Annual Report 2010-11

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
8. INVESTMENTS
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.
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