Indian Potash Limited Unlisted Shares Annual Reports

Indian Potash Limited Unlisted Shares

The 69th Annual Report of Indian Potash Limited (IPL) for the year 2023-24 discusses the company's performance across its various divisions, including fertilizers, dairy and feeds, and sugars & biofuels, against the backdrop of the Indian economy and global trends. The report addresses key financial outcomes, operational strategies, and future prospects. **Ordinary Business (Notice of the 69th Annual General Meeting):** The 69th Annual General Meeting will address the adoption of the Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2024. Declaration of Dividend of Rs. 7.50/- per fully paid-up Equity Share of Rs. 10/- each for the Financial Year 2023-24. Re-appointment of Shri Pankaj Kumar Bansal, Shri Rakesh Kapur, and Shri Girish Dayalan who retires by rotation. Ratification / approval of the remuneration of Independent Directors and Cost Auditors for the Financial Year 2024 - 25. **Directors' Report:** The fertilizer industry in India plays a vital role in agricultural output, food security, and rural employment, consistently demonstrating growth. IPL has positioned itself to aid balanced fertilization and ensure fertilizer availability nationwide at affordable costs. The report highlights rainfall patterns, noting that despite a delayed monsoon, the country received near-normal rainfall during the southwest monsoon season, with spatial unevenness impacting rabi crop sowing. International prices of raw materials and finished fertilizers showed volatility. **Sales and Financial Performance:** First Point Sales for all fertilizer products together (excluding canalized Urea) totaled 5.9 million MTs, down from 6.9 million MTs in the previous year. First Point Sales also reflected decline in MOP and DAP, with a positive growth in Complex Fertiliser sales. Total income for FY 2023-24 was Rs. 22,033.63 Crores, a decrease from the previous year's Rs. 34,010.73 Crores. This degrowth in total income is after considering the negative impact on account of downward revision in subsidy per tonne. Despite the setbacks, Profit Before Tax (PBT) stood at Rs. 1,040.27 Crores, a 2% increase, and Profit After Tax (PAT) was Rs. 777.33 Crores, a 3% increase. Finance costs decreased by Rs. 312.02 Crores. The Sugar Division achieved a profit of Rs. 89.56 Crores, up from Rs. 81.12 Crores in the previous period. **Operational Highlights & Future Outlook:** IPL's grain-based distillery project in Odisha faced delays due to policy changes but is expected to commence commercial production in July 2024. The company continues extension and promotion activities to promote balanced fertilization. Project Potash For Life continues to educate farmers on fertilizer use. The company expects to benefit from investments in Grain based distillery project. For 2024-25, the India Meteorological Department predicted above-normal monsoon conditions, potentially boosting agricultural output, despite looming El Nino conditions. Continued demand for fertilizers will be supported by Minimum Support Prices (MSP). **Board and Corporate Governance:** The report details changes in the Board of Directors and provides information on the number of board meetings, audit committee meetings, nomination and remuneration committee meetings, and extra ordinary general meetings. Details of corporate social responsibility (CSR) activities undertaken, including preventive healthcare, education, skill development, sanitation, rural development, and conservation of natural resources, are provided. **Auditor's Report & Financial Controls:** The auditor’s report expresses a qualified opinion due to an ongoing CBI investigation. Despite this, the company maintains strong internal controls, which it continues to strengthen. The financial statements were prepared following applicable accounting standards. The Board confirms its responsibility for the financial statements. **Subsidiary Performance:** Key financial data for IPL Sugars and Bio Fuels LTD. is presented, showing share capital, reserves & surplus, total assets & liabilities, investments, turnover, profit, and country of operation. **CSR Initiatives** The company outlines its various CSR initiatives and the budget allocated. Average net profit of the company as per sub-section (5) of section 135 is Rs. 804,56,78,333/-. **Directors’ Responsibility Statement:** The Directors confirm that in the preparation of the Standalone and Consolidated Annual Accounts, the applicable accounting standards have been followed and that proper and sufficient care has been taken for the maintenance of adequate accounting records. **Acknowledgement** The company is grateful to various ministries and government departments, state governments, and the consortium of Banks for their guidance and co-operation. The Directors acknowledge with gratitude the support of company's distributors, Institutional customers, Overseas and indigenous suppliers, employees of the Company.

Indian Potash Limited Unlisted Shares

The 68th Annual Report for 2022-23 of Indian Potash Limited (IPL) covers the company's performance across its various divisions, including fertilizers, dairy & feeds, and sugars & bio fuels. The Annual General Meeting will be held on July 22, 2023, via video conferencing. **Board of Directors:** The report identifies the Board of Directors, including Shri. Pankaj Kumar Bansal, IAS (Chairman), Dr. P.S. Gahlaut (Managing Director), and others. **Financial Performance:** * Total Income: Rs. 34,010.75 crores, an 82% increase. If Urea imports on DOF account are included, it would be Rs. 42,446.72 crores. * Total Expenses: Rs. 32,987.78 crores. * Profit Before Tax (PBT): Rs. 1,022.97 crores, a 24% increase. * Profit After Tax (PAT): Rs. 751.50 crores, a 22% increase. * Volume Sales: 6.9 million tonnes (excluding Urea), a 10% increase. **Key Factors Affecting Profitability:** * Agro-climatic conditions: Total rainfall was normal, but spacing was uneven. * Monsoon: South-west monsoon was sluggish, with an 8% deficit, but the southwest monsoon seasonal rainfall was normal over Northwest India (101%) and excess in central India (119%) and South peninsula (122%). * Reservoir Levels: Live storage in 146 major reservoirs was 76.058 BCM, 94% of last year and 118% of the 10-year average. * Fertilizer Imports: DAP and MOP imports reduced by 21% and 27% respectively due to increased international prices and less availability. China's suspension of DAP exports further limited supplies. * Government Subsidies: Increased NBS subsidy effective April 2022, but reduced from October 2022. Further reduction in January 2023 impacted profitability. * DAP and MOP: Import of DAP decreased by 5% and MOP by 20%. * Complex Fertilizers: Import increased by 198%. * Point of Sales: DAP sales increased by 36%, MOP decreased by 4% compared to All India Sales. * NPK Ratio: Deteriorated to 12:5:1 against an ideal 4:2:1 due to price distortions. DAP per bag at Rs. 1,350 is cheaper than complexes and MOP at Rs 1,700. * Sugar Industry: Witnessed balanced demand-supply and uptrend in prices. Company completed its export quota with reasonable profit. * Dairy Division: Revival in demand for liquid milk and milk products. **Other Key Points:** * Forex Loss: Rs. 218.09 crores due to volatility. * Finance Costs: Increased by Rs. 577.63 crores due to forex costs and subsidy reimbursement delays. * Subsidy Revision: Negative impact of Rs. 700 crores due to downward revision by the Government. * Dairy and Cattle Feed: Overall improvement in performance. * Sugar Division: Profit of Rs.81.14 Crores. * Compressed Bio-gas: Supplied 16.55 Lakh KG to IOCL. * Internal Control: Systems are adequate. * Odisha Acquisition: Successfully merged Sugar, Distillery, Soya and Bio-waste at Dhenkanal from Sakthi Group. * Distillery Project: 190 KLPD Grain based distillery project at Talajaring, Odisha, expected to commence by end of October 2023. * Promotion Activities: Focused on balanced fertilization. **Extension & Promotion Activities Conducted During 2022-23:** * Field Days: 109 * Sales Campaigns: 98 * Farmers Meetings: 228 * Crop Seminars: 23 * Dealer's Training Programs: 44 * Agri Fair Exhibitions: 33 * Wall/Trolley paintings in rural areas: 2,03,696 sq. ft. **Projects:** * PFL (Potash for Life): Continued since October 2013, implemented in 13 states. * IPPP (IPL Potash Promotion Project): Started in 2021-22, implemented in 5 states. * BNPP (Balance Nutrition Promotion Project): Started in 2021-22, implemented in 5 states. **Prospects for 2023-24:** El Nino conditions may impact agricultural output and rural income. Moderation in fertilizer prices will reduce the subsidy budget. **Other Statutory Information:** * Share Capital: Authorized share capital is Rs. 6,120 Lakhs. * Dividend: Directors recommended a dividend of Rs. 7/- per equity share. * Board of Directors: Changes in the position of Directors noted. * Meetings: The Board met Six (6) times. The Audit Committee met Three times. * Auditors: M/s. MSKA & Associates are the Statutory Auditors. M/s. R. M. Bansal & Co have been re-appointed as Cost Auditors. * The company has constituted CSR committee. **Risk Management, Internal Control, and Other Disclosures:** * Risk Management: A standardized process and system is in place. * Whistle Blower Policy: The company has a whistle blower policy * Internal financial Control Systems and Adequacy * Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 * Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo * Significant and material orders passed by the regulators. **Auditors' Qualifications:** A qualified opinion is issued due to an ongoing CBI investigation against the Managing Director. The Board has not carried out an independent investigation. The impacts are not ascertainable at this stage. The auditor qualified additional items related to the maintenance of accounts and internal controls. The extracts of the Annual Return are available on the company's website.

Indian Potash Limited Unlisted Shares

Here is a comprehensive summary of the Indian Potash Limited 67th Annual Report for 2021-22: **Overview** The 67th Annual General Meeting of Indian Potash Limited (IPL) will be held on September 5, 2022, via video conferencing. The company's registered office is located in Chennai. The report reflects on the year's performance across its fertilizers, dairy, feeds, and sugar & bio-fuels divisions. IPL's bankers include State Bank of India, Canara Bank, HDFC Bank, and others, with Price Waterhouse Chartered Accountants LLP as auditors. **Ordinary Business** The AGM includes items for adoption of audited standalone and consolidated financial statements for the year ended March 31, 2022. Declaration of a final dividend of Rs. 6/- per equity share of Rs. 10/- each, payable to shareholders on the register as of August 19, 2022. Re-appointments of retiring directors: Dr. U.S. Awasthi, Shri Dileep Sanghani, and Shri A. Sreenivas. Appointment of M/s MSKA & Associates as Statutory Auditors from the conclusion of 67th AGM until the conclusion of the 72nd AGM, at a remuneration of Rs. 36,00,000/- annually. **Special Business** Ratification of remuneration for Independent Directors - Rs. 4 Lakhs each for FY 2020-21. Ratification of appointment of Cost Auditors for the Financial Year 2022-23, M/s. R M Bansal & Co. for Sugar and Sugar Products at Rs. 25,000 per unit/factory. **Director's Report** Agriculture proved resilient, growing 3.6% in 2020-21 and 3.9% in 2021-22, aided by good monsoon behavior. Rainfall was generally above normal, with regional variations. Live storage in major reservoirs was above the previous year and 10-year average. Demand for fertilizers remained positive. Sales: Phosphatic fertilizer inventory dipped due to elevated international prices and limited availability. Major MOP suppliers reduced supply due to lower sales prices in India. Prices of phosphatic and potassic fertilizers increased significantly (200%-250%). The Government of India increased subsidies to mitigate the price impact. The company lowered DAP imports but increased complex fertilizer imports. Sales performance of DAP and MOP declined, while complex fertilizer sales grew. The company was designated a State Trading Enterprise for Urea imports on Government account. It handled 29.01 Lakhs MT on Government of India account valued at Rs 18,147.94 crores. The Sugar industry showed balanced demand-supply and improved prices. Dairy division saw stable demand for liquid milk with a revival in value-added products. Volume sales de-grew approximately 19% to 6.3 million tonnes (excluding Urea on DOF). The company’s total income grew 13% to Rs. 18,715.48 crores. Profit Before Tax (PBT) grew 8% to Rs. 821.85 crores. Profit After Tax (PAT) grew 8% to Rs. 615.06 crores. Factors contributing to profitability included economical sourcing, efficient logistics, stable forex market, judicious borrowing, and timely subsidy payments. Other highlights: Rs. 23.89 crores dividend income from associate company JPMC. Overall improvement in sugar division performance. 11.91 Lakh KG of Compressed Bio-gas supplied. **Extension & Promotion Activities** IPL conducted field-oriented activities and campaigns to promote balanced fertilization and achieve the ideal NPK use ratio of 4:2:1. Activities included crop demonstrations, field days, farmer meetings, crop seminars, and dealer training programs. Promotional literature was distributed. Projects like Potash for Life (PFL), IPL Potash Promotion Project (IPPP), and Balance Nutrition Promotion Project (BNPP) were implemented. **Prospects for 2022-23** Normal monsoons are expected, leading to healthy moisture levels and increased cropping area. Fertilizer prices are expected to remain high due to elevated crop and energy prices. Retail prices of P&K fertilizers may not cover landed cost despite increased subsidies. Stable outlook expected with enhanced subsidy support from Government of India. Diversification benefits from sugar division investments and the combined Bio-refinery project are expected to contribute to sales and profits. Cattle Feed / Dairy Division expects to continue profitability. The Authorized Share Capital of the Company stands at Rs. 6,120 lakhs. **Board of Directors & Committees** Changes were made to the Board of Directors, including appointments of nominee directors. Three independent directors were appointed on August 10, 2021. Key Managerial Personnel are Dr. P. S. Gahlaut, Shri. R. Srinivasan and Dr. Girish Kumar. Six Board meetings were held during FY 2021-22. The Audit Committee and Nomination and Remuneration Committee (NRC) also met. **Corporate Social Responsibility (CSR)** IPL has undertaken various CSR Projects / Activities with a priority to fight COVID-19 pandemic and Preventive Health Care. They contributed the unspent amount of Rs.7.98 Crores (Rs.8.00 Crores rounded) to PM CARES Fund. CSR activities are aligned with Schedule VII of the Companies Act, 2013, and focus on promoting health, sanitation, education, skill development, environmental conservation, and rural development. The CSR committee is in compliance with the Companies Act. **Auditors & Related Matters** Price Waterhouse Chartered Accountants LLP were appointed as Statutory Auditors. M/s. MSKA & Associates have been appointed as the Statutory Auditors of the company for a period of 5 years commencing from the Financial Year 1st April 2022 to 31st March 2027. Rengarajan & Associates are the Secretarial Auditors. M/s. R. M. Bansal & Co re-appointed as Cost Auditors for sugar products for FY 2022-23. The Company is addressing qualifications from auditors/CBI regarding investigations. Internal controls are strong. The company has ratified related party transactions and reconstituted the Board and sub-committees in line with the Companies Act, 2013. **Risk Management & Employee Disclosure** A standardized Risk Management Process is in place. Particulars of employees are available as Annexure-3. All contracts/transactions with related parties were at arm's length. A Whistle Blower Policy exists. Adequate Internal Financial Control Systems are in place. The company has placed an Anti-Sexual Harassment Policy in line with the Sexual Harassment of Women at Workplace Act, 2013. **Significant & Material Orders, Director Responsibility, and Other Disclosures** No significant material orders impacting going concern status. Directors affirm responsibility regarding financial statements and internal controls. Statutory information and other disclosures are available. Disclosure under Insolvency and Bankruptcy Code is NIL. Details of Crypto Currency or Virtual Currency are NIL. The company acknowledges support from various government bodies, banks, and employees. **Financial Performance Annexures** Annexure 4 details Conservation of energy, Technology Absorption and Foreign Exchange Earnings and Outgo. Volume Sales of all Products at 6.3 Million Tonnes, the company's turnover at Rs.18,715.48 Crores, a growth of approx 13%, Annexure 1 lists CSR activities under Schedule VII. Annexure B lists Aspects to be considered while engaging with other entities. Annexure C provides the format for the Annual Report on CSR Activities to be included in the Board's Reports [Annexure -II]. Annexure D is Form CSR 2. **Independent Auditor's Report** Qualified opinion due to ongoing CBI investigation against the Managing Director and Directors/relatives. Not compliant with Sections 177(2), 178(1) and 135(1), 177(4) respectively of the Act and Rules. However, the independent auditors provided that the financials were fairly presented. This summarizes the key components of IPL's 67th Annual Report (2021-22).

Indian Potash Limited Unlisted Shares

Here is a comprehensive summary of the 66th Annual Report for 2020-21 of Indian Potash Limited (IPL), covering its financial performance, operations, and key initiatives: **General Overview & Director's Report:** India experienced above-normal rainfall during the pre-monsoon and southwest monsoon seasons, leading to higher sowing and improved reservoir levels. This augmented fertilizer demand and improved sales performance. The live storage in 128 major reservoirs was significantly higher than the 10-year average. Demand outlook for fertilizers remained positive. Agriculture was a bright spot despite the coronavirus pandemic. Sales through Point of Sales (POS) system are now a key indicator of actual fertilizer consumption. All India sales of urea, DAP, MOP, and complexes increased. IPL's urea sales depend on imports by the Department of Fertilizers (DOF), while DAP and MOP are decontrolled fertilizers, more directly reflecting company performance. Panic buying by farmers and dealers, coupled with lower international prices, led to increased fertilizer sales initially. Imports of urea were higher to avoid shortages. The fertilizer industry witnessed a spurt in international DAP prices from late October 2020. IPL lowered DAP imports and imported more complex fertilizers. **Financial Performance (FY 2020-21):** Total volume sales reached 7.8 million tonnes, a 26% increase. Total income was Rs. 16,581.09 crores, a 13% growth. Turnover was the highest in the last 8 years, attributed to higher volume sales despite per tonne realization decrease due to subsidy reduction. Profit Before Tax (PBT) was Rs. 759.95 crores, a 44% growth and the highest ever since IPL's inception. Profit After Tax (PAT) was Rs. 570.07 crores, a 64.29% growth and also the highest ever. **Factors Affecting Profitability:** * Sales growth in MOP, DAP, and complex fertilizers due to economical sourcing, efficient logistics, and marketing. * Relative stability in the forex market and timely forex purchases resulted in forex gain of Rs.159.34 crores, also aided by high sugar exports (91,000 MT). * Finance costs reduction of Rs. 102 crores due to judicious borrowings and optimal surplus funds utilization and timely subsidy payments. * Careful monitoring and control of operational, selling, and administrative costs. * Sugar Division improved capacity utilization to 87.5% against an industry average of 83.5% with anti-Covid protections. * Dairy product sales were subdued due to reduced demand in the sweets, ice cream, and confectionary sectors. * Subsidy reduction impact on pre-positioned stocks, amounting to Rs. 48 crores and Rs. 98 crores for MOP stocks, was appropriately considered. **Credit Rating & Bio-Refinery Project:** Credit rating agencies enhanced IPL's rating outlook from A1+ to AA- stable for long-term borrowings. The bio-refinery project successfully completed trial operations of distillery and Bio-CNG operations in Uttar Pradesh. The Bio-CNG plant was dedicated to the nation under the Ujwala scheme. The distillery project is in the final stages of commercial operations. **Extension & Promotion Activities:** IPL conducted numerous field activities, campaigns, farmer meetings, crop seminars, and dealer training programs to promote balanced fertilization and increase fertilizer use efficiency. The Indo Canadian Potash Promotion Project (ICPPP) continued across 5 states despite Covid-19. The Potash for Life (PFL) project continued across 11 states. **Prospects for 2021-22:** Rural demand is expected to remain strong. Agriculture is expected to grow with normal monsoon forecasts and bumper harvests. Economic activities are expected to normalize due to the COVID vaccination program. Normal monsoons will result in healthy moisture levels and rising water levels. **Challenges and Risks:** Credit metrics of the fertilizer industry are expected to remain subdued due to delays in subsidy disbursement. The company faces issues regarding inadequate subsidy provisioning, affecting liquidity. International prices are expected to increase. China curtailing fertilizer export to meet domestic demand may also affect international prices. The government may push for increasing importation even at higher cost and not revise the selling price. **Share Capital & Dividend:** Authorized share capital is Rs. 6,120 lakhs. Issued, subscribed, and paid-up capital is Rs. 2,859.72 Lakhs. The Directors recommend a dividend of Rs. 4/- per equity share. **Subsidiaries & Amalgamation:** A statement containing salient features of the financial statements of the Company's subsidiaries is included. The scheme of amalgamation of M/s. Goldline Milkfood, M/s. IPL Gujarat Port, and M/s. Sri Krishna Fertilisers with the Company became effective April 1st, 2019. **Board of Directors and Governance:** Various changes occurred in the Board of Directors during the year. The company had difficulties in appointing Independent Directors due to Covid-19 restrictions. The Company reconstituted the Board with the appointment of 3 Additional Directors in August, 2021. The board met four times during the year via video conference. The Audit Committee and Nomination and Remuneration Committee also met. **Corporate Social Responsibility (CSR):** The CSR committee met twice. IPL supplied 5 Medical Oxygen generation plants to hospitals in Uttar Pradesh. CSR activities focused on eradicating hunger, promoting education, ensuring environmental sustainability, and other social causes. 2% of the average net profits of the preceding 3 years are allocated to CSR, with Rs.1,039.66 lakhs being the average profit before tax of the company for the last three financial years. The company spent Rs 241.57 lakhs. **Auditors' Report & Internal Controls:** Price Waterhouse Chartered Accountants LLP were re-appointed as statutory auditors. The Board is addressing a First Information Report (FIR) filed by the CBI against the Managing Director. The Board believes no independent investigation is necessary at this stage. The company has a strong internal control mechanism. **Extracts of Annual Return & Other Disclosures:** A standardized Risk Management Process and System is in place. The Company has a Whistle Blower Policy. Details on Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo are provided. **Key Financial Data:** * Earnings: Rs 1,08,790.12 Lakhs * Outgo : Rs. 11,58,098.67 Lakhs **Auditors' Qualifications:** The auditor's report includes qualified opinions due to concerns regarding an ongoing CBI investigation, non-compliance regarding the composition of the Board of Directors and Audit Committee, and the lack of prior approval for certain related-party transactions.