1. (i) Contingent liabilities not provided for :
 
 Claims against the Company not acknowledged as debts for :
 
 Sales Tax Matters pending in appeal (Disputed in nature) Commercial
 dispute with vendor
 
 Legal cases and disputed claims (Personnel matters etc.)
 
 The Contingent liabilities, if materialized, shall entirely be borne by
 the company, as there is no likely reimbursement from any other party.
 
 (ii) Estimated amount of contracts remaining to be executed on capital
 account (net of advances) and not provided for Rs.1.11 Crore (Previous
 year Rs.0.12 Crore).
 
 (iii) In terms of Scheme of Arrangement between the Company, the
 erstwhile Indo Gulf Corporation Limited (IGCL) and Hindalco Industries
 Limited (Hindalco) approved by the Hon'ble High Courts at Allahabad and
 Mumbai vide their orders dated 18th November, 2002 and 31st October,
 2002 respectively, the Company may be liable to pay to Hindalco a
 portion of the disputed demand of Income Tax pertaining to Fertiliser
 Business of erstwhile IGCL. As Corporate Income Tax is assessed at
 Company Level and several additions/deductions/allowances/disallowances
 can be computed only at the Company Level, the quantification of
 financial effect of such liability is not ascertainable and will be
 decided on case to case basis as and when issues under demand will be
 decided by the highest authority.
 
 2. Under the Jute Packaging Material (Compulsory use of Packing
 Commodities) Act, 1987, a specified percentage of fertilisers
 dispatched was required to be supplied in Jute Bags up to 31.08.2001.
 The Company made conscious efforts to use jute packaging material as
 required under the Act. However, due to non-availability of material as
 per the Company's product specifications as well as due to strong
 customer resistance to use of Jute Bags, the specific percentage could
 not be adhered to. The Company has received a show cause notice,
 against which a writ petition has been filed with the High Court, which
 is awaiting for hearing. At the request of Jute Commissioner various
 writ petitions, filed in different High Courts by other aggrieved
 parties, including the Company, are in the process of consolidation and
 is to be decided by one court. Company has been advised that the said
 levy is bad in law.
 
 3. a) Advances recoverable include loan to a director and an officer
 during the year NIL (Previous year NIL).  Maximum balance outstanding
 during the year also NIL (Previous year Rs.1.38 Crore).
 
 b) Advances recoverable include loan to employees of Rs.0.30 Crore
 (Previous year Rs.0.38 Crore) in the ordinary course of business and as
 per service rules of the Company. Maximum balance outstanding during
 the year Rs.0.42 Crore (Previous year Rs.0.52 Crore).
 
 4. The Company is one of the Promoter members of Aditya Birla
 Management Corporation Limited, a Company limited by guarantee, which
 has been formed to provide a common pool of facilities and resources to
 its members, with a view to optimize the benefits of specialisation and
 minimise cost for each member. The Company's share of expenses under
 the common pool has been accounted for under the appropriate heads.
 Proportionate expenses reimbursed for utilising the services have also
 been included in respective expenses head.
 
 5. Rs. 0.02 Cr. (Previous year Rs.0.01 Cr.) and Rs.0.09 Cr. (Previous
 year NIL) being net loss on account of exchange difference has been
 adjusted to the cost of fixed assets/capital work-in-progress and
 respective heads, of account in profit and loss account respectively.
 
 6. In the Previous Year an amount of Rs.47.02 Crore was included in
 Sales and Price Support under the then Retention Pricing Scheme of
 Government of India, which was applicable up to 31.03.2003.
 
 7. Miscellaneous expenses include donation of Rs.2.45 Crore (Previous
 year NIL) paid to General Electoral Trust Mumbai for contribution for
 political purposes as may be decided by the Trustee from time to time.
 
 8. Payment against supplies from small scale and ancillary undertakings
 are made in accordance with the agreed credit terms and to the extent
 ascertained from available information, there was no amount overdue as
 on 31st March, 2005.
 
 9. All amounts in Rupees have been rounded off to Crore with Lacs in
 decimal. Figures of Rs.50,000 or less has been shown at actual in
 brackets.
 
 10. As the company's business activity falls within a single primary
 business segment viz. `Fertiliser Business', the disclosure
 requirements of Accounting Standard (AS-17) Segment Reporting issued
 by the Institute of Chartered Accountants of India is not applicable.
 The Company's business is in domestic market and hence there are no
 reportable geographical segments.
 
 11. Previous year's figures are as audited by another firm of Chartered
 Accountants and have been regrouped wherever necessary to conform to
 this year's classification.