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