BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

Case No.70/2006 Duncans Industries Ltd. (DIL) 

BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION 

CASE No 70/2006, M/s DUNCANS INDUSTRIES LTD (DIL) 

BENCH-I 

SANCTIONED SCHEME 

1 BACKGROUND 

1.1 M/s Duncans Industries Ltd (DIL), a public limited Company, incorporated 

on 30.7.1993 under the Companies Act, 1956 with its registered office at 

Duncan House, 31, Netaji Subhas Road, Kolkata; has been promoted by Sh 

G P Goenka of Duncan Goenka Group. 

1.2 The company is engaged in Urea ( Fertilizer) and Tea business. The 

Fertilizer complex for manufacture of Urea with installed capacity of 

7,22,000 MT per annum is located at Panki Ind Area, Kanpur (UP) The Tea 

units/estates are located in Distt. Jalpaiguri, Darjeeling (WB) and Uttar 

Dinajpur (WB) for producing/processing of Tea with capacity of approx 150 

lakh Kg per annum. 

1.3 The fertilizer complex was set up by multinational company M/s ICI Ltd in 

1969. In 1993. the fertilizer unit was made a separate entity by the name of 

M/s Chand Chhap Fertiliser and Chemicals Ltd. In 1993 itself, the company 

was taken over by Duncan Industries Ltd. However, due to various reasons, 

the Fertilizer plant has not been in operation and has been lying closed 

since 2002 except for a brief period of operation for about 1.5 months from 

30 Aug 2005 to 17 Oct 2005. 

1.4 The Tea Gardens and Tea processing factories were acquired by DIL on 

merger of erstwhile M/s Duncans Agro Industries Ltd. It is one of the oldest 

and largest tea companies in the country. It goes back to the year 1859 

when Mr Thomas Duncan set up the Tea business in the Company. All the 

Tea Gardens and processing factories of the company are situated in West 

Bengal. 

1.5 Due to non operation of the Fertiliser Plant, the company has been 

continuously incurring huge losses and as a result, operations of Tea 

business has also been affected due to inadequate focus on upkeep of tea 

estates. 

1.6 The Tea Divn of the company had also been incurring losses but has been able to 

earn profits in YE 31.3.2010 after 4 years of continuous losses. 

1.7 Due to downward revision of Fertiliser Retention Price Support (RPS) in 

2002 with retrospective effect from July 1997, an amount of Rs 446.95 Cr 

receivable as fertilizer subsidy from GoI had to be written off during YE 

-- 1


31.3.2006, which resulted in losses and erosion of entire net worth of the 

company. 

1.8 The Company has now entered into an Investment Agreement dated 

18.6.2010 with M/s Jaypee Fertilizers & Industries Ltd (JFIL) (a Jaypee 

Group company) as a strategic investor (SI) for revival of the Fertiliser 

Division. 

1.8.2 The rehabilitation measures, inter alia, envisage de-merger of all the assets 

and liabilities of Fertiliser Unit and transfer and vesting of the same into a 

new company M.s Kanpur Fertiliser & Cement Ltd (KFCL). The Tea 

business shall be left in residual DIL. Infusion of fresh funds into the new 

company by a Joint Venture Company (JV Co.) M/s Jaypee Uttar Bharat 

Vikas Ltd ( JUBVPL) of JFIL (SI) and M/s ISG Traders Ltd (a part of 

promoter group of DIL) is envisaged. 

1.8.3 The OA has submitted DRS which proposes cost of scheme aggregating 

to Rs 1059.40 Cr as under: 

Particulars 

Amount(Rs\Cr) 

1 One Time Settlement (OTS) of the dues 

257.21 

of the secured creditors 

2 Payment of Late payment Charges (Arcil 

5.65 

and CBI) 

3 OTS to other secured creditors 5.78 

4 Repayment of WCTL and Loans 35.69 

5 Capital Expenditure for conversion of the 

241.53 

feedstock of the Fertiliser Plant and Tea 

Division 

6 Settlement of the dues of the unsecured 

110.19 

lenders including fixed deposits 

7 Other unsecured creditors/liabilities 73.67 

8 Payment of Workmen dues: 112.46 

9 Working capital 206.45 

1 Payment of Statutory dues 10.77 

0 

Total 1059.40 

1.8.4 The proposed means of finance (Rs 1059.40 Cr) are as under: 

Particulars 

Amount (Rs\Cr) 

1 Promoters equity in Tea Business 11.65 

2 Equity by JV Co in Fertiliser business 400.00 

3 Interest free unsecured loans / equity from 

Promoters in Tea business 

30.56 

4 Debts by JV Co from WOS / Associates 

:Rs 335 Cr and in Fertiliser business 

-- 2 

369.62 

5 Internal accruals: 247.57 

Total 1059.40


1.8.5 As against the principal outstanding amount of Rs 616.70 Cr of the secured 

creditors, the company has entered into OTS for Rs 271.55 Cr (including Rs 

14.34 Cr already paid). The company to settle the dues of Fixed Deposit 

holders at 85% which comes to Rs 66.07 Cr. The company has entered into 

an MOU with the workmen of fertilizer undertaking and has incorporated 

their dues in the DRS. Duncan Voluntary Retired & Pensioners Employees 

Association (DVREPA) have also agreed for settlement of their dues and 

the company has incorporated dues of DVREPA amounting to Rs 4.09 Cr in 

DRS. ARCIL, the largest lender with 47.15% share in o/s dues of secured 

creditors, has conveyed its confirmation vide letter dated 06.01.2011 

accepting the settlement amount proposed to be paid to the secured lenders 

as envisaged in the DRS. Other major secured creditors except WBIDC & 

PICUP ( which constitute 2.53% of the total dues of secured creditors) have 

also agreed for the OTS offer of the company. Thus, 97.47% of the secured 

creditors have accepted the OTS offer. 

2 REFERENCE TO BIFR 

2.1 The company, based on ABS 31.3.2006, filed a reference under Section 

15(1) of the Sick Industrial Companies (Special Provisions) Act 1985 

(hereinafter referred to as the Act ). In the hearing held on 21.2.2007, the 

Bench declared the company as sick company u/s 3(1)(o) of the Act. The 

Bench noted that the provisions of Section 18 of SICA would have to be 

explored in public interest in relation to the company. Accordingly, in terms 

of the powers available u/s 17(3) of SICA, the Bench appointed State Bank 

of India (SBI) as the Operating Agency (OA) with directions to prepare a 

revival scheme for it, if feasible. The Bench inter-alia issued the following 

directions: 

i) Individual holders of fixed deposits were free to negotiate with the 

company to secure repayment of their dues or to approach the 

Company Law Board (CLB) u/s 58A of the Companies Act or to file 

suits for recovery of their dues. 

2.2 The company preferred an appeal against directions of Board in respect of 

fixation of cut off date as 31.3.07 and in respect of Fixed Deposit of 

individual holders in BIFR Order dated 21.2.2007. Hon ble AAIFR, vide 

order dated 14.12.2007, set aside the aforesaid direction/guidelines. 

2.3 In the hearing held on 26.5.2009, the Bench directed the company to 

commence the process of startup activities and also commence its 

operations within a month as GOI had already accorded permission to DIL 

to re-commence operations based on Naphtha. 

-- 3


2.4 The company preferred an appeal against the above orders of the Board and 

Hon ble AAIFR vide order dated 3.7.2009 stayed the operation of Board s 

aforesaid directions. 

2.5 In response to MA Nos. 64 and 65 filed by some unsecured creditors to 

consider their claims while formulating the rehabilitation scheme, the Bench in 

the hearing held on 25.2.2010, directed that the applicants may approach 

appropriate civil court for filing recovery suit against the company to determine 

the dues. However, the decree, if any, shall not be executed without prior 

approval of BIFR and the decreed amount shall be appropriately considered in 

the DRS by the company. 

2.6 Hon ble AAIFR vide order dated 15.9.2010 directed that DRS shall be modified 

to incorporate payment of principal dues of Duncan Voluntary Retired & 

Pensioners Employees Association (DVREPA), which shall be paid by the 

company within a period of 120 days in lump sum from the date of sanction of 

the scheme. 

2.7 In the hearing held on 20.10.2010, SBI (OA) informed the Bench that most of 

the stakeholders had accepted the provisions of DRS in the Joint Meeting held 

on 1.10.2010 and ARCIL, the largest secured lender, has accepted the demerger 

of the Fertilizer Division of the company through a Joint Venture (JV) 

company with Jaypee Group . While CBI, SBT, SICOM and IOC conveyed 

acceptance of OTS proposal offered by the company, PICUP did not accept the 

OTS offered by the company. 

2.8 In the hearing held on 20.10.2010, the Bench issued the following 

directions :- 

I. SBI (OA) shall submit the revised DRS to the Board within 15 

days. 

II. The next hearing of the case will be held on 3.2.2011. 

2.9 In the hearing held on 3.2.2011, the Bench interalia issued the following 

directions: 

1) A limited hearing comprising of SBI(OA) and all secured creditors of the 

company will be held on 23.2.2011 to examine the DRS proposal of the 

company. 

.2.10 In the limited hearing held on 23.2.2011 to examine the DRS proposal of the 

company, the secured creditors expressed consent on the provisions of the 

DRS. The secured creditors requested the Bench for early circulation of the 

DRS so that their accounts may be settled under OTS as per the scheme. 

-- 4


2.11 State Bank of India (Operating Agency) has submitted revised DRS vide letter 

dated 1.4.2011 and further information has been submitted by Co s letter dated 

23.5.2011. The DRS has been considered in JM convened by OA on 

1.10.2010. 

3 SHARE CAPITAL AND SHAREHOLDERS 

Category 

No of 

Shares held 

% of 

Share 

holding 

Amoun 

t (Rs / 

Cr) 

I Equity Shares of Rs 10/- each 

A Promoter s Holding 3,12,32,927 58.68 

B. Non- Promoters Holding 

1 Institutional Investors 14,94,208 2.81 

Foreign Banks 950 - 

Bodies Corporate 40,00,303 7.52 

Individuals 1,56,81,481 29.47 

NRI s / Foreign Nationals 2,26,235 0.42 

Others(Clearing Members) 5,86,922 1.10 

Sub-total 2,19,90,099 41.32 

Total Equity Capital 5,32,23,026 100.0 53.22 

II 

III 

8.25% Redeemable Cum. Pref. 

Shares of Rs 100/- each. 

Albert Trading Company P Ltd. 2,00,000 21.05 

IDBI 7,50,000 78.95 

Total Redeemable Cum. Pref. 

Share 

9,50,000 100.00 9.50 

0.001% Cum. Redeem. Pref. 1,65,98,331 100.00 165.98 

Shares Banks and FI s of Rs 100/- 

each 

Total Preference Share Capital 1,75,48,331 175.48 

Total Share Capital 228.70 

The authorized capital of the company is Rs 235 Cr divided into 550 lakh 

shares of Rs 10 each, 180 lakh cumulative preference shares of Rs 100 each. 

The issued, subscribed and paid up capital of Rs 53.22 Cr is divided into 

532.23 lakh shares of Rs 10 each and Rs 175.48 lakh divided into 175.48 

lakh cumulative preference shares of Rs 100 each. The shares of the 

company are quoted at BSE and NSE and there is regular trading. 

3.2 Market price/Intrinsic value of Equity Shares: 

The shares are listed on BSE and NSE and share price as on 13.5.2011 

was Rs 15.65 on BSE ( Volume 25444) and Rs 15.55 on NSE (Volume 

31864) with 52 week high/low of Rs 24.35/ Rs 12.75 on BSE and Rs 

24.30/ Rs 12.10 on NSE. 

-- 5


The fair value for induction of equity as per valuation report dated 

21.2.2011 of M/s Chaturvedi & Partners, Chartered Accountants, is Rs 10 

being the average of NAV of (-) Rs 15, Profit earning capacity value 

(PECV) (-) Rs 56 and Market price of Rs 18. 

4 PROMOTERS 

M/s ISG Traders Ltd and its associate companies are the promoters of 

DIL. 

5 BOARD OF DIRECTORS 

Sl. Name ( S/Sh) Age Qualification Experience Designation 

No. 

1. G.P. Goenka 70 B.Sc, Industrialist heading Chairman 

the Duncan Goenka 

Group and ex- 

President FICCI. 

2. T.S. Broca . IAS 78 M.A Ex- Chairman Tea Independent 

(Retired) 

Board of India 

Director 

3. R.K.Bhargava . 

IAS (Retired) 

75 M.A. Finance and Corporate 

Affairs 

Independent 

Director 

4. M.H. Chinoy 73 Diploma in 

International & 

Tea and Tea Marketing 

related activities. 

Independent 

Director 

Export Management 

5. D. Sengupta 68 B.Sc, PGDM Ex- Chairman General 

Insurance Corporation. 

Independent 

Director 

6. S.K.Kinra 65 Special 

Director BIFR. 

7. A.K.Goel 60 B.Com, FCA Finance, Accounts, Whole time 

Taxation, 

Director 

Administration and 

Corporate Affairs. 

8. S.P.Gupta 57 B.Tech.(Chemical Process Engineering, Executive 

Engg.) 

Business Management, 

Productivity 

enhancement etc. 

Director 

6 TECHNICAL & PROFESSIONAL STAFF 

DIL has adequate technical and professional personnel for operation of its 

fertiliser and Tea undertaking who looks after the production, marketing, 

finance and administrative functions. It will, however, have to fill up the 

vacancies caused due to leaving / retirement of the certain employees in 

fertilizer division during the period of the non operation of plant. 

-- 6

7 REASONS FOR SICKNESS 


The following main reasons are attributed to sickness of the company: 

7.1 Reduction in Retention Price Support (RPS) retrospectively by GoI in 

2002 w.e.f. July, 1997 and withholding / deductions / adjustments of 

RPS receivables in respect of the subsequent period of operation; 

i) Urea is an essential commodity whose selling price is controlled by 

the Government. In order to promote the consumption of urea to 

increase agricultural yields, the GOI introduced Retention Pricing 

Scheme (RPS). The difference between the RPS and the farm-gate 

price is reimbursed to the manufacturers by way of subsidy through 

the Fertilizer Industry Co-ordination Committee (FICC) under the 

Ministry of Chemicals & Fertilizer. However, GoI/FICC did not revise 

RPS for the period 1997- 2000 and 2000-03 till June 2002. In the 

interim period, the industry claimed subsidy on the basis of adhoc 

notifications from the GoI. 

ii) The revised retention price for the Company was notified by the 

Government vide its order dated 5 th November, 2001 having a 

reduction of Rs 1927/- per MT and Rs 1926/- per MT for the period 

1.4.2000 - 31.3.2001 and 1.4.2001 - 31.3.2003 respectively. GoI vide 

notification dated 4 th June, 2002, also notified the revised pricing 

policy parameters for the 7 th and 8 th pricing periods covering the 

period from 1 st July, 1997 to 31 st March, 2003. The impact of the 

adhoc notifications and the 7 th and 8 th Pricing Policies resulted in 

recovery of Rs 446.95 Cr from DIL, which was recovered/ deducted / 

adjusted by the Government. 

iii) The decision of Government in reducing the subsidy with 

retrospective effect resulted in erosion of the Company s working 

capital which led to severe cash flow mismatch resulting in closure of 

the fertilizer unit in March 2002. 

iv) The Company s SLP filed in Supreme Court against decision of High 

Court (vide which the High Court had dismissed the writ petition filed 

by the company against retrospective downward revision of the 

fertilizer subsidy by the GOI) was also dismissed vide its judgment 

dated 10 th February, 2006. Consequently, Rs 446.95 Cr receivable 

by the Company as subsidy had to be written off during YE 31st 

March, 2006. Such a heavy loss eroded the entire net worth of the 

company making it a sick industrial company . 

-- 7


7.2 Inadequate working capital: 

i. In accordance with the CDR Package approved by the CDR Empowered 

Committee vide its letter dated 15 th October 2004, the Banks were to 

provide Rs 62 Cr of additional Working Capital facility for recommencement 

of the operation at the fertilizer plant against an additional exclusive security 

of 2.89 Cr equity shares of M/s Andhra Cements Ltd (ACL) held by M/s 

Boydell Media Pvt Ltd, a company of Duncan Goenka Group, to be pledged 

in favour of Banks. The banks sanctioned additional working capital facility 

of Rs 56.45 Cr while the balance Rs 5.55 Cr (State Bank of Patiala was not 

agreeable to finance) was brought in by the promoters along with their 

contribution of Rs 25 Cr. Necessary pledge in favour of banks was created 

on 2.89 Cr shares of Andhra Cements Limited (ACL) exclusively securing 

the above limit of Rs 56.45 Cr. 

ii. 

iii. 

Upon implementation of the package, the lay-off was lifted w.e.f. 8 th July, 

2005, understanding with IOC (Naphtha provider) and KESCO (electricity 

provider) were arrived at to ensure the smooth availability of raw materials 

and power. The production at the plant recommenced on 30 th August, 2005. 

After the unit re-started the operations in August, 2005, subsidy was again 

delayed from GoI and entire working capital of the company got locked-up in 

the subsidy receivable and plant operations had to be again suspended 

w.e.f. 18.10.2005. The company approached the Department of Fertilizer / 

FICC for release of subsidy which was pending for disbursement and also 

got assurance that in future the subsidy will be released in time. With the 

expectation that the Department of Fertilizer / FICC shall take some positive 

action on the request of the Company, it embarked upon the program to 

carry out certain essential repairs and maintenance of the plant which was 

necessary to ensure the continuity of stable production at desired efficiency 

levels. However, the subsidy amounting to Rs 25 Cr could only be released 

in the month of February 2006. By that time, the price of Naphtha, which is 

a major raw material, constituting more than 60% of the cost of production 

of urea, increased from Rs 23,500 per MT (in the month of July-Sept,05) to 

Rs 31,300 per MT (in the month of April,06). Though the increase in price 

of Naphtha was to be compensated to the company as part of subsidy but it 

had major implication in the working capital requirement of the company. 

The increase in price of naphtha coupled with delay in disbursement of 

subsidy led to acute shortage of fund and increased the working capital 

requirement for the operation. 

The Company requested banks to provide further support to overcome the 

liquidity problem caused due to locking of funds in the subsidy. The matter 

was discussed with the banks and it was suggested to explore the alternate 

possibility to tie-up the working capital requirement by way of credit from 

Indian Oil Corporation (IOC), the sole supplier of Naphtha to the Company, 

as a long-term solution. IOC in principle was agreeable to supply the 

-- 8


naphtha through the process of an Escrow Mechanism against the subsidy 

receivables but in the meantime, the price of Naphtha had further gone up 

to Rs 32,200/- per MT and at this price the requirement of Naphtha 

per month on full capacity utilization was estimated approximately Rs 95 Cr 

and trend for release of subsidy by the Government on 45 days basis, requirement 

of credit from IOC was expected to be of approximately Rs 250 Cr and Naphtha 

supply could not materialize through escrow mechanism and as a result plant 

could not restart operation due to non-availability of feedstock. 

7.3 Recession in Tea Industry: 

The tea industry, which is one of the oldest agro-based industries in the country, 

passed through a recession for 7 years till 2008 primarily due to fall in tea 

prices, lower exports, stagnant demand in the domestic market, escalation in the 

input cost, abnormal increase in labour cost and the presence of large quantities 

of tea produced by the unorganized sector where cost of production is low. The 

recession in the tea industry adversely affected the Company s tea operations. 

The above major factors contributed in the company incurring substantial losses 

and becoming sick. 

8.0 PAST PERFORMANCE 

8.1 Financial Position 

(Rs\Cr) 

YE 31 st March . 2006 2007 2008 2009 2010 30.9.10 

Audited Audited Audited Audited Audited Prov 

Share Capital 62.72 199.51 228.71 228.71 228.71 228.71 

Reserves and Surplus 142.12 142.12 142.12 142.12 142.12 142.12 

CRPS Pending Allotment 156.00 29.20 - - - 

Secured Loans 640.88 734.15 727.57 719.33 718.83 720.20 

Unsecured Loans 360.87 368.69 392.63 414.96 401.49 400.18 

Total Liabilities 1362.59 1473.67 1491.03 1505.12 1491.15 1491.21 

Gross Block 891.79 893.91 894.33 896.33 901.44 903.99 

Less: Accum. Depreciation 193.54 214.16 234.23 253.41 272.90 283.28 

Less: Impairment 0 282.60 282.60 282.60 282.60 282.60 

Net Block 698.25 397.15 377.5 360.32 345.94 338.11 

Capital Work in Progress 8.11 5.91 5.66 5.99 6.96 6.52 

Sub Total 706.36 403.06 383.16 366.31 352.9 344.63 

Less: Revaluation Reserve 390.22 143.44 136.6 129.63 122.7 119.24 

Fixed Assets (Net) 316.14 259.62 246.56 236.68 230.2 225.39 

Investments 331.44 330.80 105.71 92.17 92.17 92.17 

Net Current Assets -239.39 -275.29 -254.79 -265.37 -262.95 -251.07 

Accumulated Losses 954.4 1158.54 1393.55 1441.64 1431.73 1424.72 

Total Assets 1362.59 1473.67 1491.03 1505.12 1491.15 1491.21 

Net Worth: 

Share Capital 62.72 199.51 228.71 228.71 228.71 228.71 

Reserves and Surplus 142.12 142.12 142.12 142.12 142.12 142.12 

Less: Accumulated Losses 954.40 1158.54 1393.55 1441.64 1431.73 1424.72 

Net Worth -749.56 -816.91 -1022.72 -1070.81 -1060.90 -1053.89 

-- 9


Comments: 

The accumulated losses have marginally declined in YE 2009 -2010. 

8.2 Working Results: (Rs\Cr) 

YE 31 st March 2006 2007 2008 2009 2010 30.9.10 

(6 months) 

Working Results Audited Audited Audited Audited Audited Prov 

(i) Fertilizer Division: 

Gross Turnover / Other 63.35 0.08 3.03 0.70 0.01 0.01 

Receipts 

% Growth -100% 3688% -77% -99% 

EBIDT -104.58 -58.50 -0.23 -0.84 -1.76 -0.87 

Depreciation 10.76 10.76 10.76 10.76 10.76 5.38 

EBIT of Fert. Div. -115.34 -69.26 -10.99 -11.60 -12.52 -6.25 

(ii) Tea Division: 

Gross Turnover / Other 110.01 104.29 108.05 143.03 159.06 82.80 

Receipts 

% Growth -5% 4% 32% 11% 

EBIDT -74.33 -24.05 -10.20 -3.49 20.63 21.52 

Exchange (Deficit)/ 10.90 -7.66 -24.84 -24.59 12.33 - 

Gain on realignment 

Depreciation 3.18 3.01 2.91 2.84 2.90 1.54 

EBIT of Tea Divn -66.61 -34.72 -37.95 -30.92 30.06 19.98 

(iii) Company 

Total Gross Turnover / 173.36 104.37 131.29 143.73 159.07 82.81 

Other Receipts 

% Growth -40% 26% 9% 11% 

EBIT -181.95 -103.98 -48.94 -42.52 17.54 13.73 

Interest -56.94 -54.19 -4.90 -5.04 -7.52 -6.72 

Interest for earlier years 

on Income Tax 

Prior Period 

Adjustment 

Taxation ( including 

provision for Deferred Tax) 

20.21 

-8.83 -3.01 -0.23 -0.19 -0.11 - 

-104.23 -0.21 29.10 0.34 

Extra Ordinary Item (446.95) - (223.96) 

PAT -798.90 -161.39 -228.72 -48.09 9.91 7.01 

Comments: 

i) Extraordinary items in YR 2006 represents subsidy receivable written off 

consequent to the decision of Hon ble Supreme Court. 

ii) Extraordinary items in YR 2008 represents provision for diminution in the value 

of investments 

iii) Tea Industry being seasonal figures for the 6 month ended on 30.9.2010 are not 

representative for the whole year. 

10 --

9 LOANS , CREDIT FACILITIES AND LIABILITIES: 

(A) Fertilizer Undertaking 


11 -- 

O/s 

30.9.10 

% of 

settlement 

proposed 

(Rs / Lakh) 

Amount Waiver 

Payable 

I. Secured Loans, Debentures etc. of 

Banks and FI's 

Total Banks and FI's Debts other than 

Addl WC 57015.00 39.46% 22500.00 34515.00 

II. Additional Working Capital 

Total Addl Working Capital 3221.00 100% 3221.00 0.00 

Total Secured Loans of Banks & FI's 60236.00 42.70% 25721.00 34515.00 

Interest Accrued & due 4430.02 0% 4430.02 

Total Secured Loans and Interest 64666.02 25721.00 38945.02 

III.Employees Dues 7943.61 100% 7943.61 0.00 

IV. Statutory Dues: 179.67 100% 179.67 0.00 

V. Other Unsecured Trade Creditors / 

Liabilities 

KESCO 8113.12 25% 2028.28 6084.84 

IOC 5668.59 25% 1417.15 4251.44 

Security Deposits 493.79 25% 123.45 370.34 

Suppliers / Creditors 3041.19 25% 760.30 2280.89 

Advance from Customer 95.49 25% 23.87 71.62 

Interest Accrued 370.23 0% 0.00 370.23 

Others 584.19 25% 146.05 438.14 

Provision for Current Expenses 500.00 100% 500.00 0.00 

Sub Total 18866.60 4999.09 13867.51 

Total Secured Loans and Unsecured 

Creditors Liabilities - Fertilizer Undertaking 

(A) 91655.90 38843.37 52812.53 

(B) Tea Undertaking and other Liabilities of 

the Fertilser Undertaking ; 

I. Working Capital / Loan (To Continue): 

(a) Working Capital 2431.50 100% 2431.50 0.00 

(b) WCTL and Loan 3568.50 100% 3568.50 0.00 

Total (a+b) ( To continue) 6000.00 100% 6000.00 0.00 

II. Other Secured Loans: 1180.00 49% 578.20 601.80 

III. Unsecured Loans 

15% Optionally Convertible Debentures (OCD) 25.00 25% 6.25 18.75 

Loan Under Housing Scheme from 

Housing Board 7.37 100% 7.37 0.00 

Loans from Bodies Corporate 3010.24 25% 752.56 2257.68 

Fixed Deposits 7773.35 85% 6607.35 1166.00 

FCCB 14575.00 25% 3643.75 10931.25 

Interest Accrued on FD's 795.13 0% 0.00 795.13 

Interest Accrued on other unsecured loans 216.88 0% 0.00 216.88 

Foreign Exchange Fluctuations 6619.30 0% 0.00 6619.30 

Unsecured loans from Promoters 

( Cont. in CDR) to be converted into Equity) 3055.50 3055.50 0.00 

Interest Accrued on FCCB 3819.38 0% 0.00 3819.38 

Interest Accrued to ICD's 121.27 0% 0.00 121.27 

Sub-total 40018.42 14072.78 25945.64


IV, Employees Dues: 5998.83 100% 5998.83 

V. Statutory Dues: 1627.36 100% 1627.36 0.00 

VI. Other Unsecured Creditors / 

Liabilities 

(a)Non Current Period: 

Suppliers / Creditors ( Non Current) 1915.79 25% 478.95 1436.84 

L&T Finance 42.07 25% 10.52 31.55 

Bills Discounting( Private Parties) 323.66 25% 80.92 242.75 

Provision for Interest 406.91 0% 0.00 406.91 

Sub-total (a) 2688.43 570.38 2118.05 

(b)Current Period: 8397.45 100% 8397.45 0 

Total Other Unse. Creditors / Liabilities 

(a+b) 11085.88 8967.83 2118.05 

Total Secured and Unsecured Loans / 

Other unsecured creditors / liabilities (B) 65910.49 37245.00 28665.49 

Tea excl bank borrowings Rs 6000 lakh 

to continue and current creditors 51513.04 22847.55 28665.49 

Total Liabilities of Fertilizer and Tea 

(A+B) 157566.39 76088.37 81478.02 

10 MARKET REPORT / MARKETING ARRANGEMENT 

10.1 The Company s Chand Chhap brand of Urea was one of the strongest Urea 

brands in the fertilizer market in Northern India. The plant is ideally located in 

agriculture belt and in decontrol scenario, with the brand equity of Chand 

Chhap , the entire production of Urea can be sold within a radius of 100 miles. 

The dealer network of the Company is in the entire northern India which needs 

to be revamped on resuming the plant operation . 

10.2 Tea is generally sold through brokers in auction centers at Siliguri and Kolkata. 

Loose tea is also sold all over India through a network of agents. 

10.3 INDUSTRIAL SCENARIO 

India s fertilizer production has been stagnating for the last two decades 

and consumption is growing at a steady pace. No capacity has been 

added over more than a decade due to lack of incentives by the GOI. 

Under the current five year plan, GOI is laying strong emphasis on the 

development of the agri-sector and increasing food production. With the 

impetus, the demand for the fertilizer in general and Urea in particular is 

expected to grow at rates higher than those witnessed in the past. The 

country is becoming increasingly import dependent for farm nutrients. 

India imports about 20% of the world tradable surplus of urea, diammonium 

phosphate and muriate of potash. The country needs to 

increase the fertilizer output from 20 million tonnes to 40 million in order 

to reduce imports. Greenfield route for increasing the production 

capacity is very capital intensive with high gestation while revival of the 

existing plants would involve lower capital with short gestation period. 

12 --


11.0 MANUFACTURING FACILITIES & INFRASTRUCURE 

The company is having 2 products of manufacture viz Fertilizer and Tea. 

11.1 FERTILISER PLANT 

Land & Building: 

The unit is located at Block - A , Panki Pandu Scheme No. 40, Kanpur 

and is about 10 Km away from the heart of the city and 8 Km away from 

the Kanpur Railway Station. Panki, Kanpur, UP. 

Three long term leases were granted by the Kanpur Nagar Mahapalika 

on 15 th May, 1967, 1 st February, 1968 and1 st February, 1968 for an 

aggregating extent of 270.9667 acres of land in Plot Nos. 2, 2B and 5 

and situate in Block A, Panki Pandu Scheme No. 40 Kanpur for a period 

of 999 years effective from the dates thereof. Fertilizer Factory occupies 

an area of 243.4387 acres equivalent to 9,85,159.50 sq. mts in the said 

Plot Nos. 2, 2B and 5 and was transferred to Duncans Industries Ltd ( 

earlier known as Chand Chhap Fertilizers And Chemicals Ltd) 

Building Structures are built in accordance with the requirement of the 

Plant and other accessories supporting system. Necessary structures 

are either load bearing structures or framed structure with different type 

of roofing as per requirement of Plant with Roads, open yards boundary 

walls, etc. 

(I) 

(i) 

Utilities 

Power and Steam 

The power supply and distribution system of the plant is 

connected from 132 KV supply line of Kanpur Electricity Supply 

Company (KESCO) and sanctioned load is 81 MVA. 

The captive power plant has a power generating capacity of 12 

MWH using a back pressure turbo generator set with back 

pressure steam . There are two boilers and both are coal fired 

each of 70 T/hr steam rising capacity. 

(ii) 

(iii) 

Water 

The water is drawn from the Lower Ganges Canal to meet the 

needs of the DIL factory to the 2 reservoirs of 40 million gallons 

and 30 million gallons respectively. . 

Effluent Treatment 

Industrial effluent emanating from non-nitrogenous effluents does 

not contain free ammonia and contains other relevant pollutants 

13 --


within the allowable limits. The nitrogenous effluents contain 

ammonia and / or urea in concentrations is treated in the 

respective plant built in treatment facilities and recycled and used 

as make up water to cooling tower. 

(II) 

(III) 

Manpower 

The plant has a skilled workforce that has been with the Company 

almost ever since the operations began. 

Raw Materials 

IOC has been the sole supplier of naphtha to DIL. Supplies are 

made mostly from Mathura. Koyali. Bogaingaon and Barauni 

refineries. Major quantity of naphtha is supplied from Mathura 

refinery and unloaded at unloading bay. 

(IV) 

Plant & Machinery 

The Plant & Machinery relating to the Fertilizer Undertaking 

consists of Ammonia manufacturing plants, Urea production plant 

viz. 3 (three) identical streams of Urea Plants, captive power 

plants, Naphtha Vapourisers, reformers, ammonia converter, 

pollution control equipment, pipe lines, fittings, railway siding, tube 

wells, storage tanks, together with other moveable assets 

including air conditioners, stand by systems, data processing 

machines, air conditioning plants, furniture & fixtures, vehicles, 

locomotive engines etc. 

The various processes and associated facilities for producing 

ammonia and urea are as follows: 

(i) 

(ii) 

(iii) 

Ammonia Plant 

The ammonia plant is designed to produce 1244T/day 

(1332T/day up rated) ammonia, is based on ICI Steam 

Naphtha Reforming Process. The plant is divided into three 

completely independent streams, each producing ammonia 

@415/T/day (444T/day up rated). 

Urea Manufacture 

The urea plant is a Mitsue Toatsu Total Recycle C 

process from TEC Japan, designed to produce 2046 T/day 

(2250T/day up rated) of prilled urea. It is divided into three 

completely independent parallel streams, each producing 

682T/day (750T/day up rated). 

Urea Bagging 

There are four packing lines 3 in operations and 4th stand 

by.Each line has two spouts and bags are applied to spouts 

14 --


manually. Each bag fills and drops on moving conveyor 

underneath at the interval of 6 seconds and travels to 

sewing conveyor for stitching by the sewing machines 

provided on pillars. 

(iv) 

Off-site Facilities 

The following facilities have been provided in the 

complex: 

(a) 

(b) 

(c) 

(d) 

Naphtha Storage and Handling System 

Process and fuel naphtha consumed by the Fertilizer Plant 

is the product of the IOC refineries, delivered by rail and 

pipeline. From the IOC terminal at Panki naphtha is 

delivered through underground pipeline to the Storage 

tanks within the battery limits. 

PSR Plant 

The PSR unit is designed to de-sulphurise 500T/day (Up 

rated to 745 MT/day) of straight run naphtha, laden with 

total sulphur 1500ppm to give product having not more 

than 5 ppm sulphur. 

Inert Gas Plants 

These plants ensure the supply of about 1500 m³/hr 

oxygen and moisture free good quality Nitrogen to the 

other process plants, which is used for purging of the 

vessels etc. It also supply 575 m³ of cracked gas for the 

start up of ammonia plants. 

Ammonia Storage & Handling System 

Ammonia storage and Handling System consists of two 

numbers of insulated ammonia storage tanks operating at 

12 WG each having a nominal capacity of 1500 MT and 

associated refrigeration system. The refrigeration plant 

consisting of three compressors and condensers etc. is 

designed to receive 18T/hr liquid ammonia at 30°C. 

15 --


11.2 TEA UNIT: 

The Tea gardens and processing factories of the company are 

situated in the State of West Bengal and have approximately 17 

million kg per annum of tea manufacturing facility. 

The details of Tea estates of the company are as under: 

Location 

Hectares 

1 Bagracote 479.62 

2 Birpara 886.39 

3 Dumchipara 660.28 

4 Garganda 498.96 

5 Gungaram 775.47 

6 Hantapara 629.9 

7 Kilcott 415.95 

8 Lankapara 727.61 

9 Marybong 284.52 

10 Nagaisuree 605.06 

11 Runglee 183.97 

12 Tulsipara 445.2 

Sub Total 6592.93 

Projects 

Terai Land 769.57 

Madanhat Land 194.29 

Sub Total 963.86 

Total 7556.79 

All the 12 factories of the DIL are having complete processing facility for 

manufacturing about 17 million kg Tea per annum 

The electric power is available from WBSEB and it also has standby captive 

arrangement through DG sets. 

All incoming green tea leaves are collected from the garden and are weighed 

and then sent to Withering house for proper withering to reach about 65-70% 

withered leaves followed by Crushing and Rolling by CTC machines, Drying 

and Grading and then inspected and tested by QA Deptt followed by Packing 

and Despatch. It is ensured that Quality products are supplied to the market. 

The Company has about 19500 personnel on its roll and during peak season 

it also deploys temporary labour for its operations. 

Due to severe liquidity crisis faced by the Company, replacement of some of 

the old equipments could not be carried out in the past, which has now been 

undertaken to reduce the cost of processing. 

16 --

12. THE REHABILITATION SCHEME 


The Rehabilitation Scheme envisages following strategy for 

revival of the company: 

i. De-merger of Fertilizer Unit into a new company KFCL ( 

Kanpur Fertiliser & Cement Ltd) at book value of assets of Rs 

101.14 Cr and liabilities of Rs 388.43 Cr (at settlement amount) 

with share exchange ratio of 1 equity share of KFCL for 40 

equity shares of DIL and Infusion of fresh funds of Rs 742.77 Cr 

out of which Rs 400 Cr in the form of equity and Rs 342.77 Cr 

in the form of interest free secured loans into the new 

company. 

ii. OTS of dues of secured creditors at Rs 225 Cr against principal 

o/s of Rs 570.15 Cr (39.46% payment of principal dues), Addl 

working capital o/s wc dues of Rs 46.55 Cr to be settled at 100 

% out of which Rs 14.34 Cr already paid while Rs 60 Cr to 

continue as working capital for tea division. 

iii. Settlement of other liabilities Other Secured Lenders (OCD NCD 

and secured deposits Rs 11.80 Cr at Rs 5.78 Cr (49% payment) 

Unsecured Lenders: ICD, FCCB & OCD of Rs 176.10 Cr at Rs 

44.03 Cr (25% payment) / Fixed Deposits of Rs 77.73 Cr at Rs 

66.07 Cr ( 85% payment). 

iv. Settlement of unsecured creditors of Fertiliser Undertaking and 

Residual DIL @25% of principal dues: 

v. Payment of statutory dues 

vi. Settlement of dues of the workmen of the Fertilizer Division 

vii. 60% de-rating of share capital of DIL 

viii. Capital expenditure of Rs 229.30 Cr on Fertiliser Plant: 

ix. Infusion of fresh funds of Rs 11.65 Cr in the form of equity 

and Rs 26.85 Cr interest free unsecured loans / equity in 

DIL. 

x. Conversion of existing unsecured loans of Rs 30.56 Cr 

brought in by the promoters into equity at par, post derating: 

xi. Relief and concessions from various concerned parties: 

12.1 De-merger of Fertilizer Unit into a new company: 

Corporate restructuring of DIL is proposed by way of de-merger of all 

assets of the fertilizer undertaking at its book value of Rs 101.14 Cr and 

liabilities of Rs 388.43 Cr (at settlement amount) and transfer by way of 

a Strategic Joint Venture between the existing Promoters of DIL and M/s 

Jaiprakash Associates Ltd and vesting of the said undertaking into a new 

company namely Kanpur Fertilizers & Cement Ltd. ( KFCL or the 

Transferee Company ), leaving the tea operation in DIL. 

KFCL will be a wholly owned subsidiary of M/s. Jaypee Uttar Bharat Vikas 

Pvt Ltd ( JUBVPL) which in turn is a 50:50 Joint Venture formed between 

17 --


the existing promoters ( through their Group Company- M/s. ISG Traders 

Ltd ) and M/s Jaiprakash Associates Ltd.( through their WOS - M/s 

Jaypee Fertilizers & Industries Ltd.). 

The holding structure of KFCL is set out below: 

i) Kanpur Fertilizers & Cement Ltd (KFCL) (wholly owned subsidiary of 

JUBVPL) 

It is a wholly owned subsidiary of JUBVPL which has been formed with 

the initial share capital of Rs 10 lakh which will be increased by Rs 

400.63 Cr on allotment of equity shares of Rs 400 Cr to JUBVPL and 

Rs 0.53 Cr to the existing share holders of DIL in terms of the scheme. 

ii) 

Jaypee Uttar Bharat Vikas Pvt. Ltd. (JUBVPL) ( Joint Venture 

Company) 

It is a 50:50 JV Company of Jaypee Fertilizers & Industries Ltd. ( 

Jaypee Group) and ISG Traders Ltd. ( existing Promoter Group) has 

been formed with the initial equity share capital Rs 15 lakh which is 

held by Jaypee Fertilizers & Industries Ltd. and ISG Traders Ltd. in 

the ratio of 50:50 which will be enhanced to Rs 20 Cr in the equal ratio. 

iii) 

ISG Traders Ltd (ISGTL) (Existing Promoter Group) 

The existing share capital of the company is Rs 22.86 Cr out of which 

92.98% shares are held by the Promoters and associate companies. 

Balance equity is with the non promoters entities / public. 

iv) 

Jaypee Fertilizers & Industries Ltd. (JFIL) (Jaypee Group) 

It is a wholly owned subsidiary (WOS) of M/s Jaiprakash Associates 

Ltd (JAL)( Strategic Investor) has been formed with the initial share 

capital of Rs 25 lakh by JAL. The equity capital of this company shall 

be increased to Rs 250 Cr or more by M/s JAL / its associates. 

12.1.1 Rationale / Justification for De-merger: 

Due to non operation of the fertilizer unit, the Company has been 

continuously incurring huge losses and as a result , performance of the 

Tea units of the company has also suffered very badly. Due to the 

substantial requirement of working capital for the operation of fertilizer 

plant the funds of the company remained utilized in the said unit and 

retrospective downward revision of RPS by GOI, the requirement of 

funds of Tea unit could not be met. 

Further, businesses of Fertilizer and Tea are entirely unrelated and they 

do no have synergies of operations and have different dynamics, require 

different strategies for growth and different focus for alliance / 

consolidation. In view of the same and to cure the problems, which are 

being faced by the Company, it has been proposed that Fertilizer 

undertaking of the Company be separated from the Tea undertaking, so 

that adequate attention is paid by the separate Board of Directors to the 

18 --


respective businesses and the adverse conditions prevailing, in any, of 

these businesses do not affect the business of other undertaking. 

The de-merger shall also enable the respective business undertakings 

to raise the funds, which are needed for their revival based on their own 

strengths. The Company s liabilities would substantially reduce upon 

settlement / payment of dues of creditors , out of the funds to be 

inducted by JUBVPL the JV Co. , and conversion of feed stock of 

fertilizer plant from Naphtha to Gas cum Naphtha along with additional 

capital expenditure on energy saving measures and revamping the plant 

will improve the operational efficiency of the fertilizer plant which, in turn, 

is expected to turn both the companies profitable / viable on long term 

basis. 

The Scheme of Arrangement between DIL and KFCL for proposed 

De-merger Scheme is as per Annexure A . 

The board of M/s Duncans Industries Ltd in its meeting held on 17.06. 

2010 has approved the participation of M/s Jaypee Fertilizers & 

Industries Ltd.(a Jaypee Group Co) as a strategic investor for the revival 

and rehabilitation of the company's fertilizer unit at Panki, Kanpur 

through JUBVPL the JV Co. of M/s Jaypee Fertilizers & Industries Ltd 

and M/s ISG Traders Ltd, a group company of the existing promoters of 

DIL, upon sanction of the Rehabilitation Scheme and de-merger of the 

fertilizer undertaking into a separate entity i.e. KFCL. 

12.1.2 Share Exchange / Swap Ratio : 

The Fertilizer undertaking is getting liabilities of Rs 1182.19 Cr against 

assets of Rs 101.13 Cr as per book value being transferred to KFCL as 

on 01.10.2010. The net assets value is Rs (-) 1081.06 Cr as per book 

value as on 30.9.2010. As per estimated fair value of assets, the net 

assets value is arrived at Rs (-) 732.20 Cr after accounting for liabilities 

of Rs 1182.19 Cr and contingent liabilities of Rs 22.97 Cr( Total 

Liabilities: Rs 1205.16 Cr) whereas, the assets are valued at Rs 336.40 

Cr ( Fixed assets Rs 286.75 Cr and current assets: Rs 49.65 Cr). 

Exchange ratio of 1 equity share of KFCL for 40 equity shares of DIL is 

proposed as per Report dated 27.10.2010 of M/s Chaturvedi & 

Partners, Chartered Accountants, New Delhi, on exchange ratio for the 

proposed de-merger of fertilizer undertaking of the company with 

Kanpur Fertilizer & Cement Ltd. As per valuation report, to arrive at the 

exchange ratio, a nominal value of Rs 0.01 paisa per share has been 

assigned to the shares of DIL which subsequent to the restructuring and 

reduction of capital as proposed works out to Rs 0.25/- per share of Rs 

10/- of DIL ( Post restructuring and reduction and consolidation of share 

capital) and the same has been considered for the purpose of 

determining share exchange ratio. 

12.1.3 Approval of Secured Lenders for de-merger: 

As per the minutes of CDR Lenders Meeting held on 30.8.2010, ARCIL, 

the largest lender with an exposure of Rs 319.16 Cr (47.16%) is 

agreeable In principle to the de-merger of the Fertilizer Divn and 

19 --


Jaypee Group forming a joint venture company. CBI, SBI, SBT 

and SBP vide their letters dated 15.02.2011 , 25.02.2011 , 

26.02.2011 and 07.03.2011 respectively have also conveyed 

their in principal approval to the restructuring / de-merger of the 

Fertilizer Division and OTS proposal contained in the DRS. CDR 

has also conveyed the approval of OTS and de-merger of the 

Fertiliser Division vide its letter dated 24.02.2011. Thus the 

secured lenders having 97.47% of the principal dues have already 

accepted the OTS proposal and de-merger of the Fertiliser 

Division of the Company. 

12.1.4 Infusion of Funds in KFCL for revival of Fertilizer 

Undertaking: 

Infusion of fresh funds of Rs 742.77 Cr out of which Rs 400 Cr 

in the form of equity and Rs 342.77 Cr in the form of interest free 

secured loans into the new company i. e. Kanpur Fertilizers & 

Cement Ltd. (KFCL- Transferee Company ) by M/s. Jaypee Uttar 

Bharat Vikas P Ltd. (JUBVPL) a Joint Venture Company (JV Co.) 

incorporated by M/s Jaypee Fertilizers & Industries Ltd (JFIL) a 

wholly owned subsidiary (WOS) of the Strategic Investor, viz., 

M/s. Jaiprakash Associates Ltd. and ISG Traders Ltd, a group 

company of the existing promoters of DIL, is proposed. 

(i) 

As the existing secured lenders have expressed their inability to 

infuse further funds, a strategic investor has been proposed to be 

inducted to infuse fresh funds required for revival of the fertilizer 

undertaking. 

(iii) 

(ii) M/s. Jaiprakash Associates Ltd ( herein after referred to as JAL or 

Strategic Investor ) has evaluated the potential of the fertilizer 

business of DIL and considering long term viability of the fertilizer 

business, has agreed to invest for revival of fertilizer undertaking . 

JAL, and its wholly owned subsidiary (WOS) i.e. M/s Jaypee Fertilizers 

& Industries Ltd. has agreed to infuse fresh funds in the KFCL through 

the JV Co. M/s. Jaypee Uttar Bharat Vikas Pvt. Ltd. and / or directly by 

the WOS, for revival and rehabilitation of the Fertilizer Undertaking of 

DIL on De-merger of the Fertilizer Undertaking of DIL, i.e., all assets, 

liabilities, contracts, rights, and titles from DIL and its transfer and 

vesting into KFCL on as is where is basis. In addition, KFCL shall 

also bear certain other identified liabilities of Rs 115.88 Cr which shall 

be paid by DIL out of the funds to be provided by KFCL. 

A Joint Venture Company M/s. Jaypee Uttar Bharat Vikas Pvt Ltd (here in 

after referred as JV Co. JUBVPL) has been incorporated, the existing 

and future equity share capital of which shall be held in the ratio of 

50:50 by WOS of Strategic Investor and ISG Traders Ltd ( a part of 

existing promoter group of DIL) for participating in the revival and 

rehabilitation of fertilizer business of DIL on mutually 

20 --


(iv) 

agreed terms. The Strategic Investor and existing promoters of DIL 

shall jointly assist for technical, financial and management expertise 

required for completing the revival and rehabilitation of the Fertilizer 

Undertaking of DIL and ensure OTS of the dues of secured creditors, 

settlement of dues of the secured creditors other than the FI s and 

Banks, unsecured debts / creditors including settlement of the dues of 

the workers, employees, etc. and other unsecured liabilities. 

JUBVPL the JV Co based on de-merger of fertilizer undertaking is 

agreeable to induct funds in KFCL required for payment of OTS of 

secured lenders, settlement of dues of the secured lenders other than 

the FI s and Banks, unsecured debts / creditors including settlement of 

the dues of the workers, employees, other unsecured liabilities and for 

meeting the requirement of (i) converting the plant from Naphtha to a 

dual feed stock i.e. Gas cum Naphtha based plant, energy saving 

measures and revamping of plant etc. involving capital expenditure of 

approx. Rs 229.30 Cr which is essential as per the policy of the GOI as 

well for long term viability of the plant, (ii) start-up of the fertilizer plant, 

and (iii) working capital required for operation of fertilizer plant. 

12.1.5 M/s Jaiprakash Associates Ltd (JAL): 

a) Brief Profile: 

Jaiprakash Associates Ltd, the flagship Company of the Jaypee 

Group, an infrastructure conglomerate involved inter-alia in 

manufacture & marketing of Cement; development of 

Expressways & Real Estate; Tourism & Hospitality, and has over 

4 decades of experience in execution of river valley and 

hydroelectric power projects undertaking EPC and turnkey 

contracts, as the lead construction company or as leader of 

consortia and through joint ventures. JAL has been involved in the 

implementation of hydro-electric projects across the country 

involving an aggregate generation of over 10,000 MW. The 900- 

MW Baglihar Hydroelectric Project in Jammu & Kashmir, has 

been the largest EPC project executed in the country in 

Hydropower sector so far. 

b) Shareholding pattern: 

Sl. 

No. 

Category of shareholder Total No of shares Total shareholding as % 

of total no of shares 

A. Shareholding of Promoter 97,70,92,441 45.99 

and Promoter Group 

B. Public Shareholding 

Institutions 76,28,77,132 35.91 

Non-institutions 38,46,65,060 18.10 

Total Public Shareholding 114,75,42,192 54.01 

C. T0TAL (A)+(B) 2,124,634,633 100.00 

21 --


c) Financial Results: 

(Rs\Cr) 

YE 31 st March 2006 2007 2008 2009 2010 

Working Results Audited Audited Audited Audited Audited 

Gross Turnover 3,324.51 3,578.35 4,273.89 6,147.93 10,355.43 

EBITD 1,517.13 1,040.21 1,385.79 2,068.63 4,895.60 

Interest 239.74 257.25 339.14 504.32 1,055.79 

Depreciation 151.46 163.05 203.30 308.97 456.06 

Exceptional Items 361.37 - - - 1,214.72 

Prior Period Adjustment - - - 4.36 (0.70) 

Taxation 124.57 205.01 233.68 353.97 673.31 

Extraordinary Items - - - - (211.94) 

Profit After Tax 639.99 414.90 609.67 897.01 1,708.36 

Financial Position 

Share Capital 215.06 219.24 234.30 236.76 424.93 

Share Capital Suspense - - - 43.60 - 

Reserve & Surplus 2,467.14 2,653.71 3,965.20 6,258.85 8,075.79 

Equity Warrants - - 398.50 158.80 - 

Less : Misc. Expenditure 0.51 0.14 0.10 3.86 - 

to the extent not w/off 

Net Worth 2,681.69 2,872.81 4,597.90 6,694.15 8,500.72 

Secured Loans 2,721.38 3,685.95 4,640.30 7,338.28 11,358.01 

Unsecured Loans 1,498.40 1,829.81 3,665.28 5,767.89 6,550.70 

Deferred Tax Liabilities 490.18 499.43 571.15 720.04 956.08 

Total Liabilities 7,391.65 8,888.00 13,474.63 20,520.36 27,365.51 

Fixed Assets (Net) 

3,343.73 5,150.09 7,930.52 11,899.85 14,510.32 

including CWIP 

Investments 1,557.04 1,778.74 3,224.83 4,465.20 5,576.26 

Deferred Tax Assets 6.98 9.32 11.49 30.41 32.83 

Net Current Assets 2,483.90 1,949.85 2,307.79 4,124.90 7,246.10 

Total Assets 7,391.65 8,888.00 13,474.63 20,520.36 27,365.51 

12.1.6 M/s Jaypee Fertilizers & Industries Ltd. (JFIL) (Wholly Owned 

Subsidiary of M/s Jaiprakash Associates Ltd): 

a) Brief Profile 

M/s Jaypee Fertilizers & Industries Ltd has been incorporated on 

3.6.2010, under Companies Act, 1956, in the State of UP as a wholly 

owned subsidiary (WOS) of the JAL (Strategic Investor). Its 

authorized share capital is Rs 2,500 lakh and paid-up equity share 

capital is Rs 25 lakh. It has one of its objectives to undertake the 

business of manufacturing, selling and trading of fertilizers and 

related activities. 

22 --


b) Shareholding pattern: 

S.No. Name of shareholder No of shares Total shareholding as 

a % of total number 

of shares 

1. Jaiprakash Associates Ltd. 249400 99.76 

2. Shri J.P. Gaur *100 0.04 

3. Shri Manoj Gaur *100 0.04 

4. Shri Sunil Kumar Sharma *100 0.04 

5. Shri Suren Jain *100 0.04 

6. Shri S.D. Nailwal *100 0.04 

7. Shri Harish K. Vaid *100 0.04 

Total 2,50,000 100.00 

* Beneficial interest in these shares being held by Jaiprakash Associates Ltd. 

12.1.7 M/s ISG Traders Ltd ( ISGTL): a group company of DIL: 

a) Brief Profile,: 

The Company was originally incorporated as Standard General 

Assurance Co. Ltd in 1943 and the name was changed to S.G. 

Investment & Industries Ltd in 1977. The name was again changed to 

ISG Traders Ltd on 31.12.2002. The Company is mainly engaged in 

trading of paper. The Company has diversified its activities to carry on 

business of technical, engineering, consultancy, designing, drawing, 

engineering of plant and machinery used in various diverse industries. 

b) Shareholding pattern 

The authorised share capital of ISGTL is Rs 5277 lakh The issued, 

subscribed and paid-up share capital at present is Rs 2285.66 lakh 

comprising of 2,28,68,987 equity shares of Rs 10/- each. 

c) Equity Shareholding pattern (As on 31.03.2010): 

Category No of Shares held % of Share holding 

A Promoters Holding 2,12,63,860 92.98 

B. Non- Promoters, Holding 16,05,127 7.02 

Total 2,28,68,987 100.0 

23 --


d) Past Working Results and Financial Position: (Rs / Lakh) 

Y.E. 31.06. 06 31.03. 07 31.03. 08 31.03. 09 31.03.10 

(15 months) (9 Months) 

Working Results Audited Audited Audited Audited Audited 

Gross Income 1198 652 2790 1112 1703 

EBIDT 962 -1288 1097 670 971 

Interest 637 243 567 605 839 

Depreciation 32 18 23 22 21 

Taxation 2 44 1 

PAT 291 -1549 462 42 111 

Financial Position 

Share Capital 1695 1695 1695 2286 2286 

Reserves and 

22103 22103 22094 24740 24850 

Surplus 

Secured Loans 3549 3798 3826 4967 7992 

Unsecured Loans 1569 1267 1325 535 537 

Total Liabilities 28916 28863 28940 32528 35665 

Fixed Assets (Net) 944 959 936 914 893 

Investments 18237 16237 14761 23194 25690 

Net Current Assets 6544 6926 8964 8420 9082 

Accumulated 

3191 4741 4279 0 0 

Losses 

Total Assets 28916 28863 28940 32528 35665 

Net Worth 20606 19057 19510 27026 27136 

12.1.8 M/s Jaypee Uttar Bharat Vikas Pvt Ltd (JUBVPL) (JV Co.): 


M/s Jaypee Uttar Bharat Vikas Pvt Ltd has been incorporated on 31.5.2010, 

under the Companies Act, 1956 in the State of UP. Its authorized share capital 

is Rs 100 lakh and paid-up equity share capital is Rs 15 lakh. It has one of its 

objectives to undertake and promote the business of manufacturing, selling and 

trading of fertilizers and related activities, directly or through promoting / 

investing companies. 

b) Board of Directors 

Name ( S/Sh) Age Qualification Experience Designation 

Suren Jain 

( Nominee of JFIL) 

S.D. Nailwal 

( Nominee of JFIL) 

S.D. M. Nagpal 

( Nominee of ISGTL) 

R. K. Pandey (Nominee 

of ISGTL) 

40 Degree in 

Production 

Engg. 

24 -- 

19 years in corporate 

planning, finance and 

management 

63 Fellow of ICSI 41 years in project 

financing , corporate 

planning and 

secretarial work. 

69 M.A. (Eco) and 

ICWA 

71 M.Com. LLB., 

FCS,Dipl. In 

Business Adm. 

Ex- ED (F&A) SAIL 

Redt. ED Delhi Stock 

Exchange 

Chairman 

Director 

Director 

Director


JFIL and ISGTL shall have representation on the Board of Directors of 

JUBVPL the JV Co. in proportion of their respective shareholding i.e. 50:50. 

Existing board of directors of the JV Co is as under: 

c) Shareholding pattern: 

S. Name of shareholder ( S/Sh) 

No. 

Total no 

of shares 

Total shareholding 

as a 

% of total number 

of shares 

1. Manoj Gaur *2000 1.33 

2. Sameer Gaur *2000 1.33 

3. Sunil Kumar Sharma *2000 1.33 

4. Suren Jain *2000 1.33 

5. Harish K. Vaid *2000 1.33 

6. M/s Jaypee Fertilizers & Industries Ltd. ( 65000 43.34 

JFIL) 

7. M/s ISG Traders Ltd. (ISGTL) 75000 50.00 

Total 1,50,000 100.00 

* Beneficial interest in these shares being held by Jaypee Fertilizers & 

Industries Ltd. 

12.1.9 M/s Kanpur Fertilizers & Cement Ltd (KFCL): 


Kanpur Fertilizers & Cement Ltd has been incorporated on 31 st 

May, 2010, under the provisions of the Companies Act, 1956, in 

the State of Uttar Pradesh. Its authorized share capital is Rs 10 

Cr and paid-up equity share capital is Rs 10 lakh. It has one of its 

objectives to undertake the business in manufacturing, selling and 

trading of fertilizers and related activities. 

b) Board of Directors 

S.No. Name ( S/Sh) Age Qualification Experience 

1. Manoj Gaur, 

Chairman 

46 B.E. Civil (BITS Pilani) 25 years in Cement 

Production and 

Marketing, Corporate 

and Finance. 

2. Ajay Sharma, 55 LLB. Master in Business 

Management (BHU) 

3. S.D. M. Nagpal 


4. R. K. Pandey 


25 -- 

25 years in HR & IR and 

Cement Production 

Planning and Marketing 

69 M.A. (Eco) and ICWA Ex- ED (F&A) SAIL 

71 M.Com. LLB.,FCS,Dipl. 

In Business Adm. 

Retd. ED Delhi Stock 

Exchange 

JFIL and ISGTL shall have representation on the Board of Directors of 

the KFCL in proportion of their respective shareholding i.e. 50:50 in 

JUBVPL the JV Co.


c) Shareholding pattern: 

S.No 

. 

Name of shareholder (S/Sh) Total no of 

shares 

% 

Shareholding 

1. Manoj Gaur *8000 8.00 

2. Sameer Gaur *7000 7.00 

3. Suren Jain *7000 7.00 

4. S.D. Nailwal *7000 7.00 

5. Harish K Vaid *7000 7.00 

6. R.S. Kuchhal *7000 7.00 

7. M.M. Sibbal *7000 7.00 

8. M/s Jaypee Uttar Bharat Vikas P 

50000 50.00 

Ltd (JUBVPL) 

Total 1,00,000 100 

* Beneficial interest in these shares being held by Jaypee Uttar 

Bharat Vikas Pvt. Ltd. 

12.2 OTS of dues of secured creditors at Rs 257.21 Cr against 

principal o/s of Rs 616.71 Cr 

a) An amount of Rs 257.21 Cr shall be paid for payment of OTS 

amount of Rs 225 Cr and balance of additional working capital of 

Rs 32.21 Cr of Banks and Financial Institutions shall be paid by 

KFCL to the banks and financial institutions within 90 days from the 

date of sanction of the Scheme in full and final settlement of their 

dues. 

Principal outstanding of DIL to its secured lenders was Rs 676.70 

Cr as on 31.3.2007 (including the outstanding against devolvement 

of bank guarantees ), out of which cash credit dues of Rs 60 Cr 

serviceable from tea operations would be retained in the residual 

DIL, and the balance amount of the principal dues aggregating to 

Rs 616.71 Cr, out of which Rs 14.34 Cr towards additional 

working capital has already been paid uptill 31.03.2010 by DIL, and 

the balance debt of Rs 602.36 Cr is proposed to be settled for Rs 

257.21 Cr and the settled amount shall be transferred to KFCL. 

26 --


b) Lender-wise principal dues outstanding as on 31.3.2010 are 

as follows: 

(Rs\Cr) 

Lenders 

Cash Addl. WC Balance of Total % of Addl. OTS 

Credit to disbursed principal Principal dues WC Amount 

continue in 2005 dues of Dues 

already to be 

in Tea for Cash 

paid by paid by 

DIL Fertiliser Credit, 

DIL KFCL 

Unit WCTL, 

TL s, 

Debentures 

1 State Bank of India 42.95 7.68 102.42 153.05 22.62% 7.68 40.42 

2 ARCIL (ICICI) 96.97 96.97 14.33% 38.27 

Central Bank of 

14.20 69.29 83.49 12.34% 41.54 

3 India 

4 ARCIL(PNB) 11.37 4.63 62.86 78.86 11.65% 0.80 28.64 

ARCIL (IDBI & 

67.22 67.22 9.93% 26.53 

5 IDBI Bank) 

ARCIL (UCO 

7.09 33.00 40.09 5.92% 20.11 

6 Bank) 

ARCIL (Bank of 

7.09 28.93 36.02 5.32% 18.51 

7 Baroda) 

State Bank of 

5.86 24.56 30.42 4.50% 5.86 9.69 

8 Travancore 

Harsh 

20.00 20.00 2.96% 7.89 

9 Credit(HDFC) 

State Bank of 

18.01 18.01 2.66% 7.11 

10 Patiala 

11 SICOM 16.69 16.69 2.47% 6.59 

12 PICUP* 13.49 13.49 1.99% 5.32 

State Bank of India 5.68 3.32 9.00 1.33% 1.31 

13 (SBICI) 

14 Antariksh (ICICI) 7.50 7.50 1.11% 2.96 

15 WBIDC* 3.66 3.66 0.54% 1.44 

16 Partly Convertible 

2.23 2.23 0.33% 0.88 

Debentures(SBI 

Trustee) 

TOTAL 60.00 46.55 570.15 676.70 100.00 

% 

14.34 257.21 

* The aggregate dues of WBIDC and PICUP constitute 2.53% of the total dues of the 

secured creditors. They should also accept the OTS offer on the same lines as 

accepted by majority secured creditors constituting of 97.47% of secured debts 

c) Out of the working capital facilities of Rs 60 Cr to be retained in 

DIL, WCTL of Rs 24.31 Cr ( SBI share of Rs 21.47 Cr and SBICI 

share of Rs 2.84 Cr) and loan of Rs 11.37 Cr being share of 

ARCIL will be settled by DIL. 

d) Upon receipt of above OTS amount and balance of additional 

working capital, all the dues of the lenders shall stand settled 

without any further act, deed or thing to be performed and all 

procedural matters as to filing of necessary forms and returns for 

27 --


release of securities shall be done by all the secured lenders 

simultaneously. 

e) All securities including collaterals provided by the promoters of 

DIL / their associates in connection with the said facilities shall 

stand discharged / released by the lenders and all the title deeds 

and other documents kept as / evidencing security with respect to 

the assets (movable and immovable) of the Fertilizer Undertaking 

shall be released and delivered by the secured lenders in favour 

of and to KFCL and all the assets of the Fertilizer Undertaking 

shall be free from all and any existing encumbrances. 

f) Upon payment of OTS amount, the security on the assets of the 

Tea Division including personal guarantees of the promoters for 

WCTL / cash credit facility of Rs 60 Cr pertaining to Tea Division 

along with interest and other penal charges thereon, to be 

retained by the secured lenders. All other securities and 

personal guarantees provided as collaterals by the promoters / 

associates of DIL shall stand released by the lenders. 

g) All the secured creditors shall waive interest, coupons, penal 

/compound interest, balance of the principal amount, other 

charges / claims, rights etc. payable in respect of the above 

mentioned loans and cumulative preference shares held by 

secured lenders issued to them against part of the unpaid interest 

shall stand cancelled on sanction of the Scheme. 

h) In CDR MC cum joint CDR Lenders Meeting held on 30 th August, 

2010, SBI and SBP have in principle agreed to the settlement 

proposal as contained in the DRS subject to the final approval of 

their appropriate authority and CBI has given its in principle 

consent to the settlement proposal. ARCIL vide its letter dated 

27.08.2010 also stated that they are in principle agreeable to the 

de-merger of the Fertilizer Division through a JV with the Jaypee 

Group and DRS may be submitted to BIFR for circulation but they 

would communicate their decision on the settlement proposal as 

contained in the DRS after their necessary internal approval. 

Strategic Investor (Jaypee Group) has also conveyed their 

acceptance to proposal of the CDR lenders to bring in 50% of the 

settlement amount to be kept in a ESCROW Account with SBI 

(OA) on sanction of the Scheme. 

i) Further in the Joint Stakeholders Meeting (chaired by SBI ) held 

on 1.10.2010. ARCIL reiterated its in principle consent to the demerger 

of the Fertilizer Division and advised DRS may be 

28 --


submitted to the Board for circulation but they would communicate their 

decision on the settlement proposal as contained in the DRS after their 

necessary internal approval as stated in CDR MC cum joint CDR 

Lenders Meeting held on 30 th August, 2010. 

j) The other lenders viz SBT, SICOM, Harsh Credit Pvt. Ltd. and 

Antrakish Vyapar Pvt. Ltd. have also conveyed their in principle 

acceptance to the OTS proposal. 

k) However, PICUP ( having 1.99% share in principal dues) has informed 

that the OTS proposal is not as per policy of the Corporation where as 

WBIDC (having 0.54% share in principal dues) vide its letter dated 

10.11.2010 informed that OTS as envisaged with the secured lenders is 

not acceptable to them. 

l) ARCIL vide its letter dated 06.01.2011 have agreed to the de-merger of 

the Fertilizer Division through a JV Co with Jaypee Group and 

settlement amounts proposed to be paid to the secured lenders as 

envisaged in the DRS. Thus secured lenders having 97.47% of the 

principal dues have already accepted the OTS proposal and de-merger 

of the Fertiliser Division of the Company. 

12.3 Settlement of other liabilities: 

Other Secured Lenders, Unsecured Lenders / Debts/Fixed deposits 

a) The Company is having principal amount of Rs 11.80 Cr of 

secured optionally convertible debentures (OCD), nonconvertible 

debentures (NCD s) and deposits (against the 

security of investments held by DIL) from various companies / 

individuals and it is proposed to settle with them for Rs 5.78 Cr 

at par with OTS with Banks / FI s. 

b) OTS amount of Rs 5.78 Cr payable as above for settlement of 

other secured debts excluding the secured debts of FIs and 

Banks, will be paid by DIL out of the funds to be provided by 

KFCL within 90 days of sanction of Scheme by BIFR. Upon 

above payment all the securities including collaterals provided 

by the DIL / promoters / associates, etc. in connection with the 

said dues shall stand discharged and released by the debenture 

and deposit holders in favour of DIL. DIL shall have exclusive 

right on these investments. 

c) The Company had issued FCCB in 1996 aggregating 

to Swiss Francs 50 million to foreign investors with a maturity 

period of seven years. The FCCB holders have exercised 

their put option in 2001 and proceedings for recovery 

are pending before Hon ble High Court at Calcutta. The 

said dues shall also be settled at, 25% of the 

principal outstanding as on cut off date on converting 

29 --


to INR at exchange rate prevailing on the date of exercising the 

put option by FCCB holders, i.e. Rs 36.44 Cr and shall be paid 

by DIL out of the funds to be provided by KFCL in three equal 

annual interest free installments after a moratorium of one year 

from the date of sanction of scheme by BIFR. 

d) The principal amount of Fixed Deposits of Rs 77.73 Cr as on 

30.9.2010 shall be settled at 85% and Rs 66.07 Cr will be paid 

by DIL in full and final settlement out of the funds to be provided 

by KFCL. The repayment shall commence within 90 days and 

shall be completed within 180 days from the date of sanction of 

the Scheme. 

e) The outstanding dues of inter corporate deposits (ICDs) from 

various bodies corporate and 15% optionally convertible 

debentures, shall be settled at 25% of the principal outstanding 

of Rs 30.10 Cr and Rs 25 lakh respectively as on the cut off 

date for Rs 7.53 Cr and Rs 6.25 lakh respectively, and shall be 

paid by DIL out of the funds to be provided by KFCL in 3 equal 


from the date ofsanction of Scheme. 

12.4 Other Liabilities: 

Settlement of unsecured creditors of Fertiliser Undertaking and 

Residual DIL @25% of principal dues: 

Unsecured loans, unsecured trade creditors and other liabilities 

relating to Fertilizer Undertaking and residual DIL shall be settled 

to the extent of 25% of the principal amount thereof in installments. 

IOC: The outstanding dues of IOC, will be settled at 25% of the 

principal outstanding of Rs 56.69 Cr as on the cut off date 

for Rs 14.17 Cr, and shall be transferred to and paid by 

KFCL in 3 equal annual interest free installments after a 

moratorium of one year from the date of sanction of 

Scheme. 

KESCO: The outstanding dues of KESCO for supply of power to 

the fertilizer plant amounting to Rs 81.13 Cr will be settled 

at 25% as on the cut off date for Rs 20.28 Cr, and shall 

be transferred to and paid by KFCL in 3 equal annual 

interest free installments after a moratorium of one year 

from the date of sanction of Scheme 

30 --


12.5 STATUTORY DUES: 

The outstanding amount of statutory dues comprising State and 

Central Sales Tax / Trade Tax / VAT, Fringe Benefit Tax, Kanpur 

Nagar Mahapalika and Kanpur Cantonment Board Taxes, 

Provident Fund, and ESI, employees dues including contribution 

to various funds ( gratuity and pension funds) and other 

unsecured creditors / liabilities relating to Fertiliser Undertaking 

shall be transferred after the grant of waivers as envisaged in the 

Scheme, to KFCL. 

The statutory dues comprising PF, Cess on Tea Green Leaf, 

employees dues including contribution to various funds ( gratuity 

and superannuation funds), dues of the other unsecured creditors 

/ liabilities etc. relating to the Tea business shall be paid by DIL 

after grant of waivers as envisaged in the Scheme. 

12.6 Settlement of dues of the workmen of the Fertilizer Division : 

Settlement of dues of the workmen of the Fertilizer Division is 

proposed in terms of Registered MOU entered with the 

recognized workmen union i.e. IEL Employees Union dated 

06.06.2010 and about 99% workmen have also affirmed the terms 

and conditions of the MOU. 

Settlement with the Workmen of Fertilizer Division: 

The production at fertilizer plant was suspended / discontinued 

from 18 th December, 2005. Except workmen of essential services, 

guest house, other workmen were allowed special leave from 

1.06.2006. A Memorandum of Settlement dated 6 th June, 2010 

( MOS ), has been executed between the workers through their 

representing union i.e. IEL Employees Union ( IELEU ), and DIL 

and KFCL, which inter-alia contains provisions for settlement of all 

the dues, claims, including statutory dues of the permanent and 

casual workmen of Fertilizer Undertaking, provisions for payment 

of special gratuity, ex-gratia payments, and provisions for 

withdrawal of all legal proceedings by all workers / union. It has 

been agreed by IELEU that other than the payments to be made 

to the workers under the MOS, no other payments, whether 

statutory or otherwise, are required to be made to such workers 

who were in the employment of DIL with respect to the Fertilizer 

Undertaking. The MOS also provides new terms of employment 

on which the permanent workmen of Fertilizer Undertaking shall 

work after reopening of the plant. 

31 --


12.7 60% de-rating of share capital of DIL: 

As the losses have eroded the complete net-worth of the 

Company and the paid-up value of equity shares of the company 

does not reflect their true value, therefore existing paid-up equity 

share capital amounting to Rs 53.22 Cr shall stand de-rated by 

60%. The 8.25% Redeemable Cumulative Preference Shares 

amounting to Rs 9.50 Cr shall also stand reduced by 60%. 

As part of the restructuring under CDR, unpaid interest 

amounting to Rs 165.98 Cr of banks / financial institutions was 

converted into 0.001% Cumulative Redeemable Preference 

Share (CRPS). Since the principal dues of the banks and FI s 

shall be settled on OTS basis, their rights in existing CRPS shall 

be extinguished and written off fully. 

The amount outstanding in capital redemption reserve of Rs 15 Cr 

and debenture redemption reserve of Rs 11.87 Cr shall stand 

transferred / adjusted to / from accumulated losses. 

12.8 Capital expenditure of Rs 229.30 Cr on Fertiliser Plant: 

Conversion of fertilizer plant from Naphtha-based feedstock to 

Gas cum Naphtha based dual feedstock together with energy 

saving measures and revamping of the plant involving 

expenditure of Rs 229.30 Cr. 

12.8.1 Conversion of feedstock of fertilizer plant from Naphthabased 

to Gas cum Naphtha based dual feedstock, energy 

saving measures and revamping of plant: 

(i) 

(ii) 

Urea industry in India comprises of 30 plants, out of which 15 plants 

are gas based, 8 plants are naphtha based and 7 plants are based 

on other feedstock. In terms of capacity, 60% is gas based and 

40% is based on naphtha and other feedstock i.e. almost half of the 

country s fertiliser capacity is still not gas based. While the need to 

convert to gas is well established as per the policy of GOI, however 

availability of gas continues to be an area of concern. 

In view of the GOI policy, all non-gas based i.e. FO / naphtha 

based plants have to be converted to gas based plants. The site of 

DIL fertiliser plant at Panki is very strategically located and the HBJ 

pipeline is passing only 18 km away. Supply of gas to this site can 

be made available on creating the necessary facility by the GAIL. 

32 --


(iii) On conversion of feed stock from naphtha to gas cum naphtha, the 

handicap of DIL in using expensive naphtha will get wiped out and 

for all practical purposes it will become a gas based plant enjoying 

competitive advantage over the remaining such operational plants. 

On conversion to gas along with energy saving measures, 

revamping of plant, etc. at an approximate cost of Rs 229.30 Cr to 

be incurred in a phased manner, the plant will be benefited by 

substantial saving in energy consumption from 7.847 MMKCal / Mte 

of Urea in case of naphtha to 6.887 MMKCal / Mte on Gas based. 

The operational efficiency including energy efficiency from the 

conversion will not be mopped up for a period of 5 years from the 

date of commissioning of the converted plant, as per new policy of 

the Government. 

12.9 Infusion of fresh funds of Rs 11.65 Cr in the form of equity and 

Rs 26.85 Cr interest free unsecured loans / equity : 

Infusion of fresh funds of Rs 11.65 Cr in the form of equity post 

de-rating of existing equity capital and Rs 26.85 Cr by way of 

interest free unsecured loans/equity in 3 installment in 2011-12, 

2012-13 and 2014-15 by the Promoters / Associates is proposed 

into DIL. 

12.10 Conversion of existing unsecured loans of Rs 30.56 Cr 

brought in by the promoters into equity at par, post de-rating: 

Conversion of existing unsecured loans of Rs 30.56 Cr brought 

in by the promoters into equity at par after de-rating of existing 

share capital is proposed. 

12.11 Relief and concessions from various concerned parties: 

The Scheme also envisages grant of relief and concession by the 

agencies / authorities including Central Govt, State Govt of UP, 

Trade Tax Department of UP, Kanpur Electric Supply Company 

(KESCO), Indian Oil Corporation (IOC), Govt of West Bengal, 

CBDT, PF Authorities, ESI, and employees etc as stated below. 

33 --


13.0 COST OF SCHEME AND MEANS OF FINANCE : 

13.1 Cost of Scheme: 

The cost of the scheme of KFCL (Fertilizer) and DIL has been estimated as 

Rs. 1059.40 Cr, the break up of which is as under:- 

(Rs/ Cr) 

Cost of the Scheme KFCL DIL Total 

1 Payment of OTS Dues of TL and balance of 257.21 - 257.21 

additional working capital to Banks / FI s 

2 Payment of Late payment charges (Arcil and CBI) 5.65 5.65 

3 OTS Payment to Other Secured Dues (debentures, - 5.78 5.78 

ICDs) out of funds from KFCL 

4 Repayment of WCTL and loan - 35.69 35.69 

5 Payment of other unsecured debts i.e. FCCB / 

110.19 110.19 

FRCN Rs.36.44 Cr, Fixed Deposits Rs 66.07 Cr,, 

Inter Corporate Deposits Rs.7.53 Cr and OCD s 

Rs.0.07 Cr aggregating to Rs. 110.10 Cr out of 

funds from KFCL and Housing Board Rs. 0.08 Cr) 

6 Statutory Dues 1.74 9.03 10.77 

7 Payment of Workmen / Employees Dues 77.61 34.85 .112.46 

8 Other Unsecured Creditors / Liabilities 49.99 23.68 .73.67 

9 Funds for settlement of dues of other secured debts 115.88 -115.88 - 

(i.e. secured debentures and deposits Rs. 5.78 Cr 

and unsecured debts i.e. Fixed Deposits, Inter 

Corporate Deposits and OCD s aggregating to 

Rs.110.10 Cr) 

10 Working Capital for Fertilizer already brought in 30.56 30.56 

11 Increase in Current Assets 165.89 10.00 175.89 

12 Capital expenditure 229.30 12.23 241.53 

Total 897.62 161.78 1059.40 

13.2 Justification for cost of scheme: 

(i). 

Payment to the Banks and Financial Institutions of Rs 257.21 Cr has 

been provided in the cost of the Scheme. 

Repayment of WCTL (SBI and SBICI) of Rs 24.32 Cr and loan (ARCIL) 

of Rs 11.37 Cr have been provided in the cost of scheme out of the total 

repayment WCTL / Loan of Rs 35.69 Cr envisaged by de-merged DIL 

(ii). 

Payment of dues of other secured lenders (secured by pledge of 

investments) of Rs 5.78 Cr has been provided. 

(iii). Payment of dues of unsecured lenders / debts aggregating to 

Rs 110.19 Cr viz., FCCB s - Rs 36.44 Cr , fixed deposits - Rs 

34 --


66.07 Cr and unsecured debentures and ICDs from bodies corporate - 

Rs 7.59 Cr and Housing Board dues of Rs 7.37 lakh have been 

provided. 

(iv). 

(v). 

(vi). 

(vii). 

(viii). 

For Payment of statutory dues comprising State and Central sales 

tax / trade tax / VAT, fringe benefit tax, provident fund, and ESI, 

employees dues including contribution to various funds 

(provident fund, gratuity and pension funds), dues of Kanpur 

Electric Supply Company (KESCO), Indian Oil Corporation (IOC), 

and other unsecured creditors / liabilities etc. an amount 

aggregating to Rs 129.34 Cr has been provided in the cost of the 

scheme, out of Rs 131.22 Cr, payable by KFCL. 

For payment of statutory dues comprising PF, Cess on green leaf, 

employees dues including contribution to various funds (gratuity 

and superannuation funds), dues of the other unsecured creditors 

/ liabilities etc relating to Tea business, an amount aggregating 

to Rs 67.56 Cr payable by DIL from 2011-12 to 2015-16 has 

been provided. 

Increase in net current assets of Rs 165.89 Cr ( including cash 

and bank balances at the close of 31.3.2012) is envisaged for 

operation of Fertilizer Undertaking by KFCL during first 3 years of 

operation which will be reduced by Rs 50.86 Cr after conversion 

from Naphtha to Gas in 2014-15. Besides increase in net current 

assets for restart of the fertilizer plant, Rs 30.56 Cr were already 

provided for meeting the working capital requirement of the plant 

under CDR Restructuring, by the Promoters of DIL, has been 

included in the cost of the scheme. Net Working capital of residual 

DIL (Tea Undertaking) will increase by Rs 10 Cr and has been 

included in the cost of the Scheme. 

For the fertilizer unit, a Capital expenditure of Rs 229.30 Cr is 

envisaged for (a) Conversion of Fertilizer Plant from Naphtha 

based feedstock to Gas cum Naphtha based dual feedstock, and 

(b) Implementation of identified area of potential energy savings 

and revamping of plant. The funds for capital expenditure of Rs 

229.30 Cr shall be arranged in KFCL by way of equity / 

preference / interest free unsecured loans from the JUBVPL the 

JV Co. in a phased manner. The conversion is essential as per 

the policy of the GOI as well for long term viability of the plant. 

For the Tea business, a Capital expenditure of Rs 12.23 Cr has 

been proposed during 2011-2012 for replacement of old CTC 

banks, mono rail in leaf housel, dryers, heaters, transformers etc. 

and drilling of tube wells / installation of booster pumps and other 

irrigation equipment for covering additional area of about 400 hect. 

35 --


under irrigation in the tea gardens / factories of the DIL to 

improve the quality of tea and productivity . 

viii) 

Details of provision for Rs. 115.88 Cr in the Cost of Scheme: 

Loans (other than banks) of Rs 11.80 Cr secured against the 

investments of DIL and unsecured debts i.e. Optionally 

convertible debentures, fixed deposits, inter corporate deposits 

from body corporate and FCCB s aggregating to Rs 253.83 Cr 

were raised by DIL from time to time for meeting working capital 

requirement of the fertiliser unit. These debts are appearing in the 

Books of Accounts of DIL Head Office at Kolkata. 

Details of settlement amount Rs 115.88 Cr. provided in the Cost 

of the Scheme are as under: 

Rs. / Cr 

O/s 

Principal 

Amount 

Settlement 

Amount in the 

Cost of the 

Scheme 

Secured Loans other than Banks 

15 % Optionally Convertible Debentures 5.20 2.54 

15% Redeemable NCD 1.30 0.64 

ICD's Bodies Corporate 5.30 2.60 

Sub-total 11.80 5.78 

Unsecured Loans 

15% Optionally Convertible Debentures 

(OCD) 

0.25 0.06 

Loans from Bodies Corporate 30.10 7.53 

Fixed Deposits 77.73 66.07 

FCCB 145.75 36.44 

Sub-total 253.83 110.10 

Total 265.63 115.88 

All Liabilities relatable to the Fertiliser Undertaking (including the secured 

debts other than Banks / FI s and unsecured debts) are to be discharged 

by Kanpur Fertilizers & Cement Ltd (KFCL). 

Duncans Depositors Welfare Forum (DDWF) (representing the Fixed 

Deposit holders) had raised their concern in Joint Stakeholders Meeting 

about the proposed transfer of unsecured fixed deposits to the Fertiliser 

Undertaking. Large number of depositors are from West Bengal. Various 

depositors have filed recovery proceeding under the jurisdiction of 

Calcutta Courts, which are pending. DDWF has asked DIL to facilitate 

the settlement of their dues from Kolkata only so that unsecured lenders 

36 --


do not face any difficulty post de-merger of the Fertiliser Undertaking 

and jurisdiction of Calcutta Courts should be maintained . 

Addressing the concern of the Deposit Forum, secured and unsecured 

debts (other than banks / FI s and unsecured trade creditors), relatable 

to Fertiliser business will continue in DIL to facilitate the settlement from 

Kolkata and funds aggregating to Rs 115.88 Cr for their settlement will 

be provided by KFCL. 

In the Cost of the Scheme of the DIL, repayment of secured debts other 

than banks Rs 5.78 Cr and unsecured debts Rs 110.10 Cr (excluding Rs 

8 lakh for the dues of Housing Board) are included in respective items 

and aggregate inflow of Rs. 115.88 Cr for settlement of these liabilities 

from KFCL is stated by way of credit in the Scheme instead of adding to 

the cost of the scheme and means of finances of DIL. 

13.3 Means of Finance: 

(Rs / Cr) 

Means of Finance KFCL DIL Total 

1 Equity by JUBVPL the JV Co. / Promoters / 400.00 11.65 411.65 

Associates 

2 Unsecured Loans & Advances by Promoters * 30.56 30.56 

3 Debts by JUBVPL the JV Co./ JFIL / 342.77 26.85 369.62 

Promoters and Associates 

4 Internal Accruals 154.85 92.72 247.57 

Total 897.62 161.78 1059.40 

* Already brought in and will be converted into equity in DIL. 

The total cost of the scheme is estimated at Rs. 1059.40 Cr, out of Rs 161.78 

Cr is for DIL and Rs 897.62 Cr for KFCL the SPV of JUBVPL . 

For DIL, the funds required are proposed to be financed by way of infusion of 

equity ( Rs 11.65 Cr) , interest free unsecured loans ( Rs. 57.41 Cr) from 

promoter(s) of DIL and Rs 92.72 Cr from internal accruals. 

For KFCL, JUBVPL (the 50:50 JV Co) will induct Rs 400 Cr in KFCL as equity 

and raise interest free loan of ( Rs 342.77 Cr) from the JFIL WOS of 

JAL/Associates and Rs 154.86 Cr from internal accruals to finance the cost of 

Scheme 

The cost of the Scheme of KFCL, estimated as Rs 897.63 Cr, is 

proposed to be financed by way of infusion of equity of Rs 400 Cr by 

JUBVPL (JV Co.) into the KFCL within 90 days from the date of sanction 

of the Scheme and Rs 342.77 Cr by way of secured debts to be infused 

by JUBVPL (JV Co.) over a period of 24 months commencing from 1 st 

April, 2011, befitting the requirement to finance the working capital and 

capital expenditure, and balance from internal accruals as per the 

scheme. 

37 --


13.4 Mobilization of Funds: 

JUBVPL, the JV Co shall raise funds for investing in KFCL by way of issue 

of Equity Shares / debts. Equity shares in JUBVPL shall be issued to JFIL 

and ISGTL in existing proportion to the shareholding of these companies 

so that each of the company continue to hold 50% of the equity 

shareholding of JUBVPL ( JV Co.). JFIL (WOS of Strategic Investor) shall 

subject to compliance of applicable law and as per the sanctioned scheme 

provide / arrange loans to JUBVPL (JV Co.) so as to ensure that the 

JUBVPL(JV C o.) to induct the funds in KFCL as per the Scheme. 

13.5 Cost of the Scheme and Monetary value of envisaged reliefs & sacrifices 

are as under: 

(Rs. / Cr) 

I. COST OF THE SCHEME 

(a) Cost of the Rehabilitation Scheme 1059.40 

(b) Monetary Value of Sacrifices 814.78 

Total I 1874.18 

II. Promoters /JUBVPL the JV Co. / JFIL Contribution 

(a) Equity by Promoters / JUBVPL the JV Co./ Associates 411.65 

(b) Debts ( Interest free) by Promoters / JUBVPL the JV Co./ JFIL / 

400.18 

Associates 

Total II 811.83 

(II) as % of (I) 43.32 

13.6 Post Restructuring Shareholding Pattern of DIL: 

The existing equity share capital of the company is proposed to be 

reduced by 60% and then every five (5) equity shares of Rs 4/- each shall 

be consolidated into two (2) equity share of Rs 10/- each fully paid-up in 

terms of section 18(2)(1) of the SICA. 

The existing shareholding pattern, the shareholding pattern after de-rating 

of the existing equity and also the shareholding pattern after infusion of 

fresh / conversion of existing unsecured advances from the Promoters 

Group into equity (post de-rating)/ would be as follows: 

Existing % Post derating 

38 -- 

Fresh 

Infusion / 

Conversion 

(Rs / Cr) 

Propose 

d Equity 

Pattern 

A. Promoter s Holding 

Indian Promoters 31.23 58.68 12.49 42.20 54.69 86.15 

B. Non- Promoters Holding 

Institutional Investors 1.50 2.82 0.60 0.60 0.94 

Non-Institutional Investors 20.49 38.50 8.20 8.20 12.91 

Total 53.22 100.0 21.29 42.20 63.49 100.00 

%


13.7 Post Restructuring Shareholding Pattern of KFCL (Rs\Cr) 

Existing 

Issue of Shares 

to the 

Shareholders of 

DIL 

Fresh 

Infusion 

Proposed 

Equity 

Pattern 

JUBVPL (JV Co.) 0.10 0.00 400.00 400.10 

DIL Shareholders in 0.00 0.53 0.00 0.53 

terms of the Scheme of 

Arrangement 

Total 0.10 0.53 400.00 400.63 

13.8 The sources for investment of Rs 400 Cr by JUBPVL ( the JV Company ) 

into the equity shares of its wholly owned subsidiary company namely M/s 

Kanpur Fertilizers & Cement Ltd (KFCL), are proposed as under: 

(a) 

(b) 

(c) 

(d) 

(e) 

Corporate restructuring of DIL is proposed by way of de-merger of all 

the assets and liabilities of fertilizer undertaking and vesting of the said 

undertaking into a newly incorporated company namely Kanpur 

Fertilizers & Cement Ltd (KFCL). 

KFCL is a wholly owned subsidiary of 50:50 Strategic Joint Venture 

company namely M/s Jaypee Uttar Bharat Vikas Pvt. Ltd. ( JUBVPL) 

the JV Co of the existing promoters of DIL ( through their group 

company - M/s ISG Traders Ltd ) and M/s Jaiprakash Associates Ltd 

(through their wholly owned subsidiary Jaypee Fertilizers & Industries 

Ltd). 

Induction of Rs 400 Cr in the form of equity shall be made in KFCL as 

per the scheme by the 50:50 Strategic Joint Venture company i.e. 

M/s Jaypee Uttar Bharat Vikas Pvt. Ltd. ( JUBVPL). 

The equity share capital of JUBVPL shall be contributed in the ratio of 

50: 50 by the JV partners M/s ISG Traders Ltd (a group company of the 

existing promoters of DIL ) and M/s Jaypee Fertilizers & Industries Ltd 

(a wholly owned subsidiary of M/s Jaiprakash Associates Ltd). The 

share capital of JUBVPL will be increased initially to Rs, 20 Cr and 

then to such further additional capital as may be decided by the Board 

of Directors of the said JV Co . The said increased share capital shall 

be subscribed in the equal ratio by the JV partners M/s ISG Traders Ltd 

and M/s Jaypee Fertilizers & Industries Ltd . 

In addition to Rs 20 cr to be made available to the JV Co from initial 

equity as mentioned hereinabove, balance Rs 380 Cr shall be brought 

in by the JV partners directly or from their associate / group companies 

in JUBVPL in the form of equity or loans so as to induct Rs 400 Cr in 

KFCL by way of equity share capital. 

39 --

(f) 

(g) 

(h) 


Net worth of M/s Jaiprakash Associates Ltd (holding company of JV partner, 

Jaypee Fertilizers & Industries Ltd) is more than Rs 8000 Cr ( Net worth as 

per audited balance sheet as on 31.3.2010 being Rs 8500.72 Cr) 

Net worth of M/s ISG Traders Ltd is above Rs 270 Cr ( Net Worth as per 

audited balance sheet as on 31.3.2010 being Rs 271.36 Cr). 

In view of the fact that both the JV partners are having satisfactory financial 

back ground and commitment for rehabilitation and revival of the Fertiliser 

Undertaking, infusion of proposed funds in JUBVPL shall be ensured by the 

JV partners for induction in the equity of KFCL in terms of the scheme. An 

undertaking of the JV partners in this respect has also been submitted. 

14.0 CUT OFF DATE : 

The Cut-off date for the purpose of the Scheme has been considered 

30 th September, 2010. 

15.0 RELIEF AND CONCESSIONS: 

The Scheme envisages grant of following reliefs and concessions from 

various parties i.e. Secured lenders i.e Banks / FI s and other lenders, 

unsecured lenders, Central Government / Department of Fertilizer, 

Central Board of Direct Taxes, Statutory Authorities, U.P Government , 

U.P. State Electricity Board / U.P. Electricity Regulatory Commission/ 

KESCO, Government of West Bengal and other concerned parties. 

15.1 OTS with Secured Creditors (against Term Loan, working capital): 

15.1.1 Term Loans/Working capital from Banks/Others: OTS for Rs 225 Cr : 

State Bank of India including SBICL, Central Bank of India, State 

Bank of Travancore, State Bank of Patiala, ARCIL ( assigned 

debts of Punjab National Bank, UCO Bank, Bank of Baroda, IDBI, 

IDBI Bank, ICICI), WBIDC, PICUP, SICOM, Antariksh Vyapaar Pvt 

Ltd. (assigned debt of ICICI), Harsh Credit Pvt. Ltd. (assigned debt 

of HDFC) and PCD holders: 

(i) To accept OTS amount of Rs 225 Cr in full and final settlement of all 

dues outstanding in cash credit (excluding Rs 60 Cr which is to be 

retained out of the total existing working capital in DIL), WCTL, BG 

devolved, FITL, term loans, debentures. and after waiver of all simple / 

compound / penal interest, LD, balance of the principal dues, coupons / 

rights, other dues / charges etc. as on the date of sanction of the 

scheme. The said amount of Rs 225 Cr shall be transferred to and paid 

by KFCL, within 90 days from the date of sanction of the Scheme. 

Upon payment of OTS amount, the security on the assets of the Tea 

Division including personal guarantees of the promoters for 

WCTL / cash credit facility of Rs 60 Cr pertaining to Tea Division 

along with interest and other penal charges thereon, to be 

retained by the secured lenders. All other securities and 

personal guarantees provided as collaterals by the promoters / 

associates of DIL shall stand released by the lenders. 

40 --


Details of OTS amount of Rs 225 Cr payable to secured 

creditors excluding additional working capital covered under 

Para 15.1.2 are given below : 

(Rs\Cr) 

Secured Creditors 

Outstanding OTS Amount 

principal 

State Bank of India 102.42 40.42 

Central Bank of India 69.29 27.34 

State Bank of Travancore 24.56 9.69 

State Bank of Patiala 18.01 7.11 

SBICI 3.32 1.31 

ARCIL(PNB) 62.86 24.81 

ARCIL (UCO Bank) 33.00 13.02 

ARCIL (Bank of Baroda) 28.93 11.42 

ARCIL(IDBI & IDBI Bank) 67.22 26.53 

ARCIL (ICICI) 96.97 38.27 

Antariksh (ICICI) 7.50 2.96 

Harsh Credit Pvt. Ltd.(HDFC) 20.00 7.89 

WBIDC* 3.66 1.44 

PICUP* 13.49 5.32 

SICOM 16.69 6.59 

Partly Convertible Debentures 2.23 0.88 

TOTAL 570.15 225.00 

(ii) 0.001% Cumulative Redeemable Preference Shares (CRPS) of Rs 100/- 

each aggregating to Rs 165.98 Cr issued to the banks and financial 

institutions along with unpaid accrued amounting to Rs 0.65 Cr dividend 

till cut off date thereon shall stand fully written off in terms of the OTS 

settlement with the banks and Financial Institutions. 

(iii) 

In the event of default of payment of the amount of OTS as mentioned in 

sub-para (i) herein above on the due dates stipulated therefore, the OTS 

shall be considered as failed and the dues of the Company shall be 

reinstated to the original amount mentioned in para 15.1.1 subject to the 

approval of BIFR. All reliefs and concessions granted by the secured 

lenders shall stand withdrawn. 

15.1.2 Additional Working Capital from Central Bank of India and 

ARCIL ( PNB, UCO Bank and BOB): OTS for Rs 32.21 Cr 

(i) To accept payment of Rs 32.21 Cr (excluding Rs 14.34 Cr already paid) 

in full and final settlement of balance amount of Additional Working 

Capital Facility which was released by the banks for the 

recommencement of the fertiliser operation in the year 2005 and to waive 

all simple / compound / penal interest, LD, other charges etc. as on the 

date of sanction of the scheme. The said amount of Rs 32.21 Cr shall be 

paid by KFCL, within 90 days from the date of sanction of the Scheme. 

Banks / ARCIL to release all securities provided for securing this facility 

including shares of Andhra Cement Ltd (ACL) and NRC Ltd. (NRC) upon 

receipt of this payment of Rs 32.21 Cr. Banks / Assignees shall waive all, 

41 --


simple / compound / penal interest, LD, other charges etc. till the date of 

payment. Details of Rs 32.21 Cr are as follows: 

(Rs / Cr.) 

Secured Creditors 

Central Bank of India 14.20 

ARCIL(Punjab National Bank) 3.83 

ARCIL (UCO Bank) 7.09 

ARCIL (Bank of Baroda) 7.09 

TOTAL 32.21 

(ii) In addition to the amount of Rs 32.21 Cr payable to ARCIL and CBI as per 

sub- para (i) above, DIL shall make further payment of Rs 3 Cr to ARCIL 

and Rs 2.65 Cr to CBI towards full and final payment of the late payment 

charges on account of delay in the repayment of additional working 

capital by 31.10.2011. The said amount shall be funded by the promoters 

of DIL by infusing additional funds in the form of equity share capital of 

DIL at par post reduction and consolidation of the existing paid up share 

capital of DIL in terms of the scheme. 

15.1.3 Working Capital for Tea operation from SBI, SBICI and ARCIL(PNB): 

Existing working capital facilities of Rs 60 Cr to be retained for DIL 

comprise SBI (Rs 42.95 Cr), SBICI ( Rs 5.68 Cr) and ARCIL(PNB) (Rs 

11.37 Cr): 

(a) SBI and SBICI: 

i) To allocate Rs 48.63 Cr into need based working capital of Rs 24.315 

Cr (SBI share Rs 21.475 Cr and SBICI s share Rs 2.84 Cr) in cash 

credit account and Rs 24.315 Cr (SBI share Rs 21.475 Cr and SBICI s 

share Rs 2.84 Cr) as WCTL for the requirement of operations of tea 

undertaking in DIL. The requirement for working capital shall be 

assessed according to the existing norms relating to tea industry and as 

per Bank s norms from time to time. Interest on WCTL with effect from 

1 st April, 2010 shall be charged at the SBAR prevailing from time to time 

(presently 12.50% p.a.). 

The WCTL will be repaid in installments commencing on 30 th March, 

2014, 30 th September, 2014 and 31 st March, 2015. Interest on CC with 

effect from 1 st April, 2010 will be charged at the SBAR prevailing from 

time to time (presently 12.50%) plus 2% for a period of one year and 

reset thereafter. 

(ii) 

To continue existing non-fund based limit of Rs 15 Cr (Bank Guarantee 

and inland Letter of Credit from SBI) in DIL. Margin of 5% will be 

provided for the first year from 01.04.2010 which will be reset thereafter. 

50% of the normal charges will be payable for the first year, which will 

be reset thereafter. 

(b) ARCIL ( PNB ): 

(i) The share of ARCIL amounting to Rs 11.37 Cr shall continue as loan in 

DIL and will be paid in 3 equal annual installments of Rs 5.61 Cr each 

42 --


(inclusive of Rs 1.82 Cr as interest ) on 15.03.2013, 15.03.2014 and 

15.03.2015. 

(ii) ARCIL s exposure as aforesaid shall be secured by first charges over 

the moveable fixed assets, current assets and immoveable properties of 

Tea Division and the personal guarantee of Mr. G.P.Goenka. 

(iii) In the event the company fails to repay the amount mentioned in sub 

clause (i) above on the due dates stipulated therefore, the dues of the 

company shall be reverted to the dues as mentioned in Para 15.1.3(b) (i) 

less the amount paid by the company, if any, subject to approval of BIFR, 

15.1.4 From State Bank of India including SBICI, Central Bank of 

India, State Bank of Travancore, State Bank of Patiala, ARCIL 

(assignee of debts of Punjab National Bank, UCO Bank, Bank 

of Baroda, IDBI, IDBI Bank, ICICI), WBIDC, PICUP, SICOM, 

Antariksh Vyapaar Pvt Ltd. (assigned debt of ICICI), Harsh 

Credit Pvt. Ltd. (assignee of debt of HDFC) and PCD holders: 

(i) (a) To release all the charges, titles, securities, personal / 

corporate guarantees, securities, collateral security etc. 

relating to Fertiliser Division, simultaneously on realization of 

the OTS amount as per para 12.2 hereto. All the title deeds 

and other documents kept as / evidencing security with 

respect to the assets (movable and immovable) of the 

Fertilizer Undertaking shall be released and delivered by the 

secured lenders in favour of KFCL, including filing of any 

statutory forms, acts or deed with the concerned authorities. 

All the charges on the assets of the Fertiliser Division 

pertaining to the working capital facility of Rs 60 Cr for the 

Tea Division shall stand released. Personal / corporate 

guarantees shall be released in favour of the respective 

guarantors / pledgers. 

(b) To release all the titles deeds and other documents kept as / 

evidencing security with respect to the assets ( movable & 

immovable) of Tea Division and personal guarantee 

pertaining to cash credit and WCTL upon due repayment of 

the amounts as mentioned in clause 15.1.3 (a) and (b) above 

by the company. 

ii) 

All Legal cases filed by the Company/ISGTL and pending 

against Central Bank of India shall be withdrawn by the 

company. 

43 --


15.2 Secured Creditors (Debentures Holders and ICD s Holders other 

than Bank s and FI s )(secured by way of pledge of investments): 

The amount payable for settlement of the said liability shall be provided by 

KFCL and paid by DIL on the following terms: 

(i) An amount of Rs 5.78 Cr shall be paid in one time settlement in full 

and final settlement of the dues, within a period of 90 days from the 

date of sanction of the Scheme. 

(ii) 

(iii) 

To waive all interest / compound / penal interest / liquidated damages, 

balance principal amount, other claims, etc. thereon till date of payment 

of above amount. 

To release security of investments pledged with them upon receipt of 

settlement amount as above in favour of DIL. 

15.3 Ministry of Chemical & Fertilizers - Department of Fertilizer, GOI: 

In respect of DIL / KFCL ( Transferee company): 

(i) To allow resumption of production with Naphtha as feedstock and allow 3 

years time from resumption of production for conversion of feedstock from 

Naphtha to Gas. To allow and compute subsidy on the Urea 

manufactured on the basis of Naphtha as feedstock till such time plant is 

converted into LNG / Gas as feedstock. 

M/o Chemicals & Fertilzers Deptt of Fertilizer vide letter dated 

3.8.2011 has stated as follows : 

As per the policy of Stage-III of New Pricing Scheme for Urea 

manufacturing units notified by the Govt. on 8.3.2007, the units are 

allowed resumption on existing feedstock with stipulation to convert to 

gas within specified time limits. This was conveyed vide DOF letter No. 

12014/1/2008-FPP dt. 6.3.2009. The validity of NPS-III policy dt. 8.3.2007 

has since been extended beyond 31.3.2010 till further orders on 

provisional basis. 

The Bench accepted the views of the Deptt. of Fertilisers. 

(ii) 

(iii) 

To continue the energy norm of 7.847 gcal / mt as last notified for the 

plant and the energy savings should not be mopped-up for a period of at 

least 5 years after conversion to gas. 



As per the provisions of NPS-III policy, conversion etc, continuation of 

existing norms for 5 years period is permissible. 


To notify concession price on the basis of the current prices of inputs (i.e. 

feedstock, coal, power, bags etc.) at the time of the resumption of 

44 --


production. Escalation / de-escalation should be calculated on fortnightly 

basis and should be reimbursed along with the subsidy for that period. 



One time updation of concession price based on near latest notified 

prices of inputs may be considered. As per the extant policy, quarterly / 

annual escalation is computed. 


(iv) To consider to allow Billing for subsidy on fortnightly basis and subsidy 

should be released within 7 days 



In the normal course, claim bills for receipt of urea of the month are 

submitted by urea units in the subsequent month and paid in the following 

month. 

The Bench accepted the views of the Deptt. of Fertilisers and also 

directed to consider the relief for priority payment of the 

subsidy/concession price as was considered in case of M/s 

Southern Petrochemicals Ltd. as per DOF letter dated 26.11.2009 

and Madras Fertilizers Ltd. as per DOF letter dated 4.7.2011, as 

submitted by DIL vide its letter dated 6.9.2011. 

(v) To extend full support for conversion of fertilizer plant into Gas / 

LNG based and grant allocation of Gas / LNG on priority basis as 

per the requirement of the plant without insisting for guarantee or 

collaterals. 



Deptt. of Fertilizers recommends to M/o Petroleum & Natural Gas for 

allocation of gas to fertilizer units. The allocation of gas is decided by the 

Empowered Group of Ministers(EGoM) under the M/o Petroleum & 

Natural Gas. Deptt. of Fertilizers has requested M/o Petroleum & Natural 

Gas for allocation of gas to the company(DIL), Kanpur vide letter No. 

12014 / 1 / 2007 FPP (PC) dt. 6.5.2011. DIL may now take up with M/o 

Petroleum & Natural Gas / GAIL for gas pipeline connectivity of 18 kms 

only and allocation of gas , agreement etc. 


(vi) To resume the sponsorship for allocation of suitable grade of coal 

quantity of 236800 MT per annum for generation of steam essentially 

required for manufacturing ammonia and urea. 



Since the unit is not operational, presently no quantity of coal is drawn by 

them. However, in case of likely commencement , M/o Coal will be 

requested for allocation of required quantity. 


(vii) To consider to accept payment of all the undisputed statutory dues 

after waiving interest, penalty and damages etc. over a period of 3 

years after a moratorium of one year from cut-off-date and extend 

any other relief, benefits and concessions as applicable for sick 

industrial companies as per the Government policy / guidelines for 

the rehabilitation of the sick companies. 

45 --

15.4 Ministry of Coal, GOI: To Consider: 

(i) 


To resume the allocation and supply of suitable grade of coal 

quantity of 236800 MT per annum through rail from Coal India Ltd., 

BCCL and ECL on sponsorship by Fertilizer Industry Co-ordination 

Committee (FICC) from time to time for generation of steam 

essentially required for manufacturing ammonia and urea. 

15.5 Central Board of Direct Taxes (CBDT) : To consider except (ii) 

In respect of DIL / KFCL ( Transferee Company ): 

(i). To consider to grant exemption from the applicability of Section 41(1) of 

the Income Tax Act, 1961 in respect of remission / cessation arising out 

of the Scheme. 

(ii). To permit KFCL to carry forward and set off the accumulated losses 

(including lapsed losses) and unabsorbed depreciation as per the Income 

Tax Act, 1961 relatable to the Fertilizer Undertaking till such losses are 

set off fully against income in the assessment years subsequent to the 

assessment year during which de-merger as above shall take place 

subject to the overall provision of the Act. The effect of this provision shall 

be given in the manner as is provided under Section 72A of the Income 

Tax Act, 1961. 

(iii). To consider to allow payment of TDS arrear as on the cut-off date after a 

moratorium of one year in 8 equal quarterly installments and to waive 

interest and penalty leviable under the various provisions of the Income 

Tax Act and rules made there under including for the past defaults 

against the DIL / KFCL (Transferee Company) / Directors / Executives / 

Officers. 

(iv). To consider to allow to revise the returns of Income Tax incorporating 

information / details within a period of 2 years from the date of sanction of 

the Scheme irrespective of the lapse of statutory time for filling such 

revised returns and direction to the assessing authority to frame 

assessment/ re-assessment pursuant to such returns notwithstanding that 

the assessment have been completed or the time limit for completion of 

assessment / reassessment may have been expired and grant waiver of 

interest under any provisions of the Act. 

(v). To consider to exempt from applicability of the provisions of Section 115 

JB of Income Tax Act, 1961 for a period of 5 years from the date of 

sanction of Scheme. 

(vi). To consider to exempt from the applicability of the provisions of Section 

43B, 45, 72(3), 74(2), 79, 80, 139 (3), 201(1), 201(1A), 221, 271, 276B 

and 281 of the Income Tax Act, 1961 from the past period and for further 

period of 5 years from the date of sanction of Scheme. 

46 --


(vii). To consider to permit to receive all income without deduction of any tax 

under the provisions of Chapter XVII-B of the Act for a period of 5 years 

from the date of sanction of Scheme. 

(viii). To consider to grant approval under Part B of the Fourth Schedule of the 

Income Tax Act for transfer of amount in excess of the liability of the Non 

Management Staff Pension Scheme of Duncans Industries Ltd. (Fertiliser 

Division) to Senior Management Staff Pension Scheme of Duncans 

Industries Ltd (Fertiliser Division) . 

15.6 Employees Provident Fund Organization (EPFO) : 


(i) 

To waive penal interest and to consider other damages as per rules and 

policy levied or leviable due to late payment / non-payment of provident 

fund (PF) / employees family pension fund (EFPF) / Deposit Linked 

Insurance / Employees Pension Scheme, 1995(EPS-95), Administrative 

Charges / Inspection Charges till the cut-off date. 

(ii) To consider to allow payment of Provident Fund, Family Pension Fund 

(EFPF) including Employees Pension Scheme, 1995 (EPS-95) / 

Employees Deposit Linked Insurance / Administrative Charges / 

Inspection Charges dues with simple interest at the statutory rate of 

interest paid by Employees PF Organization from time to time as on cut 

off date after moratorium of one year in 36 equal monthly installments 

without carrying any penal interest and damages. 

15.7 ESI Corporation (ESIC) : 

In case of DIL / KFCL ( Transferee company): 

(i) To waive damages levied or leviable on the DIL / KFCL due to late 

payment / non-payment of ESI dues in respect of casual employees, 

filling of returns / any other defaults etc in Fertilizer Undertaking till the 

cut-off date. 

(ii) 

ESI dues payable for the past period till cut off date is about Rs 3.53 lakh 

which will be paid within 120 days from the scheduled date of 

recommencement of production without levy of any penal interest and 

damages. 

15.8 Ministry of Corporate Affairs (MCA) / Registrar Of Companies, West 

Bengal / Registrar Of Companies, U.P.: To consider 


(i) 

DIL / its Promoters / JUBVPL (JV Co.) / JFIL / ISGTL / associates shall 

be exempted from the provisions of Section 81, 192A, 293(1), 372A for 

preferential issue of equity shares, for providing unsecured loans / 

guarantees. DIL / its Promoters / ISGTL / JFIL / JUBVPL (JV Co ) / 

associates shall also be exempted from ceiling on promoters holding 

47 --


prescribed under the provisions of the Companies Act, 1956 for 

subscribing the shares in terms of this Scheme. 

(ii) 

DIL / KFCL shall be exempted from the applicability of the provisions of 

Section , 16, 31,,80(5), 94, 95, 100 to 105, 138,198, 269, and Schedule 

XIII of the Companies Act, 1956. 

(iii) To consider to exempt DIL and its Directors in respect of penal 

provisions under section 58A, 58AA, and 58AAA of the Companies 

Act,1956 and other applicable provisions / rules in respect of 

acceptance of deposits and for the defaults prior to the date of sanction 

of the Scheme by BIFR. 

(iv) On sanction of the scheme, existing paid up equity share capital 

(subscribed) and redeemable cumulative preference shares of DIL shall 

stand reduced by 60% and 0.001% Cumulative Redeemable Preference 

Shares (CRPS) aggregating to Rs 165.98 Cr issued to the banks and 

financial institutions by DIL alongwith accrued dividend thereon shall 

stand fully written off in terms of the OTS settlement with the Banks and 

Financial Institutions without following the provisions of Section 100-105 

of the Companies Act, 1956. 

(v) 

(vi) 

DIL may be allowed to allot 4,22,05,000 nos. of equity shares of the face 

value of Rs 10/- each aggregating to Rs 42.205 Cr post reduction and 

consolidation of share capital at par to the Promoters / Associate 

Companies without following the requirement of the provisions of section 

81(1A),,108A and 108B of Companies Act, 1956. 

The authorized share capital of KFCL shall be enhanced to Rs 450 Cr. 

(Rupees Four Hundred Fifty Cr only) and Memorandum and Articles of 

Association of KFCL shall be amended accordingly and to consider 

exempting from payment of fees and exempting from applicability of 

Section 16 and 31 of the Companies Act, 1956. 

(vii) KFCL may be allowed to allot one (1) number of equity share of Rs 10/- 

each fully paid up to the equity shareholders of DIL for every 40 (forty 

equity shares) of Re. 10/- each (post de-rating and consolidation) held by 

them pursuant to the Scheme of Arrangement without following the 

requirement of the provisions of section 68B, 81, 108A, and 108B of the 

Companies Act, 1956. 

(viii) 

JUBVPL (JV Co.) shall infuse Rs 400 Cr in KFCL within 90 days from 

the date of sanction of scheme and KFCL shall allot 40 Cr nos equity 

shares of Rs 10 each at par to JUBVPL (JV Co.) within 7 working days 

from the date of infusion of the aforesaid funds without following the 

requirement of the provisions of section 68B, 81, 108A, and 108B of the 

Companies Act, 1956. 

48 --

15.9 Securities & Exchange Board of India (SEBI): 


(i) DIL shall be exempted from following the requirement of Securities 

Contracts (Regulation) Rules, 1957 read with Securities Contracts 

(Regulation) (Amendment), Rules, 2010, Regulations of Public / 

Preferential issue SEBI Guidelines for Preferential Issue under SEBI 

(Issue of Capital and Disclosure Requirements) Regulation, 2009.and 

relevant provisions of Listing Agreement for allotment of 4,22,05,000 

nos. equity shares of face value of Rs 10/- each aggregating to Rs 

42.205 Cr ( Rs 30.55 Cr already brought in) post reduction and 

consolidation of share capital at par to the Promoters / Associate 

Companies. 

(ii) 

DIL shall be exempted from minimum public holding requirement 

under clause 40A of the Listing Agreement read with Securities 

Contracts (Regulation) Amendment Rules, 2010 for a period of 

three years from the date of listing of shares pursuant to this 

Scheme. 

(iii) Notwithstanding anything contained in the scheme, the fresh equity 

being inducted by the existing promoters/associates/strategic 

investor in terms of this scheme will have a lock in period of 3 years 

from the date of issue of the equity shares. 

The Bench directed that SEBI to consider the above reliefs as per their 

guidelines. 

15.10 National Stock Exchange (NSE): 

DIL: 

(i) Restructured equity shares of DIL and equity shares to be allotted 

pursuant to the Sanctioned Scheme shall be listed by NSE 

immediately within one month from the date of allotment of such 

shares in terms of the Scheme without following the requirement of 

Listing Agreement . 

(ii) DIL shall be exempt from minimum public holding requirement under 

Clause 40 A of the listing requirement for a period of 3 years from 

date of listing of shares pursuant to the scheme. During the above 

period, the promoters/associates of DIL to off-load excess equity 

held by them in DIL. 

No objection, by NSE, if SEBI agrees. 

15.11 Govt. of U.P. ( Ministry of Industry ): To consider: 

(i) 

To exempt DIL / KFCL from the levy of stamp duty on de-merger of 

assets of the Fertilizer Undertaking and identified liabilities as per the 

Scheme of Arrangement sanctioned under the provisions of the SICA. 

49 --


(ii) 

(iii) 

All licenses / permissions / pollution and other consents / approvals in 

respect of Fertilizer Undertaking including lapsed shall stand revived / 

restored immediately for a period of three years in the name of KFCL 

from the date of sanction of the Scheme, to enable KFCL to 

recommence commercial production in lawful manner. 

To exempt DIL, its Directors / Officers from any penalties / additional 

charges / proceedings/ penal provisions in respect of any past defaults, 

omissions / acts. KFCL shall not be liable in respect of defaults and 

omissions prior to the date of the de-merger of the Fertiliser Undertaking 

in terms of the scheme. 

(iv) To accept payment of any other undisputed dues / levies of the State / 

quasi Govt. Departments (including Kanpur Nagar Mahapalika / 

Corporation) / Kanpur Cantonment Board after waiver of all 

penalties / interest / claims etc. over a period of three years after a 

moratorium period of one year from the date of sanction of the 

Scheme. 

(v) 

To provide any other relief, benefits and concessions available to 

the sick companies as per the policy of the State Government for 

rehabilitation of the sick companies. 

15.12 Trade Tax Department, Govt of UP - with respect to Trade Tax, 

Sales Tax, Central Sales Tax, VAT, Entry Tax, Turnover Tax, 

Purchase Tax: 

In respect of DIL / KFCL: To Consider: 

(i) 

(ii) 

(iii) 

(iv) 

To condone delay in submission of sales tax / turnover tax / entry 

tax / VAT returns and forms related thereto and grant time of 24 

months for submitting the same from the date of sanction of the 

Scheme. 

To set aside all ex-parte assessment orders from the financial year 

2000-2001 and onwards or appeals / penalties and make 

reassessment after providing opportunity of being heard to DIL/ 

KFCL in the matter. 

To continue the registration certificates under State and Central 

Sales Tax Act / Vat Act in the name of KFCL. 

To waive interest, penalties levied / to be levied on account of 

delayed payment of dues in respect of the past period upto the 

50 --


cut-off-date and to accept payment after waiver of interest, 

penalties over a period of 3 years in equal half yearly installments 

after giving one year moratorium from the cut-off-date. 

(v) 

All proceedings initiated, notices issued and orders passed for the 

assessments from the financial year 2000-2001 and onwards on 

account of defaults / omissions from the date of sanction of the 

Scheme and exempt DIL / KFCL from any penalties / 

proceedings arising from past defaults / omissions . 

15.13 Kanpur Electric Supply Company (KESCO) / UPPCL / UP 

Electricity Regulatory Commission and Govt of UP: 

In respect of DIL/ KFCL: To Consider: 

(i) Waiver of minimum consumption Guarantee (MCG), Minimum / 

Fixed demand charges, Electricity duty, Low Power Factor 

surcharge and parallel operation charges during the period when the 

plant was not in operation w.e.f. 18 th October, 2005. 

(ii) 

To restore / reconnection of total power load of the plant as was 

existing earlier at the time when plant stopped operation without 

charging line charges, service connection charges and security / 

guarantee. 

(iii) To waive all interest, penalty and late payment surcharge upto the 

cut- off- date or reconnection, which ever is later. Security deposit for 

electricity connection for the Fertilizer Undertaking which was 

appropriated by KESCO be reversed from the date it was 

appropriated and be transferred to the account of KFCL as security 

deposit amount for electricity. 

(iv) 

(v) 

To withdraw a claim of Rs 24.63 Cr towards 15% surcharge for 

supply of power from independent feeder installed at the cost of the 

company for the period from August 2000 to September 2001 which 

was once withdrawn as non leviable but again demanded by KESCO 

against which a writ petition filed by DIL before the Hon ble Allahabad 

High Court is pending. 

After restoring the security deposit, withdrawal of independent feeder 

surcharge and waiver of 75% of the remaining amount, Rs 20.28 Cr 

being 25% amount of the balance dues shall be paid in three equal 

51 --


annual after a moratorium of one year from the date of sanction of 

the Scheme, in full and final settlement of all the dues / claims. 

15.14 From Agriculture Income Tax Deptt / Industries Deptt/ IR Deptt: 

State Govt. of West Bengal 

In respect of DIL: To Consider: 

(i) To extend the existing scheme of exemption from payment of Education Cess 

and Rural Employment Cess on tea green leaf produced in the tea gardens 

for a further period of 5 years from cut-off-date. 

(ii) 

To accept the payment of arrears of Rs 1.51 Cr towards Education Cess 

and Rural Employment Cess relating to the period up 31st March, 2004 

after waiver of interest, penalty etc. in 12 quarterly installments after a 

moratorium of one year from the date of sanction of the Scheme. 

(iii) To accept repayment of any other undisputed dues / levies of the State / 

quasi Govt. Departments (including Municipal Board / Corporation / 

Panchayat Tax in Tea Estates) after waiver of all penalties / interest / claims 

etc. in terms of orders of the competent authority. 

(iv) To provide any other relief, benefits and concessions available to the sick 

companies as per the policy of the State Government for rehabilitation of the 

sick companies. 

(v) 

To exempt the DIL/ Directors / Officers from any penalties / proceedings 

arising from any past defaults / omissions . 

(vi) Notwithstanding anything contained hereinabove, the reliefs and 

concessions to be granted should not be beyond the provisions of State 

Policy Guidelines. 

15.15 From Unsecured Lenders- FCCB Holders / Optionally Convertible 

Debenture (OCD) Holders and ICD Lenders / Fixed Deposit Holders: 

The amount payable for settlement of the said liability shall be provided by 

KFCL and paid by DIL on the following terms: 

(a) Unsecured Foreign Currency Convertible Bonds 

(List as per Annexure XII) 

(i) 

The principal amount of FCCB in Swiss Francs shall be frozen after 

converting in INR at the exchange rate prevailing as on 21 st November, 2001 

(being the date on which FCCB holders exercised Put Option). and an 

amount of Rs 36.44 Cr, to the extent 25% of the principal amount as 

determined above, shall be paid in three equal annual interest free 

installments after a moratorium of one year from the date of sanction of 

Scheme in full and final settlement of all dues and claims. 

The Bench heard the arguments of both the parties and issued the following 

directions regarding this : 

The Bench granted consent as agreed by the company in hearing, to M/s 

Credit Suisse AG to proceed with the suit No 310 of 2004 pending before the 

52 --


Hon ble Calcutta High Court so that the exact amount (principal) in respect of 

the FRCN s is crystallized and as and when such amount is crystallized the 

same will be paid as per provisions of the scheme for such category of 

creditors. 

(ii) 

All interest / compound / penal interest/ liquidated damages, balance of the 

principal amount, conversion clause, other claims / demands shall stand 

waived. 

(b) Unsecured Loans i.e. Optionally Convertible Debenture (OCD) Holders 

and ICD Lenders: 

(i) An amount of Rs 7.59 Cr to the extent of 25% of the principal amount 

outstanding as on cut off date shall be paid in 3 equal annual interest 

free installments after a moratorium of one year from the date of 

sanction of the Scheme, in full and final settlement of all the claims of 

OCD holders and ICD lenders. . 

(ii) 

All interest / compound / penal interest / liquidated damages, balance of the 

principal amount etc. shall stand waived. 

(iii) Winding up petitions / recovery suits, other proceedings etc. instituted by the 

ICD Lenders against DIL shall stand withdrawn from the date of sanction of 

the Scheme and they shall have no further claim other than those payable in 

terms of the sanctioned scheme. 

(c) Unsecured Fixed Deposit Holders: 

(i) 

(ii) 

An amount of Rs 66.07 Cr to the extent of 85% of the principal amount of 

fixed deposits outstanding as on cut off date shall be paid in one time full and 

final settlement of all the dues of fixed deposit holders. Repayment shall 

commence within 90 days and shall be completed within 180 days (without 

carrying any interest) from the date of sanction of the Scheme. 

All interest including compound / penal interest, claims, and balance of 

principal amount etc. on the fixed deposits shall stand waived immediately. 

15.16 From Unsecured Creditors / unsecured Liabilities: 

In respect of DIL / KFCL: 

(a) Indian Oil Corporation (IOC): 

(i) To waive all interest / claim / charges and 75% on principal 

outstanding dues for supply of Naphtha and other petroleum 

products to Fertilizer Plant and to cancel Memorandum of 

Settlement (MOS) dated 24 th October, 2005 and other documents / 

agreements executed there to. 

(ii) 

After waiver of the above, Rs 14.17 Cr being 25% of its principal 

amount for supply of Naphtha shall be paid by KFCL in three equal 


53 --


from the date of sanction of the Scheme by BIFR, in full and final 

settlement of all the dues / claims with out carrying any interest. 

(b) 

(i) 

Other Unsecured Creditors / unsecured Liabilities: 

The dues of other unsecured trade creditors / unsecured liabilities viz 

security deposits, retention money, trade suppliers/creditors, advances 

from customers, and unsecured liabilities others amounting to Rs 42.15 

Cr in respect of the Fertilizer Undertaking shall be paid to the extent of 

25% of their principal amount outstanding as on the cut - off - date , in full 

and final settlement of their dues in three equal interest free annual 

installments by KFCL after a moratorium of one year from the date of 

sanction of the Scheme. 

(ii) The dues of other non current unsecured trade creditors/liabilities 

amounting to Rs 22.82 Cr in respect of the Tea Undertaking/Residual DIL 

shall be paid to the extent of 25% of their principal amount as outstanding 

as on the cut - off - date, in full and final settlement of their dues in three 

equal interest free annual installments by DIL after a moratorium of one 

year from the date of sanction of the Scheme. 

(iii) 

All interest including compound / penal, other claims, balance principal 

amount thereon till the date of payment in terms of the Scheme shall 

stand waived immediately on sanction of Scheme. 

(v) Unsecured creditors / liabilities, which are under dispute / litigation / 

appeal shall on crystallization after exercise of all legal remedies available 

to the DIL and KFCL shall be paid only to the extent of 25% of the 

principal amount over a period three years after a moratorium of one 

year from the date of order on interest free basis. Simple / compound / 

penal interest, damages, penalties, other charges etc. charged or 

chargeable on the same and balance 75% amount shall be waived 

15.17 From Workmen and all Employees including Ex- Employees 

Fertilizer Division: 

(i) 

DIL and KFCL have executed a Memorandum of Understanding (MOU) 

with the recognized workmen union i.e. IEL Employees Union / workmen 

of the Fertilizer Division on 06.06.2010 which inter alia provides terms 

and conditions for restart and running of fertilizer plant and the manner 

in which their dues are payable. Based on the said MOU, estimated dues 

have been provided in the Scheme and included under total employees 

dues (including VRS dues, PF and ESI dues, contribution to gratuity and 

pension funds) net of advances of Rs 79.44 Cr. The said MOU dated 

06.06.2010 has been agreed to and executed individually by more than 

99% of workmen on roll of the Fertilizer Undertaking. The workmen / IEL 

Employees Union and the Company to abide by the terms and conditions 

of the MOU. 

54 --


Duncans Voluntarily Retired Employees and Pensioners Association in 

Appeal No 232 of 2010 has submitted its affidavit before the Hon ble 

AAIFR on 15.09.2010 agreeing with the terms and conditions for their 

payment without interest and other claims within a period of 120 days in 

lump sum from the date of sanction of the scheme, as per AAIFR order 

dated 15.09.2010 

(ii) 

A Memorandum of Understanding (MOU) has also been executed with 

the majority of supervisors i.e. 26 supervisors out of total 33 supervisors 

individually and their dues have been incorporated in the Scheme based 

on the said MOU and included under total employees dues net of Rs 

79.44 Cr. 

(iv) 

(iii) Surplus funds available in Non Management Staff Pension Scheme shall 

be transferred to Senior Management Staff Pension Scheme and to 

make up the short fall, Rs 1.38 Cr shall be contributed by the KFCL to 

the said fund of senior management pension in three equal annual 

installments from COD. Pension to the retired / left beneficiaries, after 

waiver of interest or any other claim on delayed payment of pension 

benefit, shall be commenced within three months from the date of 

approval of transfer of surplus funds from Non Management Staff Pension 

Scheme. 

VRS / Pension Payable to Ex- Employees of Fertilizer Division Opted 

Voluntary Retirement: 

(a) Employees of commercial department of New Delhi office / other offices 

of the fertilizer undertaking s who were separated in the past under VRS / 

Pension Schemes shall be paid their VRS / Annuity dues amounting to 

Rs 4.09 Cr without interest and other claims within a period of 120 days 

in lump sum from the date of sanction of the scheme, in terms of AAIFR 

order dated 15.09.2010. 

(b) All ex- employees who have opted voluntary retirement (including 32 ex 

employees of commercial department of Fertiliser Division) have agreed 

to withdraw all legal cases, disputes, demands / claims from the court, 

tribunal, labour court, judicial and quasi judicial authorities, or any other 

forum. Payments to these ex-employees shall be made after withdrawal 

of their cases . 

55 --


16.0 SACRIFICES FROM EXISTING SHAREHOLDERS 

(i) 

(ii) 

(iii) 

(iv) 

To agree and accept the proposal of issue of further shares to the promoters 

as envisaged in this Rehabilitation Scheme. 

Existing paid up equity share capital (subscribed) Rs 53.22 Cr of DIL shall 

stand reduced by 60% i.e Rs 31.93 Cr and post reduction every five (5) 

equity shares of Rs 4/- each shall stand consolidated into two (2) equity 

share of Rs . 10/- each fully paid-up. Special Resolution to be passed by the 

shareholders. 

Post reduction of share capital and consolidation of shareholding of the share 

holders of DIL, who would be entitled for less than one (1) equity share, will 

be transferred to a person authorised by the Board of Directors of DIL who 

will hold these shares in trust and sell the same to distribute the sale 

proceeds to those shareholders in proportion of their share holding. 

Existing 9,50,000 Redeemable Cumulative Preference Shares aggregating to Rs 

9.50 Cr shall stand reduced by 60% i.e Rs 5.70 Cr and post reduction every five 

Redeemable Cumulative Preference share of Rs 40/- each shall stand consolidated 

into two Redeemable Cumulative Preference Share of Rs . 100/- each fully paid-up. 

These Preference Shares shall be redeemed in five equal annual installment 

commencing from March, 2017. 

0.001% Cumulative Redeemable Preference Shares (CRPS) of Rs 100/- each 

aggregating to Rs 165.98 Cr issued to the banks and financial institutions along with 

unpaid accrued amounting to Rs 0.65 Cr dividend till cut off date thereon shall 

stand fully written off in terms of the OTS settlement with the banks and Financial 

Institutions ( Also incorporated under reliefs from FIs/Banks) 

(v) KFCL ( Transferee Company) shall issue one (1) number of equity share of Rs 10/- 

each fully paid up to the equity shareholders of DIL for every 40 ( forty equity 

shares) of Re. 10/- each (post de-rating and consolidation) held by them 

pursuant to the Scheme of Arrangement. The said shares shall be distributed 

amongst the shareholders of DIL in proportion of their shareholding in DIL as 

on a record date. The shares to be allotted to the individual shareholders of 

DIL who would be entitled for less than hundred (100) equity shares will be 

transferred to a person authorised by the Board of Directors of Transferee 

Company who will hold these shares in trust and sell the same to distribute 

the sale proceeds to those shareholders in proportion of their share holding. 

vi) 

The approval for de-rating of shares shall be subject to passing of Special 

Resolution by the shareholders. 

56 --

17.0 FINANCIAL VIABILITY: 

17.1 Duncans Industries Ltd (DIL) 


(Rs\Cr) 

As on March 31, 2009 2010 2011 2012 2013 2014 2015 

Audited Audited Proj. Proj. Proj. Proj. Proj. 

Installed capacity 

1 2 3 4 

(MTPA) 

Fertilizer ( Urea) 7,22,000 7,22,000 7,22,000 NA NA NA NA 

Tea ( Approx) 15,000 15000 15000 15000 15000 15000 15000 

Production (MTPA) 

Fertilizer ( Urea) 0 0 0 NA NA NA NA 

Tea 14953 14386 14236 15315 16795 16795 16795 

% Growth(Tea) -4% -1% 8% 10% 0% 0% 

Net Sales 138.60 156.30 180.72 193.33 212.00 215.31 215.31 

% Growth 35 13% 16% 7% 10% 2% 0% 

Other Income 5.13 2.76 2.75 2.00 2.00 2.00 2.00 

Increase in Stocks 8.41 1.23 0 0 0 0 

Production Cost and other 147.41 146.08 151.31 160.61 169.78 174.72 174.72 

Expenses 

PBDIT ( Tea). -3.68 21.39 33.40 34.72 44.22 42.59 42.59 

Expenses Relating to 

1.52 1.46 36.42 0.00 0.00 0.00 0.00 

Fertiliser Division 

Interest 5.04 7.53 11.57 11.57 13.39 13.39 12.37 

Depreciation (Tea) 2.84 2.90 3.03 3.03 3.03 3.03 3.03 

Depreciation (Fertiliser) 10.76 10.76 5.38 0.00 0.00 0.00 0.00 

Profit before tax (Tea) -23.84 -1.26 -23.00 20.12 27.80 26.18 27.19 

Less: Tax 0.34 0.00 0.00 0.00 0.00 0.00 0.00 

Late payment charges 5.65 

Foreign Exchange 

Fluctuation (Loss)/ Gain 

Provisions for Doubt full 

deposits / advances 

-24.59 12.33 0.00 0.00 0.00 0.00 0.00 

0.00 -1.17 -23.05 0.00 0.00 0.00 0.00 

Profit after tax -48.09 9.90 -46.05 14.47 27.80 26.18 27.19 

Share Capital 228.71 228.71 228.71 67.29 67.29 67.29 67.29 

Reserves & Surplus 142.12 142.12 142.12 115.25 115.25 115.25 115.25 

Accumulated Losses -1441.64 -1431.73 -1074.59 -14.85 12.96 39.14 66.32 

Net Worth 1070.81 -1060.90 -703.76 167.70 195.50 221.69 248.87 

17.1.1 Comments (DIL): 

Net worth becomes positive in YE 2012 while the accumulated 

losses are wiped out in YE 2013. 

57 --


17.2 Kanpur Fertilisers & Cement Ltd (KFCL): (Rs\Cr) 

Installed capacity 

(MTPA) 

2009 2010 2011 2012 2013 2014 2015 

Audited Audited Proj. Proj. Proj. Proj. Proj. 

1 2 3 4 

Fertilizer ( Urea) in 722 722 722 722 722 722 722 

thousand MT 

Production 

(MTPA) NA NA NA 

Fertilizer ( Urea) in 

thousand MT Nil Nil Nil 703.925 722 722 722 

Capacity Utilisation Nil Nil Nil 97% 100% 100% 100% 

Net Sales NA NA NA 361.11 370.39 370.39 370.39 

Concession Price 

(Subsidy) NA NA NA 1116.70 1145.38 1189.54 510.78 

% Growth NA NA NA 3% 0% 0% 

Other Income NA NA NA 1.68 1.68 1.68 1.68 

Production Cost 

and other Expenses NA NA NA 1412.98 1415.91 1372.27 726.03 

PBDIT NA NA NA 66.51 101.54 189.34 156.82 

Interest NA NA NA 0 0 0 0 

Depreciation NA NA NA 12.00 15.70 18.34 20.98 

Profit before tax 

(Tea) NA NA NA 54.51 85.84 170.99 135.83 

Less: Tax NA NA NA 0.00 0.00 0.00 0.00 

Profit after tax NA NA NA 54.51 85.84 170.99 135.83 

Equity Share 

Capital NA NA 0.10 400.63 400.63 400.63 400.63 

Reserves & Surplus NA NA 0 0 0 0 0 

Accumulated 

Losses NA NA -403.18 -349.20 -263.37 -92.38 43.46 

Net Worth NA NA -403.08 51.43 137.26 308.25 444.09 

17.2.1 Comments (KFCL): 

Net worth becomes positive in year ending 31.3.2012 while the accumulated 

losses are wiped out in YE 2015. 

58 --

18 Debt Service Coverage Ratio (DSCR) 


18.1 Duncans Industries Ltd (Post De-Merger of Fertiliser Division) 

(Rs / Lakh) 

For the year ending 31st March 2012 2013 2014 2015 Total 

Inflow 

Net Operating Profit before Depreciation 1750 3083 2921 3022 10776 

Late payment charges (Arcil and CBI) 565 565 

TOTAL 2315 3083 2921 3022 11341 

Servicing 

Capital Expenditure 1223 1223 

Repayment of WCTL and Loan 0 379 1190 2000 3569 

Payment of Other Secured Loans 578 578 

Payment of Unsecured Debts 6607 1471 1470 1470 11018 

Late payment charges (Arcil and CBI) 565 565 

Increase in Current Assets / Working Capital 500 500 1000 

Payment to Unsecured Creditors / Liabilities 1337 1320 1308 993 4958 

10810 3670 3968 4463 22911 

Less: Servicing out of Promoters 

8851 1968 1468 3153 15438 

Contribution / funds from KFCL 

TOTAL 1959 1702 2500 1310 7473 

DSCR 1.18 1.81 1.17 2.31 1.52 

Comments: 

Average DSCR of 1.52 with minimum of 1.17 in 3rd year of de-merged operations ( 

YE 2014) is satisfactory ( benchmark being 1.33:1) 

18.2 KFCL ( De-merged Fertiliser Division) 

(Rs / Lakh) 


Inflow I II III IV 

Net Operating Profit 5451 8584 17099 13583 44717 

Depreciation 1200 1570 1834 2098 6703 

Funds from JUBVPL (JV Co.)/ JFIL 

63777 10500 74277 

/ Associates 

TOTAL 70428 20654 18933 15682 125697 

Servicing 

Capital Expenditure 9923 13007 0 0 22929 

Payment of Secured Debts OTS 25721 0 0 0 25721 

Funds to DIL for Settlement of Debts 7186 1468 1468 1468 11588 

Payment to Unsecured Creditors / 

7385 1970 1970 1609 12934 

Liabilities 

TOTAL 50215 16445 3438 3077 73172 

DSCR 1.40 1.26 5.51 5.10 1.72 

18.2.1 Comments: 

Average DSCR of 1.72 with minimum of 1.26 in 2 nd year of operations ( 

YE 2013) is satisfactory ( benchmark being 1.33:1). 

59 --


19 CONCLUSION 

19.1 The rehabilitation strategy envisages reliefs and concessions by the 

Central & State Governments and also induction of fresh funds by the 

promoters / associates / strategic investor and its WOS / JUBVPL to 

finance the cost of the scheme. The financial projections of DIL and 

KFCL as per the rehabilitation scheme are enclosed. The Projected 

Profitability Statement reveals that DIL will start earning profits from the 

first year of rehabilitation itself. As per the projected Balance Sheet, the 

net worth of DIL would become positive in YE 2012 and accumulated 

losses will be wiped off in YE 2013. 

19.2 In respect of KFCL, The Projected Profitability Statement, reveals that 

KFCL will start earning profits from the YE 2012 itself. As per the 

projected Balance Sheet, the net worth of KFCL would become positive 

in YE 2012 and accumulated losses will be wiped off in YE 2015. 

19.3 The Projected Cash Flow Statement reveals that DIL shall have surplus 

cash flows, which can be used for its modernization / expansion 

programs taken up subsequently. 

19.4 Therefore, the Scheme can be considered to be commercially and 

techno-economically viable. 

20. GENERAL TERMS AND CONDITIONS 

a. State Bank of India (SBI) is appointed as the Monitoring Agency 

(MA). 

b. The company shall take steps to strengthen the management 

structure and effectiveness. 

c. The Company shall constitute a Monitoring Committee 

consisting of CEO of the company and Special Director of 

BIFR, if any and MA to oversee and monitor implementation 

of the Rehabilitation Scheme.Sale or disposal of any asset, 

movable or immovable, should be done only through ASC 

constituted as per guidelines of BIFR. 

d. The company shall take steps to strengthen the internal control 

systems and internal audit system. 

e. The company shall appoint a reputed Chartered Accountant s firm 

as Concurrent Auditors with direct reporting relationship to MA 

with copy to the CEO of the company on terms satisfactory to it. 

The BOD shall review the Concurrent Auditor s Report and take 

needful corrective steps immediately thereof. 

60 --


f. The company shall satisfy MA that the physical progress and all 

aspects of cost of the scheme/means of finance of the scheme is 

complied with as per the original schedule. To this end, the 

company shall furnish to MA such information and data as may be 

required by it at intervals stipulated by it. Any financial shortfall 

arising out of the delayed implementation of the schedule or for 

any other reason shall be met by the company/promoters without 

any recourse to FI/Banks or seeking any further 

reliefs/concessions from them than what has already been 

provided for in the Scheme within a period not exceeding three 

months. 

g. The company shall not undertake any new project or expansion or 

make any investment or obtain any asset on lease/hire without 

the prior approval of BIFR during the currency of the Scheme. 

h. The company shall not declare any dividend on equity shares 

without prior approval of BIFR during the rehabilitation period. 

i. The company shall continue to submit its audited balance sheet 

(ABS) from cut off date onwards at the end of each financial year 

within one month of the finalization thereof to the Monitoring 

Agency (MA)/secured and main creditors and BIFR. It shall 

ensure finalization of ABS in terms of provisions of Companies 

Act, 1956 without fail and the BOD must ensure to avoid any 

delay. 

j. In addition to meticulous compliance with the schedules of 

payments covered under the scheme, the company shall ensure 

timely payment of all dues accruing after the cut off date and/or 

date of sanction of the scheme to Banks, Financial Institutions, 

Central and State Governments and Statutory Authorities in 

normal course, failing which the concerned parties would be free 

to withdraw the reliefs and concessions granted by them, subject 

to prior approval of BIFR. 

k. The company shall submit progress reports (PR) regarding the 

implementation of the scheme to MA on quarterly basis within one 

month following the close of the quarter during the first two years 

of the scheme and on half-yearly basis thereafter till full 

implementation if the progress has been good in terms of 

projections. The MA shall monitor the implementation of the 

scheme in all its aspects and shall submit a review of the 

implementation of the scheme to BIFR within a month of receipt of 

such PR with copies to BOD of the company and to all concerned. 

61 --


If the company defaults to submit the PR, the MA must report to 

the Board also. 

l. The loans inducted/to be inducted by the promoters shall be 

subordinated and interest free and shall not be withdrawn during 

the rehabilitation period without the prior approval of BIFR/MA. 

m. Any shortfall in the means of finance will be brought in by the 

promoters / JFIL / JUBVPL (JV Co.). 

n. All current dues arising after cut-off date to be paid by the 

company in the normal course and no special protection of SICA 

would be available for this purpose. 

o. Dues upto cut-off date not disclosed/covered in the rehabilitation 

scheme to be met by the company/promoters by bringing 

additional interest free funds from outside sources. 

p. The company/promoters are directed u/s 22A of SICA not to 

dispose of, sell or alienate any fixed or current assets of the 

company without the consent of the secured creditor and the 

BIFR. The current assets, however, can be drawn down to the 

extent required for day-to-day operations and proper accounts of 

which would be maintained. 

q. The provisions of the Scheme shall have effect notwithstanding 

anything inconsistent therewith contained in any other Act except 

the provisions of the Foreign Exchange Management Act, 1999 

and the Urban Land (Ceiling and Regulation) Act, 1976) for the 

time being in force or in the Memorandum and Articles of 

Association of the company or in any other instrument having 

effect by virtue of any Act other than Sick Industrial Companies 

(Special Provisions) of Act, 1985 as amended or re-enacted from 

time to time or any Act passed in replacement thereof. 

r. Reference to BIFR shall include any successor Tribunal or Forum 

or Authority, which is conferred with or which exercises the 

powers exercised by the BIFR. 

s. The assets and liabilities of the fertilizer undertaking shall stand 

transferred and vested through de-merger as a going concern to 

the KFCL, in terms of the attached Scheme of Arrangement in 

accordance with the provisions of Section 18 (6A) / Section 18(7) 

of SICA and / or this transfer shall be construed to be a Demerger 

under and for the purpose of section 391-394 of the 

Companies Act, 1956 for all legal, taxation, accounting and all 

other purposes. 

62 --


t. Notwithstanding anything contained in the scheme, the fresh 

equity being inducted by the existing promoters / associates / 

strategic investor in terms of this scheme will have a lock in period 

of 3 years from the date of issue of the equity shares. 

u. This Scheme shall come into force with immediate effect and shall 

be implemented by all concerned as per the time frame stipulated 

/ or envisaged in the Scheme and in the Annexures hereto. 

(YK GAIHA) 

MEMBER 

Dated : 2012 

Encl: 

(NIRMAL SINGH) 

CHAIRMAN 

ANNEXURE 

1. Cost of Scheme & Means of Finance I 

2. Assumptions underlying projections II 

3. Projected Profit & Loss Estimates (DIL) III 

Projected Profit & Loss Estimates (KFCL) 

4. Projected Balance Sheets (DIL) IV 

Projected Balance Sheets ( KFCL) 

5. Projected Cash Flow (DIL) V 

Projected Cash Flow ( KFCL) 

6 DSCR VI 

7. Details of Proposed Capital Expenditure VII 

8. Liabilities of Fertilizer Undertaking VIII 

9 Details of Liabilities as on 30.9.2010 IX 

10 Contingent Liabilities as on 31.3.2010: X 

11 List of Legal Cases Pending Before Various Courts XI 

12 List of unsecured Creditors XII 

13 Details of Lead Managers and Co-managers Subscribing XIII 

Unsecured Foreign Currency Convertible Bonds (FCCBs) 

14 Scheme of Arrangement A 

63 --


COST OF SCHEME AND MEANS OF FINANCE 

Annexure 

I 

The cost of the scheme of KFCL (Fertilizer) and DIL has been estimated as 

Rs. 1059.40Cr , the break up of which is as under : 

Cost of the Scheme 

(Rs / Cr) 

KFCL DIL Total 

1 Payment of OTS Dues of TL and balance of 257.21 - 257.21 

additional working capital to Banks / FI s 

2 Payment of Late payment charges (Arcil and CBI) 5.65 5.65 

3 OTS Payment to Other Secured Dues (debentures, - 5.78 5.78 

ICDs) out of funds from KFCL 

4 Repayment of WCTL and loan - 35.69 35.69 

5 Payment of other unsecured debts i.e. FCCB - 110.19 110.19 

Rs.36.44 Cr, Fixed Deposits Rs 66.07 Cr,, Inter 

Corporate Deposits Rs.7.53 Cr and OCD s Rs.0.07 

Cr aggregating to Rs. 73.67 Cr out of funds from 

KFCL and Housing Board Rs. 0.08 Cr) 

6 Statutory Dues 1.74 9.03 10.77 

7 Payment of Workmen / Employees Dues 77.61 34.85 112.46 

8 Other Unsecured Creditors / Liabilities 49.99 23.68 73.67 

9 Funds for settlement of dues of other secured debts 115.88 -115.88 - 

(i.e. secured debentures and deposits Rs. 5.78 Cr 

and unsecured debts i.e. Fixed Deposits, Inter 

Corporate Deposits and OCD s aggregating to 

Rs.73.66Cr) 

10 Working Capital for Fertilizer already brought in 30.56 30.56 

11 Increase in Current Assets 165.89 10.00 175.89 

12 Capital expenditure 229.30 12.23 241.53 

Total 897.62 161.78 1059.40 

Means of Finance 

( Rs / Cr) 

KFCL DIL Total 

1 Equity by JUBVPL the JV Co. / Promoters 400.00 11.65 411.65 

/ Associates 

2 Unsecured Loans & Advances by 

30.56 30.56 

Promoters * 

3 Debts by JUBVPL the JV Co./ JFIL / 342.77 26.85 369.62 

Promoters and Associates 

4 Internal Accruals 154.85 92.72 247.57 

Total 897.62 161.78 1059.40 

* Already brought in and will be converted into equity in DIL. 

64 --


DIL : Cost of the Scheme and Means of Finance Annexure I ( Contd) 

(Rs./ Lakh) 

For the year ending 31st, March 2012 2013 2014 2015 Total 

Cost 


Payment of Other Secured Dues 578 0 0 0 578 

Payment of Late payment charges (Arcil & 

CBI) 565 0 0 0 565 



Increase in Working Capital 500 500 0 0 1000 

Working Capital for Fertiliser ( Already 

Brought in) 3056 0 0 0 3056 


Total 14066 3670 3968 6062 27766 


Equity by Promoters / Associates 1165 0 0 0 1165 

Equity / Unsecured Loans from Promoters / 

Associates Co. 500 500 1685 2685 

Unsecured Loans from Promoters / 

Associates Co. (Already Brought in ) 3056 3056 

From KFCL for Settlement of Debts 7186 1468 1468 1467 11588 

Internal Accrual 2159 1702 2500 2911 9272 

Total 14066 3670 3968 6062 27766 

KFCL : Cost of the Scheme and Means of Finance: 

(Rs. / Lakh) 


Cost 

OTS Banks/FIs 25721 0 0 0 25721 

Settlement of Unsecured Loans by DIL 7186 1468 1467 1467 11588 

Unsecured Creditors and Liabilities 7385 1970 1970 1609 12934 


Increase in Working Capital (Net) 13287 379 555 14221 

Cash and Bank Balances 2368 2368 

Total 65870 16824 3992 3076 89762 


Equity by JV Co. 40000 0 0 0 40000 

Secured Debts by WOS / JV Co. / Associates 23777 10500 34277 


Total 65870 16824 3992 3076 89762 

65 --


Cost of the Scheme and Means of Finance (DIL and KFCL): 

Annexure I ( Contd) 

(Rs. / Lakh) 


Cost 

OTS Banks/FIs 25721 0 0 0 25721 

Payment of Late payment charges (Arcil & 

CBI) 565 0 0 0 565 

Payment of Other Secured Dues 578 0 0 0 578 

Payment of FCCB Holders, Fixed Deposits, 

Intercorporate Deposits etc. 6607 1471 1470 1471 11019 

Repayment of WCTL 0 379 1190 2000 3569 

Payment to Unsecured Creditors and 

Liabilities 8922 3290 3278 4200 19690 

Working Capital for Fertiliser ( Already 

Brought in) 3056 0 0 0 3056 

Increase in Working Capital 16155 879 555 0 17589 


TOTAL 72750 19026 6493 7671 105940 


Equity by JV Co. in KFCL 40000 0 0 0 40000 

Secured Debts by WOS / JV Co. / Associates 23777 10500 0 0 34277 

Equity by Promoters / Associates in DIL 1165 0 0 0 1165 

Equity / Unsecured Loans from Promoters / 

Associates Co. 500 500 1685 2685 

Unsecured Loans from Promoters / 

Associates Co.(already brought in) 3056 0 0 3056 


TOTAL 72750 19026 6493 7671 105940 

66 --


Annexure II 

SIGNIFICANT ASSUMPTIONS UNDER LYING FUTURE PROFITABILITY AND CASH 

FLOW 

I. Basic Premises 

Cut-off date for crystallization and restructuring of assets and liabilities of fertiliser 

division has been considered as 30.9.2010 The operation of fertilizer plant has 

been considered from 01.04.2011. 

II. Fertiliser - Urea 

1. Installed Capacity: 

Installed capacity Urea 7.22 lacs TPA as reassessed by FICC vide notification 

04.06.2002 on the basis of average 300 working days of 24 hours per day. 

2. Capacity Utilisation: 

DIL has achieved capacity utilisation of 7.33 lacs TPA on consistent basis from 

1996 to1999. Accordingly after recommencement ( assumed from 1.4.11) of the 

plant, production of 703925 (97%) tones of Urea has been assumed in 2011-12 

due to stabilisation of the plant in first three month and thereafter 100% capacity 

utilization of 722000 tones of Urea has been assumed. 

3. Sales Realisation: 

MRP of Urea from dealers has been taken at Rs. 5310/- MT and after dealers 

margin Rs. 5130/- MT. 

4. Naphtha price has been assumed at Rs. 32000/- per MT on consistent basis. Gas 

(after conversion of feed stock from Naphtha to Gas) has been assumed at 6.5 $ / 

MMBTU at an exchange rate of ($=Rs. ) Rs. 50/-. 

5. Landed cost of coal has been assumed at Rs. 3000/- per MT and power supply 

from KESCO at the rate of Rs. 4500 per MW. 

6. Catalyst has been assumed at Rs. 55.4 per tone of urea and cost of chemicals and 

other consumables at Rs. 100/- per tone of urea. 

7. Selling and distribution expenses for buffer & rake handling, warehousing, loading 

/ unloading , rebate and discounts have been provided at Rs. 127.3 per MT of 

urea. 

8. Packing cost of the bags have been provided at Rs. 12 per bag. 

9. Repairs & Maintenance have been provided @ Rs. 249.3 per MT of urea. 

10. Other fixed overheads and administrative expenses have been assumed at Rs. 

100 per MT of urea. 

11. Salary and wages including all admissible perquisites have been provided @ Rs. 

415.5 per MT of urea. 

67 --


12. In view of the settlement of secured and unsecured debts on OTS basis no interest 

has been provided on these debts. Loans envisaged under the scheme will be 

interest free. 

13. Depreciation of Rs. 912 lacs on existing fixed assets has been provided annually 

on adhoc basis on existing fixed assets and on proposed additions on Straight 

Line Method at 5.28% as specified Schedule XIV for continuous process plant. 

14. Energy norms and Concession price from GOI has been assumed based on 

above costs in line with the relief s envisaged from the Department of Fertilisers as 

under: 

15. 

Existing 1 st Year 2 nd Year Gas 

1-4 Years 

Gas 

5 year> 

Production MT 722000 722000 722000 722000 722000 

Consumption 

Naphtha T/T of 0.460417 0.458572 0.458572 18.177747 18.177747 

Urea 

Power 

MW/T of 0.6197 0.55993 0.532692 0.532692 0.532692 

Urea 

Coal 

T/T of 0.2589412 0.23980 0.157853 0.157853 0.157853 

Urea 

Total Energy Gcal/T 7.799557 7.51456 7.03006 6.88756 6.88756 

Cons. 

of Urea 

Allowable Gcal/T 7.847000 7.847000 7.847000 7.847000 6.887558 

Energy 

of Urea 

Realisation for 

Subsidy 

Rs./MT 

of Urea 

Naphtha / Gas 14733.33 14674.31 14674.31 5907.77 5907.77 

Power 2788.74 2519.68 2397.11 2397.11 2397.11 

Coal 776.82 719.39 473.56 473.56 473.56 

Savings 100.05 714.41 1848.36 831.05 0 

Total Energy 

18398.94 18627.79 19393.34 9609.49 8778.44 

Cost 

Bags 20.1 201.00 201.00 201.00 201.00 201.00 

Raw Water 4.00 4.00 4.00 4.00 4.00 

Total Variable (A) 18603.94 18832.79 19598.34 9814.49 8983.44 

Cost 

Conversion (B) 2390.00 2390.00 2390.00 2390.00 2390.00 

Cost 

Total 

(A+B) 20993.94 21222.79 21988.34 12204.49 11373.44 

Realisation 

Less; From 

5130.00 5130.00 5130.00 5130.00 5130.00 

Dealers 

Net Concession 

from GOI 

15863.94 16092.79 16858.34 7074.49 6243.44 

16. Tax has been computed considering the carry forward business loss and un 

absorbed depreciation as per the assessment orders / returns and extended period 

to carry over as envisaged in the relief and concessions considering the existing 

provisions / rates provided in the Income Tax Act. 

17. Working Capital on recommencement of the operations has been assessed as per 

norms. 

68 --


III. Tea 

1. Assumption with respect to Tea production, costs and selling price of tea are as 

under: 

2010-11 2011-12 2012-13 2013-14 

Own Crop-MT 14236 14815 16295 16295 

Bought Leaf-MT 500 500 500 

Sale Ratio Auction/ Pvt. 75/25 75/25 75/25 75/25 

Avg. Selling Price Rs./Kg 128 128 128 130 

Cost; 

Bought Leaf Price Rs./Kg 15 15 15 

Other Cost: 

Stores, bags, fertilizers and 

12 . 12 . 12 . 12 . 

agro chemical Rs./Kg 

Power & Fuel Rs. /Kg 14 14 14 14 

Employees cost 

5% over previous 

year 

5% over 

previous year 

5% over 

previous year 

5% over 

previous year 

2. Rs. 500 lacs have been provided for replanting and infillings of tea bushes 

ensuring replanting in 100 hect area @ Rs 2.50 per hect. and mature tea 

infillings @ Rs. 15 lacs in each garden from 2012-13 onwards. 

3. Other fixed overheads of Rs. 770 lacs have been provided in 2011-12 on wards. 

4. Interest on working capital facilities from the banks has been provided at present 

SABR 12.50% plus 2%. Interest on WCTL has been provided at present SABR 

12.50% . Interest on temporary tea invoice financing by the brokers as per the 

industry practice, purchase of inputs under letter of credits of the Banks, has 

been assumed Rs. 500 lacs during 2010-11 and onwards. 

5. Depreciation on tea fixed assets has been computed on additions upto December, 

1975 on Reducing Balance Method in the manner and at the rates specified in 

Schedule XIV and subsequently on Straight Line Method at the rates specified 

Schedule XIV in line with the Accounting Policy of the Company. 

6. Arrear of gratuity contribution ( Rs. 25.64 Cr ) and superannuation contribution 

( Rs. 5.46 Cr ) have been provided in cash flow in four equal annual installments 

to the respective funds after one year from the date of sanction of the Scheme. 

7. Dues of the ex- executives of DIL s corporate office and tea estates ( Rs. 1.35 Cr ) 

has been provided in cash flow paid in three equal yearly installments after one 

year from the date of sanction of the Scheme . 

8. Tax has been computed considering the carry forward business loss and un 

absorbed depreciation as per the assessment orders / returns and extended 

period to carry over as envisaged in the relief and concessions considering the 

existing provisions / rates provided in the Income Tax Act. 

9. Working Capital requirement has been assumed from the banks according to the 

existing norms relating to tea industry . 

69 --


DIL: Projected Profit & Loss : 

Annexure 

III 

(Rs. / Lakh) 

Audited 

Projected 

For the year ending 31st March 2010 2011 2012 2013 2014 2015 

Production - Urea (MT) 0 

Production -Tea (MT) 13479 14236 14815 16295 16295 16295 

Production Bought Leaf-Tea (MT) 907 0 500 500 500 500 

Purchase -Tea (MT) 0 0 0 0 0 0 

Sales - Tea (MT) 13198 14236 15315 16795 16795 16795 

Closing Stock -Tea (MT) 1554 1554 1554 1554 1554 1554 

Gross Sales & Other Income 

Sales 15674 18114 19383 21255 21586 21586 

Less: Cess 44 42 50 55 55 55 

Net Sales 15630 18072 19333 21200 21531 21531 

Misc. Income 276 275.41 200 200 200 200 

Increase/(Decrease) in stock 841 123.44 - 

- 

- 

- 

Sale Value of Production 16747 18471 19533 21400 21731 21731 

Variable Cost 

Raw Materials (incl Tea Purchased) 670 0 350 350 350 350 

Power & Fuel 2143 1993 2144 2351 2351 2351 

Other Variable Cost 1797 1708 1778 1955 1955 1955 

Selling Expenses 500 762 645 707 707 707 

Total Variable Cost 5109 4463 4917 5364 5364 5364 

Fixed Cost 

Employee cost 8339 8956 9404 9874 10368 10368 

Repairs & Maintenance 428 450 400 400 400 400 

Replanting and Infillings 500 500 500 500 500 

Other Fixed Overheads 732 762 840 840 840 840 

Total Fixed Cost 9499 10668 11144 11614 12108 12108 

Gross Operating Profit From Tea 

2139 3340 3472 4422 4259 4259 

Division 

Interest 

On Working Capital 0 657 657 839 839 737 

Others 753 500 500 500 500 500 

Late Payment Charges (Arcil & CBI) 565 

Profit/ (Loss) After Interest from Tea 1386 2183 1750 3083 2921 3022 

Division 

Expenses Fertiliser of Fertiliser Plant 146 587 0 0 0 0 

Provision Employees Related Dues of 

3055 0 0 0 0 

Fertiliser Division 

Profit/ (Loss) After Interest 1240 -1457 1750 3083 2921 3022 

Depreciation- Tea Division 290 303 303 303 303 303 

Depreciation-Fertiliser Division 1076 538 

Income Tax 0 0 0 0 0 0 

Net Profit/ (Loss) -126 -2298 1447 2780 2618 2719 

- Foreign Exchange Fluctuation 

-1233 0 0 0 0 0 

Loss/(Gain) 

- Provisions for Doubtful Deposits / 

117 -2305 0 0 0 0 

Advances 

Total Extra Ordinary Items (1,116) (2,305) - - - - 

Net Profit/ (Loss) 990 (4,603) 1447 2,780 2,618 2,719 

70 --


KFCL: Projected Profit & Loss 

(Post Merger of Fertiliser Division) 

Annexure 

III ( contd) 

(Rs. / Lakh) 

For the year ending 31st March 2012 2013 2014 2015 

Capacity (MT) 722000 722000 722000 722000 

Capacity Utilisation (%) 97% 100% 100% 100% 

Production (MT) 703925 722000 722000 722000 

Despatches (MT) 703925 722000 722000 722000 

Sales (MT) 703925 722000 722000 722000 

Gross Sales & Other Income 

Sales 36111 37039 37039 37039 

Concession Price (Subsidy) 111670 114538 118954 51078 

Misc. Income 168 168 168 168 

Sale Value of Production 147950 151744 156160 88284 

Variable Cost 

Raw Material (Naphtha / NG) 103712 106375 105948 42654 

Power & Fuel 25099 25743 21806 20476 

Other Variable Cost 2800 2872 2872 2872 

Other Selling Expenses 896 919 919 919 

Total Variable Cost 132506 135909 131545 66921 

Fixed Cost 

Employee cost 3000 3000 3000 3000 

Repairs & Maintenance 1800 1800 1800 1800 

Administrative Expenses 882 882 882 882 

Total Fixed Cost 5682 5682 5682 5682 

Gross Operating Profit 9761 10154 18933 15682 

Start-up & Stabalisation Cost 3110 

PBIDT 6651 10154 18933 15682 

Interest 

Profit/ (Loss) after Interest 6651 10154 18933 15682 

Depreciation 1200 1570 1834 2098 

Income Tax 0 0 0 0 

Net Profit/ (Loss) 5451 8584 17099 13583 

71 --


DIL: Projected Balance Sheet 

Annexure 

IV 

(Rs. / Lakh) 

Audited 

Projected 

For the year ending 31st March 2010 2011 2012 2013 2014 2015 

Share Capital 

Equity 5322 5322 6349 6349 6349 6349 

Preference 950 950 380 380 380 380 

0.001% Cumm. Redem. Pref. Shares 16598 16598 0 0 0 0 

Sub Total Share Capital 22871 22871 6729 6729 6629 6729 

Reserves 14212 14212 11525 11525 11525 11525 

Accumulated Profit / (Loss) -143173 -107459 -1485 1296 3914 6632 

Secured Loans 

Banks/ FIs 66273 34515 0 0 0 0 

Working Capital from SBI and SBICI 2431 2431 2431 2431 2431 

WCTL from SBI and SBICI 2432 2432 2432 1622 0 

Loan from ARCIL 1137 1137 758 379 0 

Other Loans 1180 1180 0 0 0 0 

Interest Accrued 4430 4430 0 0 0 0 

Sub-Total 71884 46126 6001 5622 4432 2431 

Unsecured Loans 25522 25390 4409 2938 1469 0 

Interest Accrued 4953 4953 0 0 0 0 

Foreign Exchange Fluctuations 6619 6619 0 0 0 0 

Unsecured Loan -Promoters / 

Associates 3056 3056 500 1000 1000 1000 

Sub-Total 40149 40017 4909 3938 2469 1000 

Unsecured Creditors and Liabilities 40201 30218 12696 11376 10068 7475 

including statutory and employees 

dues 

Total Liabilities 46143 45985 40376 40487 39137 35792 

ASSETS 

Fixed Assets Gross (Net of 

Revaluation) 50310 24423 25746 26246 26746 27246 

Less Depreciation 27290 7181 7484 7787 8090 8395 

Fixed Assets (Net) 23020 17242 18262 18459 18656 18851 

Investments 9217 9217 9217 9217 9217 9217 

Current Assets 

Inventories 6804 1939 2189 2439 2439 2439 

Sundry Debtors 417 992 1142 1292 1292 1292 

Cash & Bank Balances 97 301 357 1238 1159 771 

Other Current Assets 4902 3021 3121 3221 3221 3221 

Sub Total 12221 6253 6809 8191 8112 7724 

Short Term Deposit 1685 1685 1685 1685 1685 0 

Receivable from KFCL for Settlement 

of unsecured Debts 11588 4403 2935 1468 0 

Total Assets 46143 45985 40376 40487 39137 35792 

NETWORTH -106091 -70376 16769 19550 22168 24886 

72 --


Annexure 

KFCL : Projected Balance Sheet (Post De-merger) 

IV(Contd) 

(Rs / Lakh) 

For the year ending 31st March 

Projections 

Post 

Demerger 2012 2013 2014 2015 

Share Capital 

Equity 10 40063 40063 40063 40063 

Accumulated Profit / (Loss) -40318 -34920 -26337 -9238 4346 

Secured Debts by WOS / JV Co. / 

Associates 0 23777 34277 25277 10277 

Secured Debts Banks / FI's 25721 0 0 0 0 

Payable to DIL for Settlement of Debts 11588 4403 2935 1488 0 

Sub Total 37309 28180 37212 26745 10277 

Unsecured Creditors and Liabilities 


(Past) 13122 5737 3767 1797 188 

including statutory and employees dues 


(Current Period) 0 11424 11715 11436 3704 

Sub Total 13122 17161 15482 13233 3892 

Total Liabilities 10124 50484 66420 70803 58578 

ASSETS 

Fixed Assets Gross (Net of Revaluation) 26445 37367 51374 56374 61374 

Less Depreciation 21297 22497 24067 25901 27999 

Fixed Assets (Net) 5148 14870 27307 30473 33375 

Current Assets 

Inventories 4965 12024 12260 12037 6445 

Sundry Debtors 0 12418 12737 13206 6007 

Cash & Bank Balances 3 5930 8760 9715 7397 

Other Current Assets 2768 8002 8117 8133 8114 

Less: Provision for Doubtful Advances -2768 -2768 -2768 -2768 -2768 

Other Current Assets( Net) 0 5235 5349 5365 5347 

Sub Total 4969 35607 39106 40323 25196 

Miscellaneous Expenditure 7 7 7 7 7 

Total Assets 10124 50484 66420 70803 58578 

Net Worth -40308 5143 13726 30825 44409 

73 --


DIL: Projected Cash Flow 

Annexure 

V 

(Rs / lakh) 

Estimated 2011 

Projected 

For the Period / Year ending 

31st March 30.9.2010 31.3.2011 Total 2012 2013 2014 2015 

(from 

1.10.10) 

Sources of Funds 

Operating Profit / (Loss) 702 -5305 -4603 1447 2780 2618 2719 

Add back: Provision for doubt 

full advances in Fertilizer, 2305 2305 

Provision for Salary & Wages 

and Expenses in Fertiliser 3555 3555 

Depreciation 691 150 841 303 303 303 303 

Operating Cash Profit 1393 704 2097 1750 3083 2921 3022 

Equity by Promoters / 

Associates 0 0 1165 0 0 0 

Interest Free Unsecured Loans 

fron Promoters / Associates 500 500 

Short Term Deposit 1685 

From KFCL for Settlement of 

Debts 0 0 7186 1468 1468 1468 

Total 1393 704 2097 10601 5051 4389 6175 

Application of Funds 

Capital Expenditure 211 0 211 1223 

Normal Capital Expenditure 0 100 500 500 500 

Repayment of WCTL 0 0 0 811 1621 

Repayment of Loan (ARCIL) 379 379 379 

Payment of Other Secured 

Loans 0 0 578 

Payment of Unsecured Debts 131 0 131 6607 1471 1470 1470 

Increase in Inventories 2068 -1945 123 250 250 0 0 

Increase In Debtors 575 575 150 150 

Increase in other Current 

Assets 479 200 679 100 100 

Payment to Unsecured Creditors 

and Liabilities including statutory 

and employees dues -2187 2361 174 1537 1320 1308 2593 

Total 1277 617 1893 10545 4170 4468 6563 

Opening Balance of Cash & 

Bank 97 214 97 301 357 1239 1159 

Surplus/(Deficit) 117 87 204 56 882 -79 -388 

Closing Balance of Cash & 

Bank 214 301 301 357 1239 1159 771 

74 --


KFCL : Projected Cash Flow 

(Post Merger of Fertiliser Division) 

Annexure 

V ( contd) 

(Rs. / Lakh) 

For the year ending 31st March 2012 2013 2014 2015 

Sources of Funds 

Equity Capital by JV Co. 40000 0 0 0 

Secured Debts by WOS / JV Co. / Associates 23777 10500 -9000 -15000 

Increase in Current Liabilities 11426 290 -278 -7733 

Net Operating Profit 5451 8584 17099 13583 

Depreciation 1200 1570 1834 2098 

Total 81854 20944 9655 -7052 

Application of Funds 

Capital Expenditure 9923 13007 0 0 

Normal Capital Expenditure 1000 1000 5000 5000 

Increase in Current Assets 24712 669 262 -12810 

OTS Payment of Secured Debts Banks / FI's 25721 0 0 0 

Payment for Settlement of Debts through DIL 7186 1468 1468 1468 

Payment to Unsecured Creditors and Liabilities 

including statutory and employees dues 7385 1970 1970 1609 

Total 75927 18114 8700 -4733 

Opening Balance of Cash & Bank 3 5930 8760 9715 

Surplus/(Deficit) 5927 2830 955 -2318 

Closing Balance of Cash & Bank 5930 8760 9715 7397 

75 --


Annexure VI 

KFCL : DSCR ( Post Merger of Fertilizer Division) 

(Rs. / Lakh) 


Inflow 

Net Operating Profit 5451 8584 17099 13583 44717 

Depreciation 1200 1570 1834 2098 6703 

Funds from Promoters / JV Co. 63777 10500 74277 

TOTAL 70428 20654 18933 15682 125696 

Servicing 


Payment of Secured Debts - OTS 25721 0 0 0 25721 

Payment to DIL for Settlement of Debts 7186 1468 1468 1468 11588 

Payment to Unsecured Creditors / 

Liabilities 7385 1970 1970 1609 12934 

TOTAL 50215 16445 3438 3077 73172 

DSCR 1.40 1.26 5.51 5.10 1.72 

Annexure VI ( contd) 

DIL : DSCR ( Post De-Merger of Fertiliser Division) 

(Rs./Lakh) 


Inflow 

Net Operating Profit before Depreciation 2315 3083 2921 3022 11341 

TOTAL 2315 3083 2921 3022 11341 

Servicing 

Capital Expenditure 1223 1223 


Payment of Other Secured Loans 578 578 

Late Payment Charges(Arcil & CBI) 565 565 


Increase in Current Assets / Working Capital 500 500 1000 


10810 3670 3968 4463 22911 

Less; Promoters Contribution / funds from KFCL 8851 1968 1468 3153 15498 

TOTAL 1959 1702 2500 1310 7473 

DSCR 1.18 1.81 1.17 2.31 1.52 

76 --


Annexure 

VII 

Proposed Capital Expenditure 

A. Capital Expenditure - Fertilizer Undertaking 

(Rs \ lakh) 

Revamping of Plant (1st 3 months) 

Inspection / Testing & Mechanical Repairs / Replacement 800 

Electrical Repairs / Replacement & cables Replacement 800 

Instrumentation 400 

Urea Reactor Lining 400 

Primary Reformer Catalyst 200 

Nitrogen, Liquid Ammonia and other Chemicals (pre-startup) 200 

DG Set Operating Expenses till Power reconnection 50 

Insurance and other expenses 150 3000 

Energy Saving Measures (12 months) 

Utilisation of final off gases from HPA system in Urea Plants. 390 

Installation of Capacitor Bank. 116 

Changing over to low excess air burners in Primary Reformer. 246 

Installing semi-lean flash tray in CO2 recovery section as done by 

246 

IFFCO/ZIL. 

Controlling speed of various motors. 92 

WFD in various fans and blowers. 367 

Carrying out modification to reduce pressure drop at Sync Gas 

467 

Compressor delivery. 

Sys. Gas Chiller 448 

Process air pre-heating & Ammonia wash system 100 2472 

Ammonia Synthesis Loop Revamping etc. (18 months) 8903 

Gas Conversion (24 months) 8555 

Total Capital Expenditure Fertilizer Division 22930 

(B) Tea Division 

I. Capex for Plant and Machinery 

Gungaram Tea Garden Factory 

CTC Banks - 2 Nos 36 

Replacement of 3 nos. BLC 11 

Augmentation of Mono Rail Capacity 4 

VFBD Model FF, Heater 18 Series, Chain grate 60 

Grooving Machine 7 

Milling Machine 4 121 

Bagracote Tea Garden Factory 

CTC Banks -1 Nos. 18 

Replacement of 1 nos. BLC 4 

77 --


Realignment of Air Duct for Troughs 4 

Milling Machine 4 29 

Killcott Tea Garden Factory 


Realignment of Air Duct for Troughs 10 28 

Nagaisuree Tea Garden Factory 

Replacement of 12" Rotorvane 4 

Mono Rail in Leaf House 18 

Continuous fermenting machine 6Mosule -3Nos 48 70 

Modification of Milling and Grooving Machine 

sharpen 13" rollers 2 

- 625 KVA gen-set 35 

- 2Nos. Trough /Decking 18 124 

Birpara Tea Garden Factory 


Cost of 1 Rotovane 4 

Mono Rail in Leaf House 32 

Heater 14 Series - Leaf House 14 

Trough 2Nos. 20 

FFS Machine 250GM 5 92 

Dumchipara Tea Garden Factory 


Replacement of 2nos. BLC 7 

Mono Rail in Leaf House 22 65 

Garganda Tea Garden Factory 


Replacement of 2nos. BLC 7 25 

Lankapara Tea Garden Factory 


Replacement of 2nos. BLC 14 

Mono Rail in Leaf House 30 64 

Hantapara Tea Garden Factory 

Completion of conversion to 750KVA by 

interchanging 500KVA on SKL incoming 14 

Goalgach Tea Garden Factory 


Pruning Machines 

Pruning Machine 165 Nos @ 28000/- 46 

for Pruning 1000Hec 

Weeder ( Rotovatoe ) 24 Nos @ 118000/- 28 

for Weeding 400Hec of YT 

Total Expenditure for Plant and Machineries 654 

78 --


II. Capex for Irrigation 

Hantapara Tea Garden 

Sec 27- Deep Tubewell to give approx. 40000gph 83 

Additional set to be operated from Factory tubewell sunk in 

2009/10 which is giving approx 40000gph 23 106 

Garganda Tea Garden 


Dumchipara Tea Garden 


Sec 31- Deep Tubewell 77 

Sec 23- Deep Tubewell resurged in 2009/10 

to give 40000gph for which submersible pump needs 

to be replaced 9 153 

Lankapara Tea Garden 

Sec 23- to cater for 3 irrigation sets of 80 Ha each 80 

Equipment to Source Water to Sec -23 reservoir 81 161 

Tulsipara Tea Garden 

Sec 7- WBSEDCL grid connection for running 

irrigation set 20 

Reactive no .7 tubewell 3 

Booster Pump. 4 26.25 

Killcott Tea Garden 

Jahadi -Construction of seepage dam 20 

Electricl OH from Factory 8 

Reactive no .7 tubewell 4 

Irrigation Equipment 17 49 

Gungaram Tea Garden 

Moonee - Sec-7 

Cost of 15HP Engine with pump 3 

Cost of conveying Pipes 9 

Cost of Pump House and Reservisors 4 16 

Total Expenditure for Irrigation 569 

Total Capital Expenditure Tea Division 1223 

79 --


Annexure 

VIII 

Liabilities to be Transferred to the KFCL 

(Rs\lakh) 

(A) Liabilities of Fertilizer Undertaking to be 

Principal Amount to be Waiver 

transferred to KFCL: 

Outstanding as on 

30.09.2010 

transferred / 

paid by KFCL 

I. Secured Loans, Debentures etc. of Banks and FI's 

SBI 10242.26 4041.93 6200.33 

CBI 6929.00 2734.41 4194.59 

SBT 2456.00 969.22 1486.78 

SBP 1801.00 710.73 1090.27 

SBICI 331.58 130.85 200.73 

ARCIL-PNB 6286.16 2480.73 3805.43 

ARCIL-BOB 2893.00 1141.67 1751.33 

ARCIL-IDBI 6347.00 2504.74 3842.26 

ARCIL-ICICI 9697.00 3826.76 5870.24 

ARCIL-UCO 3300.00 1302.29 1997.71 

ARCIL-IDBI Bank 375.00 147.99 227.01 

WBIDC 366.00 144.44 221.56 

Harsh - A/c HDFC 2000.00 789.27 1210.73 

PICUP 1349.00 532.36 816.64 

SICOM 1669.00 658.64 1010.36 

Antariksh ICICI 750.00 295.97 454.03 

PCDs 223.00 88.00 135.00 

Total Banks and FI's Debts other than Addl WC 57015.00 22500.00 34515.00 

Additional Working Capital 

CBI 1420.00 1420.00 0.00 

ARCIL-PNB 383.00 383.00 0.00 

ARCIL-BOB 709.00 709.00 0.00 

ARCIL-UCO 709.00 709.00 0.00 

Total Addl WC 3221.00 3221.00 0.00 

Total Secured Loans of Banks & FI's 60236.00 25721.00 34515.00 

Interest Accrued & due 4430.02 4430.02 

Total Secured Loans and Interest 64666.02 25721.00 38945.02 

Unsecured Creditors / Liabilities: 

Employees Dues 

Salary and Wages lay off compensation of Workmen 3667.92 3667.92 0.00 

Ex-gratia to Workmen f from 1.6.2006 1260.28 1260.28 0.00 

Salary and allowances of Supervisory and Management 

Staff 883.42 883.42 0.00 

VRS Dues 408.83 408.83 0.00 

Contribution to PF / FPF including Trusts 357.06 357.06 0.00 

ESI 3.53 3.53 0.00 

Gratuity Contribution Payable to Funds 729.14 729.14 0.00 

Contribution to Sr. Management Staff Pension Fund 

138.23 138.23 0.00 

Provision for Employees Accrued Leave 495.20 495.20 0.00 

Sub Total 7943.61 7943.61 0.00 

80 --


Statutory Dues: 

State & Central Sales Tax/VAT 52.25 52.25 0.00 

Interest on delayed payment of PF FPF dues 62.00 62.00 0.00 

Municipal Tax / Kanpur Cantonment Board Tax 59.42 59.42 0.00 

Provision for FBT 6.00 6.00 0.00 

Sub Total 179.67 179.67 0.00 

Other Unsecured Trade Creditors / Liabilities 

KESCO 8113.12 2028.28 6084.84 

IOC 5668.59 1417.15 4251.44 

Security Deposits 493.79 123.45 370.34 

Suppliers / Creditors 3041.19 760.30 2280.89 

Advance from Customer 95.49 23.87 71.62 

Interest Accrued 370.23 0.00 370.23 

Others 584.19 146.05 438.14 

Provision for Current Expenses 500.00 500.00 0.00 

Sub Total 18866.6 4999.09 13867.51 

Total Unsecured Creditors and Liabilities 26989.88 13122.37 13867.51 

Total Secured Loans and Unsecured Creditors/ 91655.90 38843.37 52812.53 

(B) Other Liabilities of the Fertilizer Undertaking to 

be settled and funds to be provided by KFCL: 

1. Other Secured Debts: 

15 % Optionally Convertible Debentures 520.00 254.80 265.20 

15% Redeemable NCD 130.00 63.70 66.30 

ICD's Bodies Corporate 530.00 259.70 270.30 

Sub Total 1180.00 578.20 601.80 

2. Unsecured Debts: 

15 % Optionally Convertible Debentures (OCD) 25.00 6.25 18.75 

Loans from Bodies Corporate 3010.24 752.56 2257.68 

Fixed Deposits 7773.35 6607.35 1166.00 

FCCB 14575.00 3643.75 10931.25 

Sub Total 25383.59 11009.91 14373.68 

Total 26563.59 11588.11 14675.48 

Total (A+B) 118219.49 50431.48 67788.01 

81 --


Annexure IX ( contd) 

Details of Liabilities as on 30.9.2010 

(Rs / Lakh) 

Outstanding 

30.09.2010 

Payable 

% 

Waiver Amount 

Payable 

A. Fertilizer Undertaking 

I. Secured Debts Banks and FI's 

SBI 10242.26 39.5% 6200.33 4041.93 

CBI 6929.00 39.5% 4194.59 2734.41 

SBT 2456.00 39.5% 1486.78 969.22 

SBP 1801.00 39.5% 1090.27 710.73 

SBICI 331.58 39.5% 200.73 130.85 

ARCIL-PNB 6286.16 39.5% 3805.43 2480.73 

ARCIL-BOB 2893.00 39.5% 1751.33 1141.67 

ARCIL-IDBI 6347.00 39.5% 3842.26 2504.74 

ARCIL-ICICI 9697.00 39.5% 5870.24 3826.76 

ARCIL-UCO 3300.00 39.5% 1997.71 1302.29 

ARCIL-IDBI Bank 375.00 39.5% 227.01 147.99 

WBIDC 366.00 39.5% 221.56 144.44 

Harsh - A/c HDFC 2000.00 39.5% 1210.73 789.27 

PICUP 1349.00 39.5% 816.64 532.36 

SICOM 1669.00 39.5% 1010.36 658.64 

Antariksh ICICI 750.00 39.5% 454.03 295.97 

PCDs 223.00 39.5% 135.00 88.00 

Total Banks and FI's Debts 57015.00 39.5% 34515.00 22500.00 

II. Additional Working Capital 

CBI 1420.00 100.0% 0.00 1420.00 

ARCIL-PNB 383.00 100.0% 0.00 383.00 

ARCIL-BOB 709.00 100.0% 0.00 709.00 

ARCIL-UCO 709.00 100.0% 0.00 709.00 

Total Addl WC 3221.00 0.00 3221.00 

Total Secured Debts Banks & FI's 60236.00 34515.00 25721.00 

Interest Accrued & due 4430.02 0.0% 4430.02 0.00 

Total Term Loans and Interest 64666.02 38945.02 25721.00 

III. Employees Dues: 

Salary and Wages, lay off compensation of 

Workmen 3667.92 100.0% 0.00 3667.92 

Ex-gratia to Workmen from 1.6.2006 1260.28 100.0% 0.00 1260.28 

Salary and allowances of Supervisory and 

Management Staff 883.42 100.0% 0.00 883.42 

VRS Dues 408.83 100.0% 0.00 408.83 

Contribution to PF / FPF including Trusts 357.06 100.0% 0.00 357.06 

ESI 3.53 100.0% 0.00 3.53 

Gratuity Contribution to Funds 729.14 100.0% 0.00 729.14 

Contribution to Sr. Management Staff 

Pension Fund ( Net of Surplus in NMS 

Pension Fund) 138.23 100.0% 0.00 138.23 

Provision for Employees Accrued Leave 495.20 100.0% 0.00 495.20 

Sub Total 

7943.61 0.00 7943.61 

82 --


IV. Statutory Dues: 

State & Central Sales Tax / VAT 52.25 100.0% 0.00 52.25 

Interest on delayed payment of PF FPF dues 62.00 100% 0.00 62.00 

Municipal Tax / Kanpur Cantonment Board Tax 59.42 100.0% 0.00 59.42 

Provision for FBT 6.00 100.0% 0.00 6.00 

Sub Total 179.67 0.00 179.67 

V. Other Unsecured Creditors and Liabilities 

KESCO 8113.12 25.0% 6084.84 2028.28 

IOC 5668.59 25.0% 4251.44 1417.15 

Security Deposits 493.79 25.0% 370.34 123.45 

Suppliers / Creditors 3041.19 25.0% 2280.89 760.30 

Advance from Customers 95.49 25.0% 71.62 23.87 

Interest Accrued 370.23 0% 370.23 0.00 

Others 584.19 25.0% 438.14 146.05 

Provision for Current Expenses 500.00 100.0% 0.00 500.00 

Sub Total 18866.60 13867.51 4999.09 

Total Unsecured Creditors and Liabilities 26989.88 13867.51 13122.37 

Total Secured and Unsecured Creditors / 

Liabilities of Fertilizer Undertaking (A) 91655.90 52812.53 38843.37 

B. Tea Undertaking 

I. Working Capital / Loan (To Continue): 

(a) Working Capital 

State Bank of India 2147.50 100.0% 0.00 2147.50 

State Bank of India (SBICI) 284.00 100.0% 0.00 284.00 

Total Working Capital 2431.50 0.00 2431.50 

(b) WCTL and Loan 

State Bank of India 2147.50 100.0% 0.00 2147.50 

State Bank of India (SBICI) 284.00 100.0% 0.00 284.00 

ARCIL(PNB) 1137.00 100.0% 0.00 1137.00 

Total WCTL and Loan 3568.50 0.00 3568.50 

Total (a+b) 6000.00 0.00 6000.00 

II. Secured Loans other than Banks 

15 % Optionally Convertible Debentures 520.00 49.0% 265.20 254.80 

15% Redeemable NCD 130.00 49.0% 66.30 63.70 

ICD's Bodies Corporate 530.00 49.0% 270.30 259.70 

Sub-total 1180.00 601.80 578.20 

III. Unsecured Loans 

15% Optionally Convertible Debentures (OCD) 25.00 25.0% 18.75 6.25 

Loan Under Housing Scheme from Housing Board 7.37 100.0% 0.00 7.37 

Loans from Bodies Corporate 3010.24 25.0% 2257.68 752.56 

Fixed Deposits 7773.35 85.0% 1166.00 6607.35 

FCCB 14575.00 25.0% 10931.25 3643.75 

Interest Accrued on FD's 795.13 0% 795.13 0.00 

Interest Accrued on other unsecured loans 216.88 0% 216.88 0.00 

Foreign Exchange Fluctuations 6619.30 0% 6619.30 0.00 

Promoters Contribution in CDR 3055.50 0.00 3055.50 

Interest Accrued on FCCB 3819.38 0% 3819.38 0.00 

Interest Accrued to ICD's 121.27 0% 121.27 0.00 

Sub-total 40018.42 25945.64 14072.78 

83 --


IV. Employees Dues: 

Dues of ex-employees 134.52 100% 0.00 134.52 

Contribution Payable to Gratuity Fund 2564.26 100% 0.00 2564.26 

Contribution Payable to Superannuation 

Fund 546.41 100% 0.00 546.41 

Provision for Accrued Leave 284.80 100% 0.00 284.80 

Salary and Wages Accruals (Current ) 2468.84 100% 0.00 2468.84 

Sub-total 5998.83 0.00 5998.83 

V. Statutory Dues: 

Cess on Green Leaf 150.67 100% 0.00 150.67 

Provision for FBT 107.14 100% 0.00 107.14 

PF / FPF Contribution including to Trusts 721.79 100% 0.00 721.79 

Interest on delayed payment of PF FPF 

dues 400.00 100% 0.00 400.00 

Water Pollution Control Fee 7.50 100% 0.00 7.50 

Lease Rentals and Panchayat Tax ( 

Gardens) 17.19 100% 0.00 17.19 

Tea Board 223.07 100% 0.00 223.07 

Sub-total 1627.36 0.00 1627.36 

VI. Unsecured Creditors / Liabilities 

(a) Non Current Period: 

Suppliers / Creditors ( Non Current) 1915.79 25% 1436.84 478.95 

L&T Finance 42.07 25% 31.55 10.52 

Bills Discounting( Third Parties) 323.66 25% 242.75 80.92 

Provision for Interest 406.91 0% 406.91 0.00 

Sub-total 2688.43 2118.05 570.38 

(b) Current Period: 

Suppliers-Current 2287.14 100% 0.00 2287.14 

Bills Discounting( Banks) 814.49 100% 0.00 814.49 

Advances from Brokers / Agents against 

Tea Stocks 4364.51 100% 0.00 4364.51 

Other accrued Liabilities 931.31 100% 0.00 931.31 

Sub-total 8397.45 0.00 8397.45 

Total Other Unsecured Creditors / Liabilities 

(a+b) 11085.88 2118.05 8967.83 

Total Unsecured Creditors / Liabilities 18712.07 2118.05 16594.02 

Total Secured and Unsecured Loans / 

Liabilities (B) 65910.49 28665.49 37245.00 

Total Liabilities of Fertilizer and Tea (A+B) 157566.39 81478.02 76088.37 

84 --

Secured Creditors against assets of Company : 

Name 

I Principal dues of Cash 

Credit, WCTL, TL, 

Debentures 

Total 

Principal 

Dues 


% of 

dues 

OTS % of Addl. 

Amount and OTS 

WC in Tea to 

Continue 

Annexure - IX 

WC 

already 

paid by 

DIL 

Rs Cr 

Balance OTS 

Amount to be 

paid by KFCL 

1 State Bank of India 102.42 15.14 40.42 39.46 40.42 

2 Central Bank of India 69.29 10.24 27.34 39.46 27.34 

3 State Bank of Travancore 24.56 3.63 9.69 39.46 9.69 

4 State Bank of Patiala 18.01 2.66 7.11 39.46 7.11 

5 State Bank of India (SBICI) 3.32 0.49 1.31 39.46 1.31 

6 ARCIL(PNB) 62.86 9.29 24.81 39.46 24.81 

7 ARCIL (UCO Bank) 33 4.88 13.02 39.46 13.02 

8 ARCIL (Bank of Baroda) 28.93 4.28 11.42 39.46 11.42 

9 ARCIL (IDBI & IDBI Bank) 67.22 9.93 26.53 39.46 26.53 

10 ARCIL (ICICI) 96.97 14.33 38.27 39.46 38.27 

11 Antariksh (ICICI) 7.5 1.11 2.96 39.46 2.96 

12 Harsh Credit(HDFC) 20.00 2.96 7.89 39.46 7.89 

13 WBIDC 3.66 0.54 1.44 39.46 1.44 

14 PICUP 13.49 1.99 5.32 39.46 5.32 

15 SICOM 16.69 2.47 6.59 39.46 6.59 

16 Partly Convertible 

Debentures(SBI Trustee) 

2.23 0.33 0.88 39.46 0.88 

Sub Total 570.15 84.25 225.00 39.46 0.00 225.00 

II Addl Working Capital: 

1 State Bank of India 7.68 1.13 7.68 100.00 7.68 0.00 

2 Central Bank of India 14.2 2.10 14.20 100.00 14.20 

3 State Bank of Travancore 5.86 0.87 5.86 100.00 5.86 0.00 

4 ARCIL(PNB) 4.63 0.68 4.63 100.00 0.80 3.83 

5 ARCIL (UCO Bank) 7.09 1.05 7.09 100.00 7.09 

6 ARCIL (Bank of Baroda) 7.09 1.05 7.09 100.00 7.09 

Sub Total 46.55 6.88 46.55 100.00 14.34 32.21 

OTS 616.70 91.13 271.55 14.34 257.21 

III Working Capital 

( To Continue For Tea) 

1 State Bank of India 42.95 6.35 42.95 

2 State Bank of India (SBICI) 5.68 0.84 5.68 

3 ARCIL(PNB) 11.37 1.68 11.37 

Sub Total 60.00 8.87 60.00 

Total Dues 676.70 100.00 331.55 

85 --


Contingent Liabilities as on 31.3.2010: 

1. Contingent Liabilities not provided for in respect of : 

Annexure X 

(Rs\lakh) 

Particulars 31.3.09 31.3.10 

1 Guarantees (excluding since released) given by 4225.27 4406.68 

the Company on behalf of bodies corporate 

2 Guarantees given by Banks on behalf of the 229.03 234.09 

Company 

3 Cumulative Dividend on Preference Shares 470.64 549.18 

4 Income/Agriculture Tax matters pending in 47.32 47.32 

appeal 

5 Sales Tax matters under appeal 14.29 14.29 

6 Excise matters relating to Fertiliser operations 86.60 86.60 

7 Claims for interest and other suppliers etc. 5442.13 5541.93 

contested/under negotiation pending finalisation 

of the matters 

TOTAL 10515.28 10880.09 

2 During the period from 9th August, 2000 to 16th September, 2001, Kanpur Electric 

Supply Co. Ltd (KESCO) levied a surcharge for maintaining independent feeder for the 

fertiliser plant of the Company and a claim of Rs 2463.22 lakh for the said period was 

made against the Company. Being aggrieved by the said claim, the Company filed a 

writ petition before the Honble Allahabad High Court in the month of February 2002 and 

the matter is sub- judice. The company has also sought waiver of the said claim in the 

rehabilitation scheme pending before BIFR. Pending final decision in this respect, no 

provision has been considered necessary. 

3. The Company had issued in November, 1996, Foreign Currency Convertible Bonds 

(FCCB) aggregating to Swiss Francs 50 million to foreign investors with a maturity 

period of seven years. 

The FCCB holders have exercised their put option and proceedings for the recovery of 

the outstanding amount of principal and interest along with additional interest, etc. 

(amount not ascertained) are pending before the Honble High Court at Calcutta. The 

amount payable to FCCB holders is covered under Rehabilitation Scheme and will be 

dealt with while giving effect to the scheme on necessary sanction from BIFR.Pending 

this, no further interest on such loan has been accrued. 

4 In terms of the Scheme of Arrangement (the Scheme) submitted before the Honble High 

Court at Calcutta, the Tea Undertaking of the Company comprising of the tea business 

and certain Investments, Loans and Advances, etc. were proposed to be transferred to 

and vested in Shubh Shanti Services Limited on a going concern basis with effect from 

1 st April, 2001. The Scheme was approved by the shareholders of the Company in the 

General Meeting held on 25th January, 2002 and is pending for the approval of the 

Honble High Court. In view of the Sanctioned Scheme pending before BIFR steps are 

being taken to withdraw the scheme. 

86 --


5.1 Sundry Creditors include : 

Rs 404.71 lakh (Previous Year Rs 280.70 lakh) outstanding in respect of Fixed Assets 

Original Cost Rs 555.16 lakh (Previous Year Rs 555.16 lakh) including interest thereon, 

purchased in terms of Hire Purchase Agreements. 

Rs 2342.14 lakh (Previous Year Rs 876.83 lakh) being advances received against the 

sale of tea. 

Rs 22.92 lakh (Previous Year Rs 1212.34 lakh) in respect of amounts advanced by 

group/associate companies on current account. 

6 (a) The CDR Cell vide its letter dated 29th May, 2008 has approved the proposal for 

settlement of loans and debentures from Banks/Financial Institutions/others, etc.. In 

terms of said CDR approval, entire Loans and Debentures from Banks/Financial 

Institutions/others which were repayable over a period of 12 years commencing from 

March, 2008 will be repaid as a part of the settlement on lump sum basis for Rs 

27155 lakh (of which Rs 1434 lakh towards additional working capital loan has been 

repaid) leaving a balance of Rs 6000 lakh, which will be continued as cash 

credit/working capital loan in the tea business of the Company. 

(b) Certain loans (included in the above settlement) aggregating Rs 3605.83 lakh are also 

to be restructured and settled in line with CDR approval. However, the respective 

lenders in this respect are yet to sanction the proposal. 

(c) 

The Company along with its group company ISG Traders Limited (ISG) has entered 

into an Investment Agreement with Jaypee Fertilizers & Industries Limited (Jaypee) 

and others to provide necessary financial and strategic support for rehabilitation of 

fertiliser business. In terms of the said agreement, SS-11 submitted to BIFR envisages 

de-merger of Fertiliser Undertaking on going concern basis to Kanpur Fertilizers & 

Cement Limited (KFCL), a company in which required funds will be provided by 

Jaypee Uttar Bharat Vikas Private Limited, a Joint Venture Company (JV Co.) 

promoted by Jaypee and ISG, for participating in the revival and rehabilitation of 

fertilizer business of the Company. 

87 --


List of Legal Cases Pending Before Various Courts as on 31.03.2011 

Annexure XI 

I. Winding up Petitions Filed by ICD holders , Unsecured Creditors and Fixed Deposit 

holders 

Sl. No. Case No. Name of the Parties Pending before Amount 

claimed / 

outstanding 

(Rs In lakh) 

1 81/2003 The Birla Cotton Spinning Calcutta High Court 2.93 

& Weaving Mills Ltd. 

2 82 / 2003 The Hindustan Times Calcutta High Court 21.77 

3 397/2003 North East Enterprise Ltd. Calcutta High Court 46.87 

4 . 423/2003 Paharpur Cooling Tower Calcutta High Court 5.83 

Ltd 

5 62/2004 Cavin Kare Pvt. Ltd. Calcutta High Court 11.66 

6 199/2004 The Paper Products Ltd. Calcutta High Court 10.99 

7 463/2004 Kherapati Vanijya Ltd. Calcutta High Court 12.44 

8 628/2004 SVM Impex & Finance Pvt. Calcutta High Court 14.91 

Ltd. 

9 IDBI Calcutta High Court 375.00 

10 346/2006 Aska Roadwaya Limited Calcutta High Court 8.55 

11 Aska Investments Limited Calcutta High Court 546.76 

12 Masterlook Tracon Pvt. Ltd. Calcutta High Court 32.51 

13 ERC India Limited Calcutta High Court 69.80 

14 411/2006 Prakash Ch Kanodia Calcutta High Court 59.83 

15 413/2006 Anand Kanodia Calcutta High Court 48.84 

16 80/2007 H R Polymer unit II Calcutta High Court 70.39 

17 237/2007 B & A Multiwall Packaging Calcutta High Court 2.00 

Ltd 

18 B & A Multiwall Packaging Calcutta High Court - 

Ltd 

19 340/06 Amit Sen Calcutta High court 2.45 

20 665/2005 Mohan Lal Kejriwal Calcutta High cOurt 0.38 

21 67/2003 Phosphate Chemicals Calcutta High Court 1300.00 

Export Association Inc 

22 101/2004 Dakshini Calcutta High Court 1.00 

23 100/2005 Prabudayal Budhia Calcutta High Court 1.54 

24 133/2005 Sucheta Ganguli Calcutta High Court 0.65 

25 134/2005 Kajal Ganguly Calcutta High Court 2.0 

26 401/2005 Samiran Das Gupta Calcutta High Court 0.67 

27 399/2005 Priti Dasgupta Calcutta High Court 0.64 

28 396/2006 Tripti Rani Gupta Calcutta High Court 0.18 

29 395/2006 Tripti Rani Gupta Calcutta High Court 0.12 

30 37/2006 Amit Ganguly Calcutta High Court 0.30 

31 305/2005 Mamta Agarwal Calcutta High Court 1.08 

32 570/2005 Tanushree Mukherjee Calcutta High Court 1.55 

33 572/2005 Chandrani Adhikari Calcutta High Court 0.23 

34 513/2005 Baidyanath Bhattacharya Calcutta High Court 15.40 

35 573/2005 Somshubra Adhikary Calcutta High Court 0.23 

36 567/2005 Namita Adhikary Calcutta High Court 0.67 

37 282/2005 Chaya Ray Calcutta High Court 0.67 

38 404/2005 Shib Kumar Das Calcutta High Court 10.67 

88 --


39 234/2005 Payel Chatterjee Calcutta High Court 1.16 

40 126/2006 Kalyan Kr. Chatterjee Calcutta High Court 8.05 

41 253/2005 Swati Basu Calcutta High Court 4.78 

42 24/2005 Abhrotosh Mazumdar Calcutta High Court 8.62 

42 25/2005 Renuka Chatterjee Calcutta High Court 0.88 

43 222/2006 Juthika Pathak Calcutta High Court 0.34 

44 216/2006 Kanika Pathak Calcutta High Court 0.34 

45 215/2006 Samarendranath Pathak Calcutta High Court 0.34 

46 257/2006 Madhumita Sahu Calcutta High Court 0.22 

47 244/2006 Ashok Debnath Calcutta High Court 0.23 

48 568/2005 Basudeb Adhikary Calcutta High Court 0.34 

49 233/2005 Deepanwita Dhali Calcutta High Court 0.83 

50 258/2006 Namita Bakshi) Calcutta High Court 2.85 

51 567/2005 Nilkanta Adhikari Calcutta High Court 0.15 

52 217/2006 Jayanto Chatterjee Calcutta High Court 0.21 

53 571/2005 Diganta Adhikari Calcutta High Court 0.23 

54 126/2006 Kalyan Kr. Chattopadhyay Calcutta High Court 8.06 

55 344/2006 Upendra Nath Pal Calcutta High Court 1.48 

56 363/2006 Dilip Basu Calcutta High Court 2.03 

57 355/2006 Arya Kumar Bose Calcutta High Court 0.90 

58 Sudha Basu Calcutta High Court 1.59 

59 321/2006 Kali Sadan Mukherjee Calcutta High Court 2.95 

60 325/2006 Jui Mitra Bose Calcutta High Court 1.22 

61 328/2006 Shyamal Kumar Bose Calcutta High Court 1.00 

62 314/2006 Subrata Chatterjee Calcutta High Court -- 

63 65/2007 GS Dheer Calcutta High Court 12.96 

64 256/2008 Shiv Sankar Das Calcutta High Court 2.25 

65 - Sukesh Chandra Giri Calcutta High Court 4.76 

66 201/2010 Niranjan Ghosh Calcutta High Court 0.53 

II. Criminal Cases filed u/s 138 of NI Act and 406 / 420 of IPC 

1 C 4829/2002 P.C. Kundu CMM, Calcutta 0.15 

2 2737/2003 G. Sasmal 5 th MM, Calcutta 0.30 

3 C 33735/2002 R. Manjunatha ACMM, Bangalore 0.15 

4 C 33734/2002 Y. Sushila Bai ACMM,Bangalore 0.30 

5 C 1020/2002 Sarita Nahata 17 TH MM Calcutta 0.27 

6 C 3965/2002 Jyotirmoy Biswas 3 RD MM Calcutta 0.15 

7 C/2617/2004 Sunil Kanti Saha 9th JM, Alipore 0.38 

8 C/106/2007 Subhra Ray & Others SOTM, Patna 0.02 

9 C/1015/2008 SC BOwry 9 th JM Alipore 0.57 

10 M/10875/2004 UC Boral 16 th MM, Calcutta 0.10 

III. Writ Petition filed by Fixed Deposit Holders and Others 

1 17116/2005 Benoy Krishna Dey Calcutta High Court -- 

2 3475 / 2010 Subrata Chakraborty Calcutta High court -- 

3 2606/ 1989 DILFertiliser Workers 

Union 

High Court at Allahabad 250.00 

IV. Cases U/S 10F of the Companies Act Filed by FD Holders 

1 A. C. O. No. 135 

of 2002, 

Bimal Kr. Dey & Ors Calcutta High Court -- 

89 --


A.P.O.T. No. 593 

of 2002 

2 A.C.O. No. 172 Arun Kumar Sarkar & Ors Calcutta High Court -- 

of 2002/ 

A.P.O.T. No. 715 

of 2002 

V. Suits and Arbitration Proceeding Filed by Fixed Deposit Holders and Unsecured Creditors 

1 128/2005 Devendra Kumar Mishra City Civil Court, 0.20 

2 322/2006 Somnath Sarkar City Civil Court, Cal. 0.29 

3 48/2006 Binapani Sahu Civil Court, Rourkela 1.33 

4 24/2005 Subrata Basu Civil Judge, Alipore 6.00 

5 760/2009 Binoy Kumar Mondal City Civil Court, Cal. 0.30 

6 OMP No. 212 of Indian Oil Corporation Delhi High Court 5668.59 

2002 

7 Indian Oil Corporation ICA 5668.59 

8 328 / 1983 Punjab & Sind Bank Ltd. DRT Calcutta 17.00 

9 1421 / 2008 American Express Bank DRT Calcutta 68.28 

10 OA -22/2004 State Bank of Patiala DRT II, New Delhi 2259.00 

11 283 / 2005 Asia Today Ltd. Calcutta High Court 76.46 

12 24/2005 Subrata Basu Civil Judge, Alipore 6.00 

13 03/2005 Dept. of Post & Telegraph City Civil Court Calcutta 7.00 

14 588/2005 Zee Teleflims Ltd. City Civil Court Calcutta 8.94 

15 665 / 2005 Credit Suisse First Boston Calcutta High court 20417.16 

and others 

16 283 / 2005 Asia Today Ltd. Calcutta High Court 76.46 

17 370 Cases Filed by Fixed District Consumer 400.00 aprrox 

Deposit Holders 

Redressal Forums 

18 TS 2044/2007 Bishakha Mukherjee 4 th Civil Judge, Alipore 0.06 

19 VRS Employees 

Association ( 41 Individual 

Employees) 

DLC Delhi 172.00 

20 21/2010 H.R.Polymers Under Micro Small and 

46 .00 

Medium Enterprises 

Development Act, 2006 

21 1071 / 2007 SIS INDIA Civil Judge Sr. Division 1.50 

90 --


List of Unsecured Creditors 

Annexure XII 

Summary as on 31.3.2010 

(Rs\lakh) 

A Fertiliser Divn Total Dues Non Current Current Proposed 

Creditors Creditors Settlement % 

I. Unsecured Trade Creditors : of Non Current 

KESCO 8,113.12 8,113.12 0 25 

Indian Oil Corporation 5,668.59 5,668.59 0 25 

Others 3,041.19 3,041.19 0 25 

Sub Total 16,822.91 16,822.91 0 25 

II. Unsecured Deposits and Advances: 

Security Deposits Distributors 421.59 421.59 0 25 

Security Deposits Buffers 72.22 72.22 0 25 

Advances from Customers 94.49 94.49 0 25 

Sub Total 588.29 588.29 0 25 

TOTAL Fertilizer Divn (A) 17411.20 17,411.20 0 25 

B Tea Division 

Unsecured Inter Corporate Deposits 3010.24 3010.24 25 

25 Numbers Optionally Convertible 

25.00 25.00 25 

Debenture of Rs 100000/- each in the name of 

Mr. Nikhil Lohia 

Unsecured Trade Creditors and Liability 

Sundry Creditors 2066.67 0.00 2066.67 

Sundry Creditors for Services and Expenses 188.72 0.00 188.72 

Purchase and Services Liability 12.80 0.00 12.80 

Non Current Purchase Liability (Kolkata ) 115.74 115.74 0.00 25 

Purchase Liability ( Tea Garden ) 18.96 0.00 18.96 

Non Current Creditors for Supplies 1462.32 1462.32 0.00 25 

Non Current Purchase Liability 337.72 337.72 0.00 25 

Sub Total 4202.93 1915.79 2287.15 

Unsecured Advances from Customers 

and Security Deposits 

Advance from Customers 2338.44 0.00 2338.44 

Security Deposits from Tea Agents 763.11 0.00 763.11 

Sub Total 3101.55 0.00 3101.55 

Others Unsecured Dues 

Bills Payable 1083.90 323.66 760.25 25 

L & T Finance Ltd 42.07 42.07 0.00 25 

Sub Total 1125.97 365.73 760.25 

TOTAL TEA Divn (B) 11465.70 2281.51 6148.95 

TOTAL COMPANY (A+B) 28876.89 19692.71 6148.95 

57753.80 

91 --


SUNDRY TRADE CREDITORS AS ON 31.03.2010 ( Fertiliser) Annexure XII ( 

Contd) 

Sl. NAME & ADDRESS OF PARTY (Rs\lakh) 

1 KANPUR ELECTRICITY SUPPLY COMPANY IN 208001 8113.12 

2 INDIAN OIL CORPORATION LTD. IN 110016 Gomti Nagar, LUCKNOW-226010 UP 4919.11 

3 PHOSPHATE CHEMICALS EXPORT ASSN.INC US 1091.32 

4 INDIAN OIL CORPORATION LIMITED IN 749.48 

5 BHARAT COKING COAL LTD. IN 700001 129.54 

6 INTERNATIONAL POSTASH COMPANY (UK) IN FINCHLEY 119.18 

7 MAXWORTH INDUSTRIAL SERVICES LTD IN 700016 92.11 

8 NUOVO PIGNONE S.p.A. IT 50100 82.41 

9 ADANI PORT LIMITED IN 370421 MUNDRA 64.01 

10 UOP INTER AMERICANA INC. 56.25 

11 T.T.INVESTMENTS (P) LTD. IN 208011 KIDWAI NAGAR 54.32 

12 SUD-CHEMIE INDIA LIMITED (SCIL) IN 110019 90 NEHRU PLACE 52.26 

13 H R POLYMERS IN 46.19 

14 EASTERN COALFIELDS LIMITED 45.10 

15 RENK AKTIENGESELL SCHAFT DE D-48409 RHEINE, GERMANY 35.29 

16 SHREE JEEN CARGO AND MOVERS IN KANPUR 32.86 

17 PhosChem USA US 26.06 

18 SHRI KASHI TRADERS IN 208022 ESTATE, DADA NAGAR, 25.34 

19 TOYO ENGINEERING INDIA LTD. IN WEST 23.88 

20 R.L.RASAYAN UDYOG IN 208001 TOPI BAZAR 20.51 

21 NORTHERN ALKALIES PVT. LTD. IN 208012 122/235 SAROJANI NAGAR 18.71 

22 KATARIA CARRIERS 17.61 

23 V D SWAMI AND CO.LTD. IN 324007 CENTRE, kota 17.14 

24 Modern Laminators Ltd. IN GORAKHPUR-273015 16.35 

25 SHRI BALAJI CARRIERS COMPANY IN KANPUR 15.70 

26 Supreme Polymers Pvt. Ltd. IN Jothwara, JAIPUR-302012 15.63 

27 NIROZ Insulations Pvt. LTD IN 234007 19 Jhawar Road 15.52 

28 ICI INDIA LIMITED IN 5TH FLOOR, DLF QUTAB ENCLAVE 15.16 

29 QUANTUM ENGG PRIVATE LIMITED IN 208019 KANPUR 14.07 

30 SAP INDIA PVT.LTD. IN 13.99 

31 HOERBIGER INDIA LIMITED IN 412014 NAGAR ROAD 13.57 

32 IOC LTD (MKTG DIV) A/C DIL IN KAPOORTHLA COMPLEX, ALIGANJ 13.47 

33 SHRI NAV DURGA COAL CO. IN 208001 BIRHANA ROAD KANPUR 13.16 

34 S N SUNDERSON & CO. IN POST BOX NO 5713 13.10 

35 FRONTLINE TRANSPORT LIMITED 13.00 

36 ONDEO NALCO INDIA LIMITED IN kolkata-700016 12.32 

37 FA & CAO NCR ALLAHABAD IN KANPUR 10.37 

38 RAJ KUMAR MISHRA IN 226001 10.35 

39 RANK AKTIENGESELLSCHAFT DE 10.16 

40 VARIAN ASSOCIATES INC 10.10 

41 Simen-Tech IN Kota-324005 9.79 

42 AGARWAL & ASSOCIATES (COAL SALE) IN 211007 ALLAHABAD 9.74 

43 NATIONAL INSURANCE CO LTD - CAL IN 8, N S ROAD 9.57 

44 UNITECH MACHINES LIMITED IN 110030 LADO SARAI 9.50 

45 M/S RALLIS INDIA LIMITED IN BARGARH OR 8.17 

92 --


46 ION EXCHANGE (INDIA) LTD. IN 110028 NARAINA LOCAL SHOPPING CENTRE 7.78 

47 BOHLER HOCHDRUCKTECHNIK GMBH AT 8605 7.63 

48 AMAN ACHINT CARRIERS IN CANTT 7.49 

49 SANCHEM ENGINEERS PVT. LTD. IN 208001 7.44 

50 IGP ENGINEERS PRIVATE LIMITED IN 600041 THIRUVANMIYUR CHENNAI 7.35 

51 MANISH COMPANY PVT. LTD., IN 700007 7.34 

52 SUNAG CORPORATION (EUROPE) LTD GB HA8 7DD 29-45 HIGH STREET, EDGWARE, 7.31 

53 A.V.BUILDERS IN NAVEEN NAGAR 7.25 

54 AMMONIA CASALE SA 6.03 

55 R.TANDON ELECTRICALS IN 208001 5.78 

56 M M SHOPNA CONSTRUCTION COMPANY IN 324007 557 Main Road, Chhawani, KOTA-7 5.74 

57 VIRENDRA SINGH & CO IN AGRA 5.71 

58 NALCO CHEMICALS INDIA LTD IN 110048 5.55 

59 STERLING MANUFACTURES EXPORTERS INC US NJO7054 USA 5.50 

60 GE INDIA INDUSTRIAL PVT. LTD IN 560001 VAYUDHOOTH CHAMBER BANGALORE 5.46 

61 KRISHAN KUMAR DISTRIBUTORS PVT. IN 208012 KANPUR 5.45 

62 PRASAD & COMPANY IN 211002 ALLAHABAD 5.12 

63 USHA HYDRO DYNAMICS LTD. 4.92 

64 S.B.REFRIGERATION CO. IN 208001 4.80 

65 LARSEN & TOUBRO LIMITED IN 400072 POWAI WORKS, SAKI VIHAR ROAD 4.70 

66 EAGLE POONAWALLA INDUSTRY LTD. IN 110019 4.66 

67 TREATS IN 700023 KIDDERPORE, CALCUTTA 4.59 

68 ENGINEERING CONSTRUCTION CO. IN 208024 4.57 

69 MAHESHWARI HANDLING AGENCY PVT LTD IN 370201 KUTCH 4.54 

70 Shree Conveyor Systems Pvt. Ltd. IN 110058 New Delhi 4.53 

71 STEEL AUTHORITY OF INDIA LTD IN 208001 4.43 

72 BEARDSELL LTD IN 19 KASTURBA GANDHI MARG 4.29 

73 SRI RAM SINGH IN KANPUR 4.28 

74 BOTHRA SHIPPING SERVICES IN 4.26 

75 MANISH BEARING ENTERPRISES IN 110006 G.B. ROAD, 4.10 

76 JUKI UNION SPECIAL (U.K.) LTD. GB LE2 5LQ INDUSTRIAL ESTATE, OADBY 4.03 

77 ABB LENZOHM SERVICE LIMITED, 3.87 

78 SANDVIK CHOMUTOV PRECISION TUB 3.87 

79 BAREILLY AGRAWAL FORWARDING AGENCY IN KANPUR 3.58 

80 MITSUBISHI CORPORATION 3.53 

81 MATRA CONSTRUCTIONS IN 110017 3.50 

82 M/S Shree Jeen Cargo & Movers IN 208001 KANPUR 3.41 

83 TIL LIMITED IN 201010 SAHIBABAD INDUSTRIAL AREA 3.38 

84 C P SYSTEMS PRIVATE LIMITED 3.32 

85 S.R.ENGINEERING IN 390016 GORWA, 3.23 

86 KANORIA CHEMICALS & INDUSTRIES LTD IN 231217 3.22 

87 JAI MAA ENGINEERING COMPANY IN JALANDHAR 3.21 

88 PRAVER ELECTRONICS IN 110020 3.20 

89 M M AQUA TECHNOLOGIES LTD. IN 110065 NEW DELHI 3.19 

90 COOL CARE INDIA IN KANPUR 3.17 

91 SACHAN GAS DISTRIBUTOR IN 3.13 

92 SIVAM ENGG. WORKS IN 3.09 

94 A B K D ENTERPRISES IN 208001 KANPUR 3.08 

95 Manish Bearing Enterprises IN KANPUR - 208 001 2.89 

93 --


96 POWER MAX INDIA PVT LTD 2.89 

97 BHATIA BROTHERS IN 2.87 

98 AJAY INDUSTRIAL CORPN. IN 208001 LATOUCHE ROAD 2.83 

99 AMMONIA SUPPLY COMPANY IN NEW DELHI-110005 2.82 

100 USHA ENTERPRISES IN 208012 2.81 

101 LIBERTY PHOSPHATES LIMITED IN 313003 2.75 

102 METAL TUBE INDUSTRIES IN 400004 2.64 

103 MAA DURGA TRANSPORT CO 2.60 

104 CRANE HIRING CO. IN 390005 2.59 

105 ENVIROCHEM TEST LABORATORIES IN 226024 2.57 

106 DEEPAK FERTILISERS AND PETROCHEMICA 2.54 

107 A.K.ENTERPRISE IN PANKI 2.51 

108 NEW SAGAR INDUSTRIES IN 208022 UDYOG NAGAR 2.48 

109 SOCIETY PRINTERS & STATIONERS IN 208001 2.45 

110 VIJAY SHANKAR VINAY KUMAR IN 208001 2.44 

111 TWENTYFIRST CENTURY PRODUCTS IN 208001 2.41 

112 TECH-KNOW ENGINEERING WORKS IN 208005 2.36 

113 ANUPAM ENTERPRISES 2.34 

114 BHARAT FABRICATORS & ERECTORS IN 208019 RAWATPUR,KANPUR 2.29 

115 M.P.ELECTRICALS ENTERPRISES IN 208020 (PANKI POWER HOUSE) 2.22 

116 TSUKISHIMA KIKAI CO., LTD. 2.17 

117 INOX AIR PRODUCTS LTD IN 400709 (Behind Krishna Steel Co.), NAVI MU 2.15 

118 SIMEN-TECH (INDIA) IN 324005 2.08 

119 PAVITRA FABRICATOR PVT. LTD. IN 400056 VILE PARLE (WEST) 2.00 

120 AMAR CONSTRUCTION IN PANKI, KANPUR 1.99 

121 B . K. ENGINEERING IN Kakadev 1.97 

122 CONSULTANCY & TECHNICAL SERVICES IN 700026 ROAD 1.91 

123 P.D.SCIENTIFIC INDUSTRIES IN 208012 (BRAMA NAGAR CHAUREHA) 1.90 

124 M.H.DETRICK INDIA LTD IN 700001 2 & 3,CLIVE ROW, 1.90 

125 LOKENATH & COMPANY ( MAINTENANCE) IN 110011 1.88 

126 BAJRANG ELECTRICALS IN KANPUR UP 1.88 

127 PLIBRICO G.M.B.H. DE D-61191 1.84 

128 MOHAN & SONS IN 208020 PANKI 1.83 

129 VOLTAS LTD. IN DADRA-DEMNI ROAD 1.82 

130 SINGH GENERAL WORKS IN DISTT DHANBAD SINDHRI (JHARKHUND) 1.79 

131 TURBOMACHINERY WORKS (P) LTD. IN 500050 1.72 

132 KISHORE BANDHU PRIVATE LIMITED IN KANPUR -208001 1.72 

133 INDUSTRIAL ENGINEERING IN 208025 NEAR KESA SUBSTATION 1.69 

134 INDUSTRIAL ELECTRIC WORKS IN SHASTRI NAGAR 1.67 

135 AJAY AIR PRODUCTS IN 110020 AREA-1 1.65 

136 ACCURATE ENGINEERING IN 208020 PANKI. 1.65 

137 Techno planners Services IN KANPUR-208001 1.64 

138 LAL ENGINEERS & FABRICATORS IN 208005 KANPUR 1.62 

139 JAWANDAMAL DHANNAMAL IN 208003 1.62 

140 TIRUPATI ENTERPRISES IN LUCKNOW BH 1.61 

141 ESS KAY ELECTRICALS IN 226018 LUKNOW 1.58 

142 ORIENT CHEMICAL TRADERS IN 208001 PHOOLBAGH, THE MALL, 1.58 

143 MOHAN ENTERPRISES IN KARNAL, Haryana HR 1.55 

144 GALVIN INTERNATIONAL IN 208001 IFTIKHARABAD, 1.55 

94 --


145 BERGER PAINTS INDIA LTD. IN KANPUR 1.55 

146 BDK PROCESS CONTROL PVT. LTD. IN 580030 1.55 

147 SWAROOP CARRIERS COMPANY IN TRANSPORT NAGAR, 1.53 

148 CHAUDHRY HAMMER WORKS PVT. LTD. IN 201001 FLYOVER, 1.52 

149 Sniper Leathercraft Pvt. Ltd. IN AGRA -282002 1.51 

150 KANPUR NAGAR NIGAM IN 1.48 

151 CHINO-LAXSONS (INDIA) LIMITED IN 208001 THE MALL 1.47 

152 ASSOCIATED ENERGY SERVICES (P) IN 500032 lic bldg., r.c. puram., 1.46 

153 OM TRIPAL INDUSTRIES IN 208001 1.44 

154 RAM INDUSTRIES AND MILL STORES IN LATOUCHE ROAD 1.43 

155 INDIA METAL PRODUCT IN 208005 1.41 

156 NIRMA STEEL CENTRE IN 400004 1ST FLOOR,OFFICE No. 15, 1.41 

157 NAVBHARAT CATERERS IN 208005 1.40 

158 THE TATA IRON AND STEEL COMPANY IN 208001 MAHATMA GANDHI ROAD 1.39 

159 RISHABH ENTERPRISES IN 208001 1.37 

160 SAHA ROADLINES IN BURDWAN WB 1.37 

161 M/s Puma Engines (P) Ltd. IN Kanpur - 208 019 1.36 

162 BAKSHI BROTHERS IN 208001 1.36 

163 FLOW WELL CORPORATION IN 208001 79/146, LATOUCHE ROAD 1.33 

164 RADHE SHYAM SHARMA IN KHARAGPUR 1.33 

165 COMPRESSED AIR ENGINEERS IN 110008 (BEHIND SATYAM CINEMA), NEW DELHI 1.31 

166 GOODRICH GASKET PRIVATE LIMITED IN 600095 Chennai 1.31 

167 V K TRACK LINKERS IN KANPUR 1.31 

168 ALMONARD LIMITED IN 208001 1.30 

169 PNEUMATIC SALES CORPORATION(2) IN 110048 KAILASH COLONY EXTENSION 1.28 

170 KANPUR METAL PRODUCTS IN 208022 1.26 

171 CONMAX ENGINEERING PVT. LIMITED IN 600072 THIRUVALLUVR NAGAR,PATTABIRAM 1.25 

172 CHATURVEDI & COMPANY IN 110019 1.24 

173 SATNAM ENGINEERS & FABRICATORS IN DELHI - 110092 1.23 

174 MARS DETECTIVE AGENCY PRIVATE LTD IN 1.23 

175 MACHINE TOOLS(INDIA) LIMITED IN 110049 Kolkata- 700016 1.21 

176 MRS DAVENDERJIT KAUR IN Chandigarh CD 1.19 

177 AGARWAL GASES IN KANPUR UP 1.19 

178 DELUXE ENGINEERING SERVICES IN 400709 NAVI MUMBAI 1.19 

179 SUNBEAM ENGINEERING CORPORATION IN 110020 PHASE-I 1.18 

180 M & M SYSTEMS IN 208012 1.17 

181 BHARAT ERECTORS IN KANPUR UP 1.17 

182 SHIV ENTERPRISES IN KANPUR 1.17 

183 CHITRA ENGINEERING COMPANY IN 208001 1.16 

184 CHOUBAY & COMPANY IN 208001 1.14 

185 PLASTIGLASS INDUSTRIES IN 208025 1.14 

186 SUPATH ENGG.SERVICES (P) LTD. IN KANPUR - 208001 1.13 

187 NATIONAL FERTILIZERS LIMITED IN 1.12 

188 NATIONAL ORGANIC CHEMICAL IND. 1.11 

189 S M INSTRUMENTATION IN 208005 RANJIT NAGAR 1.11 

190 CARRY FOOTWEAR IN 208012 1.08 

191 KAILASH TRADING CORPN KANPUR IN 208001 THE MALL, 1.08 

192 VISHAL TENT HOUSE IN 1.06 

193 A.K.INDUSTRIES IN 208001 BECONGANJ, 1.06 

95 --


194 S & G ENGINEERS PVT.LTD IN FARIDABAD 1.05 

195 CHLORINATION SYSTEMS IN 400050 OPP.RAILWAY STATION, BANDRA(WEST) 1.05 

196 SHREE NURSINGSAHAY MUDUNGOPAL IN 208001 1.04 

197 NEHA CONTRACTOR IN 1.04 

198 SMART TECHNOLOGIES IN 110019 1.02 

199 BELLS CONTROLS LTD IN 110001 16,KASTURBA GANDHI MARG, 1.02 

200 KALYAN NAMKIN 1.01 

201 IFFCO - PHULPUR IN Phulpu, Allahabad 1.00 

202 A.K.ENTERPRISES AWAS-VIKAS IN AWAS VIKAS COLONY -3 0.47 

203 OTHERS less than Rs 100000/- each 310.73 

Total 16822.91 

96 --


SECURITY DEPOSIT - DISTRIBUTORS (GL 3620) AS ON 31.03.2010 ( Fertiliser) AnnexureXII ( 

Contd) 

SL DISTRIBUTORS (Rs\lakh) 

1 SHRI KASHI TRADERS IN 12.75 

2 G K TRADERS IN 5.00 

3 ASTHA COAL TRADING (P) LTD IN 4.50 

4 B P & COMPANY IN 208005 KANPUR UP 2.25 

5 PRAKASH CHAND SUDHIR KUMAR IN BHARTHANA UP 2.25 

6 KISAN SEWA KENDRA IN 851101 BEGUSARAI BH 1.50 

7 RAMNIWAS RADHEYSHYAM IN NIGHASAN UP 1.25 

8 AGARWAL SERVICE STATION IN SANDILA UP 1.25 

9 JAHANSINGH MAKRANDSINGH IN KAIMGANJ UP 1.25 

10 SINGHAL FERTI-CHEM PVT. LTD. IN BARAUT, Distt: Bhagpat UP 1.05 

11 BISHAMBHAR LAL ARORA IN KANPUR 1.00 

12 MOHAN ENTERPRISES IN KARNAL (Haryana) HR 1.00 

13 GAGAN KRISHI FARM IN MANSA (Punjab) PB 1.00 

14 BARNALA TRADERS IN BARNALA (Punjab) PB 1.00 

15 GOPAL FERTILISERS IN KARNAL, Haryana HR 1.00 

16 SUBHASH PAWAN CO. IN SAFIDON, Distt: Jind (Haryana) HR 1.00 

17 HIMALAYA TRADING CO. IN BHATINDA (Punjab) PB 1.00 

18 PANKAR ENTERPRISES IN PANIPAT HR 1.00 

19 VIDYA FERTILISERS CORPORATION IN PIPLI, Distt: Kurukshetra-132131 HR 1.00 

20 RADHEY PETROLEUM CO. IN GOLA GOKARNATH UP 1.00 

21 GUPTA MILL STORE IN RAEBAREILLY UP 1.00 

22 R K B K LIMITED IN POWAYAN UP 1.00 

23 R K B K LIMITED IN GONDA UP 1.00 

24 R K B K LIMITED IN SULTANPUR UP 1.00 

25 GHANSHYAM DAS IN FAIZABAD UP 1.00 

26 R K B K LIMITED IN LUCKNOW UP 1.00 

27 JAIN ENTERPRISES IN SITAPUR UP 1.00 

28 SRIKUBERJI MKTG CO LKO PVT LYD IN MAHMUDABAD UP 1.00 

29 CHABBRA KHAD BHANDAR IN GONDA UP 1.00 

30 JHUNJHUNWALA & BROS IN RUDAULI UP 1.00 

31 AGARWAL TRADERS IN HAIDERGARH, DISTT. BARABANKI UP 1.00 

32 MATA PRASAD BHURA MAL & SONS IN DISTT. BARABANKI UP 1.00 

33 NEW FERTILISER TRADING STORE IN DISTT. BARABANKI UP 1.00 

34 RADHEY SHYAM PAWAN KUMAR IN DISTT. BARABANKI UP 1.00 

35 SANJU AGENCIES IN DISTT. BARABANKI UP 1.00 

36 SAURABH INDUSTRIES IN RUDAULI, DISTT. BARABANKI UP 1.00 

37 ANIL KHAD BHANDAR IN CIRCULAR ROAD, HARDOI, DISTT HARDOI UP 1.00 

38 GUPTA & CO. IN DISTT. HARDOI UP 1.00 

39 NEW GUPTA KHAD BHANDAR IN DISTT. HARDOI UP 1.00 

40 RADHEY SHYAM TRADING CO. IN SADAR, HARDOI, DISTT. HARDOI UP 1.00 

41 SHANTI ENTERPRISES IN SANDILA, DISTT. HARDOI UP 1.00 

42 SUNIL KUMAR KAMLESH CHAND IN SAHABAD, DISTT. HARDOI UP 1.00 

43 MOSA RAM SHIV RAM DAS IN LAKHIMPUR KHERI UP 1.00 

97 --


44 VERMA TRADING CO. IN DISTT. LAKHIMPUR KHERI UP 1.00 

45 LALTA PRASAD VAISH & SONS IN LUCKNOW UP 1.00 

46 MANOJ TRADERS IN DISTT. LUCKNOW UP 1.00 

47 KRISHNA ENTERPRISES IN RAE BAREILLY, DISTT. RAE BARELI UP 1.00 

48 SHIV KUMAR MITTAL IN JAIS, DISTT. RAE BARELI UP 1.00 

49 SHIVA TRADERS IN LALGANJ, DISTT. RAE BARELI UP 1.00 

50 DARUKA FERTILISER IN SITAPUR, DISTT. SITAPUR UP 1.00 

51 MURARKA BROTHERS IN 261001 SITAPUR UP 1.00 

52 MOSA RAM BHAGWAN DAS IN DISTT. SITAPUR UP 1.00 

53 ASHOK BROTHERS IN SULTANPUR, DISTT. SULTANPUR UP 1.00 

54 NARAIN TRADERS IN DISTT. SULTANPUR UP 1.00 

55 SABHAMANI MISHRA IN DISTT. SULTANPUR UP 1.00 

56 PRADEEP FERTILISER IN DISTT. HARDOI UP 1.00 

57 PANT NAGAR SEED STORE IN DISTT. LAKHIMPUR KHERI UP 1.00 

58 PRAKASH MARKETING AGENCY IN LAKHIMPUR KHERI UP 1.00 

59 GAYADEEN DURGA PRASAD IN DISTT. AMBEDKAR NAGAR UP 1.00 

60 JAGDISH BROTHERS IN DISTT. AMBEDKAR NAGAR UP 1.00 

61 JAISWAL URVARAK BHANDAR IN DISTT. AMBEDKAR NAGAR UP 1.00 

62 AMBAR AGENCIES IN DEOKHALI ROAD, LALBAGH, FAIZABAD UP 1.00 

63 BHOLA NATH SALIK RAM IN 224001 FAIZABAD UP 1.00 

64 JAISWAL URVARAK BHANDAR IN DISTT. FAIZABAD UP 1.00 

65 KISHORE AGENCy IN DISTT. FAIZABAD UP 1.00 

66 ATUL KRISHI UDYOG IN 271801 DISTT. BAHRAICH UP 1.00 

67 KISSAN AGENCIES IN DISTT. AMBEDKARNAGAR UP 1.00 

68 RASHTRIYA URVARAK BHANDAR IN DISTT. AMBEDKAR NAGAR UP 1.00 

69 VIKRAMJEET VERMA IN TEHSIL ALAPUR, DISTT. AMBEDKARNAGAR UP 1.00 

70 SANWAL PRASAD & SONS IN 271871 DISTT. BAHRAICH UP 1.00 

71 HAMIRVASIA BROS IN 271201 DISTT. BALRAMPUR UP 1.00 

72 KRISHI VIKAS IN 271201 DISTT. BALRAMPUR UP 1.00 

73 AGARWAL FERTILIZERS IN 271002 DISTT. GONDA UP 1.00 

74 BHARAT BEEJ BHANDAR IN (NEAR NAVEEN GALLA MANDI) GONDA UP 1.00 

75 BHARATI TRADERS IN DISTT. GONDA UP 1.00 

76 MOOL CHAND SHUSHIL KUMAR IN 271002 DISTT. GONDA UP 1.00 

77 NAWABGANJ SEEDS & FERTILIZER CO. IN 271304 NAWABGANJ. GONDA UP 1.00 

78 DWARIKA PRASAD MATHURA PRASAD IN HARDOI UP 1.00 

79 GARIMA ENTERPRISES IN DISTT. HARDOI UP 1.00 

80 RAM CHANDRA & CO. IN DISTT. SRAWASTI UP 1.00 

81 GHUREY LAL MAHESH CHANDRA VARSHNEYA IN Jeoni Mandi, AGRA-282004 UP 1.00 

82 S R FERTILIZERS IN Jeoni Mandi, AGRA-282004 UP 1.00 

83 S. L. AGARWAL FERTILIZERS & CHEMICA IN Jeoni Mandi, AGRA-282004 UP 1.00 

84 BHANSALI TRADERS IN ALIGARH UP 1.00 

85 INDIAN AGRICULTURAL CORPORATION IN ALIGARH-202001 UP 1.00 

86 PADAM KUMAR VINOD KUMAR IN CHHARRA-202130, Distt: Aligarh UP 1.00 

87 IGLAS KRISHI VIKAS KENDRA IN IGLAS, Distt: Aligarh UP 1.00 

88 RAM AVTAR MUKUL KUMAR IN KHAIR, Distt: Aligarh UP 1.00 

89 KHANSELWAL DISTRIBUTORS PVT. LTD. IN GANAGPUR, Distt: Bareilly UP 1.00 

90 G.H. & COMPANY IN BABRALA, Distt: Badaun UP 1.00 

91 GOEL KHAD BHANDAR IN BADAUN UP 1.00 

92 JAI PRAKASH GUPTA IN GANJ DUDWARA, Distt: Etah UP 1.00 

98 --


93 S. P. AGENCIES IN SHIKOHABADDistt: Ferozabad UP 1.00 

94 SANTOSHI LAL ASHOK KUMAR IN SIRSAGANJ, Distt: Ferozabad UP 1.00 

95 AGARWAL AGENCIES IN BULANDSHAHAR UP 1.00 

96 GOPIMAL & COMPANY IN FATEHGANJ, DISTT: BULANDSHAHAR-2030 UP 1.00 

97 CHUNNI LAL RAJENDRA KUMAR IN SIKANDRABAD-203205, Distt:Bulandsha UP 1.00 

98 ETAH FERTILIZERS IN ETAH-207001 UP 1.00 

99 SURAJ PRASAD AMAR NATH IN KASGANJ-207123, Distt: Etah UP 1.00 

100 DAYA SHANKAR GUPTA & SONS IN SHIKOHABAD-205135 Distt: Ferozabad UP 1.00 

101 VIKAS TRADING COMPANY IN GARH MUKTESHWAR, Distt: Gaziabad UP 1.00 

102 GHUREY LAL MAHESH CHANDRA VARSHNEYA IN SADABAD, Distt: Hathras UP 1.00 

103 GHUREY LAL MAHESH CHANDRA VARSHNEYA IN MATHURA=281001 UP 1.00 

104 AMIT BEEJ BHANDAR IN MEERUT UP 1.00 

105 MADAN & COMPANY IN MEERUT-250002 UP 1.00 

106 OM PRAKASH VISHNU KUMAR IN NARAULI, Distt: Moradabad UP 1.00 

107 PILIBHIT KHAD NIGAM IN PILIBHIT-262001 UP 1.00 

108 SHANKAR KHAD BHANDAR IN PILIBHIT-262001 UP 1.00 

109 NATIONAL FERTILIZERS IN RAMPUR-244901 UP 1.00 

110 BULAND AGRO CHEM PVT. LTD. IN BULANDSHAHAR-203001 UP 1.00 

111 MAHESH CHAND MUKESH CHAND IN SHAHJAHANPUR UP 1.00 

112 SINGH BROTHERS IN POWAYAN, Distt: Shahjahanpur UP 1.00 

113 PARWATI SHANKAR NANDI IN BERHAMPUR WB 1.00 

114 N.C. DAS IN NADIA WB 1.00 

115 MD FAROJ ALI SHAIKH IN KRISHNANAGAR, Distt: Nadia WB 1.00 

116 UTTAMENDU SARKAR IN NADIA WB 1.00 

117 S.R. KUNDU & BROS. IN NADIA WB 1.00 

118 ASHOK SALES AGENCY IN NADIA WB 1.00 

119 BARASAT KRISHI BIPANI IN BARASAT, Distt: 24 Parganas(N), Kol WB 1.00 

120 MA LAXMI KRISHI BHANDER IN HABRA BAZAR, Distt: 24 Parganas(N) WB 1.00 

121 B. K. ROY IN 24 PARGANAS(N) WB 1.00 

122 ALOK KUMAR SAHA & BROS. IN BONGAON, Distt; 24 Parganas(N)-7433 WB 1.00 

123 ASHOK KUMAR NAG IN BURDWAN-713101 WB 1.00 

124 Sk. LIAKAT ALI IN BURDWAN WB 1.00 

125 B, MANDAL, S. MANDAL IN HATUDEWAN, Distt: Burwan WB 1.00 

126 S. SIKDAR & CO. IN KATWA, Distt: Burdwan WB 1.00 

127 KRISHI BIPANI IN SEAKHALA, Distt: Hooghly WB 1.00 

128 ADHIKARY MANDAL & CO. IN CHAMPANDANGA, Distt: Hooghly WB 1.00 

129 S. P. GANGULY IN KAMARPUKUR, Distt: Hooghly WB 1.00 

130 SARKAR FERTILIZER IN PANDUA, Distt: Hooghly WB 1.00 

131 BALARAM DEY & OTHERS IN ARAMBAGH, Distt: Hooghly WB 1.00 

132 B. MUKHERJEE & CO. IN BERHAMPUR, Distt: Murshidabad WB 1.00 

133 PADAM CHAND IN SAGARDIGHI, Distt: Murshidabad-7422 WB 1.00 

134 RANJIT KUMAR DUTTA IN BELDANGA, Distt: Murshidabad WB 1.00 

135 GOURI SHANKAR MONDAL IN SUKHI, Distt: Murshidabad-742226 WB 1.00 

136 TRIPATI ENTERPRISES IN COSSIMBAZAR, Distt: Murshidabad WB 1.00 

137 BISWA RANJAN DUTTA IN RAMPURHAT, Distt: Birbhum-731224 WB 1.00 

138 MOHATA STORES IN DINHATA, Distt: Cooch Bihar-736135 WB 1.00 

139 MANDAL TRADERS IN MACHANTOLA, Distt: Bankura WB 1.00 

140 PATRA TRADING IN RANGAMATI, Distt: Midnapur(West)-72 WB 1.00 

141 RANJIT KUMAR DANDAPAT IN BURAPAT, Distt: Midnapur(West) WB 1.00 

99 --


142 NANDLAL GHOSH IN GOALTORE, Distt: Midnapur(West) WB 1.00 

143 KUNDU & SONS IN GHATAL, Distt: Midnapur(West) WB 1.00 

144 TAPAS TRADING CO. IN GHATAL. Distt: Midnapur(West) WB 1.00 

145 ANANDA KUMAR PAUL IN MADPUR, Distt: Midnapur(East) WB 1.00 

146 AGRO SERVICE CENTRE IN PANSKURA, Distt: Midnapur(East) WB 1.00 

147 R. N. SINHA IN KOLAGHAT, Distt: Midnapur(East)-721 WB 1.00 

148 SABUJ MITA IN EGRA, Distt:Midnapur(East) WB 1.00 

149 BIRENDRA NATH SAHA IN JADUPUR, Distt: Malda WB 1.00 

150 BIMAL CHANDRA DAS IN MOTHABARI, Distt: Malda-732101 WB 1.00 

151 TARKESHWAR ROY IN HARISHCHANDRAPUR- Distt:Malda WB 1.00 

152 KRISHI SANGSTHA IN HARISHCHANDRAPUR, Distt: Malda WB 1.00 

153 TUSHAR KANTI AGARWALA IN BALURGHAT, Distt: Dakshin Dinajpur WB 1.00 

154 A. SAHA & CO. IN RAIGANJ, Distt: Uttar Dinajpur WB 1.00 

155 NANDALAL AGARWALA IN RAIGANJ, Distt: Uttar Dinajpur WB 1.00 

156 BAJRANGLAL JUGALKISHORE IN RAIGANJ, Distt: Uttar Dinajpur WB 1.00 

157 ACHARYA & CO. IN HASUA, Distt: Uttar Dinajpur WB 1.00 

158 NATIONAL INDUSTRIES IN SILIGURI. Distt: Darjeeling WB 1.00 

159 SHRI BALAJI KRISHI BHANDER IN SILIGURI-734405. Distt: Darjeeling WB 1.00 

160 M. K. CHEMICALS IN KOLKATA-700001 WB 1.00 

161 MALLABHUM KRISHI BHANDAR IN BISHNUPUR, Distt: Bankura WB 1.00 

162 KUNDU TRADING CORPORATION IN GHATAL, Distt: West Midnapur WB 1.00 

163 JOY SHANKAR DUTTA & SONS IN CHATRA, Distt: Birbhum WB 1.00 

164 NEPAL CHANDRA SAU IN PIRAKATHA, Distt: West Midnapur WB 1.00 

165 LAL MOHAN DEY IN KESHPUR, Distt: West Midnapur WB 1.00 

166 BUTTO KRISHNA PAUL IN MALDA, Distt: Malda WB 1.00 

167 SAMAR SARKAR IN ATRAI-BALURGHAT, Distt; South Dinaj WB 1.00 

168 KSHITISH BARDHAN CHUNILAL NATH IN ARMENIAN STREET, Kolkata WB 1.00 

169 T N KUNDU &SONS IN PURULIA, WB 1.00 

170 KRISHI BIPANI IN PANSKURA (R.S.), Distt: East Midnap WB 1.00 

171 MADANLAL BHIMRAJKA IN DUBRAJPUR, Distt: Birbhum WB 1.00 

172 MAHENDRA KUMAR JAIN IN PANJIPARA, North Dinajpur WB 1.00 

173 ANATH BANDHU SAMANTA IN BOLPUR, Distt: Birbhum WB 1.00 

174 KRISHI BHANDAR IN JOYPUR, Distt: Bankura WB 1.00 

175 B C MAKUR IN BISHNUPUR, Bankura WB 1.00 

176 KERAN SHANKAR RAY IN BURDWAN WB 1.00 

177 RKBK LIMITED IN 232104 CHANDAULI UP 1.00 

178 RKBK LIMITED IN 273001 GORAKHPUR UP 1.00 

179 RKBK LIMITED IN 274001 DEORIA UP 1.00 

180 RKBK LIMITED IN 230001 PRATAPGARH UP 1.00 

181 RKBK LIMITED IN 211001 ALLAHABAD UP 1.00 

182 RAJA RAM RAM PRAKASH IN ALLAHABAD UP 1.00 

183 R. R. AGENCIES IN ALLAHABAD-211003 UP 1.00 

184 PRABHU DAYAL BROS. IN ALLAHABAD-211003 UP 1.00 

185 GOPAL FERTILIZERS IN AZAMGARH-276001 UP 1.00 

186 BARANWAL & CO. IN AZAMGARH UP 1.00 

187 HISAMUDDIN IN AZAMGARH-276121 UP 1.00 

188 SHREE DURGA STORES IN BALLIA-277001 UP 1.00 

189 SHIV TRADING CO. IN BALLIA - 277001 UP 1.00 

190 KUMAR FERTILIZERS IN BALLIA-221712 UP 1.00 

100 --


191 SATYANARAIN & SONS IN BASTI-272002 UP 1.00 

192 BALAJI AGENCIES IN BASTI-272002 UP 1.00 

193 RAM CHANDRA GUPTA IN BASTI-272002 UP 1.00 

194 GANPAT RAI VIJAY KUMAR IN DEORIA-274001 UP 1.00 

195 MURARI BROTHERS IN DEORIA-274001 UP 1.00 

196 DEEPCHAND RAM RAMCHAND RAM IN GHAZIPUR-233304 UP 1.00 

197 DEWAN CHAND & SONS IN GORAKHPUR-273001 UP 1.00 

198 CHET RAM MOTI LAL IN GORAKHPUR-273001 UP 1.00 

199 AGRAWAL FERTILIZERS IN GORAKHPUR-273005 UP 1.00 

200 TIBREWAL TRADING CO. IN GORAKHPUR-273001 UP 1.00 

201 FERTILIZER TRADERS IN GORAKHPUR-273001 UP 1.00 

202 MANOJ KUMAR SUNIL KUMAR IN GORAKHPUR-273001 UP 1.00 

203 TEHSILDAR SINGH & BROS. IN JAUNPUR - 222001 UP 1.00 

204 SABHAMANI MISHRA IN JAUNPUR-222175 UP 1.00 

205 TIRPATHI AGRO AGENCIES IN JAUNPUR-222001 UP 1.00 

206 ABHAI RAM GOPI NATH IN JAUNPUR-223101 UP 1.00 

207 I.C.AGRAWAL & SONS IN KHUSHI NAGAR - 274304 UP 1.00 

208 BIJADHAR RAM DWARIKA RAM IN MAU - 275101 UP 1.00 

209 AGRAWAL TRADERS IN MIRZAPUR - 231001 UP 1.00 

210 UMRAO MAL MADAN LAL IN PRATAPGARH-230001 UP 1.00 

211 MUNNU LAL & SONS IN PRATAPGARH-230204 UP 1.00 

212 SHOHRAT ALI IN SIDHARATH NAGAR - 272153 UP 1.00 

213 SITARAM PARASRAMKA IN SIDHARATH NAGAR UP 1.00 

214 DURGA DUTT SHANKER LAL IN SIDHARATH NAGAR-272208 UP 1.00 

215 SHREE SHYAM AUTO SERVICE IN SIDHARATH NAGAR-272192 UP 1.00 

216 RADHA RAMAN AGRAWAL IN SONEBHADRA-231216 UP 1.00 

217 GUPTA FERTILIZER AGENCY IN SONEBHADRA UP 1.00 

218 RAJEEV FERTILIZERS IN SANTRAVI DAS NAGAR-221401 UP 1.00 

219 KRISHI URVARAK KENDRA IN SANT RAVIDAS NAGAR- UP 1.00 

220 RASTOGI BROTHERS IN VARANASI-221001 UP 1.00 

221 RANI SATI MKTNG. CO. (P) Limited IN VARANASI-221001 UP 1.00 

222 AGRAWAL TRADERS IN ALLAHABAD-211003 UP 1.00 

223 SATYA DEV KESHAV DEV GAUTAM IN SADABAD UP 1.00 

224 SANDEEP ENTERPRISES IN 207247 ALIGANJ UP 1.00 

225 MAYANK ENTERPRISES IN 204101 GANDHI CHOWK UP 1.00 

226 RAM PRASAD AGRAWAL IN OBRA, Distt: Aurangabad BH 1.00 

227 RAJ KUMAR AGRAWAL IN ALIGANJ, Distt: Banka-813102 BH 1.00 

228 KRISHI KENDRA IN BARAUNI, Begusarai-851133 BH 1.00 

229 SHRI J.K. ENTERPRISES IN BARAUNI-851112, Dist:Begusarai BH 1.00 

230 BABA CORPORATION IN BHAGALPUR-812005 BH 1.00 

231 BIHAR FERTILIZER AGENCY IN BHAGALPUR-612005 BH 1.00 

232 OM KHAD STORE IN ARRAH-802301, Distt: Bhojpur BH 1.00 

233 SARASWATI FERTILISERS IN ARRAH-802301, Distt: Bhojpur BH 1.00 

234 B.D. TRADERS IN BIHARSHARIF-803101 BH 1.00 

235 LUXMI FERTILIZER AGENCY IN BUXAR-802101 BH 1.00 

236 MANOJ KHAD STORE IN BUXAR BH 1.00 

237 VIJAY SHANKAR PRASAD IN DUMRAON-802119, Distt: Buxar BH 1.00 

238 JAI MATA DI FERTILISERS & SEEDS CO. IN CHHAPRA BH 1.00 

239 SHREE MAHAVEERJEE RICE & OIL MILLS IN DHARBHANGA-846004 BH 1.00 

101 --


240 SANTOSH LAL GUTGUTIA IN MADHUPUR-815353, Distt: Deoghar JH 1.00 

241 ALAM & CO. IN DHAKA, Distt: East Champaran BH 1.00 

242 KASHI NATH ENTERPRISES IN SAGAULI, Distt: East Champaran BH 1.00 

243 PANKAJ KHAD BHANDAR IN GARHWA JH 1.00 

244 BHAWANI ENTERPRISES IN GAYA-823001 BH 1.00 

245 KISAN GHAR IN GAYA-823001 BH 1.00 

246 SAWELI ENTERPRISES IN Laxmi Market, GAYA BH 1.00 

247 SONU TRADERS IN GAYA-823001 BH 1.00 

248 UGRAH SINGH IN Kirani Ghat, GAYA-824226 BH 1.00 

249 TRIPURARI STORES IN RAMGARH CANTT.-829122, Distt:HazaribaghJH 1.00 

250 URVARA IN HAZARIBAGH-834001 JH 1.00 

251 K.K. ENTERPRISES IN JAHANABAD-804408 BH 1.00 

252 SAWELI ENTERPRISES IN JAHANABAD BH 1.00 

253 ANURAG TRADING CO. IN JHAJHA-811308, Distt: Jamui BH 1.00 

254 BIHAR KHAD BHANDAR IN BHABUA, Distt: Kaimur BH 1.00 

255 KANHAIYA TRADING CO. IN KHAGARIA-851204 BH 1.00 

256 R.J. TRADING CO. IN PO KHAGARIA-851204 BH 1.00 

257 AGRO SERVICE CENTRE IN LOHARDAGA-835213 JH 1.00 

258 ASHOK TYRE AGENCY IN MUZAFFARPUR-842001 BH 1.00 

259 SHREE MAHABIR GRAIN STORE IN MUZAFFARPUR-842001 BH 1.00 

260 SRI AMBICA SALES CORPORATION IN MUZAFFARPUR BH 1.00 

261 BHARTI AGRO IN BIHAR SHARIF, Distt: Nalanda-803101 BH 1.00 

262 JAYASWAL AGENCIES IN HILSA-801302, Distt: Nalanda BH 1.00 

263 KRISHI VIKAS AGENCY IN BIHARSHARIF, Distt: Nalanda BH 1.00 

264 SEWAK RAM BECHU RAM IN WARISALIGANJ, Distt: Newadah-805130 BH 1.00 

265 GAURAV AGENCY IN DALTONGANJ-822101, Distt: Palamau JH 1.00 

266 PURSHOTTAM PRASAD AGRAWAL IN DALTONGANJ-822101, Distt: Palamau JH 1.00 

267 DEEPAK AGENCY IN PATNA-800007 BH 1.00 

268 J. P. ENTERPRISES IN DANAPUR CANTT., Patna-801503 BH 1.00 

269 SHREE LAXMI FLOUR MILLS IN BARH, Patna-803213 BH 1.00 

270 SRI AMBICA SALES CORPORATION IN PATNA-800001 BH 1.00 

271 KRISHI VIKAS IN RANCHI-834101 JH 1.00 

272 AMAR NATH SINGH IN ITIMAH, Distt Rohtas-821310 BH 1.00 

273 KRISHI VIKAS KENDRA IN RANCHi-834101 JH 1.00 

274 BHARAT KHAD BHANDAR IN SASARAM-802215, Distt: Rohtas BH 1.00 

275 ROHTAS FERTILIZER IN SASARAM. Distt: Rohtas-821113 BH 1.00 

276 SHREE BAJRANG KHAD BHANDAR IN SAHARSA-852201 BH 1.00 

277 SHEW BHAGWAN MOHANLAL IN SAHIBGANJ JH 1.00 

278 A. K. CORPORATION IN SINGHIAGHAT, Distt: Samastipur BH 1.00 

279 HANUMAN TRADERS IN SAMASTIPUR-848101 BH 1.00 

280 SHANKAR SAH IN SAMASTIPUR-848101 BH 1.00 

281 SONALIKA FERTILIZERS IN SAMASTIPUR-848101 BH 1.00 

282 RAJNISH FERTILIZER IN EKMA-841208 Distt: Saran BH 1.00 

283 SANJEEV KUMAR IN SITAMARHI-843301 BH 1.00 

284 LAXMI KHAD BEEJ BHANDAR IN SIWAN-841241 BH 1.00 

285 MANOJ KHAD BEEJ & CEMENT BHANDAR IN SIWAN-841226 BH 1.00 

286 NEW SHREE LAXMI FERTILISERS IN HAJIPUR, Distt: Vaishali-844101 BH 1.00 

287 KISAN KHAD BHANDAR IN HARI NAGAR-845103, Distt: West Cham BH 1.00 

288 KRISHNA ENTERPRISES IN BETTIAH-845438 Distt: West Champara BH 1.00 

102 --


289 LAKSHMI KHAD BHANDAR IN BETTIAH-845438, Distt: West Champar BH 1.00 

290 SRI KRISHNA ENTERPRISES IN ARRAH-802301, Distt: Bhojpur BH 1.00 

291 AGRAWAL TRADERS IN NAWADAH-805110 BH 1.00 

292 SONE BHANDAR IN NAWADAH-805110 BH 1.00 

293 ARUN KUMAR AGRAWAL IN SUPAUL-852139, Distt: Supaul BH 1.00 

294 SRI GOPAL TRADING CO. IN KHAGARIA-851214 BH 1.00 

295 SAGAR UDYOG IN DARBHANGA-846004 BH 1.00 

296 BIHAR STATE COOPERATIVE MARKETING U IN PATNA BH 1.00 

297 RAJENDRA KUMAR & CO. IN KANPUR-208001 UP 1.00 

298 ANURAG CHEMICALS & FERTILISERS IN KANPUR UP 1.00 

299 OMAR AGENCIES IN Halsey Road, KANPUR UP 1.00 

300 KRISHI VIKAS KENDRA IN KANPUR UP 1.00 

301 ANUPAM RICE MILLS IN KHAGA-2112655 UP 1.00 

302 YASHDEEP IN FATEHPUR-212601 UP 1.00 

303 SHARDA TRADERS IN FATEHPUR-212601 UP 1.00 

304 RAM NATH RAM SHANKAR IN BINDKI-212635, Dist:Fatehpur UP 1.00 

305 RAJENDRA SINGH & CO. IN JAHANABAD Dist: Fatehpur UP 1.00 

306 UNNAO KHAD KENDRA IN UNNAO-209801 UP 1.00 

307 RAMKHELAWAN SHIVGOPAL IN SAFIPUR, Dist: Unnao UP 1.00 

308 BUNDELKHAND ENTERPRISES IN JHANSI UP 1.00 

309 GAURAV FERTILIZER IN MOTH Dist: Jhansi UP 1.00 

310 SHRINATH AGENCY IN JHANSI-284001 UP 1.00 

311 MAHADEO PRASAD ONKAR PRASAD & SONS IN KALPI Dist: Jalaun UP 1.00 

312 RAKESH SERVICE STATION IN ORAI Dist: Jalaun UP 1.00 

313 MITHOOLAL RAMCHANDRA IN JALAUN-285123 UP 1.00 

314 KRISHI SEVA KENDRA IN KONCH Dist: Jalaun UP 1.00 

315 RAMNARAIN PREMNARAIN IN HAMIRPUR UP 1.00 

316 MOOLCHAND RAMPRASAD IN BANDA-210001 UP 1.00 

317 GANGA PRASAD RAMPHAL IN ATARRA Dist: Banda UP 1.00 

318 KASAUNDHAN TRADERS IN NARAINI Dist: Banda UP 1.00 

319 BUNDELKHAND DISTRIBUTORS IN BANDA UP 1.00 

320 CHHIBRAMAU KHAD KENDRA IN CHHIBRAMAU Dist: Kannauj UP 1.00 

321 R.B. DURGA PRASAD BIMAL CHANDRA IN FARRUKHABAD UP 1.00 

322 SAI FERTILISERS IN FARRUKHABAD UP 1.00 

323 SAGAR MAL & SONS IN FARRUKHABAD UP 1.00 

324 PORWAL AGENCIES IN SAHAR, Distt: Auraiya UP 1.00 

325 PORWAL KHAD BHANDAR IN MORADGANJ, Distt: Auraiya UP 1.00 

326 AGARWAL TRADERS IN AURAIYA UP 1.00 

327 SURENDRA PRAKASH & SONS IN ETAWAH UP 1.00 

328 AGRASEN BEEJ BHANDAR IN JHANSI UP 1.00 

329 NEW DURGA TRADERS IN KUSMARA, Distt: Mainpuri UP 1.00 

330 KISAN KHAD BHANDAR IN BEWAR, Distt: Mainpuri UP 1.00 

331 AGARWAL TRADING COMPANY IN MAINPURI-205001 UP 1.00 

332 Others less than Rs 100000/- each 67.54 

Total 421.59 

103 --


SECURITY DEPOSIT - BUFFER STOCKISTS (GL 3621) AS ON 31.03.2010 ( 

Fertiliser) 

Annexure XII ( Contd) 

SL NAME OF PARTY Rs\lakh 

1 MOSA RAM BHAGWAN DAS, SITAPUR 1.50 

2 DEB ENTERPRISE, KRISHNAGAR 1.25 

1 PUNJAB BHANDAR, ALIGARH 1.00 

2 AGARWAL CLEARING (P) LTD AGRA 1.00 

3 NARAIN GOODS CARRIERS, SHIVPUR 1.00 

4 ABHAI RAM GOPI NATH, JAUNPUR 1.00 

5 AMIT GOODS CARRIERS, BASTI 1.00 

6 SHREE DURGA STORES, BALIA 1.00 

7 PRABHUDAYAL & BROS, ALLAHABAD 1.00 

8 AGARWAL TRADERS, MIRZAPUR 1.00 

9 LAKSHMI TRANSPORT CO. , VARANASI 1.00 

10 BIJADHAR RAM DWARIKA RAM, MAU 1.00 

11 MOHAN ENTERPRISES, KARNAL 1.00 

12 HIMALAYA TRADING CO., BHATINDA 1.00 

13 CHANDRAKANTA ASSOCIATES, SULTANPUR 1.00 

14 VIJAY BHARAT & BROTHERS, SULTANPUR 1.00 

15 BHAWNA ENTERPRISES, RAEBAREILLY 1.00 

16 SAWELI ENTERPRISES, JEHANABAD 1.00 

17 BHARAT KHAD BHANDAR, ROHTAS 1.00 

18 HANUMAN TRADERS, SAMASTIPUR 1.00 

19 RAM PRASAD AGARWAL, AURANGABAD 1.00 

20 SHANKAR SHAH, SAMASTIPUR 1.00 

21 SONALIKA FERTIZERS, SAMASTIPUR 1.00 

22 K.K. ENTERPRISES, JEHANABAD 1.00 

23 R.J. ENTERPRISES, KHAGARIA 1.00 

24 NEW SHREE LAXMI FERTILISER, VAISHALI 1.00 

25 SHAHDEO PRASAD, NALANDA 1.00 

26 LAXMI FERTIZER AGENCY, BUXAR 1.00 

27 SRI AMBICA SALES CORPORATION 1.00 

28 SRI AMBICA SALES CORPORATION, PATNA 1.00 

29 SARASWATI FERTIZERS, ARRAH 1.00 

30 GAURAV AGENCY, PALMAU 1.00 

31 SEWAK RAM BECHU RAM, NEWADAH 1.00 

32 KANHAIYA TRADING CO., KHAGARIA 1.00 

33 RAM GOPAL, EAST CHAMPARAN 1.00 

34 GANPATI TRADERS, WEST CHAMPARAN 1.00 

35 GANPATI TRADERS, EAST CHAMPARAN 1.00 

36 SANTOSHI LAL GUTGUTIA, DEOGARH 1.00 

37 ANURAG TRADING CO., BHAGALPUR 1.00 

38 SAWELI ENTERPRISES, KIRANI GHAT 1.00 

39 NAV DURGA TRANSPORT AGENCY, SARAN 1.00 

40 DURGA TRANSPORT AGENCY, SIWAN 1.00 

41 KRISHI KENDRA, BEGUSARAI 1.00 

42 RKBL LTD., KANPUR 1.00 

43 NARENDRA KUMAR RAJIV KUMAR, FARRUKHABAD 1.00 

104 --


44 S R & SONS, JHANSI 1.00 

45 RAJENDRA KUMAR & CO. , KANPUR 1.00 

46 TARAI TRANSPORT CORPORATION 1.00 

47 NTC TRADING CO. ,SILIGURI 1.00 

48 RADHEY SHYAM SHARMA, KHARAGPUR 1.00 

49 JAY NARAYAN DUTTA & BROS 1.00 

50 AJOY ENTERPRISES 1.00 

51 MRINAL KANTI PAUL, HABRA 1.00 

52 THE PREMIER TRANSPORT SERVICE, KOLKATA 1.00 

53 THE PREMIER TRANSPORT SERVICE, KOLKATA 1.00 

54 MANGALA TRADERS, BURDWAN 1.00 

55 SAHA ROADLINES, BURDWAN 1.00 

56 BHAGWAN PRASAD SAHA, MALDA 1.00 

57 SHREE KRISHNA CORPORATION, HOWRAH 1.00 

58 GLOBE ENTERPRISES, BEHRAMPUR 1.00 


Total 72.22 

105 --


I. CUSTOMER ADVANCE CCU (GL 3601) AS ON 31.03.2010 ( Fertiliser) 


SL NAME OF PARTY Rs\lakh 

1 RAM PRASAD AGRAWAL IN OBRA, Distt: Aurangabad BH 13.95 

2 DEEPAK AGENCY IN PATNA-800007 BH 3.22 

3 SANWAL PRASAD & SONS IN 271871 DISTT. BAHRAICH UP 2.93 

4 SANTOSH LAL GUTGUTIA IN MADHUPUR-815353, Distt: Deoghar JH 2.79 

5 RAJEEV FERTILIZERS IN SANTRAVI DAS NAGAR-221401 UP 2.50 

6 GAGAN KRISHI FARM IN MANSA (Punjab) PB 2.27 

7 MANOJ KHAD BEEJ & CEMENT BHANDAR IN SIWAN-841226 BH 2.03 

8 SRI AMBICA SALES CORPORATION IN PATNA-800001 BH 2.01 

9 SHREE LAXMI FLOUR MILLS IN BARH, Patna-803213 BH 1.92 

10 SAWELI ENTERPRISES IN Laxmi Market, GAYA BH 1.61 

11 VIDYA FERTILISERS CORPORATION IN PIPLI, Distt: Kurukshetra-132131 HR 1.58 

12 KRISHNA ENTERPRISES IN BETTIAH-845438 Distt: West Champara BH 1.53 

13 SANJAY TRADERS IN AGRA UP 1.38 

14 RAJU VANASPATI STORES IN AGRA UP 1.34 

15 JOY SHANKAR DUTTA & SONS IN CHATRA WB 1.11 

16 JAGDISH BROTHERS IN DISTT. AMBEDKAR NAGAR UP 1.10 

17 HIMALAYA TRADING CO. IN BHATINDA (Punjab) PB 1.08 

18 HANUMAN TRADERS IN SAMASTIPUR-848101 BH 1.06 

19 VISHNU KUMAR GUPTA IN 271901 BAHRAICH-271901 UP 1.05 

20 SHYAMA KRISHI BHANDAR IN HABRA WB 1.04 

21 SHANKAR SAH IN SAMASTIPUR-848101 BH 1.03 

22 MOSA RAM BHAGWAN DASS IN DISTT. SITAPUR UP 1.00 

23 RAM CHANDRA GUPTA IN BASTI-272002 UP 1.00 

24 OTHERS less than Rs 100000/- each 37.18 

TOTAL 87.72 

II. ADVANCE Area Offices Meerut and Barielly ( 

GL 2050 & 2065) AS ON 31.03.2010 

1 VIKAS TRADING COMPANY IN GARH UP 3.03 

2 IGLAS KRISHI VIKAS KENDRA IN IGLAS, ALIGARH UP 1.20 


TOTAL 6.77 

TOTAL (I& II) 94.49 

106 --


Non Current Purchase Liability ( Gardens ) as on 31/03/2010 (Tea Divn) 


Code Particulars (Rs\lakh) 

C019 CHAMPALAL GOPALDAS 9.95 

A036 ABC TEA WORKERS WELFARE SERVICES 8.11 

C024 CONTINANTAL TRANSPORT AGENCY 8.02 

P036 PRAKASH ENTERPRISE 7.65 

I014 INDUSTRIAL TRANSPORT COMPANY 7.27 

L721 L.D. ENTERPRISES PVT. LTD. 7.09 

J015 JIBAN NAG CHOWDHURY 6.64 

A025 ALLIED PACKERS 4.15 

B006 BEDI & BEDI PVT LTD 3.93 

Z004 ZENECA ICI AGROCHEMICALS LTD. 3.59 

A030 ANKAR INDUSTRIES (P) LTD 3.40 

S874 SUBHA AGENCY 2.87 

K015 KAMAKHYA CARRIERS 2.67 

K107 K. N. CHAUDHURY 2.09 

M111 MONSANTO INDIA LTD. 2.08 

R021 ROY CHEMICAL 1.99 

P021 PREMIER IRRIGATION EQUIPMENT LTD. 1.96 

R500 RATAN TRADING & INVESTMENT CO. 1.94 

R515 RAJSHAHI TRANSPORT & TRADING PVT.LTD. 1.90 

V009 VIKRAM FORGINGS & ALLIED IND. PVT. LTD. 1.65 

N004 NAV BHARAT TRADING CO. 1.30 

C005 CALCUTTA TRADING CO. 1.26 

P269 PAUL SEGMENTS CO. 1.13 

T009 TEA SPARES ENTERPRISES 1.09 

C016 CASTROL INDIA LTD. 1.06 

S042 SHREE RAM UDYOG 1.02 

Others Less than Rs 100000/- each 19.94 

Total 115.74 

107 --


Purchase Liability - in Tea Garden Accounts (Tea Divn) Annexure XII ( Contd) 

Non 

Code 

Current 

(Rs\lakh) 

E721 EAST INDIA TRANSPORT AGENCY 230.19 

F024 FCB-ULKA ADVERTISING PRIVATE LIMITED 208.70 

C024 CONTINENTAL TRANSPORT AGENCY 194.97 

E074 EXCESS/SHORT PROVISION OF TDS A/C 74.72 

F202 FCB - ULKA ADVERTISING LTD. 73.68 

U722 ULKA ADVERTISING 36.77 

H045 HENKEL SPIC INDIA LTD. 36.00 

E063 EASTERN ROAD CARRIERS PVT. LTD. 26.29 

O210 OOTY MARKETING LTD. 24.23 

K105 KHYATI TIN POSTER CO. 23.19 

L406 LINK CONTINENT FOOD PVT. LTD. 22.05 

N409 NICCO UCO ALLIANCE CREDIT LTD. 16.05 

S018 SUDHIR CHATTERJEE & CO. PVT. LTD. 15.71 

SB33 SOUTH ASSAM ROADWAYS LTD. 15.54 

S219 S. A. ENTERPRISES 14.15 

A036 ABC TEA WORKERS WELFARE SERVICES 12.61 

S425 SWASTI HOUSING PROJECT (P) LTD. 11.66 

M085 MARICO INDUSTRIES LTD. 11.32 

D157 DALMIA TEA PLANTATION & INDUSTRIES LTD. 11.22 

R553 RAMSHAI TEA ESTATES PVT. LTD. 10.41 

P728 THE PAPER PRODUCTS LTD. 10.15 

H001 HANUMANDASS RAJKUMAR 9.68 

K104 KUNAL RESOURCES PVT. LTD. 9.24 

D048 DOOARS BRANCH INDIAN TEA ASSOCIATION. 9.22 

T007 TEA SPARES (INTERNATIONAL) 7.73 

N210 NAHATA ASSOCIATES PVT. LTD. 7.25 

I003 INDIAN OIL CORPORATION LTD.MARKETING DIV. 7.19 

R764 RAJENDRA SINGH LODHA 7.08 

R021 ROY CHEMICAL 6.73 

N238 N. K. GOSSAIN & CO. PVT. LTD. 6.72 

R053 R A S TRANSPORT 6.46 

N401 NICCO-UCO FINANCIAL SERVICES LTD. 6.38 

G203 GANASHAKTI 6.31 

D121 DELHI ASSAM ROADWAYS CORPORATION LTD. 5.84 

C006 CARRITT MORAN & CO. PVT. LTD. 5.65 

J404 J. R. LADDHA & CO. 5.49 

V001 VFC LTD. 5.32 

D162 DHOLAI TEA COMPANY(P) LTD. 5.23 

P022 PRAGATI PRINTERS PVT. LTD. 4.69 

S729 STALE CHEQUES 4.57 

C085 CAVINKARE LIMITED 4.52 

W404 WESTERN CONCLOMERATE PVT. LTD. 4.27 

C095 CARE TEA PRIVATE LIMITED 4.10 

P580 PRISMA ADVERTISING 4.08 

Q006 QUANTUM MARKET RESEARCH PVT. LTD. 4.03 

108 --


M208 MICRO TECH SERVICES 3.91 

Q204 QUALITY TEA PRODUCING CO. PVT. LTD. 3.90 

K013 KALLANI DISTRIBUTORS 3.81 

L217 L. N. FIELDS PVT. LTD. 3.62 

B207 BANSAL TEA WAREHOUSE 3.27 

R006 ROHINI PRINTERS 3.19 

S049 SHAW WALLACE & CO. LTD. 3.11 

N005 NORTHERN ENGG. WORKS 2.95 

E402 EASTERN FINANCIERS LTD. 2.83 

A001 A. K. MUKHERJEE & CO. 2.82 

U032 UNIQUE TEA BORN PRIVATE LTD. 2.78 

S766 SURAJ INVESTMENTS 2.77 

P092 PREMIER VENTURE PROMOTIONAL PVT. LTD. 2.75 

D310 DOVER HOLDINGS LTD. 2.72 

B586 BATES INDIA PVT. LTD. 2.68 

W251 WAREHOUSE PRESTIGE 2.66 

O014 OCTAVIUS TEA & INDUSTRIES LTD. 2.65 

L762 LADDHA INVESTMENTS 2.60 

D207 DARJEELING PLANTERS ASSOCIATION 2.54 


K126 KAMALPUR TEA CO 2.41 

D203 DIPAK KR.GANARIWALA 2.25 

E405 EITA SERVICES PVT.LTD. 2.23 

L028 LAKSHMI FINANCE TRADERS 2.19 

B583 B. A. G. FILMS LTD. 2.04 

B055 BICCO AGRO PRODUCTS PVT. LTD. 1.90 

J041 JSTI INVESTMENT LTD. 1.88 

M206 MICRO LAB 1.85 

A783 AJAY KUMAR LADDHA 1.85 

I722 INDIAN ROADWAYS CORPORATION LTD. 1.84 

L761 LADDHA BROTHERS 1.80 

M002 MADAN PACKAGING P. LTD. 1.79 

J001 J THOMAS & CO. PVT. LTD. 1.73 

A769 ANUSHREYA INVESTMENTS PVT. LTD. 1.72 

E056 ELITE TEA AGENCY 1.66 

S001 S. B. PACKERS 1.63 

U721 UNIVERSAL TEA PACKERS 1.57 

P118 PODDAR PROJECTS LIMITED 1.56 

P028 PEAK CHEMICAL INDUSTRIES LTD. 1.55 

K094 KOTAK SECURITIES 1.55 

M050 MANJUSHREE EXTRUSIONS LTD. 1.53 

S843 SUDHAMOY MULLICK AND CO. PVT. LTD. 1.53 

C087 CABLE VIDEO (INDIA) LTD. 1.44 

L205 LAKE VIEW PROPERTIES PVT. LTD. 1.43 

N014 NANI GOPAL PAUL 1.36 

R543 RAVINDER KUMAR & COMPANY 1.36 

I721 INDIAN MARKET RESEARCH BUREAU 1.36 

Z004 ZENECA ICI AGROCHEMICALS LTD. 1.35 

S942 SUMAN TEA & PLYWOOD INDS. PVT. LTD. 1.31 

109 --


J202 JAGATDAL JUTE & IND. LTD. 1.22 

S229 SPEED WINGS 1.19 

I014 INDUSTRIAL TRANSPORT COMPANY 1.15 

M082 M.A.KARIM - SILIGURI 1.10 

M213 MANOJ KUMAR LADDHA 1.08 

F008 FRIENDS AUTOMOBILES 1.07 

P012 PARTAP ENGG. WORKS 1.04 

D259 D. G. ENTERPRISE 1.04 

L201 LILA DEVI KANORIA / DELA DEVI AGARWAL 1.00 

Others less than Rs 100000/- each 34.78 

Total Head Office 1381.78 

B052 BATA INDIA LTD. 1.51 

H079 HIMALAYAN CHEMICALS 2.85 

K013 KALLANI DISTRIBUTORS 2.61 

R029 RAJA FERTILISER 4.07 


Total Birpara 15.35 

J010 JOY SERVICE STATION 2.48 

M103 MADARIHAT SAW MILL. 1.97 

R041 R.K.SECURITY SERVICE 1.38 


Total Hantapara 7.82 

R029 RAJA FERTILISER 10.09 


Total Dumchipara 11.34 

Creditors less than Rs 100000/- each 3.32 

Total Lankapara 3.32 

N238 N.K.GOSSAIN & CO PRIVATE LIMITED 1.51 


Total Tulsipara 3.19 

B546 BHUJEL CONSTRUCTION 2.27 

H009 HINDUSTHAN SALES AGENCY 1.82 


Total Garganda 6.60 



Total Killcott TG 11.76 


Total Nagaisuree TG 0.41 

D048 DOOARS BRANCH INDIAN TEA ASSOCIATION. 1.69 

L721 L.D. ENTERPRISES PVT. LTD. 2.28 


Total Bagracote TG 7.77 


Total Gungaram TG 2.14 


Total Runglee TG 4.75 


Total Goalgach TG 3.44 

110 --


F008 FRIENDS AUTOMOBILES 0.35 

F204 FRIENDS AGENCIES. 0.35 

H001 HANUMANDASS RAJKUMAR 0.45 

H009 HINDUSTHAN SALES AGENCY 0.20 

S064 SCALE WEIGHT & CO. 0.02 

SA70 SHARMA ENGINEERING WORKS 0.10 

Patagora TG 1.47 


Total M.L.P. TG 1.17 

Total for All Locations 1462.32 

111 --


Tea Divn Non Current Purchase Liability as on 31/03/2010 Annexure XII ( Contd) 

(Rs\lakh) 

Code Particulars Amt 


S010 SINHAL AGENCIES & COMPANY 3.27 

A036 ABC TEA WORKERS WELFARE SERVI. 2.07 

H104 HTC TRADING PVT. LTD. 1.54 

A281 A. B. PAUL & CO. 1.34 

Liability less than Rs 100000/- each 7.07 

Total Birpara TG 18.75 

L721 L. D. ENTERPRISES PVT. LTD. 27.26 

K107 K.N.CHAUDHURY. 17.22 


A094 AGRO INPUTS CORPORATION 3.33 


J225 JAI TRADING CO. 1.82 

S982 SHREE HANUMAN E 1.11 


Total Hantapara 59.30 


M174 MESCO INTERNATIONAL 4.92 

D027 DIAMOND ENGINEERING ENTERPRISE. 3.41 

M125 METRO SALES CORPORATION 2.89 



R515 RAJSAHI TRANSPORT & TRADI 1.65 


Total Dumchipara 40.28 

Z012 ZENITH MACHINERY COMPANY 1.25 

SA23 SWASTIK DIESEL SPARES 1.05 


Total Lankapara 3.15 

T408 TIRUPATI AND ASSOCIATES PVT. LTD. 4.39 

R099 RAJSHAHI BANIJYA PVT. LTD. 3.39 






H101 HTC TRADING PRIVATE LTD. 1.14 


Total Garganda 24.85 



S401 SANKO FINVEST PVT. LTD. 2.42 




Total Tulsipara 34.40 

112 --


SA72 SINGHAL UDYOG 8.78 



Total Killcott TG 26.06 


A024 AARKAY INDUSTRIES 2.90 




S052 SIGMA ASSOCIATES 1.15 

P722 P GOPAL RAO 1.14 

M078 MAYANAK AGENCY 1.07 


C026 CYGNUS ENTERPRISES 1.02 


Total Nagaisuree TG 35.40 



J015 JIBAN NAG CHOWDHUDY 4.03 


S985 SYNGENTA CROP. PROTECTION (P) LTD. 2.12 



Total Bagracote TG 25.11 

SA14 SINGHAL UDYOG 4.38 



P112 PENNWALT LTD. 2.24 





Total Gungaram TG 28.09 

R099 RAJSHAHI BANIJYA PVT. LTD. 13.23 


R100 R. B. INDUSTRIES 3.71 




T408 TIRUPATI AND ASSOCIATES PVT. LTD. 1.41 

S401 SANKO FINVEST PVT.LTD. 1.15 


Total Runglee TG 40.55 


Total Goalgach TG 0.17 


Total M.L.P. TG 1.62 

Total for All Locations 337.72 

113 --


Tea Divn 


BILLS PAYABLE AS AT 31.03.2010 (Rs\lakh) 

SANKO FINVEST PVT. LTD. 121.79 

TIRUPATI AND ASSOCIATES PVT. L 51.28 

LINK CONTINENT FOOD PVT. LTD. 48.41 

SWASTI HOUSING PROJECT (P) LTD 25.45 

KUNAL RESOURCES PVT. LTD. 20.57 

L.D. ENTERPRISES PVT. LTD. 12.69 

ASHA BERIWALA 10.45 

WESTERN CONCLOMERATE PVT. 

LTD. 10.04 

ERC INDIA LTD. 7.58 

ASKA ROADWAYS PVT. LTD. 5.89 

KEDIA COMMERCIAL PVT. LTD. 5.50 

ASKA INVESTMENTS PVT. LTD. 4.00 

323.65 

Remarks: 

The above lists are of non current unsecured creditors which are to be paid @ 

25% of their dues. The unsecured creditors upto Rs 1 lakh have been clubbed 

in view of voluminous nature. Further, the entire List of current unsecured 

creditors is not annexed due to voluminous nature. The full details can be seen 

in the detailed list of unsecured creditors available with SBI( OA). 

List of unsecured fixed deposits involving about 52000 deposit holders 

aggregating to Rs 79.04 cr as on 31.03.2010 is not filed due to voluminous 

and bulky data. 

114 --


Details of Lead Managers and Co-managers Subscribing 

Unsecured Foreign Currency Convertible Bonds (FCCBs) 

Sl 

Name of the holders 

No. 

1. Credit Suisse 

Paradeplatz 8, 8001 Zurich, Switzerland 

2. Citibank (Switzerland) 

Bahnhofstrasse 63, 8001 Zurich, Switzerland. 

3. Jefferies International Limited 

46 New Broad Street, 3 rd Floor, London EC2M 1JD, 

United Kingdom 

4. Lombard, Odier & CIE 

11, Rue de la Corraterie, 

1204 Geneva, Switzerland 

5. Banca Del Gottardo 

Viale Stefano Franscini 8, 6901 Lugano, Switzerland 

6. Bank Von Ernst & CIE AG 

Marktgasse Rue 

3011 Berne, Switzerland 

7. HSBC Investment Bank PLC 

Thames Exchanges, 10 Queens Street Place, 

London EC4R 1L, United Kingdom 

8. MC Securities Limited 

Commercial Union Tower, 

One Undershaft, London EC3A 8LH, 

United Kingdom 

9. Nomura Bank (Switzerland) Ltd. 

Kasernenstrassc 1, 

8004 Zurich, Switzerland. 

Annexure XIII 

Amount (Swiss 

Fr) 

45,250,000 

750,000 

750,000 

750,000 

500,000 

500,000 

500,000 

500,000 

500,000 

Total 50,000,000 

Note: 

Purchase Conversion and Paying Agency Agreement for above 50 million Swiss 

Fr was executed with the above Lead Managers on 19 th November, 1996. 

115 --


Annexure-A 

SCHEME OF ARRANGEMENT UNDER THE PROVISIONS OF SICK 

INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985 

BETWEEN 

DUNCANS INDUSTRIES LTD. (DIL) 

AND 

KANPUR FERTILIZERS & CEMENT LTD. (KFCL) 

PART-I 

PRELIMINARY 

1. Preamble 

1.1 Duncans Industries Ltd. (DIL) is a Company incorporated under the 

provisions of the Companies Act, 1956, having its registered office at 

Duncan House, 31, Netaji Subhas Road, Kolkata 700 001 in the State of 

West Bengal. 

1.2 Duncans Industries Ltd. (DIL) has a unit for manufacture of fertiliser 

(Urea) with a capacity of 722000 MTPA located at Panki, Kanpur, Uttar 

Pradesh and tea units located at Distts. Jalpaiguri, Darjeeling and at 

Uttar Dinajpur, West Bengal for producing/processing of tea with a 

capacity of approximately 15 million kgs. annually at present. The 

fertilizer unit was acquired by DIL in 1993 from ICI Ltd. In the hands of 

ICI, the plant commenced production in 1969 in a phased manner. 

1.3 Kanpur Fertilizers & Cement Ltd. (KFCL) is a Company incorporated 

on 31 st May, 2010 under the provisions of the Companies Act, 1956, 

having its registered office at Sector-128, Noida-201304, U.P.. 

1.4.1 Due to various reasons extraneous to the control of management, DIL 

incurred losses. This resulted in complete erosion of its net worth as on 

31.03.2006 and making it a sick industrial company as per the provisions 

of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). At 

the hearing held on 21.02.2007, Hon ble BIFR declared DIL as a sick 

industrial company in terms of section 3 (1) (o) of SICA and appointed 

State Bank of India (SBI) as the Operating Agency (OA).. 

1.4.2 As part of the Rehabilitation Scheme being submitted to Hon ble BIFR, 

the business of its Fertliser unit / undertaking shall be de-merged w.e.f. 

01.10.2010 and shall be transferred to and merged with Kanpur Fertilizer 

& Cement Limited (KFCL), pursuant to relevant provisions of SICA. 

116 --


2. Definitions 

In this Scheme, unless repugnant to the meaning or context thereof, the 

following expressions will have the following meanings: 

(A) 

(B) 

(C) 

Act or SICA means the Sick Industrial Companies (Special 

Provisions) Act, 1985 or any statutory modification or re-enactment 

thereof for the time being in force. 

Appointed Date means 1 st October, 2010 or such other date as 

may be fixed by the Hon ble BIFR. 

Transferor Company / De-merged Company means Duncans 

Industries Limited (DIL), a company incorporated under the 

provisions of the Companies Act, 1956, having its registered office 

at Duncan House, 31, Netaji Subhas Road, Kolkata 700 001 in the 

State of West Bengal. 

(D) Transferee Company / Resulting Company means Kanpur 

Fertilizers & Cement Limited (KFCL), a company incorporated 

under the provisions of the Companies Act, 1956, having its 

registered office Sector 128, Noida-201304 in the State of Uttar 

Pradesh. 

(E) 

De-merged Undertaking means assets and liabilities pertaining 

to the undertaking of the De-merged Company comprising the 

business activity relating to the fertiliser unit carried on by the Demerged 

Company (herein also referred to as the Fertilizer 

Undertaking ) and shall, in relation to the Fertilizer Undertaking, 

mean and include: 

(a) all assets pertaining to Fertilizer Undertaking wherever 

situated, whether movable or immovable, tangible or 

intangible, including any land, buildings, plant and machinery, 

offices, furniture and fixtures, office equipment, appliances, 

accessories, rail yard, locomotive engines, and intellectual 

property and all liabilities duties and obligations whether 

secured or unsecured or provided for or not in the books of 

accounts of the Fertilizer Undertaking. 

(b) all permits, quotas, rights, entitlements, industrial and other 

licences, approvals, consents, municipal permissions, 

tenancies in relation to offices, godowns and / or residential 

properties for the employees, offices, goodwill, intellectual 

property in relation to the De-merged Undertaking , bank 

balances, bank accounts, receivables, advances, privileges, 

all other rights and benefits, licences, powers and facilities of 

117 --


every kind, nature and description whatsoever, rights to use 

and avail of telephones, telexes, facsimile connections and 

installations, utilities, electricity and other services, provisions, 

funds, benefits of all agreements, contracts and arrangements 

(such agreement, contracts and arrangements and all other 

interests in connection with or relating to the De-merged 

Undertaking . 

(c) 

all earnest moneys and / or security deposits paid or received 

by the De-merged Company in connection with or relating to 

the De-merged Undertaking . 

(d) all necessary records, files, papers, engineering, and process 

information, computer programmes, drawings, manuals, data, 

catalogues, quotations, sales and advertising material, lists of 

present and former customers and suppliers, customer credit 

information, customer pricing information and other records in 

connection with or relating to the De-merged Undertaking . 

(F) 

(G) 

(I) 

Effective Date means the date on which Hon ble BIFR sanctions 

this Scheme and the certified copy of such Order of sanction is 

filed with the Registrar of Companies, West Bengal by the Demerged 

Company, and with the Registrar of Companies, Kanpur, 

by the Transferee Co., whichever is later. References in this 

Scheme to the date of coming into effect of this Scheme or 

effectiveness of the Scheme shall mean the Effective Date. 

Record Date means the date to be fixed by the Board of Directors 

or a Committee thereof of the De-merged Company for the purpose 

of determining the members of the De-merged Company to whom 

equity shares will be allotted pursuant to this Scheme. 

Remaining Business means all the business of the De-merged 

Company other than the De-merged Undertaking. 

(J) Sanctioned Rehabilitation Scheme means the Rehabilitation 

Scheme for the revival of Duncan Industries Limited being 

submitted to BIFR and incorporating this Scheme as integral part 

thereof, as finally sanctioned by the BIFR. 

(K) 

Scheme means this Scheme of Arrangement (De-merger) in its 

present form. 

3. Share Capital 

(a) The share capital of De-merged Company as on 31.03.2010 is as 

follows: 

118 --


Authorised 

Rs in Lakh 

5,50,00,000 Equity Shares of Rs 10/- each 5500.00 

1,80,00,000 Cumulative Preference Shares of 

Rs 100/- each 18000.0 

23500.00 

Issued, Subscribed and Paid-up 

5,32,23,026 equity shares of Rs 10/- each 

fully called up (100,00,000 equity shares 

fully paid up allotted for consideration 

otherthan cash) 5322.30 

Less: Calls in arrears 0.03 

5322.27 

950,000 8.25% Redeemable Cumulative 

Preference Shares of Rs 100/- each 

fully paid-up 950.00 

1,65,98,331 0.001% Cumulative Redeemable 

Preference Shares of Rs 100/- each 

Fully paid-up 16598..33 

(b) The share capital of Kanpur Fertilizers & Cement Limited 

(KFCL) as on 30.09. 2010 is as follows: 

Rs in Lakh 

Authorised 

100,00,000 Equity Shares of Rs 10/- each 1000.00 

Issued, Subscribed and Paid-up 

1,00,000 Equity Shares of Rs 10/- each fully 10.00 

paid-up 

PART-II - THE SCHEME 

4. Date of effect of the Scheme 

Although the Scheme comes into operation from the Appointed Date, it 

shall only become effective from the Effective Date. 

5. Transfer of Assets of De-merged Undertaking 

(a) With effect from the Appointed Date, the De-merged Undertaking 

including all accretions and appurtenances, together with all the 

right title and interest of the De-merged Company therein and 

thereto as stated in Schedule I shall stand transferred to and vest in 

119 --


or be deemed to be transferred to and vested in the Transferee 

Company, without any further act, instrument, deed, matter or thing, 

as a going concern, so as to become, from the Appointed Date, the 

property of the Transferee Company. 

(b) In respect of such of the assets of the De-merged Undertaking 

including cash and bank balances as are movable in nature or are 

otherwise capable of transfer by manual delivery, or by 

endorsement and delivery, the same shall be so transferred by the 

De-merged Company and shall become the property of the 

Transferee Company as an integral part of De-merged 

Undertaking. 

(c) 

In respect of such of the assets belonging to the said De-merged 

Undertaking other than those referred to in sub-clause (a) and (b) 

above, the same, without any further act, instrument, deed, matter 

or thing, shall also stand transferred to and vested in the 

Transferee Company on the Appointed Date. Without prejudice to 

the other provisions of this Scheme and the fact that the vesting of 

the De-merged Undertakings occurs by virtue of this Scheme itself, 

the Transferee Company may, at any time after the coming into 

effect of this Scheme in accordance with the provisions hereof, if so 

required under any law or otherwise, take such actions and execute 

such deeds (including deeds of adherence), confirmation or other 

writings or tripartite arrangement with any party to any contract or 

arrangement to which the Transferor Company is a party or any 

writings as may be necessary in order to give formal effect to the 

provisions of this Scheme or as are required to remove any 

difficulties and carry out any formalities or compliance for the 

implementation of this Scheme. The Transferee Company shall be 

deemed to be authorised to execute any such writings in place of 

the Transferor Company and to carry out or perform all such 

formalities or compliances referred to above on the part of the 

Transferor Company to be carried out or performed. Without 

prejudice to the generality of the foregoing, Transferee Company 

shall at any time pursuant to the orders on this Scheme be entitled 

to get the recordal of the change in the legal right(s) of vesting of all 

the assets of the De-merged Undertaking in accordance with the 

applicable provisions of law. 

(d) All assets, rights, title and interest including accretions and 

appurtenances acquired by the De-merged Company after the 

Appointed Date and prior to the Effective Date in respect of the Demerged 

Undertaking shall also stand transferred to and vested in 

the Transferee Company upon the coming into effect of this 

Scheme. 

120 --


(e) In so far as the assets of the De-merged Undertaking are subject to 

any security or charge appertaining to any loan, debentures or 

borrowings of the De-merged Company, such security or charge 

shall without any further act, deed, matter or thing be released and 

shall stand released and shall no longer be available as security in 

relation to the liabilities of the De-merged Company and vice-versa. 

(f) 

The transfer and vesting of assets of the De-merged Undertaking 

as aforesaid shall however be subject to charges / hypothecation / 

mortgages / security (if any, as may be subsisting) arising from any 

loans, debentures or borrowings as the case may be transferred to 

the Transferee Company , which shall be paid off by the Transferee 

Company in terms of the Sanctioned Rehabilitation Scheme to the 

end and intent that any such 

charges/hypothecation/mortgages/security on the assets of the 

Remaining Business of the De-merged Company shall stand 

released. 

(g) The De-merged Company shall create as necessary, security on 

the assets of its Remaining Business, in favour of the financial 

institutions, banks and creditors, in substitution of the existing 

security, if any, originally created by the De-merged Company in 

respect of the loans, debentures or borrowings which are not 

transferred to the Transferee Company. 

6. Transfer of Liabilities: De-merged Undertaking 

(a) Upon the coming into effect of the Scheme, the liabilities which 

arose out of the activities or operations of the De-merged 

Undertaking on or before the Appointed Date, shall be deemed to 

have been transferred to the Transferee Company without any 

further act, deed, matter or thing, and shall become the liabilities 

and obligations of the Transferee Company and the Transferee 

Company shall undertake to meet, discharge and satisfy the same 

in terms of the Sanctioned Rehabilitation Scheme. 

(b) Where any of the liabilities and obligations including contingent 

liabilities and obligations which arose out of the activities or 

operations of the said De-merged Undertaking on or before the 

Appointed Date and are deemed to be transferred to the Transferee 

Company, have been discharged by the De-merged Company 

after the Appointed Date and prior to the Effective Date, such 

discharge shall be deemed to have been for and on account of the 

Transferee Company and all loans raised and used and all 

liabilities and obligations incurred by the De-merged Company for 

or in connection with the operations of the De-merged Undertaking 

after the Appointed Date and prior to the Effective Date shall also, 

121 --


without any further act, deed, matter or thing, stand transferred to 

the Transferee Company and shall become liabilities and 

obligations of the Transferee Company in terms of the Sanctioned 

Rehabilitation Scheme, and the Transferee Company shall meet, 

discharge and satisfy the same in terms of the Sanctioned 

Rehabilitation Scheme. 

7. All the assets and liabilities of the De-merged Company will be restated 

at the restructured values and the differential amount arising due to 

remissions / waivers will be credited to the reserve and surplus in the 

books of de-merged company and thereafter a restructured estimated 

Balance Sheet of de-merged company as on 1 st October, 2010 will be 

prepared. All the assets and liabilities of Fertilizer Undertaking shall 

stand transferred to Transferee Company at the values appearing in the 

books of the De-merged Company as to be set forth in the restructured 

estimated Balance Sheet as on 1 st October, 2010 . 

7A. In addition to the above, the remaining amounts payable to the Banks 

and Financial Institutions (other then working capital of Rs 60 crores 

retained in remaining business) will also be transferred to KFCL to 

liquidate the dues of the Fertilizer Undertaking to the remaining 

business. . 

8. Upon the coming into effect of this Scheme, an amount representing the 

surplus of assets over the liabilities (including equity to be issued to the 

shareholders of the De-merged Company) of the De-merged 

Undertaking as on the Appointed Date shall be credited to the Reserves 

& Surplus account of the Transferee Company. In case, the liabilities 

(including Equity to be issued to the shareholders of the De-merged 

Company) of the De-merged Undertaking are more than the assets, then 

the excess of liability over the assets shall be debited to the Reserves & 

Surplus or shall be separately shown under the head Profit & Loss 

Account in the books of the Transferee Company . 

9. Any issue as to whether any asset or liability pertains to the De-merged 

Undertaking or not shall be jointly decided by the Boards of the Demerged 

Company and the Transferee Company either by themselves or 

through a Committee appointed by them in this behalf on the basis of 

evidence they may deem relevant (including the books and records of 

the De-merged Company). 

10. Transfer of Employees of De-merged Fertiliser Undertaking 

(a) 

With effect from the Appointed Date and upon the Scheme 

becoming effective, any and all permanent employees of DIL 

Fertilizer Undertaking (i.e., De-merged Undertaking) as on the 

122 --


Effective date shall become employees of Transferee Company, 

employed on such terms and conditions as may be agreed 

between the employees and the Transferee Company and without 

any break or interruption of service as provided in the 

Memorandum of Understanding dated 06.06.2010 entered into 

amongst the Transferor Company, Transferee Company and the 

IEL Employees Union (which is a recognized union of workmen of 

the De-merged Undertaking) ( Labour Agreement ). Further, 

notwithstanding anything to the contrary contained in any 

agreement or settlement executed by and between workers and 

management prior to the date of execution of the MOU dated 

06.06.2010 shall sand superseded by the said MOU. 

(b) 

Transferee Company shall undertake to abide by the terms and 

conditions of the Memorandum of Understanding dated 

06.06.2010 entered into with the workmen union and the terms 

and conditions thereof shall be applicable to all the workmen. 

11. Contracts, Deeds, Bonds and other Instruments 

(a) Upon coming into effect of this Scheme and subject to the 

provisions of this Scheme, all contracts, deeds, bonds, agreements, 

schemes, arrangements and other instruments of any nature 

whatsoever pertaining to the De-merged Undertaking to which the 

De-merged Company is a party or to the benefit of which the 

Transferee Company may be eligible and which are subsisting or 

having effect immediately before the Effective Date, as stated in 

Schedule-II, shall be in full force and effect on or against or in 

favour of, as the case may be, the Transferee Company and may 

be enforced as fully and effectively as if, instead of the De-merged 

Company, the Transferee Company had been a party or 

beneficiary or obligee thereto. 

(b) The Transferee Company shall, at any time, after the coming into 

effect of The scheme in accordance with the provisions hereof, if so 

required under any law or otherwise, execute deeds, confirmations 

or other writings or tripartite arrangements with any party to any 

contract or arrangement relating to the De-merged Undertaking to 

which the De-merged Company is a party, as stated in Schedule II, 

or any writing as may be necessary to execute and acceptable to 

the Transferee Company in order to give formal effect to the above 

provisions. 

123 --


12. Legal Proceedings 

(a) 

(b) 

(c) 

Other than the suits, proceedings, actions, appeals and the like which 

stand withdrawn/shall stand withdrawn under the terms of the Sanctioned 

Rehabilitation Scheme, or are otherwise dealt with in terms of the 

Sanctioned Rehabilitation Scheme, and other than any criminal 

prosecution, contempt proceedings against any employees with respect 

to the De-merged Undertaking, any director, senior executive of the Demerged 

Company, all suits, appeals, actions and proceedings of any 

nature whatsoever of the De-merged Company pending on or after the 

Appointed Date and relating to the De-merged Undertaking shall not 

abate, be discontinued or be in any way prejudicially affected by reason 

of the transfer of the De-merged Undertaking or anything contained in this 

Scheme, but the suit, appeal action or other proceedings may be 

continued, prosecuted or enforced by or against the Transferee 

Company in the same manner and to the same extent as they would or 

might have been continued, prosecuted and enforced by or against the 

De-merged Company as if this Scheme had not been made. 

If suits, appeals, actions or proceedings of any nature whatsoever are 

taken against the De-merged Company in respect of matters referred to 

above, the Transferee Company or both (as the case may be) shall 

defend the same and the Transferee Company shall indemnify and hold 

harmless the De-merged Company against all such suits, appeals, 

actions, proceedings and / or claims, demands, fines, penalties, losses, 

damages, costs, charges or expenses (including attorney s fees) 

whatsoever brought or made against, imposed on, incurred or suffered by 

the De-merged Company in connection with or in respect thereof. 

The Transferee Company shall undertake to have all suits, appeals, 

actions and other proceedings initiated by or against the De-merged 

Company in respect of matters abovementioned, transferred into its name 

and to have the same continued, prosecuted and enforced by or against 

the Transferee Company to the exclusion of the De-merged Company. 

13. Interim Arrangements 

With effect from the Appointed Date and up to and including the Effective Date: 

(a) 

(b) 

the De-merged Company shall carry on and be deemed to have been 

carrying on all business and activities of the De-merged Undertaking and 

shall stand possessed of all estates, assets, rights, title and interest of the 

De-merged Undertaking for and on account of and in trust for the 

Transferee Company; 

all profits accruing to the De-merged Company or losses arising or 

incurred by it (including taxes if any) relating to De-merged Undertaking 

shall, for all purposes, be treated as the profits, or losses as the case may 

be, of the Transferee Company . 

124 --


14. The De-merged Company hereby undertakes that it will, from the 

Appointed Date up to and including the Effective Date, preserve and 

carry on the business and activities of the De-merged Undertaking with 

reasonable diligence and prudence and agrees that it will not, without 

the prior written consent of the Transferee Company, alienate, charge or 

otherwise deal with or dispose of the De-merged Undertaking or any part 

thereof or recruit new employees (or conclude settlements with union or 

employees or undertake any new business or a substantial expansion of 

the existing business of the De-merged Undertaking other than as 

provided in the Sanctioned Rehabilitation Scheme relating to the Demerged 

Undertaking, for and on account of the Transferee Company. 

15. The transfer and vesting of the assets, liabilities and obligations of the 

De-merged Undertaking under Clauses 5 to 11 hereof and the 

continuance of suits, appeals, actions and proceedings by or against the 

Transferee Company under Clause 12 hereof, shall not affect any 

transactions or suit, appeal, action or proceedings by the De-merged 

Company. 

16. Remaining Business 

(a) The Remaining Business and all assets, liabilities and obligations 

relating thereto shall continue to belong to and vest in and be 

managed by the De-merged Company. 

(b) All suits, appeals, actions or other proceedings by or against the 

De-merged Company, whether pending on the Appointed Date or 

not, in respect of any matter arising before, on or after the Effective 

Date and relating or appertaining to the Remaining Business 

(including those relating to any property, right, power, liability, 

obligation or duties of the De-merged Company in respect of the 

Remaining Business) shall be continued, prosecuted and enforced 

by or against the De-merged Company. 

(c) 

The De-merged Company shall carry on and be deemed to have 

been carrying on all business and activities relating to the 

Remaining Business for and on its own behalf. 

(d) All profits accruing to the De-merged Company and losses arising or 

incurred by it (including the effect of taxes, inclusive of advance 

taxes paid, if any, thereon) relating to the Remaining Business 

shall, for all purposes, be treated as the profits or losses, as the 

case may be, of the De-merged Company. 

125 --


17. Reorganisation of Capital 

In view of the transfer and vesting of the De-merged Undertaking to and 

in the Transferee Company as an integral part of this Scheme, the 

capital of the De-merged Company and of the Transferee Company shall 

be reorganized and restructured in the manner set out below: 

(a) In consideration for the transfer and vesting of the De-merged 

Undertaking in the Transferee Company in terms of this Scheme, 

the Transferee Company shall, without any further payment, issue 

and allot to each equity shareholder of the De-merged Company, 

whose name is registered in the Register of Members of the Demerged 

Company on the Record Date, equity shares in the ratio of 

one equity shares of Rs 10/- each fully paid up at par for every 

forty equity shares of Re. 10/- each (post-reduction and 

consolidation) held by such member in the De-merged Company, 

and 

(b) The equity shares when issued and allotted by the Transferee 

Company in terms of this Scheme shall be subject to the 

Memorandum and Articles of Association of the Transferee 

Company. The shares to be allotted to the individual shareholders 

of the De-merged Company who would be entitled for equity shares 

less than 100, will be transferred to a person authorised on their 

behalf by the Board of Directors of the Transferee Company to hold 

in trust and sell the same to distribute the sale proceeds to those 

shareholders in the ratio of their respective shareholding. 

18. Dividends 

(a) The equity shares of the Transferee Company to be issued and 

allotted to the equity members of the De-merged Company as 

provided in Clause 17 hereof shall be entitled to dividends in 

respect of the financial year following from the Appointed Date. The 

holders of the shares of the De-merged Company and the 

Transferee Company shall, save as expressly provided otherwise in 

this Scheme, continue to enjoy their existing right under their 

respective Articles of Association including the right to receive 

dividends. 

(b) It is clarified that the aforesaid provisions in respect of declaration 

of dividends are enabling provisions only and shall not be deemed 

to confer any right on any member of the De-merged Company and 

/ or the Transferee Company to demand or claim any dividends 

126 --


which, subject to the provisions of the Companies Act, 1956 shall 

be entirely at the discretion of the respective Board of Directors of 

the De-merged Company and the Transferee Company and 

subject to the approval of the members of the De-merged Company 

and the Transferee Company respectively. 

19. Costs & Expenses 

The De-merged Company and the Transferee Company shall bear and 

pay their respective past, present and future costs, charges, levies, 

duties and expenses in connection with or incidental to this Scheme or 

the implementation thereof (including all costs, charges, levies, duties 

and expenses in relation to the issue of shares by the Transferee 

Company and all matters, related thereto and also including the 

aforesaid costs, charges, etc., in relation to the transfer and vesting of 

the De-merged Undertaking). 

PART-III 

GENERAL 

20. Scheme conditional on Sanctions / Approvals 

This Scheme is conditional upon and subject to 

(a) the sanction of the Hon ble BIFR under section 18 (4) of the Act 

being obtained. 

(b) certified copy of the Orders of the Hon ble BIFR sanctioning this 

Scheme being filed with the Registrar of Companies, West Bengal 

by the De-merged Company and with the Registrar of Companies, 

Kanpur, by the Transferee Co.. 

21. The transfer and vesting of De-merged Undertaking to and in the 

Transferee Company, in terms of this Scheme of Arrangement in 

accordance with the provisions of Section 18 (6A) and Section 18 (7) of 

SICA and / or this transfer shall be construed to be a De-merger 

pursuant to a scheme of arrangement under sections 391-394 of the 

Companies Act, 1956 for all legal, taxation, accounting and all other 

purposes. 

127 --


Schedule 

I 

Details of all Assets, Contracts, Rights, Title and Interest to be Transferred as 

a going concern to KFCL. 

A - SHORT PARTICULARS OF PROPERTIES 

(I) FREEHOLD LAND AND CHANDRALOK APARTMENT 

Area of Land 2759.00 Sqmt. 

Location Parbati Bagla Road, Kanpur 

Butted and bounded : 

North : By Bungalow of Raja Saheb of Bithoor 

South: Partly by Parbati Bagla Road & 

Partly by Elgin Mills Bungalow 

East: By remaining portion of premises no. 4/284, 

Parbati Bagla Road 

West: By Bungalow No 4/285, Parbati Balga Road 

Brief 

Seven storied apartment named as 'Chandralok', with 

description of ground floor as the garage space and 6 (six) stories above 

the Property each having four flats i.e. 24 (twenty four) residential flats 

designed and built with carpet area each of 1444 sft with 

common lift, single stair ways corridor for independent 

access to the flats. 

(II) FREEHOLD LAND AND CHANDRAKALA APARTMENT 

Area of Land 1106 sqmt together with undivided shares of 324 sqmt 

(approx) in areas 

Location 

Brief 

description of 

the Property 

56 Cantonment, Kanpur. 

Butted and bounded : 

North : By common Road b/t Blocks 6 and 7 

South: By Narohne Road 

East: By Main Common Road of Navsheel Apartment 

West: By Bungalow No 56 remaining portion 

Two storied apartment named as 'Chandrakala' with total 

constructed area of 10432.11 sft.- 1(one) self contained flat 

on Ground Floor and 3(three) self contained flats on First 

Floor and the terrace thereon. 

(III) 

LEASE HOLD LAND (999 Yrs) -- FACTORY PREMISES 

For the purpose of establishing and carrying on the Fertilizer Business, 3 

long term leases were granted by the Kanpur Nagar Mahapalika on 15 th 

May, 1967, 1 st February, 1968 and1 st February, 1968 for an aggregating 

extent of 270.9667 acres of land in Plot Nos. 2, 2B and 5 and situate in Block 

A, Panki Pandu Scheme No. 40 Kanpur for a period of nine hundred and 

128 --


ninety nine years effective from the dates there of. Fertilizer Factory 

occupies an area of 243.4387 acres equivalent to 9,85,159.50 sq. mts in the 

said Plot Nos. 2,2B and 5 and was transferred to Duncans Industries 

Limited ( earlier known as Chand Chhap Fertilizers And Chemicals Limited). 

Area of Land: 

Acres 

Plot No. 2 241.773 Bounded By: 

North : By 50ft Mahapalika's Strip of land and 

northern railways 

South: By 400 ft road and the boundary b/t 

Lessee and sub-lessee's portion of land 

East : By 160 ft road 

South East : By 150 ft road 

West : By 400 ft road and the boundary b/t 

Lessee and Sub-lessee's portion of land 

Bounded By: 

Plot No. 2B 1.0331 North: By Mahapalika's road (proposed) 

South: By Mahapalika's Road 

East: By Compound wall 

West: By proposed Road 

Bounded By: 

Plot No. 5 0.6330 North: By irrigation dept land (boundary of L.G. 

Canal) 

South: By Mahapalika's road 

East: By Mahapalika's road 

West: By Mahapalika's road 

Total Area 243.4387 

Location Block - A , Panki Pandu Scheme No. 40, Kanpur and is 

about 10 Km away from the heart of the city and 8 Km 

away from the Kanpur Railway Station. 

Brief 

description of 

the Property 

Building Structures built in accordance with the requirement 

of the Plant and other accessories supporting system. 

Necessary structures are either load bearing structures or 

framed structure with different type of roofing as per 

requirement of Plant with Roads, open yards boundary 

walls, etc. 

129 --


B - SHORT PARTICULAR OF PLANT & MACHINERY AND OTHER ASSETS 

Plant & Machinery relating to the Fertilizer Undertaking including as stated in the 

Register of Fixed Assets consisting of Ammonia manufacturing plants, Urea 

production plant viz. 3(three) identical streams of Urea Plants, captive power plants, 

Naphtha Vapourisers, reformers, ammonia converter, pollution control equipment, 

pipe lines, fittings, railway siding, tube wells, storage tanks, together with other 

moveable assets including air conditioners, stand by systems, data processing 

machines, air conditioning plants, furniture & fixtures, vehicles, locomotive engines 

etc. 

C - SHORT PARTICULARS OF TRADE MARKS 

TRADE MARK CLASS REGISTRATION 

NO 

(i) CHAND CHHAP UREA 1 904222 

(ii) CHAND CHHAP UREA (LABEL) 1 904223 

(iii) MAN DEVICE 1 904224 

(iv) CHAND CHHAP UREA (LABEL) 1 904225 

(v) MAN DEVICE CHAND CHACHA (LABEL) 1 907878 

130 --


Schedule 

II 

Contracts, Agreements, Rights of the Fertilizer Undertaking 

proposed to be transferred to the Transferee Co. 

Sl. 

No. 

Particulars of the 

Contracts / 

Agreements 

Date of 

Agreement 

Parties 

1. Naphtha Supply 

Agreement 

July 19, 1996 DIL & Indian Oil Corporation 

Limited 

2. Naphtha Supply 

Agreement 

October 24, 2005 DIL & Indian Oil Corporation 

Limited (IOC) 

3. Bus Service Contract July 8, 2005 DIL & M/s Aman Achint 

Carriers 

4. Bus Service Contract July 8, 2005 DIL & Mr. Raj Kumar Mishra, 

Thakur Traveling Agency 

5. Agreement for supply 

of Electrical Energy 

6. Supplemental Deed 

for Parallel Operation 

7. Railway Siding 

Agreement 

8. Water Supply 

Agreement 

9. Agreement for sale of 

boiler ash/ residue 

generated in CPP 

10. Agreement for 

unloading of coal 

from railway wagons 

11. Agreement for sale 

of carbon dioxide 

12. Agreement for 

Naphtha unloading 

13. Contract for internal 

handling of Urea 

14. Contract for internal 

handling of Urea. 

November 14, 

1985 

November 14, 

1985 

Indian Explosives Limited 

(Now DIL) & U.P. State 

Electricity Board (Board) 

Indian Explosives Limited 

(Now DIL) & U.P. State 

Electricity Board (Board) 

May 22, 1996 DIL & Northern Railway 

Administration 

April 19, 1996 DIL & Governor of U.P. for 

Irrigation Department 

July 14, 2005 DIL & Shri Jean Cargo & 

Movers 

July 14, 2005 

October 1, 2005 

August 3, 2005 

August 22, 2005 

September 30, 

2005 

DIL & Shri Jean Cargo & 

Movers 

DIL & Ken Tech Associates 

Private Limited 

DIL & A.K. Enterprises 

DIL & Singh General Works 

DIL & Bishamber Lal Arora 

131 --

BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION

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