1.  Nature of Operations
 
 The Company is the manufacturer of chemical fertilizers and pesticides.
 The Company is also into trading business of complex fertilizers, seeds
 and pesticides.
 
 2 Contingent liabilities not provided for :
 
                                                      Rs. in lacs
 
                                           Year ended       Year ended
 
 Particulars 
                                     31st March, 2011 31st March, 2010
 
 A.  Demand Notices received from 
 Sales Tax authorities *
 
 i) Demand notice from Karnataka Sales 
 Tax Authorities (VAT) for levying
 penalty on Professional tax for 
 the years 2005-06 to 2008-09. The
 Company has filed appeal before 
 Joint Commissioner of Commercial           42.56             42.56
 Taxes (Appeals), Bangalore, against 
 the same. (The Company has
 deposited Rs. 21.28 lacs against the 
 same which is appearing in the
 schedule of Loans & Advances).
 
 ii) Demand notice from Maharashtra 
 Sales Tax Authorities in respect of
 Sales tax Assessment for the year 
 2004-05. The Company has applied for           –            130.61
 cancellation of assessment order 
 under the Bombay Sales Act 1959.
 
 B.  Demand raised by Excise 
 Authorities on Service Tax matters *
 
 Demand notice from Service Tax 
 Authorities towards Service Tax under
 Goods Transport Agency Services for 
 the period 2006-07 to 2009-10.             94.10             76.87
 (The Company has deposited Rs. 10.00 
 lacs against the same which is
 appearing in the schedule of 
 Loans & Advances).
 
 * Based on discussions with the solicitors/ favourable decisions in
 similar cases/ legal opinions taken by the Company, the management
 believes that the Company has a good chance of success in above
 mentioned cases and hence, no provision thereagainst is considered
 necessary.
 
 10.  b) A sum of Rs. 1,241.55 lacs (previous year Rs. 896.76 lacs) on
 account of unamortized foreign exchange premium on outstanding forward
 exchange contracts is being carried forward to be charged to Profit and
 Loss Account of subsequent period.
 
 3.  In accordance with explanations below Para 10 of Notified
 Accounting Standard 9 – Revenue Recognition, excise duty on sales
 amounting to Rs. 32.43 lacs (Previous Year Rs. 17.63 lacs) has been
 reduced from sales in Profit & Loss Account and excise duty on
 variation of opening and closing stock of finished goods amounting to
 Rs. 8.45 lacs (Previous Year Nil) has been considered as expense in the
 financial statements.
 
 4.  The Board of Directors of the Company in its meeting held on April
 14, 2011 have decided to withdraw the Scheme of Amalgamation of Gobind
 Sugar Mills Limited (GSM) with the Company, which was pending for
 sanction before Hon''ble High Court of Bombay at Goa. The withdrawal was
 in view of the change in the business / economic environment in
 relation to the Company''s operation resulting from deregulation of the
 fertilizer sector and to focus on its core business.
 
 5.  Item 1 and 2 under head ''Secured Loans'', Bank guarantees as
 included in Note No. 8 above, are secured by the first charge by way of
 hypothecation of the current assets, both present and future, wherever
 situated pertaining to the Company and the Company''s present and future
 book debts outstanding, moneys receivable, claims, bills, contracts,
 engagements, rights and assets.
 
 i. The loan to Indian Furniture Products Limited (IFPL) of Rs. 1,290.77
 lacs. (Balance outstanding on 1st April, 2010 Rs. 430.26 lacs) has been
 repaid during the year.
 
 ii. A loan of Rs.100.00 lacs (Balance outstanding on 31st March 2011 is
 Rs.44.44 lacs (Previous year Rs. 77.78 lacs) was given to IFPL on 22nd
 July, 2009 and it is repayable in 36 equal monthly installments w.e.f
 1st August, 2009.
 
 iii.  The loan to IFPL of Rs 1,000.00 lacs renewed repayable on 3rd May
 2011.
 
 iv. The loan of Rs. 4,053.00 lacs to Adventz Infraworld India Limited
 (formerly known as Zuari Developers Limited) was given on 6th February
 2009 .It is renewed on 6th August 2010 and is repayable at the end of
 18 months. Maximum amount of loan outstanding during the year is Rs.
 4,053.00 lacs.
 
 v. The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited) of Rs. 420.00 lacs was given on 13th May
 2009. It was renewed on 13th November, 2010 and it is repayable in 18
 months.
 
 vi. The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited) of Rs.25.00 lacs was given on 18th August,
 2009. It was renewed on 18th February 2011 and it is repayable in 18
 months.
 
 vii. The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited) of Rs.10.00 lacs was given on 20th August,
 2009 . It was renewed on 19th February 2011 and it is repayable in 18
 months.
 
 viii.  The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited) of Rs.50.00 lacs was given on 10th September,
 2009 .It was renewed on 10th March 2011 and it is repayable in 18
 months.
 
 ix.  The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited ) of Rs.115.00 lacs on 17th November, 2009 and
 it is repayable in 18 months.
 
 x.  The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited ) of Rs.110.00 lacs on 27th November, 2009 and
 it is repayable in 18 months.
 
 xi.  The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited ) of Rs.150.00 lacs on 9th February, 2010 and
 it is repayable in 18 months.
 
 xii.  The loan to Adventz Infraworld India Limited (formerly known as
 Zuari Developers Limited ) of Rs.295.00 lacs on 31st March, 2010 and it
 is repayable in 18 months.
 
 xiii.  During the year, a loan of Rs.100.00 lacs (Balance outstanding
 on 31st March, 2011 is Rs.100.00 lacs) is given to Adventz Infraworld
 India Limited on 18th May 2010 and it is repayable in 18 months.
 
 xiv.  During the year, a loan of Rs.400.00 lacs (Balance outstanding on
 31st March, 2011 is Rs.400.00 lacs) is given to Adventz Infraworld
 India Limited (formerly known as Zuari Developers Limited) on 21st June
 2010 and it is repayable in 18 months.
 
 xv.  During the year, a loan of Rs.100.00 lacs (Balance outstanding on
 31st March, 2011 is Rs.100.00 lacs) is given to Adventz Infraworld
 India Limited (formerly known as Zuari Developers Limited) on 23rd July
 2010 and it is repayable in 18 months.
 
 xvi.  During the year, a loan of Rs.100.00 lacs (Balance outstanding on
 31st March, 2011 is Rs.100.00 lacs) is given to Adventz Infraworld
 India Limited on 7th October 2010 and it is repayable in 18 months.
 
 xvii.  During the year, a loan of Rs.100.00 lacs (Balance outstanding
 on 31st March, 2011 is Rs.100.00 lacs) is given to Adventz Infraworld
 India Limited (formerly known as Zuari Developers Limited) on 28th
 October 2010 and it is repayable in 18 months.
 
 xviii.  During the year, a loan of Rs.150.00 lacs (Balance outstanding
 on 31st March, 2011 is Rs.150.00 lacs) is given to Adventz Infraworld
 India Limited on 23rd November 2010 and it is repayable in 18 months.
 
 xix.  During the year, a loan of Rs.150.00 lacs (Balance outstanding on
 31st March, 2011 is Rs.150.00 lacs) is given to Adventz Infraworld
 India Limited on 10th December 2010 and it is repayable in 18 months.
 
 xx.  During the year, a loan of Rs.200.00 lacs (Balance outstanding on
 31st March, 2011 is Rs.200.00 lacs) is given to Adventz Infraworld
 India Limited on 8th March 2011 and it is repayable in 18 months.
 
 xxi.  The loan to Gulbarga Cement Limited of Rs. 932.32 lacs paid on
 1st January 2009 is renewed and is repayable on 30th September 2011.
 
 xxii.  The loan of Rs.25.00 lacs to Gulbarga Cement Limited paid on
 22nd September, 2009 is renewed and it is repayable on 3rd November
 2011.
 
 xxiii.  The loan of Rs.270.00 lacs to Gulbarga Cement Limited on 15th
 January, 2010 is renewed and it is repayable on 14th July 2011.
 
 xxiv.  The loan of Rs.200.00 lacs to Gulbarga Cement Limited on 31st
 March, 2010 is renewed and it is repayable on 30th September 2011.
 
 xxv.  During the year, a loan of Rs.100.00 lacs to Gulbarga Cement
 Limited on 23rd April 2010 is renewed and it is repayable on 22nd
 October 2011.
 
 xxvi.  During the year, a loan of Rs.860.00 lacs is given to Gulbarga
 Cement Limited on 26th July 2010 and it is repayable on 25th January
 2012.
 
 xxvii. During the year, a loan of Rs.700.00 lacs is given to Gulbarga
 Cement Limited on 16th September 2010 and it is repayable on 15th
 February 2012.
 
 xxviii. During the year, a loan of Rs.300.00 lacs is given to Gulbarga
 Cement Limited on 20th September 2010 and it is repayable on 19th March
 2012.
 
 xxix.  During the year, a loan of Rs.100.00 lacs is given to Gulbarga
 Cement Limited on 5th October 2010 and it is repayable on 4th April
 2012
 
 xxx.  During the year, a loan of Rs.150.00 lacs given to Gulbarga
 Cement Limited on 20th October 2010 and it is repayable on 19th April
 2012.
 
 xxxi.  During the year, a loan of Rs.1,000.00 lacs given to Gulbarga
 Cement Limited on 28th October 2010 and it is repayable on 27th April
 2012.
 
 xxxii. During the year, a loan of Rs.500.00 lacs given to Gulbarga
 Cement Limited on 26th November 2010 and it is repayable on 25th May
 2012.
 
 xxxiii. During the year, a loan of Rs.700.00 lacs given to Gulbarga
 Cement Limited on 22nd December 2010 and it is repayable on 19th June
 2012.
 
 xxxiv. During the year, a loan of Rs.450.00 lacs given to Gulbarga
 Cement Limited on 30th December 2010 and it is repayable on 29th June
 2012.
 
 xxxv.  During the year, a loan of Rs.300.00 lacs given to Gulbarga
 Cement Limited on 21st January 2011 and it is repayable on 20th July
 2012.
 
 xxxvi. The loan of Rs.135.00 lacs given to Zuari Investments Limited on
 10th February, 2010 and it was repaid on 6th September 2010.
 
 xxxvii. During the year, a loan of Rs.200.00 lacs is given to Zuari
 Investments Limited on 1st June 2010 and repaid on 6th September 2010.
 
 xxxviii. During the year, a loan of Rs.100.00 lacs is given to Zuari
 Investments Limited on 1st July 2010 and repaid on 30th August 2010.
 
 xxxix. During the year, a loan of Rs.1,000.00 lacs given to Zuari
 Investments Limited on 16th September 2010 and it is repayable on 30th
 September 2011.
 
 xi.  During the year, a loan of Rs.4,200.00 lacs is given to Zuari
 Fertilisers & Chemicals Limited on 15th June 2010 and it is repayable
 on 15th June 2011.
 
 xii.  Figures in brackets denote previous year figures.
 
 6.  Segmental Information
 
 § Primary Segment
 
 The Company is engaged in the manufacture, sale and trading of
 fertilizers, seeds and pesticides which, in the context of Accounting
 Standard 17 (Segmental Information) issued by the Institute of
 Chartered Accountants of India, is considered as the only business
 segment. Accordingly, no separate segmental information has been
 provided herein.
 
 § Secondary Segment – Geographical Segment.
 
 The Company primarily operates in India and therefore mainly caters to
 the needs of the domestic market. Therefore, there are no reportable
 geographical segments.
 
 7.  Related Party disclosures under Accounting Standard – 18
 
 a) The list of related parties as identified by the management are as
 under:
 
 i) Subsidiaries of the Company:
 
 (1) Indian Furniture Products Limited
 
 (2) Zuari Seeds Limited
 
 (3) Simon India Limited
 
 (4) Zuari Management Services Limited ( formerly known as Zuari
 Infrastructure & Developers Limited)
 
 (5) Adventz Infraworld India Limited (formerly known as Zuari
 Developers Limited)
 
 (6) Gulbarga Cement Limited
 
 (7) Zuari Holdings Limited – 100% Subsidiary-with effect from 10th
 March, 2011 (earlier subsidiary of Zuari Investments Limited)
 
 (8) Zuari Fertlizers & Chemicals Limited
 
 (9) Globex Limited
 
 (10) Zuari Investments Limited
 
 (11) Zuari Chambal Insurance Brokers Limited – Subsidiary of Zuari
 Investments Limited
 
 (12) Zuari Commodity Trading limited – Subsidiary of Zuari Investments
 Limited
 
 (13) Zuari Financial Services Limited – Subsidiary of Zuari Investments
 Limited 
 
 ii) Joint Ventures of the Company:
 
 (1) Zuari Indian Oiltanking Limited
 
 (2) Zuari Maroc Phosphates Limited
 
 (3) Paradeep Phosphates Ltd – Subsidiary of Zuari Maroc Phosphates
 Limited
 
 (4) Zuari Rotem Speciality Fertilisers Limited
 
 iii) Associates of the Company*:
 
 (1) Style Spa Furniture Limited (An associate of a subsidiary)
 
 * The Company holds more than 20% of the voting power of a body
 corporate. The Company has been legally advised that it does not have
 any significant influence in the said body corporate as defined in
 Accounting Standard 18 Related Party Disclosures and accordingly has
 not considered the above investee as related party under AS-18 for the
 above disclosure.
 
 iv) Key Management Personnel of the Company:
 
 (1) Mr. H.S. Bawa, Executive Vice Chairman
 
 (2) Mr. Suresh Krishnan, Managing Director (with effect from 1st
 February, 2011)
 
 v) Relatives of Key Management Personnel of the Company:
 
 (1) Mrs. Veena Bawa
 
 (2) Mrs. Seema Behl
 
 (3) Mrs. Meenakshi Bawa
 
 8.  Employee benefits :
 
 (A) Gratuity
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with an insurance company in the form of a
 qualifying insurance policy.
 
 The following tables summarize the components of net benefit expense
 recognized in the Profit & Loss account and the funded status and
 amounts recognized in the Balance Sheet.
 
 a) The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 b) The current year being the fifth year of adoption of AS–15 (Revised)
 by the Company, disclosures as required by Para 120 (n) (i) of
 Accounting Standard 15 (Revised) have been furnished only from the year
 of its adoption.
 
 (b) Pursuant to the Scheme of Arrangement between Texmaco Limited and
 Texmaco Rail and Engineering Limited (TREL) the Company has got one
 equity share of Re.1/ – each fully paid in TREL for every equity share
 held in Texmaco Limited. The cost of shares held in Texmaco Limited has
 been allocated in the ratio of 41.40% and 58.60% to the shares of
 Texmaco Limited and TREL respectively in accordance with the Scheme.
 
 (b) In terms of guidelines issued by Government of India, Ministry of
 Chemicals & Fertilizers (MCF) dated 31st March, 2011, the Company has
 sold 50% of its holding in Fertilizer Companies Government of India
 Special Bond at price determined by Reserve Bank of India (RBI)
 resulting in a loss of Rs 3,137.06 lacs (including Rs 2,707.69 lacs
 charged to Profit & Loss Account in earlier years). As per the
 guidelines the Government of India will buyback the remaining bonds
 held by the company through RBI in 2011–12 at a price to be determined
 by Government of India. As per the above guidelines, a part of the loss
 incurred by the Company would be compensated by Government of India.
 However the mechanism for determination of such compensation has not
 been notified by MCF .On determination of the compensation applicable
 the same will be accounted for in terms of accounting policies and
 accounting standards followed by the company.
 
 (c) Provision for diminution in value of Fertilizer Companies''
 Government of India Special bonds has been done on the basis of
 quotation received from stock brokers for the closing stocks of
 respective GoI Bonds.
 
 9.  Interest accrued on loans shown under Other Current Assets
 includes an amount of Rs. 529.30 lacs (previous year Nil) receivable
 from subsidiaries.
 
 10.  Loan to employees and interest accrued on employee''s loan include
 amount due from officer of the Company Rs. 40.01 lacs (including Rs.
 37.20 lacs from a Managing Director of the Company being loan given
 before appointed as Managing Director) (previous year Rs.4.49 lacs) and
 Rs.5.67 lacs (including Rs. 1.53 lacs from a Managing Director of the
 Company) (previous year Rs.3.90 lacs) respectively. Maximum amount
 outstanding at any time during the year is Rs. 41.09 lacs (including
 Rs. 38.00 lacs from a Managing Director of the Company) (previous year
 Rs.6.17 lacs) and Rs.5.67 lacs (including Rs. 1.53 lacs from a Managing
 Director of the Company) (previous year Rs. 3.65 lacs) in respect of
 loan and interest accrued respectively.
 
 11.  (a) Stage III of the New Pricing Scheme (NPS) for Urea was in
 operation from 1st October, 2006 to 31st March, 2010. As per this
 scheme, all naptha based units (including the company) were required to
 take steps for conversion to natural gas/liquid natural gas by 31st
 March, 2010. The Company has initiated necessary steps for conversion.
 Government of India vide notification dated 17th March, 2010 has
 extended till further orders the provisions of Stage III of NPS.
 
 (b) Subsidy for Urea has been accounted based on Stage III parameters
 of the New Pricing Scheme and other adjustments as estimated in
 accordance with known policy parameters in this regard.
 
 (c) Government subsidies include Rs. 6,708.40 lacs (previous year of
 Rs. 3,396.89 lacs) in respect of earlier years, notified during the
 year.
 
 12.  The Revenue Department of the Government of Goa has issued a
 notification under sub-section (1) of Section 4 of the Land Acquisition
 Act, 1984 on 5th February, 2007 and further notification on 19th April,
 2007 proposing to acquire 1,59,700 sq. mts.  of the land belonging to
 the Company for public purpose. The Company has filed an appeal with
 the High Court of Bombay at Goa against the notification. The High
 Court has asked status quo to be maintained on the land acquisition
 proceedings.
 
 13.  The agreement with Zuari Maroc Phosphates Limited (ZMPL) for
 providing management services to Paradeep Phosphates Limited, which got
 suspended on 1st October, 2005, continues to remain so and consequently
 no management services fees has been accounted for during the year.
 
 14.  Investments
 
 i) The Company has invested a sum of Rs.6,583.05 lacs in the equity
 shares of Nagarjuna Fertilizers and Chemicals Limited (NFCL). The
 market value of these investments at the year end is Rs.6,032.23 lacs.
 Hence, there is a diminution in the value of this investment by
 Rs.550.82 lacs.
 
 ii) The Company has an investment of Rs. 258.90 lacs in the equity
 shares of Lionel India Limited (LIL). As per the latest audited
 financial statements of LIL, it has accumulated losses which have
 resulted in erosion of a major portion of its net worth. LIL is
 continuously incurring losses.
 
 iii) The Company has invested a sum of Rs. 1,417.60 lacs in the equity
 shares of one of the 100% subsidiary company. Further, the Company has
 receivables of Rs. 1,611.26 lacs by way of trade advances. The Company
 has also given corporate guarantees in respect of facilities given by
 the banks to the subsidiary company aggregating to Rs. 2,205 lacs and
 has also promised to provide continuous financial support. As per the
 latest audited financial statements of this subsidiary, accumulated
 losses of this subsidiary has resulted in erosion of its net worth.
 
 These being long term investments and also in view of the projected
 profitable operations of the above companies, management is of the view
 that the diminution in the value of these investments is temporary in
 nature and hence no provision (other than the provision accounted for
 in an earlier year in respect of a subsidiary) is required to be made
 thereagainst.
 
 15.  Pending receipt of appeal effect orders for the assessment years
 1998-99 to 2000-01 and 2002-03 to 2005-06, where appeal has been
 decided partly in favour of the Company by the Income Tax Appellate
 Tribunal, Interest on income tax refund has not been recognized thereof
 as the amount is presently not reasonably determinable. Interest income
 on this refund will be recognized in the year the appeal effect order
 is received from Income Tax Department.
 
 16.  The Company has obtained office premises, apartments and
 warehouses on operating leases for the period ranging from 2-6 years.
 In all the cases, the agreements are further renewable at the option of
 the Company. There is escalation clause in the respective lease
 agreements. All these leases are cancellable in nature. The total lease
 payments in respect of such leases recognized in the Profit and Loss
 account for the year are Rs. 455.48 lacs (previous year Rs. 346.67
 lacs).
 
 17.  Under instructions from the Special Court (Trial of Offences
 relating to Transactions in Securities) Act, 1992 and in respect of
 shareholders who could not exercise their rights in view of disputes,
 mistakes, discrepancy in holdings, etc., 10,564 (previous year 10,564)
 Rights'' Equity Shares entitlements have been kept in abeyance pursuant
 to Section 206A of the Companies Act, 1956
 
 18.  Previous year''s figures have been regrouped / recasted, wherever
 necessary to confirm to this year''s classification.