Annual Report 2010-11

Annual Report 

2010-11 

KRISHAK BHARATI COOPERATIVE LIMITED

Annual Report 2010-11 

Shri B.D. Sinha, Managing Director receiving the first prize from FAI for its educational film on 'Soil Health Improvement 

& Farmers' Prosperity' from Shri M.K. Alagiri, Hon'ble Union Minister for Chemicals & Fertilisers. Other seen are 

Shri Srikant Jena, Hon'ble Union Minister of State for Chemicals & Fertilisers.

CONTENTS 

Performance Highlights 2 

Growth at a Glance 3 

Sources and Application of Funds 4 

Board of Directors 5 

Financials at a Glance 10 

Directors' Report 11 

Auditors' Report 34 

Financial Statements 35 

Cash Flow Statement 38 

1


PERFORMANCE HIGHLIGHTS 

Highest Ammonia Production 

(Previous best was 1128926 MT during 2005-06) 

1157905 MT 

Highest Urea Production 

(Previous best was 1806500 MT during 2005-06) 

1840856 MT 

Highest Argon Production 

(Previous best was 4244577 NM³ during 2008-09) 

5921616 NM³ 

Highest Seed Production 

(Previous best was 2.29 Lakh Qtls. during 2009-10) 

2.48 Lakh Qtls. 

Highest Seed Sales 

(Previous best was 2.22 Lakh Qtls. during 2009-10) 

2.47 Lakh Qtls. 

Highest Total Fertilizers Sale 

(Previous best was 40.51 Lakh MT during 2009-10) 

42.10 Lakh MT 

Highest KBSK Turnover 

(Previous best was ` 74.79 crore during 2009-10) 

` 114.46 Crore 

Highest Operational Profit of Traded Products 

(Previous best was ` 38.77 crore during 2009-10) 

` 80.98 Crore 

2

GROWTH AT A GLANCE 

( ` incrore) 

2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 

EARNINGS 

Sales 2,027.24 1,637.39 1,512.40 1,385.62 1,343.97 1,257.30 924.22 979.31 800.05 766.08 

Concession/Remuneration 

from Govt.of India 1,526.85 959.69 1,046.72 844.79 511.59 250.78 215.85 221.65 86.01 215.51 

Other Revenue 299.76 304.78 409.75 266.56 248.11 255.33 132.01 124.00 152.29 220.49 

Accretion/Decretion in 

Finished Goods 50.50 (38.20) (58.90) (36.77) 83.21 8.56 28.28 (25.79) (7.87) (12.57) 

OUTGOINGS 

3,904.35 2,863.66 2,909.97 2,460.20 2,186.88 1,771.97 1,300.36 1,299.17 1,030.48 1,189.51 

Raw Material, Packing, 

Stores, Power, Fuel, etc. 1,341.60 966.46 1,501.74 1,111.16 825.43 727.54 707.55 687.64 639.47 575.62 

Purchases - Fertilisers, 

Seeds & Chemicals 1,578.76 916.29 527.07 454.50 627.05 333.49 50.87 28.15 26.92 25.40 

Employees' Remuneration 

& Benefits 241.31 224.89 169.66 173.40 121.50 117.43 99.16 99.56 87.34 90.17 

Other Expenses (including 

Net Prior Period 462.71 467.45 404.25 420.89 362.27 293.91 234.48 243.55 214.96 230.37 

Income/Expenditure) 

Interest Expenses 19.23 5.18 10.38 5.32 1.47 2.30 2.78 0.86 2.26 0.15 

Depreciation 30.48 30.62 27.53 22.79 17.63 17.10 19.69 19.90 19.52 19.47 

3,674.09 2,610.89 2,640.63 2,188.06 1,955.35 1,491.77 1,114.53 1,079.66 990.47 941.18 

PROFIT BEFORE TAX 

230.26 252.77 269.34 272.14 231.53 280.20 185.83 219.51 40.01 248.33 

Provision for Taxation ( Net ) 29.71 24.60 19.21 62.94 38.29 87.75 45.24 66.81 6.00 61.00 

PROFIT AFTER TAX 

200.55 228.17 250.13 209.20 193.24 192.45 140.59 152.70 34.01 187.33 

Amount Utilised from 

Div.Equalisation Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (12.83) 0.00 

Dividend Payout 69.29 77.67 71.28 79.20 78.91 78.47 74.50 88.33 34.39 97.92 

Contribution to Cooperative 

Education Fund 2.00 2.28 2.47 1.84 1.78 1.67 1.24 1.38 0.34 1.87 

Donations 0.40 0.40 0.40 0.40 0.25 0.26 1.15 0.15 0.15 0.15 

RETAINED PROFIT 

128.86 147.82 175.98 127.76 112.30 112.05 63.70 62.84 11.96 87.39 

3


SOURCES AND APPLICATION OF FUNDS 

( ` incrore) 

2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 

SOURCES 

Share Capital and Application 

Money 390.23 390.67 390.74 396.08 396.11 394.67 393.59 491.82 493.11 490.01 

Reserves and Surplus 2,435.33 2,306.46 2,158.68 1,982.43 1,891.41 1,779.02 1,666.76 1,602.99 1,578.81 1,579.68 

Net Worth 

2,825.56 2,697.13 2,549.42 2,378.51 2,287.52 2,173.69 2,060.35 2,094.81 2,071.92 2,069.69 

Secured Loan from Bank 30.23 0.23 0.23 0.76 0.41 

Unsecured Loan from Bank 264.19 0.00 91.91 223.96 

Deferred Tax Balance 22.50 16.63 5.03 0.00 24.61 30.32 35.07 37.42 0.00 0.00 

FUNDS EMPLOYED 3,142.48 2,713.99 2,646.59 2,603.23 2,312.54 2,204.01 2,095.42 2,132.23 2,071.92 2,069.69 

APPLICATION 

Fixed Assets 

Gross Block(including capital 

work in progress) 2,112.33 1,395.36 1,264.13 1,231.58 1,115.10 1,053.69 1,041.26 1,035.42 1,029.84 1,032.34 

Less: Depreciation 925.76 896.91 881.17 856.29 844.77 829.11 813.70 795.42 775.87 757.24 

Net Block (A) 1,186.57 498.45 382.96 375.29 270.33 224.58 227.56 240.00 253.97 275.10 

Investments ( B ) 1,355.57 1,406.45 1,203.42 870.56 807.56 855.67 455.64 455.69 288.47 154.91 

Deferred Tax assets (C) 0.00 0.00 0.00 4.18 

Working Capital: 

Current Assets 1,205.20 1,355.14 1,567.97 1,851.78 1,577.00 1,421.00 1,712.05 1,786.48 1,741.98 1,936.47 

Less: Current Liabilities and 

Provisions 604.86 546.05 507.76 498.58 342.35 297.24 299.83 349.94 212.50 296.79 

Net Working Capital (D) 600.34 809.09 1,060.21 1,353.20 1,234.65 1,123.76 1,412.22 1,436.54 1,529.48 1,639.68 

NET ASSETS EMPLOYED 3,142.48 2,713.99 2,646.59 2,603.23 2,312.54 2,204.01 2,095.42 2,132.23 2,071.92 2,069.69 

(A+B+C+D) 

SIGNIFICANT FINANCIAL RATIOS 

(RATIOS AFTER APPROPRIATION) 

2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 

Return on Average Capital Employed (%) 5.35 7.60 1.33 9.69 8.38 17.57 

Profit to Average Net Worth (%) 8.34 9.64 10.93 11.66 10.38 13.24 

Current Ratio 1.99 2.75 3.61 3.71 4.61 4.78 

Quick Ratio 1.65 2.49 3.19 3.28 3.87 4.27 

Working Capital in terms of Cash Cost of Production (Months) 1.98 3.76 5.21 7.50 7.65 9.14 

Sundry Debtors to Sales (Months) 1.48 0.93 1.93 3.34 1.32 1.52 

Inventory of Finished Goods to Sales (Months) 0.21 0.06 0.24 0.59 1.32 0.61 

Debt Equity Ratio 0.75:1 0:1 0:1 0:1 0:1 0:1 

4

As on March 31, 2011 

BOARD OF DIRECTORS 

CHAIRMAN 

Shri Vaghjibhai Rugnathbhai Patel 

VICE–CHAIRMAN 

Shri Chandra Pal Singh 

DIRECTORS 

Dr. Bijender Singh 

Shri V. Sudhakar Chowdary 

Dr. Sunil Kumar Singh 

Smt. Shailajadevi D. Nikam 

Shri Pareshbhai R. Patel 

Shri Bhanwar Singh Shekhawat 

Dr. V. Rajagopalan 

Shri Deepak Singhal 

Shri Ponnam Prabhakar 

Shri Bhikhajibhai Zaberbhai Patel 

MANAGING DIRECTOR 

Shri B.D. Sinha 

FINANCE DIRECTOR 

Shri R. Kamra 

MARKETING DIRECTOR 

Shri N. Sambasiva Rao 

OPERATIONS DIRECTOR 

Shri S. Jaggia 

5


BOARD OF DIRECTORS 


Shri V. R. Patel 

Chairman 


Vice-Chairman 

Dr. Bijender Singh Shri V. S. Chowdary Dr. Sunil Kumar Singh Smt. Shailajadevi D. Nikam Shri Pareshbhai R. Patel 

Shri B. S. Shekhawat Dr. V. Rajagopalan Shri Deepak Singhal Shri Ponnam Prabhakar Shri Bhikhajibhai Z. Patel 

Shri B. D. Sinha Shri R. Kamra Shri N. Sambasiva Rao Shri S. Jaggia 

6

EX - CHAIRMEN 


July 1999 - May 2010 

EX-MANAGING DIRECTORS 

June 1986-May 1990 

September 1991-January 1992 

7


EXECUTIVES 


CHIEF VIGILANCE OFFICER 

EXECUTIVE DIRECTORS 

Shri A.K. Gupta, IAS 

Shri C. P. Singh 

Shri Amar Prasad 

GENERAL MANAGERS 

ShriB.Prasad 

Shri S.K. Garg 

General Manager (Port Opns.) General Manager ( F&A) 

General Manager (F&A) 

Shri V.B. Gaur 

General Manager (Maint.) 

Shri D.B. Shah 

General Manager (Commr.) 

Shri M.K. Shah 

General Manager (Proj.) 

Shri J.K. Mathur 

General Manager (F&A) 

ADDITIONAL GENERAL MANAGERS 

Shri H.P. Kataria 

Addl. GM (Proj.) 

Shri A.S. Awwal 

Addl. GM (Proj.) 

Shri S.B. Mehta 

Addl. GM (Mech.) 

Shri A.K. Gupta 

Addl. GM (F&S) 

Shri G. H. Soni 

Addl. GM (Inst.) 

Shri S. U. Chaudhari 

Addl. GM (Mtls.) 

Shri M.D. Thakkar 

Addl. GM (Civil) 

Shri M. Pailoor 

Addl. GM (MS) 

Shri A.A. Shah 

Addl. GM (F&A) 

Shri P.K. Mathew 

Addl. GM (F&A) 

Dr. W.S. Guleria 

Addl. GM (MS) 

8

EXECUTIVES 


CORPORATE OFFICE 

Shri Deepak Kushwaha 

Dy. General Manager (MIS) 

Shri G.P. Rao 

Dy. General Manager (F&A) 

Shri G.S. Pearlson 


Shri A.K. Singh 

Dy. General Manager (MS) 

Shri Virendra Singh 

Dy. General Manager (Mtls.) 

Shri Anand Padalia 

Dy. General Manager (HR) 

Shri M.C. Bansal 


HAZIRA COMPLEX 

Shri Jasbir Singh 

Dy. General Manager (Tptn.) 

Shri C. Venkateswarulu 

Dy. General Manager (Elect.) 

Shri A.K. Nayak 

Dy. General Manager (Mech.) 

Shri S.R. Ahmed 

Dy. General Manager (Prodn.) 

Shri N K Gurjar 


Shri U.C. Sharma 


Shri R.N. Shah 

Dy. General Manager (Civil) 

Shri H.B. Trivedi 


Shri B.M. Rao 


Shri S L Pandya 

Dy. General Manager (Proj.) 

Shri Kuldeep Singh 


Dr. S.R. Poundarik 

Chief Medical Officer 

Shri S.B. Neogi 


Shri J. P. Verma 


Shri Rishipal Singh 


Shri J.P. Patel 


Shri A.S. Singh 


Shri R L Shukla 

Dy. General Manager (Proj.) 

Shri S. Banerjee 


Shri J J Dalwadi 

Dy. General Manager (Inst.) 

Shri B. Mitra 


Shri B.R. Patel 


Shri D.K. Mandal 

Dy. General Manager (Tech.) 

Shri K. Srihari 


Shri C J Shah 


Shri M.R. Sharma 


Shri K.M. Patel 


Shri I.A. Khan 


Shri R K Tiwari 


Shri P S Gandhi 


Shri A.B. De 


Shri V.K. Sareen 


Shri Amarjeet Singh 

Dy. General Manager (Trg.) 

Shri V K Singh 


Shri Raveen Nagi 

Dy. General Manager (MS) 

Shri A. K. Das 


Shri N. K. Gupta 


Shri S.S. Johar 


Shri G Srinavas 


MARKETING DIVISION 

Shri R.K. Jain 

Dy. General Manager (Mktg.) 

Shri S.S. Khare 


Shri J.S. Sandhu 


Shri R.K. Bansal 


Dr. S. Maheshwari 


Shri M.S. Rathore 


Shri A.K. Gupta 


JOINT STATUTORY AUDITORS 

M/s G. S. Mathur & Co. 

Chartered Accountants 

A-160 Defence Colony, 

New Delhi - 110024 

M/sS.K.Mehta&Co. 


2682/2, Beadon Pura, 

Ajmal Khan Market, Karol Bagh, 

New Delhi-110005 

M/s G. K. Choksi & Co. 


Madhuban, Near Madalpur 

underbridge, Ellisbridge, 

Ahmedabad - 380006 

MAIN BANKERS 

ICICI Bank Ltd. 

Indian Overseas Bank 

Axis Bank 

HDFC Bank Ltd. 

State Bank of India 

State Bank of Patiala 

REGISTERED OFFICE 

Red Rose House, 

49-50, Nehru Place, 

New Delhi-110019 


KRIBHCO Bhawan, 

A8-10, Sector-1, NOIDA-201 301, 

Distt. Gautam Budh Nagar (U.P.) 

PLANT OFFICE 

P.O.KRIBHCO Nagar, 

Distt. Surat-394 515, 

Gujarat 

9


FINANCIALS AT A GLANCE 

3000 

2500 

2000 

2,549.42 

2,158.68 

NET WORTH 

2,697.13 

2,306.46 

( ` incrore) 

2,825.56 

2,435.33 

300.00 

250.00 

200.00 

269.34 

250.13 

PROFIT 

252.77 

228.17 

230.26 

( ` incrore) 

200.55 

1500 

150.00 

1000 

100.00 

500 

390.74 

390.67 

390.23 

50.00 

31.03.2009 31.03.2010 31.03.2011 

2008 - 2009 2009 - 2010 2010 - 2011 

EQUITY RESERVES NET WORTH 

PROFIT BEFORE TAX 


SOURCES OF INCOME 

for the year ended 31.03.2011 

350.26 (9%) 

( ` in crore) 

1,526.85 (39%) 

2,027.24 (52%) 

SALES (NET) CONCESSION / REMUNERATION FROM GOVT. OF INDIA OTHER REVENUE 

DISTRIBUTION OF INCOME 

for the year ended 31.03.2011 ( ` incrore) 

481.94 (12%) 

241.31(6%) 

30.48 (1%) 

29.71 (1%) 

200.55 (5%) 

1341.60 (34%) 

1578.76 (41%) 

CONSUMPTION - MATERIALS & STORES 

PURCHASES - SEEDS, CHEMICALS & OTHER FERTILISERS 

EMPLOYEES REMUNERATION AND BENEFITS EXPENSES - MANUFACTURING, ADMINISTRATION, 

DEPRECIATION 

DISTRIBUTION & INTEREST 


TAXATION (NET) 

10

DIRECTORS' REPORT 

Dear Cooperators, 

The year 2010-2011, has been particularly good 

for Indian Agriculture due to favourable weather 

conditions in most parts of the country. The country is 

expected to reap record food grains production of 

over 241 million tonnes for the year. The year also 

marked important initiative in fertilizer sector on 

introduction of several pragmatic policy initiatives 

especially the Nutrient Based Subsidy (NBS). 

There was an overall improvement in the 

availability of various fertilizer products. In near 

future several other positive policy initiatives for 

accelerating the growth of domestic urea industry 

are also expected. 

In this scenario, Your Directors have pleasure to 

present Thirty first Annual Report together with 

Audited Accounts of your Society for the Financial 

Year 2010-2011. 

The Society endeavored to accomplish its goal 

with Participatory Planning and Strategic Management 

for fulfilling the aspirations of all stakeholders. 

Several milestones have been achieved 

such as all time high sales record, increased 

production, dedicated services to farming 

community etc. Your Society has maintained its 

unique position on marketing front by selling 

42.10 Lakh MT of total fertilizers during the year 

2010-2011, which is the highest ever sales of 

fertilizers achieved by the Society. The product 

basket has been enlarged by adding DAP, Hybrid 

Seeds, Compost, and Liquid bio-fertilizers, which 

has yielded positive contribution. 

Shri Chandra Pal Singh, the then Chairman KRIBHCO addressing the delegates of the Society in the 30 

Body Meeting. Sitting on the dias are the Board of Directors and other dignitaries. 

th 

Annual General 

11


Board of Directors visiting KRIBHCO Jetty at Hazira, Surat. 

2. FINANCIAL PERFORMANCE 

Your society has achieved good financial results 

for the Financial Year 2010-2011. The Society has 

posted Pre-Tax Profit of `230.26 crore during the year 

and Profit after Tax is `200.55 crore. The net worth of 

the Society has increased from `2697.13 crore to 

`2825.56 crore as on March 31, 2011. The financial 

results of the Society for the year are summarized 

hereunder: 

( ` in crore) 

TABLE -1 2010-2011 2009-2010 

Sales including 3554.09 2597.07 

subsidies 

Other Revenue 299.76 304.78 

Increase/(Decrease) in Stock 50.50 (38.19) 

Income 3904.35 2863.66 

Profit before Tax 230.26 252.77 

Provision for Taxation(Net) 29.71 24.60 

Profit after Tax 200.55 228.17 

3. FOREIGN EXCHANGE RISK 

MANAGEMENT 

During the year, the huge import of phosphatic 

fertilisers and capital goods for Revamp involved 

payments in foreign currency. The Society managed its 

foreign currency payments competitively by availing 

buyers credit and entering into forward contracts for 

hedging the foreign exchange exposure. The Exchange 

Risk management resulted in earning a profit of 

approximately `21 crore during the year. 

4. APPROPRIATIONS 

Contribution towards Capital Repatriation 

Fund of `0.40 crore is reduced from the Profit after Tax 

for the purpose of arriving at the Net Profit in 

accordance with provisions of Section 62 of the Multi- 

State Cooperative Societies (MSCS) Act 2002. 

Accordingly, the Net Allocable Profit works out to 

`200.15 crore, which has been proposed for 

appropriation as under: 

12

Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO addressing KRIBHCO employees during the felicitation 

function at Hazira Plant. Shri B.D. Sinha, Managing Director; Shri N. Sambasiva Rao, Marketing Director; 

Shri R. Kamra, Finance Director; Dr. Bijender Singh, Director; Shri Bhikhajibhai Zaberbhai Patel, Director and 

Shri S. Jaggia, Operations Director KRIBHCO are also seen. 

TABLE-2 2010-2011 2009-2010 

Net profit as per the 200.15 228.03 

MSCS Act 2002 

Appropriations 

Reserve Fund as per 50.04 57.01 

Bye-Law 58(i) of the 

Society 

Provision for 2.00 2.28 

Cooperative 

Education Fund 

Reserve Fund for 20.01 22.80 

Contingency 

Reserve for 0.40 0.40 

donations 

( ` incrore) 

Proposed Dividend 69.29 141.74 77.67 160.16 

@20% 

Balance transferred 58.41 67.87 

to General Reserve 

5. DIVIDEND 

Hon'ble Members will be pleased to know that 

the Board of Directors of your Society have recommended 

for the seventh consecutive year, the maximum 

permissible dividend of 20% on the paid-up share 

capital. 

The proposed dividend would be paid on pro-rata 

basis to the eligible shareholders whose names stood 

in the Membership Register of the Society as on March 

31, 2011. Accordingly, the amount of proposed dividend 

outgo will be `69.29 crore. 

60.00 

50.00 

40.00 

30.00 

20.00 

10.00 

39.46 

31.82 

DIVIDEND PAYOUT 

2008-2009 (20%) 2009-2010 (20%) 2010-2011 (20%) 

GOI 

39.89 

37.78 

OTHERS 

( ` incrore) 

48.99 

20.30 

13


KRIBHCO Township children showing their talent by performing dance programme during Independence Day 

celebrations at Hazira Plant. 

6. MEMBERSHIP AND SHARE CAPITAL 

A cooperative thrives on the trust of its members. 

The total membership in KRIBHCO as on March 31, 

2011 was 7356 cooperative societies, institutions and 

Government of India, as against 6546 on March 31, 

2010. Phenomenal progress made by the Society 

bears testimony of increasing faith reposed in the 

Society. This has resulted in increasing membership 

over the years. The paid up share capital of the Society 

was `390.18 crore as on March 31, 2011. 

7. PRODUCTION PERFORMANCE 

The year being the 25th year of commercial 

operation, Plant achieved highly commendable performance 

creating 31 new records during the Financial 

Year 2010-2011. The highest ever yearly production of 

18.41 Lakh MT of Urea and 11.58 Lakh MT of Ammonia 

were achieved which corresponds to a capacity 

utilisation of 106.5% and 115.4% respectively, breaking 

the previous highest production records achieved 

during the financial year 2005-2006. 

The cumulative Urea and Ammonia production 

achieved since inception has been 41.78 million MT 

and 25.49 million MT respectively as on March 31, 

2011. The Urea despatch from the plant during the 

Financial Year 2010-2011 was 18.41 Lakh MT which is 

the highest record achieved so far. 

The record production of Argon of 5921.62 

thousand NM³ was achieved during the year. Also 

several records were achieved in Bio-Fertiliser 

production and despatch. 

• PRODUCTION PLAN 2011-2012 

The production plan target for the Financial Year 

2011-2012 has been 17.30 Lakh MT of Urea and 10.31 

Lakh MT of Ammonia. The targets have been fixed considering 

the expected shutdown of plants for Revamp jobs. 

CAP UTLN (%) 

KRIBHCO AMMONIA & UREA CAPACITY UTILISATION 

120 

115 

110 

105 

100 

95 

90 

108.11 

100.83 

110.65 

102.94 

115.42 

106.46 

2008-2009 2009-2010 2010-2011 

YEARS 

AMMONIA UREA 

14

8. SCHEMES IMPLEMENTED, UNDER 

IMPLEMENTATION & TO BE IMPLEMENTED 

• Revamp Project 

The revamp of existing Ammonia and Urea Plants 

at Hazira is under progress. On completion of revamp, 

the production capacity of the plants will increase 

from 17.29 Lakh MT to 21.94 Lakh MT of Urea per 

annum i.e. an increase of 4.65 Lakh MT Urea annually. 

The total estimated cost of revamp is `1301 crore. 

Apart from the increase in production capacities there 

will be considerable savings in energy, resulting into 

lower production costs. The project work is in progress 

and many of the major equipments have already 

arrived at Plant. 

• New Gas Turbine based Power Plant 

The Society is in the process of setting up a new 

gas turbine based Captive Power Plant of 72 MW 

capacity at estimated cost of approximately `400 crore 

to meet requirement of additional power after revamp. 

Surplus power will be sold in the open market. 

• Use of Cooling Tower Blow Down water 

for Township Horticulture 

CT blow down water, which is currently used for 

horticulture purposes around Administration Building 

Lawns in Plant, is proposed to be extended for use for 

Township Horticulture by laying around 2500 meters 

of 10'' HDPE Header at a cost of `60 Lakh with proper 

isolation for the existing header from drinking water 

network. This will help in using 1500 M³ CT blow down 

water which is otherwise discharged in Balancing 

Pond, thus saving cost on costly drinking water. The 

scheme is under implementation. 

• Jetty at Hazira 

The Society has revived the Jetty at Hazira to 

handle part of OMIFCO Urea in view of better rail/road 

connectivity for evacuation of the material at a total 

cost of ` 34.03 Crore. Jetty has become operational 

since December 2010. 

The first consignment of OMIFCO Urea arrived at 

Jetty on 29th December, 2010. Till end April, 2011 we 

have handled 80,905 MT of imported Urea from 

OMIFCO at this Jetty. 

• Construction of Building for Registered 

Office 

The Society has commenced the construction of 

building for Registered Office at the land acquired in 

New Delhi. 

• Zinc Sulphate Project 

Zinc is a vital micronutrient for plant. There is 

growing demand for Zinc fertilisers in the country as 

Indian soils are almost 50% zinc deficient. Zinc 

Sulphate Monohydrate is a preferred composition by 

farmers due to non-caking, free flowing nature and 

higher zinc percentage. As there is ample opportunity 

in terms of growing demand and your Society is 

exploring the possibilities for setting up of plant for 

production of Zinc Sulphate Monohydrate. 

• Hazira Expansion Project 

Your Society is exploring the possibilities for 

setting up another mega Ammonia-Urea Plant at its 

existing fertilizer complex at Hazira. Environmental 

Clearance has already been received from Ministry of 

Environment and Forest. The Society has already 

approached Department of Fertilizers/Ministry of 

Petroleum and Natural Gas for allocation of Natural 

Gas on long term basis. The Society will initiate actions 

to set up Hazira Expansion Project after allocation of 

Natural Gas and availability of conducive policy for 

investment. 

9. SAFETY MANAGEMENT 

The safety setup of KRIBHCO Hazira Plant has 

been established with a vision to achieve its slogan of 

"SAFETY FIRST- PRODUCTION MUST." Safety management 

involves creation of safe, efficient and pleasant 

working environment in the plant, continual 

enrichment of safety culture of the plant, high level of 

emergency preparedness at all the time and 

extending support to the neighbouring villages, 

industries and Government agencies in case urgent 

need for any emergency mitigation beyond plant 

boundaries. 

State of the art safety systems and infrastructures 

have been set up, which are audited by the internal 

safety committees as well as by the external experts 

15


Shri Chandra Pal Singh, Vice Chairman KRIBHCO inaugurating warehouse at KRIBHCO Jetty Hazira. Other dignitaries in 

the picture are Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO; Shri B.D. Sinha, Managing Director; 

and other Board of Directors. 

under the OHSAS implementation programme, apart 

from a comprehensive risk assessment study of the 

entire fertilizer complex undertaken through an 

external specialist agency. 

Safety training and awareness is given top 

priority. During the year, not a single dangerous 

occurrence took place. Your Society also received 

around 20 requests from Government agencies for 

rendering emergency services in neighbouring areas 

which were honoured. An off-site mock drill was 

conducted jointly by the District Administration and 

KRIBHCO to test the emergency preparedness of 

various Government institutions and neighbouring 

industries. 

10. ENVIRONMENTAL PROTECTION 

Care for environment has always been of 

paramount importance for the Society. Your Society 

recognizes its responsibility to protect environment 

and is committed to regulate all its activities using best 

available technology to mitigate adverse environmental 

impact, if any that may arise out of its operations. 

A comprehensive environmental protection 

plan based on principle of "Reduce, Re-cycle & Re- 

use" has been adopted to conserve scarce natural 

resources. 

Various treatment schemes have been implemented 

since commissioning of the plant, which have 

resulted in reduction of water consumption by 

approximately 40%, and achieved Zero effluent 

discharge from final outlet. Efforts are being made to 

further reduce water consumption. Tertiary treated 

sewage water is being used as cooling water make up. 

Deep hydrolyser is installed in the Urea plant to reuse 

the effluent as boiler feed water after treatment. 

Emission of pollutants to air from the various 

stacks is far below the limits specified by regulatory 

bodies. Six ambient air quality monitoring stations 

have been set up within a radius of 10 km for periodic 

monitoring of air quality in surrounding area. 

Wet de-dusting system at Prilling tower top has 

been installed and emission of the Urea dust and 

Ammonia in the atmosphere is well below the 

specified limits. 

To ensure clean and green environment, the 

Society has created a green belt by planting more than 

one lakh trees of different species based on Air 

Pollution Tolerance Index. Thus helping to improve the 

16

ambient air quality within the complex. Lush green 

lawns are also developed and maintained in an area of 

100 acres. A demonstration farm in an area of 41 

acres has been developed. 

Integrated Management System (IMS) of the 

Society has been certified as in-line with international 

standard ISO 14001 and OHSAS 18001. The proactive 

steps ensure that the Society conforms to regulations 

governing emission and other environmental 

considerations. Internal and External Audits are 

conducted periodically for checking efficacy of the 

system which has expressed satisfaction with the 

environmental procedure compliance. 

11. FERTILIZER POLICY 

During the year 2010-2011, the NBS Policy was 

successfully implemented for all fertilisers except urea 

and was well received by all the stakeholders. The 

stage-III of New Pricing Scheme (NPS), applicable to 

the indigenous urea industry was effective up to 

March 31, 2010. This scheme has been extended until 

the new policy for urea industry is introduced. The 

new policy for urea is under active consideration of 

Government of India. Under the proposed policy, gas 

based urea manufacturers are likely to get fixed 

subsidy PMT of urea produced. Gas price pooling up 

to "cut off quantity" is also proposed under this new 

policy. The Society hopes that this policy will be a step 

towards the NBS. 

Amendments in the policy for new investments in 

urea sector dated September 4, 2008 is also under 

active consideration of Government of India. The 

Society is hopeful that the new policy of investments 

would be advantageous so as to attract investments in 

fertilizer industry. 

the country as a whole received 2% more rainfall 

during South West Monsoon (June-Sept.2010) and 

21% above normal rainfall during Post-Monsoon 

Season (October-December 2010). This created 

favourable conditions for Agriculture operations in 

most parts of the country barring Bihar, Eastern U.P, 

Orissa and Chhattisgarh. 

As per the latest estimate of Agriculture Ministry, 

total food grains production in the country may be 

around 241.58 million tonnes during 2010-2011 as 

against 218.20 million tonnes of last year. 

12.2 Marketing Infrastructure 

Marketing channel of KRIBHCO includes 

Cooperative Apex Federations, Institutional Agencies 

and Grass Root Level Primary Agriculture Societies. 

The Society's cooperative development programmes 

help its channel partners, especially PACS to acquire 

marketing skills and other agriculture practices for 

inclusive development of the cooperatives. The direct 

supplies to Primary Agricultural Cooperative Society 

(PACS) help these societies immensely as the timely 

supplies enable them to increase fertilizer 

consumption and agriculture productivity as well as to 

draw maximum financial benefits. 

Your Society's commitment towards farming 

community for providing quality services has paid rich 

dividend in terms of strong Brand image for its 

products. The interdisciplinary team of marketing and 

extension experts spread all over the major States 

20.00 

KRIBHCO UREA SALES 

18.11 18.00 

18.40 

12. MARKETING 

12.1 Overall Agricultural Scenario 

Rainfall was fairly good mainly due to near 

normal rains during South-West and Post Monsoon 

seasons. In comparison to Long Period Average (LPA) 

rainfall, the country as a whole received 44% less 

rainfall during winter (Jan-Feb, 2010) and 11% less 

during pre-monsoon (March-May, 2010). However, 

(QTY. LAKH MT) 

15.00 

10.00 

5.00 

0.00 


YEARS 

17


have worked extensively to reach farming community 

in all crop production systems. The Society has pan 

India presence. KRIBHCO Urea is an established brand 

in the key market territories across the length and 

breadth of the country. The major marketing territory 

consists of Andhra Pradesh, Bihar, Chhattisgarh, 

Gujarat, Haryana, Jharkhand, Karnataka, Kerala, 

Madhya Pradesh, Maharashtra, Orissa, Puducherry, 

Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, 

Uttrakhand and West Bengal 

(QTY. LAKH MT) 

40.00 

30.00 

20.00 

10.00 

0.00 

TOTAL UREA SALES 

37.76 

38.47 

38.23 


YEARS 

12.3 Marketing Business Plan 

An initiative has been taken to develop Marketing 

Business Plan for the whole year with "Participatory 

Approach" involving key marketing officials, keeping 

into view Financial, Process, Customer and Capacity 

Building Perspectives. The Business Plan exercise 

involved all field force in understanding the issues and 

challenges which resulted in enhanced performance. 

Similar exercise is being done in 2011-2012. 

While preparing the business plan, attempt has 

been made to analyse the impact of environmental 

factors like Agricultural and Fertilisers scenario of the 

country, likely policy environment, situational analysis 

of individual products, future thrust areas and 

resources have been taken into consideration. 

12.4 Infrastructure at Ports 

Development of own infrastructure at various 

ports is considered essential to add efficiency in 

operations. In this direction, the Society completed 

the construction of another warehousing complex 

with storage capacity of 15000 MT, at Tuticorin port 

with bagging capacity of 4000 MT per day. 

The Society's Jetty at Hazira became operational 

during the year 2010-2011. The facility at Jetty 

includes a warehouse for storage of 15000 MT 

imported fertilizers and a conveyor belt from Jetty to 

warehouse. 

12.5. Handling of Imported Fertilisers 

• OMIFCO Urea 

The Society successfully completed the 6th 

consecutive year of Handling and Marketing of 

OMIFCO urea under the agreement with Department 

of Fertilizers, Government of India. During the year 

2010-2011, the Society imported a record quantity of 

10.62 Lakh MT granular urea from OMIFCO, Oman in 

33 vessels. This Urea was handled at 9 Indian ports i.e. 

Visakhapatnam, Kakinada Deep Water, Krishnapatnam, 

Chennai, Tuticorin, New Mangalore, 

Magdalla (Hazira Jetty), Mundra and Kandla Ports. The 

Society has so far, imported 55.45 Lakh MT OMIFCO 

Urea in 186 vessels since inception of imports from 

OMIFCO, Oman. 

The overall physical and financial performance on 

handling of OMIFCO Urea has improved during the 

year and there has been a significant positive 

contribution on this account. This could be achieved 

mainly by way of judicious despatches, checking cargo 

loss, close monitoring and prompt sales and 

realisation. 

12.6 Import of DAP 

During the year 2010-2011, the Society also 

imported and handled 12 vessels containing 3.87Lakh 

MT DAP at Viskhapatnam, Kakinada, Krishnapatnam, 

Tuticorin and Mundra Ports. The entire quantity of 

imported DAP was marketed through Society's own 

marketing network. The import and marketing of DAP 

has also made a significant contribution to the 

Society's profit. 

12.7 Sales and Distribution 

• Urea 

The Business plan and close monitoring 

18

KRIL container being handled. 

facilitated the Society to make timely despatches of its 

Urea, as per ECA and for de-regulated quantity from 

Plant site to various destinations. Depending upon 

the Movement Order and Supply Plan, the Society 

despatched the material by optimizing the Rail and 

Road mix. During the year, a quantity of 18.41 Lakh 

MT of own urea was despatched to different 

destinations in 12 States. 

The Society has sold 18.40 Lakh MT of KRIBHCO 

Urea, 9.54 Lakh MT of OMIFCO urea and 10.29 Lakh 

MT of KSFL Urea during the year. 

The entire imported OMIFCO urea during 2010- 

11 was allocated under ECA and marketed throughout 

the country i.e. in the states of Gujarat, Rajasthan, 

Punjab, Haryana, Uttar Pradesh, Bihar, West Bengal, 

Madhya Pradesh, Andhra Pradesh, Puducherry, Tamil 

Nadu, Kerala, Karnataka and Maharashtra. 

• DAP 

In order to promote balanced fertilization, the 

Society further strengthened its product range to 

cover DAP. The Society sold 3.87 Lakh MT of Imported 

DAP as against 1.14 Lakh MT in the previous year. 

The Society has made significant achievements 

on marketing fronts and has achieved the highest ever 

sales of fertilizers of 42.10 Lakh MT during the year 

2010-2011. 

• Other Products 

Apart from Urea, the Society also sold 99917 MT 

of Surplus Ammonia during 2010-2011 as against 

83900 MT in the previous year. The Society has also 

sold 59,04,774 NM³ Liquid Argon in the year 2010- 

2011 and the cumulative total quantity sold is 

1,47,13,653 NM³ since commencement of Argon 

Plant unit in year 2007-2008. 

12.8 Plan for Import of Fertilisers 2011-2012 

During the year 2011-2012, the Society plans to 

import 50% of OMIFCO Urea produced apart from 

importing DAP/MOP/Complex fertilizers. It is 

expected that with optimum utilization of the 

infrastructure developed by the Society at 

Visakhapatnam, Tuticorin Ports and Hazira Jetty, the 

efficiency will improve further thereby having more 

positive impact on Society's profitability. 

19


12.9 Seed Multiplication Programme and 

Marketing of Hybrid Seeds 

• Certified Seeds 

Seed is one of the major inputs in increasing 

agriculture production. Timely availability of seed 

in adequate quantity at consuming point at 

affordable price is essential to increase foodgrains 

production. 

Your Society initiated seed production 

programme in 1990-1991 to provide quality 

certified seeds of main crops to the farmers. 

Encouraging response of farmers towards KRIBHCO 

seeds inspired us to increase the seed production 

activity. The Society has produced 2,48,015 quintals 

in 2010-11. The seeds produced were made 

available to the farmers through Krishak Bharati 

Sewa Kendras, Co-operative Societies and State Cooperative 

Marketing Federations in the state of 

Gujarat, Haryana, Madhya Pradesh, Punjab, 

Rajasthan and Uttar Pradesh. The main crops under 

seed production are:- Cereals- Paddy ,Wheat., 

Barley and Maize; Pulses - Gram, Pea, Moong, Arhar 

and Lentil; Oilseeds- Mustard, Soybean, Groundnut 

and Caster. Fodder- Guar. 

To ensure the quality, seeds are being 

processed at 13 modern seed processing plants 

located at Abohar (Punjab), Aligarh (U.P.), 

Bulandshahar (U.P.), Dewas (M.P.), Gajraula (U.P.), 

Gorakhpur (U.P.) Himmatnagar (Gujarat), Hissar 

(Haryana), Jungipur (U.P.),Ludhiana(Punjab) Kota 

(Rajasthan) Moth (U.P.) and. Shahjahanpur (U.P.) 

The total production capacity of these plants is 

2.70 lakh quintal. The Society is planning to 

establish 2 new seed grading units, one in Bihar 

(Arrah, Distt- Bhojpur) and another in Rajasthan 

(Hanumangarh). After commencement of these 

units the total installed capacity of the Society will 

be 3.00 lakh quintal per annum. 

In order to develop further infrastructure for 

seed multiplication, your Society has purchased 

land at Hissar in Haryana, Kota and Hanumangarh in 

Rajasthan for establishment of Seed Grading Units. 

During the year under review, the Society sold 

2,47,157 quintals of certified seeds of various crops 

and varieties and plans to produce 3.80 lakh 

quintals of seeds during 2011-2012. 

(QTY. LAKH QTLS) 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

SEED PRODUCTION AND SALES 

1.98 

1.96 

2.29 2.22 


YEARS 

2.48 2.47 

PRODUCTION 

SALES 

• Hybrid Seeds 

The growth of seed industry is expected to 

reach `12000 Crore during 2014 from `5200 

Crore 

during 2008. Hybrid Seeds have replaced the public 

varieties ranging from 3% to 100% in various crops. 

The area covered under different Hybrid Crops in 

the country is Rice (3%), Jowar (60%), Bajra (90%), 

Maize (95%), Cotton (97%) and Sunflower (100%). 

During 2010, the Society entered into a MOU 

with a renowned Hybrid Seed company for marketing 

of their seeds through Society`s Marketing network in 

KRIBHCO's own brand. Accordingly, during the year, 

Society marketed 1,48,686 packets of Bt. Cotton, 

290.54 quintals of Paddy Hybrid, 3041.08 quintals of 

Paddy Research, 1677.57 quintals of Maize Hybrid and 

7.74 quintals of Hybrid Sunflower Seeds. 

In view of popularity and Crop Performance of 

KRIBHCO's Hybrid Seed among the progressive 

farmers of the country and rapid increase in 

demand in market, the Society, plans to sale 5.10 

Lakh packets of Bt. Cotton, 344 quintals of Paddy 

Hybrid, 7885 quintals of Paddy Research, 5557 

quintals Hybrid Maize, 600 quintals of Hybrid Bajra 

and 17 quintals of Hybrid Sunflower Seed during the 

year 2011-2012. 

20

KRIBHCO Raja variety of Bt. Cotton bearing more than 300 balls at village Hokwala in distt. Ferozepur, Punjab. 

12.10 Organic Fertilizer 

Agriculture is going through a major 

transformation across the world and India is no 

exception. Organic Agriculture has emerged as a 

feasible option related to land degradation and 

increasing contamination in food. Organic Manure / 

Compost use in the fields help in producing food of 

high nutritional value and reduce the health risks by 

keeping harmful chemicals and pesticides out. It 

also preserves long term fertility of the soil through 

sustainable production system. 

Your Society took initiative to co-market the 

Compost made from City Garbage since December 

2009. During the year 2010-2011, the Society Comarketed 

about 17,350 MT of compost in 11 states 

and plans to sell 30,000 MT during next financial year. 

12.11 Bio-Fertilizers 

Your Society initiated producing and marketing 

five bacterial strains of Bio-fertilizers in three Plants 

at Hazira (Gujarat), Lanjha (Maharashtra) and 

Varanasi (U.P.) with combined capacity of 550 MT. 

During the year 2010-2011, the Society produced 

965 MT and sold 944 MT of 5 bacterial strains of 

Bio-fertilizers i.e. Rhizobium, Azotobacter, 

Acetobacter, Azospirillium and PSM (Phosphate 

Solubilising Micro-organism). Initiative has also 

been taken to produce liquid Bio-fertilizers in view 

of meeting the need of increased shelf life for better 

marketability and farmers benefit. The Society's 

Bio-fertilizer Plants are ISO certified. 

Your Society has been continuously promoting 

the use of Bio-fertilizers by educating farmers and 

making them aware about its benefits through various 

promotional and educational programmes, which has 

been duly recognized through awards by FAI. 

(QTY. MT) 

1000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

BIO-FERTILIZERS PRODUCTION AND SALES 

865 

867 953 922 965 944 


YEARS 

PRODUCTION SALE 

21


Shri N. Sambasiva Rao, Marketing Director visiting Krishak Bharati Sewa Kendra, Bulandshahr, U.P. 

12.12 Krishak Bharati Sewa Kendra 

The Society is operating its 63 own outlets 

known as Krishak Bharati Sewa Kendra (KBSKs) in 

the states of Uttar Pradesh, Haryana and Punjab to 

provide all agriculture inputs and technical knowhow 

under Single Window Concept. This concept 

has gained a permanent place in the hearts of the 

farmers in these areas. 

During the year 2010-2011, the total turnover 

achieved was ` 114.46 crore, as compared to ` 

74.97 crore, an increase of 53% over previous year. 

The Society recognizes the role of these Kendras in 

establishing the strong image of the Society 

amongst the farming community. 

12.13 Marketing Coordination System 

The Society's web based software KRIBHCO 

Marketing Coordination System (KRIBHCO MCS) has 

been running successfully for the fourth 

consecutive year. It helps in collecting requisite 

data from field for further consolidation and 

uploading the same to the Fertilizer Monitoring 

System (FMS) Web Site of Department of Fertilizers 

(DOF), Government of India in prescribed time limit. 

It has also enabled the Society to update its data 

base quickly and to enable faster monitoring and 

decision making process. 

13. INVESTMENTS 

13.1 Joint Ventures and Subsidiaries 

• Oman India Fertiliser Company SAOC 

(OMIFCO) 

Your Society is a lead sponsor of Oman India 

Fertilizer Company (OMIFCO) with an investment of 

US$ 69.5 Million (Equivalent to INR ` 328.53 Crore) as 

equity representing 25% of paid up equity capital of 

OMIFCO. 

The capacity of OMIFCO plant is 16.52 Lakh MT 

per annum of granular Urea and 11.9 Lakh MT per 

annum of Ammonia. 

Year 2010 (Jan10 - Dec10) was fifth complete year 

of the Commercial Production of OMIFCO. In this 

period, OMIFCO produced 20.77 Lakh MT of urea 

which is 125% of the rated capacity and 13.47 lakh MT 

of Ammonia being 113% of the rated capacity. 

OMIFCO sold 21.13 Lakh MT of Urea and 1.38 Lakh MT 

of surplus Ammonia. 

22

Capt. Ajay Singh Yadav, Hon'ble Finance Minister, Govt. of Haryana inaugurating KRIL Inland Container Depot, Rewari. 

Also seen Shri Rao Dan Singh, Chief Parliamentary Secretary, Haryana; Shri Chandra Pal Singh, Chairman KRIL; 

Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO; Shri B.D. Sinha, Managing Director KRIBHCO and 

Shri N. Sambasiva Rao, Marketing Director KRIBHCO on the occasion. 

KRIBHCO is handling and marketing 50% of the 

urea produced by OMIFCO. For the calendar year 

2010, OMIFCO paid a dividend of 45.5% on paid up 

capital. KRIBHCO received US$ 31.62 Million as 

dividend income from OMIFCO during the year. 

• KRIBHCO Shyam Fertilizers Limited (KSFL) 

KRIBHCO Shyam Fertilizers Limited (KSFL), a joint 

venture company of KRIBHCO and M/s STL Fertilizers 

Pvt. Ltd., operates the Shahjahanpur Fertilizer 

Complex. The Society holds 85% of the total 

shareholding of KSFL 

On operational parameters, the year 2010-2011 

was a landmark year in the history of the Shahjahanpur 

plant ever since it commenced commercial 

production in December 1995. During the year, KSFL 

achieved highest ever Urea production of 10.28 Lakh 

MT with capacity utilization of 119% and Ammonia 

production of 6.08 Lakh MT with capacity utilization 

of 121%. 

KSFL has constructed a new 132KV switchyard for 

export of Surplus Power, proposed to be generated 

from standby gas turbine. The transmission line of 

about 15 km is being constructed to connect the 

Captive Power Plant to UPPCL Grid. The operation of 

both the GTs simultaneously will not only enable to 

produce about 24 MW Surplus Power but also will 

bring in energy efficiency in production of high 

pressure steam for the plant. 

• KRIBHCO Infrastructure Limited (KRIL) 

"KRIBHCO Infrastructure Limited" (KRIL) is wholly 

owned subsidiary of KRIBHCO for undertaking total 

Logistic Business including allied activities. KRIL is 

presently operating six container trains on various 

sectors and is in the process of procuring additional 

Rakes and Containers. 

KRIL is maintaining and operating Rail Linked 

Terminal at Hazira under Leave and Licence 

Agreement with KRIBHCO. KRIL is exploring the 

possibilities to set up Logistics Parks/Inland Container 

Depots (ICDs)/Container Freight Stations (CFS)/Free 

Trade Warehousing Zones/ Domestic Container 

Terminals/ Private Freight Terminals (PFT)/ 

Warehouses preferably with Railway siding at various 

strategic locations either individually or in Joint 

Venture with Strategic partners in the country. 

Majority of land required for setting up Rail 

Linked Inland Container Depot (ICD) at Rewari 

(Haryana) has already been acquired. Construction 

23


Promotional Programme organized on Hybrid Maize at Tajewala Village in distt. Hoshiarpur, Punjab. 

work has commenced. All statutory approvals for 

setting up ICD at Modinagar (Uttar Pradesh) are in 

advanced stage. Initiative has been taken for setting 

up of Rail Linked ICD / Logistic Park at Hindaun City 

(Rajasthan) and Shahjahanpur (Uttar Pradesh). 

KRIL holds 10% equity in the Continental 

Multimodal Terminals Limited (CMTL). Rail linked ICD 

at Hyderabad is likely to be completed shortly. CMTL is 

in advanced stage of setting up rail linked ICD at 

Tuticorin. KRIL along with GIDC are exploring the 

possibilities to set up Rail linked Logistics Park 

ICD/PFT/CFS at Dahej and other suitable locations. 

• Gujarat State Energy Generation (GSEG) 

GSEG is a joint venture between Gujarat State 

Petroleum Corporation Ltd (GSPC), other Government 

of Gujarat Companies, KRIBHCO and GAIL (India) Ltd. In 

addition, IFCI and SBI are strategic partners. It is 

operating a 156 MW Gas based Combined Cycle Power 

Plant at Mora, in Surat (Gujarat) since June 2002. Plant is 

consistently operating satisfactorily. KRIBHCO holds 

26.77% equity in GSEG i.e. ` 93.04 crore. 

GSEG is implementing a 350 MW Combined Cycle 

Gas Based Expansion Project at its existing Site at an 

estimated cost of ` 1160 crore. Erection work is in 

progress and the Project is likely to be completed in 

August, 2011. After implementation of this 350 MW, 

the total installed capacity of the Company would go 

up from 156 MW to 506 MW. 

GSEG has declared a dividend of 3% for the 

Financial Year 2009-2010. 

13.2 Others 

• Indian Commodity Exchange Limited (ICEX) 

The Society had acquired an equity of `5.00 crore 

(5% of total equity) at par in the Financial Year 2009- 

2010. The exchange is a national level multi 

commodity exchange and has started its operations 

w.e.f. 27.11.2009. The Exchange has been successful 

in acquiring over four hundred members reflecting 

the confidence reposed in the Exchange by market 

participants. Further, the Exchange expanded its 

product portfolio by launching contracts in Iron Ore, 

Mustard Seeds, Mentha Oil and Raw Jute. 

14. SERVICES TO FARMERS, COOPER- 

ATIVES AND RURAL DEVELOPMENT 

Sustainable rural development through effective 

farm services has been a focus area for the Society. 

24

Your Society, having a dedicated team of agricultural 

professionals, continued its efforts towards transfer of 

latest farm technology to the farming community and 

has undertaken rural welfare schemes for improving 

their livelihood. The Society organized 2669 

programmes such as Farmers Meetings, Kisan Melas, 

Field Demonstrations, Field Days, Cooperative 

Conferences, Group Discussion etc. benefiting 9.97 

Lakh farmers and cooperative officials across the 

nation. The Society also made available 5.64 lakh 

technical folders on various crops to farmers and 

cooperatives as back-up knowledge. 

'KRIBHCO Krishi Pramarsh Kendra' continues to 

provide free consultancy on farm-related issues, 

propagate efficient and balanced use of fertilizer by 

testing 5622 soil samples for micro-nutrients, 1545 

samples for macro-nutrients collected from 15 states 

and 71 farmers visited the Kendra. The State Directors 

of Agriculture across the nation were apprised about 

educational programmes conducted and district-wise 

deficiency noticed in soil samples tested from their 

states. This year KRIBHCO Krishi Pramarsh Kendra, 

NOIDA was visited by many dignatories including Shri 

S. Krishnan Secretary (DoF) and Shri S.L. Goyal Jt. 

Secretary (DoF), Govt. of India and Mr. Farid Hateen 

DG (Agriculture) Govt. Of Afghanistan. The services 

provided by KRIBHCO to farmers and cooperatives 

was highly appreciated. 

Your Society promoted Information Communication 

Technology (ICT) and sent the soil profile 

results along with the recommendations to the 

farmers at their door-steps through KRIBHCO field e- 

mails, besides using the KRIBHCO website for display 

of results as well as monthly farm operations. The 

'Pramarsh Kendra' as well as "KRIBHCO Kisan 

Helpline" continued to provide latest information on 

weather to farmers enabling them to plan farm 

operations and mid-term corrections in case of crop 

failures. Kisan helpline is also used for follow-up with 

farmers for adopting soil testing results and other 

farm-related services. 

For inclusive development of cooperatives, the 

Society adopted 107 cooperative societies, trained 24,940 

cooperative managers in 208 cooperative conferences. 

The Society also organized 50 health campaigns for 

human and livestock, and rural sports for integrated rural 

development. A state Consultative Committee meeting 

was organized for the state of Gujarat. 

15. FINANCIAL RATINGS 

The Society's excellent financials and its core 

strength have been recognized by CRISIL by awarding 

the highest rating P1+ for accessing short term 

borrowings and Letters of Credits. This rating indicates 

that the degree of safety regarding timely payment on 

the instruments is very strong. On the long term, 

CRISIL has rated the Society as AA-/ Stable which 

means high degree of safety with regard to timely 

payment of financial obligations. The outlook is 

indicated to be "stable". 

16. CORPORATE GOVERNANCE 

A Sound Governance process consists of a 

combination of business practices, which result in 

enhancement of shareholder's value and enable the 

Society to fulfill its obligations to farmers, employees, 

shareholders, Lenders, government and the general 

public at large. 

The constituents of corporate governance in the 

Society are the Board of Directors, Shareholders and 

the Management. 

The Thirtieth Annual General Body Meeting 

(AGM) of KRIBHCO was held on 20th May, 2010. 

In the 30th AGM, nine Directors were elected as 

per Bye-law 38(i) of the Society. Thus, with the 

election of nine Directors, the seventh elected Board 

of Directors was reconstituted on May 20, 2010. The 

members of the newly constituted Board, unanimously 

elected Shri Vaghjibhai Rugnathbhai Patel and 

Shri Chandra Pal Singh as Chairman and Vice- 

Chairman of the Society, respectively. 

Twelve Meetings of the Board of Directors, 11 

Meetings of the Executive Committee, 2 Meetings of 

the Sub Committee on Marketing and 2 Meetings of 

the Audit Committee were held during the year. The 

observations/ recommendations of the members are 

taken into account while formulating the future 

strategies and planning of the Society. 

25


Shri Chandra Pal Singh, the then Chairman KRIBHCO, presenting KRIBHCO Sahakarita Shiromani Award to 

Shri Shivajirao G. Patil from Maharashtra. Also seen are Dr. Bijender Singh, Director; Shri V. Sudhakar Chowdary, Director 

and other dignitaries. 

Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO and Shri Chandra Pal Singh, the then Chairman KRIBHCO 

presenting KRIBHCO Sahakarita Vibhushan Award to Shri Dalsangbhai J Patel from Gujarat. Also seen on the occasion 

are Shri B.D. Sinha, Managing Director and other dignitaries. 

26

Shri S. Jaggia, Operations Director receiving the first Prize of FAI for 'Bio-fertilisers Production, Promotion & Marketing' 

from Shri M.K. Alagiri, Hon'ble Union Minister for Chemicals & Fertilisers. Shri Srikant Jena, Hon'ble Union Minster of 

State for Chemicals & Fertilizers is also seen. 

Shri L.S. Bharambe, the then Sr. SMM Maharashtra receiving the FAI (Western Region) Mahadhan Trophy from 

Shri U.S. Jha, the then CMD RCF. 

27


GVT officials seen alongwith villagers in Krishi Vikas Pariyojna in tribal distt. Jhabua, M.P. 

17. INFORMATION TECHNOLOGY 

The Society's business processes and operations 

rely on vast amount of information repository spread 

across its various functional units. The Information 

Technology and Communication facilities such as 

Local and Wide Area Networks, INTRANET based 

information exchanges; electronic mail, internet 

access, web site etc. have been continuously 

maintained and the security concerns are addressed 

from time to time. New applications for intra 

organizational information exchange have been 

developed to reduce paper work. 

18.CORPORATE SOCIAL RESPONSIBILITY 

As a CSR initiative, the Society through GVT, has 

taken up a project on Mangroves plantation on 100 

hectares at village Kantiyajal (Distt.Bharuch) by 

signing a MoU with Gujarat Ecology Commission 

(GEC). The restoration project involves coastal 

communities for the development and management 

of mangroves, to give them livelihood and 

employment opportunities. Society has taken CSR 

initiatives to improve the livelihood of the rural 

marginalized communities for their betterment in 

the rainfed areas through GVT. Your society is also 

contributing in improving socio-economic conditions 

by enhancing seed replacement ratio at farmers' field 

through hybrid seeds, Bt. cotton and encouraging use 

of eco-friendly products like Bio-fertilisers and 

Compost. 

19. COMMUNITY DEVELOPMENT 

Your society is playing a significant role in 

community development and committed for 

improving the quality of life of the farmers, better 

Health, Education, Infrastructure support, Safe 

drinking water, Income generation, Environment 

protection, Family welfare, Institution building etc. 

The Society has taken initiative for upliftment of rural 

community through construction of storage-cumcommunity 

centres since 1977 under Golden Jubilee 

celebrations of India's Independence. So far, 136 such 

centres have been constructed throughout the 

country. These centres are meeting the dual needs of 

timely stocking of agro-inputs / farm produce and 

social gathering in rural areas. These centres have 

proved helpful in reducing expenses of rural people on 

account of tents etc. during social functions and on 

storage during crop seasons. Farmers training, health 

28

Shri N. Sambasiva Rao, Marketing Director KRIBHCO alongwith Chinese delegates visited KRIBHCO stall at KIPO Trade 

Centre, Bangaluru. 

check-ups for human beings and livestock, rural sports 

and meetings etc. are also conducted occasionally in 

these centres. The Society has immensely benefited 

on account of long term publicity for its products 

through these centres in the heart of our market 

areas. 

Besides above, some of the community 

development activities carried out in the surrounding 

villages of Hazira Plant during the year include 

Drinking water facilities extended to Kavas Group 

Gram Panchayat, Distribution of Text books, study 

materials and uniform to school students, provision of 

computers, printers, LCD projector, sports items, 

benches and fans to schools, provision of ambulance 

van, construction of water tank, financial aid to 

Viklang Kalyan Society Surat, organising blood 

donation camps, created an Institution called 

"Ashirwad" for senior citizens and carried out fogging 

operation for malaria control. 

20. KRIBHCO SAHAKARITA AWARDS 

KRIBHCO Sahakarita Awards for the year 2009- 

2010 were presented to two eminent cooperators in 

its 30th AGM held on May 20, 2010. KRIBHCO 

Sahakarita Shiromani Award was conferred on Shri 

Shivajirao G. Patil from Maharashtra and KRIBHCO 

Sahakarita Vibhushan Award on Shri Dalsangbhai J. 

Patel (Chaudhary) from Gujarat for their dedicated 

efforts for development of the Co-operative 

Movement. 

21. PUBLICITY 

In order to build a corporate Image the publicity 

activities were reoriented. The Society focussed on 

making the new/potential customers aware of 

KRIBHCO's existing as well as new products, on creating 

awareness on the CSR roles performed by the Society. 

The efforts have not only improved the Society's 

visibility in the field, encouraged farmers to buy new 

products but also impacted the credibility of the 

organisation/brand consciousness among farmers 

and other stakeholders. Some of the activities 

undertaken related to provision of name boards for 

cooperatives selling our products, wall paintings/ 

tractor trolley paintings, distribution of kisan carry 

bags, caps, key chains, distribution of corporate 

brochure for potential partners/visitors, distribution 

of product posters for display etc. The In-house 

magazine - 'KRIBHCO NEWS' was re-oriented which 

received award from Public Relation Society of India. 

29


State Consultative Committee Meeting of Gujarat in progress at Shirdi, Maharashtra. Shri Vaghjibhai Rugnathbhai Patel 

Chairman and Shri Chandra Pal Singh Vice Chairman and other KRIBHCO Directors are seen interacting with delegates. 

The short film on "Soil health improvement & 

farmer's prosperity" of your Society received 1st prize 

from FAI. 

Your Society participated in International Trade 

Fair at New Delhi, International Co-operative Alliance 

(ICA) Expo at Bengaluru and several Kisan Melas in 

Agriculture Universities, ICAR Institutes and 

Agriculture Department. 

Your Society also developed KRIBHCO theme 

song in Hindi and Gujarati and TV Advertisement for 

telecasting during Doordarshan serial "Aahar". 

The relations with Print and Electronic media 

were cordial and the Society's events were covered by 

them judiciously. 

22. HUMAN RESOURCE DEVELOPMENT 

In order to update the skill and develop human 

resource of the Society, various programmes/ 

trainings were conducted involving wide range of 

lectures by eminent faculty were arranged on various 

topics. Students from various Management Institutes 

were given training in their respective fields. The 

Society has also taken initiative for development of 

dependants of employees for better life quality. The 

Society also celebrated "National Productivity Week" 

wherein various competitions like Essay, Slogan 

Writing, Painting and Quiz etc. were organised 

23. INDUSTRIAL RELATIONS 

Employees' Relations in the Society remained 

cordial and peaceful. An atmosphere of mutual trust, 

confidence and goodwill prevailed between the 

Management and the employees represented by their 

Unions and Associations. Management maintained 

an open-door policy with fair and transparent 

approach while dealing with the employees and their 

Unions and Associations. As a result, not a single manday 

was lost during the year due to Industrial Relations 

Problems. 

Your Society recognises its employees as a 

valuable asset and assign paramount importance to 

Employees Relations. Continuous and untiring efforts 

towards maintaining cordial and harmonious interpersonal 

relations have been key factor(s) in achieving 

all round better performance of the Society. 

24. PROGRESSIVE USE OF HINDI 

An Official Language Implementation Committee 

(OLIC) has been constituted in Corporate Office. OLIC 

30

Shri Chandra Pal Singh, Vice Chairman KRIBHCO; Shri N. Sambasiva Rao, Marketing Director and other officials visiting 

KRIBHCO Seed Processing Plant, Gorakhpur, U.P. 

meetings were organized regularly and follow up 

action was taken on the decisions taken in these 

meetings. Regular Hindi workshops were organized 

and to achieve the targets fixed in the Annual 

Programme one employee in each State Marketing 

Office/Area Office has been designated. 

To motivate the employees for doing official work 

in Hindi, a running trophy has been introduced. To 

encourage the employees for doing official work in 

Hindi, Cash Incentive Schemes is introduced. 

Hindi Pakhwara was organized in corporate 

office, Plant/State Marketing Offices & Area offices 

from 10th to 24th September, 2010.The programmes 

like Hindi dictation; Hindi essay writing competition, 

Hindi noting/drafting and quiz were organized. 

Fifteen employees were awarded cash prize under the 

annual cash incentive scheme for doing official work in 

Hindi during the year. The Society also organized Kavi 

Sammelan, cultural programmes and Hindi Plays. 

25. AWARDS / HONOURS 

During the year, following awards have been 

received by the Society: 

• FAI Award for educational film titled "Soil Health 

Improvement and Farmers' Prosperity", 

highlighting fertiliser use efficiency and soil 

health. 

• 'Performance Excellence Award-2010' for 

Financial & Operational Strength sponsored by 

Indian Institution of Industrial Engineering(IIIE) 

• FAI Award-2010 for 'Production, Promotion and 

Marketing of Bio-Fertilizers". 

• Bagged Gold Trophy in National Essay 

Competition at 52nd National Convention of IIIE 

and National seminar on "Pillars of Prosperity: 

Energy, Economy and Environment." 

• New look of In-house Magazine "Kribhco News" 

bagged award from Public Relation Society of 

India (PRSI). 

• Mahadhan Award for excellence in Crop 

Productivity Improvement for the year 

2010-2011 to KRIBHCO-Maharashtra consisting 

of a Trophy & a cash Prize of ` 25,500.00 

26. VIGILANCE 

Vigilance is an integral part of the Management 

Function. Main stress of the management is on 

transparency in the organisation and accountability in 

31


the day to day functioning/ working of the Society. 

The Society is committed to bring transparency 

and accountability in its day to day functioning by 

adopting "preventive vigilance" as its main theme. 

Surprise and regular inspections were carried out 

throughout the year by the team of Vigilance officers 

and based on their findings remedial action was taken 

by the management. 

Besides its employees, KRIBHCO also sensitize 

the public about the evil consequences of corruption. 

For the purpose, Vigilance Awareness Week was 

celebrated at Head Office, Plant and in all the 

Marketing Offices of KRIBHCO throughout the country 

th 

st 

between 28 October and 1 November, 2010. During 

Vigilance Awareness Week celebrations, Group 

Discussions, Cooperative Conferences and Workshops 

were organised in which evil consequences of 

corruption were also highlighted. KRIBHCO 

employees along with the members of public took 

part in 'pledge ceremonies' arranged during the 

celebrations. 

27. GRAMIN VIKAS TRUST 

Gramin Vikas Trust (GVT), is a non profit entity 

established and supported by KRIBHCO for the 

upliftment of the marginalized rural community and 

acting as a catalyst to enable the socially and 

economically disadvantaged rural and tribal 

communities to improve their livelihoods on 

sustainable basis. The Trust is operating in 8 states 

namely Madhya Pradesh, Rajasthan, Gujarat, Bihar, 

Orissa, Jharkhand, Chhattisgarh and West Bengal 

through well established offices and dedicated teams. 

It has also undertaken short term assignments of 

national importance like case studies, monitoring and 

evaluation work etc. in the state of Haryana, 

Maharashtra, Uttarakhand and Himachal Pradesh. 

Recently, GVT carried out three pilot studies 

awarded by National Rainfed Area Authority (NRAA). 

It has been chosen by Ministry of Panchayati Raj as a 

Technical Support Institution for 17 districts of 

Madhya Pradesh, Bihar, Jharkhand and West Bengal 

for extending hand holding support to all tiers of 

Panchayati Raj Institutions for the preparations of 

Perspective Plan and Annual Plans during the 12th 

Five year plan period. In Gujarat, GVT was associated 

with the most prestigious project of Census-2011 

phase in 26 districts. 

GVT recognizes Training and capacity building as 

an important enabler and has, therefore, conducted 

training programmes meant for district level officials 

under SGSY in Bihar and Jharkhand awarded by 

National Institute of Rural Development (NIRD). It has 

also conducted trainings for the elected 

representatives of Panchayat on decentralized 

planning in Baran District (Rajasthan). Government of 

Gujarat has handed over the management of a 

Vocational Training Centre (VTC) at Dahod. In 

Rajasthan, GVT has been provided a mobile van by the 

State Government to reach out to the communities 

and to upgrade their skills under Eklavya Scheme. 

GVT has been a pioneer in the field of 

collaborative research in agriculture with academic 

institutions and communities as partners including 

international organizations for better dissemination 

of research outcomes and appropriate technologies. 

Partnerships are in existence with EU and CAZS, 

Bangor University, U.K. GVT, with the support of DFID, 

has made an attempt under Research into Use Project 

(RiUP) to promote a Seed Producer Company 

organizing 21 Seed Producers Groups involving 221 

farmer's in fourteen villages under three Blocks of 

Mayurbhanj district. 

GVT, since its inception, through its watershed 

projects has brought nearly 75600 hectares area for 

treatment and covered nearly 2,45,000 Households in 

the targeted areas. GVT is implementing pilot projects 

on 5 agricultural innovations in its operating states in 

consortium mode either as lead agency or as a partner 

organization funded under NAIP. GVT has established 

15 Homestead Farming projects (WADI) under the 

funding of NABARD to address the issue of sustainable 

livelihood for marginal farmers. 

National Livelihood Resource Institute (NLRI) of 

GVT at Ratlam (M.P.) has started under its ambit a 

School of Rural Management in collaborative mode 

with KIIT University, Bhubaneswar for conducting 

certificate courses in allied subjects. NLRI is also 

poised to host discourses focusing on carbon 

management and climate change. 

32

Krishi Vigyan Kendra (KVK) at Godda, Jharkhand 

managed by GVT and funded by ICAR is in the process 

of disseminating low cost innovative technologies. 

All these endeavours are expected to enable rural 

population mitigate their livelihood related risks and 

achieve a better living standard. 

28. AUDITORS 

G. S. Mathur & Co., S. K. Mehta & Co. and G. K. 

Choksi & Co., Chartered Accountants, who are the 

Statutory Auditors of the Society, hold office until the 

conclusion of the ensuing Annual General Meeting 

and are eligible for reappointment. 

29. DIRECTORS' RESPONSIBILITY 

STATEMENT 

Your Directors hereby confirm that (a) In the 

preparation of the annual accounts, the applicable 

accounting standards had been followed along with 

proper explanation relating to material departures, if 

any (b) Appropriate accounting policies have been 

selected and applied consistently, and that the 

judgements and estimates made are reasonable and 

prudent so as to give a true and fair view of the state of 

affairs of the Society as at March 31, 2011 and of the 

profit of the Society for the said period (c) Proper and 

sufficient care has been taken for the maintenance of 

adequate accounting records in accordance with the 

provisions of the Multi State Cooperative Societies 

Act, 2002 for safeguarding the assets of the Society 

and for preventing and detecting fraud and other 

irregularities (d) The annual accounts have been 

prepared on a going concern basis. 

Fertilizers and other Ministries/Departments 

concerned of the Government of India and FICC for 

which the Society expresses its gratefulness. Your 

Society also places on record its gratitude and thanks 

to Sultanate of Oman and Oman Oil Company SAOC 

and other Joint Venture Partners. 

The Board of Directors also wishes to place on 

record its gratitude to those national and 

international organizations which have provided their 

valuable support. Special thanks are due to Society's 

bankers and the Reserve Bank of India. Last but not 

the least, the Board places on record its high 

appreciation for the sustained, dedicated and sincere 

efforts put in by the Officers and Staff of the Society for 

their sustained high level of performance. 

For and on behalf of the Board of Directors 

Dated: July 21, 2011 

Vaghjibhai Rugnathbhai Patel 

Chairman 

30. ACKNOWLEDGEMENTS 

The Board of Directors place on record its deep 

appreciation for the excellent contributions made by 

Shri R K Dhami, Vice-Chairman, Shri Mathew C 

Kunnumkal, Shri Shiv Narayan Prasad Mishra and 

Shri S.S. Jamgod, Directors on the Board of KRIBHCO 

during deliberations on various important issues and 

guidance provided by them. 

The Society received full support and 

cooperation from the Ministry of Chemicals and 

33


AUDITORS' REPORT TO THE MEMBERS 

We have audited the accompanying Balance Sheet of KRISHAK BHARATI COOPERATIVE LIMITED as at March 31, 

2011, the Profit and Loss account and the Cash Flow Statement for the year ended on that date annexed thereto. 

These financial statements are the responsibility of the Society's management. Our responsibility is to express an 

opinion on these financial statements based on our audit. 

We conducted our audit in accordance with generally accepted auditing standards in India. Those standards require 

that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 

of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and 

disclosures in the financial statements. An audit also includes assessing the accounting principles used and 

significant estimates made by management, as well as evaluating the overall financial statement presentation. We 

believe that our audit provides a reasonable basis for our opinion. 

We report that: 

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were 

necessary for the purpose of our audit. 

(b) In our opinion, proper books of account as specified in the Multi-State Cooperative Societies Rules, 2002 have 

been kept by the Society so far as appears from our examination of the books and proper returns adequate for 

the purpose of our audit have been received from the Branch not visited by us. 

(c) The Report on the Accounts of Sur Branch at Oman audited by local branch auditor has been forwarded to us, 

which has been relied upon and same has been appropriately dealt with by us in preparing this report. 

(d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement 

with the books of account. 

(e) In our opinion and to the best of our information and according to the explanations given to us, the said 

accounts read with Significant Accounting Policies and Notes on Accounts forming part thereof give the 

required information and give a true and fair view in conformity with accounting principles generally accepted 

in India: 

(i) in the case of the Balance Sheet, of the state of the affairs of the Society as at March 31, 2011; 

(ii) in the case of the Profit and Loss Account, of the profit of the Society for the year ended on that 

date; and 

(iii) in the case of the Cash Flow Statement, of the cash flows of the Society for the year ended on that date. 

For G S Mathur & Co. 


(Firm Regn. No. 008744N) 

For S K Mehta & Co. 


(Firm Regn. No. 000478N) 

For G K Choksi & Co. 


(Firm Regn. No. 101895W) 

(Ajay Mathur) 

Partner 

M. No. 082223 

Place: New Delhi. 

Date: April 29, 2011. 

(SKMehta) 

Partner 

M. No. 010870 

(Sandip A. Parikh) 

Partner 

M. No. 040727 

34

BALANCE SHEET AS AT MARCH 31, 2011 

FINANCIAL STATEMENTS 

( ` inlakh) 

Particulars Schedule As at 31.03.2011 

As at 31.03.2010 

SOURCESOFFUNDS 

Shareholders’ Funds 

Share Capital 1 39,023.45 39,066.58 

Reserves and Surplus 2 243,532.44 282,555.89 230,646.26 269,712.84 

Loan Funds 

Secured Loans 3 3,022.60 22.81 

Unsecured Loans 4 26,419.33 29,441.93 - 22.81 

Deferred Tax Liability (Net) 

2,250.00 1,663.31 

Total 314,247.82 271,398.96 

APPLICATION OF FUNDS 

Fixed Assets 

5 

Gross Block 136,649.25 129,077.77 

Less: Accumulated Depreciation/Amortisation 92,576.08 89,690.86 

Net Block 44,073.17 39,386.91 

Capital Work-in-Progress 6 74,583.69 118,656.86 10,457.69 49,844.60 

Investments 

7 135,556.73 140,645.23 

Current Assets, Loans and Advances 

Inventories 8 20,623.86 11,792.02 

Sundry Debtors 9 43,572.33 19,673.48 

Cash and Bank Balances 10 41,261.51 79,878.32 

Other Current Assets 11 506.23 2,348.72 

Loans & Advances 12 14,556.77 13,478.88 

120,520.70 127,171.42 

Less: Current Liabilities and Provisions 

Current Liabilities 13 40,555.20 23,875.93 

Provisions 14 19,931.27 22,386.36 

60,486.47 46,262.29 

Net Current Assets 

60,034.23 80,909.13 

Total 314,247.82 271,398.96 

Significant Accounting Policies 

Notes on Accounts 

23 

24 

(Schedules referred above form an integral part of the Balance Sheet) 

(R Kamra) 

Finance Director 



As per our report of even date 



(B D Sinha) 

Managing Director 



(Ajay Mathur) 

Partner 

M. No. 082223 



(SKMehta) 

Partner 

M. No. 010870 


Partner 

M. No. 040727 

35


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 

Particulars Schedule Year ended 31.03.2011 Year ended 31.03.2010 

INCOME 

Turnover 

EXPENDITURE 

Sales (Net of Discounts/Rebates) 204,356.96 164,708.58 

Less: Excise Duty (1,632.13) (970.19) 

Concession/Remuneration from 

( ` inlakh) 

Government of India 15 152,684.56 355,409.39 95,968.98 259,707.37 

Other Revenue 16 29,976.25 30,478.16 

Accretion/(Decretion) in Stocks 17 5,050.21 (3,819.58) 

390,435.85 286,365.95 

Consumption of Raw Materials and Others 18 134,160.45 96,645.99 

Purchases of Products for Resale 157,875.75 94,191.26 

Employees’ Remuneration and Benefits 19 24,131.32 22,488.73 

Manufacturing , Administration, 20 46,257.62 44,145.95 

Distribution and Other Expenses 

Interest and Finance Charges 21 1,923.44 576.61 

Depreciation/ Amortisation 3,048.01 3,062.11 

367,396.59 261,110.65 

Net Profit before tax and prior period adjustments 23,039.26 25,255.30 

Prior Period Adjustments (Net) 22 (13.09) 21.82 

Profit before Tax 23,026.17 25,277.12 

Provision for Taxation - Current 4,925.00 1,300.00 

- Deferred 586.69 1,160.42 

- Earlier Years (2,540.42) 2,971.27 - 2,460.42 

Profit after Tax 20,054.90 22,816.70 

Profit transferred to: 

Capital Repatriation Fund 40.00 14.00 

Net Profit as per the Multi-State Cooperative Societies Act 2002 

20,014.90 22,802.70 

Continued... 

36

Continued... 

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 

Particulars Schedule Year ended 31.03.2011 Year ended 31.03.2010 

Appropriations: 

Reserve Fund as per Bye-Law 58(i) of the Society 5,003.73 5,700.68 

Provision for Contribution to Cooperative Education Fund 200.15 228.03 

Reserve Fund for Contingency as per 2,001.49 2,280.27 

Bye- Law 58 (iii) of the Society 

Reserve for Donations 40.00 40.00 

Proposed Dividend 6,928.86 7,767.40 

( ` inlakh) 

General Reserve 5,840.67 20,014.90 6,786.32 22,802.70 

- - 

Significant Accounting Policies 

23 

Notes on Accounts 

(Schedules referred above form an integral part of the Profit and Loss Account.) 

24 

(R Kamra) 







(B D Sinha) 




(Ajay Mathur) 

Partner 

M. No. 082223 



(SKMehta) 

Partner 

M. No. 010870 


Partner 

M. No. 040727 

37


CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011 

Particulars 

Year ended 31.03.2011 

Year ended 31.03.2010 

( ` inlakh) 

(A) 

Cash Flow from Operating Activities: 

Net Profit Before Tax 23,026.17 25,277.13 

Adjustment for: 

Depreciation (including prior period) 3,054.92 3,047.46 

Interest (Net) (4,572.98) (7,172.83) 

Loss on Sale of Assets/ Amount written off 34.83 (583.39) 

Foreign Exchange Rate Fluctuations (2,121.02) (26.46) 

Dividend Income (14,755.61) (14,549.05) 

Loss on sale of Investments 446.21 0.00 

Provisions written back (Net) (491.80) (18,405.45) (409.15) (19,693.42) 

(B) 

Operating Profit before Working Capital Changes 

Adjustment for: 

Cash Generated from Operations 

Net Cash from Operating Activities (A) (16,378.82) 27,668.37 

Cash Flow from Investing Activities: 

4,620.72 5,583.71 

Inventories (8,818.83) 6,668.11 

Trade and Other Receivables (23,838.23) 15,164.79 

Trade Payable and Provisions 16,432.52 (16,224.54) 2,330.66 24,163.56 

(11,603.82) 29,747.27 

Direct Taxes Paid (Net of Refunds) (4,502.97) (1,785.03) 

Contribution to Cooperative Education Fund (228.03) (247.12) 

Donations Paid (44.00) (4,775.00) (46.75) (2,078.90) 

Purchase of Fixed Assets (71,931.56) (19,042.57) 

(including Capital Work in Progress) 

Proceeds from Sale of Fixed Assets 29.79 5,031.81 

Investments made (Net) 4,642.30 (20,303.43) 

Dividend Received 14,755.61 14,549.05 

Interest received 7,304.00 9,753.58 

Net Cash from Investing Activities (B) (45,199.86) (10,011.56) 

Continued... 

38

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011 

Continued... 

Particulars 

Year ended 31.03.2011 


( ` inlakh) 

(C) 

Cash Flow from Financing Activities: 

Proceeds from issue/repatriation of Share Capital (43.13) (7.75) 

Proceeds from Borrowings 29,419.13 (9,191.19) 

Interest Paid (773.20) (518.31) 

Dividend Paid (7,761.95) (7,132.72) 

Foreign Exchange Rate Fluctuations 2,121.02 26.46 

Net Cash from Financing Activities (C) 22,961.87 (16,823.51) 

Net Increase/(Decrease) in Cash and (38,616.81) 833.30 

Cash Equivalents (A+B+C) 

Cash and Cash Equivalents as at the beginning of the year * 79,878.31 79,045.01 

Cash and Cash Equivalents as at the close of the year * 41,261.50 79,878.31 

Net Increase/(Decrease) in Cash and Cash Equivalents (38,616.81) 833.30 

* Includes ` 27.19 Lakhs (Previous Year `15.79 Lakhs) lying in designated current accounts towards unclaimed dividend and 

fixed deposits of ` 49.50 Lakhs (Previous Year ` 49.50 Lakhs) pledged with the banks 

Notes: 

1 Cash Flow Statement has been prepared under the indirect method as set out in the Accounting Standard (AS)-3 “Cash 

Flow Statements” issued by the Institute of Chartered Accountants of India 

2 Cash and Cash Equivalents consists of Cash-in-Hand and Balances with Banks. 

(R Kamra) 







(B D Sinha) 




(Ajay Mathur) 

Partner 

M. No. 082223 



(SKMehta) 

Partner 

M. No. 010870 


Partner 

M. No. 040727 

39


SCHEDULE - 1 

SHARE CAPITAL 

Particulars 

As at 31.03.2011 


( ` inlakh) 

AUTHORISED 

44,000 (44,000) Equity Shares of `1,00,000 each 44,000.00 44,000.00 

16,000 (16,000) Equity Shares of `25,000 each 4,000.00 4,000.00 

20,000 (20,000) Equity Shares of `10,000 each 2,000.00 50,000.00 2,000.00 50,000.00 

ISSUED AND SUBSCRIBED 



15,913 (14,923) Equity Shares of `10,000 each 1,591.30 39,110.80 1,492.30 39,130.80 

PAID UP 

FULLY PAID UP SHARES 



15,913 (14,923) Equity Shares of `10,000 each 1,591.30 39,110.80 1,492.30 39,130.80 

(Out of the above, 10,150 (18,890) Equity Shares of 

`1,00,000 each are held by Government of India) (GOI) 

Less: Repatriation of Share Capital 92.73 69.60 

Net Paid up capital 39,018.07 39,061.20 

Add: Forfeited shares 5.38 5.38 

Total 39,023.45 39,066.58 

(Figures in brackets, relate to previous year) 

SCHEDULE - 2 

RESERVES AND SURPLUS 

Particulars 

As at 

01.04.2010 

( ` inlakh) 

Additions Deductions As at 

31.03.2011 

(a) Reserve Fund (As per Bye-Law 58(i) of the Society) 88,251.33 5,003.73 - 93,255.06 

(b) Reserve Fund for Contingency (As per Bye-Law 13,010.72 2,001.49 - 15,012.21 

58(iii) of the Society) 

(c) Reserve for Donations 64.25 40.00 44.00 60.25 

(d) Capital Repatriation Fund 183.47 40.00 43.12 180.35 

(e) Share Repatriated Reserve 546.49 43.12 - 589.61 

(f) General Reserve 118,261.09 5,840.67 - 124,101.76 

(g) Dividend Equalisation Fund 10,293.78 - - 10,293.78 

(h) Cooperative Development Fund 35.13 4.32 0.03 39.42 

Total 230,646.26 12,973.33 87.15 243,532.44 

40

SCHEDULE - 3 

SECURED LOANS 

Particulars 


( ` inlakh) 


Term Loans- From Banks 

Rupee Loan 3,022.60 22.81 

(Due for repayment within one year 

Previous Year ` 0.19 lakh) 

` 

0.23 lakh, 

Loan of `3,000.00 lakh (Previous Year Nil) is secured by way of 

parri-passu charge on the existing fixed assets of the Society at 

its Hazira Plant as well as the assets created due to revamp-cumexpansion 

of the Hazira Plant and balance of ` 22.60 lakh (Previous 

Year ` 22.81 lakh) against pledge of Fixed Deposit Receipt of 

` 27.00 lakh (Previous year ` 27.00 lakh) 

Total 3,022.60 22.81 

SCHEDULE - 4 

UNSECURED LOANS 

Particulars 



( ` inlakh) 

Short Term Loans from Banks 

- Rupee Loans 20,977.90 - 

- Foreign Currency Loans 5,441.43 26,419.33 - - 

Total 26,419.33 - - 

41


SCHEDULE - 5 

FIXED ASSETS 

GROSS BLOCK DEPRECIATION/ AMORTISATION NET BLOCK 

( ` inlakh) 

Particulars 

As at 


Additions 

Ded/ 

Adj 

As at 


Upto 


For the 

year 

Adjustment 

Upto 


As at 


As at 


TANGIBLE ASSETS 

LAND 

Freehold 3,459.09 133.02 2.11 3,590.00 - - - - 3,590.00 3,459.09 

Leasehold 1,339.94 314.78 - 1,654.72 153.13 56.66 9.61 200.18 1,454.54 1,186.81 

Sub-total 4,799.03 447.80 2.11 5,244.72 153.13 56.66 9.61 200.18 5,044.54 4,645.90 

BUILDING 

Factory 5,902.45 717.52 - 6,619.97 3,473.45 208.22 (3.18) 3,684.85 2,935.12 2,429.00 

Administration* 2,034.29 160.98 46.92 2,148.35 578.90 39.26 5.08 613.08 1,535.27 1,455.39 

Administration- Leasehold - 611.55 (46.91) 658.46 - 3.21 (14.37) 17.58 640.88 - 

Township 3,565.95 2.14 - 3,568.09 943.18 58.95 - 1,002.13 2,565.96 2,622.77 

Sub-total 11,502.69 1,492.19 0.01 12,994.87 4,995.53 309.64 (12.47) 5,317.64 7,677.23 6,507.16 

ROADS, CULVERTS & DRAINS 

Factory 1,573.79 636.57 - 2,210.36 426.76 31.95 - 458.71 1,751.65 1,147.03 

Township 306.48 - - 306.48 105.03 5.02 - 110.05 196.43 201.45 

Sub-total 1,880.27 636.57 - 2,516.84 531.79 36.97 - 568.76 1,948.08 1,348.48 

PLANT, MACHINERY & OTHER 

EQUIPMENTS 99,008.32 4,565.85 26.91 103,547.26 75,093.30 2,145.30 16.26 77,222.34 26,324.92 23,915.02 

ROLLING STOCK 4,599.43 - - 4,599.43 3,288.07 185.93 - 3,474.00 1,125.43 1,311.36 

RAILWAY SIDINGS 2,024.38 25.09 - 2,049.47 2,024.38 0.13 - 2,024.51 24.96 - 

VEHICLES 445.97 309.18 36.93 718.22 200.16 39.10 25.65 213.61 504.61 245.81 

FURNITURE, FIXTURES & 

OTHER OFFICE EQUIPMENTS 4,797.76 328.87 162.41 4,964.22 3,398.55 270.27 123.73 3,545.09 1,419.13 1,399.21 

Sub-total 110,875.86 5,228.99 226.25 115,878.60 84,004.46 2,640.73 165.64 86,479.55 29,399.05 26,871.40 

Tangible Assets -I 129,057.85 7,805.55 228.37 136,635.03 89,684.91 3,044.00 162.78 92,566.13 44,068.90 39,372.94 

INTANGIBLE ASSETS 

COMPUTER SOFTWARE 14.22 - - 14.22 5.94 4.01 - 9.95 4.27 8.28 

Intangible Assets -II 14.22 - - 14.22 5.94 4.01 - 9.95 4.27 8.28 

ASSETS HELD FOR DISPOSAL-III 5.70 - 5.70 - - - - - - 5.70 

Current year’s Total (I+II+III) 129,077.77 7,805.55 234.07 136,649.25 89,690.86 3,048.01 162.78 92,576.08 44,073.17 39,386.91 

Previous year’s Total 124,060.19 10,937.78 5,920.20 129,077.77 88,116.59 3,062.11 1,487.84 89,690.86 39,386.91 35,943.60 

(* includes ` Nil (Previous Year ` 12.33 lakh) being the cost of building for which title deed is pending is to be executed) 

42

SCHEDULE - 6 

CAPITAL WORK IN PROGRESS 

( ` inlakh) 

Particulars As at 31.03.2011 


Civil Construction 

(a) Office & Factory 443.21 282.18 

(b) Roads, Culverts and Drainages 724.06 1167.27 37.02 319.20 

Plant & Machinery 

Railway Sidings 

2,493.10 781.60 

1234.43 31.55 

Revamp 

Urea/Ammonia Plant 69,528.26 8,598.59 

Power Plant 57.51 69,585.77 - 8,598.59 

(includes Material under inspection for ` 29,569.42 

lakh (Previous Year Nil) and Material in Transit for 

` 5,286.30 lakh (Previous Year Nil) 

Jetty at Hazira 

- 589.88 

Others 

103.12 136.87 

Total* 74,583.69 10,457.69 

* Note: Capital Work In Progress include advances against Capital Expenditure `2,552.04 lakh (Previous year `928.62 lakh). 

SCHEDULE - 7 

INVESTMENTS (LONG TERM) 

(Valuation as per Accounting Policy No. 6) 



(A) 

Government and Trust Securities: 

Unquoted: 

8.30% Fertiliser Companies Government of India (GOI) 500.00 1,000.00 

Special Bonds, 2023 

7.95% Fertiliser Companies GOI Special Bonds, 2026 1,650.00 3,300.00 

7% Fertiliser Companies GOI Special Bonds, 2022 1,800.00 3,600.00 

( ` inlakh) 

6.65% Fertiliser Companies GOI Special Bonds 2023 3,877.50 7,827.50 7,755.00 15,655.00 

(B) 

(a) 

SHARES 

Quoted: 

1,00,00,000 (1,00,00,000) Equity Shares of ` 10/- each, 1,000.00 1,000.00 

fully paid-up of Nagarjuna Fertilizers and 

Chemicals Ltd. (Market value ` 2805.00 lakh 

(Previous year ` 3065.00 lakh) 

Continued... 

43


SCHEDULE - 7 

INVESTMENTS (LONG TERM) 

(Valuation as per Accounting Policy No. 6) 



(b) Unquoted: 

(i) Investment in Subsidiaries/ Joint Ventures: 

2,67,57,500 (2,67,57,500) Shares of OMANI RO 1/- each, 32,853.46 32,853.46 

fully paid-up of Oman India Fertiliser Company, SAOC . 

8,90,13,635 (7,77,77,272) Equity Shares of `10/- each, 9,304.00 8,068.00 

fully paid up of Gujarat State Energy Generation Ltd. 

68,00,34,286 (68,00,34,286) Equity Share of `10/- each, 72,028.77 72,028.77 

fully paid up of Kribhco Shyam Fertilizers Ltd. 

1,80,002 (1,50,002) Equity Shares of `10/- each, fully 18.00 15.00 

paid up of Urvarak Videsh Ltd. 

12,00,00,000 (10,50,00,000) Equity shares of `10/- each, 12,000.00 10,500.00 

fully paid up of Kribhco Infrastructure Ltd. 

(ii) Investment in Others: 

44 

80 (80) Equity Shares of `25,000/- each, fully paid up 20.00 20.00 

Continued... 

( ` inlakh) 

of National Agricultural Cooperative Marketing 

Federation of India Ltd. 

50 (50) Equity Shares of `10,000/- each, fully paid up of 5.00 5.00 

Cooperative Bank of India Ltd. 

1,00,00,000 (1,00,00,000) Equity Shares of ` 5/- each, 500.00 126,729.23 500.00 123,990.23 

fully paid up of Indian Commodity Exchange Ltd. 

Total 135,556.73 140,645.23 

(Figures in brackets, relate to previous year) 

Quoted Investments: 

Book Value 

Market Value 

Unquoted Investments: 

Book Value 

1,000.00 

2,805.00 

134,556.73 

1,000.00 

3,065.00 

139,645.23 

SCHEDULE - 8 

INVENTORIES 

( ` inlakh) 



Inventories 

(As taken, valued and certified by the Management) 

Raw Materials 10.38 - 

Loose Tools 18.63 40.21 

Packing Materials 1,341.29 612.18 

Fuel 1,385.39 816.30 

Chemicals and Catalysts 1,819.75 882.50 

Stores and Spares 10,922.14 9,384.28 

Less: Provision for Surplus and Non-moving Stores (1,545.70) 9,376.44 (1,543.46) 7,840.82 

Construction Materials 311.44 289.68 

Finished Goods 

Own Manufactured 1,471.97 1,079.36 

Traded Products 4,813.53 6,285.50 175.83 1,255.19 

Stock-in-Process 75.04 55.14 

Total* 20,623.86 11,792.02 

* Note: Inventories includes `1860.33 lakh (Previous year `261.75 

lakh) towards Material in transit, under inspection and with Contractors.

SCHEDULE - 9 

SUNDRY DEBTORS 



( ` inlakh) 

Sundry Debtors (Unsecured) 

a) Debts outstanding for a period exceeding six months 

-Considered Good 16.74 7.79 

-Considered Doubtful 360.00 475.00 

b) Other Debts (Considered Good) 

-Claims due from Government of India 36,817.17 13,319.17 

-Others 6,738.42 6,346.52 

43,932.33 20,148.48 

Less: Provision for Doubtful Debts (360.00) (475.00) 

Total 43,572.33 19,673.48 

SCHEDULE - 10 

CASH AND BANK BALANCES 



( ` inlakh) 

Cash in hand 6.60 5.88 

Cheques in hand 1,783.15 791.20 

Remittances-in-transit 1,234.05 1,138.09 

Balances with Banks 

(i) Current/Cash Credit Accounts with Scheduled Banks* 13,331.21 4,399.65 

(ii) Fixed Deposits 

-With Scheduled Banks** 10,406.50 51,543.50 

-With Cooperative Banks 14,500.00 24,906.50 22,000.00 73,543.50 

Total 41,261.51 79,878.32 

* includes ` 27.19 lakh (Previous year `15.79 lakh) towards unclaimed/unpaid dividend. 

** includes Fixed Deposits of `49.50 lakh (Previous year `49.50 lakh) pledged with banks. 

SCHEDULE - 11 

OTHER CURRENT ASSETS 

( ` inlakh) 



Interest Accrued but not due: 

Fertiliser Bonds 112.07 224.14 

Deposit with Banks 394.16 2,124.58 

Total 506.23 2,348.72 

45


SCHEDULE - 12 

LOANS AND ADVANCES 



( ` inlakh) 

(Unsecured considered good unless otherwise stated ) 

Loans to Employees 

6,736.29 6,873.86 

Secured to the extent of `6,555.55 lakh (Previous Year 

`6,634.30 lakh) and includes interest accrued but not 

due `2,447.40 lakh (Previous Year `2,523.89 lakh). 

Advances and Other amounts recoverable in cash or in kind 

or for value to be received : 

a) Subsidiaries/Joint Ventures 

1,195.32 1,439.38 

b) Others: 

Considered Good 2,668.81 1,560.69 

Considered Doubtful 0.70 0.70 

2,669.51 1,561.39 

Less: Provision for Doubtful Advances (0.70) 2,668.81 (0.70) 1,560.69 

Securities and Other Deposits 

123.51 118.38 

Claims and Other Recoverables : 

Considered Good 3,832.84 3,486.57 

Considered Doubtful 7.17 7.17 

3,840.01 3,493.74 

Less: Provision for Doubtful Recoverables (7.17) 3,832.84 (7.17) 3,486.57 

Total 14,556.77 13,478.88 

SCHEDULE - 13 

CURRENT LIABILITIES 

( ` inlakh) 



Sundry Creditors 

-Subsidiaries/Joint Ventures/Associates 8.36 37.05 

-Others 26,936.97 26,945.33 10,689.93 10,726.98 

Earnest Money/Security Deposits 3,263.63 3,014.05 

(includes `32.31 lakh (Previous Year `2.31 lakh) 

from Subsidiaries/Joint Ventures) 

Advances from Customers 2,266.77 685.16 

Unclaimed/Unpaid Dividend 41.29 37.02 

Interest Accrued but not due on loans 115.35 - 

Other Liabilities 7,922.83 9,412.72 

Total 40,555.20 23,875.93 

46

SCHEDULE - 14 

PROVISIONS 

Particulars 



( ` inlakh) 

Income Tax (Net of tax payments) 1,040.25 2,558.98 

Fringe Benefit Tax (Net of tax payments) 60.50 60.50 

Proposed Dividend 6,928.86 7,767.40 

Cooperative Education Fund 200.15 228.03 

Long Term Employees' Benefits 11,701.51 11,771.45 

Total 19,931.27 22,386.36 

SCHEDULE - 15 

CONCESSION/REMUNERATION FROM GOVERNMENT OF INDIA 

( ` inlakh) 

Particulars Year ended 31.03.2011 


Price Concession 113,186.26 59,591.57 

Freight Subsidy 29,319.80 27,666.10 

Handling Remuneration 10,178.50 8,711.31 

Total 152,684.56 95,968.98 

SCHEDULE - 16 

OTHER REVENUE 

( ` inlakh) 



Income from Long Term Investments 

(i) Interest on Fertiliser Bonds 1,113.06 1,113.05 

(ii) Dividend 

Joint Ventures/Associates 14,705.46 14,548.90 

Others 50.15 15,868.67 0.15 15,662.10 

Other Income 

(i) Interest from 

Scheduled/ Cooperative Banks and Financial Institutions 4,027.65 6,373.86 

Others 320.80 4,348.45 204.23 6,578.09 

(ii) Rent and Other Recoveries from Staff 106.72 117.15 

(iii) Service Charges from Hazira Ammonia Extension Project 1,755.82 1,737.15 

(iv) Exchange Rate Variations (Net) 2,121.02 26.46 

(v) Others 5,775.57 6,357.21 

Total 29,976.25 30,478.16 

47


SCHEDULE - 17 

ACCRETION/(DECRETION) IN STOCKS: 



( ` inlakh) 

Closing Stock: 

Finished Goods 6,285.50 1,255.19 

Stock-in-Process 75.04 6,360.54 55.14 1,310.33 

Opening Stock: 

Finished Goods 1,255.19 5,095.94 

Stock-in-Process 55.14 1,310.33 33.97 5,129.91 

Net Accretion/(Decretion) 5,050.21 (3,819.58) 

SCHEDULE - 18 

CONSUMPTION OF RAW MATERIALS AND OTHERS 

( ` inlakh) 



Raw Materials* 94,042.55 59,846.65 

Packing Materials 7,672.88 7,013.08 

Chemicals and Catalysts 864.73 1,122.68 

Power, Fuel and Water 31,580.29 28,663.58 

Total 134,160.45 96,645.99 

* includes Purchase Tax of ` 626.96 lakh paid on assessment of earlier years. 

SCHEDULE - 19 

EMPLOYEES' REMUNERATION AND BENEFITS 

( ` inlakh) 

Particulars Year ended 31.03.2011 Year ended 31.03.2010 

Salaries, Allowances, Wages and Bonus 17,287.60 15,970.00 

Contribution to Provident Fund and Other Funds 1,494.94 1,239.91 

Contribution to Gratuity and Other Benefit Schemes 1,190.05 1,611.33 

Other Welfare Expenses 4,158.73 3,667.49 

Total 24,131.32 22,488.73 

SCHEDULE - 20 

MANUFACTURING, ADMINISTRATION, DISTRIBUTION AND OTHER EXPENSES 

48 

( ` inlakh) 



Repairs and Maintenance: 

Buildings 501.62 604.82 

Plant, Machinery and Other Equipments 1586.76 3433.58 

Others 999.98 3088.36 793.43 4831.83 

Consumption of Loose Tools 

23.01 35.04 

Electricity and Water Charges 

222.16 175.52 

Continued...

SCHEDULE - 20 

MANUFACTURING, ADMINISTRATION, DISTRIBUTION AND OTHER EXPENSES 

SCHEDULE - 22 

PRIOR PERIOD ADJUSTMENTS (NET) 

Continued... 

( ` inlakh) 



Travelling Expenses: 

Directors 82.47 95.34 

Others 776.90 859.37 468.15 563.49 

Printing and Stationery Expenses 117.12 110.37 

Rent, Rates and Taxes 516.01 462.21 

Communication Expenses 181.09 181.98 

Insurance 987.95 887.28 

Farmers Benefit and Publicity 695.18 772.75 

Warehousing 311.87 464.53 

Packing, Freight and Handling 36,064.43 33,135.34 

Seed Multiplication Expenses 800.70 550.07 

Directors' Fees 13.72 9.73 

Vehicle Hire, Running and Maintenance Expenses 443.18 363.41 

Audit Fees (includes ` 2.05 lakh for Branch Audit 15.29 10.97 

(Previous year ` 2.14 lakh)) 

Legal and Professional Charges 155.26 183.77 

Fixed Assets Written Off/ Amount Charged Off 12.60 60.07 

Loss on Sale of Fixed Assets 25.62 15.70 

Provision for Surplus and Non-Moving Stores 2.24 90.51 

Loss on buy back of Fertiliser Bonds by Govt. of India 446.21 - 

Miscellaneous Expenses 1276.25 1241.38 

Total 46,257.62 44,145.95 

SCHEDULE - 21 

INTEREST AND FINANCE CHARGES 

( ` inlakh) 


Interest 

On Term Loan 0.02 0.03 

On Cash Credit and Short Term Loans 888.51 518.28 

Bank and Other Finance Charges 1034.91 58.30 

Total 1923.44 576.61 

( ` inlakh) 



PRIOR PERIOD INCOME 

Others (6.19) - 

(6.19) 0.00 

PRIOR PERIOD EXPENDITURE 

Depreciation (Net) 6.90 (14.65) 

Others - (7.17) 

6.90 (21.82) 

PRIOR PERIOD ADJUSTMENTS (NET) (13.09) 21.82 

49


SCHEDULE - 23 

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 

MARCH 31, 2011. 

1. BASIS OF PREPARATION 

The Financial Statements are prepared on 

accrual basis of accounting under the historical 

cost convention on going concern basis in 

accordance with the Generally Accepted 

Accounting Principles in India, applicable 

Accounting Standards issued by the Institute of 

Chartered Accountants of India and the 

provisions of Multi State Cooperative Societies 

Act, 2002. 

2. USE OF ESTIMATES 

The preparation of financial statements 

requires estimates and assumptions to be 

made that affect the reported amount of assets 

and liabilities on the date of the financial 

statements and the reported amount of 

revenues and expenses during the reporting 

period. Difference between the actual results 

and estimates are recognized in the period in 

which the results are known/ materialise. 

3. FIXED ASSETS 

(i) Fixed Assets are stated at historical cost less 

accumulated depreciation/ amortisation. 

Cost comprises of the purchase price and 

any attributable cost of bringing the asset 

to its working condition for its intended 

use. 

(ii) Assets retired from active use and held for 

disposal are shown separately under Fixed 

Assets at lower of net book value and 

estimated realizable value. 

(iii) Identified machinery spares, which can be 

used only in connection with an item of 

Fixed Asset and whose use is expected to 

be irregular are capitalized. 

(iv) Intangible Assets 

An intangible asset is recognised where it is 

probable that the future economic benefit 

attributable to the asset will flow to the Society 

and the cost of the asset can be measured 

reliably. Such assets are stated at cost less 

accumulated amortization. 

4. IMPAIRMENT OF ASSETS 

At each Balance Sheet date a review is made 

whether indication exists that asset has been 

impaired. In case such indication exists, an 

impairment loss is recognized wherever 

carrying amount of an asset exceed its 

recoverable amount. Recoverable amount is 

higher of the 'net selling price' of assets and 

'value in use '. 

5. BORROWING COST 

Borrowing costs that are attributable to the 

acquisition or construction of qualifying assets 

are capitalized. All other borrowing costs are 

recognized as expenses in the period in which 

they are incurred. 


(i) Current investments are valued at lower of 

cost and fair value determined on an 

individual assessment basis. 

(ii) Long Term investments are carried at cost. 

Provision for diminution in the value of 

investments is made to recognize a decline, 

other than temporary, in the value of such 

investments. 

7. CATALYSTS AND RESINS 

Initial charges of Catalysts and Resins issued at 

the time of commissioning of the Plant are 

capitalised. Subsequent replacements are 

charged to revenue in the year of replacement. 

8. INVENTORIES 

Inventories are valued at lower of cost and net 

realizable value. 

(A) Cost in respect of various types of 

inventories is computed as under: 

50

(i) Raw Materials, Packing Materials, 

Stores and Spares at monthly 

weighted average cost. 

(ii) Stock in Process at direct cost and 

appropriate portion of overheads. 

(iii) Finished Goods: 

(a) Manufactured Urea lying at Plant at 

Annualised Cost of Production. 

(b) Manufactured Urea lying at 

warehouses at Annualized Cost of 

Production after adjustment of 

subsidy determined as per norms 

of the Fertilizers Industry 

Coordination Committee (FICC). 

(c) Imported Urea at procurement 

cost determined on weighted 

average basis plus direct expenses 

less reimbursement of handling 

remuneration as fixed by 

Government of India (GOI). 

(d) Imported Phosphatic/Potassic 

Fertilizers at procurement cost 

determined on weighted average 

basis plus direct expenses after 

adjustment of subsidy determined 

as per the norms of GOI. 

(e) Stocks of seeds, Chemicals and 

Indigenous Phosphatic Fertilisers 

at procurement cost /production 

cost. 

(iv) Spares, which are repaired, either 

departmentally or through outside 

agencies are taken into inventory at a 

nominal cost of ` 1/- each. 

(B) Net Realisable Value of Finished Goods is 

computed as under: 

(i) Concession price determined in 

accordance with norms of FICC in 

respect of urea stocks lying at Plant. 

(ii) Estimated selling price in respect of 

stocks of fertilisers and other products 

lying at warehouses/ports. 

(C) The diminution in the value of obsolete, 

unserviceable, slow moving and surplus 

stores and spares is ascertained on review 

and provided for accordingly. 

9. REVENUE RECOGNITION 

(a) SALE OF GOODS 

Sales are recognized upon the transfer of 

significant risks and reward of ownership 

to the customers, evidenced by issue of 

Lifting certificates/Invoices to customers. 

(b) CONCESSION FROM GOVERNMENT OF 

INDIA 

Fertilizers and freight Subsidy from 

Government of India under concession 

scheme is recognised on a systematic basis 

to match with the related costs that they 

are intended to compensate. 

( c ) OTHER INCOME 

(i) Dividend income is recognized when 

the right to receive payment is 

established. Interest income is 

recognized on time proportion basis 

taking into account amount 

outstanding and rate applicable. 

(ii) Interest on delayed payment from 

customers, insurance claims, Railway 

claims for finished goods, claims 

receivable on account of dispatch 

money on shipments, Additional 

Handling Remuneration, Subsidy on 

Seed and Bio-Fertilizers, Right of use 

of land and Difference in service 

charges receivable from/ payable to 

M/s KRIBHCO Shyam Fertilizers Ltd., 

are recognized when no significant 

uncertainty exists with regard to the 

amount to be realized and ultimate 

collection thereof. 

(iii) Income from Scrap/ salvage and waste 

material is recognised when sold. 

51


10. DEPRECIATION 

(a) Depreciation on Fixed Assets is charged on 

Straight Line Method as follows - 

(i) On the assets added upto March 31, 

1991 at the rates derived from the 

rates provided for the corresponding 

assets under the Income Tax Rules in 

force at the time of purchase or 

acquisition of assets. 

(ii) On the assets added from April 1, 

1991, at the rates prescribed under 

Schedule XIV to the Companies Act, 

1956. 

(iii) With effect from April 1, 2001, 

additions to/deductions during the 

year are depreciated on pro-rata 

basis. 

(b) Assets individually costing upto ` 5,000/- 

are fully depreciated in the year of 

acquisition. 

(c) Leasehold lands and buildings: 

(i) Leasehold lands are amortized over 

the period of lease. 

(ii) Leasehold buildings and buildings 

constructed on leasehold lands are 

fully depreciated over the period of 

lease in case period of lease is less 

than the useful life derived from the 

rates as per Schedule XIV of the 

Companies Act 1956. 

(d) Intangible assets comprising of 

computer software are amortized on 

straight line method over a period of 

legal right or three years whichever is 

earlier on pro-rata basis. 

11. FOREIGN CURRENCY TRANSACTIONS 

a) Foreign currency transactions are recorded 

on initial recognition at the exchange rate 

prevailing on the date of the transaction. 

On settlement of transactions, the realized 

gains and losses on foreign exchange 

transactions are recognized in the Profit 

and Loss Account. 

b) Foreign currency monetary items 

remaining unsettled at the end of the year 

are reported at year-end rates. The 

exchange rate differences arising thereof 

are recognized in the Profit and Loss 

Account. Non Monetary items which are 

carried at historical cost denominated in a 

foreign currency, are reported using the 

exchange rate at the date of the 

transaction. 

c) Financial statements of Foreign branch are 

considered to be integral and are 

translated as follows: 

- Monetary assets and liabilities at rates 

of exchange prevailing at the end of the 

year. 

- Non-monetary items at exchange rates 

prevailing on the date of transaction. 

- Revenue items are accounted for at the 

exchange rate, which approximates the 

rate prevailing as on the date of 

transaction. 

- Resultant translation differences 

arising there from are recognized in the 

Profit and Loss Account. 

d) In respect of forward contracts premium or 

discount arising at the inception of forward 

exchange contracts is amortised as an 

expense or income over the period of the 

contract. Forward contracts remaining 

unsettled at the end of the year are 

reported at year end rates. Any profit or 

loss arising on cancellation or renewal of 

forward exchange contracts is recognized 

as income or expense in the year in which 

such profit or loss arises. 

12. EMPLOYEE BENEFITS 

a) Short term Employee Benefits are 

recognized as an expense on an 

undiscounted basis in the Profit & Loss 

Account of the year in which the related 

service is rendered. 

b) The employees' group gratuity fund 

scheme and provident fund scheme are 

the Society's defined benefit plans, which 

52

are funded by the Society, and are 

managed by separate trusts. 

i) The present value of Society's 

obligations under gratuity scheme is 

determined on the basis of actuarial 

valuation at the year end and the fair 

value of plan assets is reduced from 

the gross obligation under gratuity 

scheme, to recognize the obligation 

on net basis. 

ii) The contribution to Provident Fund 

and Family Pension Scheme is 

recognized as expense and is charged 

to the Profit & Loss Account. 

The Society has an obligation to make 

good the shortfall, if any, between the 

return from the investments of 

Provident Fund Trust and the Notified 

interest rates. Liability, on account of 

such shortfall, if any, is recognized on 

the basis of actuarial valuation carried 

out at the year end. 

c) The liability for other defined benefit 

plans such as Leave Encashment/ 

Compensated Absences, long service 

award, farewell gift and travel to home 

town on superannuation are recognized 

on the basis of an actuarial valuation 

made at the end of the year. 

d) Gains and Losses arising out of actuarial 

valuation are recognized immediately in 

the Profit & Loss Account. 

13. OPERATING LEASES 

Assets acquired on leases wherein a significant 

portion of the risks and rewards of ownership 

are retained by the Lessors are classified as 

'Operating Leases'. Lease rentals paid for such 

leases are recognised as an expense on straight 

line basis over the term of lease. 

14. TAXATION 

(a) Provision for current income tax is made on 

the basis of assessable income as per 

Income Tax Act, 1961. 

(b) Deferred Tax resulting from "timing 

differences" between taxable income and 

accounting income is determined by using 

the tax rates and the tax laws that have 

been enacted or substantively enacted as 

on the Balance Sheet date. Deferred tax 

assets are carried forward to the extent it is 

reasonably / virtually certain that future 

taxable profit will be available against 

which such Deferred Tax assets can be 

realised. 

15. PRIOR PERIOD INCOME / EXPENDITURE 

Income/Expenditure relating to prior period(s) 

which does not exceed ` 5,000/- in each case is 

treated as Income/Expenditure for the Current 

Year. 

16. PREPAID EXPENSES 

Expenditure upto ` 5,000/- in each case, 

incurred in advance relating to the following 

year is accounted for in the year in which the 

expenditure is incurred. 

17. PROVISIONS, CONTINGENT LIABILITIES 

AND CONTINGENT ASSETS 

(a) Provision is recognized when the Society 

has a present obligation as a result of a past 

event and it is probable that an outflow of 

resources will be required to settle the 

obligation and in respect of which a reliable 

estimate can be made. Provisions are 

determined based on management 

estimate required to settle the obligation 

at the balance sheet date and are not 

discounted to present value. 

(b) Contingent liabilities are disclosed on the 

basis of judgment of the management/ 

independent experts. These are reviewed 

at each balance sheet date and are 

adjusted to reflect the current 

management estimate. 

(c ) Contingent Assets are neither recognized 

nor disclosed in the financial statements. 

53


SCHEDULE - 24 

NOTES FORMING PART OF THE STATEMENT OF ACCOUNTS 

FOR THE YEAR ENDED MARCH 31, 2011 

1. CAPITAL COMMITMENTS 

Estimated Value of contracts remaining to be executed on Capital Account (Net of Advances and 

Letters of Credit for capital items) and not provided for is `38,604.02 lakh (Previous Year `27,860.56 

lakh). 

2. CONTINGENT LIABILITIES 

(i) 

As on 


Claims against the Society not acknowledged as debts 

(a) Claims against Society/Disputed Liabilities 172.95 16.00 

(b) Disputed liability relating to Tax matters 2,785.63 2,680.50 

(c) Disputed liability relating to labour matters 16,286.22 14,541.68 

(d) Court cases/ Arbitration with Contractors/ Suppliers 1,279.27 3,887.91 

(ii) Guarantees/Counter Guarantees and Letters of Credit given by 8117.19 32,518.06 

Banks on behalf of the Society 

(iii) 

As on 


Total 20,524.07 21,126.09 

Guarantees/Counter Guarantees to lenders and others given by 

the Society in respect of Joint Ventures/ Subsidiaries (including 

Surety Bonds and Letter of Comfort). 1,34,233.01 1,20,624.56 

3. DEFERRED TAX ASSET / LIABILITY 

Deferred tax has been worked out in consonance with Accounting Standard 22 - "Accounting for 

Taxes on Income", issued by the Institute of Chartered Accountants of India. Major elements of 

Liability: 

deferred tax liabilities/assets created for tax effects of timing difference are as under: 

As on 


• Depreciation 6,169.12 5,855.81 

Sub-total 6,169.12 5,855.81 

Assets: 

• Provision for Employees benefits allowable on payment basis 3,615.77 3,637.38 

• Provision for Doubtful Debts/Advances 113.67 149.20 

• Provision for Wage Revision - 298.20 

• Provision & Other Expenses allowable on payment basis 189.68 107.72 

Sub-total 3,919.12 4,192.50 

Net Deferred Tax Liability / (Asset) 2,250.00 1,663.31 

Net Deferred Tax Liability charged to Profit and Loss Account 586.69 1,160.42 

( ` inlakh) 

( ` inlakh) 

As on 


54

4. 

The Society has been repatriating its equity in terms of Section 35 of the Multi State Cooperative 

Societies Act, 2002 and Bye Law No. 8(a) of KRIBHCO to the Government of India. As on March 31, 

2011, cheques worth `8,740 lakh (Previous Year `11,679 lakh) towards repatriation of share capital 

have not been presented for payment by Government of India. 

5. IMPAIRMENT OF ASSETS 

In accordance with Accounting Standard (AS) 28 on “Impairment of Assets”, the Society has assessed 

as on the balance sheet date whether there are any indications with regard to impairment of any of 

the assets. Based on such assessment it has been ascertained that no potential loss is present and 

therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment 

loss has been provided in the books of accounts. 

6. BORROWING COST 

Borrowing cost capitalised during the year are ` 204.21 lakh (Previous Year nil ). 

7. FOREIGN CURRENCY EXPOSURE 

Amount of foreign currency exposure not hedged by derivative instruments or otherwise: 

Sl.No. Particulars Amount of ` in lakh 

Foreign Currency 

(i) Borrowings, including interest accrued but not due thereon US $ 74,90,939 3,344.70 

Euro 33,15,510 2,096.73 

(ii) Sundry Creditors/ deposits and retention monies US $ 7,031 3.00 

Euro 1,04,60,671 6,616.00 

UK £ 2,45,450 177.00 

JP ¥ 84,83,208 48.00 

(iii) Sundry Debtors and Bank Balances US $ 8,87,058.37 3,960.72 

(iv) Unexecuted amount of contracts remaining to be executed US $ 1,28,68,250 5,745.67 

Euro 47,08,940 2,977.94 

TOTAL 24,969.76 


In terms of the the Joint Venture Agreement (JVA) between the Society and Shyam Basic 

Infrastructure Projects Private Limited (SBIPPL) which have assigned their rights to STL Fertilizers 

Private Limited (STL), the Society had irrevocably committed to Exit Option under which the 'Put 

Option' shall be exercised by STL or its lenders any time up to March 31, 2012. Hence, the Society has 

following commitment on account of exit option to STL any time up to March 31, 2012: 

i) On `10,502.00 lakh (10,50,19,998 number of equity shares of KSFL) (Previous Year `10,502.00 

lakh, 10,50,19,998 number of equity shares of KSFL) with a return of 7% p.a. at simple rate of 

interest from the dates of investments (Nov/Dec 2005). 

ii) On `1,500.29 lakh (1,50,02,857 number of equity shares of KSFL) (Previous Year `1,500.29 

lakh , 

1,50,02,857 number of equity shares of KSFL), at par, with no return. 

55


9. CURRENT ASSETS, LOANS AND ADVANCES 

i) Balances of some of the contractors/customers/suppliers/receivable/payable and deposits with 

others are subject to confirmation/reconciliation and consequential adjustments, if any, which in 

the opinion of management would not be material. 

ii) In the opinion of the management, the value of Current Assets, Loans and Advances on 

realisation in the ordinary course of business will not be less than the value at which these are 

stated. 

10. PROFIT AND LOSS ACCOUNT 

Provision for Taxation has been made after considering provisions of the agreement between the 

Republic of India and the Sultanate of Oman for the Avoidance of Double Taxation in respect of 

dividend received from Oman India Fertilizer Company SAOC (OMIFCO) by the Permanent 

Establishment of Society in the form of a branch in Oman. 

11. SUBSIDY FROM GOVERNMENT OF INDIA 

i) Nitrogenous fertilisers are under the concession scheme as notified by Government of India 

(GOI) from time to time. The concession on nitrogenous fertilisers has been accounted for 

keeping in view the practice in the industry, norms, parameters and guidelines fixed/followed by 

Fertiliser Industry Co-ordination Committee (FICC) from time to time, pending notification by the 

FICC. On fixation of final concession price, necessary adjustments, if any, has been made in the 

accounts for the year in which such price is fixed. 

ii) Concession on imported phosphatic fertilisers has been accounted for based on the concession 

rate as notified by Govt. of India under Nutrient Based Subsidy Scheme (NBS). 

iii) Freight Subsidy has been accounted for in terms of the schemes notified by GOI/FICC. 

12. EMPLOYEE BENEFITS 

A) Disclosures as required under Accounting Standard 15 (Revised) "Employee Benefits", issued by 

the Institute of Chartered Accountants of India, in respect of Defined Benefit Obligations are as 

under:- 

i) The principal actuarial assumptions used are as below - 

Year ended 


Year ended 


i) Method Used Projected Unit Credit Method 

ii) Discount Rate 8.00% 8.00% 

iii) Expected rate of return on Plan Assets-Gratuity Fund 9.45% 9.45% 

iv) Expected rate of increase in Compensation Level 6.00% 6.00% 

The estimate of future salary increase considered in actuarial valuation, take account of inflation, 

seniority, promotion and other relevant factors, such as supply and demand in the employment 

market. 

56

ii) Changes in the present value of the obligations 

Gratuity (Funded) 

Year ended 


Year ended 


Leave Encashment 

(Unfunded) 

Year ended 


Present Value of Obligations as at beginning of year 11,191.06 9,322.45 9,110.26 7,664.76 

Interest Cost 895.29 745.80 728.82 613.18 

Current Service Cost 538.69 494.03 455.63 416.65 

Benefits Paid (689.14) (298.14) (1,151.88) (1,247.75) 

Actuarial Loss on Obligations 757.58 926.92 1,270.85 1,663.42 

Present Value of Obligations as at end of the year 12,693.48 11,191.06 10,413.68 9,110.26 

( ` inlakh) 

Year ended 


iii) Changes in the fair value of the plan assets 


Year ended 


Year ended 



(Unfunded) 

Year ended 


Fair Value of Plan Assets as at beginning of the year 8,547.70 6,161.27 - - 

Actual return on Plan Assets 1,053.90 738.42 - - 

Employers' Contribution 3,146.43 1,946.15 - - 

Benefits Paid (689.14) (298.14) - - 

Fair Value of Plan Assets as at end of the year* 12,058.89 8547.70 - - 

( ` inlakh) 

Year ended 


*Gratuity Fund is managed by Life Insurance Corporation of India (LIC). Individual investment-wise details of Plan Assets are not 

provided by the LIC. 

iv) Liability recognized in the Balance Sheet - 


Year ended 


Year ended 



(Unfunded) 

Year ended 


Present Value of Obligations as at end of the year 12,693.48 11,191.06 10,413.68 9,110.26 

Fair Value of Plan Assets as at end of the year 12,058.89 8,547.70 - - 

Net unfunded Liability / (Assets) recognized in Balance Sheet 634.59 2,643.36 10,413.68 9,110.26 

( ` inlakh) 

Year ended 


v) Expenses recognized in the Profit and Loss Account - 

( ` inlakh) 


Year ended 


Year ended 



(Unfunded) 

Year ended 


Year ended 


Current Service Cost 538.69 494.04 455.63 416.65 

Interest Cost 895.29 745.80 728.82 613.18 

Expected return on Plan Assets (807.76) (582.24) - - 

Net Actuarial (Gain)/Loss recognized during the year 511.44 770.73 1270.85 1,663.42 

Total Expense recognized in Profit and Loss Account 1137.66 1,428.33 2455.30 2,693.25 

57


vi) Experience adjustments 

Year ended 


Year ended 


Gratuity 

(i) Plan Assets- Loss/(Gain) - 159.27 

(ii) Obligations- Loss/(Gain) 757.58 1,357.63 

Leave Encashment (Obligations)-Loss/(Gain) (1,270.85) (2,028.76) 

( ` inlakh) 

B) Provision for long service award, farewell gift and travel to home town on superannuation 

amounting to `527.05 lakhs (Previous Year Nil) have been made on the basis of actuarial 

valuation at the year end and expensed to Profit & Loss Account. 

C) The Society pays fixed contribution to provident fund at predetermined rates to a separate 

trust, which invests the funds in permitted securities. Contribution to family pension scheme is 

paid to the appropriate authorities. The contribution of `1,544.15 lakhs (Previous year 

`1,882.50 lakhs) to the funds for the year is recognized as expense and is charged to the Profit & 

Loss Account. The obligation of the Society is to make such fixed contribution and to ensure a 

minimum rate of return to the members as specified by Government of India. As per report of 

the actuary, liability is recognized for `126.18 lakhs (Previous Year Nil) for expected shortfall 

between fair value of PF Trust Assets and present obligations determined as per actuarial 

valuation made at the year end. 

13. OPERATING LEASE 

The Society's significant leasing arrangements are in respect of Operating Lease of premises for 

offices of the Society and residential use of employees. These leasing agreements are usually 

renewable on mutually agreed terms but are cancelable. These payments are shown as "Rent, 

Rates and Taxes" in Schedule - 20 of 'Manufacturing, Administration, Distribution and Other 

Expenses.' 

14. PRIMARY SEGMENT - BUSINESS SEGMENT 

i) Business Segment: The Society's operating business are organized and managed according to 

the nature of products and services provided. The three identified segments are 'Urea and 

Ammonia-Manufactured', 'Imported Fertilizers' and 'Other Products'. The 'Urea and Ammonia- 

Manufactured' segment includes manufacture and marketing of Urea and Ammonia. 

'Imported Fertilizers' segment includes trading of Imported OMIFCO Urea, Imported 

Phosphatic/ Potasic Fertilizers. 'Other Products' segment includes Trading and Manufacturing 

of bio-fertilizers, seeds, pesticides, indigenous fertilizers, agro inputs, argon gas etc. 

ii) Segment Accounting Policies: Direct revenue and expenses are allocated to respective 

segments. Indirect revenue and expenses are allocated amongst the segments on a reasonable 

basis. Segment Assets include all operating assets used by segment comprising Fixed Assets, 

58

Current Assets, Loan and Advances. Segment Liabilities include all operating liabilities and 

consist principally of creditors and accrued liabilities. Corporate income including dividend, 

interest income and expenses which are not identifiable to any particular business segment are 

considered as part of 'unallocated' income/expenses. 

REVENUE 

Particulars 

Urea & Ammonia 

Manufactured 

Year ended 

31.03.11 31.03.10 

Imported 

Fertilisers 

Year ended 

31.03.11 31.03.10 

Other 

Products 

Year ended 

31.03.11 31.03.10 

Sales 105,606.51 92,348.82 85,902.19 63,514.06 11,216.13 7,875.51 202,724.83 1,63,738.39 

Concession/Remuneration 68,162.42 47,725.47 84,522.14 48,243.51 - - 152,684.56 95,968.98 

from Government of India 

Accretion/Decretion In Stocks 404.13 (927.07) 4,598.60 (2,841.97) 47.47 (50.54) 5,050.20 (3,819.58) 

Other Revenue 636.60 413.52 1,239.17 495.53 1,975.02 1,712.07 3,850.79 2,621.12 

Total Revenue 174,809.66 1,39,560.74 176,262.10 109,411.13 13,238.62 9,537.04 364,310.38 2,58,508.91 

EXPENDITURE 

Operating Expenses 175,094.08 1,37,368.49 171,428.03 108,162.95 10,252.21 7,606.79 356,774.32 2,53,138.23 

Total Expenditure 175,094.08 1,37,368.49 171,428.03 108,162.95 10,252.21 7,606.79 356,774.32 2,53,138.23 

Segment Operating Result (284.42) 2,192.25 4,834.07 1,248.18 2,986.41 1,930.25 7,536.06 5,370.68 

Unallocated Expenses 10,635.35 7,950.61 

Other Revenue including Dividend 20,880.16 20,165.92 

Interest Income 5,245.30 7,691.14 

Income Tax 2,971.27 2,460.43 

Net Profit after Tax 20,054.90 22,816.70 

Segment Assets 92,379.53 58,370.48 14,864.89 9,396.82 9,487.54 8,978.16 116,731.96 76,745.46 

Unallocated Corporate Assets - - - - - - 183,418.63 2,30,458.11 

Capital Work-in-Progress 74,570.20 10,198.02 2.92 249.08 10.58 10.58 74,583.70 10,457.68 

Total Assets 166,949.73 68,568.50 14,867.81 9,645.90 9,498.12 8,988.74 374,734.29 3,17,661.25 

Segment Liabilities 48229.54 26,641.57 6,913.68 3,098.42 32.32 218.96 55,175.54 29,958.95 

Unallocated Corporate Liabilities - - - - - - 29,873.84 17,989.46 

Total Liabilities 48229.54 26,641.57 6,913.68 3,098.42 32.32 218.96 85,049.38 47,948.41 

OTHER INFORMATION 

Capital Expenditure incurred 68,430.25 10,538.02 413.68 309.02 3,087.62 8,195.86 71,931.55 19,042.90 

during the year (including CWIP)* 

Depreciation* 2,140.53 1,953.35 108.79 90.26 805.59 1,018.50 3,054.91 3,062.11 

Non Cash Expenditure (other than 532.49 192.86 - - - - 532.49 192.86 

depreciation)* 

* includes unallocated items also. 

Note: Considering the increased volume of trading in Imported Fertilisers in the year, realignment of reportable segments has been carried out. 

Total 

( ` inlakh) 

Year ended 

31.03.11 31.03.10 

iii) 

SECONDARY SEGMENT 

The operation of the Society is mainly carried out within the country and therefore no reportable 

geographical segments. 

59


15. RELATED PARTY DISCLOSURES 

List of related parties: 

(A) Key Management Personnel: 

(B) 

(C) 

(D) 

(E) 

I) Mr. B.D. Sinha - Managing Director 

ii) Mr. R. Kamra - Finance Director 

iii) Mr. N.S. Rao - Marketing Director 

iv) Mr. S. Jaggia - Operations Director (w.e.f. 11.05.2010) 

Subsidiary Companies: 

i) KRIBHCO Shyam Fertilisers Limited (KSFL) 

ii) KRIBHCO Infrastructure Limited (KRIL) 

Joint Ventures: 

i) Oman India Fertiliser Co.SAOC (OMIFCO) 

ii) Urvarak Videsh Limited (UVL) 

iii) Gujarat State Energy Generation Limited (GSEG) 

Associates: 

i) Gramin Vikas Trust (GVT) 

Transactions with Related Parties: 

( ` inlakh) 

Nature of Transaction 

Related Party 

Period ended 

31.03.2011 31.03.2010 

Investment during the year KSFL - 8,500.43 

KRIL 1,500.00 10,500.00 

UVL 3.00 10.00 

GSEG 1,236.00 793.00 

Total 2,739.00 19,803.43 

Dividend Received OMIFCO 14,480.06 14,384.00 

GSEG 225.39 164.90 

Total 14,705.45 14,548.90 

Receipts for Fee/ Services KRIL 110.30 5.00 

KSFL 311.73 254.97 

OMIFCO 1803.06 1,778.95 

Total 2,225.09 2,038.92 

Payment of Fee for Management & KRIL 94.64 - 

Erection Services for Railway Siding 

Total 94.64 - 

Rental Income KSFL 11.20 11.06 

KRIL 0.70 - 

GVT 3.43 8.05 

Total 15.33 19.11 

Purchases of Finished Goods KSFL 2,165.59 1,280.92 

GVT 10.60 - 

Total 2,176.19 1,280.92 

60 

Continued...

Nature of Transaction 

Related Party 

Period ended 

31.03.2011 31.03.2010 

Grants/ Contribution GVT 102.97 102.97 

Total 102.97 102.97 

Recovery towards expenses incurred KRIL 68.06 67.10 

GVT 15.32 27.26 

KSFL 123.92 91.96 

OMIFCO - 1.77 

Total 207.30 188.09 

Amount Payable KSFL 5.12 5.14 

KRIL - 28.40 

GVT 3.24 3.51 

Total 8.36 37.05 

Deposit Received KSFL 2.31 2.31 

GSEG 30.00 - 

Total 32.31 2.31 

Amount Recoverable KSFL 801.76 1,005.91 

OMIFCO 393.56 433.47 

Total 1,195.32 1,439.38 

Loan outstanding 

Mr. R. Kamra Finance Director 0.08 0.59 

Total 0.08 0.59 

Managerial Remuneration 

Mr. B. D. Sinha Managing Director 29.78 35.74 

Mr. R. Kamra Finance Director 28.42 34.78 

Mr. N. S. Rao Marketing Director 21.45 12.22 

Mr. I. N. Bansal Operations Director - 34.16* 

Mr. S. Jaggia Operations Director 22.98 - 

*superannuated on 31.01.2010. 

Total 102.63 116.90 

16. FINANCIAL REPORTING OF INTEREST IN JOINT VENTURES 

Continued... 

( ` inlakh) 

Investments include `42,175.46 lakh (Previous Year `40,936.46 lakh) representing Society's interest 

in the following jointly controlled entities as at March 31, 2011. 

Name of the Company 

Country of 

Residence 

Contribution towards 

Equity ( ` in lakh) 

As at 


As at 


Percentage of holding 

of KRIBHCO 

As at 


As at 


i) Oman India Fertiliser Company SAOC (OMIFCO)* Oman 32,853.46 32,853.46 25.00 25.00 

ii) Gujarat State Energy Generation Ltd. (GSEG)** India 9,304.00 8,068.00 26.77 27.48 

iii) Urvarak Videsh Ltd. (UVL)** India 18.00 15.00 33.33 33.33 

61


The Society's share in the Assets, Liabilities, Contingent Liabilities and Capital Commitments as at 

31.03.2011 and Income and Expenses for the year ended 31.03.2011 in respect of Jointly controlled 

( ` inlakh) 



LIABILITIES 

• Loan Funds 42,026.64 48,922.98 

• Current Liabilities 16,102.09 14,658.09 

• Non-Current Liabilities 7,874.29 6,851.55 

Total Liabilities 66,003.02 70,432.62 

ASSETS 

• Net Fixed Assets including CWIP 1,05,169.19 1,07,229.58 

• Current Assets, Loans and Advances 23,530.46 17,080.12 

Total Assets 1,28,699.65 1,24,309.70 

Year ended 31.03.2011 Year ended 31.03.2010 

INCOME 

• Income from Operations 44,006.74 44,681.94 

• Other Income 654.47 656.12 

Total Income 44,661.21 45,338.06 

EXPENSES 

• Operating Expenses 24,387.88 23,782.79 

• Finance Costs - Net 2,323.83 2,886.19 

Total Expenses 26,711.71 26,668.98 

Profit before Tax 17,949.50 18,669.08 

Provision for Tax 748.12 1,351.20 

Profit after Tax 17,201.38 17,317.88 

Capital Commitments 8,078.77 8,565.87 

Contingent Liabilities - 10.99 

* Accounting period of OMIFCO is from January to December. 

** Accounting period of GSEG and UVL is from April to March and financial data are based on provisional accounts. 

17. INFORMATION IN RESPECT OF MICRO, SMALL AND MEDIUM ENTERPRISES 

AS AT 31.03.2011: 

S.No. 

1 The principal amount and the interest due thereon remaining unpaid to any 

supplier as at the end of each accounting year: 

i) Principal Amount due Nil Nil 

ii) Interest due thereon Nil Nil 

2 The amount of interest paid by the buyer in terms of section 18, along with Nil Nil 

the amounts of the payment made to the supplier beyond the appointed 

day during each accounting year as announced by any dispute resolution 

council/authority 

62 

Particulars 

As at 


( ` inlakh) 

As at 


Continued...

As at 


As at 


3 The amount of interest due and payable for the period of delay in making Nil Nil 

payment (which have been paid but beyond the appointed day during the 

year) but without adding the interest specified under this Act: 

i) Payment made to supplier (Other than interest) beyond the appointed Nil Nil 

day during the year 

ii) Interest paid to supplier on principal amount paid beyond the appointed Nil Nil 

day during the year 

iii) Interest due and payable to supplier on principal amount paid beyond Nil Nil 

the appointed day during the year 

4 The amount of interest accrued and remaining unpaid at the end of each Nil Nil 

accounting year; and 

5 The amount of further interest remaining due and payable even in the Nil Nil 

succeeding years, until such date when the interest dues as above are actually 

paid to the small enterprise, for the purpose of disallowance as a deductible 

expenditure under section 23 

Continued... 

( ` inlakh) 

The above information has been provided to the extent such parties have been identified on the basis of information available 

with the Society. 

18. CAPACITY, PRODUCTION, PURCHASES OF TRADED PRODUCTS, SALES AND CLOSING 

STOCK: 

i) Licensed / Installed Capacity and Production: 

(Quantity in lakh MT) 


Licensed 

Capacity 

Installed 

Capacity 

Production 

Licensed 

Capacity 

Installed 

Capacity 

Production 

Ammonia 10.03 10.03 11.58 10.03 10.03 11.10 

Urea 17.29 17.29 18.41 17.29 17.29 17.80 

Argon 00.12 00.12 0.105 00.12 00.12 0.063 

Bio-Fertilisers 0.007 0.007 0.0096 0.007 0.007 0.0085 

ii) Purchase of Goods for re-sale: 

Particulars As at 31.03.2011 As at 31.03.2010 

Quantity (LMT) Amount ( ` in lakh) Quantity (LMT) Amount ( ` in lakh) 

OMIFCO Urea 10.62 54,815.55 10.07 47,114.17 

Imported DAP 3.88 94,513.12 1.15 20,747.59 

Imported MOP Nil Nil 0.90 20,210.93 

Indigenous Urea (KSFL) 0.41 2,165.59 0.29 1,280.92 

Others - 6,381.49 - 4,837.65 

Total - 1,57,875.75 - 94,191.26 

63


iii) Sales* : a. Manufactured Products: 



Ammonia 1.00 11,954.91 0.84 8,308.54 

Urea (NFU & FU) 18.40 1,44,020.15 18.00 1,14,376.52 

Bio-Fertilisers 0.00936 153.22 0.00920 142.05 

Argon (NM³) 59.05 1,446.04 35.55 738.63 

Others - 381.77 - 404.28 

Total 1,57,956.09 1,23,970.02 

b. Traded Products: 



OMIFCO Urea 9.54 48,398.22 10.74 49,350.06 

Imported DAP 3.87 1,00,370.38 1.14 22,297.23 

Imported MOP - (360.84) 0.90 20,865.77 

Indigenous Urea (KSFL) 0.41 2,259.11 0.29 1,358.25 

Others - 7,288.13 - 5,488.63 

Total - 1,57,955.00 - 99,359.94 

*includes subsidy under concessions scheme. 

iv) Stock particulars of Finished Goods: 



Ammonia 0.056 518.32 0.049 324.01 

Urea 0.1344 896.05 0.128 707.81 

Argon 0.658 16.79 0.490 9.86 

Bio-Fertilisers 0.0015 38.34 0.0014 33.38 

OMIFCO Urea 1.06 4554.58 0.00005 0.24 

Imported DAP 0.002 44.26 - - 

Others - 217.16 - 179.89 

Total - 6285.50 1255.19 

19. The previous year figures have been re-grouped/rearranged, wherever considered 

necessary, to make them comparable with the current year figures. 

(R Kamra) 







(B D Sinha) 






64 

(Ajay Mathur) 

Partner 

M. No. 082223 

(SKMehta) 

Partner 

M. No. 010870 


Partner 

M. No. 040727

Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO and Shri Chandra Pal Singh, Vice Chairman KRIBHCO 

alongwith other Board of Directors including Dr. Bijender Singh, Shri V. Sudhakar Chowdary, Dr. Sunil Kumar Singh, 

Smt. Shailajadevi D. Nikam, Shri Pareshbhai R. Patel participated in the 9th Regional Assembly of ICA-Asia Pacific held at 

Beijing, China.

Shri Vaghjibhai Rugnathbhai Patel, Chairman KRIBHCO visiting a field demonstration in Rajkot, Gujarat. 

KRISHAK BHARATI COOPERATIVE LIMITED 

REGISTERED OFFICE 

Red Rose House, 49-50 Nehru Place, New Delhi-110019 

Phone : 011-26213412 


KRIBHCO Bhawan, A 8-10, Sector-1, Noida - 201 301, Distt. : Gautam Budh Nagar (U.P.) 

Phones : 0120-2534631/32/36 ; Voice Mail : 0120-2549112/13/14 

Fax: 0120-2537113 & 2534861 

Website : www.kribhco.net 

Designed By : Akar Advertising & Marketing Pvt. Ltd. & Printed at Brijbasi Art Press Ltd., New Delhi

Annual Report 2010-11

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