1. The financial results relate mainly to Fertilizer segment. The financial results of Micro Irrigation segment, being less than the limit prescribed for separate disclosure in Accounting Standard 17, has not been shown separately.

2. Govt. of India has announced Stage III of New pricing policy w.e.f. October 01, 2006 and that price is yet to be notified. However, income from urea operations is accounted under the provisional notified pricing, further adjusted for input escalation/de-escalation and Import Parity Price benefit recognised in accordance with notified parameters announced on October 08, 2008.

3. Depreciation on the increased value of assets due to revaluation is adjusted from revaluation reserve.

4. Pursuant to the approval of the Shareholders of the Company, the Warrants Committee of the Board of Directors at their meeting held on October 26, 2007 allotted 2,25,00,000 warrants of Rs 10/- each at a premium of Rs 19/- to the Core Promoters in accordance with SEBI Guidelines for Preferential Issues who paid 10% of the amount due. During the quarter the Warrants Committee of the Board of Directors had annulled the above Warrants allotted to the Core Promoters on receipt of communication from them expressing their inability to contribute to the balance amount and convert the warrants in to shares. The 10% payment made by them stands forfeited in terms of the SEBI Guidelines
for Preferential Issues.

5. Consolidated financial statements are not published since the projects of the subsidiary companies are in the implementation stage.

6. Interest includes loss of Rs 13.81 Crores on discount on sale and of the remaining Bonds valuation of Government of India special fertilizer subsidy receivable.

7. Tax Expenses includes income tax, fringe benefit tax and deferred tax.

8. Previous Period figures have been regrouped/re-classified wherever necessary to make their classification comparable with the current period.

9. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on April 29, 2009.

K S Raju
Chairman & Managing Director