Status of Investor Complaints for the quarter ended March 31, 2009

Complaints Pending at the beginning of the quarter Nil

Complaints Received during the quarter 21

Complaints disposed off during the quarter 21

Complaints unresolved at the end of the quarter Nil

1. The results for the year ended March 31, 2009 have been prepared on the basis of notified concession prices for urea under the New Pricing Scheme (NPS), further adjusted for input price escalation / de-escalation, as estimated on the basis of prescribed norms. Pending notification of concession price by the Government of India under the NPS - Stage III effective October 1 2006, the concession price have been accounted for based on estimated impact of the NPS-Stage III parameters.

2. Pending notification of the final concession price applicable for the imported fertilizers for the months February and March 2009, the same has been accounted on an estimated basis in line with the known policy parameters.

3. The Consolidated Financial results have been prepared in accordance with generally accepted accounting principles and comply with the Accounting Standard-21 on “Consolidated Financial Statement’, Accounting Standard-23 on “Accounting for Investment in Associates in Consolidated Financial Statement” and Accounting Standard-27 on ‘Financial Reporting of Interest in Joint Ventures”, issued by the Institute of Chartered Accountants of India.

4. In the above Consolidated Financial Results, the results of all the consolidated entities represents their operations for the period April 2008 or date of acquisition to March 2009 or date of disinvestment, excepting one overseas Joint Venture where the 12 months period ended on December 31, 2008.

5. The partial de-bottlenecking of Unit-I of the fertilizers plant of the company at Gadepan was completed in March 2009. Plant shutdown of aforesaid unit was taken for a period of about 36 days in the month of February and March 2009 for the purpose of such de-bottlenecking.

6. Upto March 31, 2008, the Company was charging foreign exchange differences arising on long term foreign currency monetary items (i.e. monetary assets or liabilities expressed in foreign currency and having a term of 12 months or more at the date of origination) to profit and loss account. Pursuant to Companies (Accounting Standards) Amendment Rules, 2009, the Company has exercised the option of deferring the said charge to the Profit and Loss Account, in respect of accounting periods commencing on or after December 7, 2006. As a result, such foreign exchange differences relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets.

Further, such foreign exchange differences amounting to Rs. 4682.63 lac (net of depreciation of Rs.151.90 lac which was recognized as gain in the Profit & Loss account for the financial year 2007-08 is adjusted from the General Reserve in the current year.

Had the Company continued to use the earlier basis of accounting for foreign exchange differences arising on long-term foreign currency monetary items, the profit after tax for the current year would have been lower by Rs.28,425.51 lacs (net of tax of Rs. 527.59 lac), general reserve would have been higher by Rs 4,682.63 lacs, the net block of fixed assets would have been lower by Rs.22,226.81 lacs and capital work-in-progress would have been lower by Rs 2,043.66 lacs.

7. During the year, the Company has received fertilizer bonds of Rs 49,715 Lac from Government of India against the outstanding amount of subsidy, out of which bonds amounting to Rs 36,715 Lac were held as on March 31, 2009. An amount of Rs. 2,810 Lac has been debited to the Profit and Loss Account for the year ended March 31, 2009 on account of diminution in the value of the bonds held by the company due to the prevailing market price of these bonds being lower than the face value thereof.

8. The Company has taken delivery of three new built Aframax Tankers (DWT 105,746 each) in April, June and July 2008.

9. The Company has invested aggregate amount of Rs 643.94 lac during the financial year 2008-09 in its subsidiaries namely CFCL Overseas Ltd, Cayman Islands and Chambal Infrastructure Ventures Ltd, India.

10. Chambal Infrastructure Ventures Ltd, a wholly owned subsidiary of the Company has divested its entire stake in its subsidiary - Gulbarga Cement Ltd to Zuari Industries Ltd in December 2008.

11. The other income in stand-alone results for the financial year 2008-09 includes dividend income of Rs 5009.30 lac from Imacid, Morocco0.

12. Exceptional Items in standalone results for the year ended March 31, 2009 represents gain of (a) Rs. 526.67 Lac on sale of mining lease at Gulbarga and (b) Rs 434.42 Lac on sale of 6240962 equity shares of the associate Zuari Investments Ltd.

13. The Board of Directors has recommended a dividend of Rs 1.80 per equity share of Rs. 10 each.

14. Previous year figures have been regrouped and/ or re-arranged wherever necessary to make their classification comparable with the current year.

15. The Audit Committee of the Board had reviewed these financial results and the Board of Directors approved the same on May 15, 2009.

Anil Kapoor
Managing Director