Nayara Energy Limited
Notes to Consolidated Financial Statements (Contd.) For the year ended March 31, 2020 37 CAPITAL AND OTHER COMMITMENTS Particulars A.
Capital commitments :
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
B.
Other commitments
(` in million) As at March 31, 2020
As at March 31, 2019
6,132
2,030
(i)
The Company has entered into an arrangement for standby bareboat charter with Essar Shipping (Cyprus) Limited (ESCL) for 3 ships at an average rate of USD 8,300 per day per ship for upto a period of 8 years ending on September 29, 2023. This bareboat charter gets implemented only if ESCL defaults in its payment with its lenders. However, ESCL has agreed to indemnify the Company against all losses, in the event of the bareboat charters becoming effective.
(ii)
The Group has an obligation arising out of the regulatory guidelines to operate retail fuel outlets in India to setup retail fuel outlets in remote service areas. The extent of the remote service areas are directly related to the outlets the Group have in the network. The Group has 211 number of retail outlets to be setup on the balance sheet date and discussion with the Ministry of Petroleum & Natural Gas is in progress on the Group’s plan for fulfilling the obligation and seeking support in terms of time period of implementation and supply security of products in the remote service areas.
38 (A) Revenue from operation includes ` 669 million (Previous year ` 526 million) towards duty drawback on National Calamity Contingent Duty (NCCD) paid on imported crude which was recognised based on a favourable order of the Hon’ble Gujarat High Court. The department vide its notification dated 12th May 2020 fixed the brand rate on Duty Drawback of NCCD. Accordingly, the Company has assessed the recovery of above income as highly probable and considered the total receivables of ` 4,455 million (As at March 31, 2019 ` 4,013 million) as good of recovery and classified as current.
(B) The Hon’ble Supreme Court of India in July 2015 had ordered a customer to pay ` 1,821 million (including interest of `1,387 million). Basis this order the Company has a recognised receivable of ` 912 million (As at March 31, 2019 ` 834 million) from the customer. The Company has assessed the recoverability of both the above balances as highly probable and hence has considered them as good of recovery.
174
Annual Report 2019-20