text: 6th Annual Report 2007-2008 Photograph Company logo BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED 6TH ANNUAL REPORT 2007-2008 Company logo BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED Regd. Office : Namrup, P.O.: Parbatpur, Dist Dibrugarh -786623, Assam CONTENTS 1. Board of Directors 2. Management Team 3. Citizen Charter 4. Notice of Annual General Meeting 5. Directors' Report 6. Management Discussion and Analysis Report 7. Annual statement showing representation of SCs, STs and OBCs 8. Corporate Governance 9. Declaration of Compliance of Code of Conduct 10. Management Reply on the observations of Statutory Auditors 11. Comments of the Comptroller and Auditor General of India on the Accounts and Management Reply thereon. 12. Disclosure of particulars with respect to conservation of energy, Technology Absorption and Foreign Exchange Earning and Outgo 13. Statutory Auditors' Report 14. Balance Sheet 15. Profit & Loss Account 16. Schedules 1 to 26 17. Cash Flow Statement 18. Additional information as per Part-IV Schedule –VI of the Companies Act, 1956 19. Performance at glance BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED CITIZENS' CHARTER Preamble This Charter is a declaration of our mission, objectives, values, commitments, standards and our expectations from others. Mission To produce fertilizer efficiently, economically and in environment friendly manner. To established itself as profit making enterprises To work for all round improvement of the strategically important North Eastern parts of the country. To diversify into production of other industrial products. To provide balanced economic growth in the region. Objective BVFCL has the following objectives: To take up and implement schemes for energy savings. To continuously improve plant operation safety. To attain high level of capacity utilisation. To continuously upgrade the quality of human resources of the company and promote organizational development. Values We shall carry out our functions and duty with utmost : Sincerity Speed Equity Integrity Transparency and without any fear or favour. Standards We have set up upon ourselves the standards for all transactions with you. We undertake that in case of likely or inevitable delay, we shall promptly communicate the same to the party concerned. Our Commitments We commit to: Produce and distribute quality fertilizers conforming to the specifications. Timely distribution of our fertilizers to ensure consumer satisfaction. Continual upgradation of Technology and Development of Human Resources. Strict adherence to the prescribed Safety, Health and environmental Protection Standards. SERVICE EXTENDED TO THE CUSTOMERS/CITIZENS' Training is imparted to the farmers free of cost by the Company in village/block level for balanced use of fertilizers for improving productivity. FOLLOWING GRIEVANCES REDRESSAL MACHANISM HAS BEEN CONSTITUTED IN THE COMPANY. 1. Employees Grievance Redressal Committee 2. Township Welfare Committee 3. Information under the Right to Information Act, 2005 4. Customer Grievances Redressal Cell 5. Complaints involving redressal for bribes or financial irregularities, public may approach to the Chief Vigilance Officer of the Company TIME LIMIT FOR DISPOSAL OF GRIEVANCES a. Issue of acknowledgement /interim reply to petitioner 2 weeks b. Forwarding of the grievance petition to the concerned authority 3 weeks c. Final disposal of the grievance petition 2 months EXPECTATION FROM CUSTOMERS/CITIZENS We expect from the customers / citizens to be reasonable and prompt in exercising your rights and obligations in all your transactions with the company without extending inducement of any kind and not raising any frivolous issues. a. Timely feed back of information about the product purchased by the customer, its quality, weight, etc. b. Suggestion for further improvement. BRHAMAPUTRA VALLEY FERTILIZER CORPORATION LTD. BOARD OF DIRECTORS 1. Shri S. C.Dhawan Chairman and Managing Director (Upto 31.01.2008) 2. Shri U.S.Jha Chairman and Managing Director (From 7.02.2008) 3. Shri Deepak Singhal Joint Secretary (Fertilizer), DOF (Upto 10.03.2008) 4. Shri Rajesh Agrawal Deputy Secretary (Fertilizer), DOF (From 10.03.2008) 5. Dr. Sri Chandra Joint Advisor (Fertilizer), DOF 5. Shri J.C.Duarah Director (Production) (upto 30.06.2008) 6. Shri N.K.Ghosh Director (Finance) (From 7.09.2007) COMPANY SECRETARY Shri R.K.Gupta CHIEF VIGILANCE OFFICER Shri Ajay Mankotia (Upto 11.10.2007) Shri J.K.Khanna, IPS (From 11.10.2007) NAMRUP UNIT Shri D.Mahanta, General Manager (HR) Shri N.K.Saha, General Manager (Unit) Shri Vinod Gaur, General Manager (Marketing) Shri M.A. Manann, Dy. General Manager (MM) Shri P.Malakar, Dy. General Manager (Electricals) Shri P.Dutta, Dy. General Manager (Management Services) STATUTORY AUDITORS M/s. Kanoi Associates, Dibrugarh COST AUDITORS M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad Registered Office "P.O. : Parbatpur, Namrup -786623, District- Dibrugarh (Assam) Phone : 0374-2500207;Fax : 0374 –2500317 Email : email@example.com Website address: www.bvfcl.com UNIT Namrup (Assam) LEGAL ADVISORS M/s. Steel & Hadow, Dibrugarh BANKERS State Bank of India UCO Bank Syndicate Bank Punjab National Bank Bank of India NOTICE OF 6TH ANNUAL GENERAL MEETING OF BVFCL Notice is hereby given that the 6th Annual General Meeting of the shareholders of Brahmaputra Valley Fertilizer Corporation Limited will be held on Friday, 8th day of August, 2008 at 4.30 P.M. at the registered office of the company at Namrup, P.O.: Parbatpur, District : Dibrugarh (Assam) to consider the audited annual accounts for the financial year ended 31st March, 2008 alongwith Director"s Report, Auditors Report, Comments of CAG and remuneration of Statutory Auditors for the financial year 2008-09 as Ordinary Business, and if thought fit, to pass the following resolution with or without modification(s) : ORDINARY BUSINESS : 1. "RESOLVED THAT the Audited Annual Accounts for the financial year ended 31st March, 2008 alongwith the Director"s Report, Auditors" Report and the Comments of the C & AG thereon are hereby adopted." 2. "RESOLVED THAT in pursuance of the provisions of Article No. 93(2) of Articles of Association of the Company, Shri Rajesh Agrawal, Director of the Company be and is hereby retires and being eligible, offers himself for re-appointment." 3. "RESOLVED THAT in pursuance of the provisions of Article No. 93(2) of Articles of Association of the Company, Dr. S.Chandra, Director of the company be and is hereby retires and being eligible, offers himself for re-appointment." 4. "RESOLVED THAT the Board / Audit Committee be and is hereby authorised to fix such remuneration as it may decide for the Statutory Auditors to be appointed by Comptroller and Auditor General of India for the year 2008-09 and the Statutory Auditors shall hold office from the conclusion of this Annual General Meeting till the conclusion of next Annual general Meeting." By Order of the Board of Directors Sd/- R.K.Gupta Company Secretary Place : Namrup Date : 4th August, 2008 Note : A member entitled to attend and vote is also entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company. DIRECTORS' REPORT To, The Members, Brahmaputra Valley Fertilizer Corporation Ltd. Dear Members, Your Directors have great pleasure in presenting the Sixth Annual Report of the Company together with the audited statement of annual accounts for the financial year ended 31st march, 2008, the report of Statutory and Govt. Auditors thereon. 1. REVIEW OF FINANCIAL PERFORMANCE: The financial performance of the Company during the year under review vis-a- vis previous year are stated as under : (Rs. in Crores) Particulars For the year For the year ended ended 31.03.2008 31.03.2007 Profit (+) / Loss (-) before Dep. (+) 6.87 (+) 40.28 (*) & Int. Depreciation 39.51 38.73 Interest 71.85 61.37 Profit (+) / Loss (-) before prior (-)104.49 (-) 59.82 period / extra-ordinary items adjustments Prior Period Adjustments (-) 1.35 (-) 2.55 Net Profit (+) / Loss (-) after (-) 105.84 (-) 62.37 prior period / extra-ordinary items adjustments (*) Including Rs. 40.40 crores subsidy arrears pertaining to earlier years received from GOI. During the year, company has recorded cash profit of Rs. 6.87 crores and recorded highest urea production since formation of BVFCL. The production of urea during the year was 329977 MT (Namrup –II - 77967 MT and Namrup- III 2521010 MT) against 308303 MT (Namrup-II - 61001 MT and Namrup – III - 247302 MT ) of urea in the previous year increased by 7%. 2. MANAGEMENT DISCUSSION & ANALYSIS REPORT A Report on Management Discussion and Analysis, forming part of this report, inter-alia deals with the operations and future prospects of the company is enclosed as Annexure to Directors" report. 3. CORPORATE GOVERNANCE During the year, company has adopted Guidelines on Corporate Governance for CPSUs, 2007 issued by the Department of Public Enterprises. A report on Corporate Governance is enclosed as Annexure to Directors" report. 4. BOARD OF DIRECTORS' During the period under review, the following changes took place in the Board of Directors: Shri S.C.Dhawan, Chairman and Managing Director of the Company retired on attaining the age of superannuation on 31.01.2008. In his place, Shri U.S.Jha, CMD, RCFL was assigned the additional charge of CMD, BVFCL for the period of six months by the Govt. of India. Shri U.S.Jha took over the charges of CMD, BVFCL from Shri S.C.Dhawan on 7.02.2008. Shri Rajesh Agarwal, Deputy Secretary (F), Department of Fertilizers has been appointed as part time official Director on the Board of BVFCL in place of Shri Deepak Singhal, Joint Secretary (F), Department of Fertilizers. Shri Nisith Kumar Ghosh has joined the Company as Director (Finance) w.e.f. 7.09.2007. Shri J.C.Duarah, Director (Production) retired on attaining the age of superannuation on 30.06.2008. Board of Directors place on record its sincere appreciation for the contributions made by the outgoing Directors. 5. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956 with respect to the Directors" Responsibility Statement, the Directors hereby confirm : (A) That in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. (B) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2008 and of profit and loss account for the period ended 31st March, 2008. (C) 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, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. (D) That the Directors have prepared the Annual Accounts on a going concern basis. 6. AUDITORS : M/s. Kanoi Associates, Chartered Accountants, Central Chowkidinghee, Dibrugarh has been appointed as Statutory Auditors of the Company by the Comptroller & Auditor General of India to audit the accounts of the Company for the financial year 2007-08. 7. AUDITORS' REPORT : The management replies on the observations of Statutory Auditors" report and the comments of the Comptroller & Auditor General of India on the accounts of the company for the year ended 31st march, 2008 are enclosed as Annexure to the Director"s Report. 8. COST AUDIT: In compliance of the provisions of Section 233B of the Companies Act, 1956, the Board of Directors of your company have appointed M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad to carry out the audit of cost accounts of the Company for the financial year ending 31 st March, 2008. 9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO. The Disclosure in terms of Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 in respect of conservation of energy, technology absorption and foreign exchange earning and outgo are as per annexure and form part of this report. 10. PROGRESSIVE USE OF OFFICIAL LANGUAGE: All instructions issued by the Official Language Department, Government of India for complying with the rules of 1976 of Official Language Act, 1963 are being followed. 11. PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A): There is no employee in the company covered under Section 217(2A) of the Companies Act.1956. 12. ACKNOWLEDGEMENT: The Board of Directors acknowledges the valuable guidance and continued support extended by the various Departments and Ministries of the Govt. of India viz. Ministry of Chemicals & Fertilizers, Department of Fertilizers, Fertilizer Industry Co-ordination Committee (FICC), Ministry of Agriculture, Indian Council for Agricultural Research, Ministry of Petroleum & Natural Gas, Ministry of Railways, Ministry of Finance, Ministry of Home, Department of Public Enterprises, Statutory Auditors, Cost Auditors, Comptroller & Auditor General of India, Assam Gas Company Limited, Oil India Limited, valued Dealers and Customers. The Board of Directors places on record its sincere appreciation to the State Government of National Capital Territory, Uttar Pradesh, Assam, Bihar, West Bengal, Jharkhand and the Reserve Bank of India, Punjab National Bank, UCO Bank, State Bank of Patiala, Syndicate Bank and Bank of India for their valued co-operation. The Board of Directors also acknowledges and appreciates the efforts put in by the employees of the Corporation for improving production performance of Namrup-II and III plants. For and on behalf of the Board Sd/- U.S.Jha Chairman & Managing Director Date : 4.08.2008 Place : Namrup ANNEXURE TO DIRECTOR'S REPORT MANAGEMENT DISCUSSION AND ANALYSIS REPORT The predecessor in interest of BVFCL i.e., HFCL"s and FCI"s Namrup Unit started nourishing the soils of Eastern India since 1969. It continued till date to be the major source of Urea Fertilizer to all 7 (seven) states of North-east India and parts of West Bengal and old Bihar. The company even supplied urea to complex manufacturers as far as Chennai and Goa and exported urea to Nepal. Its "Mukta" brand is a household name in the Eastern India and the same is a reputed brand image in terms of quality of prill. In spite harsh weather condition (excessive rain), abnormal situation and remoteness from the mainland, the company is striving through dedication of its employees and active support from the Government. 1. Overview: Its Namrup-III Plant produced 93.34% of its capacity and had there been no gas shortages it could have achieved higher capacity utilization. However Namrup-III could achieve highest annual production since formation of BVFCL. The overall specific energy consumption for Namrup-III was 12.52 Gcal/MT of urea during the year, which was also lowest since formation of the company. Only one stream of Namrup-II was in operation due to gas limitation from the supplier M/s Oil India Limited. Performance of Namrup-II remained sub-optimal due to breakdown of equipments. Unreliability in supply of Natural Gas also led to lower production. There have been restrictions in plant load and production stoppages due to Natural Gas limitations from M/s Oil India Ltd caused due to miscreant activities. Besides, the production loss, these sudden tripping of plants creates thermal shock in old equipments/ machineries which lead to further breakdowns of machineries. Your directors are regularly following up at different levels with Oil India Ltd and concerned ministries for steady supply of Natural Gas. A tripartite meeting was held with Oil India Ltd. & ONGC on 8th November 2007 to discuss the gap in supply of natural gas to BVFCL. M/s ONGC expressed their inability to supply gas to BVFCL. M/s Oil India Ltd assured supply of 1.72 MMSCMD gas to BVFCL in winter months and 1.60 MMSCMD in summer months only due to supply constrains (eg Tea Gardens). They were non- committal on supplying gas beyond 1.72 MMSCMD. The existing plants operating in Namrup are of vintage design and belongs to the genre of low capacity and high energy consumption. A proposal was initiated in 2006 to set up a new brown field Ammonia-Urea Plant which would have replaced the existing plants and increased the production from 3.9 Lakh MT of Urea to around 8.5 Lakh MT of urea per annum consuming same amount of gas as on today. An alternate proposal for retrofitting/ renovating the existing plants for capacity augmentation and lowering of energy consumption also remains under consideration. Pending any decision on the above proposals, maintenance of the existing plants is necessary for continuation of production for another 4-5 years. There is shortage of spares for the equipments leading to frequent breakdowns and no reliability of the equipments. Being low capacity with high energy consumption, the revenue generated is just enough to meet running expenses. For investment in renovation and replacement, the company requires to borrow money from the Government. But due to high interest rates of such loans, the company"s balance sheet becomes negative. The company is avoiding further loans in view of the liability of interest which is already around Rs.188 crores. However, unless some critical equipments are attended, the capacity utilization of Namrup-III will further go down. The company in 2007-08, has borrowed Rs.7.47 crores plan loan and Rs.20.96 crores non-plan loan from Government at an interest rate of 11.5%. Rs.20.96 crores will be spent to attend two critical limitations i.e. Retrofitting Synthesis Gas Turbine and Replacement of Synthesis Converter Baskets of Namrup-III. Similarly, Namrup-II also requires investment for the equipments and systems which were not revamped. In 2008-09, the Government is willing to give a plan loan of Rs.19.98 crores at an interest rate of 11.5%. Thus during 2008-09, about 40 crores will be committed for investment which will be financed from these loans. Since the loans carry high rate of interest and the company is already carrying liability of huge interest, a request has been made to the Government to convert these loans into Grant-in-Aid to make operations profitable. 2. Industry Structure & Government policy: Fertilizers have been a major contributing factor to the growth of Indian agriculture over the last five decades. The overall fertilizer consumption in the country has recorded phenomenal growth in last few years. The consumption of urea which was 19.8 million tones in 2003-04 has risen to above 26 million tones in 2007-08. With indigenous fertilizer production stagnating, the imports of finished fertilizers have increased significantly in the past four years. No major investment has taken place for creation of additional fertilizer capacities in the country for more than a decade. The current supply demand gap is about 10 million tones of fertilizer which is likely to increase further and cross 16 million tones by the end of the 11th Five Year Plan. Addition to domestic capacity by way of new projects and through revamp, retrofit etc of existing urea plants is urgently needed. The investment policy to encourage capacity addition with reasonable rate of return on investment is required from the Government. The Government of India has approved the New Pricing Scheme (NPS) stage – III for Urea Units in the country. Under NPS-III notification concession rate of Urea produced from Namrup-III has been reduced by Rs.488 per MT w.e.f 01.10.2006 from the existing rate of Rs.6097 per MT of Urea under NPS-II. The decrease in concession rate is mainly due to non-recognition of Capital Expenditure incurred beyond March 2003 in Namrup Revamp Project pertaining to Namrup-III. This will lead to huge recovery to the tune of Rs.15 crores for past periods. With the implementation of NPS notified price even after achieving the target production for Namrup-III, the company will incur cash loss. This will further deteriorate financial position of the company. The company will not be able to generate even the working capital for operation of the plants. A request has been made to the Department of Fertilizers to recognize existing concession rate of Rs.6097 per MT of Urea (as per NPS-II) for Namrup-III till approval of the Cabinet Note for Second Revised Project Cost & Time of Namrup Revamp Project. 3. Production Review: The Company produced 3,29,977 MT of Urea during the year. Urea production from Namrup-III was 2,52,010 MT. This is the highest annual urea production so far achieved since the formation of BVFCL and an increase of 7.03% over previous year"s production. There was 27% increase in production of Urea from Namrup-II against preceding years. The production was 77,967 MT of Urea for 2007-08. One of the constraints for higher production was lower availability of gas which resulted in production loss of 22,929 MT of Urea during the year. Apart from gas shortage, performance of Namrup-II suffered mainly due to repeated failures in Electrical Systems, Reformed Gas Boiler tube sheet failure, Flue Gas Boiler leakage, tube leakage in 3rd Superheater in Waste Heat Recovery Section. Production from Namrup-II ammonia plant was restricted due to low efficiency of condensers of Process Refrigeration Compressor. Action for Condenser tube bundles replacement have been taken. Namrup-III production was limited due to high vibration in EMG turbine of Synthesis Gas Compressor, high axial displacement in HP barrel of Process Air Compressor. During the year the company produced 19.34 MT of Bio-fertilizer. 4. MARKETING REVIEW During the year under review, sale of urea increased from 314670 MTs in 2006-07 to 333,191 MTs in 2007-08 including 4894 MT urea export to Nepal. Sale of Bio- fertilizers also increased from 4.80 MT in 2006-07 to 15.15 MT in 2007-08. Company has started trading of seeds and sold 718 MT of paddy seeds valued Rs. 1.04 crores and 595 MT of wheat seeds valued 1.05 crores with the total turnover of Rs. 2.90 crores. To reduce the marketing cost, various steps were taken such as freight rationalization, introduction of two-point rakes & mini-rakes, sales through private godowns and rationalization of rebates through private godowns and rationalization of rebates were also continued this year and made operative in the marketing territory. Company is also exploring the possibility of trading Pesticides, Organic manure, Micro nutrients and Fertilizers viz. Urea, MOP, SSP, etc. from other companies. 5. FUTURE OUTLOOK AND INITIATIVE FOR THE CURRENT YEAR. The company has to maximize urea production consuming minimum energy. Weak spots hindering sustained production has been identified and efforts are being made to overcome them, as stated below: 1. EMG Turbine of Synthesis Gas Compressor of Ammonia-III: The plant load remains restricted due to high vibration in EMG Turbine. As short term solution, rotor of EMG turbine will be replaced with reconditioned rotor in annual shutdown in 2008-09. Retrofitting of EMG Turbine with new designed rotor along with other internals is the long term solution. As rotor of existing design is no more manufactured, a new designed rotor has to be procured and retrofitted to existing turbine. Order for new rotor is under processing. 2. Synthesis reactor catalyst basket (S-100) of Namrup-III is very old, presently leaking with catalyst coming out. Present basket requires to be replaced with new energy efficient S-200 basket. Action has been initiated for its procurement. 3. Replacement of 1st compartment of RG Boiler of Namrup-II 4. Renovation of Electrical System: Procurement action of spares have been initiated. 5. Overhauling of Compressors and replacement of intercoolers, vacuum systems etc. of Namrup-III 6. Repair of Cooling Tower Pumps and renovation of Cooling Tower of Namrup-III. 7. Replacement of Primary Reformer catalyst of Namrup-III. 8. Condensers of Process Refrigeration Compressor: Tube bundles require replacement. The company plans to implement further energy conservation schemes in future. The Plant performance is adversely affected due to shortage of technically qualified and competent manpower in almost all the disciplines of the company. Difficulties has been experienced in meeting the requirement of in-house technical expertise in remote place like Namrup due to non-availability of technically competent outside agencies and reluctance on the part of good contractors to come to Namrup. Efforts are being made to employ qualified, competent and experienced persons from outside. Management has taken suitable actions for engagement of retired employees of Fertilizer PSUs on contract basis. VIABILITY PLAN Company has submitted viability proposal prepared by PDIL to the Department of Fertilizers for submission to the Board for Reconstruction of Public Sector Enterprises (BRPSE). The proposal carries following waiver, reliefs, dispensation and concessions to the BVFCL : Conversion of Loan portion (Rs. 317.77 crores) of total revamp project cost (Rs. 635.53 crores) into Equity. ; Waiver of earlier loan and interest (Rs. 248.30 crores) Continuation of special dispensation in pricing mechanism under New Pricing Scheme stage – III (NPS-III) for Namrup- III as provided in NPS –II and recognition of effect of capitalization made beyond 2002-03 under Namrup Revamp Scheme. Pricing of Namrup-II as per the erstwhile Retention Price Scheme (RPS) De-rating of production capacity for Namrup-II to at least 50% of rated capacity due to non-availability of gas presently. It was also recommended to BRPSE for a new Brown Field Plant for better utilization of natural resources in the long run. 6. IT ADOPTION / UP-GRADATION The company has progressively gone IT savvy and LAN with broad-band Internet facilities is now available at 50 work stations. Not much could be done during the bygone year in terms of investment in IT to upgrade or augment resources. Company desires to make progressive and pragmatic investment for upgrading the existing IT infrastructure aiming at an Enterprise Level IT solution in the near future. Guidance of RCF"s IT Experts has been sought to make detailed study and recommend action plan considering company"s IT expansion goal. Company"s website is regularly updated and all provisions of the Right to Information Act and Corporate Governance have been kept uploaded. 7. STATUS OF ISO 9001 & 14001 CERTIFICATE Namrup-III plants of the company have been Quality Management System (QMS) ISO 9001:2000 and Environment System Management (EMS) ISO 14001:1996 compliant. Both the certificates are expired in April, 2008 and May, 2008 respectively. The re-certification audits are being planned so that Namrup –III plants remain ISO compliant, both in QMS (ISO 9001:2000) and EMS (ISO 14001:2004). 8. INTERNAL CONTROL SYSTEM: The company has adequate internal control system in the respective areas of Finance & Accounts supported by Internal Audit and regular management reviews. In the accounting, internal control is exercised right from the preparation of vouchers where each voucher is checked and countersigned by respective senior officers as per delegation of power. The daily cashbook balance on manual basis is physically counted and checked with the book. Similarly, all bank accounts are also reconciled periodically. Internal control is also exercised for accounting where vouchers including journal vouchers entered into the system are checked and validated before those are accounted for. Every proposal for purchase/works contract or others having monetary involvement are examined as per policy and procedures and reviewed by a committee in many cases considering materiality of the quantum before taking appropriate decision. System is reviewed from time to time and action taken for improvement. Internal Audit is conducted by the outside qualified agency supported by the in-house internal audit cell. Internal Audit examines documents / records / procedures and submit periodical reports for compliance. The Internal Audit Reports and follow up actions thereon are regularly placed before the Audit Committee. Audit Committee regularly reviews the internal audit and adequacy of internal control. 9. HUMAN RESOURCE DEVELOPMENT A. MANPOWER POSITION: The total manpower status of the Corporation as on 31st March 2008 was 1248. Reservation of SC/ST/OBC/Ex- Serviceman and Physically handicapped categories in the service are being maintained as per the government directives. The manpower position as on 31.03.2008 was as under: - Categories Nos. % 1. Scheduled Caste - 90 - 7.21 2. Scheduled Tribe - 181 - 14.50 3. Ex-Servicemen - 17 - 1.36 4. Physically Handicapped - 5 - 0.41 5. OBC - 579 - 46.39 6. General - 376 - 30.13 1248 100.00 B. TRAINING : During the year ended on 31st March 2008, total 22 training programme both external and internal were conducted. Employees participated in the training programmes are as under : I. Internal Training Programmes Subjects Participants Executives Non- Executives Energy Management 21 Demo on energy Audit & Energy 27 Saving Schemes Seminar cum-demo on 27 Instrumentation Introduction Training to Management 49 Trainees Introduction Training to OT/TTs 82 Seminar on Energy Conservation 45 24 Training for fire fighting equipments 53 Programme on Process 25 Intrumentation Programme on productivity 35 Programme on productivity 45 Total 169 264 (*) Marketing Department has conducted training programme for 25 nos. of Dealer II. External (outside the organization) Training Programmes Department Subjects Participants Executives Non- Executives Fire 19th External Sub-Officers Course 1 Mechanical International Conference on Fertilizer 3 Production Technology Personnel Disciplinary proceedings for Officers 1 of PSUs Mechanical Vibration analysis In-situ balancing 2 Training Direct Trainers Skills 1 Total 7 1 C. INDUSTRIAL RELATIONS REPORT: The Industrial Relations Scenario during the year was by and large peaceful. D. VOLUNTARY RETIREMENT During the year, company has re-introduced Voluntary Retirement Scheme (VRS). Total 9 employees were separated under the above scheme during the year ended on 31st March, 2008. E. ACTIVITIES OF THE COMPANY FOR WELFARE AND ADVANCEMENT OF SCHEDULED CASTES (SCs), SCHEDULED TRIBES (STs) AND OTHER BACKWARD CLASSES (OBCs) The company has been following the presidential directive and guidelines/ orders issued by the Government of India from time to time in the matter of reservation in services for SCs, STs and OBCs. Candidates belonging to SC and ST are fully exempted from payment of fee applying for any post in the corporation. SC/ ST candidates are paid TA for appearing in both the written test and interview for recruitment of any post in the company. The Corporation is having one SC/ST/OBC Cell under one Liaison Officer. The Liaison Officer initiates necessary action to settle the grievances of the employees belonging to SC/ ST community on priority basis and in consultation with the SC/ST Associations. Corporation is providing company accommodation to all its employees including SC/ST employees. All the welfare facilities of the corporation also extended to the employees of SC/ST community alongwith other employees. The company do not received any allocation of fund under tribal sub-plan from the Govt. of India. The Annual statement in the prescribed format showing the representation of SCs, STs and OBCs as on 1.01.2008 and No. of appointments made during the preceding calendar year i.e. 2006-2007 as furnished to the Govt. is enclosed as Annexure to the Directors" Report. 10. VIGILANCE The vigilance is considered to be an integral pat of the management function. The Chief Vigilance Officer provides direction, guidance and supervision over the vigilance efforts of the Corporation. One Assistant Vigilance Officer and one Senior Vigilance Officers are posted at Namrup Corporate Office. The Corporation has adopted preventive vigilance as the main theme. The stress is on transparency and accountability in the working of the corporation. Vigilance Notice Boards have been installed in all the offices including liaison offices of BVFCL, displaying the address and telephone numbers of the CMD, Chief Vigilance Officer and Central Vigilance Commission, who can be approached for complaints of corruption. "Agreed List of suspected officers" and List of Officers of Doubtful Integrity" for the year 2008 were prepared in time and a close watch is being kept on the listed officers. System of rotation of employees posted on sensitive posts for more than five years is being followed. Surprise and regular inspections (22 Nos) were carried out during the financial year 2007-08. On the basis of findings of Inspections, important suggestions were given to the Management for remedial action. 9 complaints / cases detected through inspection were taken up for investigation. Out of these, 8 cases have been completed and disposed off. Remaining one case is under investigation. During the year, two departmental proceedings were initiated for major penalty and two for minor penalty. Out of a total of 2 major penalty proceedings, one is pending with the DOF for final order. The other major penalty proceedings is pending against four employees. This is also pending with the DOF. In case of minor penalty proceedings, "Censure" was awarded to five delinquent officials. To sensitize the employees and the public about the evil consequences of corruption, vigilance awareness week was celebrated by BVFCL from 12 to 16 November, 2007. During the week, group discussions, slogan competition and seminar were organised by the Vigilance Department of BVFCL to highlight the harmful effects of corruption in addition to pledge ceremonies. Pamphlets containing (i) the name, address and phone nos. CMD, CVO and CVC; (ii) Government Resolution on Public interest disclosure and protection of informer were distributed were amongst the public during the vigilance awareness week. 11. KEY OPPORTUNITIES a. Scope for marketing of urea to complex fertilizer manufacturers and export. b. Scope for diversification into hydro-carbon based chemicals and generation of power. c. Scope for eco-friendly agriculture based business development. 12. KEY THREATS: 1. Competition from other urea manufacturing companies having lower energy consumption and lower cost of production. 2. Threat of closure of production facilities of company due to high cost of production and economic non-viability. 3. Low urea consumption growth rate in the North Eastern States. 4. Uncertainty of steady and continual supply of Natural Gas by the supplier M/s. Oil India Limited. Against requirement of 1.95 MMSCMD of NG, M/s. Oil India Limited has been able to supply only around 1.72 MMSCMD. 5. Disturbed socio-political scenario – an impediment to economic development. 13. RISK MANAGEMENT: The company had laid down Risk Management Policy for Assessment & Minimisation procedures to be reviewed by the Board of Directors on quarterly basis. The identified risks were grouped under various types viz. Feed/Fuel, Plant Operations, Utilities, Environment, Project implementation, Regulatory, Business competition, Market, Assets, Finance, Human Resources, Information Technology, Legal and Internal Control risks. The above policy has been circulated to all the employees of the company. The workshop/ seminars are being organised at every level of employees to make them aware and sensitize about the risks. 14. MOU RATING: Company has started signing MOU with the Ministry of Chemicals and Fertilizers since 2004-05. For the financial year 2007-08, "average" rating is expected from the Department of Public Enterprises. ANNEXURE TO DIRECTORS' REPORT CORPORATE GOVERNANCE COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE Corporate Governance has been a continuous endeavor at BVFCL that cares for the overall well-being and welfare of all constituent of the system and takes into account the stakeholders interest at every business decision. The company is committed to pursue growth by adhering to the highest standards of corporate governance. The primary objective is to create and adhere to a corporate culture of consciousness, transparency and openness in creating awareness of corporate vision and spark dynamism and entrepreneurship at all levels. Company believes that governance must balance individual interest with corporate goals and operate within accepted norms of propriety, equity, fair play and a sense of justice. At BVFCL, accountability and transparency are key drivers to improve decision making and rationale behind such decisions to create stakeholders confidence. I. BOARD OF DIRECTORS: A. CONSTITUTION OF BOARD Pursuant to the provisions of Section 617 of the Companies Act, 1956, BVFCL is a "Government Company" holding 100% of its paid up share capital by the President of India. Members of the Board are appointed by the President of India. B. RESPONSIBILITIES The responsibilities of Board is to oversee the company"s strategic policies, review and monitor corporate performance, ensure regulatory compliance and reviewing the risk minimizing efforts of Executive Management in the operation of Company. C. BOARD MEETINGS. The meetings of the Board are normally held at the registered office of the company at Namrup but during the year, due to pre-occupation of Govt. Directors, the Board meeting were held at the Liaison Office of the BVFCL/ RCFL at Noida/ New Delhi. It is scheduled well in advance. The Company Secretary, in consultation with Director (Finance) / Chairman and Managing Director, send notice of every Board meeting in writing to each Director of the company. All the Departments in the Company communicates to the Company Secretary well in advance with regard to matters requiring approval of the Board / Audit Committee of the company to enable him to include the same in the agenda for the Board/ Audit Committee Meeting(s). The Board agenda are circulated to the Directors well in advance. The members of the Board are entitled to access all the information of the company and are free to recommend inclusion of any matter in agenda for discussion. In case of need, the senior management is invited to attend the Board Meetings to provide additional inputs relating to the items being discussed and / or giving presentation to the Board. During the financial year 2007-08, four meetings of Board of Directors were held for transaction of the business of the Company. Board Meeting No. Date No. of Directors attended 39 8.06.2007 4 40 25.09.2007 5 41 14.12.2007 5 42 10.03.2008 5 D. COMPOSITION OF BOARD There are four Directors on the Board of the Company at present, comprises Shri U.S.Jha, Chairman and Managing Director, Shri N.K.Ghosh, Director (Finance) Dr. S. Chandra, Joint Advisor (Fertilizer), DOF and Shri Rajesh Agrawal, Deputy Secretary (Fertilizer), DOF. The details of composition and category of Directors, attendance of each Director at the Board Meetings and the last AGM, directorship and membership in committees of other companies for each director of the company are given below. Name S/Shri Attendance particulars Details of Directorship and committee members/ chairman Board Last AGM Details of Details of meetings Held on Directorships in committee (from 14.09.2007 other public memberships 1.04.07 to limited and committee 31.03.08) companies Chairmanship Functional Directors S.C.Dhawan, CMD (Upto 3 Present FAI Chairman of Audit 31.01.2008) (*) Committee Upto 19.12.2006. Shri U.S.Jha, CMD (from 1 N.A. RCFL, FAI, Member Audit 7.02.2008) (*)1 Indian Potash Committee Ltd., RRCFL Shri N.K.Ghosh,(**) 3 Present Nil Observer of Audit Director (Finance) Committee J.C.Duarah (***) 4 Present Nil Nil Director (Production) Part Time Official Directors Shri Deepak Singhal, Joint 03 Absent The Fertilizer Member Audit Secretary (F), DOF(****) Corporation of Committee India Ltd. Hindustan Fertilizer Corporation Ltd. KRIBHCO Madras Fertilizer Ltd. Dr. S. Chandra 4 Absent - Chairman of Audit Joint Advisor(F), DOF Committee Shri Rajesh Agarwal, Dy. 1 N.A. HFCL Member Audit Secretary (F), FACT Committee DOF(*****) (*) Superannuated w.e.f. 31.01.2008. (*)1 Take over the additional charge of CMD, BVFCL w.e.f. 7.02.2008 (**) Joined BVFCL on 7.09.2007 (***) Superannuated on 30.06.2008 (****) Ceased from Directorship w.e.f.10.03.2008. (*****) Appointed Director on the Board w.e.f. 10.03.2008 No Director of the company is a member in more than 10 (ten) committee or is a Chairman of more than five (5) committees across all companies in which he is a Director. For the appointment of Part-time non-official (Independent) Directors on the Board, company has taken up the matter with the Ministry of Chemicals and Fertilizers as per the Govt. Policy contained in DPE OM No. 18(6)/2000 – GM dated 26.11.2001. In the absence of any Part-time non-official (Independent) Director on the Board, Dr. S.Chandra, Joint Advisor (F), Department of Fertilizers was appointed Chairman of Audit Committee. E. CODE OF CONDUCT Board has approved a code of conduct for all members of the Board and Senior Management Executives of the company. The code of conduct has been posted on the company"s web site www.bvfcl.com. All the members of the Board and Senior Management Executives shall affirm compliance with the code on annual basis. Declaration to this effect is enclosed at Annexure to the Directors" Report. F. INFORMATION PLACED BEFORE THE BOARD OF DIRECTORS Executive Management shall present following information before the Board of Directors, either as part of the agenda papers or are tabled/ presented during the course of Board meeting : Annual operating plans and budgets and any updates. Capital budgets and any updates. Quarterly results for the company and its operating divisions or business segments. Minutes of meetings of audit committee and other committees of the Board. The information on recruitment and remuneration of senior officers just below the board level, including appointment or removal of Chief Financial Officer and the Company Secretary. Shows cause, demand, prosecution notices and penalty notices which are materially important. Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems. Any material default in financial obligations to and by the company or substantial non-payment for goods sold by the company. Any issue, which involves possible public or product liability claims of substantial nature, including any judgement or order which, may have passed strictures on the conduct of the company or taken an adverse view regarding another enterprise that can have negative implications on the company. Details of any joint venture or collaboration agreement. Transactions that involve substantial payment towards goodwill, brand equity, or intellectual property. Significant labour problems and their proposed solutions. Any significant development in human resources/industrial relations front like signing of wage agreement, implementation of Voluntary Retirement Scheme etc. Sale of material nature, of investments, subsidiaries, assets, which is not in normal course of business. Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse exchange rate movement, if material. Non-compliance of any regulatory, statutory or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer etc. G. DISCLOSURES : 1. No related parties transactions have been executed by the company during the financial year 2007-08. 2. Company is complying all the applicable statutory liabilities and the guidelines issued by the Govt. from time to time. 3. Company has adequate mechanism of whistle blowing policy in the organisation and affirms that no personnel have been denied access to the Audit Committee. 4. All the Presidential Directives issued by the Central Govt. have been complied with, by the company. 5. No items of expenditure debited in the books of accounts, which are not for the purpose of the business. 6. No expenditure incurred which are personal in nature and incurred for the Board of Directors and top Management. 7. Details of Administrative and Office expenses as a percentage of total expenses vis – a vis financial expenses and reasons for increase are as under : 2007-08 2006-07 % of % of Total % of Total % of Total Remarks Total Finance Exp. Finance Exp. Exp.(Int.) Exp.(Int.) Administrative 0.74 3.91 0.72 4.28 The increase in Office Exp. 0.02 0.10 0.03 0.15 exp. is very nominal, due to inflationary effect. II. AUDIT COMMITTEE: During the year, Audit Committee has considered draft annual accounts for the financial year ending 31st March, 2008 before recommending the same for the approval of Board of Directors. At present, Audit Committee comprises three members i.e. Shri U.S.Jha, Chairman and Managing Director, Dr. S. Chandra, Joint Advisor (Fertilizer), DOF, Shri Rajesh Agrawal, Deputy Secretary (Fertilizer), DOF. A. TERMS OF REFERENCE FOR AUDIT COMMITTEE OF BVFCL The company agrees that the role of the audit committee shall include the following in addition to the role prescribed under Section 292A of the Companies Act, 1956 : 1. Oversight of the company"s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. 2. Recommending the audit fee of statutory auditors / Internal Auditors / Cost Auditors and also approval of payment for any other services. 3. Reviewing the annual financial statements before submission to the Board, focusing primarily on; Any changes in accounting policies and practices. Major transactions of financial irregularities based on exercise of judgement by management. Review of draft audit report. Significant adjustments arising out of audit. The going concern assumption. Compliance with Accounting Standards of ICAI. Any related party transactions i.e. transactions of the company of material nature, with promoters or the management, their subsidiaries or relatives etc. that may have potential conflict with the interests of the company at large. 4. Reviewing with the management, Statutory Auditors and Internal Auditors, and the adequacy of internal control systems. 5. Reviewing the adequacy of internal audit function, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. 6. Discussion with internal auditors any significant findings and follow up thereon. 7. Reviewing the findings of any internal audit by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board. 8. Reviewing the company"s financial and risk management policies. 9. To look into the reasons for substantial defaults in the payment to the shareholders (in case of non payment of declared dividends) and creditors. B. ATTENDANCE OF AUDIT COMMITTEE MEETINGS During the year under review, four Audit Committee Meetings were held. S.No. Name of the Directors No. of Audit Committee Meeting attended. 1 Shri S.C.Dhawan (*) 3 2. Shri U.S.Jha 1 2 Dr. S.Chandra 4 5 Shri Rajesh Agarwal (*) 1 6 Shri Deepak Singhal (**) 3 C) Company Secretary of the Company acts as the Secretary to the Audit Committee. ANNEXURE TO DIRECTORS' REPORT DECLARATION OF COMPLIANCE OF CODE OF CONDUCT In compliance with the clause 3.4.2 of guidelines of Corporate Governance for CPSUs issued by the Department of Public Enterprises, Board has approved the Code of Conduct Rules for all members of Board of Directors and Senior Management of the company, which has been posted on company"s website www.bvfcl.com. All the members of Board of Directors and the Senior Management Executives do hereby affirms the compliance with the above Code of Conduct Rules. For and on behalf of Board of Directors of Brahmaputra Valley Fertilizer Corporation Ltd. Sd/- U.S.Jha Chairman and Managing Director Date : 4.08.2008 Place : Namrup ANNEXURE TO DIRECTORS' REPORT FORM A DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY A. POWER AND FUEL CONSUMPTION. 1. ELECTRICITY Unit 2007-08 2006-07 (a) Purchase: Total Unit MWH 1045800 9505990 Total amount Rs. in Lakh 265.45 556.38 Average Rate Rs./ KWH 25.38 (*) 5.82 (b) Own Generation: (i) Through captive Power Plant Unit MWH 179624100 160179400 Total Cost Rs. in Lakh 1826.15 1712.86 Cost / Unit Rs./ KWH 1.02 1.07 2. NATURAL GAS Quantity "ooo SM3 536443 526367 Total Cost Rs. in Lakh 13485 13247 Cost / Unit Production Rs/ MT 4087 4297 B. CONSUMPTION PER UNIT OF PRODUCTION 2006-07 1) Electricity KWH/ MT 547.52 550.385 3 2) Natural Gas SM / MT 1625 1707 (* ) Average rate is higher due to fixed minimum demand charges. ANNEXURE TO DIRECTORS' REPORT FORM B DISCLOSURE OF PARTICULARS WITH REPECT TO TECHNOLOGY ABSORPTION, FOREIGH EXCHANGE EARNINGS AND OUTGO. A. ENERGY CONSERVATION MEASURES : Following energy conservation schemes have been implemented based on Energy Audit Report of M/s. TERI, New Delhi. 1. Reduction of Steam to Carbon (S/C) ratio in Primary Reformer of Ammonia –III to 3.8 from 4.1 at present after checking all parameters. 2. Optimization of excess air in primary reformer of Ammonia-III Plant resulting in saving of energy of 0.07 Gcal/MT of Ammonia. a) Inefficient / damaged burners leading to consumption of higher combustion air. The new burner are being procured for replacement. b) Stop other air ingress sources to Primary Reformer of Ammonia -III Plant. 3. Prevention of Air ingress in Service Boiler & reduction of blow down in service boiler and auxiliary boiler resulting saving in energy of 0.014 Gcal/ MT of urea. 4. Reduction of the speed of the Benefield solution pump and reduction of pressure drop across flow control valve resulting saving in energy of 0.016 Gcal/ MT of Ammonia. 5. Reduction of speed of steam turbine of Boiler Feed Water Pump in Ammonia Plant which would result in reduction of pressure drop across flow control valve. Saving in energy of 0.04 Gcal/ MT of Ammonia has been achieved when turbine driven pump is in line. Following energy conservation measures are under implementation : 1. Prevention of passing of 24 ata steam from vent valve by replacing control valve PIC 23 in Urea –III plant. An expected saving in energy of 0.1 Gcal/MT of urea will be achieved. 2. Reducing steam consumption and increasing turbine efficiency by maintaining proper vacuum condition in condensing steam turbines of Compressors and Pumps. Expected saving in energy of 0.63 Gcal/ MT of ammonia. 3. Lighting System : Replace 40 W FTL with Copper ballast by T5 28 W lamps, replace 125 W mercury lamps with 70 W metal halide lamps, replace 400 W mercury lamps with 250 W metal halide lamps. Expected saving of Rs. 16.4 lacs per year. 4. Procurement of improved steam traps and changing faulty steam traps. Expected saving in energy of 0.0007 Gcal/ MT of urea. 5. Replacement of damaged Refractory in Primary Reformer of Ammonia-III Plant. Expected saving in energy of 0.017 Gcal/ MT of urea. 6. Prevention of air ingress to Auxiliary Super Heater through its dampeners by overhauling dampeners. B Technology Absorption : 1. The synthesis converter of Namrup –III has S-100 type basket. The present converter is planned to be retrofitted with latest design S -200 basket thereby increasing conversion efficiency and reduction in energy consumption. 2. EMG Turbine of Ammonia Synthesis Gas Compressor is planned to be retrofitted with rotor of new design along with internals and electronic governing system as rotor of existing design is no more manufactured and has became obsolete. 3. Control system of both Ammonia-II and III plant have been converted from pneumatic system to DCS & ESDS systems thereby increasing operational efficiency and reliability. 4. The synthesis converter of Namrup –II changed to latest design S -200 converter of Holder Topsoe, resulting increase in conversion efficiency and reduction in energy consumption. 5. Reciprocating natural gas booster compressor of Namrup –II changed to latest design centrifugal compressor along with PLC control and electronic governing system, resulting increase in reliability and reduction in maintenance cost. 6. The pneumatic control system of all the centrifugal compressors of Namrup- II changed to digital control system and electronic governing system, resulting operational reliability and online monitoring of operation and diagnosis of problems. 7. A new centrifugal carbamate pump was installed in Namrup-III urea plant, increasing reliability and smooth operation. 8. The catalyst beds of secondary reformers (Namrup-II & III) changed from arched type to fixed bed type, resulting breakdowns reduced in catalyst bed support. 9. The arsenic based acid gas removal system of Namrup-II (CO2 removal) has been replaced by Giammerco Vetrocoke system. Thus eliminating arsenic pollution and increase in efficiency of the system. 10. Segmented pollution control system of each plant has been changed to an integrated system for over all pollution control of the entire complex. 11. For monitoring of air pollution ambient air monitoring systems of both fixed station type and mobile type have been installed. 12. Reforming tubes of Namrup –III changed from HK40 to Micro alloy to increase reformation efficiency and more throughput. 13. Trays have introduced in urea reactors of both Namrup-II and III, resulting saving in steam consumption. C. R & D Efforts : Nil D. Benefit derived as result of R & D : Nil E. Foreign Exchange Earning and Outgo : The Corporation exported 4895 MT of urea to Nepal in 2007-08. At the international market rate of urea the price of above quantity is equivalent to about $ 1.2 million. Company"s purchase of foreign goods for spares for the year was Rs. 21.68 lacs. ANNEXURE TO DIRECTORS'REPORT REPLIES OF THE MANAGEMENT ON THE COMMENTS/OBSERVATIONS OF THE STATUTORY AUDITORS ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008 i) SUBSIDY CLAIMS : (a) We draw attention to the accounts This is as per accounting policy of the Company regarding the claim of Escalation disclosed in Schedule -25, at Serial No. 5. This Price (Subsidy) amounting to Rs. has already been adequately disclosed in Notes 355.66 Lacs accounted for on "claim Forming Parts of Accounts at Sl. No. 10, lodged" basis for the financial year Schedule – 26. The system is consistently 2007-08. Pending final settlement of followed by the company since previous years. such claims, the effect arising out of this, if any, is unascertainable, (Refer Note 10 Schedule 26 ) ii) FIXED ASSETS : (a) According to the information and Major portion of Title Deed (2143B-0K-12.5L) explanations given to us, the made in the name of BVFCL. For the rest action Company possesses land measuring is in process. 840.66 acres, out of which patta for 131.02 acres are yet to be received. Further, all the lands are required to be mutated in the name of the Company. (b) Further, the leasehold land For renewal of lease, prayer has been made to measuring 1B-2K-7L is also required Govt. which is in process. to be renewed. (c) Refer Note 14 of Schedule 26 of the Charging of Depreciation @ 6.33 % for Notes forming part of the Balance Revamped Assets is being followed since Sheet, higher rate of depreciation @ inception of BVFCL. The same has been 6.33% has been charged instead of adequately disclosed with reasons for such 5.28% for plant & machinery to keep deviation. parity with the FICC pricing policy as well as the project feasibility report of M/s. PDIL which has the effect of increasing the loss of the year by Rs. 601.50 lakhs and cumulative effect to the extent of loss of Rs. 1584.13 lakhs from F.Y. 2002-03 onwards. iii) INVENTORIES : (a) In case of items of Capital Stores and The classification of stores & spares as Other Stores and Spares ascertained surplus/dead surplus and disposal of such and declared by the management as inventory is a continuous process. For possible Surplus or Dead Surplus aggregation losses on disposal of such inventory adequate to Rs. 354.22 lacs(Previous Year-Rs. provisions has been made in the account. 364.16 Lacs), the extent of possible Further, if any losses, shall be adjusted in the loss on disposal of the same has not year of disposal. been assessed and hence, we are unable to comment on the adequacy of the provision kept. However, the provision on this account as at 31.03.2008 stands at Rs. 229.20 Lacs (Previous Year-Rs. 237.12 Lacs) on estimate. (b) The Company further kept a provision -Do- of Rs. 452.11 Lacs (Previous Year-Rs. 177.25 Lacs) on items identified to have not moved for more than 20 years amounting to Rs. 695.56 Lacs (Previous Year- Rs. 272.69 Lacs) being 65% thereof. (c) During the year under audit, the Accounting entries were passed to give effect to company had written-back provision the write off of stores & spares, for which for obsolete stores & spares provision was made in the previous year. This is amounting to Rs. 1.40 Lacs by not a case of written back of provision for crediting materials consumption obsolete stores & spares as observed by Audit. account for which a provision was made in earlier year accounts. (d) There is a Stock of Slow-moving / Adequate provision for obsolete stores & spares Non-moving Stores & Spares held for has been made as deemed necessary for items more than 10 years but less than 20 not moved for more than 20 years, as a policy of years amounting to Rs. 894.06 Lacs consistency in the accounts. as at 31.03.2008 on which no provision for obsolescence has been made. (e) Stock of Stores & Spares related to Adequate disclosure has already been made vide Namrup-I (Ammonia-I) Plant valued item No. 6 of Schedule – 26. at Rs. 157.38 Lacs has been held by the Company for which realizable value has been ascertained at Rs. 67.35 Lacs by an Approved Valuer. Suitable provision of Rs. 90.03 Lacs has been kept in the accounts (Refer item No.6 of Schedule-26). (f) With regard to the stock of Capital No comments. Stores and other Stores & Spares the . management has furnished the following information: Moving (within the year) 576.98 Lacs (Previous Year-Rs. 493.85 Lacs) Slow-moving (between 1 & 3 yrs). 357.77 Lacs (Previous Year-Rs. 640.32 Lacs) Non-moving (3 yrs. and above) 3196.10 Lacs (Previous Year-Rs. 3043.71 Lacs) (g) The Company has further informed us No comments. that stores directly related to Namrup- I, II and III were identified and valued at Rs. 2740.19 Lacs (Previous Year-Rs. 2827.44 Lacs). The age-wise break-up is as under: Moved upto 3 year 459.99 Lacs (Previous Year- Rs. 635.87 Lacs) Moved within 3 yrs. To 10 yrs. 714.13 Lacs (Previous Year- Rs. 635.17 Lacs) Moved within 10 yrs. To 20 yrs. 894.06 Lacs (Previous Year- Rs. 1256.86 Lacs) Not moved for more than 20 yrs. 672.01 Lacs (Previous Year- Rs. 299.54 Lacs) iv) CURRENT LIABILITIES-SUNDRY CREDITORS: During the year under review No comments confirmation of Accounts from Oil India Ltd. and Assam Gas Co. as on 31.03.2008 were obtained and the balances were reconciled. However, due to the non-availability of confirmations from few Sundry Creditors, the disclosure made by the Company in Note No. 4 of Schedule-26 has to be relied upon. v) LOANS & ADVANCES : Balances of Sundry Debtors, Loans & The reconciliation and confirmation of balances Advances and various other debit/credit is a perpetual system and the advances are balances as per the financial statement generally confirmed at the time of final are subject to confirmation and settlement of the dues. adjustments necessary upon reconciliation. vi) The Namrup-I (Ammonia-I) Plant has Adequate disclosure has been made in note No. been closed since September, 2002 and -6 of schedule-26. a sum of Rs. 3819.61 Lacs has been debited in the Accounts as under:- (1)In Fixed Assets Rs. 1444.34 Lacs (2)Capital Work-in-progress Rs. 2375.27 Lacs Since this plant is considered non- viable/uneconomical, there is a possibility of Impairment loss to the extent of difference of book value and its value under redundant conditions, if declared (Refer Note No. 6 Schedule 26). vii) RECOVERY OF RENT : In most cases the Lease Agreements Action for renewal / vacation is in process. Legal are time barred. Although, no Legal action shall be taken in cases wherever deemed action has been taken against the necessary. defaulters for non – payment of rent so The Audit committee has already suggested for far, the management has taken some strengthening of present system of rent action constructive steps during the collection. Action is in hand for the same in year for recovery of dues. (Refer para compliance of Audit Committee suggestion. 19 of schedule 26 ) viii) We further invite attention to Para- No comments. 2(a) of Notes of Schedule "4" relating to Fixed Assets, with regard to land booked at provisional cost and its consequential effect on Capitalization. ix) The computer operating system is The computer operating system in the company found to be weak and obsolete. Ancient though old is still supportive of accounting programs like Cobol etc. are still being system. Steps are being taken to replace old used. Though the reports generated Cobol based system with Oracle based system, from these systems are not supportive which is economical and suitable to company"s to some extent, steps should be taken requirements. to update the same. x) Since the company have accumulated A viability proposal has been submitted by the losses at the end of the financial year company to DOF for the consideration of BRPSE. ending on 31-03-2008 exceeding fifty percent of its net worth, it comes within the purview of Sick Industrial Undertaking as per section 2 (46AA) of the Companies Act, 1956. 5. Subject to all of our above observations No comments. and further to our comments in Annexure referred to above, we report that ; (a) We have obtained all the information No comments. and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) In our opinion, apart from the No comments. accounting of (i) Scrap/Salvage/Waste Materials (Refer para-6(iii) of Schedule 25), (ii) Payment under Company"s Family Pension Scheme (Refer para-11 of Schedule 25) on cash basis and (iii) Accounting of Interest of Advances to employees after recovery of principal amount (Refer para-6(ii) of Schedule 25), proper books of accounts as required by law have been kept by the Company as it appears from our examination of those books. (c) The Balance Sheet, Profit & Loss No comments. Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account. (d) In our opinion, the Balance Sheet and No comments. Profit and Loss Account dealt with by this report have been prepared in compliance with the accounting standards referred to in sub- section(3C) of section 211 Companies Act, 1956, to the extent applicable. (e) The Central Government has directed No comments. vide notification no G.S.R.829(E), . dated 21.10.2003 that clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 is not applicable to a Government Company. (f) Subject to our Comments I para 4 No comments. above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting Policies and the Notes forming part of accounts, give the information required by the Companies Act, 1956, in the manner so required, and also give a true and fair view in conformity with the accounting principles generally accepted (i) in the case of the Balance Sheet of the state of affairs of the company as at 31st March" 2008 ; (ii) in the case of Profit & Loss Account of the Loss of the company for the year ended on that date; and (iii) in the case of the Cash Flow Statement of the cash flows for the year ended on that date. ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph (3) of our Report of even date to the Members of Brahmaputra Valley fertilizer Corporation Limited On the Accounts for the year ended 31st March' 2008 ) As required by the Companies (Auditors" Report) Order 2003 (as amended) issued by the Central Government of India in term of Section 227 (4A) of the Companies Act, 1956 and as per the information and explanation given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we further report that: (i) (a) The company has generally No comments. maintained proper records showing full particulars including quantitative details and location of it"s fixed assets. (b) The fixed assets of the company No comments. have been physically verified by the Management during the year which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies have been noticed on such verification. (c) During the year the Company has not No comments. disposed off a substantial part of its fixed assets. (ii)(a) The stock of finished goods and In the event of shortage, provision for the packing materials were physically same is created without disturbing the book verified by the Management. balance till such time approval for write off is However, physical stock of stores and obtained form the Board. spare parts are considered for valuation on the basis of their balance as per records. (b) In our opinion, and according to the No comments. information and explanations given to us, the procedures for physical verification of inventory followed by . the company, wherever such physical verification had been conducted, were found reasonable in relation to the size of the company and the nature of its business. (c) The company has generally No comments. maintained proper records of the inventory. The Physical verification of stores and spares as on 31.03.2007 was completed during the year under review and a provision of Rs. 27.61 Lacs has been made in the accounts towards loss after considering shortage/excesses etc. (iii) (a) As per the information furnished, the No comments. company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Accordingly, provisions as per sub - clauses 4(iii)(b)(c)(d) of the Order are not applicable to the Company. (b) The Company has not taken any loans, No comments. secured or unsecured, from companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Accordingly, provisions as per sub - clauses 4(iii)(f) & (g) of the Order are not applicable to the Company. (iv) In our opinion and according to the No comments. information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, with regard to purchase of inventory, fixed assets and with regard to sale of goods and services. Further, during the course of our audit, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the internal control system. (v) On the basis of our examinations of the No comments. books of account and according to the information and explanations given to us, the company has not entered into any contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956. Accordingly, provision of sub - clause 4(v)(b) of the Order is not applicable to the company. (vi) According to the information and No comments. explanations given to us, the company has not accepted deposits from the public. Hence the provisions of Section 58A, 58AA or any other relevant provision of the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules 1975 are not applicable to the company. (vii) The company has an established in No comments. house Internal Audit Cell commensurate with its size and nature of its business. Further, the company has also engaged a firm of Chartered Accountants for conducting Internal Audit for the year 2007-08. (viii) We have broadly reviewed the records No comments. maintained by the Company in respect of products where, pursuant to be Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act. We are of the opinion that prima facie, the prescribed accounts and records have been made and were maintained. We have not, however, carried out a detailed examination of these records with a view to determine whether they are accurate or complete. (ix) According to the information and No comments. explanations given to us and according to the records produced before us, in respect of statutory and other dues. (a) (i) The company has been regular in No comments. depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and cess with the appropriate authorities during the year. The company is not covered under the Employees" State Insurance Act. The company is also not required to make a deposit in the Investor Education and Protection Fund. (ii) According to the information and No comments. explanations given to us, no undisputed amounts payable in respect of Income Tax, FBT, Wealth Tax, Sales Tax, Custom Duty, Excise Duty and cess were in arrear, as at 31.03.2008 for a period of more than six months from the date they became payable. However, a demand raised by the Commissioner of Central Excise regarding Service Tax for Rs. 75.37 Lacs including Interest and Penalty has been contested by the Company in the CEST Tribunal, Kolkata. (Refer item No. 1 of Schedule 26) (b) According to the information and No comments. explanations given to us and according to the records produced before us, there are no dues of Sales Tax/Income Tax/Custom Duty/Wealth Duty/Excise Duty/Cess/Service Tax which have not been deposited on account of any dispute. (x) The company have accumulated No comments. losses at the end of the financial year ending on 31.03.2008 exceeding fifty percent of its net worth and it has incurred cash losses in the current financial year and in the immediately preceding financial year also. (xi) According to the information and A viability proposal has been submitted by the explanations given to us and based company to DOF for the consideration of on the documents and records BRPSE. produced to us, the company has not been defaulted in payment of dues to the Financial Institution or Bank, except the loan taken from Government of India. Further, the Company has not issued any debentures during the year. (xii) Based on our examination of the No comments. records and the information and explanations given to us, the company has not granted any loans and advances on the basis of securities by way of pledge of Shares, Debentures or other securities. (xiii) In our opinion, the company is not a No comments. chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of Clauses 4(xiii) of the Order are not applicable to the Company. (xiv) According to the information and No comments. explanations given to us, In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provision of clause 4(xiv) of the Order is not applicable to the company. (xv) According to the information and No comments. explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions. Therefore, the provision of clause 4(xv) of the Order is not applicable to the company. (xvi) According to the information and No comments. explanations given to us, the company has taken a term loan of Rs. 7.47 Crores towards Plan Loan and Rs. 20.96 Crores towards Non – Plan Loan both from Government of India for purchase of Plant and Machinery. Since the amount was received on 31.03.2008. (xvii) According to the information and No comments. explanations given to us and on an overall examination of the Balance Sheet of the company, we report that no funds raised on short term basis have been used for long term investment. (xviii)The company has not issued any No comments. preferential allotment of shares during the year. Therefore, the provision of clause 4(xviii) of the Order is not applicable to the company. (xix) The company has not issued any No comments. debentures during the year under audit. Therefore, the provision of clause 4(xix) of the Order is not applicable to the company. (xx) The company has not raised money by No comments. way of public issue during the year. Therefore, the provision of clause 4(xx) of the Order is not applicable to the company. (xxi) To the best of our knowledge and belief No comments. and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year. BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LTD., NAMRUP COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619 ( 4 ) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF BRAHAMAPYTRA VALLEY FERTILIZER CORPORATION LIMITED FOR THE YEAR ENDED 31ST MARCH 2008 & THE MANAGEMENT REPLY THEREON CAG Comments Management Reply The preparation of financial statements of The gas requirement for achieving the Brahmaputra Valley Fertilizer Corporation desired level of production is 2.17 Limited for the year ended 31st March, 2008 in MSCMD, but the total natural gas accordance with the financial reporting available at present is only 1.72 framework prescribed under the Companies MMSCMD. M/s. Oil India Ltd. informed in Act, 1956 is the responsibility of the July 2006 that high volume gas above management of the company. The statutory 1.72 MMSCMD will not be available for auditor appointed by the Comptroller and supply to BVFCL in near future. The Auditor General of India under Section 619 (2) supply is also erratic. Due to uncertainties of the Companies Act, 1956 is responsible for in gas supply, BVFCL has to priorities gas expressing opinion on these financial statement distribution among Namrup-I, II and III under Section 227 of the Companies Act, 1956 based on plant performance and energy based on independent audit in accordance with contribution level. Namrup-I is a very old the auditing and assurance standard prescribed plant with high energy consumption and by their professional body the Institute of cost of production. Gas is also not Chartered Accountants of India. This is stated available to operate this plant. Hence it to have been done by them vide their Audit has been decided to suspend operations Report dated 07.06.2008. of this plant. I, on the behalf of the Comptroller and Auditor Further, adequate disclosure has been General of India have conducted a made in note No. 6 of Schedule-26, the supplementary audit under Section 619 (3) (b) relevant extract of which is reproduced of the Companies Act, 1956 of the financial below. statements of Brahmaputra Valley Fertilizer Corporation Limited for the year ended 31st Pending decision of GOI about further March, 2008. This supplementary audit has operation or otherwise for alternative use been carried out independent without access to or closure of Namrup-I (Ammonia-I) as the working papers of the statutory auditors found fit, market valuation under and is limited primarily to inquiries of the Accounting Standard (AS)-28 with regard statutory auditors and company personnel and to impairment of assets has been done by a selective examination of some of the M/s K.D. Kohli Associates, New Delhi, accounting records. Based on my approved valuers. As per their report, the supplementary audit. I would like to highlight market value of the Namrup-I Plant the following significant matter under Section (Ammonia-I) has been assessed at Rs. 619 (4) of the Companies Act, 1956 which has 4361.95 lacs against book value of Rs. come to my attention and which in my view is 3657.89 lacs (Rs. 3450.87 lacs as at necessary for enabling a better understanding 31.03.2008) and Accounting Standard of the financial statement and the related Audit (AS)-28 valuation under redundant Report. condition of Namrup-I Plant (Ammonia-I) has been fixed at Rs. 1308.59 lacs. As the Profit & Loss Account book value is less than the market value Loss for the year Rs. 10449.04 Lakh and Namrup-I Plant (Ammonia-I) has not been declared redundant to date, no The above was understated to the extent of Rs. provision as required by Accounting 2142.28 lakh due to non recognition of Standard (AS)-28 has been considered in impairment loss of assets of Namrup-I plant in the accounts. accordance with Accounting Standard 28. This has resulted in understatement of provisions of Since the decision of Govt. about the Rs. 2142.28 lakh and overstatement of Fixed future of Namrup-I Plant is not yet Assets as well as Capital Work-in-Progress by received, the status quo remains the Rs. 147.64 lakh and Rs. 1994.64 lakh same. respectively. However, as pointed out by Govt. Audit, Despite the matter being reported on the necessary adjustment will be made in the Annual Accounts for the year 2006-07 no Accounts during the year 2008-09. adjustment was carried out by the Company in the Accounts for the year 2007-08. ANNEXURE TO DIRECTORS' REPORT ANNUAL STATEMENT SHOWING THE REPRESENTATION OF SCs, STs , OBC and PHs AS ON FIRST JANUARY, 2008 AND NUMBER OF APPOINTMENTS MADE DURING THE PRECEDING CALENDAR YEAR NAME OF THE PUBLIC ENTEPRISES: BRAHMAPUTRA VALLEY FERTILIZER CORPORATION LIMITED, NAMRUP. Groups Representation of Number of appointments made during the calendar year 2006 SCs/STs/OBCs / as on 1.1.2008 By Direct Recruitment Method By Promotion B M Total No. SCs STs OBCs Total SCs STs OBCs Total SCs STs T of employees 1 2 3 4 5 6 7 8 9 10 11 12 1 Group A 228 21 13 65 49(MT)* 3(MT) 6(MT) 16(MT) 22 4 2 3 Group B 395 35 56 185 - - - - 91 6 4 1 Group C 595 31 101 304 81(O/TT)** 7(O/TT) 10(O/TT) 23(O/TT) 170 5 2 - Group D 64 3 14 31 - - - - 4 3 - - (Excluding Safai Karmachari) Group D 5 5 - - - - - - - - - - (Safai Karmachari) Total 1287 95 184 585 130 10 16 39 287 18 8 4 * 49 Management Trainees (MT), to be regularized in group –A as Asstt. Engineers in their respective discipline after 1 1/2year of training, recruited during the year 2007. ** 81 Operator/ Technician trainees (O/TT), to be regularized in group –C as Grade –II Operator /Technician after 2 years of training, recruited during the year 2007. The representation of physically handicapped manpower are as under (this manpower is included in the above statement): Group Total SCs STs OBCs Group C 2 1 Group D 3 2 PERFOMANCE OF BVFCL AT A GLANCE Rs. in Lacs Sl. No. 2007-08 2006-07 2005-06 2004-05 2003-04 1 SALES 15994 15317 9946 12469 12170 2 Subsidy 9381 13158 3469 2364 2312 3 TOTAL (1+2) 25375 28475 13415 14833 14482 4 Other income 946 930 820 1030 326 5 Stock: accretion (+) decretion (-) -228 -153 1132 -2226 588 6 TOTAL INCOME 26093 29252 15367 13637 15396 7 Raw materials (Feed Stock) 5767 5472 3828 3210 3153 Packing materials etc. 8 Salaries & Allowances 3868 4213 3426 2686 2650 9 Repairs & Maintenance 1245 1164 667 448 474 10 Power & Fuel 9551 9560 6957 4672 4891 11 Other Manufacturing Expenses 5110 5070 5868 2905 7396 12 TOTAL EXPENDITURE 25541 25479 20746 13921 18564 13 Gross margin(6-12) 552 3773 -5379 -284 -3168 14 Interest & Finance 7185 6137 2698 774 625 15 Depreciation 3951 3873 1900 709 624 16 Profit before taxation -10584 -6237 -9977 -1767 -4417 17 Provision for taxation ~ ~ ~ ~ ~ 18 Extra Ordinary Income ~ ~ ~ 4021 ~ 19 NET PROFIT/LOSS -10584 6237 -9977 2254 -4417 20 Transfer to investment ~ ~ ~ ~ ~ Allowance Reserve ~ ~ 21 Transfer from investment ~ ~ ~ ~ ~ Allowance Reserve ~ ~ 22 Provision for dividend ~ ~ ~ ~ ~ 23 Corporate tax on propose dividend ~ ~ ~ ~ ~ 24 Net block 52711 56587 58800 14215 10290 25 Capital work in progress 2807 2783 3496 42585 38382 26 Current assets, Loan & Advance 20321 17244 12926 14400 24832 27 Current Liabilities & Provision 11658 11797 14687 12622 17527 28 Investments ~ ~ ~ ~ ~ 29 Misc. expenditure ~ ~ 40 80 120 (To the extent not written off or adjusted) 30 Accumulated Losses 32168 21584 15347 5369 7623 31 Total Utilization 96349 86401 75922 64027 63720 32 WORKING CAPITAL (26-27) 8663 5447 -1761 1778 7305 33 Long Term Borrowings 59687 49818 42425 32879 33017 34 Short Term Borrowings 79 100 0 0 0 35 Share Capital 36583 36583 33497 31148 30703 36 Deferred Tax Liability ~ ~ ~ ~ ~ 37 Reserve & Surplus ~ ~ ~ ~ ~ 38 Total Sources 96349 86401 75922 64027 63720 39 NET WORTH (35-30) 4415 14999 18150 25779 23080 40 Capital Employed (24+32) 61374 62034 57039 15993 17595 41 Finished Goods 926 1182 1355 195 2446 42 Work Progress 53 26 5 35 9 43 Stores & Spares etc. 3023 3353 3444 3463 3944 44 Sundry Debtors 3659 4684 1567 2087 2486 45 Cash & Bank Balance 11765 7288 5719 8049 15490 46 Other Current Assets 581 436 142 98 105 47 Loans & Advances 314 275 694 473 352 48 Total (41 to 47) 20321 17244 12926 14400 24832 49 Less: Current Liabilities 8147 8226 10925 8969 14104 50 Provisions 3511 3571 3762 3653 3423 51 Total (49+50) 11658 11797 14687 12622 17527 52 NET WORKING CAPITA (46-49) 8663 5447 -1761 1778 7305 53 Gross Internal Resources (15+19) -6633 -2364 -8077 2963 -3793 54 Cumulative Gross Internal Resources 12866 19640 22004 30081 27973 55 INSTALLED CAPACITY (N) Urea (MT) 510000 510000 351320 315000 315000 Total 510000 510000 351320 315000 315000 56 PRODUCTION (N) Urea (MT) 329977 308303 234578 203060 240590 Total 329977 308303 234578 203060 240590 57 Capacity Utilisation (%) UREA 64.70 60.45 66.77 64.46 76.37 58 SALES QUANTITY (MT) Urea 333473 314676 213700 247572 234623 Total 333473 314676 213700 247572 234623


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Welcome To Ridgeview Church
No matter what brought you here, what questions you have for God, what pressures you may be facing, and no matter where you are in life, you are welcome here.
Sound of Music
All performances at Ridgeview Church. Tickets will also be available at the door.
$10 suggested donation per ticket.
Call the church office if you have any questions. (760-751-9890)
Sunday WorshipJoin us on Sunday at 9:00am and 10:30am for Worship, Sunday School, Youth Groups and Friends.
Make New Friends
We encourage everyone to meet someone new every week. We're a big family that prays together and plays together.
Join us for Coffee
Every Sunday before service be sure to come a bit early and have a cup of coffee while you get to know someone new.
Request PrayersDo you or a loved one need prayers? If so, you may anonymously request prayers here.
For you convenience you may also give online easily and if you choose, you can setup recurring giving options.


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Durham Arts Council Clay Studio, DurhamThese workshops are a great way to get creative with your child. Each workshop will allow your child, with your assistance; to create theirs own ceramic artwork...
Oxford arts crafts events
Parent/Child Clay Workshop: Trinket Boxde
Monday, Dec 1 10:00a
Handicraft Skillshare: Free Community Meetup
Friday, Dec 19 6:00p
Scrap Exchange, DurhamCome to Handicraft Skillshare at The Scrap Exchange! This co-ed crafters group was established to bring craft-enthusiasts from the Triangle area together to share projects and socialize...
Beginning Glass Bead Making
Saturday, Dec 6 10:00a
Durham Arts Council, DurhamAre fascinated with glass beads? This Workshop will introduce you to Lampworking. Students will use Effetre (soft glass) rods to learn how to make beads and design...
Holiday Greenery
Saturday, Dec 6 1:00p
Sarah P Duke Gardens, DurhamMake your own fragrant holiday display and bring nature indoors...
2nd Sunday Sewing at the Scrap - Free Community Sewing Group
Sunday, Dec 13 2:00p
Scrap Exchange, Durham2nd Sunday Sewing at The Scrap! Led by Christine Ramsey Join us for community sewing meetup in our Design Center, hosted by textile artist Christine Ramsey...
BMS Holiday Bazaar
Saturday, Dec 13 10:00a
Bunn Middle School, BunnBunn Middle School's Holiday Bazaar featuring vendors including crafts, handmade items, and direct sales vendors. Come out and get your last minute holiday shopping completed!
Winter Intersession Arts Camp: Colorful Coral Reefs
Monday, Jan 5 8:00a
Durham Arts Council, DurhamThese camps are designed for students' ages 5 to 12 years and offer flexible daily or weekly schedule to accommodate year-round and traditional school breaks. Camp run from 9:00 AM to 2:00 PM...
Last Fridays Art Walk
Friday, Nov 28 6:00p
Downtown Hillsborough, HillsboroughThe 2014 season of the Hillsborough Arts Council's Last Fridays Art Walk showcasing the talents of local artists in walkable historic Hip Hillsborough continues on Friday, July 25th...
Opening Night for Shelley Hahenberger-Mixed Media and Nancy Raasch-Paper Jewelry at the Hillsborough Arts Council Gallery
Friday, Nov 28 6:00p
Hillsborough Art Council Gallery, HillsboroughMixed Media by Nancy Hehenberger and Paper Jewelry by Nancy Raasch will be featured at the Hillsborough Arts Council Gallery at a meet the Artist reception on the Last Friday Art Walk...
Holiday Market
Saturday, Dec 6 9:00a
Plantation Point Shopping Center, RaleighHoliday Markets PLANTATION POINT FARMERS MARKET RALEIGH, NC Saturdays, December 6, 13 and 20 Mark your calendars for these special Farmers' Markets...
Exhibition | Line, Touch, Trace
Sunday, Mar 8 10:00a
North Carolina Museum of Art, RaleighAugust 31, 2014 – March 8, 2015: Line, Touch, Trace highlights hand-drawn works by thirteen North Carolina artists who use graphite, ballpoint pen, conté crayon, ink, or charcoal to explore drawing...
Raleigh NC 3 day Scrapbook Weekend around the clock scrapping
Friday, Jan 16 10:00a
Four Points by Sheraton Durham Airport, MorrisvilleNorth Carolina Scrapbook Retreats is having a weekend Scrapbook Retreat in Raleigh NC 2/19-2/21/15 Raleigh NC Scrapbook Weekend retreat will be open 24/7 around the clock Scrapbook Vendors on sit...
Christmas Holiday Shoppe Craft Show
Saturday, Dec 6 9:00a
St. Thomas More Church, Chapel HillSt. Thomas More Catholic School presents its popular, much-anticipated annual holiday craft show featuring 65 talented artisans and crafters from throughout North Carolina...
Ole Time Winter Festival
Saturday, Dec 6 10:00a
Downtown Cary, CaryThe Heart of Cary Association in conjunction with the Town of Cary will have over 60 art and craft vendors selling their products in Downtown Cary. Local entertainment...
Raleigh NC Winter Scrapbook Retreat February 2015
Friday, Feb 20 10:00a
Four Points by Sheraton, MorrisvilleRaleigh NC Scrapbooking Weekend Retreat Spring 2014 National Scrapbook Day Friday, February 20th, 2015 10:00a to 12:00p Sunday, February 22, 2015 4pm Brought to you by North Carolina Scrapbook R...
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Builder arrested after married couple found stabbed to death in Surrey home
A major manhunt was today underway after the bodies of a man and a woman were found at a home in Surrey.
An actor is suing a London theatre company after he was shot in the eye and blinded during an on-stage duel.
23 July 2012
Grisly musical Sweeney Todd returned to London last night.
21 March 2012
This year's major show at Tate Modern, marking the Olympiad, is a Damien Hirst retrospective running from April 4 until September 9. But it seems to coincide with a major reconstruction job at the Bankside gallery, leading to conjecture that the two events are not entirely unconnected.
09 March 2012
AS Dame Fiona Reynolds steps down as director-general of the National Trust to become the first woman master of Emmanuel College, Cambridge, a game of musical chairs has started between a host of worthy institutions.
08 March 2012
A City caper with so little profit
08 March 2012
He is the darling of the West End after turning a Roald Dahl classic into one of the most critically acclaimed and commercially successful musicals of recent times.
01 March 2012
West End star Michael Ball has revealed he feared no one would cast him in the role he was desperate to play - so he fixed it himself.
23 February 2012
This may be the European premiere of a Stephen Sondheim musical, but it's not thrillingly new.
07 July 2011
04 October 2010
20 September 2010


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For related articles and information, please visit OCA's Genetic Engineering page, Millions Against Monsanto page and our Health Issues page.
Washington, D.C.- "A coalition of organizations including Food & Water Watch, the Center for Food Safety, Pesticide Action Network, National Family Farm Coalition, Environmental Working Group, Just Label It, CREDO Action, SumOfUS and Organic Consumers Association has submitted over 500,000 comments to the Environmental Protection Agency (EPA) urging it not to approve Dow's registration for its new version of the pesticide 2,4-D. If approved Dow AgroSciences' 'Enlist' package, would include the Enlist Duo herbicide, composed of 2,4-D and glyphosate, that will be used with Enlist 2,4-D and glyphosate-tolerant corn and soybeans.
"Instead of recognizing that adding 2,4-D tolerant GMO crops and Dow's new 2,4-D formulation into our food supply is not a sustainable solution to the problem of herbicide-resistant weeds, the EPA could instead allow this herbicide's use in new ways. This will only address the glyphosate-resistant weed problem until weeds become resistant to 2,4-D. The minimal benefits of this expanded use of 2,4-D will very quickly be outweighed by its myriad negative impacts. Susceptible plants and animals will be exposed to this dangerous herbicide, and organic and non-GMO farms situated near farms growing Enlist crops may be affected through drift. This could ultimately affect consumers who will be exposed to foods from 2,4-D crops and to 2,4-D residues without even knowing it.
"In its Environmental Risk Assessment for 2,4-D, the EPA found 'information gaps,' 'key uncertainties' and 'insufficient information' in the analysis of the impacts of 2,4-D on nontarget organisms. The agency even admitted concerns for direct and indirect effects on birds, mammals, insects (like honeybees) and plants. But despite the defined and undefined risks revealed by the EPA, the agency has decided that the approval of Dow's 2,4-D herbicide will 'not cause any unreasonable adverse effect on the environment.'
"As for its human health evaluation, the EPA based all of its safety determinations on a study that was conducted by Dow AgroSciences. Not only is the study inherently biased due to its funding source, but basing health risks off of just one study ignores evidence of health impacts, ranging from reproductive toxicity to immunotoxicity, found in many of the other studies acknowledged by the EPA.
"It is abundantly clear that by approving this herbicide, EPA would be overtly violating its own mission to protect human health and the environment."
EPA Drops the Ball on 2,4-D for GMO Crops
By Wenonah Hauter
Food and Water Watch, July 1, 2014
Straight to the Source


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Bootlegger's Son Lyrics - One Man Army
Well John hailed from the streets of Brooklyn, Where he spent his early years, he drove trucks during the prohibition ease his family's fears, Well john hailed from the streets of brooklyn where he spent his early years, he drove trucks during the prohibition to ease his family's fears ??? [Chorus:] Well it's the story, story of poor john, he's gone and suffered his father's fate, the fate of a bootlegger's son, the legacy forges on, it's the story of poor john, ??? Well john hailed from the streets of frisco, not so long ago? he's the fourth generation of the family tree and his fate's already been told, he work's all day, just like old ways, to suit his family's need, he's father to his kids a husband to his wife and the last of the dying breed. [Chorus] It's the story, story, the story of poor john.
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Find records of Arsenio Alcosiba
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Arsenio Alcosiba (1903 - 1978) was born on December 14, 1903. Arsenio was born into the Alcosiba family.
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News Details
Caterham not ruling out Kobayashi for F1 return
Kamui Kobayashi appears imminently close to securing his return to Formula One. The Japanese lost his Sauber seat at the end of 2012, spending last season as a Ferrari test driver and driving a works Ferrari 458 in the Le Mans series. But Kobayashi, 27, has also collected millions from his fans to offer to a potential F1 race employer, and just before Christmas was spotted at Caterham's factory. When asked about the popular former Toyota and Sauber driver, a Caterham spokesman told Sky: 'There are lots of drivers being linked with Caterham at the moment which is very good news for us. 'I think it's flattering that somebody of Kamui's experience, talent and popularity would be linked to...
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