Accounting Policies of National Fertilizers Ltd. Company
Mar 31, 2023
Company Overview and Significant Accounting Policies
1.1 Company Overview
National Fertilizers Limited (the ''Company'') is a company limited by shares, incorporated and domiciled in India. The company is engaged in production and marketing of Neem Coated Urea, Bio-Fertilizers (solid & liquid) and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The Company is also engaged in trading of imported and domestic fertilizers, compost, seeds, agro chemicals and other Agro products. The registered office of the company is located at New Delhi, India. The Government of India is the principal shareholder of the company. The shares of the Company are listed on National Stock Exchange ("NSE") and the Bombay Stock Exchange ("BSE"), India.
The financial statements are approved for issue by the Company''s Board of Directors on 29.05.2023.
1.2 Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
1.2.1 Basis of preparation
(a) Compliance with Ind AS
The financial statements prepared on accrual basis, as a going concern, comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015](as amended)and other relevant provisions of the Act.
The financial statements up to year ended 31 March 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
(b) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
⢠certain financial assets and liabilities (including derivative instruments) and contingent consideration that is measured at fair value;
⢠assets held for sale -measured at the lower of carrying amount and fair value less cost to sell; and
⢠defined benefit plans â plan assets measured at fair value
1.2.2 Use of estimates
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates and judgments affect the application of accounting policies and the reported amount of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of financial statements and the reported amount of revenue and expenses during the period. Application of accounting policies that require critical accounting estimates involving judgments
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of change in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
1.2.3 Critical Accounting Estimates and judgments
(a) Property Plant and Equipment:
Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
(b) Revenue Recognition
Price and Freight Subsidy is measured based on principle/ notifications received from Fertilizer Industry Coordination Committee (FICC), an office of the Government of India which regulates such subsidy and the bills are raised based on such notifications. Escalation/De-escalation in notified rates is estimated taking into account the effect of guidelines, policies, instructions and clarifications given by the Government. The difference, if any, based on final notification received, is treated as current year income or expenditure and the effect of change in estimate, if material, is disclosed separately.
1.2.4 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). Refer note 52 for segment information presented.
1.2.5 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is the company''s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in Statement of Profit and Loss except in case of long term liability relating to acquisition of fixed assets acquired upto March 31, 2016, where the same are adjusted to carrying amount of such assets.
Foreign exchange gains and losses regarded as an adjustment to borrowing costs are charged in the Statement of Profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis within other gains/ (losses).
1.2.6 Revenue recognition
Revenue is recognized net of returns, trade allowances, rebates etc. when performance obligation is satisfied by transferring control of goods or services (i.e. an asset) to a customer and it is probable to collect the consideration.
Sale of scrap/ waste materials is recognized on disposal.
1.2.7 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions.
Government grants relating to the purchase / acquisition of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets.
Interest subsidy received/receivable from Government for changeover of Ammonia Feed Stock Conversion Project from FO/LSHS to Gas is recognized in the Statement of Profit and Loss and is being deducted in reporting the related expense.
1.2.8 Income tax
Income tax comprises current and deferred income tax. Income tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in Joint Ventures where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
1.2.9 Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset, is derecognized where the carrying value of an asset to be replaced is not separately identifiable. It is derecognized on the basis of estimated/technical report. All other repairs and maintenance are charged to profit or loss account during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives which are aligned to useful life specified under Schedule II of the Companies Act, 2013 except for certain items of plant and machinery which are depreciated as below:
a) Reformer Package and Instrumentation: 15 years
b) Heat Exchangers, compressor, pumps, turbines and CO2 Booster: 20 years
In respect of plant and machinery, computer and data processing units, residual value of five percent and rupee one in respect of asset acquired out of Govt Grant / retailer margin, capital spares and other fixed assets is retained.
Leasehold land and buildings are amortized over the lease period. Buildings constructed over leasehold land are depreciated at the estimated useful life which is in line with useful life as specified under Schedule II of the Companies Act, 2013, where the lease period is beyond the useful life of the building.
Depreciation on Fixed Assets whose actual cost does not exceed five thousand rupees, are provided at the rate of 100% and residual value of Rupee one is retained.
Spares that can be used only in connection with an item of fixed asset are depreciated over a period not exceeding the useful life of the principal item.
The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Catalysts are capitalized and amortized based on estimated useful life as technically assessed.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other Income.
1.2.10 Investment Property
Investment Properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost including transaction cost. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and impairment loss.
1.2.11 Intangible Assets
Intangible Assets are stated at cost less accumulated amortization and impairment.
License and process know-how having future economic benefits is amortized on straight line method over a period of ten years or license period, whichever is less.
Software, which is not integral part of related hardware, is treated as intangible asset and amortized on straight line method over a period of five years or its license period, whichever is less.
Intangible assets'' useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
1.2.12 Capital Work in Progress
All revenue expenses incurred during construction period, which are exclusively attributable to acquisiti''on/constructi''on of fixed assets, are capitalised at the time of commissioning of assets.
Pre-project expenditure relating to projects which are considered unviable/closed is charged off to Revenue in the year of declarati''on/closure.
The capital work in progress includes construction stores including material in transit/equipment/services etc. received at site for use in the projects.
1.2.13 Leases
Till 31st March 2019:
Leases of property, plant and equipment where the company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Profit or Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as leases are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to Statement of Profit or Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
With effective from 1st April 2019:
"Effective April 1st, 2019, the company has adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Accordingly, comparative information as at and for the year ended March 31, 2019 has not been restated. The impact of adoption of the standard on financial statements of the company has been disclosed in the notes to accounts.
For leases previously classified as finance leases the entity recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of Ind AS 116 are only applied after that date.
The Company as a lessee:
The company''s lease asset classes primarily consist of leases for land, vehicle and office premises. The company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the company has substantially all of the economic benefits from use of the asset through the period of
the lease and
(iii) the company has the right to direct the use of the asset.
At the date of commencement of the lease, the company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
Lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives and estimated restoration costs of the underlying asset where applicable. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate of the company. Lease liabilities are remeasured to reflect any re-assessment, lease modification, or revised in-substance fixed lease payments, with a corresponding adjustment to the related right of use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to statement of profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Lease liabilities and ROU assets have been separately presented in the balance sheet and lease payments have been classified as financing cash flows.
The Company as a Lessor
Leases, for which the company is a lessor are classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right of use assets arising from the head lease.
For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The company need not to make any adjustment to the accounting for assets held as lessor as a result of adopting the new leasing standard.
1.2.14 Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non- financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
1.2.15 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks/ financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
1.2.16 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1.2.17 Trade receivables
Trade receivables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
1.2.18 Inventories - Raw materials and stores, work in progress, packaging material and finished goods
Raw materials, packaging materials and stores and spares are stated at the lower of monthly weighted average cost and net realisable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of first-in first-out basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
In case of stores and spares not moved for more than two years and upto five years, provision for obsolescence is made at five percent per annum (on straight line basis) and charged to revenue. In case of stores and spares which have not moved for more than five years/identified as surplus or obsolete, value is taken as certified by valuers and diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of weighted average cost and net realizable value based on the applicable concession/sale Price. In warehouses carrying Finished Goods of more than one Plant, the Plant wise finished stocks are determined on first-in-first-out basis and costs worked out accordingly.
Traded Fertilizers are valued at lower of cost determined on first-in-first-out basis and net realizable value. Other Traded Goods are valued at lower of weighted average cost and net realizable value.
1.2.19 Investments and other financial assets
(a) Classification
The company classifies its financial assets in the following measurement categories:
⢠those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
⢠those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses arising from fair valuation will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
(b) Measurement Initial recognition
The company measures a financial asset at its fair value and, in the case of a financial asset not at fair value through profit or loss, at fair value including transaction costs that are directly attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement
Subsequent measurement of financial assets depends on the company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the company classifies its financial assets:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other income.
Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss.
Investment in Joint Venture:
Investment in Joint venture is carried at cost in the financial statements.
(c) Impairment of financial assets
The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 59 details how the company determines whether there has been a significant increase in credit risk.
For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(d) Income recognition Interest income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.
Dividends
Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the company, and the amount of the dividend can be measured reliably.
(e) Derivatives
Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value through profit or loss at the end of each reporting period.
1.2.20 Offseffing financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.
1.2.21 Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
1.2.22 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the
effective interest method.
1.2.23 Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the statement of Profit and Loss Account in the period in which they are incurred.
1.2.24 Employee benefits
(a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the financial reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(b) Other long-term employee benefit obligations
The company provides following long term benefits:
i) Leave Encashment (Earned Leave/Sick Leave/Half Pay Leave)
ii) Long Service Award (LSA)
The liability for Leave encashment and Long term service awards are measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the financial reporting period using the projected unit credit method as calculated by Actuary. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
(c) Post-employment obligations
The company operates the following post-employment schemes:
(i) defined benefit plans such as gratuity, provident fund, post retirement settlement benefits, social security benefits and employees'' family economic rehabilitation scheme; and
(ii) defined contribution plans such as post-employment medical plan and pension plan.
(d) Defined Benefit Obligations
The defined benefit obligation (other than Provident Fund) is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The liability or asset recognised in the balance sheet in respect of defined benefit obligations (except Provident Fund) is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, if any.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
(e) Provident Fund
Contribution to provident fund is accounted for on accrual basis. The provident fund contributions are made by employee and company as monthly contribution equal to specified percentage of covered employee''s salary to a trust administered by the company. The trust invests in specific designated instruments as permitted by Indian Law. The interest rate payable to the members of the trust is notified by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.
(f) Defined Contribution Plans
The company has a Post-Retirement Medical Benefits (PRMB) and pension plan for its employees. The company has taken the insurance policies to meet its obligations under these plans. Accordingly, the liability of the company is limited upto the amount of insurance premium paid. These plans have been treated as defined contribution plans. The insurance premium paid for these plans is recognised as employee benefit expense and charged in statement of profit and loss account.
1.2.25 Provisions
Provisions (other than employee benefits) are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
1.2.26 Claims
Pending settlement, claims made on underwriters /railways /others as assessed by the company are recognized on the basis of certainty of ultimate collection.
1.2.27 Adjustment pertaining to Prior Period
Income/Expenditure pertaining to prior period upto Rs 10.00 crores in each case subject to cumulative limit of 0.50% of sales turnover of previous year are not considered material and are included under the income/expenditure of the current year.
1.2.28 Prepaid Expenditure
Prepaid expenditure upto Rupee one lakh in each case not being considered material is included under the expenditure of the current year.
1.2.29 Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company''s board of directors.
1.2.30 Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing:
(i) the profit attributable to owners of the company
(ii) by the weighted average number of equity shares outstanding during the financial year.
(b) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
(i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
(ii) the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
Mar 31, 2018
1. Company Overview and Significant Accounting Policies
1.1 Company Overview
National Fertilizers Limited (the ''Company'') is a company limited by shares, incorporated and domiciled in India. The Company is engaged in production and marketing of Neem Coated Urea, Bio-Fertilizers (solid & liquid) and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The Company is also engaged in trading of Imported and Domestic Fertilizers, Compost, Seeds, Agro Chemicals and other Agro products. The registered office of the company is located at New Delhi, India. The Government of India is the principal shareholder of the Company. The shares of the Company are listed on National Stock Exchange (âNSEâ) and the Bombay Stock Exchange (âBSEâ), India.
The Financial Statements for the year ended 31 March 2017 were prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013.
The financial statements are approved for issue by the Company''s Board of Directors on 02-05-2018.
1.2 Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
1.2.1 Basis of preparation
(a) Compliance with Ind AS
The financial statements prepared on accrual basis, as a going concern, comply in all material aspects with Indian Accounting Standards (IndAS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015](as amended)and other relevant provisions of the Act.
The financial statements up to year ended 31 March 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
(b) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
- certain financial assets and liabilities (including derivative instruments) and contingent consideration that is measured at fair value.
- assets held for sale -measured at the lower of carrying amount and fair value less cost to sell; and
- defined benefit plans â plan assets measured at fair value
1.2.2 Use of estimates
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates and judgments affect the application of accounting policies and the reported amount of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of financial statements and the reported amount of revenue and expenses during the period. Application of accounting policies that require critical accounting estimates involving judgments have been disclosed in note (1.2.3).
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of change in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
1.2.3 Critical Accounting Estimates and judgments
(a) Property Plant and Equipment:
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
(b) Revenue Recognition
Price and Freight Subsidy is measured based on principle/ notifications received from Fertilizer Industry Coordination Committee (FICC) an office of Government of India which regulates such subsidy and the bills are raised based on such notification. Escalation/De-escalation in notified rates is estimated taking into account the effect of guidelines, policies, instructions and clarifications given by the Government. The difference, if any based on final notification received is treated as current year income or expenditure and the effect of change in estimate, if material, is disclosed separately.
1.2.4 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). Refer note 48 for segment information presented.
1.2.5 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is the Company''s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in Statement of Profit and Loss except in case of long term liability relating to acquisition of fixed assets acquired up to March 31, 2016, where the same are adjusted to carrying amount of such assets.
Foreign exchange gains and losses regarded as an adjustment to borrowing costs are charged in the Statement of Profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis within other gains/ (losses).
1.2.6 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty. Revenue is recognised net of returns, trade allowances, rebates, value added taxes and amounts collected on behalf of third parties.
Revenue in respect of sale of goods is recognised when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria''s for revenue recognition have been met.
Sale of scrap/ waste materials is recognized on disposal.
1.2.7 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to the purchase / acquisition of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented as deduction from related depreciation expenses.
Interest subsidy received/receivable from Government for changeover of Ammonia Feed Stock Conversion Project from FO/ LSHS to Gas is recognized in the Statement of Profit and Loss and is being deducted in reporting the related expense.
1.2.8 Income tax
Income tax comprises current and deferred income tax. Income tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in Joint Ventures where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
1.2.9 Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognised where the carrying value of an asset to be replaced is not separately identifiable it is derecognized on estimated/technical report basis. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives which are aligned to useful life specified under Schedule II of the Companies Act, 2013 except for certain items of plant and machinery which are depreciated as below:
a) Reformer Package and Instrumentation: 15 years
b) Heat Exchangers, pumps, turbines and CO2 Booster: 20 years
In respect of Plant and Machinery, Computer and data processing units residual value of five percent and rupee one in respect of other Fixed Assets is retained.
Leasehold land and buildings are amortized over the lease period. Buildings constructed over leasehold land are depreciated at the estimated useful life which is in line with useful life as specified under Schedule II of the Companies Act, 2013, where the lease period is beyond the useful life of the building.
Depreciation on Fixed Assets whose actual cost does not exceed five thousand rupees, are provided at the rate of 100% and residual value of Rupee one is retained.
Spares that can be used only in connection with an item of fixed asset is depreciated over a period not exceeding the useful life of the principal item.
The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other Income.
1.2.10 Intangible Assets
Intangible Assets are stated at cost less accumulated amortization and impairment.
License and process know-how having future economic benefits is amortized on straight line method over a period of ten years or license period, whichever is less.
Software, which is not integral part of related hardware, is treated as intangible asset and amortized on straight line method over a period of five years or its license period, whichever is less.
Intangible assets'' useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
1.2.11 Capital Work in Progress
All revenue expenses incurred during Construction period, which are exclusively attributable to acquisition/construction of fixed assets, are capitalised at the time of commissioning of Assets.
Pre-project expenditure relating to Projects which are considered unviable/closed is charged off to Revenue in the year of declaration/closure.
The capital work in progress includes Construction Stores including Material in Transit/Equipment/Services etc. received at site for use in the projects.
1.2.12 Leases
Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Profit or Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to Statement of Profit or Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases
1.2.13 Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
1.2.14 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks/ financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
1.2.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1.2.16 Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
1.2.17 Inventories - Raw materials and stores, work in progress, packaging material and finished good
Raw materials, packaging materials and stores and spares are stated at the lower of monthly weighted average cost and net realisable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of first-in first-out basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
In case of stores and spares not moved for more than two years and up to five years, provision for obsolescence is made at five percent per annum (on straight line basis) and charged to revenue. In case of stores and spares which have not moved for more than five years/identified as surplus or obsolete, value is taken as certified by Valuers and diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average cost inclusive of excise duty where applicable and net realizable value based on the applicable Concession/Sale Price. In warehouses carrying Finished Goods of more than one Plant, the Plant wise finished stocks are determined on first-in-first-out basis and costs worked out accordingly.
1.2.18 Investments and other financial assets
(a) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
- those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses arising from fair valuation will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
(b) Measurement Initial recognition
The Company measures a financial asset at its fair value and, in the case of a financial asset not at fair value through profit or loss, at fair value including transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement
Subsequent measurement of financial assets depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its financial assets:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other income.
Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss.
Investment in Joint Venture:
Investment in Joint venture is carried at cost in the financial statements.
(c) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 55 details how the Company determines whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(d) Income recognition Interest income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example prepayment, extension, call and similar options) but does not consider the expected credit losses.
Dividends
Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.
(e) Derivatives
Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value through profit or loss at the end of each reporting period.
1.2.19 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
1.2.20 Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
1.2.21 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method.
1.2.22 Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the statement of Profit and Loss Account in the period in which they are incurred.
1.2.23 Employee benefits
(a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the financial reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(b) Other long-term employee benefit obligations
The Company provides following long term benefits:
i) Leave Encashment (Earned Leave/Sick Leave/Half Pay Leave)
ii) Long Service Award (LSA)
The liability for Leave encashment and Long term service awards are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the financial reporting period using the projected unit credit method as calculated by Actuary. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
(c) Post-employment obligations
The Company operates the following post-employment schemes:
(i) defined benefit plans such as gratuity, provident fund,post retirement settlement benefits, social security benefits and employees'' family economic rehabilitation scheme; and
(ii) defined contribution plans such as post-employment medical plan and pension plan.
(d) Defined Benefit Obligations
The defined benefit obligation (other than Provident Fund) is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The liability or asset recognised in the balance sheet in respect of defined benefit obligations (except Provident Fund) is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, if any.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
(e) Provident Fund
Contribution to provident fund is accounted for on accrual basis. The provident fund contributions are made by employee and company as monthly contribution equal to specified percentage of covered employee''s salary to a trust administered by the Company. The trust invests in specific designated instruments as permitted by Indian Law. The interest rate payable to the members of the trust is notified by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.
(f) Defined Contribution Plans
The Company has a Post-Retirement Medical Benefits (PRMB) and pension plan for its employees. The Company has taken the insurance policies to meet its obligations under these plans. Accordingly, the liability of the company is limited upto the amount of insurance premium paid. These plans have been treated as defined contribution plans. The insurance premium paid for these plans is recognised as employee benefit expense and charged in statement of profit and loss account.
1.2.24 Provisions
Provisions (other than employee benefits) are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
1.2.25 Claims
Pending settlement, claims made on underwriters /railways /others as assessed by the Company on a probable realization basis are recognized at the time of lodgement.
1.2.26 Adjustment pertaining to Prior Period
Income/Expenditure pertaining to prior period up to Rs 10.00 crores in each case subject to cumulative limit of 0.50% of sales turnover of previous year are not considered material and are included under the income/expenditure of the current year.
1.2.27 Prepaid Expenditure
Prepaid expenditure up to Rupee one lakh in each case not being considered material is included under the expenditure of the current year.
1.2.28 Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.
1.2.29 Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing:
(i) the profit attributable to owners of the Company
(ii) by the weighted average number of equity shares outstanding during the financial year.
(b) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to takeinto account:
(i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
(ii) the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
a. Title/Lease Deed for land acquired at Vijaipur (Rs, 4.36 crore), Bathinda (Rs, 0.15 crore), Building at Scope Complex, New Delhi (Rs, 2.07 crore) and Building at Bhopal (Rs, 0.51 crore) are pending execution.
b. Out of total land of 2578 acres, land Measuring 325.70 acres at Nangal (Rs, 0.12 crore) had been symbolically possessed by the Punjab Government on 29.10.1998 without determination of consideration. Though the ownership of the entire land including 325.70 acres vests with the Company, however, the physical possession of 325.70 acres of land is with its erstwhile owners.
c. Ammonia Feed Stock Conversion Projects from ''LSHS/FO'' to ''Gas'' at Bathinda, Panipat & Nangal Unit under Government''s policy for reimbursement of project cost to the Company over a period of five years from the date of commercial production have been capitalised on 11th March 2013 28th March 2013 and 18th July 2013 respectively. Accordingly, Property, Plant & Equipment (Gross) include assets amounting to Rs, 3973.24 crore (CPLY Rs, 3763.56 crore) represented by capital grant as disclosed in Note: 23 & 30 Deferred Government Grant and the net Property, Plant & Equipment of Ammonia Feed Stock Conversion Projects amount to Rs, 2977.89 crore(CPLY Rs, 3012.91 crore) as on 31.03.2018.
d. In terms of exemption granted under Ind AS 101, the company has opted to treat exchange difference arising from translation of long term foreign currency monetary items as addition/deletion to Property, Plant & Equipment. Accordingly, an exchange loss/(gain) of Rs, (0.25) crore
(CPLY Rs, 5.13 crore) has been included in the addition to Property, Plant & Equipment as on 31st March, 2018. The unamortized amount of exchange difference as on 31.03.2018 is Rs, 56.66 crore (CPLY Rs, 59.93 crore).
$ Ramagundam Fertilizers & Chemicals Limited, a joint venture with Engineers India Limited and Fertilizer Corporation of India has been incorporated on 17.02.2015 for setting up of Fertilizer Unit at Ramagundam, Telangana under New Investment Policy, 2012. The plant shall have the annual urea capacity of 12.71 Lakhs MT urea.
Urvarak Videsh Limited, a joint venture with Krishak Bharti Co-operative Limited and Rashtriya Chemicals & Fertilizers Limited has been setup for fertilizer business and rendering consultancy services in this regard. Urvarak Videsh Limited was declared Dormant Company on 04.11.2015.
Mar 31, 2017
1. Company Overview and Significant Accounting Policies
1.1 Company Overview
National Fertilizers Limited (the ''Company'') is a company limited by shares, incorporated and domiciled in India. The Company is engaged in production and marketing of Neem Coated Urea, Bio-Fertilizers (solid & liquid) and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The Company is also engaged in trading of Imported and Domestic Fertilizers, Compost, Seeds, Agro Chemicals and other Agro products. The registered office of the company is located at New Delhi, India. The Government of India is the principal shareholder of the Company. The shares of the Company are listed on National Stock Exchange (âNSEâ) and the Bombay Stock Exchange (âBSEâ), India.
The financial statements are approved for issue by the Company''s Board of Directors on 18-05-2017.
1.2 Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
1.2.1 Basis of preparation
(a) Compliance with Ind AS
The financial statements prepared on accrual basis, as a going concern, comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] (as amended) and other relevant provisions of the Act.
The financial statements up to year ended 31 March 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These financial statements are the first financial statements of the Company under Ind AS. Refer note 59 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at 1 April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
(b) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
- certain financial assets and liabilities (including derivative instruments) and contingent consideration that is measured at fair value;
- assets held for sale â measured at fair value less cost to sell; and
- defined benefit plans â plan assets measured at fair value
1.2.2 Use of estimates
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates and judgments affect the application of accounting policies and the reported amount of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of financial statements and the reported amount of revenue and expenses during the period. Application of accounting policies that require critical accounting estimates involving judgments have been disclosed in note (1.2.3).
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of change in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
1.2.3 Critical Accounting Estimates and judgments
(a) Property Plant and Equipment:
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
(b) Revenue Recognition
Price and Freight Subsidy is measured based on principle/ notifications received from Fertilizer Industry Coordination Committee (FICC) an office of Government of India which regulates such subsidy and the bills are raised based on such notification. Escalation/De-escalation in notified rates is estimated taking into account the effect of guidelines, policies, instructions and clarifications given by the Government. The difference, if any based on final notification received is treated as current year income or expenditure and the effect of change in estimate, if material, is disclosed separately.
1.2.4 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). Refer note 48 for segment information presented.
1.2.5 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupee (INR), which is the Company''s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in Statement of Profit and Loss except in case of long term liability relating to acquisition of fixed assets acquired upto March 31, 2016, where the same are adjusted to carrying amount of such assets.
Foreign exchange gains and losses regarded as an adjustment to borrowing costs are charged in the Statement of Profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis within other gains/ (losses).
1.2.6 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty. Revenue is recognized net of returns, trade allowances, rebates, value added taxes and amounts collected on behalf of third parties.
Revenue in respect of sale of goods is recognized when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria''s for revenue recognition have been met.
Sale of scrap/ waste materials is recognized on disposal.
1.2.7 Government grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to the purchase / acquisition of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented as deduction from related depreciation expenses.
Interest subsidy received/receivable from Government for changeover of Ammonia Feed Stock Conversion Project from FO/ LSHS to Gas is recognized in the Statement of Profit and Loss and is being deducted in reporting the related expense.
1.2.8 Income tax
Income tax comprises current and deferred income tax. Income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case it is recognized in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in Joint Ventures where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
1.2.9 Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at cost less depreciation. Cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognized where the carrying value of an asset to be replaced is not separately identifiable it is derecognized on estimated/technical report basis. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives which are aligned to useful life specified under Schedule II of the Companies Act, 2013 except for certain items of plant and machinery which are depreciated as below:
a) Reformer Package and Instrumentation: 15 years
b) Heat Exchangers, pumps, turbines and CO2 Booster: 20 years
Leasehold land and buildings are amortized over the lease period. Buildings constructed over leasehold land are depreciated at the estimated useful life which is in line with useful life as specified under Schedule II of the Companies Act, 2013, where the lease period is beyond the useful life of the building.
Depreciation on Fixed Assets whose actual cost does not exceed five thousand rupees, are provided at the rate of 100% and residual value of Rupee one is retained.
Spares that can be used only in connection with an item of fixed asset is depreciated over a period not exceeding the useful life of the principal item.
The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss with other Income.
1.2.10 Intangible Assets
Intangible Assets are stated at cost less accumulated amortization and impairment.
License and process know-how having future economic benefits is amortized on straight line method over a period of ten years or license period, whichever is less.
Software, which is not integral part of related hardware, is treated as intangible asset and amortized on straight line method over a period of five years or its license period, whichever is less.
Intangible assets'' useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
1.2.11 Capital Work in Progress
All revenue expenses incurred during Construction period, which are exclusively attributable to acquisition/construction of fixed assets, are capitalized at the time of commissioning of Assets.
Pre-project expenditure relating to Projects which are considered unviable/closed is charged off to Revenue in the year of declaration/closure.
The capital work in progress includes Construction Stores including Material in Transit/Equipment/Services etc. received at site for use in the projects.
1.2.12 Leases
Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Profit or Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to Statement of Profit or Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
1.2.13 Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
1.2.14 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks/ financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
1.2.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1.2.16 Trade receivables
Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
1.2.17 Inventories - Raw materials and stores, work in progress, packaging material and finished goods
Raw materials, packaging materials and stores and spares are stated at the lower of monthly weighted average cost and net realizable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of first-in first-out basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
In case of stores and spares not moved for more than two years and upto five years, provision for obsolescence is made at five percent per annum (on straight line basis) and charged to revenue. In case of stores and spares which have not moved for more than five years/identified as surplus or obsolete, value is taken as certified by Valuers and diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average cost inclusive of excise duty where applicable and net realizable value based on the applicable Concession/Sale Price. In warehouses carrying Finished Goods of more than one Plant, the Plant wise finished stocks are determined on first-in-first-out basis and costs worked out accordingly.
1.2.18 Investments and other financial assets
(a) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
- those measured at amortized cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses arising from fair valuation will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
(b) Measurement Initial recognition
The Company measures a financial asset at its fair value and, in the case of a financial asset not at fair value through profit or loss, at fair value including transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement
Subsequent measurement of financial assets depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its financial assets:
Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit and loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other income.
Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss.
Investment in Joint Venture:
Investment in Joint venture is carried at cost in the financial statements.
(c) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 56 details how the Company determines whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.
(d) Income recognition Interest income
Interest income from debt instruments is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.
Dividends
Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.
(e) Derivatives
Derivatives are initially recognized at fair value and are subsequently re-measured to their fair value through profit or loss at the end of each reporting period.
1.2.19 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
1.2.20 Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.
1.2.21 Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method.
1.2.22 Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the statement of Profit and Loss Account in the period in which they are incurred.
1.2.23 Employee benefits
(a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the financial reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(b) Other long-term employee benefit obligations
The Company provides following long term benefits:
i) Leave Encashment (Earned Leave/Sick Leave/Half Pay Leave)
ii) Long Service Award (LSA)
The liability for Leave encashment and Long term service awards are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the financial reporting period using the projected unit credit method as calculated by Actuary. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss.
(c) Post-employment obligations
The Company operates the following post-employment schemes:
(i) defined benefit plans such as gratuity, provident fund, post retirement settlement benefits, social security benefits and employees'' family economic rehabilitation scheme; and
(ii) defined contribution plans such as post-employment medical plan and pension plan.
(d) Defined Benefit Obligations
The defined benefit obligation (other than Provident Fund) is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The liability or asset recognized in the balance sheet in respect of defined benefit obligations (except Provident Fund) is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, if any.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.
(e) Provident Fund
Contribution to provident fund is accounted for on accrual basis. The provident fund contributions are made by employee and company as monthly contribution equal to specified percentage of covered employee''s salary to a trust administered by the Company. The trust invests in specific designated instruments as permitted by Indian Law. The interest rate payable to the members of the trust is notified by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.
(f) Defined Contribution Plans
The Company has a Post-Retirement Medical Benefits (PRMB) and pension plan for its employees. The Company has taken the insurance policies to meet its obligations under these plans. Accordingly, the liability of the company is limited up to the amount of insurance premium paid. These plans have been treated as defined contribution plans. The insurance premium paid for these plans is recognized as employee benefit expense and charged in statement of profit and loss account.
1.2.24 Provisions
Provisions (other than employee benefits) are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.
1.2.25 Claims
Pending settlement, claims made on underwriters /railways /others as assessed by the Company on a probable realization basis are recognized at the time of lodgment.
1.2.26 Adjustment pertaining to Prior Period
Income/Expenditure pertaining to prior period upto '' 10.00 crores in each case subject to cumulative limit of 0.50% of sales turnover of previous year are not considered material and are included under the income/expenditure of the current year.
1.2.27 Prepaid Expenditure
Prepaid expenditure upto Rupee one lakh in each case not being considered material is included under the expenditure of the current year.
1.2.28 Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.
1.2.29 Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing:
(i) the profit attributable to owners of the Company
(ii) by the weighted average number of equity shares outstanding during the financial year.
(b) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
(i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
(ii) the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
a. Title/Lease Deed for land acquired at Nangal (Rs,0.93 crore), Vijaipur (Rs,4.36 crore), Bathinda (Rs,0.15 crore), Building at Scope Complex, New Delhi (Rs,2.07 crore) and Building at Bhopal (Rs,0.51 crore) are pending execution.
b. Out of total land of 2578 acres, land Measuring 325.70 acres at Nangal (Rs, 0.12 crore) had been symbolically possessed by the Punjab Government on 29.10.1998 without determination of consideration. Though the ownership of the entire land including 325.70 acres vests with the Company, however, the physical possession of 325.70 acres of land is with its erstwhile owners.
c. Catalysts having useful life exceeding one year are capitalised from the date of purchase and identified as seperate component as per Schedule II of Companies Act, 2013. Accordingly, Property, Plant & Equipment (Gross) include catalysts amounting to Rs, 11.95 crore (March 2016 Rs, 2.28 crore & April 2015 Rs, 6.84 crore).
d. Ammonia Feed Stock Conversion Projects from Rs,LSHS/FO'' to ''Gas'' at Bathinda, Panipat & Nangal Unit under Government''s policy for reimbursement of project cost to the Company over a period of five years from the date of commercial production have been capitalized on 11th March 2013, 28th March 2013 and 18th July 2013 respectively. Accordingly, Property, Plant & Equipment (Gross) include assets amounting to Rs,3755.24 crore (March 2016 Rs, 3748.81 crore & April 2015 Rs, 3741.36 crore) represented by capital grant as disclosed in Note: 24 & 30 Deferred Government Grant and the net Property, Plant & Equipment of Ammonia Feed Stock Conversion Projects amount to Rs,3012.80 crore(March 2016 Rs, 3193.52 crore & April 2015 Rs, 3372.90 crore) as on 31.03.2017.
e. In terms of exemption granted under Ind AS 101, the company has opted to treat exchange difference arising from translation of long term foreign currency monetary items as addition/deletion to Property, Plant & Equipment. Accordingly, an exchange loss of Rs,5.13 crore (March 2016 Rs,15.03 crore) has been included in the addition to Property, Plant & Equipment/Capital Work in Progress as on 31st March, 2017. The unamortized amount of exchange difference as on 31.03.2017 is Rs,59.93 crore (March 2016 Rs,67.68 crore & April 2015 Rs,56.31 crore).
Ramagundam Fertilizers & Chemicals Limited, a joint venture with Engineers India Limited and Fertilizer Corporation of India has been incorporated on 17.02.2015 for setting up of Fertilizer Unit at Ramagundam, Telangana under New Investment Policy, 2012. The plant shall have the annual urea capacity of 12.71 Lakhs MT urea. The zero date of project is 25.09.2015 and is scheduled to be completed within 36 months from zero date.
Urvarak Videsh Limited, a joint venture with Krishak Bharti Co-operative Limited and Rashtriya Chemicals & Fertilizers Limited has been setup for fertilizer business and rendering consultancy services in this regard. Urvarak Videsh Limited was declared Dormant Company on 04.11.2015.
$ Out of Rs,153.44 crore invested in RFCL, Share application of Rs,28.00 crore are pending for allotment and is disclosed in Note 7: Other Financial Assets.
# Capital Grant recoverable from Government of India of Rs,102.32 crore represents the grant to be disbursed by Government of India for Ammonia Feed Stock Conversion Project (AFCP) from Rs,LSHS/FO'' to ''Gas'' for the FY 2018-19. Capital Grant recoverable from GOI amounting to Rs,599.74 crore for the FY 2017-18 is disclosed in Note 15: Other Financial Assets. Details of Capital Grant for AFCP are disclosed in Note : 24 & 30 Deferred Government Grant.
$ Capital grant includes cumulative foreign exchange gain of Rs,0.27 crore (net) in respect of outstanding liability of AFCP recoverable from GOI as part of project cost and such exchange losses shall be adjusted in the capital cost upon final settlement of liabilities.
* Out of Rs,153.44 crore invested in RFCL, Share application of Rs,28.00 crore are pending for allotment. (Note 5 : Investment)
# Includes an advance of Rs,130.69 crore (March 2016 Rs, 130.69 crore & April 2015 Rs, 130.69 crore) given to a foreign supplier M/s. Karsan during the year 1995-96 against import of Urea, the supplies of which were not received and subsequently the contract was terminated. Pending litigation, the net advance of Rs,129.64 crore (after recovery of Rs,1.05 crore) has been fully provided for in the earlier years from the revenue reserve and surplus.
$ Includes amount recoverable on account of Gas Pooling amounting to Rs,116.91 crore (March 2016 Rs, 147.94 crore & April 2015 Nil).
a. There has been no movement in the Issued, Subscribed and Paid -up capital of the Company during the year.
b. Terms/Rights attached to equity shares
The Company has only one class of equity share having a face value of Rs, 10 per share. Each holder of equity share is entitled to one vote per share and entitled to dividends approved by shareholders.
I n the event of liquidation of the company, the holders of equity share will be entitled to receive remaining assets of the company, after distribution to creditors and all preferential amounts. The distribution will be in proportion to the number of equity shares held by each shareholder
* I n terms of Section 135 of the Companies Act, 2013 read with guidelines on corporate social responsibility issued by Department of Public Enterprises (DPE), GOI, the Company is required to spend, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial years in accordance with its CSR Policy. The Company had opening CSR Reserve of Rs, 4.01 crore in respect of unspent CSR budget as per DPE guidelines. Budget of Rs, 1.11 crore was allocated as per Companies Act, 2013 for FY 2016-17. The company has incurred an amount of Rs, 2.62 crore during the year ended 31st March, 2017 (CPLY Rs, 1.25 crore) leaving balance CSR fund of Rs, 2.50 crore as on 31st March, 2017.
In terms of Ind AS 8, opening reserves has been increased by Rs, 33.77 crore i.e. increase Rs, 58.66 crore on account of adjustment relating to actuarial valuation of Post Retirement Medical Benefit Scheme and decrease by Rs, 24.89 crore on account of freight subsidy pertaining to earlier years.
* 1004 Nos 9.42% Secured Redeemable Non-Convertible Bonds (Previous Year 1004 Nos) of Rs,10,00,000/- each issued with five years tenure redeemable at par in three installments at the end of third year from issue date of 15th September, 2011 (30% at end of 3rd year, 30% at the end of 4th year and balance 40% at end of 5th year). These bonds are secured by mortgage/charge on land and building of Company located at Corporate Office, Noida. The final installment of Rs,40.16 crore was made on 15.09.2016.
# The borrowings of Rupee loan from Banks for Ammonia Feedstock Conversion Projects of Rs,770 crore being payable in next year is disclosed in Note 27 Other Financial Liabilities. Loan is secured by first charge ranking pari-passu inter-se on entire Property, Plant & Equipment, movable and immovable (present & future) properties related to Nangal, Bathinda & Panipat units and second charge over the entire current assets and subsidy (excluding reimbursement related to energy savings and interest expenses) of the Company. Repayment of sanctioned term loan would fall due for repayment in 20 quarterly installments of Rs, 192.50 crore starting from June 2013 and ending in March 2018. The rate of interest on the term loan is linked to the SBI - MCLR and during the year interest rate was from 10.70% to 10.40% p.a.
$ Foreign Currency External Commercial Borrowing (ECB) loan from Bank, has been used for energy saving and urea capacity augmentation projects at Vijaipur and is secured by first ranking pari-passu charge on all movable and immovable Property, Plant & Equipment (both present and future) related to Vijaipur unit and second ranking pari-passu charge on the current assets (both present and future) and subsidy of the Vijaipur Unit.
ECB has been refinanced through DBS Bank, Singapore on 06.01.2016. The ECB was earlier drawn from SBI, NY at rate of interest of 6 months USD LIBOR plus margin of 3.05% p.a. and upfront arrangement fee of 1.58% of facility.
The rate of interest of refinanced ECB from DBS, Singapore is 6 months USD LIBOR plus margin of 1.49% p.a. Repayment of refinanced ECB loan will commence from FY 2016-17. Foreign Currency External Commercial Borrowing (ECB) loan from DBS Bank is secured by first ranking pari-passu charge on all movable and immovable Property, Plant & Equipment (both present and future) related to Vijaipur unit and second ranking pari-passu charge on the current assets (both present and future) and subsidy of the Vijaipur Unit.
The repayment of ECB loan will fall due for Rs,38.68 crore in FY 2017-18, Rs,55.61 crore in FY 2018-19, Rs, 58.02 crore in FY 2019-20 and Rs,58.02 crore in FY 2020-21. A sum of Rs,210.33 crore (Rs,171.65 crore Rs,38.68 crore) is outstanding as on 31.03.2017 out of which the installments due for payment upto 31st March, 2018 amounting to of Rs,38.68 crore is disclosed in Note 28 Other Financial Liabilities.
# The Capital Grant from Govt. of India, Ministry of Chemicals & Fertilizers for Ammonia Feed Stock Conversion Project (AFCP) from Rs,LSHS/ FO'' to âGas'' vide sanction letter no. 14016/2/2007-FP(Vol.II)(2) dated 8.02.2010 for Panipat Unit, sanction letter no.14016/2/2007-FP (Vol. II)(1) dated 8.02.2010 for Bathinda Unit and sanction letter no.14016/2/2007-FP (Vol. II)(3) dated 8.02.2010 for Nangal Unit has accrued since the conditions attached to the grant have been fulfilled by the Company. The grant has been accordingly accounted for as per Ind AS 20 âAccounting for Government Grants''. The Government would make payment of the above grant over a period of 5 years from the commencement of commercial production. The actual project cost that would be reimbursed shall be admitted after scrutiny by a team constituted by Government of India. The return on own funds shall be recognized on finalization of project cost by the Government.
Pending the finalization of Project Cost, the subsidy recoverable has been adjusted by the subsidy amount received based on notified adhoc special fixed cost rate. Adjustments, if any, on account of final settlement of LSTK (Lump Sum Turn Key) contracts and due to actual sales realization of the redundant assets discarded after conversion will be made in the year of occurrence. While arriving at the amount of grant accrued to the Company, the deduction has been made for the amount of disposable value of discarded assets, currently at the written down value of the assets concerned.
* Represents addition to Property, Plant & Equipment in respect of Ammonia Feed Stock Conversion Projects from ''LSHS/FO'' to ''Gas'' at Bathinda, Panipat and Nangal units.
# The Capital Grant from Govt. of India, Ministry of Chemicals & Fertilizers for Ammonia Feed Stock Conversion Project (AFCP) from âLSHS/FO'' to âGas'' vide sanction letter no. 14016/2/2007-FP(Vol.II)(2) dated 8.02.2010 for Panipat Unit, sanction letter no.14016/2/2007-FP (Vol. II)(1) dated 8.02.2010 for Bathinda Unit and sanction letter no.14016/2/2007-FP (Vol. II)(3) dated 8.02.2010 for Nangal Unit has accrued since the conditions attached to the grant have been fulfilled by the Company. The grant has been accordingly accounted for as per Ind AS 20 ''Accounting for Government Grants''. The Government would make payment of the above grant over a period of 5 years from the commencement of commercial production. The actual project cost that would be reimbursed shall be admitted after scrutiny by a team constituted by Government of India. The return on own funds shall be recognized on finalization of project cost by the Government.
Pending the finalization of Project Cost, the subsidy recoverable has been adjusted by the subsidy amount received based on notified adhoc special fixed cost rate. Adjustments, if any, on account of final settlement of LSTK (Lump Sum Turn Key) contracts and due to actual sales realization of the redundant assets discarded after conversion will be made in the year of occurrence. While arriving at the amount of grant accrued to the Company, the deduction has been made for the amount of disposable value of discarded assets, currently at the written down value of the assets concerned.
* Represents addition to Property, Plant & Equipment in respect of Ammonia Feed Stock Conversion Projects from ''LSHS/FO'' to ''Gas'' at Bathinda, Panipat and Nangal units.
Non Current Deferred Government Grant is disclosed in Note No. 24.
# Includes amount ofRs, 2.81 crore (March 2016 Rs,1.37 crore & April 2015 Rs,1.04 crore) received in trust from disabled employees/legal heirs of deceased employee out of their Provident Fund (PF)/Gratuity amount under NFL Employees Family Economic & Social Rehabilitation Scheme.
* Purchase of Traded Goods includes purchase of Gas of Rs, 28.73 crore procured from M/s RIL and sold to M/s GAIL in the state of Andhra Pradesh w.e.f. 1st August, 2015 under revenue neutral Gas Swapping arrangement pursuant to the OM No. 12014/6/2013-FPP dated 16th July, 2015 issued by Department of Fertilizers. It has been discontinued w.e.f 01.08.2016.
* Wage revision for Executives & Non-Executives is due for revision w.e.f. 01.01.2017. Pending finalization of revision of wages w.e.f. 01.01.2017, adhoc provision of Rs, 25.20 crores towards salary and wage revision has been made in the accounts for the period 01.01.2017 to 31.03.2017 based on the Report of 3rd Pay Revision Committee.
# I ncludes payment of Rs,2.45 crore (Previous Year Rs,2.17 crore) paid to disabled employees/legal heirs of deceased employees under NFL Employee Family Economic and Social Rehabilitation Scheme.
47.1 Ind AS-19: Employee Benefits
47.1.1 General description of defined benefit schemes:
Gratuity Payable on separation @ 15 days pay for each completed year of service subject to maximum of Rs,10
lakh to eligible employees who render continuous service of 5 years or more.
Leave Encashment {Earned Leave Payable on separation to eligible employees who have accumulated earned leave and half pay leave. (EL) and Half Pay Leave(HPL)} During the service period encashment of accumulated earned leave is allowed in a financial year
leaving minimum balance leave of 10 days.
Long Service Award (LSA)__Payable to employees on completion of specified years of service._
Legal heirs of deceased employees and disabled employees (separated) can opt for either of the following two schemes:
Social Security Benefits (SSB) Lump sum benefit payable for left over month of service limited to 60 month pay (maximum Rs,9.00 lakhs
with minimum benefits of Rs,1.00 lakhs).
Employeesâ Family Economic Monthly payment along with medical and children education benefits in lieu of prescribed deposit upto Rehabilitation Scheme (EFERS) the date of notional superannuation.
47.1.2 Provident Fund: The Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower than statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
During the year an amount of Rs,27.09 crore (P.Y. Rs,26.56 crore) has been charged to statement of Profit and loss towards contribution by the Company.
The Provident Fund Trust set up by the Company, is treated as Defined Benefit Plan since the Company has to meet the shortfall in the fund assets, if any. Further, having regard to the assets of the Fund and the Return on the Investments, the Company does not expect any deficiency in the foreseeable future. In terms of the guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of provident fund liability and determined that there is no shortfall as at 31st March, 2017.
The funds of the trust have been invested under various securities as prescribed by regulatory authorities.
1. The company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by the insurance companies through whom the investment has been made by the fund. Gratuity liability of Rs, 58.17 crore (Previous year Rs,49.38 crore) is unfunded as on 31st March, 2017. Other defined benefit obligations are unfunded.
47.1.4 Other Employee Benefit Schemes:
Provision of Rs,0.64 crore (Previous year Rs,(0.76) crore) towards Employees'' Family Economic Rehabilitation Scheme and Social Security Benefits scheme has been made on the basis of actuarial valuation and charged to the Statement of Profit and Loss account. A net liability of Rs,15.70 crore (Previous year Rs,15.06 crore) has been recognized in the Balance Sheet as at 31st March 2017 on account of these schemes.
47.1.5 Provident Fund: 12% of Basic Pay plus Dearness allowance contributed to the Provident Trust of the Company. The Company does not anticipate any further obligation in the near foreseeable future having regard to the amount of the fund and return on investment as confirmed by the actuary.
Mar 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going concern, under the historical cost convention in accordance with the generally accepted accounting principles in India (GAAP) and the provisions of the Companies Act, 2013.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in India requires management to make estimates and assumptions, wherever necessary, that affect the reported amount of assets and liabilities and contingent liabilities as at the date of financial statements and the amounts of revenue and expenses during the period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period in which the results are known/materialized and the effect if material, disclosed separately.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction (including Borrowing Cost) and expenses allocated wherever applicable during construction period, exchange gain/loss attributable to the asset less accumulated depreciation and impairment loss, if any.
Expenditure during construction attributable to the fixed assets incurred up to the date of commercial production is capitalized.
1.4 Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
1.5 Borrowing Costs
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized. A qualifying asset is one, which necessarily takes a substantial period of time to get ready for the intended use. Other borrowing costs are charged to revenue in the period in which these are incurred.
1.6 Depreciation/Amortization
Depreciation on fixed assets is provided as per useful life specified under Schedule II of the Companies Act, 2013 on straight-line method on historical cost. For significant part of plant & machinery, useful life based on component approach is determined on Technical evaluation basis. In respect of Plant and Machinery, Computer and data processing units residual value of five percent and rupee one in respect of other Fixed Assets is retained.
Leasehold land and buildings are amortized over the lease period. Buildings constructed over leasehold land are depreciated at the useful life specified under Schedule II of the Companies Act, 2013, where the lease period is beyond the useful life of the building.
License and process know-how having future economic benefits is amortized on straight line method over a period of ten years or licence period, whichever is less.
Software, which is not integral part of related hardware, is treated as intangible asset and amortized on straight line method over a period of five years or its license period, whichever is less.
Depreciation on Mobile Phone Handsets is provided by considering useful life as two years and retaining residual value of 5%.
Depreciation on Fixed Assets whose actual cost does not exceed five thousand rupees, are provided at the rate of 100% and residual value of Rupee one is retained.
1.7 Investments
Long term investments are carried at cost, after providing for diminution in value, if it is of a permanent nature. Current investments are valued (individually) at lower of cost and quoted/fair value
1.8 Inventories
Raw Materials, packing materials and stores & spares, are valued at lower of monthly weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and up to five years, provision for obsolescence is made at five percent per annum (on straight line basis) and charged to revenue. In case of stores and spares not moved for more than five years/identified as surplus or obsolete, value is taken as certified by Values and diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average cost inclusive of excise duty where applicable and net realizable value based on the applicable Concession/Sale Price. In warehouses carrying Finished Goods of more than one Plant, the Plant wise finished stocks are determined on first-in-first-out basis and costs worked out accordingly.
Scrap and wastes are not valued.
1.9 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is recognized as income/expense except in case of long term liability, relating to acquisition of Fixed assets where the same are adjusted to the carrying cost of such assets.
Premium incurred on foreign currency forward contracts is amortized over the period of the contract.
1.10 Employees Benefits
Contribution to Provident Fund is accounted for on accrual basis. The Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the T rust shall not be lower than statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous'' Provisions Act, 1952 and shortfall, if any, shall be made good by the Company. Such shortfall on account of interest, if any, is recognized in the Statement of Profit and Loss.
Provision towards Defined Benefit Schemes is made based on the actuarial valuation as at the end of the year and is charged to Statement of Profit & Loss along with actuarial gains/losses and contribution made.
1.11 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid up to Rupee one lakh in each case not being considered material is included under the income/expenditure of the current year.
1.12 Revenue Recognition
Sales are recognized as per AS-9 on Revenue Recognition.
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on in principle recognition/ notifications received from Fertilizer Industry Coordination Committee (FICC) an office of Government of India which regulates such subsidy and the bills are raised based on such notification. Escalation/De-escalation in notified rates is estimated taking into account the effect of guidelines, policies, instructions and clarifications given by the Government. The difference, if any based on final notification received is treated as current year income or expenditure and the effect of change in estimate, if material, is disclosed separately.
Adjustment in Price and Freight subsidy, if any, is recognized in the year of payment of subsidy.
Sale of scrap/ waste materials is recognized on disposal.
1.13 Accounting for Government Grants:
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
Government Grants received/receivable from Government or other authorities towards capital expenditure are treated as ''Deferred Government Grants'' till utilization of grant. Government Grants are accounted for on accrual basis.
Fixed Assets acquired out of capital grants are treated on the basis of income approach and are treated as deferred income and recognized in the statement of Profit & Loss over the useful life of related assets and in proportion to which depreciation on these assets is provided.
Interest subsidy received/receivable from Government for changeover of Ammonia Feed Stock Conversion Project from FO/LSHS to Gas is recognized in the statement of Profit & Loss and deducted in reporting the related expense.
1.14 Claims
Pending settlement, claims made on underwriters /railways /others as assessed by the Company on a possible realization basis are recognized at the time of lodgment.
1.15 Leases
Lease arrangements, where the risks and rewards incidental to ownership of the asset substantially vest with the lessor, are recognized as an operating lease. Lease payments/receipts under operating lease are recognized as an expense/income in the Statement of Profit and Loss on a straight-line method over the period of lease.
1.16 Deferred Tax
The deferred tax resulting from timing differences between book profit and taxable profit for the year is accounted for, applying the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual certainty that the assets can be realized in future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.
1.17 Earning Per Share
Basic earnings per share is calculated by dividing the net profit/loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
a. There has been no movement in the Issued, Subscribed and Paid -up capital of the Company during the year.
b. Terms/Rights attached to equity shares
The Company has only one class of equity share having a face value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share and entitled to dividends approved by shareholders.
In the event of liquidation of the company, the holders of equity share will be entitled to receive remaining assets of the company, after distribution to creditors and all preferential amounts. The distribution will be in proportion to the number of equity shares held by each shareholder
Mar 31, 2014
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going
concern, under the historical cost convention in accordance with the
generally accepted accounting principles in India (GAAP) and the
provisions of the Companies Act, 1956.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in
India requires management to make estimates and assumptions, wherever
necessary, that affect the reported amount of assets and liabilities
and contingent liabilities as at the date of financial statements and
the amounts of revenue and expenses during the period. Actual results
could differ from those estimates. Any revision to such estimates is
recognized in the period in which the results are known/materialized
and the effect if material, disclosed separately.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction
(including Borrowing Cost) and expenses allocated wherever applicable
during construction period, exchange gain/loss attributable to the
asset less accumulated depreciation and impairment loss, if any.
Expenditure during construction attributable to the fixed assets
incurred upto the date of commercial production is capitalized.
1.4 Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
1.5 Borrowing Costs
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. A qualifying asset
is one, which necessarily takes a substantial period of time to get
ready for the intended use. Other borrowing costs are charged to
revenue in the period in which these are incurred.
1.6 Depreciation/Amortization
Depreciation on fixed assets is provided at the rates specified under
Schedule XIV of the Companies Act, 1956 on straight line method on
historical cost in respect of plant and machinery and computer systems
by retaining residual value of five percent in respect of plant and
machinery and rupee one in respect of capital spares and other fixed
assets.
Leasehold land and buildings are amortized over the lease period.
Buildings constructed over leasehold land are depreciated at the rates
specified under Schedule XIV of the Companies Act, 1956, where the
lease period is beyond the useful life of the building.
License and process know-how having future economic benefits is
amortized on straight line method over a period of ten years or licence
period, whichever is less.
Software, which is not integral part of related hardware, is treated as
intangible asset and amortized on straight line method over a period of
five years or its license period, whichever is less.
1.7 Investments
Long term investments are carried at cost, after providing for
diminution in value, if it is of a permanent nature. Current
investments are valued (individually) at lower of cost and quoted/fair
value
1.8 Inventories
Raw Materials, packing materials and stores & spares, are valued at
lower of monthly weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and upto
five years, provision for obsolescence is made at five percent per
annum (on straight line basis) and charged to revenue. In case of
stores and spares not moved for more than five years/identified as
surplus or obsolete, value is taken as certified by Valuers and
diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average
cost inclusive of excise duty where applicable and net realizable value
based on the applicable Concession/Sale Price. In warehouses carrying
Finished Goods of more than one Plant, the Plant wise finished stocks
are determined on first-in-first-out basis and costs worked out
accordingly.
Scrap and wastes are not valued.
1.9 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated
at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is
recognized as income/expense except in case of long term liability,
relating to acquisition of Fixed assets where the same are adjusted to
the carrying cost of such assets.
Premium incurred on foreign currency forward contracts is amortized
over the period of the contract.
1.10 Employees Benefits
Payments to Defined Contribution Schemes are charged as expense on
accrual basis.
Provision towards Defined Benefit Schemes is made based on the
actuarial valuation as at the end of the year and is charged to
Statement of Profit & Loss along with actuarial gains/losses and
contribution made.
1.11 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid upto Rupee
one lakh in each case not being considered material is included under
the income/expenditure of the current year.
1.12 Revenue Recognition
Revenues are recognized as per AS-9 on Revenue Recognition.
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on in principle
recognition/ notifications received from Fertilizer Industry
Coordination Committee (FICC) an office of Government of India which
regulates such subsidy. Escalation/De-escalation in notified rates is
estimated taking into account the effect of guidelines, policies,
instructions and clarifications given by the Government. The
difference, if any based on final notification received is treated as
current year income or expenditure and the effect of change in
estimate, if material, is disclosed separately.
Sale of scrap/ waste materials is recognized on disposal.
1.13 Accounting for Government Grants:
Government Grants received/receivable from Government or other
authorities towards capital expenditure are treated as Rs.Deferred
Government Grants'' till utilization of grant. Government Grants are
accounted for on accrual basis.
Fixed Assets acquired out of capital grants are treated on the basis of
income approach and are treated as deferred income and recognized in
the statement of Profit & Loss over the useful life of related assets
and in proportion to which depreciation on these assets is provided.
Interest subsidy received/receivable from Government for changeover of
Ammonia Feed Stock Conversion Project from FO/LSHS to Gas is recognized
in the statement of Profit & Loss and deducted in reporting the related
expense.
1.14 Claims
Pending settlement, claims made on underwriters /railways /others as
assessed by the Company on a possible realization basis are recognized
at the time of lodgement.
1.15 Leases
Lease arrangements, where the risks and rewards incidental to ownership
of the asset substantially vest with the lessor, are recognized as an
operating lease. Lease payments/receipts under operating lease are
recognized as an expense/income in the Statement of Profit and Loss on
a straight-line method over the period of lease.
1.16 Deferred Tax
The deferred tax resulting from timing differences between book profit
and taxable profit for the year is accounted for, applying the tax
rates and laws that have been enacted or substantially enacted as on
the Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual
certainty that the assets can be realized in future and are reviewed
for the appropriateness of their respective carrying values at each
Balance Sheet date.
1.17 Earning Per Share
Basic earning per share is calculated by dividing the net profit/loss
for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
Mar 31, 2013
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going
concern, under the historical cost convention in accordance with the
generally accepted accounting principles in India (GAAP) and the
provisions of the Companies Act, 1956.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in
India requires management to make estimates and assumptions, wherever
necessary, that affect the reported amount of assets and liabilities
and contingent liabilities as at the date of financial statements and
the amounts of revenue and expenses during the period. Actual results
could differ from those estimates. Any revision to such estimates is
recognized in the period in which the results are known/materialized
and the effect if material, disclosed separately.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction
(including Borrowing Cost) and expenses allocated wherever applicable
during construction period, exchange gain/loss attributable to the
asset less accumulated depreciation and impairment loss, if any.
Expenditure during construction attributable to the fixed assets
incurred upto the date of commercial production are capitalized.
1.4 Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
1.5 Borrowing Costs
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. A qualifying asset
is one, which necessarily takes a substantial period of time to get
ready for the intended use. Other borrowing costs are charged to
revenue in the period in which these are incurred.
1.6 Depreciation/Amortization
Depreciation on fixed assets is provided at the rates specified under
Schedule XIV of the Companies Act, 1956 on straight line method on
historical cost in respect of plant and machinery and computer systems
by retaining residual value of five percent in respect of plant and
machinery and rupee one in respect of capital spares and other fixed
assets.
Leasehold land and buildings are amortized over the lease period.
Buildings constructed over leasehold land are depreciated at the rates
specified under Schedule XIV of the Companies Act, 1956, where the
lease period is beyond the useful life of the building.
License and process know-how fee having future economic benefits is
amortized on straight line method over a period of ten years or licence
period, whichever is less.
License and process know-how fee acquired out of capital grants having
future economic benefits is amortized on straight line method over the
period of receipt of related capital grant.
Software, which is not integral part of related hardware, is treated as
intangible asset and amortized on straight line method over a period of
five years or its license period, whichever is less.
1.7 Investments
Long term investments are carried at cost, after providing for
diminution in value, if it is of a permanent nature. Current
investments are valued (individually) at lower of cost and quoted/fair
value
1.8 Inventories
Raw Materials, packing materials and stores & spares, are valued at
lower of monthly weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and upto
five years, provision for obsolescence is made at five percent per
annum (on straight line basis) and charged to revenue. In case of
stores and spares not moved for more than five years/identified as
surplus or obsolete, value is taken as certified by Valuers and
diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average
cost inclusive of excise duty where applicable and net realizable value
based on the applicable Concession/Sale Price. In warehouses carrying
Finished Goods of more than one Plant, the Plant wise finished stocks
are determined on first-in-first-out basis and costs worked out
accordingly.
Scrap and wastes are not valued.
1.9 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated
at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is
recognized as income/expense except in case of long term liability,
relating to acquisition of Fixed assets where the same are adjusted to
the carrying cost of such assets.
Premium incurred on foreign currency forward contracts is amortized
over the period of the contract.
1.10 Employees Benefits
Payments to Defined Contribution Schemes are charged as expense on
accrual basis.
Provision towards Defined Benefit Schemes is made based on the
actuarial valuation as at the end of the year and is charged to
Statement of Profit & Loss along with actuarial gains/losses and
contribution made.
1.11 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid upto Rupee
one lakh in each case not being considered material is included under
the income/expenditure of the current year.
1.12 Revenue Recognition
Revenues are recognized as per AS-9 on Revenue Recognition.
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on notifications received
from Fertilizer Industry Coordination Committee (FICC) an office of
Government of India which regulates such subsidy.
Escalation/De-escalation in notified rates is estimated taking into
account the effect of guidelines, policies, instructions and
clarifications given by the Government. The difference, if any based on
final notification received is treated as current year income or
expenditure and the effect of change in estimate, if material, is
disclosed separately.
Sale of scrap/ waste materials is recognized on disposal.
1.13 Accounting for Government Grants:
Government Grants received/receivable from Government or other
authorities towards capital expenditure are treated as Rs.Deferred
Income'' till utilization of grant. Government Grants are accounted for
on accrual basis.
Fixed Assets acquired out of capital grants are treated on the basis of
income approach and are treated as deferred income and recognized in
the statement of Profit & Loss over the useful life of related assets
and in proportion to which depreciation on these assets is provided.
1.14 Claims
Pending settlement, claims made on underwriters /railways /others as
assessed by the Company on a possible realization basis are recognized
at the time of lodgement.
1.15 Leases
Lease arrangements, where the risks and rewards incidental to ownership
of the asset substantially vest with the lessor, are recognized as an
operating lease. Lease payments/receipts under operating lease are
recognized as an expense/income in the Statement of Profit and Loss on
a straight-line method over the period of lease.
1.16 Deferred Tax
The deferred tax resulting from timing differences between book profit
and taxable profit for the year is accounted for, applying the tax
rates and laws that have been enacted or substantially enacted as on
the Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual
certainty that the assets can be realized in future and are reviewed
for the appropriateness of their respective carrying values at each
Balance Sheet date.
1.17 Earning Per Share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
Mar 31, 2012
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going
concern, under the historical cost convention in accordance with the
generally accepted accounting principles in India (GAAP) and the
provisions of the Companies Act, 1956.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in
India requires management to make estimates and assumptions, wherever
necessary, that affect the reported amount of assets and liabilities
and contingent liabilities as at the date of financial statements and
the amounts of revenue and expenses during the period. Actual results
could differ from those estimates. Any revision to such estimates is
recognized in the period in which the results are known/materialized
and the effect if material, disclosed separately.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction
(including Borrowing Cost) and expenses allocated wherever applicable
during construction period, exchange gain/loss attributable to the
asset less accumulated depreciation and impairment loss, if any.
Fixed Assets acquired out of capital grants are treated on the basis of
capital approach and are accounted for net of grants received.
Expenditure during construction attributable to the fixed assets
incurred upto the date of commercial production are capitalized.
1.4 Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
1.5 Borrowing Costs
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. A qualifying asset
is one, which necessarily takes a substantial period of time to get
ready for the intended use. Other borrowing costs are charged to
revenue in the period in which these are incurred.
1.6 Depreciation/Amortization
Depreciation on fixed assets is provided at the rates specified under
Schedule XIV of the Companies Act, 1956 on straight line method on
historical cost in respect of plant and machinery and computer systems
by retaining residual value of five percent in respect of plant and
machinery and rupee one in respect of capital spares and other fixed
assets.
Leasehold land and buildings are amortized over the lease period.
Buildings constructed over leasehold land are depreciated at the rates
specified under Schedule XIV of the Companies Act, 1956, where the
lease period is beyond the useful life of the building.
License and process know-how fee having future economic benefits is
amortized on straight line method over a period of ten years or licence
period, whichever is less.
Software, which is not integral part of related hardware, is treated as
intangible asset and amortized on straight line method over a period of
five years or its license period, whichever is less.
1.7 Investments
Long term investments are carried at cost, after providing for
diminution in value, if it is of a permanent nature. Current
investments are valued (individually) at lower of cost and quoted/fair
value
1.8 Inventories
Raw Materials, packing materials and stores & spares, are valued at
lower of monthly weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and upto
five years, provision for obsolescence is made at five percent per
annum (on straight line basis) and charged to revenue. In case of
stores and spares not moved for more than five years/identified as
surplus or obsolete, value is taken as certified by Valuers and
diminution, if any is charged to revenue.
Finished and semi-finished goods are valued at lower of annual average
cost inclusive of excise duty where applicable and net realizable value
based on the applicable Concession/Sale Price. In warehouses carrying
Finished Goods of more than one Plant, the Plant wise finished stocks
are determined on first-in-first-out basis and costs worked out
accordingly.
Scrap and wastes are not valued.
1.9 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated
at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is
recognized as income/expense except in case of long term liability,
relating to acquisition of Fixed assets where the same are adjusted to
the carrying cost of such assets.
Premium incurred on foreign currency forward contracts is amortized
over the period of the contract.
1.10 Employees Benefits
Payments to Defined Contribution Schemes are charged as expense on
accrual basis.
Provision towards Defined Benefit Schemes is made based on the
actuarial valuation as at the end of the year and is charged to
Statement of Profit & Loss along with actuarial gains/losses and
contribution made.
1.11 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid upto Rupee
one lakh in each case not being considered material is included under
the income/expenditure of the current year.
1.12 Revenue Recognition
Revenues are recognized as per AS-9 on Revenue Recognition.
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on notifications received
from Fertilizer Industry Coordination Committee (FICC) an office of
Government of India which regulates such subsidy.
Escalation/De-escalation in notified rates is estimated taking into
account the effect of guidelines, policies, instructions and
clarifications given by the Government. The difference, if any based on
final notification received is treated as current year income or
expenditure and the effect of change in estimate, if material, is
disclosed separately.
Sale of scrap/waste materials is recognized on disposal.
1.13 Claims
Pending settlement, claims made on underwriters /railways /others as
assessed by the Company on a possible realization basis are recognized
at the time of lodgement.
1.14 Leases
Lease arrangements, where the risks and rewards incidental to ownership
of the asset substantially vest with the lessor, are recognized as an
operating lease. Lease payments/receipts under operating lease are
recognized as an expense/income in the Statement of Profit and Loss on
a straight-line method over the period of lease.
1.15 Deferred Tax
The deferred tax resulting from timing differences between book profit
and taxable profit for the year is accounted for, applying the tax
rates and laws that have been enacted or substantially enacted as on
the Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual
certainty that the assets can be realized in future and are reviewed
for the appropriateness of their respective carrying values at each
Balance Sheet date.
1.16 Earning Per Share
Basic earning per share is calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
Mar 31, 2011
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going
concern, under the historical cost convention in accordance with the
generally accepted accounting principles in India (GAAP) and the
provisions of the Companies Act, 1956.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in
India requires management to make estimates and assumptions, wherever
necessary, that affect the reported amount of assets and liabilities
and contingent liabilities as at the date of financial statements and
the amounts of revenue and expenses during the period. Actual results
could differ from those estimates. Any revision to such estimates is
recognized in the period in which the results are known/materialized.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction
(including expenses allocated wherever applicable) less accumulated
depreciation and impairment loss, if any.
Fixed Assets acquired out of capital grants are accounted for net of
grants received.
Expenditure during construction attributable to the fixed assets
incurred upto the date of commercial production are capitalized.
1.4 Borrowi ng Costs
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. A qualifying asset
is one, which necessarily takes a substantial period of time to get
ready for intended use. Other borrowing costs are charged to revenue
in the period in which these are incurred.
1.5 Depreciation/Amortization
t Depreciation on fixed assets is provided at the rates specified under
Schedule XIV of the Companies Act, 1956 on straight line method
retaining residual value of five percent in respect of plant and
machinery and , computer systems and rupee one in respect of capital
spares and other fixed assets.
Leasehold land and buildings are amortized over the lease period.
Buildings constructed over leasehold land are depreciated at the rates
specified under Schedule XIV of the Companies Act, 1956.
License and process know-how fee having future economic benefits is
amortized on straight line method over a period of ten years or licence
period, whichever is less.
Software which is not integral part of related hardware is treated as
intangible asset and amortized on straight line method over a period of
five years or its license period, whichever is less.
1.6 Investments
Long term investments are carried at cost, after providing for
diminution in value if it is of a permanent nature. Current
investments are valued (individually) at lower of cost and quoted/fair
value
1.7 Inventories
Raw Materials, packing materials and stores & spares, are valued at
lower of weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and upto
five years, provision is made at five percent per annum (on straight
line basis) and charged to revenue. In case of stores and spares not
moved for more than five years/identified as surplus or obsolete, value
is taken as certified by Valuers and diminution, if any is charged to
revenue.
Finished and semi-finished goods are valued at lower of cost and net
realizable value based on the applicable Concession/Sale Price. The
plant- wise finished stocks lying at warehouses are determined on
first-in-first-out basis
1.8 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated
at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is
recognized as income/expense.
1.9 Employees Benefits
Payments to defined contribution schemes are charged as expense as they
fall due.
Provision towards defined benefit schemes are made based on the
actuarial valuation as at the end of the year and charged to Profit &
Loss Account along with actuarial gains/losses.
1.10 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid upto Rupee
one lakh in each case is considered as income/expenditure of the
current year.
1.11 Revenue Recognition
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on notifications received
from Fertilizer Industry Coordination Committee (FICC) and taking into
account the effect of guidelines, policies, instructions and
clarifications given by the Government.
Sale of scrap/ waste materials is recognized on disposal.
1.12 Claims
Pending settlement, claims on underwriters /railways /others as
assessed by the Company are recognized at the time of lodgement.
1.13 Leases
Lease arrangements, where the risks and rewards incidental to ownership
of the asset substantially vest with the lessor, are recognized as an
operating lease. Lease payments/receipts under operating lease are
recognized as an expense/income in the Profit and Loss Account on a
straight-line method over the lease period.
1.14 Deferred Tax
The deferred tax resulting from timing differences between book profit
and taxable profit for the year is accounted for applying the tax rates
and laws that have been enacted or substantially enacted as on the
Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual
certainty that the assets can be realized in future and are reviewed
for the appropriateness of their respective carrying values at each
Balance Sheet date.
Mar 31, 2010
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared on accrual basis, as a going
concern, under the historical cost convention in accordance with the
generally accepted accounting principles in India (GAAP) and the
provisions of the Companies Act, 1956.
1.2 Use of Estimates
The preparation of the financial statements in conformity with GAAP in
India requires management to make estimates and assumptions, wherever
necessary, that affect the reported amount of assets and liabilities
and contingent liabilities as at the date of financial statements and
the amounts of revenue and expenses during the period. Actual results
could differ from those estimates. Any revision to such estimates is
recognized in the period in which the results are known/materialized.
1.3 Fixed Assets
Fixed Assets are stated at cost of acquisition or construction
(including expenses allocated wherever applicable) less accumulated
depreciation and impairment loss, if any.
Fixed Assets acquired out of capital grants are accounted for net of
grants received.
Expenditure during construction attributable to the fixed assets
incurred upto the date of commercial production are capitalized.
1.4 Borrowing Costs
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. A qualifying asset
is one, which necessarily takes a substantial period of time to get
ready for intended use. Other borrowing costs are charged to revenue
in the period in which these are incurred.
1.5 Depreciation
Depreciation on fixed assets is provided at the rates specified under
Schedule XIV of the Companies Act, 1956 on straight line method
retaining residual value of five percent in respect of plant and
machinery and computer systems and rupee one in respect of capital
spares and other fixed assets.
Leasehold land and buildings are amortized over the lease period.
Buildings constructed over leasehold land are depreciated at the rates
specified under Schedule XIV of the Companies Act, 1956.
License and process know-how fee having future economic benefits is
amortized on straight line method over a period often years or licence
period, whichever is less.
Software which is not integral part of related hardware is treated as
intangible asset and amortized on straight line method over a period of
five years or its license period, whichever is less.
1.6 Investments
Long term investments are carried at cost, after providing for
diminution in value if it is of a permanent nature. Current
investments are valued (individually) at lower of cost and quoted/fair
value.
1.7 Inventories
Raw Materials, packing materials and stores & spares, are valued at
lower of weighted average cost and net realizable value.
In case of stores and spares not moved for more than two years and upto
five years, provision is made at five percent per annum (on straight
line basis) and charged to revenue. In case of stores and spares not
moved for more than five years/identified as surplus or obsolete, value
is taken as certified by Valuers and diminution, if any is charged to
revenue.
Finished and semi-finished goods are valued at lower of cost and net
realizable value based on the applicable Concession/Sale Price. The
plant- wise finished stocks lying at warehouses are determined on
first-in-first-out basis.
1.8 Foreign Currency Transactions
Transactions in foreign currency are accounted at the exchange rate
prevailing on the date of the transaction.
The value of assets and liabilities in foreign currency are translated
at the exchange rate prevailing at the end of the year.
Exchange Gain/Loss on conversion of foreign currency transactions is
recognized as income/expense.
1.9 Employees Benefits
Payments to defined contribution schemes are charged as expense as they
fall due.
Provision towards defined benefit schemes are made based on the
actuarial valuation as at the end of the year and charged to Profit &
Loss Account along with actuarial gains/losses.
1.10 Adjustments pertaining to prior period and prepaid expenditure
Income/Expenditure pertaining to prior period and prepaid upto Rupee
one lakh in each case is considered as income/expenditure of the
current year.
1.11 Revenue Recognition
Sales include excise duty wherever applicable and are net of rebates.
Price and Freight Subsidy is recognized based on notifications received
from Fertilizer Industry Coordination Committee (FICC) and taking into
account the effect of guidelines, policies, instructions and
clarifications given by the Government.
Sale of scrap/waste materials is recognized on disposal.
1.12 Claims
Pending settlement, claims on underwriters /railways /others as
assessed by the Company are recognized at the time of lodgement.
1.13 Leases
Lease arrangements, where the risks and rewards incidental to ownership
of the asset substantially vest with the lessor, are recognized as an
operating lease. Lease payments/receipts under operating lease are
recognized as an expense/income in the Profit and Loss Account on a
straight-line method over the lease period.
1.14 Deferred Tax
The deferred tax resulting from timing differences between book profit
and taxable profit for the year is accounted for applying the tax rates
and laws that have been enacted or substantially enacted as on the
Balance Sheet date.
Deferred tax assets are recognized to the extent there is a virtual
certainty that the assets can be realized in future and are reviewed
forthe appropriateness of their respective carrying values at each
Balance Sheet date.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on National Fertilizers Ltd.
-
National Fertilizers Ltd. Tools
- Bulk Deals
-
National Fertilizers Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
National Fertilizers Ltd. Key Financial Ratios
- Ratios
-
National Fertilizers Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
National Fertilizers Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
National Fertilizers Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
National Fertilizers Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
