Annual Report 2004 - Nagarjuna Fertilizers

NFCL
shares of Rs. 10/- each to be issued and allotted to the shareholders of erstwhile Nagarjuna Palma India Ltd
pursuant to the scheme of Amalgamation.
6. Secured Loans:
A - DEBENTURES
i 75,00,000, 14.50% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each are redeemable
as follows
(a) 45,00,000 issued to UTI in six half yearly instalments commencing from July 2003 as per reschedulement.
The first four instalments of Rs. 450 lakhs each, due on 20 th July 2003, 20 th January 2004, 20 th July 2004
and 20 th January 2005, aggregating to Rs.1800 lakhs are overdue.
(b) 30,00,000 issued to LIC in 41 structured quarterly instalments commencing from 31st March 2006 as per
reschedulement in line with the CDR Package.
ii 6,71,602, 14.50% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to UTI
are redeemable in 24 monthly instalments commencing from October 2002 as per reschedulement. The
balance outstanding is Rs.503.70 lakhs (Previous year Rs. 503.70 lakhs).
The entire outstanding of Rs. 503.70 lakhs is overdue.
iii 80,00,000, 15.00% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to
IFCI redeemable in 41 quarterly instalments commencing from 31 st March 2006 as per reschedulement in line
with the CDR Package. The balance outstanding is Rs.2,933.50 lakhs (previous year Rs. 2,933.50 lakhs).
iv 1,53,30,000, 15.00% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to
ICICI redeemable in 41 quarterly instalments commencing from 31 st March 2006 as per reschedulement in line
with the CDR Package.
v 25,00,000, 15.00% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to
IFCI redeemable in 41 quarterly instalments commencing from 31 st March 2006 as per reschedulement in line
with the CDR Package.
vi 30,00,000, 13.25% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to LIC
redeemable in 41 structured quarterly instalments commencing from 31st March 2006 as per reschedulement
in line with the CDR Package.
The interest rates stand revised to 10.50% w.e.f. 01.04.2004 in respect of Debentures stated at i (b), iii, iv, v, and vi
as per CDR package sanctioned on 20 th February 2004.
vii 32,00,000 12.50% Secured Redeemable Non-Convertible Debentures (NCD) of Rs.100/- each issued to SBI
redeemable in 20 equal quarterly instalments commencing from 31st March 2005 as per reschedulement in
line with the CDR Package. The balance outstanding is Rs.1800.00 lakhs (previous year Rs. 2,577.98 lakhs).
The interest rates stand revised to 7.00% w.e.f. 01.04.2004 in respect of Debentures stated above as per CDR
package sanctioned on 20 th February 2004.
The above debentures (excluding Rs.4300.00 lakhs, relating to assets given on lease, issued to ICICI), together
with accrued interest, remuneration and other expenses thereof are secured by a registered mortgage and an
exclusive charge on the Company’s immovable property situated at Ahmedabad and an equitable mortgage and a
charge on the other immovable and movable properties of the Company in favour of the debenture trustees, save
and except stock in trade, book debts given as security to banks for obtaining working capital facilities and assets
given on lease with exclusive charge in favour of the funding institution. Charge creation in respect of Rs. 9371.60
lakhs is pending, for which specific approvals from the lenders (as per CDR package) is awaited.
Out of Rs.15,330.00 lakhs 15% Non-Convertible Debentures issued to ICICI Bank, Rs.4300.00 lakhs are secured
by exclusive mortgage of assets given on lease.
viii 33,49,36,238 0% Secured Redeemable Non-Convertible Debentures of Rs.1/- each issued to various lenders
viz. State Bank of India, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Patiala,
State Bank of Travancore, State Bank of Saurashtra, Bank of India, Bank of Baroda, Canara Bank, Indian
Overseas Bank, Punjab National Bank, UCO Bank, Union Bank of India, The Bank of Rajasthan Ltd.,
SICOM, Oriental Bank of Commerce, Rabo India Finance (Pvt) Ltd., Karur Vysya Bank, Karnataka Bank,
IndusInd Bank, and ICICI Bank, as envisaged in the CDR Package. The debentures are redeemable after the
entire debt liabilities are fully repaid.
The above debentures are secured by way of second charge on the fixed assets of the Company ranking pari-passu
with the working capital banks. This is subject to receiving NOCs from the second charge holders which is still
awaited.
B – LONG TERM LOANS :
The Long Term Loans from Institutions are secured by way of a charge created through an equitable mortgage of
immovable properties by deposit of title deeds and hypothecation of movable properties of the Company including
movable plant and machinery, spares, tools and other movables, present and future, save and except stock in
trade, book debts, and stores & spares, given as security to banks for obtaining working capital facilities and assets
given on lease with exclusive charge in favour of the funding institution. They are further secured by way of a second
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