1.  Current Assets, Loans & Advances and Provisions
 
 a) The current assets and loans and advances are approximately of the
 value stated, if realized in the ordinary course of business.
 
 b) The provision for all known liabilities is not in excess of the
 amounts reasonably necessary.
 
 c) The balances of Sundry Creditors, Sundry Debtors and Loans and
 Advances are subject to confrmation.
 
 2.  Gratuity
 
 The Company has opted for Life Insurance Corporation of India''s group
 gratuity scheme for its employees. The scheme offered by the Life
 Insurance Corporation of India permits the company for payment of
 arrears in five yearly installments commencing from 1st December, 2005.
 The total contribution payable including arrears as per life insurance
 corporation of india as on 31/03/11 is Rs 33,881,684/-. During the year
 the company has paid Rs 17,807,357/- (Previous year Rs 3,879,534/-)
 towards gratuity fund. The unprovided liability as on 31/03/2011 is Rs
 Nil/- ( Previous year Rs Nil ). The details of contribution to gratuity
 fund are as under:
 
 a) Present value of obligations as on 31/03/2011 is Rs 33,881,684/
 (Previous Year Rs 25,900,077/-).
 
 b) Fair value of plan assets as on 31/03/2011 is Rs 26,826,802/-
 (Previous Year Rs 9,850,079/-).
 
 c) Provisions made (fully) as on 31/03/2011 is Rs 7,054,882/- (Previous
 Year Rs 16,049,998/-).
 
 3.  Contingent Liability not provided for in the accounts:
 
 a) Letters of credit / guarantees given to Banks Rs 5,715.01 lakhs
 
 b) Bills discounting with Banks Rs 2,214.05 lakhs
 
 c) Claims against company not acknowledged as debts Rs 86.50 lakhs which
 includes tax dues disputed as Rs 5.12 lakhs towards sales Tax, Rs 54.56
 lakhs towards Income Tax and includes Rs 25.73 lakhs pertaining to
 pending suits regarding quality issue.
 
 d) The Commissioners of Central Excise, Mumbai and Hyderabad has issued
 Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of
 Micronutrients. The Commissioner of Central Excise, Mumbai, vide his
 Order dated 27th November, 2006 and Commissioner of Central Excise,
 Hyderabad, vide his Order dated 30th November 2005 had cancelled these
 demands in respect of clearance upto June, 2006. The Department has
 preferred appeals against the said orders. The Department has issued
 Show Cause Notices to the Company in respect of clearances thereafter.
 Though, in view of the Orders referred to above and the pending
 appeals, no action has been taken. The Company expects no liability in
 this regard.
 
 e) Estimated amount of Contracts remaining to be executed on capital
 account and not provided for (Net of Advances) is Rs 140 Lacs.
 
 4.  Income Tax
 
 The current charge for income tax is calculated in accordance with the
 relevant tax regulations applicable to the Company. Deferred Tax Assets
 and Liabilities are recognized for the future tax consequences
 attributable to timing differences that result between the profit
 offered for Income Tax and profit as per financial statements.
 
 Deferred Tax assets and liabilities are measured using tax rates and
 tax laws that have been enacted or substantively enacted on the balance
 sheet date. The effect on deferred tax assets and liabilities of a
 change in tax rates is recognized in the period that includes the
 enactment date.
 
 Assumption:
 
 All the expenses claimed (but allowable on the condition of payment U/s
 43B) will be paid on or before due date.
 
 5.  Segmental Reporting as per Accounting Standard - 17
 
 The Company has only One Reportable Segment in terms of Accounting
 Standard 17 issued by ICAI
 
 6.  Remuneration to Directors
 
 Remuneration paid to Chairman & Managing Director and Executive
 Director is within the limits laid down under Schedule XIII to the
 Companies Act, 1956 and included in the profit and Loss Account, as
 Directors Remuneration.
 
 7.  Micro and Small Scale Business Entities
 
 There are no micro and small Enterprises to whom company owes dues,
 which are outstanding for more than 45 days as at 31st March, 2011.
 This Information as required to be disclosed under the Micro, Small and
 Medium Enterprises Development Act, 2006 has been determined to the
 extent such parties have been identifed on the basis of information
 available with the company.
 
 8.  (A) Additional information required under Part II of Schedule VI
 of the Companies Act, 1956 is as under:
 
 (As certifed by the management and relied upon by the Auditor)
 
 Licensed Capacity : Not Applicable
 
 Installed Capacity : 84,600 Metric Tonnes
 
 (84,600 Metric Tonnes)
 
 (B) Actual Production : 39,577 Metric Tonnes
 
 (35,647 Metric Tonnes)
 
 9.  Term Loans from HDFC (classifed as unsecured) is secured against
 the personal assets of the directors.
 
 10.  Management Fees receivables on management of Farmer''s Loan from
 HDFC Bank will be accounted for on raising of invoices / accrual basis.
 
 11.  Loans & Advances includes the Custom Duty Refund awaited Rs
 2,493,152/-.
 
 12.  Margin for Bank Guarantees includes 295,000/- being the amount of
 Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries /
 Associates.
 
 13.  Previous years fgures have been regrouped wherever necessary so as
 to make them comparable with the current year.