Food Corporationof India: (A Government of India Undertaking)

Serial No.
: [______] Private & Confidential – For Private Circulation Only

Addressed to: _________________________________ Draft Disclosure Document dated: 11.08.2021
FOOD CORPORATIONOF INDIA

(A Government of India Undertaking)
(Constituted under The Food Corporations Act, 1964)
Head Quarters: Khadya Sadan, 16-20, Barakhamba Lane, New Delhi- 110 001
Tel.: (011) 43527312, 43527633
Website: www.fci.gov.in; E-mail: [email protected]; [email protected]
DRAFT DISCLOSURE DOCUMENT ISSUED IN CONFORMITY WITH SECURITIES AND EXCHANGE BOARD
OF INDIA (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008 ISSUED VIDE CIRCULAR NO.
LAD-NRO/GN/2008/13/127878 DATED JUNE 06, 2008, AS AMENDED AND SUCH OTHER CIRCULARS
APPLICABLE FOR ISSUE OF DEBT SECURITIES ISSUED BY SEBI FROM TIME TO TIME AND READ WITH
CIRCULAR TITLED “ELECTRONIC BOOK MECHANISM FOR ISSUANCE OF SECURITIES ON PRIVATE
PLACEMENT BASIS” - SEBI/HO/DDHS/CIR/P/2018/05) DATED JANUARY 5, 2018 ISSUED BY SEBI, AS
AMENDED, SUPPLEMENTED OR REVISED FROM TIME TO TIME AND SEBI CIRCULAR DATED AUGUST 16,
2018 BEARING REFERENCE NUMBER SEBI/HO/DDHS/CIR/P/2018/122, EACH AS AMENDED READ WITH
APPLICABLE BSE EBP GUIDELINES.
PRIVATE PLACEMENT OF GOVERNMENT OF INDIA GUARANTEED REDEEMABLE NON-CONVERTIBLE

UNSECURED TAXABLE BONDS (SERIES X) IN THE NATURE OF DEBENTURES OF RS. 10.00 LACS EACH
(“BONDS”) FOR CASH AT PAR AGGREGATING TO RS. 2,000 CRORE WITH A GREEN SHOE OPTION TO
RETAIN RS. 6,000 CRORE BY FOOD CORPORATION OF INDIA (“FCI” OR THE “ISSUER” OR THE
“CORPORATION”)
TRUSTEES FOR THE BONDHOLDERS REGISTRAR TO THE ISSUE
SBICAP Trustee Company Limited Beetal Financial & Computer Service (Private) Limited
Registered Office Beetal House, 3rd Floor, 99 Madangir
Mistry Bhavan, 4th Floor, Behind LSC,
122 Dinshaw Vachha Road, Churchgate New Delhi-110062
Mumbai - 400 020 Tel: (011) 29961281-83
Tel: (022) 4302 5555 Fax: +91 (011) 29961281
Fax: +91 (22) 2204 0465 E-mail: [email protected]
E-mail: [email protected]
LISTING
The Bonds are proposed to be listed on Wholesale Debt Market (“WDM”) segment of National Stock Exchange of
India Ltd (“NSE”). NSE has granted in-principle approval by its letter dated July 28, 2021.
ADVISORS TO THE ISSUE (in alphabetic order)

A. K. Capital Services Limited Trust Investment Advisors Private Limited
ARRANGERS TO THE ISSUE (in alphabetic order) (to be filled after completion of bidding on EBP)
[●] [●]
[●] [●]
[●] [●]
[●] [●]
Advisors/Arrangers to the issue have been appointed by FCI as per process laid by FCI competent authority and prevailing SEBI
EBP Guidelines. None of them are not construed or retained by FCI as Merchant Bankers to the issue.
ISSUE PROGRAMME
Issue Opening Date Issue Closing Date Pay-in Deemed date of allotment
11 August 2021 (11 AM) 11 August 2021 (12 PM) 13 August 2021 13 August 2021
Draft Disclosure Document Food Corporation of India
TABLE OF CONTENTS
Sl. PARTICULARS
I. DISCLAIMER(S)
II. DEFINITIONS/ ABBREVIATIONS
III. ISSUER INFORMATION
IV. DETAILS OF DIRECTORS OF THE ISSUER
1. CURRENT DIRECTORS OF THE ISSUER
2. CHANGES IN THE BOARD OF DIRECTORS DURING THE LAST THREE YEARS
V. DETAILS OF STATUTORY AUDITORS OF THE ISSUER
1. CURRENT STATUTORY AUDITORS OF THE ISSUER (FY 2020-21)
2. CHANGE IN STATUTORY AUDITORS OF THE ISSUER SINCE LAST THREE YEARS
VI. BRIEF SUMMARY OF BUSINESS/ ACTIVITIES OF ISSUER AND ITS LINE OF BUSINESS
1. OVERVIEW
2. VISION & MISSION
3. OBJECTIVE
4. OPERATIONS OF FCI- AN OVERVIEW
A). PROCUREMENT
B). STORAGE AND CONTRACT
C). MOVEMENT
D). FINANCE
E). SALES
F). STOCKS
G). QUALITY CONTROL
H). ENGINEERING
I). IMPORT AND EXPORT
J). SILOS
5. ORGANISATION STRUCTURE
6. KEY OPERATIONAL & FINANCIAL PARAMETERS OF THE ISSUER FOR THE LAST 4 YEARS
7. GROSS DEBT EQUITY RATIO OF THE ISSUER
8. PROJECT COST AND MEANS OF FINANCING, IN CASE OF FUNDING OF NEW PROJECTS
9. SUBSIDIARIES OF THE ISSUER
VII. BRIEF HISTORY OF ISSUER SINCE INCORPORATION, DETAILS OF ACTIVITIES INCLUDING ANY
REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES IN CAPITAL STRUCTURE,
(AUTHORIZED, ISSUED AND SUBSCRIBED) AND BORROWINGS
1. BRIEF HISTORY OF THE ISSUER
2. CAPITAL STRUCTURE (as on 31.07.2021)
3. EQUITY SHARE CAPITAL HISTORY OF THE ISSUER FOR LAST FIVE YEARS & UPTO 31.07.2021
4. CHANGES IN AUTHORISED SHARE CAPITAL OF THE ISSUER FOR LAST FIVE YEARS & UPTO
31.07.2021
5. DETAILS OF ANY ACQUISITION OR AMALGAMATION IN THE LAST 1 YEAR
6. DETAILS OF ANY REORGANIZATION OR RECONSTRUCTION IN THE LAST 1 YEAR
7. SHAREHOLDING PATTERN OF THE ISSUER AS ON 31.07.2021
8. TOP 10 EQUITY SHARE HOLDERS OF THE ISSUER
9. PROMOTER HOLDING IN THE ISSUER (as on 31.07.2021)
10. BORROWINGS OF THE ISSUER (as on 31.07.2021)
11. TOP 10 BONDHOLDERS (as on 31.07.2021)
12. AMOUNT OF CORPORATE GUARANTEES ISSUED BY THE ISSUER IN FAVOUR OF VARIOUS
COUNTER PARTIES INCLUDING ITS SUBSIDIARIES, JOINT VENTURE ENTITIES, GROUP
COMPANIES ETC.
13. COMMERCIAL PAPER ISSUED BY THE ISSUER (as on 31.07.2021)
14. OTHER BORROWINGS (INCLUDING HYBRID DEBT LIKE FOREIGN CURRENCY CONVERTIBLE
BONDS (“FCCBs”), OPTIONALLY CONVERTIBLE BONDS/ DEBENTURES/ PREFERENCE
SHARES) (as on 31.07.2021)
15. SERVICING BEHAVIOUR ON EXISTING DEBT SECURITIES, DEFAULT(S) AND/OR DELAY(S) IN
PAYMENTS OF INTEREST AND PRINCIPAL OF ANY KIND OF TERM LOANS, DEBT SECURITIES
AND OTHER FINANCIAL INDEBTEDNESS INCLUDING CORPORATE GUARANTEE ISSUED BY
THE ISSUER, IN THE PAST 5 YEARS
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16. OUTSTANDING BORROWINGS/ DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER

THAN CASH, WHETHER IN WHOLE OR PART, AT A PREMIUM OR DISCOUNT, OR IN
PURSUANCE OF AN OPTION
17. DETAILS OF ALL DEFAULT/S AND/OR DELAY IN PAYMENTS OF INTEREST AND PRINCIPAL
OF ANY KIND OF TERM LOANS, DEBT SECURITIES AND OTHER FINANCIAL INDEBTEDNESS
INCLUDING CORPORATE GUARANTEE ISSUED BY THE COMPANY, IN THE PAST 5 YEARS
18. AUDITED FINANCIAL INFORMATION OF THE ISSUER
a) STATEMENT OF PROFIT & LOSS
b) STATEMENT OF ASSETS & LIABILITIES
c) CASH FLOW STATEMENT
19. MATERIAL EVENT, DEVELOPMENT OR CHANGE AT THE TIME OF ISSUE
20. THE DETAILED RATING RATIONALE (S) ADOPTED (NOT OLDER THAN ONE YEAR ON THE
DATE OF OPENING OF THE ISSUE)/ CREDIT RATING LETTER ISSUED (NOT OLDER THAN
ONE MONTH ON THE DATE OF OPENING OF THE ISSUE) BY THE RATING AGENCIES SHALL
BE DISCLOSED.
21. IF THE SECURITY IS BACKED BY A GUARANTEE OR LETTER OF COMFORT OR ANY OTHER
DOCUMENT / LETTER WITH SIMILAR INTENT, A COPY OF THE SAME SHALL BE
DISCLOSED. IN CASE SUCH DOCUMENT DOES NOT CONTAIN DETAILED PAYMENT
STRUCTURE (PROCEDURE OF INVOCATION OF GUARANTEE AND RECEIPT OF PAYMENT
BY THE INVESTOR ALONG WITH TIMELINES), THE SAME SHALL BE DISCLOSED IN THE
OFFER DOCUMENT.
22. DISCLOSURES PERTAINING TO WILFUL DEFAULT
VIII. SUMMARY TERM SHEET
IX. TERMS OF OFFER (DETAILS OF DEBT SECURITIES PROPOSED TO BE ISSUED, MODE OF
ISSUANCE, ISSUE SIZE, UTILIZATION OF ISSUE PROCEEDS, STOCK EXCHANGES WHERE
SECURITIES ARE PROPOSED TO BE LISTED, REDEMPTION AMOUNT, PERIOD OF MATURITY, YIELD
ON REDEMPTION, DISCOUNT AT WHICH OFFER IS MADE AND EFFECTIVE YIELD FOR INVESTOR)
1. ISSUE SIZE
2. ELIGIBILITY TO COME OUT WITH THE ISSUE
3. REGISTRATION AND GOVERNMENT APPROVALS
4. AUTHORITY FOR THE ISSUE
5. OBJECTS OF THE ISSUE
6. UTILISATION OF ISSUE PROCEEDS
7. MINIMUM SUBSCRIPTION
8. UNDERWRITING
9. NATURE OF BONDS
10. FACE VALUE, ISSUE PRICE, EFFECTIVE YIELD FOR INVESTOR
11. SECURITY
12. STRUCTURED PAYMENT MECHANISM
13. TERMS OF PAYMENT
14. DEEMED DATE OF ALLOTMENT
15. LETTER(S) OF ALLOTMENT/ BOND CERTIFICATE(S)/ REFUND ORDER(S)/ ISSUE OF
LETTER(S) OF ALLOTMENT
16. ISSUE OF BOND CERTIFICATE(S)
17. DEPOSITORY ARRANGEMENTS
18. PROCEDURE FOR APPLYING FOR DEMAT FACILITY
19. FICTITIOUS APPLICATIONS
20. MARKET LOT
21. TRADING OF BONDS
22. MODE OF TRANSFER OF BONDS
23. DETERMINATION OF COUPON
24. BASIS OF ALLOCATION / ALLOTMENT
25. COMMON FORM OF TRANSFER
26. INTEREST ON APPLICATION MONEY
27. INTEREST ON THE BONDS
28. COMPUTATION OF INTEREST
29. RECORD DATE
30. DEDUCTION OF TAX AT SOURCE
31. PUT & CALL OPTION
32. REDEMPTION
33. DEFAULT INTEREST RATE
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34. EVENTS OF DEFAULT & REMEDIES

35. ADDITIONAL COVENANTS
36. SETTLEMENT/ PAYMENT ON REDEMPTION
37. EFFECT OF HOLIDAYS
38. LIST OF BENEFICIAL OWNERS
39. SUCCESSION
40. WHO CAN APPLY
41. DOCUMENTS TO BE PROVIDED BY SUCCESSFUL BIDDER(S)
42. HOW TO APPLY
43. FORCE MAJEURE
44. APPLICATION PROCESS
45. APPLICATIONS UNDER POWER OF ATTORNEY
46. APPLICATION BY MUTUAL FUNDS
47. ACKNOWLEDGEMENTS
48. RIGHT TO ACCEPT OR REJECT APPLICATIONS
49. PAN/GIR NUMBER
50. SIGNATURES
51. NOMINATION FACILITY
52. RIGHT OF BONDHOLDER(S)
53. MODIFICATION OF RIGHTS
54. FUTURE BORROWINGS
55. BOND/ DEBENTURE REDEMPTION RESERVE (“DRR”)
56. NOTICES
57. JOINT-HOLDERS
58. DISPUTES & GOVERNING LAW
59. INVESTOR RELATIONS AND GRIEVANCE REDRESSAL
60. DATE OF SUBSCRIPTION
61. SETTLEMENT PROCESS
62. POST-ALLOCATION DISCLOSURES BY THE EBP
X. CREDIT RATING FOR THE BONDS
XI. TRUSTEES FOR THE BONDHOLDERS
XII. STOCK EXCHANGE WHERE BONDS ARE PROPOSED TO BE LISTED
XIII. MATERIAL CONTRACTS & AGREEMENTS INVOLVING FINANCIAL OBLIGATIONS OF THE ISSUER
XIV. DECLARATION
XV. ANNEXURES
A. COPY OF RATING LETTER & RATIONALE FROM CARE
B. COPY OF RATING LETTER & RATIONALE FROM CRISIL
C. COPY OF CONSENT LETTER FROM M/S SBICAP TRUSTEE COMPANY LTD
D. COPY OF CONSENT LETTER FROM M/S BEETAL FINANCIAL AND COMPUTER SERVICES (P)
LTD.
E. COPY OF GUARANTEE AGREEMENT DATED 15.07.2021 EXECUTED BY AND BETWEEN
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (DEPARTMENT OF
FOOD & PUBLIC DISTRIBUTION), GOVERNMENT OF INDIA, FOOD CORPORATION OF INDIA
AND SBICAP TRUSTEE COMPANY LTD; LETTER NO F. NO 11019/1/2017 FC-II/III DATED
30.06.2021
F. COPY OF BOARD RESOLUTION DATED 08.07.2021
G. COPY OF IN-PRINCIPLE APPROVAL LETTER FROM STOCK EXCHANGE DATED 28.07.2021
H. LIMITED REVIEW FINANCIAL STATEMENTS FOR HALF YEAR ENDED 31.03.2021
I. AUDITED FINANCIAL STATEMENTS FOR FY 2019-20
J. AUDITED FINANCIAL STATEMENTS FOR FY 2018-19
K. AUDITED FINANCIAL STATEMENTS FOR FY 2017-18
L. AUDITORS’ QUALIFICATIONS FOR FY 2019-20
M. AUDITORS’ QUALIFICATIONS FOR FY 2018-19
N. AUDITORS’ QUALIFICATIONS FOR FY 2017-18
O. APPLICATION FORM
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I. DISCLAIMER
1. DISCLAIMER OF THE ISSUER
This Draft Disclosure Document is neither a Prospectus nor a Statement in Lieu of Prospectus and is prepared in
accordance with Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008
issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008, as amended and such other circulars
applicable for issue of Debt Securities issued by SEBI from time to time. This Draft Disclosure Document does not
constitute an offer to public in general to subscribe for or otherwise acquire the Bonds to be issued by Food
Corporation of India (“FCI”/ the “Corporation”/ the “Issuer“). This Draft Disclosure Documents for the exclusive use of
the addressee and it should not be circulated or distributed to third party(ies). It is not and shall not be deemed to
constitute an offer or an invitation to the public in general to subscribe to the Bonds issued by the Issuer. This bond
issue is made strictly on private placement basis. Apart from this Draft Disclosure Document, no offer document or
prospectus has been prepared in connection with the offering of this bond issue or in relation to the Issuer.
This Draft Disclosure Document is not intended to form the basis of evaluation for the prospective subscribers to
whom it is addressed and who are willing and eligible to subscribe to the Debentures issued by FCI. This Draft
Disclosure Document has been prepared to give general information regarding FCI to parties proposing to invest in
this issue of Debentures and it does not purport to contain all the information that any such party may require. FCI
believes that the information contained in this Draft Disclosure Document is true and correct as of the date hereof. FCI
does not undertake to update this Draft Disclosure Document to reflect subsequent events and thus prospective
subscribers must confirm about the accuracy and relevancy of any information contained herein with FCI. However,
FCI reserves its right for providing the information at its absolute discretion. FCI accepts no responsibility for
statements made in any advertisement or any other material and anyone placing reliance on any other source of
information would be doing so at his own risk and responsibility. Advisors/ Arrangers have assisted or may provide
assistance in pre issue & post issue services and have avoided conflict of interest and have made adequate
disclosure of its interest as per SEBI (Merchant Banker) regulations 1992 (as amended from time to time).
Prospective subscribers must make their own independent evaluation and judgment before making the investment
and are believed to be experienced in investing in debt markets and are able to bear the economic risk of investing in
Debentures. It is the responsibility of the prospective subscriber to have obtained all consents, approvals or
authorizations required by them to make an offer to subscribe for, and purchase the Debentures. It is the responsibility
of the prospective subscriber to verify if they have necessary power and competence to apply for the Debentures
under the relevant laws and regulations in force. Prospective subscribers should conduct their own investigation, due
diligence and analysis before applying for the Debentures. Nothing in this Draft Disclosure Document should be
construed as advice or recommendation by the Issuer or by the Advisors/ Arrangers to the Issue to subscribe to the
Debentures. The prospective subscribers also acknowledge that the Advisors/ Arrangers to the Issue do not owe the
subscribers any duty of care in respect of this private placement offer to subscribe for the Debentures. Prospective
subscribers should also consult their own Advisors/ Arrangers on the implications of application, allotment, sale,
holding, ownership and redemption of these Debentures and matters incidental thereto.
This Draft Disclosure Document is not intended for distribution. It is meant for the consideration of the person to whom
it is addressed and should not be reproduced by the recipient and the contents of this Draft Disclosure Document shall
be kept utmost confidential. The securities mentioned herein are being issued on private placement Basis and this
offer does not constitute a public offer/ invitation.
The Issuer reserves the right to withdraw the private placement of the Debenture issue prior to the issue closing
date(s) in the event of any unforeseen development adversely affecting the economic and regulatory environment or
any other force majeure condition including any change in applicable law. In such an event, the Issuer will refund the
application money, if any, along with interest payable on such application money, if any.
This Draft Disclosure Document shall be accompanied by application form serially numbered and addressed
specifically to the person to whom the offer is made and shall be sent to him, either in writing or in electronic mode,
within thirty days of recording the names of such persons.
2. DISCLAIMER OF THE SECURITIES & EXCHANGE BOARD OF INDIA
This Draft Disclosure Document has not been filed with Securities & Exchange Board of India (“SEBI”). The Bonds
have not been recommended or approved by SEBI nor does SEBI guarantee the accuracy or adequacy of this Draft
Disclosure Document. It is to be distinctly understood that this Draft Disclosure Document should not, in any way, be
deemed or construed that the same has been cleared or vetted by SEBI. SEBI does not take any responsibility either
for the financial soundness of any scheme or the project for which the Issue is proposed to be made, or for the
correctness of the statements made or opinions expressed in this Draft Disclosure Document. The Issue of Bonds
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being made on private placement basis, filing of this Draft Disclosure Document is not required with SEBI. However,
SEBI reserves the right to take up at any point of time, with the Issuer, any irregularities or lapses in this Draft
Disclosure Document.
3. DISCLAIMER OF THE ADVISORS / ARRANGERS TO THE ISSUE
The role of the Advisors / Arrangers in the assignment is confined to marketing and placement of the Bonds on the
basis of this Draft Disclosure Document as prepared by the Issuer and the Advisors / Arrangers are not having any
conflict of interest. The Advisors / Arrangers have neither scrutinized nor vetted nor reviewed nor has it done any due-
diligence for verification of the contents of this Draft Disclosure Document. The Advisors / Arrangers shall use this
Draft Disclosure Document for the purpose of soliciting subscription(s) from Eligible Investors in the Bonds to be
issued by the Issuer on a private placement basis. It is to be distinctly understood that the aforesaid use of this Draft
Disclosure Document by the Advisors / Arrangers should not in any way be deemed or construed to mean that the
Draft Disclosure Document has been prepared, cleared, approved, reviewed or vetted by the Advisors / Arrangers; nor
should the contents to this Draft Disclosure Document in any manner be deemed to have been warranted, certified or
endorsed by the Advisors / Arrangers so as to the correctness or completeness thereof.
Nothing in this Draft Disclosure Document constitutes an offer of securities for sale in the United States of America or
any other jurisdiction where such offer or placement would be in violation of any law, rule or regulation. No action is
being taken to permit an offering of the bonds in the nature of debentures or the distribution of this Draft Disclosure
Document in any jurisdiction where such action is required. The distribution/taking/sending/dispatching/transmitting of
this Draft Disclosure Document and the offering and sale of the Bonds may be restricted by law in certain jurisdictions,
and persons into whose possession this document comes should inform themselves about, and observe, any such
restrictions.
The Issuer has prepared this Draft Disclosure Document and the Issuer is solely responsible and liable for its
contents. The Issuer will comply with all laws, rules and regulations and has obtained all regulatory, governmental,
corporate and other necessary approvals for the issuance of the Bonds. The Issuer confirms that all the information
contained in this Draft Disclosure Document has been provided by the Issuer or is from publicly available information,
and such information has not been independently verified by the Advisors / Arrangers. No representation or warranty,
expressed or implied, is or will be made, and no responsibility or liability is or will be accepted, by the Advisors /
Arrangers or their affiliates for the accuracy, completeness, reliability, correctness or fairness of this Draft Disclosure
Document or any of the information or opinions contained therein, and the Advisors / Arrangers hereby expressly
disclaims any responsibility or liability to the fullest extent for the contents of this Draft Disclosure Document, whether
arising in tort or contract or otherwise, relating to or resulting from this Draft Disclosure Document or any information
or errors contained therein or any omissions there from. Neither Advisors / Arrangers and its affiliates, nor its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or
consequential including lost revenue or lost profits that may arise from or in connection with the use of this document.
By accepting this Draft Disclosure Document, the Eligible Investor accepts terms of this Disclaimer Clause of Advisors
/ Arrangers, which forms an integral part of this Draft Disclosure Document and agrees that the Advisors / Arrangers
will not have any such liability.
The Eligible Investors should carefully read this Draft Disclosure Document. This Draft Disclosure Document is for
general information purposes only, without regard to specific objectives, suitability, financial situations and needs of
any particular person and does not constitute any recommendation and the Eligible Investors are not to construe the
contents of this Draft Disclosure Document as investment, legal, accounting, regulatory or Tax advice, and the Eligible
Investors should consult with its own Advisors / Arrangers as to all legal, accounting, regulatory, Tax, financial and
related matters concerning an investment in the Bonds. This Draft Disclosure Document should not be construed as
an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities mentioned therein, and
neither this document nor anything contained herein shall form the basis of or be relied upon in connection with any
contract or commitment whatsoever.
This Draft Disclosure Document is confidential and is made available to potential investors in the Bonds on the
understanding that it is confidential. Recipients are not entitled to use any of the information contained in this Draft
Disclosure Document for any purpose other than in assisting to decide whether or not to participate in the Bonds. This
document and information contained herein or any part of it does not constitute or purport to constitute investment
advice in publicly accessible media and should not be printed, reproduced, transmitted, sold, distributed or published
by the recipient without the prior written approval from the Advisors / Arrangers and the Issuer. This Draft Disclosure
Document has not been approved and will or may not be reviewed or approved by any statutory or regulatory authority
in India or by any stock exchange in India. This Document may not be all inclusive and may not contain all of the
information that the recipient may consider material.
Each person receiving this Draft Disclosure Document acknowledges that:
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1. Such person has been afforded an opportunity to request and to review and has received all additional information
considered by it to be necessary to verify the accuracy of or to supplement the information herein; and
2. Has not relied on the Advisors / Arrangers and/or its affiliates that may be associated with the Bonds in connection
with its investigation of the accuracy of such information or its investment decision.
Issuer hereby declares that the Issuer has exercised due-diligence to ensure complete compliance of applicable
disclosure norms in this Draft Disclosure Document. The Advisors / Arrangers: (a) is not acting as trustee or fiduciary
for the investors or any other person; and (b) is under no obligation to conduct any “know your customer” or other
procedures in relation to any person. The Advisors / Arrangers is not responsible for (a) the adequacy, accuracy
and/or completeness of any information (whether oral or written) supplied by the Issuer or any other person in or in
connection with this Draft Disclosure Document; or (b) the legality, validity, effectiveness, adequacy or enforceability
of this Draft Disclosure Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with this Draft Disclosure Document; or (c) any determination as to
whether any information provided or to be provided to any investor is non-public information the use of which may be
regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.
The Advisors / Arrangers or any of their directors, employees, affiliates or representatives do not accept any
responsibility and/or liability for any loss or damage arising of whatever nature and extent in connection with the use
of any of the information contained in this document. By accepting this Draft Disclosure Document, investor(s)
agree(s) that the Advisors / Arrangers will not have any such liability.
Please note that:
(a) The Advisors / Arrangers and/or their affiliates may, now and/or in the future, have other investment and
commercial banking, trust and other relationships with the Issuer and with other persons (“Other Persons”);
(b) As a result of those other relationships, the Advisors / Arrangers and/or their affiliates may get information about
Other Persons, the Issuer and/or the Issue or that may be relevant to any of them. Despite this, the Advisors /
Arrangers and/or their affiliates will not be required to disclose such information, or the fact that it is in
possession of such information, to any recipient of this Draft Disclosure Document;
(c) The Advisors / Arrangers and/or their affiliates may, now and in the future, have fiduciary or other relationships
under which it, or they, may exercise voting power over securities of various persons. Those securities may,
from time to time, include securities of the Issuer; and
The Advisors / Arrangers and/or their affiliates may exercise such voting powers, and otherwise perform its functions
in connection with such fiduciary or other relationships, without regard to its relationship to the Issuer and/or the
securities.”
4. DISCLAIMER IN RESPECT OF JURISDICTION
The private placement of Debentures is made in India to Companies, Corporate Bodies, Trusts registered under the
Indian Trusts Act, 1882, Societies registered under the Societies Registration Act, 1860 or any other applicable laws,
provided that such Trust/ Society is authorized under constitution/ rules/ byelaws to hold Debentures in a Company,
Indian Mutual Funds registered with SEBI, Indian Financial Institutions, Insurance Companies, Commercial Banks
including Regional Rural Banks and Cooperative Banks, Provident, Pension, Gratuity, Superannuation Funds as
defined under Indian laws. The Draft Disclosure Document does not, however, constitute an offer to sell or an
invitation to subscribe to securities offered hereby in any other jurisdiction to any person to whom it is unlawful to
make an offer or invitation in such jurisdiction. Any person into whose possession this Draft Disclosure Document
comes is required to inform him about and to observe any such restrictions. Any disputes arising out of this Issue will
be subject to the jurisdiction of the Courts at the state of New Delhi only. All information considered adequate and
relevant about the Issuer has been made available in this Draft Disclosure Document for the use and perusal of the
potential investors and no selective or additional information would be available for a section of investors in any
manner whatsoever.
5. DISCLAIMER BY DEBENTURE TRUSTEE:
Investors should carefully read and note the contents of the Draft Disclosure Document. Each Prospective investor
should make its own independent assessment of the merit of the investment in Bonds and the issuer. Prospective
investors should consult their own financial, legal, tax and other professional advisors as to the risks and investment
considerations arising from an investment in the Bonds and should possess the appropriate resources to analyze such
investment and suitability of such investment to such investor’s particular circumstance. Prospective investors are
required to make their own independent evaluation and judgement before making the investment and are believed to
be experienced in Investing in debt markets and are able to bear the economic risk of investing in such instruments
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6. DISCLAIMER OF THE STOCK EXCHANGE
As required, a copy of this Draft Disclosure Document has been submitted to National Stock Exchange of India Ltd.
(hereinafter referred to as “NSE”/”Stock Exchange”) for hosting the same on its website. It is to be distinctly understood
that such submission of the Draft Disclosure Document with NSE or in-principle approval given by NSE vide its letter
Ref.: NSE/LIST/3927 dated July 28, 2021 or hosting the same on its website in terms of SEBI (Issue and Listing of Debt
Securities) Regulations, 2008 as amended from time to time, should not in any way be deemed or construed that the
Draft Disclosure Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse
the correctness or completeness of any of the contents of this Draft Disclosure Document; nor does it warrant that this
Issuer’s securities will be listed or continue to be listed on the Exchange; nor does it take the responsibility for the
financial or other soundness of this Issuer, its promoters, its management or any scheme or project of the Issuer. Every
person who desires to apply for or otherwise acquire any securities of this Issuer may do so pursuant to independent
inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss
which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by
reason of anything stated or omitted to be stated herein or any other reason whatsoever.
7. DISCLAIMER OF THE CREDIT RATING AGENCIES
The rating for the Securities under Issue is ”CARE AAA(CE)/Stable” by CARE and “CRISIL AAA(CE)/Stable” by
CRISIL. The rating is not a recommendation to buy, sell or hold securities and investors should take their own
decision. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each
rating should be evaluated independently of any other rating. The ratings obtained are subject to revision at any point
of time in the future. The rating agency has the right to suspend, withdraw the rating at any time on the basis of factors
such as new information, unavailability of information or any other circumstances.
This Draft Disclosure Document prepared under SEBI (Issue and Listing of Debt Securities) Regulations, 2008 dated
June 6, 2008, as amended from time to time, for private placement of the Debentures is neither a prospectus nor a
statement in lieu of prospectus and does not constitute an offer to the public generally to subscribe for or otherwise
acquire the debt securities to be issued by the Corporation. This is only an information brochure intended for private
use.
FORWARD LOOKING STATEMENTS
All statements in this Draft Disclosure Document that are not statements of historical fact constitute “forward looking
statements”. Readers can identify forward-looking statements by terminology like “aim”, “anticipate”, “intend”,
“believe”, “continue”, “estimate”, “expect”, “may”, “objective”, “plan”, “potential”, “project”, “pursue”, “shall”, “should”,
“will”, “would” or other words or phrases of similar import. All statements regarding the Issuer’s expected financial
condition and results of operations, business, plans and prospects are forward looking statements. These forward
looking statements and any other projections contained in this Draft Disclosure Document (whether made by the
Issuer or any third party) are predictions and involve known and unknown risks, uncertainties and other factors that
may cause the Issuer’s actual results, performance and achievements to be materially different from any future
results, performance or achievements expressed or implied by such forward looking statements or other projections.
The forward-looking statements contained in this Draft Disclosure Document are based on the beliefs of the
management of the Issuer, as well as the assumptions made by and information available to management as at the
date of this Draft Disclosure Document. There can be no assurance that the expectations will prove to be correct. The
Issuer expressly disclaims any obligation or undertaking to release any updated information or revisions to any
forward-looking statements contained herein to reflect any changes in the expectations or assumptions with regard
thereto or any change in the events, conditions or circumstances on which such statements are based. Given these
uncertainties, recipients are cautioned not to place undue reliance on such forward-looking statements. All subsequent
written and oral forward-looking statements attributable to the Issuer are expressly qualified in their entirety by
reference to these cautionary statements.
Page 7 of 74
II. DEFINITIONS/ ABBREVIATIONS
AY Assessment Year
AAY Antyodaya Anna Yojana
Allotment/ Allot/ The issue and allotment of the Bonds to the successful Applicants in the Issue
Allotted
Allottee A successful Applicant to whom the Bonds are allotted pursuant to the Issue, either in full or in
part
Applicant/ Investor A person who makes an offer to subscribe the Bonds pursuant to the terms of this Draft
Disclosure Document and the Application Form.
Application Form The form in terms of which the Eligible Investors shall make an offer to subscribe to the Bonds
and which will be considered as the Application for Allotment of Debentures in terms of this
Draft Disclosure Document.
APL Above Poverty Line
Bondholder(s) Any person or entity holding the Bonds and whose name appears in the list of Beneficial
Owners provided by the Depositories
Beneficial Bondholder(s) holding Bond(s) in dematerialized form (Beneficial Owner of the Bond(s) as
Owner(s) defined in clause (a) of sub-section of Section 2 of the Depositories Act, 1996)
Board/ BoD/ BOD Board of Directors of the Corporation or a Committee constituted thereof
Bond(s) Government of India Guaranteed Redeemable Non-Convertible Unsecured Taxable Bonds
(Series X) in the nature of Debentures of face value of Rs. 10.00 lacs each (“Bonds”) to be
issued by Food Corporation of India (“FCI” or “Issuer” or the “Corporation”) through private
placement route under the terms of this Draft Disclosure Document
BPL Below Poverty Line
Record Date Reference date for payment of interest/ repayment of principal
CAG Comptroller and Auditor General of India
CARE CARE Ratings Limited
CDSL Central Depository Services (India) Limited
CMD Chairman & Managing Director of Food Corporation of India
CRISIL CRISIL Ratings Limited
Debt Securities Non-Convertible debt securities which create or acknowledge indebtedness and include
debenture, bonds and such other securities of a body corporate or any statutory body
constituted by virtue of a legislation, whether constituting a charge on the assets of the Issuer
or not, but excludes security bonds issued by Government or such other bodies as may be
specified by SEBI, security receipts and securitized debt instruments
Deemed Date of The cut-off date on which the duly authorized committee approves the Allotment of the Bonds
Allotment i.e. the date from which all benefits under the Bonds including interest on the Bonds shall be
available to the Bondholders. The actual allotment of Bonds (i.e. approval from the Board of
Directors of Corporation or a Committee thereof) may take place on a date other than the
Deemed Date of Allotment.
Depository A Depository registered with SEBI under the SEBI (Depositories and Participant) Regulations,
2018, as amended from time to time
Depositories Act The Depositories Act, 1996, as amended from time to time
Depository A Depository participant as defined under Depositories Act
Participant
Draft Disclosure Draft Disclosure Document dated 11.08.2021 for private placement of Government of India
Document Guaranteed Redeemable Non-Convertible Unsecured Taxable Bonds (Series X) in the nature
of Debentures of face value of Rs. 10.00 lacs each (“Bonds”) by Food Corporation of India
(“FCI” or “Issuer” or the “Corporation”) aggregating to Rs. 2,000 crore with a green shoe
option to retain Rs. 6,000 crore.
DP Depository Participant
DRR Bond/ Debenture Redemption Reserve
EBP Electronic Bidding Platform
FIs Financial Institutions
FIIs Foreign Institutional Investors
Financial Year/ FY Period of twelve months ending March 31, of that particular year
GoI/ GOI Government of India/ Central Government
Guarantee Guarantee Agreement dated 15.07.2021 executed by and between Ministry of Consumer
Agreement Affairs, Food & Public Distribution (Department of Food & Public Distribution), Government of
India, Food Corporation of India and SBICAP Trustee Company Limited conveying the
unconditional and irrevocable guarantee and continuing obligation for payment of principal
Page 8 of 74
amount of the Bonds issued by Food Corporation of India, accrued interest thereon and any
other amount due towards the Bondholders agreed to be guaranteed by the GOI in favour of
the Trustees vide letters No. F.No.ll019/1/2017 -FC-II&III(Pt.1) dated 30.06.2021.
Trustees Trustees for the Bondholders in this case being SBICAP Trustee Company Limited
ICRA ICRA Limited
Issuer/ FCI/ Food Corporation of India, a corporation constituted under The Food Corporations Act, 1964
Corporation and having its Head Quarters at Khadya Sadan, 16-20, Barakhamba Lane, New Delhi –
110001
Listing Agreement Listing Agreement for Debt Securities issued by Securities and Exchange Board of India vide
circular no. SEBI/IMD/BOND/1/2009/11/05 dated May 11, 2009 and Amendments to
Simplified Debt Listing Agreement for Debt Securities issued by Securities and Exchange
Board of India vide circular no. SEBI/IMD/DOF-1/BOND/Cir-5/2009 dated November 26, 2009
and Amendments to Simplified Debt Listing Agreement for Debt Securities issued by
Securities and Exchange Board of India vide circular no. SEBI/IMD/DOF-1/BOND/Cir-1/2010
dated January 07, 2010
MF Mutual Fund
MoF Ministry of Finance
NSDL National Securities Depository Limited
NSE National Stock Exchange of India Limited
Notice of Notice of invocation shall mean the notice to be issued by the Trustee to the Government of
Invocation India requiring GOI to fund the Designated Trust & Retention Account, at least 8 days before
the Due Date pursuant to the provisions of Guarantee Agreement
PAN Permanent Account Number
GIR General Index Registration Number
Rs./ INR/ ` Indian National Rupee
RTGS Real Time Gross Settlement
Registrar Registrar to the Issue, in this case being Beetal Financial & Computer Service (Pvt) Limited
SEBI The Securities and Exchange Board of India, constituted under the SEBI Act, 1992
SEBI Act Securities and Exchange Board of India Act, 1992, as amended from time to time
SEBI Debt Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
Regulations 2008 issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008, as
amended and such other circulars applicable for issue of Debt Securities issued by SEBI from
time to time.
SEBI Listing Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations regulations, 2015, issued vide Circular No. SEBI/LADNRO/ GN/2015-16/013 dated September
02 2015, as amended from time to time
TDS Tax Deducted at Source
The Companies The Companies Act, 1956, as amended and/or The Companies Act, 2013, to the extent
Act notified by the Ministry of Corporate Affairs, Government of India, as applicable
The Act/ FC Act The Food Corporations Act, 1964, as amended from time to time
The Issue/ The Private Placement of Government of India Guaranteed Redeemable Non-Convertible
Offer/ Private Unsecured Taxable Bonds (Series X) in the nature of Debentures of face value of Rs. 10.00
Placement lacs each (“Bonds”) by Food Corporation of India (“FCI” or “Issuer” or the “Corporation”)
aggregating to Rs. 2,000 crore with a green shoe option to retain Rs. 6,000 crore.
Page 9 of 74
III. ISSUER INFORMATION
Name of the Issuer : Food Corporation of India
Head Office & : Khadya Sadan, 16-20, Barakhamba Lane, New Delhi – 110 001
Corporate Office
Tel. No. : 011-43527462
Fax No. : +91-11-23414786
Website : www.fci.gov.in
E-mail : [email protected]; [email protected]
Compliance Officer for : Mr. P. Raja Babu

the Issue Chief General Manager (Funds)
Food Corporation of India
Head Quarters
Khadya Sadan
16-20, Barakhamba Lane
New Delhi - 110 001
Tel. : (011) 43527633
E-mail : [email protected]
Chief Financial Officer : Mr. Jayanta Sharma

of the Issuer Executive Director (Finance)
Head Quarters
Khadya Sadan
New Delhi - 110 001
Tel. : (011) 43527312
Trustees for the : SBICAP Trustee Company Limited

Bondholders Mistry Bhavan, 4th Floor
122 Dinshaw Vachha Road, Churchgate
Mumbai - 400 020
Tel. : (022) 4302 5555
Fax : (022) 2204 0465
Registrar to the : Beetal Financial & Computer Service (Private) Limited

Issue Beetal House, 3rd Floor, 99 Madangir
Behind LSC,
New Delhi-110062
Tel : (011) 29961281-83
Fax : (011) 29961281
Credit Rating : CRISIL Ratings Limited

Agencies CRISIL HOUSE, Central Avenue,
Hiranandani Business Park
Powai, Mumbai- 400076
Tel. : (022) 3342 3000
Fax : (022) 3342 3001
Website : www.crisil.com/ratings
Page 10 of 74
CARE Ratings Limited

Corporate Office
4th Floor, Godrej Coliseum
Somaiya Hospital Road
Behind Everand Nagar
Off Eastern Express Highway
Sion (East), Mumbai - 400022 (Maharashtra)
Tel. : (022) 6754 3456
Fax : (022) 6754 3457
Website : www.careratings.com
Advisors to the Issue : A. K. Capital Services Limited

(in alphabetic order) 910, 9th Floor, Ansal Bhawan,
16, Kasturba Gandhi Marg, Connaught Place
New Delhi - 110 001, India
Tel. : (011) 23739628/ 47340685
Fax : +91-11-23739627
Email : [email protected], [email protected]
Website : www.akgroup.co.in
Trust Investment Advisors Private Limited

912-915, 9th Floor, Tolstoy House
Tolstoy Marg, New Delhi – 110001
Tel. : (011) 43554098/ 43554014
Fax : +91-11-43554099
Email : [email protected], [email protected]
Website : www.trustgroup.in
Arrangers to the Issue : 1. [●] (to be filled after completion of bidding on EBP)
(in alphabetic order) 2. [●]
3. [●]
4. [●]
5. [●]
6. [●]
7. [●]
8. [●]
Advisors/Arrangers to the issue have been appointed by FCI as per process laid by FCI
competent authority and prevailing SEBI EBP Guidelines. None of them are not construed
or retained by FCI as Merchant Bankers to the issue.
Statutory Auditors : Comptroller & Auditor General of India

(for FY 2021-22) Principal Director of Commercial Audit &
Ex-Officio Member Audit Board - IV
8-9 Floor, CAG Building (Annexe)
10 Bahadurshah Zafar Marg
New Delhi - 110124
Tel. : (011) 23239419/20
Fax : +91-11-23239416
Page 11 of 74
IV. DETAILS OF DIRECTORS OF THE ISSUER
1. CURRENT DIRECTORS OF THE ISSUER
The composition of the Board of Directors of the Issuer as on date of this Draft Disclosure Document is as under:
Sl. Name & Designation Date of Birth Residential Other companies Date of Joining in
No. Address where he/she is a FCI
Board
member/Director
1. Shri Atish Chandra, IAS 03.12.1969 -- -- 30.03.2021
Chairman & Managing
Director
Food Corporation of India,
Hqrs. New Delhi
(Chairman of Board)
2. Shri Gudey Srinivas, IAS 10.08.1966 -- 09.01.2020
AS&FA ----
M/o CAF&PD, Room
No.165, Krishi Bhavan,
New Delhi.
(Govt. Nominee)
3. Shri Vivek Aggarwal, IAS 01.06.1971 B-6, Tower-6, New Nil 14.02.2020
Joint Secretary (DAC&FW) Moti Bagh, New PAN No.
Department of Agriculture & Delhi. AGOPA1735A
Co-operation & Farmer
Welfare Krishi Bhavan,
New Delhi.
(Govt. Nominee)
4. Shri Arun Kumar 26.10.1962 25-C Railway Central Railside 18.6.2018
Shrivastava, IRSE Officers Enclave, Warehouse Company
Managing Director Sardar Patel Marg Ltd. DIN:06583208
Central Warehousing Chanakyapuri, New Pan
Corporation Hauz Khas, Delhi -110021 No.:ABZPS7688A
New Delhi (Ex-Officio)
5. Shri Faiz Ahmed Kidwai, 29.11.1972 C-2/7, Char Imli, Director, M.P. State (w.e.f.14.09.2020 till
IAS Bhopal (M.P.) Civil Supplies further orders)
Prl. Secretary, Food, civil Corporation and M.P.
Supplies & Consumer Warehousing &
Affairs, logistics Corporation .
Room No. 325, Mantralaya,
Vallabh Bhawan, Govt. of
Madhya Pradesh.
Bhopal-462 004
(Director)
6. Shri Kona Sasidhar, IAS, 18.08.1975 H.No. B-173,Rain -- w.e.f 03.11.2020
Commissioner & Ex-Officio Tree Park, Dwaraa (till further orders)
Secretary of Consumer Krishna Villas, Opp:
Affairs, Acharya Nagarjuna DIN No. 5121378
Food & Civil Supplies, University, Kaja,
Government of Andhra Mangalagiri, Guntur-
Pradesh, 522508.
Andhra Pradesh
(Director)
7. Smt. Archana Ranjan, IRS 09.04.1955 A4/1, Ground Floor, Nil 13.08.2018
(Retd.) VasantVihar,
Non-official/ Independent New Delhi-57 DIN:07181614
Director
8. Shri Madanlal Rathore, 05.04.1953 Sh. Madanlal Rathod Nil w.e.f. 21.01.2020
Non-official/ Independent S/o Kishanlal Pan No.
Page 12 of 74
Director Rathod, MIG-86, AEMPR5116C

Karamchari Colony,
near Gandhinagar
Mandsaur, Tehsil
Mandsaur, District-
Mandaur,
Madhya Pradesh-
458002
None of the current directors of the Issuer appear in the RBI’s defaulter list or ECGC’s default list.
2. CHANGES IN THE BOARD OF DIRECTORS DURING THE LAST THREE YEARS
Changes in the Board of Directors during the last three years (2018-19 /2019-20 / 2020-21/as on 24.05.2021)
Name & Designation Date of joining in FCI Date of Tenure Remarks

Ending
Shri Yogendra Tripathi, 31.07.2015 30.11.2018(F/N) Transferred
C&MD, FCI
Shri Syedain Abbasi, 30.11.2018 (A/N) 31.12.2018 Additional Charge
C&MD, FCI
Shri D.V. Prasad 01.01.2019 30.11.2020 Superannuated
C&MD, FCI
Shri Sanjiv Kumar 01.12.2020 29.03.2021 Additional Charge
C&MD, FCI
Shri Atish Chandra 30.03.2021 Till further orders NIL
C&MD, FCI
Shri Saraswati Prasad 16.4.2018 03.07.2018 Transferred
SS & FA, M/o CAF&PD
Shri Bimbadhar Pradhan, 09.07.2018 25.09.2018 Transferred
AS&FA, M/o CAF&PD
Shri Dharmendra, 26.09.2018 08.11.2019 Transferred
AS&FA, M/o CAF&PD
Shri Sanjeev Kumar, 16.12.2019 08.01.2020 NIL
AS&FA, M/o Rural Development
Shri Gudey Srinivas , 09.01.2020 Till further orders NIL
AS&FA, M/o CAF&PD
Shri R.K.Khandelwal 06.10.2017 23.09.2018 Transferred
JS(P& FCI),
M/o CAF&PD
Shri Pramod Kumar Tiwari, 24.09.2018 13.11.2019 Transferred
JS(P& FCI),
M/o CAF&PD
Ms. Nandita Gupta, 14.11.2019 25.02.2020 NIL
JS(P& FCI),
M/o CAF&PD
Shri Edwin Kulbhushan Majhi, 26.02.2020 17.05.2021 Demise
AS(P& FCI),
M/o CAF&PD
Dr. B. Rajender 30.09.2016 26.02.2019 Transferred
JS(Seeds)
M/o Agriculture
Shri Abhilaksh Likhi, 14.08.2019 13.02.2020 Transferred
Additional Secretary (DAC&FW)
M/o Agriculture
Shri Vivek Aggarwal, 14.02.2020 Till further orders.
Additional Secretary (DAC&FW)
M/o Agriculture
Shri J.S.Kaushal, 01.12.2017 31.5.2018 Repatriation to Indian Oil
MD,CWC, Additional Charge Corporation.
Shri S C Mudgarieker 01.06.2018 17.6.2018 NIL
MD,CWC, Additional Charge
Shri Arun Kumar Shrivastava, MD,CWC 18.6.2018 Till further orders NIL
Smt. Neelam Shami Rao 29.5.2018 18.05.2020 Transferred
Page 13 of 74
PS (Food, Civil Supplies & Consumer

Protection),
Govt. of Madhya Pradesh
Shri Shiv Shekhar Shukla, 29.5.2020 24.08.2020 Transferred
Affairs),
Shri Faiz Ahamad Kidwai, 14.9.2020 Till further orders NIL
Affairs),
Shri Ashok Kumar Barnwal 29.05.2020 Relieving date Transferred
PS (Food, Civil Supplies & Consumer not available
Protection),
Shri KAP Sinha 05.07.2017 06.06.2020 Transferred

Principal Secretary (Food, Civil Supplies &
Consumer Affairs),
Govt. of Punjab
Shri Kona Sasidhar, IAS, 03.11.2020 Till further orders
Commissioner & Ex-Officio Secretary of
Consumer Affairs,
Food & Civil Supplies,
Government of Andhra Pradesh,
Andhra Pradesh
Dr. G.A. Rajkumar 31.01.2017 31.01.2020 Three years complete
(Retd. IAS), Director
Smt. Archana Ranjan, (Retd. IRS), 13.08.2018 Till further orders For a period of three years
Director from the date of
appointment
Prof. Dr. S.P. Sarvanan, 21.01.2020 02.05.2021 Demise
Director
Shri Madanlal Rathore, 21.01.2020 Till further orders For a period of three years
Director from the date of
appointment
V. DETAILS OF STATUTORY AUDITORS OF THE ISSUER
1. CURRENT STATUTORY AUDITORS OF THE ISSUER (FY 2021-22)
Details of the statutory auditors of the Issuer for financial year 2021-22 are as under:
Name of Statutory Auditors Firm Registration No. Address& Contact Details Auditor since
Comptroller & Auditor Not applicable Comptroller & Auditor General of India FY 1997-98
General of India Principal Director of Commercial Audit
& Ex-Officio Member Audit Board - IV,
8-9 Floor, CAG Building (Annexe),
10 Bahadurshah Zafar Marg,
New Delhi - 110124.
Tel No. (011) 23239419/20
Fax No. 91-11-23239416
2. CHANGE IN STATUTORY AUDITORS OF THE ISSUER SINCE LAST THREE YEARS
There has been no change in the statutory auditors of the Issuer during the last three years.
Page 14 of 74
VI. BRIEF SUMMARY OF BUSINESS/ ACTIVITIES OF ISSUER AND ITS LINE OF BUSINESS
1. OVERVIEW
The Food Corporation of India was setup under the Food Corporations Act 1964, in order to fulfill following
objectives of the Food Policy:
• Effective price support operations for safeguarding the interests of the farmers.
• Distribution of foodgrains throughout the country for public distribution system.
• Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure National Food
Security
Since its inception, FCI has played a significant role in India's success in transforming the crisis management-
oriented food security into a stable food security system.
2. VISION & MISSION
i. Vision
• Ensuring Food Security for citizens of the country.
ii. Mission
• Efficient procurement at Minimum Support Price (MSP), storage and distribution of food grains.
• Ensuring availability of food grains through appropriate policy instrument; including maintenance of buffer
stocks of food grains.
• Making food grains accessible at reasonable prices, especially to the weaker and vulnerable sections of
the society under PDS.
3. OBJECTIVE
In its 55 years of service to the nation, FCI has played a significant role in India's success in transforming the
crisis management-oriented food security into a stable food security system. FCI's Objectives are:
• To provide farmers remunerative prices
• To make food grains available at reasonable prices, particularly to vulnerable section of the society
• To maintain buffer stocks as measure of Food Security
• To intervene in market for price stabilization
4. OPERATIONS OF FCI- AN OVERVIEW
A). PROCUREMENT
i. Overview
The Government policy of procurement of Food grains has broad objectives of ensuring MSP to the farmers
and availability of food grains to the weaker sections at affordable prices. It also ensures effective market
intervention thereby keeping the prices under check, also adding to the overall food security of the country.
FCI, the nodal central agency of Government of India, along with other State Agencies undertakes
procurement of wheat and paddy under Price Support Scheme. Coarse grains are procured by State
Government Agencies for Central Pool as per the direction issued by Government of India from time to time.
The procurement under Price Support scheme is taken up mainly to ensure remunerative prices to the farmers
for their produce which works as an incentive for achieving better production. FCI is also mandated to procure
pulses under PSS Scheme.
Page 15 of 74
Before the harvest, during each Rabi / Kharif Crop season, the Government of India declares the minimum
support prices (MSP) for procurement on the basis of the recommendation of the Commission of Agricultural
Costs and Prices (CACP) which along with other factors, takes into consideration the cost of various
agricultural inputs and the reasonable margin for the farmers for their produce
Farmers are made aware of the quality specifications and purchase system etc. to facilitate the farmers to
bring their produce conforming to the specifications.
Procurement centres are opened by respective State Govt. Agencies/ FCI taking into account the production,
marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage
and transportation etc. Large number of temporary purchase centres in addition to the existing Mandis and
depots/godowns are also established at key points, for the convenience of the farmers.
Procurement operation is carried out by Govt. Agencies i.e FCI and SGAs across the country at MSP across
the country. Under this policy, whatever food grains are offered by farmers within the stipulated procurement
period, conforming to the specifications prescribed by Government of India, are purchased at Minimum
Support Price (MSP) by the Govt. agencies for central pool under open ended procurement system.
In case, the stocks do not confirm to the quality specifications of Govt. of India, the farmers are advised to
bring it to specification by ways of drying/cleaning and if the farmer refuses to upgrade the stocks then such
produce is sold to private traders at mutually agreed rates. Payment to farmers is done through electronic
mode by State Agencies/FCI within 48 hours of purchase.
The State agencies have to also ensure the use of Expenditure Advance Transfer module (EAT) of Public
Financial Module System (PFMS) while making payment, as mandated by the Ministry of Finance, GOI. The
State Govt. has to integrate their online payment system with PFMS. The online payment system necessarily
have the feature of online registration of farmers and online payment to them as mandated by GOI.
State Governments as well as FCI have developed their own Online Procurement System which ushers in
transparency and convenience to the farmers through proper registration and monitoring of actual
procurement. The other States have also been encouraged to procure the produce of the farmers online.
Through e-procuring module deployed by procuring Agencies, farmers get latest/updated information
regarding MSP declared, nearest purchase centre, date on which the farmer has to bring his produce to the
purchase centre etc. This not only has reduced the waiting period for delivery of stock by the farmers but also
enables the farmer to deliver stock as per his convenience in the nearest mandi.
FCI and State Government agencies have adopted web services introduced by GOI/NIC for integration with
National Food Procurement Portal (NFPP) so that daily procurement data may be pushed on NFPP.
Stocks brought to the Purchase centres which are within the prescribed specifications, are purchased at the
fixed Minimum Support Price. If the farmers get prices better than the support price from other buyers such as
traders / millers etc., they are free to sell their produce to them. FCI and the State Government/agencies
ensure that the farmers are not compelled to sell their produce below support price.
ii. Systems of procurement:
a) Wheat - FCI undertakes procurement directly and jointly with SGAs in non-DCP states. In the major
procuring states like Punjab, MP and Haryana, wheat is mainly procured by state agencies and they
preserve the stocks under their custody for which carry –over charges are paid to them. FCI takes over
the stocks for dispatching to other consuming states as per requirement /movement plan. Payments are
made to State Govt. /agencies as per Provisional cost sheets issued by GOI after taking over the stocks.
In the states like UP and Rajasthan, the wheat procured by state agencies is immediately taken over by
FCI.
Rice is procured through Custom Milled (CMR) route.
CMR is manufactured by milling paddy procured by State govt. /State agencies and FCI under MSP
operations. In the states like A.P, Telangana, Punjab, Haryana, Chhattisgarh, Odisha, West Bengal MP,
Tamil Nadu, UP& Bihar paddy is mainly procured by State govt. / State agencies and the resultant rice is
delivered by getting the paddy milled from rice millers.
Page 16 of 74
Major responsibility of procurement of wheat and paddy is borne by the State agencies, whereas FCI
receive and store almost 70% of total rice procured for Central Pool.
iii. Centralized and Decentralized procurement systems:
a). Centralized (Non-DCP) procurement system:

Under centralized procurement system, the procurement of foodgrains in Central Pool is undertaken
either by FCI directly or by State Govt. Agencies (SGA). Quantity procured by SGAs is handed over to
FCI for storage and subsequent issue against GOI allocations in the same State or movement of surplus
stocks to other States. The cost of the foodgrains procured by State agencies is reimbursed by FCI as
per Provisional per cost-sheet issued by GOI as soon as the stocks are delivered to FCI.
b). Decentralized (DCP) Procurement

Under DCP system, the State Govt./its agencies procure , store and distribute (against GOI’s allocation
for TPDS & OWS) rice /wheat/coarse grains within the state . The excess stocks (Rice & wheat)
procured by the State /its agencies are handed over to FCI in Central Pool. The expenditure incurred by
the State Govt. on procurement, storage and distribution of DCP stocks are reimbursed by GOI on the
laid down principles. The expenses such as MSP, aarthias/society commission, administrative charges,
mandi labour charges, transportation charges, custody & maintenance charges, interest charges, gunny
cost, milling charges and statutory taxes are reimbursed on actual basis. The cost of surplus stocks
handed over to FCI is reimbursed by FCI to the State Govt. /agencies as per GOI cost sheet. GOI has
always been emphasizing that States should adopt DCP mode for procurement and distributions of
foodgrains. The details of DCP State for paddy and wheat is as under:
STATES UNDERTAKING DECENTRALISED PROCUREMENT OF RICE
DCP for Rice

S.N. State With Effect From
1 Uttarakhand 2002-03
2 Chhattisgarh 2001-02
3 Odisha 2003-04
4 Tamil Nadu 2002-03
5 West Bengal 1997-98
6 Kerala 2004-05
7 Karnataka 2009-10
8 Madhya Pradesh 2007-08
9 Andhra Pradesh Fully DCP for KMS 2015-16.
10 Bihar 2013-14
11. Telangana Fully DCP from KMS 2014-15.
12. Maharashtra 2016-17
13. Gujarat 2017-18
14. Andaman Nicobar 2003-04
KMS 2018-19(Rabi Crop), KMS 2019-20 (Rabi Crop) & KMS
15. Tripura
2020-21
STATES UNDERTAKING DECENTRALISED PROCUREMENT OF WHEAT
DCP for Wheat

S.N. State With Effect From
1 Madhya Pradesh 1999-2000
2 Uttarakhand 2003-04
3 Chhattisgarh 2001-02
4 Gujarat 2004-05
5 West Bengal 2010-11
6 Bihar 2014-15
7 Maharashtra 2020-21
8 Punjab* 2014-15
Note:
1. *Punjab was DCP State for Wheat from RMS 2014-15, but on request of State Govt, FCI is
participating in procurement operations.
2. Uttar Pradesh was DCP for KMS 1999- 2000 to KMS 2009-10 and RMS 1999-2000 to RMS 2010-
11. Procurement of wheat & rice is under Non-DCP mode.
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3. Rajasthan was DCP for wheat in RMS 2013-14 to 2015-16 (for 1 district) and 2016-17 (for 9
districts). From RMS 2017-18 onwards wheat is procured under Non-DCP mode.
4. Jharkhand was DCP for KMS 2016-17 (only for 1 district) 2017-18 (only for 5 District), 2018-19
(only for 6 District). They have adopted Non-DCP in KMS 2019-20.
c). Minimum Support Prices

The Minimum Support Price (MSP) for wheat and paddy are fixed by the Department of Agriculture &
Cooperation, GOI on the recommendations of the CACP.
MSP of various commodities during KMS 2018-19, KMS 2019-20, KMS 2020-21, RMS 2019-20 , RMS
2020-21 & RMS 2021-22 is as under:
(Rs. per quintal)
Commodity Paddy- Paddy- Wheat Jowar- Jowar- Bajra Maize Ragi Barley
Common Grade “A” Hybrid Maldandi
KMS 2018-19 1750 1770 - 2430 2450 1950 1700 2897 -
KMS 2019-20 1815 1835 - 2550 2570 2000 1760 3150 -
KMS 2020-21 1868 1888 2640 2620 2150 1850 3295
RMS 2019-20 - - 1840 - - - - - 1440
RMS 2020-21 - - 1925 1525
RMS 2021-22 - - 1975 - - - - - 1600
iv. PROCUREMENT
a) Wheat Procurement
During RMS 2020-21 total procurement of wheat for the Central Pool was 389.92 LMT. During RMS
2021-22, 0.78 LMT Wheat was procured as on 31.03.2021.The Region wise procurement of wheat
during RMS 2020-21 and RMS 2021-22 (As on 31.03.2021) is as under:
(Fig. in Lakh MT)
Sl. No. STATES/ UTs Rabi Marketing Season
2020-21 2021-22
1. Punjab 127.14 0.00
2. Haryana 74.00 0.00
3. M.P. 129.42 0.74
4. UP 35.77 0.00
5. Rajasthan 22.20 0.02
6. Chandigarh 0.11 0.00
7. Uttarakhand 0.38 0.00
8 Gujarat 0.77 0.03
9 Bihar 0.05 0.00
10 H.P. 0.03 0.00
TOTAL 389.92 0.78
Agency wise procurement of Wheat during RMS 2020-21 & RMS 2021-22 is as under:
(Fig. in Lakh MT)

RMS 2020-21 RMS 2021-22(Position upto
SL
STATES/ UTs 31.03.2021)
No
F.C.I. State Agency Total F.C.I. State Agency Total
1 Punjab 14.20 112.94 127.12 0.00 0.00 0.00
2 Haryana 6.70 67.30 74.00 0.00 0.00 0.00
3 UP 1.34 34.43 35.77 0.00 0.00 0.00
4 M.P. 0.00 129.42 129.42 0.00 0.74 0.74
5 Bihar 0.00 0.05 0.05 0.00 0.00 0.00
6 Rajasthan 16.29 5.96 22.25 0.01 0.00 0.01
7 Uttrakhand 0.00 0.38 0.38 0.00 0.00 0.00
8 Chandigarh 0.11 0.00 0.11 0.00 0.00 0.00
9 Gujarat 0.00 0.75 0.75 0.00 0.03 0.03
10 H.P. 0.03 0.00 0.03 0.00 0.00 0.00
TOTAL 38.66 351.26 389.92 0.01 0.77 0.78
b) RICE PROCUREMENT
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Total Rice Procurement (including paddy in terms of rice)
The Procurement for KMS 2020-21 has commenced from 26th Sept, 2020. As on 31.03.2021, 466.29
LMT of Rice has been procured in central pool.
The Region wise procurement of Rice during the last two and current Kharif Marketing Season is as
under:
(Quantity in Lakh MT)
Sl. No. STATES/ UTs KMS 2018-19 KMS 2019-20 KMS 2020-21 (As on 31.03.2021)
1 A.P. 48.06 55.33 30.33
2 Telangana 51.90 74.54 32.66
3 Assam 1.03 2.11 0.46
4 Bihar 9.49 13.41 23.40
5 Chandigarh 0.13 0.15 0.19
6 Chhattisgarh 39.71 52.24 39.76
7 Gujarat 0.09 0.14 0.74
8 Haryana 39.41 43.07 37.89
9 Jharkhand 1.53 2.55 3.29
10 J&K 0.09 0.10 0.25
11 Karnataka 0.59 0.41 1.34
12 Kerala 4.65 4.83 2.58
13 M.P. 13.95 17.40 24.97
14 Maharashtra 5.80 11.67 8.75
15 Odisha 44.47 47.98 42.80
16 Punjab 113.34 108.76 135.89
17 NEF(Tripura) 0.07 0.14 0.08
18 Tamil Nadu 12.94 22.04 18.25
19 U.P. 32.33 37.90 44.78
20 Uttarakhand 4.62 6.82 7.12
21 West Bengal 19.79 18.38 10.76
Total 443.99 519.97 466.29
Agency wise Paddy procurement during KMS 2018-19, KMS 2019-20 & KMS 2020-21 is as under
(Quantity in Lakh MT)

STATES KMS 2018-19 KMS 2019-20 KMS 2020-21*
FCI STATE Total FCI STATE Total FCI STATE Total
AG. AG. AG.
A.P. 0.00 71.73 71.73 0.00 82.58 82.58 0.00 45.27 45.27
TELANGANA 0.00 77.46 77.46 0.00 111.26 111.26 0.00 48.75 48.75
ASSAM 1.08 0.45 1.53 1.96 1.19 3.15 0.44 0.25 0.69
BIHAR 0.00 14.16 14.16 0.00 20.02 20.02 0.00 34.92 34.92
CHANDIGARH 0.19 0.00 0.19 0.22 0.00 0.22 0.28 0.00 0.28
CHHATISGARH 0.00 58.40 58.40 0.00 77.39 77.39 0.00 59.35 59.35
GUJARAT 0.00 0.14 0.14 0.00 0.21 0.21 0.00 1.10 1.10
HARYANA 0.18 58.65 58.83 0.05 64.23 64.28 0.59 55.96 56.55
H. P. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
JHARKHAND 0.67 1.61 2.28 1.06 2.74 3.80 0.69 4.14 4.83
J&K 0.14 0.00 0.14 0.15 0.00 0.15 0.38 0.00 0.38
KARNATAKA 0.00 0.88 0.88 0.00 0.61 0.61 0.00 2.00 2.00
KERALA 0.00 6.94 6.94 0.00 7.09 7.09 0.00 3.79 3.79
M. P 0.00 20.82 20.82 0.00 25.97 25.97 0.00 37.27 37.27
MAHARASHTRA 0.00 8.66 8.66 0.00 17.42 17.42 0.00 13.06 13.06
ODISHA 0.00 65.41 65.41 0.00 70.57 70.57 0.00 62.94 62.94
PUNJAB 2.52 166.64 169.16 2.24 160.09 162.33 2.69 200.14 202.83
RAJASTHAN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NEF (Tripura) 0.10 0.00 0.10 0.13 0.08 0.21 0.00 0.11 0.11
TAMIL NADU 0.00 19.03 19.03 0.00 32.41 32.41 0.00 26.85 26.85
UTTAR 0.68 47.57 48.25 0.95 55.62 56.57 1.10 65.74 66.84
PRADESH
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UTTRAKHAND 0.00 6.89 6.89 0.00 10.18 10.18 0.00 10.62 10.62
WEST BENGAL 1.18 27.93 29.11 0.76 26.27 27.03 0.27 15.56 15.83
TOTAL 6.74 653.37 660.11 7.52 765.93 773.45 6.44 687.82 694.26
*Under Progress. Position as on 31.03.2021.
Procurement of Coarse Grains
The State Govt. and their agencies have undertaken the procurement of coarse grains in the recent
past.
Region- wise procurement of coarse grains during last season and current season is as under:
(Qty in MT)
REGION KMS 2019-20 KMS 2020-21(Kharif crop only)(31.03.2021)
Jowar Bajra Maize Ragi Jowar Bajra Maize Ragi
Maharashtra 8613 - 115138 - 17784 5005 88283 -
M.P. 5469 76 - - 29582 195351 - -
Karnataka 9256 193243 33695 - - 418109
Haryana - 100000 - - - 75000 - -
Gujarat - - - - 5000 4133 -
Uttar Pradesh - - - - - - 106413 -
Total 23338 100076 115138 193243 81061 280356 198829 418109
Procurement of Pulses
Details of pulses procured during KMS 2015-16, RMS 2016-17 and KMS 2016-17 under PSF scheme is
as under
(Fig in MTs)
KMS 2015-16 RMS 2016-17 KMS 2016-17
TUR URAD CHANA MASUR TUR URAD MOONG
20257.76 4.72 15194.22 4335.79 175301.40 18234.67 64737.16
FCI did not carry out the procurement of pulses as per the direction of DoCA from RMS 2017-18
onwards.
As per the direction of DAC&FW vide letter dated 11.10.2018, FCI carried out procurement of pulses
under PSS Scheme.
The details of Pulses procured under PSS during KMS 2018-19, Rabi 2018-19, KMS 2019-20 & RMS
2020-21 by FCI are as under:
(Figs in MT)
States KMS 2018-19 Rabi 2018-19 KMS 2019-20 RMS 2020-21 KMS 2021-21
Moong Urad Tur Chana Tur Chana Tur
Maharashtra 5981.82 3636.64 0 46.1 9245.13 15159.92
M.P. 207 52852.24 0 0 0 0
Andhra Pradesh 0 493 0 0 0 0
Karnataka 0 0 15341.81 0 0 0
Gujarat 0 0 0 0 1612 0 17.20
Total 6188.82 56981.88 15341.81 46.1 10857.13 15159.92 17.20
B). STORAGE AND CONTRACT
i. Overview
The storage function assumes paramount importance in organization such as Food Corporation of India
because of its requirement to hold huge inventory of foodgains over a significant period of time. Storage
plan of FCI is primarily to meet the storage requirement for holding stocks to meet the requirement of
Public Distribution System and Other Welfare Schemes undertaken by the Government of India. Also,
buffer stock is to be maintained for ensuring food security of the Nation. Adequate scientific storage is
pre-requisite to fulfill the policy objectives assigned to Food Corporation of India for which FCI has a
network of strategically located storage depots including silos all over India.
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Besides having own storage capacity, FCI has hired storage capacities from Central Warehousing
Corporation, State Warehousing Corporations, State Agencies and Private Parties for short term as well
as for guaranteed period under Private Entrepreneurs Guarantee Scheme.
New Godowns are being constructed by FCI mainly through Private Participation under Private
Entrepreneurs Guarantee Scheme. FCI is also augmenting and modernizing its storage capacity in the
form of silos through Public Private Partnership.
Storage Capacity for Central Pool Stocks for the last six years is given as under:
(Fig in Lakh MT)
As on Capacity with FCI Capacity with State Agencies Total
01.04.2016 357.89 456.95* 814.84
01.04.2017 352.71 420.22* 772.93
01.04.2018 362.50 480.53* 843.03
01.04.2019 388.65 467.03* 855.68
01.04.2020 412.03 343.91 755.94
01.04.2021 414.70 403.26 817.96
*The capacity with State Agencies shown above during 2016 to 2019 includes around 104 LMT of
capacity used by State Agencies for purposes other than wheat and Rice.
ii. Contract
To carry out handling and transportation of foodgrains for appropriate distribution for ensuring adequate
availability of foodgrains throughout the country, large numbers of contracts are to be put in place at
various stages of movement. Accordingly, various Model Tender Forms have been devised for
facilitating field offices in appointment of service providers in a fair and transparent manner.
iii. MTF for Outsourcing the management of FCI godowns
As per the recommendations of HLC(Shanta Kumar Committee), FCI may outsource the management of
newly constructed godowns under Plan Scheme. An MTF had been prepared in this regard with the
approval of Board of Directors of FCI.
Ministry directed CWC to take over the newly constructed godowns under Plan Scheme in NE states.
Accordingly, 19 depots of NE having capacity 61,580 MT, has been offered to CWC for carrying out the
Preservation and Maintenance Services. Out of which, capacity of 5000 MT at Karimganj, 7000 MT at
Jogighopa , 5000 at Lalbazar, 3340 at Lohit(Tezu) and 4600 MT at Bishnupur has been taken over by
CWC for PMS works. For the remaining 14 depots, CWC has also been requested to take over depots
for PMS works.
iv. Private Warehousing Scheme
Under PWS scheme, godowns are hired by FCI from private parties on lease + services basis through
open tender enquiry minimum for a period of two year extendable by maximum another one year (can be
dehired in the extended period after giving three months’ notice). This scheme has been extended upto
31.03.2023.
C). MOVEMENT
i. Overview
Movement plays a very important role in the working of FCI as well as in fulfilling the objectives of Food
Policy and National Food Security Act.
FCI undertakes movement of foodgrains in order to:
• Evacuate stocks from surplus regions

• Meet the requirements of deficit regions for NFSA/ TPDS and Other Schemes
• Create buffer stocks in deficit regions
Punjab, Haryana and Madhya Pradesh are the surplus States in terms of wheat procurement vis-à-vis
their own consumption. Punjab, Haryana, Andhra Pradesh/ Telangana, Chhattisgarh and Odisha are
surplus States in terms of rice procurement vis-à-vis their own consumption. Surplus stocks of wheat
Page 21 of 74
and rice available in these States are moved to deficit States to meet the requirements under NFSA/
TPDS and other schemes as well as to create buffer stocks.
On an average 42 to 45 million tonnes of foodgrains are transported by FCI across the country in a year.
FCI undertakes massive movement operation of foodgrains all over the country encompassing 2297 FCI
Owned & Hired depots/ Slios, 550 plus rail-heads (owned by Indian Railways and others) and 98 FCI
own sidings.
Movement Plan is prepared on monthly basis keeping in view:
• Quantity available in surplus regions

• Quantity required by deficit regions
• Likely procurement
• Vacant storage capacity both in consuming as well as procuring regions
• Monthly allotment/ off take of foodgrains
ii. Mode of Transportation
Movement of foodgrains is undertaken by Rail, Road and Waterways. Around 80% of stocks are moved
by rail to different parts of the country. Inter-State movement by road is mainly undertaken in those parts
of the country which are not connected by rail. A small quantity is also moved by ocean vessels to
Lakshadweep and A&N Islands as well as through coastal shipping to Kerala.
FCI has 98 own Rail sidings, where foodgrain rakes are placed directly at FCI depots. Other than that,
foodgrain stocks are transported ‘to and fro’ from the nearest rail-heads of Indian Railways.
iii. Other Initiative in Movement of Foodgrains
a) Coastal & Riverine Movement:
FCI, as a pro-active measure has also explored the movement of food grains through multimodal costal/
riverine mode so as to supplement rail/road movement. FCI is already moving foodgrains to Andaman &
Lakshadweep using coastal mode but the same is in meagre quantity. From 2013-14 to 2020-21, 3.02
LMT foodgrains have been moved through multimodal costal/ riverine mode.
b) Containerized Movement:
FCI has initiated containerized movement of foodgrains on certain routes through CONCOR/ Associates
wherein it is found to be economical in comparison to conventional Railway rakes. From, 2016-17 to
2020-21, 919 such container rakes have been moved with approx. freight savings of Rs. 26.83 crores.
c) Efficiency Parameters:
i. FCI is effectively optimizing movement in association with Railways, while minimizing cost.
Demurrage and Wharfage were brought down from Rs. 195.73 Cr in 2012-13 to Rs. 46.17 Cr in
2020-21.
ii. No. of Rebooking(s)/ Diversion(s) have been reduced from 904 rakes (Rs 77.97 Cr) in 2012-13 to 7
rakes in 2020-21 (Rs 0.32 Cr).
iii. The Demurrage per MT has been reduced from Rs. 25.10/ MT in 2012-13 to Rs. 4.66/MT in 2020-21.
D). FINANCE
i. Overview
The functions of Finance and Accounts Division is primarily maintenance of Accounts and preparation of
annual reports, preparation of Budget Estimates, claim subsidy from Government of India, Funds
Management, Taxation, Debt collection and Financial evaluation of commercial proposals.
At present FCI is only implementing Government of India food programme and not involved in any
commercial venture.
Page 22 of 74
Main operation of FCI includes procurement of foodgrains at minimum support price declared by
Government of India, store foodgrains so procured, transport the surplus foodgrains to deficit states and
issue it to State Governments under Public Distribution System at a price decided by the Government Of
India. Since, the issue prices declared by Government Of India under different schemes are much lower
than the cost of foodgrains procured, the differential amount is reimbursed to FCI as food subsidy by the
Government Of India. FCI also maintains buffer stocks of foodgrains as mandated by the Government of
India and intervene in the domestic market to control the rising prices of the foodgrains.
Year Subsidy Sales Proceed Total turnover

(Rs.in crore) (Rs. in crore) (Rs. in crore)
2014-15 105007 29757 134764
2015-16 102425 29287 131712
2016-17 109136 22115 131251
2017-18 116282 18035 140437
2018-19 120352 31555 151907
2019-20 (Provisional) 132408 23592 155600
2020-21(RE) 215270 24789 240059
2021-22(BE) 167148 30037 197185
ii. Sources of Finance
Working Capital requirement and other expenses are met through following sources of finance
(As on 31st March) (Rs. In crore)

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
(as on
31.07.2021)
Equity Capital 2,672.95 2,675.95 2,762.79 2,830.49 2,861.08 2,884.58 3,447.58 4496.58 5536.58 8036.58
subscribed by
GOI
iii. Economic cost
A. Financial Year wise economic cost (Final(Rs./Qtl)

Year Wheat Rice
Rabi 2021-22 Budgeted 2993.80 -
Kharif 2021-22 Budgeted - 4293.79
B. Accounting Year-wise opening Stock adjusted weighted Economic cost and Acquisition cost.
(In Rs./Qtl)
Annual
Econo rate of
Pooled Cost of Procurement Distribution
Acquisition Cost mic Buffer
grain Incidentals Cost
Year Status Cost Carryin
g Cost
Wheat
Wheat Rice Wheat Rice Wheat Rice Wheat Rice Wheat Rice
& Rice
2001-02 Audited 591.61 911.53 134.68 66.81 726.29 978.34 126.65 119.62 852.94 1097.96 205.52
2002-03 Audited 600.86 945.64 137.63 61.67 738.49 1007.31 145.51 157.72 884.00 1165.03 286.86
2003-04 Audited 610.8 990.89 138.2 30.68 749 1021.57 169.69 214.52 918.69 1236.09 289.02
2004-05 Audited 613.47 988.6 182.74 58.48 796.21 1047.08 222.8 256.51 1019.01 1303.59 303.37
2005-06 Audited 636.11 1028.2 171.2 39.12 807.31 1067,32 234.54 272.37 1041.85 1339.69 337.76
2006-07 Audited 728.27 907.94 180.15 193.66 908.42 1101.6 269.36 289.58 1177.78 1391.18 407.42
2007-08 Audited 903.3 1037.13 164.02 214.91 1067.32 1252.04 244.43 297.82 1311.75 1549.86 326.77
2008-09 Audited 955.54 1233.1 179.62 226.87 1135.16 1459.97 245.42 280.76 1380.58 1740.73 450.41
2009-10 Audited 1017.36 1346.55 206.88 288.6 1224.24 1635.15 200.37 184.92 1424.61 1820.07 405.14
2010-11 Audited 1064.32 1446.53 212.38 313.09 1276.7 1759.62 217.65 223.49 1494.35 1983.11 408.42
2011-12 Audited 1119.18 1512.2 235.68 350 1354.86 1862.2 240.39 260.74 1595.25 2122.94 426.42
2012-13 Audited 1219.41 1633.83 263.35 383.76 1482.76 2017.59 269.81 287.28 1752.57 2304.87 474.46
2013-14 Audited 1271.11 1762.01 286.41 463.53 1557.52 2225.54 350.8 389.97 1908.32 2615.51 446.28
2014-15 Audited 1317.82 1851.44 346.57 594.72 1664.39 2446.16 386.85 497.42 2051.24 2943.58 523.37
2015-16 Audited 1406.15 2004.06 367.08 618.17 1773.23 2622.23 354.16 503.24 2127.39 3125.47 440.15
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2016-17 Audited 1467.49 2075.16 367.26 597.21 1834.75 2672.37 362.23 432.59 2196.98 3104.96 524.80
2017-18 Audited 1587.9 2291.03 303.91 481.55 1891.81 2772.58 406.11 507.73 2297.92 3280.31 512.30
2018-19 Audited 1676.02 2443.28 280.86 450.4 1956.88 2893.68 402.85 550.42 2359.73 3444.10 493.25
2019-20 Provisional 1785.72 2555.77 285.58 467.65 2071.30 3023.42 551.78 696.64 2623.08 3720.06 531.87
Revised
2020-21 1865.34 2697.03 300.51 466.07 2165.85 3163.10 573.77 836.31 2739.62 3999.41 637.66
Estimate
Budgeted
2021-22 1920.78 2790.00 319.84 484.85 2240.62 3274.85 753.18 1018.94 2993.80 4293.79 558.90
Estimated
E). SALES
i. OVERVIEW
A. Operations
In order to achieve the food security of the country, the Sales Division looks after one of the most important
operation i.e. distribution of foodgrains under TPDS/NFSA & Other Welfare Schemes.
Government of India fulfills the objectives of food security through the Public Distribution System. Public
Distribution System strives to meet the twin objectives of price support to the farmers for their product and
supply of foodgrains at affordable prices. It is against the stocks procured under price support, Government
releases a certain quantity of foodgrains in each State under the Public Distribution System. This mission of
the Government of India is translated into reality by the FCI. In order to implement the food policy of
Government, FCI has to fulfil certain objectives which are as follows:
• To ensure and equitable distribution of available foodgrains at reasonable prices to the vulnerable
sections of society throughout the year;
• To maintain stability in foodgrains prices throughout the country during the year;
• To maintain an adequate buffer stock of foodgrains to deal with fluctuations in production and to
meet unforeseen exigencies and natural calamities.
B. Functions
The functions of Sales Division are as follows:
a) Management of allocation and offtake of wheat, rice, and coarse grains under different schemes of
Ministry of CAF&PD at Central Issue Price which are as under:-
• TPDS (NFSA & Tide over/Other than NFSA) and Special additional allocations for TPDS.
• Other Welfare Schemes (OWS) viz. Mid-Day Meal, Annapurna, Welfare Institutions & Hostels,
Wheat Based Nutrition Programme and Scheme for Adolescent Girls.
• Defence/ Para-Military Forces (CRPF/BSF/ITBP).
• Open Market Sales Scheme (Domestic).
• Natural calamities and festivals.
b) Matters related to Stocking Norms of foodgrains for Central Pool.
c) Disposal of issuable old stocks of foodgrains through open tender.
d) Identification & declaration of Base Depot in consultation with the State Govts.
e) Reimbursement of Road Transportation Charges (RTC) to State/UT Govts. where stocks are lifted from
other depots instead of base depot.
f) Issues relating to National Food Security Act (NFSA).
g) Matter related to Direct Benefit Transfer (DBT) to States
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h) Release of wheat at pre-determined prices in the open market from time to time to enhance the supply of
wheat especially during the lean season to moderate the open market prices.
i) Sale of Surplus Stock of Rice to Oil Marketing Companies for conversion into Ethanol.
j) Disposal of pulses through normal channel and through tenders.
ii. PUBLIC DISTRIBUTION SYSTEM
The concept of Public Distribution System in the country was evolved around 1942 due to shortage of
foodgrains during 2nd World War and Government intervention in distribution of food started. This intervention
of Government in distribution of foodgrains in the food scarcity period and, thereafter, continued in major
cities, towns & certain food deficit areas. This policy of Public Distribution System/Rationing System has
undergone several changes with every lap of Five Year Planning System in the country. The Seventh Five
Year Plan assigned to it a crucial role by bringing the entire population under Public Distribution System and
became a permanent feature in the country's economy.
The Government of India fulfills certain objectives of food security through Public Distribution at an affordable
price. In the present scenario, Public Distribution System strives to meet the twin objectives - the price support
to the farmers for their product and maintenance of stocks. It is against these stocks procured under price
support that every month Government releases a prescribed quantity, in each State for distribution under
Public Distribution System. This mission of the Government of India is brought into the reality at the
operational level by FCI. The Sales Division communicates the said allocation to its Regional Offices. On
receipt of sub-allocation from the State Government, the Regional Offices issue the instructions to the District
Offices for releasing the stocks to the respective State Government /their nominees on prepayment basis at
district level.
iii. TARGETED PUBLIC DISTRIBUTION SYSTEM (T.P.D.S.)
Public Distribution System was widely criticized for its failure to serve the population below the poverty line, its
urban bias, negligible coverage in the States with the highest concentration of the rural poor and lack of
transport and accountable arrangements for delivery. Realizing this, the Government of India introduced the
TPDS scheme w.e.f. 1.6.1997 (w.e.f. 1.5.1997 for the states of Tripura, Haryana and Gujarat) to streamline
the PDS by issuing special cards to the families below the poverty line (BPL) and selling essential articles
under PDS to them at a specially subsidized prices with better monitoring of the delivery system. The families
belonging to above the poverty line were categories as APL families.
During the year December, 2000, Government of India decided to issue rice and wheat at the rate of Rs. 3/
per Kg. And Rs. 2/- per Kg., respectively to the poorest of the poor population out of the earlier identified BPL
population and were categories as Antyodaya families.
Hence, w.e.f. the year December, 2000, the TPDS has three categories of families viz. APL, BPL, and AAY
families. There are different category-wise Central Issue Prices under TPDS.
iv. NATIONAL FOOD SECURITY ACT, 2013
An Act to provide for food and nutritional security in human life cycle approach, by ensuring access to
adequate quantity of quality food at affordable prices to people to live a life with dignity and for matters
connected therewith or incidental thereto.
a) COMMENCEMENT: 5th July 2013
b) PROVISIONS FOR FOOD SECURITY:
➢ Coverage / Identification of Beneficiaries
To the extent of up to 75% population of Rural and up to 50% population of Urban areas may be identified
as eligible households for food security. The eligible households will be identified in two categories –
• Households covered under Antyodaya Anna Yojana (Identified to the extent as may be specified by
the central government for each state in accordance with the guidelines of Antyodaya Anna Yojana
Scheme launched by Central government on 25th December 2000).
Page 25 of 74
• Priority Households (to be identified in accordance with such guidelines as the State Government
concerned may specify).
➢ Entitlements for General People
• The households covered under Antyodaya Anna Yojana shall be entitled to get 35 Kg. of foodgrains
per household per month.
• Every person belonging to priority household shall be entitled to get 5 kg. of foodgrains per person
per month.
• The said foodgrains will be provided at the prices of Rs. 3 per Kg. for rice, Rs. 2 per Kg. for wheat
and Rs. 1 per Kg. for coarsegrains.
➢ Entitlements for Women
Every pregnant woman and lactating mothers except those who are in regular employment with Central or
State Government or Public Undertaking or those who are in receipt of similar benefits under any law,
shall be entitled to: -
• Meal, free of charge, during pregnancy and six months after the child birth, through the local
anganwadi.
• Maternity benefits of not less than Rs. 6000/-, in such installments as may be prescribed by Central
Government.
➢ Entitlements for Children
Every child upto the age of fourteen years shall be entitled to have entitlements for his nutritional needs: -
• Every child from the age of six months to age of six years shall be entitled to get appropriate meal,
free of charge, through local anganwadi.
• In case of children, upto class 8 or within the age group of six years to fourteen years shall be entitled
to have one mid-day meal, free of charge, every day, except on school days, in schools run by local
bodies, government and government aided schools
The state government shall, through the local anganwadi, identify and provide meals, free of charge, to
children who suffer from malnutrition, so as to meat nutritional standards.
c) FOOD SECURITY ALLOWANCE:
In case of non-supply of entitled quantities of foodgrains or meals to entitled persons, such person shall be
entitled to receive such foodgrains security allowance from the concerned State Government to be paid to
each person. For this, in case of short supply of foodgrains from the central pool to State, The Central
Government shall provide Funds to the extent of short supply to the State Government for meeting obligations.
d) REQUIREMENT OF FOODGRAINS UNDER NFSA:
Total requirement of foodgrains under NFSA has been estimated at 614.26 lakh MTs. This includes 549.26
lakh MTs for PDS and 65.00 lakh MTs for Other Welfare Schemes.
NFSA has been implemented in all the 36 States/UTs.
v. Role of FCI in PDS
The role of Food Corporation of India is to ensure supply of foodgrains to the States/UTs as per the allotment
made by the Government of India at the applicable Central Issue Prices. The stock of foodgrains under PDS is
issued through joint sampling method. Further, FCI has no control over the stock once lifted and taken out of
FCI premises.
The responsibility of distributing the foodgrains to the targeted beneficiaries through Fair Price Shops rests
with the respective State/UT Government.
Page 26 of 74
vi. Pricing
The Government of India, Ministry of CA,F&PD has been fixing Central Issue Prices of wheat and rice from
time to time which is uniform throughout the country. The present Central Issue price of wheat and rice
effective from 05.07.2013 are as under:
(Rate: Rs./Quintal.)
Commodity NFSA Other than NFSA / Tide over
Wheat 200 610
Rice 300 830
The NFSA came into force w.e.f. 05.07.2013 and the period of three years from its commencement ended on
04.07.2016. The issue prices of Rs. 1/2/3 per Kg. of coarsegrain/wheat/rice are however continued presently,
till further order received from the Govt. of India.
vii. Validity for lifting of stocks
Govt. of India is allocating foodgrains (wheat and rice) under Targeted Public Distribution System on monthly
basis and issues allocation order for the financial -year wise and makes further revision, if any, from time to
time.
Ministry during 28th July 2014 has revised the instructions to streamlining of procedure regarding issuance and
revalidation/extension of validity period for lifting of foodgrains under TPDS. The validity period for lifting of
allocated foodgrains under TPDS will be 30 days for each allocation month separately, starting from 1 st day of
the month preceding the allocation month and ending on last day of the month preceding the allocation month.
For example, the validity period for the allocation for April will be from 1 st March to 31st March.
Ministry has made it mandatory for State and UT Govt. to deposit the cost of foodgrains to FCI so much in
advance so that the lifting is completed by end of the previous month. Further, in view of the current situation
being created all over the country due to COVID-19, where the responsibility for providing the foodgrains to
the beneficiaries is of utmost importance, the Ministry has further revised guidelines of extension of validity
period for lifting of unlifted quantity of foodgrains under TPDS/NFSA. According to which (i) the concerned
GM, FCI of the region in re-delegated with the powers of granting 1st extension of 15 days for lifting of unlifted
quantity of foodgrains in respect of all the States/UTs until further orders, (ii) 2nd extension powers of 15 days
in respect of NE States i.e. Tripura, Arunachal Pradesh, Assam, Manipur, Meghalaya, Nagaland, Mizoram and
Sikkim and in respect of Jammu & Kashmir will continue to remain with FCI Hqrs. until further orders & (iii) 2nd
extension powers in respect of rest of the States/UTs other than those mentioned above will remain with
Department of Food & Public Distribution.
viii. Various Schemes at a Glance
S. Name of Scheme/Nodal Beneficiaries Scale of Periodicity Validity of allotment Website of nodal

No. Ministry/Issue Price allotment of Allotment Ministry
1. NFSA/Tide over Ration Card holder NFSA- AAY Monthly I. Offtake of www.dfpd.nic.in
(Ministry of Consumer of a State/UT. families 35 Kg. allotment foodgrains pertaining
Affairs, Food & Public per family per to any allocation
Distribution) month. month should be
completed by
( Rs. / quintal ) Priority States/UTs by the
NFSA-Wheat: 200/- household- last day of the month
NFSA-Rice : 300/- 5kg. preceding the
foodgrains per allocation month.
Other than NFSA/Tide person per
over allocation - month II. States/UTs should
Wheat : 610/- deposit the cost well
Other than NFSA-Rice : in time so that the
830/- lifting of foodgrains
could be ensured as
per schedule.
2. Mid-Day Meal Students upto 5th Upto 5th Class Quarterly I. States/UTs have www.mhrd.gov.in
(Ministry of HRD) class of 100 Gms of allotment. the option to lift
Government foodgrains per monthly allocation by
Free of cost to States schools. However, child per the last day of the
Bills are raised at AAY allocation of school day. month preceding the
price by the FCI with foodgrains has also From 6th to 8th allocation month.
Ministry of HRD. been made from Class 150
Page 27 of 74
Oct. 2007 for the Gms of II. Allotment for a

students from 6th to foodgrains per quarter is valid from
8th in the child per 1st day of the month
Educationally school day. preceding the
backward blocks. allocation quarter till
the last day of the
second month of the
said quarter, unless
otherwise
communicated by
Department of F&PD
in individual cases.
III. Scheme is on
credit basis and bills
are raised by FCI
later on.
3. Annapurna Old aged person 10 kg of Monthly I. Offtake of www.rural.nic.in
(Ministry of Rural eligible for Pension foodgrains per allotment. foodgrains pertaining
Development) but are not getting month. to any allocation
Wheat:415/-per Qtl. the same month should be
Rice :565/-per Qtl. completed by
States/UTs by the
last day of the month
preceding the
allocation month.
II. States/UTs should

deposit the cost well
in time so that the
lifting of foodgrains
could be ensured as
per schedule.
4. Welfare Institutions & For Welfare 15 Kg. per Monthly I. Offtake of www.dfpd.nic.in
Hostels Scheme Institutions of the head per allotment foodgrains pertaining
(Ministry of Consumer States/UTs month. to any allocation
Affairs, Food & Public month should be
Distribution) completed by
States/UTs by the
Wheat:415/- Qtl. last day of the month
Rice :565/- Qtl. preceding the
allocation month.
II. States/UTs should

deposit the cost well
in time so that the
lifting of foodgrains
could be ensured as
per schedule.
5. Wheat Based Nutrition State run Child Not given. Quarterly I. States/UTs have www.wcd.nic.in
Programme (WBNP) Development allotment the option to lift
(Ministry of Women & Projects monthly allocation by
Child Development) the last day of the
month preceding the
Wheat:200/- Qtl. allocation month.
Rice :300/- Qtl.
II. Allotment for a
quarter is valid from
1st day of the month
preceding the
allocation quarter till
the last day of the
second month of the
otherwise
communicated by
Department of F&PD
III. States/UTs
should deposit the
cost well in time so
that the lifting of
foodgrains could be
ensured as per
schedule.
Page 28 of 74
6. Scheme for adolescent State run Women 6 kg per Quarterly I. States/UTs have www.wcd.nic.in
Girls (SAG) Welfare Projects month. allotment the option to lift
(Ministry of Women & monthly allocation by
Child Development) Earlier it was the last day of the
Wheat:415/- Qtl. known with the month preceding the
Rice :565/- Qtl. name AGPLM, allocation month.
NPAG and Rajiv
Gandhi Scheme II. Allotment for a
for Empowerment quarter is valid from
of Adolescent 1st day of the month
Girls-“SABLA”. preceding the
allocation quarter till
the last day of the
second month of the
otherwise
communicated by
Department of F&PD
III. States/UTs
should deposit the
cost well in time so
that the lifting of
foodgrains could be
ensured as per
schedule.
7. Defefenc/Para Military Foodgrains are -- Quarterly 225 days (including www.mod.nic.in
Forces. allocated to allotment 15 days prior to
(Ministry of Consumer Battalions State- allocation quarter+
Affairs, Food & Public wise. 90 days of the
Distribution) quarterly allocation+
120 days after the
At economic cost. last day of the last
month of allocation
quarter)
8. Additional Allocations Victims of natural Not fixed. As specified As specified by the www.dfpd.nic.in
(Ministry of Consumer calamities, by the Ministry from time to
Affairs, Food & Public additional Ministry from time.
Distribution) requirement for time to time.
festivals etc.
At MSP/CIP/Economic
Cost of FCI/Open Sale
rate
ix. Quality Confirmation
The foodgrains stocks are lifted by the State Government /their nominees. Before issue of the stocks, they are
allowed to inspect the stocks and get themselves satisfied about the quality. The stock of foodgrains proposed
to be issued to the State Governments, Fair Price Shops, Cooperatives etc. is jointly inspected to ensure that
the stock conform to the standards for such issues. A representative sample is drawn in the presence of the
authorized representative of the agency taking delivery. This sample is well mixed and divided into three equal
parts and these samples are sealed jointly. One of such jointly sealed sample is given to the authorized
representative taking delivery, one is sent to FCI District Office and one is retained in the depot from where
the delivery is affected. Samples of issued foodgrains are retained for a period of 3 months in token to quality
released.
Besides above, the recipient is also required to furnish a certificate to the FCI depot to the effect that he is
satisfied with the quality of foodgrains issued.
x. Role & Responsibility during COVID-19 pandemic in the country
In order to overcome the situation arisen due to lockdown announced by the Govt. of India, FCI has also taken
various steps to ensure availability of food grains in every nook and corner of the country so that food grain
requirement of the needy and deprived persons are fulfilled & there is no shortage of food grains in any part of
the country and to keep market prices of food grains under control. Details of new schemes introduced during
COVID-19 period are as under:
Sl. Name of Scheme Beneficiaries Lifting (Fig in LMT)
Page 29 of 74
No
Wheat Rice Total
1. Pradhan Mantri Garib Kalyan Additional allocation to State/UTs 15.01 102.99 118.00
Anna Yojana (PMGKAY)-1 for distribution to all the
Allocation beneficiaries (80.95 crore)
Wheat : 15.03 LMT covered under NFSA @ 5 Kg.
Rice : 104.30 LMT per person per month for April to
Total : 119.33 LMT June 2020, free of cost.
1. Pradhan Mantri Garib Kalyan Additional allocation to State/UTs 88.47 98.35 186.82
Anna Yojana (PMGKAY)-2 for distribution to all the
Allocation beneficiaries (80.95 crore)
Wheat : 93.32 LMT covered under NFSA @ 5 Kg.
Rice : 100.83 LMT per person per month for July to
Total : 194.15 LMT November 2020, free of cost.
3. Allocation for For Migrants/stranded Migrants, 1.83 4.57 6.40
Migrants/stranded Migrants who are not covered under NFSA
Allocation or State scheme PDS cards, @ 5
Wheat : 2.44 LMT Kg. per person per month free of
Rice : 5.56LMT cost for two months (May & June
Total : 8.00 LMT 2020) to benefit approximately 8
crore Migrants/ stranded
Migrants, free of cost.
4. Scheme for Non-NFSA card Persons not covered under 2.57 7.09 9.66
holders NFSA, having State/UT ration
card @ 5 Kg. per person per
month for April to June 2020 at
Rs. 21/- per Kg. wheat and Rs.
22/- per Kg. rice
5. Open sale without e-auction Sale of wheat through District 4.00 7.90 11.90
Magistrate for Roller Flour Mills &
manufacturers of wheat products
at OMSS(D) prices and sale of
rice to State Govt. for their own
schemes.
6. Supply to Charitable/ Non- Supply of wheat and rice to 0.01 0.10 0.11
Governmental Organizations Charitable/ NGOs at Rs. 21/- per
Kg. wheat and Rs. 22/- per Kg.
rice.
Total 111.89 221.00 332.89
xi. ACHIEVEMENTS DURING 2020-21
a. Regular supply of foodgrains during COVID-19 pandemic
In view of COVID-19 pandemic in the country, it was a challenging task for FCI to maintain supply of
foodgrains at every nook and corner of the country for meeting requirement of regular schemes i.e.
NFSA/OWS as well as additional requirement under PMGKAY, Scheme for Migrants, Non-NFSA card holders
and Scheme for Charitable/NGOs etc announced by the Govt. of India. FCI could able to complete the task
due to constant efforts and close liaison with Railways. Due to which FCI delivered a quantity of around 946
LMT of foodgrains from Central Pool under all the schemes of Govt. of India during COVID-19 period from
25.03.2020 to 31.03.2021, which is all time high.
b. Sale of wheat under OMSS (D)
The e-auction of foodgrains under Open Market Sale Scheme (Domestic) is being undertaken during 2020-21
through the e-platform of service provider. Apart from this Sale of wheat through District Magistrate for Roller
Flour Mills & manufacturers of wheat products at OMSS(D) prices and sale of rice to State Govt. for their own
schemes, was also undertaken. A quantity of 50.32 lakh MT of foodgrains sold under OMSS(D) during 2020-
21 (upto 31.03.2021).
FCI could able to save lot of man hours which were being used in the manual operation of sale of foodgrains
under OMSS(D) and also reduced human interface thus bringing more transparency in the system through e-
Auction of foodgrains.
c. Disposal of pulses
Page 30 of 74
The sale of pulses to State Govt./UT Govt./Agencies are undertaken as per the allocation by Govt. of
India/demand by State Govt. The sale of pulses to Private Traders is undertaken through e-auction/spot
auction. A quantity of 0.87 LMT of pulses were disposed off during 2020-21 (Upto 31.03.2021).
8) Stocks
i. Overview
Foodgrains stocking norms refers to the level of stock in the Central Pool that is sufficient to meet the
operational requirement of foodgrains and exigencies at any point of time. Earlier this concept was termed as
Buffers Norms and Strategic Reserve.
Presently stocking norms fixed by Government of India vide OM dated 22.01.2015 comprises.
• Operational stocks: for meeting monthly distributional requirement under TPDS and OWS.
• Food security stock/reserve: for meeting shortfall in procurement.
Stocking norms are for a quarter and consist of operational stock for the quarter and strategic reserve to take
care of short fall in production or natural calamities.
ii. Foodgrains Stocking Norms.
Buffer Norms w.e.f. 22.01.2015.

Fig. In lakh MT
As on Operational Stock Strategic Reserve Grand Total
Rice Wheat Total Rice Wheat
1st April 115.80 44.60 160.40 20.00 30.00 210.40
1st July 115.40 245.80 361.20 20.00 30.00 411.20
1st October 82.50 175.20 257.70 20.00 30.00 307.70
1st January 56.10 108.00 164.10 20.00 30.00 214.10
iii. Total Stocks of Foodgrains in Central Pool (as on 01.04.2021)
आँ कड़े लाख मीट्रि क रन में (Figs. In LMT)

क्षेत्र भा॰ खा. ट्न॰ का स्टॉक राज्य ऐजेंट्िय ों का स्टॉक केन्द्रीय पूल में कुल खाद्यान
STOCK WITH FCI STOCK WITH STATE AGENCIES TOTAL CENTRAL POOL STOCK
Region चावल गेहँ यग चावल गेहँ यग चावल गेहँ यग
RICE WHEAT TOTAL RICE WHEAT TOTAL RICE WHEAT TOTAL
2 3 4 5 6 7 8 9 10
बिहार Bihar 4.39 4.74 9.13 7.00 0.00 7.00 11.39 4.74 16.13
झारखण्ड Jharkhand 2.77 0.37 3.14 0.00 0.00 0.00 2.77 0.37 3.14
ओबिशा Odisha 3.68 1.58 5.26 6.15 0.00 6.15 9.83 1.58 11.41
पबिम िंगाल West Bengal 0.21 6.52 6.73 4.36 0.00 4.36 4.57 6.52 11.09
पूवव अोंचल का य ग Zonal
11.05 13.21 24.26 17.51 0.00 17.51 28.56 13.21 41.77
Total
असम Assam 2.89 0.09 2.98 0.00 0.00 0.00 2.89 0.09 2.98
अरुणाचल प्रदे श Arunachal Pr. 0.24 0.00 0.24 0.00 0.00 0.00 0.24 0.00 0.24
बिपुरा Tripura 0.27 0.05 0.32 0.00 0.00 0.00 0.27 0.05 0.32
बमजोरम Mizoram 0.17 0.00 0.17 0.00 0.00 0.00 0.17 0.00 0.17
मेघालय Meghalaya 0.16 0.01 0.17 0.00 0.00 0.00 0.16 0.01 0.17
मबणपुर Manipur 0.41 0.00 0.41 0.00 0.00 0.00 0.41 0.00 0.41
नागालैं ि Nagaland 0.44 0.00 0.44 0.00 0.00 0.00 0.44 0.00 0.44
पूवोत्तर अोंचल का य ग Zonal
4.58 0.15 4.73 0.00 0.00 0.00 4.58 0.15 4.73
Total
बदल्ली Delhi 0.37 2.11 2.48 0.00 0.00 0.00 0.37 2.11 2.48
हररयाणा Haryana 26.25 23.07 49.32 0.00 25.86 25.86 26.25 48.93 75.18
बहमाचल प्रदे श Himachal Pr. 0.26 0.54 0.80 0.00 0.00 0.00 0.26 0.54 0.80
जम्मू और कश्मीर J&K 1.59 0.51 2.10 0.00 0.00 0.00 1.59 0.51 2.10
पंजाि Punjab 95.93 22.68 118.61 0.00 61.86 61.86 95.93 84.54 180.47
राजस्थान Rajasthan 0.17 9.99 10.16 0.00 0.00 0.00 0.17 9.99 10.16
उत्तर प्रदे श Uttar Pr. 30.45 5.81 36.26 0.00 0.00 0.00 30.45 5.81 36.26
उत्तराखण्ड Uttrakhand 1.09 0.40 1.49 0.87 0.00 0.87 1.96 0.40 2.36
उत्तर अोंचल का य ग Zonal
156.11 65.11 221.22 0.87 87.72 88.59 156.98 152.83 309.81
Total
आन्ध्र प्रदे श Andhra Pr. 10.75 0.05 10.80 9.01 0.00 9.01 19.76 0.05 19.81
कनाा टक Karnataka 7.07 0.49 7.56 0.00 0.00 0.00 7.07 0.49 7.56
Page 31 of 74
केरल Kerala 3.67 0.81 4.48 0.38 0.00 0.38 4.05 0.81 4.86
तबमलनािु Tamil Nadu 12.72 0.65 13.37 2.19 0.00 2.19 14.91 0.65 15.56
तेलंगाना Telangana 15.33 0.07 15.40 12.12 0.00 12.12 27.45 0.07 27.52
दट्क्षण अोंचल का य ग Zonal
49.54 2.07 51.61 23.70 0.00 23.70 73.24 2.07 75.31
Total
गुजरात Gujarat 0.78 5.75 6.53 0.11 0.03 0.14 0.89 5.78 6.67
महाराष्ट्र Maharashtra 4.83 11.78 16.61 0.00 0.00 0.00 4.83 11.78 16.61
मध्य प्रदे श Madhya Pr. 0.33 2.23 2.56 2.01 82.14 84.15 2.34 84.37 86.71
छत्तीसगढ Chhattisgarh 8.64 0.15 8.79 9.52 0.00 9.52 18.16 0.15 18.31
पट्िम अोंचल का य ग Zonal
14.58 19.91 34.49 11.64 82.17 93.81 26.22 102.08 128.30
Total
य ग Total 235.86 100.45 336.31 53.72 169.89 223.61 289.58 270.34 559.92
*मण्डिय ों में गेहों Wheat lying
0.00 0.01 0.01 0.00 0.67 0.67 0.00 0.68 0.68
in mandies
पररचालन में स्टॉक Stock in
1.60 2.02 3.62 0.00 0.00 0.00 1.60 2.02 3.62
Transit
महाय ग Total (All India) 237.46 102.48 339.94 53.72 170.56 224.28 291.18 273.04 564.22
* Raj.(FCI 0.01 LMT,State Agencies 0.0 LMT), M.P.(FCI 0.0 LMT,State Agencies 0.67 LMT),
1.Transit figures are estimated.
2. Rice does not include unmilled paddy with FCI/State Agencies in terms of rice.
3.Total quantity of unmilled paddy with FCI and State Agencies = 310.61 LMT (FCI 0.96 LMT; State Agencies 309.65 LMT). CMR that could be derived taking out-turn ratio
as 67% = 208.11 LMT.
iv. Stock Position of Paddy & Coarse Grain with FCI and State agencies (as on 01.04.2021)
आँ कड़े लाख मीबटर क टन में (Figs. In Lakh MT)

भा॰ खा. ट्न॰ के पाि
धान PADDY म रा अनाज COARSE GRAIN
उपलब्ध चीनी
Region क्षे त्र
भा॰ खा. ट्न॰ राज्य ऐजेंट्ियाँ यग भा॰ खा. ट्न॰ राज्य ऐजेंट्ियाँ यग SUGAR WITH FCI
FCI State Agencies Total FCI State Agencies Total
बिहार Bihar 0.00 16.04 16.04 0.00 0.00 0.00 0.000
झारखण्ड Jharkhand 0.60 3.18 3.78 0.00 0.00 0.00 0.000
ओबिशा Odisha 0.10 38.81 38.91 0.00 0.00 0.00 0.000
पबिम िंगाल West Bengal 0.00 10.24 10.24 0.00 0.00 0.00 0.000
पूवव अोंचल का य ग Zonal
0.70 68.27 68.97 0.00 0.00 0.00 0.000
Total
असम Assam 0.10 0.00 0.10 0.00 0.00 0.00 0.000

अरुणाचल प्रदे श Arunachal Pr. 0.00 0.00 0.00 0.00 0.00 0.00 0.000
बिपुरा Tripura 0.00 0.00 0.00 0.00 0.00 0.00 0.000
बमजोरम Mizoram 0.00 0.00 0.00 0.00 0.00 0.00 0.000
मेघालय Meghalaya 0.00 0.00 0.00 0.00 0.00 0.00 0.000
मबणपुर Manipur 0.00 0.00 0.00 0.00 0.00 0.00 0.000
नागालैं ि Nagaland 0.00 0.00 0.00 0.00 0.00 0.00 0.000
पूवोत्तर अोंचल का य ग Zonal
0.10 0.00 0.10 0.00 0.00 0.00 0.000
Total
बदल्ली Delhi 0.00 0.00 0.00 0.00 0.00 0.00 0.000

हररयाणा Haryana 0.06 10.58 10.64 0.00 0.00 0.00 0.000
बहमाचल प्रदे श Himachal Pr. 0.00 0.00 0.00 0.00 0.00 0.00 0.000
जम्मू और कश्मीर J&K 0.07 0.00 0.07 0.00 0.00 0.00 0.000
पंजाि Punjab 0.03 84.50 84.53 0.00 0.00 0.00 0.000
राजस्थान Rajasthan 0.00 0.00 0.00 0.00 0.00 0.00 0.000
उत्तर प्रदे श Uttar Pr. 0.00 6.99 6.99 0.00 0.00 0.00 0.000
उत्तराखण्ड Uttrakhand 0.00 3.33 3.33 0.00 0.00 0.00 0.000
उत्तर अोंचल का य ग Zonal
0.16 105.40 105.56 0.00 0.00 0.00 0.000
Total
आन्ध्र प्रदे श Andhra Pr. 0.00 9.45 9.45 0.00 0.00 0.00 0.000
कनाा टक Karnataka 0.00 2.00 2.00 0.00 4.52 4.52 0.000
केरल Kerala 0.00 1.81 1.81 0.00 0.00 0.00 0.000
तबमलनािु Tamil Nadu 0.00 17.00 17.00 0.00 0.00 0.00 0.000
तेलंगाना Telangana 0.00 22.49 22.49 0.00 0.00 0.00 0.000
दट्क्षण अोंचल का य ग Zonal
0.00 52.75 52.75 0.00 4.52 4.52 0.000
Total
गुजरात Gujarat 0.00 1.10 1.10 0.00 0.09 0.09 0.000

महाराष्ट्र Maharashtra 0.00 13.74 13.74 0.00 1.11 1.11 0.000
मध्य प्रदे श Madhya Pr. 0.00 44.77 44.77 0.00 2.25 2.25 0.000
छत्तीसगढ Chhattisgarh 0.00 23.62 23.62 0.00 0.00 0.00 0.000
Page 32 of 74
पट्िम अोंचल का य ग Zonal

0.00 83.23 83.23 0.00 3.45 3.45 0.000
Total
महाय ग GRAND TOTAL 0.96 309.65 310.61 0.00 7.97 7.97 0.000
G). QUALITY CONTROL
i. Overview
The Quality Control (QC) wing of FCI manned by qualified and trained personnel is entrusted with enormous
task of procurement & preservation of foodgrains. The foodgrains are procured as per laid down Specifications
of Government of India and inspected regularly during storage to monitor the quality. Representative samples
of the stocks are drawn for physical and chemical analysis to ensure whether the quality standard meets the
parameters of laid down Specifications of Government of India. Foodgrain samples are also referred to NABL
accredited laboratories and get tested for its conformity of parameter under Food Safety and Standards Act
(FSS Act) also.
Food Corporation of India's testing laboratories spread across the country for effective monitoring of quality of
foodgrains providing quality assurance as per FSS Act 2006, leading to improved satisfaction level to the
customers (consumers).
Laboratories across the country are being upgraded with latest equipment. The IFS (Institute of Food Security)
Lab, Gurgaon is in process of upgradation to a State of Art Lab.
Divisional Labs 162

FCI's testing laboratories spread across the country (195) Regional Labs 26
ensure that the stored foodgrains meet the parameters as per Zonal Labs 5
FSSAI specifications IFS Lab 1
Hqrs Lab 1
In order to strengthen its quality control infrastructure and to enhance transparency, computerized Rice
Analyzer was introduced in rice procurement operation during KMS 2016-17 onwards and presently
computerized analysis of foodgrains has started in major procurement regions in 30 depots.
ii. Scientific Management
Quality Control and Scientific Preservation
The Food Corporation of India has an extensive and scientific stock preservation system. An on-going
programme sees that both prophylactic and curative treatment is done timely and adequately. Foodgrain stock
in storage is periodically inspected, if required fumigated and aerated by qualified trained and experienced
personnel.
The preservation of foodgrain starts, the minute it arrives in the godowns. The bags are kept on proper
dunnage material to facilitate aeration. Further till the bags are dispatched/ issued, prophylactic (preventive)
treatment to the stocks is done on an average every 15 days with MALATHION on once in three months with
DELTAMETHRIN. In case of any infestation, curative treatment is imparted to the stock with
ALUMINIUM PHOSPHIDE.
iii. QUALITY POLICY
FCI, as the nodal organization for implementing the National Food Policy, is committed to provide credible,
customer focused services, for efficient and effective food security management in the country. Our focus is:
• Professional excellence in Management of food grain
• Service quality and stake holder orientation
• Transparency and accountability in transactions
• Optimum utilization of resources
• Continual improvement of systems, processes and resources
Page 33 of 74
iv. QUALITY OBJECTIVES
• Fulfillment of all the targets set as per Government of India Food Policy from time to time.
• Monitoring of Quality in all major transactions, processes leading to improved customer satisfaction level
• Accountability for efficiency, responsiveness, performance and minimization of all losses & Wastes
• Need based up gradation of infrastructure and work environment
• Need based enhancement of knowledge & skills.
H). ENGINEERING
i. Overview
Engineering Wing of Food Corporation of India is responsible for following activities
ii. Civil:
a. Construction and Maintenance of covered godowns, plinths and ancillary structures like office block,
weigh bridge, canteen, tiffin room, isolation shed, cycle stand, toilets, roads, drains, hand pumps etc.
b. Up-gradation & maintenance of own railway sidings.
c. Construction of cement concrete roads in view of heavy vehicles plying in the godowns.
d. Construction and maintenance of FCI flats, Guest Houses, IFS, RO/DO buildings spread throughout the
country.
e. Implementation of CSR activities in FCI complexes by providing Female Lav. Block, Labour Shed, Safe
drinking water facilities and Divjangjan access to toilets.
iii. ELECTRICAL/MECHANICAL ACTIVITIES :
a. Providing Internal & External electrification to all new buildings and maintenance of existing Internal &
External Electrical installation in godowns & complexes including HT & LT installations at various
locations.
b. Replacement with LED lightings (Internal & External) for saving electric energy and effective/long life of
electrical installations system in all the godowns & offices.
c. Installation of Solar roof top panels for generation of solar energy to save electrical energy to get more
efficiency and clean environment in all depots/offices to recognize our contribution to save power & get
efficiency towards building our nation great.
d. Up-gradation of existing lorry weighbridges to fully electronic, enhancement of capacity of weigh-bridges
as well as installation of new/additional weighbridges as per requirement.
e. Operation and maintenance of 90,160 MT capacity of existing old RCC silos at Lucknow, Hapur, Mandi,
Gobindgarh, Moga & Jagraon.
iv. Others:
a. Introduction of new technologies in FCI like installation of Turbo ventilators.
There is significant addition in infrastructure of FCI after taking over of assets from Department of Food
Government of India in 1965, the engineering activities were started in 1969. There is considerable
addition to the assets of FCI contributed by Engineering Division.
Description of Item At the time of Addition Total as on

inception of FCI 31.05.2021
Storage Capacity 5.68 Lac MT *125.47 Lac MT *151.68 Lac MT
Weighbridges 12 Mech. 672+12 weigh bridges# 684 (Fully Electronic)
Railway Sidings 7 depots 100 Depots 107 Depots
Staff Quarters/Office - Nil- FCI HQ & FCI HQ &
Buildings Institute of Food Institute of Food
Security Security
3 Zonal Offices
**23 Regional Offices 3 Zonal Offices
**50 Divisional Offices
Page 34 of 74
**23Regional Offices
**50 Divisional Offices
*Total storage capacity may please be got verified from Storage Division/Hqrs.
**No. of Regional Office/D.O. may please be confirmed from E&P Division/Hqrs.
# Earstwhile Mechencial LWB have been replaced with Electronic LWBs.
I). IMPORT AND EXPORT
During 2020-21, there was no import/ export of foodgrains (Wheat & Rice) on Government account.
However, during the said period, 74,830.164 MTs of wheat (against total supply of 75,000 MT) delivered
to Ministry of External Affairs (MEA) at Economic Cost for onward shipment to Afghanistan under
Donation / Humanitarian assistance of Govt. of India. Further, 2000 MT of rice also delivered to Ministry
of External Affairs (MEA) at Economic Cost for onward shipment to Madagascar (1000 MT) and
Comoros (1000 MT) under humanitarian assistance of Govt. of India.
Moreover, 2000 MT of rice through Ministry of External Affairs (MEA) also supplied to Bhutan from
SAARC Food Bank Reserve maintained by India/FCI at CSD Dabgram depot, Divisional Office, Silliguri
(WB) at Economic Cost.
J). SILOS
Steel Silo storage with bulk handling facility is highly mechanized and modernized way of storage of
foodgrains in bulk. It ensures better preservation of foodgrains and enhances its shelf life. Accordingly,
FCI has planned to modernize its storage facilities by construction of modern steel Silos on PPP mode.
As on 31.03.2021, Silos with capacity of 10.25 LMT have been completed and put to use and 19.50 LMT
silo capacity is under implementation.
Further, to overcome the problems faced in existing silo projects, FCI is shifting to Hub & Spoke model
of silo construction under which the silos are planned to be constructed as road fed with containerized
bulk movement which would require lesser size of land than that for rail-fed silo. Hence, it would be
easier to find such land parcels by the concessionaires. The tender documents and list of locations for
silo construction (35.875 LMT (100 locations)) under Hub & Spoke model have been forwarded to M/o
CA,F&PD for approval.
Progress of Construction of Silos in 2019-21 (May 2019 to May 2021)
• The Silos at 8 locations having capacity of 4.375 LMT have been completed/put to use.
• Letter of Commencement (LOC)/ Appointed Date has been issued by FCI at 17 Locations for the
capacity of 8.5 LMT.
• The Concession Agreement signed by FCI at 9 locations for the capacity of 4.5 LMT (out of which 1
location of 0.5 LMT terminated).
• Tender awarded for the capacity of 4 LMT at 8 locations (2.5 LMT at 5 Locations by FCI and 1.5
LMT at 3 locations by State Govt. of UP).
• Hub & Spoke model: Since a number of problems like land acquisition for Railway siding, etc. have
erupted during development of Railway siding silos proposed earlier, in order to fast track the
progress of construction of steel silos, DFPD has accorded "in-principle approval" for construction of
silos under the Hub & Spoke model as proposed by FCI. The tender documents and list of 100
locations (35.8 LMT) for silo construction under Hub & Spoke model have been recommended by
HLC and have been forwarded to M/o CA,F&PD for approval.
The location wise details are as under:
PROGRESS OF CONSTRUCTION OF SILOS IN 2019-21

(MAY 2019 TO MARCH 2021)
A) Silos Completed:
SL State Location Agency (FCI/ State Capacity Date of starting
Govt) (in LMT) operation
1 Punjab Barnala FCI 0.50 26.04.2019
2 Punjab Patiala FCI 0.50 14.06.2019*
3 Punjab Sangrur FCI 1.00 30.04.2020*
4 Bihar Katihar FCI 0.50 31.03.2021
5 Gujarat Ahmedabad FCI 0.50 31.03.2021
Page 35 of 74
6 Haryana Bhattu# FCI 0.375 19.04.2021*

7 Haryana Sonepat FCI 0.50 31.03.2021*
8 Haryana Jind FCI 0.50 31.03.2021*
Total 4.375
* Operationalization has commenced without railway siding
# Partially completed for a capacity of 37500 MT out of total capacity 50000 MT.
Page 36 of 74
5. ORGANISATION STRUCTURE
i. Organizational Setup:
The Food Corporation of India coordinates its functions through a country wide network of offices with
Headquarters at New Delhi, 5 Zonal Offices, 26 Regional Offices and 160 Divisional Offices.
ii. Staff Position as on 31.12.2020:
The category wise staff position for the quarter ending 31.12.2020 is as under:
CATEGORY SANCTIONED STRENGTH MEN IN POSITION
Category -I 1,111 881
Category -II 6,221 4,183
Category -III 27,345 14,462
Category -IV 7,361 2465
TOTAL 42,038 21,991
Page 37 of 74
ORGANISATIONAL STRUCTURE OF FOOD CORPORATION OF INDIA
Page 38 of 74
6. KEY OPERATIONAL & FINANCIAL PARAMETERS OF THE ISSUER FOR THE LAST 4 YEARS
(Rs. in lacs)
Sl. Parameters FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18
(Limited review) (Audited) (Audited) (Audited)
1 Networth 551,565.19 4,47,565.19 342,665.19 286,365.19
2 Total Debt
of which:
a. Non-Current Maturities
of Long Term 3,700,000.00 2,15,20,000.00 16,033,770.00 10,700,000.00
Borrowing
b. Short Term Borrowing 2,330,164.58 44,67,190.46 9,264,467.61 8,237,648.42
3. Fixed Assets 128,053.10 1,22,075.99 108,286.72 93,632.09
4 Non-Current Assets 140,037.84 1,07,105.82 215,538.64 232,954.61
5 Cash and Cash
10.86 27.67 354.12 444.39
Equivalents
6 Current Assets 9,860,554.14 3,60,47,683.79 27,504,776.52 21,433,337.22
7 Current Liabilities 5,877,090.77 1,43,09,328.08 11,452,521.01 2,536,354.70
8 Sales 2,478,991.22 23,59,205.10 3,155,466.78 1,803,519.69
9 Other Income(subsidy
on Food grains+other
Reciepts+Other 21,224,627.17 1,50,20,000.25 13,290,589.47 13,046,807.59
Income/(Accretion)in
Inventories)
10 Total Income 23,703,618.39 1,73,79,205.35 16,446,056.25 14,850,327.28
11 Interest Expense 2,907,425.07 19,63,352.19 1,326,000.31 890,661.08
12 Loss/(Profit)Before Tax 0 0 0 0
13 Loss/(Profit)carried to
0 0 0 0
Balance Sheet
Note:- Audit of accounts of FY 2020-21 by C&AG is under process hence not available for disclosure in IM accordingly limited
reviewed financial statements for FY ended 31.03.2021 is included as Annexure H as per SEBI’s permission.
7. GROSS DEBT EQUITY RATIO OF THE ISSUER

(Rs. in lacs)
Particulars Pre-Issue Post Issue of Bonds of
(as on 31.07.2021) Rs. [●] lacs *
TOTAL DEBT
Total Debt (Long Term) 3,700,000.00 [●]
SHAREHOLDERS’ FUNDS
Net Worth 801,565.19 [●]
GROSS DEBT/ EQUITY RATIO
Gross Debt/ Equity Ratio (times) 4.61 [●]
* after adding the Proposed Bonds Series X of Rs. [●] lacs to the figures of 31.07.2021.
8. PROJECT COST AND MEANS OF FINANCING, IN CASE OF FUNDINGOF NEW PROJECTS
The funds being raised by the Issuer through present issue of Bonds are not meant for financing any particular project.
The Issuer shall utilise the proceeds of the Issue for its regular business activities and other associated business
objectives such as discharging existing debt obligations which were generally undertaken for business operations.
9. SUBSIDIARIES OF THE ISSUER
The Corporation does not have any subsidiary as on the date of this Draft Disclosure Document.
Page 39 of 74
VII. BRIEF HISTORY OF ISSUER SINCE INCORPORATION, DETAILS OF ACTIVITIES INCLUDING ANY
REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES IN CAPITAL STRUCTURE,
(AUTHORIZED, ISSUED AND SUBSCRIBED) AND BORROWINGS
1. BRIEF HISTORY OF THE ISSUER
Food Corporation of India (FCI) was constituted under The Food Corporations Act 1964.
Since its inception in 1965, having handled various situations of plenty and scarcity, FCI has successfully met the
challenge of managing the complex task of providing food security for the nation. A strong food security system which
has helped to sustain the high growth rate and maintain regular supply of wheat and rice right through the year. The
efficiency with which FCI tackled one of the worst droughts of the century not only cemented its role as the premier
organization in charge of food security in India, but also brought it accolades from international organizations. Today it
can take credit for having contributed a great deal in transforming India from a chronically food deficit country to one
that is self-sufficient.
To provide an effective food security system in the country, FCI, through a series of operations, simultaneously
provides market and price assurance for the surplus foodgrains, giving impetus to sustain higher yields in a post-green
revolution era and ensures stability in food supplies to the people all over the country, specially the vulnerable
sections.
Further the Government of India regularly provides funds to FCI to meet the cost of fixed assets like Godowns, Silos,
Railway Sidings and Weighbridges and for financing the foodgrains and sugar operations entrusted to Corporation by
the Government of India. The working capital requirements of the Corporation are met through a consortium of 53
Bankers and loans from Government of India.
The Corporation purchases the foodgrains for the Central Pool at the ‘Procurement Prices’ and issues the same at the
‘Central Issue Prices’ fixed by the Government of India. The issue price so fixed does not cover the full cost incurred
by the Corporation in the procurement, storage, movement and distribution of foodgrains. The difference represents
the consumer subsidy for the Public Distribution System, and is paid to the Corporation by the Government of India.
The Corporation also maintains buffer stock of foodgrains on behalf of the Government of India and the carrying
charges of the buffer stocks are also reimbursed by the Government to the Corporation.
2. CAPITAL STRUCTURE (as on 31.07.2021)

(Rs. in lacs)
Particulars Amount
1. SHARE CAPITAL
a. Authorised Equity Share Capital 1000000.00
b. Issued Equity Share Capital 803657.64
c. Subscribed & Paid-up Equity Share Capital 803657.64
2. SHARE PREMIUM ACCOUNT -
3. EQUITY SHARE CAPITAL HISTORY OF THE ISSUER FOR LAST FIVE YEARS & UPTO 31.07.2021
Sl. No. Financial Year Capital Infusion* (Rs. in lacs) Cumulative Capital (Rs. in lacs)
1. 2013-14 300 267595
2. 2014-15 8684 276279
3. 2015-16 6770 283049
4. 2016-17 3059 286108
5. 2017-18 2350 288458
6. 2018-19 56300 344758
7. 2019-20 104900 449658
8. 2020-21 104000 553658
9. 2021-22( as on 31.07.2021) 250000 803658
* Capital has been contributed by the Government of India out of planned funds.
4. CHANGES IN AUTHORISED SHARE CAPITAL OF THE ISSUER FOR LAST FIVE YEARS & UPTO
31.07.2021
Particulars of change Amount Date of change (AGM/ EGM)
Authorised Capital increased by Government of India Rs 650000 lacs 03.01.2020 as published in the
Gazette of India
Page 40 of 74
5. DETAILS OF ANY ACQUISITION OR AMALGAMATION IN THE LAST 1 YEAR
None
6. DETAILS OF ANY REORGANIZATION OR RECONSTRUCTION IN THE LAST 1 YEAR
None
7. SHAREHOLDING PATTERN OF THE ISSUER AS ON 31.07.2021
Entire paid up equity capital of Rs. 803658 lacs was held by the Government of India.
8. TOP 10 EQUITY SHARE HOLDERS OF THE ISSUER (as on 31.07.2021)
9. PROMOTER HOLDING IN THE ISSUER (as on 31.07.2021)
10. BORROWINGS OF THE ISSUER (as on 31.07.2021)
a) SECURED LOAN FACILITIES
Lender’s Name Type of Amount Repayment Security

Facility Sanctioned Date/
(Rs. in lacs) Schedule
Food Credit Cash Credit 949500.00 Not Stock/Guarantee from
Consortium Limit with applicable the GoI
SBI
b) UNSECURED LOAN FACILITIES
I. National small saving Fund loans(NSSF) :-
Department of Economic Affairs, Ministry of Finance, Govt. Of India has sanctioned loan of Rs.4,26,636 crores during
2016-17 to 2020-21, in lieu of food subsidy, as off-balance sheet expenditure of the Government. These loans were
for a period of 5 years and to were to be repaid in 5 equal annual instalments. However, these Loans have been fully
repaid during 2020-21, out of additional subsidy provided by GoI. Details of NSSF loan as on 31.03.2021 is as under:-
Status of NSSF Loan by Government of India

(Rs. In Crore)
Year Opening Loan Repayment Outstanding as Rate of Interest
Balance as on Sanctioned & During the F.Y on 31st, March
1st April Availed During
F.Y
2016-17 NIL 70,000.00 NIL 70,000.00 Ranging From
2017-18 70,000.00 65,000.00 14,000.00 1,21,000.00 7.40% to 8.80%
2018-19 1,21,000.00 97,000.00 27,000.00 1,91,000.00
2019-20 1,91,000.00 1,10,000.00 46,400.00 2,54,600.00
2020-21 2,54,600.00 84,636.00 3,39,236.00 NIL
II. Short Term Loans (STL) :-
Details of outstanding STL as on 31.07.2021 is as under:-
Amount of Loan (Rs. in

Lender’s Name Date of availment Due Date of repayment
Lakhs)
Union Bank of India 200,000 16-June-21 16-Sep-21
Union Bank of India 200,000 30-June-21 30-Sep-21
Union Bank of India 200,000 16-July-21 16-Oct-21
Page 41 of 74
Punjab National Bank 50,000 30-July-21 30-Oct-21

Total 1,185,000
III. NON-CONVERTIBLE BONDS/ DEBENTURES AS ON 31.07.2021
Details of Unsecured Govt. of India guaranteed Bonds issued and outstanding are as under:
Bond/ Deemed Tenure Coupon Amount Redemption Credit Rating Secured/

Debenture Date of (in Yrs) Rate Outstanding Date Unsecured
Series Allotment (% p.a.) (Rs. in lacs)
Series-V(B) 22.03.2013 15 8.80 470000 22.03.2028 AAA(CE)/ Unsecured*^
Stable by
CRISIL
&AAA(CE)/
Stable by ICRA
Series-V(A) 22.03.2013 10 8.62 30000 22.03.2023 AAA(CE)/ Unsecured*^
Stable by
CRISIL &
AAA(CE)/
Stable by ICRA
Series-VI 07.03.2014 8 9.95 800000 07.03.2022 AAA(CE) )/ Unsecured*
Stable by
CRISIL&CARE
Series-VII 01.03.2019 10 8.95 273770 01.03.2029 AAA(CE)/ Unsecured*
Stable by
CRISIL&CARE
Series-VIII 12.12.2019 10 7.64 800000 12.12.2029 AAA(CE)/ Unsecured*
Stable by
CRISIL&CARE
Series-VII A 09.01.2020 10 7.60 526230 09.01.2030 AAA(CE)/ Unsecured*
Stable by
CRISIL&CARE
Series-IX 23.10.2020 10 6.65 800000 23.10.2030 AAA(CE)/ Unsecured*
Stable by ICRA
& CARE
Total 3700000
* Government of India Guaranteed Bonds.
^ A paripassu charge is created on the FCI Regional Office Building situated at Vejalpur, Ahmedabad in favour of
M/s IDBI Trusteeship Services Limited -Trustee to Bonds issued by FCI against Bonds series VA and VB.
11. TOP 10 BONDHOLDERS (as on 31.07.2021)

Sr. Name of bondholder * Total No. of Total amount
No. Bonds held of bonds held
(Rs. in crore)
1. STATE BANK OF INDIA 40950 4095.00
2. CBT-EPF 36840 3684.00
3. NPS TRUST - A/C HDFC PENSION MANAGEMENT COMPANY LIMITED 31672
SCHEME G - TIER I 3167.20
4. AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C 18830
AXIS EQUITY HYBRID FUND 1883.00
5. SBI LIFE INSURANCE CO.LTD 17639 1763.90
6. EMPLOYEES' STATE INSURANCE CORPORATION A/C UTI ASSET 15200
MANAGEMENT COMPANY LIMITED 1520.00
7. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED 14749 1474.90
8. ICICI PRUDENTIAL BANKING & PSU DEBT FUND 13905 1390.50
9. HDFC TRUSTEE COMPANY LTD A/C HDFC CORPORATE BOND FUND 8876 887.60
10. PUNJAB NATIONAL BANK 8000 800.00
*The investments by above entities through their sub-schemes with same PAN have been clubbed.
Note: Top 10 holders’ of bonds have been shown on a cumulative basis for all outstanding bonds.
12. AMOUNT OF CORPORATE GUARANTEES ISSUED BY THE ISSUER IN FAVOUR OF VARIOUS

COUNTER PARTIES INCLUDING ITS SUBSIDIARIES, JOINT VENTURE ENTITIES, GROUP COMPANIES
Page 42 of 74
ETC.
The Issuer has not issued any corporate guarantee in favour of any counterparty including its subsidiaries,
joint venture entities, group companies etc.
13. COMMERCIAL PAPER ISSUED BY THE ISSUER (as on 31.07.2021)
Nil
14. OTHER BORROWINGS (INCLUDING HYBRID DEBT LIKE FOREIGN CURRENCY CONVERTIBLE BONDS
(“FCCBs”), OPTIONALLY CONVERTIBLE BONDS/ DEBENTURES/ PREFERENCE SHARES)
(as on 31.07.2021)
The Issuer has not issued any hybrid debt like Foreign Currency Convertible Bonds (“FCCBs”), Optionally
Convertible Debentures, Preference Shares etc.
15. SERVICING BEHAVIOUR ON EXISTING DEBT SECURITIES, DEFAULT(S) AND/OR DELAY(S) IN

PAYMENTS OF INTEREST AND PRINCIPAL OF ANY KIND OF TERM LOANS, DEBT SECURITIES AND
OTHER FINANCIAL INDEBTEDNESS INCLUDING CORPORATE GUARANTEE ISSUED BY THE ISSUER,
IN THE PAST 5 YEARS
a) The main constituents of the Issuer’s borrowings are generally in the form of loans from banks, GOI,
bonds etc.
b) The Issuer has been servicing all its principal and interest liabilities on time and there has been no
instance of delay or default since inception.
c) The Issuer has neither defaulted in repayment/ redemption of any of its borrowings nor affected any
kind of roll over against any of its borrowings in the past.
d) The Issuer has not defaulted in any of its payment obligations arising out of any corporate guarantee
issued by it to any counterparty including its subsidiaries, joint venture entities, group companies etc in
the past.
16. OUTSTANDING BORROWINGS/ DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER THAN
CASH, WHETHER IN WHOLE OR PART, AT A PREMIUM OR DISCOUNT, OR IN PURSUANCE OF AN
OPTION
The Issuer confirms that other than and to the extent mentioned elsewhere in this Draft Disclosure Document,
it has not issued any debt securities or agreed to issue any debt securities or availed any borrowings for a
consideration other than cash, whether in whole or in part, at a premium or discount or in pursuance of an
option since inception.
17. DETAILS OF ALL DEFAULT/S AND/OR DELAY IN PAYMENTS OF INTEREST AND PRINCIPAL OF ANY
KIND OF TERM LOANS, DEBT SECURITIES AND OTHER FINANCIAL INDEBTEDNESS INCLUDING
CORPORATE GUARANTEE ISSUED BY THE COMPANY, IN THE PAST 5 YEARS
Nil
Page 43 of 74
18. AUDITED FINANCIAL INFORMATION OF THE ISSUER

Since the Corporation does not have any subsidiary Company, the standalone and consolidated financials of
the Corporation shall be the same.
a) STATEMENT OF PROFIT & LOSS (Rs. in lacs)

Sr. Particulars FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18
No. (Limited review) (Audited) (Audited) (Audited)
I. INCOME
1 Revenue
(a) Sale 2,478,991.22 23,59,205.10 3,155,466.78 1,803,519.69
(b) Subsidy on Foodgrains 21,527,060.73 1,32,40,787.35 12,035,162.55 11,628,168.50
(c) Other Receipts - 3,744.29 39,986.63 22,128.59
2 Other Income 55,091.91 1,33,565.57 168,796.43 211,741.55
3 Accretion/ Decretion in
(357,425.46) 16,41,903.04 1,046,643.86 1,184,768.95
Inventories
Total (I) 23,703,618.39 1,73,79,205.35 16,446,056.25 14,850,327.28
II. EXPENDITURE
1 Purchase 18,571,314.60 1,33,96,927.95 13,340,473.05 11,997,166.75
2 Milling Charges 63,371.82 48,872.52 47,774.68 49,746.20
3 Freight 1,065,049.23 7,19,402.10 813,878.12 869,021.51
4 Storage Cost 340,032.97 3,16,724.14 275,028.00 271,339.91
5 Handling Expenses 440,041.77 4,34,164.29 347,122.38 366,185.24
6 Employees Remuneration
268,518.77 3,38,457.76 211,399.95 227,701.02
and Benefits
7 Other Expenses 38,569.13 1,47,617.79 72,342.53 174,043.16
9 Depreciation and
Amortization on:
(a) Fixed Assets 10,269.53 8,931.03 10,302.83 10,428.08
(b) Intangible Assets 312.00 229.26 1,036.06 408.67
9 Interest 2,907,425.07 19,63,352.19 1,326,000.31 890,661.08
10 Expense pertaining to
(1,286.49) 4,526.32 698.34 (6,374.34)
Prior Years (Net)
Total (II) 23,703,618.39 1,73,79,205.35 16,446,056.25 14,850,327.28
Excess of Expenditure
over Income
Income pertaining to Prior
Years (Net)
11 Loss/(Profit) Before Tax 0 0 0 0
12 Loss/(Profit) carried to 0 0 0 0
Balance Sheet
Page 44 of 74
b) STATEMENT OF ASSETS & LIABILITIES (Rs. in lacs)

Sr. Particulars As on As on As on As on
No. 31-03-21 31-03-20 31-03-19 31-03-18
(Limited review) (Audited) (Audited) (Audited)
I. LIABILITIES
1 Shareholders’ Funds
(a) Share Capital 553,657.64 4,49,657.64 344757.64 288,457.64
(b) Reserves and Surplus (2,092.45) (2,092.45) (2,092.45) (2,092.45)
2 Non-Current Liabilities
Long-Term Borrowings 3,700,000.00 2,15,20,000.00 16,033,770.00 10,700,000.00
3 Current Liabilities
(a) Short-Term Borrowings 2,330,164.58 44,67,190.46 9264467.61 8,237,648.42
(b) Trade Payables 2,626,589.18 22,91,009.74 1704502.87 1,999,112.46
(c) Other Current Liabilities 920,337.00 75,51,127.88 483550.53 537,242.24
TOTAL (1+2+3) 10,128,655.95 3,62,76,893.27 27,828,956.20 21,760,368.31
II. ASSETS
1 Non-Current Assets
a) Fixed Assets
i) Tangible Assets 104,557.93 102703.16 94,213.20 88,125.78
ii) Intangible Assets 427.41 348.89 252.28 276.73
iii) Capital Work in 23,067.76 13821.44 5,229.58
19,023.94
Progress
b) Long Term Loans and 139,307.30 212409.43 229,659.35
1,03,892.73
Advances
c) Other Non-Current Assets 730.55 3,213.09 3129.21 3,295.26
2 Current Assets
a) Inventories 9,699,092.83 1,00,56,567.39 8414631.27 7,367,988.18
b) Trade Receivables 8,835.27 2,58,72,990.13 18965033.72 13,919,405.65
c) Cash and Cash 10.86 354.12 444.39
27.67
equivalents
d) Short-Term Loans and 56,149.87 36536.55 29,399.98
29,160.22
Advances
e) Other Current Assets 96,476.18 88,966.05 88574.98 116,543.41
TOTAL (1+2) 10,128,655.95 3,62,76,893.27 27,828,956.20 21,760,368.31
c) CASH FLOW STATEMENT (Rs. in lacs)

Particulars FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18
(Limited (Audited) (Audited) (Audited)
Review)
Cash Flow Operating Activities
Net Profit/(Loss) before Taxation - 0 0 -
Adjustments for:
Depreciation 10269.53 8,931.03 10,302.83 10,428.08
Amortisation 312.00 229.26 1,036.06 408.67
Interest Expense 2907425.07 19,63,352.19 1,326,000.31 890,661.08
Debts written off 2985.84 1,02,932.46 9,831.76 6,645.49
Deferred Revenue Expenditure 0.00 267.29 293.17 98.13
written off
Loss on Sale of Asset -22.23 -55.13 -101.66 -453.34
Foreign Exchange Variance 0.00 0.02 0.04 0.06
Operating profit before working 2,920,970.21 20,75,657.12 1,347,362.51 907,788.17
capital changes in
Inventories 357,474.56 -16,41,936.12 -1,046,643.09 -1,184,768.22
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Trade Recievable 25,861,169.02 -70,10,888.87 -5,055,459.82 -5,467,528.14

Other Current Assets -3,258.72 -259.01 24,438.52 77,490.63
Loans and Advances, Deposits & -60,057.00 1,15,893.03 10,113.35 21,293.53
Other Claim Receivables
Trade Payable -1,730,995.13 4,76,788.06 -902,141.40 1,064,425.67
Sugar Price Equalisation Fund -0.01 - -2,018.62 -220.00
IGST INPUT 4.02 -4.02 - -
Fixed Deposit Receipt -24.02 70.41 - -
Deposits Repayable 46,574.57 57,118.79 -14,868.23 -31,976.16
Other Current Liability -15,717.65 15,533.69 -7,388.89 -42,092.45
Misc. Expenditure (to the extent not - -212.05 -328.24 -446.66
written off or adjusted)
Price Stabilisation Fund -6,759.45 11,639.70 -107,481.51 28,931.17
Advance Payment of Income Tax -4096.08 - 0.03
Net Cash generated from operating 27,365,284.32 -59,00,599.27 -5,754,415.39 -4,627,102.46
activities
Cash flow from Investing activities:
Sale of Fixed Assets - 86.65 132.95 548.44
Purchase of Fixed Assets -16536.40 -22,980.88 -26,025.01 -15,939.25
Net Cash used in Investing -16,536.40 -22,894.23 -25,892.06 -15,390.81
activities
Cash Flow from Financing
activities:
Capital subscribed by Government of 104,000.00 1,04,900.00 56,300.00 2,349.87
India
Long Term Borrowing through GOI -25,460,000.00 63,60,000.00 7,000,000.00 5,100,000.00
Loans & Advances from Banks -117,025.88 -1,04,677.15 -290,780.81 303,624.06
Interest Payable 231,686.23 2,00,403.96 66,896.49 127,065.22
Interest Expense -2,907,425.07 -19,63,352.19 -1,326,000.31 -890,661.08
Bond Raised 800,000.00 13,26,230.00 273,770.00
Net cash used in financing -27,348,764.72 59,23,504.62 5,780,185.37 4,642,378.07
activities
Net increase in cash and cash -16.81 11.12 -122.08 -115.20
equivalents
Cash and cash equivalents at the 27.67 16.55 138.64 253.84
beginning of the year
Cash and cash equivalents at the 10.86 27.67 16.55 138.64
end of the year
Auditor qualification for the years ended March 31, 2020, 2019 and 2018 are attached as Annexure L, M & N to this
Page 46 of 74
19. MATERIAL EVENT, DEVELOPMENT OR CHANGE AT THE TIME OF ISSUE
The Issuer hereby confirms that there has been no material event, development or change having implications
on the financials/ credit quality of the Issuer (e.g. any material regulatory proceedings against the Issuer/
promoters of the Issuer, tax litigations resulting in material liabilities, corporate restructuring event etc) at the
time of Issue which may affect the Issue or the investor’s decision to invest/ continue to invest in the debt
securities of the Issuer.
20. The detailed rating rationale (s) adopted (not older than one year on the date of opening of the issue)/
credit rating letter issued (not older than one month on the date of opening of the issue) by the rating
agencies shall be disclosed.
The rating letters along with detailed rating rationale are attached as Annexure A & B of this Disclosure
Document
21. If the security is backed by a guarantee or letter of comfort or any other document / letter with similar
intent, a copy of the same shall be disclosed. In case such document does not contain detailed
payment structure( procedure of invocation of guarantee and receipt of payment by the investor along
with timelines), the same shall be disclosed in the offer document.
Issuer has entered into a Guarantee Agreement dated 15.07.2021 executed by and between Ministry of
Consumer Affairs, Food & Public Distribution (Department of Food & Public Distribution), Government of India,
Food Corporation of India and SBICAP Trustee Company Ltd. conveying the unconditional and irrevocable
guarantee and continuing obligation for payment of principal amount of the Bonds issued by Food Corporation
of India, accrued interest thereon and any other amount due towards the Bondholders agreed to be
guaranteed by the GOI in favour of the Trustees vide letters No.,F.No. No.11019/1/2017-FC-II&III(Pt. 1) dated
30.06.2021, copy of which is attached as an annexure to this Draft Disclosure Document.
22. Disclosures pertaining to wilful default
1. In case of listing of debt securities made on private placement, the following disclosures shall be
made:
(a) Name of the bank declaring the entity as a willful defaulter
(b) The year in which the entity is declared as a willful defaulter
(c) Outstanding amount when the entity is declared as a willful defaulter
(d) Name of the entity declared as a willful defaulter
(e) Steps taken, if any, for the removal from the list of willful defaulters
(f) Other disclosures, as deemed fit by the issuer in order to enable investors to take informed decisions
(g) Any other disclosure as specified by the Board
“None of the above is applicable in the case of FCI, as FCI has never defaulted in any of its payment
obligations”.
2. The fact that the issuer or any of its promoters or directors is a wilful defaulter shall be disclosed
prominently on the cover page with suitable cross-referencing to the pages.
“Not Applicable”
3. Servicing Behaviour on Existing Debts
“The issuer has been servicing all its interest liabilities on time and there has been no instance of delay or
default on the Existing Debts of FCI".
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VIII. SUMMARY TERM SHEET
Issuer Food Corporation of India (“FCI”/ the “Corporation”/ the “Issuer“).

Issue Size Rs.2,000 crore
Option to retain Rs.6,000 crore
oversubscription
Security Name [●]%-FCI-2031
Objects of the Issue Augmenting long-term resource of the Issuer
and utilization of issue
proceeds
Type and nature of Government of India Guaranteed Redeemable Non-Convertible Unsecured Taxable
Instrument Bonds (Series X) in the nature of Debentures (“Bonds”)
Issuance Mode In demat mode only
Trading Mode In demat mode only
Credit Rating CRISIL AAA (CE)/Stable by CRISIL and CARE AAA(CE)/Stable by CARE
Seniority Senior and Unsubordinated
Mode of Issue Private Placement
Government The Government of India has unconditionally and irrevocably guaranteed the repayment
Guarantee of principal amount of Bonds to be issued by FCI for an aggregate nominal amount of
Rs.8,000 crore and interest thereon. The said guarantee has been executed vide
Guarantee Agreement dated 15.07.2021 by and between Ministry of Consumer Affairs,
Food & Public Distribution (Department of Food & Public Distribution), Government of
India, Food Corporation of India and SBICAP Trustee Company Ltd. in the capacity of
Trustees for the Bondholders.
Description regarding The Bonds are secured by way of unconditional and irrevocable guarantee from the
Security (where Government of India towards repayment of principal amount of the Bonds and interest
applicable) including thereon. Since full face value amount of Bonds along with interest thereon are secured by
type of security way of unconditional and irrevocable guarantee from the Government of India towards
(movable/immovable/t repayment of principal amount of the Bonds and interest thereon, no separate security
angible etc.), type of (movable, immovable and tangible) has been provided.
charge (pledge/
hypothecation/
mortgage etc.), date of
creation of security/
likely date of creation
of security, minimum
security cover,
revaluation,
replacement of
security, interest to the
debenture holder over
and above the coupon
rate as specified in the
Trust Deed and
disclosed in the Offer
Document/ Information
Memorandum
Structured Payment The Guarantee Agreement provides for a Structured Payment Mechanism whereby a
Mechanism Designated Trust & Retention Account (“TRA”) in the name of “Food Corporation of India
[FCI]-Bond Account” shall be opened exclusively for the benefit of the Trustee (on behalf
of the Bondholders). The following payment structure (wherein “T1” is assumed to be the
due date for interest payments, “T2” is assumed to be the due date for principal
repayment of the Bonds) and “T3” is assumed to be the date when acceleration of
payment of principal and interest is contemplated) is envisaged for meeting the
obligations on the rated Bonds.
Interest Payments
Trigger Date Action Point
(T1-30)th day* Trustees to inform FCI and the GOI in writing regarding the due
date for payment of interest amount so that necessary
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arrangements could be made for meeting the interest payment

obligations on the Bonds.
(T1-8)th day* The Designated Trust and Retention Account is to be funded by
FCI to the tune of the interest obligations on the Bonds.
(T1-7)th day* If the Designated Trust and Retention Account is not funded to the
requisite extent by (T1-8)th day, the Trustees shall forthwith invoke
the GOI Guarantee by sending a Notice of Invocation to GOI.
(T1-3)th day* Last date by which GOI shall deposit requisite funds in the
Designated Trust and Retention Account as per the Notice of
Invocation served by the Trustees.
* If any Coupon Payment Date falls on a day that is not a Business Day, the payment
shall be made by the Issuer on the following working day in line with SEBI circular No
CIR/IMD/DF-1/122/2016 dated November 11, 2016.
Principal Repayment
(T2-30)th day* Trustees to inform FCI and the GOI in writing regarding the due
date for repayment of principal amount so that necessary
arrangements could be made for meeting the principal repayment
(T2-8)th day* The Designated Trust and Retention Account is to be funded by
FCI to the tune of the principal obligations on the Bonds.
(T2-7)th day* If the Designated Trust and Retention Account is not funded to the
requisite extent by (T2-8)th day, the Trustees shall forthwith invoke
(T2-3)th day* Last date by which GOI shall deposit requisite funds in the
* If the Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on
a day that is not a Business Day, the redemption proceeds shall be paid by the Issuer on
the immediately preceding Business Day along with interest accrued on the Bonds until
but excluding the date of such payment.
Payment Mechanism in case of Acceleration
(T3+1)th day Trustees to inform FCI and the GOI in writing regarding the due date
for repayment of principal and interest amount so that the necessary
arrangements could be made for meeting its obligations under
acceleration.
(T3+8)th day The Designated Trust and Retention Account is to be funded by FCI
to the tune of principal and interest obligations under acceleration.
(T3+9)th day If the Designated Trust and Retention Account is not funded to the
requisite extent by (T3+8)th day, the Trustees shall forthwith invoke
(T3+15)th day Last date by which GOI shall deposit requisite funds in the
Face Value Rs. 10 lacs per Bond
Premium/ Discount on Nil
issue
Issue Price At par (Rs. 10 lacs) per Bond
Premium/ Discount on Nil
redemption
Redemption Amount At par (Rs. 10 lacs) per Bond
Redemption date 13.08.2031
Minimum Application 1 bonds ( Rs. 10 lacs ) and then in multiples of 1 bonds ( Rs. 10 lacs) thereafter
Tenor 10 Years from the Deemed Date of Allotment
Put & Call Option None
Put Option Price Not applicable
Put Option Date Not applicable
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Put Notification Time Not applicable

Call Option Price Not applicable
Call Option Date Not applicable
Call Notification Time Not applicable
Redemption/ Maturity At par at the end of 10th year from the Deemed Date of Allotment
Coupon Rate [●]% p.a. (to be decided through EBP)
Step Up/ Step Down None
Coupon Rate
Coupon Payment Annual
Frequency
Coupon Payment Annually on August 13, of each year till maturity of Bonds
Date
Coupon Type Fixed
Coupon Reset None
Process (including
rates, spread, effective
date, interest
rate cap and floor etc)
Default Interest Rate 1. In the event of delay in the payment of interest amount and/ or principal amount on
the due date(s), the Issuer shall pay additional interest of 2.00% per annum in
addition to the Coupon Rate payable on the Bonds, on such amounts due, for the
defaulting period i.e. the period commencing from and including the date on which
such amount becomes due and upto but excluding the date on which such amount is
actually paid.
2. Delay in Listing: In case of delay in listing of the Debt Securities within 4 (four)
trading days from the date of Issue closure, the Company will:
(a) pay penal interest of 1% (one per cent) p.a. over the coupon rate from the expiry
of 4 (four) days from the deemed date of allotment till the listing of such Debt
Securities to the investor;
(b) be permitted to utilise the issue proceeds of its subsequent two privately placed
issuances of securities only after receiving final listing approval from Stock
Exchanges.
The interest rates mentioned in above covenants shall be independent of each other.
Day Count Basis Actual/ Actual
Interest shall be computed on an “actual/actual basis”. Where the interest period (start
date to end date) includes February 29, interest shall be computed on 366 days-a-year
basis
Interest on Application Interest at the Coupon Rate (subject to deduction of income tax under the provisions of
Money the Income Tax Act, 1961, or any other statutory modification or re-enactment thereof, as
applicable) will be paid to the applicants on the application money for the Bonds for the
period starting from and including the date of realization of application money in Issuer’s
Bank Account upto one day prior to the Deemed Date of Allotment. The issuer shall not
be liable to pay any interest in case of invalid applications or applications liable to be
rejected including applications made by person who is not an eligible investor.
Listing (including Proposed on the Wholesale Debt Market (WDM) Segment of National Stock Exchange of
name of stock India Ltd. (“NSE”). NSE shall be the Designated Stock Exchange. The Issuer shall make
Exchange(s) where it listing application and shall receive listing approval from NSE within 4 trading days after
will be listed and the Issue Closing Date
timeline for listing) /
Designated Stock
Exchange)
Trustees SBICAP Trustee Company Ltd.
Depository National Securities Depository Limited and Central Depository Services (India) Limited
Registrars Beetal Financial & Computer Service (P) Ltd.
Settlement Payment of interest and repayment of principal shall be made by way of credit through
Page 50 of 74
direct credit/ NECS/ RTGS/ NEFT/Cheque mechanism and any other electronic payment
mode.
Business Day/ Working Days shall be all days on which commercial banks/ money markets are open for
Working Day business in the city of Mumbai. As per notification dated 20 August 2015, only such dates
Convention that fall on second and fourth Saturday of every month have been considered as non-
business day. Further, Sundays, have also been considered as non-Business Days. We
have not considered the effect of public holidays as it is difficult to ascertain for future
dates.
If any of date(s) defined in the Draft Disclosure Document, except the Deemed Date of
Allotment, fall on a day that is not a business day, the next working day shall be
considered as the effective date(s) in line with SEBI circular No CIR/IMD/DF-1/122/2016
dated November 11, 2016.
Record Date 15 days prior to each Coupon Payment Date and Redemption Date.
Effect of holidays If the interest payment date falls on a holiday, the payment may be made on the following
working day however the dates of the future coupon payments would be as per the
schedule originally stipulated at the time of issuing the security in line with SEBI circular
No CIR/IMD/DF-1/122/2016 dated November 11, 2016.
If the Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on
a day that is not a Business Day, the redemption proceeds shall be paid by the Issuer on
the immediately preceding Business Day along with interest accrued on the Bonds until
but excluding the date of such payment.
Mode of Subscription As per SEBI circular dated January 5th, 2018 read with SEBI Circular dated August 16,
2018 and operational guidelines of BSE
Eligible Investors All QIBs, and any non-QIB Investors specifically mapped by the Issuer on the BSEBOND
– EBP Platform, are eligible to bid / invest / apply for this Issue.
All investors are required to comply with the relevant regulations/ guidelines applicable to
them for investing in this Issue.
Transaction The Issuer has executed/ shall execute the documents including but not limited to the
Documents following in connection with the Issue:
1. Letter appointing Trustees to the Bondholders;

2. Bond/ Debenture Trusteeship Agreement;
3. Rating Agreement with CRISIL including rating letters along with rating rationale;
4. Rating Agreement with CARE including rating letters along with rating rationale;
5. Tripartite Agreement between the Issuer; Registrar and NSDL for issue of Bonds in
dematerialized form;
6. Tripartite Agreement between the Issuer, Registrar and CDSL for issue of Bonds in
7. Letter appointing Registrar and Agreement entered into between the Issuer and the
Registrar;
8. Application made to NSE for seeking its in-principle approval for listing of Bonds;
9. Listing Agreement with NSE;
10. Letters appointing Arrangers to the Issue;
11. Designated Trust and Retention Account Agreement.
12. This Draft Disclosure Document
13. Guarantee Agreement by and between Ministry of Consumer Affairs, Food & Public
Distribution (Department of Food & Public Distribution), Government of India, Food
Corporation of India and SBICAP Trustee Company Ltd. in the capacity of Trustees
for the Bondholders
14. Board Resolution dated 08.07.2021 authorizing issue of Bonds offered under terms
of this Draft Disclosure Document.
Conditions precedent The subscription from investors shall be accepted for allocation and allotment by the
to subscription of Issuer subject to the following:
Bonds
1. Rating letters from CRISIL and CARE not being more than one month old from the
issue opening date and and rating rationale not older than 6 months old;
2. Letter from the Trustees conveying their consent to act as Trustees for the
Bondholder(s);
3. Executed Debenture Trustee Agreement;
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4. Board Resolution dated 08.07.2021 authorizing issue of Bonds as per borrowing

limits of the Issuer
5. Tripartite Agreement between the Issuer; Registrar and NSDL for issue of Bonds in
6. Tripartite Agreement between the Issuer, Registrar and CDSL for issue of Bonds in
7. Registrar consent latter dated 06.02.2021;
8. Letter from NSE conveying its in-principle approval for listing of Bonds.
Conditions The Issuer shall ensure that the following documents are executed/ activities are
subsequent to completed as per time frame mentioned elsewhere in this Draft Disclosure Document:
subscription of Bonds
1. Credit of demat account(s) of the allottee(s) by number of Bonds allotted within 2
working days from the Deemed Date of Allotment;
2. Making listing application to stock exchange(s) in 4 trading days from the
Closure of Issue of Bonds and seeking listing permission in 4 trading days from
the Closure of Issue of Bonds in pursuance of SEBI Debt Regulations/Circulars;
In case of delay in listing of securities issued on privately placement basis
beyond the timelines specified above, the issuer shall;
i. pay penal interest of 1% p.a. over the coupon rate for the period of delay to
the investor (i.e. from date of allotment to the date of listing)
ii. be permitted to utilise the issue proceeds of its subsequent two privately
placed issuances of securities only after receiving final listing approval from
Stock Exchanges.
3. Executing the Bond Trust Deed in favour of the Trustee prior to the listing of the
Debentures and submit with NSE within five working days of the execution of the
same for uploading on their website.
Besides, the Issuer shall perform all activities, whether mandatory or otherwise, as
mentioned elsewhere in this Draft Disclosure Document.
Events of Default "Default" shall mean failure to make Adequate Funds (amount of monies required for
(including manner of payment of principal amount of the Bonds issued by FCI, accrued interest thereon and
voting /conditions of any other amount due towards the Bondholders on each of the due dates) available for
joining Inter Creditor the Designated Trust & Retention Account at least 8 (Eight) days before each of the Due
Agreement) Dates for repayment of Principal and 8 (Eight) days before each of the Due Dates for
payment of Interest. The payment mechanism for repayment of principal and interest has
been set out in the Annexure I of the Guarantee Agreement.
Besides, it would also constitute a “Default” by the Issuer, if the Issuer does not perform
or does not comply with one or more of its material obligations in relation to the Bonds
issued in pursuance of terms and conditions stated in this Draft Disclosure Document and
Bond/ Debenture Trusteeship Agreement which in opinion of the Trustees is incapable of
remedy.
Manner of voting/ conditions of joining Inter Creditor Agreement shall be as mentioned in
the Bond Trust Deed which will be executed within prescribed time frame.
Creation of recovery Recovery Expenses Fund has been created and submitted to NSE on 24.03.2021
expense fund
Conditions for breach Shall be mentioned in the Bond Trust Deed which will be executed within prescribed time
of covenants (as frame.
specified in Debenture
Trust Deed )
Remedies Upon occurrence of a Default as defined in the Guarantee Agreement, the Trustee shall
forthwith invoke the guarantee as per the terms of the Guarantee Agreement.
Cross Default The Trustee/ Bondholders would not be in a position to accelerate all payments due under
the Bonds if the Issuer defaults on its other debt obligations.
Role and The Trustees shall perform its duties and obligations and exercise its rights and
Responsibilities of discretions, in keeping with the trust reposed in the Trustees by the holder(s) of the Bonds
Trustees and shall further conduct itself, and comply with the provisions of all applicable laws,
provided that, the provisions of Section 20 of the Indian Trusts Act, 1882, shall not be
applicable to the Trustees. The Trustees shall carry out its duties and perform its
functions as required to discharge its obligations under the terms of SEBI Debt
Regulations, the Securities and Exchange Board of India (Debenture Trustees)
Page 52 of 74
Regulations, 1993, such other circulars and directions issued by any applicable regulator
from time to time, the Bond/ Debenture Trusteeship Agreement, Draft Disclosure
Document and all other related transaction documents, with due care, diligence and
loyalty.
The Trustees shall be vested with the requisite powers for protecting the interest of
holder(s) of the Bonds. The Trustees shall ensure disclosure of all material events on an
ongoing basis.
The Issuer shall, inter alia, till the redemption of Bonds, submit its latest audited/ limited
review half yearly consolidated (wherever available) and standalone financial information
such as Statement of Profit & Loss, Balance Sheet and Cash Flow Statement and auditor
qualifications, if any, to the Trustees within the timelines as mentioned in Simplified Listing
Agreement issued by SEBI vide circular No. SEBI/IMD/BOND/1/2009/11/05 dated May11,
2009 as amended. Besides, the Issuer shall within 180 days from the end of the financial
year, submit a copy of the latest annual report to the Trustees and the Trustees shall be
obliged to share the details so submitted with all ‘Qualified Institutional Buyers’ (QIBs) and
other existing Bondholder(s) within two working days of their specific request.
Risk factors pertaining Government of India conveying its unconditional and irrevocable guarantee for the
to the Issue repayment of principal amount of Bonds of FCI for an amount of Rs.8,000 crore (including
green-shoe option) and interest thereon. Hence, no such factor is associated with it.
Governing Law and The Bonds are governed by and shall be construed in accordance with the existing laws
Jurisdiction of India. Any dispute arising thereof shall be subject to the jurisdiction of district courts of
Delhi
All covenants of the 1. Execution of Bond Trust Deed: The issuer undertakes that it shall execute the
issue (including side Bond Trust Deed, within time frame prescribed in the relevant regulations/ act/ rules
letters, accelerated etc. and submit with stock exchange(s) within five working days of execution of the
payment clause, etc.) same for uploading on its website.
2. Default in Payment: In the event of delay in the payment of interest amount and/
or principal amount on the due date(s), the Issuer shall pay additional interest of
2.00% per annum in addition to the respective Coupon Rate payable on the Bonds,
on such amounts due, for the defaulting period i.e. the period commencing from
and including the date on which such amount becomes due and up to but excluding
the date on which such amount is actually paid.
3. Delay in Listing: The issuer shall complete all the formalities and seek listing
permission from stock exchange(s) in 4 trading days from the Closure of Issue. In
the event of delay in listing of Bonds beyond 4 trading days, except due to any
technical reasons beyond the control of issuer, from the Closure of Issue, the issuer
shall pay penal interest of 1.00% per annum over the respective Coupon Rate from
the Deemed Date of Allotment till the listing of Bonds to the Bondholder(s) and be
permitted to utilise the issue proceeds of its subsequent two privately placed
issuances of securities only after receiving final listing approval from Stock
Exchanges
The interest rates mentioned in above two covenants shall be independent of each
other.
4. Side Letters: No Such letter has been executed by the issuer.
5. Accelerated Redemption Payment: As per accelerated payment clause mentioned
in Structure Payment Mechanism.
Payment Mode Successful bidders should ensure to do the funds pay-in from their same bank account
which is updated by them in the BSEEBP Platform while placing the bids. Payment should
be made by the deadline specified by the BSE. Successful bidders should do the funds
pay-in to the bank accounts of the Indian Clearing Corporation Limited (ICCL)
(“Designated Bank Account”) as displayed in EBP Platform at time of bidding.
Manner of Bidding Close Book Bidding
Mode of Allotment/ Uniform Yield
Allocation option
Issue Schedule* Issue Opening Date 11th August 2021 (Bid Start Time: 11:00 AM)
Issue Closing Date 11th August 2021 (Bid Close Time:12:00 PM)
Page 53 of 74
Pay-in Date 13th August 2021

Deemed Date of Allotment 13th August 2021
* The Issuer reserves its sole and absolute right to modify (pre-pone/ postpone) the above issue schedule without
giving any reasons or prior notice. In such a case, investors shall be intimated about the revised time schedule by the
Issuer. The Issuer also reserves the right to keep multiple Deemed Date(s) of Allotment at its sole and absolute
discretion without any notice. In case, if the Issue Closing Date/ Pay in Dates is/are changed (pre-poned/ postponed),
the Deemed Date of Allotment may also be changed (preponed/ postponed) by the Issuer at its sole and absolute
discretion. Consequent to change in Deemed Date of Allotment, the Coupon Payment Dates and/orRedemption Date
may also be changed at the sole and absolute discretion of the Issuer.
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IX. TERMS OF OFFER (DETAILS OF DEBT SECURITIES PROPOSED TO BE ISSUED, MODE OF ISSUANCE,
ISSUE SIZE, UTILIZATION OF ISSUE PROCEEDS, STOCK EXCHANGES WHERE SECURITIES ARE
PROPOSED TO BE LISTED, REDEMPTION AMOUNT, PERIOD OF MATURITY, YIELD ON REDEMPTION,
DISCOUNT AT WHICH OFFER IS MADE AND EFFECTIVE YIELD FOR INVESTOR)
PRIVATE PLACEMENT OF GOVERNMENT OF INDIA GUARANTEED REDEEMABLE NON-CONVERTIBLE

UNSECURED TAXABLE BONDS (SERIES X) IN THE NATURE OF DEBENTURES OF FACE VALUE OF RS. 10.00
LACS EACH (“BONDS”)AGGREGATING TO RS. 2,000 CRORE WITH A GREEN SHOE OPTION TO RETAIN RS.
6,000 CRORE BY FOOD CORPORATION OF INDIA (“FCI”/ THE “CORPORATION”/ THE “ISSUER“)
1. ISSUE SIZE
Food Corporation of India (“FCI”/ the “Corporation”/ the “Issuer“)proposes to raise aggregating to Rs. 2,000 crore with
a green shoe option to retain Rs. 6,000 crore through issue of Government of India Guaranteed Redeemable Non-
Convertible Unsecured Taxable Bonds (Series X) in the nature of Debentures of face value of Rs. 10.00 lacs each
(“Bonds”)(the “Issue”).
2. ELIGIBILITY TO COME OUT WITH THE ISSUE
The Issuer or the person in control of the Issuer, or its promoter, has not been restrained or prohibited or debarred by
SEBI/any other Government authority from accessing the securities market or dealing in securities and such direction
or order is in force.
3. REGISTRATION AND GOVERNMENT APPROVALS
Ministry of Consumer Affairs, Food & Public Distribution (Department of Food & Public Distribution), Government of
India has executed a Guarantee Agreement dated 15.07.2021 with the Corporation and SBICAP Trustee Company
Ltd. in the capacity of Trustees for the Bondholders, conveying its unconditional and irrevocable guarantee for the
repayment of principal amount of Bonds of FCI for an amount of Rs.8,000 crore (including green-shoe option) and
interest thereon. The Corporation can issue Bonds in view of the present approvals and no further approval from any
government authority(ies) is required by the Corporation to issue the proposed Bonds.
4. AUTHORITY FOR THE ISSUE
The present issue of Bonds is being made pursuant to the resolution of the Board of Directors of the Issuer, passed in
Board meeting held on July 8, 2021 and the delegation provided thereunder. The current issue of Bonds is within the
overall borrowings limits set out under section 27(1) of The Food Corporations Act, 1964. The Issuer can issue the
Bonds proposed by it in view of the present approvals and no further internal or external permission/ approval(s) is/are
required by it to issue the proposed Bonds.
5. OBJECTS OF THE ISSUE
The present issue of Bonds is being made by the Corporation for augmenting its long-term resource base. The
expenses of the present issue would also be met from the proceeds of the Issue. The proceeds of this Issue after
meeting all expenses of the Issue will be used by the Corporation for meeting issue objects. Section 13 of the Food
Corporations Act, 1964 enables it to undertake the activities for which the funds are being raised through the present
issue.
The main objects of the Issuer as provided in the Food Corporations Act, 1964, enables it to undertake the activities
for which the funds are being raised through the present Issue of Bonds.
6. UTILISATION OF ISSUE PROCEEDS
The funds being raised by the Issuer through present issue of Bonds are not meant for financing any particular project.
The Issuer shall utilise the proceeds of the Issue for its regular business activities and other associated business
objectives such as discharging existing debt obligations which were generally undertaken for business operations. The
Issuer is subject to a number of regulatory checks and balances as stipulated in its regulatory environment. The Issuer
is a Government of India undertaking under the administrative control of Ministry of Consumer Affairs, Food & Public
Distribution, (Department Food & Public Distribution), Government of India and is managed by professionals under the
supervision of the Board of Directors. The management of the Issuer shall ensure that the funds raised via the present
Issue shall be utilized only towards satisfactory fulfilment of the Objects of the Issue.
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The Issuer undertakes that proceeds of the present Issue shall not be used for any purpose which may be in
contravention of the regulations/ guidelines/ norms issued by the RBI/ SEBI/ ROC/ Stock Exchange(s).
In accordance with the SEBI Debt Regulations, the Issuer undertakes that it shall not utilise the proceeds of the Issue
for providing loan to or acquisition of shares of any person who is part of the same group or who is under the same
management. However, the Issuer is a public sector enterprise and, as such, it does not have any identifiable ‘Group
Companies’ or ‘Companies under the same Management’. The Issue proceeds shall not be utilised towards full or part
consideration for the purchase or any acquisition, including by way of a lease, of any property.
Further, the Issuer undertakes that Issue proceeds from the present issue of Bonds allotted to banks shall not be used
for any purpose which may be in contravention of the RBI guidelines on bank financing to NBFCs including those
relating to classification as capital market exposure or any other sectors that are prohibited under the RBI regulations.
The main objects of the Issuer as provided in the Food Corporations Act, 1964, enables it to undertake the activities
for which the funds are being raised through the present Issue of Bonds.
7. MINIMUM SUBSCRIPTION
In terms of the SEBI Debt Regulations, the Issuer may decide the amount of minimum subscription which it seeks to
raise by issue of Bonds and disclose the same in the offer document. The Issuer has decided not to stipulate any
minimum subscription for the present Issue and therefore the Issuer shall not be liable to refund the issue
subscription(s)/ proceed(s) in the event of the total issue collection falling short of issue size or certain percentage of
issue size.
8. UNDERWRITING
The present Issue of Bonds is not underwritten.
9. NATURE OF BONDS
The Bonds are to be issued in the form of Government of India Guaranteed Redeemable Non-Convertible Unsecured
Taxable Bonds (Series X) in the nature of Debentures (“Bonds”).
10. FACE VALUE, ISSUE PRICE, EFFECTIVE YIELD FOR INVESTOR
Each Bond has a face value of Rs.10 lacs and is issued as well as redeemable at par i.e. for Rs. 10 lacs. The Bonds
shall be redeemable at par i.e. for Rs.10 lacs per Bond. Since there is no premium or discount on either issue price or
on redemption value of the Bonds, the effective yield for the investors shall be the same as the Coupon Rate on the
Bonds.
11. SECURITY
The Bonds are secured by way of unconditional and irrevocable guarantee from the Government of India towards
repayment of principal amount of the Bonds and interest thereon. Copy of the Guarantee Agreement is enclosed
elsewhere in this Draft Disclosure Document. Since full face value amount of Bonds along with interest thereon are
secured by way of unconditional and irrevocable guarantee from the Government of India towards repayment of
principal amount of the Bonds and interest thereon. No separate security (movable, immovable and tangible) has
been provided.
12. STRUCTURED PAYMENT MECHANISM
The Guarantee Agreement provides for a Structured Payment Mechanism whereby a Designated Trust & Retention
Account (“TRA”) in the name of “Food Corporation of India [FCI]-Bond Account” shall be opened exclusively for the
benefit of the Trustee (on behalf of the Bondholders). The following payment structure (wherein “T1” is assumed to be
the due date for interest payments, “T2” is assumed to be the due date for principal repayment of the Bonds and “T3”
is assumed to be the date when acceleration of payment of principal and interest is contemplated) is envisaged for
meeting the obligations on the rated Bonds.
Interest Payments
(T1-30)th day* Trustees to inform FCI and the GOI in writing regarding the due date for payment of interest
amount so that necessary arrangements could be made for meeting the interest payment
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(T1-8)th day* The Designated Trust and Retention Account is to be funded by FCI to the tune of the
interest obligations on the Bonds.
(T1-7)th day* If the Designated Trust and Retention Account is not funded to the requisite extent by (T1-
8)th day, the Trustees shall forthwith invoke the GOI Guarantee by sending a Notice of
Invocation to GOI.
(T1-3)th day* Last date by which GOI shall deposit requisite funds in the Designated Trust and Retention
Account as per the Notice of Invocation served by the Trustees.
* If any Coupon Payment Date falls on a day that is not a Business Day, the payment shall be made by the Issuer on
the following working day in line with SEBI circular No CIR/IMD/DF-1/122/2016 dated November 11, 2016.
Principal Repayment
(T2-30)th day* Trustees to inform FCI and the GOI in writing regarding the due date for repayment of
principal amount so that necessary arrangements could be made for meeting the principal
repayment obligations on the Bonds.
(T2-8)th day* The Designated Trust and Retention Account is to be funded by FCI to the tune of the
principal obligations on the Bonds.
(T2-7)th day* If the Designated Trust and Retention Account is not funded to the requisite extent by (T2-
8)th day, the Trustees shall forthwith invoke the GOI Guarantee by sending a Notice of
Invocation to GOI.
(T2-3)th day* Last date by which GOI shall deposit requisite funds in the Designated Trust and Retention
* If the Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on a day that is not a
Business Day, the redemption proceeds shall be paid by the Issuer on the immediately preceding Business Day
along with interest accrued on the Bonds until but excluding the date of such payment.
Payment Mechanism in case of Acceleration
(T3+1)th day Trustees to inform FCI and the GOI in writing regarding the due date for repayment of
principal and interest amount so that the necessary arrangements could be made for meeting
its obligations under acceleration.
(T3+8)th day The Designated Trust and Retention Account is to be funded by FCI to the tune of principal
and interest obligations under acceleration.
(T3+9)th day If the Designated Trust and Retention Account is not funded to the requisite extent by
(T3+8)th day, the Trustees shall forthwith invoke the GOI Guarantee by sending a Notice of
Invocation to GOI.
(T3+15)th day Last date by which GOI shall deposit requisite funds in the Designated Trust and Retention
13. TERMS OF PAYMENT
The full face value of the Bonds applied for is to be paid along with the Application Form. Investor(s) need to send in
the Application Form along withproof of RTGS/ Fund Transfer for the full value of Bonds applied for.
.
Face Value per Bond Minimum Application for Amount Payable on Application per Bond
Rs. 10 lacs 1 bonds ( Rs. 10 lacs ) and then in multiples Rs. 10 lacs
of 1 bonds ( Rs. 10 lacs) thereafter
14. DEEMED DATE OF ALLOTMENT
Interest on Bonds shall accrue to the Bondholder(s) from and including Deemed Date of Allotment. All benefits relating
to the Bonds will be available to the investor(s) from the Deemed Date of Allotment. The actual allotment of Bonds
may take place on a date other than the Deemed Date of Allotment. The Company reserves the right to modify
allotment date/ deemed date of allotment at its sole and absolute discretion without any notice. In case if the issue
closing date is changed (pre-poned / postponed), the Deemed Date of Allotment may also be changed (pre-poned/
postponed) by the Company at its sole and absolute discretion.
15. LETTER(S) OF ALLOTMENT/ BOND CERTIFICATE(S)/ REFUND ORDER(S)/ ISSUE OF LETTER(S) OF

ALLOTMENT
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The beneficiary account of the investor(s) with National Securities Depository Limited (NSDL)/ Central Depository
Services (India) Limited (CDSL)/ Depository Participant will be given initial credit within 2 working days from the
Deemed Date of Allotment. The initial credit in the account will be akin to the Letter of Allotment. On completion of the
all statutory formalities, such credit in the account will be akin to a Bond Certificate.
16. ISSUE OF BOND CERTIFICATE(S)
Subject to the completion of all statutory formalities within timeframe prescribed in the relevant regulations/act/rules
etc, the initial credit akin to a Letter of Allotment in the Beneficiary Account of the investor would be replaced with the
number of Bonds allotted. The Bonds since issued in electronic (dematerialized) form, will be governed as per the
provisions of The Depository Act, 1996, Securities and Exchange Board of India (Depositories and Participants)
Regulations, 1996, rules notified by NSDL/ CDSL/ Depository Participant from time to time and other applicable laws
and rules notified in respect thereof. The Bonds shall be allotted in dematerialized form only.
17. DEPOSITORY ARRANGEMENTS
The Issuer has appointed Beetal Financial & Computer Service (P) Ltd, Beetal House, 3rd Floor, 99 Madangir, Behind
LSC, New Delhi-110062, Tel: (011)29961281-83, Fax: +91 (011) 29961284 as the Registrar (“Registrar”) for the
present Bond Issue. The Issuer has entered into necessary depository arrangements with National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for dematerialization of the Bonds
offered under the present Issue, in accordance with the Depositories Act, 1996 and regulations made thereunder. In
this context, the Issuer has signed two tripartite agreements as under:
• Tripartite Agreement between the Issuer, National Securities Depository Limited (“NSDL”) and the Registrar for
dematerialization of the Bonds offered under the present Issue.
• Tripartite Agreement between the Issuer, Central Depository Services (India) Limited (“CDSL”) and the Registrar
for dematerialization of the Bonds offered under the present Issue.
Investors can hold the bonds only in dematerialised form and deal with the same as per the provisions of Depositories
Act, 1996 as amended from time to time.
18. PROCEDURE FOR APPLYING FOR DEMAT FACILITY
a) Applicant(s) should have/ open a Beneficiary Account with any Depository Participant of NSDL or CDSL.
b) The applicant(s) must specify their beneficiary account number and depository participants ID in the relevant
columns of the Application Form.
c) If incomplete/incorrect beneficiary account details are given in the Application Form which does not match with
the details in the depository system, the allotment of Bonds shall be held in abeyance till such time satisfactory
demat account details are provided by the applicant.
d) The Bonds shall be directly credited to the Beneficiary Account as given in the Application Form and after due
verification, allotment advice/refund order, if any, would be sent directly to the applicant by the Registrars to the
Issue but the confirmation of the credit of the Bonds to the applicant’s Depository Account will be provided to the
applicant by the Depository Participant of the applicant.
e) Interest or other benefits with respect to the Bonds would be paid to those bondholders whose names appear
on the list of beneficial owners given by the depositories to the Issuer as on the Record Date. In case, the
beneficial owner is not identified by the depository on the Record Date due to any reason whatsoever, the
Issuer shall keep in abeyance the payment of interest or other benefits, till such time the beneficial owner is
identified by the depository and intimated to the Issuer. On receiving such intimation, the Issuer shall pay the
interest or other benefits to the beneficiaries identified, within a period of 15 days from the date of receiving
such intimation.
f) Applicants may please note that the Bonds shall be allotted and traded on the stock exchange(s) only in
dematerialized form.
19. FICTITIOUS APPLICATIONS
Any person who makes, in fictitious name, any application to a body corporate for acquiring, or subscribing to, the
Bonds, or otherwise induced a body corporate to allot, register any transfer of Bonds therein to them or any other
person in a fictitious name, shall be punishable as per provisions of extant laws.
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20. MARKET LOT
The market lot will be one Bond (“Market Lot”). Since the Bonds are being issued only in dematerialised form, the odd
lots will not arise either at the time of issuance or at the time of transfer of Bonds.
21. TRADING OF BONDS
The marketable lot for the purpose of trading of Bonds shall be 1 (one) Bond of face value of Rs.10 lacs each. Trading
of Bonds would be permitted in demat mode only in standard denomination of Rs.10 lacs and such trades shall be
cleared and settled in recognised stock exchange(s) subject to conditions specified by SEBI. In case of trading in
Bonds which has been made over the counter, the trades shall be reported on a recognized stock exchange having a
nationwide trading terminal or such other platform as may be specified by SEBI.
22. MODE OF TRANSFER OF BONDS
The Bonds shall be transferred subject to and in accordance with the rules/ procedures as prescribed by the NSDL/
CDSL/ Depository Participant of the transferor/ transferee and any other applicable laws and rules notified in respect
thereof. The normal procedure followed for transfer of securities held in dematerialized form shall be followed for
transfer of these Bonds held in electronic form. The seller should give delivery instructions containing details of the
buyer’s DP account to his depository participant. The transferee(s) should ensure that the transfer formalities are
completed prior to the Record Date. In the absence of the same, interest will be paid/ redemption will be made to the
person, whose name appears in the records of the Depository. In such cases, claims, if any, by the transferee(s) would
need to be settled with the transferor(s) and not with the Issuer.
Transfer of Bonds to and from NRIs/ OCBs, in case they seek to hold the Bonds and are eligible to do so, will be
governed by the then prevailing guidelines of RBI.
23. DETERMINATION OF COUPON
The Coupon has been decided based on bids received on EBP.
24. BASIS OF ALLOCATION / ALLOTMENT
Allotment to the bidders shall be done on yield priority basis in the following manner as per SEBI circular dated
January 5, 2018 read with SEBI Circular dated August 16, 2018 and operational guidelines of BSE:-
a) All the bids shall be arranged in the ascending order of the yields, and a cut-off yield shall be determined.
b) All the bids below the cut-off yield shall be accepted and full allotment should be made to such bidders.
c) For all the bids received at cut-off yield, allotment shall be made on time priority basis.
25. COMMON FORM OF TRANSFER
The Issuer undertakes that it shall use a common form/ procedure for transfer of Bonds issued in dematerialised form
under terms of this Draft Disclosure Document.
26. INTEREST ON APPLICATION MONEY
a. In case of change in deemed date of allotment and in respect of investors who get allotment in the bond
issue , interest on application money shall be paid at the coupon rate applicable for bond series (subject to
deduction of income tax under the provisions of the Income Tax Act, 1961, or any other statutory
modification or re-enactment thereof, as applicable) from the date of receipt of application money in FCI’s
account till one day prior to the date of allotment on the aggregate face value amount of Bonds The
interest on Application Money shall be computed as per “Actual/Actual” day count convention. The
payment shall be made only through electronic mode. However, in case of rejection of electronic mode,
due to incomplete / in correct detail provided by applicant payment may be made through cheque
/demand draft. The cheque /demand draft for interest on application money shall be dispatched by the
Issuer within 15 days from the Deemed Date of Allotment by registered post to the sole/ first applicant, at
the sole risk of the applicant.
b. No interest on Application Money will be paid in respect of applications which are rejected due to any
reason.
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27. INTEREST ON THE BONDS
The face value of the Bonds outstanding shall carry interest at the coupon rate from deemed date of allotment and the
coupon rate & frequency of payment (subject to deduction of income tax under the provisions of the Income Tax Act,
1961, or any other statutory modification or re-enactment thereof, as applicable) are mentioned at summary term
sheet.
The interest payment shall be made through electronic mode to the bondholders whose names appear on the list of
beneficial owners given by the depository participant to R&TA as on the record date fixed by Issuer in the bank
account which is linked to the demat of the bondholder. However, in absence of complete bank details i.e.
correct/updated bank account number, IFSC/RTGS code /NEFT code etc., issuer shall be required to make payment
through cheques / DDs on the due date at the sole risk of the bondholders. Interest or other benefits with respect to the
Bonds would be paid to those Bondholders whose names appear on the list of beneficial owners given by the
depository participant to R&TA as on the Record Date.
28. COMPUTATION OF INTEREST
Interest for each of the interest periods shall be computed as per Actual/ Actual day count convention on the face
value amount of Bonds outstanding at the Coupon Rate rounded off to the nearest Rupee as per the Fixed Income
Money Market and Derivatives Association (“FIMMDA”) handbook on market practices. Where the interest period (start
date to end date) includes February 29, interest shall be computed on 366 days-a-year basis, on the face value
amount of Bonds outstanding.
29. RECORD DATE
The Record Date i.e. the reference date for payment of interest/ repayment of principal shall be the date falling 15 days
prior to the relevant Coupon Payment Date on which interest or the Redemption Date on which the Maturity Amount is
due and payable. In the event the Record Date falls on a day which is not a Business Day, the immediately succeeding
Business Day will be considered as the Record Date. In case of redemption of Bonds, the trading in the Bonds shall
remain suspended between the Record Date and the Redemption Date. Interest payment and principal repayment
shall be made to the person whose name appears as beneficiary with the Depositories as on Record Date. In the
event of the Issuer not receiving any notice of transfer at least 15 days before the Coupon Payment Date and at least
15 days prior to the Redemption Date, the transferees for the Bonds shall not have any claim against the Issuer in
respect of interest so paid to the registered Bondholders.
30. DEDUCTION OF TAX AT SOURCE
Tax as applicable under the Income Tax Act, 1961, or any other statutory modification or re-enactment thereof will be
deducted at source out of interest payable on Bonds.
Interest payable subsequent to the Deemed Date of Allotment of Bonds shall be treated as “Interest on Securities” as
per Income Tax Rules. Bondholders desirous of claiming exemption from deduction of income tax at source on the
interest payable on bonds should submit tax exemption certificate / document, under Section 197 of the Income Tax
Act, if any, with the Registrars, or to such other person(s) at such other address(es) as the Issuer may specify from
time to time through suitable communication, at least 45 days before the payment becoming due. However, with
effective from 01.06.2008, tax is not to be deducted at source under the provisions of section 193 of Income Tax Act,
1961, if the following conditions are satisfied:
a. interest is payable on any security issued by a company

b. such security is in dematerlized form
c. such security is listed in a recognised stock exchange in India
Present issue of Bonds fulfils the above conditions and therefore, no tax would be deducted on the interest payable.
However, the applicability of tax on Foreign Institutional Investor or a Qualified Foreign investor would be governed as
per Section 194LD of the Income tax Act and concessional TDS would be deducted on interest payable on their
investment in present Bonds issue. Further, the Issuer shall pursue the provisions as amended from time to time with
respect to applicability of TDS at the time of payment of interest on Bonds. Regarding deduction of tax at source and
the requisite declaration forms to be submitted, applicants are advised to consult their own tax consultant(s).
31. PUT & CALL OPTION
Neither the bondholder(s) shall have any right to exercise Put Option nor the Issuer shall have right to exercise Call
Option to redeem the Bonds, in whole or in part, prior to the Redemption Date.
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32. REDEMPTION
The face value of the Bonds shall be redeemed at par, on the Redemption Date. The Bonds will not carry any
obligation, for interest or otherwise, after the Redemption Date. The Bonds shall be taken as discharged on payment of
the redemption amount by the Issuer on the Redemption Date to the registered Bondholders whose name appear in
the Register of Bondholders on the Record Date. Such payment will be a legal discharge of the liability of the Issuer
towards the Bondholders.
If any Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on a day that is not a Business
Day, the redemption proceeds shall be paid by the Issuer on the immediately preceding Business Day along with
interest accrued on the Bonds until but excluding the date of such payment.
33. DEFAULT INTEREST RATE
A. In the event of delay in the payment of interest amount and/ or principal amount on the due date(s), the Issuer
shall pay additional interest of 2.00% per annum in addition to the Coupon Rate payable on the Bonds, on such
amounts due, for the defaulting period i.e. the period commencing from and including the date on which such
amount becomes due and upto but excluding the date on which such amount is actually paid.
B. Delay in Listing: In case of delay in listing of the Debt Securities within 4 (four) trading days from the date of Issue
closure, the Company will:
i. pay penal interest of 1% (one per cent) p.a. over the coupon rate from the expiry of 4 (four) days from
the deemed date of allotment till the listing of such Debt Securities to the investor;
ii. be permitted to utilise the issue proceeds of its subsequent two privately placed issuances of securities
only after receiving final listing approval from Stock Exchanges.
The interest rates mentioned above shall be independent of each other.
34. EVENTS OF DEFAULT & REMEDIES
"Default" shall mean failure to make Adequate Funds (amount of monies required for payment of principal amount of
the Bonds issued by FCI, accrued interest thereon and any other amount due towards the Bondholders on each of the
due dates) available for the Designated Trust & Retention Account at least 8 (Eight) days before each of the Due
Dates for repayment of Principal and 8 (Eight) days before each of the Due Dates for payment of Interest. The
payment mechanism for repayment of principal and interest has been set out in the Annexure I of the Guarantee
Agreement.
Besides, it would also constitute a “Default” by the Issuer, if the Issuer does not perform or does not comply with one
or more of its material obligations in relation to the Bonds issued in pursuance of terms and conditions stated in this
Draft Disclosure Document and Bond/ Debenture Trusteeship Agreement which in opinion of the Trustees is incapable
of remedy.
Upon occurrence of a default as defined in the Guarantee Agreement, the Trustee shall forthwith invoke the guarantee
as per the terms of the Guarantee Agreement.
35. ADDITIONAL COVENANTS
a) Allotment of Bonds: The Issuer shall allot the Bonds within two trading days from the date of closure of issue.
b) Default in Payment: In the event of delay in the payment of interest amount and/ or principal amount on the due
date(s), the Issuer shall pay additional interest of 2.00% per annum in addition to the respective Coupon Rate
payable on the Bonds, on such amounts due, for the defaulting period i.e. the period commencing from and
including the date on which such amount becomes due and upto but excluding the date on which such amount is
actually paid.
c) Delay in Listing: The issuer shall complete all the formalities and seek listing permission from stock exchange(s)
in 4 trading days from the Closure of Issue. In the event of delay in listing of Bonds beyond 4 trading days, except
due to any technical reasons beyond the control of issuer, from the Closure of Issue, the issuer shall pay penal
interest of 1.00% per annum over the respective Coupon Rate from the Deemed Date of Allotment till the listing of
Bonds to the Bondholder(s) and be permitted to utilise the issue proceeds of its subsequent two privately placed
issuances of securities only after receiving final listing approval from Stock Exchanges
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The interest rates mentioned in above two covenants shall be independent of each other.
36. SETTLEMENT/ PAYMENT ON REDEMPTION
Payment of interest and repayment of principal shall be made by way of credit through direct credit/ NECS/ RTGS/
NEFT/Cheque mechanism and any other electronic payment mode the name of the Bondholders whose name appear
on the List of Beneficial Owners given by Depository to the Issuer as on the Record Date.
The Bonds shall be taken as discharged on payment of the redemption amount by the Issuer on the Redemption Date
to the list of Beneficial Owners as provided by NSDL/ CDSL/ Depository Participant as on Record Date. Such payment
will be a legal discharge of the liability of the Issuer towards the Bondholders. On such payment being made, the
Issuer shall inform NSDL/ CDSL/ Depository Participant and accordingly the account of the Bondholders with NSDL/
CDSL/ Depository Participant shall be adjusted.
The Issuer’s liability to the Bondholders towards all their rights including for payment or otherwise shall cease and
stand extinguished from the due date of redemption in all events. Further the Issuer will not be liable to pay any
interest or compensation from the Redemption Date. On the Issuer’s dispatching/ crediting the amount to the
Beneficiary(ies) as specified above in respect of the Bonds, the liability of the Issuer shall stand extinguished.
37. EFFECT OF HOLIDAYS
Should any of date(s) defined in the Draft Disclosure Document, excepting the Deemed Date of Allotment, fall on a day
that is not a business day, the next working day shall be considered as the effective date(s)in line with SEBI circular
No CIR/IMD/DF-1/122/2016 dated November 11, 2016. If any of the trigger date mentioned in the Annexure–I of the
Guarantee Agreement falls on a non-Business Day, the said action points shall be performed on the immediately
preceding Business Day.
If any Coupon Payment Date falls on a day that is not a Business Day, the payment shall be made by the Issuer on the
following working day in line with SEBI circular No CIR/IMD/DF-1/122/2016 dated November 11, 2016.
If the Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on a day that is not a Business
Day, the redemption proceeds shall be paid by the Issuer on the preceding Business Day along with interest accrued
on the Bonds until but excluding the date of such payment.
In the event the Record Date falls on a day which is not a Business Day, the immediately succeeding Business Day
will be considered as the Record date.
An illustration for guidance in this regard is as tabled below:
The following table is indicative and only for illustration, does not reflect actual amount and dates. For
convenience the cash flows have been reflected for face value of security i.e. of Rs. 10 lakh each. Also only
Sundays have been considered as holidays, the actual holidays may differ from year to year.
Illustration
Name of Issuer Food Corporation of India
Face Value of Bonds Rs. 10,00,000
Deemed Date of Allotment 13-08- 2021
Redemption Date 13-08-2031
Coupon Rate [●]% p.a. (to be decided through EBP)
Frequency of Coupon Payment Annually on 13th August of each year till maturity of Bonds.
Day Count Convention Actual/ Actual
Coupon shall be computed on an “actual/actual basis”. Where the coupon
period (start date to end date) includes February 29, interest shall be computed
on 366 days-a-year basis
Cash Flows
Coupon Payment Actual Dates Revised Dates No. of Amount per
days Bond payable
(in Rs.)
1st Coupon Payment Date Saturday, August 13, 2022 Tuesday, August 16, 2022 365 [●]
2nd Coupon Payment Date Sunday, August 13, 2023 Monday, August 14, 2023 365 [●]
3rd Coupon Payment Date Tuesday, August 13, 2024 Tuesday, August 13, 2024 366 [●]
4th Coupon Payment Date Wednesday, August 13, 2025 Wednesday, August 13, 2025 365 [●]
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5th Coupon Payment Date Thursday, August 13, 2026 Thursday, August 13, 2026 365 [●]
6th Coupon Payment Date Friday, August 13, 2027 Friday, August 13, 2027 365 [●]
7th Coupon Payment Date Sunday, August 13, 2028 Monday, August 14, 2028 366 [●]
8th Coupon Payment Date Monday, August 13, 2029 Monday, August 13, 2029 365 [●]
9th Coupon Payment Date Tuesday, August 13, 2030 Tuesday, August 13, 2030 365 [●]
10th Coupon Payment Date Wednesday, August 13, 2031 Wednesday, August 13, 2031 365 [●]
Redemption Date Wednesday, August 13, 2031 Wednesday, August 13, 2031 10,00,000
Assumptions and Notes:
1. The aggregate coupon payable to each Bondholder shall be rounded off to the nearest rupee as per the Fixed
Income Money Market and Derivatives Association handbook on market practices.
2. The actual dates and maturity amount will be in accordance to and in compliance with the provisions of SEBI
circular CIR/IMD/DF-1/122/2016 dated November 11, 2016 giving effect to actual holidays and dates of maturity
which qualifies the SEBI requirement.
3. For the purposes of the above illustration, as per notification dated 20 August 2015, only such dates that fall on
second and fourth Saturday of every month have been considered as non-business day. Further, Sundays, have
also been considered as non-Business Days.
38. LIST OF BENEFICIAL OWNERS
The Issuer shall request the Depository to provide a list of Beneficial Owners as at the end of the Record Date. This
shall be the list, which shall be considered for payment of interest or repayment of principal amount, as the case may
be.
39. SUCCESSION
In the event of the demise of the sole/first holder of the Bond(s) or the last survivor, in case of joint holders for the time
being, the Issuer shall recognize the executor or administrator of the deceased Bondholder, or the holder of
succession certificate or other legal representative as having title to the Bond(s).the Issuer shall not be bound to
recognize such executor or administrator, unless such executor or administrator obtains probate, wherever it is
necessary, or letter of administration or such holder is the holder of succession certificate or other legal representation,
as the case may be, from a Court in India having jurisdiction over the matter. The Issuer may, in its absolute discretion,
where it thinks fit, dispense with production of probate or letter of administration or succession certificate or other legal
representation, in order to recognize such holder as being entitled to the Bond(s) standing in the name of the
deceased Bondholder on production of sufficient documentary proof or indemnity.
Where a non-resident Indian becomes entitled to the Bond by way of succession, the following steps have to be
complied:
a) Documentary evidence to be submitted to the Legacy Cell of the RBI to the effect that the Bond was acquired by
the NRI as part of the legacy left by the deceased holder.
b) Proof that the NRI is an Indian National or is of Indian origin.
Such holding by the NRI will be on a non-repatriation basis.
40. WHO CAN APPLY
All QIBs, and any non-QIB Investors specifically mapped by the Issuer on the BSE BOND – EBP Platform, are eligible
to bid / invest / apply for this Issue.
All investors are required to comply with the relevant regulations/ guidelines applicable to them for investing in this
Issue.
Eligible participants bidding on proprietary basis, for an amount equal to or more than Rs.15 crore or 5% of the base
issue size, whichever is lower, shall bid directly i.e. shall enter the bids directly on EBP platform.
Provided that the foreign portfolio investors may bid through their custodians.
41. DOCUMENTS TO BE PROVIDED BY SUCCESSFUL BIDDER(S)
Successful bidder(s) need to submit the following documents, along with the Application Form, as applicable:
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• Certified true copy of the Memorandum and Articles of Association

• Certified true copy of the Board Resolution / letter authorizing the investment
• Certified true copy of the Power of Attorney
• Form 15G/ 15H for investors seeking exemption from TDS –on interest payments
• Relevant certificate(s)/ order(s)/ declaration(s)/ document(s) including order under Section195/ 197 of the Income-
tax Act, 1961 on which the Debenture Holder wishes to place reliance for non-deduction of tax at source
• SEBI registration certificate
• IRDA registration certificate
• Specimen signature of the authorised signatories, duly certified by an appropriate authority
• Certified true copy of PAN
42. HOW TO APPLY
This Draft Disclosure Document is neither a prospectus nor a statement in lieu of prospectus and does not constitute
an offer to the public generally to subscribe for or otherwise acquire the Bonds issued by the corporation. The
document is for the exclusive use of the institution(s) to whom it is delivered and it should not be circulated/ distributed
to third parties. This being a private placement Issue, the eligible investors who have been addressed through this
communication directly, only are eligible to apply. Applications for the Bonds must be in the prescribed form and
completed in BLOCK LETTERS in English and as per the instructions contained therein.
43. FORCE MAJEURE
The Issuer reserves the right to withdraw the issue prior to the Issue Closing Date in the event of any unforeseen
development adversely affecting the economic and regulatory environment.
44. APPLICATION PROCESS
All Eligible Investors will have to register themselves as a one-time exercise (if not already registered) under the BSE
BOND – EBP Platform offered by BSE for participating in the electronic book mechanism. Eligible Investors will also
have to complete the mandatory KYC verification process. Investors should refer to the Operational guidelines of BSE-
EBP platform as prevailing on the date of the bid.
I. Guidelines
The details of the Issue shall be entered on the BSE BOND – EBP Platform by the Issuer at least 2 (two) working days
prior to the Issue / Bid Opening Date, in accordance with the Operational Guidelines.
The Issue will be open for bidding for the duration of the bidding window that would be communicated through the
Issuer‘s bidding announcement on the BSE/ BOND – EBP Platform, at least 1 (one) working day before the start of the
Issue / Bid Opening Date.
A bidder will only be able to enter the amount & percentage while placing their bids in the BSEBOND. Some of the key
guidelines in terms of the current Operational Guidelines on issuance of securities on private placement basis through
an electronic book mechanism, are as follows:
(a) Modification of Bid:

Investors may note that modification of bid is allowed during the bidding period / window.
However, in the last 10 minutes of the bidding period, only revision allowed would for improvement of
coupon/yield and upward revision in terms of the bid size.
(b) Cancellation of Bid

Investors may note that cancellation of bid is allowed during the bidding period / window. However, in the last 10
minutes of the bidding period / window, no cancellation of bids is permitted.
(c) Multiple Bids

Investors may note that multiple bid is not permitted. If multiple bids are entered by the same Investor, only the
first bid will be considered as valid.
(d) Withdrawal of Issue

The Issuer may, at its discretion, withdraw the issue process on the following conditions:
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i. non-receipt of bids upto the Issue Size;

ii. bidder has defaulted on payment towards the allotment, within the stipulated timeframe, due to which the
Issuer is unable to fulfil the Issue Size.
Provided that the Issuer shall accept or withdraw the Issue on the BSEBOND – EBP Platform within 1 (one)
hour of the closing of the bidding window, and not later than 6 pm on the Issue/Bidding Closing Date.
However, Investors should refer to the Operational Guidelines as prevailing on the date of the bid.
II. Provisional/ Final Allocation
Allocation shall be made on a pro rata basis in the multiples of the bidding lot size, i.e., in multiples of Rs. 10,00,000
(Rupees Ten Lakhs).
Post completion of bidding process, the Issuer will upload the provisional allocation on the BSEBOND– EBP Platform.
Post receipt of investor details, the Issuer will upload the final allocation file on the BSEBOND– EBP Platform.
III. Payment Mechanism
Subscription should be as per the final allocation made to the successful bidder(s) as notified by the Issuer by 10:30am
next date of Closing Date.
Successful bidders should do the funds pay-in in the bank account of as appearing on EBP Platform of BSE.
Successful bidders must do the funds pay-in to the Designated Bank Account as mentioned above in accordance with
operational guidelines of BSE EBP PLATFORM. Successful bidders should ensure to do the funds pay-in from their
same bank account which is updated by them in the BSEBOND- EBP Platform while placing the bids. In case of
mismatch in the bank account details between BSEBOND– EBP Platform and the bank account from which payment is
done by the successful bidder, the payment would be returned back.
Note: In case of failure of any successful bidder to complete the funds pay-in by the Pay-in Time or the funds are not
received in the ICCL’s Designated Bank Account by the Pay-in Time for any reason whatsoever, the bid will
liable to be rejected and the Issuer shall not be liable to the successful bidder.
Funds pay-out as per term sheet would be made to the bank account as appearing on the EBP Platform of BSE.
IV. Application by Successful Bidder(s)
All Application Forms, duly completed, must be delivered by the Pay-in Time to the Issuer by the successful bidder(s),
to the attention of Mr. Jagdish Kumar, General Manager (Funds) at Food Corporation of India, 16-20 Barakhamba
Lane, New Delhi-110001 India. Applications for the Debentures must be in the prescribed form and completed in
BLOCK LETTERS in English and as per the instructions contained therein.
For further instructions about how to make an application for applying for the Bonds and procedure for
remittance of application money, please refer to the Summary Term Sheet and the Application Form.
45. APPLICATIONS UNDER POWER OF ATTORNEY
A certified true copy of the power of attorney or the relevant authority as the case may be alongwith the names and
specimen signature(s) of all the authorized signatories and the tax exemption certificate/ document, if any, must be
lodged alongwith the submission of the completed Application Form. Further modifications/ additions in the power of
attorney or authority should be notified to the Issuer or to the Registrars or to such other person(s) at such other
address(es) as may be specified by the Issuer from time to time through a suitable communication.
46. APPLICATION BY MUTUAL FUNDS
In case of applications by Mutual Funds, a separate application must be made in respect of each scheme of an Indian
Mutual Fund registered with SEBI and such applications will not be treated as multiple applications, provided that the
application made by the Asset Management Company/ Trustees/ Custodian clearly indicate their intention as to the
scheme for which the application has been made.
47. ACKNOWLEDGEMENTS
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Since full amount is to be remitted through RTGS/ fund transfer, hence no acknowledgement is required. However,
applicants may take the UTR No. from Banks to track the payment. A copy of RTGS/ fund transfer must be enclosed
with the application form as an acknowledgement of depositing the money in the account.
48. RIGHT TO ACCEPT OR REJECT APPLICATIONS
The Issuer reserves its full, unqualified and absolute right to accept or reject any application, in part or in full, without
assigning any reason thereof. The rejected applicants will be intimated along with the refund warrant, if applicable, to
be sent. Interest on application money will be paid from the date of realization of application money in Issuer’s bank
account till one day prior to the date of refund. The application forms that are not complete in all respects are liable to
be rejected and would not be paid any interest on the application money. Application would be liable to be rejected on
one or more technical grounds, including but not restricted to:
a) Number of Bonds applied for is less than the minimum application size;
b) Applications exceeding the issue size;
c) Bank account details not given;
d) Details for issue of Bonds in electronic/ dematerialized form not given;
e) PAN/GIR and IT Circle/Ward/District not given;
f) In case of applications under Power of Attorney by limited companies, corporate bodies, trusts, etc. relevant
documents not submitted;
In the event, if any Bond(s) applied for is/ are not allotted in full, the excess application monies of such Bonds will be
refunded, as may be permitted.
49. PAN/GIR NUMBER
All applicants should mention their Permanent Account Number or the GIR Number allotted under Income Tax Act,
1961 and the Income Tax Circle/ Ward/ District. Application Forms without PAN will be considered incomplete and
shall be liable to be rejected.
50. SIGNATURES
Signatures should be made in English or in any of the Indian Languages. Thumb impressions must be attested by an
authorized official of a Bank or by a Magistrate/ Notary Public under his/her official seal.
51. NOMINATION FACILITY
As per extant provisions of law, only individuals holding the Bonds as Sole/Joint holder of Bonds, can nominate, in the
prescribed manner, a person to whom his/ their Bonds shall vest in the event of his/ their death. Non-individuals
including holders of Power of Attorney cannot nominate.
52. RIGHT OF BONDHOLDER(S)
Bondholder is not a shareholder. The Bondholders will not be entitled to any other rights and privilege of shareholders
other than those available to them under statutory requirements. The principal amount and interest on the Bonds will
be paid to the registered Bondholders only, and in case of Joint holders, to the one whose name stands first. Besides,
the Bonds shall be subject to the provisions of The Food Corporations Act, 1964, the terms of this Draft Disclosure
Document and other terms and conditions as may be incorporated in theBond/ Debenture Trusteeship Agreement and
other documents that may be executed in respect of these Bonds.
53. MODIFICATION OF RIGHTS
The rights, privileges, terms and conditions attached to the Bonds may be varied, modified or abrogated with the
consent, in writing, of those holders of the Bonds who hold at least three fourth of the outstanding amount of the Bonds
or with the sanction accorded pursuant to a resolution passed at a meeting of the Bondholders, provided that nothing
in such consent or resolution shall be operative against the Issuer where such consent or resolution modifies or varies
the terms and conditions of the Bonds, if the same are not acceptable to the Issuer.
54. FUTURE BORROWINGS
The Issuer shall be entitled to borrow/ raise loans or avail of financial assistance in whatever form as also issue Bonds/
Debentures/ Notes/ other securities in any manner with ranking as pari-passu basis or otherwise and to change its
capital structure, including issue of shares of any class or redemption or reduction of any class of paid up capital, on
such terms and conditions as the Issuer may think appropriate, without the consent of, or intimation to, the
Bondholder(s) or the Trustees in this connection.
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55. BOND/ DEBENTURE REDEMPTION RESERVE (“DRR”)
The Corporation is a statutory corporation constituted under The Food Corporations Act, 1964 and is not a public/
private limited company incorporated under The Companies Act. Therefore, creation of Bond/ Debenture Redemption
Reserve is not envisaged for the proposed issue of Bonds. The Bonds are fully secured by way of unconditional and
irrevocable guarantee from the Government of India for timely payment of principal amount of Bonds and interest
thereon. The Corporation has also appointed a Trustee to protect the interest of the Bondholders.
56. NOTICES
All notices required to be given by the Issuer or by the Trustees to the Bondholders shall be deemed to have been
given if sent by ordinary post/ courier to the original sole/ first allottees of the Bonds and/ or if published in one All India
English daily newspaper and one regional language newspaper.
All notices required to be given by the Bondholder(s), including notices referred to under “Payment of Interest” and
“Payment on Redemption” shall be sent by registered post or by hand delivery to the Issuer or to such persons at such
address as may be notified by the Issuer from time to time.
57. JOINT-HOLDERS
Where two or more persons are holders of any Bond(s), they shall be deemed to hold the same as joint tenants with
benefits of survivorship subject to provisions of law.
58. DISPUTES & GOVERNING LAW
The Bonds are governed by and shall be construed in accordance with the existing laws of India. Any dispute arising
thereof shall be subject to the jurisdiction of district courts of Delhi.
59. INVESTOR RELATIONS AND GRIEVANCE REDRESSAL
Arrangements have been made to redress investor grievances expeditiously as far as possible, the Issuer endeavours
to resolve the investor’s grievances within 30 days of its receipt. All grievances related to the issue quoting the
Application Number (including prefix), number of Bonds applied for, amount paid on application and details of
collection centre where the Application was submitted, may be addressed to the Compliance Officer at the Head Office
of the Issuer. All investors are hereby informed that the Issuer has appointed a Compliance Officer who may be
contacted in case of any pre-issue/ post-issue related problems such as non-credit of letter(s) of allotment/ bond
certificate(s) in the demat account, non-receipt of refund order(s), interest warrant(s)/ cheque(s) etc. Contact details of
the Compliance Officer are given elsewhere in this Draft Disclosure Document.
60. DATE OF SUBSCRIPTION
The Date of Subscription shall be the date of realisation of proceeds of subscription money in the Designated Bank
Account as appearing in the EBP Platform of BSE.
61. SETTLEMENT PROCESS
Upon final allocation by the Issuer, the Issuer or the Registrar on behalf of the Issue shall instruct the depositories
within 1 (one) day of the Date of Subscription, and the Depositories shall accordingly credit the allocated Debentures
to the demat account of the successful bidder(s).
Within 2 (two) days of the Date of Subscription, the Depositories shall confirm to NCL the transfer of debentures in the
demat account(s) of the successful bidder(s).
62. POST-ALLOCATION DISCLOSURES BY THE EBP
Upon final allocation by the Issuer, the Issuer shall disclose the Issue Size, coupon rate, ISIN, number of successful
bidders, category of the successful bidder(s), etc., in accordance with the SEBI EBP Circular. The EBP shall upload
such data, as provided by the Issuer, on its website to make it available to the public.
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X. CREDIT RATING FOR THE BONDS
CRISIL Ratings Limited (“CRISIL”) vide its letter no. RL/FOCOLTD/274904/BOND/0721/14037/91730354 dated
23.07.2021 has assigned a credit rating of CRISIL AAA(CE)/ Stable (pronounced as CRISIL Triple A credit
enhancement rating with stable outlook) for the present issue of Bonds aggregating upto Rs. 8000 crore. Instruments
with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations.
Such instruments carry lowest credit risk. A copy of rating letter from CRISIL is enclosed as Annexure A in this Draft
CARE Ratings Limited (“CARE”) vide its letter no. CARE/DRO/RL/2021-22/1854 dated 23.07.2021, has assigned a
credit rating of CARE AAA(CE)/ Stable (pronounced as CARE Triple A (credit enhancement) Outlook; stable) for the
present issue of Bonds aggregating to Rs.8000 crore. Instruments with this rating are considered to have the highest
degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. A copy of
rating letter from CARE is enclosed is enclosed as Annexure B in this Draft Disclosure Document.
Other than the credit ratings mentioned herein above, the Issuer has not sought any other credit rating from any other
credit rating agency(ies) for the Bonds offered for subscription under the terms of this Draft Disclosure Document.
The above ratings are not a recommendation to buy, sell or hold securities and investors should take their own decision.
The ratings may be subject to revision or withdrawal at any time by the assigning rating agencies and each rating should
be evaluated independently of any other rating. The ratings obtained are subject to revision at any point of time in the
future. The rating agencies have the right to suspend, withdraw the rating at any time on the basis of new information
etc.
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XI. TRUSTEES FOR THE BONDHOLDERS
In accordance with the provisions of (i) Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008 issued vide circular no. LAD-NRO/GN/2008/13/127878 dated June 06, 2008, as
amended from time to time and such other circulars applicable for issue of debt securities issued by SEBI from
time to time, the Issuer has appointed SBICAP Trustee Company Limited to act as Trustees (“Trustees”) for and
on behalf of the holder(s) of the Bonds. The address and contact details of the Trustees are as under:
SBICAP Trustee Company Limited

Registered Office-
Mistry Bhavan, 4th Floor,
122 Dinshaw Vachha Road, Churchgate
Mumbai - 400 020
Tel: (022) 4302 5555
Fax: +91 (22) 2204 0465
A copy of letter from SBICAP Trustee Company Limited conveying their consent to act as Trustees for the current
issue of Bonds is enclosed as Annexure C in this Draft Disclosure Document.
The Issuer hereby undertakes that it shall execute a Bond/ Debenture Trusteeship Agreement in favour of the
Trustees. The Bond/ Debenture Trusteeship Agreement shall contain such clauses as may be prescribed under
Schedule IV of the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993. Further, the
Bond/ Debenture Trusteeship Agreementshall not contain a clause which has the effect of (i) limiting or extinguishing
the obligations and liabilities of the Trustees or the Issuer in relation to any rights or interests of the holder(s) of the
Bonds, (ii) limiting or restricting or waiving the provisions of the Securities and Exchange Board of India Act, 1992 (15
of 1992); Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; Securities
and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2012 and circulars,
regulations or guidelines issued by SEBI from time to time and (iii) indemnifying the Trustees or the Issuer for loss or
damage caused by their act of negligence or commission or omission.
The Bondholder(s) shall, without further act or deed, be deemed to have irrevocably given their consent to the
Trustees or any of their agents or authorized officials to do all such acts, deeds, matters and things in respect of or
relating to the Bonds as the Trustees may in their absolute discretion deem necessary or require to be done in the
interest of the holder(s) of the Bonds. Any payment made by the Issuer to the Trustees on behalf of the Bondholder(s)
shall discharge the Issuer pro tan to to the Bondholder(s). The Trustees shall protect the interest of the Bondholders in
the event of default by the Issuer in regard to timely payment of interest and repayment of principal and shall take
necessary action at the cost of the Issuer. No Bondholder shall be entitled to proceed directly against the Issuer
unless the Trustees, having become so bound to proceed, fail to do so.
The Trustees shall perform its duties and obligations and exercise its rights and discretions, in keeping with the trust
reposed in the Trustees by the holder(s) of the Bonds and shall further conduct itself, and comply with the provisions
of all applicable laws, provided that, the provisions of Section 20 of the Indian Trusts Act, 1882, shall not be applicable
to the Trustees. The Trustees shall carry out its duties and perform its functions as required to discharge its
obligations under the terms of SEBI Debt Regulations, the Securities and Exchange Board of India (Debenture
Trustees) Regulations, 1993, any other circulars issued by relevant regulators from time to time ,the Bond/ Debenture
Trusteeship Agreement, Bond/ Debenture Trust Deed, Draft Disclosure Document and all other related transaction
documents, with due care, diligence and loyalty.
The Trustees shall be vested with the requisite powers for protecting the interest of holder(s) of the Bonds including
but not limited to the right to appoint a nominee director on the Board of the Issuer in consultation with institutional
holders of such Bonds. The Trustees shall ensure disclosure of all material events on an ongoing basis.
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XII. STOCK EXCHANGE WHERE BONDS ARE PROPOSED TO BE LISTED
The Bonds are proposed to be listed on the Wholesale Debt Market (WDM) segment of National Stock Exchange
(“NSE”). The Issuer has obtained from NSE in-principle approval for listing of Bonds offered under the terms of this Draft
Disclosure Document vide letter dated 28.07.2021.
The Issuer shall complete all the formalities and seek listing permission from NSE within 4 trading days from the
Closure of Issue. In the event of delay in listing of Bonds beyond 4 trading days, except due to any technical reasons
beyond the control of company, from the Closure of Issue, the Company shall pay penal interest of 1.00% per annum
over the respective Coupon Rate from the Deemed Date of Allotment till the listing of Bonds to the Bondholder(s).
In connection with listing of Bonds with NSE, the Issuer hereby undertakes that:
a) it shall comply with the conditions of listing as specified in the Listing Agreement for the Bonds;
b) the credit ratings obtained for the Bonds shall be periodically reviewed by the credit rating agencies and any
revision in the ratings shall be promptly disclosed by the Issuer to NSE;
c) any change in credit ratings shall be promptly disseminated to the Bondholder(s) in such manner as NSE may
determine from time to time;
d) The Issuer, the Trustees and NSE shall disseminate all information and reports on the Bonds including
compliance reports filed by the Issuers and the Trustees regarding the Bonds to the Bondholder(s) and the
general public by placing them on their websites;
e) Trustees shall disclose the information to the Bondholder(s) and the general public by issuing a press release
and placing on the websites of the Trustees, the Issuer and NSE, in any of the following events:
i. default by Issuer to pay interest on the Bonds or redemption amount;

ii. failure to create charge on the assets;
iii. revision of the credit ratings assigned to the Bonds.
f) The Issuer shall, inter alia, till the redemption of Bonds, submit its latest audited/ limited review half yearly
consolidated (wherever available) and standalone financial information such as Statement of Profit & Loss,
Balance Sheet and Cash Flow Statement and auditor qualifications, if any, to the Trustees within the timelines
as mentioned in Simplified Listing Agreement issued by SEBI vide circular No. SEBI/IMD/BOND/1/2009/11/05
dated May11, 2009 as amended. Besides, the Issuer shall within 180 days from the end of the financial year,
submit a copy of the latest annual report to the Trustees and the Trustees shall be obliged to share the details so
submitted with all Qualified Institutional Buyers (“QIBs”) and other existing Bondholder(s) within two working
days of their specific request.
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XIII. MATERIAL CONTRACTS & AGREEMENTS INVOLVING FINANCIAL OBLIGATIONS OF THE ISSUER
By very nature of its business, the Issuer is involved in a large number of transactions involving financial obligations
and therefore it may not be possible to furnish details of all material contracts and agreements involving financial
obligations of the Issuer. However, the contracts referred to in Para A below (not being contracts entered into in the
ordinary course of the business carried on by the Issuer) which are or may be deemed to be material have been
entered into by the Issuer. Copies of these contracts together with the copies of documents referred to in Para B may
be inspected at the Head Office of the Issuer between 10.00 a.m. and 2.00 p.m. on any working day until the issue
closing date.
A. MATERIAL CONTRACTS
a) Copy of letters appointing Arrangers to the Issue.

b) Copy of letter appointing Registrars and copy of MoU entered into between the Issuer and the Registrars.
c) Copy of letter appointing Trustees to the Bondholders.
B. DOCUMENTS
a) The Food Corporations Act, 1964

b) Board Resolution dated 08.07.2021 authorizing issue of Bonds offered under terms of this Draft Disclosure
Document.
c) Letter of consent from the Trustees for acting as trustees for and on behalf of the holder(s) of the Bonds.
d) Letter of consent from the Registrars for acting as Registrars to the Issue.
e) Copy of in-principle approval for listing of Bonds from NSE.
f) Letter no. RL/FOCOLTD/274904/BOND/0721/14037/91730354 dated 23.07.2021 from CRISIL conveying the
credit rating for the Bonds along with rating rationale
g) Letter No. CARE/DRO/RL/2021-22/1854 dated 23.07.2021 CARE conveying the credit rating for the Bonds
along with rating rationale
h) Guarantee Agreement dated 15-07-2021 executed by and between Ministry of Consumer Affairs, Food &
Public Distribution (Department of Food & Public Distribution), Government of India, Food Corporation of India
and SBICAP Trustee Company Limited in the capacity of Trustees for the Bondholders.
i) Tripartite Agreement between the Issuer, NSDL and Registrars for issue of Bonds in dematerialised form.
j) Tripartite Agreement between the Issuer, CDSL and Registrars for issue of Bonds in dematerialised form.
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XIV. DECLARATION
The Issuer undertakes that this Draft Disclosure Document contains full disclosures in accordance with Securities and
Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide circular no. LAD-
NRO/GN/2008/13/127878 dated June 06, 2008, as amended, from time to time and such other circulars applicable
for issue of debt securities issued by SEBI from time to time.
The Issuer also confirms that this Draft Disclosure Document does not omit disclosure of any material fact which may
make the statements made therein, in light of the circumstances under which they are made, misleading. The Draft
Disclosure Document also does not contain any false or misleading statement.
The Issuer accepts no responsibility for the statement made otherwise than in the Draft Disclosure Document or in
any other material issued by or at the instance of the Issuer and that any one placing reliance on any other source of
information would be doing so at his own risk.
Signed pursuant to internal authority granted.
For Food Corporation of India
(Jayanta Sharma)
Executive Director (Finance)
Place: New Delhi

Date: 11.08.2021
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XV. ANNEXURES
A. COPY OF RATING LETTER & RATIONALE FROM CRISIL
B. COPY OF RATING LETTER & RATIONALE FROM CARE
C. COPY OF CONSENT LETTER FROM SBICAP TRUSTEE COMPANY LTD.
D. COPY OF CONSENT LETTER FROM BEETAL FINANCIAL & COMPUTER SERVICE (P) LTD.
E. COPY OF GUARANTEE AGREEMENT DATED 15.07.2021 EXECUTED BY AND BETWEEN

MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (DEPARTMENT OF
FOOD & PUBLIC DISTRIBUTION), GOVERNMENT OF INDIA, FOOD CORPORATION OF
INDIA AND SBICAP TRUSTEE COMPANY LTD
F. COPY OF BOARD RESOLUTION DATED 08.07.2021
G. COPY OF IN-PRINCIPLE APPROVAL LETTER FROM STOCK EXCHANGE DATED

28.07.2021
H. LIMITED REVIEW FINANCIAL STATEMENTS FOR HALF YEAR ENDED 31.03.2021
I. AUDITED FINANCIAL STATEMENTS FOR FY 2019-20
J. AUDITED FINANCIAL STATEMENTS FOR FY 2018-19
K. AUDITED FINANCIAL STATEMENTS FOR FY 2017-18
L. AUDITORS’ QUALIFICATIONS FOR FY 2019-20
M. AUDITORS’ QUALIFICATIONS FOR FY 2018-19
N. AUDITORS’ QUALIFICATIONS FOR FY 2017-18
O. APPLICATION FORM
CONFIDENTIAL
RL/FOCOLTD/274904/BOND/0721/14037/91730354
July 23, 2021
Mr. Jagdish Kumar

General Manager
16-20 Barakhamba Lane,
New Delhi - 110001
Dear Mr. Jagdish Kumar,
Re: CRISIL Rating on the Rs. 8000 Crore Bond of Food Corporation of India
We refer to your request for a rating for the captioned Debt instrument.
CRISIL Ratings has, after due consideration, assigned a CRISIL AAA (CE) /Stable (pronounced as CRISIL triple A credit
enhancement rating with Stable outlook) rating to the captioned Debt instrument. Instruments with this rating are considered
to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit
risk.
The rating has been assigned based on the credit enhancement structure as communicated and agreed to CRISIL Ratings.
Further, in view of your decision to accept the CRISIL Ratings, we request you to apprise us of the instrument details (in
the enclosed format) as soon as it has been placed. In the event of your company not making the issue within a period of
180 days from the above date, or in the event of any change in the size or structure of your proposed issue, a fresh letter of
revalidation from CRISIL Ratings will be necessary.
As per our Rating Agreement, CRISIL Ratings would disseminate the rating along with outlook through its publications and
other media, and keep the rating along with outlook under surveillance for the life of the instrument. CRISIL Ratings
reserves the right to withdraw, or revise the rating / outlook assigned to the captioned instrument at any time, on the basis of
new information, or unavailability of information, or other circumstances which CRISIL Ratings believes may have an
impact on the rating.
As per SEBI circular (reference number: CIR/IMD/DF/17/2013; dated October 22, 2013) on centralized database for
corporate bonds/debentures, you are required to provide international securities identification number (ISIN; along with the
reference number and the date of the rating letter) of all bond/debenture issuances made against this rating letter to us. The
circular also requires you to share this information with us within 2 days after the allotment of the ISIN. We request you to
mail us all the necessary and relevant information at [email protected]. This will enable CRISIL Ratings to verify and
confirm to the depositories, including NSDL and CDSL, the ISIN details of debt rated by us, as required by SEBI. Feel free
to contact us at [email protected] for any clarification you may need.
Should you require any clarification, please feel free to get in touch with us.
With warm regards,
Yours sincerely,
Rohan Kulshrestha Nivedita Shibu

Associate Director - CRISIL Ratings Associate Director - CRISIL Ratings
Disclaimer: A rating by CRISIL Ratings reflects CRISIL Ratings’ current opinion on the likelihood of timely payment of the obligations under the rated instrument, and does not
constitute an audit of the rated entity by CRISIL Ratings. Our ratings are based on information provided by the issuer or obtained by CRISIL Ratings from sources it considers
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CRISIL Ratings Limited

(A subsidiary of CRISIL Limited)
Corporate Identity Number: U67100MH2019PLC326247
____________________________________________________________________________________
___Registered Office: CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai- 400 076. Phone: +91 22 3342 3000 | Fax: +91 22 4040 5800
www.crisilratings.com
Details of the Rs.8000 Crore Bond of
1st tranche 2nd tranche 3rd tranche

Instrument Series:
Amount Placed:
Maturity Period:
Put or Call Options (if any):
Coupon Rate:
Interest Payment Dates:
Principal Repayment Details: Date Amount Date Amount Date Amount
Investors:
Trustees:
In case there is an offer document for the captioned Debt issue, please send us a copy of it.
Disclaimer: A rating by CRISIL Ratings reflects CRISIL Ratings’ current opinion on the likelihood of timely payment of the obligations under the rated instrument, and does not
constitute an audit of the rated entity by CRISIL Ratings. Our ratings are based on information provided by the issuer or obtained by CRISIL Ratings from sources it considers
reliable. CRISIL Ratings does not guarantee the completeness or accuracy of the information on which the rating is based. A rating by CRISIL Ratings is not a
recommendation to buy / sell or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. CRISIL Ratings has a practice of
keeping all its ratings under surveillance and ratings are revised as and when circumstances so warrant. CRISIL Ratings is not responsible for any errors and especially states
that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of its ratings. CRISIL Ratings’ criteria are available without charge to the public
on the web site, www.crisil.com. CRISIL Ratings or its associates may have other commercial transactions with the company/entity. For the latest rating information on any
instrument of any company rated by CRISIL Ratings, please contact Customer Service Helpdesk at [email protected] or at 1800-267-1301.

(A subsidiary of CRISIL Limited)
Corporate Identity Number: U67100MH2019PLC326247
____________________________________________________________________________________
___Registered Office: CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai- 400 076. Phone: +91 22 3342 3000 | Fax: +91 22 4040 5800
www.crisilratings.com
8/4/2021 Rating Rationale
Rating Rationale
July 23, 2021 | Mumbai

'CRISIL AAA (CE) /Stable' assigned to Bond
Rating Action
Rs.8000 Crore Bond CRISIL AAA (CE) /Stable (Assigned)
Rs.8000 Crore Bond CRISIL AAA (CE) /Stable (Reaffirmed)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
Detailed Rationale
CRISIL Ratings has assigned its ‘CRISIL AAA (CE) /Stable’ rating to the Rs 8,000 crore bond programme of Food
Corporation of India (FCI), while reaffirming its rating on the other debt programmes at ‘CRISIL AAA (CE) /Stable’.
The rating continues to reflect the support expected from the Government of India (GoI). Under the Food Corporations Act,
1964, the government is empowered to provide guarantees for bonds raised by FCI and for the ensuing interest payments.
The rating also factors in a trustee-monitored mechanism, which ensures timely payment of interest and principal. The
government is responsible for meeting debt obligation if the corporation has insufficient funds. The rating is subject to FCI's
compliance with the terms of the payment mechanism stipulated by CRISIL Ratings.
As repayment of debt is supported by letters of guarantee from the government, the rating reflects GoI's credit quality. The
rating is supported by FCI not being covered under the Sick Industrial Companies Act. Therefore, it can be placed under
liquidation only by an order from the government or by an authority appointed by the latter for this purpose.
Analytical Approach:
For arriving at the rating, CRISIL Ratings has applied its criteria for rating instruments backed by guarantees. As repayment
of FCI's debt is supported by letters of guarantee from the GoI, the rating reflects the latter’s credit quality.
Key Rating Drivers & Detailed Description
* Letters of guarantee from the GoI: The rating is based on the strength of letters of guarantee for the rated bonds from
the government. The guarantee shall not be transferrable to any agency without prior approval of the Budget division of the
Department of Economic Affairs, Ministry of Finance.
Also, the government has not waived off its suretyship rights. CRISIL Ratings believes that considering the strategic
importance of FCI, the GoI will continue to support the obligations on the bond programmes of the corporation.
* Trustee-administered payment structure, designed to ensure full and timely payment to investors: A trustee-
monitored designated trust and retention account has been opened for the exclusive benefit of the trustee (on behalf of the
bond holders) for the rated bond issuances. This, along with the well-defined T-structure, ensures timely payment of the
interest and principal obligations on the bond issuances.
Liquidity: Superior
The rating is driven by the letter of guarantee from the government. The payment T-structure has been designed
accordingly, and the trustee-administration ensures that it is followed. Utilisation of the sanctioned working capital limit of Rs
9,495 crore was moderate, averaging 40% in the 12 months through June 30, 2021. Further, the corporation avails multiple
short term loans from various banks for supporting working capital requirement. To meet any funding gaps, it receives
government support or raises funds from the market.
In the past, the government used to provide support through the National Small Saving Fund (NSSF) loans. However, in
Union Budget 2021, NSSF loans were discontinued and instead cash subsidy of Rs 462,789 crore was received, resulting in
liquidation of NSSF loans. As a result, the total external debt of the corporation reduced to Rs 41,521 crore as on June 30,
2021, from Rs 327,865 crore as on March 31, 2020.
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/FoodCorporationofIndia_July 23, 2021_RR_274904.html 1/7
Outlook: Stable
The rating reflects the credit quality of the GoI.
Rating Sensitivity Factors

Downward factors:
Non-adherence to the guarantee structure
Any change in the support philosophy of the government
Adequacy of credit enhancement structure

The government has provided a letter of guarantee for the rated bonds to FCI. The guarantee shall not be transferrable to
any agency without prior approval of the Budget division of the Department of Economic Affairs, Ministry of Finance. A
trustee-monitored designated trust and retention account has also been opened for the respective issuances. This, along
with the well-defined T-structure, ensures timely payment of the interest and principal obligations.
Unsupported ratings: ‘CRISIL AA+’
CRISIL Ratings has introduced the 'CE' suffix for instruments having an explicit credit enhancement feature in compliance
with the Securities and Exchange Board of India's circular dated June 13, 2019.
Key drivers for unsupported ratings
For arriving at the unsupported rating, CRISIL Ratings has considered the standalone business and financial risk profiles of
FCI. The rating also factors in the expected support from GoI and the fact that the corporation has been incorporated
through the Food Corporation Act, 1964. While the corporation does not generate cash flow from its own operations, it
remains strategically important for the government. However, FCI has a limited track record of raising and managing funds
on its own.
About the Corporation
FCI was constituted under the Food Corporations Act, 1964, to undertake effective price support operations to safeguard
the interests of farmers, distribute food grain across India through a public distribution system, and ensure national food
security by maintaining a satisfactory buffer and operational stocks. The corporation has successfully met these objectives
by providing market and price assurance for surplus food grain, thereby ensuring stability in supplies.
Key Financial Indicators (CRISIL-adjusted)
As on/for the period ended March 31 Unit 2020 2019
Revenue Rs.Crore 156,222 152,648
Profit After Tax (PAT) Rs.Crore - -
PAT Margin % - -
Adjusted debt/adjusted networth Times 73.5 74.1
Interest coverage Times 0.95 0.93
List of covenants
The material covenants of the instruments are as follows:
1. The GoI would only cover the principal amount and nominal interest
2. The guarantee shall not be transferrable to any agency without prior approval of the Budget division of the
3. Review of the guarantee shall be ensured as provided under rule 281 of General Financial Rules, 2017
4. In case of default, the lending agency may invoke the guarantee until 60 days of settlement of claims by the
government. Therefore, if pledged stocks have been liquidated and loss claim thereon settled by the government,
the lenders will be free to keep the guarantee current until 60 days of loss claim being settled and paid by the
government to the lending agency
5. In case the guarantee is not invoked within the stipulated period of 60 days
a. The government shall not be liable to pay any interest beyond the commencement of default
b. The guarantee shall cease to exist only for that portion of demand for which the government guarantee has
not been invoked
6. If any disputes or differences could not be resolved amicably by the parties, the sole arbitrator shall be appointed by
the parties on the basis of mutual agreement.
7. Any modification, amendments, alteration and/or variation in the terms of the guarantee shall be made only after
obtaining written consent of the government/parties
Any other information: Not applicable
Note on complexity levels of the rated instrument:

CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity
levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity
levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries
on specific instruments.

Annexure - Details of Instrument(s)
Name of Date of Coupon Maturity Issue size Complexity Rating assigned
ISIN
instrument allotment rate (%) date (Rs.Crore) Level with outlook
Bond (Series V) 22-Mar- 22-Mar- CRISIL AAA
INE861G08019 8.62% 300 Simple
– Option 1 2013 2023 (CE) /Stable
Bond (Series V) 22-Mar- 22-Mar- CRISIL AAA
INE861G08027 8.80% 4700 Simple
07-Mar- 07-Mar- CRISIL AAA
INE861G08035 Bond (Series VI) 9.95% 8000 Simple
2014 2022 (CE) /Stable
Bond (Series VII) 01-Mar- 01-Mar- CRISIL AAA
INE861G08043 8.95% 2737.7 Simple
Bond (Series VII) 09-Jan- 09-Jan- CRISIL AAA
INE861G08068 7.60% 5262.3 Simple
Bond (Series 12-Dec- 12-Dec- CRISIL AAA
INE861G08050 7.64% 8000 Simple
VIII) 2019 2029 (CE) /Stable
CRISIL AAA
NA Bond* NA NA NA 8000 Simple
(CE) /Stable
*Yet to be placed
Annexure - Rating History for last 3 Years

Start of
Current 2021 (History) 2020 2019 2018
2018
Outstanding
Instrument Type Rating Date Rating Date Rating Date Rating Date Rating Rating
Amount
CRISIL CRISIL CRISIL CRISIL
AAA AAA CRISIL AAA AAA AAA
Bond LT 37000.0 -- 10-12-20 04-12-19 26-04-18
(CE) (CE) (CE) /Stable (SO) (SO)
/Stable /Stable /Stable /Stable
Provisional
CRISIL AAA
-- -- -- 06-09-19 (CE) -- --
/Stable,CRISIL
AAA (CE)
/Stable
CRISIL AAA
-- -- -- 19-02-19 -- --
(SO) /Stable
Provisional
CRISIL AAA
(SO)
-- -- -- 23-01-19 -- --
/Stable,CRISIL
AAA (SO)
/Stable
All amounts are in Rs.Cr.
Criteria Details
Links to related criteria

CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Criteria for Notching up Stand Alone Ratings of Entities Based on Government Support
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No. CARE/DRO/RL/2021-22/1854
Shri Mr. Jagdish Kumar

General Manager
FCI Headquarters
16-20 Barakhamba Lane,
New Delhi
Delhi 110001
July 23, 2021

Confidential
Dear Sir,
Credit rating for proposed bond issue
Please refer to your request for rating of proposed Long term bond aggregating to Rs. 8000.00 crore
of your Company. The proposed Bonds would have tenure of 10 years with bullet repayment at the
end of tenth year.
2. The following ratings have been assigned by our Rating Committee:

Amount
Sr. No. Instrument Rating1 Rating Action
(Rs. crore)
CARE AAA (CE);
Stable
1. Bonds 8,000.00 [Triple A (Credit Assigned
Enhancement);
Outlook: Stable]
8,000.00
(Rs. Eight
Total Instruments
Thousand Crore
Only)
Unsupported Rating [1] CARE AA (Double A)
1
Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications.
[1]
As stipulated vide SEBI circular no SEBI/ HO/ MIRSD/ DOS3/ CIR/ P/ 2019/ 70 dated June 13, 2019. As per this circular, the
suffix ‘CE’ (Credit Enhancement) is assigned to the ratings with explicit external credit enhancement, against the earlier used suffix ‘SO’
(Structured Obligation).
CARE Ratings Ltd.

CORPORATE OFFICE: 4th Floor, Godrej Coliseum, Somaiya 13th Floor, E-1 Block, Videocon Tower
Hospital Road, Off Eastern Express Highway, Sion (E), Mumbai - Jhandewalan Extension, New Delhi - 110 055.
400 022. Tel: +91-11-4533 3200 ⚫ Fax: +91-11-4533 3238
Tel.: +91-22- 6754 3456 ⚫ Fax: +91-22- 022 6754 3457
Email: [email protected] ⚫ www.careratings.com
CI`N-L67190MH1993PLC071691
3. The above rating is based on the credit enhancement in the form of unconditional and
irrevocable guarantee from Government of India (GoI) for servicing of the interest and principal
repayment obligations for the entire tenure of the bond issue supported by trustee
administered structured payment mechanism.
4. Please arrange to get the rating revalidated, in case the proposed issue is not made within a
period of six months from the date of our initial communication of rating to you (that is July 23,
2021).
5. In case there is any change in the size or terms of the proposed issue, please get the rating
revalidated.
6. Please inform us the below-mentioned details of issue immediately, but not later than 7 days
from the date of placing the instrument:
Name and
Issue
Coupon contact Details
Instrument Size Coupon Terms of Redemption
ISIN Payment details of of top 10
type (Rs Rate Redemption date
Dates Debenture investors
cr)
Trustee
7. Kindly arrange to submit to us a copy of each of the documents pertaining to the issue, including
the offer document and the trust deed.
8. The rationale for the rating will be communicated to you separately. A write-up (press release)
on the above rating is proposed to be issued to the press shortly, a draft of which is enclosed
for your perusal as Annexure 2. We request you to peruse the annexed document and offer
your comments if any. We are doing this as a matter of courtesy to our clients and with a view
to ensure that no factual inaccuracies have inadvertently crept in. Kindly revert as early as
possible. In any case, if we do not hear from you by July 26, 2021, we will proceed on the basis
that you have no any comments to offer.
9. CARE reserves the right to undertake a surveillance/review of the rating from time to time,
based on circumstances warranting such review, subject to at least one such
review/surveillance every year.
10. CARE reserves the right to revise/reaffirm/withdraw the rating assigned as also revise the
outlook, as a result of periodic review/surveillance, based on any event or information which
CARE Ratings Ltd.

13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi - 110 055.
Tel: +91-11-4533 3200 ⚫ Fax: +91-11-4533 3238
in the opinion of CARE warrants such an action. In the event of failure on the part of the entity
to furnish such information, material or clarifications as may be required by CARE so as to
enable it to carry out continuous monitoring of the rating of the bank facilities, CARE shall carry
out the review on the basis of best available information throughout the life time of such bank
facilities. In such cases the credit rating symbol shall be accompanied by “ISSUER NOT
COOPERATING”. CARE shall also be entitled to publicize/disseminate all the afore-mentioned
rating actions in any manner considered appropriate by it, without reference to you.
11. Our ratings do not factor in any rating related trigger clauses as per the terms of the
facility/instrument, which may involve acceleration of payments in case of rating downgrades.
However, if any such clauses are introduced and if triggered, the ratings may see volatility and
sharp downgrades.
12. Users of this rating may kindly refer our website www.careratings.com for latest update on the
outstanding rating.
13. CARE ratings are not recommendations to buy, sell or hold any securities.
14. If you need any clarification, you are welcome to approach us in this regard. We are indeed,
grateful to you for entrusting this assignment to CARE.
Thanking you,
Yours faithfully,
Richa Jain Jasmeen Kaur

Assistant Director Director
[email protected] [email protected]
Encl.: As above
CARE Ratings Ltd.

Tel: +91-11-4533 3200 ⚫ Fax: +91-11-4533 3238
Disclaimer
CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are
not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any
security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on
the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be
accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information
and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most
entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and
type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions
with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based
on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook
may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in
addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that
it has no financial liability whatsoever to the users of CARE’s rating.
Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may
involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if
triggered, the ratings may see volatility and sharp downgrades.
CARE Ratings Ltd.

Tel: +91-11-4533 3200 ⚫ Fax: +91-11-4533 3238
Food Corporation of India (FCI)
Ratings
Amount
Facilities/Instruments Ratings Rating Action
(Rs. crore)
CARE AAA (CE); Stable
Long Term Long Term
8,000.00 [Triple A (Credit Enhancement); Outlook: Assigned
Instruments- Bonds
Stable ]
Long Term Long Term
8,000.00 [Triple A (Credit Enhancement); Outlook: Reaffirmed
Instruments- Bonds
Stable ]
Long Term Long Term
Instruments- Bonds
Stable ]
Long Term Long Term
Instruments- Bonds
Stable ]
Long Term Long Term
Instruments- Bonds
Stable ]
40,000.00
(Rs. Forty
Total Long Term Instruments
Thousand Crore
Only)
Details of instruments/facilities in Annexure-1
^The above rating is based on the credit enhancement in the form of unconditional and irrevocable guarantee from
Government of India (GoI) for servicing of the Interest and principal repayment obligations for the entire tenure of the bond
issue supported by trustee administered structured payment mechanism.
Unsupported Rating 1 CARE AA (Double A)

Note: Unsupported Rating does not factor in the explicit credit enhancement
Detailed Rationale & Key Rating Drivers

The ratings assigned to the bonds of Food Corporation of India (FCI) continues to factor in the credit enhancement in the form
of unconditional and irrevocable guarantee provided by Ministry of Consumer Affairs, Food and Public Distribution,
Government of India (GoI), supported by a trustee administered structured payment mechanism. The rating also factors in the
100% ownership of FCI by GoI, its strategic role in India’s food programme through established and diversified operations
including its role as an agent for executing food policies of GoI. The ratings further factor in the support extended by GoI for
the reimbursement of all the expenses and funding of the financial requirements of FCI.
Going forward, the continued support from GoI and the ability of the Corporation to perform its role as a facilitator for food
security, while managing its liquidity position, would remain crucial.
The unsupported rating of FCI takes into account the standalone business and financial risk profile of FCI. The unsupported
rating of FCI further also factors in the strategic importance of FCI to GoI. FCI is the nodal agency for maintaining food security
in the nation and is only implementing GoI Food Programme and not involved in any commercial venture. The rating also
factors in the expected support from GoI and the fact that it has been incorporated through the Food Corporation Act, 1964.
Negative Factors: Factors that could lead to negative rating action/ downgrade:
1
As stipulated vide SEBI circular no SEBI/ HO/ MIRSD/ DOS3/ CIR/ P/ 2019/ 70 dated June 13, 2019. As per this circular, the
suffix ‘CE’ (Credit Enhancement) is assigned to the ratings with explicit external credit enhancement, against the earlier used
suffix ‘SO’ (Structured Obligation).
• Any change in ownership of FCI or support from GoI
• Any dilution in the strategic role of FCI as the nodal agency for the India’s food programme
• Non-Adherence to the structure as defined in the Guarantee Agreement
Detailed description of the key rating drivers
Key Rating Strengths

Credit Enhancement in the nature of unconditional & irrevocable guarantee from GoI for the entire bond issue supported by
trustee administered structured payment mechanism
All the bond issues are backed by unconditional and irrevocable guarantee for servicing of the entire bond issue (both principal
amount as well as the accrued interest) from GoI through the Ministry of Consumer Affairs, Food and Public Distribution.
A trustee-monitored structured payment mechanism is in place to ensure the timely payment of the interest & principal
obligations on the bond issue through a tripartite agreement between FCI, Trustee (IDBI Trusteeship Services Limited for all
the previous bond issues and SBICAP Trustee Company Limited for the fresh bond issue) and GOI/ President of India. The
trustee will facilitate timely servicing of FCI’s obligations by GOI if FCI does not have sufficient funds to do so.
The following payment structure (wherein “T1” is assumed to be the due date for interest payments and “T2” is assumed to
be the due date for principal repayments of the bonds) is envisaged for meeting the obligations of the rated bonds:
Interest Payments (T1 represents interest payment due date)
(T1-30)th Trustees to inform FCI and the GOI in writing regarding the due date for payment of
day* interest amount so that the necessary arrangements could be made for meeting the
interest payment obligations on the Bonds.
(T1-8)th The Designated Trust and Retention Account is to be funded by FCI to the tune of the
day* interest obligations on the Bonds.
(T1-7)th If the Designated Trust and Retention Account is not funded to the requisite extent by (T1-
day* 8)th day, the Trustees shall forthwith invoke the GOI Guarantee by sending a Notice of
Invocation to GOI.
(T1-3)th Last date by which GOI shall deposit requisite funds in the Designated Trust and Retention
day* Account as per the Notice of Invocation served by the Trustees.
*If any Coupon Payment Date falls on a day that is not a Business Day, the payment shall be made by the Issuer on the following
working day in line with SEBI circular No.CIR/IMD/DF-1/122/2016 dated November 11, 2016.
Principal Repayment (T2 represents principal payment due date)

(T2-30)th Trustees to inform FCI and the GOI in writing regarding the due date for repayment of
day* Principal amount so that the necessary arrangements could be made for meeting the
Principal repayment obligations on the Bonds.
(T2-8)th The Designated Trust and Retention Account is to be funded by FCI to the tune of the
day* Principal obligations on the Bonds.
(T2-7)th If the Designated Trust and Retention Account is not funded to the requisite extent by
day* (T2-8)th day, the Trustees shall forthwith invoke the GOI Guarantee by sending a Notice
of Invocation to GOI.
(T2-3)th Last date by which GOI shall deposit requisite funds in the Designated Trust and
day* Retention Account as per the Notice of Invocation served by the Trustees.
*If the Redemption Date (also being the last Coupon Payment Date) of the Bonds falls on a day that is not a Business Day, the
redemption proceeds shall be paid by the Issuer on the immediately preceding Business Day along with interest accrued on the
Bonds until but excluding the date of such payment.
Further, in case of accelerated payments (which shall be triggered when investor demands for pre-payment in case of any non-
fulfillment of documentational requirement by FCI pertaining to the bond issue), the trustee is required to inform FCI and GOI
on T+1st (T being the trigger date) and the trust account has to be funded by T+8th day, failing which the guarantee shall be
invoked by T+9th day. The last day for deposit of funds as per the invocation notice shall be T+15 th day.
Adequacy of credit enhancement structure
Government has provided Guarantee for the rated bonds to FCI, which is unconditional, irrevocable and continuing in nature
and covers the repayment of the principal amount of the bonds, interest accrued and any other amount payable to the
bondholders, in the event the borrower i.e. FCI defaults in servicing of the aforesaid amounts to the bondholders. The
guarantee shall not be transferrable to any agency without prior approval of the Budget division of the Department of Economic
Affairs, Ministry of Finance. The guarantee also carries a well-defined invocation and payment mechanism wherein a trustee-
monitored designated trust and retention account has also been opened for the respective issuances. This ensures timely
payment of the interest and principal obligations.
Established track record and experienced management

FCI has been operating for over five decades. FCI plays a significant role in maintaining India's stable/ surplus food security
system by acting as a facilitator for food security by providing price & market assurance to the farmers, ensuring steady food
grain supplies to Fair Price Shops for PDS, food-for-all and other welfare schemes. FCI undertakes purchases of about 40 million
tonnes of food grains annually and is the largest buyer in the world and undertakes effective market intervention to stabilize
prices. The management of FCI is vested in the Board of Directors appointed by the Central Government.
Strategic role of FCI and its established and diversified operations including its role as an agent for executing food policies
of GoI
FCI, the nodal central agency of GoI, plays a significant role in maintaining India's stable/ surplus food security system by acting
as a facilitator for food security by providing price & market assurance to the farmers, ensuring steady food grain supplies for
Public Distribution System (PDS), National Food Security Act (NFSA) and other welfare schemes undertaken by GoI. FCI, along
with other State Agencies is engaged in procurement of food grains at minimum support price declared by Government of
India, store food grains so procured, transport the surplus food grains to deficit states and issue it to State Governments under
Public Distribution System at a price decided by the GOI.
FCI procures grains from the farmers at the Minimum support price (MSP) as determined by the central government and sells
the food grains at the price, also determined by the Central Government. The cost incurred by FCI is much higher than that of
selling price. The difference between the cost of FCI’s overall operations and sales realization through the public distribution
system is reimbursed by the government through food subsidies. For FY21, Under NFSA, the selling price of wheat was fixed
at Rs. 2.00/Kg and the selling price of rice at Rs. 3.00/Kg while ~Rs.27.39/Kg (PY: Rs.26.79/Kg) was incurred by FCI for the
procurement and distribution process of wheat and Rs.39.99/Kg (PY: ~Rs. 37.48/Kg) for the procurement and distribution
process of rice.
In FY20, FCI received food subsidy of Rs.75,000 crore. Thereafter, in FY21, apart from realization of its previous balance of
Rs.2,43,779 cr, FCI has received additional subsidy of Rs.2,19,010 cr from GOI. The additional subsidy was received in order to
support increased distribution of food grains by the corporation due to Covid-19 as free food grains were distributed under
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This inflow has been utilized towards to deleverage the balance sheet by
paying off the NSSF loans standing on its books. As on June 30, 2021 FCI has nil subsidy receivables and the total debt stood at
Rs.41,521 crore.
Ownership and support of GoI

FCI is a 100% Government of India (GoI) owned undertaking. FCI, the nodal central agency of Government of India, operates a
unique business model which run on the basis of zero profit and zero loss. FCI is only implementing Government of India food
programme and not involved in any commercial venture. Since, the issue prices declared by Government of India under
different schemes are much lower than the cost of food grains procured; the differential amount is reimbursed to FCI as food
subsidy by the Government of India. FCI also maintains buffer stocks of food grains as mandated by the Government of India
and intervene in the domestic market to control the rising prices of the food grains. Also, FCI has a track record of receiving
regular support from the government in form of equity infusion and guarantee for the borrowings of the Corporation. GOI
supports the funding for delayed receivables, to maintain sufficient inventory and to manage its working capital requirements
by equity infusion/ providing NSSF loans/ guarantees to obtain funds from market. The repayment of these loans including
interest cost is also done by GOI by providing additional subsidy/ new loans.
Strong Liquidity
The rating is supported by unconditional and irrevocable Guarantee from GoI. The payment T-structure has been designed
accordingly, and the trustee-administration ensures that it is followed. Since FCI needs to maintain buffer stock of close to 6
months in order to ensure National Food Security, as well as high level of receivables from GOI, majorly food subsidy
receivables, it has high reliance on external borrowing including working capital limits to support its operations. FCI also avails
multiple short-term loans with various banks for supporting its working capital requirement. However, support from GoI and
its ability to raise funds provide comfort to its liquidity position. FCI has access to various sources of finances like CC limits,
working capital loans, ways and means advance, unsecured short-term loans and NSSF loans to support its operations. Further,
there has been improvement in liquidity position in FY21 and Q1FY22 and substantial debt reduction out of additional subsidy
received during the year. Utilization of CC limit has also reduced to Rs.521 cr as on June 30, 2021 against sanctioned amount
of Rs.9,495 cr (5.5% utilization basis June end balance).
Analytical approach: Credit enhancement in the form of unconditional and irrevocable guarantee from GoI for servicing of the
Interest and principal repayment obligations for the entire tenure of the bond issue supported by trustee administered
structured payment mechanism.
Unsupported Ratings: The unsupported rating of FCI takes into account the standalone business and financial risk profile of
FCI. The rating also factors in the expected support from GoI and the fact that it has been incorporated through the Food
Corporation Act, 1964.
Applicable Criteria
Criteria on assigning ‘outlook’ and ‘credit watch’ to Credit Ratings
CARE's Policy on Default Recognition
Financial Ratios - Non-Financial Sector
Liquidity Analysis of Non-financial sector entities
Rating Methodology - Service Sector Companies
CARE's Methodology for factoring linkages in ratings
Criteria for Rating Credit Enhanced Debt
About the Company

Food Corporation of India (FCI) is a Public Sector Undertaking under the Department of Food & Public Distribution, Ministry of
Consumer Affairs, Food & Public Distribution, Government of India (GoI), wholly owned by GoI and is the main agency
responsible for execution of food policies of the GoI. FCI was constituted on January 14, 1965 under The Food Corporations
Act 1964, in order to fulfill following objectives of the Food policy of Government of India through effective price support
operations for safeguarding the interests of the farmers, distribution of food grains throughout the country for Public
Distribution System (PDS) and Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National
Food Security. FCI operates through a country-wide network with its Corporate Office in New Delhi, 5 Zonal Offices in major
metros, 24 Regional Offices in major State capitals and 166 District Offices.
The GoI fixes the Minimum Support Price (MSP) of food grains at which procurement is made from the farmers. The Central
Issue Price (CIP) of food grains and allocations of quantity of food grains under National Food Security Act (NFSA) and various
Welfare schemes of GoI, for different States/UTs are fixed by the GoI. Difference between the Economic Cost (MSP,
Procurement Incidentals and Distribution Cost) and the CIP is the operational loss of the Corporation which is reimbursed by
the GoI as food subsidy. Besides, GoI also reimburses the cost of carrying the buffer stock of foodgrains to FCI as a part of food
subsidy. The arrears of food subsidy as on March 31, 2021 (PY: Rs.2,43,779 crore) and as on June 30, 2020 were nil (PY: Rs.
299,614 crore).
Covenants of rated instrument / facility: Detailed explanation of covenants of the rated instruments/facilities is given in
Annexure-3
Brief Financials (Rs. crore) FY19 (A) FY20 (Prov.) FY21 (LRR)
Total operating income 152306 156037 240060
PBILDT 11832 18389 28629
Brief Financials (Rs. crore) FY19 (A) FY20 (Prov.) FY21 (LRR)
PAT - - -
Overall gearing (times) 74.02 73.27 10.92
Interest coverage (times) 0.89 0.93 0.98
A: Audited; Prov.: Provisional; LRR: Limited review report
Status of non-cooperation with previous CRA: Not Applicable
Any other information: Not Applicable
Rating History for last three years: Please refer Annexure-2
Annexure-1: Details of Instruments/Facilities

Rating
Size of the
Name of the Date of Coupon Maturity assigned along
ISIN Issue
Instrument Issuance Rate Date with Rating
(Rs. crore)
Outlook
CARE AAA (CE);
Bonds (Series VI) INE861G08035 March 07, 2014 9.95 March 07, 2022 8000.00
Stable
CARE AAA (CE);
Bonds (Series VII) INE861G08043 March 01, 2019 8.95 March 01, 2029 2737.70
Stable
CARE AAA (CE);
Bonds (Series VII A) INE861G08068 January 09, 2020 7.60 January 09, 2030 5262.30
Stable
December 12, December 12, CARE AAA (CE);
Bonds (Series VIII) INE861G08050 7.64 8000.00
2019 2029 Stable
Un Supported -
- - - 0.00 CARE AA
Rating
CARE AAA (CE);
Bonds (Series IX) INE861G08076 October 23, 2020 6.65 October 23, 2030 8000.00
Stable
Bonds (Series X) CARE AAA (CE);
- - - - 8000.00
Proposed Stable
Annexure-2: Rating History of last three years
Current Ratings Rating history
Name of the Date(s) & Date(s) &

Sr. Type Rating Date(s) & Date(s) &
Instrument/Bank Amount Rating(s) Rating(s)
No. Rating(s) Rating(s)
Facilities Outstanding assigned assigned
assigned in assigned in
(Rs. crore) in 2020- in 2019-
2021-2022 2018-2019
2021 2020
1)CARE 1)CARE
AAA (CE); AAA (CE); 1)CARE AAA
CARE AAA (CE);
Stable Stable (SO); Stable
1. Bonds LT 8000.00 Stable -
(04-Dec- (06-Dec- (24-Jan-19)
20) 19)
1)CARE AAA
1)CARE 1)CARE
(SO); Stable
AAA (CE); AAA (CE);
CARE AAA (CE); (19-Feb-19)
Stable Stable
2. Bonds LT 8000.00 Stable - 2)Provisional
(04-Dec- (06-Dec-
CARE AAA (SO);
20) 19)
Stable
(24-Jan-19)
1)CARE 1)CARE
AAA (CE); AAA (CE);
CARE AAA (CE);
Stable Stable
3. Bonds LT 8000.00 Stable - -
(04-Dec- (06-Dec-
20) 19)
1)CARE
1)CARE AA
AA; Stable
CARE AA (04-Dec-
4. Un Supported Rating LT 0.00 - (06-Dec- -
20)
19)
1)CARE
AAA (CE);
Stable
(04-Dec-
CARE AAA (CE); 20)
5. Bonds LT 8000.00 Stable - 2)CARE - -
AAA (CE);
Stable
(13-Oct-
20)
CARE AAA (CE);

6. Bonds LT 8000.00 Stable - - - -
Annexure-3: Detailed explanation of covenants of the rated instrument / facilities –
1. The Government of India guarantee would only cover the principal amount and the normal interest.
2. The guarantee shall not be transferrable to any agency without prior approval of the Budget division of the
3. Annual review of the guarantees and proper utilization of funds so guaranteed shall be undertaken in order to curtail
the risk of default.
4. In case of default, the lending agency may invoke the guarantee until 60 days of settlement of claims by the
Government. Therefore, if pledged stocks have been liquidated and loss claim thereon settled by the Government,
the lenders will be free to keep the guarantee current until 60 days of loss claim being settled and paid by the
government to the lending agency.
5. Prior written concurrence or consent of GOI shall be obtained for any modification, amendments, alteration and/or
variation in the terms of the bonds which may result in enhancement of liability or guarantee obligations of GOI.
Annexure 4: Complexity level of various instruments rated for this Company
Sr.
Name of the Instrument Complexity Level
No.
1. Bonds Simple
2. Un Supported Rating Simple
Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This classification
is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected]
for any clarifications.
Contact us
Media Contact
Name: Mradul Mishra
Contact no: +91-22-6837 4424
Email ID: [email protected]
Analyst Contact 1
Group Head Name: Ms. Jasmeen Kaur
Group Head Contact no: 011 – 4533 3237
Group Head Email ID: [email protected]
Analyst Contact 2
Name: Ms. Ravleen Sethi
Contact no: 011 – 4533 3251
Business Development Contact

Name: Swati Agrawal
Contact no: +91-11-4533 3200
About CARE Ratings:

CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies
in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment
Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around
investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various
requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return
expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent
with the international best practices.
Disclaimer
CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not
recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings
do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its
ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the
accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from
the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the
amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the
entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by
the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal
of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors.
CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating.
Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration
of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and
sharp downgrades.
**For detailed Rationale Report and subscription information, please contact us at www.careratings.com
SBICAP Trustee Company Ltd.
Ref No. 2823/2020-2021/CL - 3230

Date: 26th February, 2021.
Ground Floor, Block 4-5,
Rajendra Bhawan, Rajendra Palace,
Central Delhi, Delhi -11008
Issue of Unsecured, Redeemable, Non-Cumulative, Non-Convertible Debentures (NCDs) upto Rs. 8,000 crores on
Private placement basis by Food Corporation of India (“Company”).
We, the undersigned, do hereby consent to act as a Debenture Trustee to the Issue and to our name being inserted as the
Debenture Trustee to the Issue in the ‘Offer document /Private placement offer letter’ to be filed by the Company with
the Indian stock exchanges where the Debentures are proposed to be listed (the “Stock Exchanges”) and any other
document intended to be filed with Stock Exchanges, SEBI and other regulatory or statutory authority in respect of the
Issue. The following details with respect to us may be disclosed:
Name : SBICAP Trustee Company Limited

Address : 4th Floor, Mistry Bhavan, 122,
Dinshaw Vachha Road, Churchgate,
Mumbai 400 020.
Telephone No. : 022-43025555
Fax No. :022- 22040465
Investor Grievance e-mail : [email protected]
Website : www.sbicaptrustee.com
Contact Person : Ms. Anupama Naidu (Company Secretary & Compliance Officer )
Tel No. 022- 43025503
SEBI Registration No.: IND000000536
We confirm that we are registered with SEBI and that such registration is valid as on the date of this letter. We enclose a
copy of our registration certificate. We also confirm that we have not been prohibited by SEBI to act as an intermediary
in capital market issues. We further confirm that no enquiry/investigation is being conducted by SEBI on us.
We further confirm that we have not received any communication from SEBI prohibiting us from acting as the
intermediary:
We confirm that we will immediately inform the Company of any change, additions or deletions in respect of the matters
covered in this certificate till the date when the Debentures offered, issued and allotted pursuant to the Issue, are admitted
for trading on the Stock Exchanges. In the absence of any such communication from us, the above information should be
taken as updated information until the listing and trading of Debentures on the Stock Exchanges.
We hereby authorise you to deliver this letter of consent to the Stock Exchanges and any other regulatory or statutory
authority as required.
Sincerely,
For SBICAP Trustee Company Ltd.
Ardhendu Mukhopadhyay
Sr. Manager – Marketing & Operations
www.sbicaptrustee. com Corporate Office: Registered Office:

4th Floor,Mistry Bhavan,122, 202, Maker Tower E,
+91 22 4302 5566
+91 22 4302 5555 Dinshaw Vachha Road, Cuffe Parade, Mumbai - 400 005.
+91 22 2204 0465 Churchgate, Mumbai, CIN : U65991MH2005PLC158386
· [email protected] Pin - 400 020.
A Group Company of SBI

REF: - BTL/RTA/FCI/427
06.02.2020
General Manager (Funds)
New Delhi-110 001
Dear Sir/Madam,
Subject: - Our Appointment as Registrar & Transfer Agent (RTA) for the proposed issue by
Food Corporation of India:-
This has reference to your email dated 04.02.2021 in which your goodself appoint us as Registrar
for your forthcoming GOI Guaranteed Long Term Bond Issue of Rs.8,000 Crore during next 2-3
months.
We are thankful to you for imposing confidence in us for appointing us as Registrar for your
above Bond Series. We give our acceptance for the said appointment.
The terms & Conditions of payment will be remains same as in tender ID: 2020_FCI_567398_1
Dated 26.06.2020.
This is for your kind information please.
Thnking you and assuring our best services at all time.
Yours faithfully,
For BEETAL
Financial & Computer Services Pvt. Ltd.
(Punit Mittal)
General Manager
Encl.:- a. a.
CIN No.:- U67120DL1993PTC052486

INDIA NON JUDICIAL
Government of National Capital Territory of Delhi
e-StampP
Certificate No. IN-DL96833599903107T

Certificate Issued Date 13-Jul-2021 01:21 PM
Account Reference SELFPRINT (PU) dl-selt/ NEHRU/ DL-DLH

Unique Doc. Reference SUBIN-DLDL-SELF91 828587626661T
Purchased by ASHWANI SRIVASTAVA
Description of Document Article 5 General Agreement
Property Description TRIPARTITE AGREEMENT FOR BOND ISSUE
Consideration Price (Rs.) 0
(Zero)
First Party DFPD MOCAF AND PD GOI
Second Paty SBICAP TRUSTEE COMPANY LIMITED
Stamp Duty Paid By DFPD MOCAF AND PD GOI
Stamp Duty Amount(Rs.) 500

(Five Hundred only)
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GUARANTEE AGREEMENT
THIS DEED OF GUARANTEE
Delhi, on (the "Deed") is made
this day ofJo of the year Two Thousand and
at New
Twenty One.
Among
THE PRESIDENT OF INDIA, on behalf of the
acting through Additional Secretary GOVERNMENT OF INDIA and
Public Distribution and Government (Policy, FCI), Ministry of Consumer
of India, Affairs, Food &
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(hereinafter referred to as "GOI", which expression shall, unless be repugnant to the subject
or context thereof, includes his/her successor in office) of the First Part.
And
SBICAP Trustee Company Limited, having its registered Office at 202, Maker Tower E,
Cuffe Parade, Mumbai 400 005; Tel. No. 022-4302 5555 Fax: 022-2204 0465 and Corporate
office at Mistry Bhavan, 04th Floor, 122 Dinshaw Vachha Road, Churchgate Mumbai
400020 and branch office at 610, 6th Floor, Ansal Bhawan, Kasturba Gandhi Marg, New
Delhi 110001, Email [email protected] (hereinafter referred to as the
Trustee"', which expression shall, unless be repugnant to the subject or context thereof,
include the Trustee(s) for the time being and their successors, assignees, transterees,
novatees and assigns) of the Second Part.
And
Food Corporation of India, a Statutory Corporation incorporated under the Food Corporations
Act, 1964, having its head office at 16-20,Barakhamba Lane, New Delhi-1 10001 (hereinafter
referred to as the "Corporation", which expression shall, unless be repugnant to the subject or
context thereof, include their successors, assignees, transferees, novatees and assigns) in its
capacity as a "Confirming Party", of the Third Part.
WHEREAS:
The Corporation has vide Disclosure Document, offered for subseription of the Bonds on
private placement basis (defined hereinafter) for the purposes mentioned in the Disclosure
Document for Financial year 2021-22.
1. The Trustee has agreed to act as a Trustee for the Holders of the Bonds on the condition
that the Corporation shall approach Gol to issue an unconditional and irrevocable
guarantee in favour of the Trustee as security for the obligations of the Corporation to
the Holders of the Bonds and the Trustee.
NOW THIS DEED WITNESSETH AS FOLLOWS:
For the purpose of providing sufficient security to the Investors proposing to

subscribe to the said Bonds about the ability of Corporation to service the said Bonds,
the following course has been proposed to be undertaken:
(a) Gol shall unconditionally and irrevocably guarantee the servicing of the said Bonds
in terms of this Agreement (both principal amount as well as the accrued interest) as
and when the default occurs on the part of the Corporation.
(b) SBICAP Trustee Company Limited shall be the Trustee for the Bonds issued by way
of its consent letter dated 26.02.2021 for the benefit of the Holders of the Bonds and
upon request being made by the Trustees in accordance with this Agreement for
invoking the guarantee offered; the Gol shall make available the requisite funds into
the designated Trust and Retention account for
servicing the Bonds and duly
complying with the commitments undertaken thereunder.
JosanluKUMAR
Jolnt Secretary
TRGI ITET TT
y
-20 IRTIT T/16-20 B.FCIHars.
Government of India
Deptt. of Food & Public Distribution K. Lane
Der
Krishi Bhawsn, New Delhi-110001
ecl-110001/ New Delhi-110001
The Disclosure Document to the extent not being in conflict with this Agreement
(c)
shall form part of this Agreement.
AND WHEREAS in the circumstances recited above, the Parties hereto are entering
for various matters
into and present Agreement with a view to provide
executing the
funds available in the
and obligations to be. undertaken by the Parties to make
for servicing and
designated Trust and Retention account as may be required
redemption of the Bonds.
THE PREMISES, COVENANT

NOW THEREFORE IN CONSIDERATION OF AGREED
IT IS HEREBY
AND CONDITIONS HEREIN CONTAINED,
BETWEEN THE PARTIES AS FOLLOWS:-
1. DEFINITIONS
expressions listed below shall have the

For the purpose of this Deed, the following
is to say:
meanings hereinafter mentioned, that
AGREEMENT" shall mean this written Agreement, Bond Trustee Agreement
) the Annexures annexed hereto
and made part
Bond Trust Deed including
thereof.
of
amount of monies required for payment
) "ADEQUATE FUNDS" m e a n s the Interest
issued by the Corporation, accrued
principal amount of the Bonds Holders of the Bonds on each of
thereon and any other amount due towards
the
the due dates.
APPROPRIATE AUTHORITY" shall mean appropriate official of GOI, being

(iii) Consumer Affairs, Food & Public Distribution,
the Secretary of the Ministry of
GOI, or failing him, any person
Department of Food and Public Distribution, other re-designated
case of re-designation, such
duly authorized by GOI or in
official as designated by Competent Authority.
--
person or such other
"BANK" means State Bank of India.

iv)
Guaranteed Redeemable Non-
BONDS" shall mean Government of India
(v) Debentures of face value of Rs. 10
the
Convertible Taxable Bonds in the nature of
value of upto Rs.8000 crore
lakhs each for cash at par of the aggregate nominal
the Corporation on a private
(Rupees eight thousand crores only) issued by financial
basis in one or more tranches during the year 2021-22.
placement
"BOND HOLDER(s)" or "Holders of the Bonds" shall mean the person(s)/
(vi) in dematerialized form (Beneficial Owners of the
entity(ies) holding the Bond(s)
Bond(s) as defined in clause (a) of sub-section of Section 2 of the Depositories
nSanm
Act, 1996.
T T RTH/JAYANTASHARNIA
P/ Bxeeuthe Director (linane)1/C
ORWTT FAYT ()
TAN IRGRT TTET 1T, TiR/FCI Hars.
Lane
16-20 TRTRSTT CT/16-20 B. K.
SANJIV KUMAR T ReTl-110001/ New Delhi -110001
Joint Searetary
Government of India
Deptt. of Food & Public Distribution
Krishi Ahawan lau a l i 44nan
(vii) "COUPON RATE" shall mean the rate of interest payable to the bondholders at
a defined periodicity on the face value of bonds for the period commencing from
the deemed date of allotment and ending on the date of maturity in terms ot the
Disclosure Documents.
which
(Vin) DUE DATE" shall mean any or all dates during the term of the Bonds on
Bonds falls due for
any payment of Principal and/or Interest in relation to the
Trustees under
payment by the Corporation to the Bond Holders and/or to the
this Agreement and/or the Disclosure Document and/or the Trustee Agreement
or other Agreements entered/to be entered into in pursuance thereof.
"DESIGNATED TRUST AND RETENTION ACOUNT" shall

the no lien
mean
(ix) account opened/to be opened by the Corporation with the Bank for the specific
purpose mentioned herein;
the
"DEFAULT" shall failure to make Adequate Funds available for
mean
to each of the
Designated Trust & Retention Account at least 8 (Eight) days prior
each of the Due
before
Due Dates for repayment of Principal and 8 (Eight) days
mechanism for repayment of
Dates for payment of Interest. The payment
Principal and Interest has been set out in the Annexure I (S.No. 1 & 2)..
"GUARANTEE" or "GOVERNMENT GUARANTEE" shall mean

(xi) unconditional and irrevocable guarantee and continuing obligation for-payment
accrued Interest
of principal amount of the Bonds issued by the Corporation,
Holders agreed to be
thereon and any other amount due towards the Bond
Trustees vide orders bearing
guaranteed by the GOI in favour of the
F.No.l1019/1/2017-FC-II&TII(Pt.1) dated 30.06.2021 (Annexure II enclosed) in
terms of this Agreement.
"NOTICE OF INVOCATION" Shall mean the Notice to

be issued by the Trustee
(xii) & Retention Account, at least
to GOI requiring GOI to fund the Designated
Trust
3 days before the Due Date pursuant to the provisions
of this Agreement.
Document for Private

xiil) "DISCLOSURE DOCUMENT" shall mean the Disclosure
Placement of Bonds issued/to be issued by the Corporation
in conformity with
extant SEBI guidelines and other document(s)
for inviting subscription to the
Bonds.
xiv) "OUTSTANDING" from time to time shall mean, the actual aggregate
accrued in relation to the Bonds
outstanding towards the Principal and Interest
beingdue and payable to the Bondholder(s).
"PRINCIPAL" means the principal amount of the Bonds.

xv
"TRUSTEES" shall mean the Trustees for the Bondholders and shall in the first
(xvi)
instance mean SBICAP Trustee Company Limited and in the event of any change
or substitution of Trustees, such Trustees as approved by the Bondholders,shall
Shnm
SANJIV KUMAR
Rnende STT VUR/1AYANN SARN
TRC TEI FU / FCI Hars.
Jolnt Secretary T
16-20 IVI T i/16-20 3. K. Lane
Government of India
Dept. of Food & Public Distribution Rre110p01 N pehi-tt0
Krishi Bhavwan, New Delhl-110001
mean suchsubstituted Trustees who shall be appointed with
Bondholders. prior approval of the
(Xvii)INTEREST" shall mean the interest at the coupon rate as set out in the
Disclosure Document for issue of Bonds. The first Interest payment shall be
made one year after the Issue Date
and the
made annually thereafter;
subsequent Interest payments shall be
(xviii) "TRUSTEE AGREEMENT" shall mean the Agreement to be entered into,

between the Trustee and the Corporation.
(xix) "GUARANTOR'S PAYMENT DATE" shall mean a date not later than at least
three days prior to Due Date, as set out in Annexure I.
Xx) "ISSUE DATE" shall mean the Deemed Date of Allotment for the Bonds
(xxi) "TRANSACTION DOCUMENTS" shall mean and include this Agreement, the
Disclosure Document, the Trustee Agreement, The Bond Trust Deed or any other
Agreements entered into in relation to the issuance of the Bonds and
1.1 Capitalised terms used but not defined in this Agreement shall have the respective
meaning ascribed to them in the Disclosure Document or the Trustee Agreement, as
the case may be. The principles of construction set forth in the Trustee Agreement,
shall apply to this Agreement. Words denoting singular number only shall include
plural number and vice-versa. Words denoting one gender only shall include the
other gender. Words denoting persons only shall include companies and bodies
corporate.
1.2 All references in these presents to any provisions of any statute shall be deemed also
to refer to the Statute, modification or re-enactment thereof or any Statutory Rule,
Order or Regulation made thereunder or under such re-enactment.
1.3 All references in these presents to Annexures, Schedules, Clauses, Sub-clauses,

Paragraphs or Sub-paragraphs shall be construed as reference respectively to the
Annexures, Schedules, Clauses, Sub-clauses, Paragraphs and Sub-paragraphs of
these presents.
2 GOP'S REPRESENTATIONS AND WARRANTIES:
GOI represents and warrants that:
2.1 GOI has obtained all consents, approvals and permissions as are necessary for or in
connection with the execution, performance, validity and enforceability of this
Agreement.
2.2 GOI has full power to execute, deliver and enter into this Agreement and to perform
the obligations expressed to be assumed by it herein,
JsANKOMAR
KrondPg /JAVANTS
Joint Seoretary
TIRRT TCT PT, e /FCI Hars
Government of India OT/16-20 B. K. Lane
Deptt. of Food & Public Distribution 16-20 IRTETEIT
Eel-110001/ New Dellhl-110001
Krishil Bhawan, New Delhl-110001
2.3 This Agreement constitutes a direct and general obligation of the GOI as contained
herein.
2.4 The liability of GOI under this
Agreement shall not be affected nor shall the
Guarantee be discharged or diminished by reason of:
i) any renewal, variation, modification of the terms of the Bonds between the
Corporation and the Trustees and/or
Bondholders, provided, however, the príor
written concurrence or consent of GOI shall
always be obtained for any variation,
alteration or modification of the terms and conditions of the Bonds which shall
result
in change in the
redemption period and interest rate of the Bonds and/or result in
enhancement of liability or guarantee obligations of GOL.
ii) thegranting of time or
indulgence the the Trustees and/or
any to Corporation by
Bondholders; and/or
iit) any forbearance by the Trustees to sue the Corporation or to defer the recovery of the
servicing of Bonds from the Corporation: and/or
iv) any litigation/ legal process/dispute/arbitration proceedings or claims of any nature

between the Corporation and the Trustee and/or the Bondholders, their
Agents,
Servants or any persons acting on their behalf.
GOP's CONFIRMATIONS:
GOI agrees, declares, and confirms that during the subsistence of the Bonds and the
Trustee Agreement-
3.1 Upon receipt of Notice of Invocation from the Trustees as stated in Clause 4.4 herein
below, GOI shall, at least 3 days prior to the Due Date, transfer into the "Designated
Trust& Retention Account", Adequate Funds due and payable to the Bondholders
to the extent outstanding and notified by the Trustees.
4. OBLIGATIONS OF THE GOI:
4.1 The GOI shall cause the Corporation to open a no lien Designated Trust & Retention
Account with the State Bank of India for meeting the debt servicing obligations to
the Bondholders. The "Designated Trust & Retention Account" shall be held by the
Bank to the order of the Trustees.
4.2 The Trustees shall within 30 days before the due date inform the Corporation and the
GOI in writing regarding the due date of the Bonds and the corresponding principal
and accrued interest amount so that the necessary arrangements could be made for
meeting the Principal and accrued Interest repayment obligation.
4.3 The Designated Trust & Retention Accountis to be funded adequately by the
Corporation as per Schedule set out in Annexure I before the Due Date to the tune of
the Principal and/or accrued Interest repayment
obligation of the Bonds.
JaAhKUMAR
Brande htanms
Jolnt Secretary IRGTY T e
Government of India U /rCi lgs
Deptt. of Food & Public Distribution 16-20 TRT T16-20 B. K. Lana
Krishl Bhawan, New Delhl-110001 Rov-110001/ Naw Dulhi- 120001
4.4 In case the Designated Trust & Retention Account is not funded by the Corporation
to the requisite extent as per the Schedule set out in Annexure I
before the due date
the GOI
for payment of Interest and/ or Principal, the Trustee shall forthwith invoke
Guarantee by sending Notice of Invocation of the Guarantee to the GOI.
The GOI shall without demur, reservations and recourse, at least 3 (three) day before
4.5
in the
date, deposit/ transfer the Principal and/or accrued Interest
amount
the due
of Invocation of Guarantee
Designated Trust & Retention Account as per the Notice
by the Trustee.
4.6 The Trustee may make more than one demand under the Guarantee.
GOI Guarantee
4.7 In of default by the Corporation, the Trustees shall invoke the
case
Trust & Retention
forthwith so that GOI can transfer the fund to the Designated
be within 60 days from the
Account before the Due Date but the Invocation should
commencement of default. In case, the Guarantee is not invoked within the stipulated
of 60 days, GOI shall notpay any interest beyond the

be liable to
period
Guarantee is not invoked within the
commencement of default. Further, in case the
shall cease to exist only for that portion
stipulated period of 60 days, the Guarantee
invoked.
of demand for which the GOI Guarantee has not been
The shall send a invoke guarantee on occurrence of a defaut

notice to GOI to
4.8 trustee
default under clause 4.4 and clause 4.6
under transaction documents (Other than a
schedule set out in Annexure-I (S. No. 3).
GOI
above) within time frame as per
that it shall forthwith on receipt
hereby further irrevocably and unconditionally agree
contest or protest and without any
of notice without demur, reservation, recourse
as per schedule in Annexure-I (S.
No.
reference to the corporation, pay to the trustee
trustee under this Deed.
Such amount as may be claimed by the
3),
GOI, through the Secretary, Ministry of
Consumer
4.9 The Trustee shall intimate the
of Food & Public Distribution or
Affairs, Food & Public Distribution, Department of
official to pay the amounts as may be required for servicing
any other designated
in the address of the Secretary,
the Bonds on the relevant due date. The change
Ministry of Consumer Affairs, Food & Public Distribution, Department of Food&
will be intimated to the Trustees
Public Distribution any other designated official
or
communicated to the
event of the change of address not being
by the GOI. In the
be valid and binding. The address for
Trustees, Notice sent at the old address shall
the purpose of Notice is as under:
Secretary,
of Consumer Affairs, Food & Public Distribution,
Ministry
Department of Food & Public Distribution,
001.
Government of India, Krishi Bhawan, New Delhi 110 Shanm
Email: [email protected]
Jawnh
andeG T9TTH/JAYANTA SIARMA
SANJIV KUMAR TRGT TET T yeieg /FCI Hqrs
Joint Secretary /16-20 B. K. Lane
16-20mTR
Government of India -130002
Deptt. of Food &Public Distribution
Krishl Bhewan, New Delhi-110001
4.10 The Designated Trust& Retention Account shall not be discontinued/ closed during
the subsistence of the Trustee Agreement and/or until the entire servicing of Bonds
is completed, without the prior written approval of the Trustee.
4.11 The Bonds and all due and

payable outstanding related thereto shall be secured by
this unconditional, absolute and irrevocable guarantee by the
GO
5. OBLIGATIONS OF FCI:
In event of Government of India making payment to the Holders of Bonds in terms
of the said Guarantee Agreement for defaults of the issuer, the FCI shall save and
keep the Government of India indem ified against all losses and payments in respect
of the Bond Issue.
6. MISCELLANEOUJS
This Agreement shall be effective on and from the date of Bond issue and shall be in
force till all the obligations in respect of the Bonds under this Agreement have been
fully paid and discharged and thereafter all the Parties will be released of their
respective rights and obligations.
The Courts at Delhi shall have the exclusive jurisdiction in respect of any matter,
ii)
claim or dispute arising out of or in any way relating to this Agreement.
It is hereby expressly agreed that any modification, amendments, alteration and/ or

ii)
variation in the terms of this Agreement shall be made only after obtaining the written
consent of the Parties regarding the proposed amendments to this Agreement.
1 ARBITRATION:-
differences arises between the parties in connection

() In the event of any dispute or
with this Agreement, the parties shall endeavor to settle such dispute or differences amicably
differences. In case, the said dispute or
within three months from arising of the dispute or
differences could not be resolved amicable within the said period of three months or any
then such dispute or differences shall be

other period as agreed mutually for the same,
Arbitrator.
resolved through arbitration by the sole
basis of mutual agreement. In the

The sole Arbitrator shall be appointed by the parties on the
the parties on the basis of mutual agreement
event failing to appoint sole Arbitrator by
of
shall be made in accordance with the
within the period of sixty days, the appointment
under the Arbitration & Conciliation Act, 1996.
provisions prescribed for the same
of the
The arbitration shall be conducted in accordance with the provisions
proceedings
of 1996) or any statutory modifications or re-
Arbitration & Conciliation Act, 1996 (26
enactment thereof and the rules made
to the arbitration proceedings. acG
thereunder and for the time being in force shall apply
e hou
QbkOMAR
Joint Secretary
TIRC ITEL 1 ,
16-20-IRITRT
/
I / 1 6 20 K
B.
FCIqrs
Lane
1 1 0 0 0 1 / N e w Dulhi-110001
Government of India
Distribution
Deptt. of Food & Public
Krishl Bhavwan, New Delhl-110001
The venueof such arbitration
shall be at Delhi, India. The
proceedings shall be English. The Arbitrator shall language of arbitration
which shall be final and make a reasoned award
(the "Award")
law.
binding on the parties, subject to 1legal remedies available under the
i) Pending the submission of and/or decision on a

the arbitral award is dispute, difference or claim or until
published; the Parties shall continue to perform all of their
under this Agreement without obligations
prejudice to a final adjustment in accordance with such award.
IN WITNESS WHEREOF this

Parties hereto have caused to be executed
Agreement executed intriplicate and all the three the
the same by their respective officials/ Constituted
Attorney on the day, month and year first above written.
SIGNED AND DELIVERED BY the

For and on behalf of President of India,
SANJIV KUMAR
wa Deptt. of
Joint Secretary
dovernment of Indla
Food&Publlc Distribution
(Shri. Sanjiv Kumar) Krishi Bhawan, Now Dolh-110001
Joint Secretary (Policy & FCI),
Ministry of Consumer Affairs, Food & Public Distribution,
Government of India, Krishi Bhawan, New Delhi 110 001.
in the presence of:
1. (Sarojini Rawat) FRIPFÍ sI/SAROJINI RAWAT

3 94/Doputy Secretary
Deputy Secretary, RT TREORGovernment of india
Government of India, Deptt. of Food & Publlc Distributlon

7 l-110001
Ministry of Consumer Afairs, Food & PublieDiatiibution,
Government of India, Krishi Bhawan, New Delhi 110 001.
SIGNED AND DELIVERED BY

ROancG
TRUSTE
AuthorisedSignatory
SBICAPTrustee Company Limitedo
by the hand of..RAESH..CHANan
authorised signatory (Trusteeship Company)
in the presence of:-
1.
shsoni Shrattav A
AGM funda)
9
SIGNED, DELIVERED AND CONFIRMED BY
The within named Food Corporation of India
By the hand of
Sanns
SHARMA
Shri Jayanta Sharma,

Discor(finavza)
H/1AYANTA (Finace)C
797 ExecutiveDirector
Executive Director (Finance) PRTT (T)
/ FCI Hgrs.
HEU TOTGT
K. Lane
Food Corporation of India, HIRGN
TTE P
115-20 B.- 10001
e/16-20
110001
16-20, Barakhamba lane, 16-20

3TT
L C O L /
NewDelhi
New Delhi-110001,
an authorised signatory of the Food Corporation of India,
in the presence of
1. Shri Jagdísh Kumar,

General Manager ( Funds)
Food Corporation of India, 16-20, Barakhamba Lane, New Delhi-1 10001
10
ANNEXURE-I
STRUCTURED PAYMENT MECHANISM
A Designated Trust & Retention Account in the name of "Food Corporation of India (FCI)-
Bond Account" is to be opened exclusive for the benefit of the Trustee (on behalf of the
be the due date

bondholders). The following payment structure (wherein "T1" is assumed
to
for interest payments and "T2" is assumed principal repayment of the

to be the due date for
and
bonds and "T3" is assumed to be the date when acceleration of payment of principal
the rated bonds.
interest is contemplated) is envisaged for meeting the obligations on
1. Interest Payments
Trigger Date Action Point the due

(T1-30)th Trustees to inform FCI and the GOI in writing regarding
date for payment of interest amount so
that the necessary
day* interest payment
arrangements could be made for meeting the
The Designated Trust and Retention Account
is to be funded by
(T1-8)th
day FCI to the tune of the interest obligations on the Bonds.
Account is not funded to the
If the Designated Trust and Retention
(T1-7)th Trustees shall forthwith
day* requisite extent by (T1-8)th day, the Invocation to
invoke the GOI Guarantee by sending a Notice of
GOI. in the
Last date by which GOI shall deposit requisite funds
(T1-3)th Designated Trust and Retention Account as per the Notice of
day*
that is not a Business Day, the payment shall be
If any Coupon Payment Date falls on a day
made by the Issuer on the following working day in line with SEBI circular
No.CIR/IMD/DF-1/122/2016 2016.
dated November 11,
2. Principal Repayment
Trigger Date Action Point the due

Trustees to inform FCI and the GOI in writing regarding
(T2-30)th that the necessary
date for repayment of Principal amount so
day* the Principal repayment
arrangements could be made for meeting
The Designated Trust and Retention Account is to be funded by
(T2-8)th
day* FCI to the tune of the Principal obligations on the Bonds.
Retention Account is not funded to the
(T2-7)th Ifthe Designated Trust and
requisite extent by (12-8)th day, the Trustees shall forthwith
day* Notice of Invocation to
invoke the GOI Guarantee by sending a
GOI.
Last date by which GOI shall deposit requisite funds in the
(T2-3)th Trust and Retention Account as per the Notice of
day Designated
Invocationserved by the Trustees.
BMordea Erecutive Dlirector (ilhaion) /c
eILKUMAR iG FRUG ( /
J l g / F C I Hars.
Joint Secretary T I R EITEI T, Lane
/16-20 D. K.
Government of India
Dieiribution 16-20
C
IKTETRIT
&Public 1c7-110001/New Delhl-110001
Deptt. of Food Delhl-110001
7
Kriahi Bhewen, New
Bonds falls
If theRedemption Date (also being the last Coupon Payment Date) of the
shall be paid by the
on a day that is not a Business Day, the redemption proceeds
interest accrued on the
Issuer on the immediately preceding Business Day along with
Bonds until but excluding the date of such payment
3. Payment Mechanism in case of Acceleration
Action Point
Trigger Date the due
Trustees to inform FCI and the
GOI in writing regarding
(T3+1)th that the
and interest amount so
date for repayment of principal
day* could be made for meeting
its obligations
necessary arrangements
under acceleration. Retention Account is to be
funded by
The Designated Trust and
(T3+8)th and interest obligations under
FCI to the tune of principal
day*
acceleration. Account is not funded
to
Trust and Retention
(T3+9)th Ifthe Designated Trustees shall forthwith
the requisite by (T3+8)th day, the
extent to
day*
invoke the GOI Guarantee by sending a
Notice of Invocation
GOI. which GOI shall deposit requisite
funds in the
(T3+15)th Last date by Account as per the
Notice of
Designated Trust and Retention
day*
Invocationserved by the Trustees.
endn Shann
ST97 T / J A Y A N T A SHARNIA
(Finavee)
Executive
Director
Hgrs
FRWIG ()F/ T e r g /
FCI
Lane
TPR T, B. K.
SANJIV KUMAR hande RG
RG
ETer
1ocl-110001
d T / 1 6 - 2 0
/
Deln
New
Delhi
-110002
Joint Secretary
Government of India
Krishi Bhawan, New Delhi-110001
12
File No.11019/1/2017-FC-I&.1|(Pt.1)
ANNEXURG T
F.No.11019/1/2017-FC-II/I
Most Immediate
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
(Department of Food & Public Distribution)
*****
Krishi Bhavan, New Delhi

Dated 30/06/2021
TO
The Chairman & Managing Director,
Food Corporation of India,
16-20, Barakhamba Lane,
New Delhi-110001.
Subject: lssue of Government of India Guarantee Long Term Bonds of

Rs.8,000 crore by FC- regarding.
Sir am directed to refer to Food Corporation of India's letter

No.Funds/FC/Bonds/SIX/2020-21/Corresp.withGol dated 05th April 2021 on
thesubject cited above and to say that after due examination of the proposal,
Department of Economic Affairs vide its ID Note No.12(46)-B(SD)}/2020 dated

28.06.2021 has agreed to the proposal, subject to the below mentioned terms and
conditions:
i. DFPD is advised that a spread of 10-20 bps over G-Sec rates is suggested for
recent raising of Extra Budgetary Resources by NABARD, PFC, REC, etc. The
same yardstick may be followed. However, the actual rate may be decided as
per prevailing market conditions at the time of issue. The Department may
make effort to reduce the cost of borrowing by appropriate timing and tranche
size depending on the prevailing market conditions. Accordingly, the
Department may issue guarantee to FCI.
ii. The Government of India guarantee would only cover the principal amount and
the normal interest.
ii. The guarantee shall not be transferable to any agency without the prior
approval of Budget Division, Department of Economic Affairs, Ministry of
Finance.
iv.DFPD should review proper utilization of the guaranteed funds and will also
review the guarantees annually to ensure that there is no risk of default in
repayment of loans together with interest thereon.
v. The obligations of the borrower to service the loan and the monitoring of the
utilization of the guaranteed loans and adherence to the terms and conditions
of the guarantee by the borrower shall be ensured by DFPD through back-to-
back agreement with FCI which may be drawn up and implemented to the
satisfaction of the DFPD. For this purpose, necessary record to monitor the
guarantee shall be maintained by DFPD.
Uouwraw
Bhdrdos
U S T
9 7 RTT/JAYANTA SHARMA
Td RRT () /
Brective Director (Finauce]
T e i g / F e l Hars
C
SANJIV KUMAR TIRGIR ETET T CT/16-20 B. K. Lane

Joint Secretary 16-20IIRISTRIT New Delhi-110001
Reeh-110001/
Government of Indiaa
Deptt. of Food & Publio Distribution
File No.11019/1/2017-FC-11& 1I(Pt.1)
vi. RevieW of the Guarantee shall be ensured as provided under Rule 281 of
GFRs 2017.
vii.In case of default, the lending agency may invoke the guarantee until 60 days of
settlement of claims by the Government. Therefore, if
pledged
stocks have
liquidated and loss claim thereon settled by the Government, the lenders willbeen
be free
to keep the guarantee currènt until 60 days of loss claim being settled and paid by the
Government to the lending agency.
2. In light of the
above, FCI is requested to provide back to back agreement and
tripartite agreement for execution of Long Term Bonds of Rs.8,000 crore at the
earliest.
Yours faithfully,
Validity unkag
KUMAR YADAGUTAM
Date: 2021.06.36 1547:51 1ST
(Gautam Kumar Yadav)

Under Secretary to the Govt. of India
Tele No.011-23383943
Copy to: CGM (Accounts), FCI, Headquarters, 16-20 Barakhamba Lane,

New Delhi.
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MINUTES OF THE 402d MEETING OF THE BOARD OF DIRECTORS OF THE 01
FOOD CORPORATION OF INDIA HELD ON 08th July, 2021 AT FCI, HQRS., NEW
DELHI.
PRESENT
Shri Atish Chandra Chairman & Managing Director
Shri G. Srinivas Director
Shri Vivek Aggarwal Director
Shri Arun Kumar Shrivastava Director
Shri Faiz Ahmed Kidwai Director
Shri Kona Sasidhar Director
Smt. Archana Ranjan Director
Shri Madanlal Rathore Director
Ms. Seema Kakar

INATTENDANCE
Secretay
Shri Bijay Kumar Singh Executive Director (P)
Shri Rabindra Agarwal Executive Director (T/S&C/Silo)
Shri Piush Kumar Gupta Executive Director (Vig.)
Dr. C.L. Ram Executive Director (IR-L/P&R/Stock)
Shri Ajay Kumar Executive Director (IA)
Shri Sudeep Singh Executive Director(QC)
Shri Jayanta Sharma Executive Director(F)/IC
At the outset, Chairman on behalf of the Board of Directors expressed its

extreme grief over the sudden demise of Shri Edwin Kulbushan Majhi, Additional
Secretary(Policy & FCI), Ministry of Food, Consumer Affairs and Public Distribution and
Prof. Dr. S.P.Saravanan:
"We would like to express deepest and heartfelt condolences to the families of
the food warriors who have lost their near and dear ones
during the Covid-19 Pandemic.
We have lost two of the Directors on Board, Shri Edwin Kulbushan
Majhi,
Additional Secretary(Policy & FCI), Ministry of Food, Consumer Affairs and Public
Distribution and Prof. Dr. S.P.Sarvanan to the PandemiC. We would remember forever
with gratitude their commitment and contribution to FCI as a Director on Board.
Till date, 79 officers, staff and labourers of FCI family have lost their lives due to
this Pandemic.
May their Souls Rest In Peace.
Our prayers are with their families and may God give them strength to overcome
this insurmountable loss.
Om Shanti."
Ref. No.: NSE/LIST/3927 July 28, 2021
The Company Secretary

Khadya Sadan, 16-20,
Barakhamba Lane,
New Delhi - 110 001
Kind Attn.: Mr. Sunil Jindal
Dear Sir,
Sub.: In-principle approval for listing of Non-Convertible Bonds in the nature of

Debentures on private placement basis
This is with reference to your application dated July 27, 2021 requesting for In-principle
approval for listing of Government of India Guaranteed, Redeemable, Unsecured, Non-
cumulative, Taxable, Non-convertible Bonds (Series X) in the nature of Debentures of face value
of Rs. 1000000/- each, for base issue size of Rs. 200000 lakhs with a green shoe option of
Rs. 600000 lakhs, aggregating to Rs. 800000 lakhs, to be issued by Food Corporation of India on
private placement basis. In this regard, the Exchange is pleased to grant in-principle approval for
the said issue, subject to adequate disclosures to be made in the Offer Document in terms of
SEBI (Issue and Listing of Debt Securities) Regulations, 2008 as amended from time to time,
applicable SEBI Circulars and other applicable laws in this regard and provided the Company
prints the Disclaimer Clause as given below in the Offer Document after the SEBI disclaimer
clause:
“As required, a copy of this Offer Document has been submitted to National Stock
Exchange of India Limited (hereinafter referred to as NSE). It is to be distinctly
understood that the aforesaid submission or in-principle approval given by NSE vide its
letter Ref.: NSE/LIST/3927 dated July 28, 2021 or hosting the same on the website of NSE
in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008 as amended from
time to time, should not in any way be deemed or construed that the offer document has
been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse
the correctness or completeness of any of the contents of this offer document; nor does it
warrant that this Issuer’s securities will be listed or will continue to be listed on the
Exchange; nor does it take any responsibility for the financial or other soundness of this
Issuer, its promoters, its management or any scheme or project of this Issuer.
Continuation Sheet
Every person who desires to apply for or otherwise acquire any securities of this Issuer
may do so pursuant to independent inquiry, investigation and analysis and shall not have
any claim against the Exchange whatsoever by reason of any loss which may be suffered by
such person consequent to or in connection with such subscription /acquisition whether by
reason of anything stated or omitted to be stated herein or any other reason whatsoever”
Please note that the approval given by us should not in any way be deemed or construed that the
draft Offer Document has been cleared or approved by NSE; nor does it in any manner warrant,
certify or endorse the correctness or completeness of any of the contents of this draft offer
document; nor does it warrant that the securities will be listed or will continue to be listed on the
Exchange; nor does it take any responsibility for the financial or other soundness of the
Company, its promoters, its management or any scheme or project.
Kindly also note that these debt instruments may be listed on the Exchange after the allotment
process has been completed, provided the securities of the issuer are eligible for listing on the
Exchange as per our listing criteria and the issuer fulfills the listing requirements of the
Exchange. The issuer is responsible to ensure compliance with all the applicable guidelines
issued by appropriate authorities from time to time including SEBI (Issue and Listing of Debt
Securities) Regulations, 2008 as amended from time to time, applicable SEBI & Exchange
Circulars and other applicable laws in this regard.
Specific attention is drawn towards Para 3.6 of SEBI/HO/DDHS/CIR/P/2018/05 dated January 5,

2018 and NSE Circular Reference No. NSE/DS/48315 dated May 19, 2021 in this regard.
Accordingly, Issuers of privately placed debt securities in terms of ILDS Regulations or ILDM
Regulations or privately placed NCRPS as per NCRPS regulations and for whom accessing the
electronic book platform (EBP) is not mandatory shall upload details of the issue with any one of
the EBPs within one working day of such issuance. The details can be uploaded using the
following links:
https://www.nse-ebp.com
https://www.nseebp.com/ebp/rest/reportingentity?new=true
Yours faithfully,
For National Stock Exchange of India Limited
Apurva Meghraj
Manager
Audit Report of Comptroller and Auditor General of India on the Annual Accounts of Food Corporation of India for the year ended 31
March 2020
Comments Reply
We have audited the attached Balance Sheet of Food Corporation of
India (Corporation) as at 31 March 2020 and the Profit and Loss
Account and Cash Flow Statement for the year ended on that date
annexed thereto under Section 34(2) of the Food Corporations Act,
1964 (FC Act) as amended vide Notification No. 315 dated 2 June
2000. These financial statements include the accounts of 199
units/branches out of which 56 units (Area/District Offices) were
selected for audit on risk basis and 30 units (Regional Offices/Zonal
Offices/Headquarters unit/Consolidation) were covered in audit on
annual basis. The claim of subsidy from the Central Government is
regulated separately. These financial statements are responsibility of
the Corporation’s Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our audit in accordance with the auditing

standards generally accepted in India. These standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatements.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by the Management, as well as evaluating the overall
presentation of financial statements. We believe that our audit
provides a reasonable basis for our opinion.
Based on our audit, we report that:

1
(I) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(II) The Balance Sheet and Profit and Loss Account dealt with by this
report have been drawn up in the format approved by the Government
of India under Section 34(1), read with rule 19(1) of Food Corporation,
(Amendment) Act, 2000 vide notification dated 2nd December, 2016.
(III) In our opinion, proper books of accounts and other relevant records
have been maintained by the Corporation as required under Section 34
of the FC Act, 1964 as amended in 2000 in so far as it appears from
our examination of such books except that:
A. General Food Subsidy arrear amount as on 31.03.2020 is 2,43,77,929.81

lakh instead of 2,43,85,019.48 lakh. The latter figure includes un-
Though the Corporation is established as a commercial entity, it has no
regularised shortages reimbursable by ministry amounting to Rs.
control over its cost of procurement or its sale price and is dependent
7089.67 lakh, which becomes payable on regularization of
on food subsidy from Government of India to meet the deficit or to
losses.
service loans including interest thereon. Since 2016-17, food subsidy
was partly released by the Ministry through budgetary support and
During the year 2020-21, DFPD released total subsidy
partly by loan from National Small Saving Funds (NSSF). During the
4,62,78,900.00 lakh to FCI. As a result, the subsidy outstanding
year, GoI sanctioned NSSF loan of ₹ 1,10,000 crore to the Corporation,
up to 31.03.2021 is now zero.
of which ₹ 46,400 crore was sanctioned for repayment of existing
NSSF loans and ₹ 44,164.02 crore was provided through book
adjustment of an equivalent amount by withdrawing already released
food subsidy. Interest paid on NSSF loans had an adverse impact on
acquisition cost of food grains. The interest on NSSF loans for the year
(₹ 16,54,794 lakh) represents 12.48 per cent of food subsidy claims (₹
1,32,60,787 lakh) for the year. It had increased economic cost of
purchase of wheat by ₹ 2.97 per kg and rice by ₹ 4.34 per kg during
2
2019-20. As on 31 March 2020, NSSF loans of ₹ 2,54,600 crore were
outstanding which represents 71.06 per cent of total liabilities (₹
3,58,293.28 crore) of the Corporation. An amount of
₹ 1,19,164.02 crore was initially released as subsidy during the year, of
which an amount of ₹ 44,164.02 crore was later withdrawn and utilized
for repayment of NSSF (Loan and Interest) through book adjustment,
thereby resulting in net receipt of subsidy to the extent of ₹ 75,000
crore. Withdrawal of already released subsidy by replacing the same
with an equivalent amount of loan from NSSF resulted in increased in
trade receivables from Ministry for food subsidy with corresponding
increase liabilities for NSSF loan and consequent interest obligations.
Delayed release of food subsidy by the Ministry to Corporation has
resulted in accumulation of food subsidy arrears amounting to ₹
2,43,850.19 crore as on 31 March 2020.
B. BALANCE SHEET
(1)EQUITY AND LIABILITIES
I. Shareholders’ funds– (a) Share Capital (Note- 1): ₹ 4,49,657.64 In compliance to the C&AG observation, the computer assets
lakh held by DCP states (IISFM) have been written off during the
Subscribed and Paid up Capital 2020-21.
Purchase of Assets for the DCP States (IISFM): ₹2,347.21 lakh
The above includes capital released in 2007-08 for purchase of assets for
Decentralised Procurement (DCP) States-IISFM (Integrated Information
System for Food Grains Management) for the value of ₹ 2,347.21 lakh
which was meant for computerization (procurement of hardware and
software). The funds provided by GoI to FCI were for procurement of
assets and to handover to DCP States. These assets have already been
handed over to DCP States and their useful life has also expired in
3
pursuance of the Corporation’s Accounting Policy-11 and Note 7A (12).
Non adjustment of transaction from the books has resulted in
overstatement of ‘Shareholders funds’ as well as ‘Other Non-Current
Assets’ by ₹ 2,347.21 lakh.
II. Current Liabilities

(a) Trade Payables (Note-5): ₹ 22,91,009.74 lakh Liability for revision of storage charges payable to CWC/SWC is
governed by GOI decision. The final decision for revision of
(i)The above head is understated on account of non-provision of ₹
storage charges was issued by GOI in F.Y. 2020-21. Accordingly,
37,688.10 lakh towards revision of storage charges payable to State
necessary accounting will be done in 2020-21. Suitable
Warehousing Corporations (₹ 35,065.43 lakh) for the period 2016-17 to
disclosure has been given at Note H.
2019-20 and Central Warehousing Corporation (₹ 2,622.67 lakh) for
the period 2018-19 to 2019-20. Consequently ‘Storage Charges’ are
Further, as per the FCI policy, cut-off date for creation of liability
also understated by ₹ 37,688.10 lakh.
is 30th April of the next financial year.
Further, creation of liability after 30th April, results in additional

payment on account of interest and penalty on tax deduction at
sources (TDS).
Accordingly, there is no understatement of storage charges.
(ii)The above head is understated by ₹ 638.31 lakh on account of short

State Govt. of Nagaland did not claim the HTS for years together
booking of Hill Transport Subsidy (HTS) in respect of Area Office,
in spite of reminders, thus it would be accounted on cash basis.
Dimapur for period April to June 2016. National Food Security Act
Suitable disclosure has been given at Note no. 16(8) of General
(NFSA) was implemented in the State of Nagaland in July 2016 and
Notes.
HTS was not payable after its implementation w.e.f. July 2016.
However, the estimated liability of ₹ 2,553.23 lakh provided for the year
2016-17 was withdrawn fully by the Corporation instead of ₹ 1914.92
lakh for nine months w.e.f. July 2016. This resulted in understatement
4
of Trade Payables as well as Expenditure by ₹ 638.31 lakh.
This comment was also included in the audit report for the year ended
31 March 2019. However, no corrective action has been taken by the
Corporation.
(iii) Trade payables are understated by ₹ 203.23 lakh due to short- Necessary accounting has been done in the Financial Year 2020-
provision of liability towards interest charge payable on minimum support 21.
price and mandi labour charges in respect of procurement of custom
milled rice at district office, Jeypore.
(b) Other Current Liabilities (Note-6): ₹ 75,51,127.88 lakh

The State Government vide order dated 15.06.2020 has rejected
(i) The above does not include ₹ 823.91 lakh on account of stamp FCI plea for exemption under section 9 of Indian Stamp Act 1899.
duty (along with interest) payable to State Govt. of Punjab for However, FCI Punjab has filed the writ petition CWP No.19526 of
registration of land at five centres at Hoshiarpur, Dasuya, Balachaur, 2020 assailing the aforesaid order dated 15.06.2020. As such,
Garhshankar and Ghanourin in compliance of Punjab and Haryana addition in Assets & firm liability cannot be provided in the books
High Court order. Consequent to High Court’s order, State Government of account as the matter is pending before Punjab & Haryana
has raised demand notices in November 2018. The Corporation has High Court. Hence the same amount is correctly shown in the
not made any provision for payment of stamp duty which resulted into schedule of Contingent liability. Necessary disclosure has been
understatement of ‘Other Current Liabilities’ and ‘Fixed Assets (Land)’ given at para 2, Note 7A on Fixed Assets and Intangible Assets
by ₹ 823.91 lakh. in the Annual Accounts of 2019-20.
31 March, 2019. However, no corrective action has been taken by the
Corporation.
5
(ii) The above head is understated by ₹ 303.85 lakh being the amount The Final Verdict of the Hon’ble Supreme Court was issued on
payable to departmental labours under FCI Food Handling Labours 27-08-2020 and the necessary arrear payment to all the
Cooperative Society at Siliguri/NJG Depots on categorization as regular departmental labours were made within December, 2020 which is
employees in compliance with the Supreme Court order dated 17 depicted hereunder:
September 2018 and 27 August 2020. In pursuance of Accounting 1. 39 nos. of Labours, posted at DO, NPD, paid on 15-12-
Standard-4, Corporation should have provided liability on 31 March 2020 2020 of total amounting Rs. 155.55 Lakhs.
for the amount payable to departmental labours. This resulted in 2. 37 nos. of Labours, posted at DO, PD, paid on 16-12-2020
understatement of ‘Other Current Liabilities’ and ‘Handling Expenses’ by ₹ of total amounting Rs. 148.30 Lakhs.
303.85 lakh
Since the Court verdict & the disbursement of payment was
made in FY 2020-21; providing of liability in FY 2019-20 is not
required in this regard.
31st March 2019. However, no corrective action has been taken by the
Corporation.
The SLP filed by FCI, Bihar in the Hon’ble Supreme Court has
(iii) Liability of ₹ 316.11 lakh towards interest on withheld CPF payable
been dismissed on 10-02-2021. Accordingly, FCI Bihar vide letter
to departmental labourers of Corporation was not provided despite
No.IR-L/CWJC No.5686/2018/Ashok Kumar dated:-22.03.2021
decision taken in 120th meeting of Corporation CPF Board of Trustees
allowing credit of interest and issue of related circular on 19 November has directed Divisional Offices to release withheld /recovered
amount as per the FCI HQ Circular No.08 of 2019 dated:-
2019. Thus ‘Other Current Liabilities’ and ‘Interest’ expenditure are
29.08.2019 and clarification vide letter dated 29.10.2019.
understated by ₹ 316.11 lakh.
Accordingly, CPF Interest would be paid in the F.Y.2021-22.
Apex court judgement does not contain any specific direction for
(iv) Supreme Court vide order dated 20 August 2018 had upheld the
payment of arrears, Hence no liability towards arrears was
orders of Madras High Court and lower Courts which directed for
created in the books of Accounts in the year 2019-20.
regularization of services of 4,001 contract labourers at depots in
Kerala State with attendant benefits from the date of notification
abolishing employment of contract labour. The Corporation has not
provided liability in compliance of Supreme Court of India Judgment
dated 20 August 2018. The amount of estimated liability on this
6
account was not made available to Audit and hence could not be
quantified.
Corporation.
(2) ASSETS
I. Non-Current Assets Suitable disclosure has been given at note no 7A (2) in respect of
(A) Fixed Assets (Note-7)-Tangible Assets: ₹ 1,02,703.16 lakh all the assets for which title deeds are not available, which
(i) Land includes land at Amingaon, Zonal office Guwahati.
Title deed for the land measuring 3 Bighas occupied by Zonal Office
Guwahati at Amingaon in the year 2013 is not available with the
Efforts are being made to get the title deeds.
Corporation.
Corporation.
(ii) Buildings (Staff Quarters)

The title deeds of staff quarters at Nandhini Layout and Rajmahal Vilas The consultant has been appointed for getting the title deeds.
II at Karnataka State were stated to be not traceable.
Corporation.
(iii)Other Fixed Assets

The gross block of fixed assets was understated by₹2,379 lakh due to Dunnage material are treated as store & spares by the
7
non inclusion dunnage material (wooden crates, CC blocks, poly plate, corporation and charged to P&L at the time of first use. This
bamboo, mate, etc.). The dunnage material is fixed assets as the practice is being followed by the Corporation consistently since
useful life of it is more than one year. This has also resulted in beginning.
overstatement of inventories by ₹ 1,667 lakh and expenditure by ₹ 712
lakh. Due to unavailability/non-determination of useful life of dunnage
material, depreciation for the year could not be ascertained and
quantified in audit.
(iv) Computers
At Regional Office Lucknow and Ahmedabad, some printers were Matter will be examined for corrective action.
accounted under Asset Head 2151 instead of Asset Head 2149. The
Depreciation rate for Asset Head 2149 was 18.10 per cent whereas for
Asset Head 2151, it was 63.16 per cent.
(v) General: Corporation shifted to computerized Financial Accounting

Suitable disclosure has been given at point no 13 of Note 7A
Package (FAP) since financial year 2013-14. At the time of switch over
forming part of Balance Sheet in Annual Account for 2019-20.
from manual to FAP, Management decided to consider the date of
acquisition of all existing assets as on 1 April 2013. As a result, assets
acquired/placed in service prior to 1 April 2013 were also shown the
date of acquisition/ place in service as on 1 April 2013 in the Asset
Book report. Thus, the date mentioned in FAP in respect of these
assets (i.e. acquired/placed in service prior to 1 April 2013) is not in
order. Remaining balance life of these existing assets could not be
ascertained and consequently the undercharging of depreciation could
not be quantified in audit.
8
(B) Long Term Loans & Advances (Note-8): ₹ 1,03,892.73 lakh
Suitable corrective action will be taken during the accounts of
(a)The above head includes claims receivables of ₹ 75,894.89 lakh 2020-21.
which are not in the nature of loan and advances and already become
receivables on Balance Sheet date. Hence, these claims receivables
should have been classified as other current assets instead of loan and
advances. This has resulted in overstatement of ‘Long Term Loans &
Advances’ and understatement of ‘Other Current Assets’ by ₹
75,894.89 lakh.
(b) The claims recoverable are overstated by ₹ 18,422.64 lakh due to

the following: The SLP filed by FCI, Bihar in the Hon’ble Supreme Court has
been dismissed on 10-02-2021. Accordingly, FCI Bihar vide letter
(i) The claims recoverable are overstated by ₹ 10,019.93 lakh due to
No.IR-L/CWJC No.5686/2018/Ashok Kumar dated:-22.03.2021
inclusion of claims on account of recoveries from departmental labours
has directed Divisional Offices to release withheld /recovered
at Bihar Region for incentive paid w.e.f. year 2005 which are not
amount as per the FCI HQ Circular No.08 of 2019 dated:-
recoverable in pursuance of Supreme Court orders dated
29.08.2019 and clarification vide letter dated 29.10.2019.
5 October 2018 and 26 March 2019.
Accordingly, the amount would be written off in the F.Y.2021-22.
Corporation.
(ii) Claims amounting to ₹ 35.91 lakh for payment made to NBCC

Option for recovery/write off is being explored.
(India) Limited for Kumarghat project which has already been declared
as abandoned.
9
(iii) Claim amounting to ₹ 8,087.71 lakh including interest was
Matter is subjudice. Necessary accountal will be done on
recoverable from a handling contractor in Arunachal Pradesh region on
disposal of court case.
account of fraudulent payment made to the contractor and is doubtful of
recovery.
31stMarch 2019. However, no corrective action has been taken by the
Corporation.
(iv) Claims amounting to ₹ 279.09 lakh were recoverable from

In respect of Contractor M/s Saikia Trade & Transport for
transport contractors towards risk and cost clause invoked due to
Rs.201.03 Lakhs, MS.115(T) of 2012 (FCI vs Saikia Trade &
failure to adhere to the contractual obligations by them which is long
Transport) which subsequently register as MS No. 148(T) of 2013
pending and is doubtful of recovery.
is still pending in the lower court. As per e-court website, the next
This comment was also included in the audit report for the year ended date of hearing is listed on 14.07.2021.
31stMarch 2019. However, no corrective action has been taken by the
Corporation. In respect of Contractor M/s Dranly Lyngdoh for Rs.78.06 Lakhs,
TS. 180(T) of 2012 (Dranly Lyngdoh vs FCI) which subsequently
re-registered as TS.212(T) of 2013 is still pending in the lower
court. As per e-court website, the next date of hearing is listed on
14.07.2021.
II. Current Assets
(A) Trade Receivables (Note-11): ₹2,58,72,990.13 lakh
Payment to DCP States out of NSSF Loan: ₹ 11,43,600 lakh The details of funds released to DCP states and their repayment
by GOI is as follows:-
(a) Sub-Note (f) to Trade Receivables (Note-11) states that ‘A (1) (e)
above pertains to payment made by the Corporation to DCP States
out of money released as NSSF loan by GoI. This payment was
made as per GoI letter no. 191(2)/2010-FC A/cs dated 06.03.2020.
10
Govt. of India repaid this amount to the Corporation vide letter No.
F.16(I)-B(P&A)/2020 dated 15.10.2020’. The Sub-Note (f) is Paid to DCP States
factually incorrect to the following extent:
• GoI directed Corporation to release funds to States through four Amount
letters dated 06.03.2020, 13.03.2020, 20.03.2020 and Sanction no. and Date Date of (Rs. In
24.03.2020 though Sub-Note(f) referred to only one letter of release lakh)
06.03.2020.
• Against ₹ 11,43,600 lakh, GoI issued sanctioned for repayment 191(2)/2020-FC A/cs dated
of ₹ 10,00,000 lakh to Corporation on 15.10.2020 and repaid ₹ 06.03.2020 06-Mar-20 391184
5,00,000 lakh on 23.10.2020 and
191(9)/2017-FC A/cs dated
₹ 5,00,000 lakh on 29.10.2020 though Sub-Note (f) stated GoI
13.03.2020 13-Mar-20 361808
repaid full amount to Corporation on 15.10.2020.
191(2)/2020-FC A/cs(371102)
dated 20.03.2020 20-Mar-20 262719
191(2)/2020-FC A/cs(371102)
dated 24.03.2020 24-Mar-20 127889
Total 1143600
Receipt details from GOI
Amount
Sanction no. and Date Date of (Rs. In
receipt lakh)
F.16(1)-B(P&A)2020 dated
15.10.2020 23-Oct-20 500000
11
F.16(1)-B(P&A)2020 dated
15.10.2020 29-Oct-20 500000
F.16(1)-B(P&A)2020 dated
04.03.2021 10-Mar-21 143600
Total 1143600
First letter dated 06.03.2020 contain authorisation for the entire

amount of Rs 11436 crores, hence reference of only first letter
was given in the disclosure. However, suggestion of C&AG has
been noted for future compliance.
(b) Trade Receivables includes ₹ 11,43,600 lakh paid to State In this regard it is hereby informed that as this payment is made
Governments on the instructions of Ministry of Consumer Affairs, Food on behalf of and as per instructions of GoI, the amount is not
and Public Distribution. The payment was made on account of release of recoverable from state government & its agencies, rather it is
food subsidy to Decentralised Procurement (DCP) States out of unutilized recoverable from GoI (DFPD).The same has been received as
NSSF loan in pursuance of Ministry instructions. Since these payments well during current FY2020-21. Therefore, classification of the
are advances in nature and not on account of any trade or commercial same as recoverable from GoI is perfect and does not need to be
operations, the same should have been classified as loans & advances. classified as Loans & Advances.
This resulted in understatement of ‘Short Term Loans & Advances’ and
overstatement of ‘Trade Receivables’ by ₹11,43,600 lakh.
Matter is actively pursued by Administrative Ministry with the

(c) ‘Trade Receivables’ are overstated by ₹ 2,51,502.12 lakh due to
Ministry of Rural Development for releasing the payment.
the following:
Necessary disclosure has been given in Note No. 11 (d) on Trade
(i) An amount of ₹ 2,45,403.12 lakh was recoverable from the Ministry Receivable in Annual Account 2019-20.
of Rural Development, Govt. of India on account of food grains issued
under Sampoorn Gramin Rozgar Yojna. The scheme was closed on 31
March 2008 and dues are still subject to reconciliation. The amount is
12
long pending and is therefore doubtful of recovery.
This comment was also included in the audit report for the year ended 31 st
March 2019. However, no corrective action has been taken by the
Corporation.
Matter is under active pursuation for recovery of amount.
(ii) An amount of ₹ 6,099 lakh was receivable from MMTC Ltd. on
Necessary disclosure has been given in Note No. 11 (e) on Trade
account of wheat export from Central Pool Stocks during 2013-14. This
Receivable in Annual Account 2019-20.
amount has been adjusted by MMTC Ltd. against their pending claims
on the ground that Corporation has withheld their claims pertaining to
previous import-export transactions since 1991. Thus the possibility of
realization of this amount is remote and doubtful of recovery.
Corporation.
(B) Other Current Assets (Note-14): ₹ 88,966.05 lakh

Other Current Assets: ₹ 87,941.87 lakh ₹ 79860.74 lakh pertaining to VAT Input Tax Credit. Matter is
subjudice. Necessary accountal will be done on disposal of court
The above includes claims of ₹ 79,860.74 lakh pertaining to VAT Input
case. Disclosure is given in Note no.14 (a) forming part of
Tax Credit. As food grains have been exempted under GST Act and
Balance Sheet in Annual Accounts for 2019-20.
the Input Tax Credit is not available on exempted goods as per Section
17 of GST Act, the claims recoverable on account of VAT input tax
credit are doubtful of recovery.
Corporation.
13
C. STATEMENT OF PROFIT AND LOSS
(A)INCOME
(1) Revenue
(i) Sale (Note-A): ₹ 23,59,205.10 lakh
The above is understated due to non-inclusion of value of by-products
The Govt. of India decides the cost of various elements of
retained by millers during the process of paddy milling which should
procurement incidentals including milling charges by issue of cost
have been considered as sale by the Corporation after introduction of
sheets for each state. Such cost sheet does not specify the cost
GST Act. This resulted in understatement of Sale as well as Purchase
and quantity of by-products retained by the rice miller. This has
(milling charges) by the value of by products. The value of by products
been taken up with the GoI. Once the cost and quantity of by-
is unascertainable in audit. The Corporation has neither accounted for
product is decided by the Ministry, necessary booking under
the value of
sales shall be made.
by-products as Sale and Purchase nor made any related disclosure in
the accounts.
Corporation.
(ii) Other Receipts (Note-C): ₹ 3,744.29 lakh

Other receipts included interest (net) on the expenses incurred by the FCI is one of the Central Nodal Agencies for procurement of
Corporation on procurement of pulses under Price Stabilization Fund Pulses under PSF and PSS operations. As per the operational
(PSF) and Price Support Scheme (PSS) Schemes to the extent of guidelines issued by the DoCA, MoCAF&PD in April 2016, the
₹2323.82 lakh. This interest income was booked without valid CNAs would be provided with interest free advance. Further, in
authority/instruction from the concerned Ministry. The Ministry has not the 2nd meeting of the PSFMC held on 02.05.2016, the GoI has
accorded any confirmation for the same. This has resulted in categorically classified that FCI may continue the procurement
overstatement of ‘Other Receipts’ by ₹ 2,323.82 lakh, overstatement of operations using its own funds which will be recouoped from the
‘’Trade receivables-PSS’ by ₹ 2,326.96 lakh and overstatement of PSF later [item no.3(e)]. In this regard it is relevant to add that
‘Other Current Liabilities-PSF’ by ₹ 3.14 lakh. FCI has already submitted Accounts of Masur operation to the
14
DoCA charging interest expenditure and the same has been
examined by the DoCA and forwarded to the Costing cell of the
Ministry of Finance for final approval. Moreover, the GoI provided
Government Guarantee for availing CC limit for PSF as well as
PSS operation to fund its operations. Hence, there is no doubt on
charging interest expenditure to Pulses Fund which represents
receivables from ministry.
(B) EXPENDITURE
(a) Purchase (Note-F): ₹ 1,34,45,800.47 lakh
The above is overstated by ₹ 161.75 lakh on procurement of 67,397.74
It is stated that the revised provisional cost sheet has been
lakh MT wheat by the Government of Punjab and State Government
issued by GOI vide order dated 23.10.2020 for KMS19-20.
Agencies for the period 2019-20. In accordance with revised cost
Therefore, the accounting/adjustment of revised mandi labour
sheet issued on 23 October 2020 for wheat procurement at Punjab
charges has been done during FY 2020-21 in accordance with
state for 2019-20, mandi labour charges were to be accounted at ₹
revised cost sheet dated 23.10.2020.
11,619.37 lakh as against ₹ 11,781.12 lakh booked by the Corporation.
In pursuance of Accounting Standard-4, Corporation should have made
adjustment on 31 March 2020 for the differential amount due to revision
of mandi labour charges. Consequently ‘Trade Payables’ are also
overstated by ₹ 161.75 lakh.
(b)Handling Expenses (Note-I): ₹ 4,34,164.29 lakh

(i) Salary of Departmental Labour: ₹ 1,86,949.69 lakh
Suitable disclosure has been given at Note-I(a) forming part of
The above includes arrears of ₹ 22,700.25 lakh on account of pay Statement of Profit and Loss Account in Annual Report for the
revision of Departmental labours for the period 1 January 2017 to 31 year 2018-19. After the receipt of the approval of wage revision
March 2019 which was approved by the Board of Directors (BoD) of the from the MOCAF&PD on 12-03-2019 matter was placed before
Corporation on 20 December 2018 and Ministry on 12 March 2019. In the BOD for the implementation of wage revision. After approval
view of approvals to pay revision, the expenditure relates to 2018-19 from the BOD, the circular was issued on 03.06.2019. As the
15
and should have been booked accordingly in the financial statements administrative order issued in F.Y. 2019-20 only. Therefore, there
of is no misclassification in accounting of the arrear.
2018-19. However, Corporation accounted and booked the transaction
in 2019-20. In such case in pursuance of Accounting Standard-5, the
expenditure on pay revision should have been booked under prior
period expenses instead of current year expenditure. This has resulted
in understatement of ‘Expenses pertaining to Prior Years’ and
overstatement of current year ‘Handling Expenses-Salary of
Departmental Labour’ by ₹ 22,700.25 lakh.
(ii) Wages of DPS & other Labour- ₹ 1,00,571.87 lakh

Proposal for the sanction of the final PLI for the year 2017-18
The above head is overstated due to inclusion of ₹ 13,301.92 lakh of
was approved by the Board of Directors in their meeting held on
productivity linked incentive (PLI) to Labour for the year 2017-18. PLI is
04-10-2019 i.e. during the F.Y. 2019-20. Therefore, there is no
a regular annual expenditure based on the performance of the related
error & omission in the booking of final PLI for the year 2017-18,
previous year and becomes due as soon as the respective year annual
in the accounts of 2019-20. Moreover, as discussed with CAG
accounts are finalized and PLI parameters determined. The Board of
during Zonal level meeting, provision has been created for PLI
Directors in its meeting held on 4 October 2019 approved the final PLI
liability of 2018-19 also in the accounts of 2019-20. Suitable
for the year 2017-18 i.e. before adoption and approval of annual
disclosure has also been given.
accounts for the year 2018-19 on 18 December 2019. In view of
approvals to PLI, the expenditure relates to 2018-19 and should have
been booked accordingly in the financial statements of 2018-19.
However, Corporation accounted and booked the transaction in 2019-
20. In such case in pursuance of Accounting Standard-5, the
expenditure on pay revision should have been booked under prior
period expenses instead of current year expenditure. This has resulted
in understatement of ‘Expenses pertaining to Prior Years’ and
overstatement of current year ‘Handling Expenses-Wages of DPS &
other Labour’ by ₹ 13,301.92 lakh.
16
(c) Other Expenses (Note-K): ₹ 1,47,617.79 lakh
Debts/claims written off: ₹ 1,02,932.46 lakh The subject matter of write off the claims against the
departmental labour for datum revision w.e.f. 2005 was placed
The above includes ₹ 1,01,783.67 lakh in respect of claims against
before the Board of Directors in their 393rd meeting held on 30-
departmental labour for datum revision w.e.f. 2005. This decision to
07-2019 i.e. during the financial year 2019-2020 only. Therefore,
write off claims was approved by the Board of Directors in its meeting
there is no error or omission in the accounting of the write off the
held on 30.07.2019 on the basis of Supreme Court judgment of 26
claims against the departmental labour for datum revision w.e.f.
March 2019. In view of approval to write off claims, the expenditure
2005. Further suitable and appropriate disclosure has been given
relates to 2018-19 and should have been booked accordingly in the
in note 8 e (ii).
financial statements of 2018-19. However, Corporation accounted and
booked the transaction in 2019-20. In such case in pursuance of
Accounting Standard-5, the debts/claims written off should been
booked under prior period expenses instead of current year
expenditure. This has resulted in understatement of ‘Expenses
pertaining to Prior Years’ and overstatement of current year ‘Other
Expenses’ by ₹ 1,01,783.67 lakh.
(d) Employees Remuneration and Benefits (Note-J): ₹ 3,38,457.76
lakh FCI being a subsidy based organization booking of employees
terminal benefits (gratuity and leave encashment) on accrual
(i) Based on directions from the Ministry of Consumer Affairs, Food and
basis would amount to higher subsidy to be claimed from GOI.
Public Distribution, Corporation has made Accounting Policy-8 for
Thus this deviation has been adequately disclosed in the notes
accounting of Employee Benefits (gratuity and leave encashment) on
along with the financial implications.
cash basis. Following Accounting Policy
No. 8, the Corporation has a policy to account for gratuity and leave
encashment on cash basis. The said accounting policy violates
Accounting Standard 15 which provides accounting of employee
benefits on an accrual basis. Hence Accounting Policy-8 is not in line
with Accounting Standard 15 and needs to be revisited. This has
resulted in understatement of ‘Employees Remuneration and Benefits’
to the extent of ₹ 3,40,881.29 lakh (₹ 2,78,917.47 lakh for gratuity and
17
₹ 61,963.55 lakh for leave encashment) as disclosed in Note no. 16(3).
Corporation.
(ii) The above includes payment of ₹ 1,10,110.50 lakh on account of

Approval to the proposal of the pay revision of Cat-III & IV was
pay revision arrear paid to category III and IV employees for the period
given by the Board of Directors on 27-02-2019 but final approval
1 January 2017 to 31 March 2019. The MoU between Corporation and
to the proposal was given by the administrative ministry on 07-
Labour Union for pay revision w.e.f. 1 January 2017 was signed on 1
08-2019 i.e. during the F.Y. 2019-20. Therefore, accounting has
February 2019 and subsequently pay revision proposal was approved
been done in the year 2019-20. As there is no error and
by the BoD on 27 February 2019 and by the administrative Ministry on
omission, so current expenditure head of accounts has been
7 August 2019. In view of approvals to pay revision, the expenditure
operated. Suitable disclosure had been given in the FY 2018-19
relates to 2018-19 and should have been booked accordingly in the
at Note-J ©.
financial statements of 2018-19. However, Corporation accounted and
booked the transaction in 2019-20. In such case in pursuance of
Accounting Standard-5, the expenditure on pay revision should have
been booked under prior period expenses instead of current year
expenditure. This has resulted in understatement of ‘Expenses
pertaining to Prior Years’ and overstatement of current year
‘Employees Remuneration and Benefits’ by ₹ 1,10,110.50 lakh.
18
D. NOTES TO ACCOUNTS:
(I) Salary of Departmental Labour (Note-I): ₹ 1,86,949.69 lakh
(a)Wages of DPS & Other Labour: ₹ 1,00,571.87
lakh
(b) Employee Remuneration and Benefits (Note- J)
Salaries, Wages & Allowances: ₹ 2,90,320.13
lakh
Note-I(a)-Handling Expenses and J(a)-Employees Remuneration &
Benefits stipulated that during the year 2019-20, final payment of PLI scheme is uniform for officers, staff & labours. Therefore, a
Productivity Linked Incentive (PLI) to all eligible employees relating to common disclosure was given in both notes. However,
the year 2017-18 (₹ 15,151.44 lakh) and 2018-19 observation of the C&AG noted for future compliance.
(₹ 17,665.75 lakh) were made/provided for. Both the Notes are
factually incorrect as the amount of final payment of PLI under Note-
I(a) relating to the year 2017-18 was
₹ 13,301.92 lakh and ₹ 15,510.52 lakh for 2018-19. Similarly, under
Note-J(a), the final payment of PLI to employees was ₹ 1,849.52 lakh
for 2017-18 and ₹ 2,155.22 lakh for 2018-19.
(II) General Notes (Note-16)

Bills submitted by DGS&D amounting to Rs.5456.56 lakhs and
Contingent Liabilities
outstanding demand of Rs.7332.94 lakhs for gunny bags & Rs.
(i)The above does not include the outstanding demand of ₹ 7,332.94 3835.09 for HDEP bags respectively raised by Ministry of Textiles
lakh for gunny bags and ₹ 3,835.09 lakh for HDPE bags raised by are in the process of verification/reconciliation. However, it is
Ministry of Textiles vide letter dated 12.09.2018. The demands have relevant to mention that DGS&D claims, prima facie seems to be
been disputed by the Corporation and are stated to be in the process of completely untenable as it relates to gunny bales not delivered to
verification/reconciliation. FCI.
Similarly, the claims of the Ministry of Textiles also relates to

19
delivery of gunnies to SGAs, hence not tenable. Nevertheless, a
final view on the same would be taken, once reconciliation
process is complete.
Further, suitable and appropriate disclosure have been given in

point no b of note 11.
(ii) The statement of contingent liabilities does not include claims of ₹
Suitable action will be taken in the accounts of 2020-21.
1,969.16 lakh towards rental arrears of three PEG godowns made
against Corporation and pending with the High Court of Telangana,
Hyderabad. As against the claimed amount of ₹ 3,369.15 lakh, the
Corporation has disclosed only ₹ 1,400 lakh in the contingent liabilities.
Subject to our observations in the preceding paragraphs, we report that

the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Accounting Policies and the Notes thereon and subject to the
significant matters in A to D stated above and other matters mentioned
in the Annexure to the Audit Report give a true and fair view:
• In so far as it relates to the Balance Sheet, of the state of affairs of
the Corporation as on 31 March 2020;
• In so far as it relates to the Statement of Profit and Loss, of the
profit/loss of the Corporation for the year ended on that date; and
• In so far as it relates to the Cash Flow Statement, of the cash flows
for the year ended on that date.
20
Annexure to the Audit Report of the Comptroller & Auditor General of India on the Annual Accounts of Food Corporation of India
for the year ended 31st March 2020
Comments Reply
The Corporation is the main agency responsible for the implementation of food The Subsidy claim for the year 2019-20 is Rs.
policies of the Government of India (GoI) and its primary functions are 1,32,60,787.78 lakh. During the year 2020-21 DFPD
purchase, storage, movement and distribution of food grains on behalf of GoI. released subsidy amounting to 4,62,78,900.00 lakh. As a
The Corporation procures food grains at the Minimum Support Price (MSP) and result, subsidy outstanding up to 31.03.2021 is zero now.
these are issued at the Central Issue Price, both fixed by the GOI. The
difference between total sales realization and cost of the food grains is
reimbursed by the GoI as subsidy as per Ministry of Agriculture letter No. 8-
4/70-PC FC A/c dated 25 April 1980 as amended from time to time. The
Corporation claimed a subsidy of ₹ 1,32,40,432.01 lakh for 2019-20 against
which no amount was reimbursed by Ministry. Though, during the year, Ministry
had reimbursed subsidy arrears for 2017-18 and 2018-19 amounting to ₹
74,91,859.18 lakh.
The Management of the Corporation is responsible for the preparation of its
Annual Financial Statements under the Food Corporation Act, 1964 as
amended in the year 2000. There must be adequate and effective internal
controls in the Corporation to ensure compliance with the applicable statutes
and regulations. The internal control mechanism should provide reasonable
assurance that probity and propriety are observed in decision making and that
the annual financial statements are free from material misstatements. As the
Sole Auditor, we have the responsibility of making recommendations to the
audited entity where controls as observed on a test check basis, appear to be
inadequate or ineffective. The observations in the following paragraphs may be
viewed accordingly:
21
I. General: FCI has issued balance confirmation letter with the
i. The balances under debts, claims, deposits, closing stock of food stipulation that balance will be deemed to be confirmed in
grains/gunnies/ stores and spares etc. loaned to/held by other parties and credit the event of non-receipt of adverse communications.
balances were subject to confirmation from the respective parties.
The amount payable to CWC as on 31.03.2020 is based
ii. Sundry Creditors for estimated liability include an amount of ₹ 6,823.17
on Books of Accounts of FCI. Reconciliation of dues
lakh due to Central Warehousing Corporation (CWC) whereas as per the books
between both the corporations is under process.
of CWC, the amount receivable by the Corporation was ₹ 22,164.94 lakh as on
31 March 2020.
II. Financial Statements (Consolidated):

Factual
(a) Based on the preliminary audit observations, the Management had carried
out corrections in the accounts to the extent of ₹ 1,05,111.91 lakh as Inter-Head
adjustment and ₹ 1,14,701.18 lakh as Intra-Head adjustment which are
substantial considering overall financials of the Corporation. These corrections
were made before the adoption of annual accounts by Board of Directors as
stated below:
Inter Head Adjustment (₹ in Lakh)
Particulars Debit Credit
Liabilities 25,574.51 61,011.05
Assets 6,879.85 13,316.23
Expenditure 70,902.37 10,167.93
Income 1,755.19 20,616.7
Total 1,05,111.91 1,05,111.91
Intra Head Adjustment (₹ in Lakh)
Particulars Amount of Adjustment
Liabilities 3,362.89
Assets 34,790.45
22
Expenditure 69,231.86
Income 7,315.98
Total 1,14,701.18
Factual
(b) The schedule of Contingent Liabilities has been revised upwards by ₹
34,174.56 lakh and downwards by ₹ 1,46,585.43 lakh.
III. Adequacy of Internal Control System:

Internal control is a mechanism to provide reasonable assurance about the
achievement of an entity’s objective about reliability of financial reporting,
effectiveness, efficiency of operations, safeguarding of assets and compliance
with applicable laws and regulations. Internal Control System was not found
to be adequate and commensurate with the size and nature of business of the
Corporation. Hence, it needs to be strengthened in the area of compilation/
preparation/ finalization of accounts. Based on the test check, the important
findings are as under:
A) Board of Directors:
All the Board of Directors are appointed by the
(a) The Board of Directors of the Corporation consisted of 10 Directors
Administrative Ministry i.e. M/o CAF&PD. For the shortfall
(including Chairman) as on 31 March 2020 as against 12 Directors prescribed
of Directors appointed on Board, letters have been sent
under Section 7 of the Food Corporation Act, 1964 as amended in the year
to Ministry of CAF&PD on 18.05.2020, 15.06.2020,
2000. DPE Guidelines dated 14 May 2010 on Corporate Governance for
25.08.2020, 25.05.2021, 17.06.2021 with the request to
Central Public Sector Enterprises mandated that where the Board of Directors
appoint the Directors on the Board of FCI as per DPE
is headed by an Executive Chairman, the number of Independent Directors
guidelines.
should be at least 50 per cent of Board Members. As on 31 March 2020,
Corporation had only three Non-Official/Independent Directors as against six
23
prescribed in DPE Guidelines dated 14 May 2010. Further, there were three
Nominee Directors appointed by the Government of India as against the
restriction to the maximum of two Nominee Directors as per ibid DPE
guidelines.
The Food Corporations Act, 1964 has been framed by
(b) DPE Guidelines dated 14 May 2010 on Corporate Governance provides for
Govt. of India and a formal Board Charter defining roles
formal statement of Board Charter which clearly defines the roles and
and responsibility can be formed by Govt. of India only.
responsibility of the Board and the individual directors. The Board of Directors of
Corporation did not have a formal statement of Board Charter as prescribed in
DPE Guidelines dated 14 May 2010.
B) Audit Committee:
During the period from April 2019 to December, 2019,
A review of Audit Committee meetings held during 2019-20 with reference to
there were only two independent directors on the Board
provisions contained in DPE Guidelines dated 14 May 2010 on Corporate
of FCI. Thereafter, Ministry has further appointed
Governance for Central Public Sector Enterprises revealed the followings:
Independent Director to the Board, who were made a
(i) In pursuance of DPE guidelines, the Audit Committee should have minimum part of the Committee as per mandate. Presently there
three directors as members. Further the two third members of Audit committee are 2 independent directors on the Audit Committee of
should be independent directors. This provision has not been complied by the FCI.
Corporation as Audit Committee consisted of five members in 2019-20 out of
which only two were Independent Directors.
(ii)The 38th audit committee meeting was not chaired by Independent Director as The Chairman of the Audit Committee was an
was required by the DPE Guidelines of May 2010. Independent Director during 2019-20.During the 38th
meeting Members of the Audit Committee nominated one
of the member as the acting Chairman as the regular
Chairman was accorded leave of absence.
24
(iii) There was a gap of more than four months between 37th and 38th audit In this regard, it is informed that at that point of time no
committee meeting as well as in 38th and 39th meeting. Thus requirement of DPE item was available for discussion, therefore, meeting was
guidelines were not complied which states that not more than four months should not convened as per prescribed guideline.
elapsed between two meetings.
(iv) Only three Audit Committee meetings were held during the year 2019-20 as In this regard, it is informed that at that point of time no
against minimum four meetings to be held during a year as mandated in DPE item was available for discussion, therefore, meeting was
guidelines. not convened as per prescribed guideline
(v) The minutes on the discussion within the Audit Committee and internal auditors Audit Committee Meeting invariably reviews status of C&
on significant findings and follow up thereon were not made. AG and IA Paras and functioning of Audit Division in FCI.
On review of the status; the Audit Committee Meeting
had many times during the conduct of the meeting had
directed to expedite settlement of outstanding C&AG and
IA Paras; immediate submission of reply to the C&AG
Paras raised; to clear the arrears of coverage of audit
etc.
In one of the Audit Committee Meeting; directions were

issued to reveal the recoveries affected from the
employees at the instance of internal audit separately.
It was also directed in one of the Audit Committee

Meeting to furnish the details of recoveries affected on
account of internal audit paras to each member of the
Audit Committee Meeting for their review.
The compliance of directives issued in each of the Audit

Committee Meeting are reviewed in the succeeding Audit
Committee Meeting by way of Action Taken Report.
(vi) The significant matters of suspected fraud, irregularity or failure of internal No specific issue on the subject cited, necessitating
control systems of material nature were not reported to the Board. reporting to the Board, had come to notice of IA Division
25
(vii) The report on the functioning of Whistle Blower’s Mechanism was not made. Noted for future compliance
(viii)The report on the review of all related party transactions was not made. Suitable disclosure regarding related party transactions
has been given in the report on corporate governance
and Note No. 16 (9).
C) Corporation purchases rice from State Governments and its Agencies as per Observation noted for future improvement.
price determined by Ministry of Consumer Affairs, Food & Public Distribution on
fair average quality basis. Any excess moisture than the fair average quality is
treated as storage gain as per Corporation circular 1157/Accts dated 28 January
2015 and purchase quantity considered net of excess moisture. However, it was
observed that the instructions of the above circular were not followed in Regional
Office, Punjab of the Corporation.
D) The Corporation vide its circular No 1277/Acctts. dated 10 December 2019 The PV of Fixed Assets was kept in abeyance due to
regarding accounting of unserviceable assets stipulated that the identified un- unavoidable circumstance of country wide lockdown
serviceable fixed assets and other items are to be transferred at written down imposed by GOI due to Covid – 19. The instructions for
value/book value to stock of unserviceable items under Inventories and when PV would be complied in 2020-21 and necessary
these items are disposed off, the difference of the same should be booked in the accounting will be done in respect of the assets if any
P& L Account. However, the Haryana region has not implemented the above identified as stocks held for disposal.
referred instructions for booking of unserviceable stocks held up for disposal as on
31 March 2020.
E) There is a mismatch between balances shown in the Financial Accounting Necessary provision has been made in FAP software for
Package payroll generated schedule viz-a-viz figures appeared in trial balance in rectification of balances.
respect of Festival Advance and Advance against Productivity Linked Incentive.
IV. Adequacy of Internal Audit System:
Internal Audit is an instrument of financial control. It should provide independent
assurance on effectiveness of internal control, risk management processes and
contribute to enhancing governance for achieving organization objectives. Its
26
overall aim is to suggest improvement in the functioning of the entity and to
strengthen the overall governance mechanism of the entity, including strategic
risk management system and internal control system. Thus, Internal Audit
should be an independent setup to get a quality and effective audit and in the
financial interest of the Corporation as well as in favour of organizational
development. Factual
As per the existing setup, the transaction (internal) audit of Regional Offices are
conducted by the respective Zonal Office and of Divisional Offices and Depots
are being conducted by respective Regional Offices. Further, out of the
sanctioned strength of 447 for internal audit function, the men in position were
only 121 as on 31 March 2020 resulting in a shortfall of 326 (73 per cent).
Efforts are being made to further strengthen the Internal
Considering the shortfall, the Executive Director of Zones was authorized to
Audit Systems.
outsource internal audit work to Chartered Accountants/Cost & Management
Accountants firms on a need basis.
Despite resorting to outsourcing the work of Internal Audit to CA/CMA firms, the
coverage of units has decreased to 659 in 2019-20 as against 976 units in
2018-19 and 1034 units achieved in 2017-18. Further, Internal Audit System
needs to be strengthened as there is a huge arrear (659 units) of audit as on
31.03.2020. Also, there is large pendency of 3200 paras of Internal Audit as on
31.03.2020.
V. Adequacy of Physical Verification of Fixed Assets: Factual.
A reference is invited to Note 7A (18) of Annual Accounts on physical verification
of fixed assets. The Corporation conducts physical verification of fixed assets
annually at the end of the financial year. However, physical verification of fixed
assets was not conducted on 31 March 2020 due to nationwide lock-down on
account of Covid-19 pandemic. Thus consequential action like loss (if any),
transfer to unserviceable assets etc. could not be taken. Audit could not verify the
authenticity of assets reflected in the Assets Book Report as on 31 March 2020 in
27
the absence of the physical verification report.
VI. Adequacy of Physical Verification of Inventory: Factual
The Corporation has 2092 depots comprising of 545 owned depots and 1547 hired
depots as on 31 March 2020. The Corporation selects depots for conducting
physical verification (PV) at year end based on method (i.e. ISI-PV) recommended
by Indian Statistical Institute. However, a reference is invited to Note 10(d) of
Annual Accounts and Corporation letter dated 24 March 2020 which stated that
annual ISI PV which was scheduled to be held from 31 March 2020, was
suspended due to nationwide lock-down on account of Covid-19 pandemic. It was
further informed that for accounting and all other purpose, the actual census list as
submitted by Depot Manager and duly certified by the concerned Divisional
Manager will be treated as final and will be used for closing the annual accounts of
2019-20. Accordingly, inventory as on 31 March 2020 stated in Annual Accounts is
based on census list submitted by Depot Manager and certified by concerned
Divisional Manager.
These amount have already disclosed at contingent
VII. Regularity in payment of Statutory Dues: liabilities Note No. 16 (1) (iv) and (vii)
The Corporation was not regular in payment of following statutory dues:
(i) General Note No. 16 to the accounts indicates that statutory dues of ₹
2,93,033.05 lakh (Purchase, Sales Tax, VAT and Income Tax) and ₹
6,115.31 lakh (Property Tax and Allied Taxes) were outstanding against
the Corporation which have not been acknowledged as debt and thus
neither paid nor provided for.
(ii) Market fee on buying and selling of agricultural produce in the state of West The State Govt. of WB was requested to provide
Bengal has to be paid by the licensed trader within a week from the day of the clarification towards the point no. 03 of Memo No. 1233
transaction in compliance with provisions of West Bengal APM (Regulation) Act, dated 29-07-2010 which stated about the exemption of
1972. DOs under West Bengal Region had collected an amount of ₹ 2,901.45 lakh Market Fee is applicable only in case of Rice and Wheat
towards Market Fees on sales under Open Market Sales Scheme (OMSS) since related with PDS.
2015-16. However, Corporation never deposited the amounts collected towards
28
Market Fees to the Statutory Authorities. The matter is in constant persuasion with the State Govt.
Authority and once the clarification, in this regard,
obtained from their side, the necessary action will be
taken.
(iii) Statutory dues of ₹ 8.06 lakh were not paid by the due date for the period up to These are disputed property tax and professional tax, will
2019-20. be liquidated on resolution of dispute.
29
ANNEXURE A
Audit Report on the Annual Accounts of Food Corporation of India

for the year ended 31 March 2019
We have audited the attached Balance Sheet of Food Corporation

of India (Corporation) as at 31 March 2019, Statement of Profit and
Loss and Cash Flow Statement for the year ended on that date
annexed thereto under section 34(2) of the Food Corporations Act,
1964 (FC Act) as amended vide Notification No. 315 dated 2 June
2000. These accounts include the accounts of 199 units/branches
out of which 56 units (Area/District Offices) were selected for audit
on risk basis and 28units (Regional Offices/Zonal
Offices/Headquarters unit/Consolidation) were covered in audit on
annual basis. These financial statements are responsibility of the
Corporation’s Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our audit in accordance with the auditing
standards generally accepted in India. These standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material
misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by the Management,
as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis
for our opinion.
(I) we have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the
purpose of our audit; and
(II) in our opinion, proper books of accounts and other relevant
records have been maintained by the Corporation as required under
Section 34 of the FC Act, 1964 in so far as it appears from our
examination of such books subject to the following observations:
Page 1 of 24
A. General
Borrowings from National Small Saving Funds
Schedule-4: Non-Current Liabilities
Schedule-5: Short Term Borrowings
Delayed release of food subsidy by the Ministry to It is a fact that at present FCI is
Corporation has resulted in accumulation of food subsidy engaged only in implementation
arrears. As on 31 March 2019, subsidy of ₹ 1,86,23,876.36 of the Govt.of India(GoI) food
lakh was receivable from Ministry, out of which ₹ 70,00,000 policy and fully dependant on
GoI for funds(food subsidy). It is
lakh was initially paid and then withdrawn. This necessitated
also a fact that loan is not a
the Government to finance the deficits, through interest substitute to food subsidy( an
bearing loans arranged from National Small Savings Funds expenditure). This has been
(NSSF). Though the Corporation is established as a taken up with GoI with a request
commercial entity, it has no control over its cost of to provide more subsidy over
procurement or its sale price and is dependent on food and above annual subsidy
subsidy from Government of India to meet the deficit or to requirement, so that the loans
and arrear subsidy would be
service loans including interest thereon. The financing of
gradually reduced to nil.
subsidy by loans is to be viewed in the light of the Loan Moreover arrear subsidy is
agreement incorporating a condition on the Ministry and receivable form the GoI and
Corporation to improve the fiscal sustainability of the food NSSF loan is payable to GoI.
subsidy on both the revenue and cost fronts. Thus, this Thus sustainability of the
practice of arrears of food subsidy being financed by loans is Corporation is fully secured by
detrimental to the sustainability of the Corporation. the GoI
Page 2 of 24
B. BALANCE SHEET
(1)EQUITY AND LIABILITIES
I. Shareholders’ funds – (a) Share Capital (Note
1):₹3,44,757.64 lakh
A reference is invited to Note I(b)-Share Capital
It has been decided by the GoI to infuse
wherein it is stated that “Equity capital is infused byfresh equity capital of Rs.500000 lakh in
GoI mainly under plan fund primarily for construction phased manner to fund the perpetual
of godown. During the year GoI has released ₹ stock held by FCI. As a part of this
50000.00 lakh as investment in the equity capital of decision Rs.50000 lakh was provided in
India”. the year 2018-19. The note would be
suitably modified in 2019-20
The above Note is not factually correct as GoI incorporating the above decision of GoI.
had contributed ₹56,300 lakh towards equity capital
of the Corporation during the year i.e. ₹ 50,000 lakh
as investment in the equity capital of the Corporation
and ₹ 6,300 lakh under plan funds for the
construction of godowns in north east region of the
Corporation,
II. Non-Current Liabilities

Other Long Term Liabilities (Note-4)
National Small Savings Fund: ₹
1,44,60,000 lakh
In the past years also, this loan was
The above represents loan from National Small depicted under the head other long term
Savings Fund which is not in the nature of trade liabilities. However as pointed out by
liabilities/other liabilities. The same should have C&AG, this will be sutabily classified in
been shown under Long Term Borrowings (Note-3). the accounts for the year 2019-20
onwards.
Thus, Other Long-Term Liabilities are overstated by
₹ 1,44,60,000 lakh and Long term Borrowings are
understated by the same amount.
III. Current Liabilities

(a) Trade payables (Note 6): ₹17,04,502.87 lakh
i. The above does not includes ₹ 16,844.62 lakh i. The payment of revised storage rate to
SWCs are conditional. In absence of
towards arrears of revision of storage charges
fulfilling the condition the increased rate
payable to State Warehousing Corporations (SWC)
is not payable. This has been suitably
for the year 2016-17.Ministry of Consumer Affairs,
disclosed at Note–H forming part of
Food & Public Distribution (Ministry)vide letter dated
Statement of Profit & Loss Account.
13 February 2019 made revision to the storage
charges payable for the year 2016-17 by FCI to
CWC/SWCs. The revised monthly rate was₹4.68 per
Page 3 of 24
bag of 50 kg. The Corporation has not made any
provision for the amount payable to SWCs towards
additional storage charges which resulted into
understatement of Trade Payables and Storage
Costs by ₹ 16,844.62lakh.
ii. As per past practice State Govt. of
ii.The above head is understated by ₹ 638.31 lakh
Nagaland did not claim the HTS for years
on account of short booking of hill transport subsidy
together in spite of reminders, thus it
(HTS) in respect of Area Office, Dimapur for period
would be accounted on cash basis.
April to June 2016. National Food Security Act
Suitable disclosure has been given at
(NFSA) was implemented in the State of Nagaland in
Note no. 17 (9) of General Notes.
July 2016 and HTS was not payable after its
implementation w.e.f. July 2016. However, the
estimated liability of ₹ 2,553.23 lakh provided for the
year 2016-17 was withdrawn fully by the Corporation
instead of ₹ 1914.92 lakh for nine months w.e.f. July
2016. This resulted in understatement of Trade
Payables as well as Expenditure by ₹ 638.31 lakh.
iii. Trade Payables does not include₹ 870.25 lakh on
account of stamp duty (along with interest) payable iii. Necessary disclosure has been given
at para 2, Note 8A on Fixed Assets and
to State Govt. of Punjab for registration of land at
Intangible Assets.
five centres at Hoshiarpur, Dasuya, Balachaur,
Garhshankar and Ghanourinin compliance of Punjab
and Haryana High Court order. Consequent to High
Court’s order, State Government has raised demand
notices in November 2018.The Corporation has not
made any provision for payment of stamp duty which
resulted into understatement of Current Liabilities
and Land by ₹ 870.25lakh.
iv. As per Accounting Policy-17, the liabilities which
are more than three years old shall
iv. It is a continuous process and would
be written back in fourth year after following due be addressed in the year 2019-20.
procedure. Trade Payables includes liabilities of
₹ 853.55 lakh in respect of Punjab region which are
more than three years old.
The Corporation did not review/write back these
liabilities in accordance with Accounting Policy-17.
(b) Other Current Liabilities (Note 7) – ₹

4,83,550.53 lakh
i. The above is understated by ₹ 1,457.54 lakh being i. The matter is subjudice. Necessary
arrears payable to workers for the period March 2003 accountal will be done on disposal of the
to March 2018 under FCI Food Handling Labours court case.
Page 4 of 24
Cooperative Society at Siliguri/NJG Depots on
categorization as regular employees in compliance
with the Supreme Court order dated 17 September
2018. Though Board of Directors (BoD) of
Corporation in their meeting held on 27 September
2018 decided to comply with the Court’s order, but it
did not provide liability of ₹ 1,457.54lakh on this
account. This resulted in understatement of Other
Current Liabilities and Handling Expenses by ₹
1,457.54 lakh.
ii. Pay-revision are implemneted only
ii Other Current Liabilities are undersated by due to after approval of the Govt. of India.
non inclusion of ₹ 1,10,110.50 lakh being the pay Disclosure on this matter has been given
revision arrears payable to category III & IV in Note J of Statement of Profit and Loss
employees for the period Account.
1 January 2017 to 31 March 2019. The MoU between
Corporation and Labour Union for pay revision w.e.f.1
January 2017 was signed on 1 February 2019 and
subsequently pay revision proposal was approved by
the BoD on 27 February 2019 and by administrative
Ministry on 7 August 2019 i.e. before adoption and
approval of annual accounts by the BoD on 18
December 2019. In pursuance of para-8 of AS 4 and
para-14 and 15 of AS 29, the Corporation should
have made provision in the accounts for pay revision
arrears. Non-provision of pay revision arrears payable
to category III & IV employees has resulted in
understatement of Other Current Liabilities and
Expenditures by ₹ 1,10,110.50 lakh.
(iii) Matter pertains to all the regions of
iii. Supreme Court vide order dated 20 August 2018 South Zone including Kerala and was
had upheld the orders of Madras High Court and subjudice in the Supreme court.The case
lower Courts which directed for regularization of was contested by FCI by filing an appeal in
services of contract labourers at depots in Kerala the Hon’ble Supreme Court. Finally, the
Hon’ble Supreme Court delivered judgement
State with attendant benefits from the date of vide its order dated 19.05.2020 in favour of
notification abolishing employment of contract labour. FCI by rejecting the claim of workers for
The Corporation has not provided liability in regularization under DLS. It held that DPS is
compliance of Supreme Court of India Judgment a regular system of labour in FCI and there is
no court order which directs FCI to absorb
dated 20 August 2018. The amount of estimated the workers under DLS and not under DPS.
liability on this account was not made available to The payment of arrears to the already
Audit and hence could not be quantified. absorbed DPS workers will depend on date
of joining of each worker and also the final
directions in the CGIT awards. One of the
awards does not specifically provide for
attendant benefits. Final Liability for arrears
of wages would be worked out in accordance
with the Court Judgement dated 25.05.2020
Page 5 of 24
and accountal will be done on crystallization
of liability. As the matter was subjudice on
the date of adoption of Accounts by the
BOD, therefore, there is no understatement
of liability.
(2) ASSETS
I. Non-Current Assets
(a) Fixed Assets (Note 8)
Buildings (Staff Quarters)
The title deeds of staff quarters at Nandhini Layout Necessary action will be taken in 2019-
20.
and Rajmahal Vilas II at Karnataka State were stated
to be not traceable.
(b) Long Term Loans & Advances (Note-9)

(i)Claims Receivables: ₹1,79,832.78 lakh
a. The above is overstated by ₹ 8,087.71 lakh (net off a. Matter is subjudice, Necessary
accountal will be done on disposal of
recovery of ₹ 425.86 lakh) due to inclusion of claim court case.
recoverable from a handling contractor in Arunachal
Pradesh region. The claim including interest which
was on account of fraudulent payment made to
contractor, is doubtful of recovery.
b. The above is overstated by ₹ 1,11,803.60 lakh due
to inclusion of claims on account of recoveries from
departmental labours which are not recoverable in b. Necessary accountal will be done in
pursuance of Supreme Court orders dated 5 October 2019-20. Suitable disclosure is already
2018 and 26 March 2019. Further Corporation is also given in Note 9 (f) forming part of
Balance Sheet.
to repay an amount of ₹ 35,785.96 lakh to its
labourers for which recovery has already been made. Rs.1,47,589.56 lakh was accounted as
This has resulted into overstatement of Trade recovery/ claim from labourers from
Receivables by ₹ 1,11,803.60 lakh, understatement 2016-17 to 2018-19.
of Current Liabilities by ₹ 35,785.96 lakh and
understatement of Expenditures of by ₹ 1,47,589.56
lakh.
Further Note 9(f)(ii) states ₹ 1,47,589.56 lakh as
already recovered from labourers during 2016-17 to
2018-19. The Note is factually incorrect as the
amount recovered from labourers was ₹ 35,785.96
lakh.
(ii) Deposits and Other Receivables: ₹ 32,358.95

lakh ii. Suitable action would be taken in
Page 6 of 24
The above includes ₹ 279.09 lakh being the amount 2019-20.
recoverable from transport contractors towards risk
and cost clause invoked due to failure to adhere to
the contractual obligations by them. The amount
recoverable is long pending and is doubtful of
recovery.
II. Current Assets

(a) Trade Receivables (Note 12): ₹
1,89,65,033.72 lakh
i. The above includes an amount of ₹ 70,00,000 lakh
i. Factual.
being the amount of food subsidy released by
Ministry during 2018-19 to Corporation and
subsequently withdrawal by replacing the same with
an equivalent amount of loan from National Small
Saving Funds (NSSF). Withdrawal of already
released food subsidy in 2018-19 resulted in
increase of trade receivables for food subsidy from
Ministry by ₹ 70,00,000 lakh with corresponding
increase of liabilities for NSSF loan by the same
amount and consequent interest obligations on the
borrowed funds @ 8.52 per cent per annum.
ii. The above includes an amount of ₹ 2,45,403.12
lakh being the amount recoverable from Ministry of
Rural Development, Govt. of India on account of ii. Though the recovery of dues is
food grains issued under Sampoorn Gramin Rozgar delayed but it is not doubtful. Matter
Yojna. The scheme was closed on 31 March 2008 is actively pursued by Administrative
and dues are still subject to reconciliation. The Ministry with the Ministry of Rural
Development for releasing payment.
amount recoverable from Ministry of Rural
Development is long pending and is therefore
doubtful of recovery.
iii . Necessary disclosure has been given
iii. The above head includes an amount of ₹ 6,099
in point No.(e), Note No. 12 on Trade
lakh being the amount receivable from MMTC Ltd.
Receivable. Matter is under active
on account of wheat export from Central Pool Stocks
pursuation for recovery of amount.
during 2013-14. This amount has been adjusted by
MMTC Ltd.against their pending claims on the
ground that Corporation has withheld their claims
pertaining to previous import-export transactions
since 1991. Thus the possibility of realization of this
amount is remote and doubtful of recovery.
Page 7 of 24
(b) Other Current assets (Note-15)
Other Current Assets: ₹ 87,483.31 lakh
i.The above includes claims of ₹ 79,935.89lakh
pertaining to VAT Input Tax Credit. As food grains i. Matter is subjudice. Necessary
have been exempted under GST Act and the Input accountal will be done on disposal of
Tax Credit is not available on exempted goods as court case. Disclosure is given in Note
per Section 17 of GST Act, the claims recoverable no.15 (a) forming part of Balance Sheet.
on account of VAT input tax credit are doubtful of
recovery.
ii. The above amount of ₹ 87,483.31 lakh has been
derived after deducting negative balances of deposit
recoverable of ₹ 1,261.08 lakh. Infact ₹ 1,261.08 ii . Suitable classification of head of
accounts shall be done in 2019-20.
lakh is not deposit recoverable but was payable to
various contractors of Depot Online System which
should have been depicted under Current Liabilities
(Trade Payables). The incorrect adjustment of
deposit payables with the current assets resulted in
understatement of Other Current Assets and Trade
Payables by ₹1,261.08 lakh.
C.STATEMENT OF PROFIT AND LOSS

(1)INCOME
(a)Revenue
Sale(Note A): ₹ 31,55,466.78 lakh
The above is understated due to non-inclusion of
a. The Govt. of India decides the
value of by-products retained by millers during the cost of various elements of
process of paddy milling which should have been procurement incidentals including
considered as sale by the Corporation after milling charges by issue of cost
introduction of GST Act. This resulted in sheets for each State. Such cost
understatement of Sale as well as Purchase (milling sheet does not specify the cost of
charges) by the value of by products. The value of byproducts retained by the rice
miller. This has been taken up
by products is unascertained till date. The
with the GoI. Once the cost of
Corporation has neither accounted for the value of byproduct is decided necessary
by-products as Sale and Purchase nor made any booking under sales shall be
related disclosure in the accounts. made.
(b) Other Income (Note D) : Miscellaneous

Income : ₹ 1,64,929.64 lakh
The above was overstated by ₹ 293.84 lakh due to
writing back of statutory levy (market fees on sales b. Necessary disclosure has been
under Open Market Sales Scheme) collected by given at Note no. 17(4) forming
various Divisional Offices under West Bengal Region part of Balance Sheet.
Page 8 of 24
instead of timely depositing the same with the
concerned Authority. Considering these statutory
dues as time barred and writing back as income is
notappropriate. This resulted in overstatement of
Other Income as well as understatement of Other
Current Liabilitiesby ₹ 293.84 lakh each.
(2) EXPENDITURE
(a) Storage Cost (Note H)
i. Godown Rent : ₹ 2,41,378 lakh i . Appropriate corrective action will be
The above head is understated by ₹ 229.95 lakh due taken in the year 2019-20.
to short booking of supervision charges payable to
CWC/SWC for handling and transportation work
performed at CWC/SWC’s depot. Trade Payables is
also understated by the same amount.
ii. Other expenditure on Security Guards &
Others: ₹23,113.83 lakh ii . Necessary action will be taken in
The above includes ₹2,204.93 lakh as expenditure 2019-20.
incurred on hired security guards
who were deployed at various District
offices/Regional offices and other office premises
of the Corporation. As the expenditure is not related
to storage costs, the same should be booked under
Other Expenses. Incorrect accounting of expenditure
on hired security guards resulted into to
overstatement of Storage Costs and understatement
of Other Expenses by
₹ 2,204.93 lakh.
(b) Handling Expenses (Note I)
i. Salary of Departmental Labour: ₹ 1,07,410.33
lakh
The above does not include arrears of ₹ 22,700.25 (b)(i). Suitable disclosure has been given
lakh on account of pay revision of Departmental at Note-I(a) forming part of Statement of
labours for the period 1 January 2017 to 31 March Profit and Loss Account.
2019. The arrears were payable in compliance to
Corporation’s circular dated 3 June 2019. The Board
of Directors (BoD) of the Corporation approved the
said pay revision on 20 December 2018 subject to
approval of the Ministry. The Ministry directed
Corporation on 12 March 2019 to take appropriate
action with the approval of BoD. In pursuance of
para-8 of AS-4 and para-14 and 15 of AS-29, the
Page 9 of 24
Corporation should have made provision in the
accounts for pay revision arrears. Non-provision of
pay revision arrears payable to Departmental labours
has resulted in understatement of Handling Expenses
and Other Current Liabilities by ₹ 22,700.25 lakh.
ii Payment to handling contractors: ₹ 1,25,664.34
lakh (b)(ii). Necessary corrective action will be
taken in subsequent year.
The above head is overstated by ₹ 654.13 lakh due
to inclusion of supervision charges on transportation
of Foodgrains which are not in the nature of handling
expenses but are freight charges. This resulted in
overstatement of Handling Expenses and
understatement of Freight Expenses by ₹ 654.13
lakh.
(c) Employee Remuneration and Benefits (Note J)
Salaries, Wages & Allowances: ₹ 1,72,441.66 (c ) Accounting of PLI expenditure is
lakh. done in the year of approval by BOD
keeping in view the subsidised business
The above head is understated by ₹ 10,337.50 lakh
model of the corporation. Suitable
due to non-inclusion of productivity linked incentive disclosure has been given at Note I(b) &
(PLI) payable to employees for the year 2017-18. PLI Note J(a) forming part of Statement of
is a regular annual expenditure based on the Profit and Loss Account..
performance of the related previous year and
becomes due as soon as the respective year annual
accounts are finalized and PLI parameters
determined. BoD in their meeting held on 4 October
2019 approved final PLI for the year 2017-18 i.e.
before adoption and approval of annual accounts by
the BoD on 18 December 2019. In pursuance of para-
8 of AS 4 and para-14 and 15 of AS 29, the
Corporation should have made provision in the
accounts for PLI payables to employees as approved
by the BoD. Non-provision of PLI has resulted into
understatement of Salary, Wages and Allowances by
₹ 10,337.50 lakh, overstatement of Claim
Receivables by ₹ 8,590.50 lakh and understatement
of Other Current Liabilities by ₹ 1,747 lakh.
(d) Depreciation and Amortization on Fixed
Assets:₹11,338.89 lakh
The above includes depreciation of ₹1,076.51 lakh (d ) There is seperate head of account
pertaining to previous years. The same should have for previous year depreciation. Suitable
disclosure will be given from 2019-20.
been shown separately as prior period expenditure as
per provisions of AS 4. Thus current year expenditure
on Depreciation and Amortisation is overstated and
Page 10 of 24
Expense pertaining to Prior Years is understated by
₹ 1,076.51 lakh.
(e) Interest (Note L)-₹ 1326000.31 lakh
i. Bank Borrowings (Cash credit Limit): ₹
49825.99 lakh
The above includes₹ 824.14 lakh being the amount of ( e) Necessary corrective action will be
interest wrongly charged by the Bank. As per taken in the year 2019-20
Accounting Policy 6, liability for un-responded
debit/excess credit given by the Bank as well as
excess debit/un-responded credit appearing in the
Bank Reconciliation Statement (BRS) alongwith
interest accrued is retained for 10 years (as out of
book BRS items). Thus, the Corporation should not
have charged the excess debit on account of interest
charged by the Bank as interest expenditure in the
accounts. This has resulted in overstatement of
Interest Expenditure and understatement of Cash
&Cash Equivalent (Balance with Scheduled Banks)
by₹ 824.14 lakh.
ii. National Small Saving Fund: ₹ 10,40,653.22 lakh ii. Necessary corrective action will be
The interest expense is understated by ₹ 1,731.58 taken in 2019-20.
lakh due to short booking of interest payable on
NSSF loan for the year 2018-19. This has also
resulted in understatement of Other Current Liabilities
by the same amount.
.
D. CASH FLOW STATEMENT

i. Cash flow from operating activities i. Typographical error which would be
The interest pertaining to 2018-19 was₹13,26,000.31 addressed while printing the
Annual Report by way of
lakh and not ₹1,32,600.31 lakh as stated in Cash corrections note below the
Flow Statement. Similar debt/claims written off during signature.
the year were ₹ 9,831.75 lakh and not₹93,171.75
lakh as stated in Cash Flow Statement. Incorporation
of incorrect figures of interest expense and
debt/claims written off in the Cash Flow Statement
had resulted in understatement of Net Increase in
Cash and Cash Equivalents during the year by ₹
83,340 lakh and therefore Cash Flow Statement is
incorrect to the extent.
ii. Cash flow from financing activities
As per para 40 of AS-3, investing and financing ii. Necessary corrective actions will
be taken from the year 2019-20.
Page 11 of 24
transactions that do not require the use of cash or
cash equivalents should be excluded from a cash
flow statement and such transactions should be
disclosed elsewhere in the financial statements in a
way that provides all the relevant information about
these investing and financing activities.
The Ministry of Consumer Affairs, Food and
Public Distribution conveyed (28 February 2019)
sanction of NSSF loan of ₹ 27,00,000 lakh to the
Corporation by way of book adjustment towards
repayment of old loans. Accordingly installments of
old loans were considered paid without any cash
outflow from the books of Corporation. However, the
book adjustment of ₹ 27,00,000 lakh is shown as
cash inflow from NSSF Loan and simultaneously as
Repayment of NSSF Loan under Cash flow from
Financing Activities. Being a non-cash transaction, it
should not be part of Cash flow from Financing
Activities in pursuance in provisions of AS-3.
E. SIGNIFICANT ACCOUNTING POLICIES (Note

16):
i. Inventories i . The method of valuation of closing
As per Accounting Policy-2, the costs considered for stock is consistantly followed by the
corporation. Suitable disclosure is given
valuation of inventories includes cost of purchase, cost
at note no 17(6).
of conversion and other cost incurred in bringing the
inventories up to the first point of storage. In
contravention of its Accounting Policy-2, Corporation
had considered expenditure of earlier years which are
not related to current year acquisition process of rice
and wheat while arriving closing value of inventory of
rice and wheat. In the absence of detailed segregated
information of expenditure of earlier years (i.e. crop-
wise, year-wise), amount is unascertainable in Audit.
ii. Investment
ii. Corporation does not have any
The Accounting Policy-7 states that investments are investment. However, as per observation
carried at cost. This Accounting Policy is not of C&AG, Accounting Policy will be
consistent with the provisions of AS-13. Para 14 of reviewed.
AS-13 states that current investments should be
carried at the lower of cost and fair value. Further para
17 states that long term investments is usually carried
as cost and decline other than temporary in the value
Page 12 of 24
of a long term investment should be recognised by
reducing the carrying amount of long term investment.
iii. Employee Benefit iii. FCI being a subsidy based
Based on directions from Ministry of Consumer Affairs, organization booking of employees
Food and Public Distribution, FCI had made terminal benefits (gratuity and leave
encashment) on accrual basis would
Accounting Policy No. 8 for accounting of Employee
amount to higher subsidy to be
Benefits (gratuity and leave encashment) on cash claimed from GoI. Thus this deviation
basis. The said accounting policy is in violation of has been adequately disclosed in the
Accounting Standard 15 and needs to be revisited. In notes along with the financial
accordance with Accounting Policy No. 8, FCI has implications.
provided liability towards gratuity and leave
encashment on cash basis. The understatement of
expenditure on this account to the extent of
₹2,64,399.47 lakh for gratuity and ₹61,476.16 lakh for
leave encashment has been disclosed at Note no.
17(3).
Subject to our observations in the preceding

paragraphs, we report that the Balance Sheet,
Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement
with the books of accounts.
In our opinion and to the best of our information
and according to the explanations given to us, the said
accounts read together with the Accounting Policies
and the Notes thereon and subject to the significant
matters in A to D stated above and other matters
mentioned in the Annexure to the Audit Report give a
true and fair view:
 In so far as it relates to the Balance Sheet, of
the state of affairs of the Corporation as on 31 March
2019;
 In so far as it relates to the Statement of Profit
and Loss, of the profit/loss of the Corporation for the
year ended on that date; and
 In so far as it relates to the Cash Flow
Statement, of the cash flows for the year ended on
that date.
(Amitabh Prasad)
Principal Director of Audit (AF&WR),
New Delhi
Page 13 of 24
Annexure to the Audit Report of the Comptroller & Auditor General of India on
the Annual Accounts of Food Corporation of India for the year ended 31st
March 2019
The Corporation is the main agency responsible for

implementation of food policies of the Government of
India (GoI) and its primary functions are purchase,
storage, movement and distribution of food grains on Factual.
behalf of GoI. The Corporation procures food grains at
the Minimum Support Price (MSP) and these are
issued at the Central Issue Price, both fixed by the
GOI. The difference between total sales realization
and cost of the food grains is reimbursed by the GoI
as subsidy as per Ministry of Agriculture letter No. 8-
4/70-PC FC A/c dated 25 April 1980 as amended from
time to time. Corporation claimed food subsidy of ₹
1,20,39,515.10 lakh for 2018-19 out of which no
amount was reimbursed by GoI. However, the
Corporation has received during 2018-19 an amount
of ₹ 70,09,800 lakh towards food subsidy arrears
pertaining to 2017-18 (₹ 50,77,675.97 lakh) and 2016-
17 (₹ 19,09,492.39 lakh) and for payment to State
Governments (₹ 22,631.64 lakh) towards differential
coarsegrain subsidy of earlier years.
2. Since 2016-17, food subsidy was partly released

NSSF loans are provided by the
by Ministry through budgetary support and partly by
Government of India against the arrears
loan from National Small Saving Funds (NSSF) loans.
food subsidy, as well as for funding the
NSSF loans were provided by the GoI against food
buffer food grain stock. The subsidy
subsidy arrears as well as to clear old loans. GoI
arrears have arisen in the normal
sanctioned a loan of ₹ 70,00,000 lakh at interest of 8.8
course of business of FCI i.e. sale of
per cent, ₹ 65,00,000 lakh at interest of 8.4 per cent
subsidized food grains to state
and ₹ 97,00,000 lakh at interest rate of 8.52 per cent
governments under NSFA and other
during 2016-17, 2017-18 and 2018-19 respectively welfare schemes of GoI. Thus, it would
from NSSF. In 2018-19, out of sanctioned loan of ₹ be appropriate to conclude that interest
97,00,000 lakh from NSSF,₹ 27,00,000 lakh was charges are directly related to food
sanctioned for repayment of existing NSSF loans and grain operations.
₹ 70,00,000 lakh was provided through book
adjustment of an equivalent amount by withdrawing Further, there is no direction of GoI for
already released food subsidy in 2018-19 by Ministry treating the interest expense on NSSF
to the Corporation. As on 31 March 2019, NSSF loans loans separately. Thus, interest
of ₹ 1,91,00,000 lakh were outstanding which expense on NSSF loans are like any
represents 69.49 per cent of total liabilities (₹ other interest expense on other loans
2,74,86,291.01) of the Corporation. The interest on viz. bonds, CCL, STL and WMA etc.
NSSF loans for the year (₹ 10,40,653.22 lakh)
represents 8.65% of subsidy claims (₹ 1,20,35,162.55 Hence, interest on NSSF loan qualifies
Page 14 of 24
lakh) of 2018-19.NSSF loan agreement conditions for classification under clause 7(H) of
stipulates that repayment of principal along with GoI letter dated 25-04-1980.
interest would bear first charge on food subsidy
budget provided to Ministry.
Corporation had paid Interest on NSSF loan as
per stipulated terms and conditions of the loan
agreements. It claimed interest paid on NSSF loan as
part of food subsidy claim from GoI. Interest paid on
NSSF loans had adverse impact on acquisition cost of
food grains. It had increased economic cost of
purchase of wheat by ₹ 1.72 per kg and rice by ₹ 2.53
per kg during 2018-19. In this context, a reference is
invited to Ministry of Consumer Affairs, Food and
Public Distribution circular dated 25 April 1980 on the
principles to be followed in working out the food
subsidy claims for distribution and holding of buffer
stocks of food grains on behalf of Central Government
and allocation of common costs between various
operations. The para 7(h) of above mentioned circular
states that actual net interest liability of the
Corporation as allocable to the food grains
transactions on central account will be included in
subsidy account. The cumulative amount of interest
charges of ₹ 16,99,326.28 lakh from 2016-17 to 2018-
19 on NSSF loans are not directly related to food
grains operations as stated in para 7(h) of ibid circular
dated 25 April 1980 but the consequence of changed
pattern of financing of reimbursable subsidy by GoI.
However as informed by the Corporation, Ministry had
reimbursed interest paid on NSSF loans during 2016-
17 and 2017-18 to Corporation through food subsidy
claims for respective year.
3. The Management of the Corporation is

responsible for preparation of its Annual Financial
Statements under the Food Corporation Act, 1964 as
amended in the year 2000. It is imperative that there
are adequate and effective internal controls in the
Corporation. The controls should facilitate compliance
with the applicable statutes and regulations and should
provide reasonable assurance that probity and
propriety are observed in decision making and that the
Page 15 of 24
annual financial statements are free from material
misstatements. As Auditor, we have the responsibility
of making recommendations to the audited entity where
controls as observed on test check basis, appear to be
inadequate or ineffective. The observations in the
following paragraphs may be viewed accordingly:
I. General
i. The balances under debts, claims, deposits, closing i . FCI has issued balance
stock of food grains, gunnies, stores and spares etc. confirmation letter with the stipulation
loaned to/held by other parties and credit balances that balance will be deemed to be
were subject to confirmation. confirmed in the event of non-receipt
of adverse communications.
ii. Sundry Creditors for estimated liability include an ii .The amount payable to CWC as on
amount of ₹ 5,844.89 lakh due to Central Warehousing 31.03.2019 is based on Books of
Corporation (CWC) whereas as per the books of CWC, Accounts of FCI.
the amount receivable from the Corporation is ₹
26,499.74 lakh as on 31 March 2019.
iii. Title deed for the land measuring 3 Bighas occupied
by Zonal Office Guwahati at Amingaon in the year 2013 iii . Necessary action for tracing of title
deed will be taken in 2019-20.
is not available with the Corporation.
Financial Statements (Consolidated)
(a) On the basis of the preliminary audit observations,
the Management had carried out corrections to the Factual.
accounts to the extent of ₹ 1,01,191.39lakh as Inter-
Head adjustment and
₹ 71,745.59lakh as Intra-Head adjustment before
adoption of accounts by BoDas stated below:
Inter Head Adjustment (₹ in lakh)
Debit Credit
Particul
ars
Assets 11061.15 25986.41
Liabilities 49391.43 23423.06
Expendit 37722.36 33573.87
ure
Income 3016.45 18208.05
Total 101191.39 101191.39
Page 16 of 24
Intra Head Adjustment (₹ in lakh)
Particulars Debit Credit
Assets 17905.48 17905.48
Liabilities 3055.98 3050.84
Expenditure 47817.51 47724.10
Income 2966.62 3065.17
Total 71745.59 71745.59
(b) The schedule of Contingent Liabilities has been

revised upwards by ₹ 1490.18 lakh and downwards by
₹ 1211.48 lakh and has net impact of ₹ 278.70 lakh on Factual.
Contingent Liabilities.
II. Adequacy of Internal Control
Internal control is a mechanism to provide reasonable

assurance about achievement of an entity’s objective
with regard to reliability of financial reporting,
effectiveness and efficiency of operations,
safeguarding of assets and compliance with applicable
laws and regulations.
Internal Control System was not found to be

adequate and commensurate with the size and nature
of business of the Corporation and it needs to be
strengthened in the area of compilation/ preparation/
finalization of accounts. Based on test check, the
important findings are as under:
(1) Control Environment - Board of Directors
Besides the Chairman and Managing Director, there Special/Additional Secretary &
were only seven Directors on the Board of Directors Financial Advisor represents Ministry of
Finance.
(BoD) of the Corporation as on 31 March 2019 as
against twelve directors prescribed under Section 7 of Shri Dharmendra, ASFA was a member
the Food Corporation Act, 1964 as amended in the of the Board as on 31.03.2019.
year 2000. It is observed that out of them only two
directors were independent director and others were There were 9(nine) Directors on the
officials of FCI/CWC/Ministry/State Government. There Board of Corporation on the date of
Page 17 of 24
is no functional Director except Chairman and approval of Accounts i.e. 18-12-2019.
Managing Director. As per the requirement of the
section 7 of the FC Act, 1964, as amended 2000, there
should be two directors, one each from Ministry of
Finance and Ministry of Co-operation (now Ministry of
Agriculture and Farmers Welfare). However it was
observed that BoD does not have any directors from
the Ministry of Finance as on 31 March 2019 which has
bearing on exercise of oversight of the development
and performance of internal control and independence
from the Management.
(2) Control Activities

(A) Adequacy of Internal Audit System
Internal Audit is conducted by the team of FCI’s own

staff as well as by outsourcing the task to the outside Factual.
agencies. Out of the sanctioned strength of 447 for
internal audit function, the men in position were only
125 as on 31 March 2019 resulting in shortfall of 322
(72 per cent). Considering the shortfall, Executive
Director of Zones were authorized to outsource internal
audit work to Chartered Accountants/Cost &
Management Accountants firms on need basis.
Despite resorting to outsourcing of the work of

Internal Audit to CA/CMA firms, the coverage units has
decreased to 976 units in 2018-19 as against 1034
units achieved in 2017-18. There was also decrease in
achievement of planned units for internal audit from
96.28 per cent in 2017-18 to 65.37 per cent. Further
internal audit system needs to be strengthened as the
following observations/deficiencies in Internal Audit
system were noticed during the audit:
(a)The all India audit coverage/outstanding paras
position is given as under:
Audit Coverage of offices and Depots as on 31
March 2019 Factual.
Planned Actual Arrears
Units coverage
Office/Depot Office/Depot Office/Depot
1493 976 517
The above table shows that 34.63% of planned

units could not be covered for internal audit during
Page 18 of 24
2018-19.
Outstanding internal audit paras as on 31 March

2019
Opening Raised Settled Closing
Balance during the during the balance
year year
4042 5519 5447 4114
(b)No internal audit was conducted for the period 2016- ( b)The work of internal audit has been
17 to 2018-19 in respect of various units under NE outsourced to CA Firm for which
Zone of Corporation viz. DO, Aizawl and all units under tenders were floated by FCI, ZO (NE)
Assam Region. on 15.11.2019 for the period F.Y
2016-17, 2017-18 & 2018-19 &19-20.
Appointment letter to the successful
parties were issued on 24.01.2020 by
ZO(NE). Work is under progress.
(c)System of Internal Audit under East Zone of

( c) M/s C K Dey & Associates, CA
Corporation was not adequate with respect to its size
has already completed the IA &PV
and nature of business. Internal audit was not work for FY 17-18 except one unit of
conducted for 2017-18 in respect of three units under West Bengal region. Outsourced work
Regional Office West Bengal. For 2018-19, no internal of IA&PV for FY 2018-19 of Odisha,
audit was conducted in Regional Offices at Odisha, Bihar, WB and Jharkhand region under
Bihar, West Bengal and Jharkhand under East Zone of East Zone has already been awarded
the Corporation. to CA firms on 10.10.2019. The work
was hampered due to outbreak of
COVID-19 pandemic. However, the
concerned CA firms have now been
requested to resume the audit and PV
work with all preventive measures.
(d) A review of schedules in respect to Note 6 Trade ( d) Nessesary action will be taken in
Payable revealed that there were differences between 2019-20.
balances as per schedules vis a vis consolidated Trial
Balances in respect of the following account heads:
(Figure in ₹)
Balan
Sl Balanc ce as
A/c Particula Differen
N e as per per
head rs ce
o TB sched
ule
1 1401 Sundry 105460 10527 189924
Creditors 150092 02260 000
Page 19 of 24
for Goods 92
and
Services
2 1415 Sundry 483586 48384 253479
Creditors 98766 04671 45
for 1
Estimate
d Liability
3 1806 Deposits 119088 11758 150127
from 04386 67674 640
Customer 6
s for Sale
4 1408 Sundry 125828 11366 101081
Creditors 014 38288 0274
for
Unconne
cted
Wagons.
Wheat –
Indigenou
s
(
(B) Adequacy of Physical Verification of Fixed

Assets
FCI conducts physical verification of fixed assets Factual.

annually at the end of financial year.
(C) Adequacy of Physical Verification of Inventory
The Corporation has 2027 depots comprising of 559 Observations of C&AG have been
owned depots and 1468 hired depots as on 31 March noted for corrective action and/or
2019. The Corporation selects depots for conducting improvement in system & Procedures.
physical verification (PV) at year end based on
method (i.e. ISI-PV) recommended by Indian
Statistical Institute. The Corporation conducted ISI PV
in 61 owned depots out of owned 559 depots. The
Audit associated itself in 22 depots out of the 61
depots selected by the Corporation for annual physical
verification of foodgrains at year end. During the audit
of annual accounts for the year 2018-19 and
association with the Corporation for annual physical
verification in selected 22 depots, the following
significant observations were observed:
i. The required number of wooden creates as per
norms, were not available. Due to use of
unserviceable broken wooden crates with pointing
Page 20 of 24
nails, lower layer of bags were torn and damaged.
(FSD-Lakhwali, FSD, Rajpura).
ii. Hooks were used in handling of foodgrains
bags by labour which was prohibited by the
Corporation in handling operations. (FSD-Lakhwali,
FSD, Rajpura, FSD, New Godown-Jammu, BG-Sirsa,
FSD-Dhanbad, FSD-Managbari, FSD-Kotdwar, FSD-
Okhla).
iii. The following differences were noticed between
closing stock of rice/wheat as per IISFM/as per census
list and as per Depot Online System (DOS) (FSD
Rajpura and New Godown Jammu).
FSD As per DOS As per Census
(Quantity in List/IISFM
MT) (Quantity in MT)
FSD, Rajpura 66614.00786 66622.40938
FSD, New 11853.372 14874.825
Godown,
Jammu
iv. PV was not done through DOS in contravention

of instructions issued by the Corporation on PV of
inventory. (FSD New Godown-Jammu, FSD-Katihar,
FSD-Mangalbari).
v. Trucks having different capacity were used in
violation of instruction contained in para 4(b) of
Corporation circular dated 26 March 2003 which
states that number of bags loaded in all the trucks
should be uniform except the last truck. (FSD New
Godown-Jammu)
vi. CCTV cameras were not working properly
resulted in increased risk of embezzlement/ theft of
stock stored in the godown (FSD New Godown-
Jammu, FSD-Uduppi, FSD-Katihar, FSD-Raiganj).
vii. The details of selected stack were not sent in
sealed cover as instructed in para 3.3 of Corporation
circular dated 10 February 2003 (FSD-Managbari).
viii. Moisture is manually recorded in the DOS as
the moisture meter is not connected to DOS software
(FSD- Uduppi, FSD-Kathihar, FSD-Raiganj, FSD-
Gonda, FSD-Sadulpur).
ix. Only 11 fire buckets were maintained for
Page 21 of 24
preventing fire accident at depot against the
prescribed norms of 40 Fire buckets for depot having
capacity of 10,000 MT. (FSD-Uduppi)
x. No stack cards were attached to the stacks
selected for ISI PV(FSD-Dhanbad, FSD, Mangal Bari,
FSD-Okhla).
xi. In course of ISI PV and weighment of stock it

was noticed that on 4 April 2019 the tare weight of
truck was written in register and it was manually
entered at time of capturing of gross weight. Load
weight taken from electronic scale were manually
entered in the computer system of DOS citing that
weight capturing system was not functional due to
effect of virus in the system. Thus, in manual feeding
of weight into DOS, the change of manipulation
through wrong entry for increasing the quantity of food
grains or for compensating the loss of stock in the
stack cannot be ruled out. (FSD-Dhanbad)
xii. The selected stacks as well as other stacks
were formed without dunnage material. (FSD Katihar)
xiii. The details of moisture content of loose grain
was not separately recorded as instructed in para 4(f)
of Corporation circular dated 10 February 2003
xiv. Census as on 31 March 2019 generated
through DOS was not matching with actual census
prepared for ISI PV. There was a difference of 169.5
qtls in total quantity of wheat (FSD Mangalbari).
xv. All manual depot records (including offline
weighbridge) capture weight up to kilograms only.
However, DOS captures weight upto gram. Hence,
manual/offline records and DOS records follow
different sets of approximation standard for capturing
of weight. This resulted in two different sets of weight
in respect of stacks selected for ISI PV. The weight of
three selected rice stacks as per offline weighbridge
was 485612 kg whereas per DOS, weight was
485617.4 kg. Thus, there was a difference of 5.4 kg in
weight between the two records in selected three
stacks (FSD-Mangalbari).
xvi. The monthly stock Account generated by DOS
Page 22 of 24
is not in the prescribed format (FSD-Gonda).
xvii. The sample of foodgrains from the selected
stacks were put to moisture gain test and observance
of the recording process revealed that correct MCR
would be delivered only if the requisite pressure of 275
pascles was exercised on the machine which was
being used for moisture gain test. However, a review
of slip generated by machine did not exhibit the
pressure exercised. In the absence of this the
authenticity of the moisture content could not be
ensured (FSD-Sadulpur).
xviii. Under DOS, truck wise slips are generated.
However, the stack wise details showing gain/loss
were not generated and it is computed manually.
(FSD-Sadulpur).
xix. Under DOS the overall stock position can be
ascertained but the crop year wise details were not
available (FSD-Sadulpur).
xx. The godown at Kotdwar in poor condition
(damages in wall, roof leaking etc.) and no action was
taken to control the same (FSD-Kotdwar).
(D) Regularity in payment of Statutory Dues

The Corporation was not regular in payment of
statutory dues in respect of the following:
i. Statutory dues of ₹ 121.59 lakh were not paid by i) As per final Tax Audit Report for the
the due date for the period upto2018-19. year 2018-19, Rs. 900.02 Lakh was
unpaid on 30.09.2019. Further,
Rs.204.64 lakh for the year 2017-18
and prior period were unpaid as on
31.03.2019. These are disputed/
unclaimed liability for which suitable
action would be taken on receipt of
claim/resolution of dispute.
ii. General Note No. 17 to the accounts indicates that ii) These amount have already been
the following statutory dues are outstanding against disclosed at contingent liabilities note
the Corporation which have not been acknowledged no 17(1)(iv)&(vii).
as debt and hence neither paid not provided for:
(a) Purchase/ Sales Tax/ VAT & Income Tax - ₹
2,02,084.36 lakh
Page 23 of 24
(b) Property Tax and allied taxes-₹9,038.73 lakh
(E) Operational Issues

i. Non-reconciliation of 238 gunny bales being short i ) Observation is noted for mprovement
in 2019-20.
and booked against Railway/CONCOR during the year
2012-13 for short supply of gunny bales in Karnal
District.
ii. Corporation purchase rice from State Governments
ii) Observation is noted for
and its Agencies as per price determined by Ministry
improvement in 2019-20.
of Consumer Affairs, Food & Public Distribution on fair
average quality basis. Any excess moisture than the
fair average quality is treated as storage gain as per
Corporation circular 1157/Accts dated 28 January
2015 and purchase quantity considered net of excess
moisture. However, it was observed that the
instructions of the above circular were not followed
uniformly all over the Regions of the Corporation.
(F) Information Technology
Suitable disclosure has been given at
Corporation shifted to computerized Financial point no 15 of Note no 8A forming part
Accounting Package (FAP) since financial year 2013- of Balance Sheet.
14. At the time of switch over from manual to FAP,
Management decided to consider the date of
acquisition of all existing assets as on 1 April 2013. As
a result, assets acquired/placed in service prior 1 April
2013 were also shown the date of acquisition/place in
service as on 1 April 2013 in the Asset Book report.
Thus, the date mentioned in the books of account in
respect of assets (acquired/placed in service prior to 1
April 2013 is not in order) is not in order. Resultantly
balance life of existing assets could not be ascertained
and consequently the undercharging of depreciation
could not be quantified in audit.
(Amitabh Prasad)
Principal Director of Audit (AF&WR),
New Delhi
Page 24 of 24
Report on the Comptroller and Auditor General of India on the Accounts of
Food Corporation of India for the Year 2017-18
COMMENTS REPLY
We have audited the attached Balance Sheet of Food
Corporation of India (Corporation) as at 31 March 2018,
Statement of Profit and Loss and Cash Flow Statement for
the year ended on that date annexed thereto under section
34(2) of the Food Corporations Act, 1964 (FC Act) as
amended vide Notification No. 315 dated 2 June 2000.
These accounts include the accounts of 196 units/branches
out of which 40 units (Area/District Offices) were selected
for audit on rotational basis and 28 units (Regional
Offices/Zonal Offices/Headquarters unit/Consolidation) were
covered in audit on annual basis. These financial statements
are responsibility of the Corporation’s Management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
We have conducted our audit in accordance with the
auditing standards generally accepted in India. These
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free from material misstatements. An audit
1
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used
and significant estimates made by the Management, as well
as evaluating the overall presentation of financial
statements. We believe that our audit provides a
reasonable basis for our opinion.
(I) we have obtained all the information and explanations,

which to the best of our knowledge and belief were
necessary for the purpose of our audit; and
(II) In our opinion, proper books of accounts and other
relevant records have been maintained by the Corporation
as required under Section 34 of the FC Act, 1964 in so far
as it appears from our examination of such books subject
to the following observations:
A. BALANCE SHEET
I. Equity and Liabilities
Current Liabilities
Trade Payables (Note 6) - ` 19,99,112.46 lakh
Trade Payables for goods and services- `17,94,812 lakh
Being a continuous process necessary accountal has been done
The above is understated by `7,430 lakh due to non-
during the year 2018-19 after reconciliation of quantity delivered
2
accountal of the differential charges for the custom milled at District Office Level. Regional Office Andhra Pradesh has paid
rice delivered to FCI by the Andhra Pradesh State Civil (net of recovery) Rs. 190.04 Lacs. Regional Office Telangana has
Supplies Corporation Limited (APSCSCL) for the year Kharif recovered Rs. 3056.02 Lacs.
Marketing Season (KMS) 2000-01 to KMS 2008-09. The
differential charges were claimed by APSCSCL in pursuance
of cost sheet finalized by Ministry of Consumer Affairs,
Food and Public Distribution for the year KMS 2000-01 to
2008-09.
This resulted in understatement of Trade Payables for

goods and services as well as Expenditure by ` 7,430 lakh.
(ii) Trade Payables for other finances- ` 69,773.97 lakh
The above is understated by ` 638.31 lakh representing As per past practice the State Government of Nagaland did not
short booking of hill transport subsidy (HTS) in respect of claim the HTS for years together in spite of reminding, thus it
Area Office, Dimapur for period April to June 2016. National would be accounted on cash basis.
Food Security Act (NFSA) was implemented in the state of
Nagaland in July 2016 and HTS was not payable after its
implementation w.e.f July 2016. However the estimated
liability of ` 2,553.23 lakh provided for the year 2016-17 was
withdrawn fully instead of the provision w.e.f. July 2016.
This resulted in understatement of Trade Payables for other
finances as well as Expenditure by ` 638.31 lakh.
3
Other Current Liabilities (Note No. 7) - ` 5,37,242.24
lakh
The above is understated by an estimated amount of `
1,457.54 lakh for the period March 2003 to March 2018 Necessary accountal would be done after receipt of GoI approval.
being arrears of admissible amount payable to workers at
Siliguri/NJG Depots under FCI Food Handling labours
Cooperative Society on categorization as regular employees
in consonance with the Hon’ble Supreme Court order dated
17 September 2018 and decision taken in 388th meeting of
Board of Directors of FCI held on 27 September 2018.
This resulted in understatement of Other Current Liabilities
and Expenditure by ` 1,457.54 lakh.
(ii) The above is overstated by ` 5,685.21 lakh on Write back has been done during the year 2018-19.
account of liability in respect of Hill Transport Subsidy
claims to be preferred by State Government pertaining to
the year 2008-09 to 2014-15. As per Accounting Policy No.
17 ‘Liabilities/Trade payable of the Corporation shall be
carried in the books of account of the Corporation for
consecutive three years from the date of its origin and in
the 4th year, these liabilities/trade payable shall be written
back in the books of accounts and credited to income after
following the due procedure’. Non writing off the liability
carrying in the books for more than 3 years has resulted in
4
overstatement of Other Current Liabilities and
understatement of Other Income by ` 5,685.21 lakh.
II. Assets
Non-Current Assets
(1) Fixed Assets (Note-8)
(i) Land- Free Hold Land - ` 11,473.01 lakh
The freehold land includes leasehold land measuring 7.63 Suitable classification and accounting action based on verification
Acre/10 Biga, 16 biswa (historical value `75,000) situated at of records would be taken in the year 2018-19.
FSD Lalgarh, Bikaner allotted (05.06.1964) by Town Planning
Department, Govt. of Rajasthan, Jaipur on lease basis. This
should have been shown under leasehold land. Besides the
liability for lease rental (not ascertainable in audit) for the
period 2001-02 to 2017-18 was not provided.
(ii) Buildings- Warehouses & Godowns and Silos were Necessary directions have been issued to unit offices for
understated by `1,140.38 lakh due to non-capitalization of: maintaining uniformity in Accounting treatment of such
Expenditure on replacement of roof in Rajouri and Poonch expenditure during the year 2018-19.
godown from CGI sheets with GL profile sheets- ` 30.46
lakh
Expenditure incurred on carpeting of roads by cement

concrete in Punjab- ` 1,109.92 lakh
This has resulted in understatement of Fixed Assets and
5
overstatement of Expenditure on Repair and Maintenance
by `1,140.38 lakh. Further Depreciation is also understated
by `77.97 lakh due to non-capitalization of capital
expenditure.
Long Term Loans & Advances (Note-9)
(i) Claims Receivables - ` 1,96,693.94 lakh
The above was overstated by ` 13,804.61 lakh due to
inclusion of the following doubtful claims:
(` in lakh)
(a) Claims recoverable from a 8,129.75 The issue is under investigation by the CBI. Suitable disclosure
handling contractor in has been given at Note No.9, point no.(e).
Arunachal Pradesh region on
account of fraudulent payment
(`7,174.93 lakh) made to him
and interest (`1,338.64 lakh) on
such fraudulent / excess
payment. (claim of `8,513.57
lakh Less ` 383.82 lakh
recovered)
(b) Claims lodged on rice millers 3,160.54 The matter is subjudice. Suitable disclosure has been given at
towards payment of double Note No. 9, point no. c(ii), which includes this amount also.
machine stitching charges in
respect of levy procurement,
6
the recovery of which was
stopped due to stay order.
(c) Claims receivables from 1,104.73 Suitable action would be taken during the year 2018-19.
employees on account of
misappropriation/shortage/defa
lcation of stocks whose
disciplinary proceeding has
been completed and the
penalty imposed by the
disciplinary authority have
already been recovered. There
was no further scope for
recovery.
(d) Claims receivables which are 1,206.81 Suitable action would be taken during the year 2018-19.
pending for a period of more
than five years in Punjab region (674+
(e) Claims receivables on account 202.78 Necessary action will be taken in 2018-19.
of interest on VAT recoverable
from State Government
Agencies
Total 13,804.61
(ii) Deposits and Other Receivables- `2,703.87 lakh
The above includes ` 279.09 lakh being the amount
7
recoverable from transport contractors towards risk and Suitable action would be taken during the year 2018-19.
cost clause invoked due to failure to adhere to the
contractual obligations by them. The amount recoverable is
long pending and is doubtful of recovery.
2) Current Assets
(i) Trade Receivables (Note 12) – `1,39,19,405.65 lakh
The above includes an amount of ` 2,45,296.47 lakh being Though the recovery of dues is delayed but it is not doubtful.
the amount recoverable from Ministry of Rural Matter is still actively pursued by Administrative Ministry with the
Development, Govt. of India on account of food grains Ministry of Rural Development for releasing the payment.
issued under Sampoorn Gramin Rozgar Yojna. The scheme
was closed on 31 March 2008 and dues are subject to
reconciliation. The amount recoverable from Ministry of
Rural Development is long pending and is doubtful of
recovery.
(ii) Other Current assets (Note-15)- ` 1,16,543.41 lakh

The above includes claims of ` 1,06,179.49 lakh pertaining The said amount is either refundable or under litigation or under
to VAT Input Tax Credit. As food grains have been
process of write-off. So the accounting action would be
exempted under GST Act and the Input Tax Credit is not
subsequently taken after materialising the same.
available on exempted goods as per Section 17 of GST Act,
the claims recoverable on account of VAT input tax credit
are doubtful of recovery.
8
B. STATEMENT OF PROFIT AND LOSS
(1) INCOME
Other Income (Note-D) - ` 2,11,741.55 lakh
Miscellaneous Income (Note-D1) - `2,08,143.55 lakh
(i) The above includes liabilities of ` 1,51,167.20 lakh written
off in pursuance of Accounting Policy 17. In pursuance of Write back of long outstanding liabilities is a normal business
Accounting Standard 5 and in view of significant amount of practice and correctly accounted for.
liabilities written back, the same should have been shown
as Exceptional item in statement of profit and loss instead
of showing under Miscellaneous Income.
Further the format of Statement of Profit and Loss is
deficient to the extent that it does not have the separate
nomenclature as prescribed in Companies Act, 2013 for the
depiction of items which are of extraordinary/exceptional
nature.
(ii) The above is overstated by ` 3,474.69 lakh of market fee

liability written back which was payable to Agriculture Noted.
Produce Market Committee (APMC) on account of activity
of export of wheat undertaken by Govt. of India during the
year 2012-13 and 2013-14. The above liability was created
in 2012-13 and 2013-14 though was not payable under
provisions of APMC Act. As it is an error in estimation of
9
liability in previous years, the writing back of liability should
have been routed through prior period income.
This resulted in overstatement of current year income and
understatement of prior period income by ` 3,474.69 lakh.
(iii) Central Government Industrial Tribunal cum

Labour Court (CGIT) passed an order in July 2016 for
recovery of excess incentive paid to departmental labourers
w.e.f 2004-05. On this account FCI booked income of `
1,44,685.80 lakh in 2016-17 and ` 22,377.60 lakh in 2017-18 Pending final decision by the Court, accountal is correct.
being the amount of recovery to be made from
departmental labourers. Out of these, FCI had made
recovery of ` 24,628.67 lakh in 2016-17 and `20,046 lakh in
2017-18 and balance amount has been shown as
recoverable from departmental labourers. The recovery has
been challenged by departmental labourers in court of law.
High Courts at different States have given interim order for
stay of recovery. The decision on writ petition is still
pending as on date. As the matter is sub-judice and involve
uncertainty on outcome of the matter, FCI should not have
recognized the amount of recovery as income. This has
resulted into overstatement of receivables by
` 1,22,388.73 lakh, understatement of liabilities by `
10
44,674.67 lakh being the amount of recovery already made,
overstatement of other income by ` 22,377.60 lakh and
understatement of prior period expenses by ` 1,44,685.80
lakh.
(2) Expenditure
(a) Purchase (Note-F) - ` 1,20,46,912.95 lakh
As per FCI Hqrs circular No. 1157/Accts dated 28 January Suitable action would be taken in subsequent year to maintain
2015, the quantity of rice purchased and its cost would be uniformity in accountal.
accounted for on net basis (gross less moisture content).
Despite discontinuance of accounting of moisture gain, the
Corporation has booked ` 21,812.41 lakh under the said
head in violation of above referred circular. This resulted in
overstatement of purchase as well as income by ` 21,812.41
lakh.
(b) Storage Cost (Note-H) - ` 2,71,339.91 lakh

Rent- Railway Land Noted for corrective action in future.
The above include an amount of ` 6,017.59 lakh being the
land license fees paid to Railways for the period 1 May
1987 to 31 March 2017 in respect of land taken on lease in
13 states but was not provided for in previous years. This
should have been booked under Prior Period Expenses in
11
pursuance of provisions of Accounting Standard 5.
This has resulted in overstatement of Storage Costs and
understatement of Prior Period Expenses by ` 6,017.59 lakh.
(c) Employees Remuneration & Benefits (Note J) -
` 2,27,701.02 lakh Suitable disclosure, if necessary, would be added in the accounts
(i) Department of Public Expenditure (DPE) vide OM dated for the year 2018-19.
26 November 2008, fixed maximum ceiling of 50 per cent
of the basic pay on the allowance and perks admissible to
different categories of executives. FCI approved perks and
allowances to category I and category II staff at 47 per cent
of basic pay (including 7 per cent for leave travel
concession and medical reimbursement) under ‘Cafeteria
Approach’. FCI further circular dated 17 August 2015
allowed productivity linked incentive (PLI) at the rate of 15
per cent to all the eligible employees, which exceeded the
overall limit of allowances of 50 per cent by 12 per cent.
FCI vide circular dated 3 August, 2017 directed for recovery
of perks and allowances paid to employees in excess of the
maximum ceiling of 50 per cent of the basic pay from the
financial year 2010-11 onwards. However the recovery is yet
to be made as the matter is sub-judice. This fact should be
disclosed by way of Notes to Accounts along with the
amount of recovery to be effected under Employees
12
Remuneration and Benefits (Note J).
(ii) Salary, Wages & Allowances- ` 1,72,814.64 lakh
This includes pay arrears of category I and II executives of `
10,734.04 lakh (up to March 2018) which should be Revision of pay and allowance of employees is done once in
disclosed separately as exceptional items in Statement of every ten years as per DPE guidelines. It is regular business
Profit and Loss in pursuance of provisions of Accounting expenditure.
Standard 5. Thus, this has resulted in overstatement of
Employees Remuneration & Benefits and understatement of
Exceptional Expenses by ` 10,734.04 lakh.
(iii) Contribution to DCPS (Defined Contribution Pension
Scheme) - `29,486.31 lakh
The above includes an amount of ` 553.71 lakh relating to Noted.
50 percent of employer’s share for arrear of pension for the
period from 1 December 2008 to 31 March 2017 in respect
of retired employees who opted out of the new pension
scheme. This liability should have been accounted during
the year 2016-17. Owing to omission in 2016-17; this
should have been routed through prior period adjustment
during the current year. This resulted in understatement of
prior period items and overstatement of current year
expenditure- Employee Remuneration & Benefits by `
553.71 lakh.
13
(d) Other Expenses (Note-K)
(i) Write off of Input Tax Credit after GST
Implementation- `1,24,683.04 lakh
The Corporation has written off input tax credit receivables It is normal business expenditure occurred due to change in
of `1,24,683.04 lakh after Goods and Services Tax (GST) Act statute and accordingly booked in accounts.
implementation from July 2017. The written off receivables
has been booked under Other Expenses. In pursuance of
Accounting Standard 5, input tax credit receivables written
off should have been booked in statement of profit and
loss account as an Exceptional item. This has resulted in
overstatement of Other Expenses and understatement of
Exceptional Expenses by ` 1,24,683.04 lakh.
(ii) Misc. Expenditure (Schedule-K-1) – 16,154.43 lakh

The includes an amount of `1,414.47 lakh in respect of
laboratory testing charges for foodgrains (` 288.71 lakh), Necessary action as suggested by Audit would be done in the
Reimbursement of conveyance charges to officers and staff accounts for the year 2018-19.
(Godown) – ` 6.24 lakh and sundry articles for use in
godown ( `1,119. 52 lakh). As the above said items of
expenditure pertains to the operations on storage of
foodgrains, the same should been included in the Storage
Cost.
Due to non- inclusion of the above expenditures in storage
14
costs; the Miscellaneous Expenditure has been overstated
and Storage Costs are understated by ` 1,414.47 lakh.
(e) Depreciation and Amortization on Fixed Assets (Note

8) - `10,836.75 lakh
The depreciation for the year (` 10,836.75 lakh) was Disclosure in this regard has been given at point no. 15 of the
understated due to incorrect adoption of 1 April 2013 as Note No. 8A in the Annual Account of 2017-18.
date of acquisition of assets which were acquired prior to 1
April 2013. As such, balance life of existing assets could not
be ascertained and consequently the undercharging of
depreciation could not be quantified in audit.
C. SIGNIFICANT ACCOUNTING POLICIES (Note - 16)

Based on directions from Ministry of Consumer Affairs,
Food and Public Distribution, FCI had made Accounting The issue of gratuity has been taken up with the Ministry of
Policy No. 8 for accounting of Employee Benefits (gratuity Consumer Affairs, Food & Public Distribution.
and leave encashment) on cash basis. The said accounting
policy is in violation of Accounting Standard 15 and needs
to be revisited. In accordance with Accounting Policy No. 8,
FCI has provided liability towards gratuity and leave
encashment on cash basis and the understatement of
expenditure on this account to the extent of ` 3,42,835.46
lakh for gratuity and ` 79,456.58 lakh for leave encashment
15
has been disclosed in Note no. 17(3).
CASH FLOW STATEMENT

(i) Cash Flow from Operating Activities
Interest Payable - ` 1,27,065.22 lakh
The cash from operating activities includes ` 1,27,065.22 Action as suggested by audit would be taken in the accounts for
lakh which represents interest payable on loans. In the year 2018-19.
pursuance of provisions of Accounting Standard 3, the
same should not have been included under cash from
operating activities. Thus cash flow from operating activities
is incorrect to the extent.
(ii) Cash Flow from Financing Activities
Interest Expense - ` 8,90,661.08 lakh
Cash from financing activities includes interest expense for Action as suggested by audit would be taken in the accounts for
the year (`8,90,661.08 lakh) instead of cash outflow on the year 2018-19.
interest payment (`7,63,959.86 lakh) during the year. Thus
cash from financing activities is incorrect to the extent.
General
Subject to our observations in the preceding paragraphs,
we report that the Balance Sheet, Statement of Profit and
Loss and Cash Flow Statement dealt with by this report are
in agreement with the books of accounts.
16
In our opinion and to the best of our information and
according to the explanations given to us, the said accounts
read together with the Accounting Policies and the Notes
thereon and subject to the significant matters in A to D
stated above and other matters mentioned in the Annexure
to the Audit Report give a true and fair view:
In so far as it relates to the Balance Sheet, of the state of
affairs of the Corporation as at 31 March 2018;
In so far as it relates to the Statement of Profit and Loss, of
the profit of the Corporation for the year ended on that
date; and
In so far as it relates to the Cash Flow Statement, of the
cash flows for the year ended on that date.
17
ANNEXURE TO THE AUDIT REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA ON THE ACCOUNTS
OF FOOD CORPORATION OF INDIA FOR THE YEAR ENDED 31ST MARCH 2018
COMMENTS REPLY
The Corporation is the main agency responsible for implementation of
food policies of the Government of India (GoI) and its primary functions
are purchase, storage, movement and distribution of food grains on
behalf of GoI. The Corporation procures food grains at the Minimum

Support Price and these are issued at the Central Issue Price, both fixed
by the GOI. The difference between total sales realization and cost of
the food grains is reimbursed by the GoI as subsidy. In 2017-18, FCI
claims food subsidy of ` 1,16,41,959.87 lakh out of which no amount

was reimbursed by GoI. Besides, GoI also reimburses the cost of
carrying of buffer stock of food grains maintained by FCI as subsidy.
The Management of the Corporation is responsible for preparation of its
Annual Financial Statement under the Food Corporation Act, 1964 as
amended in the year 2000. It is imperative that there are adequate and
effective internal controls in the Corporation. The controls should
facilitate compliance with the applicable statutes and regulations and

should provide reasonable assurance that probity and propriety are
18
observed in decision making and that the annual financial statements
are free from material misstatements. As auditors we have the
responsibility of making recommendations to the audited entity where
controls as observed on test check basis, appear to be inadequate or
ineffective. The observations in the following paragraphs may be viewed

accordingly.
I. General
The balances under debts, claims, deposits, closing stock of food grains, FCI has issued balance confirmation letter with the
gunnies, stores and spares etc. loaned to/held by other parties and stipulation that balance will be deemed to be confirmed in
credit balances were subject to confirmation. the event of non-receipt of adverse communications.
The Non Current liabilities were overstated by ` 739.46 lakh (Area Office,
Muzaffarpur) due to non-receipt of inter office general adjustments Necessary action would be taken during 2018-19.
(IOGA) in respect of 5460 gunny bales unloaded at FSD, NRPA instead
of FSD, Phulwarisharif during April-May 2009. Since this was an inter-
region transaction between Area Office, Patna and Area Office,
Muzzafarpur, an IOGA could have been exchanged between these units
to complete the transaction. As there is no identical figure for this
transaction appearing in the books of Area Office, Patna, therefore,
there is no scope of exchange of IOGAs between these units.
Sundry Creditors for goods and Services
19
Sundry Creditors for Estimated liability include an amount of `12,578.75 The amount payable to CWC as on 31.03.2018 is based on
lakh being amount payable to Central Warehousing Corporation (CWC) Books of Accounts of FCI.
whereas as per the books of CWC, the amount receivable from FCI is `
35,215.00 Lakh.
Title deed for the land measuring 3 Bighas occupied by Zonal Office Suitable disclosure based on facts would be done in 2018-
Guwahati at Amingaon in the year 2013 is not available. 19.
Bank guarantee amounting to ` 98.49 lakh relating to M/s Shee Donyi The matter is under review by external agencies and
Enterprises, contractor of FCI expired in October 2016 which indicates internally by Vigilance Division.
lack of internal control mechanism. The said contractor had committed
a fraud of ` 8514.00 lakh and due to lapse of the Bank guarantee FCI
lost the opportunity to recover at least amount of `98.49 lakh from the
contractor.
Financial Statements (Consolidated)

(a) On the basis of the preliminary audit observations, the Management
had carried out corrections to the accounts to the extent of `
3,20,454.41lakh as Inter-Head Adjustment and
` 53,720.27 lakh as Intra-Head Adjustment as stated below:
Inter Head Adjustment

(` in lakh) Factual.
20
Head Debit Credit
Assets 32,518.87 1,53,391.79
Liabilities 45,802.38 87,443.54
Expenditure 2,38,365.53 45,353.56
Income 3,767.63 34,265.52
Total 3,20,454.41 3,20,454.41
Intra Head Adjustment
(` in lakh)
Head Amount of Adjustment
Assets 5,285.7
Liabilities 3,263.20
Factual.
Expenditure 41,739.17
Income 3,432.2
Total 53,720.27
(b) The schedule of Contingent Liabilities has been revised upwards by Factual.
`5,996.66 lakh and downwards by ` 2,612.84 lakh and has net impact of `
3,383.82 lakh on the Contingent Liabilities.
II. Adequacy of Internal Control

Internal control is a mechanism to provide reasonable assurance about
achievement of an entity’s objective with regard to reliability of financial
21
reporting, effectiveness and efficiency of operations, safeguarding of
assets and compliance with applicable laws and regulations.
Internal Control System was not adequate and commensurate with the
size and nature of business of the Corporation and it needs to be
strengthened in the area of compilation/ preparation/ finalization of
accounts. Based on test check, the important findings are as under:
(1) Control Environment - Board of Directors
Besides the Chairman and Managing Director, there were only five
Directors on the Board of Directors (BoD) of the Corporation as on 31
March 2018 as against twelve directors prescribed under Section 7 of Sh. Nikhilesh Jha, SSFA, MoCAF&PD was member of the
the Food Corporation Act, 1964 as amended in the year 2000. It is Board upto 28.02.2018 (his date of retirement). Shri
observed that out of them only one director was independent director Saraswati Prasad, SSFA, MoCAF&PD was appointed w.e.f
and others were officials of FCI/Ministry/State Government. As per the 16.04.2018 as Member of Board. No Board Meeting was
requirement of the section 7 of the FC Act, 1964, as amended 2000, held during intervening period. There are nine Directors at
there should be two directors, one each from Ministry of Finance and present including two independent Directors.
Ministry of Co-operation (Ministry of Agriculture and Farmers Welfare). .
However it was observed that BoD does not have any directors from the
Ministry of Finance as on 31 March 2018 which has bearing on exercise
of oversight of the development and performance of internal control
and independence from the Management.
(2) Control Activities

(A) Adequacy of Internal Audit System
22
Internal Audit is conducted by the team of FCI’s own staff as well as The process of recruitment has already started. This will
by outsourcing the task to the outside agencies. Out of the sanctioned improve the strength of in-house Internal Audit in future.
strength of 447, the men in position were only 145 as on 31 March
2018 resulting in shortfall of 302 (68 per cent). Considering the shortfall
Executive Directors (Zone) were authorized to outsource internal audit
work to chartered accountants/cost & management accountants firms
on need basis.
Owing to outsourcing of the work of internal audit to CA/CMA firms, Review & settlement of Audit para is a continuous process.
the coverage of the same has been increased from 537 in 2016-17 to
1034 in the year 2017-18 along with increase in planned units from 713
to 1,074. However internal audit system needs to be more strengthened
as the following observations/deficiencies in Internal Audit system were
noticed during the field Audit:
(a) The all India audit coverage/outstanding paras position is given as
under:
Audit Coverage of offices and depots as on 31 March 2018
Planned Units Actual coverage Arrears
Office/Depot Office/Depot Office/Depot
1,074 1,034 40
Outstanding internal audit paras as on 31 March 2018

Opening Raised during Settled during Closing
23
Balance the year the year balance
3,247 5,445 4,650 4,042
(b) In RO Chennai and its units; internal audit on the transactions for the Audit of two DOs, Cuddalore and Thanjavur for 2017-18
year 2017-18 was not completed. have been conducted in 2018-19 and for remaining units it
will be covered in subsequent audit programme.
(c) Internal Audit of DO Lucknow for the year 2017-18 has not been The arrears of Internal Audit of DO Lucknow for the year
conducted. 2017-18 has been conducted in the year 2018-19.
(B) Adequacy of Physical Verification of Fixed Assets Factual

FCI conducts physical verification of fixed assets annually at the end of
financial year.
(C) Adequacy of Physical Verification of Inventory

Audit associated itself in 21 depots out of the 61 depots selected by FCI
for annual physical verification of foodgrains at year end. FCI selects
depots for conducting physical verification (PV) at year end based on
method (i.e. ISI-PV) recommended by Indian Statistical Institute. During
the audit of annual accounts for the year 2017-18 and association with
the Corporation for annual physical verification in selected 21 depots,
the following significant observations were made:
PV should have been conducted through Depot Online System (DOS). DOS has not yet started capturing entire end to end data,
24
hence it was not possible to generate census list and
conduct PV using DOS.
The gate pass (entry) was being generated in Token Management of The QR code generated in Token Management System of
DOS. The generated slip contained a Quick Response (QR) code/ DOS is an additional feature and not mandatory one.
picture. However, while weighing the tare weight of the truck, the data Wherever QR scanner not available, Token number is used
were not retrieved by scanning the ‘QR’ code as there was no code to retrieve truck details, which is as authentic system as QR
reader at weighbridge. Instead it was being done manually. (FSD BSC code.
Whitefield).
There is difference in the date of receipt (formation of stack) between
stack card and DOS (FSD BSC Whitefield).
The moisture content noted was different in Census list, in stack and in
DOS (FSD BSC Whitefield).
The depot uses ‘other transaction’ continuously to enter data in the
DOS manually and moisture data is manually entered in DOS (FSD
Durg).
It was observed in FSD Mayapuri, Delhi that particular shed was not Observations of C&AG have been noted for corrective
revealing the number i.e 13B/03, 13B/08, 13D/06, 13E/09, and also a few action and/or improvement in system & procedures.
stacks were not displaying the number.
The sample of foodgrains from the selected stacks were put to 0%
moisture gain test and observance of the recording process revealed
that correct MCR would be delivered only if the requisite pressure of
275 pascles was exercised on the machine which was being used for
25
moisture gain test. However, a review of slip generated by machine did
not exhibit the pressure exercised. In the absence of this the
authenticity of the moisture content could not be ensured (FSD,
Mayapuri, Delhi).
FSD, Sikar had one analog moisture meter and two digital moisture
meter. Both the digital moisture meters were not in working condition
at the time of PV.
The daily statement in respect of receipt and issue of rice generated by
depot online system indicate “NIL” position in this regard. However, the
priority override usage report of depot online indicates entry of 210
bags for road transportation and issue of 300 bags from stacks No.
3B03 and 5A06, respectively (FSD Sikar).
There was difference in closing stock as per DOS, Integrated Information
System for Foodgrains Management (IISFM) and as per the record of
depot (FSD Tanda, Punjab).
Trucks having different capacity (9 MT and 15 MT) were used in
violation of instructions contained in Para 4(b) of FCI Hqrs circular dated
26 March 2003 which states that number of bags in the stack should be
so divided to ensure that equal number of bags are loaded in each
truck for weighment except in last truck. (FSD Sahnewal Punjab). Observations of C&AG have been noted for corrective
action and/or improvement in system & procedures.
The moisture meter for measuring moisture in food grains is not
connected with DOS. The same had to be entered manually by the
26
quality control staff.
While stack-wise verification of moisture was carried out before lifting of
foodgrains, truck-wise verification of moisture was, however, not done in
FSD, FCI, Shillong. Thus, due to non-observance of truck-wise
verification of moisture, audit could not verify the same and the details
of such moisture.
(D) Regularity in payment of statutory dues

The Corporation was not regular in payment of statutory dues as As per final Tax Audit Report for the year 2017-18, `262.68
evident from below: Lacs was unpaid on 30.09.2018. Further `75.05 Lacs for the
(i) Statutory dues of ` 104.79 lakh were not paid by the due date for the year 2016-17 and prior period, were unpaid as on
year 2017-18. Further statutory dues of ` 28.03 lakh still not paid for the 31.03.2018. These are disputed/unclaimed liability for
year 2016-17 and prior. which suitable action would be taken on receipt of
claim/resolution of dispute.
(ii) General Note No. 17 revealed that the following statutory dues are These amount have already been disclosed at Contingent
outstanding against the Corporation which have not been Liabilities Note No. 17(1) (iv) & (vii) with other details in
acknowledged as debt and hence neither paid not provided for: Annual Report of 2017-18. These cases are being
Purchase/ Sales Tax/ VAT & Income Tax - ` 1,98,509.18 lakh contested at different legal forum.
Property Tax and allied taxes - ` 8,450.92 lakh
(E) Operational Issues
Non-reconciliation of 476 gunny bales being short and booked against
27
railway/CONCOR during the year 2012-13 for short supply of gunny The observations on the operational issues are noted for
bales in Karnal District. improvement in 2018-19
In the absence of taking confirmation/reconciliation from various State
Govt. Agencies in case of gunnies given on loan/taken on loan, gunnies
reflected in form XIII/6 and XIII/9 could not be verified in audit in
Punjab Region.
A test check of available records revealed that there was a difference of IISFM is a MIS (Management Information System) tool
0.91 percent between the issuable closing stocks of wheat, rice and whereas SLS (Stock Ledger Summary) is primary books of
paddy held by FCI, as portrayed by the Stock Ledger Summary (SLS) Account for Stock.
and stock position reported under Integrated Information System for
Food Grains Management (IISFM).
F) Vigilance/Court and Arbitration cases
The Corporation has not disclosed the number and age wise details of The required information is given in the Director’s Report.
Vigilance/Court and arbitration cases along with their financial impacts.
(G) Information Technology
The Corporation has switched over to computerized accounting from Consolidated Age-wise analysis report is available in FAP.
financial year 2013-14 in place of manual accounting. It was observed However, when FAP was implemented the opening
that age wise analysis report for balances prior to 1 April 2013 is not balances were taken in the system w.e.f. 01.04.2013, so old
being generated through FAP. age wise analysis of transaction prior to 01.04.2013 are not
covered in FAP. However, these are available in manual
form.
Operation of Pulses (Note-C-2)
The other current liabilities (Note 07) revealed `1,18,272.10 lakh on This is typographical error however noted for future
28
account of price stabilization fund (pulses) (Note C3). However Note C3 compliance.
was not annexed to the Annual Accounts submitted to Audit.
Sugar Price Equilization Fund (SPEF) Account (Note 7A) Presently FCI does not undertake any Sugar operation. FCI
(i) The SPEF Account is being maintained on cash basis however rest of maintains only SPEF account on behalf of GoI. Payment is
FCI accounts is maintained on accrual basis. released to State Govt./UT/Sugar Mills as per policy
direction of GoI. This has been suitably disclosed in Note
7A.
(ii) Enhanced Price Paid to Sugar Mills - ` 691.81 lakh
The above does not include an amount of ` 177.12 lakh being the Suitable disclosure/accounting action as appropriate would
amount payable to M/s. Harinagar Sugar Mill Limited in pursuance of be added/taken in the Accounts of 2018-19.
Hon’ble Supreme Court of India decision dated 30 March 2017 in the
Curative Civil Petition No. 81 of 2017. The Ministry of Consumer Affairs,
Food & Public Distribution has agreed vide letter dated 16 August 2017
to reimburse the recovered amount of ` 56.96 lakh for sugar seasons
1975-76 to 1977-78 along with interest of ` 120.16 lakh. Hence,
necessary disclosure of this fact should be given in the footnote of SPEF
Account.
(Rajdeep Singh)
Principal Director of Commercial Audit
& Ex-officio Member Audit Board- IV, New Delhi
Dated:01.05.2019
29
FOOD CORPORATION OF INDIA
(Constituted under The Food Corporations Act, 1964)
Head Quarters: Khadya Sadan, 16-20, Barakhamba Lane, New Delhi - 110 001
Tel.: (011) 43527312, 43527633
Application No.:
NAME OF APPLICANT:
APPLICATION FORM FOR GOVERNMENT OF INDIA GUARANTEED REDEEMABLE NON-CONVERTIBLE UNSECURED TAXABLE BONDS (SERIES X) IN THE NATURE OF DEBENTURES
Food Corporation of India, Head Quarters: Khadya Sadan, 16-20, Barakhamba Lane, New Delhi - 110 001. For Office Use Only
Dear Sirs, Date of Receipt of Application
Having read, understood and agreed to the contents and terms and conditions of Food Corporation of India’s Draft Disclosure Document
/ 0 8 / 2 1
dated August 11, 2021, i/we hereby apply for allotment to me/us, of the under mentioned Bonds (hereinafter referred to as “Bonds”), out of the
Private Placement Issue. I/We irrevocably give my/ our authority and consent to SBICAP Trustee Company Limited, to act as my/our Trustees
Date of RTGS/ Fund Transfer
and for doing such acts and signing such documents as are necessary to carry out their duties in such capacity. The amount payable on
application as shown below is remitted herewith. I/We note that the Board of Directors is entitled in their absolute discretion to accept or reject / 0 8 / 2 1
this application in whole or in part without assigning any reason whatsoever.
I/we confirm that I/we have not received and will not receive any commission or brokerage or any other incentive in any form, directly or indirectly, for subscribing to the Issue.
APPLICANT’S DETAILS (PLEASE READ CAREFULLY THE INSTRUCTIONS ON THE NEXT PAGE BEFORE FILLING UP THIS FORM)
SOLE/FIRST APPLICANT’S NAME IN FULL SIGNATORY/AUTHORISED SIGNATORY
SECOND APPLICANT’S NAME
THIRD APPLICANT’S NAME
ADDRESS (Do not repeat name) (Post Box No. alone is not sufficient)
TEL FAX PIN CODE
SOLE/ FIRST APPLICANT CATEGORY (Tick one) INVESTMENT DETAILS

 Scheduled Commercial Company Bond Series Series X
 Financial Institution Security Name [●]%-FCI-2031
 Insurance Company Tenure 10 years
 Primary/ State/ District/ Central Co-operative Company Coupon Rate [●]% p.a., payable annually on August 13, each year
 Provident/ Gratuity/ Superannuation/ Pension Fund Face Value/ Issue Price per Bond Rs. 10,00,000/-
 Regional Rural Company Amount payable per Bond (i) Rs. 10,00,000/-
 Mutual Fund No. of Bonds applied for (ii)
 Company/ Body Corporate Total Amount Payable (Rs.) (in fig)
 Others (please specify) – (i) x (ii)
PAYMENT DETAILS
Total Amount Payable UTR No.
(Rs. in figures) (Rs. in words) Dated
Name of the Bank
Branch
SOLE/ FIRST APPLICANT’S BANK DETAILS (Ref. Instructions) INCOME TAX DETAILS (Ref. Instructions)
Bank Name Sole/ First Applicant Second Applicant Third Applicant
Branch / City P.A,N./ G.I.R. NO.
Account Number
IFSC Code I.T. Circle/ Ward/ District No.
Type of Account  Savings  Current  Others
TO BE FILLED IN ONLY IF THE APPLICANT IS AN INSTITUTION

Name of the Authorised Signatory(ies) Designation Signature
1. 1.
2. 2.
3. 3.
4. 4.
DETAILS FOR ISSUE OF BONDS IN ELECTRONIC/ DEMATERIALISED FORM APPLICANT’S SIGNATURE(S)

Depository Name (please tick)  NSDL  CDSL Sole/ First Applicant
Depository Participant Name
DP-ID Number
Client-ID Second Applicant
Beneficiary Account Number
Name of the Applicant Third Applicant
-----------*----------*---------*------------*-------------*------------*-----------*-----------(Tear Here)-----------*-------------*-------------*-----------*-----------*-----------* ------------*----------*-------
FOOD CORPORATION OF INDIA ACKNOWLEDGEMENT SLIP
(Constituted under The Food Corporations Act, 1964) Application No.:
Head Quarters: Khadya Sadan, 16-20, Barakhamba Lane, New Delhi – 110 001
Tel.: (011) 43527312, 43527633
(To be filled in by the Applicant)
All future communication in connection with this application should be
Received from________________________________________________________________ addressed to the Registrars, Beetal Financial & Computer Service (Private)
Address_____________________________________________________________________ Limited [Address: Address: Beetal House, 3rd Floor, 99 Madangir, Behind
an application for __________________ Bonds vide UTR No. __________________________ LSC, New Delhi-110062, Tel: (011)29961281-83, Fax: +91 (011)29961281, E-
Drawn on__________________________________ Dated__________________ amounting to mail:[email protected]] for any other person at such address as
Rupees_____________________________________________________________________. may be notified by FCI from time to time.
INSTRUCTIONS
1. Application forms must be completed in full in BLOCK LETTERS IN ENGLISH. A blank space
must be left between two or more parts of the name.
A B C D E L T D
Signatures should be made in English or in any of the Indian languages. Thumb impressions
must be attested by an authorised official of a Bank or by a Magistrate/ Notary Public under his/
her official seal.
2. The remittance of application money to be made through Electronic transfer of funds through
RTGS mechanism for credit as per details given hereunder:
 All investors have to do funds pay-in to the bank accounts of the Indian Clearing
Corporation Limited (ICCL) as mentioned on BSE EBP Portal.
 Successful Bidder may please ensure that fund remite to the account of ICCL on cutoff
date and time positively.
 Cash, Stock Invest, outstation cheques, money orders, postal orders etc. will NOT be
accepted.
3. Application forms duly completed in all respects must be submitted with the respective
Arrangers.
4. The PAN / GIR No. and IT Circle / Ward / District of the Sole / First Applicant and all Joint
Applicants(s) should be mentioned in the Application Form. In case neither the PAN nor GIR
Number has been allotted, the fact of non - allotment should be mentioned in the space
provided and Form 60 should be submitted duly signed. In absence of PAN no. it may be noted
that TDS will be deducted at a higher rate if applicable.
5. All communications will be addressed to the applicant whose name appears first in the
application form.
6. Those desirous of claiming tax exemptions on interest on application money are compulsorily
required to submit a certificate issued by the Income Tax Officer/relevant declaration forms (as
per Income Tax Act, 1961) along with the Application Form. In case the above documents are
not enclosed with the application form. TDS will be deducted on interest on application money.
For subsequent interest payments, such certificates have to be submitted periodically.
7. Applicant should mention their Depository Participant’s name, DP-ID and Beneficiary Account
Number in the appropriate place in the Application Form. The Issuer will take necessary steps to
credit the Depository Account of the allottee(s) with the number of Bonds allotted.
8. Please give the Complete Bank details like Bank Account Number, IFSC Code, Name of the
Bank and Branch and Branch Code in the Column of Bank details.
9. As a matter of precaution against possible fraudulent encashment of interest warrants due to
loss / misplacement, applicants are requested to mention the full particulars of their bank
account, as specified in the Application Form. Interest warrants will then be made out in favour
of the sole / first applicant’s account. Cheque(s) will be issued as per the details in the register
of Debenture holders at the risk of the sole / first applicant at the address registered with Issuer.
10. The applications would be scrutinized and accepted as per the provisions of the terms and
conditions of the Private Placement, and as prescribed under the other applicable statues /
guidelines etc. Issuer is entitled, at its sole and absolute discretion, to accept or reject any
application, in part or in full, without assigning any reason whatsoever. An application form,
which is not complete in any respect, is liable to be rejected.
11. The application would be accepted as per the terms of the scheme outlined in the Draft
Disclosure Document for Private Placement dated August 11, 2021.

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Serial No.

: [______] Private & Confidential – For Private Circulation Only

FOOD CORPORATIONOF INDIA

PRIVATE PLACEMENT OF GOVERNMENT OF INDIA GUARANTEED REDEEMABLE NON-CONVERTIBLE

TRUSTEES FOR THE BONDHOLDERS REGISTRAR TO THE ISSUE

ADVISORS TO THE ISSUE (in alphabetic order)

16. OUTSTANDING BORROWINGS/ DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER

34. EVENTS OF DEFAULT & REMEDIES

1. DISCLAIMER OF THE ISSUER

2. DISCLAIMER OF THE SECURITIES & EXCHANGE BOARD OF INDIA

3. DISCLAIMER OF THE ADVISORS / ARRANGERS TO THE ISSUE

Each person receiving this Draft Disclosure Document acknowledges that:

Please note that:

4. DISCLAIMER IN RESPECT OF JURISDICTION

5. DISCLAIMER BY DEBENTURE TRUSTEE:

6. DISCLAIMER OF THE STOCK EXCHANGE

7. DISCLAIMER OF THE CREDIT RATING AGENCIES

FORWARD LOOKING STATEMENTS

II. DEFINITIONS/ ABBREVIATIONS

III. ISSUER INFORMATION

Name of the Issuer : Food Corporation of India

Tel. No. : 011-43527462

Fax No. : +91-11-23414786

E-mail : [email protected]; [email protected]

Compliance Officer for : Mr. P. Raja Babu

Chief Financial Officer : Mr. Jayanta Sharma

Trustees for the : SBICAP Trustee Company Limited

Registrar to the : Beetal Financial & Computer Service (Private) Limited

Credit Rating : CRISIL Ratings Limited

CARE Ratings Limited

Advisors to the Issue : A. K. Capital Services Limited

Trust Investment Advisors Private Limited

Statutory Auditors : Comptroller & Auditor General of India

IV. DETAILS OF DIRECTORS OF THE ISSUER

1. CURRENT DIRECTORS OF THE ISSUER

Director Rathod, MIG-86, AEMPR5116C

2. CHANGES IN THE BOARD OF DIRECTORS DURING THE LAST THREE YEARS

Name & Designation Date of joining in FCI Date of Tenure Remarks

PS (Food, Civil Supplies & Consumer

Shri KAP Sinha 05.07.2017 06.06.2020 Transferred

V. DETAILS OF STATUTORY AUDITORS OF THE ISSUER

1. CURRENT STATUTORY AUDITORS OF THE ISSUER (FY 2021-22)

2. CHANGE IN STATUTORY AUDITORS OF THE ISSUER SINCE LAST THREE YEARS

• Distribution of foodgrains throughout the country for public distribution system.

2. VISION & MISSION

• Ensuring Food Security for citizens of the country.

• To provide farmers remunerative prices

• To maintain buffer stocks as measure of Food Security

• To intervene in market for price stabilization

4. OPERATIONS OF FCI- AN OVERVIEW

ii. Systems of procurement:

Rice is procured through Custom Milled (CMR) route.

iii. Centralized and Decentralized procurement systems:

a). Centralized (Non-DCP) procurement system:

b). Decentralized (DCP) Procurement

STATES UNDERTAKING DECENTRALISED PROCUREMENT OF RICE

DCP for Rice

STATES UNDERTAKING DECENTRALISED PROCUREMENT OF WHEAT

DCP for Wheat