i) Basis for preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified Accounting Standards by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis
 except in case of assets for which provision for impairment is made and
 revaluation is carried out. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in previous year.
 
 ii) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 iii) Fixed Assets
 
 Fixed assets are stated at cost less accumulated
 depreciation/amortisation and impairment losses, if any.  Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use.
 
 Machinery spares which are specific to a particular item of fixed asset
 and whose use is expected to be irregular are capitalized as fixed
 assets.
 
 iv) Depreciation
 
 Depreciation is provided using the Straight Line Method as per the
 useful lives of the fixed assets (other than machinery spares) as
 estimated by the management, which are equal to the rates prescribed
 under Schedule XIV of the Companies Act, 1956 except for computers and
 peripherals which are depreciated/amortised over the useful lives of
 three years. For this purpose, a major portion of the plant has been
 considered as continuous process plant.
 
 Machinery spares are depreciated prospectively over the estimated
 remaining useful lives of the respective mother assets.
 
 v) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount.  The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a pre-discount rate that reflects current
 market assessment of the time value of the money and rates specific to
 the asset.
 
 vi) Intangibles
 
 Intangibles representing computer software are amortized using the
 Straight Line Method over their estimated useful lives of three years.
 
 vii) Inventories
 
 Inventories are valued at the lower of Cost and Net Realisable Value.
 
 The Cost is determined as follows:
 
 (a) Stores and spares, Fuel oil, Raw Materials and Packing Materials :
 Moving weighted average method.
 
 (b) Work-in-process: Material cost on moving weighted average method
 and appropriate manufacturing overheads based on normal operating
 capacity
 
 (c) (i) Finished goods (manufactured): Material cost on moving weighted
 average method and appropriate manufacturing overheads based on normal
 operating capacity including Excise Duty.
 
 (ii) Finished goods (traded): Moving weighted average method.
 
 Materials and other items held for use in the production of inventories
 are not written down below cost if the finished products in which they
 will be incorporated are expected to be sold at or above cost.
 
 Net Realisable Value is the estimated selling price in the ordinary
 course of business, less the estimated costs of completion and the
 estimated costs necessary to make the sale.
 
 viii) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long- term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of the investments.
 
 ix) Fertiliser Companies'' Government of India Special Bonds
 
 Fertiliser Companies'' Government of India Special Bonds issued by
 Government of India in lieu of subsidy dues are intended to be kept for
 short term and are valued at lower of Cost and Market value and are
 shown as ''Other Current Assets''.
 
 x) Retirement and other Employee Benefits
 
 a) Provident Fund and Pension Fund
 
 Retirement benefits in the form of Provident Fund / Pension Funds is a
 defined contribution scheme and the contributions are charged to the
 Profit and Loss Account of the year when the contributions to the
 respective funds are due. There are no other obligations other than the
 contribution payable to the respective trusts except in case of
 contribution towards Provident Fund, where the deficit, arising in
 making the statutory payment by the Trust to its members, if any, is
 being borne by the Company in terms of the provisions under Employee
 Provident Fund & Miscellaneous Provisions Act, 1952.
 
 b) Gratuity
 
 Gratuity liability is a defined benefit obligation and is provided for
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year. The Company has taken an
 insurance policy under the Group Gratuity Scheme with the Life
 Insurance Corporation of India (LIC) to cover the gratuity liability of
 the employees and amount paid/payable in respect of the present value
 of liability for past services is charged to the Profit & Loss Account
 every year.  The difference between the amount paid/payable to LIC and
 the actuarial valuation made at the end of each financial year is
 charged to the Profit & Loss Account.
 
 c) Leave Encashment
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation made at the end of each financial year.  The actuarial
 valuation is done as per projected unit credit method.
 
 d) Superannuation and Contributory Pension Fund The Company has
 approved Superannuation Fund and Contributory Pension Fund which are
 defined contribution schemes and the contributions paid to Life
 Insurance Corporation of India (LIC) against the insurance policy taken
 with them are charged to the Profit & Loss Account each year. The
 Company does not have any other obligation other than contributions
 paid to the LIC.
 
 e) Actuarial gains/losses are immediately taken to Profit and Loss
 Account and are not deferred.
 
 f) Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss Account immediately.
 
 xi) Foreign currency transactions
 
 a) Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 b) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency, are reported using the exchange rates that existed
 when the values were determined.
 
 c) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise.
 
 d) Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 xii) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue from sale of goods, including concession in respect of Urea,
 DAP, MOP and Complex Fertilisers receivable from the Government of
 India under the New Pricing Scheme/ Concession Scheme, is recognised
 when the significant risk and rewards of ownership of the goods have
 passed to the customers. Excise Duty deducted from turnover (gross) is
 the amount that is included in the amount of turnover (gross) and not
 the entire amount of liability assessed during the year.
 
 Concessions in respect of Urea as notified under the New Pricing Scheme
 is recognised with adjustments for escalation/ de-escalation in the
 prices of inputs and other adjustments as estimated by the management
 in accordance with the known policy parameters in this regard.
 
 Subsidy for Phosphatic and Potassic (P&K) fertilizers are recognized as
 per rates notified by the Government of India in accordance with
 Nutrient Based Subsidy Policy from time to time.
 
 Uniform freight subsidy on Urea, Complex fertilisers, Imported DAP and
 MOP has been accounted for in accordance with the parameters and
 notified rates.
 
 Interest Income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Claims receivable on account of Despatch money on shipment (net of
 demurrage payable) and Insurance claims are accounted for to the extent
 the Company is reasonably certain of their ultimate collection.
 
 Dividend is recognized when the shareholders'' right to receive payment
 is established by the balance sheet date.  Dividend from subsidiaries
 is recognised even if same are declared after the balance sheet date
 but pertains to period on or before the date of balance sheet as per
 the requirement of Schedule VI of the Companies Act, 1956.
 
 xiii) Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of qualifying assets are capitalized to the extent they
 relate to the period till such assets are ready to be put to use. A
 qualifying asset is an asset that necessarily takes substantial period
 of time to get ready for its intended use. Other borrowing costs are
 recognised as an expense in the year in which they are incurred.
 
 xiv) Operating Leases
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 xv) Accounting for Taxes
 
 Tax expense comprises current and deferred tax. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961. Deferred income taxes reflect
 the impact of timing differences between taxable income and accounting
 income for the year and reversal of timing differences of earlier
 years.  Deferred tax is measured based on the tax rates and the tax
 laws enacted or substantively enacted at the balance sheet date.
 
 Deferred tax assets are recognised only to the extent that there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised. In
 situations where the Company has carry forward of unabsorbed
 depreciation and tax losses, deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that such
 deferred tax assets can be realised against future taxable profits.
 Unrecognised deferred tax assets of earlier years are re-assessed at
 each balance sheet date and recognised to the extent that it has become
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised.  Any such write-down is reversed to the extent that it
 becomes reasonably certain or virtually certain, as the case may be,
 that sufficient future taxable income will be available.
 
 xvi) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event 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 are not discounted to
 their present value and are determined based on best estimates required
 to settle the obligation at the balance sheet date. These are reviewed
 at each balance sheet date and are adjusted to reflect the current best
 estimates.
 
 xvii) Earnings per Share
 
 Basic Earnings per Share is calculated by dividing the net profit or
 loss for the year attributable to the equity shareholders (after
 deducting attributable taxes) by the weighted average number of equity
 shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, net profit
 or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive Potential Equity Shares.
 
 xviii) Derivative Instruments
 
 The Company uses derivative financial instruments such as forward
 exchange contracts to hedge its risk associated with foreign currency
 fluctuations. Accounting policy for forward exchange contracts is given
 in note (xii) above.
 
 xix) Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is recognized
 as income over the periods necessary to match them on a systematic
 basis to the costs, which it is intended to compensate.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related asset.
 
 xx) Cash and Cash equivalents
 
 Cash and cash equivalents in the cash flow statement comprises cash at
 bank and in hand and short term investments with an original maturity
 periods of three months or less.