1.  Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standards by the Companies
 (Accounting Standard) Rules, 2006 and relevant provions of the
 Companies Act, 1956. The financial statements are prepared on
 historical cost convention on an accrual basis. The Accounting Policies
 have been consistently applied by the Company.
 
 2.  Use of Estimates
 
 The preparation of financial statements is in conformity with the
 generally accepted accounting principles (GAAP) requires estimates
 and assumptions to be made that affect the reportable amount of assets
 and liabilities on the date of financial statements and the reportable
 amount of revenue and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the year in
 which the results are known/materialised.
 
 3.  Revenue Recognition
 
 (a) Sale - The Company recognises sale of goods on transfer of
 significant risks and reward of ownership to the customers. Sales
 (Gross) are inclusive of excise duty, fertilizer subsidy, and net off
 trade discounts and sales return, wherever applicable.
 
 (b) Interest - Interest income is recognized on a time proportion basis
 taking into account the amount outstanding and rate applicable.
 
 (c) Subsidy - Fertilizer Subsidy, wherever applicable, is accounted for
 on actual sales and is net off of any subsequent non receipt reversal.
 
 (d) Dividend - Dividends are accounted for when the right to receive
 the dividend payment is established.
 
 4.  Excise Duty
 
 Excise duty payable on products is accounted for at the time of
 despatch of goods from the factories but is accrued for stocks held at
 the year end.
 
 5.  Employee Benefits
 
 (a) Short term employee benefits obligations are estimated and provided
 for.
 
 (b) Post employment benefits and other long term benefits: i.  Defined
 contribution plans:
 
 Companys contribution to provident fund, superannuation fund, employee
 state insurance and other funds are determined under the relevant
 schemes and/or statute and charged to revenue.  ii.  Defined benefits
 plans:
 
 Companys Liability towards gratuity and leave encashment is
 actuarially determined at each balance sheet date using the projected
 unit credit method.  Actuarial gains and losses are recognised in
 revenue. Gratuity and Leave encashment liabilities are funded and
 administered through Group Gratuity Scheme with Life Insurance
 Corporation of India.
 
 6.  Capital Subsidy
 
 Capital subsidy for fixed assets is recognised on receipt basis and is
 disclosed under Capital Reserve. Further, in accordance with the
 guidelines issued by 1CAI, proportionate amount to the extent of
 depreciation charged, is being transferred to the Profit and Loss
 Account.
 
 7.  Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 constructions of qualifying assets are capitalised as part of the cost
 of assets. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for intended use. Alt other borrowing costs
 are charged to revenue.
 
 8.  Fixed Assets and Depreciation/Amortisation.
 
 a.  All Fixed Assets are stated at cost less depreciation and
 impairment loss, wherever applicable. Cost comprises acquisition costs
 and any other attributing cost of bringing the assets to its working
 condition for its intended use but excluding taxes and duties there on,
 wherever applicable.
 
 b.  The leasehold land is amortised over the primary lease period
 excluding on perpetual lease.
 
 c.  Machinery Spares/ Standby equipments which are used only in
 connection with the fixed assets and whose use is expected to be
 irregular are capitalized.
 
 d.  Capital works-in-progress including capital advances is carried at
 cost.
 
 e.  Depreciation has been calculated on straight line method at the
 rates and manner specified under the Schedule XIV of the Companies Act,
 1956.
 
 f.  The Company has treated its Sulphuric Acid Plant, Oil Plant and
 Turbo Generator as a continuous process plant and the depreciation is
 charged accordingly.
 
 g.  Assets individually costing Rs.5000 or less are depreciated fully
 in the yearof purchase.
 
 9.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised wherever the carrying amount
 of an asset exceeds its estimated recoverable amount. In case of
 impairment, assets are written down to their recoverable amount
 
 Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses, recognized for
 the assets, no longer exists or have decreased.
 
 10.  Inventories
 
 Inventories are valued at the lower of cost and estimated realisable
 value. The cost of inventories is generally arrived at on the following
 basis
 
 Raw Material Quarterly weighted average method for Fertilizer Division
 and FIFO method for
 
 Agro Division.
 
 Packing material and Stores & Spares Monthly weighted average method.
 
 Finished goods and Work-in-progress Raw material cost and proportion of
 manufacturing overheads. Excise duty, if
 
 any, is included in the value of Finished goods Inventory.
 
 11.  Investments
 
 Long term investments are stated at cost less provision for diminution
 in value, other than temporary. Current investments are stated at the
 lower of cost and fair value on individual investment basis.
 
 12.  Foreign Currency Translations
 
 a.  Foreign Currency Transactions are recorded at the exchange rate
 prevailing on the date of transaction.
 
 b.  Monetary items denominated in foreign currency are translated at
 the exchange rate prevailing on the last day of the accounting year. In
 respect of items covered by forward contracts, the premium or discount
 arising at the inception of such a forward exchange contract is
 amortised as an expense or income over the life of contract. Any profit
 or loss arising on settlement / cancelation of such a forward exchange
 contract is recognized as an income or expense for the period.
 
 c.  Non-Monetary items, which are carried in terms of historical cost
 denominated in a foreign currency, are reported using exchange rate at
 the date of transaction.
 
 d.  Gain or loss arising out of translation/conversion and on
 settlement is taken credit for or charged to the Profit and Loss
 Account.
 
 13.  Taxation
 
 Income Tax
 
 The current tax is determined as the amount of tax payable in respect
 of the estimated taxable income for the year in accordance with the
 provisions of Income Tax Act, 1961.
 
 Deferred Tax
 
 Deferred tax charge or credit is recognized using prevailing enacted or
 substantially enacted tax rates. Where there is unabsorbed depreciation
 or carry forward losses, deferred tax assets are recognised only if
 there is virtual certainty of realisation of such assets.  Other
 deferred tax assets are recognised only to the extent there is
 reasonable certainty of realisation in future. Deferred tax
 assets/liabilities are reviewed at each Balance Sheet date based on
 developments during the year and available case laws, to reassess
 realisation/liabilities
 
 14.  Pre Project Expenditure
 
 The expenses on pre feasibility study reports, market survey reports,
 techno- economic feasibility reports etc. on new projects are allocated
 to the Fixed Assets on completion of the projects. Where the projects
 are proved in fructuous, they are charged to the revenue in the year in
 which the decision is taken to scrap the same.
 
 15.  Earning per share
 
 The Company reports basic and diluted earnings per equity share in
 accordance with Accounting Standard 20 - Earning per share.  Basic
 earning per equity share is computed by dividing net profit after tax
 by the weighted average number of equity shares outstanding during the
 year. The Company does not have any diluted equity share, hence Basic
 and Dilutive earning per share is same.
 
 16.  Provisions. Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 results and it is probable that there will be an outflow of resources.
 
 Contingent liabilities are disclosed, unless the possibility of an
 outflow of resource embodying the economic benefit is remote.
 contigent assets are neither recognized nor disclosed in the financial
 statements