6th Annual Report
2007-2008
Photograph
Company logo
BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED
6TH ANNUAL REPORT
2007-2008
Company logo
BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED
Regd. Office : Namrup, P.O.: Parbatpur, Dist Dibrugarh -786623, Assam
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Board of Directors
Management Team
Citizen Charter
Notice of Annual General Meeting
Directors’ Report
Management Discussion and Analysis Report
Annual statement showing representation of SCs, STs and OBCs
Corporate Governance
Declaration of Compliance of Code of Conduct
Management Reply on the observations of Statutory Auditors
Comments of the Comptroller and Auditor General of India on the Accounts
and Management Reply thereon.
Disclosure of particulars with respect to conservation of energy,
Technology Absorption and Foreign Exchange Earning and Outgo
Statutory Auditors’ Report
Balance Sheet
Profit & Loss Account
Schedules 1 to 26
Cash Flow Statement
Additional information as per Part-IV Schedule –VI of the Companies Act,
1956
Performance at glance
BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED
Preamble
CITIZENS’ CHARTER
This Charter is a declaration of our mission, objectives, values, commitments,
standards and our expectations from others.
Mission





To produce fertilizer efficiently, economically and in environment friendly
manner.
To established itself as profit making enterprises
To work for all round improvement of the strategically important North
Eastern parts of the country.
To diversify into production of other industrial products.
To provide balanced economic growth in the region.
Objective
BVFCL has the following objectives:




To take up and implement schemes for energy savings.
To continuously improve plant operation safety.
To attain high level of capacity utilisation.
To continuously upgrade the quality of human resources of the company
and promote organizational development.
Values
We shall carry out our functions and duty with utmost :





Sincerity
Speed
Equity
Integrity
Transparency
and without any fear or favour.
Standards

We have set up upon ourselves the standards for all transactions with you.
We undertake that in case of likely or inevitable delay, we shall promptly
communicate the same to the party concerned.
Our Commitments
We commit to:


Produce and distribute quality fertilizers conforming to the specifications.
Timely distribution of our fertilizers to ensure consumer satisfaction.


Continual upgradation of Technology and Development of Human
Resources.
Strict adherence to the prescribed Safety, Health and environmental
Protection Standards.
SERVICE EXTENDED TO THE CUSTOMERS/CITIZENS’
Training is imparted to the farmers free of cost by the Company in village/block
level for balanced use of fertilizers for improving productivity.
FOLLOWING GRIEVANCES REDRESSAL MACHANISM HAS BEEN
CONSTITUTED IN THE COMPANY.
1.
2.
3.
4.
5.
Employees Grievance Redressal Committee
Township Welfare Committee
Information under the Right to Information Act, 2005
Customer Grievances Redressal Cell
Complaints involving redressal for bribes or financial irregularities, public
may approach to the Chief Vigilance Officer of the Company
TIME LIMIT FOR DISPOSAL OF GRIEVANCES
a. Issue of acknowledgement /interim reply to petitioner
b. Forwarding of the grievance petition to the concerned authority
c. Final disposal of the grievance petition
2 weeks
3 weeks
2 months
EXPECTATION FROM CUSTOMERS/CITIZENS
We expect from the customers / citizens to be reasonable and prompt in
exercising your rights and obligations in all your transactions with the
company without extending inducement of any kind and not raising any
frivolous issues.
a. Timely feed back of information about the product purchased by the
customer, its quality, weight, etc.
b. Suggestion for further improvement.
BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LTD.
BOARD OF DIRECTORS
1.
2.
3.
4.
5.
5.
6.
Shri S. C.Dhawan
Chairman and Managing Director (Upto 31.01.2008)
Shri U.S.Jha
Chairman and Managing Director (From 7.02.2008)
Shri Deepak Singhal
Joint Secretary (Fertilizer), DOF
(Upto 10.03.2008)
Shri Rajesh Agrawal
Deputy Secretary (Fertilizer), DOF (From 10.03.2008)
Dr. Sri Chandra
Joint Advisor (Fertilizer), DOF
Shri J.C.Duarah
Director (Production)
(upto 30.06.2008)
Shri N.K.Ghosh
Director (Finance)
(From 7.09.2007)
COMPANY SECRETARY
Shri R.K.Gupta
CHIEF VIGILANCE OFFICER
Shri Ajay Mankotia
Shri J.K.Khanna, IPS
(Upto 11.10.2007)
(From 11.10.2007)
NAMRUP UNIT
Shri D.Mahanta, General Manager (HR)
Shri N.K.Saha, General Manager (Unit)
Shri Vinod Gaur, General Manager (Marketing)
Shri M.A. Manann, Dy. General Manager (MM)
Shri P.Malakar, Dy. General Manager (Electricals)
Shri P.Dutta, Dy. General Manager (Management Services)
STATUTORY AUDITORS
M/s. Kanoi Associates, Dibrugarh
COST AUDITORS
M/s. Narasimha Murthy & Co.,
Cost Accountants, Hyderabad
Registered Office
“P.O. : Parbatpur, Namrup -786623, District- Dibrugarh (Assam)
Phone : 0374-2500207;Fax : 0374 –2500317
Email : bvfclnam@vsnl.net
Website address: www.bvfcl.com
UNIT
Namrup (Assam)
LEGAL ADVISORS
M/s. Steel & Hadow, Dibrugarh
BANKERS
State Bank of India
UCO Bank
Syndicate Bank
Punjab National Bank
Bank of India
NOTICE OF 6TH ANNUAL GENERAL MEETING OF BVFCL
Notice is hereby given that the 6th Annual General Meeting of the shareholders of
Brahmaputra Valley Fertilizer Corporation Limited will be held on Friday, 8th day of
August, 2008 at 4.30 P.M. at the registered office of the company at Namrup, P.O.:
Parbatpur, District : Dibrugarh (Assam) to consider the audited annual accounts for
the financial year ended 31st March, 2008 alongwith Director’s Report, Auditors
Report, Comments of CAG and remuneration of Statutory Auditors for the financial
year 2008-09 as Ordinary Business, and if thought fit, to pass the following resolution
with or without modification(s) :
ORDINARY BUSINESS :
1. “RESOLVED THAT the Audited Annual Accounts for the financial year ended 31st
March, 2008 alongwith the Director’s Report, Auditors’ Report and the
Comments of the C & AG thereon are hereby adopted.”
2. “RESOLVED THAT in pursuance of the provisions of Article No. 93(2) of Articles
of Association of the Company, Shri Rajesh Agrawal, Director of the Company be
and is hereby retires and being eligible, offers himself for re-appointment.”
3. “RESOLVED THAT in pursuance of the provisions of Article No. 93(2) of Articles
of Association of the Company, Dr. S.Chandra, Director of the company be and
is hereby retires and being eligible, offers himself for re-appointment.”
4.
“RESOLVED THAT the Board / Audit Committee be and is hereby authorised to
fix such remuneration as it may decide for the Statutory Auditors to be
appointed by Comptroller and Auditor General of India for the year 2008-09 and
the Statutory Auditors shall hold office from the conclusion of this Annual
General Meeting till the conclusion of next Annual general Meeting.”
By Order of the Board of Directors
Place : Namrup
Date : 4th August, 2008
Sd/R.K.Gupta
Company Secretary
Note : A member entitled to attend and vote is also entitled to appoint a proxy to attend
and vote instead of himself and the proxy need not be a member of the Company.
DIRECTORS’ REPORT
To,
The Members,
Brahmaputra Valley Fertilizer Corporation Ltd.
Dear Members,
Your Directors have great pleasure in presenting the Sixth Annual Report of
the Company together with the audited statement of annual accounts for the
financial year ended 31st march, 2008, the report of Statutory and Govt.
Auditors thereon.
1.
REVIEW OF FINANCIAL PERFORMANCE:
The financial performance of the Company during the year under review vis-avis previous year are stated as under :
Particulars
(Rs. in Crores)
For the year For the year
ended
ended
31.03.2008
31.03.2007
(+) 6.87
(+) 40.28 (*)
Profit (+) / Loss (-) before Dep.
& Int.
Depreciation
39.51
Interest
71.85
Profit (+) / Loss (-) before prior
(-)104.49
period / extra-ordinary items
adjustments
Prior Period Adjustments
(-) 1.35
Net Profit (+) / Loss (-) after
(-) 105.84
prior period / extra-ordinary
items adjustments
(*) Including Rs. 40.40 crores subsidy arrears pertaining
received from GOI.
38.73
61.37
(-) 59.82
(-) 2.55
(-) 62.37
to earlier years
During the year, company has recorded cash profit of Rs. 6.87 crores and
recorded highest urea production since formation of BVFCL. The production of
urea during the year was 329977 MT (Namrup –II - 77967 MT and NamrupIII 2521010 MT) against 308303 MT (Namrup-II - 61001 MT and Namrup –
III - 247302 MT ) of urea in the previous year increased by 7%.
2. MANAGEMENT DISCUSSION & ANALYSIS REPORT
A Report on Management Discussion and Analysis, forming part of this
report, inter-alia deals with the operations and future prospects of the
company is enclosed as Annexure to Directors’ report.
3. CORPORATE GOVERNANCE
During the year, company has adopted Guidelines on Corporate
Governance for CPSUs, 2007 issued by the Department of Public
Enterprises. A report on Corporate Governance is enclosed as Annexure to
Directors’ report.
4. BOARD OF DIRECTORS’
During the period under review, the following changes took place in the
Board of Directors:

Shri S.C.Dhawan, Chairman and Managing Director of the
Company retired on attaining the age of superannuation on
31.01.2008. In his place, Shri U.S.Jha, CMD, RCFL was assigned
the additional charge of CMD, BVFCL for the period of six months
by the Govt. of India. Shri U.S.Jha took over the charges of CMD,
BVFCL from Shri S.C.Dhawan on 7.02.2008.

Shri Rajesh Agarwal, Deputy Secretary (F), Department of
Fertilizers has been appointed as part time official Director on the
Board of BVFCL in place of Shri Deepak Singhal, Joint Secretary
(F), Department of Fertilizers.

Shri Nisith Kumar Ghosh has joined the Company as Director
(Finance) w.e.f. 7.09.2007.
Shri J.C.Duarah, Director (Production) retired on attaining the age
of superannuation on 30.06.2008.

Board of Directors place on record its sincere appreciation for the
contributions made by the outgoing Directors.
5. DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956 with respect to the Directors’ Responsibility Statement, the Directors
hereby confirm :
(A) That in the preparation of annual accounts, the applicable accounting
standards have been followed along with proper explanation relating
to material departures.
(B) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company as at 31st March 2008 and of profit
and loss account for the period ended 31st March, 2008.
(C) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
(D) That the Directors have prepared the Annual Accounts on a going
concern basis.
6.
AUDITORS :
M/s. Kanoi Associates, Chartered Accountants, Central Chowkidinghee,
Dibrugarh has been appointed as Statutory Auditors of the Company by
the Comptroller & Auditor General of India to audit the accounts of the
Company for the financial year 2007-08.
7.
AUDITORS’ REPORT :
The management replies on the observations of Statutory Auditors’ report
and the comments of the Comptroller & Auditor General of India on the
accounts of the company for the year ended 31st march, 2008 are
enclosed as Annexure to the Director’s Report.
8.
COST AUDIT:
In compliance of the provisions of Section 233B of the Companies Act,
1956, the Board of Directors of your company have appointed M/s.
Narasimha Murthy & Co., Cost Accountants, Hyderabad to carry out the
audit of cost accounts of the Company for the financial year ending 31 st
March, 2008.
9.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO.
The Disclosure in terms of Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988 in respect of conservation of
energy, technology absorption and foreign exchange earning and outgo
are as per annexure and form part of this report.
10. PROGRESSIVE USE OF OFFICIAL LANGUAGE:
All instructions issued by the Official Language Department, Government
of India for complying with the rules of 1976 of Official Language Act,
1963 are being followed.
11. PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A):
There is no employee in the company covered under Section 217(2A) of
the Companies Act.1956.
12. ACKNOWLEDGEMENT:
The Board of Directors acknowledges the valuable guidance and
continued support extended by the various Departments and Ministries of
the Govt. of India viz. Ministry of Chemicals & Fertilizers, Department of
Fertilizers, Fertilizer Industry Co-ordination Committee (FICC), Ministry of
Agriculture, Indian Council for Agricultural Research, Ministry of
Petroleum & Natural Gas, Ministry of Railways, Ministry of Finance,
Ministry of Home, Department of Public Enterprises, Statutory Auditors,
Cost Auditors, Comptroller & Auditor General of India, Assam Gas
Company Limited, Oil India Limited, valued Dealers and Customers.
The Board of Directors places on record its sincere appreciation to the
State Government of National Capital Territory, Uttar Pradesh, Assam,
Bihar, West Bengal, Jharkhand and the Reserve Bank of India, Punjab
National Bank, UCO Bank, State Bank of Patiala, Syndicate Bank and Bank
of India for their valued co-operation.
The Board of Directors also acknowledges and appreciates the efforts put
in by the employees of the Corporation for improving production
performance of Namrup-II and III plants.
For and on behalf of the Board
Sd/U.S.Jha
Chairman & Managing Director
Date : 4.08.2008
Place : Namrup
ANNEXURE TO DIRECTOR’S REPORT
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The predecessor in interest of BVFCL i.e., HFCL’s and FCI’s Namrup Unit started
nourishing the soils of Eastern India since 1969. It continued till date to be the major
source of Urea Fertilizer to all 7 (seven) states of North-east India and parts of West
Bengal and old Bihar. The company even supplied urea to complex manufacturers as far
as Chennai and Goa and exported urea to Nepal. Its ‘Mukta’ brand is a household name in
the Eastern India and the same is a reputed brand image in terms of quality of prill. In
spite harsh weather condition (excessive rain), abnormal situation and remoteness from
the mainland, the company is striving through dedication of its employees and active
support from the Government.
1.
Overview:
Its Namrup-III Plant produced 93.34% of its capacity and had there been no gas
shortages it could have achieved higher capacity utilization. However Namrup-III could
achieve highest annual production since formation of BVFCL. The overall specific energy
consumption for Namrup-III was 12.52 Gcal/MT of urea during the year, which was also
lowest since formation of the company. Only one stream of Namrup-II was in operation
due to gas limitation from the supplier M/s Oil India Limited. Performance of Namrup-II
remained sub-optimal due to breakdown of equipments. Unreliability in supply of Natural
Gas also led to lower production. There have been restrictions in plant load and
production stoppages due to Natural Gas limitations from M/s Oil India Ltd caused due to
miscreant activities. Besides, the production loss, these sudden tripping of plants creates
thermal shock in old equipments/ machineries which lead to further breakdowns of
machineries.
Your directors are regularly following up at different levels with Oil India Ltd and
concerned ministries for steady supply of Natural Gas. A tripartite meeting was held with
Oil India Ltd. & ONGC on 8th November 2007 to discuss the gap in supply of natural gas
to BVFCL. M/s ONGC expressed their inability to supply gas to BVFCL. M/s Oil India Ltd
assured supply of 1.72 MMSCMD gas to BVFCL in winter months and 1.60 MMSCMD in
summer months only due to supply constrains (eg Tea Gardens). They were noncommittal on supplying gas beyond 1.72 MMSCMD.
The existing plants operating in Namrup are of vintage design and belongs to the genre of
low capacity and high energy consumption. A proposal was initiated in 2006 to set up a
new brown field Ammonia-Urea Plant which would have replaced the existing plants and
increased the production from 3.9 Lakh MT of Urea to around 8.5 Lakh MT of urea per
annum consuming same amount of gas as on today. An alternate proposal for retrofitting/
renovating the existing plants for capacity augmentation and lowering of energy
consumption also remains under consideration.
Pending any decision on the above proposals, maintenance of the existing plants is
necessary for continuation of production for another 4-5 years. There is shortage of
spares for the equipments leading to frequent breakdowns and no reliability of the
equipments. Being low capacity with high energy consumption, the revenue generated is
just enough to meet running expenses. For investment in renovation and replacement,
the company requires to borrow money from the Government. But due to high interest
rates of such loans, the company’s balance sheet becomes negative. The company is
avoiding further loans in view of the liability of interest which is already around Rs.188
crores. However, unless some critical equipments are attended, the capacity utilization of
Namrup-III will further go down. The company in 2007-08, has borrowed Rs.7.47 crores
plan loan and Rs.20.96 crores non-plan loan from Government at an interest rate of
11.5%. Rs.20.96 crores will be spent to attend two critical limitations i.e. Retrofitting
Synthesis Gas Turbine and Replacement of Synthesis Converter Baskets of Namrup-III.
Similarly, Namrup-II also requires investment for the equipments and systems which were
not revamped. In 2008-09, the Government is willing to give a plan loan of Rs.19.98
crores at an interest rate of 11.5%. Thus during 2008-09, about 40 crores will be
committed for investment which will be financed from these loans. Since the loans carry
high rate of interest and the company is already carrying liability of huge interest, a
request has been made to the Government to convert these loans into Grant-in-Aid to
make operations profitable.
2. Industry Structure & Government policy:
Fertilizers have been a major contributing factor to the growth of Indian
agriculture over the last five decades. The overall fertilizer consumption in the
country has recorded phenomenal growth in last few years. The consumption of
urea which was 19.8 million tones in 2003-04 has risen to above 26 million tones
in 2007-08. With indigenous fertilizer production stagnating, the imports of
finished fertilizers have increased significantly in the past four years. No major
investment has taken place for creation of additional fertilizer capacities in the
country for more than a decade. The current supply demand gap is about 10
million tones of fertilizer which is likely to increase further and cross 16 million
tones by the end of the 11th Five Year Plan. Addition to domestic capacity by way
of new projects and through revamp, retrofit etc of existing urea plants is urgently
needed. The investment policy to encourage capacity addition with reasonable
rate of return on investment is required from the Government.
The Government of India has approved the New Pricing Scheme (NPS) stage – III
for Urea Units in the country. Under NPS-III notification concession rate of Urea
produced from Namrup-III has been reduced by Rs.488 per MT w.e.f 01.10.2006
from the existing rate of Rs.6097 per MT of Urea under NPS-II. The decrease in
concession rate is mainly due to non-recognition of Capital Expenditure incurred
beyond March 2003 in Namrup Revamp Project pertaining to Namrup-III. This will
lead to huge recovery to the tune of Rs.15 crores for past periods. With the
implementation of NPS notified price even after achieving the target production for
Namrup-III, the company will incur cash loss. This will further deteriorate financial
position of the company. The company will not be able to generate even the
working capital for operation of the plants. A request has been made to the
Department of Fertilizers to recognize existing concession rate of Rs.6097 per MT
of Urea (as per NPS-II) for Namrup-III till approval of the Cabinet Note for Second
Revised Project Cost & Time of Namrup Revamp Project.
3.
Production Review:
The Company produced 3,29,977 MT of Urea during the year. Urea production
from Namrup-III was 2,52,010 MT. This is the highest annual urea production so
far achieved since the formation of BVFCL and an increase of 7.03% over previous
year’s production. There was 27% increase in production of Urea from Namrup-II
against preceding years. The production was 77,967 MT of Urea for 2007-08.
One of the constraints for higher production was lower availability of gas which
resulted in production loss of 22,929 MT of Urea during the year. Apart from gas
shortage, performance of Namrup-II suffered mainly due to repeated failures in
Electrical Systems, Reformed Gas Boiler tube sheet failure, Flue Gas Boiler
leakage, tube leakage in 3rd Superheater in Waste Heat Recovery Section.
Production from Namrup-II ammonia plant was restricted due to low efficiency of
condensers of Process Refrigeration Compressor. Action for Condenser tube
bundles replacement have been taken. Namrup-III production was limited due to
high vibration in EMG turbine of Synthesis Gas Compressor, high axial
displacement in HP barrel of Process Air Compressor.
During the year the company produced 19.34 MT of Bio-fertilizer.
4.
MARKETING REVIEW
During the year under review, sale of urea increased from 314670 MTs in 2006-07
to 333,191 MTs in 2007-08 including 4894 MT urea export to Nepal. Sale of Biofertilizers also increased from 4.80 MT in 2006-07 to 15.15 MT in 2007-08.
Company has started trading of seeds and sold 718 MT of paddy seeds valued Rs.
1.04 crores and 595 MT of wheat seeds valued 1.05 crores with the total turnover
of Rs. 2.90 crores. To reduce the marketing cost, various steps were taken such
as freight rationalization, introduction of two-point rakes & mini-rakes, sales
through private godowns and rationalization of rebates through private godowns
and rationalization of rebates were also continued this year and made operative in
the marketing territory. Company is also exploring the possibility of trading
Pesticides, Organic manure, Micro nutrients and Fertilizers viz. Urea, MOP, SSP,
etc. from other companies.
5. FUTURE OUTLOOK AND INITIATIVE FOR THE CURRENT YEAR.
The company has to maximize urea production consuming minimum energy. Weak
spots hindering sustained production has been identified and efforts are being
made to overcome them, as stated below:
1. EMG Turbine of Synthesis Gas Compressor of Ammonia-III: The plant load
remains restricted due to high vibration in EMG Turbine. As short term solution,
rotor of EMG turbine will be replaced with reconditioned rotor in annual
shutdown in 2008-09. Retrofitting of EMG Turbine with new designed rotor
along with other internals is the long term solution. As rotor of existing design is
no more manufactured, a new designed rotor has to be procured and retrofitted
to existing turbine. Order for new rotor is under processing.
2. Synthesis reactor catalyst basket (S-100) of Namrup-III is very old, presently
leaking with catalyst coming out. Present basket requires to be replaced with
new energy efficient S-200 basket. Action has been initiated for its
procurement.
3. Replacement of 1st compartment of RG Boiler of Namrup-II
4. Renovation of Electrical System: Procurement action of spares have been
initiated.
5. Overhauling of Compressors and replacement of intercoolers, vacuum systems
etc. of Namrup-III
6. Repair of Cooling Tower Pumps and renovation of Cooling Tower of Namrup-III.
7. Replacement of Primary Reformer catalyst of Namrup-III.
8. Condensers of Process Refrigeration Compressor: Tube bundles require
replacement.
The company plans to implement further energy conservation schemes in future.
The Plant performance is adversely affected due to shortage of technically
qualified and competent manpower in almost all the disciplines of the company.
Difficulties has been experienced in meeting the requirement of in-house technical
expertise in remote place like Namrup due to non-availability of technically
competent outside agencies and reluctance on the part of good contractors to
come to Namrup. Efforts are being made to employ qualified, competent and
experienced persons from outside. Management has taken suitable actions for
engagement of retired employees of Fertilizer PSUs on contract basis.
VIABILITY PLAN
Company has submitted viability proposal prepared by PDIL to the Department of
Fertilizers for submission to the Board for Reconstruction of Public Sector
Enterprises (BRPSE). The proposal carries following waiver, reliefs, dispensation
and concessions to the BVFCL :

Conversion of Loan portion (Rs. 317.77 crores) of total revamp project
cost (Rs. 635.53 crores) into Equity. ;

Waiver of earlier loan and interest (Rs. 248.30 crores)

Continuation of special dispensation in pricing mechanism under New
Pricing Scheme stage – III (NPS-III) for Namrup- III as provided in NPS
–II and recognition of effect of capitalization made beyond 2002-03
under Namrup Revamp Scheme.

Pricing of Namrup-II as per the erstwhile Retention Price Scheme (RPS)

De-rating of production capacity for Namrup-II to at least 50% of rated
capacity due to non-availability of gas presently.

6.
It was also recommended to BRPSE for a new Brown Field Plant for
better utilization of natural resources in the long run.
IT ADOPTION / UP-GRADATION
The company has progressively gone IT savvy and LAN with broad-band Internet
facilities is now available at 50 work stations. Not much could be done during the
bygone year in terms of investment in IT to upgrade or augment resources.
Company desires to make progressive and pragmatic investment for upgrading the
existing IT infrastructure aiming at an Enterprise Level IT solution in the near
future. Guidance of RCF’s IT Experts has been sought to make detailed study and
recommend action plan considering company’s IT expansion goal. Company’s
website is regularly updated and all provisions of the Right to Information Act and
Corporate Governance have been kept uploaded.
7.
STATUS OF ISO 9001 & 14001 CERTIFICATE
Namrup-III plants of the company have been Quality Management System (QMS)
ISO 9001:2000 and Environment System Management (EMS) ISO 14001:1996
compliant. Both the certificates are expired in April, 2008 and May, 2008
respectively. The re-certification audits are being planned so that Namrup –III
plants remain ISO compliant, both in QMS (ISO 9001:2000) and EMS (ISO
14001:2004).
8.
INTERNAL CONTROL SYSTEM:
The company has adequate internal control system in the respective areas of
Finance & Accounts supported by Internal Audit and regular management reviews.
In the accounting, internal control is exercised right from the preparation of
vouchers where each voucher is checked and countersigned by respective senior
officers as per delegation of power. The daily cashbook balance on manual basis is
physically counted and checked with the book. Similarly, all bank accounts are also
reconciled periodically. Internal control is also exercised for accounting where
vouchers including journal vouchers entered into the system are checked and
validated before those are accounted for. Every proposal for purchase/works
contract or others having monetary involvement are examined as per policy and
procedures and reviewed by a committee in many cases considering materiality of
the quantum before taking appropriate decision. System is reviewed from time to
time and action taken for improvement. Internal Audit is conducted by the outside
qualified agency supported by the in-house internal audit cell. Internal Audit
examines documents / records / procedures and submit periodical reports for
compliance. The Internal Audit Reports and follow up actions thereon are regularly
placed before the Audit Committee. Audit Committee regularly reviews the internal
audit and adequacy of internal control.
9.
HUMAN RESOURCE DEVELOPMENT
A. MANPOWER POSITION:
The total manpower status of the Corporation as on 31st March 2008 was
1248. Reservation of SC/ST/OBC/Ex- Serviceman and Physically handicapped
categories in the service are being maintained as per the government
directives. The manpower position as on 31.03.2008 was as under: Categories
1. Scheduled Caste
2. Scheduled Tribe
3. Ex-Servicemen
4. Physically Handicapped
5. OBC
6. General
B. TRAINING :
Nos.
90
- 181
17
5
- 579
- 376
1248
-
%
7.21
14.50
1.36
0.41
46.39
30.13
100.00
During the year ended on 31st March 2008, total 22 training programme both
external and internal were conducted. Employees participated in the training
programmes are as under :
I. Internal Training Programmes
Subjects
Energy Management
Demo on energy Audit & Energy
Saving Schemes
Seminar
cum-demo
on
Instrumentation
Introduction Training to Management
Trainees
Introduction Training to OT/TTs
Seminar on Energy Conservation
Training for fire fighting equipments
Programme
on
Process
Intrumentation
Programme on productivity
Programme on productivity
Total
Participants
Executives
NonExecutives
21
27
27
49
45
169
82
24
53
25
35
45
264
(*) Marketing Department has conducted training programme for 25 nos. of
Dealer
II.
External (outside the organization) Training Programmes
Department
Subjects
Participants
Executives
Fire
Mechanical
Production
Personnel
Mechanical
Training
19th External Sub-Officers Course
International Conference on Fertilizer
Technology
Disciplinary proceedings for Officers
of PSUs
Vibration analysis In-situ balancing
Direct Trainers Skills
Total
1
3
1
2
1
7
C. INDUSTRIAL RELATIONS REPORT:
The Industrial Relations Scenario during the year was by and large peaceful.
D. VOLUNTARY RETIREMENT
During the year, company has re-introduced Voluntary Retirement Scheme
(VRS). Total 9 employees were separated under the above scheme during the
year ended on 31st March, 2008.
E. ACTIVITIES OF THE COMPANY FOR WELFARE AND ADVANCEMENT OF
SCHEDULED CASTES (SCs), SCHEDULED TRIBES (STs) AND OTHER
BACKWARD CLASSES (OBCs)
The company has been following the presidential directive and guidelines/
orders issued by the Government of India from time to time in the matter of
reservation in services for SCs, STs and OBCs. Candidates belonging to SC and
ST are fully exempted from payment of fee applying for any post in the
corporation. SC/ ST candidates are paid TA for appearing in both the written
test and interview for recruitment of any post in the company.
The Corporation is having one SC/ST/OBC Cell under one Liaison Officer. The
Liaison Officer initiates necessary action to settle the grievances of the
employees belonging to SC/ ST community on priority basis and in
consultation with the SC/ST Associations. Corporation is providing company
accommodation to all its employees including SC/ST employees.
All the welfare facilities of the corporation also extended to the employees of
SC/ST community alongwith other employees. The company do not received
any allocation of fund under tribal sub-plan from the Govt. of India.
The Annual statement in the prescribed format showing the representation of
SCs, STs and OBCs as on 1.01.2008 and No. of appointments made during the
preceding calendar year i.e. 2006-2007 as furnished to the Govt. is enclosed
as Annexure to the Directors’ Report.
10.
NonExecutives
VIGILANCE
The vigilance is considered to be an integral pat of the management function.
The Chief Vigilance Officer provides direction, guidance and supervision over the
vigilance efforts of the Corporation. One Assistant Vigilance Officer and one
Senior Vigilance Officers are posted at Namrup Corporate Office.
1
The Corporation has adopted preventive vigilance as the main theme. The stress
is on transparency and accountability in the working of the corporation. Vigilance
Notice Boards have been installed in all the offices including liaison offices of
BVFCL, displaying the address and telephone numbers of the CMD, Chief
Vigilance Officer and Central Vigilance Commission, who can be approached for
complaints of corruption.
‘Agreed List of suspected officers’ and List of Officers of Doubtful Integrity’ for
the year 2008 were prepared in time and a close watch is being kept on the
listed officers. System of rotation of employees posted on sensitive posts for
more than five years is being followed. Surprise and regular inspections (22 Nos)
were carried out during the financial year 2007-08. On the basis of findings of
Inspections, important suggestions were given to the Management for remedial
action. 9 complaints / cases detected through inspection were taken up for
investigation. Out of these, 8 cases have been completed and disposed off.
Remaining one case is under investigation. During the year, two departmental
proceedings were initiated for major penalty and two for minor penalty. Out of a
total of 2 major penalty proceedings, one is pending with the DOF for final
order. The other major penalty proceedings is pending against four employees.
This is also pending with the DOF. In case of minor penalty proceedings,
‘Censure’ was awarded to five delinquent officials.
To sensitize the employees and the public about the evil consequences of
corruption, vigilance awareness week was celebrated by BVFCL from 12 to 16
November, 2007. During the week, group discussions, slogan competition and
seminar were organised by the Vigilance Department of BVFCL to highlight the
harmful effects of corruption in addition to pledge ceremonies. Pamphlets
containing (i) the name, address and phone nos. CMD, CVO and CVC; (ii)
Government Resolution on Public interest disclosure and protection of informer
were distributed were amongst the public during the vigilance awareness week.
11.
KEY OPPORTUNITIES
a. Scope for marketing of urea to complex fertilizer manufacturers and export.
b. Scope for diversification into hydro-carbon based chemicals and generation of
power.
c. Scope for eco-friendly agriculture based business development.
12.
KEY THREATS:
1. Competition from other urea manufacturing companies having lower energy
consumption and lower cost of production.
2. Threat of closure of production facilities of company due to high cost of
production and economic non-viability.
3. Low urea consumption growth rate in the North Eastern States.
4. Uncertainty of steady and continual supply of Natural Gas by the supplier
M/s. Oil India Limited. Against requirement of 1.95 MMSCMD of NG, M/s. Oil
India Limited has been able to supply only around 1.72 MMSCMD.
5. Disturbed socio-political scenario – an impediment to economic development.
13.
RISK MANAGEMENT:
The company had laid down Risk Management Policy for Assessment &
Minimisation procedures to be reviewed by the Board of Directors on quarterly
basis. The identified risks were grouped under various types viz. Feed/Fuel,
Plant Operations, Utilities, Environment, Project implementation, Regulatory,
Business competition, Market, Assets, Finance, Human Resources, Information
Technology, Legal and Internal Control risks. The above policy has been
circulated to all the employees of the company. The workshop/ seminars are
being organised at every level of employees to make them aware and sensitize
about the risks.
14.
MOU RATING:
Company has started signing MOU with the Ministry of Chemicals and Fertilizers
since 2004-05. For the financial year 2007-08, “average” rating is expected from
the Department of Public Enterprises.
ANNEXURE TO DIRECTORS’ REPORT
CORPORATE GOVERNANCE
COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate Governance has been a continuous endeavor at BVFCL that cares for
the overall well-being and welfare of all constituent of the system and takes into
account the stakeholders interest at every business decision. The company is
committed to pursue growth by adhering to the highest standards of corporate
governance. The primary objective is to create and adhere to a corporate culture
of consciousness, transparency and openness in creating awareness of corporate
vision and spark dynamism and entrepreneurship at all levels. Company believes
that governance must balance individual interest with corporate goals and
operate within accepted norms of propriety, equity, fair play and a sense of
justice. At BVFCL, accountability and transparency are key drivers to improve
decision making and rationale behind such decisions to create stakeholders
confidence.
I. BOARD OF DIRECTORS:
A.
CONSTITUTION OF BOARD
Pursuant to the provisions of Section 617 of the Companies Act, 1956, BVFCL is
a “Government Company” holding 100% of its paid up share capital by the
President of India. Members of the Board are appointed by the President of
India.
B.
RESPONSIBILITIES
The responsibilities of Board is to oversee the company’s strategic policies,
review and monitor corporate performance, ensure regulatory compliance and
reviewing the risk minimizing efforts of Executive Management in the operation
of Company.
C.
BOARD MEETINGS.
The meetings of the Board are normally held at the registered office of the
company at Namrup but during the year, due to pre-occupation of Govt.
Directors, the Board meeting were held at the Liaison Office of the BVFCL/ RCFL
at Noida/ New Delhi. It is scheduled well in advance. The Company Secretary, in
consultation with Director (Finance) / Chairman and Managing Director, send
notice of every Board meeting in writing to each Director of the company.
All the Departments in the Company communicates to the Company Secretary
well in advance with regard to matters requiring approval of the Board / Audit
Committee of the company to enable him to include the same in the agenda for
the Board/ Audit Committee Meeting(s).
The Board agenda are circulated to the Directors well in advance. The members
of the Board are entitled to access all the information of the company and are
free to recommend inclusion of any matter in agenda for discussion. In case of
need, the senior management is invited to attend the Board Meetings to provide
additional inputs relating to the items being discussed and / or giving
presentation to the Board.
During the financial year 2007-08, four meetings of Board of Directors were held
for transaction of the business of the Company.
Board Meeting No.
Date
39
40
41
42
8.06.2007
25.09.2007
14.12.2007
10.03.2008
No. of Directors
attended
4
5
5
5
D. COMPOSITION OF BOARD
There are four Directors on the Board of the Company at present, comprises Shri
U.S.Jha, Chairman and Managing Director, Shri N.K.Ghosh, Director (Finance)
Dr. S. Chandra, Joint Advisor (Fertilizer), DOF and Shri Rajesh Agrawal, Deputy
Secretary (Fertilizer), DOF.
The details of composition and category of Directors, attendance of each
Director at the Board Meetings and the last AGM, directorship and membership
in committees of other companies for each director of the company are given
below.
Name S/Shri
Attendance particulars
Details of Directorship and
committee members/ chairman
Board
Last AGM
Details
of Details
of
meetings
Held
on Directorships in committee
(from
14.09.2007
other
public memberships
1.04.07 to
limited
and committee
31.03.08)
companies
Chairmanship
Functional Directors
S.C.Dhawan, CMD (Upto 3
31.01.2008) (*)
Present
FAI
Chairman of Audit
Committee
Upto 19.12.2006.
Member
Audit
Committee
Shri U.S.Jha, CMD (from 1
7.02.2008) (*)1
N.A.
Shri N.K.Ghosh,(**)
3
Director (Finance)
J.C.Duarah (***)
4
Director (Production)
Part Time Official Directors
Shri Deepak Singhal, Joint 03
Secretary (F), DOF(****)
Present
RCFL, FAI,
Indian Potash
Ltd., RRCFL
Nil
Present
Nil
Absent
 The
Fertilizer Member
Corporation of Committee
India Ltd.
 Hindustan
Observer of Audit
Committee
Nil
Audit
Fertilizer
Corporation Ltd.
 KRIBHCO
 Madras
Fertilizer Ltd.
Dr. S. Chandra
4
Joint Advisor(F), DOF
Shri Rajesh Agarwal, Dy. 1
Secretary
(F),
DOF(*****)
(*)
(*)1
(**)
(***)
(****)
(*****)
Absent
-
Chairman of Audit
Committee
N.A.
 HFCL
 FACT
Member
Committee
Superannuated w.e.f. 31.01.2008.
Take over the additional charge of CMD, BVFCL w.e.f. 7.02.2008
Joined BVFCL on 7.09.2007
Superannuated on 30.06.2008
Ceased from Directorship w.e.f.10.03.2008.
Appointed Director on the Board w.e.f. 10.03.2008
No Director of the company is a member in more than 10 (ten) committee or is
a Chairman of more than five (5) committees across all companies in which he is
a Director.
For the appointment of Part-time non-official (Independent) Directors on the
Board, company has taken up the matter with the Ministry of Chemicals and
Fertilizers as per the Govt. Policy contained in DPE OM No. 18(6)/2000 – GM
dated 26.11.2001.
In the absence of any Part-time non-official (Independent) Director on the
Board, Dr. S.Chandra, Joint Advisor (F), Department of Fertilizers was appointed
Chairman of Audit Committee.
E. CODE OF CONDUCT
Board has approved a code of conduct for all members of the Board and Senior
Management Executives of the company. The code of conduct has been posted
on the company’s web site www.bvfcl.com.
All the members of the Board and Senior Management Executives shall affirm
compliance with the code on annual basis. Declaration to this effect is enclosed
at Annexure to the Directors’ Report.
F. INFORMATION PLACED BEFORE THE BOARD OF DIRECTORS
Executive Management shall present following information before the Board of
Directors, either as part of the agenda papers or are tabled/ presented during
the course of Board meeting :




Annual operating plans and budgets and any updates.
Capital budgets and any updates.
Quarterly results for the company and its operating divisions or business
segments.
Minutes of meetings of audit committee and other committees of the
Board.
Audit











The information on recruitment and remuneration of senior officers just
below the board level, including appointment or removal of Chief
Financial Officer and the Company Secretary.
Shows cause, demand, prosecution notices and penalty notices which are
materially important.
Fatal or serious accidents, dangerous occurrences, any material effluent
or pollution problems.
Any material default in financial obligations to and by the company or
substantial non-payment for goods sold by the company.
Any issue, which involves possible public or product liability claims of
substantial nature, including any judgement or order which, may have
passed strictures on the conduct of the company or taken an adverse
view regarding another enterprise that can have negative implications on
the company.
Details of any joint venture or collaboration agreement.
Transactions that involve substantial payment towards goodwill, brand
equity, or intellectual property.
Significant labour problems and their proposed solutions. Any significant
development in human resources/industrial relations front like signing of
wage agreement, implementation of Voluntary Retirement Scheme etc.
Sale of material nature, of investments, subsidiaries, assets, which is not
in normal course of business.
Quarterly details of foreign exchange exposures and the steps taken by
management to limit the risks of adverse exchange rate movement, if
material.
Non-compliance of any regulatory, statutory or listing requirements and
shareholders service such as non-payment of dividend, delay in share
transfer etc.
G. DISCLOSURES :
1. No related parties transactions have been executed by the
company during the financial year 2007-08.
2. Company is complying all the applicable statutory liabilities and the
guidelines issued by the Govt. from time to time.
3. Company has adequate mechanism of whistle blowing policy in the
organisation and affirms that no personnel have been denied
access to the Audit Committee.
4. All the Presidential Directives issued by the Central Govt. have
been complied with, by the company.
5. No items of expenditure debited in the books of accounts, which
are not for the purpose of the business.
6. No expenditure incurred which are personal in nature and incurred
for the Board of Directors and top Management.
7. Details of Administrative and Office expenses as a percentage of
total expenses vis – a vis financial expenses and reasons for
increase are as under :
2007-08
%
Total
Exp.
Administrative
0.74
of
2006-07
% of Total
Finance
Exp.(Int.)
% of Total
Exp.
% of Total
Finance
Exp.(Int.)
Remarks
3.91
0.72
4.28
The increase in
Office Exp.
0.02
0.10
0.03
0.15
exp. is very
nominal, due to
inflationary
effect.
II. AUDIT COMMITTEE:
During the year, Audit Committee has considered draft annual accounts for the
financial year ending 31st March, 2008 before recommending the same for the
approval of Board of Directors. At present, Audit Committee comprises three
members i.e. Shri U.S.Jha, Chairman and Managing Director, Dr. S. Chandra,
Joint Advisor (Fertilizer), DOF, Shri Rajesh Agrawal, Deputy Secretary (Fertilizer),
DOF.
A. TERMS OF REFERENCE FOR AUDIT COMMITTEE OF BVFCL
The company agrees that the role of the audit committee shall include the
following in addition to the role prescribed under Section 292A of the
Companies Act, 1956 :
Oversight of the company’s financial reporting process and the
disclosure of its financial information to ensure that the financial
statement is correct, sufficient and credible.
2. Recommending the audit fee of statutory auditors / Internal Auditors /
Cost Auditors and also approval of payment for any other services.
3. Reviewing the annual financial statements before submission to the
Board, focusing primarily on;
1.







Any changes in accounting policies and practices.
Major transactions of financial irregularities based on exercise of
judgement by management.
Review of draft audit report.
Significant adjustments arising out of audit.
The going concern assumption.
Compliance with Accounting Standards of ICAI.
Any related party transactions i.e. transactions of the company
of material nature, with promoters or the management, their
subsidiaries or relatives etc. that may have potential conflict
with the interests of the company at large.
Reviewing with the management, Statutory Auditors and Internal
Auditors, and the adequacy of internal control systems.
5. Reviewing the adequacy of internal audit function, including the
structure of the internal audit department, staffing and seniority of the
official heading the department, reporting structure coverage and
frequency of internal audit.
6. Discussion with internal auditors any significant findings and follow up
thereon.
7. Reviewing the findings of any internal audit by the internal auditors into
matters where there is suspected fraud or irregularity or a failure of
internal control systems of a material nature and reporting the matter to
the board.
4.
8.
9.
Reviewing the company’s financial and risk management policies.
To look into the reasons for substantial defaults in the payment to the
shareholders (in case of non payment of declared dividends) and
creditors.
B. ATTENDANCE OF AUDIT COMMITTEE MEETINGS
During the year under review, four Audit Committee Meetings were held.
S.No.
Name of the Directors
1
2.
2
5
6
Shri S.C.Dhawan (*)
Shri U.S.Jha
Dr. S.Chandra
Shri Rajesh Agarwal (*)
Shri Deepak Singhal (**)
No. of Audit Committee
Meeting attended.
3
1
4
1
3
C) Company Secretary of the Company acts as the Secretary to the Audit
Committee.
ANNEXURE TO DIRECTORS’ REPORT
DECLARATION OF COMPLIANCE OF CODE OF CONDUCT
In compliance with the clause 3.4.2 of guidelines of Corporate Governance for CPSUs
issued by the Department of Public Enterprises, Board has approved the Code of
Conduct Rules for all members of Board of Directors and Senior Management of the
company, which has been posted on company’s website www.bvfcl.com.
All the members of Board of Directors and the Senior Management Executives do
hereby affirms the compliance with the above Code of Conduct Rules.
For and on behalf of Board of
Directors of Brahmaputra Valley
Fertilizer Corporation Ltd.
Sd/U.S.Jha
Chairman and Managing Director
Date : 4.08.2008
Place : Namrup
ANNEXURE TO DIRECTORS’ REPORT
FORM A
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF
ENERGY
A.
B.
POWER AND FUEL CONSUMPTION.
1. ELECTRICITY
Unit
2007-08
(a) Purchase:
MWH
Total Unit
1045800
Rs. in Lakh
Total amount
265.45
Rs./
KWH
Average Rate
25.38 (*)
(b) Own Generation:
(i) Through captive Power Plant
MWH
Unit
179624100
Rs. in Lakh
Total Cost
1826.15
Rs./ KWH
Cost / Unit
1.02
2. NATURAL GAS
536443
‘ooo SM3
Quantity
Rs. in Lakh
Total Cost
13485
Rs/ MT
Cost / Unit Production
4087
CONSUMPTION PER UNIT OF PRODUCTION
2006-07
9505990
556.38
5.82
160179400
1712.86
1.07
526367
13247
4297
2006-07
1) Electricity
2) Natural Gas
KWH/ MT
SM3 / MT
547.52
1625
550.385
1707
(* ) Average rate is higher due to fixed minimum demand charges.
FORM B
ANNEXURE TO DIRECTORS’ REPORT
DISCLOSURE OF PARTICULARS WITH REPECT TO TECHNOLOGY
ABSORPTION, FOREIGH EXCHANGE EARNINGS AND OUTGO.
A.
ENERGY CONSERVATION MEASURES :
Following energy conservation schemes have been implemented based on Energy Audit
Report of M/s. TERI, New Delhi.
1. Reduction of Steam to Carbon (S/C) ratio in Primary Reformer of Ammonia –III to 3.8
from 4.1 at present after checking all parameters.
2. Optimization of excess air in primary reformer of Ammonia-III Plant resulting in saving
of energy of 0.07 Gcal/MT of Ammonia.
a) Inefficient / damaged burners leading to consumption of higher combustion
air. The new burner are being procured for replacement.
b) Stop other air ingress sources to Primary Reformer of Ammonia -III Plant.
3. Prevention of Air ingress in Service Boiler & reduction of blow down in service boiler and
auxiliary boiler resulting saving in energy of 0.014 Gcal/ MT of urea.
4. Reduction of the speed of the Benefield solution pump and reduction of pressure drop
across flow control valve resulting saving in energy of 0.016 Gcal/ MT of Ammonia.
5. Reduction of speed of steam turbine of Boiler Feed Water Pump in Ammonia Plant
which would result in reduction of pressure drop across flow control valve. Saving in
energy of 0.04 Gcal/ MT of Ammonia has been achieved when turbine driven pump
is in line.
Following energy conservation measures are under implementation :
1. Prevention of passing of 24 ata steam from vent valve by replacing control valve PIC
23 in Urea –III plant. An expected saving in energy of 0.1 Gcal/MT of urea will be
achieved.
2. Reducing steam consumption and increasing turbine efficiency by maintaining proper
vacuum condition in condensing steam turbines of Compressors and Pumps.
Expected saving in energy of 0.63 Gcal/ MT of ammonia.
3. Lighting System : Replace 40 W FTL with Copper ballast by T5 28 W lamps, replace
125 W mercury lamps with 70 W metal halide lamps, replace 400 W mercury lamps
with 250 W metal halide lamps. Expected saving of Rs. 16.4 lacs per year.
4. Procurement of improved steam traps and changing faulty steam traps. Expected
saving in energy of 0.0007 Gcal/ MT of urea.
5. Replacement of damaged Refractory in Primary Reformer of Ammonia-III Plant.
Expected saving in energy of 0.017 Gcal/ MT of urea.
6. Prevention of air ingress to Auxiliary Super Heater through its dampeners by
overhauling dampeners.
B
Technology Absorption :
1.
2.
3.
The synthesis converter of Namrup –III has S-100 type basket. The present
converter is planned to be retrofitted with latest design S -200 basket
thereby increasing conversion efficiency and reduction in energy
consumption.
EMG Turbine of Ammonia Synthesis Gas Compressor is planned to be
retrofitted with rotor of new design along with internals and electronic
governing system as rotor of existing design is no more manufactured and
has became obsolete.
Control system of both Ammonia-II and III plant have been converted from
pneumatic system to DCS & ESDS systems thereby increasing operational
efficiency and reliability.
4.
C.
D.
E.
The synthesis converter of Namrup –II changed to latest design S -200
converter of Holder Topsoe, resulting increase in conversion efficiency and
reduction in energy consumption.
5. Reciprocating natural gas booster compressor of Namrup –II changed to
latest design centrifugal compressor along with PLC control and electronic
governing system, resulting increase in reliability and reduction in
maintenance cost.
6. The pneumatic control system of all the centrifugal compressors of NamrupII changed to digital control system and electronic governing system,
resulting operational reliability and online monitoring of operation and
diagnosis of problems.
7. A new centrifugal carbamate pump was installed in Namrup-III urea plant,
increasing reliability and smooth operation.
8. The catalyst beds of secondary reformers (Namrup-II & III) changed from
arched type to fixed bed type, resulting breakdowns reduced in catalyst bed
support.
9. The arsenic based acid gas removal system of Namrup-II (CO2 removal) has
been replaced by Giammerco Vetrocoke system. Thus eliminating arsenic
pollution and increase in efficiency of the system.
10. Segmented pollution control system of each plant has been changed to an
integrated system for over all pollution control of the entire complex.
11. For monitoring of air pollution ambient air monitoring systems of both fixed
station type and mobile type have been installed.
12. Reforming tubes of Namrup –III changed from HK40 to Micro alloy to
increase reformation efficiency and more throughput.
13. Trays have introduced in urea reactors of both Namrup-II and III, resulting
saving in steam consumption.
R & D Efforts
: Nil
Benefit derived as result of R & D
: Nil
Foreign Exchange Earning and Outgo :
The Corporation exported 4895 MT of urea to Nepal in 2007-08. At the international market
rate of urea the price of above quantity is equivalent to about $ 1.2 million. Company’s
purchase of foreign goods for spares for the year was Rs. 21.68 lacs.
ANNEXURE TO DIRECTORS’REPORT
REPLIES OF THE MANAGEMENT ON THE COMMENTS/OBSERVATIONS OF THE
STATUTORY AUDITORS ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH,
2008
i) SUBSIDY CLAIMS :
(a) We draw attention to the accounts
regarding the claim of Escalation
Price (Subsidy) amounting to Rs.
355.66 Lacs accounted for on ‘claim
lodged’ basis for the financial year
2007-08. Pending final settlement of
such claims, the effect arising out of
this, if any, is unascertainable, (Refer
Note 10 Schedule 26 )
This is as per accounting policy of the Company
disclosed in Schedule -25, at Serial No. 5. This
has already been adequately disclosed in Notes
Forming Parts of Accounts at Sl. No. 10,
Schedule – 26. The system is consistently
followed by the company since previous years.
ii) FIXED ASSETS :
(a) According to the information and Major portion of Title Deed (2143B-0K-12.5L)
explanations given to us, the made in the name of BVFCL. For the rest action
Company possesses land measuring is in process.
840.66 acres, out of which patta for
131.02 acres are yet to be received.
Further, all the lands are required to
be mutated in the name of the
Company.
(b) Further,
the
leasehold
land For renewal of lease, prayer has been made to
measuring 1B-2K-7L is also required Govt. which is in process.
to be renewed.
(c) Refer Note 14 of Schedule 26 of the
Notes forming part of the Balance
Sheet, higher rate of depreciation @
6.33% has been charged instead of
5.28% for plant & machinery to keep
parity with the FICC pricing policy as
well as the project feasibility report of
M/s. PDIL which has the effect of
increasing the loss of the year by Rs.
601.50 lakhs and cumulative effect to
the extent of loss of Rs. 1584.13
lakhs from F.Y. 2002-03 onwards.
Charging of Depreciation @ 6.33 % for
Revamped Assets is being followed since
inception of BVFCL. The same has been
adequately disclosed with reasons for such
deviation.
iii) INVENTORIES :
(a) In case of items of Capital Stores and The classification of stores & spares as
Other Stores and Spares ascertained surplus/dead surplus and disposal of such
and declared by the management as inventory is a continuous process. For possible
Surplus or Dead Surplus aggregation
to Rs. 354.22 lacs(Previous Year-Rs.
364.16 Lacs), the extent of possible
loss on disposal of the same has not
been assessed and hence, we are
unable to comment on the adequacy
of the provision kept. However, the
provision on this account as at
31.03.2008 stands at Rs. 229.20 Lacs
(Previous Year-Rs. 237.12 Lacs) on
estimate.
losses on disposal of such inventory adequate
provisions has been made in the account.
Further, if any losses, shall be adjusted in the
year of disposal.
(b) The Company further kept a provision
of Rs. 452.11 Lacs (Previous Year-Rs.
177.25 Lacs) on items identified to
have not moved for more than 20
years amounting to Rs. 695.56 Lacs
(Previous YearRs. 272.69 Lacs)
being 65% thereof.
-Do-
(c) During the year under audit, the
company had written-back provision
for obsolete stores & spares
amounting to Rs. 1.40 Lacs by
crediting
materials
consumption
account for which a provision was
made in earlier year accounts.
Accounting entries were passed to give effect to
the write off of stores & spares, for which
provision was made in the previous year. This is
not a case of written back of provision for
obsolete stores & spares as observed by Audit.
(d) There is a Stock of Slow-moving /
Non-moving Stores & Spares held for
more than 10 years but less than 20
years amounting to Rs. 894.06 Lacs
as at 31.03.2008 on which no
provision for obsolescence has been
made.
Adequate provision for obsolete stores & spares
has been made as deemed necessary for items
not moved for more than 20 years, as a policy of
consistency in the accounts.
(e) Stock of Stores & Spares related to Adequate disclosure has already been made vide
Namrup-I (Ammonia-I) Plant valued item No. 6 of Schedule – 26.
at Rs. 157.38 Lacs has been held by
the Company for which realizable
value has been ascertained at Rs.
67.35 Lacs by an Approved Valuer.
Suitable provision of Rs. 90.03 Lacs
has been kept in the accounts (Refer
item No.6 of Schedule-26).
(f) With regard to the stock of Capital
Stores and other Stores & Spares the
management has furnished the
following information:
Moving
(within
the
year)
No comments.
.
576.98 Lacs (Previous Year-Rs.
493.85 Lacs)
Slow-moving (between 1 & 3 yrs).
357.77 Lacs (Previous Year-Rs.
640.32 Lacs)
Non-moving (3 yrs. and above)
3196.10 Lacs (Previous Year-Rs.
3043.71 Lacs)
(g) The Company has further informed us
that stores directly related to NamrupI, II and III were identified and
valued at Rs. 2740.19 Lacs (Previous
Year-Rs. 2827.44 Lacs). The age-wise
break-up is as under:
Moved
upto
3
year
459.99 Lacs (Previous YearRs. 635.87 Lacs)
Moved within 3 yrs. To 10 yrs.
714.13 Lacs (Previous YearRs. 635.17 Lacs)
Moved within 10 yrs. To 20 yrs.
894.06 Lacs (Previous YearRs. 1256.86 Lacs)
Not moved for more than 20 yrs.
672.01 Lacs (Previous YearRs. 299.54 Lacs)
iv)
No comments.
CURRENT LIABILITIES-SUNDRY
CREDITORS:
During the year under review No comments
confirmation of Accounts from Oil India
Ltd. and Assam Gas Co. as on
31.03.2008 were obtained and the
balances were reconciled. However,
due
to
the
non-availability
of
confirmations
from
few
Sundry
Creditors, the disclosure made by the
Company in Note No. 4 of Schedule-26
has to be relied upon.
v) LOANS & ADVANCES :
Balances of Sundry Debtors, Loans &
Advances and various other debit/credit
balances as per the financial statement
are subject to confirmation and
adjustments
necessary
upon
reconciliation.
The reconciliation and confirmation of balances
is a perpetual system and the advances are
generally confirmed at the time of final
settlement of the dues.
vi) The Namrup-I (Ammonia-I) Plant has Adequate disclosure has been made in note No.
been closed since September, 2002 and -6 of schedule-26.
a sum of Rs. 3819.61 Lacs has been
debited in the Accounts as under:(1)In
Fixed
Assets
Rs. 1444.34 Lacs
(2)Capital
Work-in-progress
Rs.
2375.27 Lacs
Since this plant is considered nonviable/uneconomical,
there
is
a
possibility of Impairment loss to the
extent of difference of book value and
its value under redundant conditions, if
declared (Refer Note No. 6 Schedule
26).
vii) RECOVERY OF RENT :
In most cases the Lease Agreements
are time barred. Although, no Legal
action has been taken against the
defaulters for non – payment of rent so
far, the management has taken some
action constructive steps during the
year for recovery of dues. (Refer para
19 of schedule 26 )
Action for renewal / vacation is in process. Legal
action shall be taken in cases wherever deemed
necessary.
The Audit committee has already suggested for
strengthening of present system of rent
collection. Action is in hand for the same in
compliance of Audit Committee suggestion.
viii) We further invite attention to Para2(a) of Notes of Schedule “4” relating
to Fixed Assets, with regard to land
booked at provisional cost and its
consequential effect on Capitalization.
No comments.
ix) The computer operating system is
found to be weak and obsolete. Ancient
programs like Cobol etc. are still being
used. Though the reports generated
from these systems are not supportive
to some extent, steps should be taken
to update the same.
The computer operating system in the company
though old is still supportive of accounting
system. Steps are being taken to replace old
Cobol based system with Oracle based system,
which is economical and suitable to company’s
requirements.
x) Since the company have accumulated A viability proposal has been submitted by the
losses at the end of the financial year company to DOF for the consideration of BRPSE.
ending on 31-03-2008 exceeding fifty
percent of its net worth, it comes within
the purview of Sick Industrial Undertaking
as per section 2 (46AA) of the Companies
Act, 1956.
5. Subject to all of our above observations
and further to our comments in Annexure
referred to above, we report that ;
No comments.
(a) We have obtained all the information
and explanations, which to the best of
our knowledge and belief were
necessary for the purposes of our
audit.
(b) In our opinion, apart from the
accounting of (i) Scrap/Salvage/Waste
Materials (Refer para-6(iii) of Schedule
25), (ii) Payment under Company’s
Family Pension Scheme (Refer para-11
of Schedule 25) on cash basis and (iii)
Accounting of Interest of Advances to
employees after recovery of principal
amount (Refer para-6(ii) of Schedule
25), proper books of accounts as
required by law have been kept by the
Company as it appears from our
examination of those books.
No comments.
(c) The Balance Sheet, Profit & Loss
Account and Cash Flow Statement
dealt with by this report are in
agreement with the Books of Account.
No comments.
(d) In our opinion, the Balance Sheet and
Profit and Loss Account dealt with by
this report have been prepared in
compliance with the accounting
standards
referred
to
in
subsection(3C) of section 211 Companies
Act, 1956, to the extent applicable.
No comments.
(e) The Central Government has directed
vide notification no G.S.R.829(E),
dated 21.10.2003 that clause (g) of
sub-section (1) of section 274 of the
Companies Act, 1956 is not applicable
to a Government Company.
No comments.
.
(f) Subject to our Comments I para 4
above, in our opinion and to the best
of our information and according to the
explanations given to us, the said
accounts, read together with the
Significant Accounting Policies and the
Notes forming part of accounts, give
the information required by the
Companies Act, 1956, in the manner so
required, and also give a true and fair
view in conformity with the accounting
principles generally accepted
No comments.
No comments.
(i) in the case of the Balance Sheet of the
state of affairs of the company as at
31st March’ 2008 ;
(ii) in the case of Profit & Loss
Account of the Loss of the company
for the year ended on that date; and
(iii) in the case of the Cash Flow
Statement of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph (3) of our Report of even date to the Members of
Brahmaputra Valley fertilizer Corporation Limited
On the Accounts for the year ended 31st March’ 2008 )
As required by the Companies (Auditors’
Report) Order 2003
(as amended) issued by the Central
Government of India in term of Section 227
(4A) of the Companies Act, 1956 and as per
the information and explanation given to us
and the books and records examined by us
in the normal course of audit and to the best
of our knowledge and belief, we further
report that:
(i)
(a) The company has generally
maintained proper records showing
full particulars including quantitative
details and location of it’s fixed assets.
No comments.
(b) The fixed assets of the company
have been physically verified by the
Management during the year which in
our opinion is reasonable having
regard to the size of the Company and
the nature of its fixed assets. No
material discrepancies have been
noticed on such verification.
No comments.
(c) During the year the Company has not
disposed off a substantial part of its
fixed assets.
No comments.
(ii)(a) The stock of finished goods and
packing materials were physically
verified
by
the
Management.
However, physical stock of stores and
spare parts are considered for
valuation on the basis of their
balance as per records.
In the event of shortage, provision for the
same is created without disturbing the book
balance till such time approval for write off is
obtained form the Board.
(b) In our opinion, and according to the
information and explanations given
to us, the procedures for physical
verification of inventory followed by
the company, wherever such physical
verification had been conducted,
were found reasonable in relation to
No comments.
.
the size of the company and the
nature of its business.
(c)
The company has generally
maintained proper records of the
inventory. The Physical verification
of stores and spares as on
31.03.2007 was completed during
the year under review and a
provision of Rs. 27.61 Lacs has been
made in the accounts towards loss
after considering shortage/excesses
etc.
No comments.
(iii) (a) As per the information furnished, the
company has not granted any loans,
secured or unsecured, to companies,
firms or other parties covered in the
Register maintained under section
301 of the Companies Act, 1956.
Accordingly, provisions as per sub clauses 4(iii)(b)(c)(d) of the Order
are not applicable to the Company.
No comments.
(b) The Company has not taken any loans,
secured or unsecured, from companies,
firms or other parties covered in the
Register maintained under section 301
of
the
Companies
Act,
1956.
Accordingly, provisions as per sub clauses 4(iii)(f) & (g) of the Order are
not applicable to the Company.
No comments.
(iv) In our opinion and according to the
information and explanations given to
us, there are adequate internal
control procedures commensurate
with the size of the company and the
nature of its business, with regard to
purchase of inventory, fixed assets
and with regard to sale of goods and
services. Further, during the course of
our audit, we have neither come
across nor have we been informed of
any continuing failure to correct major
weaknesses in the internal control
system.
No comments.
(v) On the basis of our examinations of the
books of account and according to the
information and explanations given to
No comments.
us, the company has not entered into
any contracts or arrangements that need
to be entered into the register
maintained under section 301 of the
Companies Act, 1956. Accordingly,
provision of sub - clause 4(v)(b) of the
Order is not applicable to the company.
(vi)
According to the information and
explanations given to us, the company
has not accepted deposits from the
public. Hence the provisions of Section
58A, 58AA or any other relevant
provision of the Companies Act, 1956
and Companies (Acceptance of Deposits)
Rules 1975 are not applicable to the
company.
No comments.
(vii) The company has an established in
house Internal Audit Cell commensurate
with its size and nature of its business.
Further, the company has also engaged
a firm of Chartered Accountants for
conducting Internal Audit for the year
2007-08.
No comments.
(viii) We have broadly reviewed the records
maintained by the Company in respect
of products where, pursuant to be Rules
made by the Central Government of
India, the maintenance of cost records
has been prescribed under clause (d) of
sub-section (1) of Section 209 of the
Act. We are of the opinion that prima
facie, the prescribed accounts and
records have been made and were
maintained. We have not, however,
carried out a detailed examination of
these records with a view to determine
whether they are accurate or complete.
(ix) According to the information and
explanations given to us and according
to the records produced before us, in
respect of statutory and other dues.
(a) (i) The company has been regular in
depositing
undisputed
statutory dues including Provident
Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise
Duty and cess with the appropriate
authorities during the year. The
company is not covered under the
No comments.
No comments.
No comments.
Employees’ State Insurance Act. The
company is also not required to make
a deposit in the Investor Education
and Protection Fund.
(ii) According to the information and
explanations given to us, no
undisputed amounts payable in
respect of Income Tax, FBT, Wealth
Tax, Sales Tax, Custom Duty, Excise
Duty and cess were in arrear, as at
31.03.2008 for a period of more than
six months from the date they
became payable. However, a demand
raised by the Commissioner of Central
Excise regarding Service Tax for Rs.
75.37 Lacs including Interest and
Penalty has been contested by the
Company in the CEST Tribunal,
Kolkata. (Refer item No. 1 of Schedule
26)
(b)
No comments.
According to the information and
explanations
given
to
us and according to the records
produced before us, there are no
dues
of
Sales
Tax/Income
Tax/Custom Duty/Wealth Duty/Excise
Duty/Cess/Service Tax which have
not been deposited on account of
any dispute.
No comments.
(x)
The company have accumulated
losses at the end of the financial
year
ending
on
31.03.2008
exceeding fifty percent of its net
worth and it has incurred cash
losses in the current financial year
and in the immediately preceding
financial year also.
No comments.
(xi)
According to the information and A viability proposal has been submitted by the
explanations given to us and based company to DOF for the consideration of
on the documents and records BRPSE.
produced to us, the company has
not been defaulted in payment of
dues to the Financial Institution or
Bank, except the loan taken from
Government of India. Further, the
Company has not issued any
debentures during the year.
(xii)
Based on our examination of the
records and the information and
explanations given to us, the
company has not granted any
loans and advances on the basis of
securities by way of pledge of
Shares, Debentures or other
securities.
No comments.
(xiii) In our opinion, the company is not a
chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions
of Clauses 4(xiii) of the Order are not
applicable to the Company.
No comments.
(xiv) According to the information and
explanations given to us, In our
opinion, the company is not dealing in
or trading in shares, securities,
debentures and other investments.
Therefore, the provision of clause
4(xiv) of the Order is not applicable to
the company.
No comments.
(xv)
According to the information and
explanations given to us, the company
has not given any guarantee for loans
taken by others from banks or financial
institutions. Therefore, the provision of
clause 4(xv) of the Order is not
applicable to the company.
No comments.
(xvi) According to the information and
explanations given to us, the company
has taken a term loan of Rs. 7.47
Crores towards Plan Loan and Rs.
20.96 Crores towards Non – Plan Loan
both from Government of India for
purchase of Plant and Machinery. Since
the
amount
was
received
on
31.03.2008.
No comments.
(xvii)
According to the information and
explanations given to us and on an
overall examination of the Balance
Sheet of the company, we report that
no funds raised on short term basis
have been used for long term
investment.
No comments.
(xviii)The company has not issued any
No comments.
preferential allotment of shares during
the year. Therefore, the provision of
clause 4(xviii) of the Order is not
applicable to the company.
(xix)
The company has not issued any
debentures during the year under
audit. Therefore, the provision of
clause 4(xix) of the Order is not
applicable to the company.
No comments.
(xx) The company has not raised money by
way of public issue during the year.
Therefore, the provision of clause 4(xx)
of the Order is not applicable to the
company.
No comments.
(xxi) To the best of our knowledge and belief
and according to the information and
explanations given to us, no fraud on or
by the company was noticed or reported
during the year.
No comments.
BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LTD.,
NAMRUP
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 619 ( 4 ) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS
OF BRAHAMAPYTRA VALLEY FERTILIZER CORPORATION LIMITED FOR THE
YEAR ENDED 31ST MARCH 2008 & THE MANAGEMENT REPLY THEREON
CAG Comments
Management Reply
The preparation of financial statements of
Brahmaputra Valley Fertilizer Corporation
Limited for the year ended 31st March, 2008 in
accordance with the financial reporting
framework prescribed under the Companies
Act, 1956 is the responsibility of the
management of the company. The statutory
auditor appointed by the Comptroller and
Auditor General of India under Section 619 (2)
of the Companies Act, 1956 is responsible for
expressing opinion on these financial statement
under Section 227 of the Companies Act, 1956
based on independent audit in accordance with
the auditing and assurance standard prescribed
by their professional body the Institute of
Chartered Accountants of India. This is stated
to have been done by them vide their Audit
Report dated 07.06.2008.
The gas requirement for achieving the
desired level of production is 2.17
MSCMD, but the total natural gas
available at present is only 1.72
MMSCMD. M/s. Oil India Ltd. informed in
July 2006 that high volume gas above
1.72 MMSCMD will not be available for
supply to BVFCL in near future. The
supply is also erratic. Due to uncertainties
in gas supply, BVFCL has to priorities gas
distribution among Namrup-I, II and III
based on plant performance and energy
contribution level. Namrup-I is a very old
plant with high energy consumption and
cost of production. Gas is also not
available to operate this plant. Hence it
has been decided to suspend operations
of this plant.
I, on the behalf of the Comptroller and Auditor
General
of
India
have
conducted
a
supplementary audit under Section 619 (3) (b)
of the Companies Act, 1956 of the financial
statements of Brahmaputra Valley Fertilizer
Corporation Limited for the year ended 31st
March, 2008. This supplementary audit has
been carried out independent without access to
the working papers of the statutory auditors
and is limited primarily to inquiries of the
statutory auditors and company personnel and
a selective examination of some of the
accounting
records.
Based
on
my
supplementary audit. I would like to highlight
the following significant matter under Section
619 (4) of the Companies Act, 1956 which has
come to my attention and which in my view is
necessary for enabling a better understanding
of the financial statement and the related Audit
Report.
Further, adequate disclosure has been
made in note No. 6 of Schedule-26, the
relevant extract of which is reproduced
below.
Profit & Loss Account
Loss for the year Rs. 10449.04 Lakh
Pending decision of GOI about further
operation or otherwise for alternative use
or closure of Namrup-I (Ammonia-I) as
found fit, market valuation under
Accounting Standard (AS)-28 with regard
to impairment of assets has been done by
M/s K.D. Kohli Associates, New Delhi,
approved valuers. As per their report, the
market value of the Namrup-I Plant
(Ammonia-I) has been assessed at Rs.
4361.95 lacs against book value of Rs.
3657.89 lacs (Rs. 3450.87 lacs as at
31.03.2008) and Accounting Standard
(AS)-28 valuation under redundant
condition of Namrup-I Plant (Ammonia-I)
has been fixed at Rs. 1308.59 lacs. As the
book value is less than the market value
and Namrup-I Plant (Ammonia-I) has not
been declared redundant to date, no
The above was understated to the extent of Rs. provision as required by Accounting
2142.28 lakh due to non recognition of Standard (AS)-28 has been considered in
impairment loss of assets of Namrup-I plant in the accounts.
accordance with Accounting Standard 28. This
has resulted in understatement of provisions of Since the decision of Govt. about the
Rs. 2142.28 lakh and overstatement of Fixed future of Namrup-I Plant is not yet
Assets as well as Capital Work-in-Progress by received, the status quo remains the
Rs. 147.64 lakh and Rs. 1994.64 lakh same.
respectively.
However, as pointed out by Govt. Audit,
Despite the matter being reported on the necessary adjustment will be made in the
Annual Accounts for the year 2006-07 no Accounts during the year 2008-09.
adjustment was carried out by the Company in
the Accounts for the year 2007-08.
ANNEXURE TO DIRECTORS’ REPORT
ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCs, STs , OBC
and PHs AS ON FIRST JANUARY, 2008 AND NUMBER OF APPOINTMENTS
MADE DURING THE PRECEDING CALENDAR YEAR
NAME OF THE PUBLIC ENTEPRISES: BRAHMAPUTRA VALLEY FERTILIZER
CORPORATION LIMITED, NAMRUP.
Groups
Representation of
SCs/STs/OBCs / as on
1.1.2008
Number of appointments made during the calendar year 2006
By Direct Recruitment Method
Total No.
of
employees
2
228
395
595
64
1
Group A
Group B
Group C
Group D
(Excluding
Safai
Karmachari)
Group D
5
(Safai
Karmachari)
By Promotion
SCs STs OBCs Total
SCs
STs
OBCs
B
M
Total SCs STs T
3
21
35
31
3
4
13
56
101
14
5
65
185
304
31
6
49(MT)*
81(O/TT)**
-
7
3(MT)
7(O/TT)
-
8
6(MT)
10(O/TT)
-
9
16(MT)
23(O/TT)
-
10
22
91
170
4
11
4
6
5
3
12
2
4
2
-
1
3
1
-
5
-
-
-
-
-
-
-
-
-
-
287
18
8
4
Total
1287
95
184 585
130
10
16
39
* 49 Management Trainees (MT), to be regularized in group –A as Asstt. Engineers in their
respective discipline after 1 1/2year of training, recruited during the year 2007.
** 81 Operator/ Technician trainees (O/TT), to be regularized in group –C as Grade –II Operator
/Technician after 2 years of training, recruited during the year 2007.
The representation of physically handicapped manpower are as under (this manpower is included
in the above statement):
Group
Total
SCs
STs
OBCs
Group C
2
1
Group D
3
2
PERFOMANCE OF BVFCL AT A GLANCE
Sl. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
2007-08 2006-07 2005-06 2004-05
SALES
Subsidy
TOTAL (1+2)
Other income
Stock: accretion (+) decretion (-)
TOTAL INCOME
Raw materials (Feed Stock)
Packing materials etc.
Salaries & Allowances
Repairs & Maintenance
Power & Fuel
Other Manufacturing Expenses
TOTAL EXPENDITURE
Gross margin(6-12)
Interest & Finance
Depreciation
Profit before taxation
Provision for taxation
Extra Ordinary Income
NET PROFIT/LOSS
Transfer to investment
Allowance Reserve
Transfer from investment
Allowance Reserve
Provision for dividend
Corporate tax on propose dividend
Net block
Capital work in progress
Current assets, Loan & Advance
Current Liabilities & Provision
Investments
Misc. expenditure
(To the extent not written off or adjusted)
Accumulated Losses
Total Utilization
WORKING CAPITAL (26-27)
Long Term Borrowings
Short Term Borrowings
Share Capital
Deferred Tax Liability
Reserve & Surplus
Total Sources
NET WORTH (35-30)
Capital Employed (24+32)
Finished Goods
Work Progress
Stores & Spares etc.
Sundry Debtors
Cash & Bank Balance
Other Current Assets
Rs. in Lacs
2003-04
15994
9381
25375
946
-228
26093
5767
15317
13158
28475
930
-153
29252
5472
9946
3469
13415
820
1132
15367
3828
12469
2364
14833
1030
-2226
13637
3210
12170
2312
14482
326
588
15396
3153
3868
1245
9551
5110
25541
552
7185
3951
-10584
~
~
-10584
~
~
~
~
~
~
52711
2807
20321
11658
~
~
4213
1164
9560
5070
25479
3773
6137
3873
-6237
~
~
6237
~
~
~
~
~
~
56587
2783
17244
11797
~
~
3426
667
6957
5868
20746
-5379
2698
1900
-9977
~
~
-9977
~
2686
448
4672
2905
13921
-284
774
709
-1767
~
4021
2254
~
2650
474
4891
7396
18564
-3168
625
624
-4417
~
~
-4417
~
~
~
58800
3496
12926
14687
~
40
~
~
14215
42585
14400
12622
~
80
~
~
10290
38382
24832
17527
~
120
32168
96349
8663
59687
79
36583
~
~
96349
4415
61374
926
53
3023
3659
11765
581
21584
86401
5447
49818
100
36583
~
~
86401
14999
62034
1182
26
3353
4684
7288
436
15347
75922
-1761
42425
0
33497
~
~
75922
18150
57039
1355
5
3444
1567
5719
142
5369
64027
1778
32879
0
31148
~
~
64027
25779
15993
195
35
3463
2087
8049
98
7623
63720
7305
33017
0
30703
~
~
63720
23080
17595
2446
9
3944
2486
15490
105
~
~
~
47
48
49
50
51
52
53
54
55
56
57
58
Loans & Advances
Total (41 to 47)
Less: Current Liabilities
Provisions
Total (49+50)
NET WORKING CAPITA (46-49)
Gross Internal Resources (15+19)
Cumulative Gross Internal Resources
INSTALLED CAPACITY (N)
Urea
(MT)
Total
PRODUCTION (N)
Urea
(MT)
Total
Capacity Utilisation (%) UREA
SALES QUANTITY (MT)
Urea
Total
314
20321
8147
3511
11658
8663
-6633
12866
275
17244
8226
3571
11797
5447
-2364
19640
694
12926
10925
3762
14687
-1761
-8077
22004
473
14400
8969
3653
12622
1778
2963
30081
352
24832
14104
3423
17527
7305
-3793
27973
510000
510000
510000
510000
351320
351320
315000
315000
315000
315000
329977
329977
64.70
308303
308303
60.45
234578
234578
66.77
203060
203060
64.46
240590
240590
76.37
333473
333473
314676
314676
213700
213700
247572
247572
234623
234623