nagarjuna information systems limited - Nagarjuna Fertilizers

2. Contingent Liabilities:
Claims against the company not acknowledged as debts: Rs. 1,65,000
(Previous year – 1,65,000)
3. Financial Statements:
The financial statements for the year have been drawn up as a going concern based
on the Management’s assessment of the project after taking into account the
following positive developments:
• Project has been appraised by the equity participants and re-appraised by
Industrial Development Bank of India (IDBI) and SBI confirming the
commercial viability.
• Achieved 100% equity participation (Rs.1372 crores) with commitments
from leading industrial groups and others in India and Overseas.
• Term loan of Rs.500 crores sanctioned by IDBI. State Bank of India
(SBI) has also given sanction for Rs 300 crores and Life Insurance
Corporation of India for Rs 85crores. Mandate for syndication given to
IDBI and SBI for tying up the balance Rupee term loan of Rs. 1340
crores. ‘In principle’ sanction aggregating Rs.550 crores has been
received from some banks and the sanction process for the remaining
rupee term loan with other banks is in progress.
• The contracts with ABB Lummus to act as Project Management
Consultants have been renewed. The agreements with other Process
Licensors are in the process of revival and are expected to be finalized
soon.
• Marketing of company’s products in the domestic and overseas markets
have been tied up with oil companies comprising of reputed public and
private sector companies.
• Equipment stored at Cuddalore and ports in Europe are subjected to
regular inspection and technical experts have certified the good
condition of the equipment.
• The Company has obtained and is in the process of obtaining statutory
clearances and approvals.
Despite the delay in execution of the Project, in view of the positive developments
during the year as stated above, the Management perceives that the project is viable
and is confident of implementation of the Project.
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