(a) Basis of Accounting
 
 The accounts of the Company are prepared under the historical cost
 convention using the accrual method of accounting.
 
 (b) Use of Estimates
 
 The presentation of the financial statements in conformity with the
 generally accepted accounting principles requires the Management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities, revenues and expenses and disclosure of
 contingent liabilities. Such estimates and assumptions are based on the
 Managements evaluation of relevant facts and circumstances as on the
 date of the financial statements. The actual outcome may diverge from
 these estimates.
 
 (c) Fixed Assets
 
 Fixed Assets are carried at cost less depreciation and impairment loss.
 The cost of fixed assets includes interest on borrowings attributable
 to acquisition of fixed assets up to the date of commissioning of the
 assets and other incidental expenses incurred up to that date.
 Machinery spares whose use is expected to be irregular are capitalised
 and depreciated over the useful life of the principal item of asset.
 
 Fixed Assets acquired and put to use for project purpose are
 capitalised and depreciation thereon is included in project cost till
 commissioning of the project.
 
 (d) Capital Work-in-Progress
 
 Projects under commissioning and other Capital Work-in-Progress are
 carried at cost, comprising direct cost, related incidental expenses
 and attributable interest.
 
 (e) Foreign Currency Transactions
 
 (i) Purchases and sales in foreign currencies are accounted at exchange
 rates prevailing on the date of transaction.  Short term monetary
 assets and liabilities in foreign currencies as at the Balance Sheet
 date are translated at the rates prevailing at the year end and the
 resultant net gains or losses are recognised as income or expense in
 the year in which they arise. The exchange differences on long term
 loans to non-integral foreign operations are accumulated in a Foreign
 Currency Translation Reserve, until disposal / recovery of the net
 investment.
 
 The exchange differences arising on revaluation of long term foreign
 currency monetary items for the year ended 31 March, 2008, 2009 and
 2010 have been amortised over the shorter of the maturity period or
 31st March, 2011.  The unamortised balance is presented as Foreign
 Currency Monetary item Translation Difference Account net of tax
 effect thereon.
 
 (ii) Premium / discount on forward exchange contracts, which are not
 intended for trading or speculation purposes, are amortised over the
 period of the contract. Forward exchange contracts outstanding at the
 Balance Sheet date are stated at fair value and any gains or losses are
 recognised in the Profit and Loss Account.
 
 (f) Investments
 
 Long term investments are carried at cost less provision for
 diminution, other than temporary, in the value of such investments.
 Current investments are carried individually, at lower of cost and fair
 value.
 
 (g) Inventories
 
 Inventories are valued at lower of cost (on weighted average basis) and
 net realisable value after providing for obsolescence and other losses,
 where considered necessary. Work in process and finished goods include
 appropriate proportion of overheads and, where applicable, excise duty.
 
 (h) Employee Separation Compensation
 
 (i) Compensation paid / payable to employees who have opted for
 retirement under Early Separation Scheme is amortised over the period
 for which benefit is expected.
 
 (ii) Liability under Early Separation Scheme is computed and
 accounted at the Net Present Value.
 
 (ii) Compensation paid/payable to employees who have opted for
 retirement under Voluntary Retirement Scheme including ex-gratia is
 charged to Profit and Loss Account in the year of separation.
 
 (i) Sales
 
 Sales are recognised, net of returns and trade discounts, on dispatch
 of goods to customers. Sales Tax and Value Added Tax are excluded. In
 respect of Urea, sales are recognised based on provisional rates of
 group concession as notified under the New Pricing Scheme. Equated
 freight claims and escalation claims for Urea sales are estimated by
 the Management based on the norms prescribed or notified under the said
 Scheme. In case of complex fertilisers, other than traded goods, sales
 include price concession, as notified under the Concession Scheme, or
 as estimated by the Management based on the norms prescribed. Equated
 freight claims for complex fertilisers are estimated by the Management
 based on the norms prescribed or notified under the uniform freight
 policy.
 
 (j) Other Income
 
 Interest income is accounted on accrual basis. Dividend income is
 accounted for when the right to receive income is established.
 
 (k) Research and Development Expenses
 
 Revenue expenditure pertaining to Research and Development is charged
 to the Profit and Loss Account. Expenditure on fixed assets used in
 Research and Development is capitalised.
 
 (l) Depreciation
 
 (i) Depreciation has been provided on the straight line method as per
 Section 205(2)(b) of the Companies Act, 1956 as follows :
 
 (a) in respect of assets acquired on or after 1st April, 1987, at the
 rates and in the manner prescribed in Schedule XIV of the Companies
 Act, 1956 as amended, except in respect of the following categories of
 assets, in whose case the life of the assets has been assessed as under
 :
 
 Membrane Cells 4 years
 
 Catalyst 5-7 years
 
 Vehicles 4 years
 
 Computers and data processing equipments 4 years
 
 High Pressure Boiler 4 & Turbine 12 8 years
 
 RO Water Plant 4 years
 
 Railway wagon procured under Wagon Investment scheme 15 years
 
 Moulds for Water Purifiers and Bulbs 3 years
 
 (ii) Leasehold land is amortised over the duration of the lease.
 
 (m) Impairment of Assets
 
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for impairment of assets.  If any indication of
 such impairment exists, the recoverable amount of such assets is
 estimated and impairment is recognised, if the carrying amount of these
 assets exceeds their recoverable amount. The recoverable amount is the
 greater of the net selling price and their value in use. Value in use
 is arrived at by discounting the future cash flows to their present
 value based on an appropriate discount factor. When there is indication
 that an impairment loss recognised for an asset in prior accounting
 periods no longer exists or may have decreased, such reversal of
 impairment loss is recognised.
 
 (n) Employee Benefits
 
 Employee benefits consist of Provident Fund, Superannuation Fund,
 Gratuity Fund, compensated absences, long service awards, post
 retirement medical benefits, Directors retirement obligations and
 Family Benefit Scheme. Provident fund is considered as a defined
 benefit plan.
 
 (i) Post-employment benefit plans
 
 Payments to defined contribution retirement benefit schemes for
 eligible employees in the form of Superannuation Fund are charged as an
 expense as they fall due.
 
 For defined benefit schemes in the form of gratuity fund, post
 retirement medical benefits, Directors Pension Liabilities and Family
 Benefit Scheme, the cost of providing benefits is determined using the
 Projected Unit Credit Method, with actuarial valuations being carried
 out at each Balance Sheet date. Actuarial gains and losses are
 recognised in the Profit and Loss Account for the period in which they
 occur. Past service cost is recognised immediately to the extent that
 the benefits are already vested, and otherwise is amortised on a
 straight-line basis over the average period until the benefits become
 vested. The retirement benefit obligation recognised in the Balance
 Sheet represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to past service cost, plus the present value of available
 refunds and reductions in future contributions to the schemes.
 
 The Company makes contribution towards provident fund, a defined
 retirement benefit plan. The provident fund is administered by the
 Trustees of the Tata Chemicals Limited Provident Fund. The Rules of the
 Companys Provident Fund administered by a Trust require that if the
 Board of Trustees are unable to pay interest at the rate declared by
 the Employees Provident Fund by the Government under para 60 of the
 Employees Provident Fund Scheme, 1952 for the reason that the return
 on investment is less or for any other reason, then the deficiency
 shall be made good by the Company. Having regard to the assets of the
 Fund and the return on the investments, the Company does not expect any
 deficiency as at the year end.
 
 Family Benefit Scheme is an unfunded defined benefit plan. The benefits
 of the plan accrue to eligible employees at the time of death or
 permanant disablement while in service, either as a result of an injury
 or as certified by the Companys Medical Board. The monthly payment to
 dependents of the deceased / disabled employee under the plan equals to
 100% of the last drawn basic salary in case of Management and Officer
 cadre employees and 100% of the last drawn basic salary plus Dearness
 Allowance & Fixed Additional Dearness Allowance for employees in the
 workmen category. The Company accounts for the liability for Family
 Benefit Scheme payable in future based on an independent actuarial
 valuation carried out at each Balance Sheet date.  (ii) Short-term
 employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employees renders the service. These
 benefits include compensated absences such as paid annual leave and
 performance incentives.  The cost of compensated absences is accounted
 as under :
 
 (a) in case of accumulated compensated absences, when employees render
 the services that increase their entitlement of future compensated
 absences; and
 
 (b) in case of non - accumulating compensated absences, when the
 absences occur.
 
 (iii) Long-term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation at the Balance Sheet date. Long Service
 Awards are recognised as a liability at the present value of the
 defined benefit obligation at the Balance Sheet date.
 
 (o) Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act,1961.
 
 Deferred Tax is recognised on timing differences, being the differences
 between the taxable income and the accounting income that originate in
 one period and are capable of reversal in one or more subsequent
 periods.
 
 Deferred Tax Assets in respect of unabsorbed depreciation and carry
 forward of losses are recognised if there is virtual certainty that
 there will be sufficient future taxable income available to realise
 such losses. Other Deferred Tax Assets are recognised if there is
 reasonable certainty that there will be sufficient future taxable
 income to realise such assets.
 
 (p) Derivative Contracts
 
 The Company enters into derivative contracts in the nature of full
 currency swaps, currency options, forward contracts with an intention
 to hedge its existing assets and liabilities, firm commitments and
 highly probable transactions.
 
 Derivative contracts which are closely linked to the underlying
 transactions are recognised in accordance with the contract terms. All
 other contracts are marked-to-market and losses are recognised in the
 Profit and Loss Account.  Gains arising on the same are not recognised
 on grounds of prudence.
 
 (q) Provisions and Contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on best estimate required to settle the obligation at the Balance
 Sheet date. These are reviewed at each Balance Sheet date and adjusted
 to reflect the current best estimates. Contingent liabilities are
 disclosed in Notes to Accounts.
 
 (r) Segment Reporting
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the - Company. Segment revenue, segment
 expenses, segment assets and segment liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment. Revenue, expenses, assets and liabilities
 which relate to the Company as a whole and are not allocable to
 segments on reasonable basis have been included under unallocated
 revenue / expenses / assets / liabilities.
 
 (s) Borrowing costs
 
 Costs in connection with the borrowing of funds to the extent not
 directly related to the acquisition of fixed assets are amortised and
 charged to Profit and Loss Account, over the tenure of the loan.
 Interest on borrowed money, allocated to and utilised for qualifying
 fixed assets, pertaining to the period upto the date of capitalisation
 is added to the cost of the assets.
 
 (t) Debenture Issues Expenses
 
 Debenture issue expenses and redemption premium are adjusted against
 the Securities Premium Account as permissible under Section 78(2) of
 the Companies Act, 1956.