1.  Contingent liabilities not provided for:
 
 (a) Bills discounted with bank outstanding - Rs. Nil (Previous year Rs.
 Nil).
 
 (b) Letter of Credits outstanding - Rs.6418.76 Lacs (Previous year -
 Rs. 4207.16 Lacs) and Margin Money given there against Rs. 1345.90 Lacs
 (Previous Year - Rs. 797.03 Lacs).
 
 (c) Guarantees given by Company''s Banker on behalf of the Company
 -Rs.70.40 Lacs (Previous year Rs. 46.70 Lacs).
 
 (d) The Company has executed bonds in favour of Excise Department in
 connection with purchases of raw material without levy of excise -
 Rs.184.80 Lacs ( Previous year Rs. 182.00 Lacs).
 
 (e) The company purchased manufacturing facilities of fertilizers from
 Liberty Pesticides & Fertilizers Ltd (A subsidiary Company) on
 1.10.1997. Registration of transfer is pending as the company disputed
 that the registration of property in the name of company, is not liable
 for the payment of stamp duty under Rajasthan Stamp Law (Adaption) Act,
 1952 read with section 9 (1) (a) of Indian Stamp Act, 1899 and
 accordingly preferred writ before hon''ble High Court of Rajasthan.
 Likely amount of stamp duty, if any payable, will be Rs.26.85 Lacs
 (Previous year 26.85 Lacs).
 
 (f) Demands of Sales Tax Authorities not acknowledged by the Company
 and contested/appealed, Rs.13.02 Lacs (Previous Year Rs. 13.02 Lacs).
 Amount paid there against as the matter of prudence Rs.2.77 Lacs
 (Previous Year- Rs.2.77 Lacs).
 
 (g) Demand of Income Tax not acknowledged by the company and
 contested/appealed Rs. 03.50 Lacs (Previous year - Rs. 03.50 Lacs).
 Amount paid there against as the matter of prudence Rs. 03.50 Lacs
 (Previous year -Rs. 0.70 Lacs).
 
 (h) Demand of Differential Customs Duty on Import of Rock Phosphate not
 acknowledged by the company and contested/appealed Rs. 344.16 Lacs
 (Previous year - Rs. Nil).
 
 2.  Claims against the company not acknowledged as debts:-
 
 Claims on account of rebate, discount & freight - Rs.27.95 Lacs
 (Previous year- Rs. 27.95 Lacs).
 
 3.  Estimated capital commitments not provided for - Rs.600.00 Lacs
 (Previous year Rs. 250.00 Lacs).
 
 4.  Depreciation for the period has been calculated at the rates and in
 the manner specified in Schedule XIV to the Companies Act, 1956 vide
 notification No. GSR 756 (E) dated 16.12.93 of the Department of
 Company Affairs, Govt. of India. For the purpose of determining the
 appropriate depreciation rates, Plant and Machinery falling in the
 category of continuous process plants has been identified on the basis
 of technical opinion obtained by the company. Extra shift depreciation,
 wherever applicable is calculated on actual shift basis in respect of
 each plant/unit.
 
 5.  No provision has been made in respect of :
 
 - fall in the value of long term investment in shares of subsidiary
 company and others, since in the opinion of the management book value
 of the shares is sufficient to cover temporary fall in the value of
 shares. Further, to inform that investment made is in the nature of
 trade investment.
 
 - The Company has not received information from vendors regarding their
 status under the Micro, Small & Medium Enterprises Development Act,
 2006 and hence disclosure relating to amount unpaid at the year end
 together with interest paid/payable under the Act have not been given.
 
 6.  Additional information pursuant to the provisions of Paragraphs 3,
 4, 4 - A and 4 -C of Part II of the Schedule VI of the Companies Act,
 1956.
 
 7.  Interest and financial charges (net) is on bank and other accounts
 Rs.648.26 Lacs (previous year Rs.  391.04 Lacs) and on fixed loan
 Rs.48.50 Lacs (previous year Rs. 86.49 Lacs).
 
 8.  In the opinion of the Directors, Current Assets, Loans and Advances
 have the value at which they are stated in the Balance Sheet, if
 realized in the ordinary course of business. Further, Directors are of
 the opinion that all the liabilities have been duly reflected in the
 Balance Sheet and nothing is remained to be disclosed for. Sundry
 Debtors, Creditors and Advances are subject to reconciliation and
 confirmation.
 
 9.  In view of mandatory Accounting Standard (AS) -15 Accounting for
 Retirement Benefits in the Financial Statements of Employers is dealt
 as under:
 
 - Liability in respect of provident fund are provided for by monthly
 payments to pension and provident fund under the Employees'' Provident
 (and Miscellaneous Provisions) Act, 1952, which are charged against
 revenue.
 
 - Gratuity liabilities are determined as per the actuarial valuation done
 using the projected unit credit method.
 
 - Gratuity Scheme in respect of the employees of the company is
 administered through Life Insurance Corporation of India (LIC). Annual
 contribution as determined by the LIC are charged to the Profit & Loss
 Account. The additional liability, if any, arising out of the
 difference between the actuarial valuation as at the Balance Sheet date
 and the fund balance is accrued and provided for at the year end.
 
 - Employees are entitled to accumulate their privilege leave within
 specified limits and can claim encashment thereof while in service or
 on separation or on superannuation or otherwise. This is not treated as
 specific retirement benefit and the cost thereof is accounted for in
 the year in which the claims are received.
 
 10. Related party disclosure under Accounting Standard (AS) -18
 
 a) The list of the related parties as identified by the management are
 as under:
 
 i) Enterprises over which Key Management Personnel with relatives, is
 able to exercise significant influence:
 
 1.  Tungabhadra Fertilizers & Chemicals Co. Ltd.
 
 2.  Liberty Pesticides & Fertilizers Limited (A wholly owned
 subsidiary).
 
 3.  A.R. Exports.
 
 4.  Liberty Urvarak Limited.
 
 ii) Key Management personnel of the Company:
 
 Directors of the Company
 
 iii) Relative of Key Management personnel:
 
 1.  Smt. A.R. Dhanani    2. Smt. Suchitra Dhanani
 
 11.  Segment Reporting:
 
 That the Board of Directors, is of the opinion that the company is
 engaged in manufacture & sale of Fertilizers namely Single Super
 Phosphate, NPK Mixture Fertilizers & MGSO4 and accordingly dealing in
 same segment namely Chemical Fertilizers. Likewise, the manufacturing
 and marketing operations of the company are also confined only in the
 India. As such, no segment is formed and accordingly no segment
 reporting is done in terms of the requirement of Accounting Standard
 
 (AS-17) Segment Reporting issued by the Institute of Chartered
 Accountants of India for the year ended 31st March, 2011.
 
 12. Impairment of Assets :
 
 That the Board of Directors, is of the opinion that the discounted net
 future generation from the Assets in use & shown in the schedule of
 Fixed Assets, is more than the carrying amount of Fixed Assets in
 Balance Sheet, as such, no provision for Impairment of Assets is
 required to be made in terms of the requirement of Accounting Standard
 (AS-28) Impairment of Assets issued by the Institute of Chartered
 Accountants of India for the year ended 31st March''2011.
 
 13.  In the opinion of Board of Directors there exists adequate
 accounting & internal control system designed to prevent and detect
 fraud or errors and in the opinion of Board of Directors that any
 uncorrected misstatements resulting from either fraud or errors are in
 the managements opinion immaterial both individually & aggregate in the
 Financial statements.
 
 14.  Previous year figures have been regrouped and rearranged, wherever
 necessary, to confirm to this year''s classification.