Deepak Fertilizers and Petrochemicals Coprn

1.  CHANGES IN ACCOUNTING POLICIES
 
 The Accounting Standard -11 on Effects of Changes in Foreign Exchange
 rates has been amended vide Companies (Accounting Standards) Amendment
 Rules, 2009 giving an option to the Company to capitalise the effect of
 foreign currency translation ./ variance pertaining to borrowings
 related to acquisition of Fixed Assets. The Company has exercised the
 option and accordingly adjusted exchange loss in the cost of Fixed
 Assets during the year. This hitherto was debited to Profit and Loss
 Account. Also, exchange gain pertaining to previous financial year has
 been adjusted in the cost of Fixed Assets and debited to General
 Reserve. Correspondingly, profit for the year is higher by Rs. 1,952.28
 Lacs. Fixed Assets/Capital Work-in-Progress and Reserves are also
 higher by an amount of Rs.  1,333.04 Lacs after adjusting a gain of Rs.
 619.24 Lacs of the preceding financial year.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 20,743.15 Lacs (Previous Year: Rs.
 13,607.23 Lacs).
 
 3.  Gas Authority of India Limited (GAIL), supplier to the Company of
 natural gas, one of the main raw materials, has effected the supplies
 at provisional rate as indicated in the invoices. However, according to
 the Company any revision in natural gas price will be only prospective
 as per the existing convention/practice followed by Government of
 India.
 
 4.  Exceptional items represent:
 
 - Amortisation of VRS Compensation paid Rs. 65.95 Lacs (Previous Year:
 Rs. 65.95 Lacs).
 
 - Expenditure on brand launching Rs. 265.16 Lacs (Previous Year: Rs.
 210.07 Lacs).
 
 5.  In respect of long term investment in listed securities, the
 diminution in value is estimated on the basis of appraisal made by
 Portfolio Managers.
 
 6. IMPAIRMENT OF ASSETS : The Company has examined carrying cost of its
 identified Cash Generating Units (CGU) by comparing present value of
 estimated future cash flows from such CGUs, in terms of Accounting
 Standard-28 on Impairment of Assets, according to which no provision
 for impairment is required as assets of none of CGUs are impaired
 during the financial year ended 31st March, 2009.
 
 7.  (i) Sundry Debtors include dues from companies in which some of
 the Directors are Directors/Members : Rs. 223.28 Lacs (Previous Year:
 Rs. 194.27 Lacs) maximum amount due during the year: Rs. 1,326.75 Lacs
 (Previous Year: Rs. 661.16 Lacs).
 
 (ii) Loans and Advances include :
 
 - Security deposit of Rs. 200 Lacs (Previous Year : Rs. 200 Lacs)
 placed with Vice-Chairman & Managing Director towards lease of
 residential premises.
 
 - Due from officers Rs. 8.54 Lacs (Previous Year : Rs. 12.66 Lacs)
 Maximum amount due during the year Rs. 12.66 Lacs (Previous Year: Rs.
 16.48 Lacs).
 
 8.  To comply with the requirement of The Micro, Small And Medium
 Enterprises Development Act, 2006, the Company requested its suppliers
 to confirm it whether they are covered as Micro, Small or Medium
 enterprise as defined in the said Act. Based on the communications
 received from such suppliers confirming their coverage as such
 enterprise, the Company has recognised them for the necessary treatment
 as provided under the Act, from the date of receipt of such
 confirmations and there is no default in payment to such enterprise as
 specified in the said Act. However, the amount outstanding as well as
 interest applicable are insignificant and hence not separately
 disclosed.
 
 9.  Segment Reporting - Refer Annexure - A.
 
 10.  Related Party Disclosure - Refer Annexure - B.
 
 11.  Statutory dues not deposited on account of dispute - Refer
 Annexure - C.
 
 12.  Previous years figures have been re-grouped wherever necessary to
 conform to current years grouping.