(A) Basis of Preparation of Financial Statements:
 
 The financial statements have been prepared under the historical cost
 convention except revaluation of Single Super Phosphate Plant Buildings
 and Sulphuric Acid Plant Buildings, on an accrual basis of accounting,
 in accordance with Generally Accepted Accounting Principles (GAAP)
 accepted in India; accounting standards issued by the Institute of
 Chartered Accountants of India, as applicable and as per the provisions
 of Companies Act, 1956.
 
 (B) Use of Estimates:
 
 The preparation of financial statement requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and reported amount of
 revenues and expenses during the reporting period. Difference between
 the actual results and estimates are recognised in the period in which
 the results are known / materialised.
 
 (C) Fixed Assets and Depreciation:
 
 i) Fixed Assets are stated at cost except Single Super Phosphate Plant
 Buildings
 
 and Sulphuric Acid Plant Buildings which were revalued on 31st March
 2000, net of Cenvat and Value added tax less accumulated depreciation
 including impairment loss.
 
 ii) Software is capitalised where it is expected to provide future
 enduring economic benefits. Capitalisation cost includes license fees,
 cost of implementation/system, integration services & incidental
 expenses related to its acquisition.
 
 iii) Depreciation on Fixed Assets has been provided on Written Down
 Value Method at the rates and in the manner prescribed in Schedule XIV
 of the Companies Act, 1956.
 
 (D) Investments:
 
 Long Term Investments are carried at cost less provision, if any, for
 permanent diminution in value of such investments. Provision for
 diminution in the value of long-term investments is made only if such a
 decline is other than temporary in the opinion of the management.
 
 (E) Inventories:
 a) Fertilser Division:
 
 i) Raw Materials and Stores & Spares are valued at cost.
 
 ii) Finished stocks are valued at cost or net realisable value
 whichever is lower.
 
 iii) The valuation of inventories includes taxes, duties of non
 refundable nature and direct expenses, and other direct cost
 attributable to the cost of inventory, net of excise duty.education
 cess and value added tax.
 
 b) Construction Division:
 
 Inventory comprises completed property for sale and property under
 construction
 
 (Construction Work-in-Progress).
 
 i) Completed unsold inventory is valued at lower of cost and net
 realisable value. Cost is determined by including cost of land (at book
 value), materials, services and other related proportionate overheads.
 
 ii) Work-in-progress is valued at lower of cost and net realisable
 value. Cost comprises cost of land (at book value), materials, services
 and other proportionate overheads related to projects under
 construction.
 
 (F) Provision for Current tax and Deferred tax
 
 I) Tax on Income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act 1961, and based on expected outcome of
 earlier year assessments/appeals.  
 
 ii) Deferred Tax resulting from timing differences between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantivelyer. acted as on the Balance Sheet date.  
 
 iii) Deferred tax assets are recognized and carried forward to the
 extent that there is virtual certainty sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised.
 
 (G) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Provisions are determined based on management estimates required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current management
 estimate. Contingent liabilities are not recognised but are disclosed
 in the notes. Contingent assets are neither recognised nor disclosed in
 the financial statements.
 
 (H) Segment policies
 
 The Company''s reporting segments are identified based on
 activities/products, risk and reward structure, organization structure
 and internal reporting systems.
 
 (I) Earnings per share
 
 The earnings considered in ascertaining the Company''s EPS is the net
 profit after tax. The number of shares used in computing basic EPS is
 the weighted average number of shares outstanding during the period.
 The weighted diluted earnings per equity share are computed using the
 weighted average number of equity shares and dilutive potential equity
 shares outstanding during the period.
 
 (J) Revenue Recognition:
 
 I) Sales of goods of Manufacturing Division are recognised on
 dispatches to the customers.
 
 ii) Revenue from real estate is recognised on the transfer of all
 significant risks and rewards of ownership to the buyers by way of
 execution of documents.  The Company hasrecognised the revenue on the
 basis of Percentage of Completion Method of accounting.Proportionate
 revenue is recognised in relation to sold area only. As per this
 method, revenue from sale of properties is recognised in Profit and
 Loss Account in proportion to the actual cost incurred as against the
 total estimated cost of the project, subject to such actual costs being
 30% or more of the total estimated cost.
 
 iii) Dividends are recognised when the right to receive the same is
 established.
 
 (K) Turnover
 
 Turnover includes sale of goods, net of excise duty, service tax and
 sales tax.
 
 (L) Employee Benefits:
 
 i) Short term employee Benefits: Short term employee Benefits are
 recognized as an expenses at the undiscounted amount in the Profit and
 Loss Account of the year in which related service is rendered.
 
 (M) Cost of construction/development:
 
 Cost of construction/development (including book value of land)
 incurred is charged to Profit & Loss Account proportionate to area
 sold. Adjustments, if required, are made on completion of the
 respective projects.
 
 (N) Allocation of Expenses:
 
 Common construction expenses are allocated on the basis of ratio of
 area under construction of each building. Corporate employee
 remuneration, administration expenses and other overheads are allocated
 on the basis of turnover ratio of the respective divisions.