July 10 to  April 09 to
                                                 March 11      June 10
 
 1.  Contingent Liabilities not provided for:
 
 (i) Outstanding claims in respect of Excise 
 Duty, Sales-Tax, etc.                             46.40        44.21
 
 (ii) Guarantees given by the Company''s Bankers    51.46        33.75
 
 (iii) Arrears of Cumulative Preference Dividend  406.81       365.56
 
 (iv) Claims against Company not acknowledged 
 as debts                                          55.76        55.76
 
 (v) Estimated Amount of Contracts remaining 
 to be executed on Capital Account & not 
 provided for.                                         -        29.77
 
 2.  Wages, Salaries and Bonus include provision made as per actuarial
 valuation in respect of accumulated leave salary encashable on
 retirement in accordance with Accounting Standard 15 notified persuant
 to the companies (Accounting Standards) Rules, 2006. Contribution to
 Provident and other funds includes Company''s contribution to Provident
 Fund, Family Pension Fund, Gratuity Fund (based on actuarial valuation)
 and Superannuation Fund.
 
 3.  In case of payments made from 1st April, 2000, under the Voluntary
 Retirement Schemes of the Company, the total amount paid is treated as
 a deferred revenue expenditure and amortised over a period of 84 months
 or the number of months service foregone, whichever is lower, using the
 sum of digits method. Under this method the charge to Profit and Loss
 account is lowest in the first year and the highest in the last year.
 However, the amount to be amortised beyond 31st March 2010 also is
 charged during the period of April 2009 to June 2010, in accordance
 with Accounting Standard (AS 15) (Revised 2005) on Employee Benefits.
 Accordingly a sum of Rs.Nil (Previous Year Rs.741.88 lacs) has been
 charged to the Profit and Loss Account as deferred revenue expenditure,
 on account of compensation paid to employees under Early Voluntary
 Retirement Schemes and Rs. Nil (Previous Year Rs.Nil) has been carried
 forward to Deferred Revenue Expenditure account as per the method of
 accounting followed by the Company.
 
 4.  The cost to the Company arising out of the conversion of Lenders''
 Sacrifice (by way of the reduction in the interest rates) was being
 amortised equally over the period of repayment of term loans to the
 Lenders, upto 30th June 2010. In view of the completion of the
 negotiated settlements with the Lenders during the period ended
 31/03/2011, the entire unamortised amount of Lenders'' Sacrifice
 amounting.to Rs. 70.97 lacs as on 30/06/2010 has been amortised during
 the period ended 31/03/2011.
 
 11 Miscellaneous expenses for the period ended 31.03.2011 includes gain
 / (loss) Rs.(18.28) lacs (previous year Rs. (12.24) lacs )on foreign
 exchange.
 
 5. There are no Micro, Small and Medium Enterprises, to whom the
 Company owes dues at the Balance Sheet date, computed on unit wise
 basis.  Further, the Company has not paid any interest to any Micro,
 Small and Medium Enterprises during the 9 months period ended on the
 Balance Sheet date, nor is any interest payable to any Micro, small and
 Medium Enterprises on the Balance sheet date.
 
 The above information has been determined to the extent such parties
 have been identified on the basis of information available with the
 Company. This has been relied upon by the auditors.
 
 13 (a) A contract was entered into in 1993 between the Company and
 General Fertiliser Co., (GFC) Horns, Syria for revamping of two streams
 of Sulphuric Acid Plant of GFC by the Company. The value of the
 contract was USD 12.8 million plus Syrian Pounds 72 million, equivalent
 to Rs.44.24 crores, considering the exchange rates prevailing in 1993.
 The Company has completed this project and has also given the required
 performance test runs on the two streams of the Sulphuric Acid plant.
 The Company has also received all payments from GFC, Syria except
 payment of certain invoices aggregating to USD 1.37 million (included
 in Sundry Debtors) equivalent to Rs.620.01 lacs as on 31.03.2011. The
 Company has also made claims from GFC, Syria towards interest on
 delayed payments, bank charges for extention of the validity period of
 the Letter of Credit/bank Guarantees and other overheads.
 
 The Company has not taken any credit for these claims in the books of
 accounts. As provided in the contract, the case was referred to the
 Arbitration Tribunal at Damascus, Syria. The Arbitration Tribunal has
 given its award, according to which GFC, Syria was required to make
 payment to the Company of the aforesaid unpaid dues aggregating to USD
 1.37 million. .
 
 Further, the Arbitration Tribunal has accepted certain claims made by
 the Company as also by GFC. Syria. The Company as well as GFC, Syria
 have filed their respective appeals against the Arbitration award with
 the State Council at Damascus, Syria. The Company as well as GFC, Syria
 have made certain claims on each other, in their respective appeals as
 filed with the State Council. The State Council constituted a seven
 member Expert Committee in October 2002 to examine these claims and
 give its recommendations. The Report of this Expert Committee,
 containing its recommendations has been submitted to the State Council.
 The comments received from GFC, Syria and the Company (in response to
 the recommendations of the Expert Committee) have been forwarded by the
 State Council to the Expert Committee. Based on these comments, the
 Expert Committee has submitted its Report to the State Council
 recommending payment to the Company of the aforesaid invoices
 aggregating to USD 1.37 million (equivalent to Rs.620.01 lacs) and
 certain other claims of the Company.
 
 On this basis, the Supreme Administrative Court of Syria has given its
 judgement according to which a net amount of about USD 0.90 Million
 (equivalent to Rs. 398.43 lacs) is payable by GFC to the Company as on
 31.03.2011 The shortfall in receivable between the amount included in
 Sundry Debtors as on 31.03.2011 (i.e. Rs.620.01 lacs) and the net
 amount payable to the Company as on 31.03.2011 as per the judgement
 given by Supreme Administrative Court of Syria (i.e. Rs. 398.43 lacs),
 has already been provided in earlier Financial Year.
 
 (b) The Company has made a provision for Doubtful Debts and Advances
 aggregating to Rs.1898.22 lacs upto the period ended 31.03.2011
 (Previous Year 1823.22 lacs). In the opinion of the Management of the
 Company, this provision is adequate to cover the Doubtful Debts &
 Advances as on 31.03.2011, including those in respect of dues from GFC,
 Syria (to the extent considered doubtful).
 
 (c) The Debtors as on 31.03.2011 are subject to confirmations from
 customers.
 
 6 Consequent to the negotiated settlements with the Secured/Unsecured
 Lenders, an amount aggregating to Rs.3362.76 Lacs payable by the
 Company to these lenders has been waived by the said lenders. The
 Company has credited this amount of Rs. 3362.76 Lacs to ''Capital
 Reserve'' during the period ended 31.03.2011, since it consists of
 principal amount of borrowings only (without any interest component).
 Those negotiated settlements do not involve any cash flows and hence
 are not included in the Cash Flow from Financing Activities'''' as
 disclosed in the attached Cash Flow Statement for the period ended 31
 st March 2011.
 
 7 Interest expense for the period ended 31 st March 2011 and for the
 period ended 30th June 2010 is net off interest income of Rs.10.55 lacs
 and Rs.12.67 lacs, respectively. Tax deducted at source in respect of
 aforesaid interest income for the period ended 31st March 2011 is Rs.
 1.55 lacs (Previous year Rs.1.01 lacs).
 
 8 (a) No provision has been made in respect of current income tax
 since there is no taxable income during the period ended 31st March
 2011 and for the period ended 30th June 2010.
 
 (b) The Company will start trading in various fertilisers and other
 agri inputs in association with a  Strategic Investor, after
 completing sale of fixed assets of the Company at its Ambamath factory.
 This will result in significant additional turnover and profits.
 Consequently, there is virtual certainty of realisation in respect of
 Deferred Tax Asset mainly resulting from unabsorbed depreciation and
 carried forward losses. Accordingly, the Company had recognised
 Deferred Tax Asset amounting to Rs. 2148.17 Lacs, in the Financial
 Accounts for the 18 months ended 30th September 2007, considering 
 unabsorbed depreciation and unabsorbed business losses upto 31.03.2007. 
 The Company has recognised further Deferred Tax Asset amounting to Rs.
 505.98 lacs in the Financial Accounts for the period of 18 months ended
 31.03.2009, mainly resulting from Unabsorbed Depreciation upto
 31.03.2009 and Unabsorbed Business Losses upto 31.03.2008.  The Company
 will also recognise Deferred Tax Asset resulting from further
 Unabsorbed Depreciation and further Unabsorbed Business Losses,
 after completing sale of fixed assets of the Company at its Ambamath
 factory.
 
 8. (a) The non-viable operations of the Company''s fertiliser and
 chemical business at its Ambemath factory had resulted in continued
 losses and delayed payment of wages and salaries to employees for last
 several months. With a view to reduce losses, the Management had
 submitted its Charter of Demands on the Company''s recognised Union at
 Ambemath, which has been rejected by the Union. The Management,
 therefore, has suspended the operations of its Ambemath factory, with
 effect from 23rd January, 2009 and has issued a notice of Lock Out of
 the said factory with effect from 9th February, 2009. Consequently, the
 Company has not provided for the employees cost with effect from 9th
 February, 2009 (being not payable), in respect of those employees who
 are covered by Lock Out.
 
 The Company''s recognised Union at Ambemath requested the Industrial
 Court, Maharashtra, at Thane to grant various interim reliefs
 (including granting of stay on the effect, implementation, and
 operation of the afforsaid notice of Lock Out). This request of the
 Union was rejected by the Industrial Court, Maharashtra, at Thane.
 
 Subsequently, the Company signed a Memorandum of Agreement dated 30th
 June 2010 with the Company''s recognised Union at Ambarnath, under which
 a Voluntary Separation Scheme was introduced for the workmen at
 Ambemath (including workmen of Head Office). Accordingly ail workmen at
 the Company''s Ambarnath factory (including workmen of Head Office) have
 since applied for Voluntary Separation from the services of the
 Company. The Separation Compensation (aggregating to Rs.707.01 lacs)
 payable to all these workmen has been provided in the books of account
 for the extended Financial Year ended 30/06/2010 and same has since
 been paid to these workmen in August, 2010 alongwith all other legal
 dues.
 
 (b) The Company has obtained the requisite approval of the shareholders
 under section 293(1 )(a) of the Companies Act, 1956 for sale / transfer
 / disposal of its Land, Factory Buildings and Plant & Machinery at its
 Ambemath factory. (Written Down Value of the Fixed Assets of the
 Company at its Ambemath factory as on 31.03.2011 is Rs. 2380.12 lacs).
 Therefore, while reporting Segment Results, in Note No. 18 to the
 accounts, depreciation of Ambarnath factory has been shown separetly
 and remaining loss of Ambarnath factory has been included in
 Others/Unallocated Expenditure. Also, Fixed Assets, Current Assets
 and Current Liabilities relating to the Ambarnath factory of the
 Company have been excluded for segment-wise reporting of Capital
 Employed.
 
 9 Segment Reporting :
 
 The Company has disclosed Business Segments as its primary segments.
 Reporting segments have been identified as Fertilisers, Chemical, and
 Others / Unallocated, taking into account the nature of products, the
 different risks and returns, the organisation structure and the
 internal reporting system.
 
 Segment Revenue, Segment Results, Segment Assets and Segment
 Liabilities include the respective amounts identifiable to each of the
 segments as also the amounts allocated on a reasonable basis to the
 respective segments. The expenses, which are not directly related to
 the business segments, are shown as unallocated costs. Corporate
 current assets and liabilities have been allocated on the basis of
 turnover of the segments. Assets and Liabilities that cannot be
 allocated between the segments are shown as a part of unallocated
 assets & liabilities. Inter Segment Transfers are at cost of
 production.
 
 10 Related Parties Disclosures :
 
 (A) Promoters holding more than 20% of the voting power
 
 Name of the Related Parties Nature of Relationship
 
 (i) Shri L.N.Goculdas Promoter and Chairman (holding more than 20%.of
 the voting power)
 
 (B) Associate/Other Related Companies
 
 Name of the Related Parties Nature of Relationship
 
 (i) Borax Morarji Ltd.  Associate Company
 
 (ii) The Natural Gas Co.Pvt.Ltd.  Other Related Company
 
 (iii) L.P.Gas Equipment Pvt.Ltd.  Other Related Company
 
 (iv) Phoenix Distributors Pvt.Ltd.  Other Related Company
 
 (v) Jasraj Trading Co.  Other Related Company
 
 (vi) Kosan Industries Pvt.Ltd.  Other Related Company
 
 (vii) Bombay Foods Pvt.Ltd.  Other Related Company
 
 (C) Key Management Personnel
 
 Shri D.P.Goculdas Chief Executive Officer upto 06.04.2011
 
 Shri B.L.Goculdas Chief Executive Officer
 
 Shri D.N.Vaze Chief Finance Officer
 
 Shri D.T.Gokhale Vice President (Legal / Corporate Affairs) &
 
 Company Secretary
 
 11 The Company has prepared the financial statements for the period
 ended 31.03.2011 on a Going Conern Basis since the Company is
 confident that its profitablity will improve in future in view of the
 following:
 
 a) A new activity of trading (in various fertilizers and other agri
 inputs) which the Company will commence in association with a
 Strategic Investor after completing sale of Fixed Assets of the
 Company situated at Ambernath, and
 
 b) Continued efforts by the Company for improving efficiency,
 restructuring / rationalisation of operations and optimisation of cost.
 
 12 The Company has closed the current Financial Year of 9 months on
 31/03/2011, as decided by the Board of Directors of the Company.
 Accordingly Financial Statements for the Current Financial Year have
 been prepared for a period of 9 months commencing from 1st July, 2010
 and ending on 31 st March, 2011. Therefore, figures as per these
 Financial Statements are not comparable with the figures in respect of
 previous financial year i.e. 1st April, 2009 to 30th June, 2010 (which
 was a period of 15 months).
 
 13 Figures in respect of the previous year have been regrouped wherever
 necessary.