<p>The turnover, however, rose by 26 per cent to Rs 6,373.31 crore in the last fiscal, against Rs 5,065.04 crore in 2008-09.<br /><br />"We have posted a gross profit of Rs 83.91 crore. Still, we suffered a net loss of over Rs 50 crore as our interest liability to the banks from whom the funds were borrowed for undertaking tie-up business is mounting day by day," Nafed Chairman Bijender Singh said at the 53rd annual general meeting.<br /><br />Singh said the company paid Rs 135 crore in 2009-10 as interest to banks for the loan taken by it to undertake tie-up business with private parties in non-agricultural items.<br /><br />Nafed had provided financial support of Rs 3,945 crore to 62 private parties during 2003-2006. Out of that, it recovered Rs 2,874 crore and 29 firms turned defaulters resulting in a loss of Rs 1,600 crore (including interest) as of May 2010.<br /><br />The Chairman urged the government to bail-out Nafed by providing a financial package of interest-free Rs 1,200 crore.<br /><br />Singh assured that "Nafed would do its best to come up to the expectations of the government and utilise the financial support, being considered by them, judiciously".<br />The Chairman said that Board has agreed to offer 51 per cent equity to the government in lieu of financial support.<br /><br />The board has also accepted other terms and conditions like deletion of provision relating to undertaking business in non-agri and non-traditional items.<br /><br />"I am confident that with the support of the government and by increasing its business activities and performing them in a more proficient way, Nafed shall regain its image and better serve the farming community," Singh said.</p>
<p>The turnover, however, rose by 26 per cent to Rs 6,373.31 crore in the last fiscal, against Rs 5,065.04 crore in 2008-09.<br /><br />"We have posted a gross profit of Rs 83.91 crore. Still, we suffered a net loss of over Rs 50 crore as our interest liability to the banks from whom the funds were borrowed for undertaking tie-up business is mounting day by day," Nafed Chairman Bijender Singh said at the 53rd annual general meeting.<br /><br />Singh said the company paid Rs 135 crore in 2009-10 as interest to banks for the loan taken by it to undertake tie-up business with private parties in non-agricultural items.<br /><br />Nafed had provided financial support of Rs 3,945 crore to 62 private parties during 2003-2006. Out of that, it recovered Rs 2,874 crore and 29 firms turned defaulters resulting in a loss of Rs 1,600 crore (including interest) as of May 2010.<br /><br />The Chairman urged the government to bail-out Nafed by providing a financial package of interest-free Rs 1,200 crore.<br /><br />Singh assured that "Nafed would do its best to come up to the expectations of the government and utilise the financial support, being considered by them, judiciously".<br />The Chairman said that Board has agreed to offer 51 per cent equity to the government in lieu of financial support.<br /><br />The board has also accepted other terms and conditions like deletion of provision relating to undertaking business in non-agri and non-traditional items.<br /><br />"I am confident that with the support of the government and by increasing its business activities and performing them in a more proficient way, Nafed shall regain its image and better serve the farming community," Singh said.</p>