NATURE OF OPERATIONS
 
 United Phosphorus Limited is engaged in the business of agrochemicals,
 industrial chemicals, chemical intermediates and specialty chemicals.
 
 
                                               As at 31st    As at 31st 
                                              March, 2011   March, 2010
                                              Rs. in lacs   Rs. in lacs 
 
 1.  CONTINGENT LIABILITIES NOT PROVIDED FOR:
 
 (a) Disputed Income-tax Liability (excluding
     interest)                                         69            90
 
 (b) Disputed Excise Duty / Service Tax
     Liability (excluding interest)                 7,123         5,470
 
 (c) Disputed Sales-tax Liability                   1,157         1,052
 
 (d) Disputed Custom Duty Liability                 2,331         2,331
 
 (e) Disputed Fiscal Penalty for cancellation 
     of licences                                    3,348         3,348
   
 (f) Disputed Penalty on water tax                    161           161
 
 (g) Bills discounted under Letter of Credit 
     and remaining unpaid at the date of the 
     Balance Sheet                                    361           858 
 
 (h) Guarantees given by Companys Bankers on 
     behalf of the Company to third parties        11,253         1,736
 
 (i) Corporate guarantees given on behalf of 
     subsidiary companies:
 
 (i) United Phosphorus Limited, U.K.               15,760        15,091
 
 (ii) United Phosphorus Limited, Hong Kong          3,791         3,816
 
 (iii) United Phosphorus Inc. USA                   5,452         5,488
 
 (iv) United Phosphorus Inc. USA/Cerexagri Inc (PA) 1,115         1,122
 
 (v) Evofarms SA - Columbia                         1,115         1,122
 
 (vi) United Phosphorus Limited, Columbia             669           673
 
 (vii) United Phosphorus Limited, Australia         1,561         1,571
  
 (viii) Bio-Win Corporation Limited, Mauritius      7,581        12,122
 
 (ix) Cerexagri Italia, SRL, Italy                  7,605         7,283
 
 (x) Ceraxagri SAS., France                        12,676        12,138
 
 (xi) Ceraxagri B.V., Netherlands                  13,309        12,745
 
 (xii) Icona S.A. Argentina                         4,460             -
 
 (xiii) Uniphos Columbia Plant Limited, Columbia    6,689             -
 
 (j) Claims against the Company not acknowledged 
     as debts                                         424           428
 
 
 14. A Scheme of Arrangement between the Company and SWAL Corporation
 Ltd.  and their respective Shareholders under Sections 391 to 394 read
 with Section 78 and Sections 100 to 103 of the Companies Act, 1956 with
 the Appointed Date of 1st April 2007, was sanctioned by the Honble
 Bombay High Court on 29th February 2008 and High Court of Judicature at
 Gujarat on 16th April 2008 and became effective from 30th April 2008.
 
 As per the said scheme, reduction of Capital under Sections 100 to 103
 of the Companies Act, 1956 was sanctioned and accordingly the debit
 balance aggregating to Rs. 56,212 lacs in respect of Product
 Registrations and Product Acquisitions appearing as on 31st March 2007,
 has been debited to the Securities Premium Account and the General
 Reserve after adjusting for Deferred Tax arising on account of these
 assets amounting to Rs. 2,525 lacs on that date.
 
 As per the ICAI announcement, expense adjusted directly to reserve is
 net of its tax effect. As per the Court order and legal advice
 obtained, the Company has taken a consistent view that the tax benefit
 available is not to be adjusted in respect of amortization of the
 product registrations and product acquisitions adjusted to the
 Reserves. The difference in provision for taxation for the year due to
 this is Rs. 1,709 lacs (Previous Year: Rs 2,332 lacs) though overall,
 there is no impact on the aggregate of Reserves and Surplus of the
 Company.
 
 Notes:
 
 1.  Licensed and Installed Capacities are as certified by a Director on
 which the Auditors have relied, being a technical matter.
 
 2.  Licensed capacity represents registered capacity with Directorate
 General of Technical Development (D.G.T.D.), capacity intimated to
 D.G.T.D. under Industrial Licensing Policy and/or capacity intimated to
 Secretary for Industrial Approvals.
 
 3.  Production includes quantities produced for captive consumption.
 
 4.  During the year, the Company has produced 1,96,85,239 Litres
 (Previous Year: 1,31,18,838 Litres), 3,25,15,560 Kilograms (Previous
 Year: 2,52,88,625 Kilograms) and 37,15,270 numbers (Previous Year:
 27,68,165 numbers) of formulations out of Technical Grade Products
 manufactured/purchased by the Company
 
 5.  Production includes 3,091 Tonnes (Previous Year: 3,302 Tonnes)
 produced on Job-Work basis for outside parties.
 
 (B) The Company has availed the exemption as per the notification dated
 February 8, 2011 issued by Ministry of Corporate Affairs and
 accordingly, the additional information pursuant to the provisions of
 paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b), 3(ii)(d) of Part II of Schedule
 VI to the Companies Act, 1956 has not been disclosed in the financial
 statements.
 
 * In giving the above information, the Company has taken the view that
 Components and Spare Parts as referred to in Clause 4(c) of Part II of
 Schedule VI cover only such items as go directly into production and
 not those used as spares for repairs and maintenance of Plant and
 Machinery.
 
 3. Notes
 
 (1) The Company is organised into three main business segments namely :
 
 a) Agro Chemicals - comprising of Agrochemicals Technicals and
 Formulations.
 
 b) Industrial Chemicals - comprising of Industrial Chemicals and
 Speciality Chemicals.
 
 c) Others - primarily comprising of Traded Products.
 
 (2) Segment Revenue in the above segments includes sales, processing
 charges, rental income and export incentives.
 
 (3) Inter Segment Revenue is taken as comparable third party average
 selling price for the year.
 
 (4) Segment Revenue in the geographical segments considered for
 disclosure are as follows:
 
 a) Revenue within India includes sales to customers located within
 India.
 
 b) Revenue outside India includes sales to customers located outside
 india
 
 (5) Segment Revenue, Results, Assets and Liabilities include the
 respective amounts identifiable to each of the segments and amounts
 allocated on an appropriate basis.
 
 23.  Related party disclosure as required by Accounting Standard (AS) -
 18 Related Party Disclosures notified by the Companies (Accounting
 Standards) Rules, 2006 are given below:
 
 (a) Relationship:
 
 (i) Name of the Subsidiary Companies:
 
 Uniphos Limited, Mauritius
 
 United Phosphorus (Korea) Limited
 
 United Phosphorus (Shanghai) Company Limited
 
 United Phosphorus (Taiwan) Limited
 
 United Phosphorus Cayman Limited
 
 United Phosphorus de Mexico, S.A. de C.V.
 
 United Phosphorus do Brasil Ltda
 
 United Phosphorus GMBH - Germany
 
 United Phosphorus Holdings B.V., Netherlands
 
 United Phosphorus Holdings Cooperatief U.A.
 
 United Phosphorus Inc., U.S.A.
 
 United Phosphorus Italy S.R.L.
 
 United Phosphorus Limited Mauritius.
 
 United Phosphorus Limited, Australia
 
 United Phosphorus Limited, Belgium S P R L
 
 United Phosphorus Limited, Colombia
 
 United Phosphorus Limited, Gibraltar
 
 United Phosphorus Limited, Hongkong
 
 United Phosphorus Limited, Japan
 
 United Phosphorus Limited, New Zealand
 
 United Phosphorus Limited, U.K.
 
 United Phosphorus Limited, Zambia
 
 United Phosphorus Polska Sp.z o.o - Poland
 
 United Phosphorus Sole Partner Limited, Greece
 
 United Phosphorus Switzerland Limited.
 
 United Phosphorus Vietnam Co., Limited
 
 UPL Investment Private Limited
 
 Agri pack Zambia Limited
 
 Agrindustrial, S.A., Spain
 
 Agrodan, ApS
 
 Anning Decco Fine Chemical Co. Limited, China
 
 Bio-win Corporation Limited, Mauritius
 
 Canegrass LLC, USA
 
 Cerexagri B.V. - Netherlands
 
 Cerexagri Costa Rica, S.A.
 
 Cerexagri Delaware, Inc.,USA
 
 Cerexagri Italia S.R.L.
 
 Cerexagri S.A.S., France
 
 Cerexagri Ziraat Ve Kimya Sanayi Ve Ticaret Limited Sirketi, Turkey
 
 Cerexagri, Inc. (PA)
 
 Citrashine (Pty) Ltd, South Africa
 
 Compania Espanola Industrial Quimica de Productos Agricolas Y
 Domesticos, S.A.U.,Spain
 
 Cropserve Zambia Limited
 
 Decco Iberica Postcosecha, S.A.U., Spain (formerly Cerexagri Iberica)
 
 Decco Italia SRL,Italy
 
 Decco US Post-Harvest Inc (US)
 
 Decco Worldwide Post-Harvest Holdings B.V.
 
 Decco Worldwide Post-Harvest Holdings Cooperatief U.A.
 
 Desarrollo Quimico Industrial, S.A., Spain
 
 Eddyville Consultants Group, Inc. Panama
 
 Evofarms Colombia SA
 
 Evofarms S.A. - Colombia
 
 Friedshelf 1114 (Pty) Ltd
 
 Global Chem Trade Corp., Panama
 
 Icona S A - Argentina
 
 Icona Sanluis S A - Argentina
 
 Jiangsu Kaznam Chemical Group.,Panama
 
 JSC United Phosphorus Limited, Russia
 
 Phosfonia, S.L.,Spain
 
 Prime Agri Centre Zambia Limited
 
 PT Catur Agrodaya Mandiri, Indonesia
 
 PT. United Phosphorus Indonesia
 
 Regentstreet B.V.
 
 Reposo S.A.I.C., Argentina
 
 Riceco LLC
 
 Safepack Products Limited
 
 Samma International S.R.L.,Italy
 
 Samrod Chemicals (Pty) Ltd
 
 Shroffs United Chemicals Limited
 
 SWAL Corporation Limited
 
 Transterra Invest, S. L. U., Spain
 
 Universal Pestochem Limited
 
 Tatva Global Environment (Deonar) Limited
 
 (ii) Name of other related parties with whom transactions have taken
 place during the year
 
 a) Associate Companies:
 
 Advanta India Limited 
 Advanta Seed International, Mauritius 
 Advanta Semilas SAIC, Argentina 
 Agrinet Solutions Limited 
 Chemisynth (Vapi) Limited 
 Kerala Enviro Infrastructure Limited 
 Pacific Seeds Pty Limited, Australia 
 Unicorn Seeds Private Limited
 
 b) Joint Venture Companies:
 
 United Phosphorus (Bangladesh) Limited.  
 Hodogaya UPL Co. Limited, Japan 
 Nisso TM LLC
 
 c) Enterprises over which key management personnel and their relatives
 have significant influence:
 
 Bharuch Enviro Infrastructure Limited
 
 Bloom Packaging Private Limited
 
 Bloom Seal Containers Private Limited
 
 Coimbatore Integrated Waste Management Co. Private Limited
 
 Daman Ganga Pulp and Papers Private Limited
 
 Demuric Holdings Private Limited
 
 Entrust Environment Limited
 
 Enviro Technology Limited
 
 Gabo Products Private Limited
 
 Gharpure Engineering and Construction Private Limited
 
 Uniphos Envirotronic Private Limited
 
 Jai Research Foundation
 
 Jai Trust
 
 JRF Biogenomics Limited
 
 Nerka Chemicals Private Limited
 
 Pot Plants
 
 Sanguine Holdings Private Limited
 
 Tatva Global Enviroment Limited
 
 Ultima Search
 
 Uniphos Agro Industries Limited
 
 Uniphos Enterprises Limited
 
 UPL Environmental Engineers Limited
 
 Vikram Farm
 
 d) Key Management Personnel and their relatives :
 
 Whole Time Directors and their relatives
 
 Mr. Rajnikant.D. Shroff
 
 Mrs. Sandra R. Shroff
 
 Mr. Kalyan Banerjee
 
 Mr. Jaidev R. Shroff
 
 Mr. Arun C. Ashar
 
 Mr. Vikram R. Shroff
 
 Mrs. Shilpa Sagar
 
 Mrs. Asha Ashar
 
 Mr. Navin Ashar
 
 27.  Foreign Currency Convertible Bonds
 
 200 Series B Foreign Currency Convertible Bonds of USD 10,000 each have
 been redeemed on maturity date of 7.1.2011 at 130.87 percent of its
 principal amount. The premium paid on redemption amounting to Rs. 187
 lacs (Net of tax) has been adjusted against Securities Premium Account.
 
 28.  Previous Years figures have been regrouped/rearranged wherever
 necessary.