1) Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notifi ed by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 2) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the
 reporting period end. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.  Difference between the
 actual results and estimates is recognized in the period in which the
 results are known/ materialized.
 
 3) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 In respect of accounting periods commencing on or after December 7,
 2006, exchange differences arising on reporting of the long-term
 foreign currency monetary items at rates different from those at which
 they were initially recorded during the period, or reported in the
 previous financial statements are added to or deducted from the cost
 of the asset and are depreciated over the balance life of the asset, if
 these monetary items pertain to the acquisition of a depreciable fi xed
 asset.
 
 4) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/ external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash fl ows are discounted
 to their present value using pre tax discount rate that refl ects
 current market assessment of the time value of money and risks specifi
 c to the asset.  After impairment, depreciation is provided on the
 revised carrying amount of the asset over its remaining useful life.
 
 5) Intangible Assets
 
 Research costs are expensed as incurred. Development expenditure can
 only be capitalized if specifi c conditions are fulfi lled.
 Development expenditure incurred on software implementation is carried
 forward when its future economic benefits can reasonably be regarded
 as assured. The expenditure carried forward is amortized over their
 estimated useful life of fi ve years on straight line basis.  The
 carrying value of development costs is reviewed for impairment annually
 when the asset is not in use, and otherwise when events or changes in
 circumstances indicate that the carrying value may not be recoverable.
 
 6) Leases
 
 Finance leases, which effectively transfer to the Company
 substantially, all the risk and benefits incidental to the ownership
 of the leased item, are capitalized at the lower of the fair value and
 present value of the minimum lease payments at the inception of the
 lease term and disclosed as leased assets. Lease payments are
 apportioned between the fi nance charges and reduction of the lease
 liability based on the implicit rate of return. Finance charges are
 expensed. Lease management fees, legal charges and other initial direct
 costs are capitalized.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease item, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classifi ed as
 operating lease. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight line basis over the lease
 term.
 
 7) Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/ subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is netted off
 from the respective expense necessary to match them on a systematic
 basis to the costs, which it is intended to compensate.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related asset.
 
 8) Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classifi ed as current investments.  All other
 investments are classifi ed as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis.
 
 Long-term investments are carried at cost. However, provision for
 diminution in the value is made to recognize a decline other than
 temporary in the value of the investments.
 
 9) Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition and
 construction of an asset that necessarily takes a substantial period of
 time to get ready for its intended use are capitalized as part of the
 cost of the respective asset. All other borrowing costs are expensed in
 the period they occur. Borrowing costs consists of interest and other
 costs that an entity incurs in connection with the borrowing of funds.
 
 10) Revenue Recognition
 
 Revenue is recognised to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 (i) Sale of Goods
 
 Revenue, including subsidy, in respect of sale of products is
 recognised when the signifi cant risks and rewards of ownership of the
 goods is passed to the buyer. Excise Duty deducted from turnover
 (gross) are the amount that is included in the amount of turnover
 (gross) and not the entire amount of liability accruing during the
 year. Sale is net of trade discounts and sales tax.  Subsidy on Urea is
 recognized based on Concession rate, including freight, as notifi ed
 under the New Pricing Scheme, Uniform Freight Policy and New Investment
 Policy, further adjusted for input price escalation/de-escalation as
 estimated by the management based on the prescribed norms.
 
 Subsidy on Traded fertilisers is recognized based on monthly Concession
 rates, including freight, as notifi ed by the Government of India under
 Nutrient Based Subsidy Scheme and Uniform Freight Policy.
 
 (ii) Income from operations of Shipping Division
 
 In respect of voyage charter, revenue is recognized on proportionate
 number of days of respective voyage. In case of time charter (including
 cost plus charter), revenue is recognized on time proportion basis.
 
 (iii) Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.  Further, interest on
 delayed payment from customers are accounted on accrual basis to the
 extent these are measurable & ultimate collection is reasonably
 certain.
 
 (iv) Dividend
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries is
 recognised even if the same is declared after the balance sheet date
 but pertains to period on or before the date of balance sheet as per
 the requirement of Schedule VI of the Companies Act, 1956.
 
 (v) Insurance Claims
 
 Claims receivable on account of insurance are accounted for to the
 extent the Company is reasonably certain of their ultimate collection.
 
 (vi) Export Benefits
 
 Export benefits under Duty Exemption Advance License Scheme, Duty
 Exemption Pass Book Scheme and Duty Drawback Scheme are accounted for
 in the year of export of goods.
 
 11) Foreign Currency Translation 
 
 (i) Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange differences
 
 Exchange differences, in respect of accounting periods commencing on or
 after December 7, 2006, arising on reporting of long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in previous fi
 nancial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to or deducted from the cost of
 the asset and are depreciated over the balance life of the asset, and
 in other cases, are accumulated in a Foreign Currency Monetary Item
 Translation Difference Account in the enterprise''s financial
 statements and amortized over the balance period of such long-term
 asset/liability but not beyond accounting period ending on or before
 March 31, 2011.
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expenses in the year in which they arise.
 
 (iv) Forward exchange contracts not intended for trading or speculation
 purposes
 
 The premium or discounts arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange difference on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rate
 changes. Any profit or loss arising on cancellation or renewal of
 forward exchange contracts is recognized as income or expenses for the
 year.
 
 4) Retirement and other employee benefits
 
 (i) Retirement benefit in the form of Provident Fund is a defi ned
 benefit obligation in case of fertiliser and shipping division of the
 Company and the contributions are charged to the Profit & Loss Account
 of the year when the contributions to the respective funds are due.
 Shortfall in the funds, if any, is adequately provided for by the
 Company.
 
 In respect of Textile division of the Company, Provident Fund is a defi
 ned contribution scheme and the contributions are charged to the Profi
 t and Loss Account of the year when the contributions to the respective
 funds are due. There are no other obligations other than the
 contribution payable to the respective funds.
 
 (ii) Superannuation Fund is a defi ned contribution scheme. Liability
 in respect of Superannuation Fund to the concerned employees of
 Fertiliser & Shipping Division is accounted for as per the Company ''s
 Scheme and contributed to Life Insurance Corporation of India (LIC) /
 ICICI Prudential Life Insurance Company Limited (ICICI) every year. The
 contributions to the funds are charged to the Profit and Loss Account
 of the year. The Company does not have any other obligation to the fund
 other than the contribution payable to LIC / ICICI.
 
 (iii) Pension fund is a defi ned contribution scheme and the
 contributions are charged to the profit and loss account of the year
 when the contributions to the respective funds are due. There are no
 other obligations other than the contribution payable to the respective
 funds.
 
 (iv) Gratuity liability is a defi ned benefit obligation and is
 provided for on the basis of an actuarial valuation on projected unit
 credit method made at the end of each financial year. However, in
 respect of Fertiliser division Company has taken policies from LIC &
 ICICI and for Shipping Division, the Company has taken a policy from
 LIC to cover the gratuity liability of the employees. The difference
 between the actuarial valuation of the gratuity of employees at the
 year-end and the balance of funds with LIC & ICICI is provided for as
 liability in the books.
 
 (v) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for on the basis
 of actuarial valuation at the year end. The actuarial valuation is done
 as per projected unit credit method.
 
 (vi) Actuarial gains/ losses are immediately taken to Profit & Loss
 Account and are not deferred.
 
 5) Income Taxes
 
 Tax expense comprises of current, deferred and tonnage tax. Current
 income tax and tonnage tax is measured at the amount expected to be
 paid to the tax authorities in accordance with the Indian Income Tax
 Act, 1961. Deferred income taxes refl ects the impact of current year
 timing differences between taxable income and accounting income for the
 year and reversal of timing differences of earlier years.
 
 The Shipping Division of the Company is covered under Tonnage Tax
 Scheme under section 115V of the Income Tax Act, 1961, therefore the
 items of income/expenses of shipping division has not been considered
 for the purpose of deferred tax calculation.  
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that suffi cient future taxable
 income will be available against which such deferred tax assets can be
 realised. In situation where the Company has unabsorbed depreciation or
 carry forward tax losses, deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that such
 deferred tax assets can be realised against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that suffi cient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that suffi
 cient future taxable income will be available.
 
 12) Segment Reporting Policies Identifi cation of segments
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products manufactured, traded and services
 provided, with each segment representing a strategic business unit that
 offers different products and serves different markets. The analysis of
 geographical segments is based on the locations of customers.
 
 Allocation of common costs
 
 Common allocable costs are allocated to each segment in proportion to
 the relative sales of each segment.
 
 Unallocated items
 
 All the common income, expenses, assets and liabilities, which are not
 possible to be allocated to different segments, are treated as
 unallocated items.
 
 Segment policies
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting financial
 statements of the Company as a whole.
 
 13) Earning per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of the equity shares outstanding during the period.
 
 For the purpose of calculating diluted earning per share, net profit
 or loss for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effect of all dilutive potential equity shares.
 
 14) Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outfl ow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best management estimate
 required to settle the obligation at the balance sheet date. These are
 reviewed at each balance sheet date and adjusted to refl ect the
 current best estimates.
 
 15) Cash and Cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 16) Derivative Instruments
 
 As per the ICAI Announcement, accounting for derivative contracts,
 other than those covered under Accounting Standard 11, are marked to
 market on a portfolio basis, and the net loss after considering the
 offsetting effect on the underlying hedge item is charged to the profi
 -t & loss account. Net gains are ignored.
 
 17) Employee Stock Option Scheme
 
 Measurement and disclosure of the employee stock option scheme is done
 in accordance with Securities and Exchange Board of India (Employee
 Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
 1999 and the Guidance Note on Accounting for Employee Share-based
 Payments, issued by the Institute of Chartered Accountants of India.
 The Company measures compensation cost relating to employee stock
 options using the intrinsic value method. Compensation expense is
 amortized over the vesting period of the option on a straight line
 basis.