DIRECTORS’ REPORT
Dear Members,
The Directors of your Company have pleasure in presenting
this 45th Annual Report on the working of your Company
together with the Audited Financial Statements for the
year ended March 31, 2023.
FINANCIAL PERFORMANCE
|
Particulars
|
2022-23
|
2021-22
|
|
Total Income (Net)
|
21594.84
|
12948.62
|
|
Total Operating Cost
|
19978.35
|
11822.90
|
|
Operational Profit
|
1616.49
|
1125.72
|
|
Depreciation/Impairment
|
212.12
|
183.55
|
|
Finance Cost
|
223.86
|
125.89
|
|
Profit before exceptional items
|
1180.51
|
816.28
|
|
Net Exceptional Items (income)
/Expense
|
(93.47)
|
(127.63)
|
|
Profit before Tax
|
1273.98
|
943.91
|
|
Provision for Tax (including
deferred Tax liability/ Asset)
|
306.83
|
239.55
|
|
Net Profit
|
967.15
|
704.36
|
|
Retained Earnings
|
|
Add / (less): Re-measurement
of Defined Benefit Plan
|
(35.76)
|
(9.19)
|
|
Less: Dividend Paid (Previous
Financial Year)
|
226.19
|
172.68
|
|
Less: Balance Transferred to /
(from ) General Reserve
|
705.20
|
522.49
|
During the year, the major factors improving your
Company’s profitability before tax are as under:
a. Higher margins of Industrial products and Complex
Fertilizers contributed to higher profitability.
b. Better energy efficiencies at Thal Unit improved Urea
margins.
c. Reduction in interest rates as well as lower working
capital requirement resulted in reduction in Finance
costs.
MEMORANDUM OF UNDERSTANDING WITH
GOVERNMENT OF INDIA
Your Company has been entering into a Memorandum
of Understanding (MoU) with the Ministry of Chemicals &
Fertilizers, Government of India, setting the performance
parameters and targets every year. Your Company has
secured "Very Good” rating for the year 2021-22.
The performance rating for 2022-23 MoU is yet to be
finalised by the Government and the Company expects to
achieve "Very Good” ratings this year.
DIVIDEND
Although your Company has lined up a number of capex
programmes which will entail substantial expenditure,
considering the consistent profits being made by the
Company and based on the Company’s performance, your
Directors are pleased to recommend a final Dividend of
' 3.70 per equity share of ' 10/- each for the financial year
2022-23. Your Board had earlier approved payment of
interim dividend of ' 1.60 per equity share of ' 10/- each for
the financial year 2022-23, at its meeting held on November
29, 2022 and same was paid on December 27, 2022. The
total dividend for the financial year 2022-23 amounts to
' 5.30 per equity share (Previous year ' 3.85 per equity
share), and would involve a total cash outflow of ' 292.39
Crore consisting ' 88.27 crore as interim dividend and
' 204.12 crore as final dividend (' 137.92 Crore in the previous
year). The final dividend pay-out is subject to the approval of
members at the ensuing Annual General Meeting.
APPROPRIATION TO GENERAL RESERVES
Your Company earned a net Profit after Tax of ' 967.15 Crore
(' 704.36 Crore in the previous year). Re-measurement of
defined benefit plans resulted in loss of ' 35.76 crore
(previous year ' 9.19 crore). The dividend pay-out pertaining
to financial year 2021-22 was ' 137.92 Crore (' 98.20 Crore
pertaining to financial year 2020-21) and interim dividend
pertaining to financial year 2022-23 was ' 88.27 Crore
(' 74.48 Crore pertaining to financial year 2021-22).The
balance amount of ' 705.20 Crore (' 522.49 Crore in the
previous year 2020-21) was transferred to General Reserves.
UPGRADATION OF NAVRATNA STATUS
Your Company has been accorded the ‘NAVRATNA’ CPSE
status by the Government of India on August 29, 2023
which provides greater autonomy and enhanced financial
delegation to the Board of Directors. Your Company
is the first PSU in fertilizer sector to be elevated to
NAVRATNA Category. This recognition is a testament to
RCF team’s (Past & present) dedication and commitment
to the chemicals & fertilizers Sector. With the coveted
NAVRATNA status, your Company further commits itself
towards playing a more decisive and significant role in our
country’s growth and prosperity.
AWARDS WON
As in the past, your Company has won many awards
during the year 2022-23, some of which are as under:
Trombay Unit
• "22nd Annual Greentech Environment Award 2022”
for outstanding achievements in "Environment
Protection” category.
• FICCI Award-2022 for Sustainability-Excellence in
Safety in Chemical Sector.
• Greentech EHS Best Practice International Award
2023 under EHS best Practices Category.
• 3rd prize in 17th state level Energy Conservation Award
(MEDA) in Industry General Category.
• National Safety Council of India awards 2022
(Appreciation Certificate) in recognition for good
performance in OSH during 2019-2021.
Thai Unit
• "Certificate of Merit” from NSC India in Safety
Seminar organized by NSC-India
• Growcare Occupational Health and Safety Award
2022
• Greentech Effective EHS Culture award
• Merit Certificate in NSC I seminar
• HWP Thal received 3rd Prize in NSC I seminar
Others:
• Governance Now 9th Edition PSU Award in category
"Technology initiative in Vigilance in PSUs
OPERATIONAL RESULTS
Thal Unit
During the year, the unit produced 18.80 lakh MT of Urea
compared to 18.59 lakh MT produced during the previous
year. In terms of nutrients in the fertilisers, the unit
produced 8.65 lakh MT of N during the year, compared to
8.55 lakh MT during previous year.
Trombay Unit
The Trombay Unit produced 3.16 lakh MT of Urea & 6.43
lakh MT of Suphala 15:15:15 during the year compared to
3.26 lakh MT of Urea & 5.71 lakh MT of Suphala 15:15:15
produced during the previous year. In terms of Nutrient
values, the unit produced 2.42 lakh MT of N, 0.96 lakh MT
of P2O5 and 0.96 lakh MT of K2O during the year compared
to 2.36 lakh MT of N, 0.86 lakh MT of P O and 0.86 lakh
MT of K2O respectively during the previous year.
INDUSTRIAL PRODUCTS
Your Company produces industrial chemicals at both its
units. During the year, your Company produced approx.
5.79 lakh MT of various major industrial chemical products
as against approx. 6.52 lakh MT during the previous year.
Your Company produces, amongst others, Ammonium
Nitrate Melt, Ammonia, Ammonium Bicarbonate, Dilute
Nitric Acid 58%, Conc. Nitric Acid 98%, Strong Nitric Acid,
(72% & 68%), Methyl Amines (Mono, Di, Tri), Sulphuric
Acid, Argon, Nitrogen, Dimethyl Acetamide, Phosphoric
Acid 27%, Sodium Nitrate / Nitrite, Refrigerant Ammonia,
Water, Methanol, Gypsum, Chalk etc.
MARKETING PERFORMANCE
FERTILIZER DIVISION
Your Company achieved sales volume of 33.14 lakh MT
during the year 2022-23 as compared to 30.80 lakh MT
during the previous year. Your Company sold 22.09 lakh MT
of Urea, 6.10 lakh MT of Suphala 15:15:15, 0.05 Lakh MT of
Suphala 10:26:26, 4.47 lakh MT of other bought out products
i.e. DAP, MOP, Imp NPK etc. , 0.38 lakh MT of tie products and
0. 05 Lakh MT of value added products as compared to 22.08
lakh MT of Urea, 5.87 lakh MT of Suphala 15:15:15, 2.31 lakh
MT of other bought out products i.e. DAP, MOP, Imp. NPK
etc. 0.49 lakh MT of tie products and 0.05 Lakh MT of value
added products during the previous year. The Total sale of
manufactured fertilizers (Urea & NPK) during 2022-23 was
28.23 lakh MT as against 27.95 lakh MT during the previous
year. Sales of manufactured fertilizers registered growth of
1 % over previous year.
Your Company sold 4.47 LMT Imported fertilizers products
1. e. DAP, MOP and Imp NPK etc. as compared to 2.31 LMT
during previous year. Sales of imported fertilizers registered
growth of 94 % over previous year.
The sale of Biola picked up momentum during the year.
Biola sale registered growth of 13 % touching 151 KL during
the year as against 134 KL in the previous year. The sale
of manufactured water soluble fertilizers under the brand
name ‘Sujala’ touched 4247 MT during the year as against
5056 MT sold in the previous year. Other products such as
Microla, pH balancer, Silica and OGS also registered healthy
volumes during the year.
During the year, your Company has achieved the following
milestones:
> Highest ever sale of 33.14 LMT of fertilizers, which is an
increase of 8 % over last year. This is highest sale after
2015-16.
> Sold 4.47 LMT of imported products, which is an
increase of 94% over last year.
> Highest ever sale of 6.10 LMT of Indigenous 15:15:15.
> Highest ever sale of 2.98 LMT of Imported DAP.
> Highest ever sale of 1.20 LMT of Imported 20:20:0:13.
> First time the Company has sold PDM and PROM
under tie-up and sold 8,764 MTs & 2,982 MTs
respectively.
> Highest ever sale of 151 KL of Biola which is highest
sold quantity in last 10 years. Last year’s sale was
134 KL
INDUSTRIAL PRODUCTS DIVISION
Industrial Products Division has achieved the highest ever
sales turnover of ' 3406.03 Crore as against ' 2424.73
Crore during the previous year. Your Company has registered
increase in sales of IPD products and better realisation due
to lower RLNG prices and resultant reduction in cost of
production coupled with increasing demand and focussed
marketing strategies. Sales of Ammonium Nitrate Melt,
Dimethyl Acetamide, Sulphuric Acid, STP Water, Argon,
Refrigerant Ammonia, Nitrogen, Phosphoric Acid 27% &
Chalk was increased during the year.
During the year, your Company has achieved the following:
1. Highest ever sale of AN melt of 1,75,694 MT.
2. Highest ever sale of Refrigerant Ammonia of 1,046 MT.
3. Highest ever sale of Phosphoric Acid 5,175 MT.
EXPORTS
Considering the nature of products manufactured by your
Company and indigenous demand, the scope for export
is very limited. However, your Company successfully
popularized its Ammonium Bicarbonate (ABC) brand in the
overseas market through third party export. During financial
year 2022-23, your Company has done third party export of
Ammonium Bicarbonate (ABC) under “MRUDULA” brand to
the tune of ' 70.97 lakh as against ' 59.26 lakh during the
previous year.
IMPORT OF UREA ON GOVERNMENT ACCOUNT
• Your Company has been designated as State Trading
Enterprise (STE) in October, 2019 for Import of Urea
on Government Account. Based on the instructions of
Department of Fertilizers (DoF), RCF imported approx.
25.26 lakh MT quantity of Urea through issue of total
Two (2 Global tenders during the year 2022-23.)
• DOF has also assigned RCF the responsibility for
execution of Urea imports under Long term Agreement
(LTA) between M/s. OQ Trading & Govt. of India (DOF)
w.e.f. February 2022 onwards for a period of 3 years
(till January 2025), for a Quantity of 10 lakh MT /- 10%
per annum on FOB basis. Accordingly in FY 2022-23,
Twenty Three (23) Urea shipments have been shipped
from OQ Trading Ltd. under this LTA, with a total
quantity of approx. 10.01 Lakh MT.
• In order to cater to the emergent Fertilizer requirement
by Sri Lanka, based on the instructions of DOF, RCF
supplied approx. 65,000 MT of Urea to M/s. Colombo
Chemicals & Fertilizers Ltd. (CCFL), Sri lanka in two
shipments during the month of July & August 2022,
under Short term line of Credit of USD 55 MN provided
by Govt. of India to Govt. of Sri Lanka in order to avert
the Fertilizer shortage crisis in Sri Lanka.
• An MOU was signed between Govt. of India & Govt.
of Nepal on 28.02.22, wherein it has been decided
that Govt. of India will supply Urea & DAP (Fertilizers)
to Nepal for next five years period under the G2G
Agreement. Further RCF has been nominated as the
State Trading Enterprise (STE) by DOF for execution of
this MOU on behalf of Govt. of India and accordingly
based on this MOU a separate financial Agreement
was signed on 18.07.22 by RCF & M/s. Krishi Samagri
Company Limited (KSCL)-Nepal who is the nominated
agency by Govt. of Nepal. Under this agreement and
as per the initial requirement provided by M/s. KSCL-
Nepal, the first shipment of 30,593.30 MT Bagged Urea
have already been delivered to KSCL, Nepal at their
three designated warehouses in Biratnagar, Birgunj &
Bhairahawa located in Nepal.
ATMANIRBHAR BHARAT
Under ‘Atmanirbhar Bharat Abhiyan’, following initiatives
are taken by your Company:
• Increased Complex Fertilizer (NPK 15:15:15)
Production:
Your Company has enhanced the production of Suphala
NPK (15:15:15) by installation of additional spherodizer
and associated system. During FY 2022-23, highest
ever production (6.382 Lakh MT) of Suphala (15:15:15)
was achieved.
• Optimizing production of Industrial Chemicals:
Your Company is manufacturing various Industrial
Chemical products having high brand values. Plants
manufacturing industrial chemical products like
Ammonium Nitrate, Ammonium Bicarbonate, Nitric
Acid, Concentrated Nitric acid and Sulphuric acid are
operated at optimum level to meet the market demand.
• Setting up New AN Melt Plant:
In order, to meet the growing power need of the country,
enhancement in domestic production of AN melt is
very important. Therefore, your Company is setting¬
up new AN Melt plant of 425 MTPD at RCF Trombay
unit with latest and energy efficient technology. The
additional production from this AN melt project shall be
substituting the existing imports, leading to improved
availability of Coal to the power plants and hence in
turn shall ensure power security to the common people.
• Setting up Liquid Nano Urea plant:
Your Company is setting-up liquid Nano Urea plant of
75 KL per day at RCF Trombay unit using indigenous
technology, developed by M/s IFFCO. Nano Urea
is expected to be more efficient as compared to
conventional Urea.
• Setting up new NPK Fertilizer plant at Thal:
In order to increase domestic supply of DAP/NPK
fertilizer, your Company is exploring possibility of setting
up NPK Fertilizer of 1200 MTPD (in terms of DAP) plant
at Thal subject to economic viability.
AGRICULTURE EXTENSION ACTIVITIES
RCF has undertaken several agriculture extension activities
so as to educate the farmers on efficient use of agro-inputs
and provided know-how on improved and scientific methods
of cultivation contributing to increase in their farm yield.
Some of the services so undertaken during the year are as
under:
1. Soil Sample Analysis: 48,689 number of NPK and
13,718 number of Micro-nutrient analysis have been
done and Soil Health Cards distributed.
2. Kisan Suvidha Kendras: 100 Kisan Suvidha Kendras
were operated at different districts of Maharashtra
& Karnataka for educating & imparting Agricultural
extension services to the farmers at the field level,
3. Farmer Training Centres are operational at Thal and
Nagpur for imparting residential training to farmers.
A total of 44 programs were undertaken benefitting
2979 farmers during the year.
4. RCF Kisan Care Toll Free service 1800-22-3044 was
operated for imparting Agricultural information to
the farming community.
5. RCF Sheti Patrika: 7.20 lakh copies of RCF Sheti
Patrika (Marathi edition) covering the relevant
subjects pertaining to Agriculture and allied fields
were printed & distributed to farmers.
6. Doordarshan: RCF sponsored and promoted popular
TV programs like Krishi Samruddhichi Gurukilli for
sharing of Agriculture Knowledge and RCF Suphala
DD Sahyadri Krishi Sanman Puraskar for motivating
farmers.
7. Social Media: Information has been shared
through Social Media (WhatsApp, Facebook,
Twitter, Instagram, and You Tube) with handle @
rcfkisanmanch.
8. Agricultural Extension Services: 3218 Field
Demonstrations, 209 Soil Testing Days, 460 Farmers’
Meetings, 55 Krishi Melas, 10 Veterinary Camp/Rural
Sports, 58 Exhibitions, etc. were organized for the
benefit of the farmers.
9. Adoption of Villages for Promotion of City Compost:
6 villages from Maharashtra & Karnataka were
selected for promotion of City Compost.
MATERIAL CHANGES AND COMMITMENT
AFFECTING FINANCIAL POSITION OF THE
COMPANY
In the matter of Arbitration between Rashtriya Chemicals
and Fertilizers Limited ("the Claimant”) and Thermax
Limited, ("Contractor/ Respondent”) regarding recovery
of damages, losses, etc. for breakdown of two Gas Turbo
Generator (GTGs), an award has been passed by an
Arbitral Tribunal consisting of Sole Arbitrator on June 5,
2023. The Sole Arbitrator has passed an Award in favor of
RCF (Claimant) and directed the Contractor (Respondent)
to repair and reinstate both the GTGs at company’s plant
at their own cost and expenses under the defect liability
clause. The Arbitrator has also allowed the Company’s
claim on additional expenditure incurred on power and
directed the Contractor to pay ' 173. 72 Crores with
interest @ 10% from the date of claim and a sum of ' 95
Lakhs as arbitration cost to the Company.
RISK MANAGEMENT
Pursuant to Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Company has framed a Risk
Management Policy for risk assessment and minimization
procedures. The Risk Management Policy developed with
the objective of having a balanced approach towards
business plan and mitigating the associated risks, is
in place. The system identifies better management
practices to ensure greater degree of confidence amongst
various stakeholders and facilitates good Corporate
Governance practice. All risks associated with Operations,
Environment, Finance, Marketing, Human Resource,
Legal, Information Technology Security, Projects etc.,
are continuously monitored. The degree of impact of the
perceived risks is further graded into high, medium and
low and the probability of the occurrence of each risk is
also classified into Unlikely and likely. In order to mitigate
losses arising out of such perceived risks, appropriate
procedures are being adopted to contain the risks. Also
the practices adopted during emergencies, including
the communication system and mode of disseminating
information are periodically reviewed and updated to
minimize the impact on the Company. Quarterly report in
respect of the same is presented to the Board.
The Board of Directors had constituted Risk Management
Committee to identify elements of risk in different areas
of operations and to develop policy for actions associated
to mitigate the risks. The Committee on timely basis
informs the Board of Directors about risk assessment
and minimization procedures which in the opinion of the
Committee may threaten the existence of the Company.
The details of Risk Management Committee are included
in the Corporate Governance Report.
MAJOR EXPANSION AND DIVERSIFICATIONS
The status of major projects undertaken by your Company
is as under:
PROJECTS UNDER IMPLEMENTATION
Trombay Ammonia V Plant Revamp (KBR Scheme):
Ammonia-V revamp project is being implemented as a part
of energy improvement schemes to meet the new energy
norms for Trombay Unit. The estimated project cost is
' 101.88 Crore. The Basic Engineering is being done by
M/s KBR and Detail Engineering is being done by PDIL.
The scheme is envisaged to result in energy saving of 0.25
Gcal/MT of Ammonia. Expected project completion is by
April 2024.
New AN Melt Plant at Trombay:
Your Company is setting-up new AN Melt plant of 425
MTPD at RCF Trombay unit with latest and energy efficient
technology. The work order for execution of the project on
LSTK basis is awarded to M/s Larsen & Toubro Limited. The
estimated Project Cost is ' 187 Crore. Site work is in progress.
The project is scheduled to be completed by Sept. 2024.
ETP up-gradation at Thai:
Upgrading the existing Effluent Treatment Plant for treating
10,000 M3/day effluent to ensure the quality of treated
effluent as against discharge to sea is recycled for reuse in
plant. In 1st phase, around 5000 m3/day treated water will be
recycled. Estimated cost of 1st Phase is ' 66.72 Crore. Work
Order has been issued to M/s Ion Exchange Ltd.
In 2nd phase, balance effluent will be recycled, to achieve
"Zero Liquid Discharge” goal. Action for 2nd Phase has been
initiated. Detailed Feasibility Report (DFR) under preparation
by Consultant.
Nano Urea plant:
Nanotechnology is an emerging field with potential to provide
efficient nutrient management. Nano Urea is expected to
reduce the use of Urea. RCF is setting up Nano Urea Plant
of 75 KL per day capacity at Trombay based on IFFCO
Technology. As a part of getting Environment Clearance,
Public Consultation was held on 02.03.2023. The estimated
Project Cost is ' 238 Crore.
PROJECTS UNDER CONSIDERATION
Setting up new NPK Fertilizer plant at Thai
RCF is exploring possibility of setting up NPK Fertilizer plant
at Thal subject to its economic viability. Administrative
approval from DoF has been received. PDIL has been lined
up for preparation of Detailed Feasibility Report (DFR)
and Environment Impact Assessment (EIA) report for
Environment Clearance. As a part of getting Environment
Clearance, Public Consultation and Form-II for EC was
submitted on MOEF&CC’s Parivesh portal on 03.05.2023.
Tender for selection of LSTK Contractor has been floated.
The estimated Project Cost is ' 914.58 Crore including taxes,
duties and working capital
Zero Liquid Discharge scheme at Trombay
RCF is exploring the possibility of setting up Zero Effluent
Discharge (ZED) plant to treat the effluent generated and to
recover & recycle the water in the process at Trombay unit. The
objective of the scheme is to achieve Zero Liquid Discharge
(ZLD) for RCF Trombay. Detailed Feasibility Report (DFR)
received from Consultant. Estimated Project cost is ' 99.78
Crore. Project is expected to be completed by Sept. 2025.
Briquette Fired Boiler at RCF Thal
With an aim to produce low cost steam, RCF is setting up
Briquette Fired Boiler at RCF Thal. The low cost steam shall
help in reducing the variable cost of chemicals. Work Order is
awarded to M/s Forbesvyncke Pvt. Ltd. The estimated project
Capital Cost is ' 25.7 Crore plus taxes as applicable.
JOINT VENTURE PROJECTS
Coal Based Fertilizer Plant at Talcher:
Your Company, along with Coal India Limited (CIL), Gas
Authority of India Limited (GAIL) and Fertilizer Corporation of
India Limited (FCIL), is setting-up a Coal Gasification based
fertilizer complex, comprising of 2200 MTPD Ammonia plant
and 3850 MTPD Urea plant, at FCIL, Talcher, Odisha. Land
and certain facilities needed for the project are provided by
FCIL. The project will utilize state-of-the-art Coal Gasification
Technology from M/s Air Liquid Products (erstwhile M/s Shell
Eastern). A joint venture company ‘Talcher Fertilizers Limited’
has been incorporated for establishing and operating Coal
Gasification based Fertilizer complex.
The project is of strategic importance for the country as it
aims to make breakthrough for an alternative source of
feedstock in the form of abundantly available coal from
domestic sources in place of natural gas. Success of this
project is expected to be a game changer and shall pave a
way forward to the production of chemicals and fertilizers
from coal leading to lesser RLNG imports. It will also help
in meeting much needed Urea production capacity for the
eastern part of the Country.
The estimated Project capital cost is approx. ' 17,080.69
(±10%) Crore (RCF share is ' 2,169.67 (±10%) Crore).
M/s Wuhuan Engineering, China has been engaged as
LSTK contractor for Coal Gasification and Ammonia/Urea
packages of the project valuing approx. ' 8000 Crore. Site
activities are in progress. The commissioning of the project is
scheduled to be completed by September 2024.
SUBSIDIARY AND OTHER JOINT VENTURE
COMPANIES
A separate statement containing the salient features
of financial statements of all the joint ventures of your
Company forms part of consolidated financial statements
in compliance with Section 129 and other applicable
provisions, if any, of the Companies Act, 2013. The financial
statements of the joint ventures and related information are
available for inspection by the members electronically up to
the date of the Annual General Meeting (AGM) as required
under Section 136 of the Companies Act, 2013. Any member
seeking to inspect such documents are requested to write
to the Company at investorcommunucations@rcfltd.com.
The financial statements including the consolidated financial
statements and all other documents required to be attached
to this report have been uploaded on the website of your
Company (www.rcfltd.com).
JOINT VENTURE COMPANY
FACT-RCF Building Products Ltd. (FRBL), Kochi
Your Company has formed a Joint Venture Company with
Fertilizers and Chemicals Travancore Limited (FACT) by
incorporating FACT-RCF Building Products Ltd. to set up a
Rapidwall project at Kochi. Both your Company and FACT
have 50:50 equity holding in the Company. Production has
been suspended owing to expected takeover of the Plant
& Machinery by the ARC. The company is undertaking only
project management services at present.
The audited financial statements of FRBL as at March
31,2023 reported loss of ' 7.90 Crore, thus resulting in
accumulated loss of ' 216.89 Crore.
Urvarak Videsh Limited (UVL)
Urvarak Videsh Limited (UVL) was incorporated on 18th
July, 2008 as Special Purpose Vehicle (SPV) with equity
participation of Rashtriya Chemicals and Fertilizers
Limited(RCF), National Fertilizers Limited (NFL) and Krishak
Bharti Co-operative Limited (KRIBHCO) with the object of
setting up joint venture in India and abroad for manufacturing,
mining, long term tie ups for Nitrogenous, Phosphatic and
Potassic Fertilizers and fertilizer raw materials including
exploring the possibility of making investments and
rendering Consultancy services, etc. The company explored
many alternatives to take up various projects but the same
did not fructify due to want of funds as UVL business
objective requires heavy capital investment. As the company
could not take up any business, the Board of UVL has
decided to declare the company as a Dormant company
for the time being in terms of the provision of section 455 of
the Companies Act, 2013 as the keeping the status of the
company as active was not serving any purpose.
The Audited financial statements of UVL as at March
31, 2023 reported loss of ' 58,500/-, thus resulting in
accumulated loss of ' 0.49 Crore.
Talcher Fertilizers Limited (TFL)
Your Company has formed a Joint Venture company, with
Coal India Limited (CIL), GAIL (India) Limited (GAIL) and
Fertilizer Corporation of India Limited (FCIL), with the name
Talcher Fertilizers Limited for revival of FCIL’s fertilizer unit
at Talcher by establishing and operating coal gasification
based fertilizer complex. Equity participation of RCF, CIL
and GAIL is 31.85 % each and that of FCIL is 4.45%. The
company is yet to start its operations.
During the year, your Company has infused ' Nil Crore in TFL.
The audited financial statements of the said Company as at
March,31 2023 reported a loss of ' 2.52 Crore, thus reducing
in accumulated loss to ' 24.66 Crore.
Consolidated Financial Statement
The Consolidated Financial Statement of your Company has
been prepared by taking into consideration Joint Venture
Companies i.e. FACT-RCF Building Products Limited, Urvarak
Videsh Limited and Talcher Fertilizers Limited.
The Consolidated financial statements have been prepared
under equity method along with Company’s standalone
financial statements.
SUMMARY OF FINANCIAL PERFORMANCE
|
Particulars
|
2022-23
|
2021-22
|
|
Total Income (Net)
|
21594.84
|
12948.62
|
|
Total Operating Expenses
|
19978.35
|
11822.90
|
|
Operational Profit
|
1616.49
|
1125.72
|
|
Depreciation/Impairment
|
212.12
|
183.55
|
|
Finance Cost
|
223.86
|
125.89
|
|
Share /(loss) of Associates/JVs
|
(0.84)
|
(1.97)
|
|
Profit before Exceptional Item
|
1179.67
|
814.31
|
|
Exceptional Item (income) /
Expense
|
(93.47)
|
(127.63)
|
|
Profit before Tax
|
1273.14
|
941.94
|
|
Provision for Tax (including
deferred Tax liability/ Asset)
|
306.83
|
239.55
|
|
Net Profit after tax
|
966.31
|
702.39
|
RESEARCH AND DEVELOPMENT
Your Company has taken up several Research and
Development (R & D) projects, some of which are for
commercial scale design and engineering. They are as
under:
Vipula- Suspension NPK Fertilizer
Vipula - a new innovative Suspension NPK Fertilizer with
NPK 10:10:10 was launched on 6th May, 2022 at the hands
of Honourable Union State Minister for Chemical and
Fertilizers Shri Bhagwanth Khuba in presence of C&MD
and other Senior Managers of RCF. Product in suspension
form is formulated for ease of application. The suspension
fertilizers consist of insoluble solid active ingredients
dispersed (normally at high concentration) in water.
Suspension concentrates have shown a rapid development
in the past, mainly due to their several benefits such as
no dust, no problem of toxicity or flammability due to
solvents and good efficiency due to the smaller particle
size. It is also in low packaging volume.
Shubhada - Multi-Micro Nutrient Fertilizer:
Addressing ‘Hidden Hunger’
Shubhada a Micronutrient Mixture Fertilizer contains various
nutrients and controls physiological disorders and nutrient
deficiencies. It promotes essential plant processes and
growth, which translates into nutrient-rich food for animals
and humans, improves absorption and utilization of other
nutrients applied to the soil, increases yield and ensures
better quality. The plant operations were commenced on
17th December 2022.
Polyhouse: Precision Agriculture
Polyhouse is a type of greenhouse where specialized
polythene sheet is used as a covering material under
which the crops can be grown in partially or fully controlled
climatic conditions. It protects the crops from wind, rain,
radiation, precipitation and other climatic factors. It creates
microclimate surrounding the crops that help in maximum
growth regarding production and quality. With a maximum
level of automation, the number of manual activities,
dependency on labor and overall labor cost can be drastically
reduced.
Hydroponics is a method of growing plants in a water
based, nutrient rich solution without soil. It is fast becoming
a popular around the world due to its more sustainable
approach than the usual growing methods - soil cultivation.
In view of the above, a polyhouse cum hydroponic unit of
around one acre is being constructed at opposite to ETP
plant. The unit will be helpful for testing new agro products
on different crops round the year irrespective of the season
and weather conditions.
The hydroponics facility (Polyhouse) is ready for conducting
trials.
Organic fertilizer: PROM
PROM is a phosphate-rich organic manure that improves the
physical, chemical, and biological properties of the soil and
increases crop production. It improves the resistance power of
crops against various diseases. It can be used for all cereals,
pulses, vegetables, fruits, and flowers for all plants Flowers,
vegetables or crops. It Increases availability of nutrients in
soil and plant. CO2 is released during decomposition and
helps to reduce the alkalinity of the soil. The organic manure
ensures availability of phosphate for the next crop unlike
DAP (Diammonium Phosphate) that has to be applied for
every crop. Use of organic manure reduces the soil demand
for phosphate. PROM can cut down subsidy outflow on DAP.
Phosphate rich organic manure (PROM) has been formulated
successfully and this meets all the norms of Fertilizer
(Control) Order (FCO), 1985 (Amended July,2021). In view
of the national vision of "Atmanirbhar Bharat” and to meet
the growing domestic demand for organic fertilizers RCF is
setting up a new 18000 MTPA PROM plant having latest
environment friendly technology.
Sulphur Coated Urea (SCU): Urea Gold
Rising concerns about over eutrophication, stringent
regulations and penalties on conventional fertilizers. Around
50-70% of added urea is lost to the environment. Use of
sulphur coating on urea can help in slow release of nitrogen
and contribute to improved nitrogen use efficiency.
Sulphur as a plant nutrient has been neglected for long
in fertilizer pricing and policy. In 2003, the Government
recognized the place of sulphur in sulphur fertilizers and the
sulphur content was included in the product specifications
for all S-containing materials included sulphates of
micronutrients.
The R&D Department through in-house innovations has
successfully formulated Sulphur Coated Urea (SCU) named
as Urea Gold. The SCU is registered in FCO as per the gazette
dated 16th Aug 2013.
Urea Gold addresses the most important issue of nutrient
use efficiency (NUE) of urea. The NUE of urea is about
30%. The use of Sulphur coating on urea results in providing
the most important secondary nutrient to the crops added
with slow release of nitrogen with improved nitrogen use
efficiency. Urea Gold reduces nitrogen leaching in flooded
rice and wheat fields. The application of slow release of
fertilizers can potentially decrease fertilizer use by 20 to 30
percent of the recommended rate of a conventional fertilizer
while obtaining the same yield. The plant will be ready by
July 2023.
More with less: Nano fertilizer
Low cost, eco-friendly and sustainable means of achieving
agricultural intensification and improving productivity can be
adopted by use of Nano fertilizer. It enhances the availability
and use of vital soil nutrients. R&D has developed Nano urea,
Nano NPK and Nano DAP at Lab scale. Toxicological studies
of Nano Urea conducted at Indian Institute of Toxicological
Research (IITR), Lucknow showed no toxic effect on any live
organism.
In order to test the efficacy of Nano urea, field trials are
being conducted at various Indian Council of Agricultural
Research (ICAR) Institutes or State Agricultural Universities
(SAUs) at ten different locations. Final results are expected
by December 2023.
Expansion of value added products (VAP): Expanding
horizon
Balanced nutrient management works on the 4R concept:
The right fertilizer, right rate of usage, right time and right
place of application. The aim is to shift focus on micronutrients
that are sometimes more important than primary nutrients.
Through its aim of feeding the crop and not the soil, balanced
nutrient management considers nutrient reserve of the soil,
nutrient removal by crop, targeted yield, the economics of
fertilizers and profitability, farmers’ investment ability, agro¬
techniques, soil moisture regime, soil physical environment
and adverse soil conditions such as salinity, alkalinity and
acidity.
Utilization of VAP can fulfil the concept of balanced
or integrated nutrient management. RCF is already
manufacturing, value added products (VAP) such as Bio¬
fertilizers, Micronutrient fertilizers, pH Balancer, Bio stimulants
and Silicon fertilizers which are gaining significance in the
market. The demand for these products are increasing year
on year basis. The present installed capacity is not sufficient
to cater the increased market demand.
Seeing the increasing demand of various products, a new
manufacturing setup with higher capacity for production
of various VAPs is being installed at Trombay unit. The
installation, supply and commissioning of manufacturing
unit is expected to be completed by December 2023.
New product Development
The R&D of your Company is working on various innovative
products viz. suspension fertilizer/ liquid fertilizer to address
the changing scenario.
a) Nano fertilizers
Nano Micronutrients, Nano Sulphur, Nano Potash etc.
have been developed at R&D. These newly developed
Nano fertilizer are being tested for its stability. Pot
culture studies of the same are being conducted at In¬
house Agriculture field as well as in Polyhouse. After
successful trial results same will be commercialized.
In future, research work on different range of nano
fertilizers will be undertaken.
b) Suspension fertilizer
Suspension fertilizers are defined as liquid fertilizers in
which nutrients are present in an amount exceeding
their solubility. They are completely dissolved in water
and contain components insoluble in a dispersed
form. The fertilizer salt crystals are kept in solution
by a stabilizing agent that swells in the solution to
form a viscosity-increasing gel, thereby preventing
the sedimentation process of these particles.
Major advantages suspension fertilizers are:
a) combine benefits of liquid and solid fertilizers, b) high
concentration of nutrients maintaining in liquid form,
c) Nutrient concentration is similar to the solid fertilizers.
In view of the above, following suspension fertilizers are
being developed and tested for their quality.
a) NK 6:0:18 with CaO (5%), MgO (2%) and B (0.5¬
0.8%) (suspension)
b) Calcium Nitrate (10%N & CaO 15%) Fortified
with MgO (2%)
c) NPK 11:11:8 fortified with Zinc (0.7%) and Boron
(0.5-0.7%)
d) NPK 8:8:8 fortified with trace elements
e) N:P:K 10:26:26/ NPK 24:24:0 /NPK 28:28:0/NPK
12:32:16
f) Multi-nutrient grades: Grade with primary¬
secondary and micro-nutrients.
c) Crop specific 100% Water Soluble fertilizers
Crop specific 100% water soluble grades are prepared
for:
a) Grapes: 15:28:6, 6:34:17, 6:0:37:16 (N:P:K:S) are
formulated which are suitable for various growth
stages to enhance the yield and fruit quality.
b) Tomato: Grades are formulated for various
growth stages.
c) Onion: Grades are formulated for various growth
stages.
d) Cotton: Grade is formulated to manage the
reddening of cotton leaves.
d) Secondary nutrient Fertilizer
Recently, the deficiency of secondary nutrients (Ca,
Mg, S) has been reported to be wide spread in Indian
soils. These are now emerging as most limiting
factor in enhancing crop productivity. Hence, State
Agriculture Department has notified a new secondary
nutrient fertilizer grade i.e. Ca:Mg:S :: 6:2:4 in powder
or granular form.
Above grade is developed in powder form as well
as in granular form. Granular product can be
manufactured in PROM facility.
e) Liquid Fertilizers
The following liquid grades are developed by R&D
which are being testes for their stability.
a) Chelated Zinc as Zinc Glycine 6.80%
b) Chelated Calcium as Calcium Glycine 6.0%
c) Chelated Boron as Boron Glycine 5.0%
d) N:P:K 8:8:8
e) Conc. Liquid Calcium: 11%
Collaborative Research: MoU with Indian Council of
Agricultural Research (ICAR) Institutes and State
Agricultural Universities (SAUs)
Collaboration with Indian Council of Agricultural
Research (ICAR) Institutes and State Agricultural
Universities (SAUs) was done for carrying out field trials
of Nano Urea, Nano DAP, Nano NPK and Geola - Bio
fertiliser product. These trials will support immensely
for marketing of newly developed products.
MOU has been signed between RCF & Central Coffee
Research Institute, (CCRI), Coffee Board of India,
Karnataka from 2021-2023 for "Evaluation of RCF
Chalk on different crops”. Report showed encouraging
yield results.
Promotional field trials: Seeing is believing
"Seeing is believing” concept helps a customer to adopt
the new products. The demonstration helps the farmers
to have know how of the new products. Promotional field
trials (PFT) help to convince the growers by comparing the
new product with their traditional product and practices.
Government of India is also pushing for achieving
sustainability in agriculture and rural areas across the
nation through the adoption of Integrated Nutrient
Management (INM).
In order to help farming a community and maximizing
agricultural yield, RCF has developed balanced nutrient
package for Pomegranate, Onion, Sugarcane, Coconut,
Mango, Cotton, Banana, Grapes and for many vegetables
crops. It helps in fulfilling sustainable approach to
resource usage than the usual growing methods or over
use of fertilizers.
In the recent past RCF had conducted numerous PFTs on
farmer’s field in various states either in the form of Front
Line Demonstrations (FLDs) and or Result demonstrations
(RDs). RCFs Marketing person are agricultural backgrounds
and qualifications which have the advantage for making
ease understanding the new concept of Agriculture to the
Indian farmers.
Presently, to popularize RCFs new and existing products
among farmers, multiple promotional field trials are being
conducted at Konkan (Ratnagiri and Sindhudurg) and
central Maharashtra (Nashik) region on crops like Mango,
Cashew, Coconut and Onion. Around 1200 trees have been
undertaken for product demonstrations in Konkan region.
ENVIRONMENT MANAGEMENT AND
POLLUTION CONTROL
Your Company is committed to ensuring clean environment,
beyond satisfying all stipulated requirements laid down
by the statutory authorities, meeting the expectation of
stake holders around its operating units.
Your Company has established ISO 14001 compliant
Environment Management System (EMS) along with Safety
Management System (ISO 45001), Quality Management
System (ISO 9001), and Energy Management System
(ISO 50001). Certification for IFA Protect & Sustain
Product Stewardship System of international standard
for Safety, environment and product security at its both
the manufacturing units. The Management Systems are
constantly upgraded, periodic audits and Management
Review conducted to ensure compliance and continual
improvement. Apart from Stack monitors, which continuously
monitor the emissions, four fixed ambient air quality
monitoring stations are in place, at both Trombay and Thal,
to monitor ammonia, NOx, SO2, Particulate matter (PM10 &
PM2.5) & metrological parameters. These monitoring units
are connected to MPCB and CPCB servers for continuous
monitoring online data of air quality, effluent parameters.
At both unit, Third party monitoring for stack, ambient air
quality (Dust, Ammonia, NOx, SO2) and ETP overflow (as
per consent parameters) is being done by MoEFCC approved
laboratory once in a month. As you are aware RCF uses
clean fuel to reduce the Green House Gas emission, efforts
are taken to minimize emissions with Reduce, Recycle &
Reuse schemes.
The Effluent Treatment plants (ETP) at Trombay and Thal
unit have ensured that the environment in and around the
operating units are fully protected. Environmental safety
of neighbours around operating units are taken care.
Various schemes with state of the art technologies and
modernization schemes are implanted to reduce energy
consumption and wastages. As a proactive measure, RCF
Trombay unit has two nos. of Sewage treatment Plants to
treat sewage of Mumbai city & use the purified water after
treatment for industrial purpose, thereby saving equivalent
quantity of potable water for consumption by Mumbaikars.
At Trombay unit, Sludge generated in Effluent Treatment
Plant, Sulphur Sludge Generated in Sulphuric Acid plant and
waste streams of effluents from complex fertilizer plants are
recycled back in the processes. 3- R strategy (Reduce, Reuse
and Recycle) is employed by way of recycling the sludge
generated in ETP, Sulphur sludge generated in Sulphuric
Acid Plant is used in Suphala plant for recovery of nutrients.
At Thal Unit, ETP Up gradation Project is in progress and
expected to be completed by August 2023. After completion
of this project, 5,300 M3/day will be used for industrial use
from recycleling 9,000 M3/day effluent using state of art
technology. It will reduce burden on fresh water resources.
The integrated Effluent Treatment Plant in both Units
ensures that the effluent discharged from the factory meets
the statutory requirements laid down by the State Pollution
Control Board.
Trombay and Thal units have taken up a massive
plantation drive in factory premises, in residential colony
and surrounding areas.
For increasing awareness regarding environment and
safety, public awareness campaign programmes are
arranged by Trombay and Thal units by providing
demonstrations to local youth, college and school students,
housing societis, Panchayat offices, ladies club members
and household members in the adjoining localities.
As per International Fertilizer Association (IFA), RCF’s safety
benchmarking rating is 19 out of 61 participating fertiliser
companies for calender year 2021.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
As part of its initiatives under "Corporate Social
Responsibility’, your Company has undertaken several
projects in the areas of rural development, promoting
health care, Nutrition and education aimed for the benefit
of needy and for general good of the society. These projects
are in accordance with Schedule VII of the Companies Act,
2013 and the Company’s CSR Policy. The report on CSR
activities as required under the Companies (Corporate Social
Responsibility Policy) Rules, 2014, is annexed as Annexure
-I, and forms an integral part of this report. During the year,
your Company has spent ' 11.93 Crore including ' 0.49
Crore set off for succeeding financial year on CSR activities.
The activities, in brief, are as under:
Medical Equipment to District Civil Hospital, Alibag
RCF company has provided the medical equipment to
the civil hospital such as Phaco Emulsification Machine,
OCT Machine, Surgical Microscope, Fully Auto Horz
Sterilizer, Vert Double Drum Sterilizer Ortho Operation
Table, Electronic Operation Table, Instrument Cabinet for
OT, ABG Machine, Tourniquet Machine, Anesthesia Work
Station, Attendant Revolving stool for Hospital, Standard
Medical Stethoscope, Blood Pressure Apparatus.
Supply of drinking water to the villages
RCF has been providing drinking water for last 25 years
to seven villages around Thal unit through pipelines laid
down from the water reservoir in the unit. More than
20,000 residents of the villages got benefited of the
scheme.
The villages of Thal, Navgaon, Vaishet, Tudal, Boris-Gunjis,
Bhal, which are under RCF, Thal factory, are being supplied
with drinking water by RCF.
Nearly 20,000 families are getting the benefit of this
scheme. The bill for this water supplied by MIDC is paid
by RCF Company.
Garbage Vans to Villages:
Under the Swachhta Abhiyaan, the RCF Thal has given
E-garbage carts to the Gram Panchayats in the factory
area and other remote areas. During the years RCF has
been covered all grampanchayats i.e. Navgaon, Kurul,
Jirad, Awas, Mule, Mann villages. These vehicles are
provided to them as per their request.
Medical Camps: RCF has been arranged free health check¬
up, Eye and dental check- up and distribution of free
medicines in the vicinity of Chembur. We have organised
more than 15 health camp in the surrounding area with
the help of local NGOs.
Medicines to Civil Hospital for HIV patients: RCF has
supply the required medicines to HIV department of
district civil hospital undr this initivitive. These medicines
are distributed free of cost as per the need of the patient
who cannot afford to buy these medicines. RCF is a proud
contributor in AIDS Control Mission of Nation.
Medical equipment to Primary Healthcare centre: RCF has
provided medical equipments to 9 sub centers of Primary
Healthcare centre Dhokawade under CSR. All sub-centres
are under Primary Healthcare center Dhokawade, Taluka
Alibag, District Raigad provide free medical services to
locals:
Ambulance to needy: RCF has provided financial assistance
for procurement of ambulance for providing free services in
Roha Taluka, Raigad, and Sindurdurg Distirict. This facility
will be used as a transportation mode for the sick and injured
people located at a distance to get them to hospital
Rural Development- Repairing of Roads:
RCF has completed road repairing work of local villages in
the vicinity of RCF Thal unit under CSR. The Company has
repaired local Roads from Thal Navagaon Road, Boris Gunjis
and local Road from Chondhi naka to Kihim bus stand road
under the rural development for for good transportation of
villagers.
Financial Assistance for furniture of paediatric ward:
RCF Ltd. has provided financial assistance to Central
Railway Women ‘s Welfare Foundation by giving financial
assistance for Dr. Babasaheb Ambedkar memorial hospital,
Byculla, Mumbai which caters to patient of Central Rly and
all Zones of Indian Railway along with CGHS Beneficiaries
and general public. The fund is utilized for the purchase of
Hospital Furniture for use in Pediatric ICU & Pediatric Ward.
Construction of Toilet block and drinking water facilities
to school : RCF has assist to Shikshan Prasarak Mandal,
Kurundwad a well-known educational institution working in
the field of Education from the last 97 years for the building
of Toilet and Providing Fresh drinking water facility in the
school of Kurundwad, District Kolhapur, Maharashtra.
Children are the gems of the future and RCF believes that
every child are special and needed to be treated with
empathy and love.
Women Empowerment:
RCF has provided financial assistance to Asmita Mahila
Mandal for distribution of mini flour mills and sewing
machines to the underprivileged women of slums in Chembur.
This will help these women to learn their livelihood and
support their family. Medical Camps for Women and girls
about the menstrual hygiene through nirtyanjali Ngo.
Finnancial assistance for the installation of sanitary pad
manufacturing unit at Koraon block, U.P
Aspirational District (Washim)
Government of India has issued guideline to CPSEs related
to utilization of CSR funds in a focussed manner towards
national priorities by adopting a theme based approach.
As per the DPE guidelines common theme identified for
the year 2022-23 was Health Care & Nutrition.
RCF has selected Washim Dist. which is one of the
Aspirational district in Maharashtra and implemented
following schemes:
1. Skill development programme for youth:
RCF has joined hands with OSSF which is working in
the field of education, and skill development activities
all over India.
This skill development program will focus on Basic
skills of soft skills, computer and communication
aspects and exposure to domestic and international
market. The sole objective of this initiative is to make
educated youth ready for employment
2. Education to secondary students:
RCF has supported the project “Anando” at Washim
District, Maharashtra. Under this project Anando, LOLT
supports underprivileged rural children to complete their
secondary education (7th to 10th standard). It promotes
importance of secondary education of rural children to
empower them.
EFFECTIVE IMPLEMENTATION OF PUBLIC
PROCUREMENT POLICY FOR MICRO AND
SMALL ENTERPRISES (MSEs)
Government of India, Ministry of Micro, Small and Medium
Enterprises, vide order dated 23rd March, 2012, notified
the public procurement policy in respect of procurement
of goods and services produced and provided by Micro,
Small and Medium Enterprises and further amended it
on 9th November 2018 vide Government of lndia Gazette
Notification S.O. 5670(E) dated 9th November, 2018.
With amendment in Public procurement policy for Micro
& Small Enterprises (MSEs) order, 2012 vide GoI Gazette
Notification S.O. 5670(E) dated 9th November, 2018, the
percentage target of procurement of goods and services by
Government Departments/CPSEs from MSEs is increased
from 20% to at least 25% along with the provision of
minimum 3% reservation for Women owned MSEs within
this 25% reservation. This amendment is made applicable
from 9th Nov 2018. Due to the very nature of operations
of our Company, the procurement targets could not be
achieved in the year 2022-23.
With the efforts taken by the Company, the procurement
from MSEs, cost of the items procured through MSEs at
both Trombay and Thal units is ' 608.49 Crore out of the
total procurement cost of ' 1515.45 Crore (excluding raw
material, gas, water, electricity, catalysts, proprietary items
etc.) which works out to be 40.15 %. The procurement from
MSEs owned by SC/ST Entrepreneurs is ' 4.13 Crore which
is 0.27 % and procurement from women owned MSEs is
' 7.16 Crore which is 0.47 % of the total procurement of the
year 2022-23. The percentage procurement is calculated
excluding Raw materials, gas, water, electricity, catalyst and
proprietary items which cannot be procured from MSEs.
SUSTAINABLE DEVELOPMENT
Your Company has taken up several Sustainable development
activities including the following:
New Sewage Treatment plant
Your Company is running Two Sewage Treatment Plants
(STPs) at Trombay Unit with each plant having capacity to
treat around 22.75 Million Litres per Day (MLD) of sewage
received from MCGM which otherwise would have been
drained in to the sea after preliminary treatment. The STP
plants treat waste sewage generated in the city and convert
it into treated water. Both plants together generate about 30
MLD of treated water which is being used in our plants as
process water. A part of treated water generated is supplied
to M/s BPCL. Both STP plants of Your Company are of great
value to residents of Mumbai and Society at large besides
improving reliability of operations of RCF Trombay Unit.
During the year 2022-23, about 8780.12 MLD of treated
water was generated at both STP plants.
Solar Power Plant
As part of achieving ecologically sustainable growth, Your
Company has forayed into solar power generation. Your
Company has set up a 2 MWp ground mounted Photovoltaic
Solar power plant in Trombay Unit. In addition to this, Your
Company has commissioned solar rooftop facilities at Thal
and Trombay with an aggregate capacity of 2.17 MWp. The
power generated is used for captive consumption, thereby
reducing your Company’s power import to the equivalent
extent.
The green power generated by solar plants replaces the
conventional power generated through burning of fossil fuels
leading to reduction in overall Greenhouse gas emissions.
At RCF, during the year 2022-23, 4,217 MWh of solar power
was generated. Also, during the year 2022-23, 1,852 no of
Solar Renewable Energy Certificates (RECs) were generated.
VIGILANCE
Vigilance Department is headed by Shri Sameer Rastogi (IFS-
1988), who holds the charge of Chief Vigilance Officer of the
Company. He leads a team of officers drawn from various
functional departments and placed in Corporate Office
at Mumbai and at RCF Thal Unit. Vigilance Department is
committed to bring greater transparency, fairness and
efficiency in all type of transactions and execution of works in
the Company, in line with the Central Vigilance Commission’s
guidelines.
As part of Preventive Vigilance, efforts are made to keep
a watch on the various activities of Corporate Office,
Trombay Unit, Thal Unit and Marketing offices situated
across the country through regular inspections and surprise
checks. Systemic improvements and corrective actions
are suggested wherever necessary. The ideology that
"All officers are Vigilance Officers” is implemented in the
Company. Support of all officers is taken in implementation
of Vigilance directives.
Vigilance Department has focused on spreading awareness
on rules/regulations, procedures and solicited information/
complaints from all regarding malpractices or corruption.
Preventive Vigilance Training Program based on CVC’s
“Naitik” approach is imparted by in house faculties to
Management Trainees, Junior and Middle Level Managers.
Vigilance Department’s Online Grievance Management
Portal is implemented for lodging of complaints. Efforts are
made to ensure their speedy Redressal.
Vigilance department has been front-runner in identifying
the advantages of leveraging technology and automation
in procurement, recruitment and service delivery etc. Some
of the initiatives for promoting transparency and ensuring
well-informed decisions by making use of technology for
improving compliance are:
> Contract compliance Data in SAP system.
> Program developed and implemented in Intranet
website for display of list of work orders/ Contracts
expiring in next 4 months .
> Facility developed and implemented to display
circulars on RCF Parivar App.
> Upgradation in Medical Bill reimbursement system.
As a recognition of Vigilance Department’s efforts, your
Company won the Governance Now 9th Edition PSU Award
in the category "Technology initiative in Vigilance in PSUs”
during the awards ceremony held on 16th February, 2023
at New Delhi.
Precursor campaign to Vigilance Awareness Week (VAW)-
2022 was conducted during the period 16th August to
15th November, 2022 that focused on Housekeeping and
preventive vigilance activities like Property management,
Management of Assets, Record keeping, etc. VAW-2022
was observed from 31st October to 6th November, 2022
during which employees, family members, school and
college children, farmers, dealers, vendors participated
wholeheartedly in various events such as Street play,
Slogan, Poster-making and Quiz competitions. The details
of activities conducted during VAW-2022 are as follows:
Vigilance Awareness Week (VAW) - 2022
In accordance with the instructions contained in CVC’S
Circular No.022/VGL/029 dated 08.09.2022, the Vigilance
Awareness Week 2022, was observed in Rashtriya Chemicals
and Fertilizers Limited from 31.10.2022 to 06.11.2022 in
both its manufacturing units located at Trombay and Thal.
The week was also observed in various Marketing Offices
located throughout the country in line with the theme for this
year, "Corruption free India for a Developed Nation”.
An emphasis was laid on cultivating the virtue of integrity
and honesty in personal and professional lives and the
importance of moral and ethical values for growth of the
organization and the nation as a whole. In this connection
following programmes were organized involving different
stakeholders of the company:
s Administration of Integrity Pledge : Around 968
Employees from 35 offices located in Trombay & Thal
unit and marketing offices spread over 18 cities in
12 states participated. Employees, vendors, dealers
were encouraged to take e-integrity pledge.
s Distribution of Badges / Banners : Badges (1200 Nos.)
were distributed among Employees, Vendors, and
Dealers etc. to increase Vigilance awareness. 27 nos.
Banners were displayed at both factory premises,
at major marketing offices & residential colonies for
better outreach to citizens.
s Guest lecture by eminent speaker : Lecture was
organized for RCF employees at Trombay on
02.11.2022 and at Thal on 03.11.2023 and marketing
department officers joined online simultaneously
on VAW-2022 theme "Corruption free India for a
developed Nation”. Mr. Anand Kulkarni, a renowned
life-coach explained the participants how to self-
introspect about independent Nation and include
responsibilities and self-managed behavior of citizens
towards a self-reliant and vigilant nation. Total 147
employees attended the lecture.
s Involvement of Employees & stakeholders : Awareness
Walkathon, Elocution, Slogan, Quiz and Street Play
competitions were organized for employees and their
family members.
s Involvement of Dealers/Actual users, Retailers and
Farmers : Online Quiz competitions were organized
for Fertilizer dealers/ retailers and farmers, IPD
dealers and users. More than 300 farmers and
dealers participated in this quiz competitions.
s Involvement of school / college children : 178 entries
were received in Essay competition and 112 entries
were received in Poster competition organized for
school students from class 5 to 10, and 14 college
students participated in Blog Writing competition
organized for college students from class 11 onwards.
s Organized Dealers Meet : A Dealers Meet was
organized on 04.11.2022 at Krishi Vigyan Kendra,
Rajgurunagar based on VAW 2022 theme i.e.
"Corruption free India for a developed nation” with an
aim to spread awareness and apprise the dealers on
how to get benefits from the transparent procedures
of RCF and its marketing network.
s Organized “Awareness Gram Sabha” : RCF arranged
"Awareness Gram Sabha” at Kalus, Taluka-Khed ,
District- Pune on 04.11.2022 to sensitize citizen on
the ill effects of Corruption.
s Felicitation Program : Winners of all competitions in
each category were felicitated at Corporate office-
Priyadarshini, Mumbai in presence of CMD, RCF, CVO,
Directors and senior officials. All out station winners
joined the Felicitation function on e-platform from
their respective locations i.e. Thal, Beed, Bhandara
and Nagpur
MANAGEMENT DISCUSSION AND ANALYSIS
REPORT
Management Discussion and Analysis report for the year
under regulations 34(2)(e) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, highlighting
the industry structure and developments, opportunities and
threats, future outlook, risk and concerns etc. is annexed as
Annexure II and form an integral part of this report.
PUBLIC DEPOSIT
Your Company has not accepted any deposits, within the
meaning of section 73 of the Companies Act, 2013, read
with the Companies (Acceptance of Deposits) Rules, 2014.
OFFICIAL LANGUAGE POLICY
Your Company has fully endeavoured to implement the
provisions of Official Language Act, 1963 and the policy
of the Government. Publicity material and literature for
employees and farmers are made available in Hindi and
other regional languages.
AUDITORS
a. STATUTORY AUDITORS AND THEIR REPORT
The Comptroller and Auditor General of India (CAG) has
appointed, M/s M. M. Nissim & Co LLP (Firm Registration
Number: 107122W / W100672) and M/s. Gokhale &
Sathe (Firm Registration Number: 103264W) as Joint
Statutory Auditors of your Company for the financial
year 2022-23. The Auditors would be retiring at the
conclusion of the Forty Fifth Annual General Meeting.
There are no qualifications, reservations or adverse
remarks made by Statutory Auditors, in their report.
The Statutory Auditors for the financial year 2023¬
24 will be appointed by the CAG. However, their
remuneration is required to be fixed at the AGM by the
members.
b. COST AUDITORS AND THEIR REPORT
Your Directors, on the recommendation of Audit
Committee, has appointed M/s K.G. Goyal & Associates,
Cost Accountants (Registration No. FRN000024),as
Cost Auditor to audit the cost accounts of the Company
for the year 2023-24 on a remuneration of ' 2.50 lakh
excluding applicable taxes. As required under the
Companies Act, 2013, the remuneration payable to cost
Auditor is required to be placed before the members
in a general meeting for their ratification. Accordingly,
a resolution seeking Members’ approval for the
remuneration payable to M/s K.G. Goyal & Associates
as Cost Auditor forms part of the notice convening the
Annual General Meeting for their ratification.
The Companies (Cost Records and Audit) Rules, 2014
and amendments thereof, the Company is required to
maintain cost accounting records in respect of certain
specified products and accordingly such accounts and
records are made and maintained in the prescribed
manner. Further, the cost accounting records maintained
by the Company are required to be audited.
During the year, the Company filed the Cost Audit
Report for the financial year 2021-22 with the Ministry
of Corporate Affairs within the prescribed time limit.
c. SECRETARIAL AUDITOR AND THEIR REPORT
Pursuant to the provisions of Section 204 of the
Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules,
2014, the Company has appointed M/s. Bhandari and
Associates, a firm of Company Secretaries in Practice
(C.P. No. 366) to undertake the Secretarial Audit of the
Company. The Secretarial Audit Report is annexed as
Annexure III and forms an integral part of this Report.
EXPLANATION OR COMMENTS BY THE BOARD
ON SECRETARIAL AUDIT REPORT
M/s. Bhandari and Associates, Practising Company
Secretaries, Secretarial Auditor of the Company has
made the following observations in their Secretarial
Audit Report:
a) The Board of Directors comprised of Eight Directors,
constituting of Three Executive Directors (including
the Chairman & Managing Director); Two Nominee
Directors (non-executive) and Three Independent
Directors including Independent Woman Director.
As per Regulation 17(1) of the Listing Regulations
and DPE Guidelines on Corporate Governance for
Central Public Sector Enterprises, the Chairman
being an Executive Director, at least half of
the Board of Directors should be comprised of
Independent Directors.
b) The Nomination and Remuneration Committee
(NRC) comprised of Two Directors constituting
of One Independent Director and One Nominee
Director (non-executive) for the period from
August 12, 2022 upto September 27, 2022. As
per Regulation 19(1)(a) of the Listing Regulations
and section 178 of the Act, the committee shall
comprise of at least three directors and as per
Regulation 19(1)(c) of the Listing Regulations,
at least two-thirds of the Directors shall be
Independent Directors. Thus, the listed entity
did not have three Directors in NRC and further,
two-thirds of the Directors were not Independent
Directors for the aforesaid period.
c) The Company has conducted the 4th Risk
Management Committee (RMC) meeting on March
05, 2022 and 5th RMC meeting on September
27, 2022 i.e., at a gap of 206 days between two
consecutive meetings. As per Regulation 21 of
the Listing Regulations, the meetings of the RMC
shall be conducted in such a manner that on a
continuous basis, not more than one hundred
and eighty days shall elapse between any two
consecutive meetings. Thus, the gap between two
consecutive meetings of the RMC was beyond the
prescribed timelines.
d) The Company has submitted the disclosure of
related party transactions for half year ended
March 31, 2022 to the Stock Exchanges on June 06,
2022 and has intimated the disclosure of financial
results on May 27, 2022. However, being an equity
and high value debt listed entity, the disclosure of
related party transactions was required to be given
along with the disclosure of financial results. Thus,
the disclosure was given beyond the timelines
specified under Regulation 23(9) of the Listing
Regulations.
Explanations on observations made by
Secretarial Auditors in seriatim are as under:
a. Your Company is a Central Public Sector
Undertaking under the Administrative control of the
Ministry of Chemicals and Fertilizers, Department
of Fertilizer, Government of India and its Directors
on the Board are nominated / appointed by the
President of India. The Company is continuously
pursuing with the Government of India for the
appointment of requisite number of Independent
Directors on the Board in order to comply with
the provisions of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015.
b. Shri Kashee Nath Akela, who is member of
Nomination and Remuneration Committee ceased
to be Independent Director of the Company on
August 12, 2022. Subsequently, Nomination and
Remuneration Committee was reconstituted by
the Board of Directors on September 27, 2022 in
line with Regulation 19 of SEBI Listing Regulations.
Further, Nomination and Remuneration Committee
did not meet during period from 12.08.2022 to
27.09.2022
c. There has been inadvertent lapse in the timeline
for conducting the Risk Management Committee
meeting. Going forward company will adhere to
the statutory timelines
d. Since the comments made by Secretarial Auditor
are in the nature of factual statement, Company
does not have any comments to offer on the same.
d. SECRETARIAL STANDARDS
During the year 2022-23, your Company has complied
with the applicable Secretarial Standards issued by the
Institute of Company Secretaries of India.
SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS
There are no significant and material orders passed by the
Regulators/Courts/Tribunals that would impact the going
concern status of the Company and its future operations.
REPORTING OF FRAUDS
There was no instance of fraud during the year under
review, which required the Auditors to report to the Audit
Committee and / or Board under Section 143(12) of the
Act and the rules made there under.
INSOLVENCY AND BANKRUPTCY CODE
There are no applications made or any proceedings
pending under the Insolvency and Bankruptcy Code, 2016
(31 of 2016) during the year.
ONETIME SETTLEMENT WITH ANY BANK OR
FINANCIAL INSTITUTION
As no settlement has taken place with any of the Bank or
Financial Institution during the financial year, therefore, no
disclosure or reporting is required in respect of the details
of difference between amount of the valuation done at
the time of one time settlement and the valuation done
while taking loan from the Banks or Financial Institutions.
BANKS AND FINANCIAL INSTITUTIONS
Your Company is prompt in making the payment of interest
and repayment of loans to the financial institutions /
banks. During the COVID-19 Pandemic period, it has not
availed any moratorium on any of its payments to the
institutions. Banks and Financial Institutions continue their
unstinted support in all aspects and the Board records its
appreciation for the same.
DIRECTORS’ RESPONSIBILITY STATEMENT
To the best of knowledge and belief and according to
the information and explanations obtained by them,
your Directors make the following statement in terms of
section 134(3) (c) of the Companies Act, 2013:
i] that in the preparation of the annual accounts for the
year ended March 31, 2023, the applicable accounting
standards have been followed along with proper
explanation relating to material departures, if any;
ii] the Directors had selected such accounting policies
and applied them consistently and made judgments
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the
Company as at March 31, 2023 and of the profit of the
Company for the year ended on that date;
iii] that the Directors have taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud
and other irregularities;
iv] the annual accounts have been prepared on a going
concern basis;
v] that the Directors had laid down internal financial
controls to be followed by the Company and that such
internal financial controls are adequate and were
operating effectively; and
vi] that the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.
CORPORATE GOVERNANCE
As per SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a separate section on
Corporate Governance practices followed by the Company,
together with a certificate of Compliance from the Practising
Company Secretary forms an integral part of this report.
COMPLIANCE OF CORPORATE GOVERNANCE
GUIDELINES ISSUED BY DEPARTMENT OF
PUBLIC ENTERPRISES
DPE, Government of India, has laid down certain
parameters for the purpose of grading the CPSEs on the
basis of their compliance with guidelines on Corporate
Governance and this report needs to be submitted to the
Government on quarterly/annual basis. Your Company
has been complying with the Guidelines on Corporate
Governance for CPSEs laid down by DPE and regularly
submits reports to the Government. DPE issued ‘Excellent
Rating’ to your Company for the year 2021-22.
INTERNAL FINANCIAL CONTROL OVER
FINANCIAL REPORTING
Your 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. Your Company’s internal financial
control over financial reporting includes those policies
and procedures that:
(1) pertains 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
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 financial statements.
KEY MANAGERIAL PERSONNEL
The following are Key Managerial Personnel of the
Company as on March 31, 2023 :
1. Shri S. C. Mudgerikar [DIN 03498847], Chairman &
Managing Director
2. Ms Nazhat J. Shaikh [DIN 07348075], Director
(Finance) & CFO
3. Shri Milind M. Deo [08715250], Director (Technical)
4. Shri K. U. Thankachen [DIN 06946476], Director
(Marketing) (upto 31.07.2022)
5. Shri Jai Bhagwan Sharma [FCS 5030], Company
Secretary
CHANGES IN THE BOARD OF DIRECTORS
Shri Satendra Singh [DIN 05195060] has been appointed
as Government Nominee Director on the Board of the
Company w.e.f. July 20, 2022.
Shri K. U. Thankachen [DIN 06946476], ceased to be
Director (Marketing) on the Board of the Company w.e.f.
July 31, 2022 (Closure of business hours).
Shri Kashee Nath Akela (DIN 09410361) ceased to be
Independent Director with effect from August 12, 2022.
Shri Satendra Singh [DIN 05195060] ceased to be
Government Nominee Director on the Board of the
Company w.e.f. October 19, 2022.
Ms Aparna S. Sharma (DIN 07798544) ceased to be
Government Nominee Director w.e.f. November 13, 2022.
Ms Aneeta C. Meshram (DIN: 09781436) appointed
as Government Nominee Director on the Board of the
Company w.e.f. November 13, 2022.
Shri Sanjay Rastogi (DIN 07722405) appointed as
Government Nominee Director on the Board of the
Company w.e.f. February 21, 2023.
Smt. Shashi Bala Bharti (DIN 08770477) ceased to be
Independent Director with effect from June 25, 2023.
The Board has placed on record their appreciation of the
Directors who have ceased to be members of the Board
for the valuable contribution made and the guidance /
suggestion provided by them which has greatly benefited
the Company.
As per Section 152 of the Companies Act, 2013, Ms Aneeta
C. Meshram (DIN: 09781436) and Shri Sanjay Rastogi
(DIN 07722405), Directors retire by rotation at the ensuing
Annual General Meeting and being eligible, offer themselves
for reappointment.
FAMILIARISATION PROGRAMMES FOR
INDEPENDENT DIRECTORS
The Company’s Independent Directors are eminent
professionals with several decades of experience in banking
and financial services, technology, finance, governance
and management areas and are fully conversant and
familiar with the business of the Company.
The Company has an ongoing familiarisation programmes
for all Independent Directors with regard to their roles,
duties, rights, responsibilities in the Company, nature of
the industry in which the Company operates, the business
model of the Company, etc.
All the Independent Directors of the Company have
registered their names in the Independent Directors
Databank as required under the Act and the Rules referred
therein. The Independent Directors are also required to
take up an online proficiency self assessment test within
two years from the date of inclusion of their name in the
Independent Directors databank, unless exempted from
such requirement, under the Act and the Rules referred
therein.
Board opined that Independent Directors of the Company
has made significant participation and contribution,
commitment, effective deployment of knowledge and
expertise, integrity and maintenance of confidentiality
and independence of behaviour and judgement.
DECLARATION OF INDEPENDENCE
All Independent Directors of the company have given
declaration confirming that they meet the criteria of
independence as prescribed under Section 149(6) of the
Companies Act, 2013 and Regulation 16(1) (b) of Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
COMMITTEES OF THE BOARD
The Company’s Board has the following committees:
i. Audit Committee
ii. Stakeholders Relationship Committee
iii. Share Transfer Committee
iv. Nomination and Remuneration Committee
v. Committee on Corporate Social Responsibility (CSR)
vi. Empowered Committee for Procurement
vii. Risk Management Committee
viii. Empowered Committee for Procurement of Urea on
Govt. Account
ix. Debenture Allotment Committee
The details of the committees along with their composition,
number of meetings held and attendance of each Director
at the meetings are provided in the Corporate Governance
Report.
COMPANY’S POLICY ON DIRECTOR’S
APPOINTMENT AND RELATED DISCLOSURES
As per notification dated June 5, 2015 issued by Ministry
of Corporate Affairs, provision of section 134(3) (e) of the
Companies Act, 2013 regarding disclosure of its policy
on Director’s appointment and remuneration including
criteria for determining qualifications, positive attributes,
independence of a Director and other matter provided
under sub- section (3) of section 178 of the Companies
Act, 2013 are not applicable to a Government Company.
Your Company being a Government Company, the above
provisions are not applicable to it.
Similarly, section 197 of the Companies Act, 2013 requiring
disclosure of ratio of the remuneration of each director
to the median employee’s remuneration and other such
details including the name and other particulars of every
employee of the Company, who if employed throughout/
part of the financial year, was in receipt of remuneration
in excess of the limits set out in the rules, are not
provided in terms of section 197(12) read with rule 5(1)
(2) of the Companies(Appointment and Remuneration of
Managerial Personnel) Rules, 2014, being not applicable
to a Government company as per notification dated June
5, 2015 issued by Ministry of Corporate Affairs.
MEETINGS OF THE BOARD
Fourteen (14) Board Meetings were held during the year.
The details of the Board Meetings held during the financial
year 2022-23 are provided in the Corporate Governance
Report.
BOARD EVALUATION
Section 134(3) (p) of the Companies Act, 2013 requires
the Company to disclose the manner in which formal
annual evaluation has been made by the Board of its own
performance and that of its committees and individual
Directors. As per notification dated June 5, 2015 issued by
Ministry of Corporate Affairs, provision of section 134(3) (p) of
the Companies Act, 2013 shall not apply in case Directors are
evaluated by the Ministry which is administratively in charge
of the Company, as per its own evaluation methodology. Your
Company, being a Government Company, the performance
evaluation is carried out by the Administrative Ministry
(Ministry of Chemicals & Fertilizers), Government of India, as
per applicable Government Guidelines.
Your Company has evaluated the performance of the
Independent Directors for the year 2022-23 as per
regulation 17(1) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
PARTICULARS OF LOANS GIVEN, INVESTMENT
MADE, GUARANTEES GIVEN AND SECURITIES
PROVIDED
Particulars of Loans given, Investments made, Guarantees
given and Securities provided along with the purpose for
which the loan or guarantee or security is proposed to be
utilized by the recipient are provided in the notes to the
financial statements.
CREDIT RATINGS
The Credit rating assigned by Rating Agencies for the
various debt instruments of the Corporation is provided in
the Corporate Governance Report.
PARTICULARS OF EMPLOYEES
During the year under review, none of employees of the
Company had drawn remuneration in excess of the limits
prescribed under section 134(3) (c) of the Companies Act,
2013 read with Companies (Appointment of Managerial
Personnel) Rules, 2014.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The details of Vigil Mechanism/Whistle Blower Policy are
provided in Corporate Governance Report.
RELATED PARTY TRANSACTIONS
All contracts/arrangement/transactions entered by the
Company during the financial year with related parties
were in the ordinary course of business and on arm’s
length basis. There are no materially significant related
party transactions made by the Company with Promoters,
Directors, Key Managerial Personnel or other designated
persons which may have a potential conflict with the
interest of the Company at large.
All Related Party Transactions are placed before the
Audit Committee and also before the Board for approval.
None of the Directors has any pecuniary relationships or
transactions vis-a-vis the Company.
The details of the investment in equity made by the
Company as on March 31, 2023 is as under:
INTER CORPORATE DEPOSIT
In connection with one time settlement entered into with
Dena Dank, the Company had paid total ' 51 crore (' 12 crore
during the year 2017-18 and ' 39 crore during the year 2018¬
19) to Dena Bank as one time settlement which includes an
amount of ' 25.50 crore being the share of The Fertilisers
and Chemicals Travancore Limited (FACT), the joint venture
partner in FRBL. This amount is shown as interest bearing
inter corporate deposit given. FACT shall repay the same in
five annual equal instalments commencing from December
2020. FACT has made payment of Three installment total
amounting of ' 15.30 crore out of the total 5 installments as
per agreement.
DISCLOSURE UNDER THE SEXUAL
HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL)
ACT, 2013
Your Company has in place a Policy on Prevention,
Prohibition and Redressal of Sexual Harassment of
Women at Workplace in line with the requirements of
the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. The
Internal Complaints Committee (ICC) has been set up to
redress complaints received regarding sexual harassment.
During the year, one complaint of Sexual Harassment
of Women at Workplace was received by the internal
complaints committee formed by your Company under the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. During the year,
committee disposed of Two (2) complaints (out of two
complaints, one complaint was pertaining to the previous
year) of Sexual Harassment of Women at Workplace.
RIGHT TO INFORMATION (RTI)
In order to promote transparency and accountability,
an appropriate mechanism has been set up across
the Company in line with the provisions of the Right to
Information Act, 2005. Your Company has nominated
CPIO/ACPIOs/ Appellate Authorities at its units/offices
across the Company to provide information to citizens
under the provisions of the RTI Act.
During the year under review, your Company has received
195 RTI applications out of which 173 have been replied.
ENERGY CONSERVATION, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo
stipulated under Section 134(3) (m) of the Companies Act,
2013 read with Rule 8 of The Companies (Accounts) Rules,
2014, is annexed to this Report as Annexure IV and form an
integral part of this report.
ANNUAL RETURN
Pursuant to Section 92(3) of the Companies Act, 2013
read with Section 134(3)(a) of the Companies Act, 2013,
the Annual Return in Form MGT 7 as on March 31, 2023 is
available on the Company’s website on www.rcfltd.com/
investerrelations/agm-1
INVESTOR EDUCATION & PROTECTION FUND
(IEPF)
The details of unpaid / unclaimed dividend and shares
transferred to the IEPF in compliance with the provisions of
the Companies Act, 2013 has been provided in the Corporate
Governance Report.
BUSINESS RESPONSIBILITY & SUSTAINABILITY
REPORT
Pursuant to Regulation 34 (2) (f) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Business Responsibility Report initiatives taken from an
environmental, social and governance prospective in the
prescribed format is available as a separate section of the
Annual Report and forms an integral part of this report.
Business Responsibility Report is also available on the
Company’s website www.rcfltd.com.
ACKNOWLEDGMENT
Your Directors wish to gratefully acknowledge the valuable
guidance and continued support extended by Government
of India and in particular, the Department of Fertilizers and
the Office of Fertilizer Industry Co-ordination Committee
(FICC), Railways, DPE, Members of MOU Task force, and
other Central Government Departments and Agencies.
The Board also wishes to acknowledge with sincere gratitude,
the help and unstinted support from the Government of
Maharashtra and other State Governments, MSEB, MIDC,
various Media, Municipal Authorities, Maharashtra Pollution
Control Board, Factory Inspectorate and IBR, Bankers to your
Company, Financial Institutions, Dealers and Customers.
Your Board wishes to acknowledge gratefully, the confidence
posed, unstinted support and suggestions made to the Board
by the esteemed Share Owners of the Company. The Board
also wishes to place on record the positive suggestions and
guidance provided by the Statutory Auditors, Cost Auditors,
the Office of the Principal Director of Commercial Audit and
Secretarial Auditor.
Last but not the least, your Directors take pleasure in placing
on record their deep appreciation of the excellent contribution
made by the employees of your Company at all levels,
without which your Company would not have achieved such
good performance.
[S. C. Mudgerikar]
Chairman & Managing Director
Place: Mumbai
Date: September 14, 2023
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