33i s h e r s p v t. l t d. 33rd annual report 2012-13 1 contents performance highlights 2 growth at...
TRANSCRIPT
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rd 33Annual Report
2012-13
1
ContentsPerformance Highlights 2
Growth at a Glance 3
Sources and Application of Funds 4
Board of Directors 5
Financials at a Glance 10
Directors' Report 11
Independent Auditors' Report 29
Financial Statements 31
Cash Flow Statement 35
( ` in crore)
2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004
Sales 2,206.54 2,131.84 2,073.44 1,637.39 1,512.40 1,385.62 1,343.97 1,257.30 924.22 979.31
Concession/Remuneration from Govt. of India 2,031.08 1,548.35 1,543.47 959.69 1,046.72 844.79 511.59 250.78 215.85 221.65
Other Revenue 316.42 333.78 228.24 304.78 409.75 266.56 248.11 255.33 132.01 124.00 4,554.04 4,013.97 3,845.15 2,901.86 2,968.87 2,496.97 2,103.67 1,763.41 1,272.08 1,324.96
Raw Material, Packing, Stores, Power, Fuel, etc. 1,834.45 975.10 1,341.61 966.46 1,501.74 1,111.16 825.43 727.54 707.55 687.64
Purchases - Fertilisers, Seeds & Chemicals 1,250.67 2,045.77 1,569.82 916.29 527.07 454.50 627.05 333.49 50.87 28.15
Changes in Inventory (Accretion/Decretion) (7.21) (37.22) (50.50) 38.20 58.90 36.77 (83.21) (8.56) (28.28) 25.79
Employees' Remuneration & Benefits 281.22 238.09 241.31 224.89 169.66 173.40 121.50 117.43 99.16 99.56
Other Expenses (including Net Prior Period 622.97 517.54 473.28 467.45 404.25 420.89 362.27 293.91 234.48 243.55 Income/Expenditure)
Finance Cost 113.68 49.21 8.89 5.18 10.38 5.32 1.47 2.30 2.78 0.86
Depreciation 93.38 33.32 30.48 30.62 27.53 22.79 17.63 17.10 19.69 19.90
4,189.16 3,821.81 3,614.89 2,649.09 2,699.53 2,224.83 1,872.14 1,483.21 1,086.25 1,105.45
364.88 192.16 230.26 252.77 269.34 272.14 231.53 280.20 185.83 219.51
Provision for Taxation ( Net ) 69.33 15.40 29.71 24.60 19.21 62.94 38.29 87.75 45.24 66.81
295.55 176.76 200.55 228.17 250.13 209.20 193.24 192.45 140.59 152.70
Amount Utilised fromDiv. Equalisation Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dividend Payout 78.03 78.01 69.29 77.67 71.28 79.20 78.91 78.47 74.50 88.33
Contribution to Cooperative Education Fund 2.95 1.77 2.00 2.28 2.47 1.84 1.78 1.67 1.24 1.38
Donations 0.40 0.40 0.40 0.40 0.40 0.40 0.25 0.26 1.15 0.15
214.17 96.58 128.86 147.82 175.98 127.76 112.30 112.05 63.70 62.84
EARNINGS
OUTGOINGS
PROFIT BEFORE TAX
PROFIT AFTER TAX
RETAINED PROFIT
PERFORMANCE HIGHLIGHTS GROWTH AT A GLANCE
2 3
Ammonia Production 12.50 LakhMT
Urea Production 21.36 Lakh MT
Profit Before tax ( `) 364.88 Crore
Bio-Fertiliser Sales (Liquid) 136.07 Kilo Litres
Bio-Fertiliser Production (Liquid) 159.50 Kilo Litres
Total Fertilisers sale 41.99 Lakh MT
Certified Seeds Production 3.22 Lakh Qtls
Certified Seed Sale 3.76 Lakh Qtls
KBSK Turnover (`) 131.03 Crore
Compost Sale 41051 MT
4 5
( ` in crore)
2012-13 2011-12 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004
Share Capital and
Application Money 390.23 390.23 390.23 390.67 390.74 396.08 396.11 394.67 393.59 491.82
Reserves and Surplus 2,746.19 2,532.06 2,435.33 2,306.46 2,158.68 1,982.43 1,891.41 1,779.02 1,666.76 1,602.99
3,136.42 2,922.29 2,825.56 2,697.13 2,549.42 2,378.51 2,287.52 2,173.69 2,060.35 2,094.81
Long Term Borrowings 584.66 597.50 30.23 0.23 0.23 0.76 0.41
Other Long Term Liabilities 28.85 23.65 15.35
Long term Provisions 124.68 115.05 99.99
Unsecured Loan from Bank 1,004.14 656.77 91.91 223.96
Deferred Tax Balance 18.75 18.50 22.50 16.63 5.03 0.00 24.61 30.32 35.07 37.42
FUNDS EMPLOYED 4,897.50 4,333.76 2,993.63 2,713.99 2,646.59 2,603.23 2,312.54 2,204.01 2,095.42 2,132.23
Fixed Assets
Gross Block(including
capital work in progress) 2,840.07 2,574.60 2,088.96 1,395.36 1,264.13 1,231.58 1,115.10 1,053.69 1,041.26 1,035.42
Less: Depreciation 977.23 887.20 925.76 896.91 881.17 856.29 844.77 829.11 813.70 795.42
Net Block (A) 1,862.84 1,687.40 1,163.20 498.45 382.96 375.29 270.33 224.58 227.56 240.00
Long Term Investment and
Loans & advances (B) 1,385.35 1,409.09 1,360.12 1,406.45 1,203.42 870.56 807.56 855.67 455.64 455.69
Deferred Tax assets ( C ) 4.18
Working Capital:
Current Assets 2,388.68 1,904.66 1,224.02 1,355.14 1,567.97 1,851.78 1,577.00 1,421.00 1,712.05 1,786.48
Less: Current Liabilities
and Provisions 739.37 667.39 753.71 546.05 507.76 498.58 342.35 297.24 299.83 349.94
Net Working Capital (D) 1,649.31 1,237.27 470.31 809.09 1,060.21 1,353.20 1,234.65 1,123.76 1,412.22 1,436.54
NET ASSETS EMPLOYED
(A+B+C+D) 4,897.50 4,333.76 2,993.63 2,713.99 2,646.59 2,603.23 2,312.54 2,204.01 2,095.42 2,132.23
SOURCES
Net Worth
APPLICATION
( RATIOS AFTER APPROPRIATION)2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007
1. Profit to Average Net Worth (%) 12.04 6.59 8.34 9.64 10.93 11.66 10.38
2. Current Ratio 1.37 1.44 1.99 2.75 3.61 3.71 4.61
3. Quick Ratio 1.20 1.26 1.65 2.49 3.19 3.28 3.87
4. Working Capital in terms of
Cash Cost of Production (Months) 1.89 1.84 1.98 3.76 5.21 7.50 7.65
5. Sundry Debtors to Sales (Months) 5.31 3.76 1.48 0.93 1.93 3.34 1.32
6. Inventory of Finished Goods to Sales (Months) 0.31 0.33 0.21 0.06 0.24 0.59 1.32
7. Debt Equity Ratio 0.55:1 0.45:1 0.10:1 0:1 0:1 0:1 0:1
SOURCES AND APPLICATION OF FUNDS
As on March 31, 2013
SIGNIFICANT FINANCIAL RATIOS
BOARD OF DIRECTORS
CHAIRMAN
VICE-CHAIRMAN
DIRECTORS
Shri Vaghjibhai Rugnathbhai Patel
Shri Chandra Pal Singh
Dr. Bijender Singh
Shri V. Sudhakar Chowdary
Dr. Sunil Kumar Singh
Smt. Shailajadevi D. Nikam
Shri Pareshbhai R. Patel
Shri Bhanwar Singh Shekhawat
Shri S.C. Gupta
Shri Ponnam Prabhakar
Shri Bhikhajibhai Zaberbhai Patel
Shri B.D. Sinha
Shri R. Kamra
Shri N. Sambasiva Rao
Shri R. K. Aggarwal
MANAGING DIRECTOR
FINANCE DIRECTOR
MARKETING DIRECTOR
OPERATIONS DIRECTOR
6 7
EX-MANAGING DIRECTORS
As on March 31, 2013
Dr. Bijender Singh Shri V.S. Chowdary Smt. Shailajadevi D. Nikam Shri Pareshbhai R.Patel
Shri B.S. Shekhawat Shri S.C. Gupta Shri Bhikhajibhai Z. Patel Shri B.D. Sinha
Shri R. Kamra
Shri V.R. PatelChairman
Shri Chandra Pal SinghVice-Chairman
Dr. Sunil Kumar Singh
Shri Ponnam Prabhakar
Shri N. Sambasiva Rao Shri R. K. Aggarwal
Shri P.R. DubhashiOctober 1980-September 1981
Shri P.S. Kohli*September 1981-November 1984
Shri Bansi Lal MehtaNovember 1984-November 1987
Shri Udai BhanDecember 1989-May 1993
Late Shri Hari Krishna ShastriMay 1993-May1996
Shri K. Srinivasa GowdaJune 1996-July 1999
Shri Chandra Pal SinghJuly 1999-May 2010
*Chairman-cum-Managing Director (November 1981-November1982)
Late Shri Paul PothenNovember 1980-November 1981
Late Dr. K.S. GillNovember 1982-November 1983
Late Shri. H.C. GroverNovember 1983-October 1985
Shri M.H. Avadhani**October 1985-June 1986
Late Dr. K.K.S. ChauhanJune 1986-May1990
September 1991-January 1992
Shri H.S. Kohli**May 1990-September 1991
Shri Naseem Ahmad**January 1992-April 1993
Shri A.K. MukhopadhyayApril 1993-July 1996
Shri R.L. Saha**August 1996-March 1997
Shri S. Kabilan**April 1997-October 1997
**Additional Charge/Acting Managing Director
Shri P.P.SinghOctober 1997-January 2001
Shri V.N. RaiFebruary 2001-July 2006
BOARD OF DIRECTORS EX-CHAIRMEN
8 9
EXECUTIVES EXECUTIVES
Shri. A.S. Awwal G.M. (Proj)
Shri. A.K. GuptaG.M. (Tech.)
Shri. S.K GargChief G.M. (F&A)
Shri. V.K. SwaminathanChief G.M. (F&A)
Shri. M.K. ShahG.M. (Prodn)
Shri. H.P. Kataria G.M. (Proj)
Shri. Amar Prasad
Shri B. MitraAddl. G.M. (Proj)
Shri G.H. SoniAddl. G.M. (Inst)
Shri S.U. ChaudhariAddl. G.M. (Com)
Shri M PailoorAddl. G.M. (MS)
Dr. W.S. GuleriaAddl. G.M. (Mktg Serv)
Shri J.P. PatelAddl. G.M. (Mech)
Shri R.M. ChopdeAddl. G.M. (Tech)
EXECUTIVE DIRECTOR (HR) & CVO
CHIEF GENERAL MANAGERS / GENERAL MANAGERS
ADDITIONAL GENERAL MANAGERS
Shri G.P. RaoAddl. G.M. (F&A)
Shri B.R. PatelAddl. G.M. (Mtls.)
Shri K.M. PatelAddl. G.M. (Mech)
Shri H.L. SharmaAddl. G.M. (F&A)
Shri G.S. PearlsonAddl. G.M. (F&A)
Dr. S. MaheshwariAddl. G.M. (Mktg.)
Shri M.R. SharmaAddl. G.M. (Prodn)
Shri A.B. DeAddl. G.M. (Prodn)
Shri A.K. DasAddl. G.M. (Prodn)
Shri C VenkatesvaruluAddl. G.M. (Elect)
Shri R.N. ShahAddl. G.M. (Civil)
Dr. S.R. PoundarikAddl. G.M. (Medical)
As on March 31, 2013
MAIN BANKERSICICI Bank Ltd.Indian Overseas BankHDFC Bank Ltd.State Bank of India
Red Rose House,49-50, Nehru Place,New Delhi-110019
P.O.KRIBHCO Nagar,Distt. Surat-394 515,Gujarat
PLANT OFFICECORPORATE OFFICEREGISTERED OFFICE
Shri S.S. Khare Shri M.C. Vashishta Shri N.K. Bhadu Shri R.K. BatraDy. General Manager (Mktg.) Dy. General Manager (F&A) Dy. General Manager (Mktg.) Dy. General Manager (F&A)Shri R.K. Bansal Shri A.K. Singal Shri S.P. Singh Shri Rajiv RastogiDy. General Manager (F&A) Dy. General Manager (F&A) Dy. General Manager (Mktg.) Dy. General Manager (F&A)Shri K. L. Taneja Shri R. K. Kansal Shri K.Hari PrakashDy. General Manager (Mktg.) Dy. General Manager (Mktg.) Dy. General Manager (Mktg.)Shri T.S. Rao Shri K.S. Sandhu Shri R.S. YadavDy. General Manager (Mktg.) Dy. General Manager (Mktg.) Dy. General Manager (Mktg.)Shri V.S.R. Prasad Shri Surendra Singh Shri Jitender KumarDy. General Manager (Mktg.) Dy. General Manager (Mktg.) Dy. General Manager (HR)
M/s G. S. Mathur & Co. M/s S. K. Mehta & Co. M/s G. K. Choksi & Co.Chartered Accountants Chartered Accountants Chartered AccountantsA-160 Defence Colony, 2682/2, Beadon Pura, Madhuban, Near MadalpurNew Delhi - 110024 Ajmal Khan Market, Karol Bagh, underbridge, Ellisbridge,
New Delhi-110005 Ahmedabad - 380006
KRIBHCO Bhawan,A8-10, Sector-1, NOIDA-201 301,Distt. Gautam Budh Nagar (U.P.)
JOINT STATUTORY AUDITORS
MARKETING DIVISION
Shri U.C. Sharma Shri S.S. Johar Shri C.J. Shah Shri Sunil JainDy. General Manager (Mech.) Dy. General Manager (Prodn.) Dy. General Manager (Inst.) Dy. General Manager (HR)Shri K.J. Rajan Shri R.K. Singhal Shri P S Gandhi Shri N.K. SahooDy. General Manager (Prodn.) Dy. General Manager (Prodn.) Dy. General Manager (Inst.) Dy. General Manager (HR)Shri V.K. Sareen Shri J. P. Verma Shri A.K. Jana Shri R. Mohan MallyaDy. General Manager (Mtls.) Dy. General Manager (Prodn.) Dy. General Manager (Mech.) Dy. General Manager (Prodn)Shri N. K. Gupta Shri K Srihari Shri M.P. Suthar Shri S.K. HandaDy. General Manager (Prodn.) Dy. General Manager (Mech.) Dy. General Manager (Mech.) Dy. General Manager (Prodn)Shri H.B. Trivedi Shri V.K. Singh Shri J. Sondhi Shri S.K.M ChauhanDy. General Manager (Elect.) Dy. General Manager (Mech.) Dy. General Manager (Mech.) Dy. General Manager (Mech)Shri S.B. Nogi Shri Godavarthy Srinivas Shri Shrawan Kumar Shri V. SinghDy. General Manager (Prodn.) Dy. General Manager (Mech.) Dy. General Manager (Mech.) Dy. General Manager (F&A)Shri R L Shukla Shri N.K. Gurjar Shri S. Prasad Shri Pravin TewariDy. General Manager (Mtls) Dy. General Manager (Mech.) Dy. General Manager (Mech.) Dy. General Manager (HR)Shri D.K. Mandal Shri S.L. Pandya Shri P. Kumar Shri R.K.A. PujaraDy. General Manager (Proc) Dy. General Manager (Prodn) Dy. General Manager (Inst) Dy. General Manager (HR)Shri I.A. Khan Shri Rishipal Singh Shri A. J. PansaraDy. General Manager (Proc) Dy. General Manager (Elect.) Dy. General Manager (Inst.)Shri Amarjeet Singh Shri J.J. Dalwadi Shri R.ShankarDy. General Manager (Trg.) Dy. General Manager (Inst.) Dy. General Manager (Elect)
HAZIRA COMPLEX
Shri A.K. Singh Shri R. Venkataramanan Shri V.K. Mahendru Shri C.S. AzadDy. General Manager (MS) Dy. General Manager (F&A) Dy. General Manager (F&A) Dy. General Manager (Proj)Shri M.C. Bansal Shri R.S. Tanwar Shri Anil Sharma Shri I.B. SinghDy. General Manager (F&A) Dy. General Manager (HR) Dy. General Manager (F&A) Dy. General Manager (Mktg)Shri M.C. Dimri Ms. Poonam Sharma Shri Vijay Sahai Shri Sushil KaushikDy. General Manager (Material) Dy. General Manager (HR) Dy. General Manager (F&A) Dy. General Manager (HR)Shri P.N.C. Thakur Shri P.S. Rathore Shri D.K. BhargavaDy. General Manager (F&A) Dy. General Manager (HR) Dy. General Manager (F&A)
CORPORATE OFFICE As on March 31, 2013
1610
FINANCIALS AT A GLANCE
390.23 390.23 390.23
2,532.062,746.19
500
1000
1500
2000
2500
3000
3500
2,435.33
2,825.562,922.29
3,136.42
NET WORTH
EQUITY RESERVES NET WORTH
31.03.2011 31.03.2012 31.03.2013
(` in
cro
re)
230.26
150.00
200.00
250.00
300.00
FINANCIAL PERFORMANCE
PROFIT BEFORE TAX PROFIT AFTER TAX
2010-2011
(` in c
rore
)
350.00
400.00
200.55
192.16176.76
364.88
295.55
100.00
2011-2012 2012-2013
SOURCES OF INCOMEfor the year ended 31.03.2013
2,206.54 (48%)2,031.08 (45%)
316.42 (7%)
( ` in crore)
SALES (NET) CONCESSION / REMUNERATION FROM GOVT. OF INDIA OTHER REVENUE
DISTRIBUTION OF INCOMEfor the year ended 31.03.2013
295.55(6.5%)
69.33 (1.5%)
93.38 (2.1%)
736.65 (16.1%) 1812.19(39.8%)
1265.73 (27.8%)
281.22 (6.2%)
( ` in crore)
CONSUMPTION - MATERIALS & STORES ( NET OF STOCK)
EMPLOYEES REMUNERATION AND BENEFITS
DEPRECIATION
PROFIT AFTER TAX
PURCHASES - SEEDS, CHEMICALS & OTHER FERTILISERS (NET OF STOCK)
EXPENSES - MANUFACTURING , ADMINISTRATION, DISTRIBUTION & INTEREST
TAXATION (NET)
1711
DIRECTOR’S REPORTDear Cooperators,
The food grain production of the country during 2012- additional Urea capacity of 4.66 lakh MT after revamp of 13 is likely to cross 250 million MT second year in row, inspite our Hazira Plant has taken the total production capacity to of adverse weather conditions in many states in western and an all time high of 21.95 lakh MTPA. Society initiated southern parts of the country. Genesis of new policy production and marketing of Neem Coated Urea from environment through New Investment Policy for Urea, Hazira unit providing value addition to the farming opened new avenues for Greenfield, Brownfield and revamp
community. During the year, we have recorded ever projects in Urea production. A challenging and level field in
highest 40.03 lakh MT sales of Urea. Highest production of Urea production has been envisaged with a goal to make
liquid bio-fertilizer was also achieved during the Financial India self sufficient in Urea production.Year. The sales of semi solid bio-fertilizers, compost, The year 2012-13 was challenging, meeting deadlines hybrid seeds and SSP were also in line with the earlier and fulfilling several commitments for your Society. The devised marketing plan. KBSK’s have also shown Society during the Financial Year has many firsts since its impressive growth with an all time high turnover of inception. A record has been made in production and
despatch of Urea and ammonia from Hazira Plant. The ` 131.03 Crore.
Board of Directors, KRIBHCO addressing 32nd AGM on 20 Sept. 2012 in New Delhi
32nd AGM...
Sh. Vaghjibhai Rugnathbhai Patel, Chairman
KRIBHCO addressing the RGB delegates in 32nd AGM
32nd AGM...
1713
4. DIVIDEND
Hon’ble members will be pleased to know that the Board of Directors of the Society have recommended for the ninth consecutive year, the maximum permissible dividend of 20 % on the paid up share capital. The proposed dividend would be paid on pro rata basis to the eligible shareholders whose names stood in the membership register of the Society as on March 31, 2013. Accordingly the amount of proposed dividend payout will be ` 78.03 Crore.
5. MEMBERSHIP AND SHARE CAPITAL
6. PRODUCTION PERFORMANCE
The Cooperative thrive on the trust of its members. The total membership in KRIBHCO as on March 31, 2013 was 7374 Cooperative Societies (including Government of India and other Institutions) as against 7349 as on March31, 2012. The paid-up share capital of the Society was` 390.18 Crore as on March 31, 2013.
During the Financial Year 2012-13, Your Society’s Hazira Plant was in the 27th year of commercial production. This was the 1st Financial Year after completion of Revamp Project.
The production achieved during the Financial Year was 12.50 lakh MT Ammonia and 21.36 lakh MT Urea which corresponds to a capacity utilization of 102.49% for
• PRODUCTION PLAN FOR FINANCIAL YEAR 2013 - 2014
The production target for the Financial Year 2013 - 2014 has been fixed as 21.61 Lakh MT for Urea and 12.67 Lakh MT for Ammonia. Your Society is planning to produce 50% of the total Urea (i.e. 10.80 Lakh MT) as Neem Coated Urea.
7. SCHEMES IMPLEMENTED / UNDER IMPLEMENTATION / TO BE IMPLEMENTED
• Revamp Project
Your Society completed the Hazira Revamp Project with technology from M/s. KBR for Ammonia and M/s. Saipem for Urea and declared Commercial Production w.e.f. 12.5.2012. After Revamp, the capacity of the Ammonia Plants has increased from 10.03 Lakh MT to 12.95 Lakh MT and that of Urea Plants from 17.30 Lakh MT to 21.95 Lakh MT. Thus, the Hazira Fertilizer Complex has become the largest single location Urea Plant in entire country. The project has been completed at a cost of` 1226 crores.
Ammonia and 99.69% for Urea. The production of Urea could have been still higher but it was restricted due to
2limited availability of CO because of lean natural gas feedstock.
For the first time, Your Society commenced the production and despatch of Neem Coated Urea during the Financial Year.
20.30
48.99
19.50
58.51
19.50
58.53
-
10.00
20.00
30.00
40.00
50.00
60.00
2010-2011 (20%) 2011-2012 (20%) 2012-2013 (20%)
YEARS
DIVIDEND PAYOUT
GOI OTHERS
115.42106.46
88.5582.87
102.49 99.69
-
20.00
40.00
60.00
80.00
100.00
120.00
Ca
pa
cit
y
U
tiliza
tio
n (
%)
2010-2011 2011-2012 2012-2013
YEA R
Ammonia Urea
KRIBHCO AMMONIA &UREA CAPACITY UTILISATION
(` in
Cro
re)
1612
3. APPROPRIATION
Contribution towards capital repatriation fund of` 0.21 Crore is reduced from the Profit after Tax for the purpose of arriving at the Net Profit in accordance with the provision of Section 62 of the Multi State Cooperative Societies Act (MSCS) Act 2002. Accordingly, the net Allocable Profit works out to ̀ 295.34 Crore which has been proposed for appropriation as follows:
The Year 2012 was proclaimed International Year of Cooperatives by the United Nations. The year was earmarked with different initiatives and programs creating an environment for cooperative development. Your Society has continued to dedicate itself to rural development and spreading the wave of cooperative movement across the nation.
(` in Crore)
Table -2 2012-13 2011-12
Net Profit As 295.34 176.74per the MSCS Act 2002
Appropriations 73.84 44.19Reserve Fund as per Bye Law 58(i) of the Society
Provision for 2.95 1.77Contribution to Cooperative Education Fund
Reserve Fund 29.53 17.67for Contingency
Reserve For 0.40 0.40Donation
Proposed Dividend 78.03 184.75 78.01 142.04
Balance 110.59 34.70Transferredto GeneralReserve
2. FINANCIAL PERFORMANCE
Your Society has posted a Pre Tax profit of ` 364.88 Crore. The net worth of the Society has also increased from` 2,922.29 Crore in 2011-12 to ` 3,136.42 Crore as onMarch 31, 2013
( ` in Crore)
Table - 1 2012-13 2011-12
Sales turnover including Subsidies 4,237.62 3,680.19
Other Revenue 316.42 333.78
Income 4,554.04 4,013.97
Profit Before Tax(PBT) 364.88 192.16
Provisioning for Tax (Net) 69.33 15.40
Profit After Tax (PAT) 295.55 176.76
Sh. B.D. Sinha, Managing Director and Sh. N. Sambasiva Rao, ndMarketing Director, KRIBHCO, Visiting Soil Testing Exhibit in 32 AGM
1614
• Neem Coated Urea Project
After successful trial runs, Your Society commenced regular production of Neem Coated Urea from December 2012. Neem oil storage tank with loading and unloading facilities was also commissioned. All the major inputs for this project utilised indigenous resources available at Plant. Your Society has produced 1.00 lakh MT of Neem Coated Urea by the end of March, 2013 and despatched to different parts of the country.
• Energy Saving Measures
Society has undertaken certain energy saving measures after which the specific energy consumption of Ammonia and Urea Plants decreased from the levels achieved after the Revamp. These modifications were carried out mainly in cooling water network, purification system, waste gas burners, and refrigeration loop. Some modifications were also carried out in urea plants and power Plant.
• New Gas Turbine Based Power Plant
Society is setting up a new Gas Turbine based Captive Power Plant of 72 MW capacity. Total project cost is expected to be ` 400.80 Crore. The work was awarded to M/s Bharat Heavy Electricals Ltd on Lump Sum Turn Key basis in September 2011. M/s Fichtner Consulting Engineers are the main consultants. The Gas Turbine has been supplied by M/s General Electric (GE). The project is now in advanced stage of erection and expected to be completed in October, 2013.
• Hazira Fertilizer Phase-II Project
After the announcement of ‘New Investment Policy-nd2012’ on 2 January 2013 by the Government of India, the
Board of Directors accorded in-principle approval for
setting up a Brownfield fertilizer project at existing Hazira
Plant site consisting of a single stream Ammonia Plant of
capacity 2200 MTPD and a single stream Urea Plant of
capacity 3850 MTPD with associated offsite facilities.
Society has already floated a Notification Inviting Tender
(NIT) to leading global contractors on Lump Sum Turn Key
basis.
• DAP/Complex Fertilizer Project in East Coast
Your Society is exploring the possibilities to set up State of the art DAP/Complex fertilizer Plant with an annual capacity of 1.20 million MT in two phases near
Krishnapatnam Port on east coast of India. Your Society has
prepared a Techno- Economic Feasibility Report (TEFR) for the project. Your Society has approached Governmentof Andhra Pradesh for allotment of 119.40 acres and170.00 acres of land for setting up of Plant. The Society has
entered into Memorandum of Understanding (MOU) with
Government of Andhra Pradesh on January 13, 2012. Government of Andhra Pradesh will facilitate the Society in obtaining necessary permissions/ registrations/ approvals/
clearances, etc from the departments concerned of the
State Government.
Your Society is fully committed towards continual
improvements in the fields of Safety, Health and Environment (SHE). Society has got ISO 9001-2008, and ISO
14001, ISO 18000 certifications as an integral part of its
operations. The safety setup of KRIBHCO Hazira Plant has
been established with a vision to achieve its slogan of
“SAFETY FIRST; PRODUCTION MUST.” Your Society follows
‘mutual aid scheme’ at its Hazira Plant with nearby Plants of
ONGC, IOCL, RIL and NTPC which has resulted in Your
Society’s prompt response in dousing fire in IOCL unit. The
swift response of KRIBHCO Hazira in fighting the massive
fire in the petrol and diesel bulk storage tanks area of
neighboring Indian Oil Corporation Limited at Hazira was
highly appreciated by the State Authorities. Your Society
has installed and implemented State of the art automatic
8. SAFETY MANAGEMENT
Sh. R. K. Aggarwal, Operations Director reviewing work at Hazira plant
1715
and manual fire and toxic gas alarm system. The two tier
safety committees are also operational in Plant site.
Emergency communication system has been operational
whereas, emergency planning and preparedness along-
with ‘On Site Emergency Plan’ (OSEP) are being followed. A
full fledged fire station equipped with three major fire
tenders, one emergency/rescue tender, speed boats, an
ambulance and other auxiliary vehicles and equipment
and state of the art fire suppression systems are in place.
Your Society is committed for minimizing the adverse
impact on environment due to its operations and its
products through the use of best available technology and adoption of sustainable practices. Your Society implemented the Environmental Management System
duly certified with the ISO 14001 which ensures excellent
environment safe effective measures.
Your Society has implemented various recycle/ re-uses schemes for water conservation. Tertiary treated water is
being reused as cooling tower make up. Deep hydrolyser is
installed in Urea Plant to reuse the effluent as boiler feed water after treatment. Energy efficient practices had always been promoted in Your Society. New initiatives being
considered on this front are Reverse Osmosis based
Recycling Plant based on Zero discharge concept to reuse the total effluent generated in the complex as cooling
tower make up. To treat the ammonia bearing effluent,
Society is in process to install another Steam stripper in
Urea-I.
Continuous efforts have also been made to check the emission of pollutants in air. Wet de-dusting system at
Prilling tower top has been installed to restrict the Urea
dust. Emission of the Urea dust and Ammonia in the atmosphere is well below the prescribed limits. To continuously monitor the effects of emission from stacks,
an automatic ambient air quality station has been installed
within the complex. Six ambient air quality-monitoring
stations have been set up within a radius of 10 km from our
complex for periodic monitoring of air quality in surrounding area.
The Society has undertaken afforestation by planting trees of different species every year in order to improve the
9. ENVIRONMENTAL PROTECTION
ambient air quality within the complex. Lush green lawns are also developed in an area of 100 acres. More so, a demonstration farm in an area of 41 acres has also been developed. To create awareness among contractor's workers an audio-video module on Environment Protection is regularly shown to all the contractor's workers and thereafter, they are allowed to work in the Plant premises.
The stage-III of New Pricing Scheme (NPS), applicable to the indigenous Urea industry was effective up to March 31, 2010. This scheme has been extended until the new policy for Urea industry is introduced. The new policy for Urea is in final stage and is expected to be announced shortly by Government of India.
Government of India announced the New Investment Policy 2012 (NIP-2012) dated 02.01.2013 to facilitate fresh investment in Urea sector. This policy is attractive and therefore Society has submitted application to Government of India for Hazira Expansion Phase II under NIP-2012. Government of India has received many applications and is in the process of finalizing the criteria for selection of the company under NIP-2012.
11.1 Overall Agriculture Scenario
The rainfall for the season (June-September) was 92 % of its long period average (LPA) for the country as a whole. Seasonal rainfall was 93% of its LPA over Northwest India, 96% of its LPA over Central India, 90% of its LPA over south Peninsula and 89% of its LPA over Northeast (NE) India. However the monsoon rains in many states of Western and Southern parts of the country were erratic and deficient leading to drought like conditions in large parts particularly in Gujarat, Maharashtra, Andhra Pradesh and Karnataka.
11.2 Marketing Infrastructure
The Society channelizes its products through Cooperatives and Institutional Agencies that includes Cooperative Apex Federations, Village level Primary Agriculture Societies and Institutional Agencies. The Society organizes Cooperative Development Programmes throughout its Marketing territories on regular basis. These Programmes help its channel partners, especially Primary Agricultural Cooperative Society (PACS) to acquire marketing skills and other agriculture practices for inclusive development of the cooperatives at grass root level. The Direct supplies to PACS help these societies enormously as the timely supplies enable themto increase fertilizer consumption and agriculture
10. FERTILIZER POLICY
11. MARKETING
priority despatches and non availability of rakes. Inspite of huge stocks of DAP in the states, the Society was able to sell entire DAP/DAP Lite through its marketing network during the Financial Year.
• Infrastructure at PortsThe infrastructure developed at Visakhapatnam and
Tuticorin was used for storage and bagging of imported fertilizers. The Society handled 1.92 lakh MT of fertilizer material at its godown at Visakhapatnam port and 1.61 lakh MT of fertilizer material at its godown at Tuticorin port. Your Society also owns and operates HAZIRA Jetty, where, 1.18 lakh MT of OMIFCO Urea was handled during the Financial Year.
• Future Plan for Imports During the year 2013-14, the Society has planned to
import and handle about 5.00 Lakhs MT of DAP.
11.6 Single Super Phosphate (SSP) The cost of Phosphatic fertilizers had become very
high and it was not possible for the small and marginal farmers to apply DAP and NPK fertilizers as per their requirement. Therefore, in order to supply low cost Phosphatic fertilizer to farmers, the Society started trading of SSP since August, 2011 in Uttar Pradesh, Haryana, Punjab and Rajasthan. During the Financial Year, Your Society has sold 18,133 MT SSP in the aforesaid states. There is plan to cover some additional states and sell 90,000 MT of SSP during 2013-14.
11.7 Seed Business
• Certified SeedThe seed multiplication programme was initiated by
Your Society in the year 1990-91, which provides quality seed of the main crops to farmers such as Paddy, Wheat, Barley, Maize, Gram, Pea, Arhar, Moong, Lentil, Soybean, Mustard, Groundnut, Castor and Guar.
In order to provide quality seed, Your Society has set up 15 modern Seed Processing Plants located at strategic locations across the country with cumulative installed seed grading capacity of 3.10 lakh quintals per annum. During the FY 2013-14, Your Society is planning to establish two
more seed grading units at Faizabad (UP) and Sehore (MP). After commissioning of these units, the total installed capacity of the seed processing will be 3.40 lakh quintals per annum. The seed grading unit housing in its own premises at new site is under progress at Hissar.
11.5 Handling of Imported Fertilizers
• OMIFCO UreathThe Society successfully completed the 8 consecutive
year of Handling and Marketing of OMIFCO Urea under the
agreement with Department of Fertilizers, Government of
India. During the Financial Year, Your Society has handled
twenty two vessels at seven Indian ports containing a total
8.99 Lakh MT granular Urea. Your Society has so far handled
235 vessels containing a total 74.61 Lakh MT OMIFCO Urea
since inception of imports from OMIFCO, Oman. The
Society despatched of 9.01 Lakh MT of OMIFCO granular
Urea in the year. The Society also sold 8.93 Lakh MT of
OMIFCO granular Urea during the Financial Year.
The Society has been efficiently handling the vessels of
OMIFCO Urea by way of judicious despatches and limiting cargo loss.
171717
• Phosphatic and Potassic Fertilizers
The year 2012-13 was not very favourable in Southern
and Western part of the country especially for P&K
fertilisers. Hence, the Society imported only 1.97 lakh MT of
DAP/DAP Lite through 5 vessels during the year. These
fertilizers were handled at Visakhapatnam, Kakinada,
Mundra and Kandla Ports to meet the requirements of
these states. The Society was able to despatch maximum
quantity in time despite constraints on account of Urea
Unloading of Imported Urea from Oman at Captive Jetty Hazira
161616
The Society has made significant achievements on marketing fronts and has achieved the sales of fertilizers to the tune of 41.99 lakh MT during the year. The Society has
sold 21.15 lakh MT of KRIBHCO Urea which includes 94960
MT of Neem coated Urea , 8.93 Lakh MT of OMIFCO Urea
and 9.95 Lakh MT of KSFL Urea during the year. In order to promote balanced fertilization, the Society further expanded its products range to cover DAP also. The
Society sold 1.96 lakh MT of Imported DAP and DAP Lite as
against 3.09 lakh MT of last year.
Apart from Urea, the Society also sold 29,937MT of
Surplus Ammonia during the year as against 65,610MT in 3the previous year. The Society has also sold 26,09,586 NM
liquid Argon during the year.
-
5.00
10.00
15.00
20.00
25.00
(QT
Y.
LA
KH
MT
)
2010-2011 2011-2012 2012-2013
YEARS
KRIBHCO UREA SALESproductivity as well as to maximize financial benefits of its members.
The interdisciplinary team of marketing and
agriculture extension experts speared all over the major
states have provided quality services extensively to
farming community in all crop production cycles. The
Society has Pan India presence. Your Society has
established strong Brand image for its products in the key
market territories. The major marketing territories consists
of Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana,
Jharkhand, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Orissa, Pondicherry, Punjab, Rajasthan, Tamil
Nadu, Uttar Pradesh, Uttrakhand and West Bengal.
11.3 Marketing Business Plan
Marketing Business plan has emerged as an
indispensible tool and database for strategic marketing of entire portfolio of products. The business plan exercise is participatory and has a bottom up approach. It involves all
field staffs in understanding the issues and challenges; the
state wise targets were defined along with product-wise specific contribution. Considering competition/ production plan, a Review and Monitoring’ system has been evolved.
Business plan exercise, factor-in the impact of different
attributes such as monsoon, fertilizer scenario, and policy environment, future thrust area and resources that affect the fertilizer industry.
Focus on micro planning and preparing a roadmap for marketing in future years is laid while devising the business
plan. State wise sales planning and allocation is envisaged while preparing the plan. Planning for Society’s product
portfolio has been done for five years down the line.
11.4 Sales and Distribution of Fertilizers
Your Society made timely despatches of own Urea, as
per Monthly Movement Order issued by DOF for ECA and
for de-regulated quantity from Hazira Plant to various
destinations. It has tried to match Business plan quantities
for different states as well. The Society despatched the material by utilizing the Rail and Road mix. During the year
21.40 lakh MT of own Urea was despatched to different
destinations in the country.
TOTAL UREA SALES
32.00
33.00
34.00
35.00
36.00
37.00
38.00
39.00
40.00
41.00
2010-2011 2011-2012 2012-2013
YEARS
(QT
Y. L
AK
H M
T)
40.03
34.93
38.23
18.40
14.25
21.15
1618
KRIBHCO branded Hybrid seeds have become popular
among farming community within a short span due to high
yield, relationship building and strong brand image. Society has projected a sale of 5,92,000 packets of Bt. Cotton, 8370 quintals of Hybrid Maize, 6600 quintals of
Paddy Seed and 155 quintals of Bajra , in Year 2013-14.
11.8 Organic Fertilizers
• City Compost
Your Society initiated co-marketing of City Compost
from December 2009, and has been consistently increasing the sales over the years. During the Financial Year, Society has sold 41,051 MT of compost. In order to popularize compost, the Society is constantly educating farmers for its
application in addition to chemical fertilizers. Some of the
State Governments like Bihar and Gujarat are providing subsidy on city compost as a promotion strategy to
increase its acceptability amongst farmers.
• Bio-fertilizer
The Society has been producing solid bio-fertilizers at
three different locations i.e. Hazira (Gujarat), Lanjha
(Maharashtra) and Varanasi (UP) and marketing in various
states since 1995. The production of liquid bio-fertilizers has also been initiated in the year 2010-11 at Hazira Plant.
At present, the Society is dealing in 5 types of bacterial
strains namely Azotobactor, Azospirillum, Rhizobium,
Phosphorus Solubilizing Bacteria (PSB) and Acetobactor.
During the year, the Society produced 492.50 MT of solid
and 159.50 kilo liters of liquid bio-fertilizers. The total
quantity marketed during the year was 582 MT of solid and
136.07 kilo liters of liquid bio-fertilizers. Society has a
During FY 2012-13, Your Society produced 3.22 lakh
quintals and sold 3.76 lakh quintals certified seeds of
various crops and varieties, which contributes 1.08% in the national seed availability. The Society plans to produce 4.30 lakh quintals of various class/variety crop seeds during
2013-14. In order to strengthen the quality assurance for
our certified seeds, Your Society is establishing one seed testing laboratory at NOIDA, which will become functional during 2013-14.
• Hybrid Seed
Your Society has been successfully marketing Hybrid
Seeds through its own marketing network in KRIBHCO’s own brand. During the year, Society marketed 3.65 lakh packets
of Bt. Cotton, 111.15 quintals of Paddy Hybrid, 4855.92
quintals of Paddy Research, 4585.79 quintals of Maize
Hybrid and 41.01 quintals of Hybrid Bajra Seeds.
Smt. Sandhya Tiwari, Managing Director, PCF (UP) and Sh. N. Sambasiva Rao, Marketing Director, KRIBHCO,
exchanging MOU on seeds
A Demonstration plot of Maize Hybrid Crop
1719
12. KRISHAK BHARATI SEWA KENDRA (KBSK)
Your Society is operating Krishak Bharati Sewa Kendra (KBSK) in the states of Uttar Pradesh (36), Haryana (17) and
Punjab (11). It ensures availability of KRIBHCO Urea, OMIFCO
Urea, KSFL Urea, Neem Coated Urea, DAP, MOP, SSP, Certified Seeds, Hybrid Seeds, KRIBHCO Compost, Zinc Sulphate,
Weedicides, Insecticides and other essential agro inputs
along with transfer of technology.
13.1 Joint Venture and Subsidiaries
• Oman India Fertilizer Company SAOC (OMIFCO)
With an investment of US$ 69.5 Million (Equivalent to
INR 328.53 Crore), Your Society is one of the lead sponsors
of Oman India Fertilizer Company (OMIFCO); representing 25% of paid up equity capital of OMIFCO. This fertilizer Plant
has a capacity to produce 16.52 lakh MTPA of granular Urea
and 11.90 lakh MTPA Ammonia
During the Financial Year, OMIFCO produced 18.04
lakh MT Urea, which is 109.3% of the annual rated capacity
of 16.52 lakh MT. With this, OMIFCO has produced more
than 151.19 lakh MT Urea since inception. Your Society is
handling and marketing 50% of the Urea produced by
OMIFCO. For the calendar year 2012, OMIFCO paid a
dividend of 68.35% on paid up capital. KRIBHCO received
US$ 47.5 Million as dividend income from OMIFCO during
the year.
• KRIBHCO Shyam Fertilizers Limited (KSFL)
Your Society holds 85% equity in KRIBHCO Shyam
Fertilizers Limited (KSFL) with the balance 15% equity
being held by M/s STL Fertilizers Pvt Ltd. KRIBHCO holds
13 INVESTMENTS /JOINT VENTURES/ SUBSIDIARIES/OTHERS
Mr. Mishal Al-Mutairi (Manager-Marketing Ma’aden, Saudi Arabia) addressing the farmers during visit of KBSK
production plan of 646 MT of solid and 236.50 kilo liters of
liquid bio-fertilizers. New strains like NPK Bio-fertilizer, Zinc
Solubilizing Bacteria and Potash Mobilizing Bacteria are
under consideration for production next year.
There is appreciable response of liquid bio-fertilizers
from the farming community due to its longer shelf life,
survival at higher temperatures, easy application and low
prices which have helped in establishing its place in the
market.
KBSKs attained a consolidated sale turnover of ` 131.03 Crores during the Financial Year against the previous Financial Year turnover of ̀ 113.49 Crores, registering 15% growth in turnover.
SALES OF LIQUID BIO-FERTILIZER
4.46
27.60
136.07
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
2010-2011 2011-2012 2012-2013
(KIL
O L
ITE
R)
YEARS
SEED PRODUCTION AND SALES
2.48
3.14 3.22
2.472.72
3.76
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2010-2011 2011-2012 2012-2013
YEARS
(QT
Y.
LA
KH
QT
LS
)
Production Sale
1620
During the Financial Year, KSFL produced 10.08 lakh MT Urea (representing 116.6% capacity utilization). The
production of Ammonia was 6.00 lakh MT (representing
119.6 % capacity utilization). Thus, KSFL has achieved
maximum capacity utilization in Urea and Ammonia production. KSFL received Runner up Award for the Best Production Performance under the category of FAI Golden
Jubilee Awards and Third Prize for their article “Improving
Reliability and Energy Efficiency in KSFL Plant” Published in Indian Journal of Fertilizers. KSFL is envisaging export of
power generated from a 20 MW Frame 5 Gas Turbine. A 132
KW Switchyard along with 15 km transmission line and
ancillary facilities has been created to enable export of power.
• KRIBHCO Infrastructure Ltd (KRIL)
Your Society has incorporated KRIBHCO Infrastructure
Limited (KRIL), a 100% subsidiary, with authorized share
capital of ` 500 Crore. The paid up capital is ` 155 Crore.
KRIL is operating eight container trains (BLC Flat Rakes) and
1350 containers. KRIL is maintaining and operating Rail
Linked Inland Container Depot (ICD) / Private Freight Terminal (PFT) at Hazira under Leave and License
ICDs / PFTs at Modinagar (UP) and Hindaun City (Rajasthan) are in advanced stage of completion and are
expected to be operational shortly. KRIL is also exploring
possibilities to set up Logistic Parks / ICDs / PFTs/ Container Freight Stations (CFS) / Free Trade Warehousing Zones / Domestic Container Terminals /Warehouses etc at various
strategic locations.
• Gujarat State Energy Generation Ltd. (GSEG)
Your Society has diversified into power sector and has
invested in Gujarat State Energy Generation Limited
(GSEG). It is a joint venture between Gujarat State Petroleum Corporation Ltd (GSPC), other Government of Gujarat Companies, KRIBHCO and GAIL (India) Ltd. In
addition, SBI and IFCI are strategic partners. Society has so
far made equity contribution of ` 102.04 Crore (27.9%).
GSEG is operating a 156 MW Combined Cycle Power Plant based on Natural Gas at Mora, District Surat, Gujarat.
During the Financial Year, Plant has achieved an overall
Plant Load Factor (PLF) of 51.3%
GSEG has implemented a Combined Cycle Gas Based
Expansion Project of capacity 350 MW at its existing Site at an estimated cost of ̀ 1160 Crore. Commercial operation of
the Expansion Project was declared on March 22, 2012. This
Plant will be operational after allocation of natural gas.
Sh. V.P. Kaushik (MD, KSFL) received FAI Award from Sh. Srikant Jena Hon'ble Minister of State for Chemicals & Fertilizers
for Best overall performance of KSFL
Sh. Chandra Pal Singh Vice Chairman, KRIBHCO Inaugurating Substation at ICD, Rewari of KRIBHCO Infrastructure Ltd
Agreement with KRIBHCO. ICD at Rewari has been
completed and commissioned within record time in the
industry
management control and the entire marketing rights of
Urea and other products of the company. KSFL owns a gas
based Fertilizer Complex at Shahjahanpur, U.P, consisting of
Ammonia Plant of annual capacity 5.02 Lakh MT (1520
MTPD) and Urea Plant with an annual capacity of 8.64 Lakh
MT (2620 MTPD).
1721
distribution of merchandises and utility material has
improved Your Society’s proximity to agrarian community
as well as channel partners. Your Society maintains a
distinct brand image in corporate circles by actively
participating in various central/state government forums,
fertilizer conferences and other related fairs and forums of
national and international level.
Your Society’s mission and vision is to serve the
agrarian community. The Society has facilitated in creating
alternate livelihood options through income generating
activities, Organized Health camps, Created Drinking water
facilities, Plantation of green muffler, undertaken
watershed development projects in different states. Your
Society is committed towards environmental protection and restoration. Society had initiated and continued mangrove reclamation projects in coastal region.
15. CORPORATE SOCIAL RESPONSIBILITY
13.2 OTHERS
• Nagarjuna Oil Refinery Ltd. (NORL)
The Society holds an equity investment of ` 476.19
lakh, which is 2.34% of NORL’s paid up share capital. The
equity shares of the company are listed on Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE). The
company holds 46.78% of paid up equity capital in
Nagarjuna Oil Corporation Ltd (NOCL) which is setting up
6 MMPTA refinery project at Cuddalore, Tamil Nadu.
The expected zero date is Sept, 2013 with an estimated
project cost of ̀ 15,000 Crore for 6 MMPTA Plant.
• Nagarjuna Fertilizers and Chemicals Ltd. (NFCL)
The Society holds equity capital of ` 523.81 lakh in NFCL which is 1.84% of the paid up share capital of NFCL. During the Financial Year 2012-13, NFCL produced 15.65
LMT of Urea and sold 15.55 LMT of Urea. In addition to NFCL
Urea, they have sold 17.84 LMT of imported Urea. In addition, in the micro irrigation division, they have achieved a production of 17.52 Lakh MTs. The Society has
received a dividend of `1.10 Crore from them during the
year under report.
• Indian Commodity Exchange (ICEX)
Your Society holds 5% equity in the Indian Commodity
Exchange (ICEX) which is a screen based national level
multi commodity exchange. ICEX is jointly promoted by
India Bulls Financial Services Ltd and MMTC Limited; Indian Potash Ltd., KRIBHCO and IDFC, as partners.
Rural association of Your Society has witnessed a
paradigm shift in farmers recognizing and associating with KRIBHCO since its inception. Most of the genres of products
are identified with KRIBHCO. Effective communication and
brand promotion strategies envisaged by the Society had
led to creation of high brand recall. Society has been successful in positioning itself as a superior and quality
premium product supplier in whatever commodity the
Society had dealt with. Therefore in farmers mind the
Society’s name is synonymous to trust and promise of high
performance product. Special emphasis has been laid on
improving visibility of brand KRIBHCO. Production and
14. PUBLICITY AND PUBLIC RELATIONS
16. SERVICES TO FARMERS, COOPERATIVES AND
RURAL DEVELOPMENT
Sustainable rural development through effective farm
services has been a focus area for the Society. Your Society
continued its efforts towards transfer of latest farm
technology to the farming community and has undertaken rural welfare schemes for improving their livelihood. The
Society organized over 3975 programmes such as Farmers
Meetings, Kisan Melas, Field Demonstrations, Field Days,
Sh. Srikant Jena Hon'ble Minister of State for Chemicals & Fertilizers visited the Medical Camp organized by KRIBHCO
1723
GVT has promoted and established a company -
KRISHCO Gramin Vikas Sanstha (KGVS) under section 25 of
the Companies Act, 1956 which was incorporated on 8th
January, 2013. KGVS would manage the projects on
marketing of handicraft, Fresh Fruits and Vegetables (FFV),
e-Governance activities including Rashtriya Swasthya Bima
Yojna (RSBY), Social Entrepreneurship Initiatives (SEI) and other
Income Generating Activities (IGAs) .
18. GRAMIN VIKAS TRUST (GVT)
Gramin Vikas Trust (GVT), a non-profit entity, promoted and supported by KRIBHCO, has been working for the upliftment of the marginalized rural community and is operating in 8 States. GVT started four Construction Skill Training Institutes in Jharkhand, Bihar, Chhattisgarh and Odisha in collaboration with knowledge and industry partners. Skill development projects were awarded to GVT in the states of Rajasthan and Haryana for training and placement of BPL youths. Market linkage program has been initiated in Shajahanpur for horticulturist in the area.
Twenty three Wasteland Agriculture Development Initiative (WADI) funded by NABARD is underway under the aegis of GVT as an alternate income generation source for the household.
GVT has been empanelled by Ministry of Panchayati Raj as the National Level Field Investigator to carry out National Level Field Verification of Panchayats at three levels. During the year, GVT was awarded the assignment to carry out the verification of 17 Panchayats in the state of Bihar and Jharkhand.
An electronic monthly journal named as “Back – to – Roots” was initiated by GVT .A Pilot Project on Drinking Water Security covering 85 villages, spread over 52 Gram Panchayats of Piploda block in Ratlam district was envisaged by GVT and NLRI. GVT is also involved in Biometric enabled enrolment Project for Rashtriya Swasthya Bima Yojna (RSBY) in Purnea, Bihar
19. HUMAN RESOURCE DEVELOPMENT
Your Society continuously thrives to develop human capital and engage best human resource development practices prevalent in the industry. HRD has organized and conducted a total of 43 Training Programs for development of over 600 employees. Training programs on employee health, safety and security of women, stress management, personality development, and aging workforce were imparted to the employees for overall development and increased efficiency. Senior officials were sent on foreign tours to attend global meetings and represent Your Society on those forums. Functional training of employees in different field was imparted to improve understanding and efficiency.
HRD also played an important role in educating employees regarding changes being introduced through planned interventions like SAP and New Performance Management System (PMS). Employees working on new system are given functional training for the same. The new KRIBHCO Performance Management System has been developed in an online format. The beneficiaries harvested vegetables under WADI
programme of Gramin Vikas Trust
Sh. N. Sambasiva Rao Marketing Director, KRIBHCO presenting paper in FAI Annual Seminar at Agra
1622
Cooperative Conference and Group Discussion etc.
benefiting 4.77 lakh farmers and cooperative officials
across the nation. The Society also made available 6.67 lakh
technical folders on various crops to farmers and
cooperatives as back-up knowledge.
‘KRIBHCO Krishi Pramarsh Kendra’ continues to provide
free consultancy on farm-related issues, propagated
efficient and balanced use of fertilizer by testing 2254 soil
samples for micro-nutrients, 2639 samples for macro-
nutrients collected from 15 states. The Kendra was visited
by 961 farmers. The State Directors of Agriculture across the
nation were apprised about educational programmes
conducted and district-wise deficiency noticed in soil samples tested from their states. During the year, KRIBHCO Krishi Pramarsh Kendra, NOIDA, was visited by many
dignitaries, who appreciated the services provided by Your
Society to farmers and cooperatives.
For inclusive development of cooperatives, the Society adopted 61 cooperative societies, trained 22345 cooperative managers through 148 cooperative conferences. The Society also organized 95 health campaigns for human, livestock, 8 rural sports programmes and 43 Income generation programmes for integrated rural development.
Your Society has been constantly working towards bringing equality and gender equity among various sections of the community. Accordingly, it has been undertaking extensive community developmental activities throughout the country and at Plant site, targeting the rural populace especially the under privileged sections including tribal etc. Storage-cum-community centre scheme started on the occasion of Golden Jubilee of India’s Independence is still being continued and so far 157 centres have been completed and are in full use.
17. COMMUNITY DEVELOPMENT
Sh. B. D. Sinha Managing Director KRIBHCO addressing the Cooperators in State Consultative Committee Meeting at Somnath (Gujarat)
A view of Storage-cum-Community Centre
By using Information Communication Technology (ICT), Your Society communicates the soil profile results along with the recommendations to the farmers at their
door-steps through e-mails, besides using the KRIBHCO
website for display of results. The ‘Pramarsh Kendra’ as well as “KRIBHCO Kisan Helpline” continued to provide latest weather information to farmers enabling them to plan farm
operations and mid-term corrections in case of crop
failures. ‘KRIBHCO Kisan Helpline’ is also used for follow-up
with farmers for adopting soil testing results and other
farm-related services.
Field Day organized on Bt Cotton in Karnataka
Ladies participating in Navratri Festival celebrated at Hazira Township
1624
National Productivity Week was celebrated in a week long activity and competitions. HRD forum has been formed by which knowledge, information on different topics/themes is sent to all employees by HRD through daily e-mail. Emphasis on Strategic Human resource, Human resource development forum and feedback mechanism was also emphasized during the Financial Year.
During the year, Employees’ Relations in the Society remained cordial and peaceful. An atmosphere of mutual trust, confidence and goodwill prevailed between the Management and the employees represented by their Unions and Associations. Traditionally, Management maintained an open-door policy with fair and transparent approach while dealing with the employees, their Unions and Associations. As a result, not a single man-day was lost during the year due to Industrial Relations Problems.
The Management of the Society considers its employees as a valuable asset and assigns paramount importance to Employees Relations. Continuous and untiring efforts towards maintaining cordial and harmonious inter-personal relations has been the key factor in achieving all round better performance of the Society
20. INDUSTRIAL RELATIONS
21. INFORMATION TECHNOLOGY
Your Society has implemented SAP Enterprise Resource Planning (ERP), which had gone live w.e.f. 1st
April, 2012 and annual closing of accounts of the Financial
Year 2012-13 was completed through SAP itself.
The modules of SAP ERP have successfully been used in
order to do core business processes of Production,
Maintenance, Quality, Materials, Sales and Distribution,
Finance and Controlling, HCM and Payroll. Employee Self
Service (ESS) Portal have been used by employees across
the organization for their leave, claims, attendance
purposes, tour and travel requests, medical etc. Working on
ERP modules has resulted in improved efficiency of
employees. Development of interface software using
mobility solutions to link field officials is underway and
expected to be completed in 2013.
A state of the art Data-Centre has been built in at the
Corporate Office, NOIDA, to monitor and manage Servers
installed and SAP Application on round the clock basis. The ERP and other Information Technology tools used by the society has resulted in appreciable advantage in improving the vibrant
business process and Management Information System.
22. PROGRESSIVE USE OF HINDI
Your Society is always committed towards
implementation of Hindi in official work and mode of communication with an array of dedicated team to implement Official Language Policy. An Official Language
Implementation Committee (OLIC) has been constituted at
Corporate Office.
Sh. B.D. Sinha Managing Director KRIBHCO alongwith senior officials participated in Hindi Essay Writing competition during
Hindi Pakhwara
1725
A designated official is in place for promoting use of
Hindi. Workshops at Munnar and Udaipur were organized
to give impetus to use of Hindi among officials in Southern
and Northern part of the country. Incentive scheme and
group trophy was initiated to acknowledge personal and
departmental competency to communicate in Hindi.
Three officials were nominated in all India officials
training camp and conference organized by “Bhartiya
Bhasha Sanskriti Kendra” at Guwahati (Assam). Promotion
for use of Hindi was given by organizing Hindi Pakhwara,
Hindi Week, Hindi Day and competitions to inculcate
belongingness of employees with the language. Four Hindi
Workshops were organized in corporate office. Kavi Sammelans, cultural programmes and Hindi Plays were also organized frequently to generate interest in Hindi.
24. CELEBRATION OF INTERNATIONAL YEAR OF
COOPERATIVES- 2012 (IYC 2012)
Considering the importance of the role played by
cooperatives in improving the lives of people around the
world, the United Nations (UN) had declared the year 2012
as International Year of Cooperatives (IYC 2012).
The main purpose of celebrating the International Year of
Cooperatives was to provide the cooperatives with an
opportunity to draw the attention of Governments, the
business community and most importantly, the general
public on the advantages provided by the co-operative
model. The theme of IYC was ‘Cooperative Enterprises Build
a Better World’ and its objectives were to increase public
awareness about cooperatives, promote formation and
growth of co-operatives and to encourage governments to
establish policies, laws and regulations for formation,
growth and stability of co-operatives.
Keeping in view the theme and objectives of IYC 2012
and to increase the visibility, many programmes like
Cooperative Conferences, Group Discussions, Farmers
Meetings, Study Visits, Poster Painting Competition for
Children, Cooperative Quiz competition for Employees,
Essay competition,training in cooperative management,
visit to vibrant cooperatives etc. were organized by Society.
KRIBHCO Sahkarita Shiromani Award was presented to Smt. Leeladevi R. Prasad ndfrom Karnataka in 32 AGM by Shri Chandra Pal Singh Vice. Chairman KRIBHCO
KRIBHCO Vibhushan Award was Presented to Sh. Vitthalbhai H. Radadiya ndfrom Gujarat in 32 AGM by Shri V.R. Patel Chairman KRIBHCO
23. KRIBHCO SAHAKARITA AWARDS
KRIBHCO Sahakarita Awards for the year 2011-12 were ndpresented to two eminent cooperators in 32 AGM of
society held on September 20, 2012. “KRIBHCO Sahakarita
Shiromani Award” was conferred on Smt. LeeladeviR. Prasad from Karnataka and “KRIBHCO Sahakarita
Vibhushan Award” on Shri Vitthalbhai H. Radadiya, from
Gujarat for their dedicated efforts for development of the
Cooperative Movement.
Sh. Jagadish Shettar Hon'ble Chief Minister of KarnatakaInaugurating the Zonal Cooperative Conference at Bengaluru
1626
25. AWARDS/HONOURS
The Society efforts in various field, were recognized by awards/ honours during the year as under:
• Vishwakarma Rashtriya Puraskar (VRP) and National
Safety Award (NSA) was awarded to Hazira Ammonia
Extension Plant (HAEP) for the performance year 2010
in a function held at Vigyan Bhavan on 17th September, 2012.
• Won Runner Up award on the Video Film “Dharti ka Amrut” by the Fertilizer Association of India (FAI).
• Won Shri Ram Award for best article in Marketing titled
“Strategic Marketing of Bio-fertilizers” published in the
September Issue of Indian Journal of Fertilizers by the
Fertilizer Association of India (FAI).
• Won “Certificate of Merit” under All India Best
Cooperative Journal Award 2012 by National
Cooperative Union of India, New Delhi for the In-house
Journal “KRIBHCO NEWS”.
• Won Special Award on “Production, Promotion and
Marketing of bio-fertilizers” by the Fertilizer
Association of India.
• Honoured with “Letter of Appreciation” from the
Directorate of Industrial Safety and Health,
Government of Gujarat State for the commendable service rendered during the fire incidence in the hydrocarbon storage installation of Indian Oil
Corporation Limited at Hazira.
• Ministry of Agriculture Pavilion won the Gold Medal at
the India International trade fair 2012. KRIBHCO’s Stall
was part of this pavilion.
Sh. Srikant Jena Hon'ble Minister of State for Chemicals & Fertilizerspresenting FAI Special Award on “Production, Promotion and
Marketing of Bio-Ferilizers” to KRIBHCO
Sh. R.K. Aggarwal Operations Director alongwith the team receiving 'Shram Award' from Government of Gujarat
A Zonal Cooperative Conference was organized at
Bengaluru which was inaugurated by Hon’ble Chief Minister of Karnataka and attended by different Ministers of the State, Senior Government Officials, Board of
Directors of KRIBHCO and Cooperators. In addition to this,
many district level conferences were also organized at various places like Indore, Dhar, Jalgaon, Rajkot etc. on this occasion.
1727
were organized in which evil consequences of corruption
and ways to prevent it were highlighted.
A Sound governance process consists of a
combination of business practices, which result in
enhancement of shareholder’s value and enable the
Society to fulfill its obligation to all stakeholders,
particularly to the Society at large. The constituent of
corporate governance in the Society are the Board of
Directors, Shareholders and Management.
The Thirty Second Annual General Body Meeting th(AGM) of KRIBHCO was held on 20 September, 2012.
During the course of discussion, the delegates appreciated the commendable performance of the Society, especially in
production and marketing fronts. The delegates also
appreciated the sincere efforts put in by the Society in implementing the suggestions made by them in the last AGM
Seven Meetings of the Board of Directors, Eight Meetings of
the Executive Committee, Two Meetings of the Sub
Committee on Marketing and Three Meetings of the Audit Committee were held during the year. The observations / recommendations of the members are taken into account
while formulating the future strategies and planning of the
Society.
M/s G.S.Mathur and Co, M/s S.K. Mehta and Co. and
M/s G.K. Choksi and Co.,Chartered Accountants, who are Statutory Auditors of the Society, hold office until the conclusion of the ensuing Annual general meeting. Of the
three auditors, M/s G.S.Mathur and Co. has completed their
term and the remaining two auditors are eligible
for reappointment. The Society proposes to inductM/s Chaturvedi & Co. Chartered Accountants in the vacancy
caused by the retirement of M/s G.S.Mathur and Co.
Members are requested to consider appointing
M/s S.K.Mehta & Co, M/s G.K.Choksi & Co andM/s Chaturvedi & Co. as Joint Statutory Auditors of the
Society for the Financial Year 2013-14.
Your Directors hereby confirm that a) In the
preparation of the annual accounts, the applicable
28. CORPORATE GOVERNANCE
29. AUDITORS
30. DIRECTORS RESPONSIBILITY STATEMENT
• Honoured with “Certificate of Honor” to KRIBHCO stall
at an exhibition organized jointly by National
Cooperative Union of India and Indian Agriculture
Research Institute, Delhi at IARI campus, Pusa,
New Delhi
• FAI Productivity Award for “Crop Productivity
Enhancement Project” for efficient distribution
mechanism in Maharashtra.
26. FINANCIAL RATING
27. VIGILANCE
Your Society’s excellent financials and its core strength
have been recognized by CRISIL by awarding the highest
rating A1+ for accessing short term borrowing and letters
of credit. This rating indicates that the degree of safety
regarding timely payment on the instrument is very strong.
On the long term, CRISIL has rated the Society as AA-/
Stable which means high degree of safety with regards to timely payment of financial obligations. The outlook is indicated as “stable”.
Vigilance is an integral part of the Management Function. Main stress of the management is on transparency
in the organization and accountability in the day to day
functioning and working of the Society. There is a full fledged Vigilance set up being headed by a Chief Vigilance Officer.
Society is committed to bring transparency and
accountability in its day to day functioning by adopting
“preventive vigilance” as its main theme. Surprise and
regular inspections were carried out throughout the year
by the team of Vigilance officers and based on their findings
remedial action was taken by the Management. During
In-house training programmes organized by the Marketing
Division, training on ‘Preventive Vigilance’ were given by
Vigilance officers to sensitize the field staff to encourage
voluntary compliance of rules and procedures in discharge
of their day-to-day official functions.
Besides the above, efforts were also made to sensitize the public about the evil consequences of corruption.
Vigilance Awareness Week was celebrated in all offices of
Society throughout the country between 29th October and3rd November, 2012. During week long celebrations, Group
Discussions, Cooperative Conferences and Workshops
28
accounting standards had been followed along with
proper explanation relating to material departures, if any.
b) Appropriate accounting policies have been selected and
applied consistently, and that the judgment and estimates
made are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Society as of March 31,
2013 and of the profit of the Society for the said period. (c)
Proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance of the Multi State Cooperative Society Act 2002
for safeguarding the assets of the Society and for
preventing and detecting fraud and irregularities (d) The
annual accounts have been prepared on a going concern
basis.
The Society received full support and cooperation from the Ministry of Chemicals and Fertilizers and other
Ministries/Departments concerned of the Government of
India and FICC for which the Society expresses its
gratefulness. Your Society also places on record its gratitude and thanks to Sultanate of Oman and Oman Oil Company SAOC and other Joint Venture Partners.
31. ACKNOWLEDGEMENTS
The Board of Directors also wishes to place on record its
gratitude to those national and international organizations
29
We have audited the accompanying financial the financial statements. The procedures selected statements of KRISHAK BHARATI COOPERATIVE depend on the auditor’s judgment, including the LIMITED (“the Society”), which comprise the Balance assessment of the risks of material misstatement of Sheet as at March 31, 2013, and the Statement of Profit the financial statements, whether due to fraud or and Loss and Cash Flow Statement for the year then error. In making those risk assessments, the auditor ended, and a summary of significant accounting considers internal control relevant to the policies and other explanatory information. preparation and fair presentation of the financial
statements in order to design audit procedures that Management’s Responsibility for the Financial are appropriate in the circumstances. An audit also Statements includes evaluating the appropriateness of
Management is responsible for the preparation of accounting policies used and the reasonableness of
these financial statements that give a true and fair view the accounting estimates made by management, as
of the financial position, financial performance and well as evaluating the overall presentation of the
cash flows of the Society in accordance with the financial statements.
Accounting Standards issued by the Institute of We believe that the audit evidence we have Chartered Accountants of India. This responsibility obtained is sufficient and appropriate to provide a includes the design, implementat ion and basis for our audit opinion.maintenance of internal control relevant to the Opinion preparation and presentation of the financial
statements that give a true and fair view and are free In our opinion and to the best of our information and from material misstatement, whether due to fraud or according to the explanations given to us, the error. financial statements give the required information
and give a true and fair view in conformity with the Auditor’s Responsibility accounting principles generally accepted in India:Our responsibility is to express an opinion on these
(a) in the case of the Balance Sheet, of the financial statements based on our audit. We state of affairs of the Society as at conducted our audit in accordance with the Standards March 31, 2013;on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we (b) in the case of the Statement of Profit comply with ethical requirements and plan and and Loss, of the profit of the Society for perform the audit to obtain reasonable assurance the year ended on that date; andabout whether the financial statements are free from (c) in the case of the Cash Flow Statement, material misstatement. of the cash flows of the Society for the An audit involves performing procedures to obtain year ended on that date.audit evidence about the amounts and disclosures in
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
Report on the Financial Statement
(`in lakh)
Particulars Note As at 31.03.2013 As at 31.03.2012
Shareholders' Funds
Share Capital 2.1 39,023.45 39,023.45
Reserves and Surplus 2.2 274,619.07 253,205.51
313,642.52 292,228.96
Non-current Liabilities
Long-Term Borrowings 2.3 58,465.97 59,750.00
Deferred Tax Liabilities (Net) 2.4 1,875.00 1,850.00
Other Long Term Liabilities 2.5 2,884.63 2,590.24
Long-Term Provisions 2.6 12,468.45 11,505.05
75,694.05 75,695.29
Current Liabilities
Short-Term Borrowings 2.7 100,414.39 65,677.33
Trade Payables 16,410.83 30,576.17
Other Current Liabilities 2.8 36,827.39 23,477.30
Short-Term Provisions 2.9 20,698.02 12,459.59
174,350.63 132,190.39
TOTAL 563,687.20 500,114.64
Non-Current Assets
Fixed Assets
Tangible Assets 2.10 155,165.24 47,372.44
Intangible Assets 2.11 4,574.16 0.08
Capital Work-in-Progress 2.12 26,545.28 119,913.71
Intangible Assets under development 2.13 - 1,452.77
Non-Current Investments 2.14 132,129.23 131,629.23
Long-Term Loans and Advances 2.15 6,405.63 9,280.20
324,819.54 309,648.43
EQUITY AND LIABILITIES
ASSETS
30 31
For G.S. Mathur & Co. For G.K. Choksi & Co. For S.K. Mehta & CoChartered Accountants Chartered Accountants Chartered Accountants
(Firm Regn. No. 008744N) (Firm Regn. No. 101895W) (Firm Regn. No. 000478N)
(Ajay Mathur) (Sandip A. Parikh) (S.K. Mehta)Partner Partner Partner
M.No. 082223 M.No. 040727 M.No. 010870
Place: New DelhiDated: April 26, 2013
Continued....
BALANCE SHEET AS AT MARCH 31, 2013
FINANCIAL STATEMENTS auditor has been forwarded to us, which R e p o r t o n O t h e r Le g a l a n d R e g u l at o r y
Requirements has been relied upon and same has been
We report that: appropriately dealt with by us in (a) We have obtained all the information and preparing this report;
explanations which to the best of our (d) The Balance Sheet, Statement of Profit
knowledge and belief were necessary for and Loss, and Cash Flow Statement the purpose of our audit;dealt with by this Report are in (b) I n our opinion proper books of agreement with the books of accounts account as specified in the Multi - State
Cooperative Societies Rules, 2002 have and;
been kept by the Society so far as appears (e) In our opinion, the Balance Sheet, from our examination of those books and
Statement of Profit and Loss, and Cash proper returns adequate for the purpose
Flow Statement comply with the of our audit has been received from the
Accounting Standards issued by the Branch not visited by us;Institute of Chartered Accountants of (c) The report on the accounts of Sur Branch
at Oman audited by the local branch India.
32 33
(R. Kamra) ( B.D. Sinha) Finance Director Managing Director
As per our report of even date
For G.S. Mathur & Co. For G.K. Choksi & Co. For S.K. Mehta & Co.Chartered Accountants Chartered Accountants Chartered AccountantsFirm Reg. No. 008744N Firm Reg. No.101895W Firm Reg. No. 000478N
(Ajay Mathur) (Sandip A. Parikh) (S.K. Mehta )Partner Partner Partner
M No.082223 M No.040727 M.No.010870
Place : New DelhiDated : April 26, 2013
(`in lakh)
Particulars Note As at 31.03.2013 As at 31.03.2012
Current Assets
Inventories 2.16 28,965.05 23,170.20
Trade Receivables 2.17 185,054.93 115,256.96
Cash and Bank Balances 2.18 10,921.29 35,465.41
Short-Term Loans and Advances 2.19 13,502.39 13,989.42
Other Current Assets 2.20 424.00 2,584.22
238,867.66 190,466.21
TOTAL 563,687.20 500,114.64
Significant Accounting Policies 1
Notes on Accounts 2
Notes referred above form an integral
part of the Balance Sheet
(`in lakh)
Particulars Note Year Ended Year Ended 31.03.2013 31.03.2012
Revenue from Operations 2.21 423,761.59 368,018.75
Other Income 2.22 31,642.51 33,378.53
Total Revenue 455,404.10 401,397.28
Cost of Materials Consumed 2.23 183,444.85 97,510.34
Purchases of Stock in Trade 2.24 125,066.95 204,576.67
Changes in Inventories of Finished
Goods, Stock-in-Process and
Stock-in-Trade 2.25 (720.58) (3,722.24)
Employee Benefits Expense 2.26 28,121.64 23,809.56
Finance Costs 2.27 11,368.37 4,921.42
Depreciation and Amortization Expense 9,338.00 3,332.06
Manufacturing, Administration,
Distribution and Other Expenses 2.28 62,245.00 51,849.04
Prior Period Items (Net) 2.29 51.68 (95.45)
Total Expenses 418,915.91 382,181.40
Profit Before Tax 36,488.19 19,215.88
Current Tax 6,900.00 3,250.00
Earlier Years 7.84 (1,310.37)
Deferred Tax 25.00 (400.00)
6,932.84 1,539.63
Profit for the year 29,555.35 17,676.25
Expenses:
Tax Expense:
Continued....
BALANCE SHEET AS AT MARCH 31, 2013
Continued....
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2013
34 35
(`in lakh)
Particulars Note Year Ended Year Ended 31.03.2013 31.03.2012
Less: Amount Transferred to:
Capital Repatriation Fund 20.62 1.73
20.62 1.73
Net Profit as per the Multi-State
Cooperative Societies Act 2002 29,534.73 17,674.52
Significant Accounting Policies 1
Notes on Accounts 2
Notes referred above form an integral
part of the Statement of Profit and Loss
Continued....
(`in lakh)
Particulars Year Ended Year Ended 31.03.2013 31.03.2012
Net Profit Before Tax 36,488.19 19,215.88
Adjustments for:
Depreciation (including prior period depreciation) 9,337.71 3,237.04
Provision for diminuation in value of inventory 151.51 4.19
Profit/Loss on Sale of Assets (314.36) 7.95
Foreign Exchange Variation 456.55 3,039.99
Net loss on sale of current investments - 531.66
Finance Cost 11,368.37 4,921.42
Interest income (2,293.26) (4,414.06)
Dividend Income (26,368.75) (26,083.11)
Operating Profit before working capital changes 28,825.96 460.96
Movements in working capital:
Increase/(decrease) in trade payables (14,165.35) 9,948.28
Increase/(decrease) in long term provisions 963.40 1,505.54
Increase/(decrease) in short term provisions 4,667.22 884.95
Increase/(decrease) in other current liabilities 5,724.67 (724.78)
Increase/(decrease) in other long term liabilities 294.39 829.42
Decrease/(Increase) in trade receivables (69,797.97) (70,041.65)
Decrease/(Increase) in inventories (5,946.36) (2,550.54)
Decrease/(Increase) in short-term loans and advances 487.02 (8,344.90)
Decrease/(Increase) in long term loans & advances 2,874.57 (997.46)
Cash generated from /(used in) operations (46,072.45) (69,030.18)
Direct Taxes paid (net of refunds) (3,456.58) 177.03
Contribution to Cooperatiive Education Fund (176.75) (200.15)
Donations Paid (46.85) (29.41)
Net cash Flow from/ (used in) operating activities (A) (49,752.63) (69,082.71)
(A) Cash Flow from Operating Activities:
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2013 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2013
Continued....
(R. Kamra) ( B.D. Sinha) Finance Director Managing Director
As per our report of even date
For G.S. Mathur & Co. For G.K. Choksi & Co. For S.K. Mehta & Co.Chartered Accountants Chartered Accountants Chartered AccountantsFirm Reg. No. 008744N Firm Reg. No.101895W Firm Reg. No. 000478N
(Ajay Mathur) (Sandip A. Parikh) (S.K. Mehta )Partner Partner Partner
M No.082223 M No.040727 M.No.010870
Place : New DelhiDated : April 26, 2013
(`in lakh)
Particulars Year Ended Year Ended 31.03.2013 31.03.2012
1. Unclaimed dividend 71.41 16.95
2. Amount held as margin money, Security
against borrowings 284.48 207.00
Deposited as security with Government and
other authorities. 355.89 223.95
2 Cash Flow Statement has been prepared under the indirect method as set out in the AccountingStandard (AS)-3 "Cash Flow Statements" issued by the Institute of Chartered Accountants of India
3 Previous year figures have been regrouped / re- arranged wherever necessary.
36 37
(`in lakh)
Particulars Year Ended Year Ended 31.03.2013 31.03.2012
Purchase of fixed assets (26,975.85) (55,832.67)
Proceed from sale of fixed assets 406.83 169.18
Purchase of non-current investments (500.00) (3,900.00)
Proceeds from sale/maturity of current investments - 7,295.85
Interest received 4,453.48 2,336.06
Dividend received 26,368.75 26,083.11
Net Cash Flow from/(used in) Investing Activities (B) 3,753.21 (23,848.47)
Proceeds from long-term borrowings (Net) 6,579.11 61,977.40
Proceeds from short-term borrowings (net) 34,737.07 39,258.00
Interest Paid (11,640.06) (4,140.50)
Dividends paid on equity shares (7,764.27) (6,919.83)
Foreign Exchange Variation (456.55) (3,039.99)
Net Cash Flow/(used in) in Financing Activities ( C) 21,455.30 87,135.08
Net increase/(decrease) in cash and cash
equivalents (A+B+C) (24,544.12) (5,796.10)
Cash and cash equivalents at the beginning of the year 35,465.41 41,261.51
Cash and cash equivalents at the end of the year 10,921.29 35,465.41
Notes:
1 Cash and Cash Equivalents consists of Cash-in-Hand and Balances with Banks. Cash and cash equivalentincluded in the cash flow statement comprise of following balance sheet amounts as per Note No 2.18
Cash and Cash Equivalents 3,515.40 3,441.46
Demand Deposits included in other balances 7,050.00 31,800.00
Other bank balances(*) 355.89 223.95
Cash and cash equivalent as restated (Note No. 2.18 10,921.29 35,465.41
cash and bank balances)
*Amount which are not available for use towards
(B) Cash Flow from Investing Activities:
(C) Cash Flow from Financing Activities:
Continued....
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2013 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2013
Continued....Continued....
(R. Kamra) ( B.D. Sinha) Finance Director Managing Director
As per our report of even date
For G.S. Mathur & Co. For G.K. Choksi & Co. For S.K. Mehta & Co.Chartered Accountants Chartered Accountants Chartered AccountantsFirm Reg. No. 008744N Firm Reg. No.101895W Firm Reg. No. 000478N
(Ajay Mathur) (Sandip A. Parikh) (S.K. Mehta )Partner Partner Partner
M No.082223 M No.040727 M.No.010870
Place : New DelhiDated : April 26, 2013
38 39
SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2013
1. BASIS OF PREPARATION
The Financial Statements are prepared on accrual basis of accounting under the historical cost
convention on going concern basis in accordance with the Generally Accepted Accounting
Principles in India, applicable Accounting Standards (AS) issued by the Institute of Chartered
Accountants of India and the provisions of Multi State Cooperative Societies Act, 2002.
2. USE OF ESTIMATES
The preparation of financial statements requires estimates and assumptions to be made that
affect the reported amount of assets and liabilities on the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which the results are
known/ materialise.
3. FIXED ASSETS
3.1 Fixed Assets are stated at historical cost less accumulated depreciation/amortisation.
Cost comprises of the purchase price and any attributable cost of bringing the asset to
its working condition for its intended use.
3.2 Assets retired from active use and held for disposal are shown separately under Fixed
Assets at lower of net book value and estimated realizable value.
3.3 Identified machinery spares, which can be used only in connection with an item of
Fixed Asset and whose use is expected to be irregular are capitalized.
3.4 Intangible Assets: An intangible asset is recognised where it is probable that the future
economic benefit attributable to the asset will flow to the Society and the cost of the
asset can be measured reliably. Such assets are stated at cost less accumulated
amortization.
4. IMPAIRMENT OF ASSETS
At each Balance Sheet date a review is made whether indication exists that asset has been
impaired. In case such indication exists, an impairment loss is recognized wherever carrying
amount of an asset exceed its recoverable amount. Recoverable amount is higher of the ‘net
selling price’ of assets and ‘value in use ‘.
5. BORROWING COSTS
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized. All other borrowing costs are recognized as expenses in the period in which they are incurred.
6. INVESTMENTS
6.1 Current investments are valued at lower of cost and fair value determined on an individual assessment basis.
6.2 Long Term investments are carried at cost. Provision for diminution in the value of investments is made to recognize a decline, other than temporary, in the value of such investments.
7 CATALYSTS
Catalysts issued are charged to revenue over their estimated useful life. Value of catalysts yet to be consumed in production process is considered as part of inventories.
8 INVENTORIES
Inventories are valued at lower of cost and net realizable value.
8.1 Cost in respect of various types of inventories is computed as under:
8.1.1 Raw Materials, Packing Materials, Catalysts in stores ,Stores and Spares at weighted average cost.
8.1.2 Stock in Process at direct cost and appropriate portion of overheads
8.1.3 Finished Goods:
Manufactured Urea at Annualised Cost of Production.
8.1.4 Traded Goods
(a) Imported Urea at procurement cost determined on weighted average basis plus direct expenses.
(b) Imported Phosphatic/Potasic Fertilizers at procurement cost determined onweighted average basis plus direct expenses .
(c) Stocks of seeds, Chemicals and Indigenous Phosphatic Fertilisers atprocurement cost.
8.1.5 Spares, which are repaired, either departmentally or through outside agenciesare taken into inventory at a nominal cost of ̀ 1/- each.
Note No.1
40 41
10. DEPRECIATION / AMORTISATION
10.1 Depreciation on Fixed Assets is charged on Straight Line Method as follows –
10.1.1 On the assets added upto March 31, 1991 at the rates derived from the rates
provided for the corresponding assets under the Income Tax Rules in force at
the time of purchase or acquisition of assets.
10.1.2 On the assets added from April 1, 1991, at the rates prescribed under Schedule
XIV to the Companies Act, 1956.
10.1.3 With effect from April 1, 2001, additions to/deductions during the year are
depreciated on pro-rata basis.
10.2 Assets individually costing upto ̀ 5,000/- are fully depreciated in the year of acquisition.
10.3 Leasehold lands and buildings:
10.3.1 Leasehold lands are amortized over the period of lease.
10.3.2 Leasehold buildings and buildings constructed on leasehold lands are fully
depreciated over the period of lease in case period of lease is less than the
useful life derived from the rates as per Schedule XIV of the Companies Act 1956.
10.4 Intangible assets comprising of computer software are amortized on straight line
method over a period of legal right or three years whichever is earlier on pro-rata basis.
10.5 Intangible assets comprising of licence fee relating to production processes are
amortized on straight line method over a useful life of related fixed assets.
11. FOREIGN CURRENCY TRANSACTIONS
11.1 Foreign currency transactions are recorded on initial recognition at the exchange rate
prevailing on the date of the transaction. On settlement of transactions, the realized
gains and losses on foreign exchange transactions are recognized in the Statement of
Profit and Loss.
11.2 Foreign currency monetary items remaining unsettled at the end of the year are
reported at year-end rates. The exchange rate differences arising thereof are
recognized in the Statement of Profit and Loss. Non Monetary items which are carried
at historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction.
8.2 Net Realisable Value is computed as under:
8.2.1 Finished Goods:
Concession price/Import Parity Price (IPP) determined in accordance withnorms of Government of India in respect of manufactured urea .
8.2.2 Traded Goods
(a) Estimated selling price plus subsidy rate notified by Government of India inrespect of imported phosphatic/potassic fertilisers
(b) Estimated selling price plus applicable handling remuneration in respect ofimported OMIFCO Urea.
(c) Estimated selling price in respect of stocks of other products lying atwarehouses/ports.
8.3 The diminution in the value of obsolete, unserviceable, slow moving and surplus storesand spares is ascertained on review and provided for accordingly.
9. REVENUE RECOGNITION
9.1 SALE OF GOODS
Sales are recognized upon the transfer of significant risks and reward of ownership to the customers, evidenced by issue of Lifting certificates/Invoices to customers.
9.2 SUBSIDY/HANDLING REMUNERATION FROM GOVERNMENT
9.2.1 Subsidy on urea and imported phosphatic/potassic fertilisers and handlingremuneration on imported OMIFCO Urea are recognised based on quantity sold.
9.2.2 Freight Subsidy is recognised on quantity despatched from plant/ports in termsof schemes notified by Government of India(GOI).
9.3 OTHER INCOME
9.3.1 Dividend income is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis taking into account amount outstanding and rate applicable.
9.3.2 Interest on delayed payment from customers, Insurance claims, Railway claims for finished goods, Claims receivable on account of dispatch money on shipments, Additional Handling Remuneration, Subsidy on Seed and Bio-Fertilizers, Right of use of land and Difference in service charges receivable from/ payable are recognized when no significant uncertainty exists with regard to the amount to be realized and ultimate collection thereof.
9.3.3 Income from Scrap/ salvage and waste material is recognised when sold.
42 43
11.3 Financial statements of Foreign branch are considered to be integral and are translated
as follows:
11.3.1 Monetary assets and liabilities at rates of exchange prevailing at the end of the
year.
11.3.2 Non-monetary items at exchange rates prevailing on the date of transaction.
11.3.3 Revenue items are accounted for at the exchange rate, which approximates
the rate prevailing as on the date of transaction.
11.3.4 Resultant translation differences arising there from are recognized in the
Statement of Profit and Loss.
11.4 In respect of forward contracts premium or discount arising at the inception of forward
exchange contracts is amortised as an expense or income over the period of the
contract. Forward contracts remaining unsettled at the end of the year are reported at
year end rates. Any profit or loss arising on cancellation or renewal of forward exchange
contracts is recognized as income or expense in the year in which such profit or loss
arises.
12. EMPLOYEE BENEFITS
12.1 Short term Employee Benefits are recognized as an expense on an undiscounted basis
in the Statement of Profit & Loss of the year in which the related service is rendered.
12.2 The Employees’ Group Gratuity Fund Scheme and Provident Fund Scheme are the
Society’s defined benefit plans, which are funded by the Society, and are managed by
separate trusts.
12.2.1 The present value of Society’s obligations under Gratuity Scheme is determined
on the basis of actuarial valuation at the year end and the fair value of plan assets
is reduced from the gross obligation under gratuity scheme, to recognize the
obligation on net basis.
12.2.2 The contribution to Provident Fund and Family Pension Scheme is recognized as
expense and is charged to the Statement of Profit & Loss.
The Society has an obligation to make good the shortfall, if any, between the return
from the investments of Provident Fund Trust and the Notified interest rates. Liability,
on account of such shortfall, if any, is recognized on the basis of actuarial valuation
carried out at the year end.
12.3 The liability for other defined benefit plans such as leave encashment/ compensated
absences, long service award, farewell gift and travel to home town on superannuation
are recognized on the basis of an actuarial valuation made at the end of the year.
12.4 The liability for termination benefits payable in subsequent period to the employees
opted for Voluntary Retirement Scheme is recognised on the basis of an actuarial
valuation made at the end of the year.
12.5 The liability for contribution to Employees Superannuation Pension Scheme and Post
Retirment Assistance Scheme is recognised as expense and charged to Statement of
Profit and Loss.
12.6 Gains and Losses arising out of actuarial valuation are recognized immediately in the
Statement of Profit and Loss.
13. OPERATING LEASES
Assets acquired on leases wherein a significant portion of the risks and rewards of ownership
are retained by the Lessors are classified as ‘Operating Leases’. Lease rentals paid for such
leases are recognised as an expense on straight line basis over the term of lease.
14. TAXATION
14.1 Provision for current income tax is made on the basis of assessable income as per
Income Tax Act, 1961.
14.2 Deferred Tax resulting from “timing differences” between taxable income and
accounting income is determined by using the tax rates and the tax laws that have been
enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Assets are
carried forward to the extent it is reasonably / virtually certain that future taxable profit
will be available against which such Deferred Tax Assets can be realised.
15. PRIOR PERIOD INCOME / EXPENDITURE
Income/Expenditure relating to prior period(s) which does not exceed ̀ 50,000/- in each case
is treated as Income/Expenditure for the Current Year.
16. PREPAID EXPENSES
Expenditure upto ̀ 25,000/- in each case, incurred in advance relating to the following year is
accounted for in the year in which the expenditure is incurred.
Further Notes:
1) Reconciliation of number of shares outstanding and amount of share capital is set out as follows:
Class of Shares As on Issued Repatriated As on01.04.2012 during during the 31.03.2013
the year year
(1) (2) (3) (4) (5)
`1,00,000/- Nos 33,648 18 15 33,651 ( ` One Lakh only) Value `in lakh 33,648.00 18.00 15.00 33,651.00
`25,000/- ( ` Twenty Five Thousand only) Nos 15,587 27 65 15,549
Value ` in lakh 3,896.75 6.75 16.25 3,887.25
`10,000/- Nos 15,870 7 2 15,875 ( `Ten Thousand only) Value ` in lakh 1,587.00 0.70 0.20 1,587.50
Total Value of Fully Paid Up
Shares ` in lakh 39,131.75 25.45 31.45 39,125.75
Previous Year ` in lakh 39,110.80 458.90 437.95 39,131.75
44 45
SHARE CAPITALNote No. 2.1
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Equity Share Capital
44,000 (44,000) Equity Shares of `1,00,000 each 44,000.00 44,000.00
16,000 (16,000) Equity Shares of `25,000 each 4,000.00 4,000.00
20,000 (20,000) Equity Shares of `10,000 each 2,000.00 50,000.00 2,000.00 50,000.00
33,651 (33,648) Equity Shares of `1,00,000 each 33,651.00 33,648.00
15,549 (15,587) Equity Shares of `25,000 each 3,887.25 3,896.75
15,875 (15,870) Equity Shares of `10,000 each 1,587.50 39,125.75 1,587.00 39,131.75
Less: Repatriation of Share Capital 107.68 113.68
Net Paid up capital 39,018.07 39,018.07
Add: Forfeited shares 5.38 5.38
Total 39,023.45 39,023.45
AUTHORISED
ISSUED, SUBSCRIBED AND FULLY PAID-UP
17. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
17.1 Provision is recognized when the Society has a present obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the
obligation and in respect of which a reliable estimate can be made. Provisions are
determined based on management estimate required to settle the obligation at the
balance sheet date and are not discounted to present value.
17.2 Contingent Liabilities are disclosed on the basis of judgment of the management/
independent experts. These are reviewed at each balance sheet date and are adjusted
to reflect the current management estimate.
17.3 Contingent Assets are neither recognized nor disclosed in the financial statements.
2) The Government of India and The Haryana State Cooperative Supply and Marketing Federation Limited are holding 24.99% and 5.07% respectively of the total share capital of the Society( Previous year 24.99% and 5.07% respectively).
3) As per provisions of the Multi-State Co-operative Societies Act 2002 and Bye-Laws of the Society, every member has a single voting right irrespective of the number/value of share capital held. The holders of the equity shares are entitled to receive dividends as declared from time to time in proportion to their shareholding.
4) Aggregate amount of capital repatriated as per Bye-Laws of the Society during the last five years is ̀ 17,526.58 lakh (Previous year ̀ 17,504.83 lakh).
5) The Society has been repatriating its equity in terms of Section 35 of the Multi State Cooperative Societies Act, 2002 read with amended Bye Law No. 8(a) of KRIBHCO to the Government of India. As on March 31, 2013, cheques worth ̀ 9140 lakh (Previous Year ̀ 9140 lakh) towards repatriation of share capital have not been encashed by Government of India and the amount is lying unutilised in the bank accounts of the Society.
46 47
Continued....
Continued....
Note No. 2.2 RESERVES AND SURPLUS
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012(e) Share Repatriated Reserve
As per last Balance Sheet 589.62 589.62
(f) General Reserve
As per last Balance Sheet 127,572.92 124,101.77
Add : Transfer from Surplus Account 11,059.50 3,470.31
Add : Transfer from Reserve for Donation 7.40 0.84
Less : Deductions/Adjustments during the year - 138,639.82 - 1 27,572.92
(g) Dividend Equalisation Fund
As per last Balance Sheet 10,293.78 10,293.78
(h) Cooperative Development Fund
As per last Balance Sheet 43.78 39.41
Add : Transfer from Unclaimed Dividend 3.28 4.43
Add : Transfer from Reserve for
Donations (unutilised) - -
Less : Payment for Cooperative Development
during the year - -
Less : Payment of Unclaimed Dividends
during the year 0.14 46.92 0.06 43.78
(i) Surplus (Balance in Statement of
Profit and Loss)
Opening Balance - -
Add: Net Profit as per the Multi-State
Cooperative Societies Act, 2002 29,534.73 17,674.52
Amount Available for Appropriations: 29,534.73 17,674.52
Less: Appropriations:
(i) Reserve Fund as per Bye-Law 58(i)
of the Society 7,383.67 4,418.63
(ii) Provision for Contribution to
Cooperative Education Fund 295.35 176.75
(iii) Reserve Fund for Contingency as
per Bye- Law 58 (iii)
of the Society 2,953.48 1,767.45
(iv) Reserve for Donations 40.00 40.00
(v) Proposed Dividend 7,802.73 7,801.38
(vi) General Reserve 11,059.50 29,534.73 - 3,470.31 17,674.52 -
Total 274,619.07 253,205.51
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
(a) Reserve Fund (As per Bye-Law 58(i)
of the Society)
As per last Balance Sheet 97,673.68 93,255.05
Add : Transfer from Surplus Account 7,383.67 4,418.63
Less : Deductions/Adjustments during the year - 105,057.35 - 97,673.68
(b) Reserve Fund for Contingency
(As per Bye-Law 58(iii) of the Society)
As per last Balance Sheet 16,779.65 15,012.20
Add : Transfer from Surplus Account 2,953.48 1,767.45
Less : Deductions/Adjustments during the year - 19,733.13 - 16,779.65
(c) Reserve for Donations
As per last Balance Sheet 70.00 60.25
Add : Transfer from Surplus Account 40.00 40.00
Less : Payments during the year 46.85 29.41
Less : Transfer to General Reserve during the year 7.40 55.75 0.84 70.00
(d) Capital Repatriation Fund
As per last Balance Sheet 182.08 180.35
Add : Transfer from Statement of Profit and Loss 20.62 1.73
Less: Transfer to Share Repatriated Reserve - 202.70 - 182.08
RESERVES AND SURPLUSNote No. 2.2
48 49
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Term LoansFrom BanksSecured
Rupee Loan 58,465.97 59,750.00
TOTAL 58,465.97 59,750.00
(1) Details of Security and Terms of Repayments
Current Non Current Current Non Current
Loan of ` 36,000.00 lakh (Previous Year ` 40,000.00 lakh) 8,000.00 28,000.00 4,000.00 36,000.00
is secured by way of pari passu charge on the existing
fixed assets of the Society at its Hazira Plant payable in
20 equal quarterly installments from December 2012.
Loan of ` 25,500.00 lakh (Previous Year ` 25,000.00 lakh) 5,100.00 20,400.00 1,250.00 23,750.00
is secured by way of pari passu charge on the existing
fixed assets of the Society at its Hazira Plant payable in
20 equal quarterly installments from June 2013.
Loan of ` 10,000.00 lakh (Previous Year ` Nil ) is secured - 10,000.00 - -
by way of charge on the fixed assets of captive power
plant under construction of the Society at its
Hazira Plant payable in 20 equal quarterly installments
after gestation period of one year from the commercial
date of operation.
Loan of ` 79.88 lakh (Previous Year ` Nil) is secured 13.14 65.97 - -
against pledge of Fixed Deposit Receipt of ` 80.84 lakh
(Previous year ` Nil).
Total 13,113.14 58,465.97 5,250.00 59,750.00
LONG TERM BORROWINGS DEFERRED TAX LIABILITIES (NET) ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Defered Tax LiabilityDifference of book depreciation and tax depreciation/Allowance (A) 40,883.50 6,586.91 Deferred Tax Assets
Provision for Employees benefits allowable on payment basis 5,330.94 4,109.65 Provision for Doubtful Debts and Advances 113.57 113.57 Provision of Other Expenses allowable on payment basis 397.25 513.69 Unabsorbed losses as per Income Tax Act 33,119.92 - Others 46.82 - Total Deferred Tax Assets (B) 39,008.50 4,736.91
Deferred Tax Liability (Net) (A-B) 1,875.00 1850.00
Further Notes:During the year net increase in deferred tax liability of ̀ 25 lakh is being recognised in the Statement of Profit & Loss (Previous Year credit ̀ 400 lakh).
OTHER LONG TERM LIABILITIES ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Retention/Security Deposits 2,400.83 2,364.82 Income Received in Advance 483.80 225.42 Total 2,884.63 2,590.24
LONG TERM PROVISIONS ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Employee Benefits 12,468.45 11,505.05
Total 12,468.45 11,505.05
Note No. 2.3 Note No. 2.4
Note No. 2.5
Note No. 2.6
SHORT TERM PROVISIONS
50 51
SHORT TERM BORROWINGS ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Short Term LoansFrom Banks:SecuredRupee Loans 51,829.56 - UnsecuredRupee Loans 48,584.83 17,516.88 Foreign Currency Loans - 48,160.45 TOTAL 100,414.39 65,677.33
Further Notes:Details of Security for Secured Loans1 ` 7,953.96 lakh (Previous year ` Nil) is Secured by hypothecation of subsidy receiveable from
Government of India and the same will be directly repayable by GOI to the lender on release of subsidy.
2 ` 43,875.60 lakh (Previous year ̀ Nil) is Secured by first parri-passu charge on the all current assets of the Society.
OTHER CURRENT LIABILITIES ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Current maturities of long term debts 13,113.14 5,250.00 Interest accrued but not due on borrowings 624.58 896.27 Income received in advance 8,009.72 2,982.82 Unpaid Dividends* 87.56 50.32 Advances from customers and others 2,178.99 1,960.14 Deposits from contractors and others 1,114.22 1,394.59 Other Payables
Statutory Dues 1,474.22 1,282.37 Employees Dues 110.08 1,879.91 For Capital Goods: 10,114.88 7,439.58 Others - 341.30
TOTAL 36,827.39 23,477.30 Further Notes:1 *Unpaid Dividends represents the amounts which have not been claimed by the investors/ shareholders.
FIXED ASSETS-TANGIBLE ASSETS
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Employee Benefits 7,254.16 2,586.94 OthersIncome Tax (Net of advance tax) 5,345.78 1,894.52 Proposed dividend 7,802.73 7,801.38 Cooperative Education Fund 295.35 176.75 Total 20,698.02 12,459.59
Note No. 2.7
Note No. 2.8
Note No. 2.9
Note No. 2.10
( ` in lakh) PARTICULARS Gross Block Depreciation/ Amortisation Net Block
As at Ded/ As at Upto For the Ded on Ded/ Upto As at As at01.04.12 Additions Sales Adj 31.03.13 31.03.12 year Sales Adj 31.03.13 31.03.13 31.03.12
LAND
Freehold 3,590.00 - 0.77 - 3,589.23 - - - - - 3,589.23 3,590.00
Leasehold 1,654.72 7.59 - - 1,662.31 243.38 49.44 - - 292.82 1,369.49 1,411.34
Sub-Total 5,244.72 7.59 0.77 - 5,251.54 243.38 49.44 - - 292.82 4,958.72 5,001.34
BUILDING
Free Hold 12,633.19 1,700.29 - 1,161.90 13,171.58 5,620.48 302.37 - 84.80 5,838.05 7,333.53 7,012.71
Leasehold 658.46 - - (1,221.87) 1,880.33 40.44 63.86 - (148.09) 252.39 1,627.94 618.02
Sub-Total 13,291.65 1,700.29 - (59.97) 15,051.91 5,660.92 366.23 - (63.29) 6,090.44 8,961.47 7,630.73
ROADS, CULVERTS & DRAINS 3,465.01 197.32 - (9.01) 3,671.34 625.54 60.72 - (5.67) 691.93 2,979.41 2,839.47
Sub-Total 3,465.01 197.32 - (9.01) 3,671.34 625.54 60.72 - (5.67) 691.93 2,979.41 2,839.47
PLANT & EQUIPMENTS 100,197.84 113,242.33 115.83 (54.55) 213,378.89 72,807.19 7,581.82 103.64 (94.75) 80,380.12 132,998.77 27,390.65
ROLLING STOCK 4,599.43 - - - 4,599.43 3,659.93 185.93 - (0.05) 3,845.91 753.52 939.50
RAILWAY SIDING 3,271.38 504.97 125.28 - 3,651.07 1,970.67 81.32 125.28 0.27 1,926.44 1,724.63 1,300.71
FURNITURE & FIXTURES 1,323.36 99.10 7.06 (1.53) 1,416.93 942.78 57.45 2.66 (1.55) 999.12 417.81 380.58
VEHICLES 908.50 45.97 85.01 19.18 850.28 260.04 76.72 49.23 - 287.53 562.75 648.46
OFFICE EQUIPMENTS 2,874.83 457.16 62.18 79.32 3,190.49 2,109.26 205.01 51.66 73.75 2,188.86 1,001.63 765.57
OTHERS 901.75 334.06 6.96 54.90 1,173.95 426.32 39.18 3.02 95.06 367.42 806.53 475.43
Sub-Total 114,077.09 114,683.59 402.32 97.32 228,261.04 82,176.19 8,227.43 335.49 72.73 89,995.40 138,265.64 31,900.90
Total 136,078.47 116,588.79 403.09 28.34 252,235.83 88,706.03 8,703.82 335.49 3.77 97,070.59 155,165.24 47,372.44
Previous Year Total 136,635.03 6,713.51 129.39 7,140.68 136,078.47 92,566.13 3,327.87 78.24 7,109.73 88,706.03 47,372.44 44,068.90
Further Notes:
1. Pending resolution of dispute with original owners of land, KRIBHCO has not received compensation from NHAI towards compulsory acquisiton of land for1542 sqmts amounting ̀ 40.94 Lakhs (Book Value ̀ 0.77 lakh). The same will be recognized in the books in the year of settlement of dispute.
52 53
Continued....
Continued....
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
UnquotedSubsidiary Companies 15,50,00,000 (15,00,00,000) Equity shares of `10/- each, of Kribhco Infrastructure Ltd. 15,500.00 15,000.00 68,00,34,286 (68,00,34,286) Equity Share of `10/- each, of Kribhco Shyam Fertilizers Ltd. 72,028.77 72,028.77
87,528.77 87,028.77 Joint Venture Companies
2,67,57,500 (2,67,57,500) Shares of OMANI RO 1/- each, of Oman India Fertiliser Company, SAOC . 32,853.46 32,853.46 9,71,95,453 (9,71,95,453) Equity Shares of `10/- each, of Gujarat State Energy Generation Ltd. 10,204.00 10,204.00 1,80,002 (1,80,002) Equity Shares of `10/- each, of Urvarak Videsh Ltd. 18.00 18.00
43,075.46 43,075.46 Others
1,10,00,000 (1,10,00,000) Equity Shares of `1/- each, of Nagarjuna Fertilizers and Chemicals Ltd. 523.81 523.81 1,00,00,000 (1,00,00,000) Equity Shares of ` 5/- each, of Indian Commodity Exchange Ltd. 500.00 500.00 80 (80) Equity Shares of ` 25,000/- each, of National Agricultural Cooperative Marketing Federation of India Ltd. 20.00 20.00 50 (50) Equity Shares of ` 10,000/- each, of Cooperative Bank of India Ltd. 5.00 5.00
1,048.81 1,048.81 Total 132,129.23 131,629.23
Further Notes:1 (i) Aggregate amount of quoted investments 476.19 476.19
(ii) Market value of quoted investments 304.00 635.00 (iii) Aggregate amount of un-quoted investments 131,653.04 131,153.04
2 In terms of the the Joint Venture Agreement (JVA) between the Society and Shyam Basic Infrastructure Projects Private Limited (SBIPPL) which have assigned their rights to STL Fertilizers Private Limited (STL), the Society had irrevocably committed to Exit Option under which the ‘Put Option’ shall be exercised by STL or its lenders any time up to March 31, 2014. The Society has following commitment on account of exit option to STL any time up to March 31, 2014: (i) On `10,502.00 lakh (10,50,19,998 number of equity shares of KSFL) (Previous Year ` 10,502.00 lakh , 10,50,19,998 number of
equity shares of KSFL) with a return of 7% p.a.at simple rate of interest from the dates of investments (Nov/Dec 2005). (ii) On ̀ 1,500.29 lakh (1,50,02,857 number of equity shares of KSFL) (Previous Year ̀ 1,500.29 lakh , 1,50,02,857 number of equity
shares of KSFL), at par, with no return.3 Investments have been valued as per Accounting Policy No. 6 disclosed in Note No. 1 to the financial statements. 4 Figures in brackets relates to previous year.
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Long Term and TradeEquity Instruments (Fully paid up unless otherwise stated)Quoted
1,00,00,000 (1,00,00,000) Equity Shares of `1/- each of Nagarjuna Oil Refinery Ltd. (Market value ` 304 lakh (Previous year ` 635 lakh )). 476.19 476.19
NON CURRENT INVESTMENTS
Note No. 2.14
NON CURRENT INVESTMENTSNote No. 2.14
FIXED ASSETS -CAPITAL WORK-IN-PROGRESS ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Civil Construction(a) Office & Factory 184.82 707.71 (b) Roads, Culverts and Drainages - 177.58 Plant & Equipments 588.91 113.71 Railway Sidings - 69.25 Revamp
Urea/Ammonia Plant - 114,996.94 Power Plant 25,615.61 3,583.39 Others 155.94 265.13 Total 26,545.28 119,913.71
Note No. 2.12
FIXED ASSETS -INTANGIBLE ASSETS UNDER DEVELOPMENT ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
ERP Software - 1,452.77 Total _ 1,452.77
Note No. 2.13
( ` in lakh) PARTICULARS Gross Block Amortisation Net Block
As at Ded/ As at Upto For the Ded on Ded/ Upto As at As at01.04.12 Additions Sales Adj 31.03.13 31.03.12 year Sales Adj 31.03.13 31.03.13 31.03.12
Computer Software 14.11 1,363.44 - (3.40) 1,380.95 14.03 454.55 - (3.41) 471.99 908.96 0.08
Licence Fee - 3,844.83 3,844.83 - 179.63 179.63 3,665.20 -
Total 14.11 5,208.27 - (3.40) 5,225.78 14.03 634.18 - (3.41) 651.62 4,574.16 0.08
Previous Year's Total 14.22 - - 0.11 14.11 9.95 4.19 0.11 14.03 0.08 4.27
FIXED ASSETS-INTANGIBLE ASSETS
Note No. 2.11
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012Debts outstanding for a period exceeding six months
Claims Due from Government of India 183.48 - Others -Considered Good 177.66 174.10 -Considered doubtful 360.00 721.14 360.00 534.10
Other debts Claims Due from Government of India 153,262.79 80,919.24 Others 31,431.00 184,693.79 34,163.62 115,082.86
185,414.93 115,616.96 Less: Provision for bad & doubtful debts* 360.00 360.00 Total 185,054.93 115,256.96 * Details of Provision for bad & doubtful debts Debts outstanding for a period exceeding six months 360.00 360.00
360.00 360.00
TRADE RECEIVABLE(Unsecured considered good, unless otherwise stated)
54 55
INVENTORIES(As taken, valued and certified by the Management)
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Stock-in-Process 54.85 91.56 Finished Goods -Manufactured 4,791.58 2,528.48 Traded Products 5,956.93 7,462.73 Stores and Spares 14,271.41 9,045.84 Loose Tools 23.61 21.99 Packing Materials 923.09 1,465.50 Fuel 236.56 1,316.00 Chemicals and Catalysts 4,394.82 2,575.88 Construction Materials 13.60 212.11
30,666.45 24,720.09 Less:Provision for obsolete, Surplus and Non-Moving Stores 1,701.40 1,549.89 Total 28,965.05 23,170.20 Further Notes:1 Inventories include Material in Transit and Inspection
Finished Goods-Manufactured 672.85 1,066.39 Traded Products 563.21 2,271.72 Stores and Spares 49.14 36.94
1,285.20 3,375.05
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Capital Advances 988.60 3,568.42Security Deposits 29.19 90.87Loans:Employees (including interest accrued)
Secured 5,317.87 5,437.84Un-Secured 67.47 5,385.34 180.07 5,617.91
Others 2.50 3.00Total 6,405.63 9,280.20
LONG TERM LOANS AND ADVANCES(Unsecured Considered good, unless otherwise stated)
Continued....
Continued....
INVENTORIESNote No. 2.15
Note No. 2.16
Note No. 2.16
Note No. 2.17
2 Inventory items have been valued considering the significant accounting policy (Point no.8)disclosed in Note no. 1 of financial statements.
3 Break up of Inventories ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012i) Stock in Process
Ammonia 54.85 91.56 Total 54.85 91.56
ii) Finished Goods-ManufacturedAmmonia 393.93 677.66 Urea 4,367.16 1,814.28 Argon 11.88 10.61 Bio-Fertilisers 11.14 23.94 Others 7.47 1.99 Total 4,791.58 2,528.48
iii) Traded ProductsOMIFCO Urea 4,169.65 6,107.57 Imported DAP 19.96 - Seeds 1,286.34 1,304.79 Others 480.98 50.37 Total 5,956.93 7,462.73
56 57
Continued....
Continued....
( ` in lakh)Particulars As at 31.03.2013 As at 31.03.2012
LOANSEmployees (including interest accrued)
Secured 1,003.53 993.40Un-Secured 45.77 87.32
Related Parties 250.00 - Sub Total 1,299.30 1,080.72
( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Cash and Cash Equivalents- Balances with banks- Current/Cash Credit Accounts 1,791.00 1,391.27 - Fixed Deposits with original
maturity upto three monthswith Cooperative Banks - 100.00
- Remittances-in-transit - 1,561.91 - Cheques & drafts on hand 1,717.68 383.27 - Cash in hand 6.72 5.01 Other Bank Balances- Fixed Deposits with original
maturity more than three months- with Scheduled Banks - 12,500.00 - with Cooperative Banks 7,050.00 7,050.00 19,300.00 31,800.00 - Others* 355.89 223.95 Total 10,921.29 35,465.41
Further Notes:*Not available for use and includes- Unpaid/Unclaimed dividend
account balance 71.41 16.95 - Amount held as margin money, Security
against borrowings and Other Commitments 284.48 207.00
CASH & BANK BALANCES
( ` in lakh)Particulars As at 31.03.2013 As at 31.03.2012
ADVANCESEmployees 210.54 198.59Contractors & Suppliers, including material issued on loan 3,107.02 2,482.04Balance with Revenue Authorities 7,566.74 6,983.29Others
Considered Good 1,318.79 3,244.78Considered Doubtful 7.54 1,326.33 7.54 3,252.32
12,210.63 12,916.24 Less: Provision for bad & doubtful advances 7.54 7.54
Sub Total 12,203.09 12,908.70 Total 13,502.39 13,989.42
(i) Refer Note No. 2.36 for breakup of balance outstanding with the related parties.
( ` in lakh)Particulars As at 31.03.2013 As at 31.03.2012
Interest Accrued but not due:Term Deposits 424.00 2,584.22 Total 424.00 2,584.22
OTHER CURRENT ASSETS
REVENUE FROM OPERATIONS ( ` in lakh)
Particulars As at 31.03.2013 As at 31.03.2012
Sale of Products (Net of Discounts/ Rebates) 217,985.94 210,850.66 Subsidy/Remuneration from Central/State Government 203,107.87 154,834.91 Sale of Services 4,437.87 4,297.32 Other Operating Revenue 681.71 387.45
426,213.39 370,370.34 Less: Excise Duties 2,451.80 2,351.59
423,761.59 368,018.75
Continued....
Note No. 2.18
SHORT TERM LOANS AND ADVANCES(Unsecured considered good, unless otherwise stated)
Note No. 2.19
SHORT TERM LOANS AND ADVANCES(Unsecured considered good, unless otherwise stated)
Note No. 2.19
Note No. 2.20
Note No. 2.21
58 59
Further Notes:1 SUBSIDY FROM GOVERNMENT OF INDIA(a) Subsidy of Nitrogenous fertilisers are under the Concession Scheme and as per Policy of August 2008 for New Investment in Urea
Sector. Pending notification, these have been accounted for keeping in view the practice in the industry, norms, parameters and guidelines fixed/followed by Department of Fertiliser, Government of India (GOI) from time to time. On fixation of such price, necessary adjustments, if any, is made in the accounts for the year in which such price is fixed.
(b) Subsidy on imported phosphatic fertilisers has been accounted for based on the concession rate as notified by GOI under Nutrient Based Subsidy Scheme (NBS).
(c) Freight Subsidy has been accounted for in terms of the schemes notified by GOI.2 Breakup of Sale of Products including Subsidy (Net of Discounts) ( ` in lakh)
Year Ended 31.03.2013 Year Ended31.03.2012Subsidy/ Subsidy/
Concessions/ Concessions/ Sales Remuneration Sales Remuneration
(a) ManufacturedAmmonia 9,567.59 - 12,748.01 - Urea (NFU & FU) * 97,601.39 153,089.12 60,728.30 53,423.00 Bio-Fertilisers 241.73 139.14 286.25 84.45 Argon (NM3) 782.20 - 1,591.96 - Others 1,140.95 - 829.97 - Sub Total 109,333.86 153,228.26 76,184.49 53,507.45
(b) Traded ProductsOMIFCO Urea 45,937.00 17,502.55 53,551.71 19,211.51 Imported DAP 45,432.42 30,361.78 50,574.81 62,260.51 Imported MOP (65.24) 6.04 5,475.02 8,682.56 Imported NPK - 19.74 10,402.61 9,623.79 Indigenous Urea 1,721.16 - 2,014.06 - Seeds 11,746.51 1,887.77 9,602.31 - Others 3,880.23 101.73 3,045.65 1,549.09 Sub Total 108,652.08 49,879.61 134,666.17 101,327.46 Total (a+b) 217,985.94 203,107.87 210,850.66 154,834.91
* Excluding revenue from Trial run operations amounting to ̀ 21,594.85 lakh (Previous Year ̀ 21,116.70 lakh) ( ` in lakh)
Year Ended 31.03.2013 Year Ended31.03.2012
3 Breakup of Sale of ServicesService Charges from HAEP 1,818.41 1,756.08 Urea Sales Fee from OMIFCO 1,665.00 1,781.68 TSA/PSA from OMIFCO 161.31 144.73 Marketing Service Charges from KSFL 386.97 390.15 Leave & License Fee from KRIL 215.42 134.16 Ammonia Filling Charges - 16.41 Deputation Services/Others 153.99 36.03 Lease of Wagons to Railways 36.77 38.08 Total 4,437.87 4,297.32
4 Breakup of Other Operating RevenueRecovery from Employees 93.25 113.83 Despatch Money 104.56 127.33 Claims/Recoveries from contractors 483.90 146.29 Total 681.71 387.45
REVENUE FROM OPERATIONS
Continued....
OTHER INCOME ( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Interest From Non Current Investments-Trade Government Securities - 179.33 From others Loan to employees 206.21 207.95
Indian banks 68.99 1,853.18 Indian Cooperative banks 878.08 1,700.55 Income tax refunds 662.76 428.83 Others 477.22 2,293.26 44.22 4,234.73
Dividend From non current investments-Trade Joint Ventures 26,258.60 25,982.96 Others 110.15 26,368.75 100.15 26,083.11 Other Non-Operating IncomeProfit on disposal/retirement of fixed assets 374.02 151.46 Lease & Equipment hire charges 17.73 32.23 Rentals Income 538.10 252.51 Sale of Scrap and Other items 304.01 139.87 Insurance Claims 308.70 278.12 Penalties & Liquidated damages 1,021.87 1,405.47 Excess Provision Written back/Unclaimed Amount 416.07 621.70 Total 31,642.51 33,378.53
COST OF MATERIAL CONSUMED ( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Raw Materials* 134,972.79 67,799.32 Packing Materials 8,570.40 6,834.66 Chemicals and Catalysts 1,155.76 429.55 Power, Fuel and Water 38,745.90 22,446.81 Total 183,444.85 97,510.34 Further Notes:1 Breakup of Raw Materials
Natural Gas 133,862.22 67,739.80 Others 1,110.57 59.52 Total 134,972.79 67,799.32
2 Break up of Power, Fuel and WaterN.G.L./A.R.N 1.64 30.81 Power 2,641.21 1,808.90 Fuel (Boiler Gas) 34,639.14 19,656.31 Water Charges 1,463.91 950.79 Total 38,745.90 22,446.81
* Net of Purchase Tax refund of ` 594.73 lakh (Previous year ` Nil) for earlier years.
Note No. 2.21 Note No. 2.22
Note No. 2.23
60 61
Continued....
PURCHASES OF STOCK-IN-TRADE ( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
OMIFCO Urea 44,150.54 55,341.97 Imported DAP/ DAP Lite 65,018.71 103,883.64
Imported MOP - 13,177.28
Imported NPK - 17,943.77
Indigenous Urea 1,680.40 1,927.66
Indigenous Fertilisers 4,074.11 2,515.17
Seeds, Chemicals and Other Products 10,143.19 9,787.18
Total 125,066.95 204,576.67
EMPLOYEE BENEFITS EXPENSE ( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Salaries and Wages 19,493.51 16,773.03
Contribution to Provident and Other Funds 4,813.01 3,573.56
Staff Welfare Expenses 3,815.12 3,462.97
Total 28,121.64 23,809.56
( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Interest on :Rupee term loans 6,269.36 - Cash Credit and Short Term Loans 4613.91 1974.51Buyer's Credit 137.25 518.15
11,020.52 2,492.66
Other Borrowing Costs :Arrangement Fee - 348.41
- 348.41
Exchange differences regarded as 347.85 2,080.35
adjustment to interest cost
347.85 2,080.35
Total 11,368.37 4,921.42
FINANCE COSTS
( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Electricity and Water Charges 271.49 216.23
Rent, Rates and Taxes 562.65 442.36
Repairs & Maintenance
Buildings 774.47 642.62
Plant, Machinery and Other Equipments 3,094.52 2,553.67
Others 1,121.80 4,990.79 1,248.78 4,445.07
Insurance 798.56 899.49
Travelling Expense: 977.14 976.04
Printing and Stationery Expenses 79.61 137.09
Communication Expenses 184.68 173.86
Farmers Benefit and Publicity 1,133.59 817.05
MANUFACTURING, ADMINISTRATION, DISTRIBUTION AND OTHER EXPENSES
Note No. 2.24
( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
Opening Stock:Finished Goods-Manufactured 2,528.48 1,475.92 Stock-in-Process 91.57 75.04 Stock-in-Trade 7,462.73 10,082.78 4,809.58 6,360.54
Closing Stock:Finished Goods-Manufactured 4,791.58 2,528.48 Stock-in-Process 54.85 91.57 Stock-in-Trade 5,956.93 10,803.36 7,462.73 10,082.78
Net (Accretion)/Decretion (720.58) (3,722.24)
CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-PROCESS & STOCK-IN-TRADE
Note No. 2.25
Note No. 2.26
Note No. 2.27
Note No. 2.28
62 63
Continued....
( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012Warehousing 725.25 478.27 Packing, Freight and Handling 48,326.47 35,879.27 Seed Multiplication Expenses 306.42 853.45 Director's Fees 12.08 13.55 Vehicle Hire, Running and Maintenance Expenses 533.56 404.22 Legal and Professional Charges 454.06 206.80 Bank and Other Finance Charges 516.94 871.20 Payment to Auditors Audit Fees (includes `2.47 lakh for Branch Audit (Previous year ` 2.34 lakh)) 20.13 16.68 Reimbursement of expenses 33.24 53.37 15.76 32.44 Foreign Currency Transaction and Translation 456.55 3,039.99 Fixed Assets Written Off/ Amount Charged Off 13.13 122.89 Loss on Sale of Fixed Assets 46.54 33.42 Provision for Surplus and Non-MovingStores 151.51 4.19 Loss on buy back of Fertiliser Bonds by GOI _ 531.65 Miscellaneous Expenses 1,650.61 1,270.51 Total 62,245.00 51,849.04
MANUFACTURING, ADMINISTRATION, DISTRIBUTION AND OTHER EXPENSES
( ` in lakh)
Particulars Year Ended 31.03.2013 Year Ended 31.03.2012
INCOME Others 93.89 0.43
93.89 0.43 EXPENDITUREDepreciation and Amortisation (0.29) (95.02)Others 145.86 -
145.57 (95.02)Net Expenditure/(Income) 51.68 (95.45)
PRIOR PERIOD ITEMS (NET)
Continued....
2.32 EFFECT OF CHANGE IN ACCOUNTING POLICIES:
2.33 EMPLOYEE BENEFITS
During the year the Society has implemented the SAP ERP system. As a result, valuation of inventory items other than manufactured finished goods has undergone change from monthly weighted average to moving weighted average. Due to the above change the impact on profit for the year if any is not ascertainable. However in the opinion of the management, the impact of the same on the accounts is not material.
2.33.1 Disclosures as required under Accounting Standard 15 (Revised) “Employee Benefits”, issued by the Institute of Chartered Accountants of India, in respect of Defined Benefit Obligations are as under:-
2.30 CAPITAL COMMITMENTS:
2.31 CONTINGENT LIABILITIES:
Estimated Value of contracts remaining to be executed on Capital Account (Net of Advancesand Letters of Credit for capital items) and not provided for is ` 11,155.84 lakh (Previous Year` 40,264.60 lakh).
( ` in lakh)
Year Ended Year Ended
31.03.2013 31.03.2012
(i) Claims against the Society not acknowledged as debts
(a) Claims against Society/Disputed Liabilities 54.78 78.38
(b) Disputed liability relating to Tax matters 3,869.82 3,322.17
(c) Disputed liability relating to labour matters 19,638.29 17,850.63
(d) Court cases/ Arbitration with Contractors/ Suppliers 1,670.96 1,637.04
Total 25,233.85 22,888.22
(ii) Guarantees/Counter Guarantees to lenders and others 162,823.77 164,524.91
given by the Society in respect of Joint Ventures/
Subsidiaries (including Surety Bonds and
Letters of Comfort).
Note No. 2.28
Note No. 2.29
Other Notes
64 65
(b) Changes in the present value of the obligations -
(` in lakh)
Gratuity Leave Encashment
(Funded) (Unfunded)
Year Ended Year Ended Year Ended Year Ended
31.03.2013 31.03.2012 31.03.2013 31.03.2012
Present Value of
Obligations as at
beginning of year 15,143.61 12,693.48 11,496.06 10,413.68
Interest Cost 1,211.49 1,081.90 919.68 885.16
Current Service Cost 710.55 628.49 598.97 500.59
Benefits Paid (875.41) (942.89) (1,699.38) (1,345.12)
Actuarial Loss on
Obligations 1,302.51 1,682.63 2,382.13 1,041.75
Present Value of
Obligations as at end
of the year 17,492.75 15,143.61 13,697.46 11,496.06
(a) The principal actuarial assumptions used are as below –
Year Ended Year Ended
31.03.2013 31.03.2012
(i) Method Used Projected Unit Credit Method
(ii) Discount Rate 8.00% 8.50%
(iii) Expected rate of return on
Plan Assets-Gratuity Fund 9.50% 9.50%
(iv) Expected rate of increase in
Compensation Level 6.50% 6.50%
The estimate of future salary increase considered in actuarial valuation, takeaccount of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
(c) Changes in the fair value of the plan assets -
(` in lakh)
Gratuity Leave Encashment
(Funded) (Unfunded)
Year Ended Year Ended Year Ended Year Ended31.03.2013 31.03.2012 31.03.2013 31.03.2012
Fair Value of Plan Assets as
at beginning of the year 13,467.96 12,058.89 - -
Actual return on Plan
Assets 1,106.36 1,202.45 - -
Employers’ Contribution 911.50 1,149.51 - -
Benefits Paid (875.41) (942.89) - -
Fair Value of Plan Assets
as at end of the year* 14,610.41 13,467.96 - -
*Gratuity Fund is managed by Life Insurance Corporation of India (LIC). Individual investment-wise details of Plan Assets are not provided by the LIC.
(d) Liability recognized in the Balance Sheet -
(` in lakh)
Gratuity Leave Encashment
(Funded) (Unfunded)
Year Ended Year Ended Year Ended Year Ended31.03.2013 31.03.2012 31.03.2013 31.03.2012
Present Value of
Obligations as at end
of the year 17,492.75 15,143.61 13,697.46 11,496.06
Fair Value of Plan
Assets as at end
of the year 14,610.41 13,467.96 - -
Net unfunded Liability /
(Assets)
recognized in
Balance Sheet 2,882.34 1,675.65 13,697.46 11,496.06
66 67
(f ) Experience adjustments
(` in lakh)
Year Ended Year Ended 31.03.2013 31.03.2012
Gratuity
(i) Plan Assets- Loss/(Gain) - (9.94)
(ii) Obligations- Loss/(Gain) 751.65 1,746.27
Leave Encashment (Obligations)-Loss/(Gain) (2,015.93) (1,538.58)
(e) Expenses recognized in the Statement of Profit and Loss-
(` in lakh)
Gratuity Leave Encashment
(Funded) (Unfunded)
Year Ended Year Ended Year Ended Year Ended31.03.2013 31.03.2012 31.03.2013 31.03.2012
Current Service Cost 710.55 628.49 598.97 500.59
Interest Cost 1,211.49 1,081.90 919.68 885.16
Expected return on
Plan Assets (1,279.63) (1,145.60) - -
Net Actuarial (Gain)/
Loss recognized
during the year 1,475.78 1,625.78 2,382.13 1,041.75
Total Expense
recognized in the
Statement of
Profit and Loss 2,118.19 2,190.57 3,900.78 2,427.50
2.33.2 Provision for long service award, farewell gift and travel to home town on superannuation amounting to
` 17.98 lakh (Previous Year ` 58.35 lakh) have been made on the basis of actuarial valuation at the year
end and expensed in Statement of Profit & Loss.
2.33.3 The Society pays fixed contribution to provident fund at predetermined rates to a separate trust, which
invests the funds in permitted securities. Contribution to family pension scheme is paid to the
appropriate authorities. The contribution of ̀ 1,595.50 lakh (Previous year ̀ 1,501.02 lakh) for the year is
recognized as expense and is charged to the Statement of Profit & Loss. The obligation of the Society is to
make such fixed contribution and to ensure a minimum rate of return to the members as specified by
Government of India. As per report of the actuary, decrease in liability for the year is accounted for ̀ 13.29
lakh (Previous Year ` 112.89 lakh) in the Statement of Profit and Loss for expected shortfall between fair
value of PF Trust Assets and present obligations determined as per actuarial valuation made at the year
end.
2.33.4 Provision for additional monthly payments payable in subsequent periods to the employees opted for
Voluntary Retirement Scheme 2011amounting to ̀ 276.49 lakh (Previous Year ̀ 321.58 lakh) have been
made on the basis of actuarial valuation at the year end and decrease in liability for the year is accounted
for ̀ 45.09 lakh in the Statement of Profit & Loss (Previous Year charge of ̀ 321.58 lakh).
2.33.5 During the year, the society has implemented Employees Superannuation Pension Scheme. The amount
provided in this regard amounting to ̀ 751.00 lakh (Previous Year ̀ Nil) has been charged to Statement
of Profit and Loss.
2.33.6 During the year the Society has provided a sum of ` 114.34 lakh (Previous year ` 21.70 lakh) towards
contribution to Employees Benevolent Fund Trust for Post Retirement Medical Assistance Scheme and
the same has been charged to Statement of Profit and Loss.
2.34 BORROWING COST
Borrowing cost capitalised during the year is ̀ 1,338.86 lakh (Previous Year ̀ 3,466.93 lakh).
2.35 SEGMENT INFORMATION:
Disclosures as required under AS 17 - Segment Reporting:-
2.35.1 PRIMARY SEGMENT
a) Business Segments:
The Society’s operating business are organized and managed according to the nature of products and
services provided. The three identified segments are ‘Urea and Ammonia-Manufactured’, ‘Imported
Fertilizers’ and ‘Other Products’. The ‘Urea and Ammonia-Manufactured’ segment includes manufacture
and marketing of Urea and Ammonia. ‘Imported Fertilizers’ segment includes trading of Imported
OMIFCO Urea, Imported Phosphatic / Potasic Fertilizers. ‘Other Products’ segment includes Trading and
Manufacturing of bio-fertilizers, seeds, pesticides, indigenous fertilizers, agro inputs, argon gas etc.
b) Segment Accounting Policies:
Direct revenue and expenses are allocated to respective segments. Indirect revenue and expenses are
allocated amongst the segments on a reasonable basis. Segment Assets include all operating assets used
by segment comprising Non Current Assets and Current Assets. Segment Liabilities include all operating
liabilities and consist principally of trade payables and other current liabilities. Unallocated items include
general corporate income and expense items which are not allocated to any business segment.
2.36.2 Transactions with the related parties at (2.36.1) above are as follows:
( ` in lakh)
Nature of Transaction Related Party
As at As at
31.03.2013 31.03.2012
Investment during the year KRIL 500.00 3,000.00
GSEG - 900.00
Total 500.00 3,900.00
Dividend Received OMIFCO 26,258.60 25,740.39
GSEG - 242.57
Total 26,258.60 25,982.96
Receipts for Fee/ Services KRIL 246.36 329.08
KSFL 420.84 390.15
OMIFCO 1,921.13 1,959.50
GSEG - 31.27
Total 2,588.33 2,710.00
68 69
Primary Segment (` in lakh)
Business Segments
Urea & Ammonia- Imported Fertilisers Other Products
Manufactured Total
Year Ended Year Ended Year Ended Year Ended
31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12
Revenue :
- Sales 105,606.95 72,103.45 91,304.61 120,004.14 18,622.58 16,391.48 215,534.14 208,499.07
- Concession/Remuneration from GOI 153,089.12 53,423.00 47,890.12 99,778.36 2,128.63 1,633.55 203,107.87 154,834.91
- Accretion / Decretion In Stocks 2,232.44 1,094.11 (1,917.98) 1,508.73 406.12 1,119.40 720.58 3,722.24
Other Revenue 2,320.82 2,213.79 472.15 684.10 941.46 391.45 3,734.43 3,289.34
Total Revenue 263,249.33 128,834.35 137,748.90 221,975.33 22,098.79 19,535.88 423,097.02 370,345.56
Expenditure
- Operating and Other Expenses 249,036.21 137,469.81 139,665.19 226,287.51 18,876.01 16,825.98 407,577.41 380,583.30
Total Expenditure 249,036.21 137,469.81 139,665.19 226,287.51 18,876.01 16,825.98 407,577.41 380,583.30
Segment Operating Result 14,213.12 (8,635.46) (1,916.28) (4,312.18) 3,222.77 2,709.90 15,519.61 (10,237.74)
Unallocated Expenses
- Interest and financial Charges 11,368.37 4,936.41
- Other Unallocated 690.71 383.93
Total Unallocated 12,059.08 5,320.34
- Other Revenue including Dividend 30,957.83 30,598.55
- Interest Income 2,069.83 4,175.41
Profit before Tax 36,488.19 19,215.88
- Income Tax 6,932.84 1,539.63
Net Profit after Tax 29,555.35 17,676.25
Capital Employed
- Segment Assets 311,828.72 114,326.68 58,809.32 67,967.00 15,490.74 13,457.51 386,128.78 195,751.19
- Unallocated Corporate Assets 151,013.15 182,996.98
- Unallocated Capital Work-in-Progress 26,545.28 121,366.47
Total Assets 311,828.72 114,326.68 58,809.32 67,967.00 15,490.74 13,457.51 563,687.20 500,114.64
- Segment Liabilities 115,019.68 44,160.19 11,053.44 53,900.91 6,497.93 1,281.77 132,571.05 99,342.87
- Unallocated Corporate Liabilities 117,473.63 108,542.81
Total Liabilities 115,019.68 44,160.19 11,053.44 53,900.91 6,497.93 1,281.77 250,044.68 207,885.68
Other Information
- Capital Expenditure incurred during 4,943.64 6,271.31 25.72 4,943.64 6,297.02
the year (including CWIP)
Unallocated 22,032.22 48,082.88
- Depreciation 6,961.40 2,372.68 69.19 138.08 1,611.86 439.72 8,642.45 2,950.48
Unallocated 695.55 381.58
- Non Cash Expenditure
(other than depreciation) 201.98 797.99 201.98 797.99
2.36.2 SECONDARY SEGMENT
The operation of the Society is mainly carried out within the country and therefore there is no reportable geographical segments.
SEGMENT REPORTING AS AT MARCH 31, 20132.36.1 Related parties:
2.36.1.1 Key Management Personnel: (i) Mr. B.D.Sinha Managing Director(ii) Mr. R.Kamra Finance Director(iii) Mr. N.S.Rao Marketing Director (iv) Mr. S. Jaggia Operations Director (upto 31.07.2012)(iv) Mr. R.K.AggarwalOperations Director (w.e.f. 03.10.2012)
2.36.1.2 Subsidiary Companies:(i) KRIBHCO Infrastructure Limited (KRIL)(ii) KRIBHCO Shyam Fertilisers Limited (KSFL)
2.36.1.3 Joint ventures:(i) Oman India Fertiliser Co.SAOC (OMIFCO)(ii) Urvarak Videsh Limited. (UVL)(iii) Gujarat State Energy Generation Limited (GSEG)
2.36.1.4 Associates:(i) Gramin Vikas Trust (GVT)
2.36 RELATED PARTY DISCLOSURES:
Continued....
70 71
( ` in lakh)
Nature of Transaction Related Party
As at As at
31.03.2013 31.03.2012Payment of Fee for Management & Erection Services for Railway Siding KRIL 3.40 63.10
Total 3.40 63.10 Rental Income KSFL 13.88 12.05
KRIL 1.88 1.34GVT 9.01 7.29
Total 24.77 20.68Purchases of Traded Products/ Other Material KSFL 1,673.67 1,928.22
GVT - 59.14
Total 1,673.67 1,987.36Grants/ Contribution GVT 206.00 146.42
Total 206.00 146.42Recovery towards expenses incurred KRIL 34.49 62.89
KSFL 34.43 106.77OMIFCO 4.47 -
GVT 6.73 17.86
Total 80.12 187.52Amount Payable KRIL 16.73 31.55
KSFL 3.15 12.37GVT - 13.07
Total 19.88 56.99Deposit Received KSFL 2.66 2.31
GSEG 30.00 30.00
Total 32.66 32.31Amount Recoverable KRIL 218.29 153.64
KSFL 1,094.47 948.27OMIFCO 501.39 544.48
GSEG 9.39 - GVT 0.53 -
Total 1,824.07 1,646.39Amount recoverable towards Loan GVT 250.00 -
Total 250.00 - Managerial Remuneration*
Mr. B D Sinha, Managing Director 33.67 32.37Mr. R Kamra, Finance Director 36.46 30.49Mr. N S Rao, Marketing Director 24.89 24.38Mr. S Jaggia, Operations Director** 54.38 27.09Mr. R.K.Aggarwal, Operations Director 13.66 -
Total 163.06 114.33
* The provisions for other employees benefits viz. contribution to gratuity, leave encashment and other definedbenefit plans are ascertained on actuarial valuation done on overall Company basis and hence notascertainable separately.
** including superannuation benefits paid ̀ 43.50 lakh.
2.37 OPERATING LEASE
2.38 FINANCIAL REPORTING OF INTEREST IN JOINT VENTURES
The Society’s significant leasing arrangements are in respect of Operating Lease of premises for offices of the Society and residential use of employees. These leasing agreements are usually renewable on mutually agreed terms but are cancelable. These payments are shown as “Rent, Rates and Taxes” in Note 2.28 of ‘Manufacturing, Administration, Distribution and Other Expenses.’
Investments include ` 43,075.46 lakh (Previous Year ` 43,075.46 lakh) representing Society’s interest in the following jointly controlled entities as at March 31, 2013.
( in lakh)Name of the Company Country of
Residence towards Equity holding of KRIBHCOAs at
31.03.2013 31.03.2012 31.03.2013 31.03.2012i) Oman India Fertiliser
Company SAOC (OMIFCO)* Oman 32,853.46 32,853.46 25.00 25.00
ii) Gujarat State Energy Generation Ltd (GSEG)** India 10,204.00 10,204.00 27.90 27.90
iii) Urvarak Videsh Ltd. (UVL)** India 18.00 18.00 33.33 33.33
`
Contribution Percentage of
As at As at As at
The Society’s share in the Assets, Liabilities and Capital Commitments as at 31.03.2013 and Income and Expenses for the year ended 31.03.2013 in respect of Jointly controlled entities are given below:
As at 31.03.2013 As at 31.03.2012Liabilities:Non-current Liabilities
- Long-Term Borrowings 28,876.55 41,772.56 - Deferred Tax Liabilities (Net) 6,307.05 771.96 - Other Long Term Liabilities 5,945.15 11,293.67 - Long-Term Provisions - 382.56 Current Liabilities - Trade Payables 11,888.40 1,495.66 - Other Current Liabilities 16,509.50 15,316.53 - Short-Term Provisions 2.14 0.17 Total Liabilities 69,528.79 71,033.11
Continued....
Continued....
( ` in lakh)
2.39 IMPAIRMENT OF ASSETS
2.40 TAXATION
2.41 FOREIGN CURRENCY EXPOSURE
In accordance with Accounting Standard (AS) 28 on “Impairment of Assets”, the Society has assessed as on the balance sheet date whether there are any indications with regard to impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.
Provision for Taxation has been made after considering provisions of the agreement between the Republic of India and the Sultanate of Oman for the Avoidance of Double Taxation in respect of dividend received from Oman India Fertilizer Company SAOC (OMIFCO) by the Permanent Establishment of Society in the form of a branch in Oman.
2.41.1 Amount of foreign currency exposure not hedged by derivative instruments orotherwise:
S.No. Particulars Amount of Foreign Currency ` in lakhYear Ended Year Ended Year Ended Year Ended 31.03.2013 31.03.2012 31.03.2013 31.03.2012
(i) Borrowings, including interest accrued but not due thereon
- US $ 4,67,73,873 - 23,927.88(ii) Trade Payables/ deposits and retention money
US $ 12,30,727 US $ 7,06,531 669.39 361.44Euro 6,24,401 Euro 11,07,741 434.23 754.06
UK £ 4,168 UK £ 16,000 3.42 13.09JP ¥ 25,00,000 JP ¥ 9,19,08,968 14.41 573.79
R O 5,739.00 R O 2,780.00 8.11 3.70(iii) Trade Receivable Debtors and Bank Balances
US $ 9,33,018 US $ 68,954.87 507.46 35.27R O 4,079 R O 5,295.72 5.76 7.04
(iv) Unexecuted amount of contracts remaining to be executed
US $ 10,75,000 549.93Euro 12,55,127 857.75
2.41.2 Forward contracts (on account of hedging currency related risks) outstanding for purchase of imported capital goods/ traded products and borrowings:
Amount in Foreign Currency ` in lakhAs at 31.03.2013 As at 31.03.2012 As at 31.03.2013 As at 31.03.2012
Nil US $ 4,81,43,363 Nil 24,628.46
72 73
As at 31.03.2013 As at 31.03.2012Assets:Non-Current AssetsFixed Assets - Tangible Assets 114,166.06 88,416.64 - Intangible Assets - 33.80 - Capital Work-in-Progress 1,335.22 31,685.44 Non-Current Investments 13.95 13.95 - Long-Term Loans and Advances 238.85 525.19 Current Assets - Inventories 6,787.48 6,131.48 - Trade Receivables 3,730.53 4,398.58 - Cash and Bank Balances 17,772.10 21,802.34 - Short-Term Loans and Advances 21.42 30.43 - Other Current Assets 111.52 0.84 Total Assets 144,177.13 153,038.69Income:- Revenue from Operations 62,174.79 63,913.12 - Other Income 710.37 724.73Total Revenue 62,885.16 64,637.85Expenses:Cost of Materials Consumed 17,309.05 14,855.48Employee Benefits Expense 4,561.89 3,927.37Finance Costs 3,736.24 1,761.58Depreciation and Amortization Expense 8,175.47 6,357.65Manufacturing, Administration, Distribution and Other Expenses 6,381.93 6,488.87Prior Period Expenses 0 -32.88Total Expenses 40,164.58 33,358.07Profit Before Tax 22,720.58 31,279.78Tax Expense:Current Tax - - Deferred Tax (195.56) (177.92)Profit After Tax 22,916.14 31,457.70Capital Commitments 655.85 383.03
* Accounting period of OMIFCO is from January to December.** Accounting period of GSEG and UVL is from April to March and financial data are based on
provisional accounts.
Continued....
Continued....
74 75
2.47 EARNINGS IN FOREIGN EXCHANGE:
( ` in lakh)
Year Ended Year Ended31.03.2013 31.03.2012
2.47.1 Dividend and Interest
Dividend 26,258.60 25,740.39
2.47.2 Other Income
Urea Sales Fee 1,825.61 1,781.68
Others 127.92 216.09
Total 28,212.13 27,738.16
2.46 EXPENDITURE IN FOREIGN CURRENCY:
( ` in lakh)
Year Ended Year Ended31.03.2013 31.03.2012
2.46.1 Legal & professional Charges 1,647.45 2,496.27
2.46.2 Purchase of Imported Fertilisers 61,473.01 114,820.17
2.46.3 Others 33.07 -
Total 63,153.53 117,316.44
2.45 VALUE OF IMPORTS CALCULATED ON C.I.F. :
( ` in lakh)
Year Ended Year Ended 31.03.2013 31.03.2012
2.45.1 Components and Spare parts 257.29 222.74
2.45.2 Capital Goods 458.14 44882.28
Total 715.43 45105.02
2.43 Exchange variation gain (net) accounted for under head “Purchase for Stock in Trade” is ̀ 89.49 lakhs ( PY expenses ̀ 3,849.55 lakhs).
2.44 Trial run expenses for the year relating to Urea /Ammonia revamp project amounting to` 1,095.94 lakh (net of revenue ̀ 21,594.85 lakh) (Previous year ̀ 5,901.19 lakh (net of revenue` 21,116.70 lakh)) has been included in the Revamp project capital cost.
2.42 INFORMATION IN RESPECT OF MICRO, SMALL AND MEDIUM ENTERPRISES AS REQUIRED BY THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 AS AT
31.03.2013( ` in lakh)
Sr. Particulars As at As at . No. 31.03.2013 31.03.2012
1 The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year:(i) Principal Amount due Nil Nil(ii) Interest due thereon Nil Nil
2 The amount of interest paid by the buyer in terms of section 18, along with the amounts of the paymentmade to the supplier beyond the appointed dayduring each accounting year as announced by any dispute resolution council/authority Nil Nil
3 The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year)but without adding the interest specified under this Act: Nil Nil(i) Payment made to supplier (Other than interest)
beyond the appointed day during the year Nil Nil(ii) Interest paid to supplier on principal amount
paid beyond the appointed day during the year Nil Nil(iii) Interest due and payable to supplier on
principal amount paid beyond the appointed day during the year Nil Nil
4 The amount of interest accrued and remaining unpaid at the end of each accounting year; and Nil Nil
5 The amount of further interest remaining due andpayable even in the succeeding years, until such date when the interest dues as above are actually paidto the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23. Nil Nil
The above information has been provided to the extent such parties have been identified on thebasis of information available with the Society.
76
(R. Kamra) ( B.D. Sinha) Finance Director Managing Director
As per our report of even date
For G.S. Mathur & Co. For G.K. Choksi & Co. For S.K. Mehta & Co.Chartered Accountants Chartered Accountants Chartered AccountantsFirm Reg. No. 008744N Firm Reg. No.101895W Firm Reg. No. 000478N
(Ajay Mathur) (Sandip A. Parikh) (S.K. Mehta )Partner Partner Partner
M No.082223 M No.040727 M.No.010870
Place : New DelhiDated : April 26, 2013
2.48 Balances of some of the contractors/customers/suppliers/receivable/payable and deposits with others are subject to confirmation/ reconciliation and consequential adjustments, if any, which in the opinion of management would not be material.
2.49 In the opinion of the management, the value of any of the assets other than Fixed Assets and Non-Current Investments on realisation in the ordinary course of business will not be less than the value at which these are stated.
2.50 The Previous Year figures have been re-grouped/rearranged, wherever considered necessary, to make them comparable with the Current Year figures.