1. CONTINGENT LIABILITIES
 
                                                            (Rs. in crore)
 
 Particulars                                   As at               As at
                                     31st March,2011    31st March, 2010
 
 i) Claims against the Company not 
    acknowledged as debts
 
 (a) Pending Appellate/Judicial 
    decisions:
 
 - Income Tax                             201.31               123.33
 
 - Purchase Tax                            59.23                59.23
 
 - Excise& Customs Duty                     7.37                 2.29
 
 - Land Compensation/Development claims    13.69                13.33
 
 - Arbitration and civil cases             29.23                25.05
 
 (b) Other claims                           1.18                 1.17
 
 (c) Claims in respect of legal cases 
 filed against the company for labour and 
 other matters, extent whereof is not 
 ascertainable. 
 
                             TOTAL          312.01             224.40
 
 ii) Estimated amount of contracts remaining
  to be executed                            3165.86           3515.56
 on capital accounts and not provided for 
 (net of advances).The amount as at 31 * 
 March 2011 includes Project contracts
 relating to changeover of feedstock from 
 Fuel oil to natural gas at Nangal, Panipat 
 and Bathinda unit (Rs.2949.41 crore)
 and energy saving & capacity enhancement 
 at Vijaipur I & II (Rs.192.17 crore).  
 
 iii) Unutilized amount of Letter of 
 Credit.                                     179.03              8.33
 
 2.Capital work-in-progress includes amount of Rs.485.68 crore
 incurred upto 31st March, 2011 relating to feedstock | conversion
 projects from fuel oil to natural gas at Panipat, Nangal and Bathinda
 units. In terms of Government J policy notified on 6th March, 2009, the
 Company is entitled to capital subsidy after successful commissioning
 of the projects over a period of 5 years, which shall be appropriately
 accounted for in terms of the policy.
 
 3.  An advance of Rs.130.69 crore (US$ 37.62 million) was given to a
 foreign supplier M/s. Karsan during the year 1995-96 against import of
 Urea, the supplies of which were not received and subsequently the
 contract was terminated. Pending litigation, revenue reserves have been
 reduced to the extent of this advance during the year 1996-97. The
 outstanding advance (net of recovery) of Rs.129.64 crore is shown in the
 Accounts under Loans and Advances Recoverable with corresponding
 adjustment in revenue reserve. Adjustment, if any, shall be made on
 settlement of the litigation.
 
 Further, fixed deposit of Rs.1.32 crore (US$ 380,000) is maintained with
 a scheduled bank, as case property, in terms of the order dated
 16.11.2000 of the Hon''ble Delhi High Court and shown in Schedule 1.11
 Loans and Advances. As the matter is subjudice the exchange variation
 and interest accrued thereon is not being accounted for in the books.
 
 4.  Based on the information received by the Company from the
 suppliers, regarding their coverage under the Micro, Small and Medium
 Enterprises Development Act, 2006, the disclosure as required under the
 said Act is as under:
 
 5.  Subsidy on Urea from Government of India includes Rs.23.28 crore net
 debit (Previous yearRs.42.05 crore net credit) for the earlieryears as
 notified during the year.
 
 6.  Debit/Credit balances of some of the parties are in the process of
 confirmation/ reconciliation.
 
 7.1.0 Other Employee Benefit Schemes:
 
 Provision of Rs.3.07 crore (Previous year Rs.1.33 crore) towards Employees''
 Family Economic Rehabilitation Scheme and Social Security Benefits
 scheme has been made on the basis of actuarial valuation and charged to
 the Profit & Loss account. A net liability of Rs.11.65 crore has been
 recognized in the Balance Sheet as at 31 * March 2011 on account of
 these schemes.
 
 7.1.1 Provident Fund: 12% of Basic Pay plus Dearness allowance
 contributed to the Provident Trust of the Company. The Company does not
 anticipate any further obligation in the near foreseeable future having
 regard to the amount of the fund and return on investment as confirmed
 by the actuary.
 
 7.2.1 Business Segments:
 
 Company''s primary business segments are ''Urea'' & ''Other Products''
 (which include Industrial Products and Bio Fertilizers, traded goods
 which have got similar risk and return profiles) and are reportable
 segments under Accounting Standard-17 on ''Segment Reporting'' issued by
 the Institute of Chartered Accountants of India.
 
 7.2.2 Geographical Segment:
 
 The operations of the company are conducted within India and there is
 no separate reportable geographical segment.
 
 7.2.3 The disclosure of segment-wise information is given at
 Annexure-I.
 
 C) Transactions with Related parties:
 
 i) There is no transaction with related party at A) above except
 investment of Rs.0.03 crore towards its paid-up capital during the year
 (in respect of total investment of Rs.0.18 crore as on 31 * March, 2011
 full provision has been made in the Accounts).
 
 ii) Remuneration to Key Management Personnel at B) above is Rs.0.77 crore
 (Previous year Rs.0.82 crore) which does not include remuneration to Key
 Management Personnel at (i) and (ii) above who have been given
 additional charge of the Company by Gol.
 
 7.4 AS-19: Leases- Assets taken on Operating lease:
 
 The Company''s significant leasing arrangements are in respect of
 operating leases of premises for offices, godowns, residential use of
 employees and vehicles. These leasing arrangements are usually
 renewable on mutually agreed terms but are not non-cancellable.
 
 Schedule 2.5 - Employees remuneration and benefits include Rs.0.26 crore
 (Previous year Rs.0.61 crore) towards lease payments, net of recoveries,
 in respect of premises for residential use of employees. Lease payments
 in respect of premises for offices, godowns and vehicles, Rs.3.62 crore
 (Previous yearRs.3.88 crore) are shown in Schedule 2.8 - Other expenses.
 
 8.5.2 Provision for taxation has been made keeping in view the
 provisions of the law and various judicial pronouncements.
 
 8.6 AS-27: Financial Reporting of Interests in Joint Ventures-
 
 8.6.1 The disclosure of Company''s interest in Joint Venture entity in
 terms of Accounting Standard-27 issued by the Institute of Chartered
 Accountants of India is as under: -
 
 i) Name of the Joint Venture entity: ''UrvarakVidesh Limited''
 
 ii) Co-Joint Venture companies: Krishak Bharti Co-operative Ltd. and
 Rashtriya Chemicals Ltd. as equal I partners.
 
 Hi) Company has an investment of Rs.0.18 crore towards paid up equity
 capital representing one third share.
 
 8.7 AS-28: Impairment of Assets-
 
 In accordance with Accounting Standard (AS)-28, the carrying amount of
 fixed assets have been reviewed at year-end for indication of
 impairment loss, if any, by considering assets of entire one plant as
 Cash Generating Unit. As there is no indication of impairment, no loss
 has been recognized during the year.
 
 9 As per requirements of the listing agreements with the stock
 exchanges, the requisite details of loans and
 
 advances in the nature of loans given by the Company are as under:
 
 i) There are no loans and advances in the nature of loans to any
 subsidiary.
 
 ii) No loans have been given (other than loans to employees), wherein
 there is no repayment schedule or repayment is beyond seven years; and
 
 iii) There are no loans and advances in the nature of loans to
 firms/companies in which Directors are interested.
 
 9 Figures in brackets pertain to previous year and have been
 re-arranged / regrouped / re-cast, wherever necessary.