Annual Report 2004 - Nagarjuna Fertilizers

NFCL
Based on the report of the valuer, the value of the
manufacturing facilities at Kakinada have been revalued
at Rs.243350.02 lakhs as against the present
book value of Rs. 102401.15 lakhs which has resulted
in an increase in the value of the fixed assets by Rs.
140948.87 lakhs. The said amount of Rs. 140948.87
lakhs was transferred to revaluation reserve and a
sum of Rs. 46638.27 lakhs as detailed in Note no. 12
representing irrecoverable Sundry Debtors (including
other receivables) and Loans & Advances as assessed
by an independent agency and other adjustments
relating to the Scheme of amalgamation amounting
to Rs. 978.14 lakhs, has been adjusted against the
revaluation reserve and the net amount of Rs.
93332.47 lakhs reflected as addition to Revaluation
Reserve under “Reserves and Surplus” Schedule 2
of the Balance Sheet.
6. Share Capital:
A. Optionally Convertible Cumulative Redeemable
Preference Shares – (OCCRPS) of Rs. 3720.37
lakhs (Previous year Nil) represent shares allotted
on 9 th October 2004 to IDBI, IFCI and LIC as fully
paid, as per the CDR scheme, being the interest
differential between the contracted rates and CDR
approved rates for the FY 2003-04. These are
redeemable/convertible after the entire debt
liabilities are fully repaid.
B. Shares to NPIL pending allotment
“Equity Share Capital pending allotment” included
under Share Capital of Schedule 1 represent
1,11,61,228 equity 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.
7. Secured Loans:
1. 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
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