Notes to Accounts of The Phosphate Company Ltd.

Mar 31, 2024

i) (^visions

Provisions are recognised when the Company has a prtstnt obligationflegal or constructive) asa result of a past event, it is prolMble th.it an outflow ol resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contnigcnt liabilities arc di.sclooed when there is a possible obligation ari.siug from past events, the existence of which wiJJ be ronfinned only by the eecurrence or nonxcurnence of one or more uncertain future events not wholly within ihe control of the Company or ,1 present obligation that arises from past events where it is either not probable that an outflow of resou^es will be required to settle the obligation or a reliable estimate of the amount cannot be made.

j) foreign Cuncncy Transactions & Translations

The functional cumncy of the Company is Indian Rupee. These Financial Statements are presented in Indian Rupee.

Transactions in foreign currencies entered into by the Company are accounted at the exdrange rates prcvading on the date of the transaction . Gains & losses arising on a.coount of realisation are amounted for in theStalement of Profit & Loss.

Monetary Assets & Liabilities in foreign cumeney that an: outstanding at the year end are translated at the year end exchange rates and the resultant gain/lnss is accounted for in the Statement of Profit & Less.

k) Cash and Cash Eqiuvalents

Cash and Cash Equivalent in the balance sheet comprise- C''Jsh at banks and on h nd and short-term deposits with an onginal maturity of three months or less. which are subject to an insignificant risk of changes in value.

l) Employee Benefits Defined Contribution Plan

The Company makes contributions towards provident fund to the regulatory authorities toa defined contribution retirement benefit plan for qualifying employees, where the Company hits no further obligations. Both the employees and the- Company make monthly contributions to theProvident Fund Plan equal to a specified percentage of the rovered employee''s salary.

Defined Benefit Plan

The Company operates a defined benefit gratuity plan in India, comprising o( Gratuity fund with an approved tms.1. Ihc Company''s liability is actuarially determined using the Projected Unit Credit method at the end of the year tn acrordarroe with tie provision of Ind AS 19 - Employee Benefits.

The Company nxognizcs the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-mea.suremonls of the net defined benefit liabilily/(asset) arc recognized in other oomprchtf\Sivc income and ate 001 reclassified to profit or loss in subsequent periods.

The Company recognises the changes in the net defined benefit obligatic,n ljke service costs comprising current service costs, pastsservice costs. gains and losses on curtailments and non-routine settlements and net interest expense or income, as an expense in the Statement of Profit and Loss

Shori term employee benefits are charged off at the undiseounted amounl in the year in which the related services are rendered.

Other Jong term employee benefits-

The Company treats accumulated leaves expected to be carried forward beyond hvelve months, as long term employee benefit for mensurernent purposes. Such longterm compensated absences are provided for on the actuarial valuation using the projected unit credit method at the end of each financial year This bcne-lit is not funded. Actuarial gains/losses are iimneiately ttktn to die Statement of Profit and Loss and are not deferred.

m) Borrowing Cost

Borrowing oo.c;ts directly attributable to the acquisition, construction nr production of an a^sse that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset, All other borrowing costs aie expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an irntity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

n) Leas.es

Ind AS 116 supersedes Ind AS 17 Lca.,;es including its appendices. standard sets out the principles for the recognition, measurement,

presenlation and disclosure of lea^ and requires l^se"CS to recognise most leases on the balance sheet TheCompany assesses at contract inception whether a contract is . or contains, a lease. That is, if the contract conveys the right to control the use of an identified a™t for a period of time in exchange for consideration.

Company as a lessee

The company applies 3 single recognition and measurement approach for till l("tlS(''S, except for shortsbom leases and leases of low-value assets ''Hie company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets

Right-of-use assets

The company recognises right-of-use assets al the commencement date of the lease (i.e. ¦ the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any occumulated depreciation and impairment losses, and adjusted for any rerncasure^nt of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencemm date less any lease incentives received. Right-of-use a^s are depreciated on a straightline basis over the shorter of Hie lease term and the estimated useful lives ol the a^sse-ts,

If ownership of the asset transfers to the company at the. end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using theestimated useftd life of the asset. The right^-of-use assets m also subject to impairment

Lease liabilities.

At the commencement date of the lease, the company recognises le-ase Jiabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including ill subetance fixid payments) less any'' lease incentives receivable, variable leyments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasenahly certain to be exercised by thecompany and payments of penalties for terminating the lease, if the le^ term reflects the company exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the company uses its incremental borrowing: rate at the lease commencement date because the interest rate implicit in the lease is not readily determiiuble. After the commencement date, the amoimt of lease liabilities is incr(''ased to reflect the accretion of interest and reduced for the lease payments made. In addition, the canying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a clunge in an itdex or rale used to determine such lease payments) or a change in the a^^ment ol an option to purchase the underlying assct.

The company''s lease liabilities are included in Interest-bearing loans and borrowings Short-tenn leases.and leases of low-value assets

The company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease t^m of 12 monlhs or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value ai^ssets recognition exemption to leases of office equipment that are considered to be low value. lj;ase payments on shortterm leases and leases of low value a^ts are recognised as expense on a straight-line basis over the lease term.

Company as i lessor

Leases in which the Company does not transfer substantially all the lisks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is amounted for on a straight-line basis over the lease tenns and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recogntsed over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

o) Income Taxes

Income tax <¦ xpense t.s recognized in the Statement of Profit & Loss except to the extent tl.nl it relates to items recognized directly in equity, in which case it j s recognized i n other comprehensive income. Provision for current tax is made at the current tax rates ba..sed on assl"SSable income.

Deferred income tax assets and liabWties are recognized for all temporary differences arising behveen the tax bases of assets and liobWties and their carrying amounts in the Fnancial Statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liablities are measured using tax rates and tax laws that have lxen enacted or substantively enacted by tie Bala net Sheet date and arc expected to apply to taxable income in the years in which those temporary differences are expected tobe recovered orsettled. The effect of changes in tax rate-; on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactnwnt date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undislributed eiarniings of subsidiaries and branches where it is txp«ted thal the earnings of the subsidiaiy or branch will not be distributed in Ihe foreseeable future. The company offsets current tax assets and current lax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously

p) Earnings per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number o( equity shares outstanding during the period. The weighted average number o( equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights Issue, share split, and reverse share split (consolidation of shares) that hve changed the number of equity shares outstanding, without a eorres-pondingchange in rts.ources.

For the purpose of cakulaling diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

q) Segment Report

Operating seg:ments are reported in a manner consistent with Ihe internal reporting prnvided to chief operating.decisiosi maker.

In terms of the- requirement ol Ind AS IIB, the Company had identified primary business segment, viz., •Agro-input". However, pursuant to guidelines issued by Ministry of Qiemicals & Fertlisers, P&:K Fertilizers (Phosphatic & Potassic) has been considered as Separate Segment and reported. The operating segnwnts have been reported in a manner consistent with the internal reporting provided by the company.

r) Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Amounting Standards} Rules as issued from time to lime. For the year ended March 31, 2024. MCA has not notified any new standards or amendments to the existing standards applicable to the Company

{ii) Fair value hierarchy

Afl '' Financial Arota &: Financial Liabilit nrc carried .it an)0i1i.li!Cd costcfcrcpt Cuirent ln\''wtnicnl:$ and Foreign Cum,ncy Future Cantro\Cts which have fair valued.

l—vtl 1 — Q\IOCcd (adjusted) marVct p^^s inactivemaiieti for identical a$&ct& orli.;)biliti(>s.

Level 2 — Valiution tcs:hniques for which the lnwes.t level input that is ,ipiifirant tu tic fairv.-.lu,c, ^asureincrt » directly « indirectly nb!ol:ivable.

level 3 — Valuation techniques. for which the lowes.t kvH input that L.; sipiifiranl to tic fair value rneasurc^nt » uno^^ecablc.

Financial risk factois

The Company''s activities expose it to a va.riety of financi.al risks; (a) market risk/b) liquidif risk & (c)credit risk whkh may adversely imp.1ct the fair Value of ils financial instruments. The Company''s focus is to foresee the unpredictability of fnancial martets and seek to minimize potential .idveree effects on its financial ptrformance.

(A) Market ri.sk

Market risk comprises interest rate risk & foreign currency risk. Financial instruments affected by market risk include loans and borrowings in foreign currencies.

(11) Interest rate risk

The Company is exposed to interest rate risk beeause the Company borrow funds both at fixed and floating interest rates. nw risk is managed by the Company by maintaining an appropriate mix hetweffi fixed md floating rate borrowings. The Company''s expesure to the risk of change..: in market interest rales relates primaily 10 the Company''s longtenn debt oMigtihons with floating inlel.''l''SI rat^

(b) Foreign currency lisks

Foreign currency risk is tlie risk that the fair value ol future cash f o“''$ of.m exposure will fluctuate tw.iuse of chengcs in forel''gn e:xdung<> rites. The Company''s exchange rate risk exposure is primanly due to trade payables dcnom.inatcd in foreign currcn...cy. The Company is TOrcstrkting iL<: exposure o! risk in change in exchange rates by way ol Forward/Future ControcL.

(q Credit risk

Credit risk is the risk of financial loss arising from ^nter-patty failure to repay or service debt according to the contractual terms or obligations. Credit risk enasmptssesboth the direct risk of default and the risk of de!erioration of creditworthiness.

Financial iredrvrnents that are Jubjeel to m^it risk principally consist of Trade Receivables, Wirrc. Receivables, lnvestmcnls, Oa$h "nd Cash £quivalmts and Financial Guarantees provided by the Company. None of the financial instruments of the Company result in material concentration of credil risk.

Company has a of dealing only with credit worthy counter parties a, a ineans of mitigating the nsk of financial lo.s.s from defaults. The

Company manages risks through aedit approvals, (^Wishing credit limits and onlinuously monitoring the aedihvorthiness of customer:; to which the company g.rants credit terms in the normal course of business..

Segment Reporting pursuant to Department of Fertilisers Notification dated 18th January 2024.

In terms of the requirement of Ind AS 108, the Company had identified primary business segment, viz, "Agro-input". However, pursuant to guidelines issued by Ministry of Chemicals & Fertlisers, P&K Fertilizers (Phosphatic & Potassic) has been considered as Separate Segment and reported. The operating segments have been reported in a manner consistent with the internal reporting provided by the company.

Note 4) Other Statutory Information

{i) The Company do not have any Benami Property. Further, there is no proceedings initiated or pending against the Company for holding any Beiami property.

(ii) The Company do not have any charges or t-atisfoclion which i:; yet to tM: ngisteecd with R^C beyond lhe statutory period,

(iU) The Company has not ti,ided or invested in Crypto currency iir Virtual Currency during the financial pear.

(iv) lie Company has iuit advanced or loaned or '' invested funds to any other person(s) or entity(ies):

(a) Directly or indi^irectly lend or invest in other persons or entities identified in any manner whats«x:vcr by or on behalf of the Company(Ultimatt> Beneficiaries) or

(b) Provide any guarantee, Sitlrurity or the like to or 01, behalf of the Ultimate Beneficiaries

(v) The Company has not reeeived my fond from <1ny person(s) or cntity(ies), including foreign entities (funding Party) with the understating (whether recorded in writing-or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding ParlpeUltinute lkitefidaries) or

(b) Provide .any gu.urnntee, security or the like to or on behalf oi the Ultimate Beneficiaries.

(vi) The Company doe. not have any tran$3ction which is not m:orded in the books of aeconts that has bebeer''! surrendered or diS<:l0Seil ai income:: during the year in the t:ix I\Ssettsment$ under the ll''t.<;omeT:»: Act.1961,

(vii) The Company d^ not live any transactions with oompanies shuck off under section 248 of the Companies Act., 20I.J or section 560 of the Companies Act, 1956.

(viii) lie Company has oompile-d with ihe number of layers p^re::.cribed under clau«(87) of ^tion 2 of the Act read with the Companies(Restrirlion on Number of l.3yers) Rules,0Ol7.

(>x) Ihcrc are no events or transactions after the reporting period which is required to be disclosed under Ind AS LO.

(x) The Company is not a Core Investment Company as defined in the regulations nude by R^rve 0.ank of India. The Company has no Core Investment Company els part of the Group.

Note 44 A Part of land and Building thereon has been sold to the oompany"s earstwhile wholly owned subsidiary (M/S Abhin.andan Goods Pvt Lid)* Execution of ronveyance Deed is pending for necessorycompliaice.

• Abhinandan Goods Pvt. Ltd. was subsidiary upto ^^>2024

Note 45 &lanee1'' of sun^ parties (including of Trade n.''

Note 46 Corresponding comparative figures for the previous year fuve been regroupol arid readjusted wherever C()nsid*red necessity to Conform to th<: current year pre$ntdtion.

As per our Report of even date attached

ForSK AGRAWAL AND CO For and on behalf of the Board of Director

CHARTEREDACCOUNTANTS UUP

Chartered Accountants

Firm Rcgistralion \o.-306033E/F300272

Ajay Bangur Sonali Sen

Executive Director Independent Director

Henurnt Kumar Lakhotla ^D''^N °⁰⁰⁴''⁷" ^DIN = °⁰⁴⁵''⁸³⁹

(Partner)

Membership No. 068851

Nanda Kishore Kabra Sha^nkar BamTj^ee

P''rAOr a Chief Financial Officer C°mp^any ^ivtei-y

^{Dated 29th May 2024} Membership No. A45073

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Mar 31, 2010

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 32,90,000/- (Previous year Rs. 22,00,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 1,99,660/- (Previous year Rs. 1,99,660-)

(II) Income Tax matter under appeal Rs. 51,22,889/- (Previous year Rs. 92,45,341/-)

3. a) Satisfaction of Car Loan is pending with Company Law Board, Kolkata

4. Other Income includes Miscellaneous Income Rs. 1,62,193/- (Previous year Rs. 971/-) Liabilities no longer required written back Rs. 11,28,406/- (Previous year Rs. 22,677/-), Profit on sale of Investment Rs. 17,132/- (Previous year Rs. 38,208/-), Insurance Claim Rs. 23,044/- (Previous year 11,285/-)

5. Repairs to Building include Stores Rs. 12,487/- (Previous year Rs. 7,828/-)

6. Staff welfare include Superannuation Benefit Policies Rs. 3,07,400/- (Previous year Rs. 2,81,700/-)

7. Expenditure in Foreign Currency — Purchase of Raw Materials (C & F Value) Rs. 2,07,76,500/- (Previous year Rs. NIL), Interest on FCNRB Loan Rs. 25,988/- (Previous Year 6,80,249/-).

8. Extra ordinary items consists of compensation paid under voluntary retirement scheme :

i. Contract workers Rs. 22,95,000/- (Previous year Rs. 20,40,000/-)

ii. Employees l/5th of total expenditure on this account Rs. 52,01,633/- (previous year Rs. 25,48,633/-) balance has been shown under Miscellaneous expenditure as Deferred Revenue Expenditure to be amortised over the future years equally.

9. In absence of informations relating to micro small and medium enterprises, information relating to current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

10. Provision for excise duty only on closing stock of sulphuric acid meant for only sales has been provided.

11. Sales includes materials processed from outside.

12. Information of Licensed Capacity and quantitative information for class of goods manufactured, consumed, sold, closing & consumption of Raw Materials.

13. Previous years figures have been rearranged and regrouped wherever necessary.

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Mar 31, 2009

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 22,00,000/- (Previous year Rs. 28,15,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 1,99,660/- (Previous year Rs. 3,19,660/-)

(II) Income Tax matter under appeal Rs. 92,45,341/- (Previous year Rs. 41,22,452)

3. a) Satisfaction of Car Loan - petition is pending with Company Law Board, Kolkata

b) Outstanding FCNRB Term Loan of $101086 has been taken at booked rate and Difference on Exchange rate charged to P & L A/c.

4. Other Income includes Miscellaneous Income Rs. 971/- (Previous year Rs. 6,13,323/-) Liabilities no longer required written back Rs. 22,677/- (Previous year Rs. 1,84,019/-), Profit on sale of Investment Rs. 38,208/- (Previous year Rs. 53,148/-), Profit on Sale of Fixed Assets (Motor Car) Rs. 1,110/- (Previous year Rs. 31,507/-), Insurance Claim Rs. 11,285/- (Previous year NIL)

5. Repairs to Building include Stores Rs. 7,828/- (Previous year Rs. 1,93,618/-)

6. Repairs to Machinery include Stores Rs. NIL(Previous year Rs. 69,459/- /-)

7. Staff welfare include Superannuation Benefit Policies Rs. 2,81,700/- (Previous year Rs. 3,07,400/-)

8. Expenditure in Foreign Currency — Purchase of Raw Materials (C & F Value) Rs. NIL (Previous year Rs. 17,21,17,474/-), Interest on FCNRB Loan Rs. 6,80,249/- (Previous Year 10,54,367/-).

9. Extra ordinary items consists of:

i. Compensation paid to contract workers under Voluntary Retirement Scheme Rs. 20,40,000/-

ii. Compensation paid to employees under Voluntary Retirement Scheme represents 1/5 of total .expenditure on this account Rs. 25,48,633/- (Previous year NIL), balance has been shown under Miscellaneous expenditure as Deferred Revenue Expenditure to be amortised over the future years equally.

10. In absence of informations relating to micro small and medium enterprises, information relating to current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

11. Sales includes materials processed from outside and purchases.

12. Provision for excise duty only on closing stock of sulphuric acid meant for only sales has been provided.

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Mar 31, 2008

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 28,15,000/- (Previous year Rs. 34,20,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 3,19,660/- (Previous year Rs. 3,19,660/-)

(II) Income Tax matter under appeal Rs. 41,22,452/- (Previous year Rs. NIL)

(II) Sales Tax / Turnover Tax matters under appeal with West Bengal Appelate Regional Board Rs. 12,820/- (Previous Year Rs. 12,820/-)

4. a) Satisfaction of Car Loan is pending due to non receipt of certificate from the concerned bank.

b) Outstanding FCNRB Term Loan of $291304 has been taken at booked rate and Difference on Exchange rate charged to P & L A/c.

5. Other Income includes Miscellaneous Income Rs. 6,13,323/- (Previous year Rs. 9,77,387/-) Liabilities no longer required written back Rs. 7,52,444/- (Previous year Rs. 9,608/-), Profit on sale of Investment Rs. 53,148/- (Previous year Rs. 1,06,391/-), Profit on Sale of Fixed Assets (Motor Car) Rs. 31,507/- (Previous year Rs. 3,496/-).

6. Repairs to Building include Stores Rs. 1,93,618/- (Previous year Rs. 6,19,550/-).

7. Repairs to Machinery include Stores Rs. 69,459/- (Previous year Rs. 1,10,280/-).

8. Staff welfare include Superannuation Benefit Policies Rs. 3,07,400/- (Previous year Rs. 2,81,800/-).

9. Expenditure in Foreign Currency Purchase of Raw Materials (C& F Value) Rs. 17,21,17,474/- (Previous year Rs. 22,58,91,113/-), Interest on FCNRB Loan Rs. 10,54,367/- (Previous Year 12,65,318/-).

10. Information pursuant to part IV of Shedule VI of the Companies Act, 1956 Balance sheet abstract and companys general business profile

11. Previous years figures have been rearranged and regrouped wherever necessary.

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Mar 31, 2007

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 34,20,000/- (Previous year Rs. 32,00,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 3,19,660/- (Previous year Rs. 2,63,660/-)

(II) Sales Tax / Turnover Tax matters under appeal with West Bengal Appelate Regional Board Rs. 12,820/- (Previous Year Rs. 12,820/-)

3. Investments - Short Term

Purchased and sold during the year

Name of the Fund No. of units Value Rs.

Templeton India Treasury Management of Rs. 1000/- each 11316.481 20500000

Chola Mutual-Liquid Institutional Plus of Rs. 10/- each 1896390.731 26000000

Standard Chartered Mutual Fund of Rs. 1,000/- each 9927.720 10000000

DTI Mutual Fund of Rs. 1,000/- each 11227.139 13700000

4. a) Satisfaction of Car Loan is pending due to non receipt of certificate from the concerned bank.

b) Outstanding FCNRB Term Loan of $318478 has been taken at booked rate and Difference on Exchange rate charged to P & L A/c.

5. a) Processing includes :-

Sulphuric Acid Rs. Nil, (T.D.S. Rs. Nil) (Previous year Rs. 2,25,999/- (T.D.S. Rs. 2,839/-)

b) Other Income includes Miscellaneous Income Rs. 977387/- (Previous year Rs. 4,59,357/-) Liabilities no longer required written back Rs. 9,608/- (Previous year Rs. 727/-), Profit on sale of Investment Rs. 1,06,391/- (Previous year Rs. 72,468), Profit on Sale of Fixed Assets (Motor Car) Rs. 3,496/- (Previous year Rs. Nil), Sundry Balances Written back Rs. 7/- (Previous year 49,647/-) Income on DEPB Licence purchases Rs. 23,513/- (Previous Year Rs. 1,83,730/-), Insurance Claim Rs. Nil (Previous Year Rs. 78,917/-)

6. Repairs to Building include Stores Rs. 6,19,550/- (Previous year Rs. 3,86,356/-)

7. Repairs to Machinery include Stores Rs. 1,10,280/- (Previous year Rs. 1,33,874/-)

8. Staff welfare include Superannuation Benefit Policies Rs. 2,81,800/- (Previous year Rs. 2,57,200/-)

9. Expenditure in Foreign Currency on account of Purchase of Raw Materials (C& F Value) Rs. 22,58,91,113/- (Previous year Rs. 26,26,62,722/-) & Interest on FCNRB Loan Rs. 12,65,318/- (Previous Year NIL).

10. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

11. a) Current Tax:

In view of carry forward losses as per income tax, provision for tax has been made on MAT

b) Deferred Tax:

As the Company has unabsorbed depreciation / carry over losses available for set-off under Income Tax Act. 1961 and due to of future taxable income no deferred tax has been recognised in this account based on prudence.

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Mar 31, 2006

1. Commitment of Capital Expenditure not provided for in the Accounts estimated at Rs. 32,00,000/- (Previous year Rs. 22,00,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 2,63,660/- (Previous year Rs. 3,13,160/-)

(II) Sales Tax / Turnover Tax matters under appeal Rs. 12,820/- (Previous Year Rs. 12,820/-)

3. Investments - Short Term

Purchased and sold during the year

Name of the Fund No. of units Value Rs.

Templeton India Treasury Management of Rs. 1000 each 41,906.392 7,12,85,000

Chola Mutual-Liquid Institutional Plus of Rs. 10/- each 1,43.033.892 20,00,000

4. a) Processing includes :-

I) Mix Granulated Fertiliser Nil (Previous year Rs. 22,325/-)

II) Sulphuric Acid Rs. 2,25,999/-, (T.D.S. Rs. 2,839/-) (Previous year Rs. 14,94,009/- (T.D.S. Rs. 17,600/-)

b) Other Income includes Miscellaneous Income Rs. 3,14,847/- (Previous year Rs. 4,38,212/-) Liabilities no longer required written back Rs. 727/- (Previous year Rs. 65,256/-). Profit on sale of Investment Rs. 72,468/- (Previous year Rs. 67,730), Profit on Sale of Fixed Assets NIL (Previous year Rs. 10,142), Sundry balances written back Rs. 49,647/- (Previous year Rs. 6,114/-) Income on DEPB Licence purchases Rs. 1,83,730/- (Previous Year Rs. 6,78,836/-), Insurance Claim Rs. 78,917/- (Previous Year Rs. 1,14,264/-)

5. Repairs to Building include Stores Rs. 3,86,356/- (Previous year Rs. 3,86,457/-)

6. Repairs to Machinery include Stores Rs. 1,33,874/- (Previous year Rs. 95,616/-)

7. Staff welfare include Superannuation Benefit Policies Rs. 2,57,200/- (Previous year Rs. 2,33,800/-)

8. Expenditure in Foreign Currency on account of purchase of Raw Materials (C & F Value) Rs. 26,26,62,722/- (Previous year Rs. 17,46,92,295/-)

31st March, 2006 31st March, 2005 Rs. Rs. 9. Remuneration to a Director

Salaries 3,36,150 3,11,400

Contribution to Provident Fund & Superannuation Policy 89,303 82,620

Other Perquisites 1,06,1c13 96,900

11. Disclosure of transactions with related parties

a. Shri M. D. Damani Director & Secretary

b. Remuneration Rs. 5,31,566/- Rs. 4,90,920/-

12. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act. 1956 are not readily ascertainable.

13. a) Current Tax :

In view of carry forward losses as per income tax, provision for tax has been made on MAT

b) Deferred Tax :

As the Company has unabsorbed depreciation / carry over losses available for set-off under Income Tax Act. 1961 and due to uncertainity of future taxable income, no deferred tax has been recognised in this account based on prudence.

14. Earning per Share :

31st March, 2006 31st March, 2005 Rs. Rs.

i) Profit/(Loss) after tax 94,85,871 20.80,271

ii) Number of Equity Shares 17,32,480 17,32.480

iii) Nominal value of ordinary shares 10.00 10.00

iv) Basic/Diluted Earnings per shares 5.48 1.20

15. Segment information :

SEGMENT REVENUE (Rs. in Lacs) (Rs. in Lacs)

a. Manufacturing Division 5,606.44 3.601.47

b. Trading Division 616.41 1,704.45

Net Sales/Income from Operations 6,222.85 5,305.92

SEGMENT RESULTS (PBIT)

a. Manufacturing Division 157.88 (70.79)

b. Trading Division 48.47 179.40

Total 206.35 108.61

Less: i. Interest 116.25 108.58

ii. Other unallocable expenditure net of unallocable income (14.73) (20.77) -

Total Profit (Loss) before tax 104.82 20.80

17. Previous years figures have been rearranged and regrouped wherever necessary.

---

Mar 31, 2005

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 22,00,000/- (Previous year Rs. 30,00,000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 3,13,160/- (Previous year Rs. 2,13,160/-)

(II) Sales Tax/Turnover Tax matters under appeal Rs. 12,820/- (Previous Year Rs. 12,820/-)

3. a) Processing Charges includes processing of :-

I) Granulated Fertiliser Rs. 22,325/- (Previous year Rs. 14,70,500/-)

II) Sulphuric Acid Rs. 14,94,009/-, (T.D.S. Rs. 17,600/-) (Previous year Rs. NIL)

b) Other Income includes Miscellaneous Income Rs. 4,38,212/- (Previous year Rs. 1,76,867/-) Liabilities no longer required written back Rs. 65,256/- (Previous year Rs. 63,138), Profit on sale of Investment Rs. 67,730/- (Previous year Rs. NIL), Profit on Sale of Fixed Assets Rs. 10,142/- (Previous year Rs. NIL), Sundry Balance Written back Rs. 6,114/- (Previous year NIL) Income on DEPB Liccence purchases Rs. 6,78,836/- (Previous Year NIL), Insurance Claim Rs. 1,14,264/- (Previous Year Rs. 19,100/-)

4. Repairs to Building include Stores Rs. 3,86,457/- (Previous year Rs. 1,39,769/-)

5. Repairs to Machinery include Stores Rs. 95,616/- (Previous year Rs. 93,491/-)

6. Staff welfare include Superannuation Benefit Policies Rs. 2,33,800/- (Previous year Rs. 1,87,600/-)

7. Expenditure in Foreign Currency on account of Purchase of Raw Materials (C I F Value) Rs. 17,46,92,295/- (Previous year Rs. 13,89,82,463/-)

31st March, 2005 31st March, 2004 Rs. Rs.

8. Remuneration to a Director

Salaries 3,11.400 2,98.500

Contribution to Provident Fund & Superannuation Policy 82,620 80,620

Other Perquisites 96,900 95,775

10. Excise Duty consist of:

Sales 70,29,864 75,02,143

Captive Consumption 14,849 18,845

Inventories 1,05,540 (5,12,192)

71,50,253 70,08,796

11. Related Parties Disclosures

a. Shri M. D. Damani-Director & Secretary

b. Transaction with related party :

Director & Secretarys Remuneration Rs. 4,90,920/-

"12. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

13. a) Current Tax :

In view of carry forward losses, there is neither taxable income nor book profit as envisaged in section 115JB of the Income Tax Act, 1961, no provision for tax has been made.

b) Deferred Tax:

As the Company has unabsorbed depreciation/carry over losses available for set-off under Income Tax Act. 1961 and due to uncertainity of future taxable income no deferred tax has been recognised in this account based on prudence.

14. Earning per Share :

31st March, 2005 31st March, 2004 Rs. Rs.

i) Profit after tax 20,80,271 1,07,273

ii) Number of Equity Shares 17,32,480 17,32,480

iii) Nominal value ordinary shares 10.00 10.00

iv) Basic/Diluted Earnings per shares 1.20 0.06

15. Segment information

SEGMENT REVENUE (Rs. in Lacs) (Rs. in Lacs)

a. Manufacturing Division 3,671.77 3,743.35

b. Trading Division 1,704.45 2.32

Net Sales/Income from Operations 5,376.22 3,745.67

SEGMENT RESULTS (PBIT)

a. Manufacturing Division (70.79) 155.78

b. Trading Division 179.40 0.01

Total 108.61 155.79

Less: i. Interest 101.61 157.30

ii. Other unallocable expenditure net of unallocable income (13.80) (2.59)

Total Profit (Loss) before tax 20.80 1.08

---

Mar 31, 2004

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 3000000/- (Previous year Rs. 2500000/-).

2. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs. 213160/- (Previous year Rs. 340339/-)

(II) Excise matters under appeal Rs. NIL (Previous year Rs. 243178/-)

(III) Sales Tax/Turribver Tax matters under appeal Rs.12820/- (Previous year Rs.513458/-)

3. a) Processing Charges includes processing of :-

I) Granulated Fertiliser Rs.1470500/- (Previous year Rs.1323420/-)

II) Sulphuric Acid Rs.NIL (Previous year Rs.2708452/- T.D.S. Rs.42809/-)

b) Other Income includes Miscellaneous Income Rs.176867/- (Previous year Rs.320514/-) Liabilities no longer required written back Rs.63138/- (Previous year Rs.NIL), Profit on sale of Investment Rs. NIL (Previous year Rs. 12627/-). Profit on Sale of Fixed Assets Rs. NIL (Previous year Rs. 12230/-) Insurance Claims Rs. 19100/- (Previous Year Rs. NIL)

4. Repairs to Building include Stores Rs. 139769/- (Previous year Rs. 349791/-)

5. Repairs to Machinery include Stores Rs. 93491/- (Previous year Rs. 92340/-)

6. Consumption of Raw materials are after adjustment of Rs. 870488/-(Previous year Rs. 229020/-) received against claims for purchases in previous year.

7. Staff welfare include Superannuation Benefit Policies Rs. 187600/- (Previous year Rs. 177200/-)

8. Expenditure in Foreign Currency on account of Raw Materials (CIF Value) Rs. 138982463/- (Previous year Rs. 166133533/-)

9. Extra ordinary items consists of :

(i) Compensation paid to employees under Voluntary Retirement Scheme represent, l/5th of total expenditure on this account Rs. 30,37,513/- (Previous year Rs. 30,37,513/-). Balance has been shown under Miscellaneous Expenditure as Deferred Revenue Expenditure to be amortised over the future years equally.

10. Related Parties Disclosures

a) Shri M. D..Damani - Director & Secretary

b) Transaction with related party :

Director & Secretarys Remuneration Rs. 4,74,895/-

11. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

12. a) Current Tax :

In view of carry forward losses as there is neither taxable income nor book profit as envisages in section 115JB of the Income Tax Act, 1961, no provision for tax has been made.

b) Deferred Tax :

As the Company has unabsorbed depreciation / carry over losses available for set-off under Income Tax Act, 1961 and due to uncertainity of future taxable income no deferred tax has been recognised in this account based on prudence.

---

Mar 31, 2003

TERM LOANS NOTES

(i) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets, present and future (Excluding Machinery on ERS) and second charge on current assets of the Company.

(ii) Secured by first charge by way of hypothecation of car purchased under the Scheme.

CASH CREDITS

Secured by hypothecation in favour of the said Bank, as and by way of first charge of all the Company's existing and future Stocks of Raw Materials, Finished goods Stores, present and future Book Debts and Second Charge on Fixed Assets including movable assets.

OTHER NOTES

1. The previous year was of Nine months and hence current years figures are not strictly comparable.

2. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs.2500000/- (Previous year Rs.2900000/-).

3. Contingent Liabilities not provided for in respect of :-

(I) Guarantee Rs.340339/- (Previous year Rs.199660/-)

(II) Excise matters under appeal Rs.243178/- (Previous year Rs.243178/-)

(III) Sales Tax/Turnover Tax matters under appeal Rs.513458/- (Previous year Rs.3575575/-)

4. a) Processing Charges includes Processing Charges in respect of :-

I) Granulated Fertiliser Rs.1323420/- (Previous year Rs.976800/-)

II) Sulphuric Acid Rs.2708452/- (T.D.S. Rs.42809/-) (Previous year Rs.1702455/- T. D. S. Rs.34732/-)

b) Other Income includes Miscellaneous Income Rs.320514/- (Previous year Rs.140986/-) Liabilities no longer required written back Rs.Nil (Previous year Rs.72162/-), Profit on sale of Investment Rs.12627/- ( Previous year Rs.4900/-). Profit on Sale of Fixed Assets Rs. 12230/- (Previous year Rs. Nil).

5. Repairs to Building include Stores Rs.349791/- (Previous year Rs.27152/-)

6. Repairs to Machinery include Stores Rs.92340/- (Previous year Rs.47916/-)

7. Consumption of Raw materials are after adjustment of Rs.229020/- (Previous year 1142329/-) received against claims for purchases in previous year.

8. Staff welfare include Superannuation Benefit Policies Rs.177200/- (Previous year Rs.254600/-)

9. Expenditure in Foreign Currency on account of Raw Materials Rs.166133533/- (Previous year Rs. 92932325/-) Travelling Rs. Nil/- (Previous year Rs.49350/-)

10. Extra ordinary items consists of :

(i) Gratuity paid to Contract Labours on Cessation of Agreements Rs. NIL (Previous year Rs. 34,10,252/- ).

(ii) Compensation paid to employees under Voluntary Retirement Scheme represent, 1/5th of total expenditure on this account Rs. 30,37,513/- (Previous year Rs. 30,37,513/-). Balance has been shown under Miscellaneous Expenditure as Deferred Revenue Expenditure to be amortised over the future years equally.

11. Related Parties Disclosures

a) i. Shri C.D. Bangur-Managing Director upto 31.1.03 ii. Shri M. D. Damani - Director & Secretary

b) Transaction with related party :

i. Managing Director's Remuneration Rs. 4,55,765/-

ii. Director & Secretary's Remuneration Rs. 4,37,920/-

12. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part 1 of the Companies Act, 1956 are not readily ascertainable.

13. Current Tax :

In view of carry forward losses as there is neither taxable income nor book profit as envisages in section 115JB of the Income Tax Act, 1961, no provision for tax has been made.

Deferred Tax:

As the Company has unabsorbed depreciation / carry over losses available for set-off under Income Tax Act. 1961 and due to uncertainty of future taxable income no deferred tax has been recognised in this account based on prudence.

14. Previous year's figures have been rearranged and regrouped wherever necessary.

---

Mar 31, 2002

Secured Loans:

1. TERM LOANS

(i) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets, present and future (Excluding Machinery on ERS) and second charge on current assets of the Company.

(ii) Secured by way of Hypothecation of Machineries purchased under Equipment Refinance Scheme for Pollution control.

(iii) Secured by first charge by way of hypothecation of car purchased under the Scheme.

2. CASH CREDITS

Secured by hypothecation in favour of the said Banks, jointly as and by way of first charge ranking pari-passu among themselves, of all the Companys existing and future Stocks of Raw Materials, Finished Goods, Stores, present and future Book Debts and Second Charge on Fixed Assets including movable assets.

Other Notes:

1. The Current Financial year is of Nine months and hence previous years figures are not strictly comparable.

2. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 29,00,000/- (Previous year Rs. 22,00,000/-)

3. Contingent Liabilities not provided for in respect of:

(i) Guarantee Rs. 1,99,660/- (Previous year Rs. 1,99,660/-)

(ii) Excise matters under appeal Rs. 2,43,178/- (Previous year Rs. 2,43,178/-)

(iii) Sales Tax/Turnover Tax matters under appeal Rs. 35,75,575/- (Previous year Rs. 73,25,987/-)

4. a) Sales & Processing Charges includes Processing Charges in respect of:

(i) Granulated Fertiliser Rs. 9,76,800/- (Previous year Rs. 11,31,200/-)

(ii) Sulphuric Acid Rs. 17,02,455/- (T. D. S. Rs. 34,732/-) (Previous year Rs. 14,66,921/-) (T. D. S. Rs. 32,520/-)

b) Other Income includes Interest on Tax Free Bonds Rs. NIL. (Previous year Rs. 3,661/-) Miscellaneous Income Rs. 1,40,986/- (Previous year Rs. 3,02,848/-), Insurance claims Rs. NIL. (Previous year Rs. 1,09,154/-) Liabilities no longer required written back Rs. 72,162/- (Previous Year Rs. 1,64,206/-), Profit on sale of Investment Rs. 4,900/- (Previous year Rs. 16,880/-).

5. Repairs to Building include Stores Rs. 27,152/- (Previous year Rs. 42,302/-).

6. Repairs to Machinery include Stores Rs. 47,916/- (Previous year Rs. 46,131/-).

7. The Gratuity Liability of the company as per actuarial valuation as on 31st March, 2002 is Rs. 72,42,054/- against credit balance with the Approved Gratuity Fund of the Company Rs. 66,09,800/-. The short fall of Rs. 6,32,254/- remains unprovided.

8. Consumption of Raw materials are after adjustment of Rs. 11,42,329/- (Previous year 3,98,626/-) received against claims of purchases in previous year.

9. Staff Welfare include Superannuation Benefit Policies Rs. 2,54,600/- (Previous year Rs. 2,85,200/-).

10. Expenditure in Foreign Currency on account of Raw Materials Rs. 9,29,32,325/- (Previous year Rs. 8,03,73,728/-), Travelling Rs. 49,350/- (Previous year Rs. 69,900/-).

11. Extra ordinary items consists of

(i) Gratuity paid to Contract Labours on Cessation of Agreements Rs. 34,10,252/- (Previous year Rs. NIL).

(ii) Compensation paid to employees under Voluntary Retirement Scheme represent, 1/5th of total expenditure on this account Rs. 30,37,513/- (Previous year Rs. NIL). Balance has been shown under Miscellaneous Expenditure as Deferred Revenue Expenditure to be amortised over the future years equally.

12. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

13. Deferred Tax:

The Company has unabsorbed depreciation and carry forward losses available for set-off under Income Tax Act, 1961. In view of pending assessments & uncertain future taxable income, no provision for deferred tax has been mae in these accounts based on prudence.

14. Information of Licensed Capacity and quantitative information for class of goods manufactured, consumed, sold, closing & consumption of Raw Materials.

15. Previous years figures have been rearranged and regrouped wherever necessary.

---

Jun 30, 2001

Secured

1. TERM LOANS

(i) Industrial Investment Bank of India Ltd. 1,65,00,000 1,61,00,000 (ii) HDFC Bank Ltd. 16,75,000 42,62,500 (iii) Citicorp Maruti Finance Ltd. (Car Loan) - 50,000

2. CASH CREDITS

State Bank of India 1,22,96,279 2,84,97,848 ICICI Bank Ltd. 1,12,67,060 1,76,62,234 TOTAL 4,17,38,339 6,65,72,582

1. TERM LOANS

(i) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets, present and future (Excluding Machinery on ERS) and second charge on current assets of the Company.

(ii) Secured by way of Hypothecation of Machineries purchased under Equipment Refinance Scheme and for Pollution control.

2. CASH CREDITS

Secured by hypothecation in favour of the said Banks, jointly as and by way of first charge ranking pari-passu among themselves, of all the Company's existing and future Stocks of Raw Materials, Finished Goods, Stores, present and future Book Debts and Second Charge on Fixed Assets including movable assets.

3. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 22,00,000/- (Previous year Rs. 24,00,000/-$

4. Contingent Liabilities not provided for in respect of:

(i) Excise matters under appeal Rs-2,43 178/- (Previous year Rs. 2,43,178/-)

(ii) Sales Tax / Turnover Tax matters under appeal Rs, 73,25,987/- (Previous year Rs. 57,32,854/-)

4 a) Sales & Processing Charges includes Processing Charges in respect of:

(i) Granulated Fertiliser Rs. 11,31,200/ (Previous year Rs.12.68.290/-).

(ii) Sulphuric Acid Rs. 14,66,921/- (T.D.S. Rs. 32,520/-) (Previous year Rs. 45,24,986/-) (T.D.S. Rs. 94,631/-)

b) Other Income includes Interest on Tax Free Bonds Rs. 3,661/- (Previous year Rs. 9,000/-) Miscellaneous Income Rs 3,02,848/" (Previous year Rs. 2,26,365/-), Liabilities no longer required written back Rs. 1,64,206/- (Previous Year Rs. 4,09,640/-), Profit on sale of Investment Rs. 16,880/- (Previous year Rs. NIL)

5. Repairs to Building include Stores Rs. 42,302/- (Previous year Rs. 1,01,786/-).

6. Repairs to Machinery include Stores Rs. 46,131/- (Previous year Rs. 1,59,992/-).

7. Consumption of Raw materials are after adjustment of Rs. 3,98.626/- (Previous year Nil) received against claims of purchases in previous year.

8. Staff Welfare include Superannuation Benefit Policies Rs. 2,85,200/- (Previous year Rs. 2,66,900/-).

9. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

10. Information of Licensed Capacity and quantitative information for class of goods manufactured, consumed, sold, closing & consumption of Raw Materials during the year ended.

---

Jun 30, 2000

Notes on Secured Loans:

1. TERM LOANS

(i) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets, present and future (Excluding Machinery on ERS) and second charge on current assets of the Company.

(ii) Secured by way of Hypothecation of Machineries purchased under Equipment Refinance Scheme and for Pollution control.

(iii) Secured by First Charge by way of hypothecation of Cars purchased under the Scheme.

2. CASH CREDITS

Secured by hypothecation in favour of the said Banks, jointly as and by way of first charge ranking pari-passu among themselves, of all the Company's existing and future Stocks of Raw Materials, Finished Goods, Stores, present and future Book Debts and Second Charge on Fixed Assets including movable assets.

General Notes:

NOTES ON ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2000

1. Commitment of Capital Expenditure not provided in the Accounts estimated at Rs. 24,00,000/- (Previous year Rs. 10,00,000/-)

2. Contingent Liabilities not provided for in respect of :

(i) Excise matters under appeal Rs. 2,43,178/- (Previous year Rs.2,43,178/-)

(ii) Sales Tax / Turnover Tax matters under appeal Rs. 57,32,854/- (Previous year Rs.57,89,814/-)

3. a) Sales & Processing Charges includes Processing Charges in respect of :

(i) Granulated Fertiliser Rs. 12,68,290/- (Previous year Rs. 19,11,450/-)

(ii) Sulphuric Acid Rs.45,24,986/- (T.D.S. Rs. 94,631/-) (Previous year Rs. 76,45,460/-) (T.D.S. Rs. 89,584/-)

b) Other Income includes Dividend Rs. NIL. (Previous year Rs. 15,839/-) Interest on Tax Free Bonds Rs. 9,000/- (Previous year Rs. 9,000/-) Miscellaneous Income Rs. 2,26,365/- (Previous year Rs. 4,09,484/-), Profit on sale of fixed assets Rs. NIL (Previous year Rs. 10,643/-), Insurance Claims Rs. 1,64,616/- (Previous year Rs. 7,88,083/-), Liabilities no longer required written back Rs. 4,09,640/- (Previous Year NIL).

4. Repairs to Building include Stores Rs. 1,01,786/- (Previous year Rs. 1,25,616/-).

5. Repairs to Machinery include Stores Rs. 1,59,992/- (Previous year Rs. 1,67,464/-).

6. a) The Gratuity Liability of the Company, as per Actuarial Valuation, as on 30th June, 2000 is Rs. 1,55,48,643/- against credit balance with the Approved Gratuity Fund of the Company Rs. 1,49,89,287/-. The shortfall of Rs. 5,59,356/- remains unprovided.

b) Incremental Liability on account of leave encashment benefit as per Actuarial Valuation amounting to Rs. 4,43,791/- for the year has been provided in the accounts.

7. Staff Welfare include Superannuation Benefit Policies Rs. 2,66,900/- (Previous year Rs. 2,40,900/-).

8. Expenditure in Foreign Currency on account of Raw Materials Rs. 15,59,76,150/- (Previous year Rs. 13,39,41,927/-), Travelling Rs. 66,125/- (Previous year Rs. 1,70,978/-).

9. In view of the multiplicity and identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to the current indebtedness, as required under Schedule VI, Part I of the Companies Act, 1956 are not readily ascertainable.

---

Jun 30, 1999

Notes on Secured Loans:

1. TERM LOANS :-

(i) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets present & future (Excluding Machineries under ERS) and second charge on current assets of the Company.

(ii) Secured by First Charge by way of Hypothecation of Machineries purchased under Equipment Refinance Scheme and for Pollution Control.

(iii) Secured by First Charge by way of Hypothecation of Cars purchased under the Scheme.

2. CASH CREDIT :-

Secured by Hypothecation in favour of the said Banks, jointly as and by way of first charge ranking pari-passu among themselves, of all the Company's existing and future Stock of Raw Materials, Finished goods, Stores, present and future Book Debts & Second charge on fixed Assets including movable assets.

GENERAL NOTES

3. Commitments of Capital Expenditure not provided in the Accounts estimated at Rs. 10,00,000/- (previous Year Rs. 1,29,00,000/-)

4. Contingent Liabilities not provided for in respect of :-

(i) Excise matters under appeal Rs. 2,43,178/- (Previous year Rs. 2,43,178/-) (ii) Sales Tax/Turnover Tax matters under appeal Rs. 57,89,814/- (Previous year Rs. 48,38,632/-) 5. a) Sales and Processing charges includes Processing charges in respect of :- i) Granulated Fertiliser Rs. 19,11,450/- (Previous Year Rs. 11,82,300/-) ii) Sulphuric Acid Rs. 76,45,460/- (T.D.S. Rs. 89,584/-) (Previous Year Rs. 17,83,353/-). (T.D.S. Rs. 17,623/-)

b) Income includes Dividends Rs. 15,839/- (Previous year Rs. 50/-) Interest on tax free Bonds Rs. 9,000/- (Previous Year Rs. 9,000/) Miscellaneous Income Rs. 4,09,484/- (Previous Year Rs. 3,71,826/-) Profit on sale of Fixed Assets Rs. 10,643/- (Previous year Nil) Insurance claims Rs. 7,88,083/- (Previous year 7,06,981).

6. Repairs to Buildings include Stores Rs. 1,25,616/- (Previous year Rs. 75,565/-)

7. Repairs to Machineries include Stores Rs. 1,67,464 (Previous year Rs. 2,19,831/-) Wages Rs. Nil (Previous year Rs. 1,36,915/-)

8. a) The Gratuity Liability of the Company, as per Actuarial Valuation, as on 30th June, 1999 is Rs. 1,46,08,582/- against credit balance with the Approved Gratuity Fund of the Company Rs. 1,35.67,164/-. The short fall of Rs. 10,41,418/- remains unprovided.

b) Incremental liability on account of leave encashment benefit as per actuarial valuation amounting to Rs. 17,397/- for the year has been provided in the accounts.

9. Staff welfare expenses includes Superannuation Benefit Policies Rs. 2,40,900/- (Previous Year Rs. 2,11,100/-).

10. Consumption of Raw Materials are after adjustment of Rs. 9,63,669/- (previous year Rs. 15,909/-) received against earlier year's purchase.

11. Expenditure in Foreign Currency on account of Raw Materials Rs 13,39,41,927/- (Previous year Rs. 23,32,05,033/-) Travelling Rs. 1,70,978 (Previous year Rs. 1,48,068/-).

---

Jun 30, 1997

1. Secured Loans :

a. Debentures - Secured by equitable mortgage by deposit of Title deeds or by extension to cover all the immovable properties of the Company, wherever situated including Plant & Machinery, Spares, Tools & Accessories & the movable assets both present & future, the charge shall rank pari-passu amongst Financial Institutions & debenture holders.

b. Term Loans - (i) Secured by First Charge by way of Hypothecation of Machineries purchased under Equipment Refinance Scheme.

(ii) Secured by First Charge on pari-passu basis on all movable and immovable fixed assets present & future and second charges on current assets of the Company.

c. Cash Credit - (i) Secured by Hypothecation in favour of the said Banks, jointly as and by way of first charge ranking pari-passu among themselves, of all the Company's existing and future Stock of Raw Materials, Finished goods, Stores, present and future Book Debts & Second charge on fixed Assets including moveable properties.

(ii) Satisfaction of charge created in favour of Standard Chartered Bank is in process.

2. a) Against incremental liability of Rs. 16,10,033/- on account of gratuity for the year as determined by actuarial valuation, the Company has made a Contribution of Rs. 7,30,000/- to the approved gratuity fund and balance is covered by interest accrued.

b) Incremental liability on account of leave encashment benefit as per actuarial valuation amounting to Rs. 42,000/- for the year has been provided in the accounts.

---

Jun 30, 1996

1 a) Sales and Processing charges includes Processing charges in respect of :-

(i) Granulated Fertiliser Rs.14,53,290/- (Previous Year Rs.15,91,500/-).

(ii) Sulphuric Acid Rs.3,70,346/- (Previous Year Rs.3,17,142/-).

b) Income includes Dividends on units Rs. Nil (Previous Year Rs. 18,51,200/-) (T.D.S Rs. Nil (Previous Year Rs. 4,17,456/-). Dividends 56,25,000/- (Previous Year Rs. 24,90,000/- (T.D.S. Rs. 13,90,782/-) (Previous Year Rs. 6,15,653/-). Interest on tax free Bonds Rs. 9,13,500/- (Previous Year Rs. 9,04,500/.) Miscellaneous Income Rs. 4,75,854/- (T.D.S. Rs. 3,152/-) (Previous Year Rs. 5,11,918/) (T.D.S. Rs. Nil) Profit on Sale of Investments Rs. 1,93,200/- (Previous Year Rs. 68,000/-) Drawback claims (on cash basis) Rs. 15,645/- (Previous Year Rs. Nil) Unclaimed Amount written off Rs. 1,11,672/- (Previous Year Rs. Nil) Insurance Claim Rs. 5,12,875/- (Previous Year Rs. Nil).

2. Repairs to Buildings include Stores Rs.2,20,972/- (Previous year Rs. 2,19,263/-).

3. Repair to Machineries include Stores Rs. 1,99,884/- (Previous year Rs 2,44,317/-) Wages Rs. 8,50,724/- (Previous year Rs. 3,65,719/-).

4. a) Against incremental liability of Rs. 17,58,035/- on account of gratuity for the year as determined by actuarial valuation, the Company has made a Contribution of Rs. 3,00,000/- to the approved Gratuity Fund and the balance is covered by interest accrued.

b) In view of the Accounting Standard on "Accounting for Retirement Benefits in the Financial Statement of Employers" (As-15) issued by the Institute of Chartered Accountants of India, being mandatory with effect from 1st April, 1995 the Company has made provision for leave encashment benefit on retirement aggregating to Rs. 12,00,733/-.

5. Staff welfare expenses includes Superannuation Benefit Policies Rs. 1,47,400/- (previous year Rs. 1,41,900/-).

6. Depreciation of Fixed Assets has been Charged to Accounts on Written Down Value Method except on Plant & Machinery installed during the Financial Years 1980-81 onwards on Straight Line Method in accordance with the rates specified in Schedule-XIV (as amended) of the Companies Act 1956.

7. Expenditure in Foreign Currency on account of Raw Materials Rs.17,88,17,625/- (Previous year Rs. 10,54,25,937/-) Travelling Rs. 1,46,788/- (Previous year Rs. 90,356/-).

8. Amount due from an officer of the Company as at 30th June 1996 Rs. 8,000/- (Previous year Rs. 20,000/-). The maximum amount due at any time during the period Rs.20,000/- (Previous year Rs. 20,000/-).

9. 1,500 Equity Shares of Sports Polio India) Exports Pvt. Ltd. were Purchased (Rs.4,52,250/-) and sold (Rs.4,65,000/-) during the Year.

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Jun 30, 1994

1. The Current financial year is of fifteen months and hence previous year's figures are not strictly comparable.

4. Against incremental liability of Rs.12,42,121/- on account of gratuity for the years determined by actuarial valuation, the Company has made a Contribution of Rs.7,50,000/- to the approved Gratuity Fund and the balance is covered by interest accrued.

6.Repairs to Building Stores Rs.90,960/- (Previous year Rs.36,074/-)

7. Repairs to Machineries include Stores Rs.1,99,888/- (Previous year Rs. 99,729/-) Wages Rs. 4,08,939/- (Previous year Rs. 2,23,815/-)

8. Depreciation of Fixed Assets has been Charged to Accounts on Written Down Method except on Plant & Machinery installed during the Financial Years 1980-81 onwards on Straight Line Method in accordance with the rates specified in Schedule-XIV (as amended) of the Companies Act, 1956