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Notes to Accounts of Tata Chemicals Ltd.

Mar 31, 2017

1. RECENT ACCOUNTING PRONOUNCEMENTS Standards issued but not yet effective

I n March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7 - Statement of cash flows and Ind AS 102 - Share-based payment. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to Ind AS 7 - Statement of cash flows and Ind AS 102 - Share-based payment, respectively. The amendments are applicable from 1 April, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the fair values, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The requirements of the amendment have no impact on the financial statements as the standard is not applicable to the Company.

2. TRANSITION TO IND AS

The Company has prepared financial statements which comply with Ind AS applicable for period ending on 31 March, 2017, together with the comparative period data as at and for the year ended 31 March, 2016, as described in the summary of significant accounting policies (note 2 of the financial statements). In preparing these financial statements, the Company''s opening Balance Sheet was prepared as at 1 April, 2015 (Transition Date''), the Company''s date of transition to Ind AS.

This note explains the principal adjustments made by the Company in restating its financial statements prepared on the basis of the Previous GAAP, including the Balance Sheet as at 1 April, 2015 and the financial statements as at and for the year ended 31 March, 2016 to Ind AS.

A. Optional exemptions availed:

In preparing the financial statements, the Company has applied the below mentioned optional exemptions as prescribed under Ind AS 101 - First-time Adoption of Indian Accounting Standards and applicable from the Transition date:

i Deemed cost

I nd AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its PPE as recognized in the financial statements as at the date of transition to Ind AS, measured as per the Previous GAAP and use that as its deemed cost after making necessary adjustments for decommissioning liabilities.

This exemption can also be used for Intangible assets covered under Ind AS 38 - Intangible Assets. Accordingly, the Company has opted to consider the carrying value of its PPE and intangible assets as recognized in the Previous GAAP on date of transition as deemed cost after adjusting decommissioning liabilities.

The Company has elected to recognize the decommissioning liability, within the scope of Ind AS 16 - Property, Plant and Equipment, by measuring the liability in accordance with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets, as at the Transition date.

ii Investments in subsidiaries, joint venture and associates

The Company has elected to consider the carrying cost of equity investments in subsidiaries, joint venture and associates as per the Previous GAAP as the deemed cost as at the Transition date.

iii Designation of previously recognized financial instruments

Ind AS 101 permits an entity to designate particular equity investments (other than equity investments in subsidiaries, joint arrangements and associates) as FVTOCI based on facts and circumstances at the date of transition to Ind AS. The Company has opted to avail this exemption to designate certain equity investments as FVTOCI on the date of Transition.

iv Leases

Ind AS17 - Leases requires an entity to assess whether a contract or an arrangement is in the nature of a lease arrangement. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and recognized arrangements having embedded leases based on facts and circumstances existing as at the date of Transition.

B. Reconciliations

An explanation of how the transition from the Previous GAAP to Ind AS has affected the Company''s equity, Statement of Profit and Loss and other comprehensive income and Cash Flows is set out in the following tables and notes that accompany the tables.

B3 Explanation of material adjustments to

Statement of cash flow for the year ended 31 March, 2016:

There are no material adjustments to Statement of Cash Flows as reported under the Previous GAAP except for decrease in cash from financing activities and corresponding increase in cash from operating activities of '' 505.00 crore for the year ended 31 March, 2016. Consequent to the classification of suppliers'' credit as a part of borrowings, the cash flows arising in this regard have been classified as a part of ''Cash flows used in financing activities''.

C Notes to reconciliations: 1 Fair valuation of investments FVTOCI Investments

In respect of FVTOCI investments, fair value adjustment under Ind AS has resulted in an increase in equity under Ind AS by Rs, 1,425.98 crore and Rs, 1,666.89 crore as of 31 March, 2016 and 1 April, 2015, respectively.

FVTPL Investments

In respect of FVTPL investments, fair value adjustment under Ind AS has resulted in an increase in profit before tax under Ind AS by Rs, 56.31 crore for the year ended 31 March, 2016.

3 Fair valuation of derivative contracts

Under Ind AS, all derivative contracts need to be recognized at fair values, with changes in fair value, recognized in the profit or loss or in the OCI depending upon whether the derivative contract has been designated under hedging relationship. Under the Indian GAAP, only derivatives which were within the scope of AS 11 were recognized.

This difference has resulted in a decrease in equity under Ind AS by Rs, 17.00 crore and Rs, 19.67 crore as of 31 March, 2016 and 1 April, 2015, respectively.

4 Proposed dividend and dividend tax thereof

Under the Previous GAAP, proposed dividends including Dividend Distribution Tax are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind

AS, a proposed dividend is recognized as a liability in the period in which it is declared by the Company (usually when approved by share holders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of Rs, 382.02 crore for the year ended on 31 March, 2015 recorded for proposed dividend has been derecognized against retained earnings on 1 April, 2015. The proposed dividend for the year ended on 31 March, 2016 of Rs, 301.67 crore recognized under Indian GAAP was reduced from other payables with a corresponding impact in the retained earnings.

5 Remeasurements of defined benefit plans

Under the Previous GAAP, actuarial gains and losses, are charged to profit or loss, however under Ind AS, they form part of remeasurement of defined benefit liability/asset and are recognized in OCI. As a result Rs, 8.95 crore have been recognized in the OCI net of tax, for the year ended 31 March, 2016.

6 Provisions/Asset retirement obligation liability

The provision amount of asset retirement obligation is discounted to present value under Ind AS.

7 Arrangements in the nature of lease

The Company has identified certain arrangements in the nature of lease which have an element of finance lease. Under the Previous GAAP, in the absence of any specific guidance, the Company did not identify leases contained in such arrangements.

These differences mentioned above in note 5 and note 6 have resulted in a decrease in equity under Ind AS by Rs, 28.01 crore and Rs, 33.68 crore as of 31 March, 2016 and 1 April, 2015, respectively.

8 Deferred tax

Various transitional adjustments resulted in temporary differences between taxable profits and accounting profits. Tax adjustments includes deferred tax impact on account of difference between the Previous GAAP and Ind AS on the adjustments discussed above in notes 1 to 6.

(i) Loans to employees includes Rs, *(2016 and 2015: Rs, *) due from officer of the Company. Maximum balance outstanding during the year is Rs, *(previous Rs, *).

* value below Rs, 50,000

(ii) The Company had extended an unsecured subordinate loan to Tata Power Renewable Energy Limited (''TPREL'') for the purpose of setting up a 25 MW photovoltaic solar power plant and associate infrastructure at Mithapur, Gujarat. The loan carries an interest rate based on State Bank of India base rate plus 1.25%. In the year 2015-16, TPREL has repaid the entire loan along with the accrued interest.

(ii) The cost of inventories recognized as an expense in form of raw material consumption, stores consumption, trading purchases, packing materials consumption and power and fuel consumption during the year in respect of the continuing operations was Rs, 3,800.59 crore (previous year: Rs, 5,674.69 crore)

(iii) The cost of inventories recognized as an expense includes Rs, 35.47 crore (previous year: Rs, 37.06 crore) in respect of write-down of inventories to net realizable value and has been reduced by Rs, 2.55 crore (previous year: Rs,1.53 crore) in respect of reversal of such write-down. Reversal of previous write-downs have been largely as a result of increased selling prices of certain products.

(iv) Inventories have been offered as security against the working capital loans provided by the bank.

(ii) Terms/ rights attached to equity shares

The Company has issued one class of ordinary shares at par value of Rs, 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts, in proportion to their shareholding.

Note:

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets have been disposed off._

Footnotes:

Details of term loans and other borrowings as at 31 March, 2017 are stated below:

(i) Unsecured redeemable Non-convertible debentures having face value of Rs, 10 lakh each are redeemable at par on 2 July, 2019 and bears interest rate of 10% per annum.

(ii) The External Commercial Borrowings (ECB) are due for repayments on 22 October, 2018 Rs, 410.31 crore (2016: Rs, 419.20 crore and 2015: Rs, 395.44 crore) (USD 63.27 million) and on 21 October, 2019 Rs, 411.54 crore (2016: Rs, 420.45 crore and 2015: Rs, 396.65 crore)(USD 63.46 million) and bear interest of LIBOR plus spread of 1.95%, payable semiannually.

Current portion due for repayment within one year is Rs, 410.31 crore (USD 63.27 million) (2016: Rs, 397 crore (USD 60 million) and 2015: Rs, NIL) and bears interest of LIBOR plus spread of 1.95% (2016: LIBOR plus spread of 1.65%), payable semiannually. This has been disclosed in note 17 within the heading current maturity of long term debt under other financial liabilities (current).

(iii) The Company has entered into an agreement with the Department of Biotechnology (DBT) for a project on boosting crop health and yield. DBT has approved a loan of Rs, 0.15 crore (2016: Rs, 0.15 crore). The Company has received three installments of this loan aggregating to Rs, 0.11 crore (2016: Rs, 0.11 crore). The loan bears interest of 2% per annum repayable in 10 equal half yearly installments. Current portion has been disclosed in note 17. The entire loan amount has been repaid during the current year.

(i) Loans from banks on Cash Credit and Working Capital Demand Loan are secured by way of hypothecation of stocks of raw materials, finished products, stores and work-in-progress as well as book debts.

(ii) Buyer''s credit due for payment within 180 days bears interest of ''LIBOR plus spread'' of 1.26% per annum (2016 : 0.87% per annum and 2015: 0.75 % per annum) secured against current assets.

(iii) Suppliers'' credit due for payment within 180 days bears interest of ''LIBOR plus spread'' of 1.31% per annum (2016 : 0.81% per annum and 2015: 0.72 % per annum) secured against current assets.

(iv) During the year 2017, unsecured working capital demand loan of '' 50 crore was availed by the Company which would be repaid in May 2017. The loan bears interest of one month T-bill 0.05% per annum..

(v) The Department of Fertilizers, Government of India, has notified ''Special Banking Arrangement'' scheme to address the concern of delay in subsidy disbursement. This arrangement has been made by the Government with the State Bank of India Consortium (SBI Consortium). Loans under this scheme are secured by hypothecation of subsidy receivables.

Fixed interest rate of 8.00% per annum out of which 6.25% per annum shall be borne by the Government and repaid in April 2017. The remaining 1.75% per annum shall be borne by the Company and will be recovered upfront for 60 days from the company at the time of disbursement of the facility.

Footnotes:

(i) The External Commercial Borrowing (ECB) is due for repayments on 23 October, 2017 Rs, 410.31 crore (USD 63.27 million) and bear interest of LIBOR plus spread of 1.95%, payable annually.

(ii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except for Rs,.0.53 crore (2016 : Rs, 0.44 crore and 2015 Rs,.0.33 crore), wherein legal disputes with regards to ownership have remained unresolved.

Nature of provisions :

1) Assets retirement obligation includes provision towards site restoration expense and decomissioning charges.

2) Warranty: The Company gives warranties on certain products that fail to perform satisfactorily during the warranty period. Provision made as at 31 March, 2017 represents the amount of the expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within a period of one year from the date of Balance Sheet.

3) Provision for others represents management''s best estimate of outflow of economic resources in respect of water charges, entry tax, land revenue and other disputed items including direct taxes, indirect taxes and other claims.

(i) For details relating to discontinued operation (urea and customized fertilizer business at Babrala, Uttar Pradesh) refer note 31.

(ii) The Company has identified assets relating to non-current assets to be disposed of and classified the same as assets held for sale. No impairment loss has been recognized on the date of classification or as at reporting date. The Company expects that the fair value (estimated based on the recent market prices of similar assets in similar locations) less costs to sell is higher than the carrying amount.

NOTE 9: GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(a) The Company makes contribution towards provident fund, in substance a defined contribution retirement benefit plan and towards pension fund, superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. The Company is liable to pay to the provident fund to the extent of the amount contributed and any shortfall in the fund assets based on government specified minimum rates of return relating to current services. The Company recognize such contribution and shortfall if any as an expense in the year incurred.

On account of the above contribution plans, a sum of Rs, 15.00 crore (previous year Rs, 14.28 crore) has been charged to the Statement of Profit and Loss.

(b) The Company makes annual contributions to the Tata Chemicals Employees'' Gratuity Trust and to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, for funding the defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on termination of employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half month, three fourth month and full month salary last drawn for each completed year of service depending upon the completed years of continuous service in case of retirement or death while in employment. In case of termination, the benefit is equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of continuous service.

The Company also provides post retirement medical benefits to eligible employees under which employees at Mithapur who have retired from service of the Company are entitled for free medical facility at the Company hospital during their lifetime. Other employees are entitled to domiciliary treatment exceeding the entitled limits for the treatments covered under the Health Insurance Scheme up to slabs defined in the scheme. The floater medic aim policy also covers retired employees based on eligibility, for such benefit.

The Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors who have completed ten years of continuous service in Tata Group and three years of continuous service as Managing Director/Executive Director or five years of continuous service as Managing Director/Executive Director. The directors are entitled up to seventy five percent of last drawn salary for life and on death 50% of the pension is payable to the spouse for the rest of his/her life.

Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed one year of continuous service. In case of untimely death of the employee, nominated beneficiary is entitled to an amount equal to the last drawn salary (Basic Salary, DA and FDA) till the normal retirement date of the deceased employee.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2017. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognized in the Company''s financial statements as at 31 March, 2017 for the Defined Benefit Plans.

10 Risk exposure :

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

Investment risk: If future investment returns on assets are lower than assumed in valuation, the scheme''s assets will be lower, and the funding level higher, than expected:

Changes in bond yields: A decrease in yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings:

Longevity risk: If improvements in life expectancy are greater than assumed, the cost of benefits will increase because pensions are paid for longer period than expected. This will mean the funding level will be higher than expected:

Inflation risk: I f inflation is greeted than assumed, the cost of benefits will increase as pension increases and deferred revaluations are linked to inflation:

(a) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(b) The estimates of future salary increases, considered in actuarial valuation, take into account the inflation, seniority, promotion and other relevant factors.

(c) Valuation technique to determine fair value

The following methods and assumptions were used to estimate the fair values of financial instruments:

(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.

(iii) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative financial instruments is based on observable market inputs including currency spot and forward rate, yield curves, currency volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying instruments etc. and use of appropriate valuation models.

(iv) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

(v) The fair values of the 10% unsecured redeemable nonconvertible debentures (included in long term borrowings) are derived from quoted market prices. The Company has no other long-term borrowings with fixed-rate of interest.

(d) Financial risk management objectives

The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimize the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Risk Management Group (''TRMG'') manages these risks. TRMG that advises on financial risks and the appropriate financial risk governance framework for the Company and provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. The Company''s policy is not to trade in derivatives for speculative purposes.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as equity price risk and commodity risk. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative financial instruments.

Foreign currency risk management

Foreign exchange risk arises on future commercial transactions and on all recognized monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken. Policy also includes mandatory initial hedging requirements for exposure above a threshold.

The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and foreign currency borrowings, primarily with respect to USD.

Based on the movements in the foreign exchange rates historically and the prevailing market conditions as at the reporting date, the Company''s Management has concluded that the above mentioned rates used for sensitivity are reasonable benchmarks.

The Company''s exposure to foreign currency changes for all other currencies is not material.

Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The Company''s exposure to the risk of changes in market rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company''s policy is generally to undertake long-term borrowings using facilities that carry floating-interest rate. The Company manages its interest rate risk by entering into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

As the Company does not have exposure to any floating-interest bearing assets, or any significant long-term fixed-interest bearing assets, its interest income and related cash inflows are not affected by changes in market interest rates.

Interest rate sensitivity

No sensitivity analysis is prepared as the Company does not expect any material effect on the Company''s results arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the reporting period.

Equity price risks management

Equity price risk is related to the change in market price of the investments in quoted equity securities. The Company''s exposure to equity price risk arises from investment held by the Company and classified as FVTOCI. In general, these investments are strategic investments and are not held for trading purposes. Reports on the equity portfolio are submitted to the Company''s senior management on a regular basis.

Equity price sensitivity analysis

If prices of quoted equity securities had been 5% higher / (lower), the Other Comprehensive Income for the year ended March 31, 2017 and 2016 would increase / (decrease) by Rs, 82.70 crore and Rs, 63.19 crore respectively.

Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financing activities, including deposits with banks and financial institutions, investment in mutual funds, foreign exchange transactions and other financial instruments.

The carrying amount of financial assets represents the maximum credit exposure, being the total of the carrying amount of balances with banks, short term deposits with banks, short term investment, trade receivables and other financial assets excluding equity investments.

Trade receivables

Trade receivables of the Company are typically unsecured and derived from sales made to a large number of independent customers. Customer credit risk is managed by each business unit subject to established policies, procedures and control relating to customer credit risk management. Before accepting any new customer, the Company has appropriate level of control procedures to assess the potential customer''s credit quality. The credit-worthiness of its customers are reviewed based on their financial position, past experience and other relevant factors. The credit period provided by the Company to its customers generally ranges from 0-60 days. Outstanding customer receivables are reviewed periodically .

The credit risk related to the Trade receivables is mitigated by taking security deposits / bank guarantee / letter of credit - as and where considered necessary, setting appropriate credit terms and by setting and monitoring internal limits on exposure to individual customers.

There is no substantial concentration of credit risk as the Revenue / Trade receivables pertaining to any of the single customer do not exceed 10% of Company revenue.

Financial instruments and cash deposits

Credit risk from balances/investments with banks and financial institutions is managed in accordance with the Company''s treasury risk management policy. Investments of surplus funds are made only with approved counterparties and within limits assigned to each counterparty. The limits are assigned based on corpus of investable surplus and corpus of the investment avenue. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Financial guarantees

Financial guarantees disclosed in note 41.1 (b) have been provided as corporate guarantees to financial institutions and banks that have extended credit facilities to the Company''s subsidiaries. In this regard, the Company does not foresee any significant credit risk exposure.

All the derivative financial liabilities are included in the above analysis, as their contractual maturity dates are essential for the understanding of the timing of the under-lying cash flows.

NOTE 38: CAPITAL MANAGEMENT

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s risk management committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as and when required.

The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Company invests its surplus funds in bank fixed deposit and liquid schemes of mutual funds, which carry no/negligible mark to market risks.

The below table analyses the Company''s non-derivative financial liabilities as at the reporting date, into relevant maturity groupings based on the remaining period (as at that date) to the contractual maturity date. The amounts disclosed in the below table are the contractual un-discounted cash flows.

Subsidiaries

NOTE 11: RELATED PARTY DISCLOSURE

(a) Related parties and their relationship (as defined under IndAS-24 Related Party Disclosures)

Direct

1 Rallis India Limited, India

2 Bio Energy Venture - 1 (Mauritius) Pvt. Ltd, Mauritius Indirect

1 Rallis Chemistry Exports Limited, India

2 Met helix Life Sciences Limited, India

3 Zero Waste Agro Organics Limited (ZWAOL), India

4 PT Met helix Life sciences Indonesia (PTLI), Indonesia @

5 Valley Holdings Inc., United States of America

6 Tata Chemicals North America Inc., United States of America

7 General Chemical International Inc., United States of America

8 NHO Canada Holdings Inc., United States of America

9 Tata Chemicals (Soda Ash) Partners (TCSAP), United States of America **

10 Tata Chemicals (Soda Ash) Partners Holdings(TCSAPH), United States of America **

11 TCSAP LLC,United States of America

12 General Chemical Canada Holding Inc., Canada *

13 General Chemical (Great Britain) Limited, United Kingdom

14 Home field Pvt UK Limited, United Kingdom

15 Homefield 2 UK Limited, United Kingdom

16 Tata Chemicals Africa Holdings Limited, United Kingdom

17 Tata Chemicals Europe Holdings Limited, United Kingdom

18 Tata Chemicals Europe Limited, United Kingdom

19 Winning ton CHP Limited, United Kingdom

20 Brunner Mond Group Limited, United Kingdom

21 Brunner Mond Limited , United Kingdom

22 Tata Chemicals Magadi Limited, United Kingdom

23 Northwick Resource Management Limited, United Kingdom

24 Brunner Mond Generation Company Limited , United Kingdom

25 Goshutes Holdings (UK) Limited, United Kingdom

26 TCNA (UK) Limited, United Kingdom

27 British Salt Limited, United Kingdom

28 Cheshire Salt Holdings Limited, United Kingdom

29 Cheshire Salt Limited, United Kingdom

30 Brine field Storage Limited, United Kingdom

31 Cheshire Cavity Storage 2 Limited, United Kingdom

32 Cheshire Compressor Limited, United Kingdom

33 Irish Feeds Limited, United Kingdom

34 New Cheshire Salt Works Limited, United Kingdom

35 Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius #

36 Tata Chemicals International Pte. Limited, Singapore

37 Tata Chemicals (South Africa) Proprietary Limited, South Africa

38 Grown Energy (Pty) Limited, South Africa #

39 Magadi Railway Company Limited, Kenya

40 Grown Energy Zambeze Limited, Mozambique #

41 Alcad, United States of America **

Joint Ventures Direct

1 Indo Maroc Phosphor S.A., Morocco

Indirect

1 The Block Salt Company Limited, United Kingdom (Holding by New Cheshire Salt Works Limited)

2 JOil (S) Pte. Ltd and its subsidiaries (Holding by Tata Chemicals International Pte. Limited)

3 Natronx Technologies LLC, United States of America (Holding by TCSAP)

Associate

Indirect

1 Crystal Peak Minerals Inc., Canada (Upton 24 May, 2016)

Other related parties

1 Tata Chemicals Ltd Provident Fund

2 Tata Chemicals Ltd Emp Pension Func

3 Tata Chemicals Superannuation Fund

4 Tata Chemicals Employees Gratuity Trust

5 TCL Employees Gratuity Fund

Key Management Personnel

1 Mr. R. Mukundan, Managing Director and CEO

2 Mr P K Ghose , Executive Director and CFO ( Up to 30 September, 2015)

Promoter Group

Tata Sons Limited, India

List of subsidiaries and joint ventures of Tata Sons Limited @@

1 Advinus Therapeutics Limited

2 Indian Rotorcraft Limited

3 TATA AIG General Insurance Company Limited

4 Tata Auto comp Systems Limited

5 Tata Auto comp Hendrickson

6 Tata Capital Forex Limited

7 Tata Capital Financial Services Limited

8 TC Travel and Services Limited

9 Tata International Limited

10 Tata International Singapore Pte Limited

11 Tata Consultancy Services Limited

12 Tata Interactive Systems (Division of Tata Industries Limited)

13 TATA AIA Life Insurance Company Limited

14 Tata Business Support Services Limited

15 Tata Consulting Engineers Limited

16 Infiniti Retail Limited

17 TASEC Limited (formerly TAS-AGT Systems Limited)

18 Tata Strategic Management Group (Division of Tata Industries Limited)

19 Tata Industries Limited

20 Tata Undistorted Limited (formerly Tata Industrial Services Limited)

21 Tata Teleservices Limited

22 Ecofirst Services Limited

23 Tata Realty and Infrastructure Limited

24 Tata Investment Corporation Limited

25 Ewart Investments Limited

26 Simto Investment Company Limited

27 Tata International Limited

@@ The above list includes the Companies with whom Tata Chemicals Limited has entered into the transactions during the course of the year.

* General Chemical Canada Holding Inc. has been dissolved during the year ended 31 March, 2017.

** A general partnership formed under the laws of the State of Delaware (USA).

*** General Chemical (Great Britain) Limited has been dissolved during the year ended 31 March, 2016.

@ PT Met helix Life sciences Indonesia was incorporated in the year 2016-17.

# During the year ended 31 March, 2016, the Company''s wholly owned subsidiary Bio Energy Venture - 1 (Mauritius) Pvt. Ltd, had entered into an agreement for sale of its entire stake in Grown Energy Zambeze Holdings Pvt. Ltd. and its subsidiaries. The administrative approvals in the respective jurisdictions for effecting the proposed sale are awaited.

The above contingent liability include Rs, 0.78 crore (2016 : Rs, 0.90 crore and 2015: Rs, 1.75 crore) relating to assets held for discontinued operation.

(b) Guarantees provided by the Company to third parties on behalf of subsidiaries aggregates USD 408.40 million & GBP 2.76 million (Rs, 2670.77 crore) [2016 : USD 408.40 million & GBP 2.76 million (Rs, 2,732.17 crore)] [2015 : USD 360.40 million and GBP 2.76 million (Rs, 2,277.99 crore)].

NOTE 12: APPROVAL OF FINANCIAL STATEMENTS

These financial statements were approved for issue by the Board of Directors on 26 May, 2017.


Mar 31, 2015

(i) Management has identified three reportable business segments, namely :

- Inorganic chemicals: comprising soda ash, marine chemicals, caustic soda, cement, bulk chemicals and salt.

- Fertilisers: comprising fertilisers including urea and phosphatic.

- Other agri inputs: comprising traded seeds, pesticides, speciality crop nutrients

- Others: comprising pulses, spices, water purifiers and nutritional solutions

Segments have been identified and reported taking into account the nature of products, the integration of manufacturing processes, the organisation structure and the internal financial reporting systems.

(ii) Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

(iii) Related party disclosure:

(a) Related Parties and their relationship (as defined under AS-18 Related Party Disclosures)

Subsidiaries Joint Ventures Associate

Direct Rallis India Limited, India Bio Energy Venture - 1 (Mauritius) Private Limited, Mauritius

Direct EPM Mining Venture Indo Maroc Phosphore Inc., Canada S. A., Morocco

Indirect

Homefield Private UK Limited, United Kingdom Tata Chemicals Africa Holdings Limited, United Kingdom Tata Chemicals South Africa (Proprietary) Limited, South Africa Tata Chemicals Magadi Limited, United Kingdom Magadi Railway Company Limited, Kenya

Indirect

Alcad, United States of America JOil (S) Pte. Limited, Singapore The Block Salt Company Limited, United Kingdom Natronx Technologies LLC, United States of America Kemex B.V., Netherlands @ Homefield 2 UK Limited, United Kingdom

Tata Chemicals Europe Holdings Limited, United Kingdom

Cheshire Salt Holdings Limited, United Kingdom

Cheshire Salt Limited, United Kingdom

British Salt Limited, United Kingdom

Brinefield Storage Limited, United Kingdom

Cheshire Cavity Storage 2 Limited, United Kingdom

Cheshire Compressor Limited, United Kingdom

Irish Feeds Limited, United Kingdom

New Cheshire Salt Works Limited, United Kingdom

Brunner Mond Group Limited, United Kingdom

Tata Chemicals Europe Limited, United Kingdom

Winnington CHP Limited

Brunner Mond B.V., Netherlands@

Brunner Mond Generation Company Limited, United Kingdom

Brunner Mond Limited, United Kingdom

Northwich Resource Management Limited, United Kingdom

Gusiute Holdings (UK) Limited, United Kingdom

Tata Chemicals North America (UK) Limited, United Kingdom*

Valley Holdings Inc., United States of America Tata Chemicals North America Inc., United States of America General Chemical International Inc., United States of America General Chemical Great Britain Limited, United Kingdom NHO Canada Holdings Inc., United States of America General Chemical Canada Holding Inc., Canada GCSAP Canada Inc., Canada***

Tata Chemicals (Soda Ash) Partners Holdings (TCSAPH), United States of America **

TCSAP LLC, United States of America

Tata Chemicals (Soda Ash) Partners (TCSAP), United States of America **

Tata Chemicals International Pte. Limited, Singapore

Grown Energy Zambeze Holdings Private Limited, Mauritius

Grown Energy (Pty) Limited, South Africa

Grown Energy Zambeze Limitada, Mozambique

Rallis Chemistry Exports Limited, India

Metahelix Life Sciences Limited (Metahelix), India

Zero Waste Agro Organics Limited (ZWAOL), India##

Brunner Mond B.V. and Kemax B.V. ceased to exist with effect from December 11,2013.

Tata Chemicals North America (UK) Limited, a subsidiary was incorporated on 22nd August, 2014

a general partnership formed under the laws of the State of Delaware (USA).

GCSAP Canada Inc. dissolved as a subsidiary with effect from 28th May, 2014.

Rallis has acquired additional equity shares, consequent to which share has increased to 73.59% from during the year.

Key Management Personnel:

Mr. R. Mukundan, Managing Director Mr. P. K. Ghose, Executive Director & CFO Promoter Group Tata Sons Limited, India

51.02% in ZWAOL

(iv) Employee benefit obligations:

(a) The Company makes contribution towards provident fund, in substance a defined contribution retirement benefit plan and towards pension, superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

On account of the above Contribution Plans, a sum of Rs 12.78 crore (previous year Rs 12.02 crore) has been charged to the Statement of Profit and Loss.

(b) The Company makes annual contributions to the Tata Chemicals Employees'' Gratuity Trust and to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, for funding the defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on termination of employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half month, three fourth month and full month salary last drawn for each completed year of service depending upon the completed years of continuous service in case of retirement or death while in employment. Incase of termination, the benefit is equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of continuous service.

The Company also provides post retirement medical benefits to eligible employees under which employees at Mithapur who have retired from service of the Company are entitled for free medical facility at the Company hospital during their lifetime. Other employees are entitled to domiciliary treatment exceeding the entitled limits for the treatments covered under the Health Insurance Scheme upto slabs defined in the scheme. The floater mediclaim policy also covers retired employees based on eligibility, for such benefit.

The Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors who have completed ten years of continuous service in Tata Group and three years of continuous service as Managing Director/Executive Director or five years of continuous service as Managing Director/Executive Director. The directors are entitled to seventy five percent of last drawn salary for life and on death 50% of the pension is payable to the wife for the rest of her life.

Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed one year of continuous service. Incase of untimely death of the employee, nominated sbeneficiary is entitled to an amount equal to the last drawn salary till the normal retirement date of the deceased employee.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31st March, 2015. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Company''s financial statements as at 31st March, 2015 for the Defined Benefits Plans.

(a) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(b) Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(c) The estimates of future salary increases, considered in actuarial valuation, take into account the inflation, seniority, promotion and other relevant factors.

(vi) Disclosure as required by AS - 29 "Provisions, Contingent Liabilities and Contingent Assets" in respect of provisions as at 31st March, 2015

(a) The Company has made provision for various obligations and disputed liabilities based on its assessment of the amount it estimates to incur to meet such obligations, details of which are given below.

(b) Nature of provisions:

(i) Warranty: The Company gives warranties on certain products that fail to perform satisfactorily during the warranty period. Provision made as at March 31,2015 represents the amount of the expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within a period of one year from the date of Balance Sheet.

(ii) Provision for site restoration expenses is in respect of afforestation and bio-diversity charges.

(iii) Other provisions represent mainly provision for litigations that are expected to materialise in respect of matters in appeal and expected tax liability in respect of indirect and other taxes.

(viii) Contingent liabilities and commitments (to the extent not provided for):

(i) Contingent liabilities:

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs 208.45 crore (previous year Rs 130.46 crore).

These are covered by the charge created in favour of the Company''s bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided by the Company to third parties on behalf of subsidiaries aggregates USD 360.40 million and GBP 2.76 million (Rs 2,277.99 crore) (previous year USD 390.40 million (Rs 2,339.08 crore)). The purpose of the guarantees are as follows:

(a) USD 344.40 million, Rs 2,152.50 crore (previous year USD 374.40 million, Rs 2,243.21 crore) has been provided as security for the term loans from banks to Homefield Pvt. UK Limited, Tata Chemicals Magadi Limited and Tata Chemicals International Pte. Limited.

(b) USD 10 million, Rs 62.50 crore (previous year USD 10 million, Rs 59.92 crore) and USD 6 million, Rs 37.50 crore (previous year USD 6 million, Rs 35.95 crore) has been provided as security for the interest rate swap and working capital loan respectively taken by Tata Chemicals International Pte. Limited from banks.

(c) GBP 2.76 million, Rs 25.49 crore (previous year GBP Nil, '' Nil) has been provided to the Secretary of State for Business, Innovation and Skills, Department for Business, Innovation and Skills, London as parent guarantee in connection with the grant received by Tata Chemicals Europe Limited under the Industrial Development Act 1982.

(b) Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely to devolve on the Company relating to the following areas:

(Rsin crore) As at As at 2014-15 2013-14

(i) Excise and Customs 21.70 7.31

(ii) Sales Tax 9.75 9.47

(iii) Demand for utility charges 18.38 56.61

(iv) Labour and other claims against the Company not acknowledged as debt 8.79 5.63

(v) Income Tax (pending before Appellate authorities in respect of which the Company is in appeal) 160.29 140.60

(vi) Income Tax (decided in Company''s favour by Appellate authorities and Department is in further appeal) 46.93 35.76

(c) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 77.38 crore (previous year Rs 24.47 crore).

(b) For commitments related to derivatives and leases refer note 28 (vii) and 28 (ix) respectively (ix) Operating leases:

As a lessee

(a) General description of significant leasing arrangements :

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. The leases are non cancellable and are for a period of 15 years with an option for renewal by a further period of 10 years based on mutual agreements of all the parties.

(d) The lease deposit of Rs. Nil (previous year Rs 25 crore) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. Nil (previous year Rs. Nil) has been charged to the Statement of Profit and Loss on the principle of matching of revenue and costs.

(xi) Details of unutilised amounts out of issue of securities for the specific purpose:

During 2010-11, the Company issued Equity shares to Tata Sons Limited amounting to Rs 363.40 crore to fund various growth plans and projects. As at 31st March, 2015, this balance of Rs 363.40 crore (previous year Rs 363.40 crore) is pending utilisation for the specified activities and this unutilised amount has been kept invested in bank fixed deposits / money market mutual funds, pending final utilisation.

Includes Rs 0.42 crore (previous year Rs (0.62) crore) pertaining to wages, salaries and other revenue account

Includes Rs. Nil crore (previous year Rs. 0.64 crore) pertaining to wages, salaries and other revenue account

Includes Rs 7.50 crore (previous year Rs 5.11 crore) pertaining to wages, salaries and other revenue account

Includes Rs 9.86 crore (previous year Rs 8.26 crore) pertaining to wages, salaries and other revenue account

(xvii) Remittances in foreign currencies for dividends:

The Company has remitted during the year Rs 0.39 crore (previous year Rs 0.01 crore) in foreign currencies on account of dividends and does not have information as to the extent to which other remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders.

(xx) The figures in light print are for previous year.

(xxi) Asterisk (*) denotes figures below Rs 50,000.

(xxii) Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s figures.


Mar 31, 2014

NOTE 1. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(iv) Employee benefit obligations:

(a) The Company makes contribution towards provident fund, in substance a defined contribution retirement benefit plan and towards pension, superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

On account of the above Contribution Plans, a sum of Rs. 12.01 crore (previous year Rs. 11.79 crore) has been charged to the Statement of Profit and Loss.

(b) The Company makes annual contributions to the Tata Chemicals Employees'' Gratuity Trust and to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, both are funded defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of five l years of service.

The Company is also providing post retirement medical Benefits to qualifying employees. Similarly, the Company provides pension, housing / house rent allowance and medical Benefits to retired Managing and Executive Directors.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31st March, 2014. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Company''s financial statements as at 31st March, 2014 for the Defined Benefits Plans.

(b) Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(c) The estimates of future salary increases, considered in actuarial valuation, take into account the inflation, seniority, promotion and other relevant factors.

(d) The figures in light print are for previous year.

(viii) Contingent liabilities and commitments (to the extent not provided for):

(i) Contingent liabilities:

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 297.93 crore (previous year Rs. 267.96 crore). These are covered by the charge created in favour of the Company''s bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided to third parties on behalf of subsidiaries USD 390.40 million (Rs. 2,339.08 crore) (previous year USD 388.30 million (Rs.2,107.89 crore)).

(b) Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely devolve on the Company relating to the following areas:

(Rs. in crore)

As at As at 2013-14 2012-13

(i) Excise and Customs 7.31 3.26

(ii) Sales Tax 9.47 11.40

(iii) Demand for utility charges 56.61 56.69

(iv) Labour and other claims against the Company not acknowledged as debt 3.71 2.39

(v) Income Tax (pending before Appellate authorities in respect of which the Company is in appeal) 140.60 188.98

(vi) Income Tax (decided in Company''s favour by Appellate authorities and Department is in further appeal) 35.76 37.33

(c) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 24.47 crore (previous year Rs. 37.40 crore).

(b) Capital commitment towards investment in joint ventures Rs. 34.39 crore (previous year Rs. 31.15 crore).

(c) For commitments related to derivatives and leases refer note 28 (vii) and 28 (ix) respectively.

(ix) Operating leases: As a lessee

(a) General description of significant leasing arrangements:

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. The leases are non-cancellable and are for the period 15 years and may be renewed for a further period of 10 years based on mutual agreements of the parties.

(d) The lease deposit of Rs. 25 crore (previous year Rs. 25 crore) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. Nil (previous year Rs. 1.57 crore) has been charged to the Statement of Prof t and Loss on the principle of matching of revenue and costs.

(xi) Details of unutilised amounts out of issue of securities for the specific purpose:

During 2010-11, the Company has issued equity shares to Tata Sons Limited amounting to Rs. 363.40 crore to fund Company''s various growth projects. As at 31st March, 2014, this balance of Rs. 363.40 crore (31st March, 2013 Rs. 363.40 crore) is pending utilisation for the specified activities and this unutilised amount has been kept invested in bank fixed deposits / money market mutual funds, pending f nal utilisation.

(xx) Scheme of arrangement between erstwhile Homefield International Pvt. Ltd. "Homefield", a wholly owned subsidiary of the Company, with the Company:

(a) The scheme of arrangement (the "Scheme") between the erstwhile Homefield International Pvt. Ltd. ("Homefield"), a wholly owned subsidiary of the Company, with the Company was approved by the Honourable High Court of Judicature at Bombay (the "Hon. High Court") vide its order dated 7th March, 2014. The Scheme came into effect after the order of the Hon. High Court was f led with the Registrar of Companies, Mumbai, i.e. 29th April, 2014, (the "Effective Date") but took legal force and effect retrospectively from is 1st April, 2013 (the "Appointed Date").

(b) Thus the business of Homefield was deemed to be transferred to the Company with effect from 1st April, 2013. The transfer was recorded using the "Pooling of Interest" method as set out in the Accounting Standard (AS) 14 on accounting for amalgamations. Accordingly:

i. the assets and liabilities of Homefield as at 31st March, 2013, were transferred to the Company at their respective book values;

ii. the reserves of Homefield as on that date were recorded in the same form and at the same values as appearing in the financial statements of Homefield as at and for the year ended 31st March, 2013;

iii. the inter-company balances as on that date were cancelled; and

iv. the investments appearing in the books of account of the Company were cancelled against the share capital of Homefield with no residual surplus or def cit (as all the shares of Homefield were held by the Company).

(xxi) Asterisk (*) denotes f gures below Rs. 50,000.

(xxii) Previous year''s f gures have been regrouped / reclassif ed wherever necessary to make them comparable with the current year''s figures.


Mar 31, 2013

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(i) Contingent Liabilities and commitments (to the extent not provided for):

1. Contingent Liabilities:

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 267.96 crores (previous year Rs. 163.39 crores). These are covered by the charge created in favour of the Company''s bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided to third parties on behalf of subsidiaries USD 388.30 million (Rs. 2,107.89 crores) (previous year USD 138.30 million (Rs. 703.60 crores))

(b) Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely to devolve on the Company relating to the following areas:

2. Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 37.40 crores (previous year Rs. 59.67 crores).

(b) Capital commitment towards investment in joint ventures Rs. 31.15 crores (previous year Rs. 41.84 crores).

(c) For commitments related to derivatives and leases refer note 28 (vi) and 28 (viii) respectively.

(viii) Operating Leases:

As a lessee

(a) General description of significant leasing arrangements:

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. The leases are non-cancellable and are for the period 15 years and may be renewed for a further period of 10 years based on mutual agreements of the parties.

(d) The lease deposit of Rs. 25.00 crores (previous year Rs. 25.00 crores) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. 1.57 crores (previous year Rs. 2.20 crores) has been charged to the Statement of Profit and Loss on the principle of matching of revenue and costs.

(ii) Details of unutilised amounts out of issue of securities for the specific purpose:

During 2010-11, the Company has issued Equity shares to Tata Sons Limited amounting to Rs. 363.40 crores to fund Company''s various growth projects. As at 31st March, 2013, this balance of Rs. 363.40 crores (31st March, 2012 Rs. 363.40 crores) is pending utilisation for the specified activities and this unutilised amount has been kept invested in bank fixed deposits / money market mutual funds, pending final utilisation.

(iii) Remittances in Foreign Currencies for Dividends:

The Company has remitted during the year Rs. 41.22 crores (previous year Rs. 39.05 crores) in foreign currencies on account of dividends and does not have information as to the extent to which other remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders.

(iv) The Company at its Board meeting held on 8th February, 2013, approved the Scheme of Amalgamation (''the Scheme'') of Homefield International Pvt. Ltd.(''Homefield International Pvt. Ltd.'') which is a wholly owned subsidiary of the Company with its registered office in Mauritius. No shares of the Company will be issued and allotted in lieu or exchange of the equity shares of Homefield International Pvt. Ltd. under the Scheme. The appointed date of the Scheme is 1st April, 2013. A petition is being filed with the High Court of Judicature at Bombay for approval of the Scheme. No effect has been given in the financial statements pending the High Court approval.

(v) During the year ended 31st March, 2013, the Company has recognised subsidy income of Rs. 44.91 crores on Opening stock as on 1st April, 2011 of Raw Materials for Phosphatic and Potassic Fertilisers based on communication issued by Department of Fertilizers vide letter no. 23011/1/2010 - MPR (Pt) dated 22.08.12 with respect to earlier Office Memorandum dated 11th July, 2011 on mopping up of Subsidy increase under NBS Policy.

(vi) Asterisk (*) denotes figures below Rs. 50,000.

(vii) Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year''s figures.


Mar 31, 2012

Note 1: Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Notes :

(a) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(i) Based on approval of the members of the Company, in August 2010, the Company has issued 1,15,00,000 equity shares on a preferential basis to Tata Sons Limited (the promoter entity). (b) The equity shares of the Company have voting rights and are subject to the preferential rights as prescribed under law or those of the preference shareholders, if any. The equity shares are also subject to restrictions as prescribed under the Companies Act 1956.

Notes :

(a) Deferred tax asset of Rs. 39.27 crores (previous year Rs. 8.08 crores) have been adjusted on, exchange gain/loss on long term foreign currency monetary asset/liability have been offset against " Foreign currency monetary translation difference account".'

Notes :

(a) Provision for compensation under employee separation scheme (ESS) has been calculated on the basis of the net present value of the future monthly payments of pension.

(b) During the year, the Company entered into an agreement with Department of Science and Technology for creation of Capital Assets for Sulphate of Potash (SOP) Project. For the above Project, the Company has received its first installment of Government Grant amounting to Rs. 8.50 crores which has been retained in a separate bank account and included in "Other payables" above.

Notes :

(a) Loans from banks on cash credit are secured by hypothecation of stocks of raw materials, finished products, stores and work-in-process as well as book debts.

Notes :

(a) According to information available with the Management and relied upon by the auditors, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due to Micro and Small Enterprises under the said Act as at 31st March, 2012 as follows :

Notes:

(a) The external commercial borrowing is due for repayments on 4th June, 2012 and 4th December, 2012 in installments of Rs. 448.66 crores (USD 95 million) and Rs. 459.00 crores (USD 95 million) respectively.

Notes :

(a) During the year ended 31st March 2012 the Company exercised the option granted vide notification F.No.17/133/2008/CL- V dated 29th December, 2011 issued by the Ministry of Corporate Affairs and accordingly, the exchange differences arising on revaluation of long term foreign currency monetary items have been recognised over the shorter of the loan repayment period and 31st March, 2020. The unamortised balance as at 31st March 2012 of Rs. 81.72 crores (net of tax) (previous year 7 Nil (net of tax)) is presented as "Foreign Currency Monetary item Translation Difference Account" (FCMTDA).

(ii) Related Party Disclosure :

(a) Related Parties and their relationship (As identified by the Management)

Subsidiaries Joint Ventures Associates Key Management

Direct Direct EPM Mining Venture Inc, Personnel

Homefield International Pvt. Limited, Indo Maroc Phosphore S. A., Canada # Mr. R. Mukundan,

Mauritius Morocco Managing Director

Wyoming 1 (Mauritius) Pvt. Ltd., Khet-Se Agri Produce India Pvt. Ltd., Mr. P. K. Ghose,

Mauritius India Executive Director & CFO

Rallis India Limited, India *

Indirect Indirect Promoter Group

Bio Energy Venture - 1 Alcad, United State of America Tata Sons Limited

(Mauritius) Pvt. Ltd, Mauritius Kemex B.V., Netherlands

Homefield Pvt. UK Limited, Joil (S) Pte. Ltd, Singapore

United Kingdom The Block Salt Company Limited,

Tata Chemicals Africa Holdings Limited, United Kingdom

United Kingdom Natronx Technologies LLC,

Tata Chemicals South Africa Pty Limited, United States of America #

South Africa

Tata Chemicals Magadi Limited, United Kingdom

Magadi Railway Company Limited, Kenya

Homefield 2 UK Limited, United Kingdom

Tata Chemicals (Europe) Holdings Limited, United Kingdom

Cheshire Salt Holdings Limited, United Kingdom

Cheshire Salt Limited, United Kingdom

British Salt Limited, United Kingdom

Brinefield Storage Limited, United Kingdom

Broomco (4118) Limited, United Kingdom

Broomco (4119) Limited, United Kingdom

Broomco (4120) Limited, United Kingdom

Cheshire Cavity Storage 2 Limited, United Kingdom

Cheshire Compressor Limited, United Kingdom

Irish Feeds Limited, United Kingdom

New Cheshire Salt Works Limited, United Kingdom

Brunner Mond Group Limited, United Kingdom

Tata Chemicals Europe Limited, United Kingdom

Brunner Mond B.V., Netherland

Brunner Mond Generation Company Limited, United Kingdom

Brunner Mond Limited, United Kingdom

Northwich Resource Management Limited, United Kingdom

Gusiute Holdings (UK) Limited, United Kingdom

Valley Holdings Inc., United States of America

Tata Chemicals North America Inc., United States of America

General Chemical International Inc, United States of America

General Chemical Great Britain Limited, United States of America

NHO Canada Holdings Inc, United States of America

General Chemical Canada Holding Inc, Canada

TCSAP Holdings, United State of America **

TCSAP LLC, United State of America

Tata Chemicals (Soda Ash) partners (TCSAP), United State of America **

GCSAP Canada Inc, Canada

Tata Chemicals Asia Pacific Pte. Limited, Singapore

Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius

Grown Energy (Proprietary) Limited, South Africa

Grown Energy Zambeze Limitada, Mozambique

Rallis Chemistry Exports Limited, India

Metahelix Life Sciences Ltd (Metahelix), India

Dhaanya Seeds Ltd, India

* Rallis India Limited is a listed company.

** a general partnership formed under the laws of the State of Delaware (USA)

# Arising out of acquisitions during the year.

Wyoming 2 (Mauritius) Pvt. Limited merged with Wyoming 1 (Mauritius) Pvt. Limited w.e.f. 4th November, 2011

Bio Energy Venture - 2 (Mauritius) Pvt. Ltd merged with Bio Energy Venture - 1 (Mauritius) Pvt. Ltd w.e.f. 21st November, 2011

Wyoming 1 (Mauritius) Pvt. Limited merged with the Company w.e.f. 1st Janurary, 2012

Rallis Australasia Pty. Limited had liquidated as at 31st December, 2011

General Chemical (Soda Ash) Inc and Bayberry Management Corporation dissolved as at 11th January, 2012

(ii) Related Party Disclosure :

(a) Related Parties and their relationship (As identified by the Management)

Subsidiaries Joint Ventures Associates Key Management

Direct Direct EPM Mining Venture Inc, Personnel

Homefield International Pvt. Limited, Indo Maroc Phosphore S. A., Canada # Mr. R. Mukundan,

Mauritius Morocco Managing Director

Wyoming 1 (Mauritius) Pvt. Ltd., Khet-Se Agri Produce India Pvt. Ltd., Mr. P. K. Ghose,

Mauritius India Executive Director & CFO

Rallis India Limited, India *

Indirect Indirect Promoter Group

Bio Energy Venture - 1 Alcad, United State of America Tata Sons Limited

(Mauritius) Pvt. Ltd, Mauritius Kemex B.V., Netherlands

Homefield Pvt. UK Limited, Joil (S) Pte. Ltd, Singapore

United Kingdom The Block Salt Company Limited,

Tata Chemicals Africa Holdings Limited, United Kingdom

United Kingdom Natronx Technologies LLC,

Tata Chemicals South Africa Pty Limited, United States of America #

South Africa

Tata Chemicals Magadi Limited, United Kingdom

Magadi Railway Company Limited, Kenya

Homefield 2 UK Limited, United Kingdom

Tata Chemicals (Europe) Holdings Limited, United Kingdom

Cheshire Salt Holdings Limited, United Kingdom

Cheshire Salt Limited, United Kingdom

British Salt Limited, United Kingdom

Brinefield Storage Limited, United Kingdom

Broomco (4118) Limited, United Kingdom

Broomco (4119) Limited, United Kingdom

Broomco (4120) Limited, United Kingdom

Cheshire Cavity Storage 2 Limited, United Kingdom

Cheshire Compressor Limited, United Kingdom

Irish Feeds Limited, United Kingdom

New Cheshire Salt Works Limited, United Kingdom

Brunner Mond Group Limited, United Kingdom

Tata Chemicals Europe Limited, United Kingdom

Brunner Mond B.V., Netherland

Brunner Mond Generation Company Limited, United Kingdom

Brunner Mond Limited, United Kingdom

Northwich Resource Management Limited, United Kingdom

Gusiute Holdings (UK) Limited, United Kingdom

Valley Holdings Inc., United States of America

Tata Chemicals North America Inc., United States of America

General Chemical International Inc, United States of America

General Chemical Great Britain Limited, United States of America

NHO Canada Holdings Inc, United States of America

General Chemical Canada Holding Inc, Canada

TCSAP Holdings, United State of America **

TCSAP LLC, United State of America

Tata Chemicals (Soda Ash) partners (TCSAP), United State of America **

GCSAP Canada Inc, Canada

Tata Chemicals Asia Pacific Pte. Limited, Singapore

Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius

Grown Energy (Proprietary) Limited, South Africa

Grown Energy Zambeze Limitada, Mozambique

Rallis Chemistry Exports Limited, India

Metahelix Life Sciences Ltd (Metahelix), India

Dhaanya Seeds Ltd, India

* Rallis India Limited is a listed company.

** a general partnership formed under the laws of the State of Delaware (USA)

# Arising out of acquisitions during the year.

Wyoming 2 (Mauritius) Pvt. Limited merged with Wyoming 1 (Mauritius) Pvt. Limited w.e.f. 4th November, 2011

Bio Energy Venture - 2 (Mauritius) Pvt. Ltd merged with Bio Energy Venture - 1 (Mauritius) Pvt. Ltd w.e.f. 21st November, 2011

Wyoming 1 (Mauritius) Pvt. Limited merged with the Company w.e.f. 1st Janurary, 2012

Rallis Australasia Pty. Limited had liquidated as at 31st December, 2011

General Chemical (Soda Ash) Inc and Bayberry Management Corporation dissolved as at 11th January, 2012

(iii) Employee Benefit Obligations :

(a) The Company makes contribution towards provident fund in substance a defined contribution retirement benefit plan and towards pension, superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

On account of the above Contribution Plans, a sum of Rs. 5.70 crores (previous year Rs. 4.67 crores) has been charged to the Statement of Profit and Loss.

(b) The Company makes annual contributions to the Tata Chemicals Employees' Gratuity Trust and to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, both are funded defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme. Vesting occurs upon completion of five years of service.

The Company is also providing post retirement medical benefits to qualifying employees. Similarly, the Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31st March, 2012. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Company's financial statements as at 31st March, 2012 for the Defined Benefits Plans.

1 Changes in the defined benefit obligation: Projected defined benefit obligation

At the beginning of the year Current service cost

Interest cost

Actuarial (gain) / loss

Past service cost

Benefits paid

At the end of the year

2 Changes in the fair value of plan assets: Fair value of plan assets

At the beginning of the year

Expected return on plan assets

Employer's contributions

Actuarial gain / (loss)

Benefits paid

At the end of the year

(Asset)/Liability (net)

3 Net employee benefit expense (recognised in Employee Cost) for the year :

Current service cost

Interest defined benefit obligation

Expected return on plan assets

Net actuarial (gain) / loss recognised in the year

Past service cost

Total expenses recognised in the statement of profit and loss

Expected Employer's contribution next year

Actual Return on Plan Assets

4 Categories of plan assets as a percentage of the fair value of total plan assets :

Government of India Securities

Corporate Bonds

Equity Shares of Listed Companies

Others

Total

5 Assumptions used in accounting for gratuity and compensated absences, long service awards, post retirement medical benefits, directors' retirement obligations and family benefit scheme :

Discount rate

Expected rate of return on plan assets

Increase in Compensation cost

Increase in cost of award Healthcare cost increase rate Pension increase rate

(a) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(b) Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(c) The estimates of future salary increases, considered in actuarial valuation, take into account the inflation, seniority, promotion and other relevant factors.

(d) The figures in light print are for previous year.

6 Effect of Change in Assumed Health Care Cost Trend Rate :

Effect on the aggregate of the service cost and interest cost

Effect on defined benefit obligation

7 Experience Adjustments :

Defined Benefit Obligation

Plan Assets

Surplus / (Deficit)

Experience Adjustments on Plan Liabilities

Experience Adjustments on Plan Assets

Defined Benefit Obligation

Plan Assets

Surplus / (Deficit)

Experience Adjustments on Plan Liabilities

Experience Adjustments on Plan Assets

8 The details of the Company's post-retirement and other benefit plans for its employees given above are certified by the actuary and relied upon by the Auditors.

(iv) The proportionate share of assets, liabilities, income and expenditure, contingent liabilities and capital commitments of the Joint Ventures are as given below :

(v) Disclosure as required by AS 29 "Provisions, Contingent Liabilities and Contingent Assets" in respect of provisions as at 31st March, 2012

The company has made provision for various obligations and disputed liabilities based on its assessment of the amount it estimates to incurre to meet such obligations, details of which are given below.

(b) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

(i) Export receivables Rs. 7.12 crores (USD 1.40 million) (previous year Rs.7.58 crores (USD 1.7 million)).

(ii) Accounts payable Rs. 49.04 crores (USD 9.64 million) (previous year Rs. 46.87 crores (USD 10.51 million)).

(iii) Liability arising out of cross currency swap Rs. 1,399.06 crores (USD 275 million) (previous year Rs.1,226.36 crores (USD 275 million)).

(iv) Contingent Liabilities and commitments (to the extent not provided for) (i) Contingent Liabilities :

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 163.39 crores (previous year Rs. 193.96 crores). These are covered by the charge created in favour of the Company's bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided to third parties on behalf of subsidiaries USD 138.30 million (Rs. 703.60 crores) (previous year USD 138.30 million (Rs. 616.75 crores)).

(b) Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely devolve on the Company relating to the following areas :

(Rs. in crores)

As at As at 2011-12 2010-11

(i) Excise and Customs 4.21 73.92

(ii) Sales Tax 89.11 81.06

(iii) Demand for utility charges 56.86 56.83

(iv) Labour and other claims against the Company not acknowledged as debt 1.89 1.94

(v) Income Tax (Pending before Appellate authorities in respect of which the Company is in appeal) 186.72 239.23

(vi) Income Tax (Decided in Company's favour by Appellate authorities and Department is in further appeal) 37.33 37.33

(c) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 59.67 crores (previous year Rs. 141.87 crores).

(b) Capital commitment towards investment in joint ventures Rs. 42 crores (previous year Rs. 72 crores).

(c) For commitments related to leases and derivatives refer note 28 (viii) and 28 (vi) respectively.

(viii) Operating Leases : As a lessee

(a) General description of significant leasing arrangements :

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. The leases are non cancellable and are for the period 15 years and may be renewed for a further period of 10 years based on mutual agreements of the parties.

(b) Total of minimum lease payments

The total of future minimum lease payments under non-cancellable operating leases for a period : Not later than one year

Later than one year and not later than five years Later than five years

(c) Lease payments recognised in the Statement of Profit and Loss for the year

(d) The lease deposit of Rs. 25 crores (previous year Rs. 25 crores) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. 2.20 crores (previous year Rs. 2.17 crores) has been charged to the Statement of Profit and Loss on the principle of matching of revenue and costs.

(v) Details of unutilised amounts out of issue of securities for the specific purpose.

During 2010-11, the Company has issued equity shares to Tata Sons Limited amounting to Rs. 363.40 crores to fund Company's various growth projects. As at 31st March, 2012, this balance of Rs. 363.40 crores (31st March, 2011 Rs. 363.40 crores) is pending utilisation for the specified activities and this unutilised amount has been kept invested in bank fixed deposits / money market mutual funds, pending final utilisation.

(vi) Value of Imports (C.I.F. Value) :

(a) Raw Materials, fuel and traded products

(b) Stores, components and spare parts

(c) Capital goods

(vii) Expenditure in Foreign Currencies :

(a) Technical know how fees @

(b) Interest #

(c) Payments on other accounts #

@ Expenditure Rs. 0.35 crores (previous year Rs. 6.55 crores) at gross of TDS and Rs.3.34 crores (previous year Rs. 9.29 crores) net of TDS for the year 2011-12.

# Expenditure at gross of TDS for the year 2011-12 and 2010-11.

(viii) Remittances in Foreign Currencies for Dividends :

The Company has remitted during the year Rs. 39.05 crores (previous year Rs.29.85 crores) in foreign currencies on account of dividends and does not have information as to the extent to which other remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders.

(a) Number of Non-Resident Shareholders

(b) Number of Ordinary Shares held by them

(c) Gross amount of dividend (Rs. in crores)

(d) Year ended to which the dividend related

(ix) Earnings in Foreign Exchange :

(a) Export of goods on F.O.B. basis

(b) Interest

(c) Miscellaneous Income

(d) Dividend

(x) Value of imported and indigenous raw materials, stores, components and spare parts consumed:

(a) Imported

(b) Indigenous #

# Includes Rs. 15.43 crores (previous year Rs. 12.03 crores) pertaining to wages, salaries and other revenue accounts.

(xi) Scheme of Arrangement between erstwhile Wyoming 1 (Mauritius) Pvt. Ltd., a wholly owned subsidiary of the Company, with the Company :

(a) The Scheme of Arrangement between erstwhile Wyoming 1 (Mauritius) Pvt. Ltd. (Wyoming 1), a wholly owned subsidiary of the Company, with the Company was approved by the Honourable High Court of Mumbai, vide its order dated 4th May, 2012. The certified copy of the said High Court order has been received and filed with the Registrar of Companies, Mumbai and the said Scheme became effective on 23rd May, 2012.

(b) Accordingly, the Scheme has been given effect in the accounts and assets and liabilities and reserves of Wyoming 1, at their respective book value are appearing in the audited financial statements as at 31st December, 2011, have been transferred to and vested in the Company, along with profit for the period from 1st January, 2012 to 31st March, 2012 recognised in the Statement of Profit and Loss for the year ended 31st March, 2012. (the appointment date "date of the Scheme being 1st January, 2012")

(c) The summarised Statement of Profit and Loss relating to Wyoming 1 operations for the period from 1st January to 31st March is as under.

Statement of Profit and Loss for the period 1st January, 2012 to 31st March, 2012

(e) As Wyoming 1 is a wholly owned subsidiary of the Company, no shares of the Company has been issued and allotted in lieu or exchange of the equity shares of Wyoming 1 under the Scheme. 720,240,000 equity shares of the Wyoming 1 held by the company stands cancelled.

(f) In view of the aforesaid amalgamation, the figures for the current year are not comparable to those of the previous year.

(xii) For the year ended 31st March, 2012, the Company has not recognised subsidy income of Rs. 44.91 crores on Opening stock as at 1st April, 2011 of Raw Materials for Phosphatic & Potassic Fertilisers, in accordance with the Office Memorandum dated 11th July, 2011 issued by the Department of Fertilisers (DOF) which provides for the Subsidy on such Opening Stocks at old rates applicable to FY. 2010-11.

Based on the legal opinion made available, the said Office Memorandum is being represented against / contested. Had the Company recognised the subsidy income from sales made from such Opening Stocks as per the prevalent Nutrient Based Subsidy (NBS) policy without giving effect to the said Office Memorandum, the Sales / Income from operations and Net Profit After Tax would have been higher by Rs. 44.91 crores and Rs. 33.64 crores respectively for the year ended 31st March, 2012.

(xiii) Asterisk (*) denotes figures below Rs. 50,000.

(xiv) During the year ended 31st March, 2012, the Revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of financial statements, hence financial statements have been prepared as per notified Schedule VI. This has significantly impacted the disclosure and presentation made in the Financial statements. previous year figures have been regrouped/reclassified wherever necessary to correspond with the year's classification/disclosure.


Mar 31, 2011

1 Segment Reporting :

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.

2 Related Party Disclosure :

(a) Related Parties and their relationship

Subsidiaries Direct

Homefield International Pvt. Limited,

Mauritius

Wyoming 1 (Mauritius) Pvt. Ltd.,

Mauritius

Bio Energy Venture - 1 ( Mauritius) Pvt. Ltd.,

Mauritius

Rallis India Limited, India

Joint Ventures Direct

Indo Maroc Phosphore S. A.,

Morocco

Khet-Se Agri Produce India

Pvt. Ltd., India

Key Management Personnel

Mr. R. Mukundan, Managing Director

Mr. P. K. Ghose, Executive Director & CFO

Mr. Kapil Mehan (upto 31August, 2010), Executive Director

Indirect

Tata Chemicals Asia Pacific Pte. Limited,

Singapore

Homefield Pvt. UK Limited, United Kingdom

Homefield 2 UK Limited, United Kingdom

Tata Chemicals (Europe) Holding Limited*,

United Kingdom

Brunner Mond Group Limited,

Brunner Mond (UK) Limited,

United Kingdom

Brunner Mond Limited, United Kingdom

The Magadi Soda Company Limited,

United Kingdom

Brunner Mond (South Africa) (Pty) Limited,

South Africa

Northwich Resource Management Limited,

United Kingdom

Brunner Mond Generation Company Limited,

United Kingdom

Tata Chemicals Africa Holdings Limited**,

United Kingdom

Magadi Railway Company Limited, Kenya

Brunner Mond B.V., Netherlands

Wyoming 2 (Mauritius) Pvt. Limited,

Mauritius

Gusiute Holdings (UK) Limited,

United Kingdom

Valley Holdings Inc., United States of America

General Chemical Industrial Products Inc.,

United States of America

General Chemical International Inc.,

United States of America

NHO Canada Holdings Inc.,

United States of America

General Chemical (Soda Ash) Inc.,

United States of America

Bayberry Management Corporation,

United States of America

Alcad, United State of America

Kemex B.V., Netherlands

JOil (S) Pte. Ltd, Singapore

The Block Salt Company Limited #, United Kingdom

Lake Natron Resources Limited, Tanzania (upto 15th December,

United Kingdom 2009)

Indirect

General Chemicals (Soda Ash) Partners,

United States of America

General Chemical (Great Britain) Limited,

United Kingdom

General Chemical Canada Holding Inc.,

Canada

GCSAP Canada Inc, Canada

GCSAP Holdings, United States of America

GCSAP LLC, United States of America

Bio Energy Venture - 2 ( Mauritius) Pvt. Ltd.,

Mauritius

Grown Energy Zambeze Holdings Pvt. Ltd.,

Mauritius

Grown Energy (Proprietary) Limited*,

South Africa

Grown Energy Zambeze Limitada*,

Mozambique

Rallis Australasia Pty Limited***, Australia

Rallis Chemistry Exports Limited, India

Metahelix Life Sciences Ltd*, India

Dhaanya Seeds Ltd*, India

British Salt Limited*, United Kingdom

Cheshire Salt Holdings Limited*,

United Kingdom

Cheshire Salt Limited*, United Kingdom

Brinefield Storage Limited*, United Kingdom

Broomco (4118) Limited*, United Kingdom

Broomco (4119) Limited*, United Kingdom

Broomco (4120) Limited*, United Kingdom

Cheshire Cavity Storage 2 Limited*,

United Kingdom

Cheshire Compressor Limited*, United Kingdom

Irish Feeds Limited*, United Kingdom

New Cheshire Salt Works Limited*,

United Kingdom

*Companies which became subsidiaries / incorporated during the year.

**Name of Transcontinental Holdings Limited changed to this name w.e.f. December 12, 2010.

*** Has applied for voluntary liquidation as on 31st March, 2011. The Company expects to recover amount higher than the

carrying value of the investment.

# Joint Venture arising out of acquitions during the year.

3 Employee Benefit Obligations :

(a) The Company makes contribution towards provident fund, a defined benefit retirement plan and towards pension, superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

On account of Defined Contribution Plans, a sum of 7 4.67 crores (previous year Rs. 5.19 crores) has been charged to the Profit and Loss Account. On account of Provident Fund contribution, a sum of Rs. 5.51 crores (previous year Rs. 4.95 crores) has been charged to Profit and Loss Account.

(b) The Company makes annual contributions to the Tata Chemicals Employees Gratuity Trust and to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, both are funded defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Companys Gratuity Scheme. Vesting occurs upon completion of five years of service.

The Company is also providing post retirement medical benefits to qualifying employees. Similarly, the Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2011. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Companys financial statements as at 31 March, 2011 for the Defined Benefits Plans other than Provident Fund. According to the Management, in consultation with the actuary, actuarial valuation cannot be applied to reliably measure provident fund liabilities in the absence of guidance from the Actuarial Society of India.

(a) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(b) Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(c) The estimates of future salary increases, considered in actuarial valuation, take into account the inflation, seniority, promotion and other relevant factors.

(d) The figure in light print are for previous year.

(viii) The details of the Companys post-retirement and other benefit plans for its employees are given above, which are certified by the actuary and relied upon by the Auditors.

4. During the year 2009-10, the Company got notices for conversion of USD 42.756 million FCCBs into ordinary shares at a conversion price of Rs. 230.78 per ordinary share at a fixed exchange rate of Rs. 43.65 = USD1. Pursuant to this, the Company had issued 80,86,912 Ordinary share of Face Value Rs. 10 in the year 2009-10.

5 Derivative Instruments :

(a) As on 31st March, the Company has the following derivative instruments outstanding:

(i) Forward currency exchange contracts USD-INR amounting to USD 24.67 million ( previous year USD Nil) for the purpose of hedging its exposures to foreign currency loans

(ii) Forward currency exchange contracts USD- INR amounting to USD 112.49 million (previous year USD 87.41 million) for the purpose of hedging its exposures to foreign currency acceptances

(iii) Accounts payable USD Nil, CHF Nil & EUR Nil (previous year USD 2.89 million, CHF 0.19 million & EUR 0.19 million)

(iv) Forward currency exchange contracts USD-INR 58.16 million, EUR-INR 2.6 million & EUR-USD 0.45 million (previous year USD Nil) for the purpose of hedging highly probable forcast transactions.

(v) Currency options contracts USD- INR amounting to USD 78 million (previous year USD 26 million) with an intent to hedge its exposures to foreign currency loans

(vi) Full Currency Swap to hedge against fluctuations in exchange rates USD 76 million (previous year Notional principal USD 76 million)

(vii) Cross Currency Swap to hedge against fluctuations in exchange rates and Interest rates USD 475 million (previous year Notional principal USD 475 million)

(viii) Long Term Forward Contract USD-INR 71 million (previous year USD-INR 35 million) to hedge against fluctuation in exchange rates for the purpose of hedging its exposure to foreign currency long term loans

(b) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

(i) Export receivables USD 1.7 million (previous year USD 4.41 million )

(ii) Acceptances USD NIL million (previous year USD 8.78 million)

(iii) Accounts payable USD 10.51 million (previous year USD 28.59 million)

(iv) Liability arising out of cross currency swap USD 275 million (previous year USD 382 million).

6 (a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 141.87 crores (previous year Rs. 56.15 crores).

(b) Capital commitment towards investment in joint ventures Rs. 72 crores (previous year Rs. 85.44 crores).

7 Contingent Liabilities :

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 193.96 crores (previous year 5 91.85 crores). These are covered by the charge created in favour of the Companys bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided to third parties on behalf of subsidiaries USD 138.30 million (Rs. 616.75 crores) (previous year USD 136.80 million (Rs. 614.23 crores))

(c) The lease deposit of Rs. 25 crores (previous year Rs. 25 crores) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. 2.17 crores (previous year Rs. 2.17 crores ) has been charged to the Profit and Loss Account on the principle of matching of revenue and costs.

(d) General description of significant leasing arrangements :

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. Till previous year the lease arrangement also included power plants.

8 (a) Provision for compensation under Employee Separation Scheme (ESS) has been calculated on the basis of the net present value of the future monthly payments of pension.

(b) An amount of (Rs. 0.56 crore) (previous year Rs. 0.27 crore) is payable under the scheme within one year.

9 Remittances in foreign currencies for Dividends :

The Company has remitted during the year Rs. 29.85 crores (previous year Rs. 21.80 crores) in foreign currencies on account of dividends and does not have information as to the extent to which other remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders.

10 Sales includes subsidy income of Rs. 2,376.73 crores (previous year Rs. 2,059.69 crores)

11 During the year ended 31st March 2009 the Company had exercised the option granted vide notification F.No.17/33/ 2008/CL-V dated March 31, 2009 issued by the Ministry of Corporate Affairs and accordingly, the exchange differences arising on revaluation of long term foreign currency monetary items for the year ended 31st March, 2008, 2009 and 2010 have been recognised over the shorter of the maturity period of the loan or 31st March, 2011. The unamortised balance as at the Balance Sheet date of Rs. Nil (net of tax) (previous year Rs. 7.89 crores) is presented as "Foreign Currency Monetary item Translation Difference Account" (FCMTDA).

12 Insurance claim

(a) Insurance claim includes Rs. 36.09 crores towards estimated loss of profit for the year ended 31st March, 2011 pertaining to Companys Fertilizer Plant at Babrala (on account of temporary disruption due to fault in Synthesis Converter in the ammonia plant upto 31st August, 2010).

(b) The devastating rain fall coupled with cyclonic wind in the months of July & August 2010 in and around Mithapur plant, the stocks of salt, Soda Ash and also the salt works were damaged due to flooding of water. The Company has adequate coverage towards cost of damaged property and stock. The work for the restoration of property is in progress and Insurance claims for both the damages have been lodged. The claim for loss of stocks Rs. 2.04 crores has been recognized in the books, based on the estimates.

13 Based on approval of the members of the Company, in August 2010, the Company has issued 1,15,00,000 equity shares on a preferential basis to Tata Sons Limited (the promoter entity).

14 Asterisk (*) denotes figures below Rs. 50,000.

15 Previous years figures have been regrouped / reclassified wherever necessary to make them comparable with the current years figures.


Mar 31, 2010

1 Segment Reporting :

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.

2 Related Party Disclosure :

(a) Related Parties and their relationship

Subsidiaries Joint Ventures Key Management Personnel

Direct Direct

Homefield International Pvt. Limited, Indo Maroc Phosphore S. A., Mr. R. Mukundan, Managing Director Mauritius Morocco

Wyoning 1 (Mauritius) Pvt. Ltd., Khet-Se Agri Produce India Mr. P. K. Ghose, Executive Director & CFO Mauritius Pvt. Ltd., India

Bio Energy Venture - 1 ( Mauritius) Mr. Kapil Mehan, Executive Director

Pvt. Ltd., Mauritius

Rallis India Limited, India ( w.e.f, Nov’ 2009)

Indirect Indirect

Homefield Pvt. UK Limited, UK Kemex B.V., Netherlands

Brunner Mond Group Limited, UK Alcad, USA

Brunner Mond (UK) Limited, UK JOil (S) Pte. Ltd, Singapore

Brunner Mond Limited, UK

The Magadi Soda Company Limited, Kenya

Brunner Mond (South Africa) Pty Limited,

South Africa

Northwich Resource Management

Limited, UK

Brunner Mond Generation Limited, UK

Transcontinental Holdings Limited, UK

Magadi Railway Company Limited, Kenya

Brunner Mond B.V., Netherlands

Wyoming 2 (Mauritius) Pvt. Ltd., Mauritius

Gusiute Holdings (UK) Ltd., UK

Valley Holdings Inc., USA

General Chemical Industrial Products

Inc., USA

General Chemical International Inc., USA

NHO Canada Holdings Inc., USA

General Chemical (Soda Ash) Inc., USA

Bayberry Management Corporation, USA

General Chemicals (Soda Ash)

Partners LLC, USA

General Chemical (Great Britain) Ltd., UK

General Chemical Canada Holding Inc.,

Canada

Tata Chemicals Asia Pacific Pte. Limited,

Singapore

Bio Energy Venture - 2 ( Mauritius) Pvt. Ltd,

Mauritius

Grown Energy Zambeze Holdings Pvt. Ltd,

Mauritius

GCSAP Holdings LLC, USA

GCSAP LLC, USA

GCSAP Canada Inc, Canada

Rallis Australasia Pty Limited, Australia

Rallis Chemistry Exports Limited, India

3 Employee Benefit Obligations :

(a) The Company makes contribution towards provident fund, a defined benefit retirement plan and towards superannuation fund, a defined contribution retirement plan for qualifying employees. The provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit.

On account of Defined Contribution Plans, a sum of Rs. 5.19 crores (previous year Rs. 5.63 crores) has been charged to the Profit and Loss Account. On account of Provident Fund contribution, a sum of Rs. 4.95 crores (previous year Rs. 4.50 crores) has been charged to Profit and Loss Account.

(b) The Company makes annual contributions to the Tata Chemicals Employees’ Gratuity Trust and to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, both are funded defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme. Vesting occurs upon completion of five years of service.

The Company is also providing post retirement medical benefits to qualifying employees. Similarly, the Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2010. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

4 (a) During the year 2004-05, the Company had issued Foreign Currency Convertible Bonds (FCCBs) of a face value of USD 1,000 each aggregating to USD 150 million. As per the terms of the issue, the holders had an option to convert the FCCB into Ordinary Shares at a conversion rate of Rs. 231.375 per Ordinary Share at a fixed exchange rate conversion of Rs. 43.65 = USD 1, from 13 March, 2005 to 22 January, 2010. The conversion price was subject to certain adjustments for Corporate actions and consequently the conversion price was changed to Rs.230.78 per ordinary share. Further, under certain conditions the Company had an option of early redemption in whole but not in part. (b) During the year 2009-10, the Company got notices for conversion of USD 42.756 million (previous year USD 6.215 million) FCCBs into ordinary shares at a conversion price of Rs.230.78 per ordinary share at a fixed exchange rate of Rs.43.65 = USD1. Pursuant to this, the Company has issued 80,86,912 (previous year 11,75,510) Ordinary share of Face Value Rs.10.

(c) Exchange loss of Rs Nil (previous year exchange loss of Rs 9.72 crores) on account of year end translation of liability denominated in foreign currency, relating to premium on redemption of FCCBs has been debited to the Securities Premium Account.

5 Derivative Instruments :

(a) As on 31st March, the Company has the following derivative instruments outstanding:

(i) Forward currency exchange contracts USD-INR amounting to USD Nil for the purpose of hedging its exposures to foreign currency loans ( previous year USD 134.96 million)

(ii) Forward currency exchange contracts USD- INR amounting to USD 87.41 million for the purpose of hedging its exposures to foreign currency acceptances (previous year USD 40.90 million)

(iii) Accounts payable USD 2.89 million, CHF 0.19 million & EUR 0.19 million (previous year USD 80.13 million)

(iv) Currency options contracts USD- INR amounting to USD 26 million with an intent to hedge its exposures to foreign currency loans (previous year USD 65 million). FCCBs outstanding as on 31 March, 10 is USD Nil million (previous year USD 43.906 million)

(v) Full Currency Swap to hedge against fluctuations in exchange rates USD 76 million (previous year Notional principal USD 75 million)

(vi) Cross Currency Swap to hedge against fluctuations in exchange rates and Interest rates USD 475 million (previous year Notional principal USD 475 million)

(vii) Long Term Forward Contract USD-INR 35 million (previous year nil) to hedge against fluctuation in exchange rates for the purpose of hedging its exposure to foreign currency long term loans (Previous year USD Nil million)

(b) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

(i) Export receivables USD 4.41 million (previous year USD 1.05 million )

(ii) Foreign Currency Loans USD Nil (previous year USD 12.83 million)

(iii) Loans and Advances USD Nil (previous year USD 73.43 million)

(iv) Acceptances USD 8.78 million (previous year USD 7.19 million)

(v) Accounts payable USD 116 million (previous year USD 234.67 million)

(vi) Liability arising out of cross currency swap USD 382 million (previous year USD 425 million).

11 (a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 56.15 crores (previous year Rs.36.68 crores).

(b) Capital commitment towards investment in joint venture Khet-Se Agri Produce India Private Limited Rs. 43.69 crores (previous year Rs.43.69 crores).

(c) Capital commitment towards investment in proposed project at Mozambique Rs. 41.75 crores (previous year Rs. 16.36 crores).

6 Contingent Liabilities :

(a) Guarantees:

(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 91.85 crores (previous year Rs. 212.51 crores). These are covered by the charge created in favour of the Company’s bankers by way of hypothecation of stocks and debtors.

(ii) Guarantees provided to third parties on behalf of subsidiaries USD 136.80 million (Rs. 614.23 crores) (previous year USD 150 million (Rs. 760.80 crores))

7 Operating Leases :

(c) The lease deposit of Rs. 25 crores (previous year Rs.25 crores) for plant and machinery remaining with the lessors is provided over the useful life of the asset and consequently a net amount of Rs. 2.17 crores (previous year Rs.2.17 Crores ) has been charged to the Profit and Loss Account on the principle of matching of revenue and costs.

(d) General description of significant leasing arrangements :

The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements are expensed proportionally during the lease or rental period respectively. The Company has entered into operating lease arrangement for storage tank from a vendor. Till previous year the lease arrangement also included power plants.

8 (a) Provision for compensation under Employee Separation Scheme (ESS) has been calculated on the basis of the net present value of the future monthly payments of pension.

(b) An amount of Rs. 0.27 crore (previous year Rs.0.87 crore) is payable under the scheme within one year.

9 Sales includes subsidy income of Rs. 2059.69 crores (previous year Rs. 4,683.58 crores)

10 During the previous year the Company had exercised the option granted vide notification F.No.17/33/2008/CL-V dated March 31, 2009 issued by the Ministry of Corporate Affairs and accordingly the exchange differences arising on revaluation of long term foreign currency monetary items for the year ended 31st March, 2008, 2009 and 2010 have been recognised over the shorter of the maturity period of the loan or 31st March, 2011. The unamortised balance as at the Balance Sheet date of Rs. 7.89 crores (net of tax) (previous year Rs. 237.39 crores) is presented as “Foreign Currency Monetary item Translation Difference Account” (FCMTDA).

11 Rallis India Limited (Rallis) had become an associate of the Company in August 2009. Consequent to the preferential allotment of 9,80,000 equity shares by Rallis to the Company in November 2009, the effective holding of the Company in Rallis has become 50.06%. Accordingly, Rallis has become a subsidiary of the Company from associate from that date.

12 Insurance claim for loss of profits

The production at Company’s Fertilizer Plant at Babrala has been temporarily disrupted due to fault in Synthesis Converter in ammonia plant. The Company has adequate insurance coverage towards cost of repairs and loss of profits. Insurance claim for loss of profit has been accrued for the affected period based on the Management’s estimates.

13 Strike at Haldia Plant

The operations at Haldia plant were disrupted due to strike by contract labour during the period 24th February to 26th March, 2010. While the workforce has resumed duty, the disputed matter is pending with the additional labour commissioner.

14 Asterisk (*) denotes figures below Rs.50,000.

15 Previous year’s figures have been regrouped / reclassified wherever necessary to make them comparable with the current year’s figures.

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