.f Terms of reference:
September 16, 2008
1. Oversee the company’s financial reporting process and
** Ceased to be a Director w.e.f March 13, 2009
the disclosure of its financial information to ensure that
- Present, - Absent
the financial statement is correct, sufficient and credible.
The quorum is two members present in person. 2. Recommending to the Board, the appointment, re-
Terms of reference: appointment and, if required, the replacement or removal
1. To review the operations of the company from time to of the statutory auditor and the fixation of audit fees.
time and also formulate and review corporate objectives 3. Approval of payment to statutory auditors for any other
and strategies including long range plans for expansion / services rendered by the statutory auditors.
diversification of the company’s activities. 4. Reviewing, with the management, the annual financial
2. To formulate annual budgets / business plans for the statements before submission to the Board for approval,
company. with particular reference to:
3. To approve capital expenditure other than proposals for a) Matters required to be included in the Director’s
Responsibility statement to be included in the Board’s
expansion, diversification, modernization and de-
Report in terms of clause (2AA) of Section 217 of the
bottlenecking, including investment in immovable
Companies Act, 1956.
property, above Rs. Five Crores upto Rs. Ten Crores
b) Changes, if any, in accounting policies and practices
per proposal, excluding the authority already delegated
and reasons for the same.
to Managing Director or Internal Management, as the
c) Major accounting entries involving estimates based on
case may be, as per Delegation of Authority.
the exercise of judgement by management.
4. To approve revenue expenditure above Rs. Five Crores d) Significant adjustments made in the financial statements
and upto Rs. Ten Crores in case of procurements on a arising out of audit findings.
single tender basis or above Rs. Ten Crores upto e) Compliance with listing and other legal requirements
Rs. Fifteeen Crores on multi tender basis excluding the relating to financial statements.
authority already delegated to Managing Director or f ) Disclosure of any related party transactions.
Internal Management, as the case may be, as per
g) Qualifications in the draft audit report.
Delegation of Authority.
h) Review regarding the going concern assumption and
5. To make donations / contributions to charitable and other compliance with the accounting standards.
funds other than to any political party or for political 5. Reviewing with the management, the quarterly financial
purposes up to an aggregate amount of Rs.10 lakhs in statements before submission to the Board for approval.
any financial year. 6. Reviewing, with the management, the statement of uses /
6. To lay down and review from time to time company’s application of funds raised through an issue (public issue,
employment policy. rights issue, preferential issue, etc.) in terms of offer
4. AUDIT COMMITTEE document/ prospectus issued if any.
The Audit Committee of Directors consists of well 7. Reviewing with the management, performance of
qualified and Independent Directors. Presently it statutory and internal auditors, adequacy of the internal
comprises of four members, and complies with the control systems.
stipulation that two thirds of the members shall be 8. Reviewing the adequacy of internal audit function, if
Independent Directors. All the members of the committee any, including the structure of the internal audit
possess adequate knowledge of finance and accounts. department, staffing and seniority of the official heading
the department, reporting structure coverage and
The scope of the activities of the committee, are in
frequency of internal audit.
conformity as are set out in clause 49 II (D) of the
9 Discussion with internal auditors any significant findings
listing agreement with stock exchanges read with section
and follow up thereon.
292A of the Companies Act, 1956.
10. Reviewing the findings of any internal investigations by
The table shows the list of members of Audit Committee the internal auditors into matters where there is suspected
and the various dates on which Meetings were held and fraud or irregularity of a failure of internal control systems
the attendance particulars. of a material nature and reporting the matter to the Board.
18
NFCL
11 Discussion with statutory auditors before the audit The quorum is two members present in person.
commences, about the nature and scope of audit as well Terms of reference:
as post-audit discussion to ascertain any area of concern. Availment of fund based and non-fund based credit
12. To look into the reasons for substantial defaults in the facilities by the company from Financial Institutions and
payment to the depositors, debenture holders, Banks, as per the limits delegated by the Board of Directors
shareholders (in case of non payment of declared of the company.
dividends) and creditors. 6. INVESTMENT COMMITTEE
13 To review the functioning of the Whistle Blower The Investment Committee of Directors met once during
mechanism, in case the same is existing. the financial year 2008-2009, apart from considering
14 Carrying out any other function as is mentioned in the matters through circulation due to inadequate quorum.
terms of reference of the Audit Committee. The table shows the list of members of Investment
15 To review the company’s financial and risk management Committee and Meeting date and the attendance
policies. particulars.
The Audit Committee is empowered, pursuant to Meeting Date and
its terms of reference, to: Attendance
Name of the Member Category particulars
² Investigate any activity within its terms of reference
03-07-08
and to seek any information it requires from any
employee. Shri K.S. Raju Chairman
² Obtain legal or other independent professional advice Shri P P Singh Member
and to ensure the attendance of outsiders with relevant Shri B K Batra Member
experience and expertise, when considered necessary.
REPORT OF THE AUDIT COMMITTEE OF DIRECTORS - Present, - Absent
FOR THE YEAR ENDED MARCH 31, 2009
The quorum is two members present in person.
To the shareholders of Nagarjuna Fertilizers and
Chemicals Limited. Terms of reference:
a. During the year under review, the company’s various 1. Investment of surplus funds in units, discounting of
departments, divisions spread all over India were LC backed bills, clean bill discounting, inter-corporate
audited by the In-house Internal Audit Department deposits and investment in shares.
of the company and the reports placed before the
Audit Committee for consideration. 2. To dis-invest or pledge the securities such as shares,
b. The audits were carried out pursuant to an Audit debentures, government bonds, etc., held by the
Calendar prepared by the Internal Audit Department company in its name from time to time and do all
of the company and approved by the Audit such acts, deeds and things that are necessary in
Committee in the beginning of the year. this regard.
c. The Audit Committee noted the Audit Report, the 7. REMUNERATION COMMITTEE
view of the Auditee and the Management on the
observations of the Internal Audit Department. The Remuneration Committee of Directors met thrice
d. The Audit Committee’s suggestions from time to during the financial year 2008-2009, apart from considering
time were implemented by the company during the matters through circulation due to inadequate quorum.
course of the year. The table shows the list of members of Remuneration
e. The Internal Audit Department adopted a Risk Based Committee and the various dates on which Meetings were
approach to the Internal Audit in accordance with the held and the attendance particulars
recommendations of the Institute of Chartered
Accountants of India. This was in comparison to the Dates of Meeting and
earlier system of transaction mode of Audit. Name of the attendance particulars
Category
f . The Audit Committee sought clarifications from the Member
29-04-08 25-07-08 20-01-09
Auditors, Cost Accountant and the Management of
the company, whenever required, in relation to the
financial matters of the company as per the scope Dr. N.C.B.Nath Chairman
and powers of the Audit Committee. Shri SR Ramakrishnan Member
g. The Audit Committee meetings were interactive. Shri B K Batra Member
h. The Committee is recommending to the Board the
reappointment of M/s.M. Bhaskara Rao & Co., - Present, - Absent
Chartered Accountants as statutory auditors of the
company, to carry out audit of the accounts of the The quorum is two members present in person.
company for the financial year 2009-2010. Terms of reference:
Hyderabad Sd/-
To fix the remuneration payable to Managerial Personnel from
April 29, 2009 Chairman,Audit Committee
time to time.
5. BANKING COMMITTEE REMUNERATION POLICY:
The Banking Committee of Directors met nine times during The remuneration paid to Executive Directors is considered
the financial year 2008-2009. and recommended by the Remuneration Committee and
The banking committee consists of approved by the Board of Directors, keeping in view the
Shri K S Raju - Chairman provisions of Companies Act, 1956. The approval of the
Shri P P Singh - Member Board of Directors is subject to the approval by the
Shri R S Nanda - Member shareholders and such other authorities, as the case may
be.
19
NFCL
REMUNERATION COMMITTEE REPORT FOR THE YEAR C. MANAGEMENT
ENDED MARCH 31, 2009. The management identifies, measures, monitors and
To the Shareholders of Nagarjuna Fertilizers and Chemicals minimizes the risk factors in the business and ensures safe,
sound and efficient operation. Your company has developed
Limited: and implemented policies, procedures and practices that
The Committee is responsible for considering and attempt to translate the company’s core purpose and mission
recommending to the Board of Directors, the remuneration into reality.
paid to Executive Directors. The Committee ensures All these policies, procedures and practices are elaborated
compliance under Companies Act, 1956, and other applicable hereunder:
provisions. a. Policy of Corporate Governance
The Committee reviewed and commended the remuneration The company always makes conscious efforts to inculcate
of Shri R S Nanda, Shri P P Singh and Shri K Rahul Raju, best Global Corporate Governance practices and goes beyond
Executive Directors. adherence to regulatory framework.
Hyderabad Sd/- The company towards its commitment to trusteeship,
transparency, accountability and equality in all its dealings
April 29, 2009 Chairman, Remuneration Committee and to maintain positive bonding has put in place a ‘Policy of
8. WARRANTS ALLOTMENT COMMITTEE Corporate Governance’
The members of the Warrants Allotment Committee are as b. Policy of Corporate Social Responsibility (CSR)
under: The company’s dedicated philosophy of “SERVING SOCIETY
Name of the Member THROUGH INDUSTRY” is envisaged through the above
Category Policy.
At Nagarjuna, CSR is an initiative to “create new value” to
Dr. N.C.B.Nath Chairman economic, environmental and social issues and is intended
Shri S R Ramakrishnan Member to identify your company with the society to establish rapport,
Shri P P Singh Member increase competitiveness, and achieve sustainable growth,
for better social development.
Shri R S Nanda Member c. Policy on Vendor’s Grievances
To ensure consistent smooth and timely supply of quality
The quorum is two members present in person. material and services at economically viable and competitive
Terms of Reference : prices from various vendors, without any grievances, the
Policy on Vendors’ Grievances is adopted.
Allotment of warrants and its conversion into shares and all d. Policy on Supply Chain
other related matters. Your company being the largest manufacturer and marketer
of agri inputs in South India, has introduced a ‘Policy on
9. ASSET SALE MANAGEMENT COMMITTEE - Supply Chain’, to ensure quality products are delivered timely
to end customer, through a network of suppliers.
The Asset Sale Management Committee of Directors is
e. Prohibition of Insider Trading
constituted in terms of the Corporate Debt Restructuring
The company has implemented a Policy prohibiting Insider
approval by the Financial Institutions and Consortium of Trading in conformity with regulations of the Securities and
Banks. Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992. Necessary procedures have been laid
The members of Asset Sale Management Committee are: for insiders identified from time to time, which prohibits
trading in the securities of the company, based on unpublished
price sensitive information.
Name of the Member Category
f. Succession Planning
Dr. N.C.B.Nath Chairman Your company has put in place a Policy on Succession
Planning, which is an ongoing process that identifies
Shri B B Tandon Member necessary competencies, and then works to assess, develop,
Shri M P Radhakrishnan Member and retain a talent pool of associates, in order to ensure a
Shri K M Jaya Rao* Member continuity of leadership for all critical positions.
g. Policy of Employee Participation in Management (EPM)
Shri S R Ramakrishnan Member
Your company has framed a mechanism where the associates
Shri B K Batra Member have an involvement and ownership in the decision making
Shri K S Raju Member process of the organization. The purpose of EPM is to increase
production and productivity, evaluation of costs, development
* Ceased to be a Director w.e.f March 13, 2009 of personnel, expansion of markets and risk management.
h. Whistle Blower Policy
The quorum is three members present including two The company has formulated a Policy to prohibit managerial
Institutional Nominees present. personnel from taking adverse personnel action against
Terms of Reference: employees disclosing in good faith, alleged wrongful conduct
The primary objective is to sell the various assets, which the on matters of public concern involving violation of any law,
company considers as non-performing or surplus. mismanagement, misappropriation of public funds etc.
RISK ASSESSMENT AND MINIMISATION PROCEDURE Employees aware of any alleged wrongful conduct are
encouraged to make a disclosure to the Audit Committee.
The company has formulated an Enterprise Risk Management
System to manage and mitigate unforeseen risks. The No personnel of the company has been denied access to the
implementation of this system is through the Risk Management Audit Committee.
Steering Committee. The Committee is supported at Plant by i. Legal Compliance Policy
Plant Risk Management Committee and at Corporate Office by The company has a Legal Compliance Policy for duly
Corporate Risk Management Committee. complying with Central, State and Local Laws and Regulations
The Committee at an early stage identifies, manages and to achieve and maintain the highest business standards and
responds to critical, cautionary and manageable risks in a benchmark the internal legal practices against the International
systematic manner. To actively involve and inculcate the risk Standards.
management right down the Organization ‘Risk Owners and Risk j. Policy on Conflict Management
Champions’ were appointed for each Department. Board members The company has adopted a Policy on Conflict Management,
periodically review existing / new risks and action plans formulated which aims to resolve conflicts, at the lowest possible level,
to mitigate the risks. using procedures that address and respect the needs, interest
20
NFCL
and rights of associates in a fair and efficient manner. This Retrieval (EDIFAR) website of SEBI (www.sebiedifar.nic.in)
is attained through the use of both, formal and informal within the timeframe prescribed in this regard.
conflict management processes. These tools are effectively
coordinated through the Conflict Management System (CMS). CorpFiling Facility
k. Policy on Training for Board of Directors The company as a good governance measure (though not
At Nagarjuna, we strongly believe in the concept of mandatory) has commenced filing information to the stock
continuous learning. The Policy ensures that the Board of exchanges through CorpFiling website, www.corpfiling.co.in.
Directors, being at the highest level in the Organization Investor Grievance Redressal
Structure, too require training and development, to enable The company has 5,43,989 shareholders. The company during
update themselves and provide best services to the company. April 1, 2008 to March 31, 2009 received 4651 letters / complaints
The training requirements of Directors vary in view of their from the investors, out of which 4641 letters were attended and
nature of nomination on the Board and their training needs resolved and the balance letters / complaints were resolved
are structured accordingly. subsequently. 3,444 requests for transfer of shares and 10,988
l. Policy on Induction of Directors requests for dematerialisation / rematerialisation of shares were
The Policy places the responsibility on the Chairman of the received and the shares were dematerialised / rematerialised.
Board to ensure that all new Board members are well briefed The table below shows the details of shareholder’s or depositor’s
and have access to all aspects of the company’s operations. queries / complaints/ requests received and resolved during the
The new Directors would be briefed on several matters like, financial year 2008-2009.
duties and powers of Directors, special duties or arrangements
attaching to the position, requirement to disclose Directors Opening Received Replied *Closing
interest, confidentiality and right to access company Nature of Letters Balance
Balance
information etc. In addition to the above, new Directors will
be provided with other information like company constitution, Change of address 0 628 628 0
policies, organization structure and other relevant information. Revalidation of dividend warrants 0 81 81 0
m. Board Charter Share transfers 0 3444 3444 0
This charter sets out the role, structure, responsibilities and Demat / Remat of Shares 0 10988 10988 0
operations of the Board of the company and its delegation of Issue of duplicate certificates 42 237 269 10
authority to the management. Transmission of shares 0 318 318 0
The charter sets out the role of the Board as a Trustee of the Deposit complaints 0 27 27 0
stakeholders and the company, who provide strategic
direction, review corporate performance, authorize and monitor General queries 0 3318 3318 0
strategic decisions, ensure regulatory compliances and * The queries of the shareholders / depositors mentioned
safeguard their interest. above have been since attended and resolved.
MANAGEMENT DISCUSSION AND ANALYSIS
This Annual Report has a detailed chapter on Management SHARE TRANSFER SYSTEM
Discussion and Analysis. The company‘s transfer of shares activity is fully
MANAGEMENT DISCLOSURES computerized.
Directors and Senior Management Personnel of the company,
as well as certain identified key associates make quarterly The dematerialized shares are directly transferred to the
disclosures to the Board relating to all material, financial and beneficiaries by the depositories.
commercial transactions where they have interest, conflicting Compliance Officer
with the interest of the company. The interested Directors do
not participate in the discussion nor do they vote on such Shri M Ramakanth is the Compliance Officer for complying
matters when the matter is considered by the Board of with the requirements of SEBI (Prohibition of Insider Trading)
Directors. Regulations, 1992 and the listing agreements with the stock
D. STAKEHOLDERS exchanges of India.
DISSEMINATION OF INFORMATION
Share Transfer Agents
The company has established systems and procedures to
disseminate relevant information to its stakeholders including XL Softech Systems Limited, Hyderabad is the Share Transfer
shareholders, auditors, suppliers, customers, employees and Agents.
financers. The primary source of information regarding the
operations of the company, including the quarterly results, Nomination facility
can be viewed on the company’s website Shareholders holding physical shares may file nominations
www.nagarjunafertilizers.com.
in prescribed Form 2B of the Companies (Central
The quarterly and annual results of the company are sent to
the Stock Exchanges immediately after they are approved Governments’ General Rules and Forms), 1956 to the
by the Board of Directors and published in widely circulated Registrar and Transfer Agents of the company. Those holding
English and in vernacular newspapers. shares in dematerialized form may contact their respective
Quarterly Results sent electronically Depository Participant (DP) to avail the nomination facility.
The company had proactively through its Annual Report 2006- Dematerialization of Shares and Liquidity
2007 and 2007-2008 invited the shareholders to inform the
company about their email IDs.As an investor friendly The shares of the company are under the category of
measure the unaudited financial results of the company, compulsory delivery in dematerialized mode by all categories
were emailed to the shareholders in addition to being published of investors.
in the newspaper.
The company is using this channel of communication The company has signed agreements with both the
extensively, for carrying out substantial correspondence with depositories i.e., National Securities Depository Limited and
the shareholders to reduce costs while maintaining reach to Central Depository Services (India) Limited. As on March
the shareholders. Shareholders who have not yet 31, 2009, over 85.40% of the shares of the company are
registered their email IDs, may immediately do so at already dematerialized.
[email protected]
EDIFAR The status on the dematerialisation of the equity shares of
As per the requirements of Clause 51 of the listing agreement the company is furnished below :
with the stock exchanges, all the data relating to quarterly Total No. of Equity Shares : 42,81,81,821
financial results, shareholding pattern etc are being
electronically filed on Electronic Data Information Filing and Total No. of Shareholders : 5,43,989
21
NFCL
The table below shows the status on the dematerialization of the equity shares of the company:
The company’s ISIN No. for dematerialization for both NSDL and CDSL is INE 580A01013.
SECRETARIAL AUDIT
A Practicing Company Secretary of the Institute of Company Secretaries of India, has carried out secretarial audit every
quarter to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository
Services (India) Limited (CDSL) and the total issued and listed capital. The audit confirms that the total issued/ paid-up
capital is in agreement with the aggregate total number of shares in physical form and the total number of dematerialized
shares held with NSDL and CDSL
DISTRIBUTION OF SHAREHOLDING
The table below shows the distribution of shareholding of various groups as on March 31, 2009
The table below shows the distribution of promoter and non- The table below shows the details of persons holding more
promoter shareholding as on March 31, 2009 than 1 % shareholding in the company, as on March 31, 2009
NO. OF Sl.
%OF SHARE %
CATEGORY SHARES No. NAME OF THE COMPANY
HOLDING
HELD
Indian Promoters
PROMOTERS HOLDING 15,11,03,328 35.29
d. Others (please specify) —- —- 9 Nagarjuna Staff Betterment Co. Pvt. Ltd. 2.66%
10 Nagarjuna Employee Welfare Foundation 1.85%
GRAND TOTAL 42,81,81,821 100.00%
22
NFCL
STOCK PRICE DATA
The table below shows the monthly high, low per month on the National Stock Exchange and Bombay Sock Exchange during
the financial year 2008-2009.
HIGH & LOW PRICE OF SHARES PER MONTH ON BSE & NSE
MONTH BSE NSE
HIGH(RS) LOW(RS) HIGH(RS) LOW(RS)
April 2008 53.95 35.15 54.00 35.00
May 2008 52.30 40.50 52.30 40.50
June 2008 49.90 34.75 49.90 34.75
July 2008 40.00 28.25 39.95 28.50
August 2008 44.95 36.65 44.90 36.65
September 2008 39.45 25.00 39.50 25.20
October 2008 28.90 15.05 29.25 14.50
November 2008 21.50 13.20 22.00 13.15
December 2008 18.53 12.75 18.50 12.35
January 2009 19.00 14.35 18.95 14.30
February 2009 19.00 14.70 18.90 14.70
March 2009 18.60 13.10 18.60 13.30
GENERAL BODY MEETINGS
The Thirty Second Annual General Meeting of the company held on September 26, 2008, was attended by over 2300
shareholders including nominees of Promoter companies and 55 proxies.
Shri K S Raju, Chairman & Managing Director, Chaired the Meeting.
The table shows the details of the previous three General Body Meetings and the Special Resolutions passed.
LAST THREE ANNUAL GENERAL MEETINGS
NO. OF AGM & F.Y DATE & TIME LOCATION SPECIAL RESOLUTION(S) PASSED
30 TH AGM 28-09-2006 Sri Satya Sai Nigamagamam
2005-2006 at 10.00 a.m 8-3-987/2, Srinagar Colony No special resolutions were passed.
Hyderabad – 500 073
31ST AGM 21-09-2007 Sri Satya Sai Nigamagamam Preferential issue of 2,25,00,000
2006-2007 at 10.00 a.m 8-3-987/2, Srinagar Colony warrants to core promoters.
Hyderabad – 500073
32 ND AGM 26-09-2008 Sri Satya Sai Nigamagamam
2007-2008 at 10.00 a.m 8-3-987/2, Srinagar Colony No special resolution was passed
Hyderabad – 500073
Postal Ballot
During the financial year 2008-2009 no resolution was passed Deposit holders who have not claimed their deposit maturity
through postal ballot by the company amount or interest on deposits are requested to do so
DETAILS OF PUBLIC FUNDING IN THE LAST THREE YEARS before the due dates for transfer to the Investor Education
The company has not raised any funds from the public since the and Protection Fund.
Public Issue of the company in 1992. Reminders
The company has not issued any GDRs / ADRs. The company as a good Corporate Governance had regularly
mailed reminders to the deposit holders for claiming the unclaimed
MONEYS REMAINING UNCLAIMED WITH THE COMPANY deposits / interest on deposits. Apart from this a last reminder
Fixed Deposit was mailed, atleast one month before the unclaimed amount was
In relation to deposits accepted by the company, as on March 31, transferred to the Investor Education and Protection Fund.
2009 an amount of Rs.9,06,824/- remained unclaimed. DISCLOSURES
The company as a proactive measure and as a service to the Compliance with mandatory requirements of Listing
depositors has informed the depositors of their having not claimed Agreement
their deposit and interest. a. Related party Transactions
Money remaining unclaimed with the Company 1. Names of related parties and description of relationship.
The company as a service to shareholders / debenture holders a) Subsidiaries
and depositors informs them of their not claiming of dividends / (i) Nagarjuna Oil Corporation Limited
interest on debentures or deposits etc., at least one month before (ii) Jaiprakash Engineering & Steel Co. Limited
the amounts remaining unclaimed is transferred to the Investor b) Associates
Education and Protection Fund to enable them claim the same (i) iKisan Limited
from the company. (ii) Nagarjuna Agrichem Limited
The details of the amount unclaimed under various categories is c) Key Management Personnel
furnished below: Shri K S Raju, Chairman & Managing Director
i. Unclaimed Dividends Shri K Rahul Raju, Joint Managing Director
Shri P P Singh, Director - Technical
There are no unclaimed dividends due for transfer to the Investor Shri R S Nanda, Director & Chief Operating Officer
Education and Protection Fund. d) Relatives of Key Management Personnel.
ii. Unclaimed Deposits and Interest on Deposits (i) Smt. Lakshmi Raju (Daughter of Shri K S Raju and
Unclaimed deposits / unclaimed interest on deposits transferred Sister of Shri K.Rahul Raju)
to Investor Education and Protection Fund upto the year ended (ii) Smt. Lakshmi Raju (sister of Shri K S Raju)
March 31, 2009 : e) Enterprises able to exercise significant influence
Amount transferred Nagarjuna Holdings Private Limited, its associates and
Upto March 31, 2009 - Rs.10,23,845/- nominees constituting the Core Promoter Group
23
NFCL
Related party transactions are as under: Rs lakhs
Subsidiaries Associates Key Mgmt. Enterprises able Subsidiaries Associates Key Mgmt. Enterprises able
S.No. Nature of Transaction
31-03-09 31-03-09 Personnel/ to exercise 31-03-08 31-03-08 Personnel/ to exercise
Relative of Key significant Relative of Key significant
Management influence Management influence
Personnel 31-03-09 Personnel 31-03-08
31-03-09 31-03-08
01. Finance :
a. Equity ---- --- --- --- 1522.00 --- --- ---
b. Share Appln. Money --- --- --- --- ---- --- --- ---
c. Share Warrants --- --- --- ------ --- --- --- 652.50
d. Refund of Share Appln. Money --- --- --- --- --- --- --- ---
e. Advances Given ---- 5142.31 --- --- (2512.14) --- --- ---
f. Advances Received 0.33 125.00 --- --- --- --- --- ---
02. Lease Rental Received ---- 6.01 --- --- ------ 6.01 --- ---
03. Remuneration to Key Mgmt.
Personnel --- --- 177.31 --- --- --- 147.95 ---
04. Rent Paid --- --- 46.06 --- --- --- 16.20 ---
05 Others --- 9.64 --- --- --- --- --- ---
24
NFCL
GENERAL SHAREHOLDERS INFORMATION
33rd Annual General Meeting 17th day of September 2009 at 10.00 AM
Date, Time and Venue Sri Satya Sai Nigamagamam, Srinagar Colony, Hyderabad
Dates of Book Closure September 1, 2009 to September 17, 2009
(both days inclusive)
Registered Office Nagarjuna Hills, Punjagutta, Hyderabad - 500 082.
Plant Location The company has two Plants located at Beach Road, Kakinada, East
Godavari District, Andhra Pradesh
Compliance Officer Shri M Ramakanth, Vice President – Legal & Secretary
Ph No. (040) 23355317. Fax (040) 23350247
Email : [email protected]
Share Transfer Agent XL Softech Systems Limited
Plot No.3, Sagar Society, Road No. 2, Banjara Hills,
Hyderabad – 500 034.
Email : [email protected]
Dividend history for the last five years The company has not declared dividend since the year 2000.
Tentative dates for considering Financial Results Quarter ending June 30, 2009 - 3rd week of July ‘2009
Quarter ending September 30, 2009 -3rd week of October ‘2009
Quarter ending December 31, 2009 - 3rd week of January ‘2010
For the year ending March 31, 2010 - 4th week of April ‘2010
Listing on Stock Exchanges & Stock Code STOCK CODE BSE : 500075
The Stock Exchange, Mumbai Corporate Relationship Department,
1st Floor, New Trading Ring, Routunda Building
PJ Towers, Dalal Street, Fort Mumbai -400 001
STOCK CODE NSE : NAGARFERT
National Stock Exchange of India Limited,
Exchange Plaza, 5th Floor, Plot No.C/1, G Block,
Bandra – Kurla Complex, Bandra (E), Mumbai - 400 051
Listing fee Listing fees for the year 2009-2010 has been paid to the
stock exchanges, in the stipulated period, where the equity
shares of the company are listed.
ISIN No INE 580A01013 for NSDL and CDSL.
CIN No. L24129AP1976PLC001983
CERTIFICATION BY CHIEF EXECUTIVE OFFICER AND with existing accounting standards, applicable laws
CHIEF FINANCIAL OFFICER OF THE COMPANY and regulations.
5. We also certify, that based on our knowledge and the
We, K S Raju, Chairman & Managing Director and CEO and
information provided to us, there are no transactions
Sudhir Bhansali, Chief Financial Officer, of Nagarjuna
entered into by the company, which are fraudulent or
Fertilizers and Chemicals Limited, to the best of our knowledge
illegal.
and belief certify that :
6. The company’s other certifying officers and we are
1. We have reviewed the balance sheet and profit and loss
responsible for establishing and maintaining internal
account of the company for the year ended March 31,
controls and procedures for the company, and we have
2009, and all its schedules and notes on accounts, as
evaluated the effectiveness of the company’s internal
well as the cash flow statement.
controls and procedures and confirm them to be
2. Based on our knowledge and information, these adequate.
statements do not contain any untrue statement of a
7. The company’s other certifying officers and we have
material fact or omit to state a material fact necessary
disclosed, based on our most recent evaluation of internal
to make the statements made.
controls and systems and have to state
3. Based on our knowledge and information, the financial
a. That there were no deficiencies in the design or
statements, and other financial information included in
operation of internal controls, which we are aware;
this report, fairly present in all material respects, the
financial condition, results of operations and cash flow b. That there have been adequate internal controls in
of the company as of, and for, the periods presented in the company.
this report, and are in compliance with the existing c. That there was no fraud, which we have become
accounting standards and / or applicable laws and aware of and that involves management or other
regulations. employees who have a significant role in the
4. To the best of our knowledge and information : company’s internal control systems;
a. these statements do not contain any materially d. That there were no changes in accounting policies
untrue statement or omit to state a material fact or during the year.
contains statement that might be misleading.
b. these statements together present a true and fair Hyderabad K S Raju Sudhir Bhansali
view of the company’s affairs and are in compliance April 29, 2009 Chairman & Managing Director Chief Financial Officer
25
NFCL
DECLARATION REGARDING COMPLIANCE BY BOARD MANAGEMENT DISCUSSION AND ANALYSIS
MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH
THE CODE OF CONDUCT AND ETHICS 1. INDUSTRY SCENARIO AND DEVELOPMENT
This is to inform you that the company has adopted a Code of The recession that has set-in and the global financial melt
Conduct and Ethics applicable to all the members of the Board of
down has impacted every sector in the economy.
Directors and senior management personnel of the company.
The details of the Code of Conduct and Ethics are available at The fertilizer sector had seen high prices of fertilizers on
the company’s website at www.nagarjunafertilizers.com.
account of the high price of the raw material last year.
I confirm that the company has in respect of the financial year The recession has resulted in lower price of crude oil and
ended March 31, 2009, received from all the members of the natural gas resulting in drop in prices of raw material and
Board of Directors and all the senior management personnel of
fertilizers.
the company a declaration of compliance with the Code of
Conduct and Ethics as applicable to them . The impact of the recession and the global financial melt
Senior management personnel are personnel, who are a part of down nevertheless has not impacted the demand for
the core management team, comprising personnel one level fertilizers. The necessity to increase food production to
below the executive directors and including all functional heads meet the ever growing demand of agricultural produce in
as on March 31, 2009.
the country shall ensure a continued demand for fertilizers.
Hyderabad K S Raju
April 29, 2009 Chairman & Managing Director The demand for Urea in domestic market has been
CERTIFICATE ON CORPORATE GOVERNANCE increasing year after year, but there is no adequate supply
To the Members of of domestic manufactured Urea to meet the demand as
the domestic production is stagnant and there were no
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED
capacity additions in the last decade. This gap between
We have examined the compliance of conditions of Corporate demand and domestic supply is being met through imports.
Governance by NAGARJUNA FERTILIZERS AND
CHEMICALS LIMITED for the year ended on March 31, 2009, The Policy of the Government of India continues to drive
as stipulated in Clause 49 of the listing agreement of the the fertilizer sector in India with its controls over existing
said company with stock exchanges in India.
and new capacity, import quantities, pricing, distribution,
The compliance of conditions of Corporate Governance is inputs, subsidy and other manufacturing entities. With
the responsibility of the management. Our examination has
the ever increasing demand for fertilizers, shortfall in
been in the manner described in the guidance note on
Certification of Corporate Governance issued by the Institute indigenous production and sky-rocketing subsidy burden
of Company Secretaries of India and has been limited to a on the Government, the need of the hour is to de-control
review of the procedures and implementation thereof adopted the fertilizer sector, otherwise the Government would be
by the company for ensuring compliance with the conditions left with no other option but to import fertilizers at high
of Corporate Governance as stipulated in the said clause. It cost resulting in a heavy out-go of foreign exchange.
is neither an audit nor an expression of opinion on the financial
statements of the company. The only welcome decision by the Government till date is
In our opinion and to the best of our information and according the new investment policy which provides that the
to the explanations given to us, and based on our reliance additional production under the revamp of the existing
upon the representations made by the management that there units will be eligible for additional benefits benchmarking it
were no transactions of material nature with the management with Import Parity Price with a cap and collar.
or by relatives that may have potential conflict with the
interest of the company at large, as stated under Disclosures The gap between the original budgetary provision for
Column of the company’s Report on Corporate Governance. subsidy and actual subsidy payment has widened over
The Share Transfer Agent of the company has certified the the years. The Government has been trying to bridge the
number of complaints received from the investors and the gap by supplementary budgetary grants and payment of
number of complaints resolved during the financial year and
subsidy in the form of bonds instead of cash. This has
there are no complaints pending as at the year end as stated
under Investor Grievance Redressal Column of the company’s resulted in delays in the release of subsidies which has in
Report on Corporate Governance. turn adversely affected the working capital burden of
fertilizers companies. This liquidity crunch has forced the
We certify that the company has complied in all material
respects with the conditions of Corporate Governance as fertilizer companies to sell the fertilizer bonds at discount,
stipulated in the above mentioned Listing Agreement. affecting the overall financial health of the companies.
We further state that such compliance is neither an assurance It is accordingly imperative for the policy makers to re-
as to the future viability of the Company nor the efficiency
look at the fertilizer sector and re-draft the age-old policies
or effectiveness with which the management has conducted
the affairs of the company. to suit the present day dynamic environment. The policy
should provide for gradual de-control of fertilizer sector,
For KBG ASSOCIATES
Company Secretaries rewarding efficient companies and providing fiscal sops
(Srikrishna S Chintalapati) for new Greenfield and Brownfield domestic investments
Hyderabad Partner to ensure better return on capital employed and reduce
May 11, 2009 CP # 6262 dependence on costly imports.
26
NFCL
2. COMPANY’S STRENGTHS AND WEAKNESSES 4. FUTURE STRATEGIC DIRECTIONS
Your company’s strength lies in operating one of the most Your company based on the present government policy
energy efficient and productive plants in the world. Your as well as its own strengths and weaknesses and financial
company continues to successfully break its past records constraints, in order to meet the guidelines of the
in exhibiting highest ever production registered, year after government has drawn-up a strategic plan to increase
year. production of urea through a selective investment to the
extent of increasing the CO2 requirement consequent to
Your company has very recently commissioned the CDR
the change over to natural gas and undertaking the mini
Plant of 450 metric tonnes per day of CO2 capacity for
revamp and de-bottlenecking project.
commercial use in the existing urea production facilities.
The CDR Project is being carried out under Clean The company has completed the CO 2 recovery project
Development Mechanism which shall reduce CO emission and expects to complete the mini revamp project by the
2
by 450 metric tonnes per day. 3rd quarter of the financial year.
Your company continues to be impacted adversely by The de-bottlenecking and revamp of the existing Plant
Government Policies. The subsidies budgeted for fertilizer would result in capacity of the Plant going up from the
companies by the Government have been insufficient present 13.5 Lakh MTS per annum to 15.65 Lakh MTS per
resulting in delay in receipt of the same. This has resulted annum.
in higher accumulation of receivables and with the sale of
fertilizer bonds at a discounted price for want of funds, To further your company’s growth, the Micro Irrigation
the fertilizer companies have been stressed financially. division is being given additional impetus. New production
lines have been established to increase the production
3. RISKS AND CONCERNS substantially in the coming years. The Management of
your company is planning to increase the market share of
Your company has from its inception been conscious and
micro irrigation business.
has regularly evaluated the risks and threats that control
it and converted these threats into opportunities to its Your company shall continue to trade in Urea and other
best advantage. Fertilizers so as to bring in extra revenue to the company.
Your company continues to make progress in research in
The Risk Management Steering Committee at the apex
areas so as to help the company replace the costly and
level and supported by Plant Risk Management Committee
scarce feed stock and fuels with cost effective
at Plant and by Corporate Risk Management Committee
alternatives.
at Corporate Office administers the Enterprise Risk
Management of the company. The company is also planning to manufacture and sell
Customized Fertilizers which would be crop and soil specific
The Enterprise Risk Management of your company
and would benefit farmers with increased productivity
basically originates at the shop floor level, where every
from their fields.
associate is free to communicate any risk that is
perceived. This risk is communicated to the Risk 5. INTERNAL CONTROL
Champions and the Risk Owners in the department and
the division in the company. After deliberation of the risk Your company has adequate internal control systems in
at the department and division level, the risk is escalated place to identify the deviations, if any and to take
to the Plant Risk Management Committee or the Corporate corrective actions at the right time. This is to ensure that
Risk Management Committee, where the risks are all the functions are process-oriented and not person-
discussed, deliberated and mitigated. The risks that the oriented. The existing control systems are updated
two committees perceive as threats and the efforts for periodically with the help of Information Technology and
mitigation of the same and thereafter escalated to the other initiatives.
Risk Management Steering Committee of the company 6. HUMAN RESOURCES / INDUSTRIAL RELATIONS:
for consideration, review, follow-up and finding solutions
to the risks at the apex level. Your company during the year has taken up various Human
Potential Development initiatives for the Renewal and
Risks are quantified in monetary terms for the loss that Revitalization of the company. Training of associates in
the company would suffer, to make every associate various areas was given importance along with specific
conscious of the impact of a risk. time bound action plans for developing much needed
The Risk Management Steering Committee reports critical leadership at all levels. This is to ensure that succession
risks and other risks to the Audit Committee for discussion planning is in place at all levels to address the needs of
and direction on a quarterly basis. the dynamic work environment.
The Risk Management in your company has been The outcome of the initiatives is good and encouraging
functioning effectively and has been contributing to the with associates exhibiting confidence and leadership skills
mitigation of the risks that would have otherwise impacted at work place leading to better communication, team work
the company. and co-operation.
27
NFCL
AUDITOR’S REPORT regarding management’s perception of recoverability of
The Members of certain outstanding advances and other notes and
significant accounting policies thereon give the
Nagarjuna Fertilizers and Chemicals Limited
information required by the Companies Act, 1956. In the
1. We have audited the attached balance sheet of manner so required and give a true and fair view in
Nagarjuna Fertilizers and Chemicals Limited, as at 31st conformity with the accounting principles generally
March, 2009, the profit and loss account and also the accepted in India;
cash flow statement for the year ended on that date
i) In the case of the balance sheet of the state of affairs
annexed thereto. These financial statements are the
of the company as at 31st March, 2009.
responsibility of the company’s management. Our
responsibility is to express an opinion on these financial ii) In the case of the profit and loss account, of the profit
statements based on our audit. for the year ended on that date; and
2. We conducted our audit in accordance with the auditing iii) In the case of the cash flow statement, of the cash
standards generally accepted in India. Those standards flows for the year ended on that date.
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
for M. BHASKARA RAO & CO.
statements are free of material misstatement. An audit
Chartered Accountants
includes examining, on a test basis, evidence supporting
the amounts and disclousures in the financial
V.K. MURALIDHAR
statements. An audit also includes assessing the
Hyderabad Partner
accounting principles used and significant estimates
April 29, 2009 MEMBERSHIP NUMBER 201570
made by management as well as evaluating the overall
financial statement presentation. We believe that our
Annexure
audit provides a reasonable basis for our opinion.
Re : Nagarjuna Fertilizers and Chemicals Limited
3. As required by the Companies (Auditor’s Report) Order, Referred to in paragraph 3 of our report of even date
2003 as amended by the Companies (Auditor’s Report)
(i) (a) The company has maintained proper records showing
Order, (Amendment) 2004 issued by the Central
full particulars including quantitative details and situation
Government of India in terms of sub-section (4A) of
of fixed assets.
section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matters specified in (b) According to the information and explanations given to
paragraphs 4 and 5 of the said Order. us, the fixed assets (excluding assets given on lease)
have been physically verified by the management during
4. Further to our comments in the Annexure referred to
the year in a phased programme which in our opinion, is
above, we report that :
reasonable having regard to the size of the Company
i) We have obtained all the information and explanations, and the nature of the assets. No material discrepancies
which to the best of our knowledge and belief were were noticed on such verification.
necessary for the purposes of our audit;
(c) According to the information and explanations given to
ii) In our opinion, proper books of account as required by us, the Company has not disposed off substantial part
law have been kept by the company so far as appears of fixed assets. hence reporting on the going concern
from our examination of those books; status in this regard does not arise.
iii) The balance sheet, profit and loss account and cash (ii) (a) Physical verification of inventories at Plants and at ware
flow statement dealt with by this report are in agreement houses has been conducted by the management at
with the books of account. reasonable intervals during the year.
iv) In our opinion, the balance sheet, Profit and Loss account (b) In our opinion and according to the information and
and cash flow statement dealt with by this report, comply explanations given to us, the procedures of physical
with the applicable accounting standards referred to in verification of inventories followed by the Management
sub-section (3C) of Section 211 of the Companies Act, are reasonable and adequate in relation to the size of
1956. the company and nature of its business.
v) On the basis of written representations received from (c) In our opinion, the company is maintaining proper records
the directors, as on 31st March, 2009 and taken on of inventories and based on the information and
record by the Board of Directors, we report that none of explanations given to us, discrepancies noticed on
the directors is disqualified as on 31st March, 2009 physical verification were not material in relation to the
from being appointed as a director in terms of clause operations of the company and the same have been
(g) of sub-section (1) of section 274 of the Companies properly dealt with in the books of account.
Act, 1956.
(iii) (a) The Company has not granted any loan, secured or
vi) In our opinion and to the best of our information and unsecured to companies, firms or other parties covered
according to the explanations given to us, the said in the register maintained under Section 301 of the
accounts read together with Note No 8 regarding Group Companies Act, 1956. Accordingly sub clauses (b), (c)
Concession Scheme - Subsidy and Note No. 9 (b) and (d) of clause (iii) of this Order are not applicable.
28
NFCL
(b) The Company has not taken any loan, secured or (b) According to the Information and explanations given to
unsecured from companies, firms or other parties covered us, there are no dues of Sales tax / income tax/ custom
in the register maintained under Section 301 of the tax / wealth tax / service tax / excise duty / cess which
Companies Act, 1956. Accordingly sub clauses (f) and have not been deposited on account of any dispute.
(g) of clause (iii) of this Order are not applicable. (x) The Company has no accumulated losses as at 31st
(iv) In our opinion and according to the information and March, 2009. The Company has not incurred any cash
explanations given to us. there are adequate internal losses in the financial year under report and in the
control systems commensurate with the size of the immediately preceding financial year.
company and the nature of its business with regard to (xi) During the year, the company has not defaulted in
purchase of inventory and fixed assets and for the sale repayment of dues to Financial Institutions, Banks and
of goods and services. During the course of our audit, debenture holders.
we have not observed any continuing failure to correct (xii) According to the information and explanations given to
major weaknesses in internal control system. us, the company has not granted any loans and
(v) (a) In our opinion and according to the information and advances on the basis of security by way of pledge of
explanations given to us, and based on the shares, debentures and other securities.
representations by the management, all the contracts or (xiii) The company is not a Chit fund/Nidhi/Mutual benefit
arrangements that need to be entered in the register fund/ Society. Therefore the provisions of clause 4(XIII)
maintained under section 301 of the Act have been so of the Companies (Auditors’ Report) Order, 2003 are not
entered. applicable to the company.
(b) In our opinion and according to the information and (xiv) The company is not dealing or trading in shares,
explanations given to us, the transactions made in securities, debentures and other investments.
pursuance of such contracts or arrangements and Accordingly the provisions of clause 4(xiv) of the
exceeding the value of Rupees Five Lakhs in respect of Companies (Auditors’ Report) Order, 2003 are not
any party during the year have been made at prices applicable to the company.
which are reasonable having regard to the prevailing (xv) According to the information and explanations given to
market prices wherever available at the relevant time. us, the company during the year has not given any
(vi) In our opinion and according to the information and guarantee for loans taken by others from banks or
explanations given to us, the Company has complied financial institutions.
with the directives issued by Reserve Bank of India and (xvi) Term Loans obtained by the company during the year
provisions of Section 58A and 58AA or any other relevant have been applied for the purposes for which they were
provisions of the Act and the Companies (Acceptance of obtained.
Deposits) Rules 1975 with regard to deposits accepted (xvii) According to the information and explanations given to
from the public. According to the information and us and on an overall examination of the balance sheet
explanations given to us, the Company has complied of the company, we report that no funds raised on
with the orders passed by the Company Law Board or short - term basis have been used for long term
National Company Law Tribunal or Reserve Bank of India investment by the company.
or any Court or any other Tribunal on the Company in
(xviii) During the year the company has not made any
respect of the aforesaid deposits.
preferential allotment shares to the parties and
(vii) The Internal audit of the Company has been conducted companies covered in the Register maintained under
by internal audit department. In our opinion, the scope Section 301 of the Act. However, a reference is invited
and coverage of Internal Audit is commensurate with the to Note 3 of the Schedule 13 to the financial statements
size of the Company and nature of its business. regarding annulment of warrants and forfeiture of 10%
(viii) We have broadly reviewed the books of account payment made by the core promoters.
maintained by the Company pursuant to the Rules made (xix) According to the information and explanations given to
by the Central Government for maintenance of cost us, the company has created securities for the
records prescribed under Section 209(1) (d) of the debentures issued in the previous years.
Companies Act, 1956, and are of the opinion that prima
(xx) The company has not raised any money by public issues
facie the prescribed accounts and records have been
during the year.
made and maintained.
(xxi) In accordance with the information and explanations
(ix) (a) According to the information and explanations given to
given to us and on our examination of books and records,
us, the company is regular in depositing undisputed
no fraud on or by the company has been noticed or
statutory dues including Provident Fund, Investor
reported during the year.
Education and Protection Fund, Employees’ State
for M. BHASKARA RAO & CO.,
Insurance. Income-tax, Sales-tax, Wealth Tax, Service
Chartered Accountants
Tax, Custom Duty, Excise Duty, cess and other applicable
statutory dues with the appropriate authorities. There
V.K. MURALIDHAR
are no arrears of statutory dues as at 31st March, 2009
Hyderabad Partner
which are outstanding for a period of more than six
months from the date they became payable. April 29, 2009 MEMBERSHIP NUMBER 201570
29
NFCL
Balance Sheet as at March 31, 2009
Rs. lakhs
Particulars Schedule 31.3.2009 31.3.2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 46,520.31 46,517.78
Share Warrants (Refer Note No.3 of - 652.50
Schedule 13-B of Notes to Accounts)
Reserves and Surplus 2 115,748.04 120,197.88
162,268.35 167,368.16
Loan Funds 3
Secured Loans 124,750.66 139,131.26
Unsecured Loans 6,750.20 131,500.86 6,241.52 145,372.78
Deferred Tax Liability 18,121.19 19,655.41
TOTAL 311,890.40 332,396.35
APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 400,035.24 389,277.62
Depreciation (197,613.35) (177,295.95)
Lease adjustment (6,295.15) (6,295.15)
196,126.74 205,686.52
Capital Work in progress 8,755.70 3,023.09
Net Block 204,882.44 208,709.61
Investments 5 72,245.67 72,245.67
Current Assets, Loans and Advances 6
Inventories 7,494.23 18,923.84
Sundry Debtors 34,604.99 29,814.36
Cash and Bank Balances 5,745.65 3,119.66
Loans and Advances 28,775.79 27,857.20
Other Current Assets 6,478.17 13,737.36
83,098.83 93,452.42
Current Liabilities and Provisions 7
Current Liabilities (30,124.50) (27,314.00)
Provisions (18,212.04) (14,697.35)
Net Current Assets 34,762.29 51,441.07
'*** relating to earlier years (including transfer to investor education and protection fund - Rs. NIL (previous year Rs.107.15 lakhs ).
Authorised
60,00,00,000 Equity Shares of Rs.10/-each 60 ,000.00 60,000.00
2,00,00,000 Preference Shares of Rs 100/- each 20,000.00 20,000.00
TOTAL 80,000.00 80,000.00
Issued
42,81,81,821 Equity Shares of Rs.10/- each 42,818.18 42,818.18
37,20,372 0.01% Ordinary Redeemable
Preference Shares of Rs. 100/- each 3,720.37 3,720.37
TOTAL 46,538.55 46,538.55
Subscribed and Paid Up
42,81,81,821 Equity Shares of Rs. 10/- each
fully called up. 42,818.18 42,818.18
Of the above1,29,94,561 Shares were allotted
as fully Paid pursuant to the approved Schemes
of amalgamation without payments being
received in cash
Calls in arrears - Others (18.24) (20.77)
37,20,372 0.01% Ordinary Redeemable
Preference Shares of Rs. 100/- fully paid up 3,720.37 3,720.37
(refer note 3 of schedule 13.B)
TOTAL 46,520.31 46,517.78
General Reserve
As per last Balance Sheet 4,895.40 4,895.40
Add: Forfeiture of Advance received for
sale of shares in Subsidiary 200.00 5,095.40 - 4,895.40
Profit and Loss Account - Balance 15,820.19 12,579.18
TOTAL 115,748.04 120,197.88
33
NFCL
Schedules forming part of the Balance Sheet as at March 31, 2009
Schedule 3 - Loan Funds Rs. lakhs
Particulars 31.3.2009 31.3.2008
Secured Loans
(Refer note no. 4 of schedule 13-B )
A. Debentures - unquoted
i) 30,00,000 14.5% Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 2,580.00 2,730.00
ii) 80,00,000 15 % Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 2,522.81 2,669.49
iii) 1,53,30,000 15 % Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 15,330.00 15,330.00
iv) 25,00,000 15 % Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 2,150.00 2,275.00
v ) 30,00,000 13.25% Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 2,580.00 2,730.00
vi) 32,00,000 12.50 % Secured Redeemable Non-convertible
Debentures of Face Value of Rs.100 each 360.00 840.00
vii) 18,13,00,995 0 % Secured Redeemable Non-convertible
Debentures of Face Value of Re. 1/- each 1,813.01 1,813.01
27,335.82 28,387.50
B. From Institutions - Term Loans
i) in Rupees 10,596.09 11,966.56
C. From Banks
i) Working Capital Demand Loans / Cash Credit 28,730.81 39,188.90
ii) Term Loans 53,649.44 59,588.30
iii) In Foreign Currency 4,438.50 -
TOTAL 124,750.66 139,131.26
Unsecured Loans
Sales Tax Deferral - Loan 6,746.06 6,230.74
HDFC Loan 4.14 10.78
TOTAL 6,750.20 6,241.52
389,277.62 10,784.23 26.61 400,035.24 177,295.95 20,342.64 25.24 197,613.35 196,126.74* 205,686.52
Capital Work in Progress 8,755.70 3,023.09
Previous Year 383,533.57 5,799.65 55.60 389,277.62 157,077.96 20,262.16 44.17 177,295.95 205,686.52 220,160.46
1. Based on the reports of approved valuer on “Present market value basis (standard Indices) method” on 31.03.2003, the company revalued its free hold land
admeasuring 1040.28 acres. @ Rs.8842.38 lakhs which was substituted for the historical cost of land in the gross block of fixed assets. During the year, the company
paid Rs.296.76 Lakhs (Previous Year 12.35Lakhs) as enhanced compensation for the land purchased in the earlier years and this amount has been adjusted in the
revaluation reserve.
2. Buildings,Roads Drains Culverts, Railway sidings and Plant & Machinery of manufacturing facilities at Kakinada were revalued pursuant to report of approved valuer
on 31.03.2005 at Rs. 6346.57 lakhs, Rs. 3100.27 lakhs, Rs. 125.60 lakhs, Rs. 132185.30 lakhs respectively and Rs 808.89 lakhs decrease in respect of certain assets.
3. *** Represents leases where lease period is over, and equipments are yet to be trasfered to lessees.
4. Capital Work in Progress includes
a) Capital Advance of Rs.6271.42Lakhs (Previous year Rs.1121Lakhs)
b) Interest during Construction period of Rs. 279.84 Lakhs (Previous Year Rs.170.08Lakhs)
34
NFCL
Schedules forming part of the Balance Sheet as at March 31, 2009
Schedule 5 - Investments ( at cost)
Face
31.3.2009 31.3.2008
Particulars Value
Rupees Numbers Rs. lakhs Numbers Rs. lakhs
LONGTERM INVESTMENTS:
I. Equity Shares - Unquoted
a) Equity Shares (Fully Paid)
Nagarjuna Agricultural Research
and Development Institute 10 25,020 2.50 25,020 2.50
KVK Raju International
Leadership Academy 10 150,000 15.00 150,000 15.00
17.50 17.50
b) Shares in Subsidiary companies-
Unquoted
Nagarjuna Oil Corporation Limited 10 699,720,000 69,972.00 699,720,000 69,972.00
Jaiprakash Engg. & Steel Co. Ltd 10 22,561,693 2,256.17 22,561,693 2,256.17
(Refer Note No. 7B of Schedule 13-B) 72,228.17 72,228.17
II. Equity Shares - Quoted
(Fully paid - other than trade)
Sri Saritha Software and Industries Ltd. 10 391,275 36.53 391,275 36.53
36.53 36.53
72,282.20 72,282.20
Less: Provision for diminution in value of
Quoted investments 36.53 36.53
TOTAL 72,245.67 72,245.67
Aggregate cost of Quoted Shares 36.53 36.53
Aggregate Market Value of Quoted Shares 0.00 0.00
35
NFCL
Schedules forming part of the Balance Sheet as at March 31, 2009
Rs. lakhs
Particulars 31.3.2009 31.3.2008
Sundry Creditors
Micro,Small & Medium Enterprises 23.40 71.02
Others 27,529.33 25,176.27
Unclaimed Fixed Deposits 9.07 22.70
Interest accrued on above 2.40 3.67
Deposits 2,031.82 1,757.97
Other Liabilities 250.06 269.72
Interest accrued but not due on Loans/Deposits 278.42 12.65
TOTAL 30,124.50 27,314.00
Provisions :
Provision for Taxation 17,058.33 13,862.76
Provision for Fringe Benefit Tax 243.71 118.71
Proposed Dividend 0.37 0.37
Provision for Dividend Tax 0.06 0.06
Provision for Leave Encashment 892.21 622.44
Provision for Gratuity 17.36 93.01
TOTAL 18,212.04 14,697.35
36
NFCL
Schedules forming part of the Profit and Loss Account for the year ended March 31, 2009
Schedule 8 - Other Income Rs. lakhs
Particulars 31.3.2009 31.3.2008
38
NFCL
recognised subject to consideration of prudence, on timing differences, being the difference between taxable income
and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.
13. Contingencies:
Obligations arising from claims, litigation, assessments, fines, penalties, after sales warranties etc., are recognised for
when it is probable that a liability may be incurred, and the amount can be reasonably estimated.
B. NOTES TO ACCOUNTS:
1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance)
i) In respect of Capital and Service Orders Rs.5303.13 Lakhs (Previous year Rs.7713.00 lakhs)
ii) In respect of 86.55 acres of land in possession, compensation is not ascertained.
2 A. Contingent Liabilities:
(i) Counter guarantees given to Bankers in respect of Bank guarantees Rs.4697.29 Lakhs (Previous year Rs.3641.47
Lakhs)
(ii) (a) Corporate guarantees given to banks on behalf of Nagarjuna Oil Corporation Ltd., a subsidiary company Rs Nil
Lakhs (Previous year Rs. 11790.25 Lakhs) includes invoked guarantee of Rs Nil lakhs (Previous year Rs. 5222.82
lakhs.)
(b) In an agreement with the lenders and some shareholders of Nagarjuna Oil Corporation Limited, the Company has
agreed to give an undertaking to fund cost over runs, if any.
(iii) Taxation matters under appeals Rs.681.84 lakhs (Previous Year Rs.1706.52 lakhs)
B. Claims against the company not acknowledged as debts Rs.2133.58 lakhs (Previous year Rs.1955.85 lakhs).
3. Share Capital:
In accordance with the CDR Scheme 37,20,372 0.01% Optionally Convertible Cumulative Redeemable Preference
Shares – (OCCRPS) of Rs.100 each were issued to certain lenders to compensate the differential rate of interest for
the year 2003-04.
Pursuant to the Guidelines governing issues of Preference Shares, the said OCCRPS are to be converted into Equity
Shares within 18 months from the Date of Allotment. Since the said OCCRPS were not converted into Equity Shares
within the time prescribed by SEBI, they remain as Ordinary Redeemable Preference Shares. These are redeemable
after the entire debt liabilities are fully paid
The Warrants Allotment Committee of the Board of Directors at its meeting held on October 26, 2007 allotted 2,25,00,000
warrants convertible into equity shares to the Core Promoters of the company pursuant to the approval of the Board of
Directors and the Members of the company in accordance with the Guidelines prescribed by Securities and Exchange
Board of India for Preferential Issues at a price of Rs.29/-per warrant, the price being determined by the Statutory
Auditors of the company in accordance with the Preferential Issue guidelines.
The company has received Rs.652.50 lakhs being the 10% of the value of the warrants as advance and the balance
amount is to be received before 25 th April 2009. The company has received communication from the Core Promoters
expressing their inability to pay the balance amount and convert the said 2,25,00,000 warrants into equity shares. The
Warrants Allotment Committee of Directors had accordingly annulled the 2,25,00,000 warrants allotted to the Core
Promoters and the upfront 10% payment made by the Core Promoters stands forfeited in terms of the SEBI guidelines
for preferential issue.
4. Secured Loans:
A) DEBENTURES
i 30,00,000, 14.50% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to LIC redeemable
in 41 structured quarterly instalments commencing from 31st March, 2006 as per reschedulement in line with the
CDR Package.
ii 80,00,000, 15.00% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to IFCI, redeemable
in 41 structured quarterly instalments commencing from 31 st March, 2006 as per reschedulement in line with the
CDR Package.
iii 1,53,30,000, 15.00% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to ICICI,
redeemable in 21 structured quarterly instalments commencing from 31 st March, 2011 as per reschedulement in
line with the CDR Package.
i v 25,00,000, 15.00% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to IFCI, redeemable
in 41 structured quarterly instalments commencing from 31st March 2006 as per reschedulement in line with the
CDR Package.
v 30,00,000, 13.25% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to LIC, redeemable
in 41 structured quarterly instalments commencing from 31st March, 2006 as per reschedulement in line with the
CDR Package.
The interest rate stands revised to 11% p.a. w.e.f. 01.04.2007 in respect of Debentures stated at i,ii,iii, iv, and
v as per CDR letter dated 25 th October, 2007 regarding reset of interest rates.
v i 32,00,000, 12.50% Secured Redeemable Non-Convertible Debentures of Rs.100/- each issued to SBI, redeemable
in 20 equal quarterly instalments commencing from 31st March 2005 as per reschedulement in line with the CDR
Package.
The interest rate stands revised to 7.50% p.a. w.e.f. 01.04.2007 in respect of Debentures stated above as per
CDR letter dated 25 th October, 2007 regarding reset of interest rates.
The above debentures (excluding Rs.4300.00 lakhs, relating to assets given on lease, issued to ICICI are secured
by exclusive mortgage of leased assets) together with accrued interest, remuneration and other expenses thereof
are secured by a registered mortgage and an exclusive charge on the Company’s immovable property situated at
Ahmedabad and an equitable mortgage and a charge on the other immovable and movable properties of the
39
NFCL
Company in favour of the debenture trustees, save and except stock in trade, book debts given as security to
banks for obtaining working capital facilities and assets given on lease with exclusive charge in favour of the
funding institution.
vii 18,13,00,995 0% Secured Redeemable Non-Convertible Debentures of Re.1/- each have been issued to various
lenders viz. State Bank of India, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of
Patiala, State Bank of Travancore, State Bank of Saurashtra, Bank of India, Bank of Baroda, Indian Overseas
Bank, UCO Bank, Union Bank of India, The Bank of Rajasthan Ltd., SICOM Limited, Oriental Bank of Commerce,
Rabo India Finance (Pvt) Ltd., The Karur Vysya Bank Limited, Karnataka Bank Limited, IndusInd Bank Limited as
envisaged in the CDR Package to compensate the differential rate of interest for the year 2003-04. The
debentures are redeemable after the entire debt liabilities are fully repaid.
B) Term Loans from Institutions are secured by way of a charge created through an equitable mortgage of immovable
properties by deposit of title deeds and hypothecation of movable properties of the Company including movable plant
and machinery, spares, tools and other movables, present and future, save and except stock in trade, book debts, and
stores & spares, given as security to banks for obtaining working capital facilities and assets given on lease with
exclusive charge in favour of the funding institution. They are further secured by way of a second charge on the current
assets of the company.
C) Term loans from banks together-with interest accrued thereon, are secured by way of a first charge on the fixed assets
of the company ranking pari-passu with the financial institutions, a second charge (sub-ordinate to the financial
institutions) on the monthly subsidy and are further secured by way of a charge created through an equitable mortgage
by deposit of title deeds of certain immovable property of the Company.
D) Working Capital facilities from banks are secured by hypothecation by way of first charge on current assets , stock in
trade, book debts and stores & spares, present and future and second charge on the fixed assets of the company.
E) The company was sanctioned a Debt Restructuring Package (including working capital) under Corporate Debt Restructuring
(CDR) Scheme on 20.02.2004 effective from 1 st April 2003 vide letter no BY.CDR (AG)/ No.307/2003-04, dated 16 th
March 2004. All the lenders had approved and implemented the Package.
The lenders reserve the right to recompense the sacrifices being made in case the profitability and cash flow position
of the Company so warrants in future. The lenders have the right to reset the interest rates after every three years.
The lenders shall have the right to convert 20% of their outstanding debt after financial year 31.03.2011 into equity and,
in the event of any default in servicing the debt; the lenders shall also have the right to convert the defaulted amounts
into equity (at par) or any other instruments. The promoters shall be given the first right of refusal, if the converted
shares/instruments are decided to be sold by the lenders.
The Company is to disinvest its equity investments and recover loans and advances lent to subsidiary/group companies
to the extent and in the manner envisaged.
Shares held in subsidiary companies- NOCL (9,90,00,000) and JESCO (2,25,61,693) are under pledge with Banks/
Financial Institutions as security for the loan availed by the Company.
All the Term Loans from Institutions and Banks, Counter Guarantees, Working Capital facilities from banks are personally
guaranteed by Shri K.S.Raju, Chairman and Managing Director of the Company.
5. Unsecured Loans:
a) Fixed Deposits:
There are no deposits which are claimed but remain unpaid as on the date of the Balance Sheet. The balance of
matured unclaimed deposits outstanding as on 31.03.2009 was Rs 9.07 lakhs (previous year Rs.22.70 lakhs).
During the year unclaimed deposits transferred to the Investor Education and Protection Fund on the relevant due
dates Rs.9.19 Lakhs (previous year:Rs. 6.83 Lakhs).
b) Sales Tax Deferral:
The Govt. of Andhra Pradesh has extended to the Company, the incentive of sales tax deferral scheme pursuant
to which the sales tax attributable to the sales effected out of production is deferred (interest-free) for a period of
14 years from 19.03.1998. The deferred sales tax of each year is repayable after the expiry of the period deferred.
6. Land and Buildings:
a Includes 22.38 acres leased to Nagarjuna Agricultural Research and Development Institute.
b. Includes 5 acres, the possession of which is yet to be taken, title under dispute.
c. Includes Land valued at Rs.958.08 lakhs and Buildings valued at Rs.291.92 lakhs vested with the Company
pursuant to the order dated 27-04-98, of the Hon’ble High Court of Andhra Pradesh.
d. Includes 45.04 acres attached by Govt of AP in terms of GO Ms No.158 dt. March 16,2009. The Company has filed
a writ petition in the High Court of A.P. challenging the notification of the Govt. of A.P.
e. Excludes value of 86.55 acres, which is in the possession and use of the Company pending fixation of compensation
by the State Government.
f . Excludes value of 14.06 acres (pending completion) of proposed alienation and handing over possession by Govt.
of Andhra Pradesh including 3.14 acres which cannot be alienated under Andhra Pradesh Land Reforms Act, 1973.
g. Includes advance paid towards land and building of Rs. 317.00 lakhs and 730.00 lakhs respectively, pending
registration since the title deeds are yet to be received from the transferor company.
7. Investment
The Company has investments in the following two subsidiary Companies:
(Rs. Lakhs)
Name of the Subsidiary 31.03.2009 31.03.2008
Nagarjuna Oil Corporation Ltd (NOCL) 69972.00 69972.00
Jaiprakash Engineering and Steel Company Ltd (JESCO) 2256.17 2256.17
40
NFCL
A) NOCL which is implementing the Oil Refinery Project has made good progress in this financial year. Equity and Long
Term Loan requirements have been tied up. During the year the Company has received an amount of Rs.284.78crs
towards equity and Rs.609.17 crs (out of total amount of Rs.3193 crs) towards long term loan disbursement. Land
required for the project has been acquired/allotted. Various major contracts for civil works, project management consultancy,
acquisition and erection of Plant and Machinery have been entered into. Marketing arrangements have been made with
major Oil Companies. The project is viable and the management is confident of implementing the project.
The repayment of loan obtained by NOCL from term lenders and interest and other charges thereon, are secured by way
of negative lien on the entire share holding of the Company in NOCL.
B) In respect of investment in JESCO, management is of the opinion that there is no diminution in the value of the
investment and that the realisation from sale of assets of the JESCO is expected to be in excess of investments made.
8. Group Concession Scheme – (GCS) Subsidy
Nitrogenous fertilizers are under the Group Concession Scheme as per New Pricing Scheme announced by the Government
of India, Department of Fertilizers vide their letter dated 08 th , March, 2007 to be implemented for the period from
01.10.2006 to 31.03.2010 (NPS-III). The Concession Rate for Plant-1 and Plant-2 for the period 01.04.2008 to 31.03.2009
has been recognized based on the latest notified rates under NPS-III and further adjusted with input price escalation
aggregating Rs. 7468.26 Lakhs (Previous year Rs. 5220.43 lakhs) as estimated by Management.
Pending finalisation of “Net Gain” and “IPP benefit” as per the policies for Production and Sale of Urea beyond 100% re-
assessed capacity, the company has estimated the Net Gain and IPP benefit in accordance with the known policy
parameters in this regard.
Adjustments if any, on notification of final prices under the scheme will be considered in the year in which notifications
are received.
9. Sundry Debtors, Loans and Advances :
a. Debts and advances identified as irrecoverable and doubtful are written off - Rs.2.66 Lakhs (previous year Rs.
37.45 lakhs) as bad debts.
b. Certain advances aggregating to Rs.5267.32 lakhs were outstanding as on 31 st March 2008, out of which Rs.700
lakhs is due annually as per the CDR Scheme. As against the same the company could recover Rs.125 lakhs only
during the year. However, management is pursuing the matter and confident of recovering the balance amount.
c. Confirmations of balances from most of the sundry debtors have been obtained and others are awaited.
10. Income Tax:
a) Current Tax :
Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under
Income Tax Act 1961. The Company after making review of the pending tax matters, is of the opinion that no
further provision is necessary in respect of disputed tax demand of Rs.681.84.lakhs (previous year: Rs.1706.52
Lakhs) which are in various stages of appeals. Any further provision required in respect of disputed tax will be
considered on completion of the appellate proceedings.
b) Deferred Tax:
Rs.Lakhs
Particulars 2008-09 2007-08
Deferred Tax Liabilities (On account of Depreciation) 18121.19 19655.41
41
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16. Related party transactions
13. Auditors’ Remuneration : (Rs. Lakhs) 1. Names of related parties and description of
relationship.
Sl.No. Particulars 31.03.2009 31.03.2008 a) Subsidiaries
(i) Nagarjuna Oil Corporation Limited
1 Audit Fees 27.58 22.47 (ii) Jaiprakash Engineering & Steel Co. Limited
2 Tax Audit Fees 8.28 3.09 b) Associates
3 Other Services 16.85 14.83 (i) iKisan Limited
4 Certification 9.26 5.42 (ii) Nagarjuna Agrichem Limited
5 Out of pocket expenses 0.67 4.60 c) Key Management Personnel
Mr.K.S.Raju, Chairman & Managing Director
Mr.K.Rahul Raju, Joint Managing Director
Total 62.64 50.41 Mr.P.P.Singh, Director - Technical
Mr.R.S.Nanda, Director & Chief Operating Officer
14. Sales are net of cash discounts of Rs.165.84 lakhs
d) Relatives of Key Management Personnel.
(Previous year Rs. 276.61 lakhs) (i) Smt. Lakshmi Raju (Daughter of Shri K.S.Raju
and Sister of K Rahul Raju.)
15. Segmental Accounting (ii) Smt. K Lakshmi Raju (Sister of Shri K S Raju )
The financial results relate mainly to fertilizer segment. e) Enterprises able to exercise significant influence
In Accordance with Accounting Standard (AS) -17, since (i) Nagarjuna Management Services Private Ltd.
the financial results of micro irrigation segment is less (ii) Nagarjuna Holdings Private Ltd.
(iii) Chinnar Securities Private Limited
than the limit for separate disclosure, the same is not (iv) K R R Holding Private Limited
shown separately. ( v ) K S Raju & Associates Holdings Private Ltd.
2. Related party transactions are as under: (Rs. Lakhs)
Enterprises Enterprises
Key able to Key able to
Sl. Subsidiaries Associates Mgmt. exercise Subsidaries Associates Mgmt. exercise
Nature of Transaction
No. 31.03.2009 31.03.2009 Personnel significant 31.03.08 31.03.08 Personnel significant
31.03.2009 influence 31.03.2008 influence
31.03.2008
31.03.2009
01. Finance :
a)Equity ----- ----- ----- ----- 1522.00 ----- ----- -----
b)Share Appln. Money ----- ----- ----- ----- ----- ----- ----- -----
c)Share Warrants ----- ----- ----- ----- ----- ----- ----- 652.50
d)Refund of Share Appln Money ----- ----- ----- ----- ----- ----- ----- -----
e)Advances given ----- 5142.31 ----- ----- 2512.14 ----- ----- -----
f)Advances received 0.33 125.00 ----- ----- ----- ----- ----- -----
02. Lease Rental received ----- 6.01 ----- ----- ----- 6.01 ----- -----
03. Remuneration to
Key Mgmt. Personnel ----- ----- 177.31 ----- ----- ----- 147.95 -----
04. Rent Paid ----- ----- 46.06 ----- ----- ----- 16.20 -----
05. Others ----- 9.64 ----- ----- ----- ----- ----- -----
18 . The disclosure required under Accounting Standard 15 “Employee Benefits” notified in the companies
(Accounting Standards) Rules 2006, is given below.
Defined Contribution Plan
The Company makes Provident Fund and Superannuation Fund contribution to defined contribution retirement benefit plans
for qualifying employees. Under the schemes the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest
at rates notified by the Central Government from time to time, for which shortfall if any shall be provided for.
Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:
Rs. In Lakhs
31.03.2009 31.03.2008
Employer’s contribution to provident Fund 152.66 134.98
Employer’s contribution to Superannuation Fund 214.10 170.95
Employer’s contribution to Pension Scheme 87.39 82.40
Defined Benefit Plan
The employees’ gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The
present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation.
42
NFCL
Rs. in Lakhs
Gratuity (Funded)
a. Reconciliation of opening and closing balances of Defined Benefit Obligation 31.03.2009 31.03.2008
Defined Benefit obligation at beginning of the year 549.23 520.89
Current Service Cost 45.27 44.07
Interest Cost 44.01 40.99
Actuarial (gain)/loss 128.86 5.38
Benefits paid 44.46 62.09
Defined Benefit Obligation at year end 722.91 549.23
b. Reconciliation of opening and closing balances of fair value of plan assets 31.03.2009 31.03.2008
Fair value of plan assets at beginning of the year 422.07 474.91
Expected return on plan assets 34.71 35.57
Actuarial gain/(loss) 38.28 (62.04)
Employer contribution 206.04 35.71
Benefits paid 44.46 62.09
Fair value of plan assets at year end 656.64 422.08
Actual return of plan assets at year end 72.99 26.46
c. Reconciliation of fair value of assets and obligations 31.03.2009 31.03.2008
Fair value of plan assets as at 31 st March, 2009 656.65 422.07
Present value of obligation as at 31 st March, 2009 722.91 549.23
Amount recognized in Balance Sheet 66.26 127.16
d. Expenses recognized during the year (under the head “Payments
to and Provisions for Employees- Refer Schedule) 31.03.2009 31.03.2008
Current service Cost 45.27 44.07
Interest Cost 44.01 40.99
Expected return on plan assets (34.71) (35.57)
Actuarial (gain)/loss (38.28) 67.41
Net cost 16.29 116.90
e. Investment Details % invested As at 31 st March 2009
L.I.C. Group Gratuity (Cash Accumulation) Policy 100
f. Actuarial assumptions
Mortality Table of L.I.C. 31.03.2009 31.03.2008
Discount rate (per annum) 6.30% 7.65%
Expected rate or return on plan assets (per annum) 7.50% 7.50%
Rate of escalation in salary (per annum) 5.00% 5.00%
The estimate of rate of escalations in salary considered in actuarial valuation, taken in to account inflation, length of
service and other relevant factors. The above information is certified by the actuary.
The obligation for leave encashment is recognized based on actuarial valuation made at the end of each financial year.
19. Information pursuant to provisions of Paras 3 & 4 of Part II of Schedule VI of Companies Act, 1956 is as under:
a. Capacity
Licensed capacity * Installed capacity @
Sl. No. Product Unit 31.03.2009 31.03.2008
1. Ammonia MT/Day 1800 1800
2. Urea MT/Day 3000 3000
3. Extruded Irrigation Systems & parts thereof Lakh Mtrs/Annum 827 573
* Registered pursuant to the scheme of delicensing
@ As certified by the Management and relied upon by the Auditors being a technical matter.
b. Production, Sales and Stock:
Sl. Unit of 31.03.2009 31.03.2008
Quantity Value Quantity Value
No. Particulars Measurement
Rs. Lakhs Rs. Lakhs
1. Opening Stock :
Ammonia MT 2811.96 280.75 1951.44 268.94
Urea MT 72100.25 3257.13 55956.20 2589.14
Extruded Irrigation Lakh Meters 63.37 395.44 39.00 207.07
Systems and parts thereof
2. Production
Ammonia MT 782861.00 772584.00
Urea MT 1378162.00 1354490.00
Extruded Irrigation Lakh Meters 511.25 378.63
Systems and parts thereof
3. Captive Consumption
Ammonia MT 784686.69 771713.40
4. *Sales
Ammonia MT 27.31 9.64 10.08 3.43
Urea MT 1397101.35 64813.20 1338345.95 61808.72
Extruded Irrigation Lakh Meters 519.77 4221.53 354.26 2648.58
Systems and parts thereof
5. Closing Stock
Ammonia MT 958.97 65.75 2811.96 280.75
Urea MT 53160.90 242418 72100.25 3257.13
Extruded Irrigation Lakh Meters 54.85 241.96 63.37 395.44
Systems and parts thereof
* Sales quantity includes transit and standardisation losses of 54.10 MT . Sales value of Urea does not include concession under GCS.
43
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c. Trading
44
NFCL
20. Dues to Micro, Small and Medium Scale Industrial Undertakings, exceeding 45 days - NIL,
21. Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been
determined based on the information available with the Company and the required disclosures are given below:
Rs. In lakhs
31.03.2009 31.03.2008
a. Principal amount remaining unpaid 23.40 71.02
b. Interest due thereon Nil Nil
c. Interest paid by the Company in terms of Section 16 of Micro, Small and Nil Nil
Medium Enterprises Development Act, 2006, along with the amount of the
payment made to the supplier beyond the appointed day during the year.
d. Interest due and payable for the period of delay in making payment Nil Nil
(which have been paid but beyond the appointed day during the year) but
without adding the interest specified under Micro, Small and Medium
Enterprises Development Act, 2006.
e. Interest accrued and remaining unpaid Nil Nil
f . Further Interest remaining due and payable even in the succeeding Nil Nil
years, until such date when the interest dues as above are actually
paid to the small enterprise.
22. Previous year figures have been re-grouped / re-classified / re-cast wherever necessary.
23. Amounts are rounded off to the nearest Rupees in Lakhs. Figures in brackets represent credits /
deductions.
As per our report attached to the Signatures to Schedule “1 to 13”
Balance Sheet For and on behalf of the Board
for M. Bhaskara Rao & Co. K S Raju B K Batra
Chartered Accountants Chairman & Managing Director N C B Nath
M P Radhakrishnan
S R Ramakrishnan
V.K.Muralidhar B B Tandon
Partner Directors
R S Nanda
Director & Chief Operating Officer
P P Singh
Hyderabad M Ramakanth Sudhir Bhansali Director (Technical)
K Rahul Raju
April 29, 2009 Secretary Chief Financial Officer Joint Managing Director
45
NFCL
Consolidated Balance Sheet as at March 31, 2009
Rs. lakhs
Schedule
Particulars Reference 31.3.2009 31.3.2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 46,520.31 46,517.78
Share Warrants (Refer Note No.4 of ----- 652.50
Schedule 15-B of Notes to Accounts)
Reserves and surplus 2 115,751.64 162,271.95 120,201.78 167,372.06
Share Application Money 5,488.00 3,100.00
Minority Interests 28,481.88 3.56
Loan funds 3
Secured Loans 185,690.39 150,921.51
Unsecured Loans 6,804.84 16,284.08
Deferred Tax Liability 18,121.19 19,655.41
TOTAL 406,858.25 357,336.62
APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 402,805.47 389,886.39
Depreciation (197,862.02) (177,502.02)
Lease Adjustment (6,295.15) (6,295.15)
Net Block 198,648.30 206,089.22
Capital work in Progress 5 132,490.40 331,138.69 89,469.57 295,558.79
Expenditure Pending allocation 6 42,897.30 38,993.04
Investments 7 17.50 17.50
Current Assets, Loans and Advances 8
Inventories 7,494.23 18,923.84
Sundry Debtors 34,604.99 29,814.36
Cash and Bank Balances 22,040.15 9,977.36
Loans and Advances 27,035.32 25,882.99
Other Current Assets 6,478.17 13,737.35
97,652.86 98,335.90
Current Liabilities and Provisions 9
Current Liabilities (49,858.35) (64,113.03)
Provisions (18,260.64) (14,726.49)
Net Current Assets 29,533.86 19,496.39
Miscellaneous Expenditure
(to the extent not written off or adjusted)
Preliminary Expenses 3,270.90 3,270.90
*** relating to earlier years (including transfer to Investor Education and Protection Fund - Rs. NIL, previous year
Rs.107.15 lakhs).
As per our report attached For and on behalf of the Board
for M. Bhaskara Rao & Co. K S Raju B K Batra
Chartered Accountants Chairman & Managing Director N C B Nath
M P Radhakrishnan
S R Ramakrishnan
V.K.Muralidhar B B Tandon
Partner Directors
R S Nanda
Director & Chief Operating Officer
P P Singh
Director (Technical)
Hyderabad M Ramakanth Sudhir Bhansali K Rahul Raju
April 29, 2009 Secretary Chief Financial Officer Joint Managing Director
48
NFCL
Schedules to the Consolidated Balance Sheet as at 31st March 2009
49
NFCL
Schedules to the Consolidated Balance Sheet as at 31st March 2009
Schedule 3 - Loan Funds Rs. lakhs
Particulars 31.03.2009 31.03.2008
Secured Loans
(Refer note 5 of Schedule 15)
A. Debentures - unquoted
i) 30,00,000 14.5% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 2,580.00 2,730.00
ii) 80,00,000 15% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 2,522.81 2,669.49
iii) 1,53,30,000 15% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 15,330.00 15,330.00
iv) 25,00,000 15% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 2,150.00 2,275.00
v) 30,00,000 13.25% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 2,580.00 2,730.00
vi) 32,00,000 12.50% Secured Redeemable Non - convertible
Debentures of Face Value of Rs. 100 each 360.00 840.00
vii) 18,13,00,995 0% Secured Redeemable Non - convertible
Debentures of Face Value of Re. 1/- each 1,813.01 1,813.01
27,335.82 28,387.50
B. From Institutions - Term Loans
i) In Rupees 18,895.09 17,493.37
C. From Banks
i) Working Capital Demand Loan / Cash Credit 28,730.81 39,188.90
ii) Term Loan 106,268.17 63,067.08
iii) In Foreign Currency 4,438.50 -
iv) Interest Accrued and due 22.00 2,784.65
Total 185,690.39 150,921.51
Unsecured loans
Sales Tax Deferral - Loan 6,746.06 6,230.74
HDFC Loan 4.14 10.78
Others 54.64 10,042.56
Total 6,804.84 16,284.08
Roads, Drains & Culverts 4,220.41 3.36 - 4,223.77 821.57 202.45 - 1,024.02 3,199.75 3,398.84
Railway siding 1,478.22 - - 1,478.22 905.62 73.96 - 979.58 498.64 572.60
Plant & Machinery 336,510.47 10,475.70 0.07 346,986.10 159,157.31 18,944.13 0.07 178,101.37 168,884.73 177,353.16
Furnitures , Fixtures
& Office Equipment 3,696.80 280.88 21.18 3,956.50 2,636.97 391.18 19.51 3,008.64 947.85 1,059.82
Vehicles 309.99 52.97 5.81 357.14 174.91 42.07 5.73 211.25 145.89 135.07
Leased assets -
Plant & Machinery -
A. Ongoing leases - - - - - - - - - -
B. Run off leases *** 15,029.97 - - 15,029.97 8,734.82 - - 8,734.82 6,295.15 6,295.15
Lease Terminal adjustment (6,295.15) (6,295.15)
Total 389,886.39 12,946.14 27.06 402,805.47 177,502.02 20,385.31 25.31 197,862.02 198,648.30* 206,089.22*
*Capital Work in Progress 132490.40 89,469.57
Previous Year **384,103.01 5,838.96 55.60 $389,886.39 **157,267.29 20,673.08 104.97 $$177,835.40 2 0 6 , 0 8 9 . 2 2 * 239,673.47
1. Based on the reports of approved valuer on “Present market value basis (standard Indices) method” on 31.03.2003, the company revalued its free hold
land admeasuring 1040.28 acres. @ Rs.8842.38 lakhs which was substituted for the historical cost of land in the gross block of fixed assets. During
the year, the company paid Rs.296.76 Lakhs(previous year 12.35 Lakhs) as enhanced compensation for the land purchased in the earlier years and this
amount has been adjusted in the revaluation reserve.
2. Buildings,Roads Drains Culverts, Railway sidings and Plant & Machinery of manufacturing facilities at Kakinada were revalued pursuant to report of
approved valuer on 31.03.2005 at Rs. 6346.57 lakhs, Rs. 3100.27 lakhs, Rs. 125.60 lakhs, Rs. 132185.30 lakhs respectively and Rs 808.89 lakhs
decrease in respect of certain assets.
3. *** Represents leases where lease period is over, and equipments are yet to be trasfered to lessees.
4. Capital Work in Progress includes
a) Capital Advance of Rs. 11710.76 Lakhs (Previous year Rs.1828.84 Lakhs)
b) Interest during Construction period of Rs. 279.84 Lakhs (Previous Year Rs.170.08Lakhs)
c) Plant and Machinery of Rs. 116923.04 Lakhs (Previous Year Rs. 84563.19 Lakhs)
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NFCL
Schedules to the Consolidated Balance Sheet as at 31st March 2009
17.50 17.50
II. Equity Shares - Quoted
(Fully paid - other than trade)
Sri Saritha Software and Industries Ltd 10 391,275 36.53 10 391,275 36.53
36.53 36.53
Total 54.03 54.03
Less: Provision for dimunition in value of Quoted investments 36.53 36.53
Total 17.50 17.50
Aggregate cost of Quoted Shares 36.53 36.53
Aggregate Market value of Quoted Shares - -
51
NFCL
Schedules to the Consolidated Balance Sheet as at 31st March 2009
Schedule 8 - Current Assets, Loans and Advances Rs.Lakhs
Particulars 31.03.2009 31.03.2008
A. Current Assets
1. Inventories ( as valued and Certified
by the Management )
Traded Products 1,979.28 11,392.96
Manufactured Urea 2,666.14 3,652.57
Raw Materials 875.91 1,379.11
Work in Process 65.75 280.75
Packing Materials 96.07 239.24
Stores and Spares 1,806.93 1,975.78
Loose Tools 4.15 7,494.23 3.43 18,923.84
2. Sundry Debtors (Unsecured) *
Debts Outstanding over six months
Considered good 937.41 870.41
Considered doubtful 156.90 164.30
Other debts considered good 33,667.58 28,943.95
34,761.89 29,978.66
Provision for doubtful debts (156.90) 34,604.99 (164.30) 29,814.36
3. Cash and Bank balances
Cash on Hand 6.93 7.81
Balances with Scheduled Banks
Current Accounts 17,471.34 9,015.91
Deposit accounts 4,561.88 22,040.15 953.64 9,977.36
B.Loans and Advances
Secured (Considered good)
Loans to Employees ** 32.24 55.52
Unsecured (Considered Good)
Loans to Employees ** - 0.29
Advances recoverable in Cash
or in kind or for value to be received 7,230.88 9,908.44
Advance Income Tax 17,279.81 13,311.29
Balance with Customs Authorities 7.41 8.14
Deposits with others 2,436.90 2,533.06
Claims receivable 48.06 27,035.32 66.25 25,882.99
C.Other Current Assets
GOI Fertilizer Bonds at Market Value 6,478.17 13,737.35
* Includes Subsidy and other dues from Govt. of India Rs.30703.28 Lakhs (Previous year Rs.25496.73 Lakhs)
** Includes amounts due from Directors / Officer Rs.2.95 lakhs ( Pr. Yr. Rs.5.95 Lakhs) and Maximum amount due
Rs.5.95 lakhs ( Pr. Yr. Rs.6.45Lakhs).
* There are no amounts due to be transferred to Investor Education and Protection Fund.
52
NFCL
Schedules to the Consolidated Profit and Loss Account for the year ended March 31, 2009 Rs.Lakhs
Particulars 31.03.2009 31.03.2008
53
NFCL
SCHEDULE 15 - Accounting Policies and Notes to Accounts. exchange rates prevailing on the date of Balance Sheet
or at the rate of exchange fixed under contractual
A. SIGNIFICANT ACCOUNTING POLICIES:
arrangements. Exchange gain/loss on transactions
1. General: The Company follows accrual system of relating to liabilities incurred to acquire fixed assets is
accounting and recognises income and expenditure on treated as an adjustment to the cost of fixed assets.
accrual basis unless otherwise stated. The Accounts are Exchange gains and losses on foreign exchange
prepared on historical cost convention, unless otherwise transactions other than those relating to fixed assets
stated. are adjusted in the profit and loss account. Premia or
2. Use of Estimates:The preparation of financial statements discounts arising on forward exchange contracts entered
requires the management of the company to make into for the purpose of mitigating currency risk, are
estimates and assumptions that affect the reported recognized in the Statement of Profit and Loss or
amount of assets and liabilities on the date of the Expenditure during Construction, as applicable, over the
financial statements and the reported amount of revenues life of contract.
and expenses during the reporting period. Difference 7. Revenue Recognition:
between the actual results and estimates are recognised Price Concession under Group Concession Scheme
in the period in which the results are known/materialised. (GCS) and Equated Freight is considered in accordance
Though the management believes that the estimates with the procedure prescribed by the Government of
used are prudent and reasonable, actual results could India – Fertiliser Industry Co-ordination Committee.
differ from these estimates 8. Preliminary Expenditure:
3. Fixed Assets: Preliminary expenses incurred will be written off in the
a. Fixed assets are stated at cost, unless stated otherwise. year in which commercial production commences.
Cost comprises the purchase price and other attributable 9. Inventories:
expenses. The method of valuation of various categories of
b. Revaluation: The net increase in the value of the assets inventories is as follows:
is credited to the Revaluation Reserve. a. Manufactured Products:
c. Impairment of Assets: Impairment of an asset is reviewed i. Finished goods - at lower of cost and net realisable
and recognised in the event changes and circumstances value.
indicate that the carrying amount of an asset is not ii. Work in process - at cost.
recoverable. Difference between the carrying amount Cost - includes material cost, labour, factory overheads
of an asset and the recoverable value is recognised as and depreciation but excludes interest on borrowings.
impairment loss in the statement of profit and loss in the Net realisable value in the case of Urea - the Group
year of impairment. Concession Price notified by the Govt. of India in respect
d. Borrowing Cost incurred on acquisition of Qualifying of finished goods lying at the factory, and the net sale
Assets are capitalised. Qualifying Asset is an Asset, price in respect of finished goods lying in the warehouses
which will take substantial period of time to bring to its outside the factory.
intended use. b. Traded products - at lower of cost and net realisable
e. Expenditure pending allocation: Expenditure during value.
construction period other than those directly related to c. Other finished goods, work-in-process, raw materials,
an asset is included under “Expenditure pending allocation” stores, spares, packing material and
and is to be allocated to various fixed assets at the time loose tools - at weighted average cost, less provision
of commencement of commercial production, as for depletion in value, if any.
determined in accordance with the generally accepted 10. Retirement Benefits:
accounting principles. The company’s liability towards gratuity and
4. Depreciation on Fixed Assets: superannuation benefits of eligible employees is covered
a. Depreciation on fixed assets other than the assets given by a policy with LIC and the annual contributions are
on lease is provided on straight-line method at the rates paid / provided in accordance with this scheme. Gratuity
and in the manner prescribed in Schedule XIV of the and Leave encashment is provided on the basis of
Companies Act, 1956. valuation by independent actuaries, as at date of the
b. Depreciation charge for each year is net of additional Balance Sheet. The Company’s contribution towards
depreciation on incremental values arising out of provident fund and pension fund is administered and
revaluation met out of revaluation reserve. managed by an approved trust and are charged to
c. Depreciation on Computers, Mobile Phones, Vehicles, revenue.
Electronic Equipments, Air-conditioners and Lab 11. Research and Development Expenses:
Equipment are provided at higher rate than the rate Expenditure relating to capital items is debited to fixed
prescribed in Schedule XIV of Companies Act, 1956, assets and depreciated at applicable rates. Revenue
base on technical evaluation of the useful life of the expenditure is charged to Profit and loss account of the
assets. year in which they are incurred.
5. Investments : 12. Taxes on Income
Investments are stated at cost less any diminution in Current tax is determined as the amount of tax payable
their value, which is other than temporary. in respect of taxable income for the period. Deferred tax
6. Foreign currency transactions: is recognised subject to consideration of prudence, on
The transactions in foreign currencies remaining timing differences, being the difference between taxable
outstanding at the end of the year are translated at the incomes and accounting income that originate in one
54
NFCL
period and is capable of reversal in one or more any.
subsequent periods. iii) Taxation matters under appeals Rs.681.84 lakhs
13. Contingencies: (Previous Year Rs. 1706.52 lakhs).
Loss arising from claims, litigation, assessments, fines, i v ) Taxation matters of JESCO under appeals Rs.94.66 lakhs
penalties, after sales warranties, etc., are provided for (Previous year Rs.94.66 lakhs). Tax paid Rs.45.46 lakhs
when it is probable that a liability may be incurred, and (Previous year Rs.45.46 lakhs).
the amount can be reasonably estimated. B. Claims against the company not acknowledged as debts
B. NOTES TO ACCOUNTS: Rs.2133.58 lakhs (Previous year Rs. 1957.50 lakhs).
1. (a) Consolidated Accounts: NOCL which is implementing the Oil Refinery Project
The Consolidated Financial Statements have been has made good progress in this financial year. Equity
prepared in accordance with Accounting Standard 21 (AS- and Long Term Loan requirements have been tied up.
21) “Consolidated Financial Statements” issued by Land required for the project has been acquired. Various
Institute of Chartered Accountants of India. major contracts for civil works, project management
The subsidiaries considered in the preparation of these consultancy, acquisition and erection of Plant and
consolidated financial statements are: Machinery have been entered into. Marketing
Percentage of voting power arrangements made with major Oil Companies. The
As at As at project is viable and the management is confident of
31.03.2009 31.03.2008 implementing the project. The repayment of loan obtained
a) Nagarjuna Oil Corporation by NOCL from term lenders and interest and other
Limited (NOCL) 71.07% 100.00% charges thereon, are secured by way of negative lien on
b) Jaiprakash Engg. & Steel the entire share holding of the Company in NOCL.
Co. Ltd. (JESCO) 99.84% 99.84% In respect of investment in JESCO, management is of
These Consolidated Financial Statements are based, in the opinion that there is no diminution in the value of the
so far as they relate to amounts included in respect of investment and that the realisation from sale of assets
subsidiaries, on the audited financial statements. of JESCO is expected to be in excess of investments
(b) Associates: made.
The details of associates are given below in accordance 4 Share Capital:
with Accounting Standard 23 “Accounting for Investments In Accordance with the CDR Scheme 37,20,372 0.01%
in associates in consolidated financial statements” Optionally Convertible Cumulative Redeemable
Percentage of voting power Preference Shares – (OCCRPS) of Rs.100 each were
31.03.2009 31.03.2008 issued to certain lenders to compensate the differential
(i) Nagarjuna Agricultural Research and rate of interest for the year 2003-04.
Development Institute (NARDI) * 25.00% 25.00% Pursuant to the Guidelines governing issues of
(ii) K.V.K.Raju International Preference Shares, the said OCCRPS are to be converted
Leadership Academy* 42.85% 42.85% into Equity Shares within 18 months from the Date of
*The investments in associates are not considered for Allotment. Since the said OCCRPS were not converted
consolidation as the Companies are registered under into Equity Shares within the time prescribed by SEBI,
Section 25 of the Companies Act, 1956 and the they remain as Ordinary Redeemable Preference Shares.
investments are valued in accordance with Accounting These are redeemable after the entire debt liabilities are
Standard 13 – “Accounting for Investments”. fully paid.
2. Estimated amount of contracts remaining to be executed The Warrants Committee of the Board of Directors at its
on capital account and not provided for (net of advance) meeting held on October 26, 2007 allotted 2,25,00,000
i. In respect of Capital and Service Orders Rs.5303.13 warrants convertible into equity shares to the Core
lakhs (Previous year Rs.7713.00 lakhs) Promoters of the company pursuant to the approval of
ii. In respect of 86.55 acres land in possession, the Board of Directors and the Members of the company
compensation is not ascertained. in accordance with the Guidelines prescribed by Securities
iii. In respect of NOCL Rs. 36468.16 lakhs (Previous year and Exchange Board of India for Preferential Issues at
Rs. 49693.07 lakhs). price of Rs.29/-per warrant, the price being determined
i v. Estimated amount of Letters of Credit outstanding on by the Statutory Auditors of the company in accordance
capital account as on 31 st March 2009 is Rs.15079 lakhs. with the Preferential Issue guidelines.
(Previous Year Rs.nil) The Company has received Rs.652.50 lakhs being the
3.A. Contingent Liabilities 10% of the value of the warrants as advance and the
i) Counter guarantees given to Bankers in respect of Bank balance amount is to be received before 25 th April 2009.
guarantees Rs.1409.70 Lakhs (Previous year Rs.3641.47 The company has received communication from the Core
Lakhs) Promoters expressing their inability to pay the balance
ii) (a) Corporate guarantees given to banks on behalf of amount and convert the said 2,25,00,000 warrants into
Nagarjuna Oil Corporation Ltd., a subsidiary company equity shares. The Warrants Allotment committee of
Rs.NIL Lakhs (Previous year Rs. 11790.25 lakhs).Axis Directors had accordingly annulled the 2,25,00,000
Bank has invoked the guarantee of Rs. NIL Lakhs warrants allotted to the Core Promoters and the upfront
(Previous Year Rs. 5222.82 Lakhs). 10% payment made by the Core Promoters stands
(b) In an agreement with the lenders and some shareholder forfeited in terms of the SEBI guidelines for preferential
of Nagarjuna Oil Corporation Limited, the Company has issue.
agreed to give an undertaking to fund cost over runs, if The paid up share capital of NOCL is held by NFCL to
55
NFCL
the extent of 71.07%. During the year, NOCL has allotted Bank of Rajasthan Ltd., SICOM Limited, Oriental Bank
284780000 shares of Rs.10/- each amounting to of Commerce, Rabo India Finance (Pvt) Ltd., The Karur
Rs.284.78 crores. Vysya Bank Limited, Karnataka Bank Limited, IndusInd
5 Secured Loans: Bank Limited as envisaged in the CDR Package to
I. A) DEBENTURES compensate the differential rate of interest for the year
i 30,00,000 14.50% Secured Redeemable Non-Convertible 2003-04. The debentures are redeemable after the entire
Debentures of Rs.100/- each issued to LIC are debt liabilities are fully repaid.
redeemable in 41 structured quarterly instalments B) Term Loans from Institutions are secured by way of a
commencing from 31st March, 2006 as per charge created through an equitable mortgage of
reschedulement in line with the CDR Package. immovable properties by deposit of title deeds and
ii 80,00,000, 15.00% Secured Redeemable Non-Convertible hypothecation of movable properties of the Company
Debentures of Rs.100/- each issued to IFCI, redeemable including movable plant and machinery, spares, tools
in 41 structured quarterly instalments commencing from and other movables, present and future, save and except
31 st March, 2006 as per reschedulement in line with the stock in trade, book debts, and stores & spares, given
CDR Package. as security to banks for obtaining working capital facilities
iii 1,53,30,000, 15.00% Secured Redeemable Non- and assets given on lease with exclusive charge in favour
Convertible Debentures of Rs.100/- each issued to of the funding institution. They are further secured by
ICICI, redeemable in 21structured quarterly instalments way of a second charge on the current assets of the
commencing from 31st March, 2011 as per reschedulement company.
in line with the CDR Package. C) Term loans from banks together-with interest accrued
i v 25,00,000, 15.00% Secured Redeemable Non-Convertible thereon, are secured by way of a first charge on the
Debentures of Rs.100/- each issued to IFCI, redeemable fixed assets of the company ranking pari-passu with the
in 41 structured quarterly instalments commencing financial institutions, a second charge (sub-ordinate to
from 31 st March 2006 as per reschedulement in line with the financial institutions) on the monthly subsidy and
the CDR Package. are further secured by way of a charge created through
v 30,00,000, 13.25% Secured Redeemable Non-Convertible an equitable mortgage by deposit of title deeds of certain
Debentures of Rs.100/- each issued to LIC, redeemable immovable property of the Company.
in 41 structured quarterly instalments commencing from D) Working Capital facilities from banks are secured by
31st March, 2006 as per reschedulement in line with the
hypothecation by way of first charge on current assets
CDR Package.
of stock in trade, book debts and stores & spares, present
The interest rate stands revised to 11% p.a. w.e.f.
and future and second charge on the fixed assets of the
01.04.2007 in respect of Debentures stated at i,ii,iii, iv,
company.
and v as per CDR letter dated 25 th October, 2007
E) The company was sanctioned a Debt Restructuring
regarding reset of interest rates.
Package (including working capital) under Corporate Debt
v i 32,00,000, 12.50% Secured Redeemable Non-Convertible
Restructuring (CDR) Scheme on 20.02.2004 effective
Debentures of Rs.100/- each issued to SBI, redeemable
from 1 st April 2003 vide letter no BY.CDR (AG)/ No.307/
in 20 equal quarterly instalments commencing from 31st
2003-04, dated 16 th March 2004. All the lenders had
March 2005 as per reschedulement in line with the CDR
approved and implemented the Package
Package.
The interest rate stands revised to 7.50% p.a. w.e.f. The lenders reserve the right to recompense the
01.04.2007 in respect of Debentures stated above as sacrifices being made in case the profitability and cash
per CDR letter dated 25 th October, 2007 regarding reset flow position of the Company so warrants in future. The
of interest rates. lenders have the right to reset the interest rates after
The above debentures (excluding Rs.4300.00 lakhs, every three years.
relating to assets given on lease, issued to ICICI are The lenders shall have the right to convert 20% of their
secured by exclusive mortgage of leased assets) outstanding debt after financial year 31.03.2011 into
together with accrued interest, remuneration and other equity and, in the event of any default in servicing the
expenses thereof are secured by a registered mortgage debt; the lenders shall also have the right to convert the
and an exclusive charge on the Company’s immovable defaulted amounts into equity (at par) or any other
property situated at Ahmedabad and an equitable mortgage instruments. The promoters shall be given the first right
and a charge on the other immovable and movable of refusal, if the converted shares/instruments are
properties of the Company in favour of the debenture decided to be sold by the lenders.
trustees, save and except stock in trade, book debts The Company is to disinvest its equity investments/
given as security to banks for obtaining working capital loans and advances lent to subsidiary/group companies
facilities and assets given on lease with exclusive charge to the extent and in the manner envisaged.
in favour of the funding institution. Shares held in subsidiary companies- NOCL
v i i 18,13,00,995 0% Secured Redeemable Non-Convertible (9,90,00,000) and JESCO (2,25,61,693) are under pledge
Debentures of Re.1/- each have been issued to various with Banks/Financial Institutions as security for the loan
lenders viz. State Bank of India, State Bank of availed by the Company.
Hyderabad, State Bank of Bikaner and Jaipur, State All the Term Loans from Institutions and Banks, Counter
Bank of Patiala, State Bank of Travancore, State Bank Guarantees, Working Capital facilities from
Saurashtra, Bank of India, Bank of Baroda, Indian banks are personally guaranteed by Shri K.S.Raju,
Overseas Bank, UCO Bank, Union Bank of India, The Chairman and Managing Director of the Company.
56
NFCL
II. Loans of the subsidiaries: from the transferor company.
Secured Loans :NOCL h. Land totaling to 509 acres has bees acquired directly by
Term loans from Banks and Financial Institutions are to the Company,
be secured by a first charge, by way of mortgage, During the year State Industries Promotion Corporation
hypothecation on all movable and immovable fixed of TamilNadu Limited (SIPCOT) has allotted 1065 acres
assets (including assets of the project and project under 99 year lease, on the company paying a plot
documents) of the company, present or future. Further deposit and lease rentals aggregating to Rs.20.65 crores
these loans are also to be secured by second charge, by refundable at the expiry of the lease period. The company
way of mortgate, hypothecation of all the current assets has incurred stamp duty and registration charges of
of the company, present or future. Rs.0.42 crore.
The Term loans are secured by hypothecation of movable 8. Financial Statements and Equipments of Subsidiary
fixed assets of the company. The company is in the Company - Nagarjuna Oil Corporation Ltd.:
process of creating the remaining security. The financial statements for the year have been drawn
During the year the company has settled the loans from up as a going concern based on the Management’s
Banks and Financial Institutions outstanding as on assessment of the project after taking into account the
31.03.2008 and obtained satisfaction of charge from following positive developments:
them. Excess Interest recognized in earlier years, due • The entire equity participation for the project has been
to higher rates, aggregating Rs.15.85 Crores, resulting tied-up during the year under review, Tata Petrodyne
from settlement of these loans, has been reversed. Limited has increased their stake from 26% to 30%.
6 Unsecured Loans: Cuddalore Port Company Private Limited joined as an
a) Fixed Deposits: investor. Nagarjuna Fertilizers and Chemicals Limited,
There are no matured deposits which are claimed but the promoter company, has brought in their entire
remain unpaid as on the date of the Balance Sheet. The share component and other equity investors have
balance of matured unclaimed deposits outstanding as brought in their share of equity as per the agreement
on 31.03.2009 is Rs.9.07 lakhs (previous year Rs.22.70 with them.
lakhs). The unclaimed deposits are transferred to the • The project has been appraised by a consortium of
Investor Education and Protection Fund on the respective Sixteen Lenders, based on which, the lenders have
due dates Rs.9.19 Lakhs previous year Rs.6.83 lakhs) sanctioned a total amount of Rs.3193 crores as debt
b) Sales Tax Deferral: component. Common Loan Agreement between the
The Govt. of Andhra Pradesh has extended to the lenders and the company was signed in March 2008.
Company, the incentive of sales tax deferral scheme Out of the above sanctioned debt, the company has
pursuant to which the sales tax attributable to the sales already drawn Rs.609.17 crores by way of First and
effected out of production is deferred (interest-free) for Second drawdown from the lenders.
a period of 14 years from 19.03.1998. The deferred • The contracts with CB&I Lummus (Formerly ABB
sales tax of each year is repayable after the expiry of Lummus) to act as Project Management Consultants
the period deferred. have been renewed and work commenced. Agreements
7 Land and Buildings: with Licensors for the Major process units have been
a Includes 22.38 acres leased to Nagarjuna Agricultural signed and activated.
Research and Development Institute. • Equipment stored at Cuddalore and ports in Europe
b. Includes 5 acres, the possession of which is yet to be are subjected to regular inspection and technical
taken, title under dispute. experts have certified the good condition of the
c. Includes Land valued at Rs.958.08 lakhs and Buildings equipment.
valued at Rs.291.92 lakhs vested with the Company • Land required for setting up the Plant as well as all the
pursuant to the order dated 27-04-98, of the Hon’ble Infrastructural and statutory requirements have been
High Court of Andhra Pradesh. acquired / allotted.
d. Includes 45.04 acres attached by Government of AP in • The Company has obtained all necessary statutory
terms of GOMs No.158 dated 16.03.2009. The Company approvals from the appropriate Authorities for setting
has filled a writ petition in the High Court of A.P. up the Refinery.
challenging the notification of the Govt. of A.P. Equipment at European port:
e. Excludes value of 86.5 acres, which is in the possession Consequent to financial closure, contract with Uhde
and use of the Company pending fixation of GmbH for supply, dismantling, packing, storage and
compensation by the State Government. transportation of Mobil Refinery Equipment was activated
f. Excludes 14.06 acres (pending completion) of proposed during the year and Uhde GmbH resumed dispatches.
alienation and handing over possession by Govt. of During the year under review seven shipments were
Andhra Pradesh including 3.14 acres which cannot be dispatched by Uhde GmBH.
alienated under Andhra Pradesh Land Reforms Act, 1973. 9. Financial Statements of Jaiprakash Engineering and
g. Includes advance paid towards land and building of Steel Company Ltd:
Rs.317.00 lakhs and 730.00 lakhs respectively, pending The company has paid Rs.3053.65 Lakhs to Karnataka
registration since the title deeds are yet to be received Industrial Area Development Board (KIADB) towards
57
NFCL
deposit for acquisition of land to the extent of 816.68 b) Deferred Tax:
acres. KIADB had given possession of 1021.63 acres of Particulars 2008-09 2007 -08
land to the company including 204.75 acres of Government Deffered Tax Liabilities
Land. Since the company decided to shelve the project, (On account of Depreciation) 18121.19 19655.41
the aforesaid land was surrendered to KIADB in 2001 – 02 13. Expenditure on Research and Development
and the company sought refund of the deposit amount Rs. lakhs
paid towards the land. Particulars 2008-09 2007-08
KIADB has agreed to sell the land to the prospective buyers A. Capital Expenditure 12.41 251.81
and refund the proceeds to the Company. Shortfall in B. Revenue Expenditure
realisation if any will be adjusted in accounts. In view of Salaries & Wages 410.07 323.07
the developments taken place in surrounding areas, Contribution to funds 46.90 31.41
Other welfare expenditure 34.19 21.51
company is confident of selling the land to KIADB / other
Electricity and water 17.43 22.34
prospective buyers. The company plans to develop
Chemicals and consumables 21.13 124.43
infrastructure projects and accordingly the accounts are
Legal and Professional charges 158.34 310.36
prepared on Going Concern Basis.
Depreciation 228.69 194.92
10. Group Concession Scheme-(GCS) Subsidy : Others 160.66 178.77
Nitrogenous fertilizers are under the Group Concession Revenue Expenditure Total 1077.41 1206.81
Scheme as per New Pricing Scheme announced by the 14 .Managerial Remuneration:
Government of India, Department of Fertilizers vide their Rs. lakhs
letter dated 08 th, March, 2007 to be implemented for the Sl Remuneration of Managing Director 2008-09 2007-08
period from 01.10.2006 to 31.03.2010 (NPS-III). The No. and Whole Time Directors
Concession Rate for Plant-1 and Plant-2 for the period 1. Salaries 121.58 109.65
01.04.2008 to 31.03.2009 has been recognized based on 2. Perquisites 79.31 67.93
the latest notified rates under NPS-III and further adjusted 3. Contribution to Provident Fund 31.58 28.10
with input price escalation aggregating Rs. 7468.26 Lakhs and other funds
(Previous year Rs. 5220.43 lakhs) as estimated by
Management. Total 232.47 205.68
Pending finalisation of “Net Gain” and “IPP benefit” as per 15. Segmental Accounting
the policies for Production and Sale of Urea beyond 100% The financial results relate mainly to fertilizer segment.
re-assessed capacity, the company has estimated the In Accordance with Accounting Standard (AS) -17, since
Net Gain and IPP benefit in accordance with the known the financial results of micro irrigation segment is less
policy parameters in this regard. than the limit for separate disclosure, the same is not
Adjustments if any, on notification of final prices under shown separately.
the scheme will be considered in the year in which 16. Related party transactions
notifications are received. Names of related parties and description of relationship.
11. Sundry Debtors, Loans and Advances:
a) Associates
a. Specific debts and advances identified as irrecoverable
(i) iKisan Limited
and doubtful are written off – Rs. 2.66 lakhs (previous
year Rs. 37.45 lakhs) as bad debts. (ii) Nagarjuna Agrichem Limited
b. Certain advances aggregating to Rs.5267.32 lakhs were b) Key Management Personnel
outstanding as on 31 st March 2008, out of which Rs.700 (i) Mr.K.S.Raju, Chairman & Managing Director
lakhs is due annually as per the CDR Scheme. As against
(ii) Mr.K.Rahul Raju, Director – Joint Managing
the same the company could recover Rs.125 lakhs only Director
during the year. However, management is pursuing the
(iii) Mr.P.P.Singh, Director - Technical
matter and confident of recovering the balance amount.
c. Confirmation of balances from most of the sundry debtors (iv) Mr.R.S.Nanda, Director & Chief Operating Officer
have been obtained and others are awaited. (v) Mr.S Ram Mohan, Managing Director, NOCL
12. Income Tax c) Enterprises able to exercise significant influence
a) Current Tax : (i) Nagarjuna Management Services Private Ltd.
Provision for current tax is made for the amount of tax
(ii) Nagarjuna Holdings Private Limited.
payable in respect of taxable income for the year under
Income Tax Act 1961. The Company has, after making (iii) Chinnar Securities Private Limited
review of the pending tax matters, opined that no further (iv) K R R Holdings Private Limited
provision is necessary in respect of disputed tax demand (v) K S Raju Associates Holdings Private Ltd.
of Rs. 681.84 lakhs (Previous Year Rs. 1706.52 lakhs) d) Relatives of Key Management Personnel.
which are in various stages of appeals. Any further
(i) Smt. Lakshmi Raju (Daughter of Shri K.S.Raju
provision required in respect of disputed tax will be and Sister of K Rahul Raju.)
considered on completion of the appellate proceedings. (ii) Smt. Lakshmi Raju (Sister of Shri K.S.Raju)
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NFCL
2. Related party transactions are as under: Rs. in Lakhs
Key Mgmt. Enterprises Enterprises
Personnel/ able to Key Mgmt. able to
Sl. exercise
Nature of Transaction Associates Relative of Associates Personnel exercise
No. 31.03.09 Key Management significant 31.03.08 31.03.08 significant
Personnel influence influence
31.03.09 31.03.09 31.03.08
01. Finance :
a Equity ---- ---- ----
b Share Appln. Money ---- ---- ----
c Share Warrants ---- ---- ---- 652.50
d Refund of Share ---- ---- ---- 180.00
Appln Money
e Advances given 5267.31 180.00
f Advances received 125.00
02 Lease Rental Received 6.01 6.01
03 Remuneration To Key 232.47 205.68
Mgmt Personnel
04 Rent Paid 51.10 21.00
05 Others 21.77 ------
Sl. Earning per share (Basic and Diluted) has been Unit of
31.03.2009 31.03.2008
No. computed as under Measurement
18. Sales are net of cash discounts of Rs.165.84 lakhs (Previous year Rs.276.61 lakhs)
19. Dues to Small Scale Industrial Undertakings, exceeding 45 days - Nil
In terms of the agreement, the company is not required to pay interest.
20. Previous year figures have been re-grouped / re-classified / re-cast wherever necessary.
21. Amounts are rounded off to the nearest Rupees in Lakhs. Figures in brackets represent credits /
Deductions.
Signatures to Schedule 1 to 15
The Securities and Exchange Board of India has notified that the shareholders / transferee(s)
(including joint holders), holding shares in physical form are required to furnish a certified copy of
their PAN card to the company / RTA while transacting in the securities market in relation to
transfer, transmission of securities or any other corporate action.
Accordingly, all the shareholders / transferee(s) (including joint holders), are requested to furnish
a certified copy of their PAN card to the company / RTA while transacting in the securities market
in relation to transfer, transmission of securities or any other corporate action along with the
format appended below or email the format to [email protected].
Name :
Address :
Date :
Place : Signature
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