Annual Report - Indian Potash · PDF fileBank of Baroda Punjab National Bank Axis Bank ... their 59th Annual Report along with the audited ... The total volume sales of all products

INDIAN POTASH LIMITED

Annual Report 2013-2014

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IPL FERTILISERS

IPL DAIRY & FEEDS DIVISION

IPL SUGAR & POWER DIVISION

IPL SWARNALAYA

IPL PORT DIVISION

59TH AnnuAl RepoRT

2013 - 2014

indiAn poTAsH limiTed

RegisteRed Office

1ST Floor, SEETHAKATHI BUSINESS CENTrE,684-690, ANNA SAlAI, CHENNAI - 600 006.

TElEpHoNE : 044 - 28297855FAx : 044 - 28297407

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BoARd oF diReCToRs

Ms. VASUDHA MISHRA, IAS Managing DirectorCHAIRPERSON National Co-operative Development Corporation

SHRI SATISH CHANDRA, IAS Joint Secretary Department of Fertilizers, Government of India.

DR. U.S.AWASTHI Managing Director Indian Farmers Fertilizer Cooperative Ltd.

SHRI PREM CHANDRA MUNSHI Director Indian Farmers Fertilizer Cooperative Ltd.

SHRI BALVINDER SINGH NAKAI President Rampuraphul Co-op. Marketing-cum-Processing Society

SHRI JARNAIL SINGH WAHID Chairman Punjab State Co-op. Supply & Marketing Fed Ltd

SHRI H.S.BAWA Executive Vice Chairman Zuari Global Ltd.

SHRI DEVINDER KUMAR E.D & Secretary Steel Authority of India Ltd.

SHRI ATANU CHAKRABORTY, IAS Managing Director Gujarat State Fertilizers and Chemical Ltd.

SHRI SANTOSH KUMAR MISHRA, IAS Managing Director The Madhya Pradesh State Co-op. Marketing Federation Ltd.

SHRI A K PRUSETH, OAS Managing Director Odisha State Co-op. Marketing Federation Ltd.

SHRI N P PATEL Chairman Gujarat State Co-op. Marketing Federation Ltd.

SHRI R G RAJAN Chairman & Managing Director Rashtriya Chemicals and Fertilizers Ltd.

DR. VIJAY SATBIR SINGH, IAS Managing Director Maharashtra State Co-op. Marketing Federation Ltd.

SHRI D JOHN THANKAM President Tamilnadu State Co-op. Marketing Federation Ltd.

DR. P.S.GAHLAUT Managing Director Indian Potash Limited

ReGisTeRed oFFiCe:

1ST FLOOR, SEETHAKATHI BUSINESS CENTRE,684-690, ANNA SALAI, CHENNAI - 600 006.

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BAnKeRs

State Bank of India

State Bank of Hyderabad

State Bank of Patiala

Canara Bank

Bank of Baroda

Punjab National Bank

Axis Bank

IDBI Bank

HDFC Bank

Vijaya Bank

Allahabad Bank

HSBC Bank

AudiToRs

Messrs. Deloitte Haskins & Sells

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DIRECTORS’ REPORT

The Directors have pleasure in presenting their 59th Annual Report along with the audited accounts of the Company for the year ended 31st March, 2014.

GENERAL

The Year 2013/14 was not at all conducive for International trade of fertilisers. The country had very high opening inventory of phosphatic and potassic fertilisers as on 1.4.13. In fact, some of the institutions like Hafed, Haryana, Marketing Federations of Karnataka and Maharashtra etc., carried such heavy stocks that they did not purchase even a single tonne of DAP or MOP during the entire year and yet, have not been able to liquidate their stocks fully. The imports of phosphatic fertilisers dropped by 37%. The Year 2013/14 also saw unprecedented volatility in forex market as the forex parity, which was 1 USD = Rs.54.31 as on 31.3.13, depreciated sharply during first half and touched Rs.68.85 in last week of August, 2013.

As subsidy payment got delayed in the first quarter of 2013/14, all players in this segment had to rollover payment for raw materials/finished goods imports and these liabilities had to be discharged at a much higher forex level resulting in huge losses. The goodwill gesture shown by MOP suppliers to re-negotiate fixed price contracts helped to a great extent but obviously it could not go all the way in mitigating the losses already incurred. However, no such gesture was forthcoming from DAP suppliers. But fortunately once the China Export Window opened for DAP, the market prices adjusted a great deal. We could not take full advantage of lower prices as the Government reduced subsidy for importers for February and March

2014 which otherwise was to come into effect from 1.4.14.

As a result of all these adverse factors, almost all the major players in this segment like IFFCO, CIL, GSFC, PPL etc., have reported substantially lower profits in 2013/14 as compared to 2012/13 and 2011/12.

SALES

The total volume sales of all products during the year 2013-14 at 6.91 million tones is 23% lower than 8.94 million tones achieved in the year 2012-13 which is a substantial reduction. In line with the trend seen in the country as a whole, there is a decline in the sales of MOP/SOP as well as DAP.

FINANCIAL RESULTS FOR THE YEAR 2013-14

Your Company has achieved a total Revenue to the tune of Rs.15032 crores, which is lower by 24% when compared to the turnover of Rs.19791 crores achieved during the previous fiscal. The decrease in turnover was mainly attributed to decrease in the fertilizer subsidy of P & K and reduction in the quantum of sales primarily due to substantial reduction in the import of Di-Ammonium Phosphate (DAP) as well as pile up of stocks in the market.

The Company has earned a Pre-tax Profit of Rs.158 crores against budgeted profit of Rs.120 crores which showed a favorable variance as the projections were made when the market conditions were adverse / difficult. This favorable variance was primarily due to unanticipated recovery of the rupee during the fag end of the financial year 2013-14. The pre-tax profit of Rs.158 crores and the net profit of Rs.107 crores showed a substantial decline as compared to Rs.328 crores and Rs.251 crores achieved during the previous fiscal

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respectively. The decrease in profitability is due to various factors as detailed below :

- The company consciously / strategically brought down its imports of DAP by 26% approximately from 12.77 lakh mts. to 9.47 lakh Mts. Most of the DAP suppliers did not offer any rebates / incentives in spite of softening of international prices of DAP.

- The subsidy for DAP and MOP was reduced by Rs. 2000 per MT and Rs.3100 per MT respectively effective 1.4.13 and consequently MRPs of these products needed to be revised upward which impacted demand.

- In addition to the above, unfavourable weather conditions in terms of insufficient, erratic and delayed monsoon during the year resulting in sub-optimal rainfall especially during the Rabi season negatively impacted demand for fertilizers and consequently the profitability of the company.

- The factor intrinsically responsible for lower profitability of the Company was the steep decline in the value of Indian rupee vis-à-vis US dollar. The forex parity, which was USD 1 = Rs.54.31 as on 31.3.13 depreciated sharply during the first half of the year and touched a low of Rs.68.85 on 20th August, 2013 and gradually recovered to close at R.62.60 as on 30.9.13 and Rs.61.91 as on 31.12.13 but irrationally weakened to Rs.63.32 in the third week of January, 2014 but fortunately recovered to close at Rs.59.88 on 31.3.2014. This sporadic volatility virtually halved our profitability for the current financial year as compared to the previous fiscal.

- In spite of abnormal delay in receipt of subsidy from Government of India as well as interest recovered on account of Special Banking Funding through SBI by the Department of Fertilisers, the company by adopting various innovative financial structures and also obtaining unsecured Short Term Loans of various tenors at competitive interest rates from various banks in India and abroad contributed to reduction in the interest cost to the extent of Rs.150 crores. In our opinion, the company’s ability to source cost effective funds in spite of Reserve Bank of India’s policy which continue to follow high interest rate regime with the objective of controlling inflation which stifled growth across all sectors of economy helped the company to maintain reasonable profits.

DIVIDENDConsidering the current performance of your company during the current year, your Directors recommend a Dividend of Rs.2.50 per Equity Share of Rs.10/- each subject to approval of shareholders.

EXTENSION AND PROMOTION ACTIVITIESAs in the past our sustainable efforts continue to be on the focus of promoting balance application of fertilizers and the significance of role of potash in balance fertilization through intensified filed oriented activities under IPL and Collaborative projects.

We have laid out 155 crops demonstration, conducted 19 field days. We have organized 72 nos. of sales campaign, 168 nos of farmers meetings, 12 nos of crop seminars and 24 nos of Dealers training programmes. We have also participated in 48 nos. of Agriculture exhibitions. We have done 72,894 sq.ft of wall

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/ Trolly paintings in rural areas. Apart from this we have done 2074 Audio Visual programmes through which we have educated farmers about balanced fertilization with particular reference of role of potash in agricultural productions. We have also distributed promotional literatures like Wheat, Paddy, Mustard, Sugarcane, Grounnut, Vegetable, Cotton, Sugarcane, Chilli crop folders and literatures on SOP product and Potash Product in vernacular language to the farmers during A.V. Programmes and Farmers meetings and Crop Seminars. In this behalf we have spent 2.33 crores against our budget of Rs.2.00 crore.

UNDER COLLABORATIVE PROJECTS:SOP:

Similarly under SOP we have laid out 26 demonstration, conducted 8 field days, organized 57 farmers meetings, 31 sales campaigns, 9 Dealers Training Programme and participated in 11 agri exhibitions. In this behalf we have spent Rs. 24.41 lakhs against the budget of Rs.25.00 Lakhs.

IPNI:

Under this project we have laid out 128 demonstraion, conducted 20 fields organized 31 farmers meeting, 6 scientific workshop and also 65,876 sq.ft of wall paintings. We have spent Rs.40.00 Lakhs against the budget of Rs.92.00 Lakhs.

POTASH FOR LIFE:This project has been phased out for 3 years and implemented from October 2013 onwards with budgetary outlay of Rs.5.00 crores to educate the farmers on balance fertilization. We have laid out demonstrations, conducted field days organized potash campaign, crop seminars, wall paintings , Dealers Training Programmes etc.

PROSPECTS FOR 2014/15

The provisional import/sale figures of major products like Urea/DAP/NPKs and MOP for the year 2013/14 show a substantial decline as is evident from the data given below :

(000 MTs)

PRODUCT2012/13 2013/14

Import Sale Import Sale

Urea 8044.00 30166.95 7087.00 30454.26

DAP 5702.31 9145.02 3261.08 6854.58

NPKs 404.55 7298.96 361.56 7127.12

MOP 2441.06 2135.94 3177.26 2192.25

The position is grim because it is for second year in a row that sales of DAP and NPKs have declined leading to nutrient imbalance in consumption at 9.19:2.3:1.0. The cut in imports mainly of DAP has helped in bringing down the trade stocks by 2 million tones and with all going well, the decline in import and sale of DAP should get reversed in current year.

However, international climate researchers are predicting enhanced possibility of an El Nino in 2014. The condition which occurs at intervals of 2-7 years, weakens the Indian monsoon often causing drought in North West and Central India and heavy rainfall/floods in North East as was seen in 2002 and again in 2009. But with international prices softening and stability in forex market, we will try and maintain our budgeted volume sales and profits for the year 2014/15.

In case of Sugar Division, competitive populism has resulted in U.P. State Government declaring highest procurement price in the country with an eye on General Elections which

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had adversely affected our 2013/14 working. With all elections out of the way, it is hoped that there will be no more irrational increase in State Advised Price of Sugarcane in 2014/15 and with sugar prices likely to harden, we are very hopeful of improvement in the working of this Division.

The improvement in the working of Dairy and Cattle Feed Division is expected to continue as volume sales are slated to go up and incidence of interest and depreciation is coming down.

SUBSIDIARY

The Balance Sheet as at 31.3.2014 and Profit and Loss account for the period ending 31.3.2014 of Goldline Milkfood and Allied Industries Limited, IPL Sugars and Allied Industries LImited and IPL Gujarat Port Limited, wholly owned subsidiaries of the company are annexed to the Annual Report’s and Accounts.

DIRECTORS’ RESPONSIBILITY STATEMENT

In the preparation of the Annual Accounts for the Financial Year ended 31st March, 2014, the applicable accounting standards had been followed along with proper explanation relating to material departures.

The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period.

The Directors had taken proper and sufficient care for the maintenance of adequate

accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

The Directors had prepared the annual accounts for the Financial Year ended 31st March, 2014 on a going concern basis.

CONSTITUTION OF AUDIT COMMITTEE

Pursuant to the provisions under Section 292A of the Companies Act, 1956, the Board had constituted an Audit Committee with the following Directors as its members.

Dr. U S Awasthi

Shri Devinder Kumar

Dr. P S Gahlaut

DIRECTORS

In accordance with Article 101,102 and 103 of the Company’s Articles of Association read with Section 255 and 256 of the Companies Act, 1956, the following Directors will retire by rotation at the ensuing Annual General Meeting and are eligible for re-election.

Shri Balwinder Singh Nakai

Shri Prem Chandra Munshi

Dr. Vijay Satbir Singh

PARTICULARS OF EMPLOYEES

The particulars of employees as required by Section 217(2A) of the Companies Act, 1956 and Companies (Particulars of Employees) Rules, 1975 as amended from time to time is not given as no employee is in receipt of remuneration as required under section 217(2A) of the Companies Act, 1956.

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CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

In accordance with the requirements of Section 217(1)(e) of the Companies Act, 1956 read with Rule of the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988, the information relating to conservation of energy, technology absorption and foreign exchange earnings and outgo is given in the Annexure which forms part of the Directors’ Report.

AUDITORS

Messers Deloitte Haskins & Sells, the Auditors of the company retire in accordance with the provisions of the Companies Act, 2013 and are eligible for re-appointment. They have informed us that they will be agreeable to be re-appointed.

COST AUDITORS

Company has appointed M/S.R M Bansal & Co, Cost Accountants, Lakhanpur, Kanpur, U.P to conduct the cost audit of sugar units, Dairy and Cattle feed products for the Financial Year ended 31st March 2014. The Company has received necessary Central Government approval for the appointment of the Cost Auditor.

ACKNOWLEDGEMENT

The company is grateful to the Ministry of Chemicals & Fertilisers, Ministry of Agriculture, Ministry of Finance, Department of Revenue and other Departments of the Central Government, Department of Agriculture of various State Governments and the consortium of Banks for their guidance, co-operation and assistance. The Directors acknowledge

with gratitude the support of the company’s distributors and Institutional customers and Overseas and indigenous suppliers. The Directors also wish to place on records their appreciation of the dedicated and sincere services of the employees and officers of the Company at all levels.

On behalf of the Board

VASUDHA MISHRAChairperson

ANNEXURE TO THE DIRECTORS’ REPORT

Statement in accordance with Section 217(1)(e) of the Companies Act. 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors’ Report for the year ended 31st March, 2014.

A) Conservation of Energy:-

a) Boiler :

In Boilers of all three plants of Dairy & Feed Division situated at Sikandrabad and Gajulumandyam the quality of feed water is ensured so as to achieve maximum heat transfer avoiding scaling. Moreover condensate from processing plant is taken back to Boiler as feed water resulting in less fuel consumption. Air Pre Heater of boilers are cleaned regularly & other preventive maintenance of Boiler is undertaken to attain maximum thermal efficiency.

b) Electricity :

In all three plants of Dairy & Feed Division situated at Sikandrabad and Gajulumandyam proper production planning is done, so as to ensure minimum electricity consumption. We have installed variable frequency drives on

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all major processing machines which ensures saving in power consumption. The power factor is maintained less than one which results in reduction of loading of transformers, distribution losses in cable and other equipments ultimately helping in saving over all power consumption.

In our Dairy unit we have installed most energy efficient foil winding transformers wherein line losses are minimal.

B) Technology Absorption, Adaptation and innovation:-

In our Dairy unit at Sikandrabad for refrigeration we have installed vapor absorption machine which are more energy efficient than conventional Ammonia based electrical chillers. These machines instead of electricity are operated on steam which is generated from agro waste.

Processing plant in Dairy unit is having latest SCADA based automation which results in saving in energy and better process controls ensuring consistency in final products.

Few changes had been made in feeder conditioner for proper heat treatment of mesh for pellatization for improving pelletizing efficiency. This helps in proper running of pellet mill resulting in increased efficiency when moisture level in raw material is on higher side.

Variable Frequency Drive installed ensures proper speed regulation of pellet mill in accordance with feeding material from time to time, resulting in consistency of quality of feed and saving in electrical energy with enhanced production.

Power and Fuel Consumption : -

1 Electricity Current Year Previous YearCattle Feed Production(Renigunta)

26584.00 24080.35

Total Amount Rs.5162142.00 Rs.3821399.00Rate Per Unit Rs.8.49 / Unit Rs.8.4 / Unit

2 LDO/ Furnace Oil Current Year Previous YearLDO Quantity (Ltrs) 96382.00 124452.00Furnace Oil Quantity(Kgs) Nil Nil

Total Amount Rs. 5390120.50 Rs.5953521.00Average Rate Rs. 202.76 Rs.247.23

3 Product Current Year Previous YearCattle Feed(Mts) 26584.00 24080.35Electricity Unit per Mts. Cattle Feed production

25 25

Diesel 6.25 6.15

4 Electricity Current Year Previous YearCattle Feed Production(Sikandrabad)

142911 316767

Total Amount Rs.1297631.00 Rs.2283890.00Rate Per Unit Rs.9.08 Rs.7.21

5 LDO/DIESEL QTY (LTR) Current Year Previous Year

LDO Quantity(Ltrs) 23748 62952

Furnace Oil Quantity(Kgs) Nil Nil

Total Amount Rs. 1326672.97 Rs.2840112.40

Average Rate Rs.55.86 Rs.45.12

6 Product Current Year Previous Year

Cattle Feed(Mts) 6664.900 15120.175

Electricity Unit per Mts. Cattle Feed production 21.44 20.95

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7 Electricity Current Year Previous YearMilk 3199480 2569560Total Amount Rs.25292867.00 Rs.17851980.00Rate Per Unit Rs.7.91 Rs.6.95

8 LDO/ Furnace Oil Current Year Previous Year

LDO Quantity(Ltrs) 73765 95675


Total Amount Rs. 4142443.05 Rs.4319039.75

Average Rate Rs.56.16 Rs.45.14

RESOURCE USED

SUGAR UNITS SUGAR UNITS

2013 – 14 2012 – 13

AMOUNT (RS) QTY / UNITS AVERAGE AMOUNT

(RS) QTY / UNITS AVERAGE

ELECTRICITY 6211860.00 618259.90 10.05 6513560.00 822253.70 7.92

DIESEL / LDO 38623088.55 522812.15 73.88 37004515.66 805777.81 45.92

BAGASE 44108788.25 282565.92 156.10 7965253.55 39009.62 204.19

C. Foreign Exchange Earning:-

Earnings : Rs.82393.85 Lakhs

Outgo : Rs.1538794.33 Lakhs

On Behalf of the Board

Date: June 17,2014 VASUDHA MISHRAChairperson

9 LDO/ Furnace Oil Current Year Previous Year

Rice Husk (MT) 5521.000 5869.750


Total Amount Rs.22561353.78 Rs.22227202.92

Average Rate/MT Rs.4086.46 Rs.3786.73

10 Product (MILK) Current Year Previous Year

LDO Quantity(Ltrs) NIL 102548.343

Average Rate NIL Rs.25.05

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Report on the Financial Statements

We have audited the accompanying financial statements of INDIAN POTASH LIMITED (“the Company”), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (“the Act”) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF INDIAN POTASH LIMITED

Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal controls relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(b) in the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date and

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

Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s

Report) Order, 2003(“the Order”) issued by the Central Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have

been kept by the Company so far as it appears from our examination of those books

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notified under the Act (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs).

(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of Section 274(1)(g) of the Act.

For DELOITTE HASKINS & SELLSChartered Accountants

(Firm’s Registration No. 008072S)M.K.ANANTHANARAYANAN

Partner(Membership No. 19521)

Chennai : June 17, 2014

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ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(i) Having regard to the nature of the Company’s business/activities/result during the year, clauses 4(vi), 4(xii), 4(xiii), 4(xiv), 4(xviii), 4(xix), 4(xx) of Paragraph 4 of the Order are not applicable.

(ii) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. The company is in the process of updating the Fixed assets register in respect of sugar units.

(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

(iii) In respect of its inventory:

As explained to us, the stock of Raw Materials, work-in-progress and finished goods and stores and spares in the Company’s custody have been physically verified by the Management as at the end of the financial year or during the year. In case of Raw Materials, Finished Goods and Trading Stocks, lying at third party locations, written certificates confirming stocks have been received in respect of stocks held at the year end.

In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business

In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. However in respect of stores and spares relating to sugar units, the documentation with regard to perpetual records needs to be strengthened.

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(iv) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.

v) In our opinion and according to the information and explanations given to us there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and for the sale of goods and services, During the course of our audit, we have not observed any major weakness in such internal control system.

vi) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

(b) Where each of such transaction is in excess of Rs.5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vii) In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(ix) According to the information and explanations given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Income-tax, Value added Tax, Purchase Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund, Income-tax, Value added tax, Purchase Tax, Wealth Tax, Service Tax Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable except in respect of Entry Tax of Rs. 0.94 Lakhs and Value added tax of Rs. 0.66 Lakhs relating to sugar units

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which have been outstanding since date of acquisition of these units and remain unpaid till date.

c) Details of dues of Income-tax, Value added Tax, Purchase Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31st March, 2014 on account of disputes are given below:

Name of Statute Nature of Dues

Forum whereDispute is pending

Period to which the amount

relates

Amount involved

(Rs. in lakhs)

Income Tax Act, 1961 Income Tax Commissioner

(Appeals)2002-2003 to

2011-2012 11,695.39

Uttar Pradesh Trade Tax Act, 1948

Trade Tax(Entry Tax) Trade Tax Tribunal 1993-94 &

2005-2006 14.19


Trade Tax(Entry Tax) High Court, Allahabad 1994-95, 1995-

96 & 2000-01 6.59


Trade Tax(Entry Tax)

Joint Commissioner (Appeal), Muzzafarnagar. 2007-08 40.65

Central Excise Act, 1944 Service tax Assistant Commissioner -

Central Excise 2008-09 1.56

Central Excise Act, 1944

Cenvat Credit

Deputy. Commissioner Cen-tral Excise, Muzaffarnagar 2008-09 1.03

Central Sales Tax Act, 1956

Trade Tax(Entry Tax)

Joint. Commissioner(Appeal) 2004-05 36.71


Trade Tax (Entry Tax)

Deputy. Commissioner (Appeal) 2006-07 8.1


Trade Tax (Entry Tax)

Joint. Commissioner (Appeal)

2007-08 & 2008-09 31.48

Central Sales Tax Act, 1956 Central Tax Joint. Commissioner

(Appeal) 2007-08 12


Excise Duty & Cenvat

Credit

Commissioner, Appeals Central Excise, Allahabad

2005-06 & 2006-07 8.53


Cenvat Credit C.E.S.T.A.T , New Delhi 2008-09 &

2009-10 6.17


Cenvat Credit

Assistant Commissioner - Central Excise, Gorakhpur

2007-08 & 2009-2010 1.04

Central Excise Act, 1944 Service tax Commissioner, Appeals

Central Excise, Allahabad 2009-10 159.27


Excise Duty & Cenvat

Credit

Commissioner, Appeals Central Excise, Allahabad 2009-10 3.73

GRAND TOTAL 12,026.44

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(x) The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company does not have any borrowings from financial institutions and has not issued any debentures.

(xii) According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks and financial institutions.

(xiii) In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.

(xiv) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that funds raised on short-term basis have prima facie not been used during the year for long- term investment.

(xv) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For DELOITTE HASKINS & SELLS Chartered Accountants

(Firm’s Registration No. 008072S)

M.K.ANANTHANARAYANAN Partner

Chennai : June 17, 2014 (Membership No. 19521)

18


BALANCE SHEET AS AT 31 MARCH, 2014 Rupees in LakhsParticulars Note No. As at 31 March, 2014 As at 31 March, 2013

A EQUITY AND LIABILITIES1 Shareholders’ funds

(a) Share capital 3 1,429.86 1,429.86 (b) Reserves and surplus 4 149,090.52 138,810.71

150,520.38 140,240.57 2 Non-current liabilities

(a) Long-term borrowings 5 1,713.92 - (b) Other long-term liabilities 6 177.48 128.52 Total of Non-Current Liabilities 1,891.40 128.52

3 Current liabilities(a) Short-term borrowings 7 318,499.25 615,257.87 (b) Trade payables 8 189,799.62 81,851.22 (c) Other current liabilities 9 67,486.73 72,510.42 (d) Short-term provisions 10 418.22 3,405.60 Total of Current Liabilities 576,203.82 773,025.11

TOTAL 728,615.60 913,394.20 B ASSETS1 Non-current assets

(a) Fixed assets 11 (i) Tangible assets 33,311.94 30,340.58 (ii) Intangible assets 618.71 625.27 (iii) Capital work-in-progress 2,044.79 3,216.66

35,975.44 34,182.51 (b) Deferred tax asset (net) 12 4,001.60 4,452.57 (c) Non Current Investments 13 2,090.76 2,091.76 (d) Long-term loans and advances 14 5,665.18 5,158.72 Total of Non-Current Assets 47,732.98 45,885.56

2 Current assets(a) Current investments 15 32,453.56 34,414.77 (b) Inventories 16 119,420.65 109,581.97 (c) Trade receivables 17 443,386.62 596,918.75 (d) Cash and cash equivalents 18 65,286.35 113,817.33 (e) Short-term loans and advances 19 11,430.42 3,886.94 (f) Other current assets 20 8,905.02 8,888.88 Total of Current Assets 680,882.62 867,508.64

728,615.60 913,394.20 See accompanying notes forming part of the financial statements 1 & 2

In terms of our report attached. For DELOITTE HASKINS & SELLS For and on behalf of the Board of Directors Chartered Accountants

M.K.ANANTHANARAYANAN Vasudha Mishra U.S.Awasthi Partner Chairperson Director

P.S.Gahlaut Rajesh Kumar SadangiManaging Director Company Secretary

Place : New DelhiDate : June 17, 2014

19






STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH, 2014 Rupees in Lakhs

Particulars Note No.For the

year ended 31 March, 2014

For the year ended

31 March, 2013

1 Revenue from operations (gross) 21 1,490,511.68 1,957,444.01

Less: Excise duty 1,150.80 1,200.94

Revenue from operations (net) 1,489,360.88 1,956,243.07

2 Other income 22 13,884.62 22,887.07

3 Total revenue (1+2) 1,503,245.50 1,979,130.14

4 Expenses(a) Cost of materials consumed 23 a. 40,837.49 35,887.61 (b) Purchases of stock-in-trade 23 b. 1,241,479.68 1,495,726.17 (c) Changes in inventories of finished

goods, work-in-progress and stock-in-trade

23 c. (8,693.12) 192,669.71

(d) Manufacturing and Operational expenses 24 99,698.49 121,626.48

(e) Employee benefits expense 25 5,726.66 4,849.53 (f) Finance costs 26 42,147.50 57,262.11 (g) Depreciation and amortisation expense 11 2,065.25 1,541.99 (h) Other expenses 27 64,196.70 36,782.12 Total expenses 1,487,458.65 1,946,345.72

5 Profit before tax (3-4) 15,786.85 32,784.42

6 Tax expense:(a) Current tax 4,600.00 10,100.00 (b) Deferred tax 450.97 (2,423.93)

5,050.97 7,676.07 7 Profit after Tax (5-6) 10,735.88 25,108.35

Basic /Diluted Earnings Per Share 75.08 175.60 (Face value of Rs. 10 each)See accompanying notes forming part of the financial statements 1 & 2

20


AUDIT FOR THE YEAR ENDED 31ST MARCH 2014CASH FLOW STATEMENT Rupees in Lakhs

Description For the year ended31 March 2014

For the year ended31 March 2013

A. Cash flow from operating activities Profit before tax 15,786.85 32,784.42 Adjustments for : Depreciation and amortisation expense 2,065.25 1,541.99 Profit on sale of assets (289.37) (28.52) Profit on sale of Investments (44.43) - Finance costs 42,147.50 57,262.11 Interest income (3,700.18) (4,415.34) Dividend income (3,664.28) (4,562.21) Provision for liablities / duties no longer required (3,110.63) (10,737.35) Provision for bad trade and other receivables no longer

required (493.65) -

Adjustments to the carrying amount of investments and Assets 1,961.26 (1,681.32)

Provision for doubtful trade receivables 2,442.76 5,281.05 Bad Debts Written Off 873.82 346.19 Net unrealised exchange (gain) / loss (7,463.96) 30,724.09 (5,267.95) 37,738.65 Operating profit before working capital changes 46,510.94 70,523.07 Adjustments for (increase) / decrease in operating assets : Inventories (9,838.68) 191,633.60 Trade receivables 151,462.58 16,128.07 Short-term loans and advances (7,543.48) 20,868.81 Long-term loans and advances 925.01 680.09 Other current assets 40.96 593.71 Adjustments for increase / (decrease) in operating

liabilities : Trade payables 112,815.55 (335,194.06) Other current liabilities 3,951.14 (2,232.67) Other long-term liabilities 48.96 64.26 Short-term provisions - (3,980.93) Long-term provisions - 251,862.04 0.37 (111,438.75) Cash generated from operations Net income tax (paid) / refunds (9,018.85) (4,100.00) Net cash flow from / (used in) operating activities (A) 289,354.13 (45,015.68)B. Cash flow from investing activities Capital expenditure on fixed assets, including capital

advances (3,992.25) (5,257.92)

Proceeds from sale of fixed assets 323.98 113.96 Proceeds from sale of Investments 1.00 - Bank balances not considered as Cash and cash

equivalents - Placed (182.56) (89.86)

21






AUDIT FOR THE YEAR ENDED 31ST MARCH 2014CASH FLOW STATEMENT Rupees in Lakhs

Description For the year ended31 March 2014

For the year ended31 March 2013

Current investments not considered as Cash and cash equivalents - Purchased (1,616,195.73) (2,396,166.83)- Proceeds from sale 1,619,904.44 2,400,729.05

Purchase of long-term investments - Others - (0.99)

Interest received - Fertlizer Bonds 2,609.22 2,606.80 - Others 1,115.77 1,808.54

Net cash flow from investing activities (B) 3,583.87 3,742.75 C. Cash flow from financing activities Proceeds from long-term borrowings 1,713.92 - Repayment of long-term borrowings (4,997.00) (6,668.00) Net increase in working capital borrowings 4,082.94 - Proceeds from other short-term borrowings 283,753.82 2,500.00 Repayment of other short-term borrowings (582,751.96) (35,570.60) Finance costs (42,931.84) (59,309.90) Dividends paid (352.15) (294.15) Tax on dividend (60.75) (57.99) Net cash used in financing activities (C) (341,543.02) (99,400.64) Net decrease in Cash and cash equivalents (A+B+C ) (48,605.02) (140,673.57) Cash and cash equivalents at the beginning of the year 113,708.81 254,382.38 Effect of exchange differences on restatement of foreign

currency Cash and cash equivalents - -

Cash and cash equivalents at the end of the year 65,103.79 113,708.81 Reconciliation of Cash and cash equivalents with the

Balance Sheet : Cash and cash equivalents 65,286.35 113,817.33 Less : Bank balances not considered as Cash and cash

equivalents as defined.(i) In other deposit accounts

- original maturity more than 3 months 162.35 93.63 (ii) In earmarked accounts (Refer Note (ii) below)

- Unpaid dividend accounts 20.21 14.89 Net Cash and cash equivalents (as defined in AS3 Cash Flow Statements) included in Note 19 65,103.79 113,708.81

22


NOTE 1

CORPORATE INFORMATION

In 1970, Indian Potash Supply Agency, an agency formed by Ministry of Commerce and Industry, Government of India, was converted into Indian Potash Limited (IPL), and its membership base was expanded to include Co-operative Sector Institutions and Public Sector Companies.

The share holding pattern of IPL as on 31st Mar’2014 is as follows :

Cooperative Sector - 70.22%

Public Sector - 20.54%

Private Sector - 9.24%

IPL is presently in the business of import and distribution of Muriate of Potash, Sulphate of Potash, Di-Ammonium Phosphate, Urea, Rock Phosphate, Gypsum etc. IPL is also one of the canalising agency of Government of India for import of UREA. The distribution of fertilisers across the country including the inaccessible areas is serviced by Regional Offices in almost all state capitals. IPL efficiently handles fertiliser shipments of more than 3 Million tones per annum at all the major and minor ports in the country.

Recently, IPL has also entered into the business of Cattle Feed , Milk and Milk Products and trading of Gold and other precious metals. During the year 2010-11, IPL had acquired five sugar mills from U.P.State Sugar Corporation and commenced production of sugar.

NOTE 2

A. ACCOUNTING POLICIES

1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 (“the 1956 Act”) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 (“the 2013 Act”) in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Companies Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets acquired before 1 April, 1995, that are carried at revalued amounts. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets

23


and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

3. Inventories

i) Inventories are valued at the lower of cost and net realisable value (as stated in (ii) below) after providing for obsolescence and other losses, where considered necessary. Cost includes all direct costs and applicable production overheads incurred in bringing such inventories to their present location and condition. Cost includes all charges incurred in bringing the goods to the point of sale including Octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

ii) In respect of :

a) Raw materials, trading stocks and stores and spares, cost is determined on weighted average basis.

b) Packing materials, cost is determined on First-in-First –out basis.

iii) By products are valued at net realizable value

4. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value

5. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

6. Depreciation and Amortisation

(a) Depreciation on fixed assets, has been provided on written down value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Godown and Audio Visual Unit which are depreciated at 10% and 30% respectively which are higher than the rates specified in schedule XIV, based on useful life of the assets as estimated by the management.

24


(b) Assets costing less than Rs. 5,000 each are fully depreciated in the year of capitalisation

(c) Leasehold Land and Buildings on leasehold land are written off over the period of lease

(d) The difference between the depreciation for the year on revalued buildings and depreciation calculated on the original cost is recouped from the fixed assets revaluation reserve.

(e) Intangible assets comprising of “Leasehold Rights” is amortized over the period for which right is acquired for use, as per the agreement.

7. Revenue Recognition

(a) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

(b) Subsidy is recognised on the basis of the rate notified from time to time by the Government of India in accordance with Nutrient Based Subsidy (NBS) policy on the quantity of Fertilizers sold by the Company for the period for which notification has been issued and for the remaining period, based on conservative estimates.

(c) All Income and Expenses are accounted generally on accrual basis with the exception of interest from customers, insurance claims, dispatch / demurrage claim and compensation/recoveries made by Government of India, which are accounted as and when received, on account of uncertainty in their collection.

(d) Service Charges are recognized in the books as and when services are rendered. In case of Fertilizers imported on behalf of the Government of India / Business Associates, purchases include actual cost plus expenditure incurred. Sales against these purchases are accounted for on FOB/ CIF cost plus fixed service charges and bank charges.

(e) Interest income other than those stated in (c ) above is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

8. Fixed Assets (Tangible / Intangible)

(a) Fixed Assets (other than those which have been revalued) are stated at historical cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Cost includes related taxes, duties, freight, insurance etc. Attributable to acquisition and installation of assets, but excludes duties and taxes that are recoverable subsequently from taxing authorities.

25


(b) The Company revalued all its Land and Building (other than factory building) that existed on 31st March 1995. The revalued assets are carried at the revalued amounts less accumulated depreciation and impairment losses, if any. The revalued fixed assets are stated at their estimated replacement values as on 31st March 1995, determined by an independent valuer.

(c) Intangible assets are stated at cost less accumulated amortization.

(d) Capital work-in-progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

9. Foreign Currency Transaction / Translation

Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement at the balance sheet date

Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

Accounting for forward contracts

Premium / discount on forward exchange contracts, which are not intended for trading or speculation purposes, are amortised over the period of the contracts if such contracts relate to monetary items as at the Balance Sheet date.

10. Investments

Long-term investments, are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

11. Employee benefits

Employee benefits include provident fund, Superannuation fund, Gratuity fund and Compensated absences.

26


a) Long Term Employee Benefits

i) Defined Contribution Plan

The Company’s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made and when services are rendered by the employees.

ii) Defined Benefit Plan

The liability for Gratuity to employees as at Balance Sheet date is determined on the basis of actuarial valuation based on Projected Unit Credit method and is paid to a Gratuity fund administered by the trustees and managed by SBI Life Insurance Company. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur.

The employees and the Company make monthly contributions to the Indian Potash Limited Staff Provident Fund Trust, equal to a specified percentage of the covered employee’s salary. The interest rate payable by the Trust to the beneficiaries is being notified by the Government every year. 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.

iii) Long term Compensated absences

The liability for Compensated absences to employees as at Balance Sheet date is determined on the basis of actuarial valuation based on Projected Unit Credit method and is paid to a fund administered and managed by HDFC Life Insurance Limited. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur.

b) Short term employee benefits

“The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of short-term compensated absences is accounted as under :

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.”

27


12. Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

13. Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

14. Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

15. Taxes on income

Provision for Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable income and accounting income computed using the tax rates and the laws that have been enacted or substantively enacted as of the balance sheet date. Deferred Tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize

28


such losses. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realize such assets.

16. Impairment of Assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

17. Provisions and contingencies

Provisions are recognized only when there is a present obligation as a result of past events and when a reasonable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) possible obligation which will be confirmed only by future events not wholly within the control of the company or (ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.

18. Derivative contracts

The Company enters into derivative contracts in the nature of forward contracts with an intention to hedge its existing assets and liabilities. Derivative contracts which are closely linked to the existing assets and liabilities are accounted as per the policy stated for Foreign currency transactions and translations.

19. Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

20. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is certainty in availing / utilising the credits.

21. Operating Cycle Based on the nature of products / activities of the Company and the normal time between

acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

29


Notes forming part of the financial statements

NOTE 3 Share capital

Particulars As at 31 March, 2014 As at 31 March, 2013

Number of Shares

Rs. in Lakhs

Number of Shares

Rs. in Lakhs

(a) Authorised

Equity shares of ` 10 each 50,000,000 5,000.00 50,000,000 5,000.00

(b) Issued


(c) Subscribed and fully paid up


Total 14,298,600 1,429.86 14,298,600 1,429.86

(i) Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder

As at 31 March, 2014 As at 31 March, 2013

Number of shares

held

% holding in that class of

shares

Number of shares

held

% holding in that class of

shares

Equity shares with voting rights :Indian Farmers Fertilisers Cooperative Ltd.(Investing Party)

4,860,000 33.99 4,860,000 33.99

Gujarat State Co-operative Marketing Federation Ltd.

1,494,000 10.45 1,494,000 10.45

Gujarat State Fertilisers and Chemicals Ltd.

1,125,000 7.87 1,125,000 7.87

Andhra Pradesh State Cooperative Marketing Federation Ltd.

891,000 6.23 891,000 6.23

Madras Fertilisers Ltd. 792,000 5.54 792,000 5.54

(ii) The company has one class of equity shares having a par value of Rs.10/- per share. Each share holder is entitled for one vote. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. Repayment of share capital on liquidation will be in proportion to the number of equity shares held.

30



NOTE 4 Reserves and surplus Rupees in Lakhs

ParticularsAs at 31

March, 2014As at 31

March, 2013(a) Revaluation reserve Opening balance 364.90 383.75

Less: Utilised for set off against depreciation 17.49 18.85

Less: Written back during the year on sale 20.36 -

Closing balance 327.05 364.90

(b) General reserve Opening balance 37,886.88 34,586.88

Add: Transferred from surplus in Statement of Profit and Loss 1,600.00 3,300.00

Closing balance 39,486.88 37,886.88 (c) Molasses Storage Facilities Reserve Fund Opening balance 36.64 34.44

Add: Additions / transfers during the year # 2.62 2.20

Closing balance 39.26 36.64 (d) Surplus in Statement of Profit and Loss Opening balance 100,522.29 79,134.36

Add: Profit for the year 10,735.88 25,108.35

Less: Dividends proposed to be distributed to equity

shareholders (` 2.50 per share) 357.47 357.47

Tax on dividend 60.75 60.75

Transfer to:

General reserve 1,600.00 3,300.00

Molasses Storage Facilities Reserve Fund # 2.62 2.20 # Represents amount transferred from Statement of Profit and Loss for utilisation towards maintenance of adequate storage facilities in accordance with the order issued by the Controller of Uttar Pradesh State Sugar Corporation at the stipulated rate. The Company has earmarked bank deposits corresponding to this reserve.Closing balance 109,237.33 100,522.29

Total 149,090.52 138,810.71

31


Notes forming part of the financial statementsNOTE 5 Long - term borrowings

Rupees in LakhsParticulars As at 31 March, 2014 As at 31 March, 2013

Term loanFrom a Bank (Refer Notes below)Secured 1,713.92 -

1,713.92 - Notes:(i) Details of terms of repayment for long-term borrowings and security provided in respect of

secured long-term borrowings:Rupees in Lakhs

Particulars Terms of repaymentAs at 31 March, 2014 As at 31 March, 2013Secured Unsecured Secured Unsecured

Term loan from a bank: HDFC Bank

Repayable in 12 quarterly instalments commencing from June 2016 & ending March 2019 @ Rs. 142.83 lakhs per installment.

1,713.92 - - -

TOTAL 1,713.92 - - - ii) Details of

SecurityFirst charge on the moveable fixed assets of sugar units of the Company.

iii) Interest The company has availed the interest free loan under "Scheme for Extending Financial Assistance to Sugar Undertakings 2013", from Sugar Development Fund.

NOTE 6 Other Long Term Liabilities Rupees in Lakhs

Particulars As at 31 March, 2014 As at 31 March, 2013Deferred Rent Liability (Refer Note No.35) 177.48 128.52

Total 177.48 128.52NOTE 7 Short-term borrowings Rupees in Lakhs

Particulars As at 31 March, 2014 As at 31 March, 2013From Banks:Secured Working capital facilities 36,588.85 32,505.91 Unsecured (Refer Notes (ii) and (iii) below)Rupee Loans 86,763.82 140,000.00 Buyers Credit 195,146.58 442,751.96

281,910.40 582,751.96 Total 318,499.25 615,257.87

32


Notes:

(i) Details of security for the secured short-term borrowings: Rupees in Lakhs

Particulars As at 31 March, 2014

As at 31 March, 2013

Working Capital Facilities

State Bank of India

Secured by hypothecationof stocks and sundry debtors

- 30,000.00

Punjab National Bank - 0.19

HDFC Bank - 0.28

IDBI Bank - 5.44

Allahabad bank 0.03 -

State Bank of India Secured by Hypothecation of Trade Receivables. (Charge is yet to be created)

34,088.82 -

New India Co-operative Bank Security of land and building situated at Sikandrabad, Uttar Pradesh.

2,500.00 2,500.00

36,588.85 32,505.91

ii) Rupee Loans include Rs. 30,000 Lakhs (previous year - Rs. NIL) from a bank, for which Special Fertilizer Bonds have been lodged as security. Refer Note (i) in Note No. 15.

iii) Buyers Credit represents loans denominated in foreign currency.

NOTE 8 Trade payables

Rupees in Lakhs


As at31 March, 2013

Trade payables:

Acceptances 151,508.05 35,254.09

Others (Refer Note below) 38,291.57 46,597.13

Total 189,799.62 81,851.22

33



Note:

Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Rupees in Lakhs



(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year

62.23 86.17

(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year

5.77 Nil

(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day

Nil Nil

(iv) The amount of interest due and payable for the year 5.77 Nil

(v) The amount of interest accrued and remaining unpaid at the end of the accounting year

5.77 Nil

(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid

Nil Nil

The dues to Micro and Small Enterprises in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 as of 31 March 2014 and 31 March 2013 are on the basis of such parties having been identified by the Management and relied upon by the auditors.

NOTE 9 Other current liabilitiesRupees in Lakhs



(a) Current maturities of long-term debt (Refer Note (i) below)

- 4,997.00

(b) Interest accrued but not due on borrowings 1,244.64 2,028.98

(c) Unpaid dividends (Refer Note (ii) below) 20.21 14.89

(d) Employee Benefits :

(i) Gratuity (Refer Note (iii) below ) 172.21 44.51

(ii) Compensated absences (Refer Note (iv) Below) 337.89 236.45

34


(e) Other payables (i) Statutory remittances 3,068.17 3,052.10

(ii) Payables on purchase of fixed assets 2,810.00 2,816.54

(iii) Trade / security deposits received 3,211.26 3,276.39

(iv) Advances from customers 2,483.52 1,371.89

(v) Port handling expenses 23,917.16 21,929.88

(vi) Customer Discounts 13,090.57 15,509.05

(vii) Freight & other claims 13,140.20 13,140.20

(viii) Others 3,990.90 4,092.54

Total 67,486.73 72,510.42

Note (i): Current maturities of long-term debt (Refer Notes (i) in Note 5 - Long-term borrowings for details of security and guarantee):

Rupees in Lakhs

Particulars As at

31 March, 2014

As at 31 March,

2013 Term loans From banks Secured - 4,997.00

Total - 4,997.00 Note (ii) : There are no amounts that are required to be transferred to Investor Education and Protection Fund.

Note (iii) : Gratuity The following tables sets out the funded status of the defined benefit scheme and the amount recognised in the Financial statements:

Rupees in Lakhs

Components of Employer's expenseParticulars 2013-14 2012-13

Current service cost 88.60 81.60Interest cost 141.88 111.21Expected return on plan assets (129.85) (111.48)Actuarial losses/ (gains) 269.15 42.04Total expense recognised in the Statement of Profit and Loss 369.78 123.37

Net Asset/ Liability recognised in the Balance SheetPresent value of Defined benefit obligation (2007.71) (1603.07)Fair value of plan assets at the end of the year 1835.50 1558.56Asset/(Liability) recognized in the balance sheet (172.21) (44.51)

35


Notes forming part of the financial statementsChanges in the Defined Benefit Obligation (DBO) during the year: Rupees in Lakhs

Present value of DBO at the beginning of year 1603.07 1429.48

Interest cost 141.88 111.21

Current Service cost 88.60 81.60

Benefits paid (111.77) (78.68)

Actuarial (Gains) / Losses 285.93 59.46

Present value of DBO at the end of year 2007.71 1603.07

Changes in the fair value of assets during the year: Particulars 2013 - 2014 2012 - 2013

Plan assets at beginning of year 1558.56 1357.37

Expected return on plan assets 129.85 111.48

Actual company contributions 242.07 150.97

Benefits paid (111.77) (78.68)

Actuarial gain / (loss) 16.79 17.42

Plan assets as at end of year 1835.50 1558.56

Composition of the Plan assets is as follows:Pattern 2013 - 2014 2012 - 2013

Debt 78.12% 79.73%

Equity 4.64% 5.22%

Fixed Deposits and Other Assets 17.24% 15.04%

Actuarial Assumptions:Particulars 2013 - 2014 2012 - 2013

Discount Rate 9.17% 8.05%

Expected rate of return on assets 8.00% 8.00%

Expected rate of salary Increase:

- Executives 5.00% 5.00%

- Non-Executives 6.00% 5.00%

Attrition Rate 3.00% 3.00%

Mortality Indian Assured Lives Mortality (2006-08)

Ultimate

Indian Assured Lives Mortality (2006-08)

Ultimate

36


Rupees in LakhsEstimate of amount of contribution in the immediate next year

50.37 81.59

Experience Adjustments 2013 - 2014 2012 - 2013 2011-2012

Present value of DBO 2,007.71 1,603.07 1,429.48

Fair value of plan assets 1,835.50 1,558.56 1,357.38

Funded status [Surplus / (Deficit)] (172.21) (44.51) (72.11)

Experience gain / (loss) adjustments on plan liabilities 285.93 59.46 71.11

Experience gain / (loss) adjustments on plan assets 16.79 17.42 (17.19)

The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc.. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on “Employee Benefits” are furnished to the extent of available information.The estimates of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Note 10 Short-term provisions Rupees in Lakhs



(i) Provision for tax (net of advance tax Rs. 83,912.23 lakhs) - 2,987.38

(ii) Provision for Proposed Equity Dividend 357.47 357.47 (iii) Provision for tax on Proposed Dividends 60.75 60.75

Total 418.22 3,405.60

Note (iv) Compensated absencesActuarial Assumptions:

Particulars 2013 - 2014 2012 - 2013 Discount Rate 9.17% 8.25%

Expected rate of salary Increase: 5.00% 2.00%

Attrition Rate 3.00% 2.00%

Mortality Indian Assured Lives Mortality (2006-08)

Ultimate

Indian Assured Lives Mortality (2006-08)

Ultimate

37

indiAn poTAsH limiTedNo

tes f

orm

ing

part

of th

e fina

ncial

stat

emen

tsNo

te 11

Fixe

d as

sets

Rupe

es in

Lak

hs

A.Ta

ngib

le as

sets

Gros

s blo

ckAc

cum

ulat

ed d

epre

ciatio

n an

d Am

ortis

atio

nNe

t blo

ckBa

lance

as

at

1 Apr

il,20

13

Addi

tions

Disp

osals

Recla

ssifi

ed

as h

eld fo

r sa

le (R

efer

Not

e No

.11.2)

Balan

ce

as at

31

Mar

ch,

2014

Balan

ce

as at

1 A

pril,

2013

Depr

eciat

ion

/ am

ortis

atio

n

Elim

inat

ed

on

disp

osal

of as

sets

Recla

ssifi

ed

as h

eld fo

r sa

le (R

efer

Not

e No

.11.2)

Balan

ce

as at

31

Ma

rch,

20

14

Balan

ce

as at

31

Mar

ch,

2014

Balan

ce

as at

31

Mar

ch,

2013

(a)

Land

Free

hold

10,2

80.7

7 -

- -

10,

280.

77

- -

- -

- 1

0,28

0.77

10,

280.

77

Le

aseh

old

(R

efer

Not

e 1

below

) 7

,915

.55

- -

- 7

,915

.55

532

.92

173

.36

- -

706

.28

7,2

09.2

7 7

,382

.63

(b)

Build

ings

Fa

ctory

Buil

ding

2,6

05.7

0 1

7.57

-

- 2

,623

.27

839

.25

177

.17

- -

1,0

16.4

2 1

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1,7

66.4

5

Othe

r tha

n Fa

ctory

Bu

ilding

(R

ef. N

ote

No.1

, 2 &

3)

7,8

00.9

2 8

44.7

3 7

9.66

9

7.23

8

,468

.76

2,0

73.2

6 2

96.4

3 5

1.88

1

5.26

2,

302.

55

6,1

66.2

1 5

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(c)

Plan

t and

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ipmen

t 6

,955

.36

4,1

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7 5

.38

- 11

,076

.05

2,5

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3 1

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0 -

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9 7

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4,4

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) Fu

rnitu

re a

nd F

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es

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00

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210

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101

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11

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55

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80

100

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(e)

Vehic

les

159

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54.

51

5.4

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208

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91.

25

24.

37

4.11

-

111.

51

96.

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68.

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(f)

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e Eq

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1,1

66.9

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1,2

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38.7

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752

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476

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528

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(g)

Audio

Visu

al Va

n &

Equip

men

t 1

37.6

6 2

1.49

6

.05

- 1

53.1

0 9

8.13

1

2.52

5

.71

- 1

04.9

4 4

8.16

3

9.53

Tota

l 37

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5 5,

164.1

2 12

4.67

97.23

42,1

65.67

6,88

2.87

2,07

6.18

90.06

15

.26 8

,853.7

3 33

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4 30

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8 B.

Inta

ngib

le As

set

Leas

ehold

Righ

ts 6

48.4

9 -

- -

648

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23.

22

6.5

6 -

- 2

9.78

6

18.7

1 6

25.2

7 Gr

and

Tota

l (A+

B)

37,87

1.94

5,16

4.12

124.6

7 97

.23 4

2,814

.16 6

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9 2,

082.7

4 90

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15.26

8,88

3.51

33,93

0.65

30,96

5.85

C.Ca

pita

l Wor

k in

Prog

ress

2

,044

.79

3,2

16.6

6 To

tal

35,97

5.44

34,18

2.51

Not

e:1.

In

clud

es a

mou

nt a

dded

on

reva

luat

ion

` 89

5.60

Lakh

s (P

revi

ous

Year

` 9

48.7

0 La

khs)

, as

on 3

1st M

arch

199

5.2.

B

uild

ings

incl

ude

undi

vide

d sh

are

of L

and,

the

valu

e of

whi

ch is

not

sep

arat

ely

asce

rtain

able

.3.

P

ursu

ant t

o an

Abs

olut

e S

ale

Dee

d da

ted

30th A

pril

2014

, the

Apa

rtmen

t at B

anga

lore

was

sol

d fo

r a c

onsi

dera

tion

of `

303

.00

Lacs

, and

hen

ce th

is a

sset

has

be

en re

clas

sifie

d as

‘Ass

et h

eld

for s

ale

(Ref

er N

ote

No.

20 -

Oth

er C

urre

nt A

sset

s)

Rs

in L

akhs

Par

ticul

ars

For t

he Y

ear e

nded

31s

t Mar

ch 2

014

For t

he Y

ear e

nded

31s

t Mar

ch 2

013

Dep

reci

atio

n E

xpen

ses

as a

bove

2,08

2.74

1,

560.

84

Less

: Tra

nsfe

r fro

m R

eval

uatio

n R

eser

ve17

.49

18.8

5 D

epre

ciat

ion

as p

er S

tate

men

t of P

rofit

and

Los

s2,

065.

25

1,54

1.99

38

indiAn poTAsH limiTedN

otes

form

ing

part

of t

he fi

nanc

ial s

tate

men

tsN

ote

11 A

Fix

ed a

sset

s - P

revi

ous

Year

Rs.

in L

akhs

Gros

s blo

ckAc

cum

ulat

ed D

epre

ciatio

n an

d Am

ortis

atio

nNe

t blo

ckA.

Tang

ible

asse

tsBa

lance

as

at

1 Apr

il, 20

12

Addi

tions

Disp

osals

Balan

ce

as at

31

Mar

ch,

2013

Balan

ce

as at

1 A

pril,

2012

Depr

eciat

ion

/ am

ortis

atio

nEl

imin

ated

on

disp

osal

of as

sets

Balan

ce

as at

31

Marc

h,

2013

Balan

ce

as at

31

Marc

h,

2013

Balan

ce

as at

31

Marc

h,

2012

(a)

Land

Free

hold

10,

223.

88

56.

89

- 10

,280

.77

- -

- -

10,

280.

77

10,2

23.8

8

Leas

ehold

$

8,0

26.8

4 -

111.

29

7,9

15.5

5 3

87.0

8 1

74.1

2 2

8.28

5

32.9

2 7

,382

.63

7,6

39.7

6 (b

) Bu

ilding

s

Facto

ry B

uildin

g 2

,517

.84

87.

86

- 2

,605

.70

651

.53

187

.72

- 8

39.2

5 1

,766

.45

1,8

66.3

1

Othe

r tha

n Fa

ctory

Buil

ding

$ 7

,023

.25

777

.67

- 7

,800

.92

1,8

05.3

6 2

67.9

0 -

2,0

73.2

6 5

,727

.66

5,2

17.8

9 (c

) Pl

ant a

nd E

quipm

ent

5,2

92.3

8 1

,662

.98

- 6

,955

.36

1,7

54.9

9 7

53.2

4 -

2,5

08.2

3 4

,447

.13

3,5

37.3

9 (d

) Fu

rnitu

re a

nd F

ixtur

es

162

.21

41.

85

2.8

5 2

01.2

1 8

4.19

1

9.41

2

.53

101

.07

100

.14

78.

02

(e)

Vehic

les

159

.87

- 0

.51

159

.36

67.

85

23.

83

0.4

3 9

1.25

6

8.11

9

2.02

(f)

Of

fice

Equip

men

t 9

85.4

5 1

90.1

0 8

.63

1,1

66.9

2 5

30.3

5 11

5.01

6

.60

638

.76

528

.16

455

.10

(g)

Audio

Visu

al Va

n &

Equip

men

t 1

31.5

5 6

.97

0.8

6 1

37.6

6 8

5.93

1

3.06

0

.86

98.

13

39.

53

45.

62

To

tal

34,52

3.27

2,82

4.32

124.1

4 37

,223.4

5 5,3

67.28

1,

554.2

9 38

.70

6,88

2.87

30,34

0.58

29,15

5.99

(h)

Inta

ngibl

e Ass

et

Le

aseh

old R

ights

648

.49

- -

648

.49

16.

67

6.5

5 -

23.

22

625

.27

631

.82

Gr

and

Tota

l 35

,171.7

6 2,

824.3

2 12

4.14

37,87

1.94

5,383

.95

1,56

0.84

38.70

6,

906.0

9 30

,965.8

5 29

,787.8

1

Capit

al W

ork i

n Pr

ogre

ss

3,2

16.6

6 7

83.0

4

Tota

l 34

,182.5

1 30

,570.8

5 $

Inclu

des

amou

nt a

dded

on

reva

luat

ion

` 94

8.70

Lakh

s (P

revio

us Y

ear `

948

.70

Lakh

s), a

s on

31st

Mar

ch 1

995

Build

ings

inclu

de u

ndivi

ded

shar

e of

Lan

d, th

e va

lue

of w

hich

is n

ot s

epar

atel

y as

certa

inab

le.

Rs.

in L

akhs

Part

icul

ars

For t

he y

ear e

nded

31

Mar

ch 2

013

For t

he y

ear e

nded

31

Mar

ch 2

012

Dep

reci

atio

n ex

pens

e as

abo

ve 1

,560

.84

2,1

28.4

6 Le

ss: T

rans

fer f

rom

Rev

alua

tion

Res

erve

18.

85

19.

90

Dep

reci

atio

n as

per

Sta

tem

ent o

f Pro

fit a

nd L

oss

1,5

41.9

9 2

,108

.56

39



Note 12 Deferred tax assets (net)

Rupees in Lakhs

ParticularsAs at

31 March, 2014As at

31 March, 2013

Deferred tax (liability) / asset

Tax effect of items constituting deferred tax liability

On difference between book balance and tax balance of fixed assets

583.41 283.28

Tax effect of items constituting deferred tax assets

Provision for compensated absences, gratuity and other employee benefits

114.85 80.16

Provision for doubtful debts / advances 2,780.03 2,638.20

Disallowances under Section 40(a)(i), 43B of the Income Tax Act, 1961

1,115.29 1,115.29

Others 574.84 902.20

Net deferred tax (liability) / asset 4,001.60 4,452.57

40


Notes forming part of the financial statementsNote 13 Non-current investments Rupees in lakhs

ParticularsAs at 31 March, 2014 As at 31 March, 2013

Quoted Unquoted Total Quoted Unquoted TotalInvestments (At cost):

A. TradeInvestment in equity instruments of subsidiaries(1) IPL Gujarat Port Limited - 100.00 100.00 - 100.00 100.00 1,000,000 (As at 31 March, 2013: 1,000,000) shares of ` 10 each fully

paid up(2) Goldline Milkfood and Allied Industries Limited - 67.08 67.08 - 67.08 67.08 69,426 (As at 31 March, 2013: 69,426) shares of ` 100 each fully

paid up(3) IPL Sugars and Allied Industries Limited - 100.00 100.00 - 100.00 100.00 1,000,000 (As at 31 March, 2013: 1,000,000) shares of ` 10 each fully

paid upTotal - Trade (A) - 267.08 267.08 - 267.08 267.08

B. Other investments(a) Investment in equity instruments of other entities

(1) IFFCO - Tokio General Insurance Co. Limited - 671.15 671.15 - 671.15 671.15 3,662,772 (As at 31 March, 2013: 3,662,772) shares of ` 10 each fully

paid up(2) Mittal Chambers Owners Premises Co-Soceity Limited - 0.00 0.00 - 0.00 0.00 5 (As at 31 March, 2013: 5) shares of ` 50 each fully paid up(3) Suhavan and Supath Members Association - 0.01 0.01 - 0.01 0.01 10 (As at 31 March, 2013: 10) shares of ` 100 each fully paid up(4) New India Co-Operative Bank Limited - 0.02 0.02 - 0.02 0.02 150 (As at 31 March, 2013: 150) shares of ` 10 each fully paid up(5) Indian Commodity Exchange Limited - 1,000.00 1,000.00 - 1,000.00 1,000.00 20,000,000 (As at 31 March, 2013: 20,000,000) shares of ` 5 each fully

paid up(6) United Stock Exchange of India Limited - 150.00 150.00 - 150.00 150.00 15,000,000 (As at 31 March, 2013: 15,000,000) shares of ` 1 each fully

paid up(b) Investment in government securities

Government securities(1) National Savings Certificate - VIII Issue (nominal value of ` 10,000

each) - 1.00 1.00 - 1.90 1.90

(2) National Savings Certificate - VIII Issue (nominal value of ` 5000 each) - 1.50 1.50 - 1.55 1.55

(3) National Savings Certificate - VIII Issue (nominal value of ` 1000 each) - - - - 0.05 0.05

Total - Other investments (B) - 1,823.68 1,823.68 - 1,824.68 1,824.68

Total - Aggregate amount of Non-Current Investments (A+B) 2,090.76 2,090.76 2,091.76 2,091.76

41



Note 14 Long - term loans and advances(Unsecured and considered good unless otherwise stated)

Rupees in Lakhs

ParticularsAs at

31 March, 2014As at

31 March, 2013

(a) Capital advances 300.00 1,882.92

(b) Security deposits 573.68 607.80

(c) Loans and advances to a wholly owned subsidiary 3,204.45 2,476.78

(d) Loans and advances to employees

Secured, considered good 13.24 13.48

Unsecured, considered good 82.40 117.80

95.64 131.28

(e) Balances with government authorities (includes amounts paid under protest)

(i) Provident fund Commissioner 14.23 14.23

(ii) District High Courts 4.37 4.37

(iii) Labour Courts 5.44 5.44

(iv) Sales tax authorities 20.52 20.52

(v) Land Acquisition Officer 2.97 2.97

(vi) Excise authorities 2.87 2.87

(vii) Commissioner of sugars 9.54 9.54

59.94 59.94

(f) Advance tax (net of provision Rs. 91,399.61 lakhs) 1,431.47 -

Total 5,665.18 5,158.72

42



Note 15 Current investments

Rupees in Lakhs

ParticularsAs at 31 March, 2014 As at 31 March, 2013

Quoted Unquoted Total Quoted Unquoted TotalA. Other current investments (At lower of cost and

market value, unless otherwise stated)(a) Investment in government securities

(i) National Savings Certificate - VIII Issue (nominal value of ` 1000 each) - 0.15 0.15 - 0.10 0.10

(ii) National Savings Certificate - VIII Issue (nominal value of ` 500 each) - 0.01 0.01 - 0.01 0.01

- 0.16 0.16 - 0.11 0.11 (b) Investment in Government Bonds:

(1) Special Fertiliser Bonds 7.00% (Refer Note (i) below) - 32,453.35 32,453.35 - 34,414.61 34,414.61

37,240,000 (As at 31 March, 2013: 37,240,000) bonds of ` 100 each

Net-off provision for other than temporary diminution ` 4,786.65 Lakhs

(As at 31 March, 2013: ` 2825.39 Lakhs)(2) Special Fertiliser Bonds 6.65% - 0.05 0.05 - 0.05 0.05 50 (As at 31 March, 2013: 50) bonds of ` 100 each Net-off provision for other than temporary

diminution 0.01 Lakhs (As at 31 March, 2013: Nil)Total - 32,453.56 32,453.56 - 34,414.77 34,414.77

Aggregate amount of Current Investments - 32,453.56 32,453.56 - 34,414.77 34,414.77

(i) Lodged with a bank for obtaining short term loans - Refer Note No. (ii) in Note 7

Note 16 Inventories

(At lower of cost and net realisable value) Rupees in Lakhs



(a) Raw materials 3,604.97 2,800.39

(b) Work-in-progress (Refer Note below) 544.71 369.86

(c) Finished goods (other than those acquired for trading) 27,704.58 18,646.05

(d) Stock-in-trade (acquired for trading) 85,344.29 85,884.55

(e) Stores and spares 1,212.14 1,270.44

(f) Packing Materials 1,009.96 610.68

Total 119,420.65 109,581.97

43


Notes forming part of the financial statementsNote: Details of inventory of work-in-progress


SUGAR 480.69 339.93

MOLASSES 64.02 29.93

Total 544.71 369.86 Note 17 Trade receivables


Trade receivables outstanding for a period exceeding six months from the date they were due for payment

Unsecured, considered good 129,784.61 106,525.72Doubtful 7,750.41 7,333.15

137,535.02 113,858.87Less: Provision for doubtful trade receivables 7,750.41 7,333.15

129,784.61 106,525.72Other Trade receivables

Unsecured, considered good 313,602.01 490,393.03313,602.01 490,393.03

Total 443,386.62 596,918.75Note 18 Cash and cash equivalents

Rupees in Lakhs

Particulars As at 31 March, 2014 As at 31 March, 2013(a) Cash on hand 53.65 26.64 (b) Remittances in transit - 301.31 (c) Balances with banks

(i) In current accounts 25,050.14 18,381.12 (ii) In deposit accounts (Refer Note (i) and (ii) below) 40,162.35 95,093.37

(iii) In unpaid dividend account 20.21 14.89 Total 65,286.35 113,817.33

i) Balances with banks includes deposits with remaining maturity of more than 12 months from the Balance Sheet date.

162.35 93.63

ii) Of the above, the balances that meet the definition of Cash and cash equivalents as per AS 3 Cash Flow Statements

65,103.79 113,708.81

44



Note 19 Short-term loans and advances(Unsecured and considered good unless otherwise stated)

Rupees in Lakhs


(a) Loans and advances to employees 38.23 21.05

(b) Prepaid expenses 325.66 234.79

(c) Balances with government authorities

CENVAT Credit Receivable 314.09 331.11

Customs Duty Receivable 706.85 -

VAT Credit Receivable 72.16 9.87

Purchase Tax and Others 26.48 22.27

1,119.58 363.25

(d) Trade Advances

Unsecured, considered good 9,946.95 3,267.85

Doubtful 428.57 428.57

10,375.52 3,696.42

Less: Provision for doubtful advances 428.57 428.57

9,946.95 3,267.85

Total 11,430.42 3,886.94

Note 20 Other current assets

Rupees in Lakhs


(a) Accruals

(i) Interest accrued on deposits 80.96 103.36

(ii) Interest accrued on investments 807.04 809.46

(iii) Due from Ministry of Chemicals and Fertilizers, Government of India - For Urea Handling

7,935.05 7,976.06

(b) Asset held for sale (Refer Note No.3 in Note No. 11) 81.97 -

Total 8,905.02 8,888.88

45



Note 21 Revenue from operations

Rupees in Lakhs

Particulars For the year ended 31 March, 2014

For the year ended 31 March, 2013

(a) Sale of products(Refer Note (i) below) 1,143,015.68 1,433,108.99

(b) Government Subsidy(Refer Note (ii) below)

321,826.75 521,834.61

(c) Sale of services(Refer Note (iii) below)

440.48 617.22

(d) Other operating revenues(Refer Note (iv) below)

25,228.77 1,883.19

1,490,511.68 1,957,444.01

Less:

Excise duty 1,150.80 1,200.94

Total 1,489,360.88 1,956,243.07

Rupees in Lakhs

Note Particulars For the year ended 31 March, 2014


(i) Sale of products comprises :Manufactured goodsSugar & By Products 25,466.75 31,717.57

Cattle feed Products 5,277.71 5,150.85

Milk & Milk Products 4,020.39 3,772.76

Total - Sale of manufactured goods 34,764.85 40,641.18 Traded goodsMuriate of Potash 353,567.45 303,151.06

Di Ammonium Phosphate 213,803.50 363,970.92

Urea 471,324.03 599,130.04

Complex Fertilisers 29,491.68 67,234.94

Others 40,064.17 58,980.85

Total - Sale of traded goods 1,108,250.83 1,392,467.81 Total - Sale of products 1,143,015.68 1,433,108.99

46


(ii) Government Subsidy comprises : Traded goodsMuriate of Potash 172,228.14 204,860.23 Di Ammonium Phosphate 128,316.57 238,536.58 Complex Fertilisers 17,500.64 59,723.07 Others 3,781.40 18,714.73

Total - of Subsidy 321,826.75 521,834.61 (iii) Service Income on handling Urea & other

Fertilisers 440.48 617.22

Total - Sale of services 440.48 617.22 (iv) Other operating revenues comprise :

Differential Freight claim on Urea handling 16,030.23 - Liability on Differential Subsidy no longer required, written back 7,939.09 -

Sale of Exim Scrips - 38.99 Amount received from suppliers/agents towards Shortages 535.76 52.39

Despatch / Demurrage (net) 723.69 1,791.81 Total - Other operating revenues 25,228.77 1,883.19


Note 22 Other incomeRupees in Lakhs



Interest income (Refer Note (i) below) 3,700.18 4,415.34 Dividend income for current investments:Mutual funds 3,664.28 4,562.21 Other non-operating income : (Refer Note (ii) below 6,520.16 13,909.52

Total 13,884.62 22,887.07 Rupees in Lakhs



(i) Interest income comprises: Interest from banks on: Deposits 776.30 1,041.30 Interest on overdue trade receivables 317.08 767.24 Interest income from current investments : Special Fertiliser Bonds 2,606.80 2,606.80 Total - Interest income 3,700.18 4,415.34

47


Rupees in Lakhs



(ii) Other non-operating income comprises: Profit on sale of fixed assets (Net) 289.37 28.52 Profit on sale of Investments 44.43 - Adjustments to the carrying amount of

investments - appreciation in the carrying amount of current investments

- 1,681.31

Miscellaneous income 2,229.40 609.32 Liablities / duties no longer required, written

back 3,110.63 10,737.35

Provision for bad trade and other receivables no longer required written back 493.65 -

Receipts towards Insurance Claims 218.31 798.03 Bad trade and other receivables recovered 134.37 54.99

Total - Other non-operating income 6,520.16 13909.52Note 23.a Cost of materials consumed

Rupees in Lakhs



Opening stock 2,800.39 1,668.87 Add: Purchases 41,642.07 37,019.13

44,442.46 38,688.00 Less: Closing stock 3,604.97 2,800.39 Cost of material consumed (Refer Note 23 d below) 40,837.49 35,887.61

Material consumed comprises:Sugarcane 30,845.25 24,375.80 Others 9,992.24 11,511.81

Total 40,837.49 35,887.61 Note 23.b Purchase of traded goods

Rupees in Lakhs



Muriate of Potash 439,695.33 396,337.47 Di-Ammonium Phosphate 268,153.43 462,074.19 Urea 454,020.05 576,357.18 Complex Fertilisers 50,017.84 7,655.11 Others 29,593.03 53,302.22

Total 1,241,479.68 1,495,726.17

48


Notes forming part of the financial statementsNote 23.c Changes in inventories of finished goods, work-in-progress and stock-in-trade

Rupees in Lakhs



Inventories at the end of the year:Finished goods 27,704.58 18,646.05 Work-in-progress 544.71 369.86 Stock-in-trade 85,344.29 85,884.55

113,593.58 104,900.46 Inventories at the beginning of the year:Finished goods 18,646.05 23,418.11 Work-in-progress 369.86 319.77 Stock-in-trade 85,884.55 273,832.29

104,900.46 297,570.17 Net (increase) / decrease (8,693.12) 192,669.71 Note 23.d Details of consumption of imported and indigenous items


Rupees in Lakhs %

ImportedRaw materials - IndigenousRaw materials 40,837.49 100.00

(35,887.61) (100.00) 40,837.49

(35,887.61)Note: Figures / percentages in brackets relate to the previous yearNote 24 Manufacturing & Operational Expenses Rupees in Lakhs



Discharge & clearance expenses 19,288.04 20,844.27 Packing materials Consumed - indigenous 14,955.88 16,344.09 Restitching & Rebagging Charges 83.68 73.64 Freight and Forwarding charges 60,825.52 78,982.63 Sales Tax Surcharge 31.84 1.03 Godown Rent 4,141.47 4,665.16 Storage & Transit Insurance 336.99 653.19 Shortages 35.07 62.47

Total 99,698.49 121,626.48

49



Note 25 Employee benefits expense

Rupees in Lakhs

ParticularsFor the year ended

31 March, 2014For the year ended

31 March, 2013

Salaries and wages 4,877.43 4,174.58

Contributions to provident and other funds(Refer Note below)

696.58 416.60

Staff welfare expenses 152.65 258.35

Total 5,726.66 4,849.53

Note:The Company makes Provident Fund and Superannuation Fund which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 378.79 Lakhs (Year ended 31 March, 2013 Rs. 333.91 Lakhs) for Provident Fund contributions and Rs. 34.84 Lakhs (Year ended 31 March, 2013 Rs. 32.23 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Note 26 Finance costsRupees in Lakhs



(a) Interest expense on:

Borrowings 14,269.90 26,127.44

(b) Other borrowing costs 1,714.43 2,671.05

(c) Net loss on foreign currency transactions and translation (considered as finance cost) 26,163.17 28,463.62

Total 42,147.50 57,262.11

50


Notes forming part of the financial statementsNote 27 Other expenses

Rupees in Lakhs


For the year ended31 March, 2013

Consumption of stores and spare parts(Note (i) below) 384.67 310.54

Power and fuel 1,495.95 1,214.52 Rent including lease rentals(Refer Note 35) 546.52 569.35

Repairs and maintenance - Buildings 163.48 28.89

Repairs and maintenance - Machinery 792.42 1,033.89

Repairs and maintenance - Others 134.48 116.33

Insurance 70.02 52.38 Rates and taxes(Refer note (ii) below) 499.19 (361.41)

Communication 77.60 72.60

Travelling and conveyance 352.66 359.59

Printing and stationery 54.22 53.38

Sales discount 22,587.08 19,298.42

Business promotion 15.66 22.84

Legal and professional 320.55 209.66

Directors sitting Fees and Commission 16.75 15.08 Payments to auditors(Refer Note (iii) below) 62.69 68.60

Bad trade and other receivables written off 2,405.67 346.18

Less: Release from provision (1,531.85) -

873.82 346.18 Adjustments to the carrying amount of investments - reduction in the carrying amount of current investments

1,961.26 -

Provision for doubtful trade and other receivables, loans and advances

2,442.76 5,281.06

Net loss on foreign currency transactions and translation (other than considered as finance cost)

30,791.69 7,623.94

Miscellaneous expenses 553.23 466.28

Total 64,196.70 36,782.12

51



Note 27 Other expenses ( Contd.... )

Note (i)

Details of consumption of imported and indigenous items *

For the year ended 31 March, 2014 %

Rupees in Lakhs

Imported

Spare parts - -

Indigenous

Spare parts 384.67 100.00

(310.54) (100.00)

Note: Figures / percentages in brackets relate to the previous year

Note (ii)

Total Excise duty for the year excluding excise duty relating to difference between the closing stock and opening stock have been disclosed as deduction from turnover. Excise duty of ̀ 417.40 Lakhs (Previous year - ` (414.60) Lakhs) relating to difference between the closing stock and opening stock has been adjusted/included in "Rate and Taxes" respectively above.

Note (iii) Rupees in Lakhs

As auditors - statutory audit 22.00 20.00

For taxation matters 1.50 1.00

For other services 31.84 39.35

Reimbursement of expenses 7.35 8.25

Total 62.69 68.60

28. Estimated amount of Contracts remaining to be executed and not provided for (net of advances)

Rupees in Lakhs

2013-14 2012-13

On Capital account 5,728.06 2,290.50

On Raw material account NIL 418,356.42

52



Rupees in Lakhs

29. Contingent Liabilities 2013-2014 2012-2013 i. Outstanding guarantees and indemnities given by the

Company (excluding performance guarantees)6,341.67 5,494.76

ii. Claims against the Company not acknowledged as debt - Disputed dues relating to supplies/other civil cases

1,404.00 1,344.00

iii. Disputed income tax demands contested in Appeals not provided:

Appeal pending before Assessment Year

Commissioner of Income Tax (Appeals)

2002 - 2003 to 2011 - 2012 11,290.04 2,376.00

iv. Central Excise, Trade Tax and Service Tax matters under appeal 331.05 331.05

v. Certain Industrial Disputes are pending before Tribunal / High Courts. The liability of the Company in respect of these disputes depends upon the final outcome of such cases and the quantum of which is not currently ascertainable.

30. C.I.F. Value of Imports-Traded Goods 1,153,674.67 1,336,305.04

31. Foreign Exchange Receipts

1. a. Recoveries of despatch earnings on imports 984.52 2,885.10

b. Marine Insurance / Rebate etc. netted of against related expenses 43,664.60 26,925.58

2. Earnings in Foreign Exchange

FOB Value of Exports 39,617.13 6,692.46

32. Expenditure incurred in Foreign Currency:

Travel & Others 15.63 32.68

53


Notes forming part of the financial statements33. Related Party TransactionsList of Related Parties (as identified by the management and relied upon by the auditors )

Parties over which the companyexercise control (subsidiary companies)

Investing Party Key Management Personnel(KMP)

Goldline Milkfood and Allied Industries Limited - (GMAIL)

Indian Farmers Fertiliser Co.operative Ltd - (IFFCO) Dr. P.S.Gahlaut

IPL Sugars and Allied Industries LimitedIPL Gujarat Port Limited

Transaction with related parties :Rupees in Lakhs

ParticularsSubsidiary Company Investing Party KMP

2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

Purchase of Goods

- IFFCO ( DAP) 5,070.76 5,720.53

Sale of Goods

- GMAIL 100.52 1,054.37

- IFFCO 128,396.20 110,249.08

Loans given to/ (received back)from Subsidiaries

- IPL Sugars and Allied Industries Limited 727.67 146.26

- IPL Gujarat Port Limited (24.77)

- GMAIL (47.82)

L/C Insurance Charges incurred / Rebate given

- IFFCO 5,232.25 1,068.96

Remuneration to Managing Director 48.93 43.44

Dividends Paid 121.50 121.50

Balance Outstanding as on March 31, 2014

- Balance receivable

- IFFCO 25.18 31,890.52

- IPL Sugars and Allied Industries Limited 3,204.45 2,476.78

- Balance Payable 11.52 5.61

54


Notes forming part of the financial statements34. Segment Information for the year ended March 31, 2014The Company has identified Business Segment as the primary segment for disclosure.The business segments areFertilisers - Trading of fertilisersOthers - Manufacturing of Cattle feed / Poultry feed, Sugar and its related by-products, Milk and Milk Products and trading of Gold and other precious metals.The above segments have been identified based on the organisational structure as well as the differing risk and returns of these segments.Segment assets include all operating assets used by respective segment and consist of operating cash, debtors, inventories and fixed assets net of allowances and provisions. Segment liabilities include all operating liabilities and consist primarily of creditors and accured liabilities. Segment assets and liabilities do not include income tax assets and liabilities.

Information about Primary Business Segments Rupees in Lakhs

A. PRIMARY SEGMENT INFORMATION 2013-14 2012-13Particulars Fertiliser Others Total Fertiliser Others Total

1. REVENUEExternal Sales 1,454,652.34 34,708.54 1,489,360.88 1,914,878.01 41,365.07 1,956,243.08 Other Income 6,013.81 506.35 6,520.16 12,726.61 1,182.91 13,909.52 Total Revenue 1,460,666.15 35,214.89 1,495,881.04 1,927,604.62 42,547.98 1,970,152.602. RESULTSegment Result 56,412.87 (3,802.28) 52,610.59 81,994.27 (821.62) 81,172.65 Unallocated Corporate Expenses (2040.70) (103.68)Interest Expenses (42,147.50) (57,262.11)Interest Received 3,700.18 4,415.34 Dividend Income & Profit on Sale of-investment 3,664.28 4,562.21

Profit before tax 15,786.85 32,784.41 Income tax (Net Profit) (5,050.97) (7,676.07)Net Profit 10,735.88 25,108.34 3. OTHER INFORMATIONSegment Assets 641,771.91 45,978.30 687,750.21 848,897.52 23,537.59 872,435.11 Unallocated Corporate assets 40,865.39 40,959.09 Total Assets 728,615.60 913,394.20 Segment Liabilities 271,021.72 22,067.37 293,089.09 142,954.83 11,383.97 154,338.80 Unallocated Corporate liabilities 285,006.13 618,814.83 Total Liabilities 578,095.22 773,153.63 Capital Expenditure 2,491.65 1,500.60 3,992.25 963.76 1,860.57 2,824.32 Depreciation and Amortization 546.07 1,519.18 2,065.25 499.21 1,042.78 1,541.99 Non-Cash expenses other than depreciation:Provision for dimunition in the value of Bonds 1,961.26 - 1,961.26 (1,681.31) - (1,681.31)Provision for Bad and doubtful debts 2,442.76 - 2,442.76 5,281.05 - 5,281.05

55


Notes forming part of the financial statementsRevenue Rupees in Lakhs

B. SECONDARY SEGMENT INFORMATION 2013-14 2012-13Geographical Segments India Rest of

the worldTotal India Rest of

the worldTotal

Revenue by Geographical area 1,450,774.95 45,106.09 1,495,881.04 1,963,460.13 6,692.46 1,970,152.59 Carrying amount of Segment Assets 726,000.50 2,615.10 728,615.60 912,883.97 510.23 913,394.20 Additions to Tangible and Intangible assets 3,992.25 - 3,992.25 5,257.94 - 5,257.94

Geographical SegmentsThe geographical segments considered for disclosure are India and rest of the world. All trading locations, manufacturing facilities and sales offices are located in India. Geographical revenues are segregated based on location of customer who is invoiced or in relation to which revenue is otherwise recognized.

Note 35 : Leases

The Company has entered into a non-cancellable operating lease arrangement for its office premises at New Delhi, with effect from January 1, 2011. An amount of Rs. 472.26 Lakhs has been recognized in the Statement of Profit and Loss, out of which Rs. 48.96 Lakhs has been recognized as lease rent, computed based on straight line method for the year ended March 31, 2014 as per para 23 of Accounting Standards 19 - Leases. The lease term is for nine years and the lessee has the option of renewing the lease on expiration of the initial term. Lease rent escalation is after a block of three years from the date of inception of lease.The future minimum lease rental payments to be made under non-cancellable leases are as follows:

Rupees in Lakhs

Lease payments due As at March 31, 2014

As at March 31, 2013

Not later than one year 469.20 423.30

Later than one year but not later than Five years 2,035.16 1,964.78

Later than Five years 404.69 944.27

Total 2,909.05 3,332.35

Note 36 Earnings per share Rupees in Lakhs

Particulars Year ended31 March 14

Year ended31 March 13

Net Profit for the Year 10,735.88 25,108.35

The weighted average number of equity shares outstanding during the year (in Nos.) 14,298,600 14,298,600

Face Value of Share (Rs.) 10.00 10.00

Basic and Diluted Earnings per Share (Rs.) 75.08 175.60

56


Notes forming part of the financial statements37 Details on derivative instruments and unhedged foreign currency exposures

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2014

Currency Amount Buy / Sell Cross currency USD 22,437,141.11 Buy Rupees

USD (32,138,766.67) Buy Rupees

Note: Figures in brackets relate to the previous year

(ii). The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

As at 31 March, 2014 As at 31 March, 2013Receivable/(Payable)

Receivable/ (Payable)in Foreign currency

Receivable/(Payable)

Receivable/ (Payable)in Foreign currency

` in Lakhs (indicate amount with currency) ` in Lakhs (indicate amount

with currency) 10,067.61 USD 16,812,969 37,656.57 USD 69,541,173.00

(276,563.49) (USD 461,862,875.99) (491,608.29) (USD 904,898,848.09)

0.00 AED 0.00 (256.03) (AED 1,732,196.74)

(25,815.58) (EURO 31,262,626.18) (5,291.92) (EURO 7,626,345.96)

38 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

39. The Board of Directors has reviewed the realisable value of all current assets of the Company and has confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements for the year ended 31st March 2014 in its meeting held on 17th June 2014.

For and on behalf of the Board of Directors

Vasudha Mishra U.S.AwasthiChairperson Director



57


BALANCE SHEET ABSTRACTBalance Sheet Abstract and Company's General Business Profile as per Schedule VI to the Companies Act 1956.I Registration Details

Registration No 18-961 State Code 18Balance Sheet 31 03 2014

II Capital raised during the year (Amount in Rs Thousands)Public Issue Nil Rights Issue NilBonus Issue Nil Private Placement Nil

III Position of Mobilization and Deployment of Funds (Amount in Rs Thousands)Total Liabilities 72,861,560 Total Assets 72,861,560 Sources of FundsPaid-up Capital 142,986 Reserves & Surplus 14,909,052 Secured Loans 171,392 Unsecured Loans 31,849,925 Application of FundsNet Fixed Assets 3,597,544 Investments 3,454,432 Net Current Assets 40,039,127 Misc. ExpenditureAccumulated Loss

IV Performance of the Company (Amount in Rs Thousands)Turnover 150,324,550 Total Expenditure 148,745,865 Profit before Tax 1,578,685 Profit after Tax 1,073,588 Earnings per Share 75.08Annualized Dividend Rate 25.00%

V Generic Names of Three Principal Products / Service of the Company( as per monetary terms)Item Code No 31042000 Item Code No 31053000Product Description Muriate of Potash Product Description Di-AmmoniumItem Code No 31021000 Phosphate

Product Description Urea (Imported & Indigenous)

Item Code No Product Description Sugar / Molasses Product Description




Date : June 17, 2014

58


STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT 1956

Rupees in Lakhs

1 Name of the Subsidiary Company Goldline Milkfood

and Allied Industries

Limited

IPL Gujarat

Port Limited

IPL Sugars

and Allied Industries

Limited

2 Financial Year of the Subsidiary ended on 31.3.2014 31.3.2014 31.3.2014

3 Holding Company's interest in Equity Capital 100% 100% 100%

4 Net aggregate of Profit less Losses of the Subsidiary Companies as far as it concerns the members of the Holding Company

1. Not dealt with in the Holding Company's Accounts:

a. For the Financial year of the Subsidiary Rs. / lacs

55.77 4.77 NIL

b. For the previous Financial years since it became the Holding Company’s Subsidiary - Rs. / lacs

24.51 2.59 NIL

2. Dealt with in the Holding Company's Accounts:

a. For the year ended 31st March 2013 - Rs. / lacs

Nil Nil Nil

b. For the previous Financial years since it became the Holding Company’s Subsidiary - Rs. / lacs

Nil Nil Nil

5 Changes in the interest of Holding Company between the end of Financial Year of the Subsidiary and the end of the Holding Company's Financial year.

Nil Nil Nil




Date : June 17, 2014

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