1.2.24 Provisions
Provisions (other than employee benefits) are recognised when the Company has a present legal
or constructive obligation as a result of past events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated. Provisions are not
recognised for future operating losses.
1.2.25 Claims
Pending settlement, claims made on underwriters /railways /others as assessed by the company
are recognized on the basis of certainty of ultimate collection.
1.2.26 Adjustment pertaining to Prior Period
Income/Expenditure pertaining to prior period upto ' 10.00 crores in each case subject to
cumulative limit of 0.50% of sales turnover of previous year are not considered material and are
included under the income/expenditure of the current year.
1.2.27 Non - Current Assets Held for Sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use. Non-current
assets (and disposal groups) classified as held for sale are measured at the lower of their carrying
amount and fair value less costs to sell. Also, such assets are classified as held for sale only if the
management expects to complete the sale within one year from the date of classification.
1.2.28 Prepaid Expenditure
Prepaid expenditure upto Rupee one lakh in each case not being considered material is included
under the expenditure of the current year.
1.2.29 Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and
interim dividends are recorded as a liability on the date of declaration by the company's board of
directors.
(i) Pending sale of urea and P&K fertilizer totalling 7.261 lakh MT through POS device to beneficiaries as on 31.03.2025, subsidy
of ' 2124.72 crore which has accrued on sale to dealers but shall become due for payment under DBT upon sale through POS
device has been recognized in the current period (CPLY quantities 11.826 lakh MT and subsidy ' 3022.74 crore).
(ii) The Department of Fertilizers[DOF] during the previous year directed the Company to ensure availability of P & K Fertilizers
during the Kharif 2023 and Rabi 2023-24 season, Further, in view of price volatility DOF vide its letter dated 21.09.2023 as
modified by the letter dated 29.05.2024 assured the company to protect its adversity of subsidy(losses), on no profit no loss
basis including stock imported by it during FY2023-24 and held by it(including POS Stock) as on 30.09.2023, beyond the
applicable nutrient based subsidy rates, if any. The Company was carrying stock of P&K Fertilizers as at 31st March 2024 and
upon sale of these stocks during the current year, recognized adversity of subsidy of ' 134.14 Crores (CPLY ' 486.53 Crores).
The management of the Company is of the view that the variance at the time of processing and Payment by DOF, if any, shall
not have a material impact on the profit/loss of the company.
(iii) Department of Fertilizers (DoF) vide its letter no. 23011/127/2024-P&K dated 01.10.2024 has stated that the
advantage/disadvantage on upward/downward trend in CFR prices of Imported P&K fertilizers including custom duty would
be passed on to the importers beyond the NBS rate effective for the shipments which arrive during 01.09.2024 to 31.03.2025.
The CFR price of P&K Fertilizers beyond the benchmark rate only will be considered. The benchmark rate considered for NBS
subsidy of DAP for Rabi 2024-25 is 559.71 USD/MT and exchange rate is ' 83.23/USD.
The company has imported DAP of 4.65 LMT during 01.09.2024 to 31.03.2025 out of which 4.45 LMT has been sold.
Accordingly, disadvantage of ' 323.92 crore has been considered as revenue in books of accounts. The disadvantage of
' 18.17 crore has been considered in inventory valuation on closing stock of 0.21 LMT as on 31.03.2025.
(iv) DoF vide letter No. 23011/124/2024/P&K dated 23.09.2024 decided a special package of ' 3500/- PMT of DAP to meet ‘other
costs’, over and above the subsidy under Nutrient Based Subsidy scheme. The special package was initially applicable upto
31.12.2024 and subsequently extended till 30.9.2025 through DoF letters dated 13.1.2025 and 3.4.2025. As company has
incurred other costs more than ' 3500/- PMT, an amount of '174.54 crore has been recognized towards special package as
subsidy, for sale of 4.987 LMT of DAP during current year, out of cargoes arrived during this year. The management of the
company is of the view that the variance at the time of processing and payment by DoF, if any, shall not have material impact
on the profit / loss of the company.
Foot Note:
a The Company has funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets
is mainly based on the information given by the insurance companies through whom the investment has been
made by the fund. Gratuity liability of ' 79.35 crore (CPLY ' 68.51 crore) is unfunded as on 31st March, 2025.
Other defined benefit obligations are unfunded.
52.1.4 Other Employee Benefit Schemes:
Provision of ' 0.91 crore (CPLY ' (2.36) crore) towards Employees' Family Economic Rehabilitation Scheme
and Social Security Benefits Scheme has been charged on the basis of actuarial valuation and credited to the
Statement of Profit and Loss account. A net liability of ' 14.50 crore (CPLY '13.59 crore) has been recognized in
the Balance Sheet as at 31st March 2025 on account of these schemes.
52.1.5 Provident Fund:
12% of Basic Pay plus Dearness Allowance contributed to the Provident Fund Trust of the Company.
The Company does not anticipate any further obligation in the near foreseeable future having regard to the
amount of the fund and return on investment as confirmed by the actuary.
52.1.6The major categories of plans assets are as follows:
52.1.7
The Employee benefit of Provident Fund is administered through a separate NFL Employees Provident Fund
Trust. Out of the investment made by PF trust in the past, one issuer of security has defaulted in payments. The
value of Investment is ' 19.29 crore including interest. During the FY 2024-25, an amount of ' 0.98 crore has
been received by Trust. Hence, considering the Employers obligation to make good the loss in value of investment
under Provident Fund Regulations, Company has provided for ' 18.31 crore in the books of accounts.
Note 53 : Ind AS-108: Operating Segments
Ind AS-108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about product and services, geographical areas and major customers.
Company's primary business segments are
i) Manufactured Fertilizers (Urea, Bentonite Sulphur,Bio fertilizers)
ii) Manufactured Chemicals (Industrial Products, Agro Chemicals, etc)
iii) Traded Imported Fertilizers (Under NBS)
iv) Others (Domestic Traded Product, Agro Inputs, Sale Services, etc.).
and are reportable segments under Ind AS 108. Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision maker (CODM).
F) Others:
Fertilizer Education Society
G) Transactions with Related parties:
(i) During the year, there were transactions of ' 765.60 crore (CPLY ' 706.23 crore) with Ramagundam
Fertilizers & Chemicals Limited towards purchase of goods of ' 666.01 crore (CPLY ' 616.49 crore),
secondment salary of ' 8.65 crore (CPLY ' 12.13 crore), Share of Marketing Expense of ' 30.73 crore
(CPLY ' 24.73 crore), Transportation Expense of ' 33.77 crore (CPLY ' 29.26 crore), Services Charges of
' 26.43 crore (CPLY ' 23.41 crore) and Others of ' 0.01 crore (CPLY ' 0.21 crore). The amount recoverable
from Ramagundam Fertilizers & Chemicals Limited as on 31.03.2025 is ' 92.54 crore (CPLY
' 170.87 crore) and amount payable to Ramagundam Fertilizers & Chemicals Limited as on 31.03.2025 is '
263.44 crore (CPLY ' 231.32 crore).
During the year transactions with Fertilizer Education Society is ' 5.25 crore (CPLY ' 4.53 crore).
During the year, transactions with NFL PF Trust were of ' 38.38 crore (CPLY ' 37.14 crore) and transaction
with NFL Pension Trust were of ' 11.12 crore (CPLY ' 11.03 crore).
(ii) Remuneration to Key Management Personnel at (C) above is ' 2.40 crore (CPLY ' 2.64 crore). In addition to
the above, they are eligible for non monetary perquisites as per Government of India guidelines.
Note: 55 Ind AS-36: Impairment of assets
In accordance with Ind AS-36, the carrying amount of Property, Plant & Equipment have been reviewed at year-end
for indication of impairment loss, if any, by considering assets of entire one plant as Cash Generating Unit. As there is
no indication of impairment, no loss has been recognized during the year.
Note 56
As per requirements of the listing agreements with the stock exchanges, the requisite details of loans and advances in
the nature of loans given by the Company are as under:
(i) There are no loans and advances in the nature of loans to any subsidiary.
(ii) No loans have been given (other than loans to employees), wherein there is no repayment schedule or
repayment is beyond seven years; and
(iii) There are no loans and advances in the nature of loans to firms/companies in which Directors are interested.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The
mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in
level 3.
There are no transfers between levels 1 and 2 during the year.
The company's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of foreign currency option contracts is determined using Black Scholes valuation model.
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
All of the resulting fair value estimates are included in level 3.
The carrying amounts of trade receivables, trade payables, borrowing, cash and cash equivalents and other current
financial liabilities are considered to be the same as their fair values, due to their short-term nature.
The fair values for loans and security deposits were calculated based on cash flows discounted using a current
lending rate. The discount rate considered for FY 2024-25 is 8.65% (CPLY 8.50%). They are classified as level 3 fair
values in the fair value hierarchy since significant inputs required to fair value an instrument are not observable
The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They
are classified as level 3 fair values in the fair value hierarchy since significant inputs required to fair value an
instrument are not observable
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
a) Details of Benami Property Held
The Company does not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property:
b) The Company has not been declared willful defaulter by any bank or financial institution or any other lender.
c) There are no material transactions with respect to struck off companies as mentioned under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.
d) The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC beyond the
statutory period
e) Provision regarding the number of layers prescribed under Section of Section 2 (87) of the Act read with the Companies
(Restriction on number of layers) Rules, 2017 is not applicable.
f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of Income Tax Act, 1961).
g) The Company has not traded or invested in crypto currency or virtual currency during the respective financial
year/period.
h) The Company does not have any scheme of arrangements which have been approved by the Competent Authority in
terms of Section 230 to 237 of the Companies Act, 2013
i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (intermediaries) with the understanding that the intermediary shall:
a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or
b. Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
j) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding party (Ultimate Beneficiaries) or
b. Provide any guarantee, security or the like on the behalf of the Ultimate Beneficiaries.
Note No. 65 Others
a) During the year, certain wording changes are made in the material accounting policies for improved disclosures. There
is no impact on the financial statements due to these changes.
b) The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.
Amounts and other disclosures for the preceding year are included as an integral part of the current year financial
statements and are to be read in relation to the amounts and other disclosures relating to the current year.
For and on behalf of the Board of Directors
(Ashok Jha) (Hira Nand) (Dr. U. Saravanan)
Company Secretary Director (Finance) Chairman & Managing Director
A-14100 DIN No. 09476034 DIN No. 07274628
As per our report of even date attached
For RSPH & Associates
For Dhawan & Co. Chartered Accountants
Chartered Accountants Firm Regd. No. 003013N
Firm Regd. No. 002864N
(Tarun Kumar Batra)
(Deeksha Kapoor) Partner
Partner Membership No.094318
Membership No. 460453
Place: Noida
Date: 30.05.2025
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