Nagarjuna Fertilizers and Chemicals Limited has issued a regulatory clarification to BSE Limited and National Stock Exchange of India regarding its current operational status following the completion of major asset sales. The company submitted its response on January 19, 2026, addressing inquiries about recent developments and providing updates on its post-asset sale position.

Asset Sale and Debt Settlement Details

The company's clarification references previous disclosures from July 12, 2024, which detailed the completion of asset sales to Assets Care and Reconstruction Enterprise Limited (ACRE). The debt settlement process involved significant asset disposals across multiple categories.

Regulatory Compliance and No Due Certificate

ACRE issued a No Due Certificate dated July 11, 2024, confirming the complete settlement of outstanding obligations. This certificate provided comprehensive debt relief for the company across multiple areas:

• Unconditional release from all liabilities and claims
• Discharge of outstanding debt and amounts due to ACRE
• Release of all security created in favor of ACRE
• Release of personal guarantees and pledge of shares held by promoter Amlika Mercantile Private Limited

Following this settlement, the company confirmed it has no term loans or working capital debt outstanding and is not in default with any secured lenders.

Current Operational Status

The company's January 2026 clarification indicates significant operational changes following the asset sale. The financials are now prepared on a non-going concern basis, reflecting the fundamental change in the company's operational structure. The majority of the company's workforce has moved to other opportunities, indicating a substantial reduction in operational capacity.

Outstanding Claims and Future Arrangements

Despite the asset sales, certain receivables and claims remain with the company. The management is actively pursuing government-related financial recoveries:

• Working on subsidy claims with government authorities
• Pursuing energy reimbursement claims
• Planning to settle remaining company dues upon receipt of subsidies

The company has also disclosed exploration of future operational possibilities, including discussions with government entities and AM Green Ammonia (India) Private Limited regarding urea production arrangements for a specified period.

Exchange Communication

In response to standard regulatory inquiries, the company confirmed that the standard questions regarding negotiations, undisclosed information, and regulatory proceedings were "Not Applicable" to their current situation. The company provided reference to their July 12, 2024 disclosure for additional context on the asset sale process and debt settlement completion.

Nagarjuna Fertilizers & Chemicals Limited (NFCL) held its 19th Annual General Meeting (AGM) on September 30, 2025, where shareholders approved significant board appointments and reappointments, including special resolutions for directors over 75 years of age.

Key Appointments and Reappointments

Uday Shankar Jha

Shareholders approved the appointment of Mr. Uday Shankar Jha as a Non-executive Director, liable to retire by rotation. A special resolution was passed to allow Mr. Jha's continuation as director beyond the age of 75, which he attained on June 16, 2025.

Rajendra Mohan Gonela

Mr. Rajendra Mohan Gonela was re-appointed as an Independent Director for a second consecutive five-year term from May 28, 2025, to May 27, 2030. Shareholders also approved a special resolution for Mr. Gonela's continuation beyond the age of 75, which he will reach on July 09, 2026.

Chandrapal Singh Yadav

The meeting also saw the reappointment of Mr. Chandrapal Singh Yadav as a Director of the Company, liable to retire by rotation.

AGM Proceedings

The AGM was conducted through Video Conferencing (VC) / Other Audio Visual Means (OAVM) in compliance with regulatory guidelines. Key points from the meeting include:

• The meeting was chaired by Mr. Uday Shankar Jha.
• Mr. K Rahul Raju, Managing Director, was present along with other board members and key executives.
• The company's financial performance for the year ended March 31, 2025, was discussed.
• Shareholders were provided with remote e-voting facilities and e-voting during the AGM through Central Depository Services (India) Limited (CDSL).

Resolutions Passed

All resolutions presented at the AGM were passed with the requisite majority. These included:

1. Adoption of financial statements for the year ended March 31, 2025.
2. Reappointment of Mr. Chandrapal Singh Yadav as a Director.
3. Reappointment and continuation of Mr. Uday Shankar Jha as a Non-executive Director beyond 75 years of age.
4. Reappointment of Mr. Rajendra Mohan Gonela as an Independent Director for a second term and his continuation beyond 75 years of age.

The company affirmed that both Mr. Jha and Mr. Gonela are not debarred from holding the office of Director by any SEBI order or other authority.

Nagarjuna Fertilizers & Chemicals Limited's commitment to corporate governance is evident in its transparent approach to these appointments and its compliance with regulatory requirements for director appointments beyond the age of 75.