1. CONTINGENT LIABILITIES NOT PROVIDED FOR:
 
 1.1 Claims against the Company not acknowledged as debts to the extent
 ascertainable (Interest can not be estimated reliably) aggregates to
 Rs..23.81 crore (Previous year Rs..26.56 crore) which include the
 following:
 
 a) Claims preferred by local Authorities amounting to Rs. 8.34 crore (net
 of payment made/liability provided of Rs..3.95 crore). The Capitalization
 of land at Kurul Township and factory at Thai Unit has been made
 subject to Arbitration awards/Court decisions in this behalf.
 
 b) SCADA charges claimed by M/s GAIL(I)Ltd.  Rs.. 1.47 crore & water
 charges claimed by Municipal Corporation of Greater Mumbai. Rs..0.21
 crore.
 
 c) Claims before arbitrators/courts, are Rs.. 13.79 crore (previous
 year Rs.. 16.64 crore).
 
 1.2 Corporate Guarantee executed by the Company on behalf of its Joint
 Venture Company, FACT-RCF Building Products Ltd aggregates to Rs.. 17.50
 crore(Previous year Rs.. 17.50 crore).
 
 1.3 Show cause notices issued by Excise Authorities aggregating to
 Rs..4.09 crore (Previous year Rs..3.98 crore), disputed by the company.
 
 1.4 Demand raised by Excise Authorities (other than as mentioned in
 Para 26.3) and other authorities aggregating to Rs..20.90 crore (Previous
 yearRs..20.35 crore), disputed by the company.
 
 1.5 a) Demands raised by Income Tax Authorities, disputed by the
 company aggregating to Rs..316.85 crore (Previous year Rs..5.61 crore),
 against which the amount of Rs..4.05 crore has been deposited with Tax
 authorities.
 
 b) Demands raised by Sales Tax Authority, disputed by the company
 aggregating to Rs..3.57 crore (previous year Rs..3.5 7 crore)
 
 c) Demands raised by Service Tax Authority, disputed by the company
 aggregating to Rs..0.15 crore (previous year Rs..nil crore)
 
 d) Demand raised by Custom Authorities (other than as mentioned in Para
 26.9) disputed by the company aggregating to Rs..80.77 crore.
 
 1.6 The amount of claims in respect of legal cases filed against the
 Company for lab our matters and not acknowledged as debts is not
 ascertainable.
 
 1.7 In case of use of Naphtha purchased by the company at confessional
 rate of excise duty for the purposes other than mentioned in the 
 exemption notification for the period from November 96 to Feb.2005, the Commissioner of Excise has passed an
order for payment of excise duty of Rs..9.66 crore and penalty of Rs..9.66 crore plus interest at appropriate
rate. The Company filed an appeal in CESTAT. CESTAT passed order No.A/270- 271/12/EB/C-ll Dated 27.03.2012
and confirmed the Demand of Rs..9.66 crore & penalty of Rs..4.67 crore. The company is in the process of
filing an appeal against this order with appropriate adjudicating authority.
 
 For the period from March 2005 to Oct. 2005, show cause notice is
 served for Rs.. 1.77 crore for the same reason. Commissioner of excise
 passed an order for payment of excise duty of Rs.. 1.77 crore & penalty of
 Rs.1.77 crore plus interest at appropriate rate, The Company has filed an
 appeal in CESTAT & stay has been granted
 
 In case of Naphtha purchased by the Company at confessionals rate of
 excise duty & used for the purpose other than mentioned in the
 exemption notification for the period July 2007 to March 2008 the
 Commissioner of Excise (Adj.) has issued show cause notice demanding
 payment of excise duty of Rs..6.11 crore (P.Y.Rs..6.11 crore).  Company
 replied to the show cause and a personal hearing was held on
 14-10-2010.Order is still awaited.
 
 For the period April 2008 to August 2009 show cause notice is served
 for Rs.. 11.77 crore (PY.Rs.. 11.77 crore) for the same reason. Company
 replied to the show cause and a personal hearing was held on
 14-10-2010.Order is still awaited.
 
 1.8 Demand of Rs..33.48 crore raised by Municipal Corporation of Greater
 Mumbai (BMC) towards additional sewerage charges levied from 5-4-1987
 are disputed by the Company in a Writ Petition filed in Bombay High
 Court. The Honorable High Court vide its interim Order dated 10-11-92
 has granted stay on recovery of the demand for the period up to the
 date of the Order and directed the Company to pay sewerage charges from
 the date of the order which is being paid by the Company. The matter
 has been disposed off by the High Court, and is now resting in Supreme
 Court, with stay granted to continue. As a part of an agreement entered
 into with BMC for obtaining raw sewerage, the Company has paid an
 interest free deposit of Rs..16 crore to BMC(included in Schedule K)
 representing approximately 50% of the disputed demand which would be
 adjustable
 
 against the disputed demand in case the Court rules in favor of BMC. No
 provision is considered necessary for the disputed demand ofRs..33.48
 crore as the claim of BMC is not tenable.
 
 1.9 The Company had entered into a lump sum turn key contract with M/s
 Uhde India Ltd (UDL) for revamp of its Old Nitric Acid plant at Trombay
 Unit During 2004-05, Commissioner of Customs (Imports) Mumbai had
 allowed clearance of the Air Compressor package consignment under
 provisional assessment after payment of applicable custom duties,
 furnishing of Bank guarantees towards demand and a revenue deposit of
 Rs..5.75 crore.
 
 Thereafter Commissioner of Customs passed an Order for payment of
 Custom Duty and penalty aggregating to Rs..25.62 crore against the above
 matter. Company has paid Rs..9.27 crore against provisional assessment
 including Countervailing Duty (CVD) & Cenvat credit amounting to Rs..4.49
 crore has been availed on the CVD paid.
 
 The Order has been challenged before CESTAT / High Court and by an
 Order dated 20th June 2007 , Bombay High Court stayed the order passed
 by the Commissioner of Customs and also against invoking the bank
 guarantees. The Company has renewed the Bank guarantees. Bombay High
 Court has now ordered CESTAT to hear the Appeal filed by RCF and the
 Appeal before bench of CESTAT is expected to be heard. Company has been
 advised by their solicitors and advocates that the demand is not
 sustainable and no provision is considered necessary.
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for aggregates to Rs..96.70 crore (Previous year
 Rs..294.16 crore) net of advances.
 
 The Company has acquired entire wagons (416 wagons) originally under
 lease from SBI Leasing Group. Lease rent paid during the year Rs.. Nil.
 (previous year Rs.0.04 crore) The future minimum lease payments in
 respect of non- cancellable operating lease as at the balance sheet
 date are Further, under the Own Your Wagons Scheme” of Indian
 Railways, these wagons have been sub-leased to Indian Railways. The
 estimated future revenue on this account is Rs..5.65 crore (Previous year
 Rs.6.35 crore).Period wise classification of which is as below.
 
 2.  Formalities relating to transfer of certain immovable and other
 properties from Fertilizers Corporation of India Limited to the Company
 on reorganization of the former in 1978 are not yet completed. Out
 ofproperty cards for a total area of3095022 sq. mts, property cards for
 465340 sq. mts (P.Y.1659352) are yet to be transferred in the name of
 the Company.
 
 3.  The capitalization of Freehold land at Thai Unit includes land at
 Kihim having carrying Cost of Rs..0.02 crore, pending execution of
 documents and transfer of title deeds in the name of Company, due to
 dispute.
 
 4.  Some of the balances of Trade Receivable, Trade Payable, Current
 Liability and Loans and advances are subject to confirmation,
 reconciliation and consequential adjustments if any. In the opinion of
 the management, such adjustments would not be material.
 
 5.  Inventory includes stores and spares costing Rs..5.37 crore
 (previous year Rs..9.92 crore) declared as surplus. The amount includes
 stores/spares valued at Rs..2.76 crore (Previous year Rs..8.44 crore)
 identified as disposable surplus and which on disposal may not fetch
 full book value and accordingly, provision of Rs..2.60 crore (previous
 year Rs..7.99 crore) has been made on account of estimated loss on
 disposal thereof.
 
 6.  The Company is eligible to receive subsidy from Fertilizer
 Industry Co-Ordination Committee (FICC) / Department of Fertilizers
 (DOF) on Urea, Phosphatic & Potassic (P&K) Fertilizers at the rates
 notified from time to time.
 
 For the rates yet to be notified, due to escalations/de- escalations in
 the cost of inputs and other costs, subsidy has been accounted on
 estimated basis.
 
 Dues to Micro and small enterprises have been determined to the extent
 such parties have been identified on the basis of information given by
 such parties/available with the company. This has been relied upon by
 the auditors.
 
 7.  Company has recognized its factory at Trombay, factory at Thai and
 Trading, as geographical segments (primary segments) and its activities
 of manufacture and sale of fertilizers, and manufacture and sale of
 industrial products as business segments (secondary segments) in
 accordance with Accounting Standard 17 on Segment reporting prescribed
 under the Companies (Accounting Standard) Rules,2006. The segment wise
 revenue, expenses and capital employed are as follows:
 
 8.  Information as per Accounting Standard (AS-18) on Related Party
 Disclosures is given below:-
 
 Names of Related Parties and Description of relationships (Excluding
 with State Controlled Entities) Company is under the administrative
 control of Ministry of Chemicals & Fertilizers, Government of India and
 is within the meaning of state controlled enterprise of para 9 of
 Accounting Standard-18.
 
 1) Relationship SUBSIDIARY:-
 
 A) Rajasthan Rashtriya Chemicals & Fertilizers Ltd.  JOINT VENTURES:-
 
 A) FACT-RCF Building Products Ltd. (FRBL)
 
 B) Urvarak Videsh Ltd. (UVL)
 
 C) RCF-HM Construction Solutions Pvt. Ltd. (RCF-HM)
 
 2) Key Management Personnel Whole time Directors:-
 
 (i) ShrLR.G.Rajan, Chairman & Managing Director
 
 (ii) Shri.Gautam Sen Director (Finance)
 
 (iii) Shri. Manoj Priya, Director (Technical) up to 30Ih September,2011
 
 The above amount includes salaries & allowance, Leave encashment, &
 contribution to Provident fund and exclude contributions to the
 Gratuity Fund since the same are on actuarial valuation for the group
 of employees and medical expenses as they are covered under Group
 Medic aim Policy taken by the company for all the employees and their
 eligible dependents.
 
 The company has made a full provision for diminution in value of
 investment including amount paid as advance against equity pending
 allotment, in respect of its subsidiary M/s. Rajasthan Rashtriya
 Chemicals & Fertilizers Ltd. and Joint Venture Company M/s. RCF-HM
 Construction Solutions Pvt. Ltd., amounting to Rs.0.49 crore and Rs.0.10
 crore.
 
 9.  As per requirements of Accounting Standard -28 Company has carried
 out impairment testing of its Cash Generating Units/Fixed Assets at
 the year end. Such a test of impairment is carried out considering an
 estimated useful life of 10 Years for arriving at the value in use.
 Accordingly, a provision for impairment has been made towards the
 Rapidwall plant at Trombay unit since the expected value in use as
 arrived at, is lower than its carrying amount. A provision of Rs.. 13.80
 crore net of deferred tax asset of Rs.6.63 crore has been made towards
 impairment. 
 
 Figures in brackets are in respect of previous year
 
 (*) Disputes, Claims and Others represent estimates made mainly for
 probable claims arising out of litigations / disputes pending with
 authorities /Trade Payable. Deferred Tax Benefit ofRs..0.17 crore
 (Previous year Rs..2.31 crore)has been recognized on above. The timing
 and probability of outflow with regard to these matters depends on the
 ultimate settlement /conclusions with relevant authorities.
 
 * These balances are not available for use by the Company as they
 represent corresponding unpaid dividend liability.
 
 10. In compliance with Accounting Standard 27 on Financial Reporting
 of Interests in Joint Ventures”. The required information is as
 under:-
 
 A) FACT-RCF BUILDING PRODUCTS LTD.-A Joint venture Company with
 Fertilizers & Chemicals Travancore Ltd. (FACT) for manufacture of rapid
 building materials from Gypsum at Kochi.
 
 B) URVARAK VIDESH LTD:- A joint venture with National Fertilizers Ltd.
 and KRIBHCO for revival of closed Fertilizer Units of FCI/HFC group of
 companies has been formed.
 
 C) RCF-HM CONSTRUCTION SOLUTIONS PVT.  LTD.:-A Joint venture with First
 Future Properties Pvt.  Ltd. (a consortium of M/s. Mahimtura
 Consultants Pvt.  Ltd. and M/s. Hiranandani Constructions Ltd.) for
 marketing of rapid wall manufactured by RCF and its nominees.
 
 The Company''s share in assets, liabilities ,income ,expenditure,
 contingent liabilities and capital commitments compiled on the basis of
 audited/un-audited financials received from these joint ventures are as
 follows:-
 
 The company has made a full provision for diminution in value of
 investment in respect of it subsidiary Rajasthan Rashtriya Chemicals &
 Fertilizers Ltd. & Joint Venture Company.RCF-HM Construction Solutions
 Pvt. Ltd as under.
 
 11.  Consequent upon communication received from Government of India
 for the buyback of Fertilizer bonds, the company has disposed off the
 balance 50% of the value of bonds amounting to Rs..348.72 crore during
 the year. An additional loss ofRs..8.17 crore on such disposal during the
 year has been recognized. During the year, Government of India has
 settled the compensation of loss on buy back of such bonds including
 bonds sold under the scheme in the previous year. An amount of Rs.. 19.20
 crore has been recognized as net income consequent to full and final
 settlement of loss on buyback during the year.
 
 12.  The position of (Net) Certified Emission Reductions (CER''s) or
 Carbon Credits allotted and held by the company is as under:-
 
 13.  During the year company has handed over possession of land
 measuring 47477 sq.mtrs adjacent to the company''s township at Chembur,
 Mumbai, to MMRDA (Mumbai Metropolitan Region Development Authority) (a
 statutory body under Government of Maharashtra) for the construction of
 public road. However formalities pertaining to transfer of ownership &
 consideration for exchange of land are yet to be completed. Pending
 which company has classified the same as assets held for disposal
 under Note No. 10 to financial statements.
 
 14.  Disclosure under Clause 32 of Listing Agreement
 
 Since the company has not given any loans and advances in the nature of
 loans to its subsidiary and the subsidiary has not acquired any shares
 of the company, no disclosures under clause 32 of the Listing Agreement
 are required.
 
 15.  Employee Benefits:-
 
 The required disclosure under the Revised Accounting Standard 15 is
 given below.
 
 General Description of defined Benefit Plan
 
 1) Provident Fund:-
 
 The Provident Fund contributions are made to a Trust administered by
 the Company. The interest rate payable to the members of the Trust
 shall not be lower than statutory rate of interest declared by the
 Central Government under the Employees Provident Funds and
 Miscellaneous Provisions Act, 1952. Shortfall if any shall be made good
 by the RCF Employees Provident Fund Trust out of the reserve created by
 the Trust, as per circular C.Ex.  /Misc./Comp./Audit/2009/43789 dated
 21s'' Oct 2010 issued by EPFO. During the current year, as at the
 Balance Sheet date, the income earned by the Trust and reserves are
 sufficient to cover interest payable to employees. During the year an
 amount of Rs.25.60 crore has been charged of to statement of Profit &
 loss towards contribution by the Company.
 
 The total plan liabilities under the RCF Ltd. Employees Provident Fund
 Trust as at 31st March 2012 as per the unaudited financial statement
 for the year then ended is f .637.97 crore (P.Y. Rs..584.43 crore) as
 against total plan assets ofRs..637.97Crore (P.Y.Rs..584.43 crore). The
 funds of the trust have been invested under various securities as
 prescribed under the rules of the trust.
 
 2) Gratuitv:-
 
 The Company operates gratuity plan wherein every employee is entitled
 to the benefit equivalent to fifteen days salary last drawn for each
 completed year of service depending upon the date of joining .The same
 is payable on death, separation from service, or retirement, whichever
 is earlier. The benefit vests after five years of continuous service.
 
 3) Leave Encashment:-
 
 The company has been accounting for provision on account of leave
 encashment on retirement based on actuarial valuation carried out as at
 the Balance date.
 
 The liability for the leave encashment on , retirement as ''at 31st March
 2012 isRs..153.37 crore (P.Y.Rs.. 141.02 crore)
 
 4) Post Retirement Medical Benefits:-
 
 Employees of the company upon retirement/separation under Voluntary
 Retirement Scheme are entitled to medical benefits as per the scheme in
 force.
 
 5) Long Term Service Award
 
 As a part of cordial relation and appreciation of long dedicated
 service. Company is honouring its employees with a memento on
 completion of 25 years of service.
 
 General Description of Defined Contribution Plan
 
 Contributory Superannuation Scheme: -
 
 Company has introduced during the year a pension scheme in accordance
 with Govt, of India guideline. The scheme is a defined contribution
 scheme. Employees are required to exercise their option to be a part of
 the scheme & make a contribution equivalent to the amount contributed
 by the company to the fund, upon becoming the member of the scheme.
 Under the scheme the employee shall be eligible for pension provided
 they have put in at least 15 years of service in the company &
 superannuate from the company which is as per Govt, of India guideline.
 During the year company has provided an amount of Rs.2.84 crore as
 contribution towards the said scheme.
 
 Experience adjustments on Plan Liabilities - Not available * Experience
 adjustments on Plan Assets -Not available *
 
 * The Management has relied on the overall actuarial
 
 valuation conducted by the actuary. However experience adjustments on
 Plan liabilities and assets are not readily available and hence not
 disclosed.
 
 Estimates of future salary increase considered in the actuarial
 valuation take into account inflation, seniority, promotion and other
 relevant factors such as demand and supply in the employment market.
 
 16.  Employee Benefits Expense includes Rs.. 11.91 crore (Previous Year
 Nil) being tax borne by the Company on deemed perquisite value of
 accommodation provided to employees for the period from 1.4.2007 to
 31.3.2012 which is allowed under Section 10(10CC) of Income Tax Act
 1961. The Company has been advised that bearing of tax liability of
 such nature does not contravene provisions of Section 200 of the Act.
 
 17.  Change in Accounting Policy
 
 Exchange differences: 
 
 Monetary assets and liabilities in foreign currency, which were out
 standing as at the year end were translated at the year end at the
 closing exchange rate and the resultant exchange differences were
 recognized in the statement of profit & loss up to 31st March,2011.
 Pursuant to paragraph 46A of AS 11: The Effects of Changes in Foreign
 Exchange Rates, inserted vide Notification No.GSR 914 (E) dated
 December 29, 2011 the company has, during the year, exercised the
 option of adding or deducting such exchange difference to the cost of
 asset in respect of long term foreign currency monetary items.
 
 As a result, exchange differences aggregating to Rs. 11.46 crore relating
 to the acquisition of depreciable capital asset have been adjusted with
 the cost of such asset and would be depreciated over the balance life
 of the asset.
 
 18.  Since implementation of SAP, creation of liability for expenses
 takes place in two stages and Income tax is deducted at the second
 stage. According to the legal opinion obtained by the Company and as
 per the practice followed by other companies using SAP the process of
 deduction and remittance of Tax at source is correctly followed.
 
 19.  Additional Information:
 
 Additional information in respect of goods manufactured, value of
 imports calculated on CIF basis, expenditure in foreign currency during
 the year on account of royalty, know-how etc., consumption of raw
 material, spare parts and components during the year, earnings in
 foreign exchange, etc. is as follows:
 
 20.  Previous year figures have been re-arranged and regrouped wherever
 necessary and/or practicable to make them comparable with those of the
 current year.