DIRECTORS

BOARD OF

Shri. S.C. Mudgerikar

Chairman & Managing Director

Shri. Anupam Misra Shri. S. Sakthimani Dr. Jayachandran K. Ms. Aparna S. Sharma
Director (Marketing) Director (Finance) Director (Technical) Director

Shri. Manoj Sethi Dr. Anjula Murmu Shri. M. Chandran Shri. Keda Tanaji Aher
Director Director Director Director
 CORPORATE INFORMATION
BOARD OF DIRECTORS CHIEF VIGILANCE OFFICER
Shri. S.C. Mudgerikar Dr. Soorya Thankappan, IPS
Chairman & Managing Director
Shri. Anupam Misra
Director (Marketing) EXECUTIVE DIRECTOR
Shri. S. Sakthimani
Director (Finance) Shri. Manikkuttan R.
Dr. Jayachandran K. Production Co-ordination
Director (Technical)
Ms. Aparna S. Sharma
Govt. Nominee Director CHIEF GENERAL MANAGERS
Shri. Manoj Sethi Shri. Mohanchandran M.
Govt. Nominee Director Cochin Division
Dr. Anjula Murmu
Independent Director
Shri. Jayaraj K. B.
FEDO & FEW
Shri. M. Chandran
Independent Director Shri. Dileep R.
Shri. Keda Tanaji Aher Udyogamandal Complex
Independent Director
Shri. Kishor Rungta
Chairman & Managing Director (Upto 01.02.2024) COMPANY SECRETARY
Shri. Taranjit Singh Ms. Susan Abraham
Govt. Nominee Director (From 14.08.2023 to
06.12.2023)

AUDITORS
Statutory Auditors Secretarial Auditors Cost Auditors
M/s. G. Venugopal Kamath & Co M/s. CaesarPintoJohn & Associates, M/s. BBS & Associates
Chartered Accountants, Kochi Company Secretaries, Kochi Cost Accountants, Kochi

Branch Auditors
M/s. Shanker Giri & Prabhakar M/s. CKS Associates
Chartered Accountants, Chennai Chartered Accountants, Hyderabad

REGISTRAR & SHARE TRANSFER AGENTS REGISTERED OFFICE : ISIN:

Purva Sharegistry India Pvt Ltd, Eloor, Udyogamandal - 683 501 INE188A01015
9 Shiv Shakti Ind. Estt, J R Boricha Marg, Kochi, Kerala, India CIN:
Lower Parel (East), Ph.: 0484 - 2546486 L24129KL1943GO1000371
Mumbai, Maharashtra - 400 011 Fax : 0484 - 2546637 STOCK EXCHANGE :
Tel: 2301 2518 /2301 6761 Website : www.fact.co.in National Stock Exchange of India Ltd.
Email: [email protected] E-mail : [email protected]

BANKERS
State Bank of India | Bank of Baroda | Bank of India | Canara Bank
Annual Report 2023 - 24

Message CHAIRMAN'S

Dear Shareholders,
th
I am pleased to present the 80 Annual Report of FACT for the
financial year 2023-24, highlighting the Company's physical
and financial performance.
I would like to begin by expressing my heartfelt gratitude to
each of you for your unwavering support and investment in
FACT. Your steadfast confidence in us drives our pursuit of
new milestones and achievements.
PERFORMANCE OVERVIEW
The financial year 2023-24 was challenging for the fertilizer
industry, marked by volatility in the international market and
unfavorable climatic conditions. Despite these obstacles,
FACT achieved a turnover of Rs.5054.93 crore and a profit of Rs.147.17 crore. Your Board has recommended a Final
Dividend of Rs. 0.97 per equity share.
FACT demonstrated resilience with impressive production levels, achieving 10.70 lakh MT of fertilizer production in
2023-24, including 8,27,717 MT of Factamphos and 2,42,577 MT of Ammonium Sulphate. We also produced 34,662
MT of Caprolactam.
Total sales across all fertiliser products reached 11.76 lakh MT for 2023-24, reflecting an 18% growth compared to the
previous year's sales of 9.96 lakh MT, despite adverse climatic conditions and stiff competition. FACT achieved sales
of 8,21,012 MT of Factamphos, 2,22,353 MT of Ammonium Sulphate, 34,841 MT of Caprolactam, and 1,06,906 MT of
imported fertilizers.
The highly competitive product pricing, rise in cost of raw materialsand the revised Nutrient Based Subsidy (NBS)
rates have impacted revenue. Additionally, adjustments for NBS revisions, recovery of profits and naphtha
compensation,of prior years, were accounted for in 2023-24.
FACT successfully implemented various government programs, including PMKSK, PM-PRANAM, PM-Mahila Kisan
Drone Kendra, Viksit BharatSankalpYatra, and the Community Radio Program.
Expansion and Market Development
As part of our market expansion and territory reorganization efforts, new zones have been established in Andhra
Pradesh, Telangana, and Odisha. Additionally, operations have commenced in Maharashtra.
Our Engineering and Consultancy Divisions continue to undertake and implement both internal and external projects,
adding further value to FACT's performance.

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 Annual Report 2023 - 24

ECONOMIC SCENARIO
India, the world's second-largest consumer of fertilizer after China, plays a crucial role in the global agricultural
economy. The fertilizer industry is essential for the production of key agricultural inputs.
The Indian fertilizer industry is on a robust growth trajectory, projected to reach a market size of Rs.1.38 lakh crore by
2032, with a Compound Annual Growth Rate (CAGR) of 4.2% from 2024 to 2032.
Government initiatives, such as direct income support schemes from both central and state governments, have
enhanced farmer liquidity, leading to increased investment in fertilizers. Geopolitical factors have influenced India's
fertilizer market, prompting the government to prioritize domestic production of nano urea and nano DAP to reduce
dependency on imports.
FERTILIZER SECTOR
The rising consumption of resources underscores the need to enhance agricultural productivity to meet the growing
global demand for food. The fertilizer sector in India is integral to the agricultural industry, responsible for producing and
distributing fertilizers essential for crop growth and soil fertility.
MARKET CAPITALIZATION
FACT's robust performance has resulted in a market capitalization exceeding Rs. 70,000 Crore recently, reflecting the
Company's strong presence in the market. Our stock price has outperformed the sector, showcasing our potential for
growth in the fertilizer industry.
FUTURE OUTLOOK
FACT is well-positioned for continued success in delivering consistent and sustainable growth. We firmly believe that
reinforcing our core business is pivotal for ensuring the long-term sustainability of FACT. Our business can expand
beyond its traditional market through added production, product diversification, improved quality, customer service
and deeper customer connect, underscoring our commitment to sustainable growth and positioning ourselves as a
leader in emerging growth areas. Toward this end, FACT is implementing various schemes.
The Company plans to increase fertilizer trading activities this year.
In addition to thelong term RLNG supply agreement with Indian Oil Corporation Ltd., we have been able to reliably
source Sulphur and Benzene from domestic suppliers.
With the establishment of a 1650 TPD NPK plant and the implementation of various CAPEX projects which are in the
pipeline, your Company is expected to increase fertilizer production from 10 lakh MT to 15 lakh MT per annum,
significantly boosting turnover and profit.
Our R&D efforts are focused on developing new fertilizer formulations to drive future growth.
CORPORATE GOVERNANCE
FACT consistently strives for transparency in all business activities, adopting the best procedures and policies. We are
committed to adhering to Corporate Governance standards in their true spirit, with the Board of Directors dedicated to
maintaining transparent business practices that enhance stakeholder value. Accordingly, FACT has consistently been
rated as 'Excellent' for compliance with the DPE Guidelines on corporate governance.

4
Annual Report 2023 - 24

FACT is also dedicated to complying with the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, on corporate governance, as well as the Corporate Governance guidelines for Central Public
Sector Enterprises issued by the Department of Public Enterprises, Government of India.
The Company prioritizes ensuring clean air and a better living environment for the communities surrounding our
plant areas. The safety and well-being of our employees are also of utmost importance. We continuously provide
training for all categories of employees to ensure their development and contribution to the stable growth of FACT.
CORPORATE SOCIAL RESPONSIBILITY
As a responsible corporate citizen, FACT prioritizes social responsibility and developmental initiatives in
collaboration with the public administration in surrounding areas. CSR Fund ofRs. 1,662.46 Lakh was spent
during the year for CSR activities across various projects, primarily focusing on Rural development, Women
empowerment, Health and Nutrition, Promotion of Education, and Sanitation. As part of our Swachhata drive,
cleanliness initiatives were conducted to ensure a healthy and hygienic environment. FACT also engaged in
various Government initiatives for modernising farming. FACT is also actively involved in educating farmers on
the balanced use of fertilizers for sustainable development and livelihood enhancement.
CHALLENGES & OPPORTUNITIES
The year 2023-24 posed significant challenges for the fertilizer industry, characterized by international market
volatility and adverse climatic conditions. All major fertilizer inputs are being imported, and the prices remain
highly volatile.
FACT has a robust infrastructure, including a dedicated berth for importing raw materials and facilities for the
transportation of fertilizer inputs via road and waterways. FACT also has an extensive market network in South
India, with about 5,500 dealers. There is potential for expansion into other states, diversification into
manufacturing other fertilizer grades, and venturing into the production and trading of various chemicals.
ACKNOWLEDGMENTS
On behalf of the Board of Directors, I wish to express my sincere gratitude to you, our esteemed shareholders, for
your ongoing support and trust. Your confidence motivates us to excel in all our endeavors and consistently create
value for both you and the nation.
I am also grateful for the unwavering support and invaluable guidance provided by various departments of the
Government of India, particularly the Department of Fertilisers, Ministry of Chemicals and Fertilisers, and the
Government of Kerala. My sincere thanks extend to our employees, Officers' Forums, Trade Unions, Auditors,
Consumers, Suppliers, Bankers and all other stakeholders for their continued cooperation.

Place: Udyogamandal (S. C. Mudgerikar)

Date: 22.08.2024 Chairman & Managing Director

5
 Annual Report 2023 - 24

Former CMD FACT Shri. Kishor Rungta handing over the Dividend Cheque of Rs.58 Cr to
Hon'ble Minister of Chemicals & Fertilizers Shri. Mansukh Mandaviya in the presence of
Secretary Fertilizer Shri. Rajat Kumar Mishra.

Dr. Jayachandran K., Director (Technical) receiving the

Special Business Award from Cochin Port Authority for
Largest Multi Commodity Bulk User 2023-24

Dr. Jayachandran K., Director (Technical)

receiving National Energy Conservation
Award 2023-24

6
Annual Report 2023 - 24

Inauguration of the Liquid Cargo Unloading Facility at Q9, Cochin Port

First ‘Phosphoric Acid Ship’ unloading from Q9 berth

7
 Annual Report 2023 - 24

CONTENTS
Sl. No. Description Page No.

1. Notice 09

2. Directors Report 21

3. Secretarial Audit Report 34

4. Report on Corporate Governance 43

5. CFO/CEO Certification 58

6. Management Discussion and Analysis Report 63

7. Business Responsibility & Sustainability Report 71

8. Independent Auditor’s Report on the Financial Statements (Standalone) 115

9. Annexures to Auditors’ Report 123

10. Comments of C&AG of India on Standalone Financial Statements 133

11. Standalone Balance Sheet as at 31st March 2024 134

12. Standalone Statement of Profit and Loss for the year ended 31st March 2024 136

13. Standalone Cash Flow Statement for the year ended 31st March 2024 137

14. Notes Forming Part of the Standalone Financial Statements 140

15. Independent Auditor’s Report on Consolidated Financial Statements 210

16. Annexures to Auditors’ Report on Consolidated Financial Statements 218

17. Comments of C&AG of India on Consolidated Financial Statements 220

18. Consolidated Balance Sheet as at 31st March 2024 223

19. Consolidated Statement of Profit and Loss for the year ended 31st March 2024 225

20. Consolidated Cash Flow Statement for the year ended 31st March 2024 226

21. Notes Forming Part of the Consolidated Financial Statements 229

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Annual Report 2023 - 24

THE FERTILISERS AND

CHEMICALS TRAVANCORE LIMITED
Registered Office: Eloor, Udyogamandal – 683 501, Kochi, Kerala
CIN: L24129KL1943GOI000371
Ph. 0484-2546486
Website : www.fact.co.in E-mail id: [email protected]

NOTICE TO MEMBERS
th
NOTICE is hereby given that the 80 Annual General Meeting of The Fertilisers and Chemicals Travancore
th
Limited will be held on Friday the 27 September 2024, at 11.00 A.M., through Video Conferencing (“VC”) /
Other Audio Visual Means (“OAVM”) to transact the following business:
Ordinary Business
1. To receive, consider and adopt (a) the Audited Standalone Financial Statements of the Company for
st
the Financial Year ended 31 March, 2024, and Reports of the Board of Directors and Auditors thereon;
and (b) the Audited Consolidated Financial Statements of the Company for the Financial Year ended
31stMarch, 2024 and Report of Auditors thereon and in this regard pass the following resolutions, as
Ordinary Resolutions.
(a) RESOLVED THAT the Audited Standalone Financial Statements of the Company for the
st
Financial Year ended 31 March, 2024 and the reports of the Board of Directors and Auditors
thereon be and are hereby considered, approved and adopted.
(b) FURTHER RESOLVED THAT the Audited Consolidated Financial Statements of the Company
st
for the Financial Year ended 31 March, 2024 and the report of the Auditors thereon be and are
hereby considered, approved and adopted.
2. To declare the Final Dividend of Re. 0.97 per equity share for the Financial Year 2023-24.
RESOLVED THAT a final dividend of Re. 0.97 (Ninety-seven paise) per share aggregating to Rs.
62,76,59,815 (Rupees Sixty Two Crore Seventy Six Lakh Fifty Nine Thousand Eight Hundred and
Fifteen Only) on equity share capital of the Company for the year ended on 31stMarch 2024, as
recommended by the Board, be and is hereby declared.
3. To fix the remuneration of Statutory Auditors and Branch Auditors for the Financial Year 2024-25 and in
this regard, pass the following resolution as an Ordinary Resolution.
RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to fix
remuneration of the Statutory Auditors and Branch Auditors appointed by the Comptroller and Auditor
General of India for the Financial Year 2024-25.
4. To appoint Ms. Aparna S. Sharma, Director (DIN: 07798544) who retires by rotation at this Annual
General Meeting and being eligible offers herself for re-appointment and in this regard, pass the
following resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of section 152 (6) (e) of the Companies Act, 2013, Ms.
Aparna S Sharma, Director (DIN: 07798544), Joint Secretary, Department of Fertilizers, Ministry of
Chemicals and Fertilizers, New Delhi, be and is hereby reappointed as a Director of the Company.

9
 Notice to Shareholders

Special Business
5. To appoint Shri. Manoj Sethi (DIN: 00301439), as a Director on the Board of Directors of
the Company.
The Company has received notice in terms of Section 160 (1) of the Companies Act, 2013
proposing to appoint Shri.Manoj Sethi (DIN:00301439) as a Director of the Company at this
Annual General Meeting.
Members may consider and if thought fit, pass with or without modification(s), the following
resolution as an Ordinary Resolution.
RESOLVED THAT pursuant to the provisions of Section 160 and other applicable provisions of
the Companies Act, 2013 and the Rules made thereunder read with Articles of Association of
the Company, Shri.Manoj Sethi (DIN: 00301439), Joint Secretary and Financial Advisor,
Department of Fertilizers, Ministry of Chemicals and Fertilizers, New Delhi, be and is hereby
appointed as a Director of the Company.
6. Remuneration to Cost Auditors
To consider and if thought fit, pass with or without modification(s), the following resolution as an
Ordinary Resolution.
RESOLVED THAT in accordance with the provisions of Section 148 and other applicable
provisions of the Companies Act 2013 and the Companies (Audit and Auditors) Rules 2014, the
Cost Auditors appointed by the Board of Directors of the Company to conduct the Audit of the
cost records of the Company for the Financial Year 2024-25 be paid the remuneration of Rs.
85,000/- plus out of pocket expenses (subject to a maximum of Rs. 10,000/-).

By Order of the Board of Directors

Sd/-
Susan Abraham
Company Secretary
M No. F6067
Place : Udyogamandal
Date : 04.09.2024

Registered Office:
Eloor, Udyogamandal – 683 501,
Kochi, Kerala
Ph. 0484-2546486
Website: www.fact.co.in
E-mail ID: [email protected]

10
Annual Report 2023 - 24

Notes:
1. The Ministry of Corporate Affairs (“MCA”) vide its General Circular No. 09/2023 dated September 25,
2023 and Circular No SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/167 dated October 7, 2023 issued by
SEBI (hereinafter collectively referred to as “the Circulars”) and all other relevant Circulars issued
from time to time, permitted the holding of the Annual General Meeting (“AGM”) through Video
Conferencing (“VC”)/ Other Audio Visual Means (“OAVM”), without the physical presence of the
Members at a common venue. In compliance with the provisions of the Companies Act, 2013, MCA
Circulars, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
th
Regulations, 2015 (“SEBI Listing Regulations”) and SEBI Circulars, the 80 AGM of the Company is
being held through VC/ OAVM. The Corporate Office of the Company shall be deemed to be the venue
for the AGM.
2. The relative explanatory statement required under Section 102 of the Companies Act, 2013 is given
separately and relevant details regarding the Directors who are proposed to be appointed/re-
appointed, as required under Regulation 36(3) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard on General
Meetings (“SS-2”) issued by the Institute of Company Secretaries of India, is annexed to this Notice.
E-voting & Meeting
3. As per the provisions of the Companies Act 2013, a member entitled to attend and vote at the AGM is
entitled to appoint a proxy to attend and vote on his / her behalf and the proxy need not be a member of
the Company. Since this AGM is being held in accordance with the Circulars through VC/OAVM, the
facility for the appointment of proxies by the members will not be available. However, in pursuance of
Section 112 and Section 113 of the Companies Act, 2013, representatives of the members such as
the President of India or the Governor of a State or body corporate can attend the AGM through
VC/OAVM and cast their votes through e-voting.
4. Annual Report for the year 2023-24 including the Audited Financial Statements for the year ended
March 31, 2024, is being sent by e-mail to those Members whose e-mail addresses are registered
with Company's RTA/ Depository Participants (DP). Members may note that the Notice and Annual
Report 2023-24 will also be available on the Company's website www.fact.co.in, website of the Stock
Exchange i.e., National Stock Exchange of India Limited at www.nseindia.com and on the website of
CDSL www.evotingindia.com.
5. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the
Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI
(Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and MCA Circulars
dated April 08, 2020, April 13, 2020 and May 05, 2020 the Company is providing facility of remote e-
voting to its Members in respect of the business to be transacted at the AGM. For this purpose, the
Company has entered into an agreement with Central Depository Services (India) Limited (CDSL) for
facilitating voting through electronic means, as the authorized e-voting agency. The facility of casting
votes by a member using remote e-voting as well as the e-voting system on the date of the AGM will
be provided by CDSL.
6. The Members can join the AGM in the VC/OAVM mode 30 minutes before the scheduled time of the
commencement of the meeting. The link of the meeting shall be kept open throughout the
proceedings of the AGM. The facility of participation at the AGM through VC/OAVM will be made
available to at least 1000 members on first come first served basis by following the procedure
mentioned in the notice.
7. The attendance of the Members attending the AGM through VC/OAVM will be counted for the
purpose of ascertaining the quorum under Section 103 of the Companies Act, 2013.

11
 Notice to Shareholders

Dividend
th
8. The Board of Directors of the Company at their meeting held on 16 May 2024 has recommended a
final dividend of Re.0.97 per equity share for the Financial Year 2023-24. The Company has fixed Friday
th
the 20 September, 2024 as the 'Record Date' for determining entitlement of members to receive final
dividend, for the year ended March 31 2024, if approved at the AGM. The final Dividend, if approved by
the members in the AGM, subject to deduction of tax at source, will be paid on or before 26thOctober
2024.
9. The dividend will be paid through electronic mode to those members whose bank account details are
available. Members who hold physical shares may provide updated bank details by submitting a hard
copy of the duly signed form ISR-1 along with relevant documents mentioned therein to Registrar and
th
Transfer Agent (RTA) on or before 20 September 2024. The said form is available on
https://fact.co.in/home/Dynamicpages?MenuId=2950
10. Pursuant to SEBI Master Circular no. SEBI/HO/MIRSD/ POD-1/P/CIR/2024/37 dated May 7, 2024
issued to the Registrar and Transfer Agents and SEBI Circular no. SEBI/ HO/MIRSD/POD-
1/P/CIR/2023/181 dated November 17, 2023, as amended; SEBI has mandated that, with effect from
April 1, 2024, dividend to the security holders holding shares in physical mode shall be paid only
through electronic mode. Such payment to the eligible members holding physical shares shall be
made only after they have furnished their PAN, Contact Details (Postal Address with PIN and Mobile
Number), Bank Account Details, Specimen Signature, etc., for their corresponding physical folios with
the Company or RTA on or before 20th September 2024.
11. Members are requested to intimate changes, if any, pertaining to their name, postal address, e-mail
address, telephone/mobile numbers, Permanent Account Number (PAN), mandates, nominations,
power of attorney, bank details such as name of the bank and branch details, bank account number,
MICR code, IFSC etc.
For shares held in demat mode: To their DPs.
For shares held in physical mode: To Purva Sharegistry India Pvt Ltd, Company's RTA, in the
prescribed Form ISR-1. The said form is available at https://fact.co.in/home/Dynamicpages?
MenuId=2950 .
12. Members may note that the Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates
that dividend paid or distributed by a Company is taxable in the hands of members. The Company shall
therefore be required to deduct tax at source(“TDS”) at the time of making the payment of dividend.
Members are requested to submit the relevant documents to determine the applicable TDS rate, on or
before Friday the 20thSeptember, 2024. Kindly note that no documents in respect of TDS would be
accepted from members after Friday the 20th September, 2024. The applicable TDS provisions in
accordance with the provisions of the Income Tax Act, 1961, for various categories, including
Resident or Non Resident members are on the Company's website, https://fact.co.in/.
13. Relevant documents referred to in the Notice are open for inspection by the members at the
Registered Office of the Company on all working days (i.e., except Sundays and Public Holidays)
during business hours up to the date of the Meeting.Members seeking to inspect such documents are
requested to write to the Company at [email protected].
14. Members,who have not registered their e-mail IDs so far, are requested to register their e-mail IDs for
receiving all communications from the Company electronically.
15. As per Regulation 40 of SEBI Listing Regulations, as amended, securities of listed companies can be
transferred only in dematerialized form with effect from, April 1, 2019. Further Transmission /
Transposition of securities shall be effected only in dematerialized form. In view of this and to
eliminate all risks associated with physical shares and for ease of portfolio management, members
holding shares in physical form are requested to consider converting their holdings to dematerialized
form. Members can contact Company's Registrar and Share Transfer Agents (RTA), Purva Sharegistry
India Pvt. Ltd,for assistance in this regard. Address of RTA is as follows:

12
Annual Report 2023 - 24

Purva Sharegistry India Pvt Ltd,

9 Shiv Shakti Ind. Estt, J R Boricha Marg,
Lower Parel (East),
Mumbai 400 011
Email: [email protected]
16. As per the provisions of Section 72 of the Companies Act, 2013, the facility for making nomination is
available to the Members in respect of the shares held by them. Members who have not yet
registered their nomination are requested to register the same by submitting Form No. SH-13
prescribed under Rule 19 of the Companies (Share Capital and Debentures) Rules, 2014. If a Member
desires to cancel the earlier nomination and record a fresh nomination, he/ she may submit the same
in Form No. SH-14 prescribed under Rule 19 of the Companies (Share Capital and Debentures) Rules,
2014. On request, the necessary forms can be obtained from the Company's RTA, Purva Sharegistry
India Pvt Ltd. Members are requested to submit the said details to their DP in case the shares are held
in demat mode and to Purva Sharegistry India Pvt Ltd in case the shares are held in physical mode.
The relevant forms are available on the company's website at https://fact.co.in/home/Dynamicpages?
MenuId=2950
17. In case of joint holders, the Member whose name appears as the first holder in the order of names as
per the Register of Members of the Company will be entitled to vote at the AGM.
Book Closure
th th
18. The e-voting period begins on 24 September 2024 at 09.00 AM and ends on 26 September 2024 at
05.00 PM. During this period members of the Company, holding shares either in physical form or in
th
dematerialized form, as on the Record Date (cut-off date) of 20 September 2024 may cast their vote
electronically. The e-voting module shall be disabled by CDSL for voting thereafter.The right of e-
voting shall be reckoned as on the cut-off date. A person who is not a member as on the cut-off date is
requested to treat this Notice for information purposes only.
19. The Board of Directors of the Company has appointed Shri Vivek Kumar, Practising Company
Secretary, Door No. 52/2066, 2nd Floor, Tharayathu, Valiyaparambil Road (Lane 14), Janatha Road,
Vyttila, Ernakulam - 682019 as Scrutiniser to scrutinise the remote e-voting in a fair and transparent
manner.
20. Institutional / Corporate Members (i.e. other than individuals / HUF, NRI, etc.) are required to send a
scanned copy (PDF/JPG Format) of its Board or governing body Resolution / Authorization etc.,
authorizing its representative to attend the AGM through VC / OAVM on its behalf and to vote through
remote e-voting. The said Resolution / Authorization shall be sent to the Scrutinizer by email
[email protected].
21. Members who vote prior to the meeting date through remote e-voting, would not be entitled to vote at
the meeting.
22. The Scrutinizer will submit his report to the Chairman of the Company or to any other person
authorized by the Chairman, after the completion of the scrutiny of the e-voting (votes cast during the
AGM and votes cast through remote e-voting), not later than 48 hours from the conclusion of the
AGM. The result declared along with the Scrutinizer's report shall be communicated to the stock
exchange, CDSL and RTA, and will also be displayed on the Company's website, https://fact.co.in/
23. Any person who acquires shares of the company and becomes a member after the Notice is sent as of
th
the cut-off date i.e., 20 September 2024, may obtain the login ID and password by sending a request
at www.evotingindia.com.

13
 Notice to Shareholders

THE INSTRUCTIONS FOR SHAREHOLDERS FOR E-VOTING AND JOINING VIRTUAL MEETINGS ARE
AS UNDER:
Step 1 : Access through Depositories CDSL/NSDL e-Voting system in case of individual members
holding shares in demat mode.
(i) In terms of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on e-
Voting facility provided by Listed Companies, Individual members holding securities in demat mode
are allowed to vote through their demat account maintained with Depositories and Depository
Participants. Members are advised to update their mobile number and email ID in their demat
accounts in order to access e-Voting facility.
Pursuant to above mentioned SEBI Circular, Login method for e-Voting and joining virtual meetings for
Individual members holding securities in Demat mode CDSL/NSDL is given below:

Type of members Login Method

Individual members 1) Users who have opted for CDSL Easi / Easiest facility, can login through their
holding securities in existing user id and password. Option will be made available to reach e-
Demat mode with CDSL Voting page without any further authentication. The users to login to Easi /
Depository Easiest are requested to visit cdsl website www.cdslindia.com and click on
login icon & New System Myeasi Tab.
2) After successful login the Easi / Easiest user will be able to see the e-Voting
option for eligible companies where the evoting is in progress as per the
information provided by company. On clicking the evoting option, the user
will be able to see e-Voting page of the e-Voting service provider for casting
the vote during the remote e-Voting period or joining virtual meeting & voting
during the meeting. Additionally, there are also links provided to access the
system of all e-Voting Service Providers, so that the user can visit the e-
Voting service providers' website directly.
3) If the user is not registered for Easi/Easiest, option to register is available at
cdsl website www.cdslindia.com and click on login & New System Myeasi
Tab and then click on registration option.
4) Alternatively, the user can directly access e-Voting page by providing Demat
Account Number and PAN No. from a e-Voting link available on
www.cdslindia.com home page. The system will authenticate the user by
sending OTP on registered Mobile & Email as recorded in the Demat
Account. After successful authentication, user will be able to see the e-
Voting option where the evoting is in progress and also able to directly
access the system of all e-Voting Service Providers.
Individual members 1) If the users are already registered for NSDL IDeAS facility, please visit the e-
holding securities in Services website of NSDL. Open web browser by typing the following URL:
demat mode with NSDL https://eservices.nsdl.com either on a Personal Computer or on a mobile.
Depository Once the home page of e-Services is launched, click on the “Beneficial
Owner” icon under “Login” which is available under 'IDeAS' section. A new
screen will open. The user will have to enter theuser ID and Password. After
successful authentication, will be able to see e-Voting services. Click on
“Access to e-Voting” under e-Voting services and the user will be able to see
e-Voting page. Click on company name or e-Voting service provider name
and the user will be re-directed to e-Voting service provider website for
casting the vote during the remote e-Voting period or joining virtual meeting
& voting during the meeting.

14
Annual Report 2023 - 24

Type of shareholders Login Method

2) If the user is not registered for IDeAS e-Services, option to register is

available at https://eservices.nsdl.com. Select “Register Online for IDeAS
“Portal or click at https://eservices.nsdl.com/SecureWeb/ Ideas
DirectReg.jsp
3) Visit the e-Voting website of NSDL. Open web browser by typing the
following URL: https://www.evoting.nsdl.com/ either on a Personal
Computer or on a mobile. Once the home page of e-Voting system is
launched, click on the icon “Login” which is available under
'Member/Member' section. A new screen will open. The user will have to
enter the User ID (i.e. sixteen digit demat account number hold with NSDL),
Password/OTP and a Verification Code as shown on the screen. After
successful authentication, the user will be redirected to NSDL Depository
site wherein the user can see e-Voting page. Click on company name or e-
Voting service provider name and the user will be redirected to e-Voting
service provider website for casting the vote during the remote e-Voting
period or joining virtual meeting & voting during the meeting.
Individual members The user can also login using the login credentials of demat account through the
(holding securities in Depository Participant registered with NSDL/CDSL for e-Voting facility. After
demat mode) login Successful login, the user will be able to see e-Voting option. Once the user click
on e-Voting option, the user will be redirected to NSDL/CDSL Depository site
through their Depository after successful authentication, wherein the user can see e-Voting feature. Click
Participants (DP) on company name or e-Voting service provider name and the user will be
redirected to e-Voting service provider website for casting the vote during the
remote e-Voting period or joining virtual meeting & voting during the meeting.

Helpdesk for Individual members holding securities in demat mode for any technical issues related
to login through Depository i.e. CDSL and NSDL

Login type Helpdesk details

Individual members Members facing any technical issue in login can contact CDSL helpdesk by
holding securities in sending a request at [email protected] or contact at toll free no.
Demat mode with CDSL 1800 22 55 33
Individual members Members facing any technical issue in login can contact NSDL helpdesk by
holding securities in sending a request at [email protected] or call at : 022 - 4886 7000 and 022 - 2499
Demat mode with NSDL 7000

Step 2 : Access through CDSL e-Voting system in case of members holding shares in physical mode
and non-individual members in demat mode.
(ii) Login method for e-Voting and joining virtual meetings for Physical members and members
other than individual holding in Demat form.
1) The members should log on to the e-voting website www.evotingindia.com.
2) Click on “Members” module.
3) Now enter the User ID
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
c. Members holding shares in Physical Form should enter Folio Number registered with
the Company.

15
 Notice to Shareholders

4) Next enter the Image Verification as displayed and Click on Login.

5) If the users are holding shares in demat form and had logged on to www.evotingindia.com
and voted on an earlier e-voting of any company, then the existing password is to be used.
6) If the users are a first-time user follow the steps given below:
For Physical members and non-individual members
holding shares in Demat.
PAN Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department
(Applicable for both demat members as well as physical members)
l Members who have not updated their PAN with the Company/Depository
Participant are requested to use the sequence number sent by
Company/RTA or contact Company/RTA.
Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as
Dividend Bank Details
recorded in your demat account or in the company records in order to login.
l If both the details are not recorded with the depository or company, please
OR Date of Birth (DOB) enter the member ID / folio number in the Dividend Bank details field.

(iii) After entering these details appropriately, click on “SUBMIT” tab.

(iv) Members holding shares in physical form will then directly reach the Company selection screen.
However, members holding shares in demat form will now reach 'Password Creation' menu wherein
users are required to mandatorily enter the login password in the new password field. Kindly note that
this password is to be also used by the demat holders for voting for resolutions of any other company
on which the users are eligible to vote, provided that company opts for e-voting through CDSL
platform. It is strongly recommended not to share the password with any other person and take
utmost care to keep the password confidential.
(v) For members holding shares in physical form, the details can be used only for e-voting on the
resolutions contained in this Notice.
(vi) Click on the EVSN for <The Fertilisers and Chemicals Travancore Limited> on which the user
chooses to vote.
(vii) On the voting page, the user will see “RESOLUTION DESCRIPTION” and against the same the option
“YES / NO” for voting. Select the option YES or NO as desired. The option YES implies assent to the
Resolution and option NO implies dissent to the Resolution.
(viii) Click on the “RESOLUTIONS FILE LINK” if the user wishes to view the entire Resolution details.
(ix) After selecting the resolution to vote on, click 'SUBMIT.' A confirmation box will appear. If you want to
confirm your vote, click 'OK.' To modify your vote, click 'CANCEL' and make the necessary changes
(x) Once the user “CONFIRM” the vote on the resolution, user will not be allowed to modify the vote.
(xi) The user can also take a print of the votes cast by clicking on “Click here to print” option on the Voting
page.
(xii) If a demat account holder has forgotten the login password then Enter the User ID and the image
verification code and click on Forgot Password & enter the details as prompted by the system.
(xiii) There is also an optional provision to upload Board Resolution/Power of Attorney if any uploaded,
which will be made available to scrutinizer for verification.

16
Annual Report 2023 - 24

(xiv) Additional Facility for Non – Individual Members and Custodians –For Remote Voting only.
l Non-Individual members (i.e. other than Individuals, HUF, NRI etc.) and Custodians may also log
on to www.evotingindia.com and register themselves in the “Corporates” module.
l A scanned copy of the Registration Form bearing the stamp and sign of the entity should be
emailed to [email protected].
l After receiving the login details a Compliance User should be created using the admin login and
password. The Compliance User would be able to link the account(s) for which they wish to vote
on.
l The list of accounts linked in the login will be mapped automatically & can be delinked in case of
any wrong mapping.
l It is Mandatory that, a scanned copy of the Board Resolution and Power of Attorney (POA) issued
in favour of the Custodian, if any, should be uploaded in PDF format in the system for the
scrutinizer to verify the same.
l Alternatively, Non-Individual members may also send the relevant Board Resolution/ Authority
letter etc. together with attested specimen signature of the duly authorized signatory who are
authorized to vote, to the Scrutinizer and to the Company at the email address viz;
[email protected] or [email protected], if they have voted from individual tab &
not uploaded same in the CDSL e-voting system for the scrutinizer to verify the same.
INSTRUCTIONS FOR MEMBERS ATTENDING THE AGM THROUGH VC/OAVM & E-VOTING DURING
MEETING ARE AS UNDER:
1. The procedure for attending meeting & e-Voting on the day of the AGM is same as the instructions
mentioned above for e-voting.
2. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be
displayed after successful login as per the instructions mentioned above for e-voting.
3. Members who have voted through Remote e-Voting will be eligible to attend the meeting. However,
they will not be eligible to vote at the AGM.
4. Members are encouraged to join the Meeting through Laptops / iPads for better experience.
5. Further members will be required to allow Camera and use Internet with a good speed to avoid any
disturbance during the meeting.
6. Please note that participants connecting from Mobile Devices or Tablets or through Laptop connecting
via Mobile Hotspot may experience Audio/Video loss due to fluctuation in their respective network. It is
therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid
glitches.
7. Members who would like to express their views/ask questions during the meeting may register
themselves as a speaker by sending their request on or before 22nd September, 2024, mentioning their
name, demat account number/folio number, email id, mobile number at [email protected].
Members seeking any information with regard to the accounts or any matter to be considered at the
AGM, are requested to write to the Company on or before 22nd September, mentioning their name,
demat account number/folio number, email id, mobile number at [email protected]. The same
will be replied by the Company suitably by email.
8. Only those members who have registered themselves as a speaker will be allowed to express their
views/ask questions during the meeting.
9. Only those members, who are present in the AGM through VC/OAVM facility and have not casted their
vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be
eligible to vote through e-Voting system available during the AGM.

17
 Notice to Shareholders

10. If any Votes are cast by the members through the e-voting available during the AGM and if the same
members have not participated in the meeting through VC/OAVM facility, then the votes cast by such
members may be considered invalid as the facility of e-voting during the meeting is available only to the
members attending the meeting.
PROCESS FOR THOSE MEMBERS WHOSE EMAIL/MOBILE NO. ARE NOT REGISTERED WITH THE
COMPANY/DEPOSITORIES.
1. For Physical members- please provide necessary details like Folio No., Name of member, scanned
copy of the share certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAR
(self-attested scanned copy of Aadhar Card) by email to Company/RTA email id i.e.
[email protected] or [email protected]
2. For Demat members - Please update the email id & mobile no. with the respective Depository
Participant (DP)
3. For Individual Demat members – Please update the email id & mobile no. with the respective
Depository Participant (DP) which is mandatory while e-Voting & joining virtual meetings through
Depository.
If you have any queries or issues regarding attending AGM & e-Voting from the CDSL e-Voting
System, you can send an email to [email protected] or contact at toll free no. 1800
225533.
All grievances connected with the facility for voting by electronic means may be addressed to:
Mr. Rakesh Dalvi, Sr. Manager, (CDSL),
Central Depository Services (India) Limited,
A Wing, 25th Floor, Marathon Futurex,
Mafatlal Mill Compounds,
N M Joshi Marg,
Lower Parel (East), Mumbai - 400013
Or send an email to [email protected]. Or contact at toll free no. 1800 225533
Explanatory Statement Under Section 102 of the Companies Act, 2013 in respect of the Special
Business to be transacted at the Meeting.
Item No. 5
As per Article 80 of the Articles of Association of the Company, the President of India shall have the right to
nominate directors on the Board of Directors of the Company. Government of India, Ministry of Chemicals &
Fertilisers, Department of Fertilisers, vide Order No.95/1/2019-HR PSU dated 06-12-2023,notified the
appointment of Shri. Manoj Sethi (DIN: 00301439), Joint Secretary and Financial Advisor, Department of
Fertilizers, Ministry of Chemicals and Fertilisers, New Delhi, as part-time Government Nominee Director on
the Board of Directors of FACT. Shri.Manoj Sethi was appointed as an Additional Director on the Board of
th
Directors of FACT on 14-12-2023. He will hold office till the conclusion of the 80 Annual General Meeting of
the Company.
Notice has been received under section 160 of the Companies Act 2013, proposing the candidature of Shri.
Manoj Sethi as Director.He will be liable to retire by rotation. Shri.Manoj Sethi is not disqualified from being
appointed as a Director in terms of Section 164 of the Companies Act,2013,and has given his consent to act
as a Director.
Except Shri.Manoj Sethi, to whom the resolution relates, no Director, Key Managerial Personnel of the
Company or their relatives, is concerned or interested, in the resolution.
Details of Shri.Manoj Sethi whose appointment is proposed at item No. 5 are provided in the Annexure to

18
Annual Report 2023 - 24

the Notice pursuant to the provisions of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company
Secretaries of India.
The Board of Directors recommends the Ordinary Resolution set out as item no 5 ofthe Notice for approval
of members.
Item 6
The Board has approved the appointment of M/s BBS & Associates, Cost Accountants, Cochin, as Cost
Auditors to conduct the audit of cost accounts of the Company for the Financial Year 2024-25 on a
remuneration of Rs. 85,000/- (Rs 65000/- for Cost Audit of Fertilisers and Rs. 20,000/- for Cost Audit of
Caprolactam) plus out of pocket expenses (subject to a maximum of Rs. 10,000/-). As per Rule 14 of
Companies (Audit and Auditors) Rules, 2014 read with Section 148(3) of the Companies Act 2013, the
remuneration approved by the Board of Directors has to be ratified subsequently by the members.
Accordingly, the consent of the members is sought through an ordinary resolution for ratification of
remuneration payable to the Cost Auditors for the Financial Year 2024-25.
No Director / Key Managerial Personnel / Relatives of Directors and Key Managerial Personnel are
interested in the resolution.
The Board of Directors recommends the Ordinary Resolution set out as item 6 of the Notice for approval
of members.

19
 Notice to Shareholders

Annexure to the Notice dated 04.09.2024

Details of Directors seeking appointment at the ensuing Annual General Meeting:
Name Ms Aparna S Sharma Shri. Manoj Sethi

Age 56 56

Qualifications Central Secretariat Service (CSS), MA Indian Civil Accounts Service

(English)
Experience/ Brief See Website See Website
Resume https://fact.co.in/home/Dynamicpages?Menu https://fact.co.in/home/Dynamicpages?Me
Id=4 nuId=4
Terms & Conditions As per GOI Order No.95/1/2019-HR-PSU As per GOI Order No. 95/1/2019-HR PSU
of Appointment dated 01-09-2020, Ms. Aparna S Sharma dated 06-12-2023, Shri. Manoj Sethi was
was appointed as a part time Government appointed as a part time Government
Nominee Director Nominee Director
Skills and Please refer to the details on Skills/ Please refer to the details on Skills/
Capabilities required Expertise/ Competencies of the Board of Expertise/ Competencies of the Board of
for the role and the Directors in the Report on Corporate Directors in the Report on Corporate
manner in which the Governance Governance
proposed person
meets such
requirements
Remuneration NIL NIL

Date of First 30-09-2020 14-12-2023

Appointment on the
Board
Shareholding in the NIL NIL
Company as on 31st
March, 2024
Relationship / Other Not related to other Directors / Key Not related to other Directors / Key
Directors/ Key Managerial Personnel Managerial Personnel
Managerial
Personnel
No. of Meetings of FY 2023-24: 3 out of 4 meetings held FY 2023-24: 1 out of 1 meeting held after
the Board attended FY 2024-25 (till the date of this Notice): his appointment
during the year 2 out of 2 meetings held FY 2024-25 (till the date of this Notice): 1
out of 2 meetings held
Directorship of other NIL Yes - Hindustan Organic Chemicals Ltd
Boards as on 31st
March, 2024

Membership/ NIL NIL

Chairmanship of
Committees of other
Boards as on 31st
March, 2024
Listed entities from One - Rashtriya Chemicals and Fertilizers NIL
which the Director Limited
has resigned from
Directorship in the
past three years

20
Annual Report 2023 - 24

DIRECTORS' REPORT
Dear Members,
th
Your Directors have pleasure in presenting the 80 Annual Report on the performance of the Company,
together with the Audited Standalone and Consolidated Financial Statements for the financial year ended
st
31 March, 2024.
Your Directors are happy to inform you that during the financial year 2023-24, the Company has maintained
the production, and sales at almost the same level as the previous year.
The Financial year 2023-24 was a challenging year for the fertilizer industry as a whole, with volatility in the
international market and unfavorable climatic conditions. The revised Nutrient Based Subsidy (NBS) rates,
considering the time gap, were not commensurate with the cost of raw materials. Prices of the products
also came down, affecting the realization of the products. Recoveries towards NBS revisions, unreasonable
profit and naphtha compensation of prior years had to be accounted for during 2023-24. In spite of these
challenges FACT managed to book a profit of `146.17 Cr.on a turnover ` 5054.93 Cr.
Based on Market Capitalization, as on March 31, 2024, your Company is one among the top 500 listed
Companies.
Performance Highlights;
l Net profit of `146.17 Cr.
l Turnover ` 5054.93 Cr.
l Total Fertilizer production 10.70 Lakh MT.
l Caprolactam Production 34,662 MT.
l Sale of 1175574 MT Fertilisers.
l Sale of 34,841 MT Caprolactam.
l New Sulphuric Acid storage tank at Cochin Division and the reconstruction of the South Coal Berth
at Willingdon Island commissioned successfully.
l Ranked 179thamong the listed companies in terms of Market Capitalization as on 31.03.2024.
l Received the MKK Nayar Productivity Award 2023 for the Best Productivity Performance in the
category of Very Large Industries.
l Best Hindi Implementation & OL Magazine Awards from TOLIC (PSU), Kochi.
1. Financial Results (Standalone)
Financial Results of the Company for the year ended March 31, 2024 is summarized below: ` in crore
Particulars 2023-24 2022-23
Net Sales 5054.93 6198.15
Other Income 203.12 135.57
Total Revenue 5258.05 6333.72
Total Expenses 4968.96 5720.73
Profit before Exceptional Items and Tax 289.09 612.99
Exceptional Items -245.59 0
Earnings before interest, depreciation and Taxes (EBIDTA) 562.59 890.48
Interest 246.93 247.54
Depreciation 26.57 30.11
Deferred Tax -102.67 0
Profit for the year 146.17 612.83
Other comprehensive Income 20.54 -1.11
Total Comprehensive Income 166.72 611.72

21
 Directors’ Report

Dividend Distribution Policy

In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations 2015, the Board of Directors of the Company (the Board) has formulated and
adopted the Dividend Distribution Policy. The policy is hosted on the website of the Company at the link
https://fact.co.in/home/Dynamicpages?MenuId=914
Dividend
For the Financial Year 2023-24, the Board has recommended a Dividend of ` 0.97/- (ninety-seven paise) per
equity share of face value of Rs.10/- each. The Board has recommended dividend based on the parameters
laid down in the Dividend Distribution Policy. The dividend will be paid out of the profits for the year 2023-24.
The Dividend on equity shares is subject to the approval of shareholders at the Annual General Meeting
scheduled to be held on 27th September 2024.
Based on the number of equity shares, as on date of this report, the dividend, if approved would result in a
cash outflow of ` 62.76 Cr.
Transfer to Reserves
The Board of Directors has decided to retain the entire amount of profit in the profit and loss account. No
amount has been transferred to reserves for the financial year 2023-24.
Operations and Performance
Production
Production 2023-24 (in MT) 2022-23 (in MT)
Factamfos 827717 828195
Ammonium Sulphate 242577 244732
Caprolactam 34662 44754
Excellent production with more than 100% capacity utilisation could be achieved and FACT once again
produced more than one million tonnes of fertilisers.
Marketing
Sale 2023-24 (In Lakh MT) 2022-23 (In Lakh MT)
Factamfos 8.21 7.43
Ammonium Sulphate 2.22 2.20
Caprolactam 0.35 0.44
The Company has also started selling the new products like PDM / PROM / Nano UREA / Nano DAP. The
company also appointed stock point dealers in Karnataka, Andhra Pradesh and Telangana for the first time
which will improve Godown facility / wide spread availability of stocks for the dealers / farmers.
The company recorded total sales of all products at 11.76 lakhs MT for the year 2023-24, marking an 18%
growth compared to previous year’s sales of 9.96 lakh MT in spite of adverse climatic conditions and stiff
competition.
Memorandum of Understanding with Government of India
Your Company has been entering into a Memorandum of Understanding (MoU) with the Department of
Fertilizers, Ministry of Chemicals and Fertilizers, Government of India, setting the performance parameters
and targets every year. Company has secured ‘Good’ rating for the MoU for the year 2022-23. The
evaluation of MoU performance for 2023-24 has not been finalized.
The MoU for 2024-25 is under finalization by the Govt. of India.

22
Annual Report 2023 - 24

Management Discussion and Analysis Report

Management Discussion and Analysis Report covering the operational aspects for the year under review, as
stipulated under SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) is
presented in a separate section forming part of Directors’ Report.
Roadmap for sustainability / Capital Projects
The Union Cabinet accorded approval in 2019-20 for CAPEX worth Rs. 608 crore to implement essential
capital jobs for enhancing the reliability of production plants, complying with changing statutory
requirements and setting up of additional raw material storage tanks and plant. Critical renovation and
modernizing schemes for debottlenecking raw material and product handling facilities also form part of
CAPEX.
The CAPEX projects of Ammonia barge, sulphuric acid tanks and South coal berth reconstruction and Q9-
Q10 connectivity have been completed. Other schemes are under various stages of implementation. With
the commissioning of the new NP plant, the fertilizer production capacity of the company will increase by
over 5 Lakh MT per annum.
FACT is in the process of commissioning / implementing various CAPEX projects to enhance the production
capacity and the sustainable growth of the Company in the long run.
Details of major projects, completed at the end of 2023-24 and the status of projects which are in progress
are summarized below;
l The new ammonia barge, Pearl of Periyar, for transporting Ammonia between production divisions
and Cochin Port through inland waterways was commissioned in November 2022.
l The reconstruction of South Coal Berth at Cochin Port for import of Ammonia under Sagar Mala
scheme was completed in March 2023.
l Two additional Sulphuric Acid storage tanks (5000 MT capacity) at Cochin Division were
commissioned in April 2023.
l New pipe lines for unloading Sulphuric Acid and Phosphoric Acid from Q9 Berth of Cochin Port was
commissioned in January 2024.
l The civil works for the 1650 MTPD NP plant at CD is progressing. The equipments started arriving at
site.
l Construction of 10000 MT Ammonia storage tank at Cochin Division completed and pre-
commissioning activities are progressing.
l Construction of two Phosphoric Acid storage tanks (5900 MT each) at Willingdon Island –Civil and
Mechanical works are progressing.
Sustainable Development
Your Company is giving priority on implementing several sustainable development activities. The Petro
plants which was being operated on Captive Power supply, was switched to Grid supply from 03.02.2023
onwards. This has led to savings in RLNG consumption for captive power generation.
Industrial Relations
During the financial year 2023-2024, cordial industrial relations were maintained across all Divisions of the
Company.
The managerial personnel were paid Performance Related Pay in December 2023. Enhancement of age of
retirement of below Board level employees from 58 to 60 years was implemented as approved by
Department of Fertilizers, Government of India.

23
 Directors’ Report

Corporate Governance
The Company is committed to maintain the highest standards of Corporate Governance and adhere to the
Corporate Governance requirements set out by SEBI and the guidelines on Corporate Governance issued
by the Department of Public Enterprises, Government of India. The Board lays emphasis on transparency
and accountability for the benefit of all stakeholders of the Company. The Report on Corporate Governance
as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, annexed
to this report, forms an integral part of this report.
Business Responsibility and Sustainability Report
In accordance with Regulations 34(2)(f) of the SEBI Listing Regulations, the Securities and Exchange Board
of India (SEBI), in May 2021 introduced new sustainability related reporting requirements to be reported in
the specific format of Business Responsibility and Sustainability Report (BRSR). BRSR is a significant step
towards giving platform to the Companies to report the initiative taken by them in the areas of environment,
social and governance. SEBI has mandated top 1000 Listed Companies, based on market capitalisation to
publish BRSR from financial year 2022-23 onwards. Accordingly, your directors are glad to present the
BRSR report of FACT for the financial year 2023-24 and it is part of the Annual Report of the Company.
Consolidated Financial Statements
The Consolidated Financial Statements of the Company for the financial year ended March 31, 2024,
prepared in accordance with Section 129(3) of the Companies Act 2013 and relevant accounting standards
form part of the Annual Report.
The Consolidated Financial Statements have been prepared under equity method along with Company’s
Standalone Financial Statements.
Material changes and commitment
There were no material changes and commitments affecting the financial position of the Company between
st
the end of financial year (31 March, 2024) and the date of the report. Similarly, there was no change in the
nature of business of the Company during the financial year 2023-24.
Associate / JV Company
FACT-RCF Building Products Limited (FRBL) is a joint venture (JV) company of FACT.CIRP has been initiated
in respect of FRBL w.e.f 11.01.2024.Kerala Enviro Infrastructure Limited (KEIL) has ceased to be an
Associate Company of FACT. In accordance with the provisions of Section 129(3) of the Companies Act,
2013, a statement containing salient features of the financial statements of the associate company / joint
ventures in Form AOC-1 is provided as part of the Annual Report.
Report on financial position and Performance of Joint Venture
During the financial year 2023-24, the financial results of FRBL shows a net loss of ` 263.24 Lakhs. Due to
the accumulated loss, the entire net worth of FRBL has been eroded. FACT has created provisions for the
entire investment made in FRBL.
ISO Certification
All fertilizer plants in Udyogamandal Complex and Cochin Division are certified for ISO 14001:2015 and ISO
9001:2015. FACT Cochin Division is certified for ISO 45001:2018. FACT Udyogamandal Division is certified
for ISO 50001:2018.
Pollution Control Activities
FACT prioritizes ensuring clean air and a better living environment for the inhabitants in and around the
factory.

24
Annual Report 2023 - 24

The effluent treatment plant and emission control facilities run year-round. The treated effluents and gas
emissions released from the plants meet the standards set by the Central Pollution Control Board and the
Kerala State Pollution Control Board.
As per directions from Central Pollution Control Board (CPCB) & Kerala State Pollution Control Board
(KSPCB), continuous online monitoring and web uploading are in progress. All analyzers as per guidelines
have been installed and the parameters are uploaded in KSPCB & CPCB websites. Caprolactam plant was
continuously online during the Financial Year 2023-24.
The Company could maintain all effluent parameters within limits as specified by the statutory authorities.
As per an agreement between FACT and Kerala Enviro Infrastructure Limited (KEIL), the accumulated stock
of hazardous wastes viz., spent V2O5 catalysts, ETP sludge,Sulphur Muck and E-waste were sent to KEIL
for final disposal.
Scheme for solid waste management is being implemented by providing separate Bin for metal scraps, bio
degradable and non-bio degradable wastes. Solid waste is collected and further segregated at designated
facility.
As per directions from Central Pollution Control Board (CPCB) & Kerala State Pollution Control Board
(KSPCB) requirement, emission and effluent data in respect of the following are being uploaded to the
website of KSPCB & CPCB.
l SO2 emission from Sulphuric Acid plant stack
l Ammonia, Fluoride and particulate matter emission from complex fertilizer plant stack
l Fluoride and particulate matter emission from Phosphoric Acid plant stack.
l pH, Fluoride, Ammoniacal Nitrogen and flow of effluent outlet.
Official Language
FACT continued to give top priority for the propagation and implementation of the Official Language Policy
of the Ministry of Home Affairs, Govt. of India from time to time. The Quarterly Meetings of Official
Language Implementation Committee is regularly held under the chairmanship of Chairman & Managing
Director to review the progressive use of Hindi in Official work.
Workshops,competitions/programmes, Seminar and Hindi Fortnight celebrations were organised during
the year.The Company provides incentives to the employees to promote official work in Hindi.
FACT was awarded second prize for its excellent work in the field of Official Language Implementation in
the “Hindi Advisory Committee” meeting held at New Delhi on 30 May 2023 under the Chairmanship of the
Hon’ble Minister of Chemicals and Fertilisers.
FACT was awarded First Prize for Home Magazine Rashtravani and also awarded Rajyabhasha Shield –
second prize for its commendable work in the field of Official Language Hindi during the year 2022-23 by
Kochi TOLIC (PSU).
Public procurement policy of Micro and Small Enterprises (MSEs) Order 2012
Company is giving priority to Micro and Small Enterprises for procurement as per directives issued by the
Government of India from time to time.
During the Financial Year 2023-2024, the Company procured material & services worth ` 335.27 Cr (66.74%
of total procurement other than feed stocks & fertilizers) from MSEs. Out of which ` 0.35 Cr (0.07%of total
procurement) is from MSEs owned by SC/ST entrepreneurs and ` 13.71 Crore (2.73% of total procurement)
is from women entrepreneurs. Most of the feed stocks and Fertiliser inputs procured by FACT are not
available with the MSEs.

25
 Directors’ Report

During the Financial Year 2023-24 FACT has participated in one vendor development programme organized
by MSME Development and Facilitation Office, Thrissur.
FACT is registered with TReDs platform of Receivable Exchange of India Limited (RXIL) a joint venture by
SIDBI and NSE for providing bill discounting facilities to MSMEs.
Directors and Key Managerial Personnel
Appointments
The Department of Fertilizers, vide Order No. 95/1/2019-HR PSU (pt.2) dated 06thDecember 2023 notified
the appointment of Shri. Manoj Sethi (DIN:00301439) as Part-time Government nominee director, on the
Board of Directors of FACT.
Government of India, Ministry of Chemicals & Fertilizers, Department of Fertilizers, vide Order No.
nd
86/2/2017-HR-I (Part) dated 22 February, 2024 notified the appointment of Shri. S. C. Mudgerikar
(DIN:03498837) as Chairman and Managing Director on the Board of Directors of FACT.
Retirements and Resignations
Shri Kishor Rungta (DIN:00231106), Chairman and Managing Director ceased to be a Director of the
st
Company with effect from 01 February, 2024, on completion of his term of appointment.
The Board extends its utmost appreciation for the invaluable services rendered by Shri Kishor Rungta during
his tenure as CMD. Under his exemplary leadership, the Company achieved unprecedented milestones in
production, sales, turnover, profits, and market capitalization.
In accordance with the order from the Government of India, Ministry of Chemicals & Fertilizers, Department
of Fertilizers, Shri Taranjit Singh ceased to be the Government Nominee Director on the Board of the
Company effective 7th December 2023.
The Board expresses its gratitude for the contributions made by Shri Taranjit Singh during his tenure as
Director of the Company.
Reappointment of Independent Directors
During the financial year 2023-24, no Independent Director was reappointed on the Board of the Company
as per section 149 (10) of the Companies Act 2013.
Disqualification of Directors
None of the Directors has incurred any disqualification as provided under section 164 of the Companies Act
2013.
Key Managerial Personnel
In terms of Section 203 of the Act, the Key Managerial Personnel of your company are:
st
a) Shri. Kishor Rungta, Chairman and Managing Director until 01 February 2024;
nd
b) Shri. S. C. Mudgerikar, Chairman and Managing Director w.e.f 22 February 2024;
c) Shri Anupam Misra, Director (Marketing)
d) Shri. S. Sakthimani, Chief Financial Officer & Director (Finance);
e) Dr. K Jayachandran, Director (Technical)
f) Ms. Susan Abraham, Company Secretary.
Annual Evaluation of Board.
FACT being a Government Company, all appointments on the Board is made by the Government of India,
Ministry of Chemicals and Fertilizers, Department of Fertilizers. The performance of Directors is evaluated
by the Ministry of Chemicals & Fertilizers, Department of Fertilizers, Government of India. As per

26
Annual Report 2023 - 24

th
Government of India, Ministry of Corporate Affairs notification dated 5 June 2015, clause (e) and (p) of sub-
section 3 of Section 134 of the Companies Act 2013 relating to appointment, remuneration and Annual
evaluation of the performance of the Board is not applicable to FACT.
However, the independent directors in a meeting held on 26.03.2024 reviewed the performance of non-
independent directors, reviewed the Board as a whole and assessed the quality, quantity and timeliness of
flow of information between the Company management and the Board and reviewed the performance of
the Chairperson of the companyas per Regulation 25(4) of SEBI (LODR) Regulations.
Independent Directors’ Declaration
The independent directors made declaration of independence under sub-section (6) of Section 149 of
Companies Act, 2013 during the financial year 2023-24. In the opinion of the Board there has been no
change in the circumstances affecting their status as independent directors of the company and the Board
is satisfied of the integrity, expertise and experience of all Independent Directors on the Board. Further
based on the declaration received from directors, the Board confirms, that the Independent Directors fulfill
the conditions.
Meetings of the Board
During the financial year 2023-24,four (4) meetings of the Board were convened and held. The details of the
meetings of the Board of Directors are given in the report on Corporate Governance, which is part of this
report. The intervening gap between the meetings was within the limit prescribed under the Companies
Act 2013.
Secretarial Standards
Your Directors state that applicable Secretarial Standards i.e. SS-1 and SS-2 relating to “Meetings of the
Board of Directors” and “General Meetings” respectively, have been followed by the Company.
AUDITORS
(1) Statutory Auditors and Statutory Auditor’s Report
M/s. G.Venugopal Kamath & Co., Chartered Accountants, Kochi, was appointed as Statutory Auditors of the
Company for the financial year 2023-24 by the Comptroller and Auditor General of India.
M/s Shanker Giri & Prabhakar, Chartered Accountants, Chennai, was appointed as Branch Auditors for the
year 2023-24, for the Area / Regional Offices at Tamil Nadu and Kerala, by the Comptroller and Auditor
General of India.
M/s CKS Associates, Chartered Accountants, Hyderabad, was appointed as Branch Auditors for the year
2023-24 for the Area / Regional Offices at Andhra Pradesh, Telangana and Karnataka States by the
Comptroller and Auditor General of India.
Statutory Auditors has not made any qualification or adverse remarks on the Financial Statements for the
financial year 2023-24.
(2) Cost Audit
As prescribed under section 148 of the Companies Act ,2013, read with the Companies (Cost Report and
Audit) Rules 2014, cost accounting records are being maintained by the Company. M/s BBS & Associates,
Cost Accountants, Kochi has been appointed as Cost Auditors of the Company for the year 2023-24. Cost
Audit report for the financial year 2022-23 was filed with Ministry of Corporate Affairs on 06thOctober 2023.
(3) Secretarial Audit
M/s CaesarPintoJohn & Associates, Company Secretaries, Kochi, has been appointed as Secretarial
Auditors of the Company for the year 2023-24. The report of the Secretarial Auditor is annexed to this report

27
 Directors’ Report

as Annexure-2. The Secretarial Auditor has made the following observations in their Secretarial Audit
Report.
During the financial year from 01.04.2023 to 31.03.2024, half of the Board of directors of the Company does
not comprise of Independent Directors. Two Third of the members of the Audit Committee does not
comprise of Independent Directors from 26/05/2023 to 05/07/2023. All the members of the Nomination and
Remuneration Committee are not non-executive directors and comprise of only one Independent Director
from 26/05/2023 to 05/07/2023
Explanation on observations made by Secretarial Auditors in their report is given below;
FACT is a Central Public Sector Undertaking (PSU). The appointment of all Board members at FACT is based
on nominations made by the Department of Fertilizers, under the Ministry of Chemicals & Fertilizers,
Government of India. During the interim period between the conclusion of the term of one Independent
Director and the appointment of new Independent Directors, requisite number of Independent Directors
were not available to constitute the Audit Committee and Nomination & Remuneration Committee as
stipulated by the SEBI (LODR) Regulations, 2015.
Audit Committee
In line with the provisions of Section 177 of the Companies Act 2013 and SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 an Audit Committee of the Board has been constituted.
Details of Members/ Meetings of the Audit Committee are elaborated in the report on Corporate
Governance annexed here with.There were no instances in which the Board has not accepted any
recommendation of the Audit Committee.
Public Deposit
During the financial year 2023-24, the Company has not accepted any deposit from public.
Investor Education and Protection Fund (IEPF)
During the year 2023-24 no amount is required to be transferred to Investor Education and Protection Fund
and therefore FACT has not transferred any amount to Investor Education and Protection Fund. No amount
is pending for transfer to IEPF.
Contract or arrangement with related parties
The transactions entered into with related parties for the year under review were on arms’ length basis and
in the ordinary course of business. The disclosure in form No AOC-2 for the transactions with related parties
during the period under review is enclosed as Annexure -3.
Corporate Social Responsibility
FACT continued to give priority on various Social Responsibility measures during the financial year 2023-24.
The Company has constituted a Board level Committee as per the provisions of Companies (Corporate
Social Responsibility Policy) Rules 2014. Annual Report on CSR as per the provisions of Companies
(Corporate Social Responsibility Policy) Rules 2014 is annexed to this report as Annexure-4.
Risk Management
FACT has formulated a risk management policy for identification of potential area of risk and mitigation of
the same. FACT is having adequate risk management infrastructure in place, capable of addressing all
potential risks.
Vigil Mechanism & Whistle Blower Policy
FACT is having a vigil mechanism for directors and employees to report their concerns. The Directors and
employees can approach Chairman, Audit Committee of the Board directly and report their concern in

28
Annual Report 2023 - 24

appropriate case. The vigil mechanism and whistle blower policy is published in the web site of the
Company www.fact.co.in . and can be download using the link https://fact.co.in/home/
Dynamicpages?MenuId=45
Code of Conduct
FACT is having a code of conduct known as FACT Code of business Conduct and Ethics applicable to the
members on the Board and all senior executives of the Company. The code has been posted on the
Company’s website www.fact.co.in and can be download using the link https://fact.co.in/home/
Dynamicpages?MenuId=2959
The code lays down the standard procedure of business conduct which is expected to be followed by the
Directors and senior executives of the Company. It also includes the duties of Independent Directors as laid
down in the Companies Act, 2013.
The Board members and Senior Executives of the Company have affirmed compliance of the code of
Conduct for the financial year 2023-24.
Prevention of Insider Trading
There have been no reported instances of insider trading involving FACT shares to date. A Code of Conduct
on the Prohibition of Insider Trading is available on the Company’s website and can be accessed via the
following link: https://fact.co.in/home/Dynamicpages?MenuId=849.
Particulars of Loan given, Investment made, Guarantees given and Securities provided
Particulars of Investment made by the Company are provided in the financial statement for the year 2023-
24.
During the financial year 2023-24, FACT has not provided any loan/guarantee or made any investment within
the purview of Section 186 of the Companies Act 2013.
Internal Controls & their Adequacy
The Internal Control systems are reviewed by the Audit Committee. The Company being a Government
owned company is subject to Audit by C&AG. The adequacy of Internal Control procedures is also reviewed
by the Statutory Auditors in their Audit Report.
The Company’s internal control systems commensurate with the nature of its business, the size, and
complexity of its operations and such internal financial controls with reference to the Financial Statements
are adequate. Details on the Internal Financial Controls of the Company forms part of Management
Discussion and Analysis forming part of this Integrated Report 2023-24.
Particulars of Employees and related disclosures
During the year under review, none of the employees of the Company had drawn remuneration in excess of
the limit prescribed under section 134(3)(c) of the Companies Act, 2013 read with Companies (Appointment
of Managerial Personnel) Rules 2014.
As per the notification dated 05th June, 2015 issued by the Ministry of Corporate Affairs, Government of
India, section 197 of the Companies Act, 2013 is not applicable to a Government Company.
Vigilance
Vigilance department in FACT is an integral part of the management function and plays a crucial role in
ensuring transparency, integrity and accountability within the organization.The primary objective of the
vigilance department in FACT is to prevent corruption, misconduct, fraud and abuse of power thereby
upholding the public trust and promoting good governance.
The work profile of Vigilance department includes handling of complaints, investigation of verifiable
complaints having vigilance angle, surprise inspections, regular surveillance and intelligence gathering,

29
 Directors’ Report

scrutiny of procurement/contract files, scrutiny of property returns of employees, monitoring the rotation of
staff in sensitive areas, coordination with CVC and other Government Departments.
During the financial year 2023-2024, as per the directives of the Central Vigilance Commission (CVC), the
th th
week from October 30 to 5 November 2023 was observed as the Vigilance Awareness Week, with the
theme “Say No to Corruption; Commit to the Nation”.
Integrity Pact
An Integrity Pact in line with Government of India guidelines in this regard has been finalised and
implemented in the Company.
The Right to Information Act 2005
FACT is complying the provisions of the Right to Information Act 2005 and the details relating to Public
Information Officer, Assistant Public Information officer, Appellate Authority, Nodal officer etc. are
published on the website of the Company www.fact.co.in and can be download using the link
https://fact.co.in/home/Dynamicpages?MenuId=472
Annual Return
The Annual Return of the Company as provided under Sub section (3) of Section 92 of Companies Act,
2013,is published on the website of the Company, https://fact.co.in/home/Dynamicpages?MenuId=41
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Information regarding the conservation of energy, technology absorption, and foreign exchange earnings
and-outgo as required to be disclosed in terms of the Companies (Accounts) Rules 2014 is set out in a
separate statement as Annexure-1.
Director’s Responsibility Statement
Pursuant to Section 134(3)(c) of the Companies Act, 2013, your Directors hereby state that:
(a) in the preparation of annual accounts for the year ended March 31, 2024, the applicable accounting
standards had been followed along with proper explanation relating to material departures.
(b) the directors have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at March 31, 2024 and of profit and loss statement for the year ended
March 31, 2024.
(c) the directors have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of this Act, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
(d) the directors have prepared the annual accounts on a going concern basis.
(e) the directors have laid down internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating effectively; and
(f) the directors have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.

30
Annual Report 2023 - 24

General
The Board of Directors state that no disclosure or reporting is required in respect of the following items as
there were no transactions on these items during the year under review.
1. Details relating to deposits covered under Chapter V of the Act.
2. Issue of equity shares with differential rights as to dividend, voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the company under any scheme.
4. The Company does not have any scheme of provision of money for the purchase of its own shares by
employees or by trustees for the benefit of employees.
5. Neither the Managing Director nor the whole time Directors of the Company receive any remuneration
or commission from its Associate Company.
6. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the
going concern status and Company’s operations in future.
7. No fraud has been reported by the auditors to the Audit Committee or to the Board.
8. There was no application made or proceeding pending against the Company under the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) during the year under review.
9. The Company has not made any one-time settlement for the loans taken from the Banks or Financial
Institutions.
Acknowledgement
Your Directors gratefully acknowledge the valuable guidance and support extended by Hon’ble Minister of
Chemicals and Fertilisers, Hon’ble Minister of State for Chemicals and Fertilisers, Hon’ble Chief Minister,
Government of Kerala, the Secretary, Ministry of Chemicals and Fertilisers and other officials of the Ministry
of Chemicals and Fertilisers as well as other Ministries of the Government of India, Department of Public
Enterprises and the State Governments of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana,
Bihar, Odisha, Maharashtra ,West Bengal and Union Territory of Puducherry.
The Directors deeply appreciate the committed efforts put in by the employees and look forward to their
dedicated services and endeavor in the years ahead to enable the Company to scale greater heights.
The Directors also acknowledge the continued support extended by the Shareholders, Dealers, Suppliers,
Bankers, Valued Customers and Auditors of the Company, the Press and Electronic Media.

For and on behalf of the Board of Directors.

(S.C. Mudgerikar)
Place : Udyogamandal Chairman and Managing Director
Date: 03.09.2024 DIN-03498837

31
 Annexure to Directors’ Report

Annexure 1

‘Annexure to Directors’ Report

Particulars Required under Rule 8 (3) of Companies (Accounts) Rules 2014

A. Conservation of Energy.
Steps taken or impact on conservation of energy.
1. Replacement of splash fills of 1 to 5 cells of Main cooling tower in Ammonia plant
Splash fills of 5 cells were renewed in August 2023 for improving the effectiveness of cooling
tower.
2. Overhauling of critical turbo machineries in Ammonia plant including 6MW turbo
generator and steam turbine of synthesis gas compressor resulting in a decrease in steam
consumption and thus an improvement in SEC (Specific Energy Consumption)
3. Utilization of by-product steam from acid plant in Petro plants
By-product steam from acid plant was utilized in Petro plants, thereby reducing the RLNG
consumption in boilers.
4. Replacement of HPSV / HPMV / MH type Street lights / Flood Light fittings and fluorescent
Tubes with energy efficient LED luminaries was made during the year, and it has resulted
energy saving of 260 units of electricity per day
B. Technology Absorption
i. Efforts made
1. Installed Diesel Generator set at Petrochemical plants for emergency power.
2. Replacement of the 3.3 kV panel substation at FACT Cochin Division
3. FACT signed a MoU with Oil India Limited at Noida to explore & collaborate in the domain of Green
Hydrogen, Green Ammonia / Green Methanol and other derivatives
4. The bagging section of Ammonium Sulphate Plant at Udyogamandal Complex was renovated and
commissioned in Jan 2024
ii. Benefits derived
1. With the installation of Diesel Generator set, Petrochemical plants are now operational on grid
power.
2. By renovating the Ammonium Sulphate Plant at Udyogamandal Complex facilitates loading
higher capacity trucks and uninterrupted operation of bagging units. Also, the existing capacity of
the Ammonium Sulphate Plant was enhanced by another 100 MTPD by in-house modifications
iii. Imported technology
No technology has been imported during the Financial Year 2023-2024.
iv. The major activities of Research & Development (R&D)
a. Feasibility study on formulation of insecticidal Organic fertiliser:
Formulations of insecticides combined with fertilizers are desirable in agricultural due to the
multiple benefits conveyed via single application system. Such formulations provide nutrients for
the plant growth, while eliminating or controlling unwanted insects that affect the health and
vitality of the desirable plants.
R&D is conducting feasibility studies to formulate Insecticidal Fertilizer.

32
Annual Report 2023 - 24

b. Water soluble fertilizer:

Conventional fertilizers cannot fulfil the nutrient requirement of the crops and hence the alternate
solution for the crops is Water Soluble Fertilizers (WSF). Studies at lab scale for WSF have been
found favorable for scale-up & commercialization. Arrangements to extend lab-scale preparation
to pilot scale are in-progress.
c. Quality Control Cell:
Research & Development Centre is monitoring the quality of finished chemical fertilizers both in
manufacturing units and field godowns, distributors and dealers for evaluating the quality as per
the direction of Ministry of Agriculture, Government of India. Testing & Certification of Rock
Phosphate and Single Super Phosphate samples in connection with Technical audit of SSP
Manufacturing Units. Analysis and reporting of Bulk density of raw materials/finished
products/phosphogypsum as part of Annual physical stock verification.
The expenditure incurred on R&D was Rs. 57.63 Lakh

C. Foreign Exchange Earnings and Outgo

Details of foreign exchange earnings and outgo are given below.

Foreign Exchange Earnings and Outgo Rs. in Crore

Current Year Previous Year

1 Foreign Exchange Earned 0 0

2 Foreign Exchange Outgo
(i) CIF value of Imports
(a) Raw Materials 1382.64 1695.83
(b) Traded Products 338.99 0.00
(c) Spares and Other materials 2.46 1.63
(d) Capital Goods 0.23 0.00
1724.32 1697.47
(ii) Expenditure in Foreign Currency (Cash Basis)
(a) Consultancy Services 0.85 0.02
(b) Others 0.41 0.39
1.26 0.41

Total (i + ii) 1725.59 1697.87

(S.C. Mudgerikar)
Place : Udyogamandal Chairman and Managing Director
Date: 03.09.2024 DIN-03498837

33
 Secretarial Audit Report

Annexure 2
CaesarPintoJohn & Associates LLP
Regd. Office: F4, First Floor, Lspace, Logic Square, VIP Road, Near JLN Stadium Metro Station, Kaloor, Ernakulam, Kerala 682 017
Ph.: +91 9497274805, +91 9846949009 | E-mail : [email protected] | www. cpjcompanysecretaries.com

Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31.03.2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014]

To
The Members
The Fertilisers and Chemicals Travancore Limited
Eloor P. O., Udyogmandal
Alwaye, Ernakulam
Kerala - 683501
We, CaesarPintoJohn & Associates LLP, Company Secretaries have conducted the secretarial audit of the
compliance of applicable statutory provisions and the adherence to good corporate practices by THE
FERTILISERS AND CHEMICALS TRAVANCORE LIMITED [CIN: L24129KL1943GOI000371] (hereinafter
called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for
evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the books, papers, minute books, forms and returns filed and other records
maintained by the Company and also the information provided by the Company, its officers, agents and
authorized representatives during the conduct of secretarial audit, the explanations and clarifications given to
us and the representations made by the Management and considering the relaxations granted by the
Ministry of Corporate Affairs and Securities and Exchange Board of India warranted due to the spread of the
COVID-19 pandemic, we hereby report that in our opinion, the Company has, during the audit period covering
the financial year ended on 31.03.2024 complied with the statutory provisions listed hereunder and also that
the Company has proper Board processes and compliance mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained
by the Company for the financial year ended on 31st March, 2024 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent
of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings, to
the extent applicable;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India
Act, 1992 ('SEBI Act'):-

34
Annual Report 2023 - 24

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;
(d) The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018;
(e) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015;
(vi) As informed to us, the following other laws are specifically applicable to the Company.
1. Fertiliser (Control) Order, 1985;
2. The Manufacture, Storage and Import of Hazardous Chemical Rules, 1989;
3. Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008;
4. The Batteries (Management and Handling) Rules, 2001;
5. The Industries(Development and Regulation) Act, 1951 and the Regulations and Bye-laws
framed thereunder;
6. The Water (Prevention and Control of Pollution) Act 1974 and the Regulations and Bye-laws
framed there under;
7. The Air (Prevention and Control of Pollution) Act, 1981 and the Regulations and Bye-laws framed
there under;
8. The Environment (Protection) Act, 1986 and the Regulations and Bye-laws framed there under;
9. The Factories Act,1948 and the Regulations and Bye-laws framed there under;
10. The Boilers Act, 1923 and the Regulations and Bye-laws framed thereunder;
11. Guidelines on Corporate Governance for Central Public Sector Enterprises, 2010;
We have also examined compliance with the applicable clauses of the following:
(I) Secretarial Standards relating to Board (SS 1) and General Meetings (SS 2) issued by The
Institute of Company Secretaries of India;
(ii) The Listing Agreement entered into by the Company with National Stock Exchange of India
Limited;
During the period under review the Company has complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards etc. mentioned above,subject to reporting made herein.
In respect of other laws specifically applicable to the Company we have relied on information / records
produced by the Company during the course of our audit and the reporting is limited to that extent.
We further report that:
The Board of Directors of the Company comprises of Executive and Non-Executive Directors. As per
Regulation 17 (1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, where the listed entity does not have a regular non-executive
chairperson, at least half of the board of directors shall comprise of independent directors. During the
financial year from 01.04.2023 to 31.03.2024, half of the Board of directors of the Company does not
comprise of Independent Directors.Two Third of the members of the Audit Committee does not comprise
of Independent Directors from 26/05/2023 to 05/07/2023.

35
 Secretarial Audit Report

All the members of the Nomination and Remuneration Committee are not non-executive directors and
comprise of only one Independent Director from 26/05/2023 to 05/07/2023.
The changes in the composition of the Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act and in compliance with orders issued by the
Central Government.
Adequate notices were given to all directors to schedule the Board Meetings, Agenda and detailed notes on
agenda were sent at least seven days in advance and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation at
the meeting.
All decisions of the board were unanimous and the same was captured and recorded as part of the minutes.
We further report that, as represented by the Management and relied upon by us, there are adequate
systems and processes in the Company commensurate with size and operations of the Company to
monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report thatduring the audit period there were no instances of:
(I) Public /Right /Preferential issue of shares / debentures/ sweat equity
(ii) Redemption /buy-back of securities
(iii) Major decisions taken by the members in pursuance to section 180 of the Companies Act, 2013
(iv) Merger /amalgamation /reconstruction, etc.
(v) Foreign technical collaborations
This Report is to be read with our letter of even date which is annexed as 'Annexure A' and forms an integral
part of this report.
UDIN: A024204F000960141
Peer Review Certificate No.2148 /2022

For CaesarPintoJohn& Associates LLP

Company Secretaries
Sd/-
Tracy Tulassne Caesar
Partner
M.No: 24204
CP No: 15855
Kochi
13.08.2024

36
Annual Report 2023 - 24

‘Annexure A'
To
The Members
The Fertilisers and Chemicals Travancore Limited
Eloor P. O., Udyogmandal
Alwaye, Ernakulam
Kerala - 683501

Our report of even date is to be read along with this letter.

1. Maintenance of the Secretarial records is the responsibility of the management of the Company. Our
responsibility as Secretarial Auditors is to express an opinion on these records, based on our audit.
2. During the audit, we have followed the practices and process as were appropriate, to obtain
reasonable assurance about the correctness of the contents of the Secretarial records. We believe
that the process and practices we followed provide a reasonable basis for our report.
3. The correctness and appropriateness of financial records and Books of Accounts of the Company have
not been verified.
4. Where ever required, we have obtained the Management representation about the Compliance of
laws, rules and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards
etc. is the responsibility of management. Our examination was limited to the verification of the
procedures and compliances on test basis.
6. While forming an opinion on compliance and issuing the Secretarial Audit Report, we have also taken
st
into consideration the compliance related actions taken by the Company after 31 March 2024 but
before issue of the Report.
7. We have considered actions carried out by the Company based on independent legal /professional
opinion as being in compliance with law, wherever there was scope for multiple interpretations.
8. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the company.

UDIN: A024204F000960141
Peer Review Certificate No.2148 /2022

For CaesarPintoJohn& Associates LLP

Company Secretaries
Sd/-
Tracy Tulassne Caesar
Partner
M.No: 24204
CP No: 15855
Kochi
13.08.2024

37
 Secretarial Audit Report

Annexure – 3
FORM NO. AOC – 2

(Pursuant to clause (h) of sub-section (3) of section 134 of the

Companies Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for Disclosure of particulars of contracts/arrangements entered into by the company with related
parties referred to in sub section (1) of section 188 of the Companies Act, 2013 including certain arms length
transaction under third proviso thereto.
1 Details of contracts or arrangements or transactions not at Arm length basis.

Sl. No. Particulars Details

a) Name(s) of the related party & nature of relationship NIL
b) Nature of contracts/arrangements/transaction NIL
c) Duration of the contracts/arrangements/ transaction NA
d) Salient terms of the contracts or arrangements or transaction including
the value, if any NA
e) Justification for entering into such contracts or arrangements or transactions NA
f) Date of approval by the Board NA
g) Amount paid as advances, if any NA
h) Date on which the special resolution was passed in General meeting as
required under first proviso to section 188 NA

2. Details of contracts or arrangements or transactions at Arm’s length basis

Sl. No. Particulars Details

a) Name (s) of the related party FACT RCF Building Products Limited
b) Nature of relationship Joint Venture
c) Nature of contracts/ arrangements/ transaction Supply of petrol/diesel and meals
d) Duration of the contracts/ arrangements/ transaction NA
e) Salient terms of the contracts or arrangements Transactions on Arm’s length basis
or transaction
f) Date of approval by the board 03.08.2017 & 17.11.2017
g) Amount paid as advances, if any Nil
h) Amount incurred during the year Rs.55,300/-

(S.C. Mudgerikar)
Place: Udyogamandal Chairman and Managing Director
Date : 03.09.2024 DIN-03498837

38
Annual Report 2023 - 24

Annexure 4
Annual Report on CSR Activities of FACT
1. Brief outline on CSR Policy of the Company:
FACT gives priority on various social responsibility measures for the benefit of weaker section of the Society
and to improve the standard of living of the inhabitants near the factory area. FACT will lay its focus primarily
on CSR activities in local communities in and around areas of Company's operations. FACT will
implement CSR activities to empower weaker, less privileged and marginalized sections of the
society to create social capital. The Company will give special attention for the development of SC/ST
communities. FACT will have a Board sub-committee consisting of three or more Directors out of which at
least one shall be an Independent Director.
2. Composition of CSR Committee:

Sl. Name of Director Nature of Number of meetings Number of meetings of

No Directorship of CSR Committee held CSR Committee attended
during the year during the year

1 Dr. Anjula Murmu Chairperson 3 3

2 Dr. K Jayachandran Member 3 3
3 Shri. Anupam Misra
(from 06-02-2024) Member 1 1
4 Shri. Kishor Rungta
(upto 01.02.2024) Member 2 2

3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects
approved by the board are disclosed on the website of the company.
Composition of the CSR committee - https://fact.co.in/home/Dynamicpages?MenuId=48
CSR Policy - https://fact.co.in//images/upload/CSR-POLICY---FACT(1)_103.pdf
CSR Projects - https://fact.co.in//images/upload/CSR-ANNUAL-ACTION-PLAN-2023-24_690.pdf
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried
out in pursuance of sub-rule (3) of rule 8, if applicable. Not Applicable.
5. (a) Average net profit of the company as per sub-section (5) of section 135.: `436.61Crore
(b) Two percent of average net profit of the company as per sub-section (5) of section135:
`873.22 lakh
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial
years: NIL
(d) Amount required to be set-off for the financial year, if any:`263 lakh
(e) Total CSR obligation for the financial year [(b)+(c)-(d): `610.22 lakh
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project):
`1662.46 lakh
(b) Amount spend in Administrative Overheads: NIL
(c) Amount spend on Impact Assessment, if applicable. NIL
(d) Total amount spent for the financial year. [(a)+(b)+ (c)]: ` 1662.46 lakh

39
 Secretarial Audit Report

7. CSR amount spent or unspent for the financial year:

Amount Unspent
Total amount Total amount transferred to Amount transferred to any fund specified
spent for the Unspent CSR Account as per under Schedule VII as per second proviso
financial year section 135(6) to section 135(5)
Amount Date of transfer Name of fund Amount Date of transfer

Rs. 1662.46 Lakh Nil Nil

8. Excess amount for set off, if any:

Sl. No. Particulars Amount (in lakhs)

(a) Two percent of average net profit of the Company as per Section 135(5) 873.22
(b) Total amount spent for the Financial Year 1662.46
(c) Excess amount spent for the financial year [(b)-(a)] 789.24
(d) Surplus arising out of the CSR projects or programmes or activities
of the previous financial years, if any Nil
(e) Amount available for set off in succeeding financial years [(c)-(d)] 789.24

9. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial
Years:
Sl. No Preceding Amount Balance Amount spent Amount transferred Amount Deficiency,
financial transferred Amount in in the reporting to a Fund as specified remaining if any
year to Unspent CSR Unspent CSR financial year under Schedule VII as to be spent in
Account under Account under per second proviso succeeding
Section 135(6) Section 135 (6) Section 135(5), if any financial years

Amount Date of
transfer
1 2020- 21 Nil Nil Nil Nil Nil Nil
2 2021-22 Nil Nil Nil Nil Nil Nil
3 2022-23 385.87 385.87 385.87 Nil Nil Nil

10. Whether any capital assets have been created or acquired through Corporate Social Responsibility
amount spent in the Financial Year: No
If Yes, enter the number of Capital assets created/ acquired –Not Applicable
Furnish the details relating to such asset(s) so created or acquired through Corporate Social
Responsibility amount spent in the Financial Year:Not Applicable
11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as
per section 135(5) of the Companies Act 2013. – Not Applicable

(S.C. Mugerikar) (Dr. Anjula Murmu)

(Chairman & Managing Director) (Chairperson CSR Committee)
DIN :- 03498837 DIN :- 09565841
Place: Udyogamandal
Date: 03.09.2024

40
Annual Report 2023 - 24

New Ammonia Storage Tank project at Cochin Division

As a part of the infrastructure developments in

association with fertiliser capacity expansion
project, two new Sulphuric Acid tanks
at the Cochin division were commissioned.

Renovated Ammonium
Sulphate Bagging Section

41
 Annual Report 2023 - 24

Promotion of OrganicFertilizers, Phosphate rich Organic Manures (PROM)

and Potash derived from Molasses (PDM) under PM - PRANAM
initiative of Government of India. Farmers meeting conducted in Dragon Fruit
field in tribal Village Agali in Palakkad district (Kerala).

42
Annual Report 2023 - 24

REPORT ON CORPORATE GOVERNANCE

1. Philosophy on Code of Governance
FACT considers Corporate Governance as a self- disciplinary code to achieve the highest standards to
safe guard the interest of shareholders and other stake-holders. It is a set of systems and practices
being followed by the Company to ensure accountability, transparency and fairness in all activities.
FACT has put in place a Corporate Governance structure with well-defined roles and responsibilities to
promote and maintain integrity, transparency and accountability.
Board of Directors is responsible for the overall governance. All matters of policy are placed before the
Board. The Board accords prime importance to transparency and the long-term interest of the
Company.
2. Board of Directors
(a) Composition and Category
The composition of the Board during the financial year ended on March 31, 2024 is as follows:

Sl. Period Nature of No. of

No Name of Director From To Directorship Directorship in
/ Category other Board
1 Shri S.C.Mudgerikar 23.02.2024 Continuing Chairman & Managing 3
(DIN-03498837) Director- Whole time
Functional (Executive)
Director
2 Shri Anupam Misra 14.07.2020 Continuing Director (Marketing ) NIL
(DIN-07637439) Whole time Functional
(Executive) Director
3 Shri S. Sakthimani 08.03.2021 Continuing Director (Finance) NIL
(DIN- 07482308) Whole time Functional
(Executive) Director
4 Dr. K. Jayachandran 03.03.2023 Continuing Director (Technical) 1
(DIN- 10062573) Whole time Functional
(Executive) Director
5 Ms. Aparna S Sharma 30.09.2020 Continuing Part-time Official Director NIL
(DIN- 07798544) (Non-Executive Director)

6 Shri Manoj Sethi 14.12.2023 Continuing Part-time Official Director 1

(DIN- 00301439) (Non-Executive Director )
7 Dr. Anjula Murmu 18.04.2022 Continuing Independent Director NIL
(DIN- 09565841)
8 Shri Keda Tanaji Aher 23.06.2023 Continuing Independent Director 2
(DIN- 07126654)
9 Shri M. Chandran 23.06.2023 Continuing Independent Director 1
(DIN- 07817614)
10 Dr. Rabinarayan Patra 07.05.2020 06.05.2023 Independent Director NIL
(DIN- 00917044)
11 Shri Taranjit Singh 14.08.2023 06.12.2023 Part-time Official Director NIL
(DIN- 10278060) (Non-Executive Director )
12 Shri Kishor Rungta 02.02.2019 01.02.2024 Chairman& Managing Director- NIL
(DIN- 00231106) Whole time Functional
(Executive) Director
13 Shri Avtar Singh Sandhu 23.03.2023 04.08.2023 Part-time Official Director NIL
(DIN- 10078787) (Non-Executive Director )

43
 Report on Corporate Governance

b. Attendance of each director at the meeting of the Board of Directors & the last Annual
General Meeting:
Sl. Annual General
Name of Director Board Meetings in 2023-24
No. Meeting 2023
05.05.2023 10.08.2023 06.11.2023 14.02.2024 29.09.2023
1 Shri S.C.Mudgerikar NA NA NA NA NA
2 Shri Anupam Misra Y Y Y Y Y
3 Shri S. Sakthimani Y Y Y Y Y
4 Dr. K. Jayachandran Y Y Y Y Y
5 Ms Aparna S Sharma Y Y N Y N
6 Shri Manoj Sethi NA NA NA Y NA
7 Dr. Anjula Murmu Y Y Y Y Y
8 Shri Keda Tanaji Aher NA Y Y Y Y
9 Shri M. Chandran NA Y Y Y Y
10 Dr. Rabinarayan Patra Y NA NA NA NA
11 Shri Taranjit Singh NA NA N NA N
12 Shri Kishor Rungta Y Y Y NA Y
13 Shri Avtar Singh Sandhu N NA NA NA NA

Y-Yes, N-No, NA – Not Applicable.

c. Disclosure pertaining to Directorship and committee positions in other Company
Sl. No. of Directorship in Board committee Name of other Category of
No. Name of Director other public limited positions held in other Listed Entity Directorship
companies public limited companies where the in the Listed
person is Entity
Chairman Member Chairman Member a Director
1. Shri S.C.Mudgerikar 1 - - 1 Rashtriya Chairman &
Chemicals and Managing Director-
Fertilizers Whole time
Limited. Functional
(Executive) Director

2. Shri Anupam Misra - - - - - -

3. Shri S. Sakthimani - - - - - -

4. Dr. K.Jayachandran - 1 - 1 Madras Director (Technical)

Fertilizers Whole time
Limited Functional
(Executive) Director

5. Ms Aparna S Sharma - - - -

6. Shri Manoj Sethi - 1 - - Hindustan Part-time Official

Organic Director (Non-
Chemicals Ltd Executive Director)

7. Dr. Anjula Murmu - - - - - -

8. Shri Keda Tanaji Aher - - - - - -

9. Shri M. Chandran - - - - - -

Note: - Chairmanship or Membership of only Audit Committee and Stakeholders Relationship Committees
have been considered.

44
Annual Report 2023 - 24

d. Number of meetings of the Board of Directors and dates on which Board Meetings were
held:
Four Board Meetings were held during the year under review. The meetings were held on:

Sl. No. Board meeting number Date of meeting

1 522 05.05.2023
2 523 10.08.2023
3 524 06.11.2023
4 525 14.02.2024

e. Disclosure of Relationships between Director inter-se: Nil

f. Number of shares and convertible instruments held by Non-Executive Directors: Nil
g. Familiarization programme imparted to Independent Directors
FACT is providing Familiarization programme to Independent Directors. Details of familiarization
programme imparted to independent directors can be accessed in the web link - https://fact.co.in/home/
Dynamicpages?MenuId=1922
h. List of Core Skills/ Experience/ Competencies Identified by the Board
FACT is a Government Company within the meaning of section 2(45) of the Companies Act, 2013. All
members on the Board are nominated/appointed by the Government of India.
All members on the Board are possessing core skills/expertise and competencies required in the realm
of its business.
The Company has identified the following Core Skills/ Practical Experience/ Special Knowledge/
Competencies as required in the context of its business(es) and sector(s) for it to function effectively.
The same are in line with the relevant provisions of the Companies Act, 2013
1. Marketing, Engineering and Research
2. Finance, accounting, economics and corporate governance
3. Law, Agriculture and Rural Economy
4. Environment and green technologies
5. Public Sector Undertaking
6. Business Management
7. Risk Management
8. Human Resources and General Administration
9. Any other matter the special knowledge and practical experience of which would, in the opinion of
the Board, be useful to the Company.
The Company has identified the following skill set with reference to its Business and Industry which are
available with the Board:

45
 Report on Corporate Governance

Designation Expertise in specific functional area

Chairman and Expertise in efficient Administration and Management of a Schedule A
Managing Director PSE, Risk Management, Public Sector Undertaking, Costing, Research
and Development & Business Management
Director (Technical) Fertilizers and Chemicals, Research and Development, Engineering,
Human Resources & Agriculture and Rural Economy
Director (Finance) Fertilizers and Chemicals, Finance, Public Sector Undertaking,
Economics, Costing, Risk Management & General Administration
Director (Marketing) International Trade, Marketing, Sales & Distribution, Logistics
Management, Business Management & Strategy, Public Sector
Undertaking, Contracting, Negotiations, Trade financing
Govt. Nominee Directors General Administration, Finance, Fertilizers and Chemicals, Economics,
Agriculture and Rural Economy & Public Sector Undertaking
Independent Directors Law/General Administration/ Human Resources/ Agriculture /Rural
Economy /Research and Development/Fertilizers and Chemicals/Risk
Management/Costing/Business Management &Economics

The Board has identified the following Skills/ Experience/ Competencies in the following Directors

Sl. No. Director Skills/Competency/Experience

1 Shri S.C. Mudgerikar Expertise in Administration and Management of a Schedule A
PSE, Risk Management, Public Sector Undertaking, Costing,
Research and Development & Business Management
2 Shri Anupam Misra International Trade, Marketing, Sales & Distribution, Logistics
Management, Business Management & Strategy, Public Sector
Undertaking, Contracting, Negotiations, Trade financing
3 Shri S Sakthimani Finance, Public Sector Undertaking, Economics, Costing and
Risk management
4 Dr. Jayachandran K Fertilizers and Chemicals, Engineering Research and
Development, Human Resources & Agriculture and Rural Economy
5 Ms Aparna S Sharma General Administration, Finance, Fertilizers and Chemicals,
Costing, Agriculture and Rural Economy & Public Sector Undertaking
6 Shri Manoj Sethi General Administration, Finance, Fertilizers and Chemicals,
Costing, Agriculture and Rural Economy & Public Sector
Undertaking
7 Dr. Anjula Murmu Academic/ General Administration/ Human Resources
8 Shri Keda Tanaji Aher General Administration/ Human Resources
9 Shri M Chandran Academic/ General Administration/ Human Resources

i. Confirmation from Independent Directors:

In the opinion of the Board, the Independent Directors fulfilled the conditions specified in the SEBI (LODR)
Regulations, 2015 and were independent of the management during their term of appointment.

46
Annual Report 2023 - 24

3. Board Committees
The Board of FACT has constituted the following committees:
Audit Committee
The Audit Committee is constituted in line with section 177 of the Companies Act, 2013, Regulation 18
of SEBI (LODR) Regulations, 2015 and guidelines on Corporate Governance as issued by Department of
Public Enterprises. The Audit Committee has been reconstituted several times on account of change in
Directors.
The Terms of reference of the Audit committee of the Board are as per the provisions of the Companies
Act, 2013 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015.
Composition, Meetings and Attendance:

Sl. Composition of the Date of Audit Committee Meetings and attendance of Members
No Audit Committee 05.05.2023 10.08.2023 06.11.2023 14.02.2024
1 Dr. Anjula Murmu,
Chairperson Y Y Y Y
2 Ms Aparna S Sharma
Member Y Y N Y
3 Shri Keda Tanaji Aher
Member NA Y Y Y
4 Dr. Rabinarayan Patra
Chairperson
(till 06.05.2023) Y NA NA NA
Y-Yes, N-No, NA – Not Applicable.
Nomination and Remuneration Committee
FACT is a Government Company (CIN: L24129KL1943GOI000371) in terms of Section 2 (45) of the
Companies Act, 2013. The Board of Directors of FACT are nominated/appointed by the Government of
India. The Government of India fixes the remuneration of Chairman and Managing Director and other
Whole-time Functional Directors. The Company is not paying any remuneration to part-time official
directors (Nominees of Government of India). However, Independent Directors are being paid sitting fee of
Rs.20000/- for attending each meeting of the Board and Committee of the Board.
Remuneration of the below Board level executives are fixed on the basis of Government guidelines in this
regard with the approval of the Board of Directors and Government of India.
The remuneration / wages of employees / workers are finalized on the basis of agreement with Trade
Unions and with the approval of Board / Government of India.
The role of Nomination and Remuneration Committee is as per the provisions of SEBI (LODR) Regulations,
2015; the Companies, Act, 2013 and DPE guidelines on Corporate Governance for Central Public Sector
Enterprises.
Details of remuneration paid to Functional Directors are separately shown in the Annual Report.
Nomination and Remuneration Committee has been reconstituted several times on account of change in
Directors.
The Terms of reference of the Nomination and Remuneration Committee of the Board are as per the
provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirement)
Regulations, 2015.

47
 Report on Corporate Governance

Composition, Meetings and Attendance:

Sl.No Composition of the Nomination and Date of Nomination

Remuneration Committee and Remuneration
Committee Meeting
and attendance of
Members
06.11.2023
1 Dr. Anjula Murmu - Chairperson Y
2 Shri M. Chandran - Member Y
3 Shri S.C. Mudgerikar - Member NA
4 Shri Kishor Rungta-Member( till 01-02-2024) Y

NA – Not Applicable.

Evaluation Criteria for Independent Directors

FACT being a Government Company, all appointments on the Board is made by Government of India,
Ministry of Chemicals and Fertilisers, Department of Fertilisers. The performance evaluation of directors
is done by the administrative Ministry and hence FACT is not conducting annual evaluation of
performance of independent directors.
Shareholders / Investors Grievance Committee / Stakeholders Relationship Committee
Stakeholders’ Relationship Committee is constituted in line with the provisions of Section 178 of the
Companies Act, 2013 and Regulation 20 of SEBI (LODR) Regulations, 2015.
The Board of Directors of the Company has constituted a Shareholders / Investors Grievance Committee /
Stakeholders Relationship Committee consisting of the following Directors to look into the Complaints/
Grievances of Shareholders.
Composition, Meetings and Attendance:

Sl.No Composition of the Stakeholders’ Date of Stakeholders’

Relationship Committee Relationship Meeting
and attendance of
Members
18.03.2024
1 Dr. Anjula Murmu - Chairperson Y
2 Shri Anupam Misra, Member Y
3 Shri S. Sakthimani, Member Y

The Complaints of Investors / shareholders are promptly attended to either by the Share Transfer Agent of
the Company or by the Company directly and no complaints of Shareholders remain unattended as on 31-
03-2024.

48
Annual Report 2023 - 24

Compliance Officer:
Name and Designation of Compliance Officer is as follows;
Susan Abraham,
Company Secretary
The Fertilisers and Chemicals Travancore Limited,
Eloor, Udyogamandal,
Kochi - 683 501,
Kerala
e-mail – [email protected]: Ph: 0484-2567620
Details of complaints received and redressed during the financial year:
During the financial year 2023-24 FACT has received only two complaints from a shareholder through SEBI-
SCORES and the same was addressed and settled.
Complaints Unattended: None of the complaints remain unresolved during the year.
Pending Complaints:None of the complaints are pending for redressal.
Risk Management Committee
FACT is one among the top 500 listed Companies based on Market Capitalization. FACT has constituted a
Risk Management Committee in line with SEBI (LODR) Regulations, 2015. The role of Risk Management
Committee is as per the provisions of SEBI (LODR) Regulations, 2015, Companies Act, 2013 and the Risk
Management Policy of the Company.
Composition, Meetings and Attendance:
Sl.No Composition of the Risk Date of Risk Management Committee
Management Committee Meeting and attendance of Members
22.09.2023 18.03.2024
1 Dr. Anjula Murmu - Chairperson Y Y
2 Shri Anupam Misra,Member Y Y
3 Shri S. Sakthimani,Member Y Y
4 Dr. K. Jayachandran,Member Y Y

Committee on Corporate Social Responsibility

The Board of Directors of the Company has constituted a Committee on Corporate Social Responsibility
as per the provisions of Section 135 of the Companies Act 2013 and the Companies (Corporate Social
Responsibility Policy) Rules 2014. The members of the Committee are:

Sl. Name of Director Nature of Directorship

No.
1 Dr. Anjula Murmu , Chairperson Independent Director
2 Shri Anupam Misra (from 06.02.2024) Director (Marketing)
3 Dr. K. Jayachandran (from 26.05.2023) Director (Technical)
4. Shri Kishor Rungta (till 01.02.2024) Chairman & Managing Director
4. Senior Management
Particulars of senior management and changes therein are as follows:
The particulars of senior management as per Regulation 16(1)(d) of the Listing Regulations including the
changes during the FY 2023-24 are as follows:

49
 Report on Corporate Governance

Sl. No. Name Designation Remarks

1 Shri. Manikkuttan R Executive Director (Production Coordination) Nil
2 Shri. Jayaraj K B Chief General Manager (FEDO &FEW) Nil
3 Shri. Mohanchandran M Chief General Manager (Cochin Division) Nil
4 Shri. Dileep R Chief General Manager
(Udyogamandal Complex) Nil
5 Shri. Asok Kumar K A General Manager
(Projects & Construction)FEDO Nil
6 Shri. Sajo K F General Manager (Operations)
Udyogamandal Complex Nil
7 Shri. Jayanthan B General Manager (Materials) Nil
8 Shri. Ashish A Nair General Manager (Engineering) FEDO Nil
9 Shri. Sisupalan K General Manager (Marketing)
Caprolactam & Chemicals Nil
10 Shri. Biju K B General Manager (Technical) Cochin Division Nil
11 Shri. Reji K S General Manager (CAPEX Projects)
temporary charge of Engineering/FEDO Nil
12 Dr. Babu Jose General Manager (Operations) Cochin Division Nil
13 Shri. Pradeepkumar C General Manager (Finance) Nil
14 Shri. Xavier Alexander Rajan General Manager (Information Technology) Nil
15 Shri. Joy M A General Manager (Technical)
Udyogamandal Complex Nil
16 Shri. Jayaprakashan U T General Manager (Maintenance)
Udyogamandal Complex Nil
17 Smt. Maria Varghese General Manager
(Human Resources & Administration) Nil
18 Shri. Sajith Kumar K General Manager (Logistics)
Port & Cochin Division Nil
19 Shri. Jeetendra Kumar General Manager (Marketing)Fertiliser Nil
20 Smt. Susan Abraham Company Secretary Nil
21 Shri. Mohan Kumar A R Executive Director (Human Resources) Superannuated
on 31-5-2023
22 Shri. Siby Michael Chief General Manager (FEDO & FEW) Superannuated
on 31-5-2023
23 Shri. Krishnan R Chief General Manager Superannuated
(Training & Development) on 30-4-2023

5. Remuneration of Directors

Functional (Executive) Directors are appointed by Government of India and their remuneration and other
terms and conditions are governed by the terms of appointment as decided by the Government.
Remuneration paid to the Directors during the year 2023-2024 is as under:

50
Annual Report 2023 - 24

Sl Name of the Director Salary and Other benefit Performance Total

No Allowances and perquisites Linked Remuneration
(in `) (in `) Incentives (in `) (in `)
1 Shri. Kishor Rungta, 46,26,245 7,53,829 -* 53,80,074
Chairman & Managing Director
(up to 01.02.2024)
2 Shri Anupam Misra 38,34,842 6,23,584 9,81,860 54,40,286
Director (Marketing)
3 Shri S Sakthimani 42,84,656 6,10,887 9,62,628 58,58,171
Director (Finance)
4 Dr Jayachandran K 47,87,650 4,08,134 8,49,039 60,44,823
*to be paid

No stock option scheme was issued to Directors in the year 2023-24.

Part Time Government Nominee Directors are neither paid any remuneration nor paid sitting fees for
attending Board Meetings. None of the Govt. Nominee Directors had any pecuniary relationship or
transactions with the Company during the year 2023-24.
Sitting fees of `20,000/- per meeting has been paid to Independent Directors for attending meetings of the
Board and sub committees of the Board. The sitting fee paid during the financial year 2023-24 is as follows

Sl.No Name of Director Sitting Fee (in `)

1 Dr. Rabinarayan Patra 40000
2 Dr. Anjula Murmu 320000
3 Shri Keda Tanaji Aher 140000
4 Shri M. Chandran 100000
Total Sitting fee paid 6,00,000

6. General Body Meetings

The date, time and venue and particulars of special resolution passed at the last three Annual General
Meetings were as follows:

Year Date Time Venue Details of Special

Resolution
2020-2021 22.09.2021 11.00 AM Through Video Conferencing (VC) NIL
/ Other Audio-Visual Means (OAVM)
2021-2022 28.09.2022 11.00 AM Through Video Conferencing (VC) NIL
/ Other Audio-Visual Means (OAVM)
2022-2023 29.09.2023 11.00 AM Through Video Conferencing (VC) 1. Appointment of
/ Other Audio-Visual Means (OAVM) Shri M. Chandran as an
Independent Director
of the Company.
2. Appointment of
Shri Keda Tanaji Aher
as an Independent Director
of the Company.

51
 Report on Corporate Governance

7. Postal Ballot
a) No special resolution was passed in last year through postal ballot.
b) As on date, the Company is not proposing to pass any resolution through postal ballot.
8. Means of Communications
The quarterly financial results of the Company are announced within forty-five days of the end of the
respective quarter. The quarterly, half-yearly and annual financial results of the company are published in
newspapers in India including Janmabhumi and Business Standard. The financial results are also posted in
company's website www.fact.co.in.
The Company's website, www.fact.co.in provides separate section for Investors where relevant
information is available. Financial results are sent to the Stock Exchange where the Company's shares are
listed.
During the year, no presentations were made to institutional investors or to the analysts.
9. General Shareholders Information
a) Information relating to the Annual General Meeting

80th Annual General Meeting

Day Friday
Date 27.09.2024
Time 11.00 am
Venue Through Video Conferencing (VC) /
Other Audio-Visual Means (OAVM)
st st
b) Financial Year : 01 April to 31 March

Dates of Book Closure 21.09.2024 - 27.09.2024

Dividend Payment Date 26.10.2024 (If declared at AGM)

Listing
The shares of the Company are listed in National Stock Exchange of India Ltd, Mumbai. Listing fees as
applicable have been paid.

Stock code
Name of Stock Exchange National Stock Exchange of India Ltd, Mumbai
Stock Code FACT

c) Market Price
During the financial year 2023-24, the share price of the Company touched `908.00 per share. The share
price of the Company opened at `208.00 on April 3rd, 2023 and closed at `627.95 on March 28th, 2024 in the
National Stock Exchange of India Limited.

52
Annual Report 2023 - 24

Month High (`) Low (`)

April 2023 364.65 201.80
May 2023 361.65 294.00
June 2023 478.00 300.05
July 2023 510.75 426.95
August 2023 503.90 413.15
September 2023 576.70 439.90
October 2023 774.95 506.00
November 2023 805.00 688.00
December 2023 861.15 710.00
January 2024 908.00 790.00
February 2024 879.85 710.10
March 2024 747.30 572.60

Performance of the share price of the Company in comparison to the NSE-NIFTY

The relative performance of the monthly closing price of the Company's share vis-à-vis NSE-
NIFTY during the year 2023-24 is given below

NSE - NIFTY

FACT
d) Registrar and Transfer Agent (RTA)
Purva Sharegistry (India) Pvt. Ltd,
Unit No. 9, Shiv Shakti Industrial Estate,
J.R. Boricha Marg, Mumbai - 400 011
Contact No.: 022 23018261 / 022 49614132
Email – [email protected]

53
 Report on Corporate Governance

Share Transfer System

The Company's shares being in the compulsory demat list, are transferable through the depository
system.
e) Distribution of Shareholding as on 31.03.2024

Shareholding of Nominal Shareholders Amount (`)

Value of Rs. 10/- Number % to Total

Upto 5,000 56919 0.4911 31777790

5001 -- 10000 1037 0.1244 8049720
10001 -- 20000 367 0.0833 5393180
20001----30000 95 0.0367 2373560
30001— 40000 39 0.0217 1405550
40001---50000 27 0.0190 1229390
50001---100000 39 0.0449 2904100
100001 and above 45 99.1789 6417586450
Total 58568 100.00 647,07,19,740

During the financial year 2023-24, FACT shares were actively traded on National Stock Exchange. Based on
st
Market Capitalization as on March 31 , 2024, FACT is one among the top 200 listed Companies.
f) De-materialization of shares and liquidity
The summarized position of shareholders in Physical and Demat segment as on 31.03.2024 is as under

Type of Shareholding Shareholders (Folios) Shareholding (%)

Number % Number %
Holding in NSDL 15632 26.22 641145501 99.09%
Holding in CDSL 38803 65.08 2965351 0.45%
Holding in physical 5186 8.70 2961122 0.46%
Total 59621 100.00 647071974 100.00

g) Plant Locations

Sl.No Activity Locations

1 Fertiliser Udyogamandal & Ambalamedu, Kochi
2 Petrochemical-Caprolactam Udyogamandal, Kochi
3 Engineering works Palluruthy, Kochi
h) Address for correspondence by Shareholders:
The Company Secretary
The Fertilisers and Chemicals Travancore Limited,
Eloor, Udyogamandal,
Kochi -683 501,
Kerala
e-mail – [email protected]: Ph: 0484-2567620

54
Annual Report 2023 - 24

i) Credit Rating
During the financial year 2023-2024 CARE Ratings Limited has given rating on the bank facilities of the
Company as follows:
Long term Rating - CARE A– Stable
Short term Rating- CARE A2
j) Outstanding GDRs / ADRs / Warrants or any convertible instruments conversion date and likely
impact on equity
The Company has not issued any GDRs / ADRs / Warrants or any convertible instruments and hence there
would not be any impact on the equity.
10. Other Disclosures
a. During the year 2023-24, the Company has not entered into any materially significant related
party transactions that may have potential conflict of interest with the Company at large.
Policy on dealing with Related Party Transactions of the Company can be accessed in the web link:
https://fact.co.in/home/Dynamicpages?MenuId=46
b. The Company has complied with requirements of listing agreement and guidelines of the Stock
Exchanges / SEBI / other Statutory Authorities, except as provided in (c) below.
c. During the year 2023-24, The National Stock Exchange of India Limited has imposed fines of,
`23,47,020/- for non-compliance of regulations 17(1), 18 (1) and 19(1) of SEBI (LODR) Regulations
2015 relating to composition of the Board and sub-committees of the Board. Since the Board of
Directors are nominated by Government of India and Composition of the Board is beyond the
control of the Company, a request has been submitted to the Stock exchange for waiver of fine.
During the year 2021-22 and 2022-23, The National Stock Exchange of India Limited has imposed
fines of `29,15,780/- and `27,95,420/- for the same non-compliance.
Once the Govt. of India notifies the appointment of Independent Director, FACT shall comply with
the SEBI (LODR) Regulations 2015 relating with composition of the Board.
d. The Company has formulated a Vigil Mechanism in terms of Regulation 46(2)(e) of SEBI (LODR)
Regulations, 2015. This policy is available at website of the Company at https://fact.co.in/home/
Dynamicpages?MenuId=45. No personnel has been denied access to the Audit Committee.
e. The company does not have any subsidiary. Hence it does not have a policy for determining
material subsidiary.
f. The company neither has commodity price risk nor is involved in commodity hedging activities.
g. The company has not raised any fund through preferential allotment or qualified institutions
placement.
h. A Certificate from a Company Secretary in Practice that none of the Directors on the Board of the
Company have been debarred or disqualified from being appointed or continuing as directors of
companies by SEBI/Ministry of Corporate Affairs or any such authority is placed as Annexure B to
this report. The independent directors made declaration of independence under sub-section (6) of
Section 149 of Companies Act, 2013 during the financial year 2023-24.
i. All the recommendations made by the sub-committees of the Board have been accepted by the
Board.
j. Details of Statutory Audit fee and expenses, as per the Financial Statements for the year 2023-24
are given below. The Statutory Auditors of the Company has not rendered any services to the joint
ventures/Associate Company of FACT.

55
 Report on Corporate Governance

Sl No Particulars Amount (in Lakhs)

1 For Statutory Audit 10.60
2 For Other Services 6.85
3 For Expenses 0.25
Total 17.70

k) Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
The Company has formulated a Policy in line with the requirements of The Sexual Harassment of Women at
the Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC)
has been set up to redress complaints received relating to sexual harassment.
Following are the summary of sexual harassment complaints received and disposed of during the period
under review:
Number of complaints at the beginning of the year: 0
Number of complaints received during the year: 1
Number of complaints disposed of during the year: 1
Number of complaints at the end of the year: 0
l) There are no loans and advances in the nature of loans to firms/companies in which Directors are
interested.
m) There are no material subsidiaries for the Company.
n) Certificate from Company Secretary in Practice
Certificate from M/s Caesar PintoJohn & Associates, Company Secretaries, Kochi, confirming that none
of the Directors on the Board of the Company have been debarred or disqualified from being appointed
or continuing as directors of companies by the SEBI, Ministry of Corporate Affairs, or any other
Statutory Authority, as stipulated under Regulation 34(3) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015, is attached to this Report as Annexure B.
11. There are no non-compliance of any requirement of Corporate Governance report of sub para (2)
to (10) above.
12. Discretionary requirements as specified in Part E of Schedule II have not been adopted.
13. Disclosure of Compliance with Corporate Governance requirements specified in regulation 17
to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46.
A detailed report on the status of compliance with all the applicable laws including corporate laws, rules
and regulations by the Company is placed before the Board on a half yearly basis for their information
and review. The Company has complied with all the mandatory requirements of the Code of Corporate
Governance as specified in Regulations 17 to 27 and Clauses (b) to (i) of Sub-regulation (2) of Regulation
46 of the SEBI Listing Regulations.Pursuant to regulation 34(3) and Schedule V (E) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations 2015, a Certificate from the practicing Company
Secretary in this regard, is attached as Annexure-A.

56
Annual Report 2023 - 24

14. Annual Secretarial Compliance Report

Pursuant to the SEBI circular no. CIR/CFD/ CMD1/27/2019 dated February 8, 2019, the Company has
obtained Annual Secretarial Compliance Report from M/s CaesarPintoJohn & Associates, Company
Secretaries, Kochi, confirming compliance of SEBI Regulations / Circulars / Guidelines issued there
under and applicable to the Company. They have reported that the Company is not complying the
provisions of Regulations 17(1), 18 (1), 19(1) & 31 (2) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015.
The Company will comply the provisions of Regulations 17(1), 18 (1) and 19(1) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations 2015, once the notification on appointment of
Independent Director is issued by the Government of India. Also Company has already taken necessary
steps to demat 700 shares to comply with the regulation 31(2).
15. Compliance of Corporate Governance requirements and guidelines issued by DPE:
The Company is giving top priority for the compliance of Corporate Governance requirements and
guidelines on Corporate Governance issued by DPE. The Company complied with the guidelines on
Corporate Governance issued by DPE applicable to FACT and Corporate Governance requirements as
specified in Regulation 17 to 27 and Regulation 46 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015.

(S. C. Mudgerikar)
Chairman & Managing Director
Place: Udyogamandal
Date: 03.09.2024 DIN: 03498837

57
 Report on Corporate Governance

CFO / CEO's CERTIFICATION

We Certify that:
a) We have reviewed financial statements and the cash flow statement for the year and that to the best
of our knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;
ii) these statements together present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards, applicable laws and regulations:
b) There are, to the best of our knowledge and belief, no transactions entered into by the Company
during the year, which are fraudulent, illegal or violative of the Company’s code of conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting and
that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to
financial reporting and they have disclosed to the Auditors and the Audit committee, deficiencies in
the design or operation of such internal controls, if any, of which we are aware and the steps we have
taken or propose to take to rectify these deficiencies.
d) We have indicated to the auditors and the Audit Committee:
i. Significant changes in internal control over financial reporting during the year;
ii. Significant changes in Accounting Policies during the year and that the same have been
disclosed in the notes to the financial statements.
iii. Instances of significant fraud of which we have become aware and the involvement therein, if
any, of the management or an employee having a significant role in the Company’s internal
control system over reporting.

(S. Sakthimani) (S. C. Mudgerikar)

Chief Financial Officer Chairman & Managing Director
DIN: 07482308 DIN: 03498837

DECLARATION OF COMPLIANCE OF CODE OF BUSINESS CONDUCT AND ETHICS

Members of the Board of Directors and Senior Executives of FACT have complied with the provisions of the
Code of Conduct and Ethics applicable to Directors and Senior Executives of the Company.
The information relating to FACT has been documented in the website of the Company www.fact.co.in

Place: Udyogamandal (S. C. Mudgerikar)

Date: 03.09.2024 Chairman & Managing Director
DIN: 03498837

58
Annual Report 2023 - 24

CaesarPintoJohn & Associates LLP

Regd. Office: F4, First Floor, Lspace, Logic Square, VIP Road, Near JLN Stadium Metro Station, Kaloor, Ernakulam, Kerala 682 017
Ph.: +91 9497274805, +91 9846949009 | E-mail : [email protected] | www. cpjcompanysecretaries.com

CERTIFICATE ON CORPORATE GOVERNANCE Annexure A

To the Members
The Fertilisers and Chemicals Travancore Limited
We have examined the compliance of conditions of Corporate Governance by THE FERTILISERS AND
CHEMICALS TRAVANCORE LIMITED(CIN: L24129KL1943GOI000371) having its registered office at
Eloor P. O., Udyogmandal, Alwaye, Ernakulam, Kerala – 683501 (hereinafter referred to as 'the Company'),
for the year ended 31st March, 2024 as stipulated in Regulation 17 to 27 and clause (b) to (i) of Regulation 46
(2), Schedule V and Schedule II of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our
examination has been limited to a review of the procedures and implementation thereof adopted by the
Company for ensuring compliance with the conditions of Corporate Governance as stipulated above. It is
neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, and based on
the representations made by the Directors and the management and considering the relaxations granted by
the Ministry of Corporate Affairs and Securities and Exchange Board of India warranted due to the spread of
the COVID-19 pandemic, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in the SEBI Listing Regulations for the year ended on March 31, 2024 except as
follows:
As per Regulation 17 (1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, where the listed entity does not have a regular non-executive
chairperson, at least half of the board of directors shall comprise of independent directors. During the
financial year from 01.04.2023 to 31.03.2024, half of the Board of directors of the Company does not
comprise of Independent Directors. Two Third of the members of the Audit Committee does not comprise
of Independent Directors from 26/05/2023 to 05/07/2023. All the members of the Nomination and
Remuneration Committee are not non-executive directors and comprise of only one Independent Director
from 26/05/2023 to 05/07/2023.
We further state that such compliance is neither an assurance as to the future viability of the Company nor
of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
UDIN: A024204F000960161
Peer Review Certificate No.2148 /2022

For CaesarPintoJohn& Associates LLP

Company Secretaries
Sd/-
Tracy Tulassne Caesar
Partner
M.No: 24204
CP No: 15855

Kochi
13.08.2024

59
 Report on Corporate Governance

CaesarPintoJohn & Associates LLP

Regd. Office: F4, First Floor, Lspace, Logic Square, VIP Road, Near JLN Stadium Metro Station, Kaloor, Ernakulam, Kerala 682 017
Ph.: +91 9497274805, +91 9846949009 | E-mail : [email protected] | www. cpjcompanysecretaries.com

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS Annexure B

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015)
To
The Members of
THE FERTILISERS AND CHEMICALS TRAVANCORE LIMITED
Eloor P. O., Udyogmandal
Alwaye,Ernakulam, Kerala - 683501
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of THE
FERTILISERS AND CHEMICALS TRAVANCORE LIMITED having CIN: L24129KL1943GOI000371 and having
registered office at Eloor P. O.,Udyogmandal,Alwaye, Ernakulam, Kerala – 683501 (hereinafter referred to as 'the
Company'), produced before us by the Company for the purpose of issuing this Certificate, in accordance with
Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the
Company and its officers, We hereby certify that none of the Directors on the Board of the Company as stated below
for the Financial Year ending on 31stMarch, 2024 have been debarred or disqualified from being appointed or
continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or
any such other Statutory Authority.
Sl. No. Name of Director DIN Date of appointment in Company
1. Mr.Shriniwas Chandrashekhar Mudgerikar 03498837 23-02-2024
2. Mr.Munirathinam Chandran 07817614 23-06-2023
3. Mr.Keda Tanaji Aher 07126654 23-06-2023
4. Mr.Manoj Sethi 00301439 14-12-2023
5. Mr.Krishnanunni Jayachandran 10062573 03-03-2023
6. Ms.AparnaSachin Sharma 07798544 30-09-2020
7. Mr.Anupam Misra 07637439 14-07-2020
8. Ms.Anjula Murmu 09565841 18-04-2022
9. Mr.SakthimaniSeshamani 07482308 08-03-2021
10. Mr.Rabinarayan Patra# 00917044 07-05-2020
11. Mr.Avtar Singh@ 10078787 23-03-2023
12. Mr.Taranjith Sing* 10278060 14-08-2023
13. Mr.Kishor Rungta^ 00231106 02-02-2019
#ceased on 07-05-2023 @ceased on 04-08-2023
*ceased on 06-12-2023 ^ceased on 02-02-2024

Ensuring the eligibility of the appointment / continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
UDIN: A024204F000960150
Peer Review Certificate No.2148 /2022
For CaesarPintoJohn& Associates LLP
Company Secretaries
Sd/-
Tracy Tulassne Caesar
Partner
M.No: 24204
CP No: 15855
Kochi
13.08.2024
60
Annual Report 2023 - 24

Farmers Meet

61
 Annual Report 2023 - 24

Shri Anupam Misra, Director (Marketing) drapes a ponnada on Dr. P.P.Vava,

Hon'ble Member, National Commission for SafaiKaramcharis during his visit to FACT.

Visit of Secretary, National Commission for

Scheduled Tribes (ST) to FACT on 29.02.2024

FACT's Meeting with the Department Related

Parliament Standing Committee on
Industry on 27.1.2024 at Kochi

62
Annual Report 2023 - 24

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Development
The fertilizer industry is one of India's fastest-growing basic industries. Its growth is fueled by the increasing
demand for food, driven by the country's growing population and limited land availability.
The Indian fertilizer industry is on a strong growth path, projected to reach a market size of Rs 1.38 lakh crore
by 2032, with a Compound Annual Growth Rate (CAGR) of 4.2% from 2024 to 2032.
In India, the focus of the Government continued on ensuring the availability of fertilizers at affordable prices
through subsidies and policy measures. The balanced use of fertilizers and reduced dependence on imports
are also prioritized. Promotion of organic fertilizers, bio-fertilizers, and the use of nano-fertilizers to enhance
efficiency and reduce environmental impact is also being encouraged for sustainable agriculture practices.
The global fertilizer market faced supply chain disruptions due to geopolitical tensions and economic
sanctions, which impacted the availability and prices of raw materials and finished products in India.
Global price volatility of fertilizers and raw materials like phosphates, potash, and natural gas had significant
repercussions on the Indian market, leading to fluctuating retail prices and impacting farmers.
Changes in trade policies and tariffs by major fertilizer-exporting countries influenced the import dynamics
for India. Efforts were made to diversify import sources to mitigate risks associated with over-dependence
on a few countries.
The fertilizer industry in India is made up of several government and private sector companies that
manufacture a range of different fertilizer types.
India's fertilizer consumption is on the rise and is projected to continue growing in the coming years. The
demand for fertilizers has seen significant growth due to the increasing need to enhance agricultural yields.
However, despite this progress, India's fertilizer use remains imbalanced and is lower in intensity compared
to many developed and emerging countries.
Decreasing fertility of the land and increasing demand for food grains have raised the importance of fertilizer
industry in India. India is still not self-reliant in fertilizer production. Government of India is taking measures
to bring self-sustainability in the fertilizer sector for ensuring food security. The entire requirement of Potash
is met through import and also for other fertilizers, for sourcing raw materials and hydrocarbon, the country
is dependent on imports.
Fertilizers have been considered as an essential input to Indian agriculture to meet the food grain
requirements of the Country's growing population. However, maintaining full load operation of plants,
ensuring availability of fertilizer inputs etc. were a real challenge to the industry. Prevailing Global economic
situation is also influencing the operations of fertilizer industry in India.
During the year 2023-24, the government adjusted its subsidy and support policies to help both farmers and
the fertilizer industry cope with the adverse climatic impacts, ensuring affordability and availability despite
the challenges.
About the Company
The Fertilisers and Chemicals Travancore Limited (FACT) was incorporated in 1943. In 1947, FACT started
production of Ammonium Sulphate with an installed capacity of 10,000 MT per annum at Udyogamandal,
near Cochin. In the year 1960, FACT became a Kerala State PSU and on 15th August, 1962, Government of
India became the major shareholder.
From a modest beginning, FACT has grown and diversified into a multi-division/multi-function Organisation
with basic interest in manufacture and marketing of Fertilisers and Petrochemicals, Engineering
Consultancy and Design and Fabrication and Erection of Industrial Equipment.

63
 Management Discussion and Analysis Report

Installed capacity of FACT plants are given below.

Product Installed Capacity

a. Factamfos (NP 20:20) 633,500 MT per annum
b. Ammonium Sulphate 225,000 MT per annum
c. Caprolactam 50,000 MT per annum

FACT’s mission is to be a significant player in Fertilisers, Petrochemicals and other businesses such as
Engineering and Technology services.
FACT’s objectives are:
a. To produce and market Fertilisers & Caprolactam and other products efficiently and economically,
besides achieving a reasonable and consistent growth.
b. To effectively manage the assets and resources of the company to ensure a reasonable return on
investment
c. To focus on cost reduction and technology upgradation in order to become competitive in business.
d. To constantly innovate and develop new products and services to satisfy customer requirements.
e. To invest in new business lines, where profit can be made on a sustainable basis.
f. To provide services to the farming community by organizing technical training, soil testing and other
productivity improvement services in agriculture.
SWOT
Strengths
l Premium product in the complex fertilizer segment. Factamfos NP 20:20:0:13 is the most preferred
complex fertilizer containing sulphur in South Indian Market.
l FACT is having extensive market network in South India. FACT's products are being marketed
through dealer network of about 5566 dealers.
l Operational efficiency and high capacity utilisation of plants. FACT plants are capable of achieving
120% - 130% of its installed capacity.
l The Company is having land resources for generating additional revenue.
l Petronet LNG has set up a re-gasification / storage facility of Natural Gas at Kochi. FACT plants are
connected with a pipeline of GAIL for transmission of re-gasified Natural Gas.
Weakness
l The fertiliser plants now in operation in the Company are of very old vintage
l The production facilities of the Company are located away from the main consuming areas
l The Company is heavily dependent on imports.
Opportunities
l FACT is having scope for expansion of its activities to other States due to its wide marketing
network.
l The Company can diversify into manufacture of other grades of fertilizer.
l The Company can enter into manufacturing and trading of various chemicals.
l The available land can be used for further expansion and diversification.

64
Annual Report 2023 - 24

Threats
l Volatility in Raw Material prices
The Company does not have any control over the price of raw materials. All the major fertilizer
inputs are imported and prices are highly volatile.
l High interest on Government of India Loan
Government of India is charging 13.5% interest on the loan availed. The liability in this regard is ₹240
Crore approximately per annum. This will affect the profitability of the Company.
l Exchange rate variations
The Company is depending upon import for fertilizer inputs. The adverse impact in exchanging rate
variations is a serious threat to the profitability of the Company.
l Dependence on imported raw materials and the logistic limitations due to geo political situation, can
affect the performance of the company
l Seasonal nature of product demand
Fertilizer consumption is seasonal and dependent on rainfall in the region.
Operational Performance Segment wise / Product wise
a. Udyogamandal Complex
Fertilizer Units: During the financial year 2023-24 Udyogamandal Complex produced 221267 MT of
Factamfos, (NP 20:20:0:13), which is 149% of the installed capacity and 116% of the ministry target.
Ammonium Sulphate production during the financial year 2023-24 was 242577 MT, which is 108% of
the installed capacity and 113% of the ministry target. This is against the production of 208146 MT and
244732 MT respectively in the previous year.
Nutrient wise production during 2023-24 was 94224 MT of Nutrient Nitrogen as against MoU target of
82290 MT and 44253 MT of P2O5against MoU target of 38000 MT.
Petrochemical Unit: The production of Caprolactam for the financial year was 34663 MT, on Grid
Energy with DG support.
b. Cochin Division:
During the financial year 2023-24, Cochin Division produced 121290 MT each of nutrient nitrogen and
nutrient P2O5, which is 125.04% of the installed capacity and 94.76% of the internal target. The
production of Nutrient Nitrogen and P2O5 during the previous year was 124010 MT.
The division also produced 226060 MT of Sulphuric Acid and 58535 MT of Phosphoric Acid as compared
to 234330 MT of Sulphuric Acid and 63050 MT of Phosphoric Acid in the year 2022-23.
c. Marketing Division:
During the financial year 2023-24 the Company had achieved total sales of 11.76 lakhs MT of all products
as compared to last year sales of 9.96 lakh MT; works out 18% growth over last year in spite of adverse
climatic conditions and stiff competition.
FACT conducted government programs like PMKSK, PM-PRANAM, PM-Mahila Kisan Drone Kendra,
Vikshit Bharath Sangalp Yathra & Community Radio Program etc. during the year successfully.
As part of market expansion/reorganization of territories, new zones Kadapa, Kakkinada in Andhra
Pradesh, Nizambad in Telegana and Bhubaneshwar in Odisha have been formed. Maharashtra State
Office at Solapur started functioning.

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 Management Discussion and Analysis Report

FACT appointed Stock Point Dealers in Karnataka, AP and Telegana (outside TN / KL) for the first time
which will improve Godown facility / wide spread availability of stocks for the dealers/farmers. The
company has also started selling the new product like PDM / PROM / Nano UREA / Nano DAP.
FACT achieved Soil Analysis of 10038 samples against the MoU target of 10000 given by DoF for the
year 2023-24.
d. FACT Engineering and Design Organisation (FEDO):
During the financial year 2023-24, FEDO focused on execution of major jobs of its external clientele and
achieved substantial progress in completion of major milestones laid out in the spectrum of Design,
Engineering, Procurement and Inspection fronts as well as in the Projects and Constructions. FEDO
actively participated in the E tenders/Enquiries from several Indian clientele in Oil & Gas, Fertilizers,
Chemicals, Minerals & Metals etc., like HPCL, KMML, HURL, RIL, NGIL, BHEL, OIL etc.
FEDO received new external orders for a value of Rs. 46.00 Crore during the year 2023-24. FEDO
achieved a turnover of Rs.18.65 Crore as compared to Rs. 13.34 Crore in the previous year.
e. FACT Engineering Works (FEW):
During the financial year 2023-24, FEW bagged External orders worth Rs.67.31 lakh compared to Rs.
256.24 lakh during the financial year 2022-23. The total value of the orders for the year is Rs.463.31
lakhs.
FEW is planning to associate with credible Engineering firms, by establishing a panel of interested
parties, which can help it to bag & carry out more orders. The demand from the process industry for
pressure vessels and heat exchangers for replacement as well as for capacity expansion is steady and it
offers business opportunity to FEW. The shipping sector is also now on the path of resurgence.
Further details on Segment-wise or Product-wise Performance and Discussion on financial performance
with respect to operational performance are furnished separately in the Annual Report.
Outlook for the future
The Company expects to continue the excellent production and marketing performance during the year
2024-25. Company is also planning to increase fertilizer trading activities this year. Tie up for supply of RLNG
for five years has been made with Indian Oil Corporation Ltd. Company has also tied up for Sulphur and
benzene from domestic suppliers.
The financial restructuring package has been submitted to Govt. of India seeking approval for conversion of
a part of Government of India loan into equity and write off of interest on Govt. of India loan and restructuring
of balance Govt. of India loan.
The Financial Restructuring proposal submitted by the Company is under the consideration of Department
of Fertilisers. The Company expects an early implementation of the same.
The Company has submitted its request to Department of Fertilizers for granting 'Mini Ratna' Status and the
proposal is also under consideration.
The Capex projects for the Company is progressing as per the plan. Setting up of 1650 TPD Factamfos plant
and implementation of the CAPEX could result in increase in fertilizer production of the Company from 10
lakh MT to 14 lakh MT and considerable increase in turnover and reasonable profit.
Risk and Concern
The fertilizer business is exposed to various risks arising from fluctuations in international raw material
prices, foreign exchange rate, geo-political uncertainties etc., which can have an adverse impact on the
financial position and impact margins. Cyber security issues like information breach, unauthorized access,
loss of sensitive or confidential information etc. also pose significant risks to the Company.

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Annual Report 2023 - 24

Internal Control systems and their adequacy

FACT is having an Internal Control System, commensurate with the size, scale and complexity of its
operations. The Internal Audit wing of FACT headed by Deputy General Manager (Internal Audit), monitors
and evaluates the efficacy and adequacy of Internal Control System in the Company. The observations and
recommendations of internal audit along with corrective action thereon are presented to the Audit
Committee of the Board. Based on the recommendation of Internal Audit, the functional heads take
necessary corrective action in their functional area, thereby strengthening internal control.
Performance of the Company
Financial performance
The Company achieved very good performance in the production, marketing and financial front. The
Company has achieved turnover of ` 5054.93 Cr and earned a net profit of ` 146.17 Cr. For the Financial
Year 2023-24, the Board has recommended a Dividend of ` 0.97/- (ninety-seven paise) per equity share of
face value of Rs.10/- each.

Particulars 2023-24
Net Sales 5054.93
Other Income 203.12
Total Revenue 5258.05
Total Expenses 4968.96
Profit before Exceptional Items and Tax 289.09
Exceptional Items -245.59
Earnings before interest, depreciation and Taxes (EBIDTA) 562.59
Interest 246.93
Depreciation 26.57
Deferred Tax -102.67
Profit for the year 146.17

Operational performance
On Production front, Factamfos production for the fiscal year 2023-24 was 8.27 lakh MT and Ammonium
Sulphate 2.42 lakh MT, as compared to 8.28 lakh MT and 2.44 lakh MT respectively during the previous year.
Material developments in Industrial Relations / Human Resources
1. Industrial Relations
During the financial year 2023-2024, cordial industrial relations were maintained across all Divisions of the
Company. Discussions were regularly held between Management and the Trade Unions and Officer
Associations on various matters. Consequent to the Pay revision for employees, Company implemented
'Cafeteria Approach' for payment of allowances/perks to employees. The retirement age of employees was
enhanced from 58 to 60 years during the financial year. The year witnessed high levels of production and
sales with high levels of employee commitment in all its plants. There was no loss of productivity due to
Industrial Relation issues.

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 Management Discussion and Analysis Report

2. Human Resources
The Company values Human Resources as an important asset and recognizes its contribution in achieving
high levels of production and sales during the year including achievement of many records in these areas.
162 employees joined the permanent rolls of the Company during the year. There were 1523 employees on
permanent rolls as on 31.03.2024.
Employees are imparted training through the FACT Training Centre. The new recruits were given induction
training and on the job training in Divisions. The web based Learning Management System developed and
implemented in-house, whereby intranet users, while in office, can access learning modules on various
subjects, is also in place.
The Company has a well-structured and effective Employees Grievance Management System for
redressing employee grievances. The basic objective of the Employees Grievance Redressal System is to
provide an easily accessible machinery for settlement of grievances and to adopt measures to ensure
expeditious settlement of grievances of all the employees to inspire confidence of employees in the system
leading to increased satisfaction in the job and resulting in improved productivity and efficiency of the
organization. Three separate Grievance Committees are in place for employees in various cadres to
consider and redress grievances.
3. Development of Scheduled Castes/ and Scheduled Tribes (SC/ST).
Regular in house training programmes are being arranged to employees including SC/ST employees
through FACT Training Centre.
For engagement of Apprentices under the Apprentices Act, representation as per rules is provided. The
representation for SC/ST in Apprentices as on 31.03.2024 is as follows:

Total No of Apprentices GEN OBC SC ST

130 35 74 18 03

18 SC and 3 ST Apprentices underwent training during 2023-2024.

4. Steps taken for the welfare of SC/ST employees
The directives of the Government in recruitment and promotion of reserved categories are followed by the
Company. SC/ST officers are nominated on the selection committees and Management also ensures their
representation in other committees and forums. Due consideration is given for allotment of residential
quarters and also for nominations for training courses. Welfare benefits are extended to employees and
their dependents by way of medical facilities, housing, social security measures etc. SC/ST Employees
Associations are also functioning in the Company.
The representation of SC/ST in recruitments duing the year 2023-24 is given below:
Recruitment Numbers SC ST
01.04.2023 - 31.03.2024 Recruited
Managerial cadre 60 10 2
Non managerial cadre 102 23 6
Grand Total 162 33 8
The employment of Reserved categories as on 31.03.2024 is given below:
Total SC ST OBC PWBD
No of Employees 1523 224 54 649 37
% of total employees 14.71 3.55 42.61 2.43

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Annual Report 2023 - 24

SC/ST Grievance Cell

An SC/ST Grievance Cell is functioning in the Company comprising the Chairman, (who is also Chief Liaison
Officer for matters pertaining to reservation of SC/ST, and their grievances in the Company), liaison officers
of various Divisions and officers belonging to SC & ST. The grievances received are examined in detail by the
Cell and appropriately redressed wherever possible.
Allotment of Residential Quarters
Due consideration is given for allotment of Residential Quarters to SC/ST employees. 28% of the quarters
are presently occupied by SC/ST Employees. Details of the quarters allotted to SC/ST employees are
furnished below:

Total number of quarters SC Employees ST Employees

occupied by the employees
in the Townships

365 81 21

Reservation of Dealership
FACT is having 5937 dealers for distribution of fertilisers. FACT is encouraging SC/ST category dealers to
apply for the dealership in accordance with policy of Department of Fertilizers, Government of India.
Total number of dealers and the representation of SC/ST in dealership as on 31.3.2024 is given below.

Sl.No. State Total Dealers SC Dealers ST Dealers

1 Kerala 1618 33 6
2 Tamil Nadu 1145 63 0
3 Karnataka 1721 44 32
4 Telangana 553 3 4
5 Andhra Pradesh 718 5 0
6 Maharashtra 44 0 0
7 Gujarat - - -
8 Odisha 41 0 0
9 West Bengal 51 0 0
10 Bihar 46 0 0
TOTAL 5937 148 42

Sexual Harassment of women at workplace

Sexual Harassment Disposed cases Pending at the

Complaint received end of
during 2023-24 2023-24

1 1 0

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 Management Discussion and Analysis Report

Key Financial Ratios

Key financial ratios of the Company for the financial year 2022-2023 and financial year 2023-2024 are given
below

SL No Particulars 2023-24 2022-23 Details of significant changes

(i.e. change of 25% or more as
compared to the immediately
previous financial year)
I Debtors Turnover Ratio 4.37 5.77 NA
ii Inventory Turnover Ratio 4.76 7.55 Due to reduction in Sales
and also increased inventory
position of Finished goods
iii Interest Coverage Ratio 1.18 3.48 Due to decrease in profit
iv Current Ratio 1.05 1.08 NA
v Return on Capital employed 0.08 0.19 Due to reduction in Net Profit after Tax
vi Operating Profit Margin 0.11 0.14 NA
vii Net Profit Margin 0.03 0.10 Due to decrease in Turnover &
Net Profit
viii Debt Equity Ratio 3.23 3.27 NA

As on 31.03.2023 the networth was Rs.1164.16 Crore. During the Financial year 2023-24, the Company
earned a profit of Rs.146 Crore and networth as on 31.03.2024 is Rs, 1248.51 Crore.
Cautionary Statement
Statements in the Management Discussion and Analysis and in the Directors' Report, describing the
Company's objectives, projections and estimates, contain words or phrases such as “will”, “aim”,
“believe”, “expect”, “intend”, “estimate”, “plan”, “objective”, “contemplate”, “project” and similar
expressions or variations of such expressions, are “forward-looking” and progressive within the meaning of
applicable laws and regulations. Actual results may vary materially from those expressed or implied by the
forward-looking statements due to risks or uncertainties associated therewith depending upon economic
conditions, government policies and other incidental factors. Readers are cautioned not to place undue
reliance on these forward-looking statements.

Place: Udyogamandal (S. C. Mudgerikar)

Date : 03.09.2024 Chairman & Managing Director
DIN-03498837

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Annual Report 2023 - 24

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated 10/05/2021
SECTION A: GENERAL DISCLOSURES
I. Details of the listed entity

1 Corporate Identity Number (CIN)

of the Listed Entity L24129KL1943GOI000371
2 Name of the Listed Entity The Fertilisers and Chemicals Travancore Ltd
3 Year of incorporation 1943
4 Registered office address Eloor Udyogamandal, Ernakulam District,
Kerala - 683501
5 Corporate address Eloor Udyogamandal, Ernakulam District,
Kerala - 683501
6 E-mail [email protected]
7 Telephone 0484-2567620
8 Website www.fact.co.in
9 Financial year for which reporting is being done 01-04-2023 to 31-03-2024
10 Name of the Stock Exchange(s)
where shares are listed National Stock Exchange of India Ltd
11 Paid-up Capital Rs. 647.07 Crore
12 Name and contact details Susan Abraham
(telephone, email address) of the person Company Secretary
who may be contacted in case of any queries [email protected]
on the BRSR report 0484-2567620
13 Reporting boundary - Are the disclosures under Standalone basis
this report made on a standalone basis
(i.e. only for the entity) or on a consolidated basis
(i.e. for the entity and all the entities which form
a part of its consolidated financial statements,
taken together).
14 Name of Assurance Provider Nil
15 Type of Assurance obtained Nil

II. Products/ Services

16. Details of business activities (accounting for 90% of the turnover):
S. No. Description of Main Description of % of Turnover
Activity Business Activity of the entity
1 Manufacturing & Manufacturing and Marketing Fertilisers, 99%
Marketing Chemicals and Petrochemicals
2 Engineering & Engineering Consultancy & Design and Fabrication & 1%
Consultancy Erection of Industrial Equipment

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 Business Responsibility & Sustainability Report

17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. No. Product / Service NIC Code % of total Turnover
1 Complex Fertilisers 31052000 72
2 Ammonium Sulphate 31022100 14
3 Caprolactam 29337100 11
III. Operations
18. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total

National 2 15 17

International Nil Nil Nil

19. Markets served by the entity:

a. Number of locations
Locations Number
National (No. of States) 9
International (No. of Countries) 0

b. What is the contribution of exports as a percentage

of the total turnover of the entity? Nil
c. A brief on types of customers The ultimate customers of the Company
for fertilisers are the farmers and the
agriculturists. The sales of fertilisers to
the farmers are effected through the
company’s depot and the dealer network.
The customers for petrochemical products
are Nylon Manufactures.

IV. Employees
20. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):

S. Particulars Total Male Female

No. (A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 635 563 88.66 72 11.34
2. Other than Permanent (E) 46 39 84.78 7 15.22
3. Total employees (D + E) 681 602 88.40 79 11.60
WORKERS
4. Permanent (F) 888 859 96.73 29 3.27
5. Other than Permanent (G) 712 592 83.15 120 16.83
6. Total workers (F + G) 1600 1451 90.69 149 9.31

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Annual Report 2023 - 24

b. Differently abled Employees and workers:

S. Particulars Total Male Female
No. (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 17 15 88.24 2 11.76
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently
abled employees 17 15 88.24 2 11.76
(D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 20 20 100 0 0
5. Other than permanent (G) 0 0 0 0 0
6. Total differently
abled workers 20 20 100 0 0
(F + G)

21. Participation/Inclusion/Representation of women

Total No. and percentage of Females
(A) No. (B) % (B / A)
Board of Directors 9 2 22%
Key Management Personnel 5 1 20%

22. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)
FY 2023-2024 FY 2022-2023 FY 2021-2022
(Turnover rate in current FY) (Turnover rate in previous FY) (Turnover rate in the year
prior to the previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 12.05 14.29 12.30 9.27 10.52 9.42 12.15 3.14 11.19
Permanent Workers 13.51 22.86 13.87 15.51 11.90 15.35 13.98 13.04 13.94
V. Holding, Subsidiary and Associate Companies (including joint ventures)
23. (a) Names of holding / subsidiary / associate companies / joint ventures
S. No. Name of the holding / Indicate whether % of shares held Does the entity
subsidiary/associate holding/ Subsidiary/ by listed entity indicated at column A,
companies/ joint Associate/ Joint participate in the
ventures (A) Venture Business Responsibility
initiatives of the listed
entity? (Yes/No)
1 FACT-RCF Building Joint Venture 50 % No
Products Private Limited

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 Business Responsibility & Sustainability Report

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes
(ii) Turnover (in Rs.) ` 50549261423/-
(iii) Net worth (in Rs.) ` 12485111286/-
VII. Transparency and Disclosures Compliances
25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct:

Stakeholder Grievance Redressal FY 2023-24 FY 2022-23

group from Mechanism in Place Current Financial Year Previous Financial Year
whom (Yes/No) (If Yes, then
complaint is provide web-link for Number of Number of Remarks Number of Number of Remarks
received grievance redress policy) complaints complaints complaints complaints
filed pending filed pending
during the resolution during the resolution
year at close of year at close of
the year the year
The list of the
Stake holders
Communities No NA NA NA NA NA NA
Investors
(Other than Yes NA NA NA Nil Nil Nil
shareholders)
Shareholders https://fact.co.in/home/
Dynamicpages?MenuId 8 0 Nil 1 0 Nil
=2994
Employees Yes http://192.168.20.129/HRM/
and workers Grievance-Management- 4 3 Nil 6 5 Nil
System.pdf
Customers Yes,(Details of Customer
care No., Email id & Address 17 Nil Nil 15 Nil Nil
are printed on the bags)
Value Chain Yes,(Details of Customer care
Partners No., Email id & Address are 13 Nil Nil 8 Nil Nil
printed on the bags)
Other (Total) No NA NA NA NA NA NA

26. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to
environmental and social matters that present a risk or an opportunity to your business, rationale for
identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per
the following format
Sl. Material Indicate Rationale for In case of risk, approach to Financial implications
No issue whether risk identifying the adapt or mitigate of the risk or opportunity
identified oropportunit risk/opportunity (Indicate positive or
y (R/O) negative implications)
1. Health & Risk Health & safety is one Safety inspections were carried out Negative
Safety of the most critical by safety committee every quarter
areas for the industry of the year. Mock drills are carried
which directly impacts out at regular intervals.
the operation. Health
and safety aspects are
subjected to regular
ISO Audits.
2. Pollution Risk It can have a negative Fuel changed to RLNG. Online Negative
implication on the analysis for continuous monitoring
business of parameters are installed.

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Annual Report 2023 - 24

3. Climate Risk Climate change can Raw material procurement and Negative
change lead to changes Production are planned accordingly.
affecting raw materials Climate change can affect the
availability and usage of fertilisers
demand for finished
Products. (Fertilisers)

4. Water Opportunity Water is essential to Emphasis on recycle of water Positive

neutrality the production.
5. Employee Opportunity Training is important Conducted training programmes, Positive
Development and skill upgradation rewards and recognition scheme
programs need to be
conducted
6. Energy Opportunity Energy is required for Focus on renewable energy will help Positive
Manageme production at large to reduce burden on environment.
nt scale Energy efficiency improvement
efforts are ongoing.
Product safety and
7. Product Risk Our Products are designed, Positive
quality are important.
Safety and manufactured to meet all safety,
Proper safety
Quality and regulatory requirements
measurers are needed
to handle the product.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place
towards adopting the NGRBC Principles and Core Elements.

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1. a. Whether your entity’s policy/policies
cover each principle and its core elements
of the NGRBCs. (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
b. Has the policy been approved by the
Board? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
c. Web Link of the Policies, if available https://fact.co.in//images/upload/BRSR-Policy_120
2. Whether the entity has translated the
policy into procedures. (Yes / No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
3. Do the enlisted policies extend to your
value chain partners? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
4. Name of the national and international All fertilizer plants are certified for ISO 14001:2015
codes / certifications / labels / standards (e.g. and ISO 9001:2015. FACT Cochin Division is also
Forest Stewardship Council, Fairtrade,
Rainforest Alliance, Trustee) standards certified for ISO 45001:2018. FACT
(e.g.SA 8000, OHSAS, ISO, BIS) adopted by Udyogamandal Division is also certified for ISO
your entity and mapped to each principle. 50001:2018.

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 Business Responsibility & Sustainability Report

5. Specific commitments, goals and targets set Our company is committed to driving sustainability
by the entity with defined time lines, if any. and operational excellence through several
strategic initiatives. We prioritize optimum
resource utilization to ensure efficient and
sustainable use of materials and energy
equipment across all operations. To further our
environmental goals, we have plans to increase
our reliance on renewable energy sources, aiming
to significantly reduce our carbon footprint.
Specifically, we are dedicated to reducing our
Scope 1 and Scope 2 emissions, aligning with
global climate goals.
In addition, we are focused on reducing our overall
energy consumption by implementing energy-
efficient technologies and processes, while also
expanding our use of renewable energy. We are
exploring and planning to shift to greener fuels in
the near future, which will further enhance our
environmental performance and reduce our
reliance on fossil fuels. FACT endeavours to
identify, assess and manage environmental &
social risks, and its impact across its entire product
lifecycle. We believe in fostering a diverse and
inclusive workforce, and we have plans to improve
our workforce diversity through retention
strategies. The company intends to conduct
training and skill development programs,
especially in the ESG space that makes the
employee future-ready and enhance their
employability level in the long run, without
discrimination. Our commitment to maintaining a
safe workplace is unwavering, with a goal to
achieve zero harm across all our operations. The
Company plans to engage in raising consumer
awareness on product safety, responsible
consumption including guidance on reuse and
recycling of the products & materials.
Furthermore, we recognize the importance of
responsible supply chain management. To this
end, we plan to conduct comprehensive
assessments of our top suppliers in the future to
ensure they meet our standards for sustainability
and ethical practices. Through these
commitments, we aim to create a positive impact
on the environment, our employees, and the
communities we serve, while driving sustainable
growth and innovation.

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Annual Report 2023 - 24

6. Performance of the entity against the specific FACT has taken a significant step by switching the
commitments, goals and targets along-with fuel used in the driers of its phosphate plants from
reasons in case the same are not met. furnace oil to Re-gassified Liquefied Natural Gas
(RLNG). This transition to RLNG is not only
environmentally friendly but also improves
combustion efficiency. To ensure sustained
operation and energy savings, FACT has planned
several capital expenditure (CAPEX) projects. These
projects include expanding the capacity of the
Ammonia Plant, Phosphoric Acid Plant, and Sulphuric
Acid Plant. FACT intends to fund these projects
internally, demonstrating its commitment to long-
term growth. FACT has a rich history, celebrating 76
years of producing fertilizers and serving the nation.
Throughout its existence, FACT has consistently met
the fertilizer needs of farmers. Despite facing
challenges, the company is now focused on
sustainable growth, adopting industry best practices.
By ensuring a stable supply of fertilizers, FACT
contributes to national food security.
FACT's FY24 ESG Performance is as below:
-Scope I emission decreased by 20.21% over FY23
-CSR spend has increased by 295% over FY23
-Workforce diversity has increased by 3.6% over
FY23

7. Statement by director responsible for the FACT is strategically positioned to achieve sustained
business responsibility report, highlighting ESG and consistent growth through the implementation
related challenges, targets and achievements of various capital expenditure (CAPEX) projects.
(listed entity has flexibility regarding the
placement of this disclosure) The Company is committed to integrating
Environmental, Social and Governance ('ESG')
principles into its businesses. The company is
committed to managing and mitigating risks through
the entire product lifecycle and improving its value
offerings to meet the needs and aspirations of all its
stakeholders. The company has a policy on Product
Responsibility and Sustainability. The Company
endeavours to ensure responsible and sustainable
business operations across the entire supply chain-
sourcing, procurement, manufacturing, packaging,
transportation, marketing, and end-product use.
The company has a Business Responsibility and
Sustainable Development Policy which includes all
essential policies that fall under BRSR principles.
The Company is taking steps to reduce carbon
emissions and utilise renewable energy for its
operations. The feedstock and fuel have been
changed to RLNG, the green fuel.

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 Business Responsibility & Sustainability Report

8. Details of the highest authority responsible for

implementation and oversight of the Business Dr. Jayachandran K., Director (Technical)
Responsibility policy (ies).

9. Does the entity have a specified Committee of

the Board/ Director responsible for decision Yes, Dr. Jayachandran K., Director (Technical)
making on sustainability related issues? (Yes /
No). If yes, provide details.

10. Details of Review of NGRBCs by the Company:

Subject for Indicate whether review was undertaken Frequency

Review by Director / Committee of the Board/ (Annually/ Half yearly/ Quarterly/ Any
Any other Committee other – please specify)

P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance Senior management of the Company On a continuous basis
against above reviews the policies
policies and
follow up action
Compliance Compliance Certificate on laws applicable Half yearly
with statutory is provided by all the division heads.
requirements
of relevance to
the principles,
and,rectification
of any non-
compliances

11. Has the entity carried out independent assessment/ P1 P2 P3 P4 P5 P6 P7 P8 P9

evaluation of the working of its policies by an external
agency? (Yes/No). No
If yes, provide name of the agency.

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be
stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

a. The entity does not consider the Principles material to its

business (Yes/No)
b. The entity is not at a stage where it is in a position to
formulate and implement the policies on specified
principles (Yes/No)
Not Applicable
c. The entity does not have the financial or/human and
technical resources available for the task (Yes/No)
d. It is planned to be done in the next financial year
(Yes/No)
e. Any other reason (please specify)

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Annual Report 2023 - 24

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and
Core Elements with key processes and decisions. The information sought is categorized as “Essential” and
“Leadership”.
While the essential indicators are expected to be disclosed by every entity that is mandated to file this
report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher
level in their quest to be socially, environmentally and ethically responsible.
PRINCIPLE 1:- Business should conduct and govern themselves with integrity and in a
manner that is Ethical, Transparent and Accountable
Essential Indicators
1. Percentage coverage by training and awareness programme on any principles during the financial
year
Total number of training Topics / Principles covered under % of persons in
and awareness the training and its impact respective category
Segment
programmes held covered by the
awareness programme

Board of Directors 1 1. Orientation Programme for 33.33%

Functional Directors
Key Managerial 1 1. Orientation Programme for 25%
Personnel Functional Directors
Employees 177 1. E-procurement of Goods and 27.87%
service and related GFR Rules
2. Awareness on "Public Procurement"
3. Training program on " Vigilance
Administration & Procurement”
4. Advanced Training in “Vigilance
Investigation”
5. A Talk on “Vigilance”
6. 2 day Training program on Cyber
Hygiene and Security
7. Workshop on Procurement in
CPSE's
Workers 2 1. A Talk on Vigilance 0.23%

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in
proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial
institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the
basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations)
Regulations, 2015 and as disclosed on the entity's website):

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 Business Responsibility & Sustainability Report

Monetary
Name of the
regulatory/ Has an
NGRBC enforcement Amount (In Brief of appeal
Principle agencies/ INR) the Case been preferred?
judicial (Yes/No)
institutions
Penalty/ Fine Nil Nil Nil Nil NA
Settlement Nil Nil Nil Nil NA
Compounding Fee Principle 2022-23 = Rs.3,25,000/- Short weighment, No
Legal Metrology
9 Dept. 2023-24 = Rs.4,60,000/- smudged MRP,
month & year of
manufacture

National Stock Exchange of India Ltd., is imposing a fine of Rs. 5000 per day for non-compliance regarding
Board Composition. FACT is a Central PSU and the Directors are appointed based on directions from the
Govt. of India. FACT has therefore requested NSE to refrain from penal actions.

NON - MONETARY
Name of the
regulatory/ Has an
NGRBC Brief of appeal
enforcement
Principle agencies/ the Case been preferred?
judicial (Yes/No)
institutions

Imprisonment Nil Nil Nil NA

Punishment Nil Nil Nil NA

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where
monetary or non-monetary action has been appealed.

Case details Name of regulatory/ enforcement

agencies/ judicial institutions
Nil Nil

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available,
provide a web link to the policy.
FACT maintains a dedicated Vigilance Department. This department plays a crucial role in enhancing the
organization's quality management system by fostering a corruption-free environment. Its primary
objective is to encourage every individual within FACT to perform at a high level, aligning with the
company's Vision and Mission. Additionally, FACT has implemented a Whistle Blower Policy to further
promote transparency and accountability. This policy allows employees to report any unethical practices
or wrongdoing without fear of reprisal. Overall, the Vigilance Department and Whistle Blower Policy
contribute to FACT's commitment to excellence and integrity. Web link for accessing the policy is
https://fact.co.in//images/upload/Vigil-Mechanism_46.pdf

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5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption.
FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Directors Nil Nil
KMP Nil Nil
Employees Nil Nil
Workers Nil 1

6. Details of complaints with regard to conflict of interest

FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints Nil Nil Nil Nil
received in relation to issues
of Conflict of Interest of the
Directors
Number of complaints Nil Nil Nil Nil
received in relation
to issuesof Conflict
of Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action
taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts
of interest. Nil
8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the
following format:

FY 2023-24 FY 2022-23
(Current Financial Year) (Previous Financial Year)
Number of days of accounts payable 51.7 32.6

9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers, and related parties
along-with loans and advances & investments, with related parties, in the following format:

FY 2023-24 FY 2022-23
Parameter Metrics (Current Financial Year) (Previous Financial Year)

Concentration a. Purchases from trading houses as 84.97% 95.31%

of Purchases % of total purchases
b. Number of trading houses where 959 844
purchases are made from
c. Purchases from top 10 trading 41.48% 86.10%
trading houses

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 Business Responsibility & Sustainability Report

Concentration a. Sales to dealers/ distributors as 100% 100%

of Sales % of total sales
b. Number of dealers / distributors 5802 5521
to whom sales are made
c. Sales to top 10 dealers/distributors 6.58% 6.12%
as % of total sales to dealers /
distributors
Shares of a. Purchases (Purchases with related parties/ Rs. 1,92,827.50 Rs. 2,74,484.36
RPTs in total purchases)
b. Sales (Sales to related parties/ total sales) Rs. 4,355.68 Rs. 5,037.50
c. Loans & advances (Loans & advances given NA NA
to related parties / total loans and advances)
d. Investments ( Investments in related parties NA NA
/ total investments made)

Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial
year

Total number of Topics / principles % of value chain the partners

awareness covered under training covered (by value of business
programmes held done with such partners) under
the awareness programme

1. Dealer Training Value Chain Partners (dealers) of about 600

Programs members were provided awareness training on
fertiliser Control Order, Legal Metrology Act, Direct 27%
31 Nos &
Benefit Transfer, Integrated Fertiliser Management
Farmers Training
System, Point of Sale Machine , Balance use of
and Orientation Fertilisers , Credit Control System. In addition about
Programs (80 ) 16,600 farmers attended training on Package and
Practices. Use of Organics, Soil Health . Integrated
Pest and disease Management balanced, use of
latest variety of seeds and fertilisers etc.
2. Does the entity The Board of FACT consists of a well-balanced mix
have processes of executive and non-executive Directors. The
in place to avoid/ Chairman & Managing Director and three functional
manage conflict directors are appointed by the Government of India
of interests through the selection process of the Public
involving Enterprise Selection Board. Additionally, the part-
members of the time official Directors hold positions at the Joint
Board? (Yes/No) Secretary or Additional Secretary level in the
If Yes, provide Ministry of Chemicals and Fertilizers. Independent
details of the Directors are also appointed by the Government of
same India. Notably, these Directors are not required to
hold any shares in FACT. Details of other
directorships are communicated to the Board at the
time of appointment and at the start of each
financial year.

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Annual Report 2023 - 24

PRINCIPLE 2:- Business should provide goods and services in a manner that is
sustainable and safe.
Essential Indicators
1.Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
environmental and Social impacts of product and processes to total R&D and capex investments made by
the entity, respectively.

Current Financial Previous Financial Details of improvements in environmental

Year Year and social impacts

R&D Rs.57.62 lakhs Rs.35.67 lakhs a) Formulated the combination of Insecticidal

fertilizer (insecticides combined with
fertilizer). It is a preparation containing
organic substrate in combination with
inorganic pesticide which may serve both as
an organic fertilizer as well as an insecticide.
Such formulations are desirable in
agricultural due to the multiple benefits
conveyed via single application/system,
provide nutrients for the plant growth while
eliminating or controlling unwanted insects
that affect the health and vitality of the
desirable plants.
b) Formulated a simple and effective
composition for liquid Calcium Nitrate
fertilizer. Liquid calcium nitrate provides
nitrogen, essential for the growth and
development of crops, necessary for the
synthesis of chlorophyll as well as being a
major component of vitamins and energy
transfer systems of plants. Calcium helps to
reduce soil acidity.
c) As part of social responsibility, R&D imparts
guidance to B.Sc, B.Tech & M.Sc students.
Also imparts training to extend industrial
exposure on fertiliser sector.

Capex NA

a Does the entity have procedures in place

2. for sustainable sourcing? (Yes/No) Yes
b If yes, what percentage of inputs were sourced sustainably? 100%

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3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at
the end of life, for

(a) Plastics (including Safely disposed to authorized re-processors through MSTC Limited.
packaging)
(b) E-waste E-waste is being disposed safely through authorized re-processors
through MSTC Limited.
(c) Hazardous waste Hazardous waste is being disposed safely through authorized
re-processors approved by KSPCB and through MSTC Limited.
(d) Other waste. Bio-medical waste are safely disposed through IMA – IMAGE facility.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes / No). If
yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR)
plan submitted to Pollution Control Boards? If not, provide steps taken to address the same - No

Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for
manufacturing industry) or for its services (for service industry)? If yes, provide details in the following
format?

NIC Name of % of total Boundary for Whether conducted Results in public domain
Code Product Turnover which the Life by independent communicated (Yes/No) If yes,
/Service contributed Cycle Perspective / external agency provide the web-link.
Assessment was (Yes/No)
conducted

NO

2. If there are any significant social or environmental concerns and/or risks arising from production or
disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or
through any other means, briefly describe the same along-with action taken to mitigate the same.
Name of Product / Service Description of the risk / concern Action Taken

Not applicable in view of answer to 1 above

3. Percentage of recycled or reused input material to total material (by value) used in production (for
manufacturing industry) or providing services (for service industry).

Recycled or re-used input material to total material

Indicate input material
FY 2023-24 Current Financial Year FY 2022-23 Previous Financial Year

Ammonium Sulphate 0.06% 0.36%

NP 20:20:0:13 0.01% 0.08%

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4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused,
recycled, and safely disposed, as per the following format:

FY 2023-24 Current Financial Year FY 2022-23 Previous Financial Year

Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed

Plastics
(including packaging) 0 0 0 0 0 65.71 MT
E-waste 0 0 0 0 0 0.2 MT
Hazardous waste 0.24 MT 1.3 MT 297.855 MT 0.16 MT 2.25 MT 810.27 MT
Other waste 0 0 0.005 MT 0 0 0.003 MT

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product
category

Indicate product category Reclaimed products and their packaging materials as % of total products sold in
respective category

NA

PRINCIPLE 3 :- Businesses should respect and promote the well-being of all employees, including
those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of employees

Category % of employees covered by

Health Accident Maternity Paternity
Day care
Total (A)
Insurance Insurance benefits Benefits
facilities
Number % (B/A) Number % (C/A) Number % (D/A) Number % (E/A) Number % (F/A)
(B) (C) (D) (E) (F)
Permanent Employees
Male 563 563 100 563 100 NA 0 Nil 0 Nil 0
Female 72 72 100 72 100 72 100 NA 0 Nil 0
Total 635 635 100 635 100 72 11.34 Nil 0 Nil 0
Other than Permanent employees
Male 39 39 100 39 100 NA 0 Nil 0 Nil 0
Female 7 7 100 7 100 7 100 NA 0 Nil 0
Total 46 46 100 46 100 7 15.21 Nil 0 Nil 0

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 Business Responsibility & Sustainability Report

b. Details of measures for the well-being of workers

Category % of employees covered by

Health Accident Maternity Paternity
Day care
Total (A)
Insurance Insurance benefits Benefits
facilities
Number % (B/A) Number % (C/A) Number % (D/A) Number % (E/A) Number % (F/A)
(B) (C) (D) (E) (F)
Permanent Employees
Male 859 859 100 859 100 NA 0 Nil 0 Nil 0
Female 29 29 100 29 100 29 100 NA 0 Nil 0
Total 888 888 100 888 100 29 3.27 Nil 0 Nil 0
Other than Permanent workers
Male 592 592 100 592 100 NA 0 Nil 0 Nil 0
Female 120 120 100 120 100 120 100 NA 0 Nil 0
Total 712 712 100 712 100 120 16.83 Nil 0 Nil 0

c. Spending on measures towards well-being of employees and workers (including permanent and other
than permanent) in the following format

FY 2023-24 Current Financial Year FY 2022-23 Previous Financial Year

Cost incurred on well-being measures

as a % of total revenue of the company 0.42 0.31

2. Details of retirement benefits, for Current FY and Previous Financial Year.

Benefits FY - 2023-2024 FY - 2022-2023
Current Financial Year Previous Financial year
No of employees No of workers Deducted and No of employees No of workers Deducted and
covered as a % covered as a % deposited with covered as a % covered as a % deposited with
of total of total workers the authority of total of total workers the authority
employees (Y/N/NA) employees (Y/N/NA)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI* 0 0 Y 0 23.96% Y
Others- 100% 100% Y 100% 100% Y
Please
specify -
GMC**
* Number of employees / workers covered under ESI is taken as per the data for the month of March
** GMC (Group Mediclaim Policy) :- Option for permanent employees and permanent workers to continue
GMC after retirement on payment of premium as applicable.
3. Accessibility of workplaces
The premises / offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being
taken by the entity in this regard. - Yes
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act,
2016? If so, provide a web-link to the policy. - Yes

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5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent Employees Permanent Workers
Gender Return to work rate Retention rate Return to work rate Retention rate
Male NA NA NA NA
Female 100% 100% 100% 100%
Total 100% 100% 100% 100%

6. Is there a mechanism available to receive and redress grievances for the following categories of
employees and worker? If yes, give details of the mechanism in brief.

Yes/No
Categories of Employees
(If Yes, then give details of the mechanism in brief)
Permanent Workers Yes, Comprehensive Employee Grievance redressal
Mechanism is in operation to redress the grievances of
employees
Other than Permanent Workers Yes, Comprehensive Employee Grievance redressal
Mechanism is in operation to redress the grievances of
employees
Permanent Employees Yes, Comprehensive Employee Grievance redressal
Mechanism is in operation to redress the grievances of
employees
Other than Permanent Employees Yes, Comprehensive Employee Grievance redressal
Mechanism is in operation to redress the grievances of
employees

URL for Grievance redress policy – http://192.168.20.129/HRM/Grievance-Management-System.pdf

7. Membership of employees and worker in association(s) or unions recognized by the listed entity.

FY - 2023 - 24 FY 2022 - 23
Current Financial Year Previous Financial year

Total No of % (B / A) Total No of % (B / A)
employees / employees employees / employees
Category workers in /workers in workers in /workers in
respective respective respective respective
category (A) category, who category (A) category, who
are part of are part of
associations or associations or
union (B) union (B)

Total Permanent
Employees 635 576 90.71% 617 560 90.76%
Male 563 512 90.94% 549 500 91.07%
Female 72 64 88.89% 68 60 88.24%
Total Permanent
Workers 888 888 100% 929 929 100%
Male 859 859 100% 888 888 100%
Female 29 29 100% 41 41 100%

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8. Details of training given to employees and workers

Category FY_2023 - 24 FY_2022 - 23

Current Financial Year Previous Financial Year
Total (A) On Health and On skill Total (D) On Health and On skill
safety measures upgradation safety measures upgradation
No. % No. % No. % No. %
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)
Employees
Male 563 109 19.36% 306 54% 602 93 15.45% 80 13.29%
Female 72 14 19.44% 58 81% 76 9 11.84% 14 18.42%
Total 635 123 19.37% 364 57% 678 102 15.04% 94 13.86%
Workers
Male 859 151 18% 186 22% 888 36 4% 0 0%
Female 29 0 0% 24 83% 41 0 0% 2 4.88%
Total 888 151 17% 210 24% 929 36 4% 2 0.22%

9. Details of performance and career development reviews of employees and worker:

Category FY_2023-24 FY_2022-23

Current Financial Year Previous Financial Year

Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)

Employees
Male 563 563 100% 549 549 100%
Female 72 72 100% 68 68 100%
Total 635 635 100% 617 617 100%
Workers
Male 859 859 100% 888 888 100%
Female 29 29 100% 41 41 100%
Total 888 888 100% 929 929 100%

10. Health and safety management System:

a. Whether an occupational Yes. The Occupational Health and Safety Management System
health and safety encompasses several critical aspects:
management system Safety of Process Plants and Equipment: This involves ensuring that
has been implemented the design, operation, and maintenance of process plants and
by the entity? (Yes/ No). equipment adhere to safety standards.
If yes, the coverage such
Health and Safety of Employees and Workers: The system focuses on
system?
safeguarding the well-being of all personnel within the organization,
promoting a healthy work environment.
Safe Transportation and Storage of Hazardous Chemicals: Proper
handling, transportation, and storage of hazardous substances are
essential to prevent accidents.

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Risk Identification and Assessment: The system systematically

identifies and evaluates risks to mitigate potential harm.
Safety Policies and Procedures: Clear guidelines and protocols are
established to maintain safety standards.
Safety Performance Monitoring and Assessment: Regular
assessments track safety performance and identify areas for
improvement.
Employee Training and Awareness: Training programs ensure that
employees are well-informed about safety practices.
Incident Reporting and Investigation: Prompt reporting and thorough
investigation of incidents contribute to continuous improvement.
Emergency Preparedness and Response: The system prepares for
emergencies and outlines effective response procedures.
b. What are the processes Work-related hazards are identified and managed through a well-
used to identify work- established work permit system. For high-risk tasks like work at
related hazards and height, demolition, and critical erection, Job Safety Analysis (JSA) is
assess risks on a routine prepared. Hazard Identification and Risk Assessment (HIRA) have
and non-routine basis by been conducted across all departments, and control measures have
the entity? been suggested to minimize risks. Routine safety inspections occur at
each work site to identify hazards, and yearly safety audits by internal
and external authorities ensure prompt rectification of any identified
hazards.
c. Whether you have Yes
processes for workers to
report the work related
hazards and to remove
themselves from such
risks. (Y/N)
d. Do the employees/ worker Yes
of the entity have access
to non occupational
medical and healthcare
services? (Yes/ No)

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11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2023-24 FY 2022-23

Current Financial Year Previous Financial Year

Lost Time lnjury Frequency Rate Employees 0.535 3.75

(LTIFR) (per one million-person hours
worked)
Workers 0 45.535

Total recordable work-related injuries Employees 14 32

Workers 11 30
No. of fatalities Employees 0 0
Workers 0 0
High consequences work-related injury Employees 0 0
or ill-health (excluding fatalities) Workers 0 1

12. Describe the measures taken by the entity to ensure a safe and healthy work place.
a) Safety Inspections
In order to prevent accidents in the plants, Safety Inspections were carried out by safety committee members
every quarter of the year. Unsafe actions of workers and unsafe conditions in the plants were highlighted in the
reports. The reports along with actions to be taken were sent to concerned departments for corrective action.
b) Near Miss & Accident reporting
A system for near miss reporting was introduced in the year 2019 and Near miss reporting boxes are placed in all
prominent locations of factory along with near miss reporting form both in Malayalam and English.
c) Safety induction Training
Safety induction training is being imparted to all newly joined employees, Trainees, contract workers and visitors.
Refreshment training and work specific trainings are also provided. Safety training cards are issued to all contract
labours including truck drivers. Safety violations noticed by the safety officers are noted in the training card.
d) Safety Sign Boards
Safety Sign Boards describing required mandatory PPEs to be worn by all before entering plant premises, other
work specific safety warnings and safety practices are displayed in prominent locations of the factory.
e) Risk Assessments Study of plants
Hazard Identification and Risk Assessment (HIRA) of all critical routine and non-routine jobs has been carried out.
Measures to eliminate high hazards identified in HIRA have been taken by changing the method of execution of
the job and by providing job specific Personal protective equipments. HIRA register has been prepared for all
plants and departments. Regular updation of the register is being done by the concerned department heads.
f) Truck safety Inspection
Safety Audit of Acid and ammonia trucks are carried out before issuing entry pass and training was given to the
crew by safety officers on yearly basis. All documents, physical condition of trucks, display of information panels,
availability of proper PPEs and competency of drivers are ensure during the inspection.

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13) Number of Complaints on the following made by employees and workers

FY 2023 - 24 FY 2022 - 23
Current Financial Year Previous Financial year
Pending Pending
Filed during resolution at Filed during resolution at
the year the end of Remarks the year the end of Remarks
year year
Working Conditions Nil Nil Nil NA NA
Health & Safety 87 52 Recommendati 74 32 Recommendatio
on and n and direction
direction of of Dept. of F & B
Dept. of F & B are considered
are considered for the
for the complaints
complaints

14. Assessments for the year

% of your plants and offices that were assessed (by entity or
statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100 %
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any)
and on significant risks / concerns arising from assessments of health & safety practices and working
conditions.
For high-potential incidents and accidents, the Divisional Head will constitute a committee to investigate
and recommend corrective/preventive actions. Corrective actions suggested or recommended by Safety
Officers based on their observations during routine safety inspections will also be implemented.
Fixed lifeline systems have been installed in the Phosphoric Acid Plant and on product godown roofs. A
tender has been invited for installing fixed lifeline systems on all remaining roofs. Additional walkie-talkie
communication sets have been provided in plants for emergency communication, following a
recommendation from the accident investigation committee formed after the last reportable accident.
Regular safety inspections and audits are conducted to identify hazards, assess risks, and implement
necessary corrective actions to address them.

Leadership Indicators
1. Does the entity extend Yes
any life insurance or any
compensatory package
in the event of death of
(A) Employees (Y/N) (B)
Workers (Y/N).
2. Provide the measures
undertaken by the entity Documentary evidence of payment of statutory dues are collected
to ensure that statutory from the value chain partners while releasing the payments due to
dues have been them
deducted and deposited
by the value chain
partners.

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3. Provide the number of employees / workers having suffered high consequence work related
injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been are
rehabilitated and placed in suitable employment or whose family members have been placed in
suitable employment:
No. of employees/workers that rehabilitated
and placed in employment or whose
Total no. of affected employees/ workers members have been placed in suitable
employment
FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23
(Current Financial (Previous Financial (Current Financial (Previous Financial
Year) Year) Year) Year)

Employees 0 0 0 0
Workers 2 0 0 0

4. Does the entity provide No

transition assistance
programs to facilitate
continued employability
and the management of
career endings resulting
from retirement or
termination of
employment? (Yes/ No)

5) Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners)
that were assessed
Health and safety practices The company is planning to carry out assessment for their
Working Conditions value chain partners in the upcoming financial years.

6. Provide details of any NA

corrective actions taken
or underway to address
significant risks /
concerns arising from
assessments of health
and safety practices and
working conditions of
value chain partners.

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Annual Report 2023 - 24

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1) Describe the processes for identifying key NIL

stakeholder groups of the entity: Identified based
on operations of the Company.

2) List stakeholder groups identified as key for your entity and the frequency of engagement
with each stakeholder group

Whether identified Channels of Frequency of engagement Purpose and scope

Stakeholder Group
as Vulnerable & communication (Annually/ Half yearly/ of engagement
Marginalized (Email, SMS, Newspaper, Quarterly / others – including key
Group (Yes/No) Pamphlets, Advertisement, please specify) topics and concerns
Community Meetings, Notice raised during
Board, Website), Other such engagement

Employees/workers Yes Grievance Others Resolving Issues

mechanism
Trade Unions Yes Grievance Others Resolving Issues
mechanism
Suppliers / Vendors No Grievance Others Resolving Issues
/ Dealers / mechanism /
Shareholders Dealers Meet

Leadership Indicators

1. Provide the processes for "The Management of the Company is entrusted with the Chairman
consultation between and Managing Director under the supervision of the Board. All the
stakeholders and the stakeholders can meet or consult with the CMD or the officials
Board on economic, authorized by the CMD. The feedback / requirements based on such
environmental, and social consultation is reported to the Board. The Company has always
topics or if consultation is maintained that a constant and proactive engagement with key
delegated, how is stakeholders enabling the Company to better communicate its
feedback from such strategies and performance.
consultations provided to A continuous engagement helps align expectations, thereby enabling
the Board. the Company to better serve its stakeholders."

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2. Whether stakeholder Yes. Inputs received from workers or employees are incorporated in
consultation is used to the safety policy of the Company. Inputs from the suppliers or vendors
support the identification are helpful for sourcing the materials. Feedback from the dealers are
and management of considered while framing the marketing policy. The direction of
environmental, and social Pollution Control Board is being followed. The Company is engaged on
topics (Yes / No). evolving various aspects of ESG and hence stakeholder interactions
If so, provide details of are important. The Company also makes it a regular exercise to
instances as to how the engage with stakeholders and incorporate their feedback into the
inputs received from company's strategy.
stakeholders on these
topics were incorporated
into policies and activities
of the entity.
3. Provide details of The Company's CSR activities focus on the disadvantaged, vulnerable
instances of engagement and marginalised segments of society as prescribed in the DPE
with, and actions taken Guidelines issued by the Govt. of India. CSR activities are mentioned
to, address the concerns separately in the Annual report.
of vulnerable / margina-
lized stakeholder groups.

Principle 5:- Business should respect and promote human rights

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the
entity, in the following format:

Category FY 2023 - 24 FY 2022 - 23

Current Financial Year Previous Financial year

Total (A) No. of % (B / A) Total (C) No.of % (C / D)

employees/ employees/
workers workers
covered (B) covered (D)

Employees
Permanent 635 50 8% 617 68 11.02%
Other than
permanent 46 0 0% 61 0 0%
Total Employees 681 50 7% 678 68 10.03%
Workers
Permanent 888 5 0.56 929 2 0.22
Other than
permanent 712 3 0.42 665 12 1.8
Total Workers 1600 8 0.5 1594 14 0.88

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Annual Report 2023 - 24

2. Details of minimum wages paid to employees and workers, in the following format.

FY 2023 - 24 FY 2022 - 23
Current Financial Year Previous Financial year

Total (A) Equal to More than Total (D) Equal to More than
Category Minimum Minimum Minimum Minimum
Wage Wage Wage Wage

No. % No. % No. % No. %

(B) (B /A) (C) (C / A) (E) (E /D) (F) (F / A)
Employees
Permanent 635 0 0 635 100 617 0 0 617 100
Male 563 0 0 563 100 549 0 0 549 100
Female 72 0 0 72 100 68 0 0 68 100
Other than Permanent 46 0 0 46 100 61 0 0 61 100
Male 39 0 0 39 100 53 0 0 53 100
Female 7 0 0 7 100 8 0 0 8 100
Workers
Permanent 888 0 0 888 100 929 0 0 929 100
Male 859 0 0 859 100 888 0 0 888 100
Female 29 0 0 29 100 41 0 0 41 100
Other than Permanent 712 0 0 712 100 665 0 0 665 100
Male 592 0 0 592 100 557 0 0 557 100
Female 120 0 0 120 100 108 0 0 108 100

3) Details of remuneration/salary/wages, in the following format

a. Median remuneration / wages:

Male Female
Number Median remuneration/ salary/ Number Median Remuneration/ salary/
wages of respective category wages of respective category
in Rs per month in Rs per month
Board of Directors 3 *282657.90 Nil Nil
(BoD)
Key Managerial 3 *282657.90 1 172037.64
Personnel
Employees other than 560 17,43,780.91 71 14,95,740.18
BoD KMP**
Workers** 859 7,72,459.04 29 5,98,064.84

Note: Only permanent employees and permanent workers are considered.

* CMD (Additional Charge) is paid from his parent organisation. Hence, neither considered for
count nor for median calculation.
Only Basic pay and DA in March 2024 are considered for salary.
** Gross pay of these employees for the year 2023-24 is considered for median calculation.

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b. Gross wages paid to females as % of total wages paid by the entity, in the following format:

FY 2023-24 FY 2022-23
Current Financial Year Previous Financial Year

Gross wages paid to females as % of total wages 10.75% 8.21%

4. Do you have a focal point

(Individual/ Committee)
responsible for Yes
addressing human rights
impacts or issues
caused or contributed to
by the business?
(Yes/No)
5. Describe the internal FACT is dedicated to conducting its business with utmost
mechanisms in place to professionalism, honesty, integrity, and ethical behaviour. The
redress grievances company has established a comprehensive code of conduct that
related to human rights applies to all employees. Additionally, FACT ensures a safe and
issues. positive work environment for its staff. If any concerns are raised
through letters or emails, the relevant department or division within
the company promptly addresses them.

6) Number of Complaints on the following made by employees and workers

FY 2023 - 24 FY 2022 - 23
Current Financial Year Previous Financial year

Filed during Pending Pending

resolution at Remarks Filed during resolution at Remarks
the year the year
the end of year the end of year
Sexual Harassment 1 0 - Nil Nil -
Discrimination at Nil NIL Nil
Work Place Nil - -
Child Labour Nil Nil - NIL Nil -
Forced Labour / Nil NIL Nil
Involuntary Labour Nil - -
Wages Nil Nil - 2 1 -
Other human rights
related isuues 3 3 - 5 3 -

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7) Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, in the following format:
FY 2023 - 24 FY 2022 - 23
Current Financial Year Previous Financial year

Total Complaints reported under Sexual Harassment on of

Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 (POSH) 1 0
Complaints on POSH as a % of female employees 0.99% 0
/ workers

Complaints on POSH upheld 1 0

8 Mechanisms to prevent
adverse consequences
to the complainant in Yes. The Grievance Redressal Committees are constituted with
discrimination and sufficient members from the vulnerable/marginalized groups
harassment cases

9 Do human rights Yes

requirements form part
of your business
agreements and
c o n t r a c t s ?
(Yes/No)
10) Assessments for the year:
% of your plants and offices that were assessed
(by entity or statutory authorities or third parties)

Child labour 100 %

Forced/involuntary labour 100 %
Sexual harassment 100 %
Discrimination at workplace 100 %
Wages 100 %
Others – please specify 100 %

11 Provide details of any

corrective actions taken
or underway to address No significant risks/concerns was noticed or reported during the
significant risks / assessments.
concerns arising from
the assessments at
Question 9 above.

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Leadership indicators

1 Details of a business FACT has always seen Human Rights as inherent part of all its policies.
process being modified / The company has not had to alter its policy / process in order to align
introduced as a result of with human rights and grievances. As an institution with the right
addressing human rights professional flair, the company is highly committed to the principle of
grievances/complaints. equal opportunity for all employees and also believes in fabricating an
environment which is free of discrimination. The company is
committed to avoid all sorts of discrimination or harassment based on
race, colour, religion, or belief, social or ethnic origin, sex, age,
physical, mental or sensory disability, HIV Status, sexual orientation,
gender identity and/ or expression, marital status, family medical
history or genetic information, family or parental status. The code of
conduct lays down guidelines that facilitate the right environment in
the company. The company nurtures its employees with the right
ethics and code of conduct by organizing various training programs
designed for the enhancement and development of the workforce.

2. Details of the scope and The company upholds the principle of Human Rights in all its dealings.
coverage of any Human
rights due-diligence
conducted.

3. Is the premise/office of Yes

the entity accessible to
differently abled visitors,
as per the requirements
of the Rights of Persons
with Disabilities Act,
2016?

4) Details on assessment of value chain partners:

% of value chain partners (by value of business
done with such partners) that were assessed

Sexual Harassment NIL

Discrimination at workplace NIL
Child Labour NIL
Forced Labour/Involuntary Labour NIL
Wages NIL
Others – please specify NIL

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5 Provide details of any NA

corrective actions taken
or underway to address
significant risks /
concerns arising from
the assessments at
Question 4 above.
PRINCIPLE 6 - Business should respect and make efforts to protect and restore the environment.

Essential Indicators
1. Details of total energy consumption (in GJ) and energy intensity, in the following format:
Parameter FY 2023 - 24 FY 2022 - 23
(Current Financial Year) (Previous Financial Year)
From renewable sources
Total electricity consumption (A) 12568.3 6830.50
Total fuel consumption (B) - -
Energy consumption through
other sources (C) - -
Total energy consumed from renewable
sources (A+B+C)
From non-renewable sources
Total electricity consumption (D) 784506.6 570894.6
Total fuel consumption (E) 1714453.9 2148943.8
Energy consumption through
other sources (F) - -
Total energy consumed from
non-renewable sources (D+E+F) 2498960.6 2719838.0
Total energy consumed
(A+B+C+D+E+F) 2511528.8 2726669.0
Energy intensity per rupee of turnover (Cr.)
(Total energy consumed/ revenue from operations) 496.8 439.9
Energy intensity per rupee of turnover
adjusted for Purchasing Power Parity (PPP) - -
(Total energy consumed / Revenue from
operations adjusted for PPP)
Energy intensity in terms of - -
physical output
Energy intensity (optional) - - -
per employee
N o t e : I n d i c a t e i f a n y i n d e p e n d e n t a s s e s s m e n t / No independent assessment
evaluation/assurance has been carried out by an external agency? /evaluation / assurance has been
(Y/N) If yes, name of the external agency carried out by an external agency
on energy consumption

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2. Does the entity have any Yes

sites / facilities identified
as designated Ammonia Complex is a designated consumer (Registration No.
consumers (DCs) under FTZ0029KL). PAT cycle II target was 0.959 Million Tonne of Oil
the Performance, Equivalent (MTOE). During the assessment year (2018-2019) plant
Achieve and Trade (PAT)
Scheme of the was unproductive and hence exempted due to “low capacity
Government of India? utilization”. Unit is included in the new PAT cycle by Bureau of Energy
(Y/N) If yes, disclose efficiency Petrochemical plant has been notified as the designated
whether targets set consumer on 7th Sep 2022. Base line data collection for assigning the
under the PAT scheme energy reduction targets need to be carried by BEE
have been achieved. In
case targets have not
been achieved, provide
the remedial action
taken, if any.

3. Provide details of the following disclosures related to water, in the following format:

Parameter FY 2023 - 24 FY 2022 - 23

(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water 8369141 8963996
(ii) Groundwater - -
(iii) Third party water (Tanker) - -
(iv) Seawater / desalinated water - -
(v) Water from Municipal Corporation 752 -
(vi) Water Bottles / Aquaguard
(Ltr X number of bottle) (KL), Others - 2717169.2 2598865
Rain water harvesting in lake, Periyar
Valley Irrigation Project (PVIP), Water
Treatment Plant
Total volume of water withdrawal 11087062.2 11562861
(in kilolitres) (i + ii + iii + iv + v + vi)
Total volume of water consumption 11087062.2 11562861
(in kilolitres)
Water intensity per rupee of 2139.3 1865.6
turnover (Cr.) (Total Water consumption /
Revenue from operations )

Water intensity per rupee of turnover

adjusted for Purchasing Power Parity - -
(PPP)
(Total water consumption / Revenue from
operations adjusted for PPP)
Water intensity in terms of physical output - -
Water intensity (optional) – per employee - -

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Note: Indicate if any independent assessment/ evaluation / No independent assessment

assurance has been carried out by an external agency? (Y/N) If yes, /evaluation / assurance has been
name of the external agency carried out by an external agency.

4. Provide the following details related to water discharged:

Parameter FY 2023 - 24 FY 2022 - 23

(Current Financial Year) (Previous Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) Surface water
No treatment - -
With treatment–please specify level of treatment - -
(ii) Ground water
No treatment - -
With treatment–please specify level of treatment - -
(iii) Sea water
No treatment - -
With treatment–please specify level of treatment - -
(iv) Sent to third parties
No treatment - -
With treatment–please specify level of treatment - -
(v) Others
No treatment - -
With treatment–please specify level of treatment 2731379 2853850
(Back water stretch and rivers)
Total water discharged (in kilolitres)* 2731379 2853850

*For FEW and FEDO plants, water is discharged through the authorized outlet and effluent water is
treated in the process and used in offices

Note: Indicate if any independent assessment/ evaluation/assurance has

been carried out by an external agency? (Y/N) If yes, name of the external No
agency

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If No

yes, provide details of its coverage and implementation.

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6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter Please FY 2023 - 24 FY 2022 - 23

specify unit (Current Financial Year) (Previous Financial Year)
NOx MT 0.00 0.00
Particulate matter (PM) MT 110.5 150.5
Sox MT 426.5 366.3
Persistent organic
pollutants (POP) Nil 0.00 0.00
Volatile organic
compounds (VOC) Nil 0.00 0.00
Hazardous air pollutants (HAP) Nil 0.00 0.00
Others – please specify
(Ammonia, Fluoride, Acid Mist
and CO) MT 206.1 346.4

N o t e : I n d i c a t e i f a n y i n d e p e n d e n t a s s e s s m e n t / No independent assessment/
evaluation/assurance has been carried out by an external agency? evaluation/assurance has been
(Y/N) If yes, name of the external agency carried out by an external agency

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the
following format.
Parameter unit FY 2023 - 24 FY 2022 - 23
(Current Financial Year) (Previous Financial Year)
Total Scope 1 emissions Metric tonnes 99492.5 124696.3
(Break-up of the GHG into of CO2
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, equivalent
if available)
Total Scope 2 emissions Metric tonnes
of CO2 155811.7 113386.0
(Break-up of the GHG into CO2, CH4,
equivalent
N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 1 and Scope 2 emissions 50.51 38.4
per rupee crores of turnover (Total
Scope 1 and Scope 2 GHG emissions /
Revenue from operations)
Total Scope 1 and Scope 2 emission
intensity per rupee of turnover NA NA
adjusted for Purchasing Power Parity
(PPP) (Total Scope 1 and Scope 2 GHG
emissions / Revenue from operations
adjusted for PPP)
Total Scope 1 and Scope 2 emission
intensity in terms of physical output NA NA
Total Scope 1 and Scope 2 emission
intensity (optional) – per employee

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N o t e : I n d i c a t e i f a n y i n d e p e n d e n t a s s e s s m e n t / No independent assessment/
evaluation/assurance has been carried out by an external agency? evaluation/assurance has been
(Y/N) If yes, name of the external agency carried out by an external agency

8. Does the entity have any project related The company has transitioned its boilers and furnaces to
to reducing Green House Gas emission? use eco-friendly and energy-efficient fuel, specifically
If Yes, then provide details. RLNG. This change has led to a reduction in greenhouse
gas emissions. Additionally, the production processes
within the unit have been designed to further minimize
emissions. The company is also exploring the use of
renewable energy for its operations.

9. Provide details related to waste management by the entity, in the following format:
Parameter FY 2023 - 24 FY 2021 - 23
(Current Financial Year) (Previous Financial Year)
Total Waste generated (in metric tonnes)
Plastic waste (A) - -
E-waste (B) 0.46 0.59
Bio-medical waste (C) 0.01 0.01
Construction and demolition waste (D)** 7200 100
Battery waste (E) 0.66 1.15
Radioactive waste (F) - -
Other Hazardous waste (G)
waste (Oil-soaked cotton waste, DG filters, 869.84 1369.85
paint cans, chemical cans, paint residue,
oil sludge, DG chimney soot, coolant oil
and used oil) . Please specify, if any.
Spent Catalyst, Sulphur muck, Waste oil,
Lead scrap, ETP sludge, OLD DAMAGED &
BROKEN GRINDERS, MS/SS MACHINING /
CUTTING CHIPS
Other Non-hazardous waste (H) - -
Please specify, if any. (Break-up by
composition i.e. by materials relevant
to the sector)
Total (A+B+C+D+E+F+G+H) 8070.90 1471.50
Waste intensity per rupee of turnover
(Total waste generated / Revenue from
operations) 1.59 0.24
Waste intensity per rupee of turnover
adjusted for Purchasing Power Parity
(PPP)
(Total waste generated / Revenue from - -
operations adjusted for PPP)
Waste intensity in terms of physical output
Waste intensity (optional) – the relevant
metric may be selected by the entity

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For each category of waste generated, total waste recovered through recycling, re-using or
other recovery operations (in metric tonnes)
Category of waste
(i) Recycled 0.46 0.59
(ii) Re-used - -
(iii) Other recovery operations Nil Nil
Total 0.46 0.59
For each category of waste generated, total waste disposed by nature of disposal method (in
metric tonnes)
Category of waste
(I) Incineration 8070.51 1471.01
(ii) Landfilling - -
(iii) Other disposal operations - -
Total 8070.51 1471.01

*Note: The company is in the process of monitoring waste generation (though in minor quantities)
and further having a robust disposal mechanism to minimise waste sent to landfill.
** The demolition of plant has increased the construction and demolition waste.

N o t e : I n d i c a t e i f a n y i n d e p e n d e n t a s s e s s m e n t / No independent assessment/
evaluation/assurance has been carried out by an external agency? evaluation/assurance has been
(Y/N) If yes, name of the external agency carried out by an external agency

10. Briefly describe the waste manage FACT has implemented a comprehensive solid waste
ment practices adopted in your management plan. Non-hazardous solid waste is
establishments. Describe the strategy collected from its point of generation and stored in
adopted by your company to reduce designated on-site facilities. Metal scrap, e-waste, and
usage of hazardous and toxic plastic waste are managed through the Metal Scrap
chemicals in your products and Trading Corporation (MSTC). Bio-medical waste is safely
disposed of via the IMA – IMAGE facility. Used batteries
processes and the practices adopted
and other waste are handled by authorized re-processors
to manage such wastes through a buy-back policy. Hazardous waste categories
include spent catalysts, sulphur muck, waste oil, lead
scrap, and ETP sludge, all of which are safely disposed of
by authorized re-processors. Waste oil is recycled for use
as lubricant in conveyor idlers and other machinery.

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.)
where environmental approvals / clearances are required, please specify details in the following format:

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S. No Location of operations/offices Type of operations Whether the conditions of environmental approval /

clearance are being complied with? (Y/N) If no,
the reasons thereof and corrective action taken, if any

No
12. Details of environmental impact assessments of projects undertaken by the entity based on applicable
laws, in the current financial year:
Name and brief EIA Notification Date Whether conducted by Results communicated Relevant
details of project Number independent external in public domain Web link
agency (Yes / No) (Yes / No)
Nil Nil Nil Nil Nil Nil
13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as
the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act,
Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in
the following format:
S. No Specify the law / regulation Provide Any fines / penalties / action taken by Corrective action
/ guidelines which was details of regulatory agencies such as pollution taken, if any
not complied with the noncompliance control boards or by courts
Yes
Leadership indicators
1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
Not Applicable. None of the areas are under water-stress regions.
For each facility / plant located in areas of water stress, provide the following information:
(I) Name of the area
(ii) Nature of operations
(iii) Water withdrawal, consumption and discharge in the following format:

Parameter FY 2023 - 24 FY 2022 - 23

(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water - -
(ii) Ground water - -
(iii) Third party water - -
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) - -
Total volume of water consumption (in kilolitres) - -
Water intensity per rupee of turnover
(Water consumed / turnover) - -
Water intensity (optional) – the relevant metric - -
may be selected by the entity

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Water discharge by destination and level of treatment (in kilolitres)

(I) Into Surface water
No treatment - -
With treatment–please specify level of treatment - -
(ii) Into Ground water
No treatment - -
With treatment–please specify level of treatment - -
(iii) Into Sea water
No treatment - -
With treatment–please specify level of treatment - -
(iv) Sent to third parties
No treatment - -
With treatment–please specify level of treatment - -
(v) Others
No treatment - -
With treatment–please specify level of treatment - -
Total water discharged (in kilolitres)* - -

N o t e : I n d i c a t e i f a n y i n d e p e n d e n t a s s e s s m e n t / No independent assessment/
evaluation/assurance has been carried out by an external agency? evaluation/assurance has been
(Y/N) If yes, name of the external agency carried out by an external agency

2. Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter unit FY 2023 - 24 FY 2022 - 23
(Current Financial Year) (Previous Financial Year)
Total Scope 3 emissions Metric
(Break-up of the GHG into tonnes
CO2, CH4, N2O, HFCs,
PFCs,SF6, NF3, if available) of CO2
equivalent
The company is in process of tracking these emissions
Total Scope 3 emissions per
rupee of turnover in the upcoming years.

Note: Indicate if any independent assessment/ evaluation / No independent assessment/

assurance has been carried out by an external agency? (Y/N) If yes, evaluation/assurance has been
name of the external agency carried out by an external agency

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3. With respect to the ecologically sensitive areas reported at Question Not applicable to FACT
10 of Essential Indicators above, provide details of significant direct &
indirect impact of the entity on biodiversity in such areas along-with
prevention and remediation activities.

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please
provide details of the same as well as outcome of such initiatives, as per the following format:

Sl. No Initiative Details of the initiative Outcome of the initiative

undertaken (Web-link, if any, may be provided
along-with summary)
1. Switching over The fuel used for combustion in the furnace a) Reduction in pollutants
to greener fuel. of NP 20:20:0:13 plants were changed over discharge to the
from Furnace oil to green, eco-friendly and environment.
energy efficient fuel – RLNG. b) Reduction in fuel
consumption Study in
progress.
Using Ammonium Ammonium Sulphate purge liquor Reduces the effective raw
2. material consumption.
Sulphate purge generated in Ammonium Sulphate Plant is
liquor of another used as input to substitute a part of Handling and disposal cost
plant as raw Ammonia & sulphuric acid requirement in
material input for of the purge liquor is
product Factamphos Manufacture. saved.
manufacture.
3. Recycle of Waste Waste oil generated from rotating Consumption of fresh
oil generated in equipments is used as lubricant in conveyor lubricants is reduced.
all plants. idlers and other machinery

4. Purchase of Renewable energy is purchased through Reduces Carbon foot print

renewable PTC to substitute a part of the power of the organization
energy. requirement.
A part of effluent from NP plant is recycled Reduces fresh water
5. Recycle of for diluting the strong Phosphoric acid and
effluent water. for scrubbing gases in knock out chamber. A consumption
part of effluent from PAP plant is recycled to
attack tank in PAP

6. Study for Study is in progress to develop a fertiliser

utilisation of named a blended fertiliser FACTHOME
sludge generated 10:10:10, from effluent treatment plant's
from effluent
treatment plant sludge, with a nutrient content of 10:10:10
for production of (NPK) and minor quantities of secondary
blended fertiliser nutrients, as a value added product.

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5. Does the entity have a business FACT is having Business Continuity and Disaster
continuity and disaster management Management plan. Disaster Management Plan has been
plan? Give details in 100 words/ web prepared with objectives such as i) identifying the hazards
link. or disaster potential scenario. ii) localizing any accidents
that may occur and if possible contain them to minimize
the harmful effects of accidents iii) providing adequate
details of the technical and organizational procedures,
detailed the emergency response procedures and
measures to minimize damage to life, property and
environment. iv) providing detailed procedures for
evacuation, rescue and treatment of casualties. v)
defining clearly the roles and responsibilities of those
involved in emergency response. vi) making a realistic
assessment of resources both human and material
required in handling the emergency in house and
additional resources/skills that may be required under
mutual aid from neighbouring industries/ installations or
other external agencies. vii) ensuring that manpower,
equipment including communication and personal
protective equipment, material and financial resources
necessary to carry out on-site emergency plan are readily
available for immediate activation of the plan in the event
of accident. viii) safeguarding victims by evacuating them
to a safer place and rehabilitating the affected persons.
FACT has a well-defined On-Site Emergency Plan (OSEP)
that outlines the procedures, mechanisms, and
resources available to respond to various kinds of
emergencies.
The OSEP includes the following elements:
1. Risk assessment study reports which identifies the
potential hazards and risk faced by the
organization and surrounding communities
2. Communication protocol for communicating with
employees stake holders and the general public
3. Safe evacuation routes and procedures for employees
and customers
4. Continuity of essential operations during and after a
disaster
5. Emergency response team with duties and
responsibilities
6. Recourses available
7. Regular training and mock drills
8. Review and updates

6. Disclose any significant adverse impact No adverse impact to the environment arising from Value
to the environment, arising from the Chain of the Company since necessary actions have
value chain of the entity. What already been taken in the process design of operating
mitigation or adaptation measures have plants.
been taken by the entity in this regard

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7. Percentage of value chain partners (by

value of business done with such Nil
partners) that were assessed for
environmental impacts.

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in
a manner that is responsible and transparent
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations. 5
b. List the top 10 trade and industry chambers/ associations (determined based on the total
members of such body) the entity is a member of/ affiliated to.

S.No. Name of the trade and industry Reach of trade and industry
chambers / associations chambers/associations
(State/National)
1 The Fertiliser Association of India National
2 Standing Conference of Public Enterprises National
3 All India Management Association National
4 Kerala State Productivity Council State
5 National Safety Council – Kerala chapter National

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct
by the entity, based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken
Nil Nil Nil
Leadership Indicators
1. Details of public policy position advocated by the entity
S. No. Public policy Method resorted Whether Frequency of Web link if
advocated for such advocacy information review by Board available
available in public (Annually/ Half
domain yearly/
Quarterly /Others
please specify)
Nil Nil Nil Nil Nil Nil

PRINCIPLE 8 :- Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws,
in the current financial year.
Name and brief SIA Notification Date of Whether conducted by Results communicated Relevant
details of No. notification independent external in public domain Web link
project agency (Yes / No) (Yes / No)
Nil

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2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being
undertaken by your entity, in the following format

S. No. Name of Project State District No of project % of PAFs Amount paid

for which affected covered by to PAFs
R&R is families R&R in the FY
ongoing ( PAF) (In INR)

Nil

3. Describe the mechanisms to receive and redress grievances of the community.

FACT is committed to ethical business practices and prioritizes community interests. The company has
established a system to receive and address community complaints. Anyone with a grievance can directly
contact FACT through personal representation, correspondence, or email. Upon receiving a complaint, the
relevant division within the company promptly addresses the issue.
4. Percentage of input materials (inputs to total inputs by value) sourced from suppliers

Parameter FY 2023 - 24 FY 2022 - 23

Current Financial Year Previous FinancialYear
Directly sourced from MSMEs/ small producers 15.60% 2.32%
Directly Sourced within India 34.64% 76.29%

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or
workers employed on a permanent or non-permanent / on contract basis) in the following locations, as % of
total wage cost

Location FY 2023 -24 FY 2022 -23

Current Financial Year Previous FinancialYear
Rural 0% 0%
Semi-urban 0% 0%
Urban 100% 100%
Metropolitan 0% 0%

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact
Assessments (Reference: Question 1 of Essential Indicators above):

Details of negative social impact identified Corrective action taken

Nil Nil

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2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
S. No. State Aspirational District Amount spend (in INR)
NIL

3. a . D o y o u h a v e a p r e f e r e n t i a l
procurement policy where you give
preference to purchase from suppliers Yes
comprising marginalized /vulnerable
groups? (Yes/No)
b. From which marginalized /vulnerable MSEs including those owned by SC/ST and women
groups do you procure? entrepreneurs
c. What percentage of total procure
10%
ment (by value) does it constitute?

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by
your entity (in the current financial year), based on traditional knowledge:
S. No. Intellectual Property based Owned/ Acquired Benefit shared Basis of calculating
on traditional knowledge (Yes/No) (Yes / No) benefit share

1 Nil Nil Nil Nil

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property
related disputes wherein usage of traditional knowledge is involved.

Name of Authority Brief of Case Corrective action taken

NIL NIL NIL

6. Details of beneficiaries of CSR Projects:

S. CSR project No. of persons benefitted % of beneficiaries from
No. from CSR Projects vulnerable and
marginalized groups
1 Supply of drinking water at Manjummel 25000 50%
2 Distribution of Computer Tablets to students 24 50%
3 Setting up of Community Fitness Centre in Bidar,
Karnataka 5600 75%
4 Setting up of 3 Smart Anganwadi in Ernakulam 100 75%
5 Medicated Mosquito Nets for distribution among
farmers 40000 100%
6 CUSAT- Public Quiz Programme
For School & Collage 200 50%
7 Cleanliness drive at Muppathadam 1200 50%
8 KMA Scholarship, sponsorship and infrastructure 53 75%
9 Hiring of Kisan drones and drone pilots 255 75%
10 Providing drones under PM-MKDK Scheme
and training Mahila drone pilots 100 75%
11 Purchase of Books for PMKSK 25000 75%
12 CUSAT, establishment of Chair professor in
Safety Dept. of School of Engineering 3000 50%

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PRINCIPLE 9. Businesses should engage with and provide value to their consumers in a responsible
manner
Essential Indicators

1. Describe the mechanisms in place to FACT operates through a network of dealers who sell
receive and respond to consumer their products. Sales representatives from FACT regularly
complaints and feedback. engage with both dealers and customers. When
customers raise complaints or offer criticism, the process
is as follows:
Significant issues are escalated to higher authorities
within the organization. These might involve serious
product defects, service failures, or other critical matters.
The goal is to address major complaints promptly and
effectively to maintain customer satisfaction and uphold
the company's reputation.
Sales officers handle minor concerns directly. These
could include smaller issues, queries, or general feedback
from customers.
By addressing minor concerns promptly, FACT ensures a
positive customer experience and fosters goodwill.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnover
Environmental and social parameters relevant 100%
to the product
Safe and responsible usage 100%
Recycling and/or safe disposal 100%

3. Number of consumer complaint in respect of following:

FY 2023 - 24 Remarks FY 2022 - 23 Remarks

(Current Financial year) (Previous Financial year)
Received Pending Received Pending
during resolution at during resolution at
the year end of year the year end of year
Data Privacy NA 0 NA Nil Nil NA
Advertising NA 0 NA Nil Nil NA
Cyber-security NA 0 NA Nil Nil NA
Delivery of Products 10 0 All resolved 25 Nil All resolved
Quality of Products 7 0 NA Nil Nil NA
Restrictive Trade 0 0 NA Nil Nil NA
Practices
Unfair Trade Practices 0 0 NA Nil Nil NA
Other 13 0 Nil Nil Nil NA

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Annual Report 2023 - 24

4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall

Voluntary recalls Nil Nil
Forced recalls Nil Nil

5. Does the entity have a framework/ Yes. In IT Policy of the Company cyber security and
policy on cyber security and risks related mitigating risk related to data privacy is laid out. It can be
to data privacy? (Yes/No) If available, accessed through the web link. https://fact.co.in/home/
provide a web-link of the policy. Dynamicpages?MenuId=185
6. Provide details of any corrective actions Regular Farmers (Consumers) meetings are being
taken or underway on issues relating to conducted and topics covered on Package of Practices on
advertising, and delivery of essential crop cultivation and quality of products used to be
services; cyber security and data privacy explained.
of customers; re-occurrence of
instances of product recalls; penalty /
action taken by regulatory authorities on
safety of products / services
7. Provide the following information
relating to data breaches:
a. Number of instances of data breaches Nil
b. Percentage of data breaches 0%
involving personally identifiable
information of customersc.
c. Impact, if any, of the data breaches. No impact

Leadership Indicators

1. Channels / Platforms where information Website of the Company www.fact.co.in

on products and services of the entity
can be accessed (provide web link, if
available).
2. Steps taken to inform and educate Conducted following Farmer Education Programs to
consumers about safe and responsible teach the farmers for balanced use of fertilisers and to
usage of products and/or services. convey the message for scientific recommendation of
fertilizers for various crops, issuing Soil Health cards
etc.
a) Agriculture seminar
b) Squad program
c) Soil sample collections
d) Agriculture Exhibition
e) Field Demonstration
f) Dealer Meet
3. Mechanisms in place to inform consu All information is updated on https://fact.co.in/home
mers of any risk of disruption / disco
ntinuation of essential services

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4. Does the entity display product Marketing survey are conducted with farmers during
information on the product over and Squad Program (Intensive Farmer contact program),
above what is mandated as per local meetings and seminar about satisfaction on using of
laws? (Yes/No/Not Applicable) If yes, product and the services provided. Direct feedback
provide details in brief. Did your entity collected from about 400 Farmers in Kerala. 10,000
carry out any survey with regard to Farmers connected through Whatsapp on awareness
consumer satisfaction relating to the broadcast messages.
major products / services of the entity,
significant locations of operation of the
entity or the entity as a whole? (Yes/No)

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Annual Report 2023 - 24

G VENUGOPAL KAMATH & Co.

CHARTERED ACCOUNTANTS
273, 3rd Floor, D.D. Vastra Mahal, Market Road, P.B. No. 1110, Kochi - 682 011.
Phone / Fax : 0484-2355482, 2366483, 2370482, 4027381. E-mail : [email protected]

INDEPENDENT AUDITORS’ REPORT

To the Members of The Fertilisers and Chemicals Travancore Limited

Report on the Audit of the Standalone Ind AS Financial Statements

OPINION
We have audited the accompanying Standalone Ind AS Financial Statements of THE FERTILISERS AND
CHEMICALS TRAVANCORE LIMITED (hereinafter referred to as “the Company”), which comprise the
Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive
Income), the statement of Cash Flows, the Statement of Changes in Equity for the year then ended and
notes to the Financial Statements, including a summary of the material accounting policies and other
explanatory information (hereinafter referred to as “the Standalone Ind AS Financial Statements”). These
Standalone Ind AS Financial Statements include financial schedules of five state offices of the Company
audited by the other auditors of the Company whose reports have been furnished to us by the Management
and our opinion in so far as it relates to the aforesaid state offices, is based solely on the reports of the other
auditors.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone Ind AS Financial Statements give the information required by the Companies Act, 2013 (''the
Act”), as amended in the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2024, the profit, total comprehensive income, its cash
flows and changes in equity for the year ended on that date.
Basis for Opinion
We have conducted our audit of the Standalone Ind AS Financial Statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Ind AS
Financial Statements section of our report. We are independent of the Company in accordance with the
'Code of Ethics' issued by the Institute of Chartered Accountants of India (“ICAI”)together with the ethical
requirements that are relevant to our audit of the Standalone Ind AS Financial Statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone Ind AS
Financial Statements.
Emphasis of Matter
1. We draw attention to Note No.36 of the Standalone Ind AS Financial Statements regarding the recovery
of subsidy/additional compensation by the Government of India amounting to Rs.24,558.89 lakhs.
2. We draw attention to Note No.5 of the Standalone Ind AS Financial Statements regarding the
recognition of deferred tax asset (net) amounting to Rs.10,266.78 lakhs on the unabsorbed depreciation
and carried forward business loss as per Income Tax Act, 1961 during the year ended March 31, 2024

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Our opinion is not modified in respect of the above matter.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the Standalone Ind AS Financial Statements of the current period. These matters were addressed in
the context of our audit of the Standalone Ind AS Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matters described below to be the key audit matters:

Sl No Key Audit Matter Auditors' Response

1 Accounting of subsidy income from Our principal audit procedures included the
Government of India under DBT Scheme: following:
Under Direct Benefit Transfer (DBT) scheme l Analysed the scheme framed by the
of Government of India (GoI), the Company Department of Fertilizers (DoF) notified
is entitled to receive subsidy only upon sale through Notification F. No.
of fertilizer by the dealer to the ultimate D(FA)/2016/DBT dated March 17, 2017.
beneficiary through Point of Sale (PoS) l Reviewed the agreement with dealers.
devices. However, the Company continues
l Reviewed the calculation of subsidy
to account subsidy as income at the time of
income and assessed the reasonableness
sale to dealers as in the earlier scheme,
of recoverability of subsidy receivable.
considering the reasonable certainty that the
sale will take place and subsidy will be l Considered the ageing of the stock with
received based on the industry practice and the dealers for which sales not reported in
past experience. Refer Note No 28 to the the Integrated Fertiliser Management
Standalone Ind AS Financial Statements. System and reviewed the approach
adopted by the Company.
l Verified compliance with Ind AS 20 on
'Accounting for Government Grants and
Disclosure of Government Assistance'.
l Verified that the method followed by the
Company is consistent on year to year
basis.

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Annual Report 2023 - 24

Sl No Key Audit Matter Auditors' Response

2 Property, Plant & Equipment: l We examined whether the Company has

Estimates of useful lives and residual value maintained proper records showing full
of Property, Plant and Equipment is a particulars, including quantitative details
significant area requiring Management and situation of Property, Plant &
judgment of estimates and application of Equipment.
accounting policies that have significant l Reviewed the report of the committee
effect on the amounts recognized in the that studied the Impairment of the assets.
Standalone Ind AS Financial Statements. l Reviewed the capitalisation made during
the year under review.
l Reviewed the valuation statement of the
assets held for sale.
l Reviewed the report on the physical
verification of Property, Plant and
Equipment carried out by the
Management and comments of the
branch auditors in their report regarding
physical verification conducted at depots/
zonal offices. The deficiencies in the
physical verification process are reported
in clause (i)(b) of Annexure A to this report.
l Reviewed the estimated useful life,
residual value of assets and verified the
depreciation workings.
l The deficiencies in the reconciliation of
land as per documents with the books of
accounts and consequent effect on the
verification of completeness and
correctness of the land are reported
inclause (i)(c)(iv) of Annexure A to this
report.

Information Other than the Standalone Ind AS Financial Statements and Auditors' Report
Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Annual Report including Directors' Report,
Management Discussion and Analysis, Report on Corporate Governance, Business Responsibility and
Sustainability Report but does not include the Standalone Ind AS Financial Statements and our Auditors'
Report thereon.
Our opinion on the Standalone Ind AS Financial Statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Ind AS Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether such other information is materially inconsistent with

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 Independent Auditors’ Report on the Financial Statements (Standalone)

the Standalone Ind AS Financial Statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.
The said other information is expected to be made available to us after the date of this audit report. When we
read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and shareholders.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of
the financial position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act read with Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
Standalone Ind AS Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, management is responsible for assessing the
Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditors' Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS Financial
Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these Standalone Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
l Identify and assess the risks of material misstatement of the Standalone Ind AS Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
l Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls
with reference to financial control system in place and the operating effectiveness of such controls.

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Annual Report 2023 - 24

l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
l Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to
the related disclosures in the Standalone Ind AS Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidences obtained up to the
date of our auditors' report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
l Evaluate the overall presentation, structure and content of the Standalone Ind AS Financial Statements,
including the disclosures, and whether the Financial Statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Ind AS Financial Statements that
individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable
user of the Standalone Ind AS Financial Statements maybe influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work and
(ii) to evaluate the effect of any identified misstatements in the Standalone Ind AS Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the Standalone Ind AS Financial Statements of the current period
and are therefore the key audit matters. We describe these matters in our auditors' report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
1. We did not audit the financial statements of five state offices of the Company included in the Standalone
Ind AS Financial Statements of the Company, whose financial schedules reflect total revenue of Rs.
2,32,835.97 lakhs for the year ended March 31, 2024, as considered in the Standalone Ind AS Financial
Statements and total assets of the state offices amounting to Rs.205.93 lakhs as at March 31, 2024. The
Company has submitted certain financial schedules which have been audited by other auditors whose
reports have been furnished to us by the Management and our opinion on the Standalone Ind AS
Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these
state offices and our report, in so far as it relates to the aforesaid state offices, is based solely on the
reports of other auditors.
2. Our opinion on the Standalone Ind AS Financial Statements, and our report on Other Legal and
Regulatory Requirements below, is not modified in respect of the above matters, with respect to our
reliance on the work done and the reports of the other auditors and financial schedules certified by the

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 Independent Auditors’ Report on the Financial Statements (Standalone)

Management, except on the limitation of scope reported by other auditors due to non-provision of the
trial balance of the state offices audited by them and their inability to ensure the correctness of the
financial schedules due to this.
3. Company has a system of obtaining balance confirmations from the customers and vendors. However,
only a few customers and vendors have responded with confirmation.
4. The Standalone Ind AS Financial Statements for the year ended March 31, 2023 were audited by another
firm of chartered accountants who vide their report dated May 5, 2023 expressed an unmodified opinion
on the Standalone Ind AS Financial Statements.
Our opinion is not modified in respect of the above matters
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2020 ('the Order'), issued by the Central
Government of India in terms of sub-section 11 of section 143 of the Act, we give in the “Annexure A”,
a statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable;
2. Based on verification of books of accounts of the company and according to information and
explanations given to us, we give in “Annexure B” a report on the directions issued by The Comptroller
and Auditor General of India in terms of sub-section (5) of Section 143 of the Companies Act, 2013.
3. The company does not have the required number of Independent Directors on its Board due to vacancy
arising out of end of term of the existing independent directors, from June 2019 onwards hence being
non-compliant with relevant Regulations of Securities and Exchange Board of India (Listing Obligation
and Disclosure Requirements) Regulations, 2015. A penalty has been levied on the Company for this
non-compliance.
4. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit except balance confirmations
mentioned in para 3 of Other Matters paragraph and portion of internal audit reports for the fourth
quarter.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books and returns generally adequate for the purpose of our
audit have been received from the state offices not audited by us.
c) The reports on the financial schedules of the five state offices of the Company audited under Section
143(8) of the Act by other auditors have been given to us and have been properly dealt with by us in
preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the
Cash Flows Statement and the Statement of Changes in Equity dealt with by this Report are in
agreement with the books of account and with the returns received from five state offices not
audited by us, subject to the limitation of scope by other auditors.
e) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015.
f) In view of exemption given vide notification no. G.S.R. 463(E) dated June 5, 2015, as amendedvide
notification no. G.S.R 582(E) dated June 13, 2017, issued by Ministry of Corporate Affairs,
provisions of Section 164(2) of the Act regarding disqualification of directors, are not applicable to
the Company.

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Annual Report 2023 - 24

g) With respect to the adequacy of the internal financial controls over financial reporting of the
Company with reference to the Standalone Ind AS Financial Statements and the operating
effectiveness of such controls, refer to our separate report in “Annexure C”.
h) Being a Government Company, the provisions of section 197 of the Act with respect to the matters
to be included in the Auditors' Report is not applicable vide notification no. G.S.R. 463(E) dated June
5, 2015, as amended vide notification no. G.S.R 582(E) dated June 13, 2017, issued by Ministry of
Corporate Affairs.
I) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in the
Standalone Ind AS Financial Statements. (Refer Note No. #48 of the Standalone Ind AS Financial
Statements).
ii. The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts as at
March 31, 2024.
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company during the year.
iv. (a) The Management has represented that, to the best of it's knowledge and belief, other than as
disclosed in the notes to the accounts, no funds have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the
company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) have been received by the Company
from any person or entity, including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that has been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
v. As stated in Note No. 16 to the Standalone Ind AS Financial Statements,
a) The final dividend proposed in the previous year declared and paid by the Company during the
year is in accordance with Section 123 of the Act, as applicable.
b) The Board of Directors of the Company have proposed final dividend for the year which is
subject to the approval of the members at the ensuing Annual General Meeting. The amount of
dividend proposed is in accordance with section 123 of the Act, as applicable.

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vi. Based on our examination which included test checks, the company has used an accounting
software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in
the software. Further, during the course of our audit we did not come across any instance of
audit trail feature being tampered with.

For G Venugopal Kamath & Co.

Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No:217021
UDIN:24217021BKERYU2928

Place: Kochi
Date: May 16, 2024

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Annual Report 2023 - 24

Annexure A to the Independent Auditors' Report of even date to the members of

The Fertilisers and Chemicals Travancore Limited on the Standalone Ind AS
Financial Statements for the year ended March 31, 2024
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' in the
Independent Auditors' Report of even date to the members of The Fertilisers and Chemicals Travancore
Limited (“the Company”) on the Standalone Ind AS Financial Statements as of and for the year ended
March 31, 2024]:
To the best of our information and according to the explanations provided to us by the Company and the
books of account and records examined by us in the normal course of audit, we state that
i. In respect of the Company's Property, Plant & Equipment and Intangible Assets:
a) A] The Company has maintained proper records showing full particulars, including quantitative
details and situation of the Property, Plant & Equipment, and relevant details of right of use
assets.
B] The Company has maintained proper records showing full particulars of intangible assets.
b) Major portion of the Property, Plant & Equipment have been stated to be physically verified by the
Management during the year and are not observed by us. However, we report that the physical
verification procedure needs to be strengthened. As explained to us, no material discrepancies
were noticed on such physical verification.
c) i] In our opinion and according to information and explanations given to us, the records examined
by us and based on the examination of the conveyance deeds/ registered sale deeds of
immovable properties included in Property, Plant & Equipment, we report that, out of the
1499.73 acres of land held by the Company, we have been informed that the original title deeds
of immovable properties of 768.34 acres of land are submitted to District Court, Ernakulam,
pledging 80.50 acres of land as a security against claim of a contractor (Refer Note #2.2 and
Note #48.2 to the Standalone Ind AS Financial Statements), title deeds of 374.65 acres of land
submitted to a bank for pledging 36.08 acres as security against credit facilities sanctioned
(confirmation received from bank for custody of title deeds for 361.66 acres only) (Refer Note
#2.8 to the Standalone Ind AS Financial Statements). We have verified the original title deeds of
freehold land having an aggregate area of 301.72 acres in the name of the Company.
ii] We have not verified the documents in respect of the remaining lands as the title deeds are not
available for our verification/ confirmations are not received.
iii] Further, based on the information provided to us, title deeds in respect of the following freehold
and leasehold immovable properties are not held in the name of the Company.
Whether Period held – Reasons for
Description Gross Held promoter, indicate Extend not being
of the carrying in the director or range, of land held in the
property value name of their relative where (in acres) name of
or employee appropriate the Company
Title deeds are
yet to be
Not registered/ received
Freehold land Not available Unascertained No ascertainable *40.00
due to dispute in
compensation.

Lease hold The lease

land (Right of Not available Cochin Port Trust No From 2014 **15.02 agreement not
use asset) yet executed.

*As provided by the management (Refer Note #2.4 to the Standalone Ind AS Financial Statements)
**The lease deed executed by the Company has expired and no fresh deed is executed till date, though the Company continues to
occupy the land and pay lease rentals (Refer Note #2.2 and #2C to the Standalone Ind AS Financial Statements)

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iv] The Company has not reconciled the value of the land as per the financial statements with the
cost of acquisition of the land as per the title deeds and the additional compensation paid for the
acquisition of land. Hence, we could not verify the completeness and correctness of the amount
disclosed in the financial statements with respect to these title deeds. However, the management
confirms that the said non reconciliation will not affect the financial position and financial
performance of the Company for the year ended March 31, 2024.
d) The Company has not revalued any of its Property, Plant and Equipment (including Right of Use
asset) and intangible assets during the year.
e) No proceedings have been initiated during the year or are pending against the Company as at
March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (as amended in 2016) and rules made thereunder.
ii. a] The inventories have been physically verified by the Management during the year. In our
opinion, the coverage and procedure of such verification is appropriate. No discrepancies in
excess of 10% or more in the aggregate for each class of inventory were noticed.
b] The Company has been sanctioned working capital limits in excess of Rs. 5 crores, in
aggregate, during the year, from banks on the basis of security of current assets. The
Company has confirmed that they are not required to submit any quarterly return/
statements with the bank in respect of this facility. Hence, we are unable to comment on its
agreement with the books of accounts of the company.
iii. During the year the company has not made investments in, not provided any guarantee or
security nor granted any loans or advances in the nature of loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships (LLP) or any other parties.
a] The Company has not made any investment in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured/ unsecured, to companies,
firms, LLPs' or any other parties during the year. Hence reporting under clause 3(iii)(a)(A) &
(B) of the Order is not applicable.
b] The Company has not made any investment in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured/ unsecured, to companies,
firms, LLPs' or any other parties during the year. Hence reporting under clause 3(iii)(b) of the
Order is not applicable.
c] The Company has not made any loans and advances in the nature of loans during the year
and hence reporting under clause 3(iii)(c) of the Order is not applicable.
d] The Company has not made any loans and advances in the nature of loans during the year
and hence reporting under clause 3(iii)(d) of the Order is not applicable.
e] The Company has not made any loans and advances in the nature of loans during the year
and hence reporting under clause 3(iii)(e)of the Order is not applicable.
f] The Company has not made any loans and advances in the nature of loans during the year
including any amounts of loans granted to promoters, related parties as defined in clause
(76) of section 2 of the Act and hence reporting under clause 3(iii)(f) of the Order is not
applicable.
iv. The Company has not made any loans, investments, guarantees, and security to the parties
covered under section 185 & 186 of the Act during the year. Accordingly, reporting under clause
3(iv) of the Order is not applicable.

124
Annual Report 2023 - 24

v. The Company has not accepted any deposit or amounts which are deemed to be deposits
within the meaning of section 73 to 76 of the Act and rules made thereunder. Hence, reporting
under clause 3(v) of the Order is not applicable. However, we report that advance from
customers includes an amount of Rs.803.51lakhs outstanding for more than 365 days as on the
balance sheet date. As per the information given by the Company, the goods/services are not
made against these advances due to non-placement of orders, disputes and other reasons.
Also, no order has been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal for any contravention in this regard.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under
section 148(1) of the Act and are of the opinion that, prima facie, the prescribed cost records
have been made and maintained by the Company. We have, however, not made a detailed
examination of the records with a view to determining whether they are accurate or complete
vii.In respect of statutory dues:
a) In our opinion, the Company has generally been regular in depositing undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income Tax, Goods and
Services Tax, Customs Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities during the year. As per the information and explanations given to us
and based on our verification of documents produced before us, there were no undisputed
amounts payable in respect of Provident Fund, Employees' State Insurance, Income Tax,
Goods and Services Tax, Customs Duty, Cess and other material statutory dues in arrears as
at March 31, 2024 for a period of more than six months from the date they became payable
except the following:

Sl No Name of the Nature of dues Amount Period to which

statute ( Rs in Lakhs)* amount relates
1 Income Tax Act, Income Tax and 146.54 1995-96 to 1998-99
1961 interest due thereon
2 Income Tax Act, Income Tax and 13.26 1997-98
1961 interest due thereon
3 Income Tax Act, Income Tax and 79.03 1995-96
1961 interest due thereon

*These are the amounts outstanding in the books as per the information given to us by the Company.
b) The details of statutory dues above in clause vii(a) which have not been deposited as at March 31, 2024,
on account of disputes are given below:

125
 Annexures to Auditors’ Report

Name of Nature of dues Demand-net Period to which Forum where

the statute of payment dispute relates dispute pending
(Rs in Lakhs)
Customs Act, Customs duty and 36.77 1990-92 Rectification application filed
1962 interest due thereon by the Department before
CESTAT
Kerala Value Kerala Value 94.60 2006-07 Special leave petition before
Added Tax Act, Added Tax Supreme Court by Commercial
2003 taxes Department, Govt. of Kerala
Central Excise Excise duty, interest and 9273.19 2010-11 to
penalty against utilization Customs, Excise and Service Tax
Act, 1944 2013-14 Appellate Tribunal, Bengaluru
of CENVATcredit against
duty payable.
Central Excise Excise duty, interest and 109.45 2003-04 High Court of Kerala
Act, 1944 penalty on shortage of
raw material written off.
Finance Act, Service tax and interest 349.54 2003-04 Customs, Excise and Service Tax
1994 thereon, up front Appellate Tribunal, Bengaluru
premium on shares
Finance Act, Service tax and interest 15.23 2012-13 Customs, Excise and Service Tax
1994 thereon on Appellate Tribunal, Bengaluru
training fee.
Madhya Pradesh Entry Tax 3.67 1980-84 Board of Revenue (Commercial
Entry Tax Tax Tribunal) Gwalior
Sales Tax Act, Sales Tax 90.09 1999 -00 and Deputy Excise and Taxation
Punjab 2000-01 Commissioner (Appeals) Patiala
Sales Tax Act, Sales Tax 63.00 1985-1992 Sales Tax Tribunal, Orissa,
Orissa Cuttack
Kerala Value Penalty u/s 47(6) of the 7.68 2011-12 Kerala Value added Tax Appellate
Added Tax Act, Kerala Value Added Tribunal, Ernakulam
2003 Tax, Act, 2003
Income Tax Act, Tax demand due to 1.32 2005-06 Commissioner of Income Tax
1961 disallowance (Appeals), Kochi
Income Tax Act, Interest on 2.94 2001-02 Commissioner of Income Tax
1961 Income Tax (Appeals), Kochi
Goods and Input tax credit under 81.29 2017-18 Appeal filed before first appellate
Services Tax Act, GST authority
2017
Goods and Transitional input tax 101.10 2017-18 Appeal filing under progress
Services Tax Act, credit under GST
2017
Employees' State Employer 0.16 1993 to 2002 Insurance court, Alappuzha
Insurance Act, contribution ESI
1948
Employees' State Employer 94 1984 to 1987 ESI Insurance Court
Insurance Act, contribution ESI
1948
Employees' Employer provident 2.10 – –
Provident Funds fund contribution
and Miscellaneous
Provisions Act,1952

126
Annual Report 2023 - 24

viii. There were no transactions relating to previously unrecorded income that have been surrendered
or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (43 of
1961).
ix. a] The Company has defaulted in repayment of loans or borrowings to Government of India.

Nature of Name of Amount not Whether No. of days Remarks,

borrowing, the lender paid on due principal delay or if any
including debt date (in lakhs) or interest unpaid
securities

Government Rs. 1,77,048.75* 734 Refer Note

Loan Principal
of India No. 22 (2) to the
Standalone
Government Interest 734 Ind AS Financial
Loan Rs. 1,67,311.07
of India Statements

*The Company has submitted a Financial Restructuring proposal for an amount of Rs.1,28,273
lakhs to Department of Fertilisers, Government of India. Principal includes Rs. 48,775.75 lakhs as
interest converted as loan.
b] The Company has not been declared willful defaulter by any bank or financial institutions or
government or any government authority.
c] The Company has not obtained any term loan during the year. However, we are informed that the
term loan taken on March 29th, 2016 from Government of India has been utilized for the purpose for
which it was disbursed.
d] On an overall examination of the financial statements of the Company, funds raised on short-
term basis have, prima facie, not been used during the year for long-term purposes by the
Company.
e] The company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures.
f] The company has not raised any loans during the year on the pledge of securities held in its
subsidiaries, associates or joint ventures.
x. a] The Company has not raised money by way of initial public offer or further public offer (including
debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not
applicable.
b] During the year, the Company has not made any preferential allotment or private placement of
shares or convertible debentures (fully or partly or optionally) and hence reporting under clause
3(x)(b) of the Order is not applicable.
xi. a] Based upon the audit procedures performed and according to the information and explanations
given to us, we report that no fraud by the Company or on the Company has been noticed or
reported during the year
b] No report under section 143(12) of the Act has been filed by us Auditors in Form ADT - 4 during
the year and till the audit report date.
c] The Company has confirmed that no whistle blower complaints have been received during the
year.

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 Annexures to Auditors’ Report

xii. The Company is not a Nidhi Company and hence reporting under of clause 3(xii)(a),(b),(c) of the
Order is not applicable to the Company and hence not commented upon.
xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act,
2013 with respect to applicable transactions with related parties and the details of the related party
transactions have been disclosed in the Standalone Ind AS Financial Statements as required by the
applicable accounting standards.
xiv. a] In our opinion, the Company has an internal audit system to commensurate with the size and the
nature of its business.
b] We have considered the furnished internal audit reports of the audits conducted for the year
under audit, issued to the Company during the year and till date, in determining the nature, timing,
and extent of our audit procedures. The portion of internal audit reports for the forth quarter which
have not been received are not considered.
xv. In our opinion, during the year Company has not entered into any non-cash transactions with its
Directors or persons connected with its directors, and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. a] In our opinion, the Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
b] In our opinion, the Company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the
Reserve Bank of India Act, 1934.
c] In our opinion, the Company is not a core investment company as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016 and accordingly reporting under clause 3(xvi)(c) of the
Order is not applicable.
d] In our opinion, there is no core investment company within the Group as defined in the Core
Investment Companies (Reserve Bank) Directions, 2016 and accordingly reporting under clause
3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financial year covered by our audit and the
immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during the year.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and
payments of financial liabilities, and our knowledge of the Board of Directors and Management
plans and based on our examination of the evidence supporting the assumptions, nothing has
come to our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that the Company is not capable of meeting its liabilities existing
at the date of balance sheet date as and when they fall due within a period of one year from the
balance sheet date except the Government of India loan including accrued interest of
Rs. 3,44,359.82 lakhs which has fallen due as on March 31, 2022 for which the Company has
submitted a restructuring plan which is pending approval. We, however, state that this is not an
assurance as to the future viability of the Company. We further state that our reporting is based on
the facts up to the date of the audit report and we neither give any guarantees nor any assurance
that all liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.

128
Annual Report 2023 - 24

xx. a] The Company has fully spent the required amount towards Corporate Social Responsibility (CSR)
and there is no unspent CSR amount for the year requiring a transfer to a Fund specified in
Schedule VII to the Companies Act or special account in compliance with the provision of sub-
section (6) of section 135 of the said Act.
b] In our opinion and according to the information and explanations given to us, with respect to
“ongoing projects”, there are no unspent amounts that are required to be transferred to a special
account, within a period of thirty days from the end of the financial year in compliance with section
135(6) of the said Act.
xxi. The CARO report relating to the joint venture FACT-RCF Building Products Limited has not been
issued by its auditor till the date of our audit report. Hence, we are not in a position to comment
upon clause 3(xxi) of the Order

For G Venugopal Kamath & Co.

Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No: 217021
UDIN:24217021BKERYU2928

Place: Kochi
Date: May 16, 2024

129
 Annexures to Auditors’ Report

Annexure B to the Independent Auditors' Report of even date to the members of

The Fertilisers and Chemicals Travancore Limited on the Standalone
Ind AS Financial Statements for the year ended March 31, 2024
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
Sl No C & AG Directions Observations/findings

1 Whether the company has system in Company has implemented SAP ERP system in order to
place to process all the accounting make information processing fully integrated and
transactions through IT system? centralised. It enables integrated processing of most of
If yes, the implications of processing of the accounting transactions.
accounting transactions outside IT However, certain accounting transactions relating to the
system on the integrity of the accounts subsidy income, valuation of inventory and certain year
along with the financial implications, if end provisions are processed directly in the financial
any, may be stated module. Such transactions and balances are adequately
supported by relevant documents maintained/
calculations maintained in excel workbooks. The
integrity of the accounts is taken care of and no financial
implications is envisaged.
2 Whether there is any restructuring of an According to information and explanations given to us,
existing loan or cases of waiver /write off during the year, there was no restructuring of existing
of debts/ loans/ interest etc. made by a loans of the Company or cases of waiver/write off of
lender to the company due to the debts /loans/interest etc. made by a lender to the
company's inability to repay the loan? If Company due to Company's inability to repay the loan.
yes, the financial impact may be stated. However, we report that the company submitted a
Whether such cases are properly financial restructuring proposal to Department of
accounted for? (In case, lender is a Fertilisers, Government of India with respect to the
Government company, then this Government of India loan and no decision has been taken
direction is also applicable for statutory by the Government on this proposal as on the balance
auditor of lender company). sheet date.
3 Whether funds (grants/subsidy etc.) According to information and explanations given to us,
received /receivable for specific during the year, the Company received freight subsidy
schemes from Central /State against the freight expenses incurred for the
Government or its agencies were transportation of the fertilizers from plant/ port to the
properly accounted for/utilized as per its depots and DBT subsidy against the ultimate sale of
term and conditions? List the cases of fertilizers to the beneficiaries.
deviation These funds are properly accounted as per Ind AS 20 and
utilized as per the terms and conditions of the scheme.

For G Venugopal Kamath & Co.

Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No: 217021
UDIN:24217021BKERYU2928

Place: Kochi
Date: May 16, 2024

130
Annual Report 2023 - 24

Annexure C to the Independent Auditors' Report of even date to the members of

The Fertilisers and Chemicals Travancore Limited on the Standalone Ind AS Financial
Statements for the year ended March 31, 2024
[Referred to in paragraph 4(g) under 'Report on Other Legal and Regulatory Requirements'
section of our report of even date]
Independent Auditors' Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of the FERTILISERS AND
CHEMICALS TRAVANCORE LIMITED ('the Company') as of March 31, 2024 in conjunction with our audit
of the Standalone Ind AS Financial Statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls
based on “the internal control over financial reporting” criteria established by the Company considering the
essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India
(“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to the company's policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the
Standards on Auditing, issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to
the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditors' judgment, including the assessment of the risks of
material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company's internal financial controls system over financial reporting
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company's internal
financial control over financial reporting includes those policies and procedures that:

131
 Annexures to Auditors’ Report

1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
Standalone Ind AS Financial Statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of the management and directors of the Company; and
3. Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could have a material effect on the
Standalone Ind AS Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company
has, in all material respects, reasonably adequate internal financial controls system over financial reporting
with reference to these Standalone Ind AS Financial Statements and such internal financial controls over
financial reporting with reference to these Standalone Ind AS Financial Statements were operating
effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by
the Company, considering the essential components of internal control stated in the Guidance Note issued
by the ICAI.

For G Venugopal Kamath & Co.

Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No: 217021
UDIN:24217021BKERYU2928

Place: Kochi
Date: May 16, 2024

132
Annual Report 2023 - 24

Office of the Director General of Audit,

(Agriculture, Food & Water Resources), New Delhi
Confidential
Report/2-245/DGA,CE/(AF&WR)/Acts/FACT/2024-25/2425
Date. 12.08.2024
To
The Chairman & Managing Director
The Fertilizers and Chemicals Travancore Limited
Eloor, Udyogamandal, Kochi 63 501, (Kerala)
Sub: Comments by the Comptroller and Auditor General of India on the financial accounts of The
Fertilisers and Chemicals Travancore Limited (Standalone) for the year ended 31 March 2024 under section
143(6)(b) of the Companies Act, 2013.
Sir,
NIL comments are being sent herewith on the financial accounts of The Fertilizers and Chemicals
Travancore Limited (Standalone) for the year ended 31 March 2024 under Section 143(6)(b) of the
Companies Act 2013.
Kindly acknowledge receipt.
Yours faithfully,
(Sd/-)
(Sandeep Lall)
Encl: as above Director General of Audit, Central Expenditure
(Agriculture, Food & Water Resources)

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)
(b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF THE
FERTILISERS AND CHEMICALS TRAVANCORE LTD FOR THE YEAR ENDED 31 MARCH 2024
The preparation of financial statements of The Fertilisers and Chemicals Travancore Ltd for the year
ended 31 March 2024 in accordance with the financial reporting framework prescribed under the
Companies Act,2013 is the responsibility of the management of the Company. The statutory auditor/
auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act is
responsible for expressing opinion on the financial statements under section 143 of the Act based on
independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act.
This is stated to have been done by them vide their Audit Report dated 16 May 2024.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
financial statements of The Fertilisers and Chemicals Travancore Ltd for the year ended 31 March
2024 under section 143(6)(a) of the Act. This supplementary audit has been carried out independently
without access to the working papers of the statutory auditors and is limited primarily to inquiries of the
statutory auditors and Company personnel and a selective examination of some of the accounting records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would give
rise to any comment upon or supplement to statutory auditors' report under section 143(6)(b) of the Act..
For and on the behalf of the Comptroller & Auditor General of India
(Sd/-)
Place: New Delhi (Sandeep Lall)
Date: 12.08.2024 Director General of Audit, Central Expenditure
(Agriculture, Food & Water Resources)
133
 Standalone Balance Sheet as at 31st March 2024

Balance Sheet as at 31st March 2024 ` In Lakh

Particulars Note As at As at
No. 31.03.2024 31.03.2023

ASSETS
NON CURRENT ASSETS
Property, Plant and Equipment 2 79,424.61 78,166.94
Capital Work in Progress 2A 22,205.05 10,459.40
Investment Property 2B 5.77 5.77
Right-of-use assets 2C 3,255.25 3,159.87
Other Intangible Assets 2D 27.43 45.68
Financial Assets
Investments
(i) Investments in Associates & Joint Ventures 3A 0.00 0.00
(ii) Other Investments 3B 13,036.93 11,286.23
Other Financial Assets 4 1,187.05 12,797.43
Deferred Tax Asset 5 10,266.78 -
Other Non Current Assets 6 3,246.46 1,518.09

132,655.33 117,439.41

CURRENT ASSETS
Inventories 7 114,315.67 97,812.18
Financial Assets
Trade Receivables 8 15,813.73 47,887.48
Cash and Cash equivalents 9 43,566.83 4,969.15
Other Bank Balances 10 224,365.46 233,815.25
Other Financial Assets 11 24,647.83 11,839.56
Current Tax Assets 12 160.54 182.85
Other current Assets 13 21,924.48 25,417.78

444,794.54 421,924.25

Non-current Assets held for Disposal 14 4,065.02 4,065.02

TOTAL ASSETS 581,514.89 543,428.68

EQUITY AND LIABILITIES

EQUITY
Equity Share Capital 15 64,707.20 64,707.20
Other Equity 16 72,866.72 62,667.17

137,573.92 127,374.37

134
Annual Report 2023 - 24

Balance Sheet as at 31st March 2024 ` In Lakh

Particulars Note As at As at
No. 31.03.2024 31.03.2023

LIABILITIES
NON CURRENT LIABILITIES
Financial Liabilities
Borrowings 17 0.00 510.00
Lease Liabilities 18 3,162.60 2,985.82
Other Financial Liabilities 19 29.36 30.74
Provisions 20 16,217.03 19,003.53
Other Non Current Liabilities 21 974.80 1,128.96

20,383.79 23,659.05
CURRENT LIABILITIES
Financial Liabilities
Borrowings 22 177,558.75 180,398.57
Lease Liabilities 23 301.03 276.68
Trade Payables 24
(i) Dues to Micro, Small and
Medium Enterprises 1,025.21 429.50
(ii) Dues to Others 47,359.79 37,372.87
Other Financial Liabilities 25 188,018.19 164,750.20
Other Current Liabilities 26 6,840.59 5,749.55
Provisions 27 2,453.62 3,417.89

423,557.18 392,395.26

TOTAL EQUITY AND LIABILITIES 581,514.89 543,428.68

Statement of Material Accounting Policies 1

Explanatory Information on Financial Statements 38-58

As per our Report of even date attached

For G. Venugopal Kamath & Co

Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

135
 Standalone Balance Sheet as at 31st March 2024

Statement of Profit and Loss for the year ended 31st March 2024
` In Lakh

Particulars Note Year ended Year ended

No. 31.03.2024 31.03.2023

I Revenue from Operations 28 505,492.61 619,814.73

II Other Income 29 20,311.62 13,557.68
III Total Income (I+II) 525,804.23 633,372.41
IV Expenses
Cost of Materials Consumed 30 299,344.71 417,898.38
Purchase of Stock in Trade 31 36,389.76 503.70
Changes in Inventories of Finished Goods,
Stock-in-Trade and Work-in-Progress 32 (5,065.94) (44,894.63)
Employee Benefit Expenses 33 28,393.99 28,818.53
Finance Cost 34 24,692.77 24,754.33
Depreciation and Amortization Expenses 2,2B,2C,2D 2,657.29 3,011.13
Other Expenses 35 110,482.63 141,997.76
Total Expenses (IV) 496,895.21 572,089.20
V Profit / (Loss) before exceptional items and tax (III - IV) 28,909.02 61,283.21
VI Exceptional Items (Income /(Expenses)) 36 (24,558.89) -
VII Profit / (Loss) before Tax (V+VI) 4,350.13 61,283.21
VIII Tax Expenses
Current Tax 0.00 0.00
Deferred Tax (10,266.78) 0.00
IX Profit / (Loss) for the Year after tax (VII-VIII) 14,616.91 61,283.21
X Other Comprehensive Income
(i) Items that will not be reclassified to Profit or loss
(a) Equity instruments through Other
Comprehensive Income-net change in fair value 1750.71 1497.77
(b) Remeasurement of defined benefit plan 16 303.58 (1,608.31)
(ii) Income Tax relating to items that will not be
reclassified to Profit or Loss 0.00 0.00
Other Comprehensive income for the year (X) 2,054.29 (110.54)
XI Total Comprehensive Income for the year (IX+X) 16,671.20 61,172.67
XII Earnings per Equity Share
Basic/Diluted per Equity Share ( ` ) 37 2.26 9.47
Statement of Material Accounting Policies 1
Explanatory Information on Financial Statements 38-58

As per our Report of even date Attached

For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

136
Annual Report 2023 - 24

Statement of Cash Flow for the year ended 31st March 2024
` In Lakh

Particulars Year ended Year ended

31.03.2024 31.03.2023
A Cash flow From Operating Activities
Net Profit / (Loss) before Tax 4,350.13 61,283.21
Adjustments for:
Depreciation / Impairment loss on Assets 2,657.29 3,011.13
Exceptional items 24,558.89 -
(Profit) / Loss on Sale of Asset (240.85) (838.28)
Interest Income (18,917.01) (11,226.71)
Dividend Income (45.36) (38.88)
Interest and Finance Charges 24,692.77 24,754.33
Provision for Doubtful Trade receivables 48.43 70.21
Provision for other doubtful receivables - 18,301.45
Provision for Bad / Doubtful Advances 58.54 2.32
Provision for Obsolescence (739.86) 2,394.53
Amount written off- Deferred Government Grants (0.93) (0.94)
Expenditure towards Corporate Social Responsibility 873.22 421.18
Change in Provision (3,446.99) (2,278.84)
Adjustment for Non cash items (69.82) (44.38)

Operating Profit before Working Capital Changes 33,778.45 95,810.33

Adjustment for :
Inventories (15,763.63) (34,027.01)
Trade Receivables 13,773.61 (30,434.71)
Loans - 3.28
Other Current Assets 3,434.76 2,547.23
Other Financial Assets (11,109.60) 45,552.51
Trade Payables 10,582.63 (19,995.75)
Other liabilities (5,997.70) 4,683.56
(5,079.93) (31,670.88)
Cash Generated from Operations 28,698.53 64,139.45
(Direct Tax Paid)/ Refund received 22.31 49.70
Corporate Social Responsibility (873.22) (421.18)
Net Cash from Operating Activities 27,847.62 63,767.97
B Cash Flow from Investing Activities
Acquisition of Property, plant and equipment/CWIP (15,469.98) (9,267.66)
Proceeds from the sale of Property, plant and equipment 256.53 1,154.86
Acquisition of intangible assets (13.87) (9.80)
(Investment in )/Withdrawal of Bank deposits 21,328.15 (76,053.20)
Interest Received 16,950.36 9,119.35
Dividend Received 45.36 38.88
Capital advances paid (1,728.37) (1,518.09)
Net Cash from investing Activities 21,368.18 (76,535.66)

137
 Statement of Cash Flow for the year ended 31st March 2024

Statement of Cash Flow for the year ended 31st March 2024
` In Lakh
Particulars Year ended Year ended
31.03.2024 31.03.2023
C Cash Flow from Financing Activities
Net Proceeds /(Repayment) of Working capital facilities
and short term loans (3,349.82) 386.24
Dividend paid (net of unclaimed) (6,460.71) -
Interest Paid (807.58) (855.32)
Net Cash from Financing Activities (10,618.11) (469.08)
Net increase in Cash and Cash Equivalent (A+B+C) 38,597.68 (13,236.77)
Cash and Cash Equivalent as at 1st April (Opening Balance) 4,969.15 18,205.92
Cash and Cash Equivalent as at 31st March (Closing Balance) 43,566.83 4,969.15
Closing Cash and Cash Equivalents
Represented By :
Cash on hand 2.27 2.66
Balances with banks 2,305.85 22.09
Deposit with Bank (less than 3 month maturity) 41,223.02 4,933.08
Interest accrued 35.69 11.32
Total 43,566.83 4,969.15
As per our Report of even date Attached
For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

Statement of changes in equity

A. Equity share capital
(1) 2023-24 (` In Lakh)
Particulars Balance as at Changes in Equity Share Restated Changes in equity Balance
01.04.2023 Capital due to prior balance share capital during as at 31.03.2024
period errors as at 01.04.2023 the year 2023-24
Equity shares 64,707.20 NIL 64,707.20 NIL 64,707.20
of `10 each
(2) 2022-23
Particulars Balance as at Changes in Equity Share Restated Changes in equity Balance
01.04.2022 Capital due to prior balance share capital during as at 31.03.2023
period errors as at 01.04.2022 the year 2022-23
Equity shares 64,707.20 NIL 64,707.20 NIL 64,707.20
of `10 each

138
 B. Other Equity

Sd/-
(1) 2023-24 ` In Lakh

Partner
Reserves & Surplus

Place: Kochi
Vivek N Shenoy

Date: 16.05.2024
Total

Income

Income

Particulars
money

Chartered Accountants
of a foreign operation
share warrants

Exchange differences on

Membership No.217021
(specify nature)

instruments
Annual Report 2023 - 24

Effective portion of
Cash Flow Hedges

Other Comprehensive

Capital Reserve
Revaluation Surplus
Other items of Other

Other Reserve **
Other Comprehensive

Share application
pending allotment
translating the financial statements

Retained Earnings

Remeasurement of

Securities Premium

compound financial
Equity Instruments through
Comprehensive Income
Money received against

Equity component of
Debt instruments through

defined benefit plans

Firm Registration No. 004674S

In terms of our Report Attached
Balance as at 01.04.2023 - - 2.64 - 50.78 (3,518.54) 55,212.62 - 10,919.67 - - - - - 62,667.17

For G. Venugopal Kamath & Co

Changes in accounting
policy or prior period errors - - - - - - - - - - - - - - -

Sd/-
Restated balance as at the
beginning of the current
reporting period - - - - 50.78 (3,518.54) 55,212.62 - 10,919.67 - - - - - 62,667.17

S Sakthimani
DIN 07482308
Total Comprehensive Income
for the current year - - - - (0.93) 303.58 14,616.91 - 1,750.71 - - -` - - 16,670.27
Dividend - - - - - - (6470.72) - - - - -` - - (6,470.72)
Transfer to retained earnings - - - - - - - - - - - -` - - -
Any other change - - - - - - - - - - - - - - -
Balance as at 31.03.2024 - - 2.64 - 49.85 (3214.96) 63,358.81 - 12,670.38 - - - - -` 72,866.72

**Fund received towards Indo EEC Fertiliser Education Project

Sd/-

139
Director (Finance) & Chief Financial Officer
(2) 2022-23 ` In Lakh
Reserves & Surplus

Susan Abraham
Company Secretary
Total

Income

Income

Particulars
money
of a foreign operation
share warrants

Exchange differences on
(specify nature)

instruments
Effective portion of
Cash Flow Hedges

Other Comprehensive

Capital Reserve
Revaluation Surplus
Other items of Other

Other Reserve **
Other Comprehensive

Share application
pending allotment
translating the financial statements

Retained Earnings

Remeasurement of

Securities Premium

compound financial
Equity Instruments through
Comprehensive Income
Money received against

Equity component of
Debt instruments through

defined benefit plans

Sd/-
Balance as at 01.04.2022 - - 2.64 - 51.72 (1910.23) (6070.59) - 9421.90 - - - - - 1495.44
Changes in accounting
policy or prior period errors - - - - - - - - - - - - - - -
Restated balance as at the

DIN 03498837
For and on behalf of the Board of Directors
beginning of the current

S.C. Mudgerikar
reporting period - - - - 51.72 (1910.23) (6070.59) - 9421.90 - - - - - 1495.44
Total Comprehensive Income
for the current year - - - - (0.94) (1608.31) 61,283.21 - 1,497.77 - - -` - - 61,171.73
Dividend - - - - - - - - - - - -` - -

Chairman & Managing Director

Transfer to retained earnings - - - - - - - - - - - -` - - -
Any other change - - - - - - - - - - - - - - -
Balance as at 31.03.2023 - - 2.64 - 50.78 (3518.54) 55,212.62 - 10,919.67 - - - - -` 62,667.17

**Fund received towards Indo EEC Fertiliser Education Project

 Notes forming part of the Standalone Financial Statements

NOTE 1
Statement of Significant Accounting Policies forming part of Financial Statements
for the Year ended 31st March 2024

1. Corporate Information
The Company is a Public Limited company domiciled in India and is incorporated under provisions of the
Companies Act applicable in India. The registered office of the Company is located at Eloor, Udyogamandal,
Ernakulam 683501,Kerala. The shares of the company are listed in National Stock Exchange of India
Limited.
The Company is engaged in the,
(i) Manufacturing and marketing of fertilizers and Petrochemicals,
(ii) Engineering Consultancy and Design and
(iii) Fabrication and Erection of Industrial Equipments.
2. Basis for preparation of financial statements
The standalone financial statements of the Company have been prepared in accordance with accounting
standards prescribed under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian
Accounting Standards) Rules as amended and other relevant provisions of the Act.
The standalone financial statements have been prepared under the historical cost and on accrual basis,
except for the following: -
• Certain financial assets and liabilities measured at fair value
• Certain provisions recognized using actuarial valuation techniques
• Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair
value less costs to sell.
• Defined benefit plans – plan assets measured at fair value
All amounts included in the standalone financial statements which also include the accompanying notes are
presented in Indian Rupees (`) and all values are rounded to the nearest lakh (` 00,000), except when
otherwise indicated.
2.1 Use of Estimate & Judgements
The preparation of financial statements in conformity with Ind AS requires management to make estimates,
judgements and assumptions. These estimates and judegments affect the application of accounting
policies and the reported amount of assets and liabilities, the disclosure of contingent assets and contingent
liabilities at the date of financial statements and the reported amount of revenue and expenses during the
period. Application of accounting policies that require critical accounting estimates involving judgements
have been disclosed in note (3). Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are made as management becomes
aware of change in circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and if material, their effects are disclosed in
the notes to the financial statements.
2.2 Current versus non-current classification
Any asset or liability is classified as current if it satisfies any of the following conditions:
i. the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;

140
Annual Report 2023 - 24

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;
iv. the asset/liability is expected to be realized/settled within twelve months after the reporting period;
v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting date;
vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date.
All other assets and liabilities are classified as non-current.
For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained
its normal operating cycle as twelve months. This is based on the nature of services and the time between
the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.
3. Significant Accounting Policies
I) Property Plant and Equipment
a) All Property, Plant and Equipment are stated at acquisition cost less accumulated depreciation /
amortization and cumulative impairment. Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognized
when replaced.
b) All repairs and maintenance are charged to the Statement of Profit and Loss during the period in which
they are incurred. Gains or losses arising on retirement or disposal of property, plant and equipment are
recognised in the Statement of Profit and Loss.
c) Land purchased/acquired and under the possession of the company are treated as free hold land.
d) Technical know-how / license fee relating to plant / facilities are capitalized as part of cost of the
underlying asset
e) Income approach is adopted for accounting Government grants related to depreciable Property, Plant
and Equipment. Grants utilized for acquisition of depreciable Property, Plant and Equipment are
treated as Deferred Government Grants and the same is recognized in the Statement of Profit and Loss
on a systematic and rational basis over the useful life of the assets.
f) Spares costing (Unit value of ‘10 lakh and above), and other components which are required to be
replaced at intervals, meeting the recognition criteria, have been classified as Plant and equipment and
are depreciated separately based on the useful lives of the corresponding item of the Property, Plant &
Equipment .
g) The present value of the expected cost for the decommissioning of an asset after its use is included in
the cost of the respective asset if the recognition criteria for a provision are met.
h) Revenue expenses exclusively attributable to projects incurred during construction period are
capitalized. However, such expenses in respect of capital facilities being executed along with
production / operation simultaneously are charged to revenue.
Financing cost incurred during construction period on loans specifically borrowed and utilized for projects is
capitalized upto the date of capitalization.
Financing cost, if any, incurred on general borrowings used for projects is capitalized at the weighted
average cost. The amount of such borrowings is determined after setting off the amount of internal
accruals, if any.

141
 Notes forming part of the Standalone Financial Statements

Depreciation
Depreciation is charged on Property, plant and equipment based on the useful life of assets, prescribed
under the Schedule II of the Companies Act 2013,except where a different life is determined based on
technical review. The Company has adopted Straight Line method of depreciation for all the categories of
assets, acquired on or after 01st April 2014.
Effective from 1st April, 2014, the Company has reassessed the useful life of its existing Property, plant and
equipment (considering component approach wherever necessary) and has charged depreciation over the
remaining useful lives, after retaining residual value, in accordance with the transitional provisions
contained in the Schedule II of the Companies Act 2013.
Residual value of 5% has been retained for all the Property, plant and equipment, which is in line with the
provisions of the Schedule II.
Depreciation is charged @ 100% on the assets with acquisition value of less than ‘.5,000/-, the value being
immaterial, considering the size and nature of the business of the Company.
Impairment
An asset is treated as impaired when the carrying amount of assets exceeds its recoverable value.
Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as
impaired. When the recoverable amount of previously impaired assets exceeds its carrying amount, the
value of asset is reinstated by reversing the impairment loss considered in prior years limited to lower of its
recoverable value or carrying amount at the depreciated historical cost.
Capital Stores
Capital stores are valued at cost. Specific provision is made for likely diminution in value, wherever
required.
Exemption Availed Under Ind AS 101
On transition to Ind AS, Company has elected to continue with the carrying value of all its property plant and
equipment existing as at 1st April 2016, measured as per previous GAAP (Indian GAAP) and used that
carrying value as the deemed cost of the property plant and equipment.
ii) Capital Work In Progress
Projects under which Property, Plant and Equipment are not yet ready for their intended use are carried at
cost, comprising direct cost, related incidental expenses and attributable interest
iii) Investment Property
Investment properties are properties that are held to earn rentals and /or for capital appreciation (including
property under construction for such purposes) and not occupied by the Company for its own use.
Investment properties are measured initially at cost, including transaction costs and net of recoverable
taxes. The cost includes the cost of replacing parts and borrowing costs if recognition criteria are met. When
significant parts of the investment property are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. All other repair and maintenance costs are
recognized in profit or loss as incurred.
Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation
and accumulated impairment loss, if any.
Depreciation on Investment property, wherever applicable, is provided on straight line basis as per useful
lives prescribed in Schedule II to Companies Act, 2013.

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Annual Report 2023 - 24

Investment properties are de-recognized either when they have been disposed off or when they are being
occupied by the Company for its own use or when they are permanently withdrawn from use and no future
economic benefit is expected from their disposal. The difference between the net disposal proceeds and
the carrying amount of the asset is recognised in profit or loss in the period of derecognition .
Exemption availed under Ind AS 101 :- On transition to Ind AS, the Company has elected to continue with
the carrying value of its Investment Property existing as at 1st April 2016, measured as per previous GAAP
(Indian GAAP) and used that carrying value as the deemed cost of the same.
iv) Intangible Assets
Technical know-how / license fee relating to production process and process design are recognized as
intangible assets and amortised on a straight line method over a period of 5 years or life of the underlying
plant / facility whichever is lower.
Expenditure incurred on Research and Development, other than capital account is charged to revenue.
Costs incurred on computer software purchased/developed resulting in future economic benefits, are
capitalized as intangible assets and amortized over a period of 5 years or life of the facility whichever is
earlier.
Exemption Availed Under Ind AS 101
For transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible
assets existing as on 1st April 2016 measured as per the previous GAAP (Indian GAAP) and use that value as
its deemed cost as of the transition date. The Company has no intangible assets with infinite useful lives.
v) Inventory Valuation
Raw materials and stores and spares are valued at or below cost. Cost being ascertained on moving
weighted average method. In cases where there has been a decline in the price of imported and indigenous
raw material and it is estimated that cost of finished product will exceed the net realizable value, the
materials are written down to net realizable value.
Materials in process are not valued.
Finished/Trading products are valued at lower of cost or net realizable value in the aggregate, product-wise.
Intermediate products are valued at lower of cost or net realizable value derived from finished products and
saleable by-product at realizable value. Cost of Finished / semi-finished / intermediate products are
determined based on annual average cost excluding interest and head office and administrative overheads.
Cost of finished goods in warehouse includes freight and handling charges.
Materials in transit / under inspection are valued at cost
Gypsum Valuation
The entire quantity of saleable gypsum is valued at the lowest slab of the approved price for the next
financial year reduced by the anticipated loading charges and moisture discount or average of the actual
price realized during the year, whichever is lower. For assessing the closing stock of gypsum, the saleable
quantity is assessed on the basis of physical verificatoinconducted at the end of the financial year.
vi) Commitments
Capital
Estimated amount of contracts remaining to be executed on capital accounts, above ` 5 lakh in each case,
are considered for disclosure.
Other Commitments
Disclosure is considered in respect of those non-cancellable contractual commitments (i.e. cancellation of

143
 Notes forming part of the Standalone Financial Statements

which will result in a penalty disproportionate to the benefits involved) based on the professional judgement
of the management which are material and relevant.
vii) Borrowing Cost
Borrowing Costs that are specifically identified to the acquisition or construction of qualifying assets are
capitalised as part of such asset. A qualifying asset is one that necessarily takes substantial period of time to
get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.
viii) Investments
All equity investments in scope of Ind- AS 109 are measured at fair value. Equity instruments which are held
for trading are classified as at Fair Value through Profit and Loss FVTPL. For all other equity instruments, the
Company may decide to classify the same as at Fair Value through Other Comprehensive Income FVTOCI.
The Company makes such election on an instrument-by-instrument basis upon on initial recognition and
same is irrevocable. Company is not holding any equity instrument for trading.
Upon classification of equity instruments as at FVTOCI, all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to Statement of Profit
and Loss, even on sale of investments. The Company may transfer the cumulative gain or loss within equity.
ix) Revenue Recognition
The revenue is recognised as and when control of goods or services is transferred to the customer at the
amount which the Company expects to be entitled to. The Company adopted the ‘Input method’ as per Ind
AS 115 for recognition of revenue.
Subsidy is recognised on sale of fertilisers to dealers. Freight subsidy is recognised on receipt of fertilisers at
respective districts. Recoveries made are withdrawn from the claim on the basis of settlement as per the
policies in force. Any differential subsidy due to change in rate of subsidy shall be recognised considering its
recoverability.
Other income is recognized on an accrual basis
Dividend income is recognized when right to receive dividend is established
Interest income is recognized when no significant uncertainty as to its realization exists.
Scrap, salvaged / waste materials and sweepings are accounted for on realization.
Claims on underwriters, carriers and on Customs and Central Excise, Goods and Service Tax Departments
are taken into account on acceptance.
Insurance and other miscellaneous claims are recognized on receipt/ acceptance of claim. Contractual pass
through incentives, benefits, etc. are recognized on receipt basis.
x) Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the contract lease. The arrangement is, or contains, a lease if fulfilment of
the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as a lessee
At the commencement date, Company recognizes a right-of-use asset at cost and a lease liability at present
value of the lease payments that are not paid at commencement date. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the Company has right to obtain substantially all of the economic
benefits from use of the asset throughout the period of the lease and (iii) the Company has the right to direct
the use of the asset.

144
Annual Report 2023 - 24

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease
liability (at present value) adjusted for any lease payments made at or prior to the commencement date of
the lease plus any initial direct costs less any lease incentives (at present value) except for leases with a
term of twelve months or less (short-term leases) and low value leases. For these short-term and low value
leases, the Company recognizes the lease payments as an operating expense. Lease of items such as IT
Assets (tablets, personal computers, mobiles, POS machines etc.), small items of office furniture etc. are
treated as low value.
The lease liability is initially measured at amortized cost at the present value of the future lease payments.
The lease payments are discounted using the Company’s incremental borrowing rate computed on periodic
basis based on lease term. Lease liabilities are re-measured with a corresponding adjustment to the related
right-of-use asset if the Company changes its assessment, whether it will exercise an extension or a
termination option.
Right-of-use assets are depreciated over the lease term on systematic basis and Interest on lease liability is
charged to Statement of Profit and Loss as Finance cost.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income from operating lease is recognised as revenues as
per lease terms since such rentals are structured to increase in line with expected general inflation. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as
receivables at the Company’s net investment in the leases.
Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on
the net investment outstanding in respect of the lease.
xi) Foreign Currency Transactions:
Receivables and payables in foreign currency as on the reporting date including forward exchange contracts
are restated at the rate prevailing at that date.
The premium in respect of forward exchange contracts is recognized in the year of contracts.
Variations arising on account of fluctuations in foreign exchange rates are treated as revenue (gain/loss (-))
xii) Employee Benefits
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the
services rendered by employee are recognised as an expense during the period when the employees
render the services
Post-Employment Benefits
Defined Contribution Benefits
Contributory Superannuation Scheme with an annual contribution of ` 100 by the Company, aimed to
provide superannuation benefits to the employees, has been treated as Defined contribution Plan.
Defined Benefit Plans
The company’s contribution to the Provident Fund is remitted to separate trust established for this purposes

145
 Notes forming part of the Standalone Financial Statements

based on a fixed percentage of the eligible employees salary and charged to Statement of Profit and Loss.
Shortfall, if any, in the fund assets based on the Government specified minimum rate of return will be made
good by the company and charged to Statement of Profit and Loss. As a matter of prudence Company
provides for certain expenses of the fund such as audit fees & expenses, bank charges etc.
The company operates defined benefit plan for gratuity and leave encashment. The cost of providing such
defined benefits is determined using the projected unit credit method of actuarial valuation made at the end
of the year and the gratuity fund in respect of regular employees is administered through a fund maintained
by insurance company.
Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance
sheet with a charge or credit recognized in other comprehensive income in the period in which they occur.
Re-measurements recognized in other comprehensive income is reflected immediately in retained
earnings and is not reclassified to profit or loss. Past service cost is recognized in profit or loss in the period
of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period
to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:
i) service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);
ii) net interest expenses or income; and re-measurements
The Company presents the first two components of defined benefit costs in the Statement of profit and
loss in the line item ‘Employee benefits expense’.
xiii) Grants
Government grants in the nature of promoters’ contribution are credited to Capital reserve and treated as
part of Shareholders funds.
In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is treated as
Capital Grants which are recognized as income in the statement of Profit and Loss over the period and in the
proportion in which depreciation is charged.
Revenue grants relating to revenue expenses are deducted from the respective expenses.
In respect of revenue grants released by Government, the treatments in the accounts are considered as per
the respective schemes notified by the Government. Other revenue grants relating to revenue expenses
are considered as income and credited to statement of Profit and Loss.
xiv) Taxes
Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognised using the Balance sheet approach. Deferred income tax assets and liabilities are
recognised for deductible and taxable temporary differences arising between the tax base of assets and
liabilities and their carrying amount in financial statements.
Deferred tax assets is recognized for the carry forward of unused tax losses and unused tax credits to the
extent it is probable that the future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilized, subject to management judgement. The company reassess un-
recognized deferred tax assets at the end of each reporting period.
xv) Goods and Services Tax
Goods and Service Tax credit on eligible materials and services is recognised on receipt of such items at
intended locations.

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Annual Report 2023 - 24

xvi) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM) Ref Note No 44
Revenue and expenses have been identified to segments on the basis of their relationship to the operating
activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not
allocable to segments on a reasonable basis have been included under un-allocable corporate expenses.
Investments, advance towards investments and other advances, which are not allocable to segments, are
excluded from segment capital employed.
xvii) Contract Operations
In contract operations revenue is recognized on percentage of completion method. The stage of
completion is ascertained on the basis of physical evaluation of respective contract activity on the reporting
date. Foreseeable losses on contract activities are recognized fully irrespective of the progress of work. The
amount of estimated liquidated damages is reduced from revenue.
In the case of Total responsibility jobs/Deposit work/Cost plus contracts, contract revenue is determined by
adding the aggregate cost plus fixed percentage fees there on as agreed with the Customer.
xviii) Errors and Omissions of earlier period
Errors and omissions in individual items of Income and Expenditure relating to a earlier periods, exceeding
`5 Lakh is accounted in the respective period, if possible, or adjusted against opening retained earnings.
xix) Research and Development Expenses
Research and development expenses (other than cost of Property, plant and equipment acquired) are
charged as an expense in the Statement of Profit And Loss in the year in which they are incurred.
xx) Provisions, Contingent Liabilities and Contingent Assets
Provision is recognised in the accounts when there is a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be
made. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Show Cause
notices issued by various Government Authorities are not considered as Obligation. When the demand
notices are raised against such show cause notices and are disputed by the company, these are classified as
disputed obligations.
The treatment in respect of disputed obligations, in each case, is as under:
i) a provision is recognized in respect of present obligations where the outflow of resources is probable
ii) all other cases are disclosed as contingent liabilities unless the Possibility of outflow of resources is
remote.
Contingent Assets are not recognized in the financial statements, however where the inflow of economic
benefits are probable as at the end of the reporting period, a brief description of the nature of the contingent
assets along with its estimated financial effect is disclosed in the financial statements.
xxi) Non-current assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities are classified as held for sale if it is
highly probable that they will be recovered primarily through sale rather than through continuing use. Such
assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less
costs to sell. Any resultant loss on a disposal group is allocated first to goodwill, and then to remaining

147
 Notes forming part of the Standalone Financial Statements

assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets,
deferred tax assets, employee benefit assets, and biological assets, which continue to be measured in
accordance with the Group’s other accounting policies. Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are recognized in profit or loss. Once classified as held-
for-sale, intangible assets, property, plant and equipment and investment properties are no longer
amortized or depreciated.
xxii) Financial Instruments
Financial Assets
Classification
The Company classifies its financial assets in the following measurement categories, those to be measured
subsequently at fair value (either through other comprehensive income, or through profit and loss), and
those measured at a mortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses arising from fair valuation will either be recorded in profit
or loss or other comprehensive income. For investments in debt instruments, this will depend on the
business model in which the investment is held. For investments in equity instruments, this will depend on
whether the Company has made an irrevocable election at the time of initial recognition to account for the
equity investment at fair value through other comprehensive income.
Measurement
Initial recognition
The Company measures a financial asset at its fair value and, in the case of a financial asset not at fair value
through profit or loss, at fair value including transaction costs that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
recognised in profit and loss.
Subsequent Measurement
Subsequent measurement of financial assets depends on the Company’s business model for managing the
asset and the cash flow characteristics of the asset. There are three measurement categories into which
the Company classifies its financial assets:
Amortized Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost.
Fair value through other comprehensive income (FVOCI)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal and interest, are measured at fair value through
other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except
for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses
which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other income.
Fair value through Profit and Loss(FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit
and loss.

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Annual Report 2023 - 24

Investments in Joint Venture

Investment in Joint venture is recognised at fair value through FVOCI
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition as loans and borrowings, payables, derivatives and
financial liabilities at fair value through profit or loss. The Company’s financial liability consists of trade and
other payables, loans and borrowings, bank overdrafts, financial guarantee contracts and derivative financial
instruments.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs, if any.
Subsequent measurement
The subsequent measurement of financial liabilities of the Company depending on their classification is
described below:
De-recognition
A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or
expires.
Offsetting of financial instruments
Financial Assets and Financial liabilities are offset and the net amount is reported in the balance sheet, if
there is a currently enforceable legal right to set off the recognized amounts and there is an intention to
settle on net basis, to realize the assets and settle the liabilities simultaneously.
Loans and borrowings including bank overdrafts
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of
profit and loss.
This category generally applies to interest-bearing loans and borrowings.
Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder of the guarantee for a loss it incurs because the specified debtor fails to make
a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are
recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the
issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind-AS 109 and the amount recognized less
cumulative amortization.

149
 Notes forming part of the Standalone Financial Statements

xxiii) Exemption as per Ind AS 101

Company has elected to continue with the carrying value for all of its property, plant and equipment as
recognized in the financial statements as at the date of transition measured as per Indian GAAP and use that
as its deemed cost as at date of transition to Ind AS. The same is applicable even for Investment property
and intangible assets.
Company has also reviewed the necessary adjustments required to be done in accordance with paragraph
D21 of the standard (i.e. adjustments arising on account of decommissioning or restoration liabilities) and
has accordingly considered the impact of the same wherever applicable.
The Company has designated unquoted equity instruments held at 1st April 2016 as fair value through OCI.
xxiv) Statement of Cashflow
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.
xxv) Earnings per share
Basic earnings per share is computed using the weighted average number of equity shares outstanding
during the period. Diluted earnings per share is computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the period.
xxvi) Dividend
The Company recognizes a liability to pay dividend to shareholders when the distribution is authorized and
the same is no longer at the discretion of the Company.Final dividends on shares are recorded as a liability
on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of
declaration by the Company’s Board of Directors. A corresponding amount is recognized directly in equity.
xxvii) Exceptional Items
Exceptional items of income and expenses within profit or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the
period, the nature and amount of such items are disclosed separately as exceptional items.

150
 Notes Forming part of financial statement
Note 2 Non Current Assets-Property, Plant and Equipment (PPE):
` In Lakh
DEEMED COST / COST DEPRECIATION IMPAIRMENT LOSS NET BLOCK
Annual Report 2023 - 24

the year

Particulars
Adjustment
Change due
For the year

to revaluation
On Adjustment

during the year

during the year

during the year

during the year
during the year

Upto 01.04.2023
Upto 01.04.2023

Upto 31.03.2024
Upto 31.03.2024

As at 01.04.2023
As at 31.03.2023

As at 31.03.2024
As at 31.03.2024

Additions during
Disposal/Deduction
Acquisition through
business combination
(Withdrawal)/Provision

On Disposal/Deduction
Tangible Assets
Land 49,559.06 0.04 - - - - 49,559.10 - - - - - - - - 49,559.10 49,559.06
Buildings 2,045.53 - (0.18) - - - 2,045.35 416.86 63.87 - - 480.73 - - - 1,564.60 1,628.65
Plant and
Equipment 39,341.37 3,631.18 (21.34) - - - 42,951.21 13,532.48 2,151.83 (13.88) - 15,670.43 - - - 27,280.80 25,808.90
Furniture and
Fixtures 67.66 7.55 - - - - 75.21 16.13 4.16 - - 20.29 - - - 54.92 51.53
Vehicles 371.57 5.96 (13.37) - - - 364.16 131.25 36.50 (10.32) - 157.42 - - - 206.74 240.32
Office equipment 1,091.01 65.09 - - - - 1,156.10 643.78 148.59 - - 792.37 - - - 363.73 447.23
Others:-
Roads & Culverts 338.17 - - - - - 338.17 110.37 10.29 - - 120.66 - - - 217.51 227.80

151
Railway Sidings 15.62 - - - - - 15.62 - - - - - - - - 15.62 15.62
Misc. Assets 249.56 2.43 - - - - 251.99 148.41 15.98 - - 164.39 - - - 87.60 101.15
Retired Asset 511.66 - (5.03) - - - 506.63 424.99 7.68 (0.04) - 432.64 - - - 73.99 86.67
Minor Assets 34.86 12.08 - - - - 46.94 34.85 12.08 - - 46.93 - - - - -
Total 93,626.07 3,724.33 (39.92) - - - 97,310.48 15,459.12 2,450.98 (24.24) - 17,885.86 - - - 79,424.61 78,166.94
Previous year 91,127.31 3,059.66 (560.90) - - - 93,626.07 12,900.05 2,803.37 (244.32) - 15,459.12 - - - 78,166.94 78,227.21
2.1) Company has agreed to mortgage 408 acres of land held vide patta no.7030 in survey no.205 in Puthencruz village, Ernakulam District ,Kerala State to the Government of India against the plan loan sanctioned by the Government of India during the year 2015-16.
2.2) Out of 1499.73 acres (Previous year 1498.97 acres) of land held by the Company, 15.02 acres,for which right of use asset is recognised (Previous year 14.26 acres ) are held under lease hold right from Cochin Port Trust, for which lease agreement is under finalization. 80.50 acres of land has been provided as
security towards arbitration award in the dispute between the Company and M/s.ABC & Sons Ltd (Refer Note. 48.1).
2.3) The land held by the company also include 143.22 acres which were under lease from Government of Kerala. During the year 2019-20, company had sold 481.79 acres of Land, as approved by Union Cabinet, Government of India @ `1 Crore per acre for 150 Acres (in lieu of free hold right accorded by the
Government of Kerala over 143.22 acres of lease hold land) and remaining 331.79 acres @ ` 2.4758 Crore per acre as assessed by the District Collector. On receipt of the valid order from revenue department during the year 2022-23, Company has accounted the 143.22 acres of land as freehold land , at its fair
value `47956 lakhs, as restatement of opening balance of PPE and Other Equity as on 01.04.2021.
2.4) Title deeds are yet to be registered/ received, in respect of 40 acres of Land. Certain land owners have since preferred extra compensation claims which are pending before Courts. The liability on this account is not ascertainable. Interest and legal expenses incurred on land acquisition cases are charged to
Statement of Profit and Loss of the respective year.
2.5) During the year 2022-23, Company has disposed off the old thermal plant (14 MW area and 12 mw area), water treatment plant, concentration section of phosphoric acid plant, filtration section of effluent treatment plant and the old sulphuric acid day tank in Cochin Division, as scrap. These items of Property,
Plant & Equipment with written down value of `312.18 lakhs has been disposed at a sale consideration of `1138.01 lakhs (including related spares)
2.6) Railway siding includes siding held jointly with M/s.Bharat Petroleum Corporation Limited (Kochi Refinery) with written down value `4.27 lakh (Previous year ` 4.27 lakh),
2.7) Company has given land ranging from 2.50 hectares to 4.1344 hectares to Kochi Metro Rail Limited on leave and license basis till 31.07.2023
2.8) Plant & Equipment includes value of 6 numbers of Ammonia bullets fixed on the barges of contractor of the company for transportation of Ammonia, with net Written Down value of 2.66 lakh.
2.9) First charge has been created on 36.08 acres of land (Previous year- 36.08 acres of land), in the State of Kerala, as security for Non Fund Based working capital arrangement with State Bank of India.
2.10) The above includes assets procured with EEC grant with book value `53.97 lakh (previous year `54.91 lakh,)
2.11) Depreciation is charged on Property, plant and equipment based on the useful life of assets prescribed under the Schedule II of the Companies Act 2013 except for the following assets, for which depreciation is charged based on the estimated useful life ascertained on evaluation by the concerned technical team
of the Company.

i) DCS for Fertiliser Plant 10 Years

ii) Analysers 5 Years
iii) Rejuvenation of caprolactam plant 15 years
 Note Forming Part of Standalone Financial Statements

Note No. 2A Non Current Assets- Capital Work in Progress ` In Lakh

As at 31.03.2024 As at 31.03.2023

Capital Work in Progress 21,883.07 10,109.19

Goods in Transit / Goods pending inspection /Capital Stores 321.98 350.21
22,205.05 10,459.40
Note No. 2B . Non Current assets - Investment Property
Particulars As at 31.03.2024 As at 31.03.2023
Opening Balance
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
Addition/ (Deletion)
Land 0.00 0.00
Building 0.00 0.00
Total 0.00 0.00
Closing Balance
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
Depreciation
Building
Opening Balance 0.00 0.00
Adjustments 0.00 0.00
Current Year 0.00 0.00
Closing Balance 0.00 0.00
Net Block
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
During the year 2011-12 Company by way of leave and license basis, has made available to GAIL (India) Ltd,
at Udyogamandal/Cochin Division, 2.40 acres of land and right to use of 0.33 acres for laying pipelines for a
period of 35 years for an upfront premium of ` 479 lakh and yearly license fee of ` 100. The Leave and license
agreement is yet to be executed.
As per the Joint Venture agreement with Rashtriya Chemicals & Fertilisers Ltd (RCF), the Company during
2008-09, has made available, 11 acres of land at Cochin Division on lease basis to FACT-RCF Building
Products Ltd, for a period of 20 years for an upfront premium of ` 1000 lakh and yearly rent of `10.
During the year 2021-22, company has entered into a Leave and License agreement with Kochi Salem
Pipeline Private Limited (KSPPL) by allotting 30 cents of land to KSPPL at Udyogamandal for a period of 15
years with effect from 10-01-2022. ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Rental Income from investment property 124.75 124.69
Direct operating expenses to income generating property 0.00 0.00
Less: Reimbursement of expenses 0.00 0.00
Profit arising from Investment Property before depreciation 124.75 124.69
Depreciation - -
Profit arising from Investment Property 124.75 124.69

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Annual Report 2023 - 24

Reconciliation of fair value ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Fair Value of Investment property
Opening Balance
Freehold Land 2,906.41 2,642.19
Buildings - -
Total 2,906.41 2,642.19
Additions/(Deletions)
Freehold Land 581.28 264.22
Buildings 0.00 0.00
Total 581.28 264.22
Closing Balance
Freehold Land 3,487.69 2,906.41
Buildings - -
Total 3,487.69 2,906.41

Fair Value of Freehold Land is based on the notification issued by the Government of Kerala in their website.

Note 2C Right of use Assets ` In Lakh

NET CARRYING
GROSS CARRYING AMOUNT DEPRECIATION
AMOUNT

Particulars As at Additions Disposal/ Remeasurement As at Up to For the On Disposal/ Up to As at As at

01.04.2023 during Deduction of lease 31.03.2024 01.04.2023 year Deduction 31.03.2024 31.03.2024 31.03.2023
the year during the during during the
year the year year

Right of
use Assets 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25 3,159.87
Total 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25 3,159.87
Previous
year 3,577.18 16.15 (41.58) 53.89 3605.64 320.19 167.16 (41.58) 445.77 3,159.87 3,256.99
1. The above includes, leased land from Cochin Port Trust taken for the purpose of storage, handling of raw
materials and for setting up a dock for barge operations. The lease agreement is pending execution. The
recognition of Right of use Asset and lease liability has been made based on the draft agreement agreed
upon based on the sanction from Ministry of Shipping, Government of India, dated 14.11.2014. (Refer Note-
40)
Note No. 2D Non Current Assets- Other Intangible Assets ` In Lakh
Deemed Cost Amortization Impairment Loss Net Block
Particu As at Additions Disposal/ Adjustment Acquisition Change As at Up to For On On Up to Up to (Withdrawal)/ Up to As at As at
lars 01.04.2023 during Deduction during through due to 31.03.2024 01.04.2023 the Disposal/ adjustment 31.03.2024 01.04.2023 priovision 31.03.2024 31.03.2024 31.03.2023
the during the year business Revaluation year Deduction during during
year the year combination during the year the year
the year
Computer
Software 210.64 13.87 0.00 0.00 0.00 0.00 224.51 164.96 32.12 0.00 0.00 197.08 0.00 0.00 0.00 27.43 45.68
Total 210.64 13.87 0.00 0.00 0.00 0.00 224.51 164.96 32.12 0.00 0.00 197.08 0.00 0.00 0.00 27.43 45.68
Previous
year 200.84 9.80 0.00 0.00 0.00 0.00 210.64 124.37 40.59 0.00 0.00 164.96 0.00 0.00 0.00 45.68 76.47

153
 Note Forming Part of Standalone Financial Statements

NOTES FORMING PART OF FINANCIAL STATEMENTS

` In Lakh
Note No. 3A Non Current Asset - Financial Assets - Investments in Associates & Joint Ventures
Particulars As at 31.03.2024 As at 31.03.2023
In Joint Venture
FACT-RCF Building Products Ltd
3,52,27,000 (Previous year 3,52,27,000 ) Equity Shares of ` 10/- each 3,522.70 3,522.70
Less: Provision for diminution in the value of investment (3,522.70) (3,522.70)
(Refer Note 1 Below) 0.00 0.00
In Associate
Kerala Enviro Infrastructure Ltd
31,24,000 (Previous year 31,24,000) equity shares of `10/- each fully paid-up 0.00 0.00
(Refer Note 2 below) - 0.00
Investment in Associates & Joint Venture - 0.00
Reconciliation of fair value measurement of the investment in
unquoted equity shares
FACT-RCF Building Products Ltd
Opening balance 0.00 0.00
Total gains and losses recognised in OCI 0.00 0.00
Closing Balance 0.00 0.00
Kerala Enviro Infrastructure Ltd
Opening balance 0.00 407.99
Total gains and losses recognised in OCI 0.00 0.00
Reclassification of the Investment 0.00 (407.99)
Closing Balance 0.00 0.00

1. National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in CP(IBC)/39/KOB/2023 filed by a financial creditor of
FACT-RCF Building Products Ltd (FRBL) appointed an Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution
Proceedings against FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was superseded.The
Resolution Professional commenced the proceedings and is in the process of publishing advertisement for Expression of interest from the
prospective applicants for submission of resolution plan for FRBL.
2. The Company’s percentage of share holding in the equity shares of Kerala Enviro Infrastructure Ltd as on 31.03.2024 is 15.91%. As the
investments had become less than 20%, in 2022-23 itself the investment has hence been re-classified as ‘Other Investments’.
Note No. 3B Non Current Asset - Financial Assets - Other Investments
Particulars As at 31.03.2024 As at 31.03.2023
Investment in unquoted equity shares:
Travancore Cochin Chemicals Ltd.,
6,81,820(Previous year 6,81,820)Equity Shares of
`10/- each including 3,40,910 Bonus shares. 231.27 245.74
Kerala Enviro Infrastructure Ltd
31,24,000 (Previous year 31,24,000) equity shares of
`10/- each fully paid-up- (Refer Note 3A- 2) 532.95 462.88
Capexil Agencies Ltd.
15 (Previous year 15) Equity Shares of `1000/- each
fully paid up 0.15 0.15
Less: Provision for diminution in the value of investment (0.15) (0.15)
- -
Indian Potash Ltd.
6,48,000 (Previous year 6,48,000) Equity Shares of 12,271.69 10,576.59
`10/- each fully paid-up, including 459000
(previous year 459000) Bonus Shares
13,035.91 11,285.21
Shares in Co-Operative Societies:
FACT Co-operative Society Ltd
10,001 (Previous year 10,001) shares of `10/- each fully paid-up 1.00 1.00
Meherabad Co-operative Housing Society Ltd
7 (Previous year 7) shares of `100/- each fully paid-up 0.01 0.01
Good Earth Housing Society Ltd.
10 (Previous year 10) shares of `50/- each fully paid-up
`500 (Previous year ` 500) 0.01 0.01
1.02 1.02
Other Investments 13,036.93 11,286.23

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Annual Report 2023 - 24

` In Lakh
Aggregate amount of unquoted investments 13,036.93 11,286.23
Reconciliation of fair value measurement of the investment
in unquoted Equity shares
Travancore Cochin Chemicals Ltd
Opening balance 245.74 160.16
Total gains and losses recognised in OCI (14.46) 85.58
Closing Balance 231.27 245.74
Kerala Enviro Infrastructure Ltd
Opening balance 462.88 -
Total gains and losses recognised in OCI 70.07 54.89
Reclassification of the Investment - 407.99
Closing Balance 532.95 462.88
Capexil Agencies Ltd.
Opening balance 0.00 0.00
Total gains and losses recognised in OCI 0.00 0.00
Closing Balance 0.00 0.00
Indian Potash Ltd
Opening balance 10,576.59 9,219.29
Total gains and losses recognised in OCI 1,695.11 1,357.31
Closing Balance 12,271.69 10,576.59
Note : Shares of Co-operative societies are retained at book value.
Note No. 4. Non current Assets - Financial assets- Other Financial Assets
Particulars As at 31.03.2024 As at 31.03.2023
Security deposit
Unsecured Considered Good 1,175.06 907.08
Amount pledged for Letter of Credit, Bank Guarantee and
Fund based arrangements * (i) 0.00 199.00
Deposit held towards Capex projects * (ii) 0.00 11,600.00
Interest Accrued on (i) and (ii) above 0.00 79.39
Other Deposits 11.99 11.96
Advances to Related Parties
Considered doubtful 3,618.56 3,618.00
Less : Provision for Doubtful Advances (3,618.56) (3,618.00)
0.00 0.00
Less : Provision for Doubtful Advances 0.00 0.00
0.00 0.00
Advance to others
Unsecured Considered Doubtful 25,813.77 25,755.79
Less : Provision for Doubtful Advances (25,813.77) (25,755.79)
0.00 0.00
1,187.05 12,797.43
*with more than 12 months maturity from the reporting date

155
 Note Forming Part of Standalone Financial Statements

` In Lakh

Movement in Provisions
Provision for bad & doubtful loans and advances
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 29,373.79 29,611.51
Provision released during the year - -240.04
Provisions made during the year 58.54 2.32
Provision at the end of the year 29,432.33 29,373.79

1. Provision for doubtful loans and advances include `25450.98 lakh (Previous year ` 25450.98 lakh)
towards interest accrued upto 31.03.2022, on mobilisation advance given to a private company.
Pending litigation, equivalent provision has been made towards interest beyond the amount considered
recoverable (Refer note 13.2, 48.1)
Note No. 5. Non current Assets - Deferred Tax Assets
Particulars As at 31.03.2024 As at 31.03.2023
Deferred Tax Asset (Net) 10,266.78 -
10,266.78 -

The Company has a Deferred Tax Asset of ` 13198.25 lakhs on account of unabsorbed depreciation and
carry forward business loss. The deferred tax liability as on 31.03.2024 is ` 2931.47 lakhs . Net Deferred
Tax asset is recognised as on 31.03.2024. The Company had not recognised Net Deferred tax
Asset/Liability till 31.03.2023 as a matter of prudence.
Particulars Tax Base Deferred Tax
Asset /(Liability)
Deferred Tax Liability
Timing difference in Depreciation (11,646.70) -
Total (11,646.70) (2,931.47)
Deferred Tax Asset
Carry Forward Business Loss & Depreciation 52,436.43 -
Total 52,436.43 13,198.25
Net Deferred Tax Asset as on 31.03.2024 10,266.78
Note No. 6. Non current Assets - Other Non Current Assets

Particulars As at 31.03.2024 As at 31.03.2023

Capital Advances (Secured Considered Good) 3,246.46 1,518.09
3,246.46 1,518.09
Note No. 7. Current Assets - Inventories
Particulars As at 31.03.2024 As at 31.03.2023
Raw Materials 15,822.86 14,215.61
Raw materials-in -transit 14,552.96 5,917.48
30,375.82 20,133.09
Work-in-progress 6,570.64 5,406.85
Finished Goods 65,812.40 64,527.36
Stock-in-trade (in respect of goods acquired for trading) 2,617.11 0.00

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Annual Report 2023 - 24

` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Stores and Spares
Machinery Spares 10,798.41 10,248.81
General Stores 2,661.82 2,805.83
Stores & Spares-in -transit 281.93 232.57
13,742.16 13,287.21
Retired Spares 453.50 453.50
Total Inventories 1,19,571.63 1,03,808.01
Less: Provision towards obsolescence and storage losses 5,255.96 5,995.83
1,14,315.67 97,812.18

Notes
1. Current Assets include inventories and trade receivables pledged as Primary Security for Fund/ Non
Fund based Working Capital arrangement with Banks amounting to ` 118500.00 Lakh. The utilisation of
this arrangement as on reporting date is.` 7834.86 lakhs ( Previous year ` 5113.56 Lakh)
2. Inventory of finished goods, raw material, stores and spares and work in progress are valued as per the
Accounting Policy of the Company
3. Finished Goods includes 21.09 lakhs MT of saleable gypsum (bulk) (Previous Year 21.36 lakh MT)
amounting to `12343.50 lakh (Previous year ` 11973.30 lakh). For assessing the closing stock of
gypsum as on 31.03.2024, the saleable quantity has been assessed on the basis of physical verification
conducted at the end of the financial year.
4. Stores & Spares in transit includes Stores & Spares at site pending inspection ` 281.93 lakh (Previous
year ` 214.61 lakh )
5. During the year 2021-22, company had detected irregularities in the physical stock to the tune of 543.60
MT of Factamfos and 60.50 MT in Ammonium Sulphate at Chikmagalur Depot valued at ` 218.50
lakhs. Company had provided for the entire amount of ` 218.50 lakhs. The Company has since realised
an aggregate amount of ` 63.85 lakhs being the sale value of 256.95 MT of Factamfos from various
dealers during the year 2022-23 in connection with the above. However, the company has maintained
the provision of ` 218.50 lakhs pending completion of investigation. Company has taken steps for
recovery from transporters, dealers and warehouse (Refer Note. 13.3, 24.1, 25.2, 27.1 )
6. 90% provision has been made for non-moving stock of stores & spares, ageing five years and more, as
on 31.03.2024.
Movement in Provisions
Provision towards obsolescence and storage losses (including provision towards Retired spares )
` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Provision at the beginning of the year 5,995.83 3,601.29
Provisions made during the year 0.00 2,394.54
Released during the year -739.86 0.00
Provision at the end of the year 5,255.96 5,995.83

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 Note Forming Part of Standalone Financial Statements

Note No. 8. Current Assets - Financial assets-Trade Receivables ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

From related party
Unsecured
Credit impaired 297.72 297.72
Less: Provision for Doubtful Debts (297.72) (297.72)
0.00 0.00
Others
Unsecured
Credit impaired 1,647.71 1,672.17
Less: Provision for Doubtful Debts (1,647.71) (1,672.17)
0.00 0.00
Sundry Debtors
Secured , considered good 7,063.09 6,991.81
Unsecured , considered good 2,000.60 635.74
9,063.69 7,627.55
Subsidy Receivable
Unsecured
Considered doubtful 18,663.04 411.33
Unsecured Considered good 6,750.04 40,259.93
Less: Provision for Doubtful subsidy (18,663.04) (411.33)
6,750.04 40,259.93
15,813.73 47,887.48
Movement in Provisions
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 2,381.23 2,365.32
Provisions released during the year (84.44) (49.71)
Provisions made during the year 18,311.68 65.62
Provision at the end of the year 20,608.47 2,381.23

Note No. 9. Current Assets - Financial assets-Cash and Cash Equivalents

Particulars As at 31.03.2024 As at 31.03.2023
Balances with Banks 2,305.85 22.09
Cash on hand 2.27 2.66
Short Term Deposit with Banks* (i) 41,223.02 4,933.08
Interest accrued on (i) above 35.69 11.32
43,566.83 4,969.15
*Original maturity of three months or less
Cash and Cash Equivalents include ` 1024.34 lakh (Previous year ` 538.89 lakh ) received towards work
on Deposit basis, lying in a specified account to meet the corresponding liabilities.

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Annual Report 2023 - 24

Note No. 10 Current Assets - Financial assets-Other Bank Balances ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Short Term Deposit with Banks * 0.00 0.00
Balance in Unpaid Dividend account 10.01 0.00
Amount pledged for Letter of Credit, Bank Guarantee and
Fund based arrangements * (i) 67,456.66 77,713.73
Deposit earmarked for capex projects * (ii) 147,989.41 1,49,275.57
Interest accrued on (i)and (ii) above 8,909.38 6,825.95
2,24,365.46 2,33,815.25

* Maturing within 12 months from the reporting date

1. Out of the deposits earmarked for capex projects, lien has been marked on deposits amounting to `
36055.21 lakhs (Previous Year- ` 29756.07 ) lakhs for availing Fund Based and Non-Fund Based facilities.
Note No. 11. Current Assets - Financial Assets-Other Financial Assets
Particulars As at 31.03.2024 As at 31.03.2023
Security Deposits:
Unsecured , considered good 4.80 37.91
Amount receivable against Service Orders 767.48 612.12
Other Accrued Income 23,510.40 10,419.49
Amount receivable from LIC under group Gratuity scheme 90.38 652.31
Township Dues (Net of provision for doubtful dues) 147.85 104.28
Foreign Currency Asset (Net) 102.41 0.00
Others 24.51 13.45
24,647.83 11,839.56

1. Other Accrued income includes ` 23444.32 lakh being 90% of the unclaimed DBT subsidy (accounted
on recoverability basis).
Note No. 12. Current Assets - Current Tax Assets

Particulars As at 31.03.2024 As at 31.03.2023

Income Tax (Net of provision) 160.54 182.85
160.54 182.85

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 Note Forming Part of Standalone Financial Statements

Note No. 13. Current Assets -Other Current assets

Particulars As at 31.03.2024 As at 31.03.2023
Dues from:
Statutory Authorities 50,373.28 47,474.54
Less: Provision for doubtful receivables (34,303.01) (27,418.54)
16,070.27 20,056.00
Contractors 4,121.23 4,277.74
Employees 239.00 400.84
Pre Paid Expenses 672.08 651.95
Others 821.90 31.25
21,924.48 25,417.78

1. Dues from statutory authorities include (i) ` 64.83 lakhs (Previous year ` 1409.11 lakhs ) (net of
provision) being KVAT refund receivables, and (ii) ` 72.97 lakh (Previous Year `72.97 lakh) towards
the amount paid against disputed demands pending appeal. In view of the uncertainty in the
reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the
Government of Kerala, Company had made provision for the VAT receivables on RLNG upto
31.03.2022 amounting to ` 18301.45 lakhs under the head "Provision for doubtful receivables." The
Provision for doubtful receivables also includes the VAT incurred on RLNG procurement during the
year 2023-24,` 6884.46 lakhs ( Previous year ` 9117.09 lakhs ) which has been accounted as
consumption of raw material / fuel in the Statement of Profit & loss.
2. Dues from Contractors include amount paid for materials supplied but rejected by the Company
pending settlement ` 15.21 lakh (Previous year ` 9.46 lakh ) and an amount of `1353.19 lakh (Previous
year `1353.19 lakh) including interest considered as recoverable on the basis of a bank guarantee
invoked by the Company but stayed till the completion of arbitration. The Arbitration Award was
passed during the year 2013-14, as per which the company is entitled to adjust an amount of
`2798.29 lakh towards this advance and interest from the dues claimed by the contractor. The
Company has gone on appeal against the award before the Hon' District Court, Ernakulam which has
since stayed the award. The case is transferred to Commercial Court. Accordingly the Company
demanded the banks to send the proceeds of encashment of bank guarantee along with interest. The
bank rejected the claim and consequently the Company filed a suit against the bank before the Hon.
High court of Mumbai for realization of amount, which are pending. However an amount of `1353.19
lakh only has been retained pending disposal of the case.
3. Other Current Assets, dues from contractors include ` 476.89 lakhs (previous year ` 476.89 lakhs)
charged to transport contractor as per the terms and conditions of the contract, towards non delivery
of goods to dealers at the assigned destinations. (Refer Note- 7.5, 24.1 & 25.2)
4. Other Current Assets include CSR expenditure of ` 789.24 lakhs pertaining to financial year 2023-24
spent over and above the minimum as stipulated in The Companies Act,2013.
Note No. 14. Current Assets -Non-current Assets held for Disposal
Particulars As at 31.03.2024 As at 31.03.2023
Retired assets held for disposal 4,065.02 4,065.02
4,065.02 4,065.02

Retired assets held for disposal' includes Ammonia and Urea Plant at Cochin Division, which the
Company had decided to scrap during the year 2009-10. These retired assets are retained in books at the
written down value of ` 4065.02 lakhs (previous year- ` 4065.02 lakhs), which is lower than the estimated
Net realisable value. The Company could not complete the disposal process since the matter had been
pending before the Court.

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Annual Report 2023 - 24

Note No. 15. Equity- Equity Share Capital ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023
Authorised:
100,00,00,000 (Previous year 100,00,00,000)
Equity Shares of ₹10/-each 100,000.00 100,000.00
Issued, Subscribed and fully Paid up:
64,70,71,974 (Previous year 64,70,71,974)
Equity Shares of ₹10/- each fully paid up 64,707.20 64,707.20

Reconciliation of the shares outstanding at the beginning and at the end of the Financial Year

Particulars As at 31.03.2024 As at 31.03.2023

Number of shares at the beginning of the year 647,071,974 647,071,974
Number of shares issued during the year Nil Nil
Number of shares at the end of the year 647,071,974 647,071,974

Notes
The Company has only one class of equity shares having par value of ` 10 per share. Each share holder is
entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholding
1. Rights, Preference and restrictions attached to each class of shares including restrictions on the
distribution of dividends and the repayment of capital. - Nil / Not Applicable
2. Shares held by shareholders holding more than 5% of shares:

Particulars As at 31.03.2024 As at 31.03.2023

The Government of India
Number of shares 582,364,776 582,364,776
Percentage of Total Shares 90.00% 90.00%
Special National Investment Fund constituted by the
Government of India
Number of shares 55,400,424 55,400,424
Percentage of Total Shares 8.56% 8.56%
3. The Government of India had transferred 55400424 equity shares of ₹10 each to Special National
Investment Fund on 6th August 2013.
4. Shares reserved for issue under options and contracts / commitments for the sale of shares /
disinvestment.
I. Aggregate number and class of shares allotted as fully paid up
pursuant to contract(s) without payment being received in cash Nil Nil
II. Aggregate number and class of shares allotted as fully paid
up by way of Bonus shares Nil Nil
III. Aggregate number and class of shares bought back Nil Nil

161
 Note Forming Part of Standalone Financial Statements

5. Terms of any securities convertible into equity / preferential shares issued along with the earliest
date of conversion - NIL
6. Shares held by promoters at the end of the year

Promoter name No. of Shares %of total shares % Change during

(Equity shares) the year
Government of India 582364776 90.00% NIL
Total 582364776 90.00% NIL
Note No. 16. Equity - Other Equity
` In Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Capital Reserves:
Subsidy from Kerala State Government under Industrial Housing Scheme 2.64 2.64
2.64 2.64
Other Reserves:
Deferred Government Grant :
Indo EEC Fertiliser Education Project
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 50.78 51.72
Less: Amount transferred to Statement of Profit & Loss 0.93 0.94
Closing balance 49.85 50.78
Equity Instruments through other Comprehensive Income
Particulars As at 31.03.2024 As at 31.03.2023
Opening Balance 10,919.67 9,421.90
Additions/(Deletions) during the Year 1,750.71 1,497.77
Closing Balance 12,670.38 10,919.67
Retained Earnings:
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 51,694.08 (7,980.82)
Add Changes in Accounting Policy / Prior Period items as per Ind AS 0.00 0.00
Add :Profit/ (Loss) during the year 14,616.91 61,283.21
Add: Remeasurement of defined benefit plan 303.58 (1,608.31)
Less: Dividend Paid 6,470.72 -
Closing balance 60,143.85 51,694.08
Other equity 72,866.72 62,667.17

1. As a part of the sales consideration of 481.79 acres of Land sold to Government of Kerala during the
year 2019-20, ` 47956 lakhs being fair value of the 143.22 acres of lease hold land converted as freehold,
was restated in the opening balance of PPE and Other Equity as on 01.04.2021 during the previous
financial year 2022-23, in line with the provisions of IndAS 8. (Refer Note 2.3)
2. For the Financial Year 2023-24, the Board of Directors have recommended a final dividend of ` 0.97 per
equity share (Previous Year ` 1.00 per equity share) which is subject to approval by shareholders of the
Company.
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Annual Report 2023 - 24

Note No. 17 Non Current Liabilities - Financial Liabilities - Borrowings ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Term loans
Secured
From the Government of India (Refer Note 22.2 ) 0.00 0.00
Unsecured
Inter-corporate loan from M/s.Rashtriya Chemicals & Fertilisers Ltd
(Refer Note 1 below) 0.00 510.00
0.00 510.00

1. The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee
to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company
and RCF. During the year 2018-19, RCF has settled the entire liability to the bankers, to the extent of
`5100 lakh including 50% share of the Company `2550 lakh on the condition that the Company shall treat
the amount paid by RCF on behalf of the Company as Inter-Corporate loan with a repayment period of five
years, starting from the year 2020-21. The Company has paid four instalments due as per the agreement.
The remaining principal amount payable ` 510 Lakhs during the year has been classified under Current
Liabilities - Financial Liabilities -Other Financial Liabilities . Interest rate applicable on the loan for the year
2023-24 is 7.82% p.a (Previous year- 7.38% p.a).

Note No. 18. Non Current Liabilities - Lease Liabilities

Particulars As at 31.03.2024 As at 31.03.2023
Lease Liabilities (Refer Note-40) 3,162.60 2,985.82
3,162.60 2,985.82

Note No. 19. Non Current Liabilities - Other Financial Liabilities

Particulars As at 31.03.2024 As at 31.03.2023
Security Deposit towards Rent 29.36 30.74
29.36 30.74

Note No. 20 Non Current Liabilities - Provisions

Particulars As at 31.03.2024 As at 31.03.2023
Provision for employee benefits
(i) Provision for gratuity 8,174.09 10,045.13
(ii) Provision for leave encashment 7,733.18 8,680.28
Decommissioning of Assets in Leased Properties 309.76 278.12
16,217.03 19,003.53

163
 Note Forming Part of Standalone Financial Statements

` In Lakh
Note No. 21 Non Current Liabilities - Other Non current Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Advance Rent Received 974.80 1,128.96
974.80 1,128.96

As at the beginning of the year 1,311.04 1,308.72

Advance received 38.80 170.16
Released to Statement of Profit and Loss (193.28) (167.84)

As at the end of the year 1,156.56 1,311.04

Current 181.76 182.08
Non Current 974.80 1,128.96
1,156.56 1,311.04

Note No. 22 Current Liabilities - Financial Liabilities -Borrowings

Particulars As at 31.03.2024 As at 31.03.2023
Secured :
Bills discounted 0.00 2,839.82
Current maturities of Long-term debt :
Term loan from Government of India
(Refer Note 2 below) 128,273.00 128,273.00
Interest on the above converted as loan 48,775.75 48,775.75
177,048.75 177,048.75
Unsecured:
Inter-corporate loan from M/s.Rashtriya Chemicals &
Fertilisers Ltd (Refer Note 17.1) 510.00 510.00
177,558.75 180,398.57

1. The bills discounted are secured against the corresponding trade receivables
2. A plan loan of `.100000.00 lakh bearing interest @13.50% per annum was released by the Government
of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of
Government of India, `100000.00 lakh along with the earlier loan ` 28273 lakhs and interest outstanding
has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium.
As per the letter dated 12.01.2016, of the Ministry of Finance, GOI, sanctioning the loan, the total
outstanding liability of the Company is `183672.00 lakh. The Company entered into an agreement with
the Department of Fertilizers(DOF), GOI, agreeing to mortgage 408 acres of Company’s land to secure
repayment of the entire loan together with interest at the rate of 13.50% per annum on the amount
outstanding as on 31.03.2017. The loan amount was reconciled and loan outstanding along with interest
accumulated (upto 31.03.2017) has been arrived at `177048.75 lakh as on 31.03.2017. The loan along
with interest is repayable in three or more equated instalments within a period of 5 years ending by
2022. Accordingly, the entire principal amount, being ` 177048.75 lakhs (previous year- ` 177048.75
lakhs) has been classified under Current Liabilities-Current maturities of Long term Debt. The
outstanding principal and interest as on 31.03.2023 has been confirmed with the balance of
Government of India.

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Annual Report 2023 - 24

Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF),

Government of India (GoI), seeking approval for the waiver of interest on Government of India loan,
conversion of loan amounting to `28273.00 lakhs into equity and conversion of loan amounting to
`100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring
proposal submitted by the Company is under the consideration of the Department of Fertilizers,
Government of India. Pending approval by the Government of India, the loan taken from GoI and interest
due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016.

Note No. 23 Current Liabilities - Lease Liabilities ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Lease Liabilities (Refer Note-40) 301.03 276.68
301.03 276.68

Note No. 24. Current Liabilities - Financial Liabilities - Trade Payables

Particulars As at 31.03.2024 As at 31.03.2023
Trade payables
(i) Dues to Micro, Small and Medium Enterprises (Refer Note: 38) 1025.21 429.50
(ii ) Others 47,359.79 37,372.87
48,385.00 37,802.37

1. Trade payables, others include ` 290.02 Lakhs ( previous year ` 290.02 Lakhs )withheld from transport
contractor as per the terms and conditions of the contract, towards non delivery of goods to dealers at
the assigned destinations and ` 146 lakhs ( previous year ` 146 Lakhs ) withheld from warehouse. (Also
Refer Note 7.5, 13.3, 25.2)

Note No. 25. Current Liabilities - Financial Liabilities -Other Financial Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Interest accrued on borrowings (Refer Note 22.2 & 17.1)
Term Loan from Government of India 167,311.07 143,409.49
Inter-corporate Loan 25.47 41.86
Dues to employees 1,196.66 5,669.39
Trade Deposit from customers 5,276.91 4,321.43
Other liabilities 14,208.08 11,308.03
188,018.19 164,750.20

1. As per the decision of Government of India, during the year 2021-22, Company has framed a scheme for
disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased
manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include
`1030.96 lakhs (previous year- `5036.14 lakhs) towards 1997 arrears, payable with in one year.
2. Other liabilities include amount charged from transport contractors as per the terms and conditions of
the contract, towards non delivery of goods to dealers at the assigned destinations and amount withheld
from warehouse.(Also Refer Note 7.5, 13.3 & 24.1)

165
 Note Forming Part of Standalone Financial Statements

` In Lakh
Note No. 26. Current Liabilities - Other Current Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Statutory dues 938.17 1,168.16
Advance from Customers 5,720.66 4,399.31
Advance Rent Received 181.76 182.08
6,840.59 5,749.55

Note No. 27. Current Liabilities - Provisions

Particulars As at 31.03.2024 As at 31.03.2023
Provision for employee benefits
(i) Provision for gratuity 1,113.98 2,039.97
(ii) Provision for leave encashment 888.42 891.68
Provision towards other Contractual Obligations 239.60 239.60
Other provisions 211.62 246.64
2,453.62 3,417.89

1. Other provisions include ` 211.62 lakhs (previous year ` 211.62 lakhs) (aggregate provision ` 218.50
lakhs net of GST ` 6.88 lakhs) provided towards shortage of finished goods noticed in certain
warehouses in Karnataka State (Refer Note 7.5)

166
 Trade Receivables Ageing Schedule ` In Lakh

Particulars Not Due as on As at

Outstanding for following periods from due date of payment
31.03.2024 31.03.2024
Annual Report 2023 - 24

Less than 6 months - 1-2 years 2-3 years More than Total
6 months 1 year 3 years
(i) Undisputed Trade 6,016.08 2,587.65 3,239.36 3,918.62 49.50 1.45 15,812.66
receivables –
considered good
(ii) Undisputed Trade
Receivables – which - - - - - - -
have significant
increase in credit risk
(iii) Undisputed Trade - 16,721.67 1,533.85 5.90 0.00 1,710.50 19,971.92
Receivables – credit

167
impaired
(iv) Disputed Trade - - - - - 1.07 1.07
Receivables –
considered good
(v) Disputed Trade - - - - - - -
Receivables – which
have significant
increase in credit risk
(vi) Disputed Trade - - - - - 636.55 636.55
Receivables – credit
impaired
TOTAL 6,016.08 19,309.32 4,773.21 3,924.52 49.50 2,349.57 36,422.20
 Trade Receivables Ageing Schedule ` In Lakh

Particulars Not Due as on As at

Outstanding for following periods from due date of payment
31.03.2023 31.03.2023

Less than 6 months - 1-2 years 2-3 years More than Total
6 months 1 year 3 years
(i) Undisputed Trade 13232.58 33,211.67 1,326.35 60.28 55.50 0.05 47,886.43
receivables –
considered good
(ii) Undisputed Trade - - - - - - -
Receivables –which
have significant
increase in credit risk
(iii) Undisputed Trade - 3.38 0.99 95.05 52.63 1,566.49 1,718.54

168
Receivables –credit
impaired
(iv) Disputed Trade - - - - - 1.05 1.05
Receivables–
considered good
(v) Disputed Trade - - - - - - -
Note Forming Part of Standalone Financial Statements

Receivables – which
have significant
increase in credit risk
(vi) Disputed Trade - - - - - 662.68 662.68
Receivables – credit
impaired
TOTAL 13,232.58 33,215.05 1,327.34 155.33 108.13 2,230.27 50,268.70
Annual Report 2023 - 24

` In Lakh
Note No. 28 Revenue from operations
Particulars Year ended 31.03.2024 Year ended31.03.2023
Sale of products
Own Products 268,412.03 313,949.27
Traded Products 24,869.54 1,056.97
293,281.57 315,006.24
Subsidy/Concession on Fertilisers 211,221.46 304,261.07
211,221.46 304,261.07
Sale of Services
Gross income from contracts and other services 989.58 547.42
Total Revenue from operations 505,492.61 619,814.73
Sale of own products comprises of:
Factamfos 20-20-0-13 173,043.13 190,131.63
Ammonium Sulphate 37,859.34 41,043.90
Caprolactam 50,746.82 69,641.71
Gypsum 2,791.79 3,176.52
Others 3,970.95 9,955.51
Total 268,412.03 313,949.27
Sale of traded products:
NPK 15:15:15 17,020.37 -
Muriate of Potash 7169.49 -
Organic Manures 631.61 1056.97
Nano Urea & DAP 37.89 -
PDM 7.20 -
PROM 2.98 -
Total 24,869.54 1,056.97
Subsidy/Concession on Fertilisers
Factamfos 20-20-0-13 165,493.94 256,446.53
Ammonium Sulphate 30,989.74 47,813.52
Muriate of Potash 709.71 0.67
Imported Complex Fertilisers 14,028.07 0.35
City Compost - -
Others - -
Total 211,221.46 304,261.07

1. Consequent to the implementation of Direct Benefit Transfer (DBT) subsidy scheme, subsidy income on
fertilisers is recognised at the time of sale to dealers. However, the subsidy claim is generated at the rate
applicable on the date of sale of fertilisers to ultimate beneficiary. The subsidy portion of the stock with
dealers pending sale to ultimate beneficiary as on 31.03.2024 is ` 23444.32 lakhs. For the financial year
2022-23, the subsidy portion of the 90% of the stock with dealers pending sale to ultimate beneficiary
was estimated at 50% of the subsidy rates prevailing as on 31.03.2023 pending notification of subsidy
rates (`10278.27 lakh).

169
 Note Forming Part of Standalone Financial Statements

` In Lakh
Note No. 29 Other income
Particulars Year ended Year ended
31.03.2024 31.03.2023
Interest income:
On deposits with banks 18,803.72 11,150.32
On loans, advances, claims, overdues 113.29 76.39
Dividend income
Other than joint venture 45.36 38.88
Other non-operating income
Excess provisions written back 84.44 54.05
Transfer from deferred Government grants:
On EEC project 0.94 0.94
Rent & Compensation towards Right of use 424.72 617.59
Profit on sale of fixed Assets 242.81 838.28
Miscellaneous income 596.34 781.23
20,311.62 13,557.68

Note No. 30.Cost of materials consumed

Particulars Year ended 31.03.2024 Year ended 31.03.2023
Raw Material 294,842.36 412,999.93
Packing Material 4,502.35 4,898.45
299,344.71 417,898.38

Note : The physical verification of raw materials has been carried out on or around 31st March 2024. The
differences over book figures in the case of raw material for the financial year 2023-24 has been adjusted in
consumption ( Excess(-) / Shortage). Current year ` (-) 760.62 lakh (Previous year ` (-) 2419.53 lakh ).
Note No. 31 Purchases of Stock-in-trade
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Complex Fertilisers/ Organic Manures/
Muriate of Potash etc. 36,389.76 503.70
36,389.76 503.70

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` In Lakh
Note No. 32 .Changes in inventories of finished goods , stock-in-trade and work-in-progress
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Opening stock
Finished Goods 64,527.36 20,846.25
Stock-in-trade 0.00 0.00
Work-in progress 5,406.85 4,193.33
69,934.21 25,039.58
Closing stock
Finished Goods 65,812.40 64,527.36
Stock-in-trade 2,617.11 0.00
Work-in- progress 6,570.64 5,406.85
75,000.15 69,934.21
Changes in inventories: (Increase)/ Decrease (5,065.94) (44,894.63)

Note No. 33 Employee benefits expense

Particulars Year ended 31.03.2024 Year ended 31.03.2023
Salaries and Wages 21,122.23 21,335.30
Contribution to Provident Fund 1,888.86 1,908.42
Leave encashment (Net of Provision) 2,103.67 2,299.20
Gratuity 1,151.99 1,303.15
Staff welfare expenses 2,127.24 1,972.46
28,393.99 28,818.53

1. During the year ,Ministry has approved the proposal for enhancement of the age of retirement of
below board level employees to 60 from 58.
2. During the year 2022-23 Company had implemented 2017 pay revision of the Board level and below
Board level executives and Non-unionized supervisors and of the workmen, with effect from
01.04.2022, as per the Department of Fertilizers order dated 14.12.2022 and 23.12.2022
respectively.
Note : Remuneration to Directors, including retirement benefits paid during the year

Particulars Year ended 31.03.2024 Year ended 31.03.2023

Shri Kishor Rungta, Chairman and Managing Director
(From 02.02.2019 till 01.02.2024) 53.80 49.80
Shri.Anupam Misra, Director (Marketing)
(from 14.07.2020) 44.58 40.64
Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer
(From 08.03.2021) 48.96 42.43
Shri.Kesavan Nampoothiri A.S, Director (Technical)
(From 22.03.2021 up to 30.09.2022) - 21.93
Dr.Jayachandran.K, Director (Technical)
(From 03.03.2023) 51.96 3.12
199.30 157.92

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 Note Forming Part of Standalone Financial Statements

Note No. 34 Finance costs ` In Lakh

Particulars Year ended 31.03.2024 Year ended 31.03.2023

Interest
Interest on loans from the Government of India
(Refer Note 22.2) 23901.58 23901.58
Interest -others 503.93 577.02
Other Finance costs 23.92 21.89
Finance Cost on lease liability 263.34 253.84
24,692.77 24,754.33
Note No. 35 Other expenses
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Consumption of stores and spare parts 5,172.83 4,778.82
Power and Fuel 60,549.24 75,153.17
Rent 937.89 445.53
Repairs and maintenance to buildings 478.52 274.67
Repairs and maintenance to machinery 5,462.30 4,121.96
Insurance 350.27 346.29
Rates and Taxes 144.50 110.15
(Gain)/Loss on exchange rate variation (net) (629.93) 2,620.96
Material and other direct charges on contracts 691.18 115.13
Auditors' Fees and Expenses ( Refer note 1 below) 18.71 20.82
Freight , Handling and other charges 28,430.34 24,655.81
Bad debts written off 0.00 15.04
Provision for doubtful receivables & advances 106.97 18,373.98
Damages/Shortages/(Excess) of Stores , Spares & Products (Net)
(Refer Note 4 below) 8.04 23.03
Provision for obsolescence of stores (Net) (739.86) 2,394.53
Research and Development Expenditure (Refer note 2 below) 57.63 35.67
CISF Expenses (including salaries) 3,403.75 3,313.39
Directors' Sitting Fees 6.00 5.00
Loss on Fixed assets sold/written off 1.96 0.00
Expenses towards Corporate Social Responsibility ( Refer note 6 below) 873.22 421.18
Miscellaneous Expenses ( Refer note 3 below) 6,414.82 5,998.97
111,738.38 143,224.10
Less :Allocated Expenses [net of income from inter-divisional jobs of
₹ 1862.30 lakh] (Previous year ₹ 2997.98 lakh) (1,255.75) (1,226.34)
110,482.63 141,997.76
Notes:
1. Payments to the auditor as
Particulars Year ended 31.03.2024 Year ended 31.03.2023
(a) Auditor 10.60 10.60
(b) for taxation matters 0.00 0.00
(c) for company law matters 0.00 0.00
(d) for management services 0.00 0.00
(e) for other services 6.85 7.60
(f) for reimbursement of expenses 0.25 0.35
Total 17.70 18.55

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2. Research and Development Expenditure includes expenditure towards salary ` 49.38 lakh (Previous
year `35.39 lakh), chemicals & stores ` 3.43 lakh (Previous year ` 0.19 lakh) and depreciation ` 0.09
lakh (Previous year `0.09 lakh).
3. Miscellaneous Expenses includes Directors travel amounting to ` 20.70 lakh (Previous year ` 13.47 lakh)
4. Differences noticed ( Excess(-)/Shortage) on perpetual verification of stores and spares compared to
book records have been adjusted in the books of accounts, which for Current year is ` 8.04 lakh
(Previous year ` 7.68 lakh)
5. Provision for doubtful receivables & advances includes provision towards VAT reimbursement
receivable on the RLNG procurement up to 31.03.2022 .Current year Nil ( Previous Year ` 18301.45
lakh).From the financial year 2022-23, the VAT incurred on RLNG procurement is being accounted as
'consumption of Raw material / fuel' in the Statement of Profit & loss (Refer Note 13.1).
6. Expenses towards Corporate Social Responsibility
The Company is liable to spend during the financial year 2023-24, ` 873.22 lakhs (Previous Year- ` 471.39
lakhs), on Corporate social responsibility, being 2% of the average net profit for the immediately preceding
three financial years, as per section 198 of the Companies Act 2013. Company has spent an amount of `
1662.46 lakhs (Previous year-` 35.31 lakhs)towards Corporate Social Responsibility projects pertaining to
the financial year. The excess amount of ` 789.24 lakhs has been classified under 'Current Assets'.
` In Lakh
Particulars Year ended Year ended
31.03.2024 31.03.2023
(i) Shortfall/ (Excess) expenditure carried forward from previous year
(Inluding provision for ongoing projects) 385.87 -50.21
(ii) Amount required to be spent by the company during the year 873.22 471.39
(iii) Amount of CSR expenditure spent towards approved projects
of the year (On purposes other than
Construction/acquisition of any asset) 1662.46 35.31
(iv) Amount spent towards the Ongoing projects of the
previous years 88.78 NA
(v) Closing Provision towards Ongoing projects # 300.61 385.87
(vi) Shortfall /(Excess) at the end of the year * (792.77) -
(vii) details of related party transactions NA NA
# ` 300.61 lakhs remaining unspent as on 31.03.2024, earmarked for identified projects have been
maintained in a separate bank account
*Including ` 3.52 lakhs net excess spent on certain ongoing projects of the year 2022-23, as against the
allocated fund

(viii) Nature of CSR activities for the year :

Particulars 2023-24 2022-23

Rural development projects 1412.77 -
Promotion of Health care 216.79 9.78
Promoting education 25.79 -
Making available safe drinking water 6.77 8.29
Training to promote Paralympic sports - 7.00
Contribution to incubators or research and
development projects in the field of science - 9.50
Other CSR activities 0.34 0.74
Total 1662.46 35.31

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 Note Forming Part of Standalone Financial Statements

Note No. 36. Exceptional Items

Particulars Year ended 31.03.2024 Year ended31.03.2023
Recovery towards differential Subsidy
( Refer 1 below) (6,307.18) -
Provision towards recovery as per MRP
Reasonableness guidelines (Refer 2 below) (8,835.78) -
Provision for Recovery on account of Additional
Compensation for usage of Naphtha (Refer 3 below) (9,415.93) -
(24,558.89) -
1) The Government of India vide office memorandum No – 23011/1/2023- P&K dated 18th May 2023 has
revised the Nutrient Based Subsidy for P&K fertilizers applicable for the period 01.01.2023 to
31.03.2023. Department of Fertilizers has recovered ₹6307.18 lakh towards this downward revision of
subsidy for the quarter ended 31.03.2023 during the year 2023-24
2) In line with guidelines issued by the Department of Fertilizers vide office memorandum No –
23011/8/2018-MPR dated 15th November 2019 which restricts profit margin of the Fertilizer
companies to 12% of the cost of sales, company has made provision amounting to ₹ 8835.78 lakhs in
respect of the financial year 2022-23 during the current year
3) Department of Fertilisers vide office Memorandam No – 23011/8/2010-MPR dt 26th April 2024 has
directed recovery of₹ 9415.93 lakhs based on the Final rates recommended by the Tariff commission
towards Naphtha Compensation for the period 01.04.2010 to 04.10.2013. Provision towards the same
has been made during the current year.
Note No. 37. Earning per Share
Particulars Year ended31.03.2024 Year ended 31.03.2023
Profit / (Loss) after Tax 14,616.91 61,283.21
Number of Equity Shares 647071974 647071974
Face Value per Share (` ) 10.00 10.00
Basic/ Diluted earnings per Share (` ) 2.26 9.47

38. Disclosure required for Micro Small and Medium Enterprises ` In Lakh
Sl. No. Particulars As at 31.03.2024 As at 31.03.2023
1 Principal amount remaining unpaid ** 0.00 0.00
2 Interest due thereon 0.00 0.00
3 Interest paid by the Company in terms of Section
16 of Micro, Small and Medium Enterprises
Development Act,2006 ,along with the amount of the
payment made to the supplier beyond the appointed
day during the year. 0.00 0.00
4 Interest due and payable for the period of delay
making payment (which have been paid but beyond
the appointed day during the year) but without adding
the interest specified under Micro, Small and Medium
Enterprises Development Act, 2006. 0.00 0.00
5 Interest accrued and remaining unpaid 0.00 0.00
6 Further interest remaining due and payable even in
the succeeding years, until such date when the
interest dues as above are actually paid to the
small enterprise for the purpose of disallowance as
a deductible expenditure under Section 23 of the Micro,
Small and Medium Enterprises Development Act, 2006. 0.00 0.00
** Amount due and unpaid as at the year end
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39. Trade Payables Ageing schedule

` In Lakh
Particulars Not Due as on Outstanding for following periods from As at
31.03.2024 due date of payment 31.03.2024

Less than 1-2 years 2-3 years More than Total

1 year 3 years
(i) MSME 1025.21 0.00 0.00 0.00 0.00 1025.21
(ii) Others 46,030.58 0.00 0.00 0.00 0.00 46030.58
(iii) Disputed dues –|
MSME 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Disputed dues -
Others 0.00 18.38 3.48 470.63 836.71 1329.20
Total 47055.79 18.38 3.48 470.63 836.71 48,385.00

Particulars Not Due as on Outstanding for following periods from As at

31.03.2023 due date of payment 31.03.2023

Less than 1-2 years 2-3 years More than Total

1 year 3 years
(i) MSME 429.50 0.00 0.00 0.00 0.00 429.50
(ii) Others 36,065.54 0.00 0.00 0.00 0.00 36,065.54
(iii) Disputed dues –
MSME 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Disputed dues -
Others 0.00 0.00 470.63 68.37 768.33 1307.33
Total 36,495.04 0.00 470.63 68.37 768.33 37,802.37

40. Fair Value Hierarchy

The management has assessed that its financial assets and liabilities like cash and cash equivalents, trade
receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
The following methods and assumptions were used to estimate the fair values for the given below financial
assets.
Investment in Unquoted Equity Shares
The fair values of the unquoted equity shares have been estimated using NAV model.
Derivatives not designated as hedges
Foreign exchange forward contracts if entered in to, are valued using valuation techniques, which employs
the use of market observable inputs (i.e. based on inputs/statement of position received from banks).
Investment Properties
The value of the investment properties are based on the information available in Government of Kerala fair
value notification, market conditions etc.

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 Note Forming Part of Standalone Financial Statements

` in Lakh
31.03.2024 31.03.2023
Significant observable inputs Significant observable inputs
Particulars
Level 2 Level 3 Level 2 Level 3
Financial Assets
Investment in Unquoted
Equity Shares of:
Indian Potash Limited 12,271.69 10,576.59
Travancore Cochin Chemicals Ltd 231.27 245.74
Capexil Agencies Ltd. 0.15 0.15
Kerala Enviro Infrastructure Limited 532.95 462.88
Foreign Currency Asset on Forward
exchange contract ( Net) 102. 41 -
Financial Liabilities
Amount Payable under forward
exchange contracts (Net) - -
Assets for which Fair values are
disclosed
Investment Properties 3,487.69 2,906.41
Level 1 hierarchy is for financial instruments with quoted prices. This includes listed equity instruments,
traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges are to be valued using the closing price as at the reporting
period. The mutual funds are to be valued using the closing NAV. Company do not have any such
investment, as on the reporting date of current year and previous year.
The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the-counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in
Level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset
included in Level 3.
Operating Leases
A. Leases as lessor
The Company leases out its investment property on operating lease basis
i) Future minimum lease receivable
At 31 March, the future minimum lease receivables under non-cancellable leases are receivable as follows
` in Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Within one year 124.69 124.86
Between two and five years 448.93 498.93
More than five years 707.50 782.19
ii) Amounts recognized in profit and loss (` In Lakh)
Particulars As at 31.03.2024 As at 31.03.2023
Lease Rent 124.75 124.69
124.75 124.69

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B. Leases as lessee
The Lease Liability is measured at the present value of remaining lease payments at the date of initial
application and Right-of-use asset has been recognized at an amount equal to Lease Liability adjusted by an
amount of any prepaid expenses. . Under Ind AS 116 “Leases”, at commencement of lease, the Company
recognizes Right-of-use asset and corresponding Lease Liability, at State Bank of India 1 year MCLR. Right-
of-use asset is depreciated over lease term on systematic basis and Interest on Lease Liability is charged to
Statement of Profit and Loss as Finance cost.
Recognition of right of use Asset and corresponding lease liability, as per IndAS 116, has been made in
respect of the property taken for lease (Operating lease) for the purpose of storage and handling of Raw
Materials, at Willington Island and for Guest House facility at New Delhi
a) The following is the detailed breakup of Right-of-use assets (by class of underlying assets) disclosed in
Note No. 2C ` in Lakh
Particulars Gross Block Depreciation Net
Carrying
amount
As at Lease Disposal/ Remeasurement As at As at For the On Disposal/ Up to As at
01-04-2023 Additions Deductions of Lease 31-3-2024 01-04-2023 year Deductions 31-3-2024 31-3-2024
during during the during during the
the year year the year year

Land 3,589.47 147.78 105.67 3,842.92 436.95 157.32 0.00 594.26 3,248.66
Building 16.17 16.12 -16.17 0.00 16.12 8.82 16.87 -16.17 9.52 6.59
Total 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25

b) The following expenses have been charged to Statement of Profit and Loss during FY 2023-24

Particulars ` in Lakh
Interest on Lease Liabilities 263.34
Expenses relating to short term leases 29.78
Expenses relating to leases of low value items 30.30
Expenses relating to variable lease payments
(not included in measurement of lease liabilities) 877.82

c) Total Cash outflow for leases during FY 2023-24 is ` 315.31 Lakhs

d) Income from Sub leasing of Right-of-use assets recognized in Statement of Profit and Loss during FY
2023-24 is Nil
e) Maturity Analysis of Lease Liabilities as per Ind AS 116 Leases

Particulars Contractual cash flows in ` Lakh

Up to 1 year 1-3 years 3-5 Years More than 5 years Total

Cash outflows 316.96 631.49 649.36 5,518.64 7116.45

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 Note Forming Part of Standalone Financial Statements

` in Lakh
41 . Financial Instrument Classification
Particulars As at 31.03.2024 As at 31.03.2023
Financial Assets
Financial Assets at Amortised Cost
Trade Receivables 15,813.73 47,887.48
Cash and Cash equivalents 43,566.83 4,969.15
Other Bank Balances 224,365.46 233,815.25
Other Financial Assets 25,732.47 24,636.99
309,478.49 311,308.87
Financial Assets at Fair Value through
Other Comprehensive Income:
Equity Investments 13,036.93 11,286.23
Financial Assets at Fair Value through
Profit and Loss Statement:
Foreign Currency Asset on Forward exchange contract ( Net) 102.41 -
13,139.34 11,286.23
Financial Liabilities
Financial Liability at Amortised Cost
Borrowings 177,558.75 180,908.57
Trade Payables 48,385.00 37,802.37
Other Financial Liabilities 188,047.55 164,780.94
413,991.30 383,491.88
Financial Liabilities at Fair Value through
Profit and Loss Statement:
Liability on Forward Exchange contract (Net) 0.00 0.00
0.00 0.00

42. Financial Risk Management

The company’s activities are exposed to market risk, liquidity risk and credit risk.
This note explains the sources of risk which the Company is exposed to and how the Company manages the
risk in the financial statements
Risk Exposure arising from Measurement Management
Credit risk Cash and cash equivalents, Ageing analysis, Diversification of bank
trade receivables, financial Credit Analysis, deposits, credit limits and
assets measured at Post Dated Cheques Bank Guarantees,Post Dated
amortized cost. and Security Deposit Cheques and Security Deposit.

Liquidity risk Borrowings and other Rolling cash flow Availability of committed credit
liabilities forecasts lines and borrowing facilities

Market risk – Recognised financial assets Monitoring of Foreign Forward Foreign

foreign exchange and liabilities not denominated Currency rates exchange contracts based
in Indian rupee (INR) on market trends

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Annual Report 2023 - 24

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's trade and other
receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in
case of all the financial instruments covered below is restricted to their respective carrying amount.
(i) Trade and other receivables
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit
limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of
business.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting
to ` 15813.73 lakh (Previous year ` 47887.48 lakh) of which ` 6750.04 lakh (previous year ` 40259.93 lakh)
due from Government of India relating to subsidy receivable. Trade receivables mainly constitute subsidy
receivable from the Government of India and receivable from sale of petrochemical products
Expected credit loss assessment for Trade and other receivables
The Company has been consistently following a policy of creating 100% provision for the unsecured portion
of the trade receivables that are more than three years old, except subsidy receivables from Government of
India, wherein allowance for loss is made after analysis of possibility of realisation.
The following table provides information about the exposure to credit risk and the provisions made
` In lakh
As at 31/03/2024 Total receivables Provision for doubtful receivables
Trade Receivables 11,009.12 (1,945.43)
Subsidy Receivable 25,413.08 (18,663.04)
Total 36,422.20 (20,608.47)
` In lakh
As at 31/03/2023 Total receivables Provision for doubtful receivables
Trade Receivables 9,597.44 (1,969.89)
Subsidy Receivable 40,671.26 (411.33)
Total 50,268.70 (2,381.22)

The movement in the loss allowance in respect of trade and other receivables during the year was as
follows:- ` In lakh
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 2,381.23 2,365.32
Provisions released during the year (84.44) (49.71)
Provisions made during the year 18,311.68 65.62
Provision at the end of the year 20,608.47 2,381.23

(ii) Cash and Cash equivalents and Other Bank Balances

The Company held cash and cash equivalents and other bank balances of ` 267932.29 lakhs at 31st March
2024 (31st March 2023: ` 238784.40 lakhs). The Cash equivalents are held with banks with good credit
ratings and financial position. Also, the Company invests its short term surplus funds in bank fixed deposits,
which carry no / low market risks for short duration and therefore does not expose the Company to credit
risk.

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 Note Forming Part of Standalone Financial Statements

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management. Prudent liquidity risk
management implies maintaining sufficient cash and the availability of funding through an adequate amount
of credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses,
treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows.
The following are the remaining contractual maturities of significant financial liabilities at the reporting date.
Maturity Analysis of Significant Financial Liabilities As on 31/03/2024
Contractual Cash Flows (` In Lakh)
Total Up to 1 year 1-5 years
Government of India Loan
(Refer note 1 below) 368,261.40 368,261.40 0.00
Intercorporate Loan 565.38 565.38 0.00

As on 31/03/2023
Contractual Cash Flows (` In Lakh)
Total Up to 1 year 1-5 years
Government of India Loan
(Refer note 1 below) 344,359.82 344,359.82 0.00
Intercorporate Loan 1,149.68 589.50 560.18
1. The loan from Government of India along with interest is repayable in three or more equated installments
within a period of 5 years ending by 2022.Company has submitted a Financial Restructuring proposal to
Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on
Government of India loan, conversion of loan amounting to ` 28273.00 lakhs into equity and conversion of
loan amounting to `100000.00 lakhs as interest free loan, repayable in yearly installments. The financial
restructuring proposal submitted by the Company is under the consideration of the Department of
Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and
interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016 . The
management expects restructuring of the loan, whereby the Government shall grant sufficient time for the
repayment of the loan and interest due thereon. Accordingly, the Company can manage the immediate
liquidity requirement.
Financing arrangements(` In Lakh)
The Company has sufficient funds for its business/operational activities. The following is the undrawn fund
based borrowing facilities at the end of the reporting period:

Particulars As at 31.03.2024 As at 31.03.2023

Expiring within one year (Bank Overdraft/ CC Limit) 29,800.00 17,463.00
LC Bill discounting limit 15,000.00 12,160.18
The credit facilities of Banks are subject to compliance with sanctioned terms & conditions. These credit
facilities have an average maturity of one year. Besides, the above, Company has Non Fund Based Working
Capital Arrangement with various Banks, with a lien on Term Deposits of the Company.

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(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and
other prices, such as equity price risk and commodity risk. .
(i) Currency Risk
The Company’s activities are exposed primarily to the financial risk of changes in foreign currency rates. To
mitigate the foreign currency risk, the company is closely monitoring the market trend to take appropriate
action
The details of foreign currency balances which are not hedged as at the Balance Sheet date are as below:-

Particulars Figures as at 31.03.2024 Figures as at 31.03.2023

Foreign Currency Indian Rupee Foreign Currency Indian Rupee
(In lakh) (In lakh) (In lakh) (In lakh)
Trade Payable USD 150.60 12649.00 USD 235.12 19454.04

Sensitivity analysis
A reasonably possible strengthening (weakening) of the USD, JPY or EUR against INR at 31st March 2024
would have affected the measurement of financial instruments denominated in foreign currencies and
affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular interest rates, remain constant and ignores any impact of forecast sales and purchases. ` in Lakh

Effect in INR (before tax)

Strengthening Weakening

For the year ended 31st March, 2024

3% movement in,
USD (379.47) 379.47
For the year ended 31st March, 2023
3% movement in,
USD (583.62) 583.62

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in
the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow
interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate
because of fluctuations in the interest rates
Exposure to interest rate risk:
The Company's investments are in Bank fixed deposits wherein the interest rates are fixed, as on the
reporting date.

181
 Note Forming Part of Standalone Financial Statements

The Company do not have any fund based borrowing with banks as on the reporting date. The interest rate
on the Company's borrowings from Government of India is not fluctuating. The rate of interest on
Intercorporate loan from Rashtriya Chemicals and Fertilisers Ltd is subject to change, based on the lowest
cost of their working capital finance. The Intercorporate loan outstanding as on 31.03.2024 is `510 lakh and
the applicable interest as on the reporting date is 7.82%.
(iii) Commodity rate risk
The Company's profitability gets affected by the price differential (also known as Margin) between prices of
products (output) and the price of the raw materials used in production (input). Company has entered in to
agreement with suppliers of one of the major raw materials, Regassified Liquified Natural Gas and sulphur,
to mitigate the fluctuation in market price
(iv) Price Risk
The Company’s exposure to equity investments price risk arises from investments held by the Company
and classified in the financial statements at fair value through OCI. The Company intends to hold these
investments for long-term for better returns and price risk will not be significant from a long term
perspective.
Exposure to price risk ` In Lakh

Effect on OCI
31.03.2024 31.03.2023
Strengthening Weakening Strengthening Weakening
1% movement
Investment in Kerala Enviro
Infrastructure Ltd 5.33 (5.33) 4.63 (4.63)
Investment in Travancore
Cochin Chemicals Ltd 2.31 (2.31) 2.46 (2.46)
Investment in Indian Potash Ltd 122.72 (122.72) 105.77 (105.77)

CAPITAL MANAGEMENT
The Company’s primary objective is to maximize the shareholders’ value. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. Presently, the Company sources 100 % of its capex requirement from the internal
accruals. The Company, being a Central Public sector undertaking, is governed by the guidelines of the
Department of Investment & Public Asset Management (DIPAM), which specifies the minimum
percentage of dividend to be declared. Taking in to consideration the future capex requirements, the
Company considers the payment of dividend at the appropriate rates.
43. Disclosure under Ind AS 24 on related party transactions are given below
Since Government of India owns 90% of the Company’s equity share capital (under the administrative
control of Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the
Government and other Government controlled entities have been reported in accordance with para 26 of
Ind AS 24.
Certain transactions are carried out with other government related entities for purchase of Gases, for
procurement of Raw Materials / Finished Goods, Assets / Spare Parts from Original equipment
manufacturers, which are significant in terms of value, the details of which are as under:

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` in Lakh
Name of Entity Nature of Transaction 2023-24 2022-23
GAIL (India) Ltd Transmission Charges 5,921.73 13,682.03
Bharat Petroleum Corporation Ltd Procurement of Petroleum Products 22,440.12 55,358.19
Indian Oil Corporation Ltd Procurement of Gas / Petroleum Products 144,937.44 176,279.61
Mangalore Refinery and Petrochemicals Ltd Procurement of Petroleum Products/Sulphur/Benzene 18,890.90 25,227.96
ONGC Mangalore Petrochemicals Ltd
( merged to MRPL from May 2022) Procurement of Petroleum Products/Benzene 0.00 3,516.09
Hindustan Petroleum Corporation Ltd Procurement of Petroleum Products 173.95 221.79
Steel Authority of India Ltd Procurement of Steel Structural 109.16 10.56
Hindustan Insecticides Ltd Procurement of consumables/ spare parts 28.53 2.65
National Fertilisers Ltd Sale of Fertilisers 1,184.74 0.00
BRAHAMPUTRA VALLEY FERTILIZERS
CORPORATION LTD (BVFCL) Sale of Fertilisers 1,413.83 3,192.34
Rashtriya Chemicals and Fertilisers Ltd Sale of Fertilisers 0.00 371.39
Hindustan Insecticides Ltd Sale of Fertilisers 0.00 1,034.59
Hindustan Urvarak & Rasayan Limited Sale of Fertilisers 1,472.18 0.00
Rashtriya Chemicals and Fertilisers Ltd Principal repayment of Intercorporate Loan 510.00 510.00
Rashtriya Chemicals and Fertilisers Ltd Interest on Intercorporate Loan 67.17 101.40
Bharat Petroleum Corporation Limited Services Provided 157.62 119.85
Hindustan Organic Chemicals Ltd Services Provided- FEW 0.00 4.43
Cochin Shipyard Ltd Services Provided- FEW 1.06 0.00
Hindustan Petroleum Corporation Ltd Services Provided - 0.00 125.79
Indian Oil Corporation Ltd Services Provided 126.26 185.24
Rashtriya Chemicals and Fertilisers Ltd Services Provided 0.00 3.87
Rashtriya Chemicals and Fertilisers Ltd Reimbursement of POS AMC Charges 2.69 0.00
Madras Fertilizers Limited Reimbursement of POS AMC Charges 9.48 6.22
Rashtriya Chemicals and Fertilisers Ltd Expenses incurred in connection with parliamentary Committee 12.47 0.00
National Fertilisers Ltd Expenses incurred in connection with parliamentary Committee 12.47 0.00
Madras Fertilizers Limited Expenses incurred in connection with parliamentary Committee 12.47 0.00
Bharat Heavy Electricals Ltd Procurement of Assets/Spare parts 307.20 175.06
Bharat Earth Movers Ltd Procurement of Assets/Spare parts 18.47 10.42
Kochi Metro Rail Ltd Lease of property 166.95 151.29
Indian Oil Corporation Limited Rent 16.99
Hindusthan Insecticides Ltd Rent 3.60
Kochi Salem Pipeline Pvt Ltd. Lease of property 59.00 199.40
GAIL (India) Ltd Lease of property 13.69 13.69

The above referred transactions have been carried out on arm’s length basis with the said entities.
The other disclosures with related parties are as under:
1) Associates & Joint Ventures
Relationship

Sl No Name of Entity Percentage of ownership

interest as at
31.03.2024 31.03.2023
1 FACT-RCF Building Products Ltd(FRBL) 50.00% 50.00%

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 Note Forming Part of Standalone Financial Statements

Transactions during the year with the above referred related parties: ` in Lakh

Sl No Particulars 2023-24 2022-23

i) Shares allotment received against share application money 0.00 235.70
ii) Dividend received 0.00 0.00
iii) Sales of Products 0.00 0.00
iv) Others 0.56 0.48

The provision towards the amount given as material, Services and advances made in the earlier financial
years continues. A provision amounting to `0.56 Lakh (Previous year ` 0.48 lakh) has been made for the
current year also.
` in Lakh
Balance Outstanding:
Sl No Particulars As at 31.03.2024 As at 31.03.2023
Receivable from FACT-RCF building products Ltd :
Towards sale of gypsum & services 297.72 297.72
Salary of deputationists and other expenses 828.96 828.40
Under Corporate Guarantee and other
Contractual obligations 2,789.60 2,789.60
Advance against Equity Pending allotment 0.00 0.00
Provision for bad & doubtful debts/advances 3,916.28 3,915.72
Provision towards other Contractual Obligation 239.60 239.60
Provision for diminution in the value of investments 3,522.70 3,522.70

The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the
lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF.
During the year 2018-19, RCF had settled the entire liability to the bankers, to the extent of `5100 lakhs
including 50% share of the Company `2550 lakhs on the condition that the Company shall treat the amount
paid by RCF on behalf of the Company as Inter-Corporate loan. Accordingly, the amount of ` 2550 lakhs has
been classified as Intercorporate loan. The principal amount outstanding as on 31.03.2024 is ` 510 lakh
(Previous year ` 1020 lakh). Interest rate applicable on the loan for the year 2023-24 is 7.82 % p.a. (Previous
year- 7.38% p.a).
Department of Fertilisers, Govt of India, had accorded the approval (16 November 2018) to The Fertilisers
and Chemicals Travancore Limited (FACT) for additional investment of ` 2925 lakh to the equity share capital
of FACT-RCF-Building Products Limited (FRBL).FRBL is a joint venture between FACT and Rashtriya
Chemicals & Fertilisers Limited (RCF). FACT in its 75th Annual General Meeting approved the additional
investment in FRBL. Against approval received for ` 2925 lakh, FRBL had issued equity shares amounting to
` 1518 lakh towards gypsum supplied and other services provided by FACT during the period from 2010-
2013. Further,FRBL during the year 2022-23 has allotted shares to FACT amounting to ` 235.70 lakhs.
Balance Equity Shares against which gypsum and other services provided by FACT during 2014-2017, are
pending for allotment by FRBL. The same has been disclosed under advances to related parties. Further,
supply of gypsum from FACT amounting to ` 239 lakh is still pending as on 31 March 2024 to complete the
above additional investment.
National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in
CP(IBC)/39/KOB/2023 filed by a financial creditor of FACT-RCF Building Products Ltd (FRBL) appointed an
Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution Proceedings against
FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was
superseded.The Resolution Professional commenced the proceedings and is in the process of publishing
advertisement for Expression of interest from the prospective applicants for submission of resolution plan
for FRBL.

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During the year 2009-10, the Company has along with Department of Factories and Boilers, Government of
Kerala, formed a society under the Travancore Literary, Scientific and Charitable Societies Act 1955 with the
objective of conducting courses relating to welding technologies with a grant of ` 1 Crore from the
Government of Kerala, under the name Kerala institute of Welding and Research. The contribution from the
Company is only provision of its existing facilities of Training School. The accounts of the society are not as
society is formed with an objective of not obtaining any economic benefits from its activities and is
considered immaterial to the Company's activity.
2) Key Management Personnel
1. Shri S C Mudgerikar, Chairman & Managing Director ( From 23.02.2024)
2. Shri Kishor Rungta, Chairman and Managing Director (from 02.02.2019 to 01.02.2024)
3. Shri.Anupam Misra, Director (Marketing) (from 14.07.2020)
4. Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer (From 08.03.2021)
5. Dr.Jayachandran.K, Director (Technical) (From 03.03.2023)
6. Smt.Susan Abraham, Company Secretary from 15.07.2022
Transactions with related parties:
Remuneration to key management personnel : (` In Lakh)

Sl No Particulars Short Term Employee Termination Other long-term benefits/

Benefits benefits** Share-based payments/
Post-term employee benefits
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
1 Sri Kishor Rungta, Chairman
and Managing Director
(From 02.02.2019 to 01.02.2024 ) 53.80 49.80 0.00 0.00 0.00 0.00
2 Shri.Anupam Misra, Director
(Marketing) (from 14.07.2020) 44.58 40.64 0.00 0.00 0.00 0.00
3 Shri.S.Sakthimani, Director
(Finance) & Chief Financial Officer
(From 08.03.2021) 48.96 42.43 0.00 0.00 0.00 0.00
4 Shri.Kesavan Nampoori A.S,
Director (Technical)
(From 22.03.2021 to 30.09.2022) 0.00 16.83 0.00 5.10 0.00 0.00
5 Dr.Jayachandran.K, Director
(Technical) (From 03.03.2023) 51.96 3.12 0.00 0.00 0.00 0.00
6 Shri K V Balakrishnan Nair,
Company Secretary & Executive
Director (Finance) up to
31.05.2022 0.00 9.23 0.00 37.98 0.00 0.00
7 Smt.Susan Abraham, Company
Secretary from 15.07.2022 28.34 16.55 0.00 0.00 0.00 0.00
227.64 178.60 0.00 43.08 0.00 0.00

** On payment basis
The whole time Directors have been allowed the use of company car and for private journey upto a ceiling
of 9000 kms. per year, on payment as prescribed by the Government.
Gratuity and leave encashment benefit accrued to the Directors have not been disclosed as the
contribution payable has been provided in the accounts and separate figures are not ascertainable.

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 Note Forming Part of Standalone Financial Statements

3) Other related parties

Party Nature of Relationship

i. FACT Cochin Division Employees To manage the provident fund contribution in respect
Provident Fund Trust of the employees of the Company
ii. The FACT Employees Provident Fund To manage the provident fund contribution in respect
of the employees of the Company
iii. FACT Employees Group Gratuity To manage fund earmarked for gratuity under group
Fund Trust gratuity accumulation scheme and provide gratuity
benefits including insurance towards future service
gratuity benefit
iv. FACT Employees Superannuation To provide superannuation benefits
Benefit Fund Trust to members of the Trust

Transactions with related parties: ` in Lakh

Party Company Contribution
made during the year
2023-24 2022-23
i. The FACT Employees Provident Fund 1818.20 1833.47
ii. FACT Cochin Division Employees Provident Fund Trust 70.66 74.95
iii. FACT Employees Group Gratuity Fund Trust 4200.00 3000.00

Dues outstanding in respect of the above related parties: ` in Lakh

Party As on
31.03.2024 31.03.2023
i. Amount payable to The FACT Employees Provident Fund 356.01 321.92
ii. Amount payable to FACT Cochin Division Employees
Provident Fund Trust 25.20 26.75
iii. Amount receivable from FACT Employees Group Gratuity
Fund Trust 90.38 652.31

44. Financial Reporting of interest in Joint Ventures and Associates

Name of Entity Country of Incorporation Percentage of ownership interest

31.03.2024 31.03.2023
FACT RCF Building Products Ltd. India 50.00% 50.00%

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1. FACT-RCF BUILDING PRODUCTS LTD.:- A Joint venture Company with Rashtriya Chemicals and
Fertilizers Limited (RCF) for manufacture of rapid building materials from Gypsum at Kochi.

Summarized financial information of Company’s investment in

FACT-RCF BUILDING PRODUCTS LTD. (FRBL) (` In Lakh)

Particulars As at 31.03.2024 As at 31.03.2023

(Un audited) (Audited)
Non-Current Assets 234.20 234.20
Cash and Cash Equivalent 7.89 15.95
Current Assets other than Cash and Cash Equivalents 598.84 751.59
Non-Current Liabilities & provisions 6,600.89 6,465.48
Current Liabilities 9,147.27 9,180.22
Equity (14,907.23) (14,643.96)
Proportion of the company’s ownership 50.00% 50.00%
Carrying amount of the investment* 0.00 0.00
(` In Lakh)
Particulars 2023-24 2022-23
(Un audited) (Audited)
Income 29.67 95.57
Cost of materials consumed 0.00 0.00
Changes in inventories 0.00 0.00
Depreciation and amortization expense 0.00 0.00
Finance costs 171.56 706.45
Employee benefits expenses 39.72 48.19
Other Expenses 81.63 131.42
Exceptional items 0.00 0.00
Loss for the year (263.24) (790.49)
Total comprehensive income for the year (263.24) (790.49)
Company’s Share of profit / loss for the year (131.62) (395.25)
* Owing to the company’s share of losses exceeding its interest in the joint venture recognising the share
of loss stands discontinued. Accordingly company has not recognized share of loss of ` 131.62 lakh for the
year (Previous Year ` 395.25 lakh) and ` 10976.31 lakhs cumulatively upto the year ended
31.03.2024(`10844.68 lakh cumulatively upto the year ended 31.03.2023).
National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in
CP(IBC)/39/KOB/2023 filed by a financial creditor of FACT-RCF Building Products Ltd (FRBL) appointed an
Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution Proceedings against
FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was
superseded.The Resolution Professional commenced the proceedings and is in the process of publishing
advertisement for Expression of interest from the prospective applicants for submission of resolution plan
for FRBL.

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 Note Forming Part of Standalone Financial Statements

45. SEGMENTAL REPORTING

Segment Information for the year ended 31st March 2024
Information about Primary Business Segments
` in Lakh. ` in Lakh. ` in Lakh. ` in Lakh.
Fertiliser Petrochemical Others Total
(Unallocated)
REVENUE
External Revenue 452,602.98 53,210.17 1,028.71 506,841.86
543,714.52 77,450.68 941.62 622,106.82
TOTAL REVENUE 452,602.98 53,210.17 1,028.71 506,841.86
543,714.52 77,450.68 941.62 622,106.82
SEGMENT RESULTS
Profit before Interest and Taxation 76,754.89 (16,959.43) (26,411.77) 33,383.69
108,730.06 (17,116.43) (18,068.03) 73,545.60
Unallocated Corporate Expense (1,255.75) (1,255.75)
` (1,226.35) (1,226.35)
Operating Profit 76,754.89 (16,959.43) (25,156.02) 34,639.43
108,730.06 (17,116.43) (16,841.68) 74,771.95
Interest Expense - - 24,692.77 24,692.77
- - 24,754.33 24,754.33
Interest and Dividend Income - - 18,962.37 18,962.37
- - 11,265.59 11,265.59
Profit before Exceptional items and Tax 76,754.89 (16,959.43) (30,886.43) 28,909.02
108,730.06 (17,116.43) (30,330.42) 61,283.21
Exceptional (Income)/Expense 24,558.89 - - 24,558.89
- -
Profit Before Tax after Exceptional Items 52,196.00 (16,959.43) (30,886.43) 4,350.13
108,730.06 (17,116.43) (30,330.42) 61,283.21
Income Tax/Deferred Tax - - (10,266.78) (10,266.78)
Profit after Interest and Taxation 52,196.00 (16,959.43) (20,619.65) 14,616.91
108,730.06 (17,116.43) (30,330.42) 61,283.21
OTHER INFORMATION
Segment Assets 481,347.35 44,681.81 55,485.71 581,514.88
438,340.06 38,788.18 66,300.45 543,428.68
Segment Liabilities 120,893.58 13,949.44 446,671.86 581,514.88
124,286.18 16,688.00 402,454.50 543,428.68
Depreciation 1,908.87 552.74 195.69 2,657.29
2,257.35 559.24 194.54 3,011.13
Capital Expenditure 3,387.35 272.21 78.64 3,738.20
2,932.69 7.08 129.68 3,069.45
The business segments are:-
Segment Products
Fertiliser Ammonium Phosphate, Ammonium Sulphate, MOP, NPK
15:15:15 Organic Manures
Petrochemical Caprolactam
Segments have been identified taking into account the organisation structure.
Segment assets and liabilities represents assets and liabilities in respective segments. Share capital ,Secured and
Unsecured loans, Investments and Accumulated loss are classified as Unallocated.
Segment reporting is prepared based on the methods consistantly followed by the company
Figures given in bottom row pertains to previous year.

RECONCILIATION OF REVENUE 2023-24 2022-23

Segment Revenue as above 506841.86 622106.82
Add Interest Income 18962.37 11265.59
Revenue as per Profit and Loss Statement 525804.23 633372.41

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46. EMPLOYEE BENEFITS

General Description of Defined Contribution Plan
ontributory Superannuation Scheme-The scheme is aimed to provide superannuation benefits to the
employees. Every year company contributes `100 to the fund.
General Description of Defined Benefit Plan
A Leave Encashment and Gratuity
The company operates gratuity plan where in every employee is entitled to the benefit equivalent to fifteen
days salary last drawn for each completed year of service. The same is payable on death , separation from
service or retirement , whichever is earlier. The benefit vests after five years of continuous service. The
company has been accounting for provision on account of leave encashment on retirement based on
actuarial valuation carried out as at the balance sheet date
B Provident Fund
The Provident Fund contributions are made to Trusts administered by the company. The interest rate
payable to the members of the Trust shall not be lower than statutory rate of interest declared by the
Central Government under the Employees Provident Funds and Miscellaneous Provisions Act 1952.
During the year an amount of `1888.86 lakh ( Previous Year `1908.42 lakh) has been charged to Statement
of Profit & Loss towards contribution by the Company. In terms of the Ind AS 19 , the Provident Fund Trust
set up by the company is treated as Defined Benefit Plan since the company has to meet the shortfall in the
fund assets, if any.
During the year, vide GO (P) No. 85/2023/ LBR dated 11.10.2023 Government of Kerala (appropriate
authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew exemption
granted for the Company in respect of The FACT Cochin Division Employees Provident Fund on account of
three years continuous loss incurred by the Company . Company has challenged the same and filed a writ
petition before the Hon' High Court of Kerala and the notification has been stayed by the Honorable High
Court. The matter is still pending.
During the year 2022-23, vide, G.O (Rt.) No. 354/2023/LBR dated 23.03.2023 Government of Kerala
(appropriate authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew
exemption granted for the Company in respect of The FACT Employees Provident Fund, Udyogamandal
Division on account of three years continuous loss incurred by the company . Company has challenged the
same and filed a writ petition before the Hon' High Court of Kerala and the notification has been stayed by
the Honorable High Court. The matter is still pending.
A Movement in net defined benefit (asset)/ liability in respect of Leave Encashment and Gratuity

` in Lakh ` in Lakh ` in Lakh

a. Changes in the present Leave encashment Gratuity CLR Gratuity
value of obligations (Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Present value of obligations

at the beginning of the year 9571.95 9427.18 12506.55 13260.35 990.81 924.35
Interest cost 607.48 554.19 795.43 844.61 68.62 64.28
Past service cost 0.00 0.00 0.00 0.00 - 0.00
Current service cost 1493.21 1745.01 494.51 552.86 47.09 46.87
Benefits paid (2523.54) (2924.94) (3250.25) (2961.16) (88.65) (55.67)
Actuarial loss/(gain) on obligation (527.49) 770.51 187.65 809.89 (22.35) 10.98
Present value of obligations
at the end of the year 8621.62 9571.95 10733.89 12506.55 995.52 990.81

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 Note Forming Part of Standalone Financial Statements

` in Lakh ` in Lakh ` in Lakh

Leave encashment Gratuity CLR Gratuity
(Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

b. Changes in the fair value

of plan assets
Fair value of plan assets
at the beginning of the year 0.00 0.00 1412.27 1296.04 0.00 0.00
Expected return on investment 0.00 0.00 137.95 94.31 0.00 0.00
Employer's contribution 0.00 0.00 4200.00 3000.00 0.00 0.00
Benefits paid 0.00 0.00 (3250.25) (2961.16) 0.00 0.00
Actual return on Plan Asset over
Expected Interest 0.00 0.00 (58.61) (16.92) 0.00 0.00
Fair value of plan assets
at the end of the year 0.00 0.00 2441.36 1412.27 0.00 0.00
Actual return on investment** 0.00 0.00 79.34 77.40 0.00 0.00
c.Amount recognised in
Balance sheet
Present value of obligations at
the end of the year 8621.62 9571.95 10733.89 12506.55 995.52 990.81
Fair value of plan assets at
the end of the year 0.00 0.00 2441.36 1412.27 0.00 0.00
Unfunded net liability
recognised in Balance sheet 8621.60 9571.95 8292.54 11094.28 995.53 990.81
d.Expenses recognised in the
Statement of Profit and
Loss during the year
Current service cost 1493.21 1745.01 494.51 552.86 47.09 46.87
Past service cost 0.00 0.00 0.00 0.00 0.00 0.00
Net Interest on Obligation / Asset 607.48 554.19 657.48 750.29 68.62 64.28
Total Expenses recognised in
the Statement of Profit and
Loss during the year 2100.69 2299.20 1151.99 1303.15 115.71 111.15
Amount Disclosed under Other
Comprehensive Income:
Opening balance (1905.89) (2676.40) 4807.83 3981.02 616.60 605.62
Actuarial (Gain) or Loss on
Obligation side during the year (527.49) 770.51 246.26 826.81 (22.35) 10.98
Closing Amount Disclosed
under OCI (2433.38) (1905.89) 5054.09 4807.83 594.25 616.60

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Annual Report 2023 - 24

` in Lakh ` in Lakh ` in Lakh

Leave encashment Gratuity CLR Gratuity
(Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Investment details % invested as % invested as % invested as

at 31st March at 31st March at 31st March
LIC Group Gratuity
(Cash Accumulation) policy - - 22.74 11.29 - -

Actuarial assumptions

Mortality rate Indian Assured Lives Mortality (2012-14) Ultimate

e. Discount rate 7.25% 7.31% 7.25% 7.31% 7.25% 7.31%

Salary escalation rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%

f. Expected rate of return on

plan assets NA NA 7.25% 7.31% NA NA

GRATUITY- OTHER DISCLOSURE REQUIREMENTS

(i) Description of plan Characteristics and associated risks:
The Gratuity scheme is a final salary defined benefit plan that provides for a lumpsum payment at the time of
separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the
period of service at the time of separation and paid as lumpsum. There is a vesting period of 5 years. The
design entiles the following risks that affect the liabilities and cash flows
Interest rates risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yields fall the defined benefit obligation will tend to increase. Thus the plan exposes the Company to
the risk of fall in interest rates. Some times the fall can be permanent due to a paradigm shift in interest
rate scenarios because of economic or fiscal reasons. A fall in interest rates will result in an increase in
the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability (as shown in financial statements). Even for funded schemes a paradigm downward shift in
bond yields may affect the reinvestment yields and may increase ultimate costs.
Salary inflation risk:
The present value of the defined benefit plan is calculated with the assumption of salary escalation
rate(SER) which is applied to find the salary of plan participants in future at the time of separation
Higher than expected increases in salary will increase the defined benefit obligation and will have an
exponential effect.
Retirement age:
It should be noted that in case of employees above retirement age for the purpose of valuation it is
assumed they will retire immediately & benefit is considered up to actual retirement age.
Demographic risks:
Demographic assumptions are required to assess the timing and probability of a payment taking place.
This is the risk of volatility of results due to unexpected nature of decrements that include mortality

191
 Note Forming Part of Standalone Financial Statements

attrition disability and retirement. The effects of this decrement on the DBO depend upon the
combination salary increase discount rate and vesting criteria and therefore not very straight forward. It
is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving
employees will be less compared to long service employees.
Asset Liability Mismatch:
This will come into play unless the funds are invested with a term of the assets replicating the term of
the liability.
Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following
reasons:Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary
escalation will result into an increase in Obligation at a rate that is higher than expected.Variability in
mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative
values of the assumed salary growth and discount rate.Variability in withdrawal rates: If actual
withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will
be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at
the resignation date
Investment Risk
For funded plans that rely on insurers for managing the assets the value of assets certified by the
insurer may not be the fair value of instruments backing the liability. In such cases the present value of
the assets is independent of the future discount rate. This can result in wide fluctuations in the net
liability or the funded status if there are significant changes in the discount rate during the inter-
valuation period.
Liquidity Risk
This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due
to non availability of enough cash / cash equivalent to meet the liabilities or holding of liquid assets not
being sold in time.
Employees with high salaries and long durations of service or those higher in hierarchy accumulate
significant level of benefits. If some of such employees resign / retire from the company there can be
strain on the cash flows.
Market Risk
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate /
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.
Legislative risk/Regulatory risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change
in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation. The new labour code is a case in point. And the same will have to be
recognized immediately in the year when any such amendment is effective.
(ii) Sensitivity Analysis
How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely
discount rates salary growth Attrition & Mortality is shown below

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Annual Report 2023 - 24

GRATUITY-EMPLOYEES : ` In Lakh

31-03-2024
% increase DECREASE OR
LIABILITY
in DBO INCREASE IN DBO

1 DISCOUNT RATE +100 basis points -4.39% 10263.21 -470.69

2 DISCOUNT RATE -100 basis points 4.86% 11255.46 521.57
3 SALARY GROWTH +100 basis points 1.63% 10908.47 174.58
4 SALARY GROWTH -100 basis points -1.70% 10551.90 -181.99
5 ATTRITION RATE +100 basis points 0.24% 10759.99 26.10
6 ATTRITION RATE-100 basis points -0.28% 10704.25 -29.64
7 MORTALITY RATE 10% UP 0.02% 10735.51 1.61
8 EFFECT OF NO CEILING 44.35% 14260.44 4760.02

GRATUITY-CASUAL LABOUR (CLR) ` In Lakh

31-03-2024
% increase DECREASE OR
LIABILITY
in DBO INCREASE IN DBO

1 DISCOUNT RATE +100 basis points -6.03% 935.47 -60.05

2 DISCOUNT RATE -100 basis points 6.76% 1062.82 67.30
3 SALARY GROWTH +100 basis points 5.68% 1052.11 56.58
4 SALARY GROWTH -100 basis points -5.77% 938.06 -57.46
5 ATTRITION RATE +100 basis points -0.54% 990.13 -5.39
6 ATTRITION RATE-100 basis points 0.60% 1001.46 5.93
7 MORTALITY RATE 10% UP -0.03% 995.18 -0.34
8 EFFECT OF NO CEILING 0.51% 1008.37 1008.37

P.U.C method has been used. If an employee’s service in later years will lead to a materially higher level of
benefit than in earlier years these benefits are attributed on a straight-line basis. The limitations are that in
assessing the change other parameters are kept constant. As some of the assumptions may be correlated it
is unlikely that changes in assumptions will occur in isolation of one another.
There is no change from the previous period in the methods and assumptions used in the preparation of
above analysis, except that the base rates have changed
(iii) Asset Liability Matching Strategies
GRATUITY-EMPLOYEES :
Insurer Administered Fund
The company has funded the liability with the insurance company. The entire investible assets are managed
by the fund managers of the Insurance company and the Asset Values as informed by the Insurance
Company has been taken for the valuation purpose. The policy thus mitigates the liquidity risk. However

193
 Note Forming Part of Standalone Financial Statements

being a cash accumulation plan the duration of assets is shorter compared to the duration of liabilities. Thus
the Company is exposed to movement in interest rate (in particular the significant fall in interest Rates which
should result in a increase in liability without corresponding increase in the asset). .Thus the Company is
exposed to movement in interest rate (in particular the significant fall in interest Rates which should result in
a increase in liability without corresponding increase in the asset).
GRATUITY-CASUAL LABOUR (CLR)
Pay As You Go Method
The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a
‘pay as you go’ system to meet the liabilities as and when they fall due. Therefore the scheme is fully
unfunded, and no assets are maintained by the company and asset values are taken as zero; there is liquidity
risk in that they may run out of cash.
(iv) Other disclosures
GRATUITY-EMPLOYEES :
The company has started funding the liability through the medium of an insurance company and regular
assessment is made by the Company of the increase in liability and contributions are being made to
maintain the fund and is subject to the credit risk of the insurance company and asset liability mismatch risk
of the investments .

Expected Contributions to the plan for the next annual reporting period. Rs. 1070.38 lakhs

31-03-2024 31-03-2023
Weighted average duration of the D B O 11.62 10.39
` in lakh ` in lakh
Information on the maturity profile of the liabilities 31-Mar-24 31-Mar-23
Projected Benefit Obligation 10,733.89 12506.55
Accumulated Benefits Obligation 8,450.38 10,848.36
` in lakh
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 650.79 685.87
2 Year (II) 897.21 1013.75
3 Year (III) 2534.43 2942.44
4 Year (IV) 2000.64 2488.25
5 Year (V) 1311.51 1743.53
6 Next 5 year pay-outs (6-10 years) 2162.23 3404.96
7 Pay-outs Above Ten Years 1177.09 4367.92
8 Vested benefit Obligation as on Para 137 (b) 31-03-2024 10363.74

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Annual Report 2023 - 24

GRATUITY-CASUAL LABOUR (CLR) :

The company has not started funding the gratuity liability & has been following pay as you go method for
settlement of the liability
Expected Contributions to the plan for the next annual reporting period. NA

31-03-2024 31-03-2023
Weighted average duration of the D B O 8.85 7.47
` in lakh
Information on the maturity profile of the liabilities given below 31-03-24 31-03-23
Projected Benefit Obligation 995.52 990.81
Accumulated Benefits Obligation 642.46 707.78

31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 43.26 45.59
2 Year (II) 63.10 71.32
3 Year (III) 132.26 154.63
4 Year (IV) 105.07 133.17
5 Year (V) 122.81 164.87
6 Next 5 year pay-outs (6-10 years) 310.76 509.01
7 Pay-outs Above Ten Years 218.26 679.65
8 Vested benefit Obligation as on Para 137 (b) 31-03-2024 994.66

LEAVE ENCASHMENT- OTHER DISCLOSURE REQUIREMENTS

(i) Description of plan Characteristics and associated risks:
The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of
separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave
count at the time of separation and paid as lumpsum.
The design entiles the following risks that affect the liabilities and cash flows.
Interest rates risk
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields
fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risks:
This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition,
disability and retirement. The effects of this decrement on the DBO depend upon the combination salary
increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to
overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less

195
 Note Forming Part of Standalone Financial Statements

compared to long service employees

(ii) SENSITIVITY ANALYSIS
How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely
discount rates, salary growth, Attrition & Mortality is shown below
PRIVILEGE LEAVE ` in lakh

Net Asset/(Liability)Recognised in Balance sheet - 31-03-2024

% increase
in DBO LIABILITY INCREASE IN DBO
LIABILITY

1 DISCOUNT RATE +100 basis points -6.59% 7123.11 -502.36

2 DISCOUNT RATE -100 basis points 7.56% 8201.77 576.30
3 SALARY GROWTH +100 basis points 7.04% 8162.57 537.10
4 SALARY GROWTH -100 basis points -6.26% 7148.04 -477.43
5 ATTRITION RATE +100 basis points -0.61% 7578.71 -46.76
6 ATTRITION RATE-100 basis points 0.70% 7678.88 53.41
7 MORTALITY RATE 10% UP -0.02% 7624.14 -1.34

SICK LEAVE ` in lakh

Net Asset/(Liability)Recognised in Balance sheet - 31-03-2024

% increase
in DBO LIABILITY INCREASE IN DBO
LIABILITY
1 DISCOUNT RATE +100 basis points -6.13% 935.11 -61.02
2 DISCOUNT RATE -100 basis points 6.92% 1065.03 68.90
3 SALARY GROWTH +100 basis points 6.44% 1060.30 64.17
4 SALARY GROWTH -100 basis points -5.82% 938.19 -57.94
5 ATTRITION RATE +100 basis points -0.55% 990.66 -5.47
6 ATTRITION RATE-100 basis points 0.62% 1002.28 6.15
7 MORTALITY RATE 10% UP -0.02% 995.96 -0.17

P.U.C method has been used for sensitivity analysis. If an employee’s service in later years will lead to a
materially higher level of benefit than in earlier years, these benefits are attributed on a straight-line basis.
The limitations are that in assessing the change other parameters are kept constant. As some of the
assumptions may be correlated, it is unlikely that changes in assumptions will occur in isolation of one
another.
There is no change from the previous period in the methods and assumptions used in the preparation of
above analysis, except that the base rates have changed
(iii) Actuarial measurements as on March 31,2024
The company has not started funding the Leave liability & has been following pay as you go method for
settlement of the liability

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Annual Report 2023 - 24

(iv) Maturity profile of the liabilities

PRIVILEGE LEAVE

31-03-2024 31-03-2023
Weighted average duration of the D B O 11.62 10.39
` in lakh
Information on the maturity profile of the liabilities given 31-03-24 31-03-23
Projected Benefit Obligation 7625.47 8154.85
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 387.27 418.78
2 Year (II) 489.24 586.88
3 Year (III) 1315.58 1742.17
4 Year (IV) 1155.95 1644.10
5 Year (V) 825.46 1253.21
6 Next 5 year pay-outs (6-10 years) 1545.96 2786.30
7 Pay-outs Above Ten Years 1906.02 6968.58

SICK LEAVE

31-03-2024 31-03-2023
Weighted average duration of the D B O 9.88 11.62
` in lakh
Information on the maturity profile of the liabilities given 31-03-24 31-03-23
Projected Benefit Obligation 996.13 1,426.10
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 51.83 56.09
2 Year (II) 66.44 79.85
3 Year (III) 192.65 256.26
4 Year (IV) 160.63 228.90
5 Year (V) 113.73 172.65
6 Next 5 year pay-outs (6-10 years) 214.73 385.61
7 Pay-outs Above Ten Years 196.12 684.24

197
 Note Forming Part of Standalone Financial Statements

B Movement in net defined benefit (asset)/ liability in respect of Provident Fund

` in Lakh ` in Lakh
Trust managed Provident Trust managed Provident
Fund-Udyogamandal Fund-Cochin Division
a. Changes in the present value of obligations 31-03-2024 31-03-2023 31-03-2024 31-03-2023
Present value of obligations at the beginning of the year 24872.63 24478.94 1912.73 2153.52
Interest cost 1554.05 1568.04 117.91 132.96
Past service cost - - - -
Current service cost 1109.18 1063.85 70.66 76.37
Plan participants contribution 2849.41 3196.50 231.76 244.53
Benefits paid (6874.94) (6056.51) (572.90) (669.25)
Actuarial loss/(gain) on obligation 636.51 621.81 23.39 (25.40)
Present value of obligations at the end of the year 24146.83 24872.63 1783.54 1912.73
b. Changes in the fair value of plan assets
Fair value of plan assets at the beginning of the year 24822.87 24478.02 1909.21 2139.38
Expected return on investment 1590.65 1606.86 120.21 134.72
Employer's & Plan participants contribution 3958.59 4260.35 302.42 320.91
Benefits paid (6874.94) (6056.51) (572.90) (669.25)
Actuarial (loss)/gain on plan assets 682.50 534.15 13.67 (16.55)
Fair value of plan assets at the end of the year 24179.66 24822.87 1772.61 1909.21
Actual return on investment 2273.15 2141.01 133.88 118.17
c. Amount recognised in Balance sheet of the Trust
Present value of obligations at the end of the year 24146.83 24872.63 1783.54 1912.73
Fair value of plan assets at the end of the year 24179.66 24822.87 1772.61 1909.21
Unfunded net liability (32.83) 49.76 10.93 3.52
d. Expenses recognised in the Statement
of Profit and Loss of the Trust during the year
Current service cost 1109.18 1063.85 70.66 76.37
Past service cost
Interest cost 1554.05 1568.04 117.91 132.96
Expected return on investment (1590.65) (1606.86) (120.21) (134.72)
Net actuarial (gain) / loss recognised during the year (45.99) 87.66 9.72 (8.85)
Total Expenses 1026.59 1112.69 78.07 65.76

47. Additional Regulatory Information

(i) Fair value of investment property
Fair Value of Freehold Land is based on the notification issued by the Government of Kerala in their website.
Management assumes the original cost of the Building as fair value

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Annual Report 2023 - 24

(ii) Capital-Work-in Progress (CWIP)

(a) CWIP ageing schedule
As on 31.03.2024 ` In Lakh
CWIP Amount in CWIP for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years

Projects in progress 12058.17 7654.93 1997.23 494.72 22205.05

Projects temporarily suspended 0.00 0.00 0.00 0.00 0.00
Total 12,058.17 7,654.93 1997.23 494.72 22205.05

As on 31.03.2023 ` In Lakh
CWIP Amount in CWIP for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Projects in progress 7788.84 2058.56 392.58 219.42 10459.40
Projects temporarily suspended 0.00 0.00 0.00 0.00 0.00
Total 7788.84 2058.56 392.58 219.42 10459.40

b) Details of CWIP for which there is a time over-run compared to its Original plan.
As on 31.03.2024 ` In Lakh
CWIP To be completed in
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Ammonia Storage Tank CD - 10000MT 9,776.63 - - - 9,776.63
Two Phosphoric Acid
Storage Tanks W/I - 8200MT*2 1,774.66 - - - 1,774.66
Sulphuric Acid Storage Tanks
WI 8200MT 311.29 - - - 311.29
Diesel Generator Set for SA Plant 23.11 - - - 23.11
Contract Employee Attendance
Management System 7.58 - - - 7.58
Electrical Work in CD TSHP
for Land Sale 246.67 - - - 246.67
Civil Foundation Works IAT 43.67 - - - 43.67
Total 12,183.61 0 0 0 12,183.61

199
 Note Forming Part of Standalone Financial Statements

(iii) Ratios

RATIO NUMERATOR DINOMINATOR RATIO % Reason for variation

Variance more than 25%
2023-24 2022-23

(a) Current Ratio, Current Assets Current Liabilities 1.05 1.08 - 2.00% NA
(b) Debt-Equity Ratio Total liabilities/debt Shareholder’s Equity 3.23 3.27 - 1.00% NA
(c) Debt Service Net profit after tax Finance cost, 0.11 0.26 -55.91% Due to decrease in Net
Coverage Ratio, plus Finance cost Current maturities profit after tax
and Non cash of debt and accrued
operating expenses interest
(d) Return on Equity Profit after Tax Shareholder’s Equity 0.11 0.48 -77.92% Due to decrease in Net
Ratio profit after tax
(e) Inventory turnover Turnover Average inventory 4.76 7.55 -37.02% Due to reduction in Sales
ratio, and also increased
inventory position of
Finished goods
(f) Trade Receivables Net Credit Sales Average Accounts 4.37 5.77 -24.32% NA
turnover ratio, Receivable
(g) Trade payables Net credit Purchases Average Accounts 8.59 9.16 -6.23% NA
turnover ratio, Payable
(h) Net capital turnover Net sales Working capital 23.80 20.99 13.40% NA
ratio,

(I) Net profit ratio Net profit after tax Turnover 0.03 0.10 -70.75% Due to decrease in
Turnover & Net profit
(j) Return on Capital Earnings before Capital employed 0.08 0.19 -57.22% Due to reduction in
employed interest and taxes (Net Worth + Total Net Profit after Tax
Debt)
(k) Return on investment Increase in the net Original value of 0.49 0.42 16.88% NA
assets value of investment
investment in
shares plus dividend

iv) Other Additional Disclosures required as per schedule III of the Companies Act 2013
a) Transaction with struck off companies under section 248 or 560

Name of struck off Nature of transactions Balance outstanding Relationship with

Company with struck-off Company (` In Lakh)* the Struck off Company

Capexil Agencies Ltd Investments in securities 0.15 NA

*The investment Is valued at Nil in the books

b) No charge or satisfaction is pending to be registered with Registrar of Companies beyond the statutory
period
c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237

200
Annual Report 2023 - 24

d) There are no transactions that are not recorded in the books of account to be surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
e) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
f) No funds (which are material either individually or in the aggregate)have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds)by the
Company to or in any other person or entity, including foreign entity(‘Intermediaries”),with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company(‘Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
g) No funds (which are material either individually or in the aggregate)have been received by the Company
from any person or entity, including foreign entity(“Funding Parties”),with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether ,directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party(“Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
h) The Company has not been declared as a wilful defaulter by any bank or financial institution or other
lender.
48. Contingent Liabilities and Commitments (to the extent not provided for):
Contingent Liabilities ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Claims against the company not acknowledged

as debts in respect of:
Central Excise Act, 1944 11612.91 13313.01
Service Tax (Finance Act, 1994 ) 374.77 361.35
Sales Tax / Value Added Tax/ Entry tax 287.69 282.87
Goods and Service Tax 190.52
Income Tax Act, 1961 4.26 4.26
ESI Act 127.83 127.83
Suppliers and contractors 28024.64 27001.59
Payment of Bonus Act,1965 33.59 33.59
Others 10751.08 5844.76

48.1 The contract for the barge transportation of Ammonia awarded to a private company has been
cancelled void ab initio during 2004-05 by the Company. The Contractor claimed ₹ 178489.75 lakh
including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the
year 2013-14 in favour of the contractor for ₹17308.04 lakh including interest as on 31.12.2013 .As per
the award, the mobilisation advance paid by the Company to the contractor along with interest of
₹2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on
legal and factual grounds and has challenged the award before the Hon' District Court , Ernakulam
which has since stayed the award. During the year 2019-20, as per the directive of Hon' District Court,
Ernakulam the Company has provided 80.50 acres of land as security for the award. Accordingly, the

201
 Note Forming Part of Standalone Financial Statements

award amount along with interest up to 31.03.2024, amounting to ₹ 27734.43 lakh without
considering the adjustment of mobilisation advance and interest allowed under the arbitral award is
not considered as a liability and included under Contingent Liability. The case is transferred to
Commercial Court.
48.2. A plan loan of ₹.100000.00 lakh bearing interest @13.50% per annum was released by the
Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the
order of Government of India, ₹100000.00 lakh along with the earlier loan and interest outstanding has
been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium.
As per the terms of sanction , Government reserves right to enhance the rate of interest to 16.25% in
case of default in repayment. As no communication in this regard has been received from the
Government, as on date, ₹ 9777.70 lakhs (previous year- ₹ 4895.52 lakhs) being additional interest
from financial year 2022-23 has been shown as contingent liability (refer Note 22.2)
48.3. ₹ 392.82 lakhs (Previous year- ₹ 392.82 lakhs) is claimed by a transport contractor in an arbitration
petition filed by them in response to ₹ 298.02 lakhs withheld from the contractor bills and initiation to
invoke bank guarantee of ₹143.22 lakhs towards compensation for non-delivery of goods. Company
filed a counter claim of ₹ 224.03 lakhs (including interest). ₹ 94.80 lakhs is included in the contingent
liability towards the claim.
48.4 Contingent Liability as on 31.03.2024, includes ₹ 104.27 Lakh being the amount payable as per the
Arbitration award , to a customer whose contract for sale of bulk gypsum was terminated by the
Company during the year 2016-17. In response to the Execution petition filed by the party, the Hon’ble
High Court issued an interim injunction attaching an amount of ₹ 175.64 lakhs in the Company’s bank
account. Challenging the same, we have filed objection petition which has been admitted by the Hon
Court and interim stay has been granted vide order dt . 6.12.2023. vide order dt 12.7.2023 Hon'ble
court has dismissed the EP as not pressed. In view of the dismissal of EP the OP has also been closed
vide order dt 20.10.2023.
48.5 As per the Presidential directive and the agreement entered into between the Company and the trade
unions for implementation of the 2017 wage revision, the company is not liable to pay arrears of salary
and wages for the period from 01.01.2017 to 31.03.2022, in respect of managerial and non-
managerial employees. Certain retired employees of FACT have filed Writ Petitions before the Hon.
High Court of Kerala praying for a direction to the company to disburse arrears of pay revision and
other consequential benefits for the period from 01.01.2017 to the respective retirement dates of the
petitioners. Since a verdict/decision on payment of arrears relating is not taken, the amount of liability
cannot be ascertained at this stage. ` In Lakh

As at 31.03.2024 As at 31.03.2023
49. Estimated amount of contracts remaining
to be executed on capital account and not
provided for. 35793.54 48655.99

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Annual Report 2023 - 24

50. Contingent Assets

` In Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Amounts estimated to be receivable in respect of:
Suppliers and Contractors 9,064.27 7,981.22
Dealers and customers 83.27 84.68
Others 184.12 184.12
9,331.66 8,250.02

1. Contingent assets in respect of 'Suppliers and Contractors' includes ` 6468.65 lakhs (Previous year
`5385.59 lakhs) for the year 2023-24 receivable from a contractor on the interest bearing mobilisation
advance still retained by the party(refer Note 4.1, 13.2). It also includes reduction in regasification charges `
2461.45 lakhs receivable from oil companies in respect of Re-gassified Liquified Natural Gas during the year
2019-20. This disputed matter is presently pending before Administrative Mechanism for Resolution of
CPSEs Disputes ( AMRCD)
51. Construction Contracts
Income under services for own units reckoned by the Engineering and Consultancy Division (FEDO) and the
Fabrication Division (FEW) is accounted by respective units under revenue expenditure ` 1012.21 lakh
(Previous year ` 730.16 lakh ), and capital expenditure ` 850.09 lakh (Previous year ` 2267.82 lakh ).In the
case of work being carried out by FACT Engineering and Design Organisation (FEDO), for National
Institute of Technology ( NIT), Nagaland, as an executing agency, on a cost plus basis, as a deposit work ,
FEDO is eligible for certain percentage of fees of total project cost . As per technical evaluation ,70.70
%(previous year 52.46%) of work related to consultancy services by FEDO to NIT, has been completed as
on 31.3.2024 and pro-rata credit of ` 986.40 lakh ( previous year `888.27 lakh) has been taken, after
considering `360.40 lakh towards work in progress ( previous year `276.44 lakh). The value of construction
work billed and certified during the year 2023-24 is taken as ` 541.40 lakh, (previous year Nil) and equivalent
amount has been considered for direct charges on contract.
` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Contract revenue recognised in the period. 989.57 547.42

Advance received against contract in progress. 1,024.34 538.89
Retention by customers against contract in progress. 34.42 69.89
Aggregate amount of cost incurred and recognised
profit (less recognised loss) on contracts in progress
upto the reporting date. 3,057.31 2,444.06
Gross amount due from customers for contract
work as an asset. 356.00 171.51
Gross amount due to customers for contract
work as a liability. 45.44 95.56

203
 Note Forming Part of Standalone Financial Statements

52. Disclosure in respect of changes in accounting policies, Changes in Accounting Estimates and
Errors.
During the year certain errors or omission were identified. Accordingly, previous year financial statements
are restated, as per the provisions of IndAS 8. The nature of restatements and the impact in the previous
financial statements is as follows.
Restatements of previous year figures
1. Provision for CISF DA Arrears for an amount of `15.32 lakh has been made in the financial year
2022-23

Reconciliation of restated items of Balance Sheet and Statement of Profit & Loss ` In Lakh

Restatement of figures
of the year 2022-23

Sl. Particulars Note No As reported Adjustments As restated

No
during
previous
year

1 Other Equity 16 62682.49 -15.32 62667.17

2 Current Liabilities :
Other Financial Liabilities 25 164734.88 15.32 164750.20
3* Other Expenses 35 142003.04 -5.28 141997.76
4* Finance Cost 34 24733.73 20.60 24754.33
5 Earnings per Equity Share 37 9.47 0.00 9.47

* In Addition to provision for CISF DA Arrears in other Expenses, Provision for decommisioning of Leased
Assets has been regrouped to finance cost from other expenses.

53.1 INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPH 5 (viii) OF GENERAL

INSTRUCTIONS FOR STATEMENT OF PROFIT AND LOSS OF SCHEDULE III TO THE COMPANIES
ACT, 2013 FOR THE YEAR ENDED 31.03.2024
` In Lakh
1 Value of imported and indigenous spare parts consumed and percentage thereof to total
consumption.
Current year Percentage Previous year Percentage
Spare Parts , Components &
Chemicals
Imported 298.46 5.77% 116.80 2.44%
Indigenous 4874.37 94.23% 4662.02 97.56%
5172.83 4778.82

204
Annual Report 2023 - 24

` In Lakh
2 CIF Value of Imports Current year Previous year
(i) Raw Materials 138264.48 169583.43
(ii) Traded Products 33899.33 0.00
(iii) Spares and other materials 245.72 163.65
(iv) Capital Goods 22.89 0.00
172432.42 169747.08
3 Expenditure in foreign currency
( i) Consultancy service 85.08 2.26
(ii) Others 41.40 38.83
126.48 41.09

53.2 INFORMATION PURSUANT TO OM F NO. 23011/9/2023- P & K DATED 18.01.2024 ISSUED BY

DEPARTMENT OF FERTILISERS ON GUIDELINES FOR EVALUATION OF REASONABLENESS
OF MRP OF P & K FERTILISERS UNDER NUTRIENT BASED SUBSIDY POLICY.
` In Lakh

Particulars Integrated Imported Others Total

I Revenue From operations 464,895.71 38,927.64 1,669.26 505,492.61
II Net Profit Before Exceptional
Items & Tax 27,042.28 1,965.43 (98.69) 28,909.02
Exceptional Items (24,558.89)
Net Profit after Excpetional
Items Before Tax 4,350.13
Deferred Tax (10,266.78)
Net Profit after Tax 14,616.91

Products covered:
Integrated : Factamfos, Ammonium Sulphate, Caprolactam and all other products that are covered under
the value chain.
Imported : All imported Fertilisers procured by the Company for the purpose of trading.
Others: includes FEDO, FEW & Others domestic traded products.

205
 54. COST OF MATERIALS CONSUMED

2023-24 2022-23

Sl No. Particulars Opening Purchases Closing Consumption Opening Purchases Closing Consumption
Stock Stock Stock Stock

1 Regassified Liquid natural Gas 4.44 104,723.48 0.41 104727.52 2.56 134817.15 4.44 134815.27
2 Sulphur - Imported 168.48 - 35.52 132.96 3488.15 11.86 168.48 3331.53
3 Sulphur 2,868.39 13951.22 1347.30 15472.31 3,205.32 34261.29 2,868.39 34598.22
4 Rock Phosphate-Imported 2,974.27 33679.72 1591.14 35062.85 9070.42 44774.94 2974.27 50871.09
5 Phosphoric Acid-Imported 5,449.68 95187.90 6468.74 94168.84 7992.76 122893.00 5449.68 125436.08
6 Phosphoric Acid-Indegeneous 16.72 0.00 16.72 0.00 0.00 4919.85 16.72 4903.13

206
7 Ammonia - Imported 187.03 11111.25 5642.72 5655.56 206.29 11.06 187.03 30.32
8 Benzene -Imported 0.09 0.00 0.09 0.00 0.09 0.00 0.09 0.00
9 Benzene 1,753.06 24970.26 47.10 26676.22 1651.80 37185.78 1753.06 37084.52
10 Caustic Soda 47.17 1409.75 6.33 1,450.61 55.71 2,634.08 47.17 2,642.61
11 Rock Phosphate-18% for mixing* 13.28 0.00 6.86 0.00 13.28 0.00 13.28 0.00
Note Forming Part of Standalone Financial Statements

12 Sulphuric Acid 53.47 10200.61 656.49 9597.59 1271.85 17025.71 53.47 18244.09
13 Sulphuric Acid-Imported 679.52 1221.83 3.45 1,897.90 36.83 1,685.75 679.52 1043.07
TOTAL 14215.60 296456.02 15822.86 294842.36 26995.06 400220.47 14215.61 412999.93
Cost of Materials Consumed 294842.36 412999.93

* Closing stock after adjustments for sale ₹ 6.42 lakhs (Previous Year Nil)
` in lakh
Annual Report 2023 - 24

55. The standalone financial statements were authorized for issue in accordance with a resolution passed
by the Board of Directors on 16.05.2024
56. The financial statements as approved by the Board of Directors are subject to audit by Comptroller and
Auditor General of India and final approval by the Shareholders.
57. The figures of the previous year have been re-arranged and regrouped wherever necessary and / or
practicable to make them comparable with those of the current year.
58. Events occurring after the Balance sheet date
Board of Directors have recommended a final dividend of ₹ 0.97 per equity share of ₹ 10/- each
(previous year ₹ 1.00 per equity share ) i.e. 9.70 % on paid up equity share capital of the Company for
the financial year 2023-24 ( Previous year 10% on paid up equity share capital) which is subject to
approval of Shareholders of the Company.

As per our Report of even date attached

For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

207
 10 YEARS FINANCIAL HIGHLIGHTS
2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
As per
Schedule III
of the Companies
As per Ind AS Schedule III of the Companies Act 2013 Act 2013
1 Sales 2,93,282 3,15,006 2,71,197 2,23,709 1,88,538 1,34,762 1,33,946 1,27,146 1,15,010 1,31,386
2 Subsidy 2,11,221 3,04,261 1,70,579 1,01,648 86,485 58,649 57,655 57,270 52,997 65,280
3 Income from Contracts & Services 990 547 705 526 1,969 2,048 1,266 3,912 5,592 1,213
4 Revenue from operations (1+2+3) 5,05,493 6,19,814 4,42,481 3,25,883 2,76,992 1,95,459 1,92,867 1,88,328 1,73,599 1,97,879
5 Other Income 20,312 13,558 11,123 6,759 3,163 2,270 4,162 1,804 2,898 1,855
6 Total Income 5,25,805 6,33,372 4,53,604 3,32,642 2,80,155 1,97,729 1,97,030 1,90,132 1,76,497 1,99,734
7 Material Consumed 2,99,345 4,17,898 2,77,086 1,39,048 1,52,367 1,36,903 1,08,024 1,08,741 1,07,980 1,39,440
8 Purchases of Stock-in-trade 36,390 504 298 34,091 7,214 240 169 9,868 272 6,928
9 Stock: (Accretion)/Decretion -5,066 -44,895 656 9,672 860 -7,698 -3,053 -8,120 17,904 -59
10 Employee benefits expenses 28,394 28,819 23,176 22,922 23,302 22,981 24,942 24,397 24,965 26,278
11 Repairs & Maintenance 5,941 4,397 4,781 3,997 3,443 3,363 3,443 3,494 4,069 3,251
12 Power & Fuel 60,549 75,153 42,788 21,315 25,478 11,789 16,459 16,681 11,998 14,876
13 Other Manufacturing Expenses 43,993 62,448 34,117 39,755 36,421 26,917 26,095 28,743 28,737 24,955
14 Total Expenditure 4,69,546 5,44,324 3,82,902 2,70,800 2,49,085 1,94,495 1,76,079 1,83,804 1,95,925 2,15,669
15 Gross Margin (6-14) 56,259 89,048 70,702 61,842 31,070 3,234 20,950 6,328 -19,428 -15,935
16 Finance Cost 24,693 24,754 24,441 24,526 28,934 28,053 32,142 30,466 25,214 19,629

208
17 Depreciation / Impairment loss 2,657 3,011 2,719 2,269 1,802 2,302 1,715 2,130 1,812 2,021
18 Profit/(Loss) before Exceptonal items and tax 28,909 61,283 43,543 35,047 334 -27,121 -12,906 -26,268 -46,454 -37,585
19 Exceptional Items- Income (+)/ Expenses (-) -24,559 0 -8,906 0 97,217 43,390 0 0 1,235 -2,406
20 Profit/(Loss) before tax 4,350 61,283 34,637 35,047 97,550 16,269 -12,906 -26,268 -45,219 -39,991
21 Provision for taxation -10,267 0 0 0 0 0 0 0 0 0
22 Net profit / (Loss) 14,617 61,283 34,637 35,047 97,550 16,269 -12,906 -26,268 -45,219 -39,991
23 Income (+)/expenses (-) accounted as Restatement
of opening balance in line with IndAS 8 0 0 0 0 47,956 0 0 0 0 0
24 Net profit / (Loss) after restatement 14,617 61,283 34,637 35,047 1,45,506 16,269 -12,906 -26,268 -45,219 -39,991
Note Forming Part of Standalone Financial Statements

25 Other Comprehensive Income 2,054 -111 1,609 -3,503 533 1,800 268 2,794 NA NA
26 Proposed Dividend 6,277 6471 0 0 0 0 0 0 0 0
ASSETS
27 Net block 79,458 78,218 78,309 73,236 73,710 25,394 29,472 29,681 26,973 28,180
28 Capital work-in-progress 22,205 10,459 4,251 5,498 3,896 1,792 1,850 2,435 2,186 2,486
29 Non-Current assets, Loans & Advances 7,689 17,475 4,189 6,583 4,145 1,175 1,011 808 846 788
30 Deferred Tax Asset 10,267 0 0 0 0 0 0 0 0 0
31 Investments 13,037 11,286 9,788 8,627 7,812 6,906 5,927 4,572 367 367
32 Finished Goods 68,430 64,527 20,846 22,346 32,460 34,726 27,002 23,661 14,815 29,809
33 Work in progress 6,571 5,407 4,193 3,349 2,908 1,502 1,527 1,815 2,542 5,452
34 Raw Materials 30,376 20,133 30,725 15,897 11,490 19,439 10,474 7,881 10,269 7,243
35 Stores, Spares & Loose tools 8,656 7,512 10,248 9,445 9,055 9,192 8,604 9,322 10,885 12,482
36 Materials in transit 282 233 167 526 414 342 268 231 352 146
 10 YEARS FINANCIAL HIGHLIGHTS
2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
As per
Schedule III
of the Companies
As per Ind AS Schedule III of the Companies Act 2013 Act 2013
37 Sundry debtors 15,814 47,888 17,523 10,438 39,016 40,531 36,108 50,607 710 1,021
Annual Report 2023 - 24

38 Cash & bank balance 2,67,932 2,38,784 1,87,646 1,66,687 68,472 7,467 6,365 5,218 5,757 8,839
39 Loans & advances 0 0 0 0 0 52 54 3 16,122 14,270
40 Other Current Assets 50,798 41,506 1,06,041 61,767 55,554 82,922 51,661 20,495 71,327 52,015
41 Total Assets 5,81,515 5,43,428 4,73,926 3,84,399 3,08,932 2,31,440 1,80,322 1,56,729 1,63,151 1,63,098
LIABILITIES
42 Share Capital (Incl. Pending allotment) 64,707 64,707 64,707 64,707 64,707 64,707 64,707 64,707 64,707 64,707
43 Retained Earnings 60,144 51,694 -7,981 -43,066 -73,796 -2,18,579 -2,35,622 -2,20,218 -1,95,660 -1,50,441
44 Capital Reserve 52 53 54 55 57 59 61 63 65 66
45 Equity Instruments through OCI 12,670 10,920 9,422 8,261 7,446 6,540 5,561 4,205
46 Non Current Liabilities :-
47 Long term borrowings 0 510 1,020 1,530 90,564 1,79,599 1,77,049 1,77,049 1,62,713 16,149
48 Other non-current liabilities & Long term provisions 20,384 23,149 24,773 22,495 19,962 18,082 17,066 12,802 13,155 21,221
49 Short term borrowings 177,559 1,80,399 1,79,502 1,77,559 91,504 47,793 50,737 63,182 18,345 91,282
50 Interest accrued on borrowings 167,311 1,43,409 1,19,508 95,606 71,704 47,803 23,902 0 111 25,272
51 Other Current Liabilities 76,234 65,169 77,972 51,584 34,614 83,656 75,047 53,446 95,661 90,255

209
52 Provisions 2,454 3,418 4,949 5,668 2,170 1,780 1,815 1,493 4,054 4,588
53 Total Liabilities 581,515 5,43,428 4,73,926 3,84,399 3,08,932 2,31,440 1,80,322 1,56,729 1,63,151 1,63,098
54 Networth (42+43) 124,851 1,16,401 56,726 21,641 -9,089 -1,53,872 -1,70,915 -1,55,511 -1,30,953 -85,734
55 Capital employed (42+43+44+45+47+49+50) 482,443 4,51,692 3,66,232 3,04,652 2,52,186 1,27,922 86,394 88,988 50,281 47,035
56 Total Current Assets 448,859 4,25,990 3,77,389 2,90,455 2,19,369 1,96,173 1,42,062 1,19,233 1,32,779 1,31,277
57 Total Current Liabilities & provisions 423,558 3,92,395 3,81,931 3,30,417 1,99,992 1,81,032 1,51,502 1,18,121 1,18,171 2,11,396
58 Net Working Capital (56-57) 25,301 33,595 -4,542 -39,962 19,377 15,141 -9,440 1,112 14,608 -80,119
Installed Capacity (MT)
Ammonium Sulphate 225,000 2,25,000 2,25,000 2,25,000 2,25,000 2,25,000 2,25,000 2,25,000 2,25,000 2,25,000
Factamphos 20:20 633,500 6,33,500 6,33,500 6,33,500 6,33,500 6,33,500 6,33,500 6,33,500 6,33,500 6,33,500
Caprolactam 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
N content 173,050 1,73,050 1,73,050 1,73,050 1,73,050 1,73,050 1,73,050 1,73,050 1,73,050 1,73,050
P2O5 content 131,900 1,31,900 1,31,900 1,31,900 1,31,900 1,31,900 1,31,900 1,31,900 1,31,900 1,31,900
Production (MT)
Ammonium Sulphate 2,42,577 2,44,732 1,36,665 2,45,676 2,20,951 1,41,754 1,80,178 1,52,953 79,567 1,20,360
Factamphos 20:20 8,27,717 8,28,195 8,26,552 8,61,455 8,44,738 6,34,362 6,61,973 6,54,361 5,15,435 6,14,004
Caprolactam 34,662 44,754 20,835 - - - - 770.00 - -
N content 2,15,514 2,16,054 1,93,463 2,22,900 2,14,464 1,56,074 1,69,511 1,62,381 1,19,478 1,47,595
P2O5 content 1,65,543 1,65,639 1,65,310 1,72,291 1,68,948 1,26,872 1,32,395 1,30,872 1,03,087 1,22,801
Capacity utilisation (%)
N content 124.54 124.85 111.80 128.81 123.93 90.19 97.95 93.83 69.04 85.29
P2O5 content 125.51 125.58 125.33 130.62 128.09 96.19 100.38 99.22 78.16 93.10
 Independent Auditors’ Report on the Financial Statements (Consolidated)

G VENUGOPAL KAMATH & Co.

CHARTERED ACCOUNTANTS
273, 3rd Floor, D.D. Vastra Mahal, Market Road, P.B. No. 1110, Kochi - 682 011.
Phone / Fax : 0484-2355482, 2366483, 2370482, 4027381. E-mail : [email protected]

INDEPENDENT AUDITORS’ REPORT

To the Members of The Fertilisers and Chemicals Travancore Limited

Report on the Audit of the Consolidated Ind AS Financial Statements

OPINION
We have audited the accompanying Consolidated Ind AS Financial Statements of THE FERTILISERS AND
CHEMICALS TRAVANCORE LIMITED (hereinafter referred to as “the Holding Company”), and its jointly
controlled entity (The Company and its jointly controlled entity referred to as “the Group”), which comprise
the Consolidated Balance Sheet as at March 31, 2024, the Consolidated Statement of Profit and Loss
(including Other Comprehensive Income), the Consolidated statement of Cash Flows and the Consolidated
Statement of Changes in Equity for the year then ended, and notes to the Consolidated Financial
|Statements, including a summary of the material accounting policies and other explanatory information
(hereinafter referred to as “ the Consolidated Ind AS Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Consolidated Ind AS Financial Statements give the information required by the Companies Act,2013 (‘‘the
Act”), as amended in the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India,
of the consolidated state of affairs of the Group as at March 31, 2024, the consolidated profit and
consolidated total comprehensive income, consolidated cash flows and consolidated changes in equity for
the year ended on that date.
Basis for Opinion
We have conducted our audit of the Consolidated Ind AS Financial Statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Ind AS
Financial Statements section of our report. We are independent of the Group in accordance with the ‘Code
of Ethics’ issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical
requirements that are relevant to our audit of the Consolidated Ind AS Financial Statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on the Consolidated Ind AS
Financial Statements.
Emphasis of Matter
1. We draw attention to Note No.36 of the Consolidated Ind AS Financial Statements regarding the
recovery of subsidy/additional compensation by the Government of India amounting to Rs.24,558.89
lakhs.

210
Annual Report 2023 - 24

2. We draw attention to Note No.5 of the Consolidated Ind AS Financial Statements regarding the
recognition of deferred tax asset (net) amounting to Rs.10,266.78 lakhs on the unabsorbed depreciation
and carried forward business loss as per Income Tax Act, 1961 during the year ended March 31, 2024
3. We draw attention to Note 3A.1 of the Consolidated Ind AS Financial Statements regarding appointment
of Interim Resolution Professional for FACT-RCF Building Products Ltd and supersession of its Board of
Directors
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the Consolidated Ind AS Financial Statements of the current period. These matters were addressed
in the context of our audit of the Consolidated Ind AS Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. We have determined the
matters described below to be the key audit matters:

Sl No Key Audit Matter Auditors' Response

1 Accounting of subsidy income from Our principal audit procedures included the
Government of India under DBT Scheme: following:
Under Direct Benefit Transfer (DBT) scheme l Analysed the scheme framed by the
of Government of India (GoI), the Holding Department of Fertilizers (DoF) notified
Company is entitled to receive subsidy only through Notification F. No. D(FA)/2016/
upon sale of fertilizer by the dealer to the DBT dated March 17, 2017.
ultimate beneficiary through Point of Sale l Reviewed the agreement with dealers.
(PoS) devices. However, the Holding
l Reviewed the calculation of subsidy
Company continues to account subsidy as
income and assessed the reasonableness
income at the time of sale to dealers as in the
of recoverability of subsidy receivable.
earlier scheme, considering the reasonable
certainty that the sale will take place and l Considered the ageing of the stock with
subsidy will be received based on the the dealers for which sales not reported in
industry practice and past experience. Refer the Integrated Fertiliser Management
Note No. 28 to the Consolidated Ind AS System and reviewed the approach
Financial Statements adopted by the Holding Company.
l Verified compliance with Ind AS 20 on
'Accounting for Government Grants and
Disclosure of Government Assistance'.
l Verified that the method followed by the
Holding Company is consistent on year to
year basis.

211
 Independent Auditors’ Report on the Financial Statements (Consolidated)

Sl No Key Audit Matter Auditors' Response

2 Property, Plant & Equipment: l We examined whether the Holding

Estimates of useful lives and residual value Company has maintained proper records
of Property, Plant and Equipment is a showing full particulars, including
significant area requiring Management quantitative details and situation of
judgement of estimates and application of Property, Plant & Equipment
accounting policies that have significant l Reviewed the report of the committee
effect on the amounts recognized in the that studied the Impairment of the
Consolidated Ind AS Financial Statements. assets.
l Reviewed the capitalisation made during
the year under review.
l Reviewed the valuation statement of the
assets held for sale.
l Reviewed the report on the physical
verification of Property, Plant and
Equipment carried out by the
Management and comments of the
branch auditors of Holding Company in
their report regarding physical verification
conducted at depots/ zonal offices.
l Reviewed the estimated useful life,
residual value of assets and verified the
depreciation workings.
l The deficiencies in the reconciliation of
land as per documents with the books of
accounts and consequent effect on the
verification of completeness and
correctness of the land are reported in
para 4 of Other matters paragraph.

Information Other than the Consolidated Ind AS Financial Statements and Auditors' Report
Thereon
The Holding Company's Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Holding Company’s Annual Report including
Directors’ Report, Management Discussion and Analysis, Report on Corporate Governance, Business
Responsibility and Sustainability Report but does not include the Consolidated Ind AS Financial Statements
and our Auditors' Report thereon.
Our opinion on the Consolidated Ind AS Financial Statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the Consolidated Ind AS Financial Statements, our responsibility is to read
the other information and, in doing so, consider whether such other information is materially inconsistent
with the Consolidated Ind AS Financial Statements or our knowledge obtained during the course of our audit
or otherwise appears to be materially misstated.
212
Annual Report 2023 - 24

The said other information is expected to be made available to us after the date of this audit report. When we
read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and shareholders.
Management's Responsibility for the Consolidated Ind AS Financial Statements
The Holding Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these Consolidated Ind AS Financial Statements that give a true and fair
view of the consolidated financial position, consolidated financial performance including other
comprehensive income, consolidated cash flows and consolidated changes in equity of the Group in
accordance with the accounting principles generally accepted in India, including the Ind AS specified under
section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Consolidated Ind AS Financial
Statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the Consolidated Ind AS Financial Statements, the management and respective Board of
Directors of the Companies included in the Group are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless Management or respective Board of Directors of the Companies
included in the Group either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Management and respective Board of Directors of the Companies included in the Group are also
responsible for overseeing the financial reporting process of each company.
Auditors' Responsibilities for the Audit of the Consolidated Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS Financial
Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these Consolidated Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
l Identify and assess the risks of material misstatement of the Consolidated Ind AS Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
l Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(I) of the Companies Act, 2013, we are also

213
 Independent Auditors’ Report on the Financial Statements (Consolidated)

responsible for expressing our opinion on whether the Group has adequate internal financial controls
with reference to financial control system in place and the operating effectiveness of such controls.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
l Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report
to the related disclosures in the Consolidated Ind AS Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidences obtained up to the
date of our auditors' report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
l Evaluate the overall presentation, structure and content of the Consolidated Ind AS Financial
Statements, including the disclosures, and whether the Consolidated Financial Statements represent
the underlying transactions and events in a manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the Consolidated Ind AS Financial
Statements. We are responsible for the direction, supervision and performance of the audit of the
financial statements of such entities included in the Consolidated Financial Statements of which we are
the independent auditors. For the other entities included in the Consolidated Financial Statements,
which have been audited by other auditors, such other auditors remain responsible for the direction,
supervision and performance of the audits carried out by them. We remain solely responsible for our
audit opinion.
Materiality is the magnitude of misstatements in the Consolidated Ind AS Financial Statements that
individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable
user of the Consolidated Ind AS Financial Statements maybe influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work and (ii) to evaluate the effect of any identified misstatements in the Consolidated Ind AS Financial
Statements.
We communicate with those charged with governance of the Holding Company regarding, among other
matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the Consolidated Ind AS Financial Statements of the current period
and are therefore the key audit matters. We describe these matters in our auditors' report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
1. The Consolidated financial statements include unaudited financial statements of the jointly controlled

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Annual Report 2023 - 24

entity of the Holding Company. Our opinion on the Consolidated Ind AS Financial Statements, in so far as
it relates to the amounts and disclosures included in respect of the entity and our report in terms of
subsection (3) of Section 143 of the Act, in so far as it relates to the aforesaid entity, is based solely on
the unaudited financial statements. In our opinion and according to the information and explanations
given to us by the Management, these financial statements are not material to the Group.
2. The Holding Company has a system of obtaining balance confirmations from the customers and
vendors. However, only a few customers and vendors have responded with confirmation.
3. The Consolidated Ind AS Financial Statements for the year ended March 31, 2023 were audited by
another firm of chartered accountants who vide their report dated May 5, 2023 expressed an
unmodified opinion on the Consolidated Ind AS Financial Statements.
4. The Holding Company has not reconciled the value of the land as per the Consolidated Ind AS Financial
Statements with the cost of acquisition of the land as per the title deeds and the additional
compensation paid for the acquisition of land, hence we could not verify the completeness and
correctness of the amount disclosed in the Financial Statements with respect to these title deeds.
However, the management of the Holding Company confirms that the said non reconciliation will not
affect the financial position and financial performance of the Company for the year ended March 31,
2024.
Our opinion is not modified in respect of the above matters
Report on Other Legal and Regulatory Requirements
1. The CARO report relating to the jointly controlled entity FACT-RCF Building Products Limited has not
been issued by its auditor till the date of our audit report. Hence, we are not in a position to comment
upon clause 3(xxi) of the Order
2. The Holding Company does not have the required number of Independent Directors on its Board due to
vacancy arising out of end of term of the existing independent directors, from June 2019 onwards
hence being non-compliant with relevant Regulations of Securities and Exchange Board of India (Listing
Obligation and Disclosure Requirements) Regulations, 2015. A penalty has been levied on the Company
for this non-compliance.
3. As required by section 143 (3) of the Act, we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit except balance confirmations
mentioned in para 3 of Other Matters paragraph and portion of internal audit reports for the fourth
quarter.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid
Consolidated Ind AS Financial Statements have been kept so far as it appears from our
examination of those books
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including (Other
Comprehensive Income), the Consolidated Cash Flows Statement and the Consolidated
Statement of Changes in Equity dealt with by this Report are in agreement with relevant books of
account and with the returns received from five state offices of Holding Company not audited by
us, subject to the limitation of scope by other auditors.
d) In our opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015.

215
 Independent Auditors’ Report on the Financial Statements (Consolidated)

e) In view of exemption given vide notification no. G.S.R. 463(E) dated June 5, 2015, as amended
vide notification no. G.S.R 582(E) dated June 13, 2017, issued by Ministry of Corporate Affairs,
provisions of Section 164(2) of the Act regarding disqualification of directors, are not applicable to
the Holding Company.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Group
with reference to the Consolidated Ind AS Financial Statements and the operating effectiveness of
such controls, refer to our separate report in “Annexure A”.
g) The provisions of section 197 of the Act with respect to the matters to be included in the Auditors'
Report is not applicable vide notification no. G.S.R. 463(E) dated June 5, 2015, as amended vide
notification no. G.S.R 582(E) dated June 13, 2017, issued by Ministry of Corporate Affairs to the
Holding Company being a Government Company.
h) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of
our information and according to the explanations given to us:
(i) The Consolidated Ind AS Financial Statements disclose the impact of pending litigations on
the consolidated financial position of the Group. (Refer Note #48 of the Consolidated Ind AS
Financial Statements).
(ii) Provision has been made in the Consolidated Ind AS Financial Statements, as required under
the applicable law or accounting standards, for material foreseeable losses, if any, on long
term contracts including derivative contracts as at March 31, 2024.
(iii) There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Group during the year.
(iv) (a) The Management of the Holding Company has represented that, to the best of it's
knowledge and belief, other than as disclosed in the consolidated notes to the accounts, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the group to or in any other person(s) or
entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(b) The management of the Holding Company has represented, that, to the best of its
knowledge and belief, no funds (which are material either individually or in the aggregate)
have been received by the Group from any person or entity, including foreign entity
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Group shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the
UltimateBeneficiaries;
(c) Based on the audit procedures that has been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
(v) As stated in Note No. 16 to the Consolidated Ind AS Financial Statements,

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Annual Report 2023 - 24

a) The final dividend proposed in the previous year declared and paid by the Holding Company
during the year is in accordance with Section 123 of the Act, as applicable.
b) The Board of Directors of the Holding Company have proposed final dividend for the year
which is subject to the approval of the members at the ensuing Annual General Meeting. The
amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
(vi) Based on our examination which included test checks, the Holding Company has used an
accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, during the course of our audit we did not
come across any instance of audit trail feature being tampered with.In the case of jointly
controlled entity, we are not in a position to report on the feature of recording audit trail (edit
log) facility as the consolidation is based on unaudited financials.

For G Venugopal Kamath & Co.

Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No:217021
UDIN:24217021BKERYV7796

Place: Kochi
Date: May 16, 2024

217
 Annexures to Auditors’ Report on the Financial Statements (Consolidated)

Annexure A to the Independent Auditors' Report of even date to the members of

The Fertilisers and Chemicals Travancore Limited on the Consolidated Ind AS
Financial Statements for the year ended March 31, 2024
(Referred to in paragraph 3(f) under 'Report on Other Legal and Regulatory Requirements'
section of our report of even date)
Independent Auditors' Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the Consolidated Ind AS Financial Statements of THE FERTILISERS AND
CHEMICALS TRAVANCORE LIMITED (hereinafter referred to as "the Holding Company") as of and for the
year ended March 31, 2024, we have audited the internal financial controls over financial reporting of the
Holding Company and its jointly controlled entity (hereinafter referred to as "the Group"), which are
Companies incorporated in India, as of that date.
Management's Responsibility for Internal Financial Controls
The respective Management and Board of Directors of the Companies included in the Group which are
Companies incorporated in India, are responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the respective companies
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting ("the Guidance Note") issued by the Institute of Chartered
Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective company's policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under the Companies Act,
2013 ("the Act")..
Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with 'the Guidance Note' on Audit of
Internal Financial Control over Financial Reporting (“the Guidance Note”) and the Standards on Auditing,
issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to
an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditors' judgment, including the assessment of the risks of
material misstatement of the Consolidated Ind AS Financial Statements, whether due to fraud or error.We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls system over financial reporting.

218
Annual Report 2023 - 24

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company's internal
financial control over financial reporting includes those policies and procedures that:
1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
Consolidated Ind AS Financial Statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the company's assets that could have a material effect on the Consolidated Ind AS
Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Group
which are Companies incorporated in India, have, in all material respects, reasonably adequate internal
financial controls system over financial reporting with reference to these Consolidated Ind AS Financial
Statements and such internal financial controls over financial reporting with reference to these
Consolidated Ind AS Financial Statements were operating effectively as at March 31, 2024, based on the
internal control over financial reporting criteria established by the Group, considering the essential
components of internal control stated in the “Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting” issued by the ICAI.
Other Matter
The internal financial controls with reference to financial statements in so far as it relates to one jointly
controlled entity, which is a company incorporated in India and included in these consolidated financial
statements, have not been audited till date of this report.
Our opinion is not modified in respect of this matter.
For G Venugopal Kamath & Co.
Chartered Accountants
Firm Regn No: 004674S

Sd/-
CA Vivek N Shenoy
Partner
Membership No:217021
UDIN:24217021BKERYV7796

Place: Kochi
Date: May 16, 2024

219
 Comments of C&AG of India on Consolidated Financial Statements

Office of the Director General of Audit,

(Agriculture, Food & Water Resources), New Delhi
Confidential

Report/2-245/DGA,CE/(AF&WR)/Acts/FACT/2024-25/2429
Date. 12.08.2024
To
The Chairman & Managing Director
The Fertilizers and Chemicals Travancore Limited
Eloor, Udyogamandal, Kochi 683 501, (Kerala)
Sub: Comments by the Comptroller and Auditor General of India on the financial accounts of The Fertilisers and
Chemicals Travancore Limited (Consolidated) for the year ended 31 March 2024 under section 143(6)(b) of the
Companies Act, 2013.
Sir,
The NIL comments are being sent herewith on the financial accounts of The Fertilizers and Chemicals Travancore
Limited (Consolidated) for the year ended 31 March 2024 under Section 143(6)(b) of the Companies Act 2013.
Kindly acknowledge receipt.
Yours faithfully,
(Sd/-)
(Sandeep Lall)
Director General of Audit, Central Expenditure
Encl: as above (Agriculture, Food & Water Resources)

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ
WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS
OF THE FERTILISERS AND CHEMICALS TRAVANCORE LTD FOR THE YEAR ENDED 31 MARCH 2024
The preparation of the consolidated financial statements of The Fertilisers and Chemicals Travancore Ltd for the
year ended 31 March 2024 in accordance with the financial reporting framework prescribed under the Companies Act,
2013 (Act), is the responsibility of the management of the company. The statutory auditor/ auditors appointed by the
Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act is/ are responsible for
expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on
independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is
stated to have been done by them vide their Audit Report dated 16 May 2024.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated
financial statements of The Fertilisers and Chemicals Travancore Ltd for the year ended 31 March 2024 under
section 143(6)(a) read with section 129(4) of the Act. We conducted a supplementary audit of the financial statements
of The Fertilisers and Chemicals Travancore Ltd. But did not conduct the supplementary audit of the financial
statements of FACT-RCF Building Products Limited*, for the year ended on that date.
This supplementary audit has been carried out independently without access to the working papers of the statutory
auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective
examination of some of the accounting records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any
comment upon or supplement to statutory auditors' report under section 143(6)(b) of the Act.
For and on the behalf of the Comptroller & Auditor General of India

(Sd/-)
(Sandeep Lall)
Place: New Delhi Director General of Audit, Central Expenditure
Date: 12.08.2024 (Agriculture, Food & Water Resources)

* FACT RCF Building Products Limited Kochi is under process of Corporate Insolvency Resolution Proceedings by National
Company Law Tribunal vide order dated 11.01.2024 as per Insolvency and Bankruptcy Code, 2016 and the Board of Directors was
Superseded (Note 44)

220
Annual Report 2023 - 24

Cleanliness Drive held aty FACT in connection with Swachatha Special Campign 3.0

A view of Mock Drill

FACT & Oil India limited signed a MoU to explore

green hydrogen, decarbonisation & clear energy
initiatives, paving the way for a sustainable future.

221
 Annual Report 2023 - 24

Women's Day Celebrations held at FACT

Ms. Soorya Thankappan, IPS planting a sapling

at FACT Township in connection with the
World Environment Day Celebrations

Former CMD Shri. Kishor Rungta

unfurling the National Flag
at the Republic Day Celebrations

Pledge on the Occasion of Productivity week celebrations

222
Annual Report 2023 - 24

Consolidated Balance Sheet as at 31st March 2024 ` In Lakh

Particulars Note As at As at
No. 31.03.2024 31.03.2023

ASSETS
NON CURRENT ASSETS
Property, Plant and Equipment 2 79,424.61 78,166.94
Capital Work in Progress 2A 22,205.05 10,459.40
Investment Property 2B 5.77 5.77
Right-of-use assets 2C 3,255.25 3,159.87
Other Intangible Assets 2D 27.43 45.68
Investments in Associates & Joint Ventures 3A 0.00 0.00
Financial Assets
Other Investments 3B 13,036.93 11,286.23
Other Financial Assets 4 1,187.05 12,797.43
Deferred Tax Asset 5 10,266.78 -
Other Non Current Assets 6 3,246.46 1,518.09

132,655.33 117,439.41

CURRENT ASSETS
Inventories 7 114,315.67 97,812.18
Financial Assets
Trade Receivables 8 15,813.73 47,887.48
Cash and Cash equivalents 9 43,566.83 4,969.15
Other Bank Balances 10 224,365.46 233,815.25
Other Financial Assets 11 24,647.83 11,839.56
Current Tax Assets 12 160.54 182.85
Other current Assets 13 21,924.48 25,417.78

444,794.54 421,924.25

Non-current Assets held for Disposal 14 4,065.02 4,065.02

TOTAL ASSETS 581,514.89 543,428.68

EQUITY AND LIABILITIES

EQUITY
Equity Share Capital 15 64,707.20 64,707.20
Other Equity 16 72,866.72 62,667.17

137,573.92 127,374.37

223
 Consolidated Balance Sheet as at 31st March 2024

Consolidated Balance Sheet as at 31st March 2024 ` In Lakh

Particulars Note As at As at
No. 31.03.2024 31.03.2023

LIABILITIES
NON CURRENT LIABILITIES
Financial Liabilities
Borrowings 17 0.00 510.00
Lease Liabilities 18 3,162.60 2,985.82
Other Financial Liabilities 19 29.36 30.74
Provisions 20 16,217.03 19,003.53
Other Non Current Liabilities 21 974.80 1,128.96

20,383.79 23,659.05
CURRENT LIABILITIES
Financial Liabilities
Borrowings 22 177,558.75 180,398.57
Lease Liabilities 23 301.03 276.68
Trade Payables 24
(i) Dues to Micro, Small and
Medium Enterprises 1,025.21 429.50
(ii) Dues to Others 47,359.79 37,372.87
Other Financial Liabilities 25 188,018.19 164,750.20
Other Current Liabilities 26 6,840.59 5,749.55
Provisions 27 2,453.62 3,417.89

423,557.18 392,395.26

TOTAL EQUITY AND LIABILITIES 581,514.89 543,428.68

Statement of Material Accounting Policies 1

Explanatory Information on Financial Statements 38-58

As per our Report of even date attached

For G. Venugopal Kamath & Co

Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

224
Annual Report 2023 - 24

Consolidated Statement of Profit and Loss for the year ended 31st March 2024
` In Lakh

Particulars Note Year ended Year ended

No. 31.03.2024 31.03.2023

I Revenue from Operations 28 505,492.61 619,814.73

II Other Income 29 20,311.62 13,557.68
III Total Income (I+II) 525,804.23 633,372.41
IV Expenses
Cost of Materials Consumed 30 299,344.71 417,898.38
Purchase of Stock in Trade 31 36,389.76 503.70
Changes in Inventories of Finished Goods,
Stock-in-Trade and Work-in-Progress 32 (5,065.94) (44,894.63)
Employee Benefit Expenses 33 28,393.99 28,818.53
Finance Cost 34 24,692.77 24,754.33
Depreciation and Amortization Expenses 2,2B,2C,2D 2,657.29 3,011.13
Other Expenses 35 110,482.63 141,997.76
Total Expenses (IV) 496,895.21 572,089.20
V Profit / (Loss) before exceptional items and tax (III - IV) 28,909.02 61,283.21
VI Exceptional Items (Income /(Expenses)) 36 (24,558.89) -
VII Profit / (Loss) before Tax (V+VI) 4,350.13 61,283.21
VIII Tax Expenses
Current Tax 0.00 0.00
Deferred Tax (10,266.78) 0.00
IX Profit / (Loss) for the Year after tax (VII-VIII) 14,616.91 61,283.21
X Other Comprehensive Income
(i) Items that will not be reclassified to Profit or loss
(a) Equity instruments through Other
Comprehensive Income-net change in fair value 1750.71 1497.77
(b) Remeasurement of defined benefit plan 16 303.58 (1,608.31)
(ii) Income Tax relating to items that will not be
reclassified to Profit or Loss 0.00 0.00
Other Comprehensive income for the year (X) 2,054.29 (110.54)
XI Total Comprehensive Income for the year (IX+X) 16,671.20 61,172.67
XII Earnings per Equity Share
Basic/Diluted per Equity Share ( ` ) 37 2.26 9.47
Statement of Material Accounting Policies 1
Explanatory Information on Financial Statements 38-58

As per our Report of even date Attached

For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

225
 Consolidated Balance Sheet as at 31st March 2024

Consolidated Statement of Cash Flow for the year ended 31st March 2024
` In Lakh

Particulars Year ended Year ended

31.03.2024 31.03.2023
A Cash flow From Operating Activities
Net Profit / (Loss) before Tax 4,350.13 61,283.21
Adjustments for:
Depreciation / Impairment loss on Assets 2,657.29 3,011.13
Exceptional items 24,558.89 -
(Profit) / Loss on Sale of Asset (240.85) (838.28)
Interest Income (18,917.01) (11,226.71)
Dividend Income (45.36) (38.88)
Interest and Finance Charges 24,692.77 24,754.33
Provision for Doubtful Trade receivables 48.43 70.21
Provision for other doubtful receivables - 18,301.45
Provision for Bad / Doubtful Advances 58.54 2.32
Provision for Obsolescence (739.86) 2,394.53
Amount written off- Deferred Government Grants (0.93) (0.94)
Expenditure towards Corporate Social Responsibility 873.22 421.18
Change in Provision (3,446.99) (2,278.84)
Adjustment for Non cash items (69.82) (44.38)

Operating Profit before Working Capital Changes 33,778.45 95,810.33

Adjustment for :
Inventories (15,763.63) (34,027.01)
Trade Receivables 13,773.61 (30,434.71)
Loans - 3.28
Other Current Assets 3,434.76 2,547.23
Other Financial Assets (11,109.60) 45,552.51
Trade Payables 10,582.63 (19,995.75)
Other liabilities (5,997.70) 4,683.56
(5,079.93) (31,670.88)
Cash Generated from Operations 28,698.53 64,139.45
(Direct Tax Paid)/ Refund received 22.31 49.70
Corporate Social Responsibility (873.22) (421.18)
Net Cash from Operating Activities 27,847.62 63,767.97
B Cash Flow from Investing Activities
Acquisition of Property, plant and equipment/CWIP (15,469.98) (9,267.66)
Proceeds from the sale of Property, plant and equipment 256.53 1,154.86
Acquisition of intangible assets (13.87) (9.80)
(Investment in )/Withdrawal of Bank deposits 21,328.15 (76,053.20)
Interest Received 16,950.36 9,119.35
Dividend Received 45.36 38.88
Capital advances paid (1,728.37) (1,518.09)
Net Cash from investing Activities 21,368.18 (76,535.66)

226
Annual Report 2023 - 24

Consolidated Statement of Cash Flow for the year ended 31st March 2024
` In Lakh
Particulars Year ended Year ended
31.03.2024 31.03.2023
C Cash Flow from Financing Activities
Net Proceeds /(Repayment) of Working capital facilities
and short term loans (3,349.82) 386.24
Dividend paid (net of unclaimed) (6,460.71) -
Interest Paid (807.58) (855.32)
Net Cash from Financing Activities (10,618.11) (469.08)
Net increase in Cash and Cash Equivalent (A+B+C) 38,597.68 (13,236.77)
Cash and Cash Equivalent as at 1st April (Opening Balance) 4,969.15 18,205.92
Cash and Cash Equivalent as at 31st March (Closing Balance) 43,566.83 4,969.15
Closing Cash and Cash Equivalents
Represented By :
Cash on hand 2.27 2.66
Balances with banks 2,305.85 22.09
Deposit with Bank (less than 3 month maturity) 41,223.02 4,933.08
Interest accrued 35.69 11.32
Total 43,566.83 4,969.15
As per our Report of even date Attached
For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

Consolidated Statement of changes in equity

A. Equity share capital
(1) 2023-24 (` In Lakh)
Particulars Balance as at Changes in Equity Share Restated Changes in equity Balance
01.04.2023 Capital due to prior balance share capital during as at 31.03.2024
period errors as at 01.04.2023 the year 2023-24
Equity shares 64,707.20 NIL 64,707.20 NIL 64,707.20
of `10 each
(2) 2022-23
Particulars Balance as at Changes in Equity Share Restated Changes in equity Balance
01.04.2022 Capital due to prior balance share capital during as at 31.03.2023
period errors as at 01.04.2022 the year 2022-23
Equity shares 64,707.20 NIL 64,707.20 NIL 64,707.20
of `10 each

227
 B. Other Equity

Sd/-
(1) 2023-24 ` In Lakh

Partner
Reserves & Surplus

Place: Kochi
Vivek N Shenoy

Date: 16.05.2024
Total

Income

Income

Particulars
money

Chartered Accountants
of a foreign operation
share warrants

Exchange differences on

Membership No.217021
(specify nature)

instruments
Effective portion of
Cash Flow Hedges

Other Comprehensive

Capital Reserve
Revaluation Surplus
Other items of Other

Other Reserve **
Other Comprehensive

Share application
pending allotment
translating the financial statements

Retained Earnings

Remeasurement of

Securities Premium

compound financial
Equity Instruments through
Comprehensive Income
Money received against

Equity component of
Debt instruments through

defined benefit plans

Firm Registration No. 004674S

In terms of our Report Attached
Balance as at 01.04.2023 - - 2.64 - 50.78 (3,518.54) 55,212.62 - 10,919.67 - - - - - 62,667.17

For G. Venugopal Kamath & Co

Changes in accounting
policy or prior period errors - - - - - - - - - - - - - - -

Sd/-
Restated balance as at the
beginning of the current
reporting period - - - - 50.78 (3,518.54) 55,212.62 - 10,919.67 - - - - - 62,667.17

S Sakthimani
DIN 07482308
Total Comprehensive Income
for the current year - - - - (0.93) 303.58 14,616.91 - 1,750.71 - - -` - - 16,670.27
Dividend - - - - - - (6470.72) - - - - -` - - (6,470.72)
Transfer to retained earnings - - - - - - - - - - - -` - - -
Any other change - - - - - - - - - - - - - - -
Balance as at 31.03.2024 - - 2.64 - 49.85 (3214.96) 63,358.81 - 12,670.38 - - - - -` 72,866.72

**Fund received towards Indo EEC Fertiliser Education Project

Sd/-

228
Director (Finance) & Chief Financial Officer
(2) 2022-23 ` In Lakh
Reserves & Surplus

Susan Abraham
Company Secretary
Total

Income

Income

Particulars
money
of a foreign operation
Consolidated Balance Sheet as at 31st March 2024

share warrants

Exchange differences on
(specify nature)

instruments
Effective portion of
Cash Flow Hedges

Other Comprehensive

Capital Reserve
Revaluation Surplus
Other items of Other

Other Reserve **
Other Comprehensive

Share application
pending allotment
translating the financial statements

Retained Earnings

Remeasurement of

Securities Premium

compound financial
Equity Instruments through
Comprehensive Income
Money received against

Equity component of
Debt instruments through

defined benefit plans

Sd/-
Balance as at 01.04.2022 - - 2.64 - 51.72 (1910.23) (6070.59) - 9421.90 - - - - - 1495.44
Changes in accounting
policy or prior period errors - - - - - - - - - - - - - - -
Restated balance as at the

DIN 03498837
For and on behalf of the Board of Directors
beginning of the current

S.C. Mudgerikar
reporting period - - - - 51.72 (1910.23) (6070.59) - 9421.90 - - - - - 1495.44
Total Comprehensive Income
for the current year - - - - (0.94) (1608.31) 61,283.21 - 1,497.77 - - -` - - 61,171.73
Dividend - - - - - - - - - - - -` - -

Chairman & Managing Director

Transfer to retained earnings - - - - - - - - - - - -` - - -
Any other change - - - - - - - - - - - - - - -
Balance as at 31.03.2023 - - 2.64 - 50.78 (3518.54) 55,212.62 - 10,919.67 - - - - -` 62,667.17

**Fund received towards Indo EEC Fertiliser Education Project

Annual Report 2023 - 24

NOTE 1
Statement of Material Accounting Policies forming part of Consolidated Financial
Statements for the Year ended 31st March 2024

1. Corporate Information
The Company is a Public Limited company domiciled in India and is incorporated under provisions of the
Companies Act applicable in India. The registered office of the Company is located at Eloor, Udyogamandal,
Ernakulam 683501, Kerala. The shares of the company are listed in National Stock Exchange of India
Limited.
The Company is engaged in the,
(i) Manufacturing and marketing of fertilizers and Petrochemicals,
(ii) Engineering Consultancy and Design and
(iii) Fabrication and Erection of Industrial Equipments.
2. Basis for preparation of financial statements
The Consolidated financial statements of the Company have been prepared in accordance with accounting
standards prescribed under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian
Accounting Standards) Rules,2015 as amended by Companies (Indian Accounting Standards)
(Amendment) Rules, 2016 and other relevant provisions of the Act.
The Consolidated financial statements have been prepared under the historical cost and on accrual basis,
except for the following:-
l Certain financial assets and liabilities measured at fair value
l Certain provisions recognized using actuarial valuation techniques
l Non-current assets classified as ”held for sale” are measured at the lower of their carrying amount
and fair value less cost to sell.
l Defined benefit plans – plan assets measured at fair value
The Consolidated financial statements are presented in Indian Rupees (`) and all values are rounded to the
nearest lakh (`00,000), except when otherwise indicated.
The consolidated financial statements relate to the Company [The Fertilisers and Chemicals Travancore
Ltd.] and Jointly Controlled Entity FACT-RCF Building Products Ltd.(FRBL).
The accounting policies have been consistently applied by the Company and its Jointly Controlled Entities
and are consistent with those used to prepare the opening balance sheet as at the transition date.
The financial statements of the Jointly Controlled Entity used in the consolidation are drawn up to the same
reporting date as of the Company i.e. for the year ended 31st March 2024.
2.1 Use of Estimate &Judgements
The preparation of financial statements in conformity with Ind AS requires management to make estimates,
judgments and assumptions. These estimates and judgments affect the application of accounting policies
and the reported amount of assets and liabilities, the disclosure of contingent assets and contingent
liabilities at the date of financial statements and the reported amount of revenue and expenses during the
period. Application of accounting policies that require critical accounting estimates involving judgements
have been disclosed in note (3). Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are made as management becomes

229
 Note Forming Part of Consolidated Financial Statements

aware of change in circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and if material, their effects are disclosed in
the notes to the financial statements.
2.2 Current versus non-current classification
Any asset or liability is classified as current if it satisfies any of the following conditions:
i. the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;
ii. the asset is intended for sale or consumption;
iii. the asset/liability is held primarily for the purpose of trading;
iv. the asset/liability is expected to be realized/settled within twelve months after the reporting period;
v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting date;
vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date.
All other assets and liabilities are classified as non-current.
For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained
its normal operating cycle as twelve months. This is based on the nature of services and the time between
the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.
Principles of Consolidation:
The financial statements of Jointly Controlled Entities and Associates are combined by applying Equity
method in accordance with INDAS 28 - “Investment in Associates and Joint Ventures”.
The Consolidated Financial Statements are prepared using uniform accounting policies for like transactions
and other events in similar circumstances and are presented to the extent possible, in the same manner as
the Company’s separate Financial Statements. Differences in accounting policies followed by joint venture
and Associate entity consolidated have been reviewed and no adjustments have been made, since the
impact of these differences is not material.
The following Jointly Controlled Entities and Associates are considered in the consolidated financial
statements:

Name of the Company Country of Proportion of Date of the

Incorporation Ownership Interest entity becoming
as on 31.03.2024 Joint Venture
FACT –RCF Building Products Ltd. India 50.00% 02May2008

3. Significant Accounting Policies

i) Property Plant and Equipment
a) All Property, Plant and Equipment are stated at acquisition cost less accumulated depreciation /
amortization and cumulative impairment. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognized when replaced.

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Annual Report 2023 - 24

b) All repairs and maintenance are charged to the Statement of Profit and Loss during the period in
which they are incurred. Gains or losses arising on retirement or disposal of property, plant and
equipment are recognised in the Statement of Profit and Loss.
c) Land purchased/acquired and under the possession of the company are treated as free hold land.
d) Technical know-how / license fee relating to plant / facilities are capitalized as part of cost of the
underlying asset
e) Income approach is adopted for accounting Government grants related to depreciable Property,
Plant and Equipment. Grants utilized for acquisition of depreciable Property, Plant and Equipment
are treated as Deferred Government Grants and the same is recognized in the Statement of Profit
and Loss on a systematic and rational basis over the useful life of the assets.
f) Spares costing (Unit value of ` 10 lakh and above), and other components which are required to be
replaced at intervals, meeting the recognition criteria have been classified as Plant and equipment
and are depreciated separately based on the useful lives of the corresponding item of the Property,
Plant & Equipment ..
g) The present value of the expected cost for the decommissioning of an asset after its use is included
in the cost of the respective asset if the recognition criteria for a provision are met.
h) Revenue expenses exclusively attributable to projects incurred during construction period are
capitalized. However, such expenses in respect of capital facilities being executed along with
production / operation simultaneously are charged to revenue.
Financing cost incurred during construction period on loans specifically borrowed and utilized for
projects is capitalized upto the date of capitalization.
Financing cost, if any, incurred on general borrowings used for projects is capitalized at the weighted
average cost. The amount of such borrowings is determined after setting off the amount of internal
accruals, if any.
Depreciation
Depreciation is charged on Property, plant and equipment based on the useful life of assets, prescribed
under the Schedule II of the Companies Act 2013, except where a different life is determined based on
technical review .The Company has adopted Straight Line method of depreciation for all the categories of
assets, acquired on or after 01st April 2014.
Effective from 1st April, 2014, the Company has reassessed the useful life of its existing Property, plant and
equipment (considering component approach wherever necessary) and has charged depreciation over the
remaining useful lives, after retaining residual value, in accordance with the transitional provisions
contained in the Schedule II of the Companies Act 2013.
Residual value of 5% has been retained for all the Property, plant and equipment, which is in line with the
provisions of the Schedule II.
Depreciation is charged @ 100% on the assets with acquisition value of less than ` 5,000/-, the value being
immaterial, considering the size and nature of the business of the Company.
Impairment
An asset is treated as impaired when the carrying amount of assets exceeds its recoverable value.
Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as
impaired. When the recoverable amount of previously impaired assets exceeds its carrying amount, the
value of asset is reinstated by reversing the impairment loss considered in prior years limited to lower of its
recoverable value or carrying amount at the depreciated historical cost.

231
 Note Forming Part of Consolidated Financial Statements

Capital Stores
Capital stores are valued at cost. Specific provision is made for likely diminution in value, wherever required.
Exemption Availed Under Ind AS 101
On transition to Ind AS, Company has elected to continue with the carrying value of all its property plant and
equipment existing as at 1st April 2016, measured as per previous GAAP (Indian GAAP) and used that
carrying value as the deemed cost of the property plant and equipment.
ii) Capital Work In Progress
Projects under which Property, Plant and Equipment are not yet ready for their intended use are carried at
cost, comprising direct cost, related incidental expenses and attributable interest.
iii) Investment Property
Investment properties are properties that are held to earn rentals and /or for capital appreciation (including
property under construction for such purposes) and not occupied by the Company for its own use.
Investment properties are measured initially at cost, including transaction costs and net of recoverable
taxes. The cost includes the cost of replacing parts and borrowing costs if recognition criteria are met. When
significant parts of the investment property are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. All other repair and maintenance costs are
recognized in profit or loss as incurred.
Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation
and accumulated impairment loss, if any.
Depreciation on Investment property, wherever applicable, is provided on straight line basis as per useful
lives prescribed in Schedule II to Companies Act, 2013.
Investment properties are de-recognized either when they have been disposed off or when they are being
occupied by the Company for its own use or when they are permanently withdrawn from use and no future
economic benefit is expected from their disposal. The difference between the net disposal proceeds and
the carrying amount of the asset is recognised in profit or loss in the period of derecognition.
Exemption availed under Ind AS 101 :- On transition to Ind AS, the Company has elected to continue with
the carrying value of its Investment Property existing as at 1st April 2016, measured as per previous GAAP
(Indian GAAP) and used that carrying value as the deemed cost of the same.
iv) Intangible Assets
Technical know-how / license fee relating to production process and process design are recognized as
intangible assets and amortised on a straight line method over a period of 5 years or life of the underlying
plant / facility whichever is earlier.
Expenditure incurred on Research and Development, other than capital account is charged to revenue.
Costs incurred on computer software purchased/developed resulting in future economic benefits, are
capitalized as intangible assets and amortized over a period of 5 years or life of the facility whichever is
earlier.
Exemption Availed Under Ind AS 101
For transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible
assets existing as on 1st April 2016 measured as per the previous GAAP (Indian GAAP) and use that value as
its deemed cost as of the transition date.
The Company has no intangible assets with infinite useful lives.

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Annual Report 2023 - 24

v) Inventory Valuation
Raw materials and stores and spares are valued at or below cost. Cost being ascertained on moving
weighted average method. In cases where there has been a decline in the price of imported and
indigenous raw material and it is estimated the cost of finished product will exceed the net realizable
value, the materials are written down to net realizable value.
Materials in process are not valued.
Finished/Trading products are valued at lower of cost or net realizable value in the aggregate, product-
wise. Intermediate products are valued at lower of cost or net realizable value derived from finished
products and saleable by-product at realizable value. Cost of Finished / semi-finished / intermediate
products are determined based on annual average cost excluding interest and head office and
administrative overheads. Cost of finished goods in warehouse includes freight and handling charges.
Materials in transit / under inspection are valued at cost.
Gypsum Valuation
The entire quantity of saleable gypsum is valued at the lowest slab of the approved price for the next
financial year reduced by the anticipated loading charges and moisture discount or average of the actual
price realized during the year, whichever is lower. . For assessing the closing stock of gypsum, the
saleable quantity is assessed on the basis of physical verification conducted at the end of the financial
year.
vi) Commitments
Capital Commitments
Estimated amount of contracts remaining to be executed on capital accounts, above ` 5 lakhs in each
case, are considered for disclosure.
Other Commitments
Disclosure is considered in respect of those non-cancellable contractual commitments (i.e. cancellation
of which will result in a penalty disproportionate to the benefits involved) based on the professional
judgement of the management which are material and relevant.
vii) Borrowing Cost
Borrowing Costs that are specifically identified to the acquisition or construction of qualifying assets are
capitalised as part of such asset. A qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.
viii) Investments
All equity investments in scope of Ind- AS 109 are measured at fair value. Equity instruments which are
held for trading are classified as at Fair Value through Profit and Loss (FVTPL). For all other equity
instruments, the Company may decide to classify the same as at Fair Value through Other
Comprehensive Income (FVTOCI). The Company makes such election on an instrument-by-instrument
basis upon on initial recognition and same is irrevocable. Company is not holding any equity instrument
for trading.
Upon classification of equity instruments as at FVTOCI, all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to
Statement of Profit and Loss, even on sale of investments. The Company may transfer the cumulative
gain or loss within equity.

233
 Note Forming Part of Consolidated Financial Statements

ix) Revenue Recognition

The revenue is recognised as and when control of goods or services is transferred to the customer at the
amount which the Company expects to be entitled to. The Company adopted the ‘Input method’ as per Ind
AS 115 for recognition of revenue.
Subsidy is recognised on sale of fertilisers to dealers. Freight subsidy is recognised on receipt of fertilisers at
respective districts. Recoveries made are withdrawn from the claim on the basis of settlement as per the
policies in force. Any differential subsidy due to change in rate of subsidy shall be recognised considering its
recoverability.
Other income is recognized on an accrual basis.
Dividend income is recognized when right to receive dividend is established.
Interest income is recognized when no significant uncertainty as to its realization exists.
Scrap, salvaged / waste materials and sweepings are accounted for on realization.
Claims on underwriters, carriers and on Customs and Central Excise, Goods and Services Tax Departments
are taken into account on acceptance.
Insurance and other miscellaneous claims are recognized on receipt/ acceptance of claim. Contractual pass
through incentives, benefits, etc. are recognized on receipt basis.
x) Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the contract lease. The arrangement is, or contains, a lease if fulfilment of
the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as a lessee
At the commencement date, Company recognizes a right-of-use asset at cost and a lease liability at present
value of the lease payments that are not paid at commencement date. To assess whether a contract
conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the Company has right to obtain substantially all of the economic
benefits from use of the asset throughout the period of the lease and (iii) the Company has the right to direct
the use of the asset.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease
liability (at present value) adjusted for any lease payments made at or prior to the commencement date of
the lease plus any initial direct costs less any lease incentives (at present value) except for leases with a
term of twelve months or less (short-term leases) and low value leases. For these short-term and low value
leases, the Company recognizes the lease payments as an operating expense. Lease of items such as IT
Assets (tablets, personal computers, mobiles, POS machines etc.), small items of office furniture etc. are
treated as low value.
The lease liability is initially measured at amortized cost at the present value of the future lease payments.
The lease payments are discounted using the Company’s incremental borrowing rate computed on periodic
basis based on lease term. Lease liabilities are re-measured with a corresponding adjustment to the related
right-of-use asset if the Company changes its assessment, whether it will exercise an extension or a
termination option.
Right-of-use assets are depreciated over the lease term on systematic basis and Interest on lease liability is
charged to Statement of Profit and Loss as Finance cost.

234
Annual Report 2023 - 24

Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income from operating lease is recognised as revenues as
per lease terms since such rentals are structured to increase in line with expected general inflation. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as
receivables at the Company’s net investment in the leases.
Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on
the net investment outstanding in respect of the lease.
xi) Foreign Currency Transactions:
Receivables and payables in foreign currency as on the reporting date including forward exchange contracts
are restated at the rate prevailing at that date.
The premium in respect of forward exchange contracts is recognized in the year of contracts.
Variations arising on account of fluctuations in foreign exchange rates are treated as revenue (gain/loss (-)).
xii) Employee Benefits
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services
rendered by employee are recognized as an expense during the period when the employees render the
services.
Post -Employment Benefits
Defined Contribution Benefits
Contributory Superannuation Scheme with an annual contribution of `100 by the Company, aimed to
provide superannuation benefits to the employees, has been treated as Defined contribution Plan.
Defined Benefit Plans
The company’s contribution to the Provident Fund is remitted to separate trust established for this
purposes based on a fixed percentage of the eligible employees salary and charged to Statement of
Profit and Loss. Shortfall, if any, in the fund assets based on the Government specified minimum
rate of return will be made good by the company and charged to Statement of Profit and Loss. As a
matter of prudence Company provides for certain expenses of the fund such as audit fees &
expenses, bank charges etc.
The company operates defined benefit plan for gratuity and leave encashment. The cost of providing
such defined benefits is determined using the projected unit credit method of actuarial valuation
made at the end of the year and the gratuity fund in respect of regular employees is administered
through a fund maintained by insurance company.
Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately
in the balance sheet with a charge or credit recognized in other comprehensive income in the period
in which they occur. Re-measurements recognized in other comprehensive income is reflected
immediately in retained earnings and is not reclassified to profit or loss. Past service cost is
recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying

235
 Note Forming Part of Consolidated Financial Statements

the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined
benefit costs are categorized as follows:
i) service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);
ii) net interest expenses or income; and re-measurements
The Company presents the first two components of defined benefit costs in the Statement of profit
and loss in the line item ‘Employee benefits expense’.
xiii) Grants
Government grants in the nature of promoters’ contribution are credited to Capital reserve and treated as
part of Shareholders funds.
In case of depreciable assets, the cost of the asset is shown at gross value and grant thereon is treated as
Capital Grants which are recognized as income in the statement of Profit and Loss over the period and in the
proportion in which depreciation is charged.
Revenue grants relating to revenue expenses are deducted from the respective expenses.
In respect of revenue grants released by Government, the treatments in the accounts are considered as per
the respective schemes notified by the Government. Other revenue grants relating to revenue expenses
are considered as income and credited to statement of Profit and Loss.
xiv) Taxes
Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized using the Balance sheet approach. Deferred income tax assets and liabilities are
recognized for deductible and taxable temporary differences arising between the tax base of assets and
liabilities and their carrying amount in financial statements.
Deferred tax assets is recognized for the carry forward of unused tax losses and unused tax credits to the
extent it is probable that the future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilized, subject to management judgment. The company reassess un-recognized
deferred tax assets at the end of each reporting period.
xv) Goods and Services Tax
Goods and Service Tax credit on eligible materials and services is recognised on receipt of such materials
and services.
xvi) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM) Ref Note No 44
Revenue and expenses have been identified to segments on the basis of their relationship to the operating
activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not
allocable to segments on a reasonable basis have been included under un-allocable corporate expenses.
Investments, advance towards investments and other advances, which are not allocable to segments, are
excluded from segment capital employed.
xvii) Contract Operations
In contract operations revenue is recognized on percentage of completion method. The stage of completion
is ascertained on the basis of physical evaluation of respective contract activity on the reporting date.
Foreseeable losses on contract activities are recognized fully irrespective of the progress of work. The
amount of estimated liquidated damages is reduced from revenue.

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Annual Report 2023 - 24

In the case of Total responsibility jobs/Deposit work/Cost plus contracts, contract revenue is determined by
adding the aggregate cost plus fixed percentage fees thereon as agreed with the Customer.
xviii) Errors and Omissions of earlier period
Errors and omissions in individual items of Income and Expenditure relating to a earlier periods, exceeding
`5 Lakh is accounted in the respective period, if possible, or adjusted against opening retained earnings.
xix) Research and Development Expenses
Research and development expenses (other than cost of Property, plant and equipment acquired) are
charged as an expense in the Statement of Profit And Loss in the year in which they are incurred.
xx) Provisions, Contingent Liabilities and Contingent Assets
Provision is recognised in the accounts when there is a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be
made. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Show Cause
notices issued by various Government Authorities are not considered as Obligation. When the demand
notices are raised against such show cause notices and are disputed by the company, these are classified as
disputed obligations.
The treatment in respect of disputed obligations, in each case, is as under:
i) a provision is recognized in respect of present obligations where the outflow of resources is
probable
ii) all other cases are disclosed as contingent liabilities unless the Possibility of outflow of resources is
remote.
Contingent assets are not recognized in the financial statements, however where the inflow of economic
benefits are probable as at the end of the reporting period, a brief description of the nature of the contingent
assets along with its estimated financial effect is disclosed in the financial statements.
xxi) Non-current assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities are classified as held for sale if it is
highly probable that they will be recovered primarily through sale rather than through continuing use. Such
assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less
costs to sell. Any resultant loss on a disposal group is allocated first to goodwill, and then to remaining
assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets,
deferred tax assets, employee benefit assets, and biological assets, which continue to be measured in
accordance with the Group’s other accounting policies. Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are recognized in profit or loss. Once classified as held-
for-sale, intangible assets, property, plant and equipment and investment properties are no longer
amortized or depreciated.
xxii) Financial Instruments
Financial Assets Classification
The Company classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through other comprehensive income, or through
profit and loss), and those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.

237
 Note Forming Part of Consolidated Financial Statements

For assets measured at fair value, gains and losses arising from fair valuation will either be recorded in profit
or loss or other comprehensive income. For investments in debt instruments, this will depend on the
business model in which the investment is held. For investments in equity instruments, this will depend on
whether the Company has made an irrevocable election at the time of initial recognition to account for the
equity investment at fair value through other comprehensive income.
Measurement
Initial recognition
The Company measures a financial asset at its fair value and, in the case of a financial asset not at fair value
through profit or loss, at fair value including transaction costs that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
recognized in profit and loss.
Subsequent Measurement
Subsequent measurement of financial assets depends on the Company’s business model for managing the
asset and the cash flow characteristics of the asset. There are three measurement categories into which
the Company classifies its financial assets:
Amortized Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost.
Fair value through other comprehensive income (FVOCI)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where
the assets’ cash flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive income (FVOCI). Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange
gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and
recognised in other income.
Fair value through Profit and Loss(FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through
profit and loss.
Investments in Joint Venture
The results and assets and liabilities of associates or joint ventures are incorporated in the consolidated
financial statements using the equity method of accounting, except when the investment, or a portion
thereof, is classified as held for sale, in which case it is accounted for in accordance with IND AS 105.
An associate is an entity over which the Company has significant influence. Significant influence is the
power to participate in the financial and operating policy decisions of the investee, but is not in control or
joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control
of an arrangement, which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
The considerations made in determining whether significant influence or joint control are similar to those
necessary to determine control over the subsidiaries.
The Company’s investments in its associate and joint venture are accounted for using the equity method.
Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The

238
Annual Report 2023 - 24

carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of
the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is
included in the carrying amount of the investment and is not tested for impairment individually.
The statement of profit and loss reflects the Company’s share of the results of operations of the associate or
joint venture. Any change in OCI of those investees is presented as part of the Company’s OCI. In addition,
when there has been a change recognised directly in the equity of the associate or joint venture, the
Company recognises its share of any changes, when applicable, in the statement of changes in equity.
Unrealised gains and losses resulting from transactions between the Company and the associate or joint
venture are eliminated to the extent of the interest in the associate or joint venture.
If an entity’s share of losses of an associate or a joint venture equals or exceeds its interest in the associate
or joint venture (which includes any long term interest that, in substance, form part of the Company’s net
investment in the associate or joint venture), the entity discontinues recognising its share of further losses.
Additional losses are recognised only to the extent that the Company has incurred legal or constructive
obligations or made payments on behalf of the associate or joint venture. If the associate or joint venture
subsequently reports profits, the entity resumes recognising its share of those profits only after its share of
the profits equals the share of losses not recognised.
The aggregate of the Company’s share of profit or loss of an associate and a joint venture is shown on the
face of the statement of profit and loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Company. When necessary, adjustments are made to bring the accounting policies in line with those of the
Company.
After application of the equity method, the Company determines whether it is necessary to recognise an
impairment loss on its investment in its associate or joint venture. At each reporting date, the Company
determines whether there is objective evidence that the investment in the associate or joint venture is
impaired. If there is such evidence, the Company calculates the amount of impairment as the difference
between the recoverable amount of the associate or joint venture and its carrying value, and then
recognises the loss as ‘Share of profit of an associate and a joint venture’ in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, the Company
measures and recognises any retained investment at its fair value. Any difference between the carrying
amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of
the retained investment and proceeds from disposal is recognised in profit or loss.
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition as loans and borrowings, payables, derivatives and
financial liabilities at fair value through profit or loss. The Company’s financial liability consists of trade and
other payables, loans and borrowings, bank overdrafts, financial guarantee contracts and derivative financial
instruments.

239
 Note Forming Part of Consolidated Financial Statements

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs, if any.
Subsequent measurement
The subsequent measurement of financial liabilities of the Company depending on their classification is
described below:
De-recognition
A financial liability is derecognized when the obligation specified in the contract is discharged,
cancelled or expires.
Offsetting of financial instruments
Financial Assets and Financial liabilities are offset and the net amount is reported in the balance sheet, if
there is a currently enforceable legal right to set off the recognized amounts and there is an intention to
settle on net basis, to realize the assets and settle the liabilities simultaneously.
Loans and borrowings including bank overdrafts
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of
profit and loss.
This category generally applies to interest-bearing loans and borrowings.
Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder of the guarantee for a loss it incurs because the specified debtor fails to make
a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are
recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the
issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind-AS 109 and the amount recognized less
cumulative amortization.
xxiii) Exemption as per Ind AS 101
Company has elected to continue with the carrying value for all of its property, plant and equipment as
recognized in the financial statements as at the date of transition measured as per Indian GAAP and use that
as its deemed cost as at date of transition to Ind AS. The same is applicable even for Investment property
and intangible assets.
Company has also reviewed the necessary adjustments required to be done in accordance with paragraph
D21 of the standard (i.e. adjustments arising on account of decommissioning or restoration liabilities) and
has accordingly considered the impact of the same wherever applicable.
The Company has designated unquoted equity instruments held at 1st April 2016 as fair value through OCI.
xxiv) Statement of Cash flow
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.

240
Annual Report 2023 - 24

xxv) Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding
during the period. Diluted earnings per share is computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the period.
xxvi) Dividend
The Company recognizes a liability to pay dividend to shareholders when the distribution is authorized and
the same is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability
on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of
declaration by the Company’s Board of Directors. A corresponding amount is recognized directly in equity.
xxvii) Exceptional Items
Exceptional items of income and expenses within profit or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the
period, the nature and amount of such items are disclosed separately as exceptional items.

241
 Notes Forming part of consolidated financial statement
Note 2 Non Current Assets-Property, Plant and Equipment (PPE):
` In Lakh
DEEMED COST / COST DEPRECIATION IMPAIRMENT LOSS NET BLOCK

the year

Particulars
Adjustment
Change due
For the year

to revaluation
On Adjustment

during the year

during the year

during the year

during the year
during the year

Upto 01.04.2023
Upto 01.04.2023

Upto 31.03.2024
Upto 31.03.2024

As at 01.04.2023
As at 31.03.2023

As at 31.03.2024
As at 31.03.2024

Additions during
Disposal/Deduction
Acquisition through
business combination
(Withdrawal)/Provision

On Disposal/Deduction
Tangible Assets
Land 49,559.06 0.04 - - - - 49,559.10 - - - - - - - - 49,559.10 49,559.06
Buildings 2,045.53 - (0.18) - - - 2,045.35 416.86 63.87 - - 480.73 - - - 1,564.60 1,628.65
Plant and
Equipment 39,341.37 3,631.18 (21.34) - - - 42,951.21 13,532.48 2,151.83 (13.88) - 15,670.43 - - - 27,280.80 25,808.90
Furniture and
Fixtures 67.66 7.55 - - - - 75.21 16.13 4.16 - - 20.29 - - - 54.92 51.53
Vehicles 371.57 5.96 (13.37) - - - 364.16 131.25 36.50 (10.32) - 157.42 - - - 206.74 240.32
Office equipment 1,091.01 65.09 - - - - 1,156.10 643.78 148.59 - - 792.37 - - - 363.73 447.23
Others:-
Roads & Culverts 338.17 - - - - - 338.17 110.37 10.29 - - 120.66 - - - 217.51 227.80

242
Railway Sidings 15.62 - - - - - 15.62 - - - - - - - - 15.62 15.62
Misc. Assets 249.56 2.43 - - - - 251.99 148.41 15.98 - - 164.39 - - - 87.60 101.15
Retired Asset 511.66 - (5.03) - - - 506.63 424.99 7.68 (0.04) - 432.64 - - - 73.99 86.67
Minor Assets 34.86 12.08 - - - - 46.94 34.85 12.08 - - 46.93 - - - - -
Total 93,626.07 3,724.33 (39.92) - - - 97,310.48 15,459.12 2,450.98 (24.24) - 17,885.86 - - - 79,424.61 78,166.94
Previous year 91,127.31 3,059.66 (560.90) - - - 93,626.07 12,900.05 2,803.37 (244.32) - 15,459.12 - - - 78,166.94 78,227.21
2.1) Company has agreed to mortgage 408 acres of land held vide patta no.7030 in survey no.205 in Puthencruz village, Ernakulam District ,Kerala State to the Government of India against the plan loan sanctioned by the Government of India during the year 2015-16.
2.2) Out of 1499.73 acres (Previous year 1498.97 acres) of land held by the Company, 15.02 acres,for which right of use asset is recognised (Previous year 14.26 acres ) are held under lease hold right from Cochin Port Trust, for which lease agreement is under finalization. 80.50 acres of land has been provided as
security towards arbitration award in the dispute between the Company and M/s.ABC & Sons Ltd (Refer Note. 48.1).
2.3) The land held by the company also include 143.22 acres which were under lease from Government of Kerala. During the year 2019-20, company had sold 481.79 acres of Land, as approved by Union Cabinet, Government of India @ `1 Crore per acre for 150 Acres (in lieu of free hold right accorded by the
Note Forming Part of Consolidated Financial Statements

Government of Kerala over 143.22 acres of lease hold land) and remaining 331.79 acres @ ` 2.4758 Crore per acre as assessed by the District Collector. On receipt of the valid order from revenue department during the year 2022-23, Company has accounted the 143.22 acres of land as freehold land , at its fair
value `47956 lakhs, as restatement of opening balance of PPE and Other Equity as on 01.04.2021.
2.4) Title deeds are yet to be registered/ received, in respect of 40 acres of Land. Certain land owners have since preferred extra compensation claims which are pending before Courts. The liability on this account is not ascertainable. Interest and legal expenses incurred on land acquisition cases are charged to
Statement of Profit and Loss of the respective year.
2.5) During the year 2022-23, Company has disposed off the old thermal plant (14 MW area and 12 mw area), water treatment plant, concentration section of phosphoric acid plant, filtration section of effluent treatment plant and the old sulphuric acid day tank in Cochin Division, as scrap. These items of Property,
Plant & Equipment with written down value of `312.18 lakhs has been disposed at a sale consideration of `1138.01 lakhs (including related spares)
2.6) Railway siding includes siding held jointly with M/s.Bharat Petroleum Corporation Limited (Kochi Refinery) with written down value `4.27 lakh (Previous year ` 4.27 lakh),
2.7) Company has given land ranging from 2.50 hectares to 4.1344 hectares to Kochi Metro Rail Limited on leave and license basis till 31.07.2023
2.8) Plant & Equipment includes value of 6 numbers of Ammonia bullets fixed on the barges of contractor of the company for transportation of Ammonia, with net Written Down value of 2.66 lakh.
2.9) First charge has been created on 36.08 acres of land (Previous year- 36.08 acres of land), in the State of Kerala, as security for Non Fund Based working capital arrangement with State Bank of India.
2.10) The above includes assets procured with EEC grant with book value `53.97 lakh (previous year `54.91 lakh,)
2.11) Depreciation is charged on Property, plant and equipment based on the useful life of assets prescribed under the Schedule II of the Companies Act 2013 except for the following assets, for which depreciation is charged based on the estimated useful life ascertained on evaluation by the concerned technical team
of the Company.

i) DCS for Fertiliser Plant 10 Years

ii) Analysers 5 Years
iii) Rejuvenation of caprolactam plant 15 years
Annual Report 2023 - 24

Note No. 2A Non Current Assets- Capital Work in Progress ` In Lakh

As at 31.03.2024 As at 31.03.2023

Capital Work in Progress 21,883.07 10,109.19

Goods in Transit / Goods pending inspection /Capital Stores 321.98 350.21
22,205.05 10,459.40
Note No. 2B . Non Current assets - Investment Property
Particulars As at 31.03.2024 As at 31.03.2023
Opening Balance
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
Addition/ (Deletion)
Land 0.00 0.00
Building 0.00 0.00
Total 0.00 0.00
Closing Balance
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
Depreciation
Building
Opening Balance 0.00 0.00
Adjustments 0.00 0.00
Current Year 0.00 0.00
Closing Balance 0.00 0.00
Net Block
Land 5.77 5.77
Building 0.00 0.00
Total 5.77 5.77
During the year 2011-12 Company by way of leave and license basis, has made available to GAIL (India) Ltd,
at Udyogamandal/Cochin Division, 2.40 acres of land and right to use of 0.33 acres for laying pipelines for a
period of 35 years for an upfront premium of ` 479 lakh and yearly license fee of ` 100. The Leave and license
agreement is yet to be executed.
As per the Joint Venture agreement with Rashtriya Chemicals & Fertilisers Ltd (RCF), the Company during
2008-09, has made available, 11 acres of land at Cochin Division on lease basis to FACT-RCF Building
Products Ltd, for a period of 20 years for an upfront premium of ` 1000 lakh and yearly rent of `10.
During the year 2021-22, company has entered into a Leave and License agreement with Kochi Salem
Pipeline Private Limited (KSPPL) by allotting 30 cents of land to KSPPL at Udyogamandal for a period of 15
years with effect from 10-01-2022. ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Rental Income from investment property 124.75 124.69
Direct operating expenses to income generating property 0.00 0.00
Less: Reimbursement of expenses 0.00 0.00
Profit arising from Investment Property before depreciation 124.75 124.69
Depreciation - -
Profit arising from Investment Property 124.75 124.69

243
 Note Forming Part of Consolidated Financial Statements

Reconciliation of fair value ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Fair Value of Investment property
Opening Balance
Freehold Land 2,906.41 2,642.19
Buildings - -
Total 2,906.41 2,642.19
Additions/(Deletions)
Freehold Land 581.28 264.22
Buildings 0.00 0.00
Total 581.28 264.22
Closing Balance
Freehold Land 3,487.69 2,906.41
Buildings - -
Total 3,487.69 2,906.41

Fair Value of Freehold Land is based on the notification issued by the Government of Kerala in their website.

Note 2C Right of use Assets ` In Lakh

NET CARRYING
GROSS CARRYING AMOUNT DEPRECIATION
AMOUNT

Particulars As at Additions Disposal/ Remeasurement As at Up to For the On Disposal/ Up to As at As at

01.04.2023 during Deduction of lease 31.03.2024 01.04.2023 year Deduction 31.03.2024 31.03.2024 31.03.2023
the year during the during during the
year the year year

Right of
use Assets 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25 3,159.87
Total 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25 3,159.87
Previous
year 3,577.18 16.15 (41.58) 53.89 3605.64 320.19 167.16 (41.58) 445.77 3,159.87 3,256.99
1. The above includes, leased land from Cochin Port Trust taken for the purpose of storage, handling of raw
materials and for setting up a dock for barge operations. The lease agreement is pending execution. The
recognition of Right of use Asset and lease liability has been made based on the draft agreement agreed
upon based on the sanction from Ministry of Shipping, Government of India, dated 14.11.2014. (Refer Note-
40)
Note No. 2D Non Current Assets- Other Intangible Assets ` In Lakh
Deemed Cost Amortization Impairment Loss Net Block
Particu As at Additions Disposal/ Adjustment Acquisition Change As at Up to For On On Up to Up to (Withdrawal)/ Up to As at As at
lars 01.04.2023 during Deduction during through due to 31.03.2024 01.04.2023 the Disposal/ adjustment 31.03.2024 01.04.2023 priovision 31.03.2024 31.03.2024 31.03.2023
the during the year business Revaluation year Deduction during during
year the year combination during the year the year
the year
Computer
Software 210.64 13.87 0.00 0.00 0.00 0.00 224.51 164.96 32.12 0.00 0.00 197.08 0.00 0.00 0.00 27.43 45.68
Total 210.64 13.87 0.00 0.00 0.00 0.00 224.51 164.96 32.12 0.00 0.00 197.08 0.00 0.00 0.00 27.43 45.68
Previous
year 200.84 9.80 0.00 0.00 0.00 0.00 210.64 124.37 40.59 0.00 0.00 164.96 0.00 0.00 0.00 45.68 76.47

244
Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

` In Lakh
Note No. 3A Non Current Asset - Financial Assets - Investments in Associates & Joint Ventures
Particulars As at 31.03.2024 As at 31.03.2023
In Joint Venture
FACT-RCF Building Products Ltd
3,52,27,000 (Previous year 3,52,27,000 ) Equity Shares of ` 10/- each 3,522.70 3,522.70
Less: Provision for diminution in the value of investment (3,522.70) (3,522.70)
(Refer Note 1 Below) 0.00 0.00
In Associate
Kerala Enviro Infrastructure Ltd
31,24,000 (Previous year 31,24,000) equity shares of `10/- each fully paid-up 0.00 0.00
(Refer Note 2 below) - 0.00
Investment in Associates & Joint Venture - 0.00
Reconciliation of fair value measurement of the investment in
unquoted equity shares
FACT-RCF Building Products Ltd
Opening balance 0.00 0.00
Total gains and losses recognised in OCI 0.00 0.00
Closing Balance 0.00 0.00
Kerala Enviro Infrastructure Ltd
Opening balance 0.00 407.99
Total gains and losses recognised in OCI 0.00 0.00
Reclassification of the Investment 0.00 (407.99)
Closing Balance 0.00 0.00

1. National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in CP(IBC)/39/KOB/2023 filed by a financial creditor of
FACT-RCF Building Products Ltd (FRBL) appointed an Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution
Proceedings against FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was superseded.The
Resolution Professional commenced the proceedings and is in the process of publishing advertisement for Expression of interest from the
prospective applicants for submission of resolution plan for FRBL.
2. The Company’s percentage of share holding in the equity shares of Kerala Enviro Infrastructure Ltd as on 31.03.2024 is 15.91%. As the
investments had become less than 20%, in 2022-23 itself the investment has hence been re-classified as ‘Other Investments’.
Note No. 3B Non Current Asset - Financial Assets - Other Investments
Particulars As at 31.03.2024 As at 31.03.2023
Investment in unquoted equity shares:
Travancore Cochin Chemicals Ltd.,
6,81,820(Previous year 6,81,820)Equity Shares of
`10/- each including 3,40,910 Bonus shares. 231.27 245.74
Kerala Enviro Infrastructure Ltd
31,24,000 (Previous year 31,24,000) equity shares of
`10/- each fully paid-up- (Refer Note 3A- 2) 532.95 462.88
Capexil Agencies Ltd.
15 (Previous year 15) Equity Shares of `1000/- each
fully paid up 0.15 0.15
Less: Provision for diminution in the value of investment (0.15) (0.15)
- -
Indian Potash Ltd.
6,48,000 (Previous year 6,48,000) Equity Shares of 12,271.69 10,576.59
`10/- each fully paid-up, including 459000
(previous year 459000) Bonus Shares
13,035.91 11,285.21
Shares in Co-Operative Societies:
FACT Co-operative Society Ltd
10,001 (Previous year 10,001) shares of `10/- each fully paid-up 1.00 1.00
Meherabad Co-operative Housing Society Ltd
7 (Previous year 7) shares of `100/- each fully paid-up 0.01 0.01
Good Earth Housing Society Ltd.
10 (Previous year 10) shares of `50/- each fully paid-up
`500 (Previous year ` 500) 0.01 0.01
1.02 1.02
Other Investments 13,036.93 11,286.23

245
 Note Forming Part of Consolidated Financial Statements

` In Lakh
Aggregate amount of unquoted investments 13,036.93 11,286.23
Reconciliation of fair value measurement of the investment
in unquoted Equity shares
Travancore Cochin Chemicals Ltd
Opening balance 245.74 160.16
Total gains and losses recognised in OCI (14.46) 85.58
Closing Balance 231.27 245.74
Kerala Enviro Infrastructure Ltd
Opening balance 462.88 -
Total gains and losses recognised in OCI 70.07 54.89
Reclassification of the Investment - 407.99
Closing Balance 532.95 462.88
Capexil Agencies Ltd.
Opening balance 0.00 0.00
Total gains and losses recognised in OCI 0.00 0.00
Closing Balance 0.00 0.00
Indian Potash Ltd
Opening balance 10,576.59 9,219.29
Total gains and losses recognised in OCI 1,695.11 1,357.31
Closing Balance 12,271.69 10,576.59
Note : Shares of Co-operative societies are retained at book value.
Note No. 4. Non current Assets - Financial assets- Other Financial Assets
Particulars As at 31.03.2024 As at 31.03.2023
Security deposit
Unsecured Considered Good 1,175.06 907.08
Amount pledged for Letter of Credit, Bank Guarantee and
Fund based arrangements * (i) 0.00 199.00
Deposit held towards Capex projects * (ii) 0.00 11,600.00
Interest Accrued on (i) and (ii) above 0.00 79.39
Other Deposits 11.99 11.96
Advances to Related Parties
Considered doubtful 3,618.56 3,618.00
Less : Provision for Doubtful Advances (3,618.56) (3,618.00)
0.00 0.00
Less : Provision for Doubtful Advances 0.00 0.00
0.00 0.00
Advance to others
Unsecured Considered Doubtful 25,813.77 25,755.79
Less : Provision for Doubtful Advances (25,813.77) (25,755.79)
0.00 0.00
1,187.05 12,797.43
*with more than 12 months maturity from the reporting date

246
Annual Report 2023 - 24

` In Lakh

Movement in Provisions
Provision for bad & doubtful loans and advances
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 29,373.79 29,611.51
Provision released during the year - -240.04
Provisions made during the year 58.54 2.32
Provision at the end of the year 29,432.33 29,373.79

1. Provision for doubtful loans and advances include `25450.98 lakh (Previous year ` 25450.98 lakh)
towards interest accrued upto 31.03.2022, on mobilisation advance given to a private company.
Pending litigation, equivalent provision has been made towards interest beyond the amount considered
recoverable (Refer note 13.2, 48.1)
Note No. 5. Non current Assets - Deferred Tax Assets
Particulars As at 31.03.2024 As at 31.03.2023
Deferred Tax Asset (Net) 10,266.78 -
10,266.78 -

The Company has a Deferred Tax Asset of ` 13198.25 lakhs on account of unabsorbed depreciation and
carry forward business loss. The deferred tax liability as on 31.03.2024 is ` 2931.47 lakhs . Net Deferred
Tax asset is recognised as on 31.03.2024. The Company had not recognised Net Deferred tax
Asset/Liability till 31.03.2023 as a matter of prudence.
Particulars Tax Base Deferred Tax
Asset /(Liability)
Deferred Tax Liability
Timing difference in Depreciation (11,646.70) -
Total (11,646.70) (2,931.47)
Deferred Tax Asset
Carry Forward Business Loss & Depreciation 52,436.43 -
Total 52,436.43 13,198.25
Net Deferred Tax Asset as on 31.03.2024 10,266.78
Note No. 6. Non current Assets - Other Non Current Assets

Particulars As at 31.03.2024 As at 31.03.2023

Capital Advances (Secured Considered Good) 3,246.46 1,518.09
3,246.46 1,518.09
Note No. 7. Current Assets - Inventories
Particulars As at 31.03.2024 As at 31.03.2023
Raw Materials 15,822.86 14,215.61
Raw materials-in -transit 14,552.96 5,917.48
30,375.82 20,133.09
Work-in-progress 6,570.64 5,406.85
Finished Goods 65,812.40 64,527.36
Stock-in-trade (in respect of goods acquired for trading) 2,617.11 0.00

247
 Note Forming Part of Consolidated Financial Statements

` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Stores and Spares
Machinery Spares 10,798.41 10,248.81
General Stores 2,661.82 2,805.83
Stores & Spares-in -transit 281.93 232.57
13,742.16 13,287.21
Retired Spares 453.50 453.50
Total Inventories 1,19,571.63 1,03,808.01
Less: Provision towards obsolescence and storage losses 5,255.96 5,995.83
1,14,315.67 97,812.18

Notes
1. Current Assets include inventories and trade receivables pledged as Primary Security for Fund/ Non
Fund based Working Capital arrangement with Banks amounting to ` 118500.00 Lakh. The utilisation of
this arrangement as on reporting date is.` 7834.86 lakhs ( Previous year ` 5113.56 Lakh)
2. Inventory of finished goods, raw material, stores and spares and work in progress are valued as per the
Accounting Policy of the Company
3. Finished Goods includes 21.09 lakhs MT of saleable gypsum (bulk) (Previous Year 21.36 lakh MT)
amounting to `12343.50 lakh (Previous year ` 11973.30 lakh). For assessing the closing stock of
gypsum as on 31.03.2024, the saleable quantity has been assessed on the basis of physical verification
conducted at the end of the financial year.
4. Stores & Spares in transit includes Stores & Spares at site pending inspection ` 281.93 lakh (Previous
year ` 214.61 lakh )
5. During the year 2021-22, company had detected irregularities in the physical stock to the tune of 543.60
MT of Factamfos and 60.50 MT in Ammonium Sulphate at Chikmagalur Depot valued at ` 218.50
lakhs. Company had provided for the entire amount of ` 218.50 lakhs. The Company has since realised
an aggregate amount of ` 63.85 lakhs being the sale value of 256.95 MT of Factamfos from various
dealers during the year 2022-23 in connection with the above. However, the company has maintained
the provision of ` 218.50 lakhs pending completion of investigation. Company has taken steps for
recovery from transporters, dealers and warehouse (Refer Note. 13.3, 24.1, 25.2, 27.1 )
6. 90% provision has been made for non-moving stock of stores & spares, ageing five years and more, as
on 31.03.2024.
Movement in Provisions
Provision towards obsolescence and storage losses (including provision towards Retired spares )
` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Provision at the beginning of the year 5,995.83 3,601.29
Provisions made during the year 0.00 2,394.54
Released during the year -739.86 0.00
Provision at the end of the year 5,255.96 5,995.83

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Annual Report 2023 - 24

Note No. 8. Current Assets - Financial assets-Trade Receivables ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

From related party
Unsecured
Credit impaired 297.72 297.72
Less: Provision for Doubtful Debts (297.72) (297.72)
0.00 0.00
Others
Unsecured
Credit impaired 1,647.71 1,672.17
Less: Provision for Doubtful Debts (1,647.71) (1,672.17)
0.00 0.00
Sundry Debtors
Secured , considered good 7,063.09 6,991.81
Unsecured , considered good 2,000.60 635.74
9,063.69 7,627.55
Subsidy Receivable
Unsecured
Considered doubtful 18,663.04 411.33
Unsecured Considered good 6,750.04 40,259.93
Less: Provision for Doubtful subsidy (18,663.04) (411.33)
6,750.04 40,259.93
15,813.73 47,887.48
Movement in Provisions
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 2,381.23 2,365.32
Provisions released during the year (84.44) (49.71)
Provisions made during the year 18,311.68 65.62
Provision at the end of the year 20,608.47 2,381.23

Note No. 9. Current Assets - Financial assets-Cash and Cash Equivalents

Particulars As at 31.03.2024 As at 31.03.2023
Balances with Banks 2,305.85 22.09
Cash on hand 2.27 2.66
Short Term Deposit with Banks* (i) 41,223.02 4,933.08
Interest accrued on (i) above 35.69 11.32
43,566.83 4,969.15
*Original maturity of three months or less
Cash and Cash Equivalents include ` 1024.34 lakh (Previous year ` 538.89 lakh ) received towards work
on Deposit basis, lying in a specified account to meet the corresponding liabilities.

249
 Note Forming Part of Consolidated Financial Statements

Note No. 10 Current Assets - Financial assets-Other Bank Balances ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Short Term Deposit with Banks * 0.00 0.00
Balance in Unpaid Dividend account 10.01 0.00
Amount pledged for Letter of Credit, Bank Guarantee and
Fund based arrangements * (i) 67,456.66 77,713.73
Deposit earmarked for capex projects * (ii) 147,989.41 1,49,275.57
Interest accrued on (i)and (ii) above 8,909.38 6,825.95
2,24,365.46 2,33,815.25

* Maturing within 12 months from the reporting date

1. Out of the deposits earmarked for capex projects, lien has been marked on deposits amounting to `
36055.21 lakhs (Previous Year- ` 29756.07 ) lakhs for availing Fund Based and Non-Fund Based facilities.
Note No. 11. Current Assets - Financial Assets-Other Financial Assets
Particulars As at 31.03.2024 As at 31.03.2023
Security Deposits:
Unsecured , considered good 4.80 37.91
Amount receivable against Service Orders 767.48 612.12
Other Accrued Income 23,510.40 10,419.49
Amount receivable from LIC under group Gratuity scheme 90.38 652.31
Township Dues (Net of provision for doubtful dues) 147.85 104.28
Foreign Currency Asset (Net) 102.41 0.00
Others 24.51 13.45
24,647.83 11,839.56

1. Other Accrued income includes ` 23444.32 lakh being 90% of the unclaimed DBT subsidy (accounted
on recoverability basis).
Note No. 12. Current Assets - Current Tax Assets

Particulars As at 31.03.2024 As at 31.03.2023

Income Tax (Net of provision) 160.54 182.85
160.54 182.85

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Annual Report 2023 - 24

Note No. 13. Current Assets -Other Current assets

Particulars As at 31.03.2024 As at 31.03.2023
Dues from:
Statutory Authorities 50,373.28 47,474.54
Less: Provision for doubtful receivables (34,303.01) (27,418.54)
16,070.27 20,056.00
Contractors 4,121.23 4,277.74
Employees 239.00 400.84
Pre Paid Expenses 672.08 651.95
Others 821.90 31.25
21,924.48 25,417.78

1. Dues from statutory authorities include (i) ` 64.83 lakhs (Previous year ` 1409.11 lakhs ) (net of
provision) being KVAT refund receivables, and (ii) ` 72.97 lakh (Previous Year `72.97 lakh) towards
the amount paid against disputed demands pending appeal. In view of the uncertainty in the
reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the
Government of Kerala, Company had made provision for the VAT receivables on RLNG upto
31.03.2022 amounting to ` 18301.45 lakhs under the head "Provision for doubtful receivables." The
Provision for doubtful receivables also includes the VAT incurred on RLNG procurement during the
year 2023-24,` 6884.46 lakhs ( Previous year ` 9117.09 lakhs ) which has been accounted as
consumption of raw material / fuel in the Statement of Profit & loss.
2. Dues from Contractors include amount paid for materials supplied but rejected by the Company
pending settlement ` 15.21 lakh (Previous year ` 9.46 lakh ) and an amount of `1353.19 lakh (Previous
year `1353.19 lakh) including interest considered as recoverable on the basis of a bank guarantee
invoked by the Company but stayed till the completion of arbitration. The Arbitration Award was
passed during the year 2013-14, as per which the company is entitled to adjust an amount of
`2798.29 lakh towards this advance and interest from the dues claimed by the contractor. The
Company has gone on appeal against the award before the Hon' District Court, Ernakulam which has
since stayed the award. The case is transferred to Commercial Court. Accordingly the Company
demanded the banks to send the proceeds of encashment of bank guarantee along with interest. The
bank rejected the claim and consequently the Company filed a suit against the bank before the Hon.
High court of Mumbai for realization of amount, which are pending. However an amount of `1353.19
lakh only has been retained pending disposal of the case.
3. Other Current Assets, dues from contractors include ` 476.89 lakhs (previous year ` 476.89 lakhs)
charged to transport contractor as per the terms and conditions of the contract, towards non delivery
of goods to dealers at the assigned destinations. (Refer Note- 7.5, 24.1 & 25.2)
4. Other Current Assets include CSR expenditure of ` 789.24 lakhs pertaining to financial year 2023-24
spent over and above the minimum as stipulated in The Companies Act,2013.
Note No. 14. Current Assets -Non-current Assets held for Disposal
Particulars As at 31.03.2024 As at 31.03.2023
Retired assets held for disposal 4,065.02 4,065.02
4,065.02 4,065.02

Retired assets held for disposal' includes Ammonia and Urea Plant at Cochin Division, which the
Company had decided to scrap during the year 2009-10. These retired assets are retained in books at the
written down value of ` 4065.02 lakhs (previous year- ` 4065.02 lakhs), which is lower than the estimated
Net realisable value. The Company could not complete the disposal process since the matter had been
pending before the Court.

251
 Note Forming Part of Consolidated Financial Statements

Note No. 15. Equity- Equity Share Capital ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023
Authorised:
100,00,00,000 (Previous year 100,00,00,000)
Equity Shares of ₹10/-each 100,000.00 100,000.00
Issued, Subscribed and fully Paid up:
64,70,71,974 (Previous year 64,70,71,974)
Equity Shares of ₹10/- each fully paid up 64,707.20 64,707.20

Reconciliation of the shares outstanding at the beginning and at the end of the Financial Year

Particulars As at 31.03.2024 As at 31.03.2023

Number of shares at the beginning of the year 647,071,974 647,071,974
Number of shares issued during the year Nil Nil
Number of shares at the end of the year 647,071,974 647,071,974

Notes
The Company has only one class of equity shares having par value of ` 10 per share. Each share holder is
entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholding
1. Rights, Preference and restrictions attached to each class of shares including restrictions on the
distribution of dividends and the repayment of capital. - Nil / Not Applicable
2. Shares held by shareholders holding more than 5% of shares:

Particulars As at 31.03.2024 As at 31.03.2023

The Government of India
Number of shares 582,364,776 582,364,776
Percentage of Total Shares 90.00% 90.00%
Special National Investment Fund constituted by the
Government of India
Number of shares 55,400,424 55,400,424
Percentage of Total Shares 8.56% 8.56%
3. The Government of India had transferred 55400424 equity shares of ₹10 each to Special National
Investment Fund on 6th August 2013.
4. Shares reserved for issue under options and contracts / commitments for the sale of shares /
disinvestment.
I. Aggregate number and class of shares allotted as fully paid up
pursuant to contract(s) without payment being received in cash Nil Nil
II. Aggregate number and class of shares allotted as fully paid
up by way of Bonus shares Nil Nil
III. Aggregate number and class of shares bought back Nil Nil

252
Annual Report 2023 - 24

5. Terms of any securities convertible into equity / preferential shares issued along with the earliest
date of conversion - NIL
6. Shares held by promoters at the end of the year

Promoter name No. of Shares %of total shares % Change during

(Equity shares) the year
Government of India 582364776 90.00% NIL
Total 582364776 90.00% NIL
Note No. 16. Equity - Other Equity
` In Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Capital Reserves:
Subsidy from Kerala State Government under Industrial Housing Scheme 2.64 2.64
2.64 2.64
Other Reserves:
Deferred Government Grant :
Indo EEC Fertiliser Education Project
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 50.78 51.72
Less: Amount transferred to Statement of Profit & Loss 0.93 0.94
Closing balance 49.85 50.78
Equity Instruments through other Comprehensive Income
Particulars As at 31.03.2024 As at 31.03.2023
Opening Balance 10,919.67 9,421.90
Additions/(Deletions) during the Year 1,750.71 1,497.77
Closing Balance 12,670.38 10,919.67
Retained Earnings:
Particulars As at 31.03.2024 As at 31.03.2023
Opening balance 51,694.08 (7,980.82)
Add Changes in Accounting Policy / Prior Period items as per Ind AS 0.00 0.00
Add :Profit/ (Loss) during the year 14,616.91 61,283.21
Add: Remeasurement of defined benefit plan 303.58 (1,608.31)
Less: Dividend Paid 6,470.72 -
Closing balance 60,143.85 51,694.08
Other equity 72,866.72 62,667.17

1. As a part of the sales consideration of 481.79 acres of Land sold to Government of Kerala during the
year 2019-20, ` 47956 lakhs being fair value of the 143.22 acres of lease hold land converted as freehold,
was restated in the opening balance of PPE and Other Equity as on 01.04.2021 during the previous
financial year 2022-23, in line with the provisions of IndAS 8. (Refer Note 2.3)
2. For the Financial Year 2023-24, the Board of Directors have recommended a final dividend of ` 0.97 per
equity share (Previous Year ` 1.00 per equity share) which is subject to approval by shareholders of the
Company.
253
 Note Forming Part of Consolidated Financial Statements

Note No. 17 Non Current Liabilities - Financial Liabilities - Borrowings ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Term loans
Secured
From the Government of India (Refer Note 22.2 ) 0.00 0.00
Unsecured
Inter-corporate loan from M/s.Rashtriya Chemicals & Fertilisers Ltd
(Refer Note 1 below) 0.00 510.00
0.00 510.00

1. The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee
to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company
and RCF. During the year 2018-19, RCF has settled the entire liability to the bankers, to the extent of
`5100 lakh including 50% share of the Company `2550 lakh on the condition that the Company shall treat
the amount paid by RCF on behalf of the Company as Inter-Corporate loan with a repayment period of five
years, starting from the year 2020-21. The Company has paid four instalments due as per the agreement.
The remaining principal amount payable ` 510 Lakhs during the year has been classified under Current
Liabilities - Financial Liabilities -Other Financial Liabilities . Interest rate applicable on the loan for the year
2023-24 is 7.82% p.a (Previous year- 7.38% p.a).

Note No. 18. Non Current Liabilities - Lease Liabilities

Particulars As at 31.03.2024 As at 31.03.2023
Lease Liabilities (Refer Note-40) 3,162.60 2,985.82
3,162.60 2,985.82

Note No. 19. Non Current Liabilities - Other Financial Liabilities

Particulars As at 31.03.2024 As at 31.03.2023
Security Deposit towards Rent 29.36 30.74
29.36 30.74

Note No. 20 Non Current Liabilities - Provisions

Particulars As at 31.03.2024 As at 31.03.2023
Provision for employee benefits
(i) Provision for gratuity 8,174.09 10,045.13
(ii) Provision for leave encashment 7,733.18 8,680.28
Decommissioning of Assets in Leased Properties 309.76 278.12
16,217.03 19,003.53

254
Annual Report 2023 - 24

` In Lakh
Note No. 21 Non Current Liabilities - Other Non current Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Advance Rent Received 974.80 1,128.96
974.80 1,128.96

As at the beginning of the year 1,311.04 1,308.72

Advance received 38.80 170.16
Released to Statement of Profit and Loss (193.28) (167.84)

As at the end of the year 1,156.56 1,311.04

Current 181.76 182.08
Non Current 974.80 1,128.96
1,156.56 1,311.04

Note No. 22 Current Liabilities - Financial Liabilities -Borrowings

Particulars As at 31.03.2024 As at 31.03.2023
Secured :
Bills discounted 0.00 2,839.82
Current maturities of Long-term debt :
Term loan from Government of India
(Refer Note 2 below) 128,273.00 128,273.00
Interest on the above converted as loan 48,775.75 48,775.75
177,048.75 177,048.75
Unsecured:
Inter-corporate loan from M/s.Rashtriya Chemicals &
Fertilisers Ltd (Refer Note 17.1) 510.00 510.00
177,558.75 180,398.57

1. The bills discounted are secured against the corresponding trade receivables
2. A plan loan of `.100000.00 lakh bearing interest @13.50% per annum was released by the Government
of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of
Government of India, `100000.00 lakh along with the earlier loan ` 28273 lakhs and interest outstanding
has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium.
As per the letter dated 12.01.2016, of the Ministry of Finance, GOI, sanctioning the loan, the total
outstanding liability of the Company is `183672.00 lakh. The Company entered into an agreement with
the Department of Fertilizers(DOF), GOI, agreeing to mortgage 408 acres of Company’s land to secure
repayment of the entire loan together with interest at the rate of 13.50% per annum on the amount
outstanding as on 31.03.2017. The loan amount was reconciled and loan outstanding along with interest
accumulated (upto 31.03.2017) has been arrived at `177048.75 lakh as on 31.03.2017. The loan along
with interest is repayable in three or more equated instalments within a period of 5 years ending by
2022. Accordingly, the entire principal amount, being ` 177048.75 lakhs (previous year- ` 177048.75
lakhs) has been classified under Current Liabilities-Current maturities of Long term Debt. The
outstanding principal and interest as on 31.03.2023 has been confirmed with the balance of
Government of India.

255
 Note Forming Part of Consolidated Financial Statements

Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF),

Government of India (GoI), seeking approval for the waiver of interest on Government of India loan,
conversion of loan amounting to `28273.00 lakhs into equity and conversion of loan amounting to
`100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring
proposal submitted by the Company is under the consideration of the Department of Fertilizers,
Government of India. Pending approval by the Government of India, the loan taken from GoI and interest
due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016.

Note No. 23 Current Liabilities - Lease Liabilities ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Lease Liabilities (Refer Note-40) 301.03 276.68
301.03 276.68

Note No. 24. Current Liabilities - Financial Liabilities - Trade Payables

Particulars As at 31.03.2024 As at 31.03.2023
Trade payables
(i) Dues to Micro, Small and Medium Enterprises (Refer Note: 38) 1025.21 429.50
(ii ) Others 47,359.79 37,372.87
48,385.00 37,802.37

1. Trade payables, others include ` 290.02 Lakhs ( previous year ` 290.02 Lakhs )withheld from transport
contractor as per the terms and conditions of the contract, towards non delivery of goods to dealers at
the assigned destinations and ` 146 lakhs ( previous year ` 146 Lakhs ) withheld from warehouse. (Also
Refer Note 7.5, 13.3, 25.2)

Note No. 25. Current Liabilities - Financial Liabilities -Other Financial Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Interest accrued on borrowings (Refer Note 22.2 & 17.1)
Term Loan from Government of India 167,311.07 143,409.49
Inter-corporate Loan 25.47 41.86
Dues to employees 1,196.66 5,669.39
Trade Deposit from customers 5,276.91 4,321.43
Other liabilities 14,208.08 11,308.03
188,018.19 164,750.20

1. As per the decision of Government of India, during the year 2021-22, Company has framed a scheme for
disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased
manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include
`1030.96 lakhs (previous year- `5036.14 lakhs) towards 1997 arrears, payable with in one year.
2. Other liabilities include amount charged from transport contractors as per the terms and conditions of
the contract, towards non delivery of goods to dealers at the assigned destinations and amount withheld
from warehouse.(Also Refer Note 7.5, 13.3 & 24.1)

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Annual Report 2023 - 24

` In Lakh
Note No. 26. Current Liabilities - Other Current Liabilities
Particulars As at 31.03.2024 As at 31.03.2023
Statutory dues 938.17 1,168.16
Advance from Customers 5,720.66 4,399.31
Advance Rent Received 181.76 182.08
6,840.59 5,749.55

Note No. 27. Current Liabilities - Provisions

Particulars As at 31.03.2024 As at 31.03.2023
Provision for employee benefits
(i) Provision for gratuity 1,113.98 2,039.97
(ii) Provision for leave encashment 888.42 891.68
Provision towards other Contractual Obligations 239.60 239.60
Other provisions 211.62 246.64
2,453.62 3,417.89

1. Other provisions include ` 211.62 lakhs (previous year ` 211.62 lakhs) (aggregate provision ` 218.50
lakhs net of GST ` 6.88 lakhs) provided towards shortage of finished goods noticed in certain
warehouses in Karnataka State (Refer Note 7.5)

257
 Trade Receivables Ageing Schedule ` In Lakh

Particulars Not Due as on As at

Outstanding for following periods from due date of payment
31.03.2024 31.03.2024

Less than 6 months - 1-2 years 2-3 years More than Total
6 months 1 year 3 years
(i) Undisputed Trade 6,016.08 2,587.65 3,239.36 3,918.62 49.50 1.45 15,812.66
receivables –
considered good
(ii) Undisputed Trade
Receivables – which - - - - - - -
have significant
increase in credit risk
(iii) Undisputed Trade - 16,721.67 1,533.85 5.90 0.00 1,710.50 19,971.92
Receivables – credit

258
impaired
(iv) Disputed Trade - - - - - 1.07 1.07
Receivables –
considered good
(v) Disputed Trade - - - - - - -
Receivables – which
have significant
Note Forming Part of Consolidated Financial Statements

increase in credit risk

(vi) Disputed Trade - - - - - 636.55 636.55
Receivables – credit
impaired
TOTAL 6,016.08 19,309.32 4,773.21 3,924.52 49.50 2,349.57 36,422.20
 Trade Receivables Ageing Schedule ` In Lakh

Particulars Not Due as on As at

Outstanding for following periods from due date of payment
31.03.2023 31.03.2023
Annual Report 2023 - 24

Less than 6 months - 1-2 years 2-3 years More than Total
6 months 1 year 3 years
(i) Undisputed Trade 13232.58 33,211.67 1,326.35 60.28 55.50 0.05 47,886.43
receivables –
considered good
(ii) Undisputed Trade - - - - - - -
Receivables –which
have significant
increase in credit risk
(iii) Undisputed Trade - 3.38 0.99 95.05 52.63 1,566.49 1,718.54

259
Receivables –credit
impaired
(iv) Disputed Trade - - - - - 1.05 1.05
Receivables–
considered good
(v) Disputed Trade - - - - - - -
Receivables – which
have significant
increase in credit risk
(vi) Disputed Trade - - - - - 662.68 662.68
Receivables – credit
impaired
TOTAL 13,232.58 33,215.05 1,327.34 155.33 108.13 2,230.27 50,268.70
 Note Forming Part of Consolidated Financial Statements

` In Lakh
Note No. 28 Revenue from operations
Particulars Year ended 31.03.2024 Year ended31.03.2023
Sale of products
Own Products 268,412.03 313,949.27
Traded Products 24,869.54 1,056.97
293,281.57 315,006.24
Subsidy/Concession on Fertilisers 211,221.46 304,261.07
211,221.46 304,261.07
Sale of Services
Gross income from contracts and other services 989.58 547.42
Total Revenue from operations 505,492.61 619,814.73
Sale of own products comprises of:
Factamfos 20-20-0-13 173,043.13 190,131.63
Ammonium Sulphate 37,859.34 41,043.90
Caprolactam 50,746.82 69,641.71
Gypsum 2,791.79 3,176.52
Others 3,970.95 9,955.51
Total 268,412.03 313,949.27
Sale of traded products:
NPK 15:15:15 17,020.37 -
Muriate of Potash 7169.49 -
Organic Manures 631.61 1056.97
Nano Urea & DAP 37.89 -
PDM 7.20 -
PROM 2.98 -
Total 24,869.54 1,056.97
Subsidy/Concession on Fertilisers
Factamfos 20-20-0-13 165,493.94 256,446.53
Ammonium Sulphate 30,989.74 47,813.52
Muriate of Potash 709.71 0.67
Imported Complex Fertilisers 14,028.07 0.35
City Compost - -
Others - -
Total 211,221.46 304,261.07

1. Consequent to the implementation of Direct Benefit Transfer (DBT) subsidy scheme, subsidy income on
fertilisers is recognised at the time of sale to dealers. However, the subsidy claim is generated at the rate
applicable on the date of sale of fertilisers to ultimate beneficiary. The subsidy portion of the stock with
dealers pending sale to ultimate beneficiary as on 31.03.2024 is ` 23444.32 lakhs. For the financial year
2022-23, the subsidy portion of the 90% of the stock with dealers pending sale to ultimate beneficiary
was estimated at 50% of the subsidy rates prevailing as on 31.03.2023 pending notification of subsidy
rates (`10278.27 lakh).

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Annual Report 2023 - 24

` In Lakh
Note No. 29 Other income
Particulars Year ended Year ended
31.03.2024 31.03.2023
Interest income:
On deposits with banks 18,803.72 11,150.32
On loans, advances, claims, overdues 113.29 76.39
Dividend income
Other than joint venture 45.36 38.88
Other non-operating income
Excess provisions written back 84.44 54.05
Transfer from deferred Government grants:
On EEC project 0.94 0.94
Rent & Compensation towards Right of use 424.72 617.59
Profit on sale of fixed Assets 242.81 838.28
Miscellaneous income 596.34 781.23
20,311.62 13,557.68

Note No. 30.Cost of materials consumed

Particulars Year ended 31.03.2024 Year ended 31.03.2023
Raw Material 294,842.36 412,999.93
Packing Material 4,502.35 4,898.45
299,344.71 417,898.38

Note : The physical verification of raw materials has been carried out on or around 31st March 2024. The
differences over book figures in the case of raw material for the financial year 2023-24 has been adjusted in
consumption ( Excess(-) / Shortage). Current year ` (-) 760.62 lakh (Previous year ` (-) 2419.53 lakh ).
Note No. 31 Purchases of Stock-in-trade
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Complex Fertilisers/ Organic Manures/
Muriate of Potash etc. 36,389.76 503.70
36,389.76 503.70

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 Note Forming Part of Consolidated Financial Statements

` In Lakh
Note No. 32 .Changes in inventories of finished goods , stock-in-trade and work-in-progress
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Opening stock
Finished Goods 64,527.36 20,846.25
Stock-in-trade 0.00 0.00
Work-in progress 5,406.85 4,193.33
69,934.21 25,039.58
Closing stock
Finished Goods 65,812.40 64,527.36
Stock-in-trade 2,617.11 0.00
Work-in- progress 6,570.64 5,406.85
75,000.15 69,934.21
Changes in inventories: (Increase)/ Decrease (5,065.94) (44,894.63)

Note No. 33 Employee benefits expense

Particulars Year ended 31.03.2024 Year ended 31.03.2023
Salaries and Wages 21,122.23 21,335.30
Contribution to Provident Fund 1,888.86 1,908.42
Leave encashment (Net of Provision) 2,103.67 2,299.20
Gratuity 1,151.99 1,303.15
Staff welfare expenses 2,127.24 1,972.46
28,393.99 28,818.53

1. During the year ,Ministry has approved the proposal for enhancement of the age of retirement of
below board level employees to 60 from 58.
2. During the year 2022-23 Company had implemented 2017 pay revision of the Board level and below
Board level executives and Non-unionized supervisors and of the workmen, with effect from
01.04.2022, as per the Department of Fertilizers order dated 14.12.2022 and 23.12.2022
respectively.
Note : Remuneration to Directors, including retirement benefits paid during the year

Particulars Year ended 31.03.2024 Year ended 31.03.2023

Shri Kishor Rungta, Chairman and Managing Director
(From 02.02.2019 till 01.02.2024) 53.80 49.80
Shri.Anupam Misra, Director (Marketing)
(from 14.07.2020) 44.58 40.64
Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer
(From 08.03.2021) 48.96 42.43
Shri.Kesavan Nampoothiri A.S, Director (Technical)
(From 22.03.2021 up to 30.09.2022) - 21.93
Dr.Jayachandran.K, Director (Technical)
(From 03.03.2023) 51.96 3.12
199.30 157.92

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Note No. 34 Finance costs ` In Lakh

Particulars Year ended 31.03.2024 Year ended 31.03.2023

Interest
Interest on loans from the Government of India
(Refer Note 22.2) 23901.58 23901.58
Interest -others 503.93 577.02
Other Finance costs 23.92 21.89
Finance Cost on lease liability 263.34 253.84
24,692.77 24,754.33
Note No. 35 Other expenses
Particulars Year ended 31.03.2024 Year ended 31.03.2023
Consumption of stores and spare parts 5,172.83 4,778.82
Power and Fuel 60,549.24 75,153.17
Rent 937.89 445.53
Repairs and maintenance to buildings 478.52 274.67
Repairs and maintenance to machinery 5,462.30 4,121.96
Insurance 350.27 346.29
Rates and Taxes 144.50 110.15
(Gain)/Loss on exchange rate variation (net) (629.93) 2,620.96
Material and other direct charges on contracts 691.18 115.13
Auditors' Fees and Expenses ( Refer note 1 below) 18.71 20.82
Freight , Handling and other charges 28,430.34 24,655.81
Bad debts written off 0.00 15.04
Provision for doubtful receivables & advances 106.97 18,373.98
Damages/Shortages/(Excess) of Stores , Spares & Products (Net)
(Refer Note 4 below) 8.04 23.03
Provision for obsolescence of stores (Net) (739.86) 2,394.53
Research and Development Expenditure (Refer note 2 below) 57.63 35.67
CISF Expenses (including salaries) 3,403.75 3,313.39
Directors' Sitting Fees 6.00 5.00
Loss on Fixed assets sold/written off 1.96 0.00
Expenses towards Corporate Social Responsibility ( Refer note 6 below) 873.22 421.18
Miscellaneous Expenses ( Refer note 3 below) 6,414.82 5,998.97
111,738.38 143,224.10
Less :Allocated Expenses [net of income from inter-divisional jobs of
₹ 1862.30 lakh] (Previous year ₹ 2997.98 lakh) (1,255.75) (1,226.34)
110,482.63 141,997.76
Notes:
1. Payments to the auditor as
Particulars Year ended 31.03.2024 Year ended 31.03.2023
(a) Auditor 10.60 10.60
(b) for taxation matters 0.00 0.00
(c) for company law matters 0.00 0.00
(d) for management services 0.00 0.00
(e) for other services 6.85 7.60
(f) for reimbursement of expenses 0.25 0.35
Total 17.70 18.55

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 Note Forming Part of Consolidated Financial Statements

2. Research and Development Expenditure includes expenditure towards salary ` 49.38 lakh (Previous
year `35.39 lakh), chemicals & stores ` 3.43 lakh (Previous year ` 0.19 lakh) and depreciation ` 0.09
lakh (Previous year `0.09 lakh).
3. Miscellaneous Expenses includes Directors travel amounting to ` 20.70 lakh (Previous year ` 13.47 lakh)
4. Differences noticed ( Excess(-)/Shortage) on perpetual verification of stores and spares compared to
book records have been adjusted in the books of accounts, which for Current year is ` 8.04 lakh
(Previous year ` 7.68 lakh)
5. Provision for doubtful receivables & advances includes provision towards VAT reimbursement
receivable on the RLNG procurement up to 31.03.2022 .Current year Nil ( Previous Year ` 18301.45
lakh).From the financial year 2022-23, the VAT incurred on RLNG procurement is being accounted as
'consumption of Raw material / fuel' in the Statement of Profit & loss (Refer Note 13.1).
6. Expenses towards Corporate Social Responsibility
The Company is liable to spend during the financial year 2023-24, ` 873.22 lakhs (Previous Year- ` 471.39
lakhs), on Corporate social responsibility, being 2% of the average net profit for the immediately preceding
three financial years, as per section 198 of the Companies Act 2013. Company has spent an amount of `
1662.46 lakhs (Previous year-` 35.31 lakhs)towards Corporate Social Responsibility projects pertaining to
the financial year. The excess amount of ` 789.24 lakhs has been classified under 'Current Assets'.
` In Lakh
Particulars Year ended Year ended
31.03.2024 31.03.2023
(i) Shortfall/ (Excess) expenditure carried forward from previous year
(Inluding provision for ongoing projects) 385.87 -50.21
(ii) Amount required to be spent by the company during the year 873.22 471.39
(iii) Amount of CSR expenditure spent towards approved projects
of the year (On purposes other than
Construction/acquisition of any asset) 1662.46 35.31
(iv) Amount spent towards the Ongoing projects of the
previous years 88.78 NA
(v) Closing Provision towards Ongoing projects # 300.61 385.87
(vi) Shortfall /(Excess) at the end of the year * (792.77) -
(vii) details of related party transactions NA NA
# ` 300.61 lakhs remaining unspent as on 31.03.2024, earmarked for identified projects have been
maintained in a separate bank account
*Including ` 3.52 lakhs net excess spent on certain ongoing projects of the year 2022-23, as against the
allocated fund

(viii) Nature of CSR activities for the year :

Particulars 2023-24 2022-23

Rural development projects 1412.77 -
Promotion of Health care 216.79 9.78
Promoting education 25.79 -
Making available safe drinking water 6.77 8.29
Training to promote Paralympic sports - 7.00
Contribution to incubators or research and
development projects in the field of science - 9.50
Other CSR activities 0.34 0.74
Total 1662.46 35.31

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Note No. 36. Exceptional Items

Particulars Year ended 31.03.2024 Year ended31.03.2023
Recovery towards differential Subsidy
( Refer 1 below) (6,307.18) -
Provision towards recovery as per MRP
Reasonableness guidelines (Refer 2 below) (8,835.78) -
Provision for Recovery on account of Additional
Compensation for usage of Naphtha (Refer 3 below) (9,415.93) -
(24,558.89) -
1) The Government of India vide office memorandum No – 23011/1/2023- P&K dated 18th May 2023 has
revised the Nutrient Based Subsidy for P&K fertilizers applicable for the period 01.01.2023 to
31.03.2023. Department of Fertilizers has recovered ₹6307.18 lakh towards this downward revision of
subsidy for the quarter ended 31.03.2023 during the year 2023-24
2) In line with guidelines issued by the Department of Fertilizers vide office memorandum No –
23011/8/2018-MPR dated 15th November 2019 which restricts profit margin of the Fertilizer
companies to 12% of the cost of sales, company has made provision amounting to ₹ 8835.78 lakhs in
respect of the financial year 2022-23 during the current year
3) Department of Fertilisers vide office Memorandam No – 23011/8/2010-MPR dt 26th April 2024 has
directed recovery of₹ 9415.93 lakhs based on the Final rates recommended by the Tariff commission
towards Naphtha Compensation for the period 01.04.2010 to 04.10.2013. Provision towards the same
has been made during the current year.
Note No. 37. Earning per Share
Particulars Year ended31.03.2024 Year ended 31.03.2023
Profit / (Loss) after Tax 14,616.91 61,283.21
Number of Equity Shares 647071974 647071974
Face Value per Share (` ) 10.00 10.00
Basic/ Diluted earnings per Share (` ) 2.26 9.47

38. Disclosure required for Micro Small and Medium Enterprises ` In Lakh
Sl. No. Particulars As at 31.03.2024 As at 31.03.2023
1 Principal amount remaining unpaid ** 0.00 0.00
2 Interest due thereon 0.00 0.00
3 Interest paid by the Company in terms of Section
16 of Micro, Small and Medium Enterprises
Development Act,2006 ,along with the amount of the
payment made to the supplier beyond the appointed
day during the year. 0.00 0.00
4 Interest due and payable for the period of delay
making payment (which have been paid but beyond
the appointed day during the year) but without adding
the interest specified under Micro, Small and Medium
Enterprises Development Act, 2006. 0.00 0.00
5 Interest accrued and remaining unpaid 0.00 0.00
6 Further interest remaining due and payable even in
the succeeding years, until such date when the
interest dues as above are actually paid to the
small enterprise for the purpose of disallowance as
a deductible expenditure under Section 23 of the Micro,
Small and Medium Enterprises Development Act, 2006. 0.00 0.00
** Amount due and unpaid as at the year end
265
 Note Forming Part of Consolidated Financial Statements

39. Trade Payables Ageing schedule

` In Lakh
Particulars Not Due as on Outstanding for following periods from As at
31.03.2024 due date of payment 31.03.2024

Less than 1-2 years 2-3 years More than Total

1 year 3 years
(i) MSME 1025.21 0.00 0.00 0.00 0.00 1025.21
(ii) Others 46,030.58 0.00 0.00 0.00 0.00 46030.58
(iii) Disputed dues –|
MSME 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Disputed dues -
Others 0.00 18.38 3.48 470.63 836.71 1329.20
Total 47055.79 18.38 3.48 470.63 836.71 48,385.00

Particulars Not Due as on Outstanding for following periods from As at

31.03.2023 due date of payment 31.03.2023

Less than 1-2 years 2-3 years More than Total

1 year 3 years
(i) MSME 429.50 0.00 0.00 0.00 0.00 429.50
(ii) Others 36,065.54 0.00 0.00 0.00 0.00 36,065.54
(iii) Disputed dues –
MSME 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Disputed dues -
Others 0.00 0.00 470.63 68.37 768.33 1307.33
Total 36,495.04 0.00 470.63 68.37 768.33 37,802.37

40. Fair Value Hierarchy

The management has assessed that its financial assets and liabilities like cash and cash equivalents, trade
receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
The following methods and assumptions were used to estimate the fair values for the given below financial
assets.
Investment in Unquoted Equity Shares
The fair values of the unquoted equity shares have been estimated using NAV model.
Derivatives not designated as hedges
Foreign exchange forward contracts if entered in to, are valued using valuation techniques, which employs
the use of market observable inputs (i.e. based on inputs/statement of position received from banks).
Investment Properties
The value of the investment properties are based on the information available in Government of Kerala fair
value notification, market conditions etc.

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Annual Report 2023 - 24

` in Lakh
31.03.2024 31.03.2023
Significant observable inputs Significant observable inputs
Particulars
Level 2 Level 3 Level 2 Level 3
Financial Assets
Investment in Unquoted
Equity Shares of:
Indian Potash Limited 12,271.69 10,576.59
Travancore Cochin Chemicals Ltd 231.27 245.74
Capexil Agencies Ltd. 0.15 0.15
Kerala Enviro Infrastructure Limited 532.95 462.88
Foreign Currency Asset on Forward
exchange contract ( Net) 102. 41 -
Financial Liabilities
Amount Payable under forward
exchange contracts (Net) - -
Assets for which Fair values are
disclosed
Investment Properties 3,487.69 2,906.41
Level 1 hierarchy is for financial instruments with quoted prices. This includes listed equity instruments,
traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges are to be valued using the closing price as at the reporting
period. The mutual funds are to be valued using the closing NAV. Company do not have any such
investment, as on the reporting date of current year and previous year.
The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the-counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in
Level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset
included in Level 3.
Operating Leases
A. Leases as lessor
The Company leases out its investment property on operating lease basis
i) Future minimum lease receivable
At 31 March, the future minimum lease receivables under non-cancellable leases are receivable as follows
` in Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Within one year 124.69 124.86
Between two and five years 448.93 498.93
More than five years 707.50 782.19
ii) Amounts recognized in profit and loss (` In Lakh)
Particulars As at 31.03.2024 As at 31.03.2023
Lease Rent 124.75 124.69
124.75 124.69

267
 Note Forming Part of Consolidated Financial Statements

B. Leases as lessee
The Lease Liability is measured at the present value of remaining lease payments at the date of initial
application and Right-of-use asset has been recognized at an amount equal to Lease Liability adjusted by an
amount of any prepaid expenses. . Under Ind AS 116 “Leases”, at commencement of lease, the Company
recognizes Right-of-use asset and corresponding Lease Liability, at State Bank of India 1 year MCLR. Right-
of-use asset is depreciated over lease term on systematic basis and Interest on Lease Liability is charged to
Statement of Profit and Loss as Finance cost.
Recognition of right of use Asset and corresponding lease liability, as per IndAS 116, has been made in
respect of the property taken for lease (Operating lease) for the purpose of storage and handling of Raw
Materials, at Willington Island and for Guest House facility at New Delhi
a) The following is the detailed breakup of Right-of-use assets (by class of underlying assets) disclosed in
Note No. 2C ` in Lakh
Particulars Gross Block Depreciation Net
Carrying
amount
As at Lease Disposal/ Remeasurement As at As at For the On Disposal/ Up to As at
01-04-2023 Additions Deductions of Lease 31-3-2024 01-04-2023 year Deductions 31-3-2024 31-3-2024
during during the during during the
the year year the year year

Land 3,589.47 147.78 105.67 3,842.92 436.95 157.32 0.00 594.26 3,248.66
Building 16.17 16.12 -16.17 0.00 16.12 8.82 16.87 -16.17 9.52 6.59
Total 3,605.64 163.90 (16.17) 105.67 3,859.04 445.77 174.19 (16.17) 603.79 3,255.25

b) The following expenses have been charged to Statement of Profit and Loss during FY 2023-24

Particulars ` in Lakh
Interest on Lease Liabilities 263.34
Expenses relating to short term leases 29.78
Expenses relating to leases of low value items 30.30
Expenses relating to variable lease payments
(not included in measurement of lease liabilities) 877.82

c) Total Cash outflow for leases during FY 2023-24 is ` 315.31 Lakhs

d) Income from Sub leasing of Right-of-use assets recognized in Statement of Profit and Loss during FY
2023-24 is Nil
e) Maturity Analysis of Lease Liabilities as per Ind AS 116 Leases

Particulars Contractual cash flows in ` Lakh

Up to 1 year 1-3 years 3-5 Years More than 5 years Total

Cash outflows 316.96 631.49 649.36 5,518.64 7116.45

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` in Lakh
41 . Financial Instrument Classification
Particulars As at 31.03.2024 As at 31.03.2023
Financial Assets
Financial Assets at Amortised Cost
Trade Receivables 15,813.73 47,887.48
Cash and Cash equivalents 43,566.83 4,969.15
Other Bank Balances 224,365.46 233,815.25
Other Financial Assets 25,732.47 24,636.99
309,478.49 311,308.87
Financial Assets at Fair Value through
Other Comprehensive Income:
Equity Investments 13,036.93 11,286.23
Financial Assets at Fair Value through
Profit and Loss Statement:
Foreign Currency Asset on Forward exchange contract ( Net) 102.41 -
13,139.34 11,286.23
Financial Liabilities
Financial Liability at Amortised Cost
Borrowings 177,558.75 180,908.57
Trade Payables 48,385.00 37,802.37
Other Financial Liabilities 188,047.55 164,780.94
413,991.30 383,491.88
Financial Liabilities at Fair Value through
Profit and Loss Statement:
Liability on Forward Exchange contract (Net) 0.00 0.00
0.00 0.00

42. Financial Risk Management

The company’s activities are exposed to market risk, liquidity risk and credit risk.
This note explains the sources of risk which the Company is exposed to and how the Company manages the
risk in the financial statements
Risk Exposure arising from Measurement Management
Credit risk Cash and cash equivalents, Ageing analysis, Diversification of bank
trade receivables, financial Credit Analysis, deposits, credit limits and
assets measured at Post Dated Cheques Bank Guarantees,Post Dated
amortized cost. and Security Deposit Cheques and Security Deposit.

Liquidity risk Borrowings and other Rolling cash flow Availability of committed credit
liabilities forecasts lines and borrowing facilities

Market risk – Recognised financial assets Monitoring of Foreign Forward Foreign

foreign exchange and liabilities not denominated Currency rates exchange contracts based
in Indian rupee (INR) on market trends

269
 Note Forming Part of Consolidated Financial Statements

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's trade and other
receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in
case of all the financial instruments covered below is restricted to their respective carrying amount.
(i) Trade and other receivables
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit
limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of
business.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting
to ` 15813.73 lakh (Previous year ` 47887.48 lakh) of which ` 6750.04 lakh (previous year ` 40259.93 lakh)
due from Government of India relating to subsidy receivable. Trade receivables mainly constitute subsidy
receivable from the Government of India and receivable from sale of petrochemical products
Expected credit loss assessment for Trade and other receivables
The Company has been consistently following a policy of creating 100% provision for the unsecured portion
of the trade receivables that are more than three years old, except subsidy receivables from Government of
India, wherein allowance for loss is made after analysis of possibility of realisation.
The following table provides information about the exposure to credit risk and the provisions made
` In lakh
As at 31/03/2024 Total receivables Provision for doubtful receivables
Trade Receivables 11,009.12 (1,945.43)
Subsidy Receivable 25,413.08 (18,663.04)
Total 36,422.20 (20,608.47)
` In lakh
As at 31/03/2023 Total receivables Provision for doubtful receivables
Trade Receivables 9,597.44 (1,969.89)
Subsidy Receivable 40,671.26 (411.33)
Total 50,268.70 (2,381.22)

The movement in the loss allowance in respect of trade and other receivables during the year was as
follows:- ` In lakh
Particulars As at 31.03.2024 As at 31.03.2023
Provision at the beginning of the year 2,381.23 2,365.32
Provisions released during the year (84.44) (49.71)
Provisions made during the year 18,311.68 65.62
Provision at the end of the year 20,608.47 2,381.23

(ii) Cash and Cash equivalents and Other Bank Balances

The Company held cash and cash equivalents and other bank balances of ` 267932.29 lakhs at 31st March
2024 (31st March 2023: ` 238784.40 lakhs). The Cash equivalents are held with banks with good credit
ratings and financial position. Also, the Company invests its short term surplus funds in bank fixed deposits,
which carry no / low market risks for short duration and therefore does not expose the Company to credit
risk.

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(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management. Prudent liquidity risk
management implies maintaining sufficient cash and the availability of funding through an adequate amount
of credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses,
treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company’s liquidity position and cash and cash equivalents
on the basis of expected cash flows.
The following are the remaining contractual maturities of significant financial liabilities at the reporting date.
Maturity Analysis of Significant Financial Liabilities As on 31/03/2024
Contractual Cash Flows (` In Lakh)
Total Up to 1 year 1-5 years
Government of India Loan
(Refer note 1 below) 368,261.40 368,261.40 0.00
Intercorporate Loan 565.38 565.38 0.00

As on 31/03/2023
Contractual Cash Flows (` In Lakh)
Total Up to 1 year 1-5 years
Government of India Loan
(Refer note 1 below) 344,359.82 344,359.82 0.00
Intercorporate Loan 1,149.68 589.50 560.18
1. The loan from Government of India along with interest is repayable in three or more equated installments
within a period of 5 years ending by 2022.Company has submitted a Financial Restructuring proposal to
Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on
Government of India loan, conversion of loan amounting to ` 28273.00 lakhs into equity and conversion of
loan amounting to `100000.00 lakhs as interest free loan, repayable in yearly installments. The financial
restructuring proposal submitted by the Company is under the consideration of the Department of
Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and
interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016 . The
management expects restructuring of the loan, whereby the Government shall grant sufficient time for the
repayment of the loan and interest due thereon. Accordingly, the Company can manage the immediate
liquidity requirement.
Financing arrangements(` In Lakh)
The Company has sufficient funds for its business/operational activities. The following is the undrawn fund
based borrowing facilities at the end of the reporting period:

Particulars As at 31.03.2024 As at 31.03.2023

Expiring within one year (Bank Overdraft/ CC Limit) 29,800.00 17,463.00
LC Bill discounting limit 15,000.00 12,160.18
The credit facilities of Banks are subject to compliance with sanctioned terms & conditions. These credit
facilities have an average maturity of one year. Besides, the above, Company has Non Fund Based Working
Capital Arrangement with various Banks, with a lien on Term Deposits of the Company.

271
 Note Forming Part of Consolidated Financial Statements

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and
other prices, such as equity price risk and commodity risk. .
(i) Currency Risk
The Company’s activities are exposed primarily to the financial risk of changes in foreign currency rates. To
mitigate the foreign currency risk, the company is closely monitoring the market trend to take appropriate
action
The details of foreign currency balances which are not hedged as at the Balance Sheet date are as below:-

Particulars Figures as at 31.03.2024 Figures as at 31.03.2023

Foreign Currency Indian Rupee Foreign Currency Indian Rupee
(In lakh) (In lakh) (In lakh) (In lakh)
Trade Payable USD 150.60 12649.00 USD 235.12 19454.04

Sensitivity analysis
A reasonably possible strengthening (weakening) of the USD, JPY or EUR against INR at 31st March 2024
would have affected the measurement of financial instruments denominated in foreign currencies and
affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular interest rates, remain constant and ignores any impact of forecast sales and purchases. ` in Lakh

Effect in INR (before tax)

Strengthening Weakening

For the year ended 31st March, 2024

3% movement in,
USD (379.47) 379.47
For the year ended 31st March, 2023
3% movement in,
USD (583.62) 583.62

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in
the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow
interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate
because of fluctuations in the interest rates
Exposure to interest rate risk:
The Company's investments are in Bank fixed deposits wherein the interest rates are fixed, as on the
reporting date.

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Annual Report 2023 - 24

The Company do not have any fund based borrowing with banks as on the reporting date. The interest rate
on the Company's borrowings from Government of India is not fluctuating. The rate of interest on
Intercorporate loan from Rashtriya Chemicals and Fertilisers Ltd is subject to change, based on the lowest
cost of their working capital finance. The Intercorporate loan outstanding as on 31.03.2024 is `510 lakh and
the applicable interest as on the reporting date is 7.82%.
(iii) Commodity rate risk
The Company's profitability gets affected by the price differential (also known as Margin) between prices of
products (output) and the price of the raw materials used in production (input). Company has entered in to
agreement with suppliers of one of the major raw materials, Regassified Liquified Natural Gas and sulphur,
to mitigate the fluctuation in market price
(iv) Price Risk
The Company’s exposure to equity investments price risk arises from investments held by the Company
and classified in the financial statements at fair value through OCI. The Company intends to hold these
investments for long-term for better returns and price risk will not be significant from a long term
perspective.
Exposure to price risk ` In Lakh

Effect on OCI
31.03.2024 31.03.2023
Strengthening Weakening Strengthening Weakening
1% movement
Investment in Kerala Enviro
Infrastructure Ltd 5.33 (5.33) 4.63 (4.63)
Investment in Travancore
Cochin Chemicals Ltd 2.31 (2.31) 2.46 (2.46)
Investment in Indian Potash Ltd 122.72 (122.72) 105.77 (105.77)

CAPITAL MANAGEMENT
The Company’s primary objective is to maximize the shareholders’ value. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. Presently, the Company sources 100 % of its capex requirement from the internal
accruals. The Company, being a Central Public sector undertaking, is governed by the guidelines of the
Department of Investment & Public Asset Management (DIPAM), which specifies the minimum
percentage of dividend to be declared. Taking in to consideration the future capex requirements, the
Company considers the payment of dividend at the appropriate rates.
43. Disclosure under Ind AS 24 on related party transactions are given below
Since Government of India owns 90% of the Company’s equity share capital (under the administrative
control of Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the
Government and other Government controlled entities have been reported in accordance with para 26 of
Ind AS 24.
Certain transactions are carried out with other government related entities for purchase of Gases, for
procurement of Raw Materials / Finished Goods, Assets / Spare Parts from Original equipment
manufacturers, which are significant in terms of value, the details of which are as under:

273
 Note Forming Part of Consolidated Financial Statements

` in Lakh
Name of Entity Nature of Transaction 2023-24 2022-23
GAIL (India) Ltd Transmission Charges 5,921.73 13,682.03
Bharat Petroleum Corporation Ltd Procurement of Petroleum Products 22,440.12 55,358.19
Indian Oil Corporation Ltd Procurement of Gas / Petroleum Products 144,937.44 176,279.61
Mangalore Refinery and Petrochemicals Ltd Procurement of Petroleum Products/Sulphur/Benzene 18,890.90 25,227.96
ONGC Mangalore Petrochemicals Ltd
( merged to MRPL from May 2022) Procurement of Petroleum Products/Benzene 0.00 3,516.09
Hindustan Petroleum Corporation Ltd Procurement of Petroleum Products 173.95 221.79
Steel Authority of India Ltd Procurement of Steel Structural 109.16 10.56
Hindustan Insecticides Ltd Procurement of consumables/ spare parts 28.53 2.65
National Fertilisers Ltd Sale of Fertilisers 1,184.74 0.00
BRAHAMPUTRA VALLEY FERTILIZERS
CORPORATION LTD (BVFCL) Sale of Fertilisers 1,413.83 3,192.34
Rashtriya Chemicals and Fertilisers Ltd Sale of Fertilisers 0.00 371.39
Hindustan Insecticides Ltd Sale of Fertilisers 0.00 1,034.59
Hindustan Urvarak & Rasayan Limited Sale of Fertilisers 1,472.18 0.00
Rashtriya Chemicals and Fertilisers Ltd Principal repayment of Intercorporate Loan 510.00 510.00
Rashtriya Chemicals and Fertilisers Ltd Interest on Intercorporate Loan 67.17 101.40
Bharat Petroleum Corporation Limited Services Provided 157.62 119.85
Hindustan Organic Chemicals Ltd Services Provided- FEW 0.00 4.43
Cochin Shipyard Ltd Services Provided- FEW 1.06 0.00
Hindustan Petroleum Corporation Ltd Services Provided - 0.00 125.79
Indian Oil Corporation Ltd Services Provided 126.26 185.24
Rashtriya Chemicals and Fertilisers Ltd Services Provided 0.00 3.87
Rashtriya Chemicals and Fertilisers Ltd Reimbursement of POS AMC Charges 2.69 0.00
Madras Fertilizers Limited Reimbursement of POS AMC Charges 9.48 6.22
Rashtriya Chemicals and Fertilisers Ltd Expenses incurred in connection with parliamentary Committee 12.47 0.00
National Fertilisers Ltd Expenses incurred in connection with parliamentary Committee 12.47 0.00
Madras Fertilizers Limited Expenses incurred in connection with parliamentary Committee 12.47 0.00
Bharat Heavy Electricals Ltd Procurement of Assets/Spare parts 307.20 175.06
Bharat Earth Movers Ltd Procurement of Assets/Spare parts 18.47 10.42
Kochi Metro Rail Ltd Lease of property 166.95 151.29
Indian Oil Corporation Limited Rent 16.99
Hindusthan Insecticides Ltd Rent 3.60
Kochi Salem Pipeline Pvt Ltd. Lease of property 59.00 199.40
GAIL (India) Ltd Lease of property 13.69 13.69

The above referred transactions have been carried out on arm’s length basis with the said entities.
The other disclosures with related parties are as under:
1) Associates & Joint Ventures
Relationship

Sl No Name of Entity Percentage of ownership

interest as at
31.03.2024 31.03.2023
1 FACT-RCF Building Products Ltd(FRBL) 50.00% 50.00%

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Annual Report 2023 - 24

Transactions during the year with the above referred related parties: ` in Lakh

Sl No Particulars 2023-24 2022-23

i) Shares allotment received against share application money 0.00 235.70
ii) Dividend received 0.00 0.00
iii) Sales of Products 0.00 0.00
iv) Others 0.56 0.48

The provision towards the amount given as material, Services and advances made in the earlier financial
years continues. A provision amounting to `0.56 Lakh (Previous year ` 0.48 lakh) has been made for the
current year also.
` in Lakh
Balance Outstanding:
Sl No Particulars As at 31.03.2024 As at 31.03.2023
Receivable from FACT-RCF building products Ltd :
Towards sale of gypsum & services 297.72 297.72
Salary of deputationists and other expenses 828.96 828.40
Under Corporate Guarantee and other
Contractual obligations 2,789.60 2,789.60
Advance against Equity Pending allotment 0.00 0.00
Provision for bad & doubtful debts/advances 3,916.28 3,915.72
Provision towards other Contractual Obligation 239.60 239.60
Provision for diminution in the value of investments 3,522.70 3,522.70

The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the
lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF.
During the year 2018-19, RCF had settled the entire liability to the bankers, to the extent of `5100 lakhs
including 50% share of the Company `2550 lakhs on the condition that the Company shall treat the amount
paid by RCF on behalf of the Company as Inter-Corporate loan. Accordingly, the amount of ` 2550 lakhs has
been classified as Intercorporate loan. The principal amount outstanding as on 31.03.2024 is ` 510 lakh
(Previous year ` 1020 lakh). Interest rate applicable on the loan for the year 2023-24 is 7.82 % p.a. (Previous
year- 7.38% p.a).
Department of Fertilisers, Govt of India, had accorded the approval (16 November 2018) to The Fertilisers
and Chemicals Travancore Limited (FACT) for additional investment of ` 2925 lakh to the equity share capital
of FACT-RCF-Building Products Limited (FRBL).FRBL is a joint venture between FACT and Rashtriya
Chemicals & Fertilisers Limited (RCF). FACT in its 75th Annual General Meeting approved the additional
investment in FRBL. Against approval received for ` 2925 lakh, FRBL had issued equity shares amounting to
` 1518 lakh towards gypsum supplied and other services provided by FACT during the period from 2010-
2013. Further,FRBL during the year 2022-23 has allotted shares to FACT amounting to ` 235.70 lakhs.
Balance Equity Shares against which gypsum and other services provided by FACT during 2014-2017, are
pending for allotment by FRBL. The same has been disclosed under advances to related parties. Further,
supply of gypsum from FACT amounting to ` 239 lakh is still pending as on 31 March 2024 to complete the
above additional investment.
National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in
CP(IBC)/39/KOB/2023 filed by a financial creditor of FACT-RCF Building Products Ltd (FRBL) appointed an
Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution Proceedings against
FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was
superseded.The Resolution Professional commenced the proceedings and is in the process of publishing
advertisement for Expression of interest from the prospective applicants for submission of resolution plan
for FRBL.

275
 Note Forming Part of Consolidated Financial Statements

During the year 2009-10, the Company has along with Department of Factories and Boilers, Government of
Kerala, formed a society under the Travancore Literary, Scientific and Charitable Societies Act 1955 with the
objective of conducting courses relating to welding technologies with a grant of ` 1 Crore from the
Government of Kerala, under the name Kerala institute of Welding and Research. The contribution from the
Company is only provision of its existing facilities of Training School. The accounts of the society are not
consolidated as society is formed with an objective of not obtaining any economic benefits from its
activities and is considered immaterial to the Company's activity.
2) Key Management Personnel
1. Shri S C Mudgerikar, Chairman & Managing Director ( From 23.02.2024)
2. Shri Kishor Rungta, Chairman and Managing Director (from 02.02.2019 to 01.02.2024)
3. Shri.Anupam Misra, Director (Marketing) (from 14.07.2020)
4. Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer (From 08.03.2021)
5. Dr.Jayachandran.K, Director (Technical) (From 03.03.2023)
6. Smt.Susan Abraham, Company Secretary from 15.07.2022
Transactions with related parties:
Remuneration to key management personnel : (` In Lakh)

Sl No Particulars Short Term Employee Termination Other long-term benefits/

Benefits benefits** Share-based payments/
Post-term employee benefits
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
1 Sri Kishor Rungta, Chairman
and Managing Director
(From 02.02.2019 to 01.02.2024 ) 53.80 49.80 0.00 0.00 0.00 0.00
2 Shri.Anupam Misra, Director
(Marketing) (from 14.07.2020) 44.58 40.64 0.00 0.00 0.00 0.00
3 Shri.S.Sakthimani, Director
(Finance) & Chief Financial Officer
(From 08.03.2021) 48.96 42.43 0.00 0.00 0.00 0.00
4 Shri.Kesavan Nampoori A.S,
Director (Technical)
(From 22.03.2021 to 30.09.2022) 0.00 16.83 0.00 5.10 0.00 0.00
5 Dr.Jayachandran.K, Director
(Technical) (From 03.03.2023) 51.96 3.12 0.00 0.00 0.00 0.00
6 Shri K V Balakrishnan Nair,
Company Secretary & Executive
Director (Finance) up to
31.05.2022 0.00 9.23 0.00 37.98 0.00 0.00
7 Smt.Susan Abraham, Company
Secretary from 15.07.2022 28.34 16.55 0.00 0.00 0.00 0.00
227.64 178.60 0.00 43.08 0.00 0.00

** On payment basis
The whole time Directors have been allowed the use of company car and for private journey upto a ceiling
of 9000 kms. per year, on payment as prescribed by the Government.
Gratuity and leave encashment benefit accrued to the Directors have not been disclosed as the
contribution payable has been provided in the accounts and separate figures are not ascertainable.

276
Annual Report 2023 - 24

3) Other related parties

Party Nature of Relationship

i. FACT Cochin Division Employees To manage the provident fund contribution in respect
Provident Fund Trust of the employees of the Company
ii. The FACT Employees Provident Fund To manage the provident fund contribution in respect
of the employees of the Company
iii. FACT Employees Group Gratuity To manage fund earmarked for gratuity under group
Fund Trust gratuity accumulation scheme and provide gratuity
benefits including insurance towards future service
gratuity benefit
iv. FACT Employees Superannuation To provide superannuation benefits
Benefit Fund Trust to members of the Trust

Transactions with related parties: ` in Lakh

Party Company Contribution
made during the year
2023-24 2022-23
i. The FACT Employees Provident Fund 1818.20 1833.47
ii. FACT Cochin Division Employees Provident Fund Trust 70.66 74.95
iii. FACT Employees Group Gratuity Fund Trust 4200.00 3000.00

Dues outstanding in respect of the above related parties: ` in Lakh

Party As on
31.03.2024 31.03.2023
i. Amount payable to The FACT Employees Provident Fund 356.01 321.92
ii. Amount payable to FACT Cochin Division Employees
Provident Fund Trust 25.20 26.75
iii. Amount receivable from FACT Employees Group Gratuity
Fund Trust 90.38 652.31

44. Financial Reporting of interest in Joint Ventures and Associates

Name of Entity Country of Incorporation Percentage of ownership interest

31.03.2024 31.03.2023
FACT RCF Building Products Ltd. India 50.00% 50.00%

277
 Note Forming Part of Consolidated Financial Statements

1. FACT-RCF BUILDING PRODUCTS LTD.:- A Joint venture Company with Rashtriya Chemicals and
Fertilizers Limited (RCF) for manufacture of rapid building materials from Gypsum at Kochi.

Summarized financial information of Company’s investment in

FACT-RCF BUILDING PRODUCTS LTD. (FRBL) (` In Lakh)

Particulars As at 31.03.2024 As at 31.03.2023

(Un audited) (Audited)
Non-Current Assets 234.20 234.20
Cash and Cash Equivalent 7.89 15.95
Current Assets other than Cash and Cash Equivalents 598.84 751.59
Non-Current Liabilities & provisions 6,600.89 6,465.48
Current Liabilities 9,147.27 9,180.22
Equity (14,907.23) (14,643.96)
Proportion of the company’s ownership 50.00% 50.00%
Carrying amount of the investment* 0.00 0.00
(` In Lakh)
Particulars 2023-24 2022-23
(Un audited) (Audited)
Income 29.67 95.57
Cost of materials consumed 0.00 0.00
Changes in inventories 0.00 0.00
Depreciation and amortization expense 0.00 0.00
Finance costs 171.56 706.45
Employee benefits expenses 39.72 48.19
Other Expenses 81.63 131.42
Exceptional items 0.00 0.00
Loss for the year (263.24) (790.49)
Total comprehensive income for the year (263.24) (790.49)
Company’s Share of profit / loss for the year (131.62) (395.25)
* Owing to the company’s share of losses exceeding its interest in the joint venture recognising the share
of loss stands discontinued. Accordingly company has not recognized share of loss of ` 131.62 lakh for the
year (Previous Year ` 395.25 lakh) and ` 10976.31 lakhs cumulatively upto the year ended
31.03.2024(`10844.68 lakh cumulatively upto the year ended 31.03.2023).
National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in
CP(IBC)/39/KOB/2023 filed by a financial creditor of FACT-RCF Building Products Ltd (FRBL) appointed an
Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution Proceedings against
FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was
superseded.The Resolution Professional commenced the proceedings and is in the process of publishing
advertisement for Expression of interest from the prospective applicants for submission of resolution plan
for FRBL.

278
 Annual Report 2023 - 24

Additional information on entities included in Consolidated Financial Statements

Net Asset i.e total assets Share in other Share in total

Name of the entity Share in profit or loss
minus total liabilities Comprehensive income comprehensive income

As % of
As % of
As % of As % of consolidated
consolidated
consolidated Amount consolidated Amount Other Amount Amount
Comprehensive
net assets Profit or loss comprehensive
income
income

Parent :

279
The Fertilisers and
Chemicals Travancore Ltd 100.00% 137,573.92 100.00% 14,616.91 100.00% 2,054.29 100.00% 16,671.20
Joint Venture
(Investment as per
the equity method)
Indian
1. FACT-RCF
Building Products Ltd NA NA NA NA NA NA NA NA

100% provision made towards diminution in the value of investments in FACT-RCF Building Products Ltd
 Note Forming Part of Consolidated Financial Statements

FORM AOC-1
(Pursuant to first proviso to sub section (3) of section 129 read with rules 5 of Companies (Accounts)
Rules,2014 Statement containing salient features of the financial statement of subsidiaries or associate
companies or joint ventures
Part -A Subsidiaries
NIL
Part-B Associates and Joint ventures
Statement pursuant to Section 129(3) of the Companies Act 2013 related to Associate Companies and Joint
ventures

Name of Associates or FACT RCF Building

Joint Ventures Products Ltd.
Latest Audited Balance Sheet date 31.03.2023
Date on which the Associate or Joint Venture was associated or acquired 2nd May 2008
Shares of Associate or Joint ventures held by the Company at the 3,52,27,000.00
year end (No.)
Amount of Investment in Associates or Joint ventures 3522.70
Extent of Holding (in percentage) 50%
Description of how there is significant influence 50:50 Join venture, One
half of the Directors are
nominated by the Company
(Refer Note 1 below)
Reason why the associate/Joint venture is not consolidated Consolidated
Net worth attributable to shareholding as per latest audited Balance sheet 0.00
Profit or loss for the year 2023-24* (263.24)
1. Considered in consolidation NA
2. Not Considered in consolidation (131.62)

* The figures are obtained from the UnAudited Financial Statements for the Financial year 2023-24
1. National Company Law Tribunal (NCLT), Kochi Bench, vide its order dated 11.01.2024 in
CP(IBC)/39/KOB/2023 filed by a financial creditor of FACT-RCF Building Products Ltd (FRBL) appointed an
Interim Resolution Professional (IRP) for initiating Corporate Insolvency Resolution Proceedings against
FRBL as per Insolvency & Bankruptcy Code, 2016. Accordingly, the Board of Directors of FRBL was
superseded.The Resolution Professional commenced the proceedings and is in the process of publishing
advertisement for Expression of interest from the prospective applicants for submission of resolution plan
for FRBL.
2.Names of associates or joint ventures which are yet to commence operations- NIL
3. Names of associates or joint ventures which have been liquidated or sold during the year - NIL
For G. Venugopal Kamath & Co
Chartered Accountants
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S C Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

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Annual Report 2023 - 24

45. SEGMENTAL REPORTING

Segment Information for the year ended 31st March 2024
Information about Primary Business Segments
` in Lakh. ` in Lakh. ` in Lakh. ` in Lakh.
Fertiliser Petrochemical Others Total
(Unallocated)
REVENUE
External Revenue 452,602.98 53,210.17 1,028.71 506,841.86
543,714.52 77,450.68 941.62 622,106.82
TOTAL REVENUE 452,602.98 53,210.17 1,028.71 506,841.86
543,714.52 77,450.68 941.62 622,106.82
SEGMENT RESULTS
Profit before Interest and Taxation 76,754.89 (16,959.43) (26,411.77) 33,383.69
108,730.06 (17,116.43) (18,068.03) 73,545.60
Unallocated Corporate Expense (1,255.75) (1,255.75)
(1,226.35) (1,226.35)
Operating Profit 76,754.89 (16,959.43) (25,156.02) 34,639.43
108,730.06 (17,116.43) (16,841.68) 74,771.95
Interest Expense - - 24,692.77 24,692.77
- - 24,754.33 24,754.33
Interest and Dividend Income - - 18,962.37 18,962.37
- - 11,265.59 11,265.59
Profit before Exceptional items and Tax 76,754.89 (16,959.43) (30,886.43) 28,909.02
108,730.06 (17,116.43) (30,330.42) 61,283.21
Exceptional (Income)/Expense 24,558.89 - - 24,558.89
- -
Profit Before Tax after Exceptional Items 52,196.00 (16,959.43) (30,886.43) 4,350.13
108,730.06 (17,116.43) (30,330.42) 61,283.21
Income Tax/Deferred Tax - - (10,266.78) (10,266.78)
Profit after Interest and Taxation 52,196.00 (16,959.43) (20,619.65) 14,616.91
108,730.06 (17,116.43) (30,330.42) 61,283.21
OTHER INFORMATION
Segment Assets 481,347.35 44,681.81 55,485.71 581,514.88
438,340.06 38,788.18 66,300.45 543,428.68
Segment Liabilities 120,893.58 13,949.44 446,671.86 581,514.88
124,286.18 16,688.00 402,454.50 543,428.68
Depreciation 1,908.87 552.74 195.69 2,657.29
2,257.35 559.24 194.54 3,011.13
Capital Expenditure 3,387.35 272.21 78.64 3,738.20
2,932.69 7.08 129.68 3,069.45
The business segments are:-
Segment Products
Fertiliser Ammonium Phosphate, Ammonium Sulphate, MOP, NPK
15:15:15 Organic Manures
Petrochemical Caprolactam
Segments have been identified taking into account the organisation structure.
Segment assets and liabilities represents assets and liabilities in respective segments. Share capital ,Secured and
Unsecured loans, Investments and Accumulated loss are classified as Unallocated.
Segment reporting is prepared based on the methods consistantly followed by the company
Figures given in bottom row pertains to previous year.

RECONCILIATION OF REVENUE 2023-24 2022-23

Segment Revenue as above 506841.86 622106.82
Add Interest Income 18962.37 11265.59
Revenue as per Profit and Loss Statement 525804.23 633372.41

281
 Note Forming Part of Consolidated Financial Statements

46. EMPLOYEE BENEFITS

General Description of Defined Contribution Plan
ontributory Superannuation Scheme-The scheme is aimed to provide superannuation benefits to the
employees. Every year company contributes `100 to the fund.
General Description of Defined Benefit Plan
A Leave Encashment and Gratuity
The company operates gratuity plan where in every employee is entitled to the benefit equivalent to fifteen
days salary last drawn for each completed year of service. The same is payable on death , separation from
service or retirement , whichever is earlier. The benefit vests after five years of continuous service. The
company has been accounting for provision on account of leave encashment on retirement based on
actuarial valuation carried out as at the balance sheet date
B Provident Fund
The Provident Fund contributions are made to Trusts administered by the company. The interest rate
payable to the members of the Trust shall not be lower than statutory rate of interest declared by the
Central Government under the Employees Provident Funds and Miscellaneous Provisions Act 1952.
During the year an amount of `1888.86 lakh ( Previous Year `1908.42 lakh) has been charged to Statement
of Profit & Loss towards contribution by the Company. In terms of the Ind AS 19 , the Provident Fund Trust
set up by the company is treated as Defined Benefit Plan since the company has to meet the shortfall in the
fund assets, if any.
During the year, vide GO (P) No. 85/2023/ LBR dated 11.10.2023 Government of Kerala (appropriate
authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew exemption
granted for the Company in respect of The FACT Cochin Division Employees Provident Fund on account of
three years continuous loss incurred by the Company . Company has challenged the same and filed a writ
petition before the Hon' High Court of Kerala and the notification has been stayed by the Honorable High
Court. The matter is still pending.
During the year 2022-23, vide, G.O (Rt.) No. 354/2023/LBR dated 23.03.2023 Government of Kerala
(appropriate authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew
exemption granted for the Company in respect of The FACT Employees Provident Fund, Udyogamandal
Division on account of three years continuous loss incurred by the company . Company has challenged the
same and filed a writ petition before the Hon' High Court of Kerala and the notification has been stayed by
the Honorable High Court. The matter is still pending.
A Movement in net defined benefit (asset)/ liability in respect of Leave Encashment and Gratuity

` in Lakh ` in Lakh ` in Lakh

a. Changes in the present Leave encashment Gratuity CLR Gratuity
value of obligations (Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Present value of obligations

at the beginning of the year 9571.95 9427.18 12506.55 13260.35 990.81 924.35
Interest cost 607.48 554.19 795.43 844.61 68.62 64.28
Past service cost 0.00 0.00 0.00 0.00 - 0.00
Current service cost 1493.21 1745.01 494.51 552.86 47.09 46.87
Benefits paid (2523.54) (2924.94) (3250.25) (2961.16) (88.65) (55.67)
Actuarial loss/(gain) on obligation (527.49) 770.51 187.65 809.89 (22.35) 10.98
Present value of obligations
at the end of the year 8621.62 9571.95 10733.89 12506.55 995.52 990.81

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Annual Report 2023 - 24

` in Lakh ` in Lakh ` in Lakh

Leave encashment Gratuity CLR Gratuity
(Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

b. Changes in the fair value

of plan assets
Fair value of plan assets
at the beginning of the year 0.00 0.00 1412.27 1296.04 0.00 0.00
Expected return on investment 0.00 0.00 137.95 94.31 0.00 0.00
Employer's contribution 0.00 0.00 4200.00 3000.00 0.00 0.00
Benefits paid 0.00 0.00 (3250.25) (2961.16) 0.00 0.00
Actual return on Plan Asset over
Expected Interest 0.00 0.00 (58.61) (16.92) 0.00 0.00
Fair value of plan assets
at the end of the year 0.00 0.00 2441.36 1412.27 0.00 0.00
Actual return on investment** 0.00 0.00 79.34 77.40 0.00 0.00
c.Amount recognised in
Balance sheet
Present value of obligations at
the end of the year 8621.62 9571.95 10733.89 12506.55 995.52 990.81
Fair value of plan assets at
the end of the year 0.00 0.00 2441.36 1412.27 0.00 0.00
Unfunded net liability
recognised in Balance sheet 8621.60 9571.95 8292.54 11094.28 995.53 990.81
d.Expenses recognised in the
Statement of Profit and
Loss during the year
Current service cost 1493.21 1745.01 494.51 552.86 47.09 46.87
Past service cost 0.00 0.00 0.00 0.00 0.00 0.00
Net Interest on Obligation / Asset 607.48 554.19 657.48 750.29 68.62 64.28
Total Expenses recognised in
the Statement of Profit and
Loss during the year 2100.69 2299.20 1151.99 1303.15 115.71 111.15
Amount Disclosed under Other
Comprehensive Income:
Opening balance (1905.89) (2676.40) 4807.83 3981.02 616.60 605.62
Actuarial (Gain) or Loss on
Obligation side during the year (527.49) 770.51 246.26 826.81 (22.35) 10.98
Closing Amount Disclosed
under OCI (2433.38) (1905.89) 5054.09 4807.83 594.25 616.60

283
 Note Forming Part of Consolidated Financial Statements

` in Lakh ` in Lakh ` in Lakh

Leave encashment Gratuity CLR Gratuity
(Unfunded) (Funded) (Unfunded)
31.03.2024 31.03.2023 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Investment details % invested as % invested as % invested as

at 31st March at 31st March at 31st March
LIC Group Gratuity
(Cash Accumulation) policy - - 22.74 11.29 - -

Actuarial assumptions

Mortality rate Indian Assured Lives Mortality (2012-14) Ultimate

e. Discount rate 7.25% 7.31% 7.25% 7.31% 7.25% 7.31%

Salary escalation rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%

f. Expected rate of return on

plan assets NA NA 7.25% 7.31% NA NA

GRATUITY- OTHER DISCLOSURE REQUIREMENTS

(I) Description of plan Characteristics and associated risks:
The Gratuity scheme is a final salary defined benefit plan that provides for a lumpsum payment at the time of
separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the
period of service at the time of separation and paid as lumpsum. There is a vesting period of 5 years. The
design entiles the following risks that affect the liabilities and cash flows
Interest rates risk:
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yields fall the defined benefit obligation will tend to increase. Thus the plan exposes the Company to
the risk of fall in interest rates. Some times the fall can be permanent due to a paradigm shift in interest
rate scenarios because of economic or fiscal reasons. A fall in interest rates will result in an increase in
the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability (as shown in financial statements). Even for funded schemes a paradigm downward shift in
bond yields may affect the reinvestment yields and may increase ultimate costs.
Salary inflation risk:
The present value of the defined benefit plan is calculated with the assumption of salary escalation
rate(SER) which is applied to find the salary of plan participants in future at the time of separation
Higher than expected increases in salary will increase the defined benefit obligation and will have an
exponential effect.
Retirement age:
It should be noted that in case of employees above retirement age for the purpose of valuation it is
assumed they will retire immediately & benefit is considered up to actual retirement age.
Demographic risks:
Demographic assumptions are required to assess the timing and probability of a payment taking place.
This is the risk of volatility of results due to unexpected nature of decrements that include mortality

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Annual Report 2023 - 24

attrition disability and retirement. The effects of this decrement on the DBO depend upon the
combination salary increase discount rate and vesting criteria and therefore not very straight forward. It
is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving
employees will be less compared to long service employees.
Asset Liability Mismatch:
This will come into play unless the funds are invested with a term of the assets replicating the term of
the liability.
Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following
reasons:Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary
escalation will result into an increase in Obligation at a rate that is higher than expected.Variability in
mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative
values of the assumed salary growth and discount rate.Variability in withdrawal rates: If actual
withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will
be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at
the resignation date
Investment Risk
For funded plans that rely on insurers for managing the assets the value of assets certified by the
insurer may not be the fair value of instruments backing the liability. In such cases the present value of
the assets is independent of the future discount rate. This can result in wide fluctuations in the net
liability or the funded status if there are significant changes in the discount rate during the inter-
valuation period.
Liquidity Risk
This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due
to non availability of enough cash / cash equivalent to meet the liabilities or holding of liquid assets not
being sold in time.
Employees with high salaries and long durations of service or those higher in hierarchy accumulate
significant level of benefits. If some of such employees resign / retire from the company there can be
strain on the cash flows.
Market Risk
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate /
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.
Legislative risk/Regulatory risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change
in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation. The new labour code is a case in point. And the same will have to be
recognized immediately in the year when any such amendment is effective.
(ii) Sensitivity Analysis
How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely
discount rates salary growth Attrition & Mortality is shown below

285
 Note Forming Part of Consolidated Financial Statements

GRATUITY-EMPLOYEES : ` In Lakh

31-03-2024
% increase DECREASE OR
LIABILITY
in DBO INCREASE IN DBO

1 DISCOUNT RATE +100 basis points -4.39% 10263.21 -470.69

2 DISCOUNT RATE -100 basis points 4.86% 11255.46 521.57
3 SALARY GROWTH +100 basis points 1.63% 10908.47 174.58
4 SALARY GROWTH -100 basis points -1.70% 10551.90 -181.99
5 ATTRITION RATE +100 basis points 0.24% 10759.99 26.10
6 ATTRITION RATE-100 basis points -0.28% 10704.25 -29.64
7 MORTALITY RATE 10% UP 0.02% 10735.51 1.61
8 EFFECT OF NO CEILING 44.35% 14260.44 4760.02

GRATUITY-CASUAL LABOUR (CLR) ` In Lakh

31-03-2024
% increase DECREASE OR
LIABILITY
in DBO INCREASE IN DBO

1 DISCOUNT RATE +100 basis points -6.03% 935.47 -60.05

2 DISCOUNT RATE -100 basis points 6.76% 1062.82 67.30
3 SALARY GROWTH +100 basis points 5.68% 1052.11 56.58
4 SALARY GROWTH -100 basis points -5.77% 938.06 -57.46
5 ATTRITION RATE +100 basis points -0.54% 990.13 -5.39
6 ATTRITION RATE-100 basis points 0.60% 1001.46 5.93
7 MORTALITY RATE 10% UP -0.03% 995.18 -0.34
8 EFFECT OF NO CEILING 0.51% 1008.37 1008.37

P.U.C method has been used. If an employee’s service in later years will lead to a materially higher level of
benefit than in earlier years these benefits are attributed on a straight-line basis. The limitations are that in
assessing the change other parameters are kept constant. As some of the assumptions may be correlated it
is unlikely that changes in assumptions will occur in isolation of one another.
There is no change from the previous period in the methods and assumptions used in the preparation of
above analysis, except that the base rates have changed
(iii) Asset Liability Matching Strategies
GRATUITY-EMPLOYEES :
Insurer Administered Fund
The company has funded the liability with the insurance company. The entire investible assets are managed
by the fund managers of the Insurance company and the Asset Values as informed by the Insurance
Company has been taken for the valuation purpose. The policy thus mitigates the liquidity risk. However

286
Annual Report 2023 - 24

being a cash accumulation plan the duration of assets is shorter compared to the duration of liabilities. Thus
the Company is exposed to movement in interest rate (in particular the significant fall in interest Rates which
should result in a increase in liability without corresponding increase in the asset). .Thus the Company is
exposed to movement in interest rate (in particular the significant fall in interest Rates which should result in
a increase in liability without corresponding increase in the asset).
GRATUITY-CASUAL LABOUR (CLR)
Pay As You Go Method
The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a
‘pay as you go’ system to meet the liabilities as and when they fall due. Therefore the scheme is fully
unfunded, and no assets are maintained by the company and asset values are taken as zero; there is liquidity
risk in that they may run out of cash.
(iv) Other disclosures
GRATUITY-EMPLOYEES :
The company has started funding the liability through the medium of an insurance company and regular
assessment is made by the Company of the increase in liability and contributions are being made to
maintain the fund and is subject to the credit risk of the insurance company and asset liability mismatch risk
of the investments .

Expected Contributions to the plan for the next annual reporting period. Rs. 1070.38 lakhs

31-03-2024 31-03-2023
Weighted average duration of the D B O 11.62 10.39
` in lakh ` in lakh
Information on the maturity profile of the liabilities 31-Mar-24 31-Mar-23
Projected Benefit Obligation 10,733.89 12506.55
Accumulated Benefits Obligation 8,450.38 10,848.36
` in lakh
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 650.79 685.87
2 Year (II) 897.21 1013.75
3 Year (III) 2534.43 2942.44
4 Year (IV) 2000.64 2488.25
5 Year (V) 1311.51 1743.53
6 Next 5 year pay-outs (6-10 years) 2162.23 3404.96
7 Pay-outs Above Ten Years 1177.09 4367.92
8 Vested benefit Obligation as on Para 137 (b) 31-03-2024 10363.74

287
 Note Forming Part of Consolidated Financial Statements

GRATUITY-CASUAL LABOUR (CLR) :

The company has not started funding the gratuity liability & has been following pay as you go method for
settlement of the liability
Expected Contributions to the plan for the next annual reporting period. NA

31-03-2024 31-03-2023
Weighted average duration of the D B O 8.85 7.47
` in lakh
Information on the maturity profile of the liabilities given below 31-03-24 31-03-23
Projected Benefit Obligation 995.52 990.81
Accumulated Benefits Obligation 642.46 707.78

31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 43.26 45.59
2 Year (II) 63.10 71.32
3 Year (III) 132.26 154.63
4 Year (IV) 105.07 133.17
5 Year (V) 122.81 164.87
6 Next 5 year pay-outs (6-10 years) 310.76 509.01
7 Pay-outs Above Ten Years 218.26 679.65
8 Vested benefit Obligation as on Para 137 (b) 31-03-2024 994.66

LEAVE ENCASHMENT- OTHER DISCLOSURE REQUIREMENTS

(i) Description of plan Characteristics and associated risks:
The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of
separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave
count at the time of separation and paid as lumpsum.
The design entiles the following risks that affect the liabilities and cash flows.
Interest rates risk
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields
fall, the defined benefit obligation will tend to increase.
Salary inflation risk:
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risks:
This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition,
disability and retirement. The effects of this decrement on the DBO depend upon the combination salary
increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to
overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less

288
Annual Report 2023 - 24

compared to long service employees

(ii) SENSITIVITY ANALYSIS
How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely
discount rates, salary growth, Attrition & Mortality is shown below
PRIVILEGE LEAVE ` in lakh

Net Asset/(Liability)Recognised in Balance sheet - 31-03-2024

% increase
in DBO LIABILITY INCREASE IN DBO
LIABILITY

1 DISCOUNT RATE +100 basis points -6.59% 7123.11 -502.36

2 DISCOUNT RATE -100 basis points 7.56% 8201.77 576.30
3 SALARY GROWTH +100 basis points 7.04% 8162.57 537.10
4 SALARY GROWTH -100 basis points -6.26% 7148.04 -477.43
5 ATTRITION RATE +100 basis points -0.61% 7578.71 -46.76
6 ATTRITION RATE-100 basis points 0.70% 7678.88 53.41
7 MORTALITY RATE 10% UP -0.02% 7624.14 -1.34

SICK LEAVE ` in lakh

Net Asset/(Liability)Recognised in Balance sheet - 31-03-2024

% increase
in DBO LIABILITY INCREASE IN DBO
LIABILITY
1 DISCOUNT RATE +100 basis points -6.13% 935.11 -61.02
2 DISCOUNT RATE -100 basis points 6.92% 1065.03 68.90
3 SALARY GROWTH +100 basis points 6.44% 1060.30 64.17
4 SALARY GROWTH -100 basis points -5.82% 938.19 -57.94
5 ATTRITION RATE +100 basis points -0.55% 990.66 -5.47
6 ATTRITION RATE-100 basis points 0.62% 1002.28 6.15
7 MORTALITY RATE 10% UP -0.02% 995.96 -0.17

P.U.C method has been used for sensitivity analysis. If an employee’s service in later years will lead to a
materially higher level of benefit than in earlier years, these benefits are attributed on a straight-line basis.
The limitations are that in assessing the change other parameters are kept constant. As some of the
assumptions may be correlated, it is unlikely that changes in assumptions will occur in isolation of one
another.
There is no change from the previous period in the methods and assumptions used in the preparation of
above analysis, except that the base rates have changed
(iii) Actuarial measurements as on March 31,2024
The company has not started funding the Leave liability & has been following pay as you go method for
settlement of the liability

289
 Note Forming Part of Consolidated Financial Statements

(iv) Maturity profile of the liabilities

PRIVILEGE LEAVE

31-03-2024 31-03-2023
Weighted average duration of the D B O 11.62 10.39
` in lakh
Information on the maturity profile of the liabilities given 31-03-24 31-03-23
Projected Benefit Obligation 7625.47 8154.85
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 387.27 418.78
2 Year (II) 489.24 586.88
3 Year (III) 1315.58 1742.17
4 Year (IV) 1155.95 1644.10
5 Year (V) 825.46 1253.21
6 Next 5 year pay-outs (6-10 years) 1545.96 2786.30
7 Pay-outs Above Ten Years 1906.02 6968.58

SICK LEAVE

31-03-2024 31-03-2023
Weighted average duration of the D B O 9.88 11.62
` in lakh
Information on the maturity profile of the liabilities given 31-03-24 31-03-23
Projected Benefit Obligation 996.13 1,426.10
31-03-2024
FIVE YEAR PAYOUTS Discounted Undiscounted
values values
/ Present value / Actual value
1 Year (I) 51.83 56.09
2 Year (II) 66.44 79.85
3 Year (III) 192.65 256.26
4 Year (IV) 160.63 228.90
5 Year (V) 113.73 172.65
6 Next 5 year pay-outs (6-10 years) 214.73 385.61
7 Pay-outs Above Ten Years 196.12 684.24

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Annual Report 2023 - 24

B Movement in net defined benefit (asset)/ liability in respect of Provident Fund

` in Lakh ` in Lakh
Trust managed Provident Trust managed Provident
Fund-Udyogamandal Fund-Cochin Division
a. Changes in the present value of obligations 31-03-2024 31-03-2023 31-03-2024 31-03-2023
Present value of obligations at the beginning of the year 24872.63 24478.94 1912.73 2153.52
Interest cost 1554.05 1568.04 117.91 132.96
Past service cost - - - -
Current service cost 1109.18 1063.85 70.66 76.37
Plan participants contribution 2849.41 3196.50 231.76 244.53
Benefits paid (6874.94) (6056.51) (572.90) (669.25)
Actuarial loss/(gain) on obligation 636.51 621.81 23.39 (25.40)
Present value of obligations at the end of the year 24146.83 24872.63 1783.54 1912.73
b. Changes in the fair value of plan assets
Fair value of plan assets at the beginning of the year 24822.87 24478.02 1909.21 2139.38
Expected return on investment 1590.65 1606.86 120.21 134.72
Employer's & Plan participants contribution 3958.59 4260.35 302.42 320.91
Benefits paid (6874.94) (6056.51) (572.90) (669.25)
Actuarial (loss)/gain on plan assets 682.50 534.15 13.67 (16.55)
Fair value of plan assets at the end of the year 24179.66 24822.87 1772.61 1909.21
Actual return on investment 2273.15 2141.01 133.88 118.17
c. Amount recognised in Balance sheet of the Trust
Present value of obligations at the end of the year 24146.83 24872.63 1783.54 1912.73
Fair value of plan assets at the end of the year 24179.66 24822.87 1772.61 1909.21
Unfunded net liability (32.83) 49.76 10.93 3.52
d. Expenses recognised in the Statement
of Profit and Loss of the Trust during the year
Current service cost 1109.18 1063.85 70.66 76.37
Past service cost
Interest cost 1554.05 1568.04 117.91 132.96
Expected return on investment (1590.65) (1606.86) (120.21) (134.72)
Net actuarial (gain) / loss recognised during the year (45.99) 87.66 9.72 (8.85)
Total Expenses 1026.59 1112.69 78.07 65.76

47. Additional Regulatory Information

(i) Fair value of investment property
Fair Value of Freehold Land is based on the notification issued by the Government of Kerala in their website.
Management assumes the original cost of the Building as fair value

291
 Note Forming Part of Consolidated Financial Statements

(ii) Capital-Work-in Progress (CWIP)

(a) CWIP ageing schedule
As on 31.03.2024 ` In Lakh
CWIP Amount in CWIP for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years

Projects in progress 12058.17 7654.93 1997.23 494.72 22205.05

Projects temporarily suspended 0.00 0.00 0.00 0.00 0.00
Total 12,058.17 7,654.93 1997.23 494.72 22205.05

As on 31.03.2023 ` In Lakh
CWIP Amount in CWIP for a period of
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Projects in progress 7788.84 2058.56 392.58 219.42 10459.40
Projects temporarily suspended 0.00 0.00 0.00 0.00 0.00
Total 7788.84 2058.56 392.58 219.42 10459.40

b) Details of CWIP for which there is a time over-run compared to its Original plan.
As on 31.03.2024 ` In Lakh
CWIP To be completed in
Less than 1-2 years 2-3 years More than Total
1 year 3 years
Ammonia Storage Tank CD - 10000MT 9,776.63 - - - 9,776.63
Two Phosphoric Acid
Storage Tanks W/I - 8200MT*2 1,774.66 - - - 1,774.66
Sulphuric Acid Storage Tanks
WI 8200MT 311.29 - - - 311.29
Diesel Generator Set for SA Plant 23.11 - - - 23.11
Contract Employee Attendance
Management System 7.58 - - - 7.58
Electrical Work in CD TSHP
for Land Sale 246.67 - - - 246.67
Civil Foundation Works IAT 43.67 - - - 43.67
Total 12,183.61 0 0 0 12,183.61

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Annual Report 2023 - 24

(iii) Ratios

RATIO NUMERATOR DINOMINATOR RATIO % Reason for variation

Variance more than 25%
2023-24 2022-23

(a) Current Ratio, Current Assets Current Liabilities 1.05 1.08 - 2.00% NA
(b) Debt-Equity Ratio Total liabilities/debt Shareholder’s Equity 3.23 3.27 - 1.00% NA
(c) Debt Service Net profit after tax Finance cost, 0.11 0.26 -55.91% Due to decrease in Net
Coverage Ratio, plus Finance cost Current maturities profit after tax
and Non cash of debt and accrued
operating expenses interest
(d) Return on Equity Profit after Tax Shareholder’s Equity 0.11 0.48 -77.92% Due to decrease in Net
Ratio profit after tax
(e) Inventory turnover Turnover Average inventory 4.76 7.55 -37.02% Due to reduction in Sales
ratio, and also increased
inventory position of
Finished goods
(f) Trade Receivables Net Credit Sales Average Accounts 4.37 5.77 -24.32% NA
turnover ratio, Receivable
(g) Trade payables Net credit Purchases Average Accounts 8.59 9.16 -6.23% NA
turnover ratio, Payable
(h) Net capital turnover Net sales Working capital 23.80 20.99 13.40% NA
ratio,

(I) Net profit ratio Net profit after tax Turnover 0.03 0.10 -70.75% Due to decrease in
Turnover & Net profit
(j) Return on Capital Earnings before Capital employed 0.08 0.19 -57.22% Due to reduction in
employed interest and taxes (Net Worth + Total Net Profit after Tax
Debt)
(k) Return on investment Increase in the net Original value of 0.49 0.42 16.88% NA
assets value of investment
investment in
shares plus dividend

iv) Other Additional Disclosures required as per schedule III of the Companies Act 2013
a) Transaction with struck off companies under section 248 or 560

Name of struck off Nature of transactions Balance outstanding Relationship with

Company with struck-off Company (` In Lakh)* the Struck off Company

Capexil Agencies Ltd Investments in securities 0.15 NA

*The investment Is valued at Nil in the books

b) No charge or satisfaction is pending to be registered with Registrar of Companies beyond the statutory
period
c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237

293
 Note Forming Part of Consolidated Financial Statements

d) There are no transactions that are not recorded in the books of account to be surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
e) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
f) No funds (which are material either individually or in the aggregate)have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds)by the
Company to or in any other person or entity, including foreign entity(‘Intermediaries”),with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company(‘Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
g) No funds (which are material either individually or in the aggregate)have been received by the Company
from any person or entity, including foreign entity(“Funding Parties”),with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether ,directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party(“Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
h) The Company has not been declared as a wilful defaulter by any bank or financial institution or other
lender.
48. Contingent Liabilities and Commitments (to the extent not provided for):
Contingent Liabilities ` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Claims against the company not acknowledged

as debts in respect of:
Central Excise Act, 1944 11612.91 13313.01
Service Tax (Finance Act, 1994 ) 374.77 361.35
Sales Tax / Value Added Tax/ Entry tax 287.69 282.87
Goods and Service Tax 190.52
Income Tax Act, 1961 4.26 4.26
ESI Act 127.83 127.83
Suppliers and contractors 28024.64 27001.59
Payment of Bonus Act,1965 33.59 33.59
Others 10751.08 5844.76

48.1 The contract for the barge transportation of Ammonia awarded to a private company has been
cancelled void ab initio during 2004-05 by the Company. The Contractor claimed ₹ 178489.75 lakh
including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the
year 2013-14 in favour of the contractor for ₹17308.04 lakh including interest as on 31.12.2013 .As per
the award, the mobilisation advance paid by the Company to the contractor along with interest of
₹2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on
legal and factual grounds and has challenged the award before the Hon' District Court , Ernakulam
which has since stayed the award. During the year 2019-20, as per the directive of Hon' District Court,
Ernakulam the Company has provided 80.50 acres of land as security for the award. Accordingly, the

294
Annual Report 2023 - 24

award amount along with interest up to 31.03.2024, amounting to ₹ 27734.43 lakh without
considering the adjustment of mobilisation advance and interest allowed under the arbitral award is
not considered as a liability and included under Contingent Liability. The case is transferred to
Commercial Court.
48.2. A plan loan of ₹.100000.00 lakh bearing interest @13.50% per annum was released by the
Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the
order of Government of India, ₹100000.00 lakh along with the earlier loan and interest outstanding has
been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium.
As per the terms of sanction , Government reserves right to enhance the rate of interest to 16.25% in
case of default in repayment. As no communication in this regard has been received from the
Government, as on date, ₹ 9777.70 lakhs (previous year- ₹ 4895.52 lakhs) being additional interest
from financial year 2022-23 has been shown as contingent liability (refer Note 22.2)
48.3. ₹ 392.82 lakhs (Previous year- ₹ 392.82 lakhs) is claimed by a transport contractor in an arbitration
petition filed by them in response to ₹ 298.02 lakhs withheld from the contractor bills and initiation to
invoke bank guarantee of ₹143.22 lakhs towards compensation for non-delivery of goods. Company
filed a counter claim of ₹ 224.03 lakhs (including interest). ₹ 94.80 lakhs is included in the contingent
liability towards the claim.
48.4 Contingent Liability as on 31.03.2024, includes ₹ 104.27 Lakh being the amount payable as per the
Arbitration award , to a customer whose contract for sale of bulk gypsum was terminated by the
Company during the year 2016-17. In response to the Execution petition filed by the party, the Hon’ble
High Court issued an interim injunction attaching an amount of ₹ 175.64 lakhs in the Company’s bank
account. Challenging the same, we have filed objection petition which has been admitted by the Hon
Court and interim stay has been granted vide order dt . 6.12.2023. vide order dt 12.7.2023 Hon'ble
court has dismissed the EP as not pressed. In view of the dismissal of EP the OP has also been closed
vide order dt 20.10.2023.
48.5 As per the Presidential directive and the agreement entered into between the Company and the trade
unions for implementation of the 2017 wage revision, the company is not liable to pay arrears of salary
and wages for the period from 01.01.2017 to 31.03.2022, in respect of managerial and non-
managerial employees. Certain retired employees of FACT have filed Writ Petitions before the Hon.
High Court of Kerala praying for a direction to the company to disburse arrears of pay revision and
other consequential benefits for the period from 01.01.2017 to the respective retirement dates of the
petitioners. Since a verdict/decision on payment of arrears relating is not taken, the amount of liability
cannot be ascertained at this stage. ` In Lakh

As at 31.03.2024 As at 31.03.2023
49. Estimated amount of contracts remaining
to be executed on capital account and not
provided for. 35793.54 48655.99

295
 Note Forming Part of Consolidated Financial Statements

50. Contingent Assets

` In Lakh
Particulars As at 31.03.2024 As at 31.03.2023
Amounts estimated to be receivable in respect of:
Suppliers and Contractors 9,064.27 7,981.22
Dealers and customers 83.27 84.68
Others 184.12 184.12
9,331.66 8,250.02

1. Contingent assets in respect of 'Suppliers and Contractors' includes ` 6468.65 lakhs (Previous year
`5385.59 lakhs) for the year 2023-24 receivable from a contractor on the interest bearing mobilisation
advance still retained by the party(refer Note 4.1, 13.2). It also includes reduction in regasification charges `
2461.45 lakhs receivable from oil companies in respect of Re-gassified Liquified Natural Gas during the year
2019-20. This disputed matter is presently pending before Administrative Mechanism for Resolution of
CPSEs Disputes ( AMRCD)
51. Construction Contracts
Income under services for own units reckoned by the Engineering and Consultancy Division (FEDO) and the
Fabrication Division (FEW) is accounted by respective units under revenue expenditure ` 1012.21 lakh
(Previous year ` 730.16 lakh ), and capital expenditure ` 850.09 lakh (Previous year ` 2267.82 lakh ).In the
case of work being carried out by FACT Engineering and Design Organisation (FEDO), for National
Institute of Technology ( NIT), Nagaland, as an executing agency, on a cost plus basis, as a deposit work ,
FEDO is eligible for certain percentage of fees of total project cost . As per technical evaluation ,70.70
%(previous year 52.46%) of work related to consultancy services by FEDO to NIT, has been completed as
on 31.3.2024 and pro-rata credit of ` 986.40 lakh ( previous year `888.27 lakh) has been taken, after
considering `360.40 lakh towards work in progress ( previous year `276.44 lakh). The value of construction
work billed and certified during the year 2023-24 is taken as ` 541.40 lakh, (previous year Nil) and equivalent
amount has been considered for direct charges on contract.
` In Lakh

Particulars As at 31.03.2024 As at 31.03.2023

Contract revenue recognised in the period. 989.57 547.42

Advance received against contract in progress. 1,024.34 538.89
Retention by customers against contract in progress. 34.42 69.89
Aggregate amount of cost incurred and recognised
profit (less recognised loss) on contracts in progress
upto the reporting date. 3,057.31 2,444.06
Gross amount due from customers for contract
work as an asset. 356.00 171.51
Gross amount due to customers for contract
work as a liability. 45.44 95.56

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Annual Report 2023 - 24

52. Disclosure in respect of changes in accounting policies, Changes in Accounting Estimates and
Errors.
During the year certain errors or omission were identified. Accordingly, previous year financial statements
are restated, as per the provisions of IndAS 8. The nature of restatements and the impact in the previous
financial statements is as follows.
Restatements of previous year figures
1. Provision for CISF DA Arrears for an amount of `15.32 lakh has been made in the financial year
2022-23

Reconciliation of restated items of Balance Sheet and Statement of Profit & Loss ` In Lakh

Restatement of figures
of the year 2022-23

Sl. Particulars Note No As reported Adjustments As restated

No
during
previous
year

1 Other Equity 16 62682.49 -15.32 62667.17

2 Current Liabilities :
Other Financial Liabilities 25 164734.88 15.32 164750.20
3* Other Expenses 35 142003.04 -5.28 141997.76
4* Finance Cost 34 24733.73 20.60 24754.33
5 Earnings per Equity Share 37 9.47 0.00 9.47

* In Addition to provision for CISF DA Arrears in other Expenses, Provision for decommisioning of Leased
Assets has been regrouped to finance cost from other expenses.

53.1 INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPH 5 (viii) OF GENERAL

INSTRUCTIONS FOR STATEMENT OF PROFIT AND LOSS OF SCHEDULE III TO THE COMPANIES
ACT, 2013 FOR THE YEAR ENDED 31.03.2024
` In Lakh
1 Value of imported and indigenous spare parts consumed and percentage thereof to total
consumption.
Current year Percentage Previous year Percentage
Spare Parts , Components &
Chemicals
Imported 298.46 5.77% 116.80 2.44%
Indigenous 4874.37 94.23% 4662.02 97.56%
5172.83 4778.82

297
 Note Forming Part of Consolidated Financial Statements

` In Lakh
2 CIF Value of Imports Current year Previous year
(i) Raw Materials 138264.48 169583.43
(ii) Traded Products 33899.33 0.00
(iii) Spares and other materials 245.72 163.65
(iv) Capital Goods 22.89 0.00
172432.42 169747.08
3 Expenditure in foreign currency
( i) Consultancy service 85.08 2.26
(ii) Others 41.40 38.83
126.48 41.09

53.2 INFORMATION PURSUANT TO OM F NO. 23011/9/2023- P & K DATED 18.01.2024 ISSUED BY

DEPARTMENT OF FERTILISERS ON GUIDELINES FOR EVALUATION OF REASONABLENESS
OF MRP OF P & K FERTILISERS UNDER NUTRIENT BASED SUBSIDY POLICY.
` In Lakh

Particulars Integrated Imported Others Total

I Revenue From operations 464,895.71 38,927.64 1,669.26 505,492.61
II Net Profit Before Exceptional
Items & Tax 27,042.28 1,965.43 (98.69) 28,909.02
Exceptional Items (24,558.89)
Net Profit after Excpetional
Items Before Tax 4,350.13
Deferred Tax (10,266.78)
Net Profit after Tax 14,616.91

Products covered:
Integrated : Factamfos, Ammonium Sulphate, Caprolactam and all other products that are covered under
the value chain.
Imported : All imported Fertilisers procured by the Company for the purpose of trading.
Others: includes FEDO, FEW & Others domestic traded products.

298
 54. COST OF MATERIALS CONSUMED
Annual Report 2023 - 24

2023-24 2022-23

Sl No. Particulars Opening Purchases Closing Consumption Opening Purchases Closing Consumption
Stock Stock Stock Stock

1 Regassified Liquid natural Gas 4.44 104,723.48 0.41 104727.52 2.56 134817.15 4.44 134815.27
2 Sulphur - Imported 168.48 - 35.52 132.96 3488.15 11.86 168.48 3331.53
3 Sulphur 2,868.39 13951.22 1347.30 15472.31 3,205.32 34261.29 2,868.39 34598.22
4 Rock Phosphate-Imported 2,974.27 33679.72 1591.14 35062.85 9070.42 44774.94 2974.27 50871.09
5 Phosphoric Acid-Imported 5,449.68 95187.90 6468.74 94168.84 7992.76 122893.00 5449.68 125436.08
6 Phosphoric Acid-Indegeneous 16.72 0.00 16.72 0.00 0.00 4919.85 16.72 4903.13

299
7 Ammonia - Imported 187.03 11111.25 5642.72 5655.56 206.29 11.06 187.03 30.32
8 Benzene -Imported 0.09 0.00 0.09 0.00 0.09 0.00 0.09 0.00
9 Benzene 1,753.06 24970.26 47.10 26676.22 1651.80 37185.78 1753.06 37084.52
10 Caustic Soda 47.17 1409.75 6.33 1,450.61 55.71 2,634.08 47.17 2,642.61
11 Rock Phosphate-18% for mixing* 13.28 0.00 6.86 0.00 13.28 0.00 13.28 0.00
12 Sulphuric Acid 53.47 10200.61 656.49 9597.59 1271.85 17025.71 53.47 18244.09
13 Sulphuric Acid-Imported 679.52 1221.83 3.45 1,897.90 36.83 1,685.75 679.52 1043.07
TOTAL 14215.60 296456.02 15822.86 294842.36 26995.06 400220.47 14215.61 412999.93
Cost of Materials Consumed 294842.36 412999.93

* Closing stock after adjustments for sale ₹ 6.42 lakhs (Previous Year Nil)
` in lakh
 Note Forming Part of Consolidated Financial Statements

55. The consolidated financial statements were authorized for issue in accordance with a resolution
passed by the Board of Directors on 16.05.2024
56. The financial statements as approved by the Board of Directors are subject to audit by Comptroller and
Auditor General of India and final approval by the Shareholders.
57. The figures of the previous year have been re-arranged and regrouped wherever necessary and / or
practicable to make them comparable with those of the current year.
58. Events occurring after the Balance sheet date
Board of Directors have recommended a final dividend of ₹ 0.97 per equity share of ₹ 10/- each
(previous year ₹ 1.00 per equity share ) i.e. 9.70 % on paid up equity share capital of the Company for
the financial year 2023-24 ( Previous year 10% on paid up equity share capital) which is subject to
approval of Shareholders of the Company.

As per our Report of even date attached

For G. Venugopal Kamath & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm Registration No. 004674S
Sd/- Sd/- Sd/-
Vivek N Shenoy S Sakthimani S.C. Mudgerikar
Partner Director (Finance) & Chief Financial Officer Chairman & Managing Director
Membership No.217021 DIN 07482308 DIN 03498837
Sd/-
Place: Kochi Susan Abraham
Date: 16.05.2024 Company Secretary

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Annual Report 2023 - 24

CSR Initiatives of FACT

FACT & CUSAT signed MOU to institute the "FACT Chair Professor" in the Dept. of Safety & Fire Engineering, CUSAT

School Bus for BUDS School, Vadavucode

&
Govt. LP School, Eloor

Foundation Stone laying

of Smart Anganwadi at Karumalloor

301
 Annual Report 2023 - 24

CSR Initiatives of FACT

FACT distributed school essentials to the students of GHSS, Pathalam as part of its CSR initiative.

Mobile Health Unit

302