Sources in Kribhco stated that further investment in OIFC beyond the agreed level will not be possible at this stage as it has already invested Rs 10 crore in the equity of Nagarjuna Fertilisers and Chemicals Ltd (NFCL) and has earmarked Rs 1,203 crore for its second expansion project at Hazira and Rs 1,445 crore for its Gorakhpur project for which PIB clearance is expected shortly.

Besides, Kribhco alongwith Iffco has already signed a MoU with Qeshm Free Area Authority (QFAA) of Iran for setting up of a joint venture nitrogenous fertiliser complex in the area. Kribhco is also exploring the possibility of setting up of a 200 MW power project on liquid fuel at Jhunjhunu in Rajasthan.

Furtherinvestment in OIFC at this juncture may affect the future profitability of Kribhco and delay its project implementations at home. In 1997-98, Kribhco posted a net profit of Rs 299.49 crore, increasing its net worth to Rs 1,717.49 crore. It has declared a dividend of 18 per cent on the paid-up share capital of shareholders. A sum of Rs 83.37 crore is earmarked for payment of dividend. For 1998-99, it has earmarked a sum of Rs 19.8357 crore for several new schemes of the company.

In 1997-98, Kribhco has achieved the highest-ever profit before tax of Rs 447.96 crore since its commencement of commercial production in 1986. In 1997-98, the company's profit before tax was Rs 328.48 crore. The company has achieved post-tax profit of Rs 299.61 crore after providing Rs 148.35 crore towards taxation. The net worth of the company has substantially gone up from Rs 1501.18 crore to Rs 1717.49 crore, registering a growth of 14.41 per cent over the previous year.

Kribhco has decided to appropriate Rs 0.12 crore towardsthe capital repatriation fund in compliance with the provisions of tha Banking Regulation Act and the terms and conditions laid down by the RBI and Rs 74.87 crore representing 25 per cent of the net profit towards reserve fund as per the Multistate Cooperative Act. It has so far appropriated Rs 2.4074 crore towards the capital repatriation fund up to 1996.97. Of this Rs 1.9785 crore have already been repatriated to the concerned shareholders till March, 31, 1998.

A sum of Rs 2.99 crore, being one per cent of the net profit, is proposed to be appropriated towards contribution to the cooperative education fund maintained by the National Cooperative Union of India and a contribution of Rs 0.50 crore towards donations. The remaining net profit of Rs 137.76 crore is proposed to be transferred to the general reserves.

Kribhco has received dividend at the rate of 18 per cent amounting to Rs 1.80 crore from NFCL in 1997-98 against its equity participation. In 1997-98 Kribhco achieved the highest-ever productionof 17.72 lakh tonne of urea, 10.80 lakh tonne of ammonia and 168 tonne of biofertilisers. It has planned to produce 16.03 lakh tonne of urea and 9.77 lakh tonne of ammonia in 1998-99. The company is marketing its products in 14 states through cooperatives and institutional agencies. There were record despatches of 17.79 lakh tonne of urea from plants in 1997-98.