1.  CONTINGENT LIABILITIES NOT PROVIDED FOR:
 
 1.1 Claims against the Company not acknowledged as debts to the extent
 ascertainable (Interest cannot be estimated reliably) aggregates to
 Rs. 26.56 crore (Previous Year Rs. 23.81 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. 0.11
 crore.
 
 c) Claims before arbitrators/courts, are Rs. 16.64 crore (Previous Year
 Rs. 17.44 crore).
 
 1.2 Guarantees issued by Bank in favour of Excise authorities, Customs
 authorities etc. aggregates to Rs. 170.57 crore (Previous Year
 Rs. 190.96 crore). This is secured by extension of charge over
 inventories and book debts.
 
 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 YearRs. 17.50 crore).
 
 Letter of credit issued by banks in favour of suppliers etc. aggregates
 to Rs. 90.02 crore (Previous Year Rs. 205.33-crore)
 
 1.3 Show cause notices issued by Excise Authorities aggregates to
 Rs. 3.98 crore (Previous YearRs. 0.79 crore).
 
 1.4 A) Demands raised by Income Tax Authorities, disputed by the
 company aggregating to Rs. 5.61 crore (Previous YearRs. 4.43 crore),
 against which the amount of Rs.4.46 crore has been deposited with Tax
 authorities.
 
 B) Demands raised by Excise (other than as mentioned in Para 1.6) and
 other authorities, disputed by the Company aggregating to Rs. 20.35
 crore (Previous Year Rs.  19.85 crore).
 
 C) Demands raised by Sales Tax Authority, disputed by the company
 aggregating to Rs. 3.57 crore (Previous Year Rs. 3.66 crore).
 
 1.5 The amount of claims in respect of legal cases filed against the
 Company for labour matters and not acknowledged as debts is not
 ascertainable.
 
 1.6 In case of Naphtha purchased by the Company at concessional rates
 of excise duty and used for the purpose other than mentioned in the
 exemption notification for the period from November 1996 to March 2001
 & March-2005 to October 2005, the Commissioner of Excise (Adj.) has
 passed an order for payment of excise duty of Rs. 6.44 crore (P.Y.Rs.
 6.44 crore) and penalty of Rs. 6.54 crore (P.Y.Rs. 6.54 crore) plus
 interest at appropriate rate. The Company has filed an appeal in
 CESTAT. For the period from April 2001 to February 2005, show cause
 notice is served for Rs. 4.99 crore (P.Y.Rs. 4.99 crore) for the same
 reason.  Commissioner of Excise passed an order for payment of excise
 duty of Rs. 4.99 crore (P.Y.Rs. 4.99 crore) and penalty of Rs. 4.99
 crore (P.Y.Rs.4.99 crore) plus interest at appropriate rate. Company
 has filed an appeal in CESTAT and stay has been granted. However, the
 company is yet to receive an order.
 
 In case of. Naphtha purchased by the Company at concessional 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 on this issue.
 
 For the period April 2008 to August 2009 show cause notice is served
 for Rs. 11.77 crore (P.Y.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 on this issue.
 
 1.7 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 Honourable 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 favour of BMC. No provision is considered necessary
 for the disputed demand of Rs. 33.48 crore as the claim of BMC is not
 tenable.
 
 1.8 The Company had entered into a lumpsum turnkey 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. Out of this Rs. 9.27 crore has been paid by the Company
 against provisional assessment of which Cenvat credit of Rs. 4.49 crore
 has been availed.
 
 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, which
 was earlier dismissed for want of permission from Committee on
 Disputes. Necessary action to bring the Appeal before appropriate bench
 of CESTAT is being taken by the Solicitors. Company has been.advised by
 their solicitors and advocates that the demand is not sustainable and
 no provision is considered necessary,
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for aggregates to Rs.  294.16 crore (Previous
 Year Rs.  55.19 crore) net of advances.
 
 3.  During the year, Company has purchased 166 wagons at an amount of
 Rs. 0.34 crore (Previous Year 250 wagons at Rs. 0.53 crore) from SBI
 Leasing Group which was originally held on lease by the company. During
 the year company incurred a lease rent of Rs. 0.04 crore.
 
 4.  Formalities relating to transfer of certain immovable and other
 properties from Fertilizer Corporation of India Limited to the Company
 on reorganization of the former in 1978 are not yet completed. Out of
 property cards for a total area of 3095022 sq. mts, property cards for
 1659352 sq. mts are yet to be transferred in the name of the Company.
 
 5.  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.
 
 6.  Some of the balances of Debtors, Creditors, 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.
 
 7.  Inventory includes stores and spares costing Rs. 9.92 crore
 (Previous Year Rs. 9,77 crore) declared as surplus. The amount includes
 stores/spares valued at Rs. 8.44 crore (Previous Year Rs. 8.09 crore)
 identified as disposable surplus and which on disposal may not fetch
 full book value and accordingly, provision of Rs. 7.99 crore (Previous
 Year Rs. 7.68 crore) has been made on account of estimated loss on
 disposal thereof.
 
 8.  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. Consequent to the implementation of
 Nutrient Based Subsidy for P & K fertilizers from 1/04/2010 subsidy
 rates for the same are fixed and thus no escalation or de-escalation in
 the cost of inputs etc. is considered.
 
 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.
 
 9.  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 enclosed in Annexure-I.
 
 10.  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.
 
 B) Urvarak Videsh Ltd.
 
 C) RCF-HM Construction Solutions Pvt. Ltd.
 
 2) Key Management Personnel
 
 Whole time Directors:-
 
 (i) Shri. R.G. Rajan, Chairman & Managing Director w.e.f 3rd Nov 2010.
 
 (ii) Shri. J. Kohareswaran, Chairman & Managing Director from 1 st July
 2010 to 31 st Oct 2010.  Director (Marketing) (From 1st April, 2010 to
 30th June, 2010).
 
 (iii) Shri. U.S. Jha Chairman & Managing Director upto 30th June 2010.
 
 (iv) Shri. Gautam Sen Director (Finance).
 
 (v) Shri. Manoj Priya, Director (Technical).
 
 3) Details relating to parties referred to in (2) above.
 
 Excluding 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 Mediclaim Policy taken by the company for
 all the employees and their eligible dependents.
 
 (i) Loans and advances receivable: Refer Schedule-K
 
 The following transactions were carried out with the related parties in
 the ordinary course of business:-
 
 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 respectively due to its intention of closure
 
 11. Chikton Plant at Thai impaired during the previous year continues
 to stand impaired at a provision of 95% of its carrying value. As at
 31st March 2011 there is no change in the condition of the Asset.
 (Amount of provision made during the year Rs. Nil, P.Y. Rs. 0.84 crore)
 
 12.  Disclosure as per Accounting Standard 29 on Provisions,
 Contingent Liabilities and Contingent Assets as on 31st March 2011.
 
 13. 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) URVARAKVIDESH LTD:- A joint venture with National Fertilizers Ltd.
 and KRIBHCO for revival of closed Fertilizers 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. Mahimfura Consultants Pvt. Ltd.  and M/s. Hiranandani
 Constructions Ltd.) for marketing of rapid wall manufactured by RCF and
 its nominees.
 
 Consequent upon communication received from Government of India for the
 buy back of Fertilizer bonds, the company has disposed off 50% of the
 value of bonds amounting to Rs.348.72 crore at a loss of Rs. 42.78
 crore. As per the buy back arrangement, Company is entitled to a
 compensation of at least 50% of the loss incurred on the transaction
 with Government of India. Conservatively company has recognized an
 amount of Rs. 21.39 crore being 50% of the loss incurred upon the sale
 of 1st tranche as compensation of sale of Fertilizer Bonds under
 Schedule IV Other Income of profit and loss account. The company is
 in the process of filing the claim with Government of India.
 
 14.  Freight and Handling Charges include payment of disputed dues for
 the period from November 2001 to February 2010 consequent to order
 passed by Bombay High Court (C.Y. Nil, P.Y.Rs.10.75 crore).
 
 15.  Under the project of Clean Development Mechanism (CDM) registered
 with UNFCCC Company has been allotted 152013 (Net) Certified Emission
 Reductions (CER''S) or Carbon Credits. Company is in the process of
 disposing off the same.  Pending disposal, the said carbon credits are
 valued (at cost) as inventory.
 
 16.  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.
 
 17.  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 21st 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 shortfall of
 interest payable to employees and thus no shortfall on account of the
 same is charged to Profit & Loss Account during the current year.
 
 2) Gratuity:-
 
 The Company operates gratuity plan wherein every employee are 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.
 
 4) Post Retirement Medical Benefits:-
 
 Employees of the company upon retirement/separation under VRS 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.
 
 The following table shows the impact of actuarial valuation as
 recognized in the financial statements in respect of Gratuity and Post
 retirement medical benefits.
 
 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.
 
 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
 materials, spares parts and components during the year, earnings in
 foreign exchange, etc. is as per Annexure-ll.
 
 19. Previous year figures have been re-arranged and regrouped wherever
 necessary and/or practicable to make them comparable with those of the
 current year.