Rs. in Lakh 
 
                                                 31.03.2011  31.03.2010
 
 1 Contingent Liabilities not provided for :
 
 (i) Claims against the company pending before 
 various legal / statutory authorities and not 
 acknowledged as debts in respect of:
 
 a) Excise Duty                                      63.79      60.85
 
 b) Service Tax                                      51.47      43.48
 
 c) Sales Tax / Entry tax                           446.97     421.74
 
 d) Customs Duty                                     40.04      40.04
 
 e) Income Tax                                      599.34     599.34
 
 f) ESI                                             218.16     215.42
 
 g) Suppliers and contractors                    179569.57  178979.05
 
 h) Others                                          375.82     398.15 
 
 (ii) Excise duty demand of Rs. 26.42 lakh on 
 purchase of Raw material, pending appeal, has 
 not been considered since the liability rests 
 with supplier as per order terms (Previous 
 Year Rs. 24.85 lakh).
 
 (iii)   Guarantees given to various Clients/
 Statutory Authorities for performance of 
 contracts /obligations are not included, as 
 the money value thereof cannot be ascertained. 
 In addition company has provided Corporate 
 Guarantee for the term loan of M/s FACT-RCF 
 Building Product  Ltd.                            1750.00    1750.00
 
 2 Fixed Assets include:
 
 a) Out of the total 2150.69 (Previous year 2150.69 acres ) acres of
 land held by the Company,158.82 acres (Previous year 158.82 acres ) are
 held under leasehold right. Out of this, lease agreement in respect of
 15.47 acres (Previous year 15.47 acres ) of leasehold land belonging to
 Cochin Port Trust is under renewal.
 
 b) Land for Rs. 504.17 lakh (Previous year Rs. 496.52 lakh) in respect
 of which the title deeds are yet to be registered/ received. Certain
 land owners have since preferred extra compensation claims which are
 pending before Courts. The liability on this account is not
 ascertainable. Interest and legal expenses incurred on land acquisition
 cases are charged to Profit and Loss account of the year.
 
 d) As per the Joint Venture agreement with M/s Rashtriya Chemicals and
 Fertilisers Limited (RCF), the company, during 2008-09, has made
 available 11 acres of land at Cochin Division on lease basis to M/s.
 FACT-RCF Building Products Limited for a period of 20 years on an
 upfront premium of Rs. 1000 lakh and an yearly rent of Rs. 10 per year.
 
 e) Underpass/ Overbridge on the newly constructed container terminal
 approach road on the land acquired by the National Highway Authority of
 India is meant for exclusive FACT use forming part of railway
 siding/approach road for movement of FACT products. Pending
 construction of railway siding / approach road, the expenditure of Rs.
 335.08 lakh incurred on under pass/overbridge has been included in the
 capital work in progress, since it is having future economic benefits.
 
 3 Cost of Railway siding includes Rs. 85.43 lakh (Previous year Rs.
 85.43 lakh) ,written down value Rs. 4.27 lakh (Previous year Rs. 4.27
 lakh), held jointly with M/s.Bharat Petroleum Corporation Limited
 (Kochi Refinery).
 
 4 The cost of Licence fee and implementation of SAP ERP system software
 has been capitalised during the year 2009-10 as Intangible Asset and
 depreciated proportionately over a period of five years from the date
 of commissioning. Addition during the year is Rs. 15.39 lakh(Previous
 Year Rs. 1007.10 lakh) .
 
 5 During the year 2009-10 company has decided to scrap Ammonia & Urea
 plants at Cochin Division. These plants have been restated at estimated
 realisable value of Rs. 3245.03 lakh (Previous year Rs. 2740.79 lakh )
 under Retired Plant and Machinery. Similarly the value of spares on
 these plants have also been restated at realisable value of Rs. 104.97
 lakh ( Previous year Rs. 88.66 lakh ) as against the orginal cost of
 Rs. 453.50 lakh (Previous year Rs. 453.50 lakh).
 
 6 During the year the Government of India has decided to buyback the
 remaining Fertiliser Companies Government of India special bonds 
 (Fertiliser bonds- issued by it in an earlier year in lieu of subsidy
 dues ) in two equal installments during 2010-11 and 2011-12 through
 Reserve Bank of India and also decided to share at least 50% of the
 loss on such sale of Fertiliser bonds. Accordingly the company has sold
 50% of the Fertiliser bonds of each coupon rates held (Aggregate face
 value of Rs.13288.00 lakh) on 31st March 2011 and accounted for a loss
 of Rs. 846.30 lakh after recognising 50% compensation towards loss
 receivable from the Government of India. In respect of unsold bonds of
 face value of Rs. 13288.00 lakh the company has valued at fair value of
 Rs. 12285.91 lakh ,being the sale value realised on sale of said bonds
 on 26th July 2011 plus Rs. 1002.08 lakh being 50% compensation of the
 loss as per Government notification. The company has accounted for the
 loss of Rs.1002.09 lakh on this account.
 
 7 During the year the Company received certificates worth for Rs.
 749.99 lakh(Previous year Rs. 402.84 lakh) under Duty Entitlement
 Passbook Scheme (DEPB), on export of Caprolactam, to be used for duty
 free import of Rawmaterials,Stores and Spares etc.  In respect of DEPB
 license received, Customs Duty entitlement amount is accounted under 
 Balance with Customs , Port Trust etc.-in Loans and Advances  and
 credited to  Other Income . The Customs Duty due on imports during
 the year has been adjusted against the DEPB value and accounted with
 cost of respective material. The DEPB entitlement unutilized as on
 31.03.2011 is Rs.749.99 lakh(Previous year Rs. 399.92 lakh).
 
 8 (i) During the year 2008-09 company had paid Rs. 557.50 lakh towards
 instalments due on loans received from the Government of India .However
 the Government of India had adjusted this amount against interest due.
 Taking cognizance of the Government decision , the company has also
 adjusted the same during the year towards interest.  Consequently the
 additional interest on the principal amount Rs. 184.33 lakh has been
 charged to Profit and Loss account during the year.
 
 (ii) During the year company has provided Rs. 1303.95 lakh as penal
 interest on loans received from the Government of India. Of this Rs.
 601.02 lakh has been provided as current year interest and Rs. 702.93
 lakh has been provided as prior year adjustments.
 
 9 (a) Loans and Advances unsecured considered good includes Rs. 70.15
 lakh being amount paid against demands disputed pending appeals
 (Previous Year Rs. 72.98 lakh).
 
 (b) Provision has been made under ''Other liabilities'' with respect to
 Rs.5.12 lakh , being the amount deposited in court as per court order
 in OP 497/92 (Paul Mathew & Sons Vs FACT).
 
 10 a) The contract for the barge transportation of Ammonia awarded to a
 private company has been cancelled void ab initio during 2004-05 by the
 Company. The Contractor''s claim for shortfall charges (for the period
 01.04.2003 to 22.04.2008) and damages for Rs. 177713.07 lakh (Previous
 year Rs. 177324.72 lakh )which is pending before the Arbitrator has not
 been provided in the accounts and is included under Contingent
 liabilities based on the assessment of the management.  b) Interest of
 Rs. 597.42 lakh for 2010-11 receivable from the contractor on the
 interest bearing mobilisation advance still retained by the party, has
 been considered in the accounts (Previous year Rs. 497.40 lakh).
 
 11 Sundry debtors shown as Considered good and Unsecured include Rs.
 Nil covered by Bank Guarantees (Previous Year Rs. 0.11 lakh)
 
 12 Cash and Bank balances include Rs. 147.63 lakh (Previous Year Rs.
 147.64 lakh) being the balance of amount received from clients for
 execution of jobs on Total Responsibility basis lying in a specified
 account to meet the matching liabilities under Current Liabilities.
 
 g) Income under services for own units reckoned by the Engineering and
 Consultancy Division (FEDO) and the Fabrication Division (FEW) is
 accounted by respective units under revenue expenditure Rs. 558.34 lakh
 (Previous year Rs. 221.37 lakh ), and capital Rs. 451.59 lakh (Previous
 year Rs. 203.09 lakh ).
 
 h) Excise duty on own division jobs is ascertained based on Cost
 Accounting Standard 4.
 
 13 a) The Company as on date is not liable to provide for the arrears
 of salaries and wages (net of interim relief paid) for the period
 01.01.1997 to 30.06.2001 and perquisites and other allowances for the
 period 20.10.2000 to 30.06.2001, in respect of its managerial and
 unionised employees, in view of the conditions in the directives of the
 Government of India while implementing the wage revision. Accordingly
 no provision has been made in the accounts.
 
 The whole time Directors have been allowed the use of company car and
 for private journey upto a ceiling of 9000 kms. per year, on payment as
 prescribed by the Government.
 
 Gratuity payable to the Directors has not been disclosed as the
 contribution payable has been provided in the accounts and separate
 figures are not ascertainable.
 
 14 a.  Sundry creditors include Rs. 4.20 lakh payable to Small Scale
 Industrial Undertakings to the extent such parties have been identified
 from the available documents/ information (Previous year Rs. 1.55
 lakh). Dues owed by the Company to Small Scale Industrial Undertakings
 exceeding Rs. 1 lakh which is outstanding for more than 30 days is Rs.
 Nil (Previous year-Nil).
 
 b.  The company has not received information from vendors regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act 2006 and hence the disclosure relating to unpaid as at the year end
 together with interest paid/payable has not been given.
 
 15 The Company has deferred tax asset of Rs. 85658 lakh (Previous year
 Rs. 91598 lakh) as on 31.03.2011 because of unabsorbed depreciation and
 accumulated losses.  The deferred tax liability as on 31.03.11 is Rs.
 23949 lakh (Previous year Rs. 25782 lakh).  Since there is net deferred
 tax asset as on 31.03.2011, as matter of prudence the deferred tax
 asset is not considered in the Accounts. The net impact (favourable) in
 tax on account of this comes to Rs. 20500 lakh(Previous year Rs. 22371
 lakh).
 
 16 The Company has a system of obtaining confirmation of balances from
 third parties. Some of the parties have confirmed the balances.
 
 17 Company continues to fall under section 23 of Sick Industrial
 Companies (Special Provisions) Act, 1985. A report under section 23 of
 SICA was made in February 2004 to the Board for Industrial and
 Financial Reconstruction.
 
 Defined benefit plan
 
 Gratuity fund is managed under Group Gratuity (Cash Accumulation)
 policy by M/s Life Insurance Corporation of India.  The present value
 of obligation is determined on the basis of acturial valuation using
 projected unit credit method.  The present value of obligations for
 leave encashment is recognised in the same manner.
 
 18 RELATED PARTY DISCLOSURES (ACCOUNTING STANDARD 18)
 
 List of related Parties
 
 Joint Ventures
 
 FACT-RCF Building Products Ltd.
 
 Key Management Personnel
 
 Sri A Asokan, Chairman and Managing Director (Upto 30.06.2010).
 
 Sri K.Mathevan Pillai, Chairman and Managing Director (From 01.07.2010
 to 31.08.2010).
 
 Sri V.G.Sankaranarayanan, Chairman and Managing Director (From
 01.09.2010 to 28.02.2011).
 
 Sri Sham Lal Goyal, IAS , Chairman and Managing Director (From
 01.03.2011 onwards).
 
 Sri K.Mathevan Pillai, Director (Finance), (Upto 31.08.2010).
 
 Sri P.Muthusamy, Director (Finance) ,(From 18.03.2011 onwards).
 
 Sri V.G.Sankaranarayanan, Director (Technical).
 
 Transactions with related parties:
 
 Remuneration to key management personnel : Rs.61.84 lakh (Previous
 yearRs.40.92 lakh )
 
 Share application money paid to Joint Venture during the year : Rs. 50
 lakh (Previous year Rs. Nil)
 
 Guarantees given to Joint Venture during the year: Rs. Nil (Previous
 year Rs. Nil)
 
 Guarantees given to Joint Venture as on 31.03.2011: Rs. 1750
 lakh(Previous year Rs. 1750 lakh)
 
 Expenditure incurred on employees deputed to Joint Venture:Rs.82.97
 lakh (Rs.47.00 lakh)
 
 Receivables as on 31st March :Rs. 146.37 lakh (Previous year Rs.62.68
 lakh)
 
 Payables as on 31st March: Rs. Nil (Previous yearRs. Nil)
 
 19 EARNINGS PER SHARE (ACCOUNTING STANDARD - 20)
 
 i) Earnings Rs. 4932.67 Lakh (Loss) [ Previous yearRs. 10383.51 lakh
 (loss) ]
 
 ii) Number of Shares -Issued, Subscribed and Paid up -647071974
 (Previous year 647071974) 
 
 iii) Earning Per Share Rs.-0.76 ( Previous yearRs.-1.60 )
 
 (Basic and Diluted)
 
 20 FINANCIAL REPORTING ON INTEREST IN JOINT VENTURES (ACCOUNTING
 STANDARD 27) FACT-RCF Building Products Ltd.
 
 In the year 2008-09 , a jointventure with Rashtriya Chemicals and
 Fertilisers Ltd.(RCF) for manufacture of Rapid Building materials from
 Gypsum has been formed. The company has invested Rs. 1500 lakh
 (Previous year Rs. 1500 lakh ) as its share in the Joint venture. Out
 of an additional share of Rs. 269 lakh (Previous year Nil ) , Rs. 50
 lakh (Previous year Nil ) has been paid as share application money
 during the year and payment towards the remaining Rs. 219 lakh
 (Previous year Nil ) is pending. Shares for Rs. 50 lakh (Previous year
 Nil ) paid is pending allotment. Other details are:- Name : FACT-RCF
 Building products Ltd.  Country of incorporation : India.  Ownership
 interest : 50% (31.03.11).
 
 21 Figures for the previous year have been regrouped and recast
 wherever necessary to conform with the current year classification.