(Rs. in Lacs)
 
                                               2010-11      2009-10
 
 1.   Estimated amount of contracts
 remaining to be executed on capital
 account and not provided   for (Net of
 Advances)                                 1,08,254.57  1,03,736.61
 
 2.   Contingent Liabilities not 
 provided for:
 (i)   Claims against the Company not
 acknowledged as debts (mainly on
 account of water charges)                    2,369.66     1,803.60
 
 (ii) Guarantees / Letters of 
 Credit given
 by Banks on behalf of the Company           24,494.90    29,665.92
 
 (iii) Claims in respect of employees''/
 contract labour matters                   Amount not ascertainable
 
 (iv) Income tax assessment orders
 contested                                    2,149.67     3,234.24
 
 3. As one of the promoters of Gujarat Chemical Port Terminal Company
 Ltd. (GCPTCL), the Company has given undertaking to ICICI Bank for not
 to transfer, assign, dispose off, pledge, charge, or create any lien or
 in any way encumber Company''s existing or future shareholding in the
 GCPTCL in favour of any person so long as money remains due by GCPTCL
 to ICICI Bank or till the project is duly completed, whichever is
 later.
 
 4.  Loans and Advances include interest bearing unsecured loan of Rs.
 160.00 Lacs (Previous year Rs. 160.00 Lacs) to Gujarat Chemical Port
 Terminal Company Ltd.
 
 5.  As per the provisions of The Micro, Small And Medium Enterprises
 Development Act, 2006, the principal amount payable to Micro, Small
 and Medium enterprises is Rs. 1,311.27 Lacs (Previous year Rs. 800.78
 Lacs). The payments to Micro, Small and Medium undertakings have been
 made within the prescribed time limit/ date agreed upon with supplier
 and hence no interest is payable for delayed payments. These amounts
 have been included in Sundry Creditors.
 
 This information has been determined to the extent such parties have
 been identified on the basis of information available with the Company.
 
 6 a) Finance Lease:
 
 The Company has given CNG Bu es to G jarat St te Road Transport
 Corporation (GS TC) on fi ance lea e for the period of three years
 which has been completed in the cu rent Fina cial Year 2010-11. As per
 the terms o Memoran um of U derstand g (MoU), after the completion of
 total ease payments, th leased ssets will be on the name of and under
 the ownership o GSRTC y paying Residual Value upto 1% of the total ost
 of th leased ssets by GSRTC to the Company.
 
 Necessary adjustment will be made in the Books of Accounts on
 completion of necessary formalities and receipt of the Residual Value
 of the leased assets from GSRTC by the Company.
 
 7. In view of confirmation of long term availability of LSHS now, it
 has been decided to initiate closure of the Wet gas Sulphuric Acid
 Project which was under implementation. Provision of Rs. 30 crore has
 been made in the Profit & Loss Account for the year 2009-10 towards the
 impact of the closure. Further necessary adjustments will be made in
 the Books of Accounts on finalization of the impact of the project
 closure.
 
 8. As per the Accounting Policy adopted, the Company had so far been
 accounting insurance claims on accrual basis. However, this accounting
 policy is reviewed and revised to cash basis from the current Financial
 Year 2010-11. Had there been no change in Accounting Policy, the Profit
 after Tax (PAT) for the current year and Reserves and Surplus as well
 as Loans and Advances as on 31-03-2011 would have been higher by Rs.
 347.27 lacs.
 
 9. Board of Directors at its meeting held on July 31, 2010 had, inter
 alia, approved- (a) The Transfer of V-SAT / ISP Gateway Business of
 GNFC to ING
 
 Satcom Ltd., an unlisted company through Scheme of Arrangement
 
 and De-merger against cash consideration of Rs. 6 crore.  (b) Draft
 Scheme of Arrangement and De-merger in respect of
 proposed Transfer of V-SAT / ISP Gateway Business of GNFC
 to ING Satcom Ltd., an unlisted company.  Subsequent to approval to the
 Scheme of Arrangement and De- merger by the Board of Directors, an
 application to the Bombay Stock Exchange Ltd. and the National Stock
 Exchange of India Ltd.  for their approval as required under the
 Listing Agreement was made and such approval from both the Stock
 Exchanges have been received. The Company is now in the process of
 filing an application before Hon''ble High Court of Gujarat for
 obtaining its directions for holding of meetings of its shareholders
 and creditors for their approval to the Scheme.
 
 Necessary adjustments will be made in the Books of Accounts on
 completion of all formalities in this regard and on obtaining & filing
 with the concerned Registrar of Companies the Order of Hon''ble High
 Court of Gujarat sanctioning the scheme of Arrangement and De-merger.
 
 10. Confirmations of certain parties and banks for amounts due to them/
 amounts due from them as per accounts of the Company are not received.
 Necessary adjustments, if any, will be made when the confirmations are
 received, reconciled and settled.
 
 11. Previous year''s figures have been regrouped wherever necessary to
 conform to the figures of the current year.
 
 12. Segment Information:
 
 Based on the guiding principles given in Accounting Standard on
 ''Segment Reporting'' (AS-17) as notified by Companies Accounting
 Standards Rules, 2008, the Company''s primary business segments are
 Fertilizers, Chemicals and Others (which includes mainly IT Divisions''
 activities) which have got their own respective risk and return
 profiles.