Annual Report 2004 - Nagarjuna Fertilizers

NFCL
a.2
14. Group Concession Scheme – (GCS) Subsidy :
The FICC has notified provisional price applicable to
the Company under GCS and, the subsidy has been
accounted on the said basis for the year 2004-05.
Adjustments if any on notification of final prices under
GCS will be considered in the year in which the
notifications are received.
15. Capital Investment Subsidy:
An amount of Rs. 20 lakhs was received as Capital
Investment subsidy from Govt. of Andhra Pradesh
vide consolidated proceedings no.10/4/2001/1014/
FD-I dated 27.06.2001 towards Capital Investment
of the erstwhile NPIL, in respect of Micro Irrigation
business, subject to the condition that the unit shall
be in continuous production atleast till 31.12.2004.
16. Remission of Liability:
The Company pursuant to settlement of dues with
American Express Bank Ltd., IDBI Bank Ltd., and
Development Credit Bank Ltd., as envisaged in the
CDR Package, adjusted an amount of Rs. 1464.70
lakhs representing remission of principal amount of
their debt by credit to profit and loss account. (Previous
year Rs. 841.01 lakhs from ING Vysya Bank Ltd).
17. Debenture Redemption Reserve
Sl.
No
Assets
Particulars 31.03.2005
Carry forward
business loss - - - 4,408.35
Provision for diminution
in value of investments - - - - - -
Total - - - 4,408.35
Consequent to reschedulement of dates of redemption
and tenure, no additional provision is required to be
created during the year.
01. Finance :
Nature of transaction
18. Deferred Revenue
The catalysts installed last year which were to be
charged off in the normal course over years depending
upon their useful life, as technically assessed, has
been charged off completely amounting to Rs. 1030.59
lakhs, due to use of contaminated Naphtha.
19. Segmental Accounting
The financial results relate mainly to fertiliser segment.
In Accordance with Accounting Standard (AS) -17,
since the financial results of micro irrigation segment
is less than the limit for separate disclosure, the same
is not shown separately.
20. Balances in respect of Sundry Debtors, Loans and
Advances, and Sundry Creditors relating to Micro
irrigation business and balances in respect of
suppliers, advances recoverable and other receivables
of a subsidiary (NOCL) are subject to confirmation.
21. Related party transactions
1. Names of related parties and description of
relationship.
a) Associates
(i)
(ii)
Nagarjuna Agricultural Research and
Development Institute (NARDI)
Ikisan Limited
(iii) KVK Raju International Leadership Academy
(iv) Nagarjuna Foundation
(v) Nagarjuna Corporation Limited
b) Key Management Personnel
(i) Mr.K.S.Raju, Vice Chairman & Managing
(ii)
Director
Mr.K.Rahul Raju, Director – Business
Development & Strategic Planning
(iii) Mr.P.P.Singh, Director - Technical
(iv) Mr.R.S.Nanda, Director & Chief Operating
Officer
(v) Mr S Ram Mohan, Director & Chief Executive
Officer
2. Related party transactions are as under:
Associates
31.03.2005
Key Mgmt.
Personnel
31.03.2005
Associates
31.03.2004
Rs. Lakhs
Key Mgmt.
Personnel
31.03.2004
Share Appln. Money ---- ---- ----
Refund of Share Appln Money ---- ---- ---- ----
Advances given 10.00 ---- 34.83 ----
Advances received 0.90 3.26 32.64 3.26
02. Purchase of fixed assets ---- ---- 1.26 ----
03. Sale of Shares ---- ---- 6.00 ----
04. Receiving of services :
Service charges ---- ---- 127.62 ----
Reimbursement of expenses ---- ---- 0.06 ----
Prof. & Mgmt. Consultancy ---- ---- ---- ----
05. Providing Services ---- ---- 23.79 ----
06. Grant to R & D 18.97 ---- 38.87 ----
07. Lease Rental received 0.01 ---- 0.01 ----
08. Remuneration to ---- 130.37 ---- 105.96
Key Mgmt. Personnel
Rs. Lakhs
31.03.2004
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