Annual Report 2004 - Nagarjuna Fertilizers

NFCL
Schedules to the Consolidated Profit and Loss Account for
the year ended 31st March, 2005
Schedule 12 - (Increase )/Decrease in Stock
Rs. Lakhs
Particulars 31.03.2005 31.03.2004
Traded Products
Opening Stock * 121.40 670.23
Closing stock (421.35) (33.55)
(299.95) 636.68
Manufactured Urea
Opening Stock @ 1,390.91 12,017.71
Closing stock (2,880.03) (1,238.92)
(1,489.12) 10,778.79
Work in Process
Opening Stock 214.70 568.43
Closing stock (304.03) (214.70)
(89.33) 353.73
(Increase)/Decrease in Stock (1,878.40) 11,769.20
* includes Rs. 87.85 lakhs of Micro Irrigation division as at 01.10.04
pursuant to amalgamation
@ includes Rs. 151.99 lakhs of Micro Irrigation division as at
01.10.04 pursuant to amalgamation
Schedule 13 - Other expenses
Rs. Lakhs
Particulars 31.03.2005 31.03.2004
Rent 122.27 94.58
Rates and Taxes 231.06 63.56
Electricity and Water Charges 68.40 53.06
Stores and Spares Consumed 580.73 301.58
Repairs and Maintenance
Buildings 37.60 21.06
Plant & Machinery 163.47 351.60
Others 302.79 503.86 187.15 559.81
Insurance 691.76 602.03
Printing and Stationery 72.01 46.26
Postage , Telephone and Telex 200.61 158.12
Travelling and Conveyance 423.68 393.67
Advertisement and Publicity 309.37 276.03
Employee Recruitment and Training 40.44 10.24
Legal, Secretarial and Professional
charges 674.04 618.59
Share Registry expenses 40.39 69.87
Directors Sitting Fees 3.25 3.70
Research & Development - grant 18.97 38.87
Auditors’ Remuneration 43.07 27.75
Donations 0.10 -
Provision for doubtful debts / claims - 3.97
Bad debts written off` 128.11 138.00
Less: Provision for doubtful debts /
advances 51.72 76.39 - 138.00
Provision for depletion in value
of stores 889.11 -
CFG Project Expenditure - 39.68
Miscellaneous Expenses 255.72 193.93
Total 5,245.23 3,693.30
Schedule 14 - Interest and Financing Charges
Rs. Lakhs
Particulars 31.03.2005 31.03.2004
Term Loans 8,206.24 12,799.29
Debentures 3,798.91 5,922.44
Others 2,273.48 6,852.08
Total 14,278.63 25,573.81
SCHEDULE 15 - Accounting Policies and Notes to
Accounts
A. SIGNIFICANT ACCOUNTING POLICIES :
1. General:
The company follows accrual system of accounting
and recognises income and expenditure on accrual
basis unless otherwise stated. The Accounts are
prepared on historical cost convention, unless
otherwise stated.
2. Fixed Assets:
a) Fixed assets are stated at cost, unless stated
otherwise. Cost comprises the purchase price and
other attributable expenses.
b) Revaluation : The net increase in the value of the
assets is credited to the Revaluation Reserve.
c) Impairment of Assets : Impairment of an asset is
reviewed and recognised in the event changes and
circumstances indicate that the carrying amount of
an asset is not recoverable. Difference between the
carrying amount of an asset and the recoverable value
is recognised as impairment loss in the statement of
profit and loss in the year of impairment.
d) Borrowing Cost incurred on acquisition of Qualifying
Assets are capitalised. Qualifying Asset is an Asset,
which will take substantial period of time to bring to its
intended use.
e) Expenditure pending allocation : Expenditure during
construction period other than those directly related
to an asset is grouped under “Expenditure pending
allocation” and is capitalised or treated as deferred
revenue expenditure, at the time of commencement
of commercial production as determined in accordance
with the generally accepted accounting principles.
3. Depreciation on Fixed Assets:
a) Depreciation on fixed assets other than the assets
given on lease, is provided on straight-line method at
the rates and in the manner prescribed in Schedule
XIV of the Companies Act, 1956.
b) Depreciation charge for each year is net of additional
depreciation on incremental values arising out of
revaluation met out of revaluation reserve.
c) In respect of Assets given on lease, depreciation is
provided on straight line method at the rates and in
the manner prescribed in Schedule XIV of the
Companies Act, 1956. Further, in respect of ongoing
leases, the guidance note on accounting of leases
issued by the Institute of Chartered Accountants of
India (ICAI) is followed.
4. Investments :
Investments are stated at cost less any diminution in
their value, which is other than temporary.
5. Foreign currency transactions:
The transactions in foreign currencies remaining
outstanding at the end of the year, are translated at
the exchange rates prevailing on the date of Balance
Sheet or at the rate of exchange fixed under
contractual arrangements. Exchange gain/loss on
transactions relating to liabilities incurred to acquire
fixed assets is treated as an adjustment to the cost of
fixed assets. Exchange gains and losses on foreign
exchange transactions other than those relating to
fixed assets are adjusted in the profit and loss
account.
6. Revenue recognition:
a) Credit under Group Concession Scheme (GCS) and
Equated Freight is considered on despatch of finished
goods from the factory in accordance with the
procedure prescribed by the Government of India –
Fertiliser Industry Co-ordination Committee.
b) Lease rental income is recognised in accordance with
the guidance note on accounting for leases issued
by ICAI.
48