MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. MACRO-ECONOMIC OVERVIEW 2014-15:

From the macro-economic perspective, fundamentals in 2014-15 have dramatically improved in India. Factors like steep decline in oil prices, plentiful flow of the foreign investment and potential impact of the reform initiatives of the new government at centre along with its calibrated approach for fiscal management and consolidation from time to time helped in improving the macro-economic parameters to considerable extent in the country. Indian economy is estimated to register growth rate of 7.3% in 2014-15 in terms of Gross Domestic Product (GDP) based on new series taking 2011­12 as base year, which reflects very good recovery considering growth rate of 6.9 % achieved during 2013-14 and 5.1 % during 2012-13.

Overall, Indian economy in 2014-15 has emerged as one of the largest economies in the world with a promising economic outlook on the back of controlled inflation, decline in oil prices, increase in investments, rise in domestic consumption and commitment of the Government for continuity of ongoing reform process. Both industry and service sectors have registered growth rates of 5.9% and 10.6% respectively in 2014-15 as compared to 4.5% and 9.1% during 2013-14. The advance estimates of growth for 2014-15 as above reveals that positive growth trends that triggered in 2013-14 appear to have strengthened further in 2014-15, in both Industrial and service sectors. Whereas, in case of agriculture and allied sectors because of sub-optimal monsoon, the pace in growth has slowed down considerably to 1.1 % in 2014­15 as against 3.7 % registered in 2013-14.

All major service sectors, including financing, insurance, real estate and business services have exhibited excellent growth in the recent years. Contribution of service sector in GVA (Gross value added) has increased considerably over last 3 years from 49.6% in 2012-13 to 50.9% in 2013-14 and further to 52.7% in 2014-15. Proportionately, % share of agriculture and industry in GVA has constantly declined over last 3 years. Contribution of agriculture sector has declined from 18.7% in 2012-13 to 18.6% in 2013-14 and to 17.6% in 2014-15. Similarly, contribution of industry has gone down from 31.7% in 2012­13 to 30.5% in 2013-14 and further to 29.7% in 2014-15.

Encouraged by the greater macro-economic stability and continued reformist intent and actions of the government, leading to improved business sentiments in the country, institutions like IMF and the World Bank have brsented an optimistic growth outlook for India for the year 2015 and beyond.

Indian Agriculture sector:

Despite added focus on industrialization, agriculture still remains a dominant sector of Indian economy, both in terms of contribution to GDP and also as a source of employment to millions across the country. Over last few years India has emerged as a significant agriculture exporter of commodities like cotton, rice, meat, oil meals, pepper and sugar. As per the WTO statistics, share of Indian agriculture exports in world trade now accounts for 2.7% (2013-14).Recognizing the importance of Agriculture sector as integral part of Indian economy, Govt. of India took number of steps in the Union budget 2014-15 for sustainable development in agriculture. These steps include enhanced institutional credit to farmers, promotion of scientific warehousing infrastructure, including cold storages for increasing shelf-life of agriculture produce, access to irrigation through Pradhan Mantri Krishi Sinchayee yojna, provision of price stabilization fund to mitigate price volatility in agriculture produce, soil health cards, setting up agri-tech infrastructure fund, development of indigenous cattle breeds and promoting inland fisheries and other non-farm activities to support the income of farmers.

Unfortunately, agriculture year 2014 started under the potential shadow of El-nino impact in India. Onset of monsoon got delayed considerably and activated only by mid of July'14 in most parts of the country. However, during subsequent time in Kharif season upto August'14, fortunately, country received good rains, except part of states like UP, Maharashtra, AP, Telangana, Punjab and Haryana where it was relatively deficit. Overall, country received deficit rains to the tune of 12% in Kharif'14 season v/s (LPA) long period average rains received in India (778 mm V/s 887 mm). Area coverage under Kharif crops remained marginally lower by 2% over Kharif' 13 season (1027 Lac Ha V/s 1049Lac Ha). Good rains received during Kharif had brightened the prospects for Rabi season. However, lower output prices and procurement issues of cotton as well as Sugarcane has disturbed the sentiments of the farmers to considerable extent. Late harvest of Kharif crops and late on­set of winter delayed the Rabi sowing, which continued as late as till December'14 and all India area under cultivation have reached to 95% (615 Lac Hac) compared to last year's sowing area (644 Lac Hac). However, lately during Mar-Apr'15, Rabi crops got damaged heavily in about 181 Lac Ha (more than 30% of total area) across 13 states, mainly northern belt due to heavy unseasonal rains and hailstorms. This has impacted the crop production and the financial health of the farmers severely. Food grain production is expected to show negative growth in 2014-15 and it is likely to remain 251 million MT as per second advance estimates v/s 266 million MT achieved last year (-5%).

Overall, pace in the growth of agriculture and allied sectors has slowed down to considerable extent to 1.1% in 2014-15 from 3.7% in 2013-14 and targeted growth of 4 per cent for agriculture and allied sector for the 12th five year plan (2012-17), which is largely attributed to poor performance of monsoon.

Performance of Fertilizer Industry in India:

Govt. of India maintained NBS rates of N,P & S nutrients for 2014-15 as brvailing in 2013-14. Whereas, with decline in import prices of MOP, that of K nutrient has been reduced by 18% over 2013-14. Therefore, practically subsidy rates of DAP and other NP fertilizers were continued @ 2013-14 and that of K based fertilizers has been reduced proportionately in 2014-15.

Provisions of fertilizer subsidy made to the tune of Rs.72,790 Crores in the Union Budget 2014-15 were grossly inadequate, keeping in view the back-log of unpaid subsidy of Rs.38,000 Crores towards 2013-14. Practically, industry's dues to the tune of Rs.40,000 Crores remained unpaid as on close of 2014-15 (since August'14 in case of Urea and since December'14 in case of P&K fertilizers). This has impacted the cash-flow of the companies, especially during the later half of 2014-15, which in turn has compelled higher borrowings and corresponding high interest costs leading to weak profitability and liquidity issues for the industry.

Year 2014-15 started with considerable back-log of Phosphatic fertilizers with the channels. As per one estimate, such stock of DAP alone was in excess of 1.5 million MT and therefore, cut-throat competition continued till mid of Kharif season in the market. However, once such brvious stocks got exhausted sometime from mid of August'14 onwards, market conditions for P&K fertilizers were brought back to normalcy in most states and it has opened up good avenues for fresh fertilizer business during subsequent time.

Overall, fertilizer demand has brvailed quite well in the country, especially that of P&K fertilizers during 2014-15. All India sales of DAP showed an increase of 9% - from 69.03 Lac MT during 2013-14 to 75.58 Lac MT during 2014-15. Availability of adequate quantity of Phosphoric acid has remained big constraint during entire 2014-15. Further increased prices of raw materials and higher exchange rate have affected the margins of domestic DAP manufacturers considerably. Such factors have impacted the domestic production of DAP to the tune of 5% in 2014-15 (34.44 Lac MT in 2014-15 v/s 36.28 Lac MT in 2013-14). With increased demand prospects and curtailment in domestic DAP production as above due to limited availability of PA, imports of DAP during 2014-15 has surged from 32.61 Lac MT (during 2013-14) to 38.17 Lac MT (17%) in the country. In line with DAP, sales of NPK grades have also registered growth of 14% from 71.38 Lac MT in 2013-14 to 81.70Lac MT during 2014-15. Increase in NPK sales with higher pace with respect to DAP is largely attributed to its augmented availability on account of increased shift in domestic phosphatic production from DAP to NP/NPK products so as to make more units out of limited availability of Phosphoric acid in India.

Significant revival was observed in the demand of Potassic fertilizer (MOP) and has registered a growth of 27% over 2013-14 in the country (27.80 Lac MT in 2014-15 as compared to 21.92 Lac MT during 2013-14). As usual, demand of Urea brvailed quite high throughout the year, mainly on account of its lower MRP and registered growth of 1.4% in sales over 2013-14 (308.76 Lac MT in 2014-15 v/s 304.54 Lac MT in 2013-14).

GSFC's performance FY 2014-15:

Sale of GSFC fertilizers has marginally declined by less than 1% to 13.73 Lakh MT during 2014-15 from that of 13.83 lakh MT achieved in 2013-14. However, this gap has been bridged by increased volume of domestic trading of Fertilizers e.g. Urea, SSP & MOP. In spite of below average monsoon in 2014, contribution of home state of Gujarat (primary market) in aggregate fertilizer sales of the company has been maintained at 49% (6.76 lakh MT), in line with last year. Various promotional initiatives taken by Government of Gujarat including Krishi Mahotsav, special projects run for tribal farmers, increased coverage of area under micro irrigation system (MIS) through GGRC etc. has helped state to increase the agricultural productivity to considerable extent during past few years. In case of secondary market, comprising of Maharshtra, MP and Rajasthan contribution in company's total sales has declined by 2% from 24% (during 2013-14) to 22% in 2014-15. However, looking to market prospects, % share of teritary market rebrsenting Northern, Southern and North-eastern states has increased by 2% i.e from 27% in 2013-14 to 29% in 2014-15.

Non availability of required quantity of Phosphoric Acid at Sikka unit has affected the overall phosphatic production and hence its sales during the year under review. As a consequence, sales of Sk-DAP decreased from 3.87 Lac MT in 2013-14 to 3.03 Lac MT during 2014-15 (-21.5%). Similarly, sales of Sikka APS and NPK also declined by 24% in 2014-15.In order to compensate the decline in phsophatic availability to some extent, your company has imported one vessel of DAP and sold 52,954 MT quantity during 2014-15. Sales of fertilizers of Baroda unit have increased by 5% as compared to 2013-14 in proportion to the higher availability Urea, Ammonium Sulphate, Ammonium Phosphate Sulphate generated during 2014-15. Individually, Urea registered growth in sales by 8.6% (from 3.25 Lac M T during 2013-14 to 3.53 Lac M T), APS by 4% (2.68 Lac MT in 2013-14 to 2.78 Lac MT in 2014-15) and AS by 1.9% (3.09 Lac MT in 2013-14 to 3.16 Lac MT in 2014-15).

Areas of concern:

Government Subsidy accounts for more than 75% of revenue of the Urea suppliers and about 35% in case of P&K fertilizers. Therefore, its timely payments are very important for sustaining financial health of the industry. However, payment of subsidy gets inordinately delayed primarily because of inadequate provisioning in the union budget, besides cumbersome procedures. In addition, payment of large amount of subsidy and freight bills is pending due to procedural delay by GoI. For instance, balance subsidy bills of the industry are held-up since November 2012 on account of non-compliance of m-FMS. Similarly, differential freight bills of the industry are pending from 2008-09. Such inordinate delays in subsidy payments lead to liquidity problems and higher borrowing cost at industry level.

GSFC's higher dependence on imported raw materials, especially Phosphoric Acid (PA) for Sikka unit severely affected the production of Phosphatic fertilizers through Sikka unit over last few years. This constraint, however would be mitigated partly once PA supplies are channelized fully through our Tunisian JV partner TIFERT.

During 2014-15, NBS rates of N&P based products have been kept at the same level as brvailing in 2013-14 (Rs 12350/MT for DAP & Rs 8129/MT for APS). As per the policy, industry was given freedom to decide MRP of such products however; industry has to submit certified cost data in the brscribed format along with the subsidy claims submitted each month. This indirectly controls the freedom of fixing MRP by industry, which is against the spirit of decontrol .During the year under review on average prices of raw materials - Phosphoric acid and Ammonia have increased to the tune of 9% and 5% in the world market. Besides, increase in raw material cost, debrciation of INR v/s US$ has exerted brssure on the margins of Indian Phsophatic Fertilizer industry.

Wide sbrad incidence of untimely rains and hailstorms across 13 states during Mar-Apr'15 has damaged standing/harvested crop in about 181 Lac hectares. States of UP, Rajasthan and Haryana are worst affected. Crops like wheat, mustard, mango are badly damaged. Although Govt. of India is working for considering compensation to such affected farmers, this will have its bearing on the purchasing power of farmers for inputs like seeds and fertilizers towards next season.

Recent Developments and outlook for 2015-16:

The demand outlook for the fertilizer industry as such looks positive for 2015-16 on the ground that the pipe-line stock with trade got completely exhausted. However, the heavy crop damage caused through unseasonal rains and below average forecast for monsoon released by IMD recently will have its proportionate impact on fertilizer off take during initial kharif season. Overall, it appears that there would be relatively moderate volume growth for P&K fertilizers in 2015-16. However, things will largely depend upon how monsoon sets in India and its progress during kharif 2015, besides prices and availability behaviour of imported raw materials and finished fertilizers.

Budget 2015-16 has remained grossly disappointing for Indian fertilizer industry. It was expected that government will provide a definite road map for deregulating Urea sector and its MRP may be increased in a phased manner. With a view to give fillip to the domestic production, it was also hoped that GoI may rationalize the import duty structure for import of finished fertilizers and raw materials, which is brsently levied at the same rate. However, these issues are kept untouched. Provisions of fertilizer subsidy at Rs.72,969 Cr are grossly inadequate and may not support the payments of subsidy bills beyond Q1-15/16.

Contractual prices of PA for Indian buyers have lately settled in mid of Apr'15 for current quarter with an increase of US $ 40/ MT (US $ 805/MT) over contractual price of US $ 765/MT brvailing during Q3-2014-15.Availability constraint of PA is likely to continue in a short/medium term and therefore, Indian phosphatic fertilizer production is expected to remain sub-optimal in line with last year.

Market imports of DAP are tied up for about 2.8million MT so far and looking at the sluggish domestic production, imports are likely to continue. India needs to import DAP close to 4 million MT in 2015-16 to balance out the demand-supply equilibrium. With recent further debrciation of INR with respect to US $ (Rs. 64/US $) current import prices of DAP in the range of US $480-485/MT appears to be non-viable.

Under the back-drop of moderate availability, fertilizer market is expected to behave absolutely normal during 2015-16 and selling prices of P&K products are likely to get increased in the range of 3-5% initially in kharif season. Anticipating shortages during peak demand time, br-kharif buying is expected to start little early during May in most Kharif states of western region like Gujarat, Maharashtra etc.

With an intention to eliminate the impact of gas price being currently charged at different rates to Urea units, GoI has approved gas pooling policy, wherein natural gas would be supplied at a uniform price to all Urea units. This will help to revive some closed units of eastern India and boost local output.

Recently, GoI has approved the New Urea Policy effective over next four financial years. The policy has multiple objectives of maximizing indigenous production of Urea and promoting energy efficiency. In order to enhance the use efficiency of Urea, Government had also mandated to produce 75% of domestic Urea as neem coated, so that farmers are benefited, besides brventing contamination of underground water caused through leaching.

New Govt is stressing on soil test based fertilizer application and mandated states to brpare soil health cards over next 3 years for every farmer.

Govt will continue to emphasise on opening of bank accounts by farmers under Jan Dhan Yojna linked with Adhar cards, which can set the platform for direct subsidy transfer in their account in the time to come.

For the year 2015-16, announcement of Nutrient based subsidy policy (NBS) has been delayed considerably and released in the last week of June' 15. Subsidy rates of N, P, K and S nutrients are maintained in line with 2014-15.

2. RAW MATERIAL PRICES:

The international prices of raw materials were higher during FY 2014 - 15 as compared to 2013 - 14. The average CFR prices of Phosphoric Acid (PA) which was USD 689 per ton during 2013 - 14 went up to USD 763 (11%) per ton during 2014 - 15.

The prices of Ammonia increased during 2014 - 15 as compared to 2013 - 14. The average CFR prices of Ammonia during 2013 - 14 was USD 495 per ton went up to USD 555 (12%) per ton during 2014 - 15. On an average, there were 12% increase in prices of Ammonia as compared to 2013-14.

The average CFR price of Rock Phosphate during 2013 - 14 was USD 145 per ton which is same average CFR price of Rock Phosphate for the year 2014 - 15. There was no increase / decrease in price of Rock Phosphate as compared to 2013 - 14.

The price of Sulphur increased during 2014 - 15 as compared to 2013 - 14. The average CFR price of Sulphur during 2013 -14 was USD 139 per ton went up to USD 177 (27%) per ton during 2014 - 15. On average, there was 27% increase in price of Sulphur as compared to 2013 - 14.

3. INDUSTRIAL PRODUCT SCENARIO:

The Financial Year 2015, started with delayed monsoon and gradual decrease in WPI coupled with external shocks to economy amid international crude oil prices falling down.

The crude oil price fell sharply in the second half of 2014. The entire petrochemical value chain got the cascading effect leading to fall in prices of all Industrial Products of the company. On international front, the same has taken sheen off net oil exporting economies. With oil prices plunging, they have become less attractive to investors. Conversely, countries that are net oil importers have benefited from lower oil prices.

India is much better positioned as compared with both 2013 (when the 'taper tantrum' rocked emerging markets) and other emerging market peers. As compared to Fiscal 2014, a sharp decline in inflation was witnessed in fiscal 2015, and expectations of a return to 6%+ growth in Fiscal 2016, have morphed into a significant 'pull factor' for capital flows. In contrast, India has undergone substantial external adjustment over last year and is much better placed with respect to 2013 to withstand investor flight.

India's Industrial Production reported an annual index of 174.9 for FY (14-15) as compared to the annual index of 170.1 for FY (13-14) thus registering a growth of 2.8 % driven mainly due to Electricity generation and manufacturing sector.

Fall in crude oil prices has cascading effect on the Industrial Products of the company. Price of Industrial products has experienced the same trajectory in line with crude oil to the tune of 10% down fall in international prices.

Rupee has debrciated to the tune of 3% to 4% during FY 2014-15 which has helped to compensate the topline (turnover) to an extent.

Demand for Industrial Products primarily depend on growth of automobiles, Heavy commercial vehicles and Real estate Sector. The overall Commercial Vehicles segment registered negative growth of 2.83 percent during FY (14-15) as compared to FY (13-14) owing to a demand slump.

The last decade India's inflation has been observed rising dramatically with respect to (with reference to) its trading partners, be it the US, the EU or ASEAN countries, reducing competitiveness of its exports. Maintaining low and stable inflation is an imperative to boosting India's exports and sustainably reducing CAD.

Caprolactam price was under brssure since the beginning of the year. It nose dived from the levels of USD 2216 PMT in April'14 to the levels of USD 1536 PMT in March'15 owing mainly to the drastic fall in crude oil prices. The Benzene-Caprolactam sbrad has dropped down from USD 1035 PMT during FY14 to the levels of USD 949 PMT during FY15 reporting a decrease of USD 86 PMT, thus significantly reducing the margin of the Company.

Export:

MEK Oxime is being used as an anti skinning agent in paint production and is a vital element. MEK Oxime has been exported to around 35 countries and the export quantity during FY 15 was 2982 MTs as against 3210 MTs during FY14. The reduction in export is mainly due to sluggish demand from European countries. Stringent Environmental laws in EU may affect consumption of MEK in future.

4. FINANCIAL PERFORMANCE OF THE COMPANY DURING FY 2014-15:

Your Directors wish to brsent, in the Table below, the brief highlights of Company's financial performance:

GSFC's sales turnover for the year ended March 31, 2015 was Rs. 5325 Crores which is lower by 2% as against Rs. 5412 Crores as on March 31, 2014. The fertilizer sales were Rs. 3288 Crores as against Rs. 3127 Crores in the brvious year while in Industrial Products Segment, your Company registered a net sales of Rs. 2037 Crores as against Rs. 2286 Crores in the brvious year.

The EBIDTA is Rs. 693 Crores. The Profit Before Tax is Rs.574 Crores and Profit After Tax is Rs.400 Crores. At the end of the Financial Year 2014-15, the Company had total borrowings of Rs. 5107 Crores as against Rs. 5245 Crores as on March 31, 2015.

The Earning per Share (EPS) was Rs.10.05 as compared to Rs. 8.59 during the year 2013-14.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

There exists a combrhensive system of internal controls in place. The internal auditors of the Company combrhensively carry out their audit and their observations/audit queries are being discussed and debated at length by the Audit Committee. The Audit Committee of the Company also reviews the follow-up actions in respect of the items which did not get closed and seeks explanation for the open items. The internal control system is so designed that a particular transaction gets filtered at different levels so as to ensure that proper recording of such transaction takes place and no unscrupulous elements get into the system. The company uses the SAP platform where-in the proper roles, responsibilities and authorities are well defined and no deviation is allowed without proper management approval.

6. RISK MANAGEMENT:

Changes in Government policy, currency risk, fluctuation in input prices, increase in NG prices, insufficient availability of natural gas and raw material in the international market will have an impact on Company's profitability.

Market may experience frequent changes in the price of domestic Phosphatic Fertilizers depending upon the cost of production of the manufacturers. The resistance from farming community has impacted demand. DAP sales was 111 Lakh MT during 2010-11 which has gone down to 68 Lakh MT during 2013-14. With sharp increase in NG price, prices of Phosphatic fertilizers would go up. In the current scenario, good and widely distributed rainfall, smooth & comparatively cheaper availability of raw materials and timely reimbursement of subsidy by the Govt. of India would be the prime catalysts for the Company to sustain its operations profitably.

In the above likely scenario, the Company is focusing on the efficiency improvement with higher production levels, efficiencies in raw material procurement, increased availability through imports, reduction in marketing & distribution costs, production of various complex grades at Sikka and proper product/segment strategies to maximize the sales to achieve better contribution from its product basket.

To control the financial risks associated with the Foreign Exchange/ Currency rate movements and their impact on raw material prices, the Company has put in place a sophisticated Foreign Exchange Risk Management System.

7. RESEARCH AND PROMOTIONAL ACTIVITIES:

Your company has formed a new subsidiary company GSFC Agrotech Limited under which production activity of Sardar Liquid Biofertilizers viz. Azotobacter, Azospirillum, & Phosphate Solubilizing Bacteria is carried out with technology know-how from Anand Agricultural University. The Liquid Biofertilizers have added advantage of higher bacterial count, shelf-life and application through Micro Irrigation System also.

The production activity of plant protein based Plant Growth Promoters viz. Sardar Amin Granules & Liquid is carried out under GSFC Agrotech Limited. These products contain amino acids and micronutrients which promote better plant growth.

It is a leader in Banana Tissue Culture plants in the State of Gujarat since 1995 and providing Banana and Sugarcane tissue culture plants under GSFC Agrotech Ltd., with uniform quality & disease free plant to the farmers to get higher yield.

GSFC Agrotech Ltd. is also in the business of certified seeds of notified hybrids and varieties having disease and pest resistance.

Your company has state-of-the-art Soil & Water Testing Laboratory since 1969 to guide the farmers for judicious & balance use of fertilizers, micronutrients as well as soil amendment like Gypsum by testing their soils which facilitate maintenance of soil health & their fertility. Your company has also analyzed a large number of soil samples to help in the mission of Govt. of Gujarat for providing Soil Health Card to the farmers. One Mobile Soil Testing cum Audio-visual Van is also operated to provide soil & water testing services at the doorstep of the farmers. Your company has published book on Soil Atlas of Gujarat based on soil testing data to guide the farmers for judicious use of fertilizers & improvement of soil health.

Your Company is having Sardar Agrinet Call Centre well equipped with effectively and efficiently organized telecommunication infrastructure with Toll free number, computer support and human resources for instant response to farmers' queries in local language which is recently upgraded with latest use of Information technology & operating for all days from 6 AM to 10 PM. Subject Matter Specialists (SMS) interact with farmers, understand their problems and answer the queries. It has supported the farmers of Gujarat with valuable knowledge base on new technologies on various crops for improving cultivation and productivity.

Farming Community regarding latest agricultural technology and also motivate them to adopt it for increasing farm productivity. It organizes four regular & one re-orientation Farm Youth Training Programs every year to promote high-tech agri-concepts among the farmers, who are now decision makers.

Your company is publishing agricultural monthly magazine of 'Krishi Jivan' since 1968 in local language. It is one of the highest (77000) circulating magazines having 39400 Life Members. It provides latest agriculture information to farmers based on scientific research of scientists of Agriculture universities and acts as a link for transfer of technology from 'Lab to Land'.

Your Company is concerned about the environment and ecological balance and in its endeavor it is contributing through tree plantation, garden development & maintenance etc. with an objective to turn GSFC 'Green to Greener' and thus also supporting the initiative of Govt. of Gujarat in this direction.

For encouraging urban population to increase greenery and maintaining the ecological balance, your Company sponsored Fruit, Flower & Vegetable shows in association with Baroda Agri Horti Committee. It has participated in the competitions and won accolades and apbrciation.

8. SAFETY, HEALTH AND ENVIRONMENT:

During the year under review, strengthening of safety management system was emphasized. Internal safety audit was carried out by drawing in-house resources. Safety training program for contractors and their rebrsentatives have been arranged on regular basis during the year under review. The focus is on proactive endeavor and therefore training on basic fire brvention and usage of fire extinguishers was arranged that attracted over 800 participants.

Plant shutdown and start up activities pose hazards that are with the objective to different than normal working plant hazards and therefore intensified safety coverage was ensured in a structured manner, ensure that the right kind of hand tools, power tools, lifting tools tackles as well material handling and shifting devices were utilized to ascertain appropriate safety layer.

There are project work going on viz Nylon 6 and WSF; which again has its own set of safety challenges. Adequate measures have been taken to ensure safety during work by intensifying site supervision and walk through safety inspections.

Measures have been initiated to impart mechanical facelift to fire fighting vehicles and as such mechanically elevated working platform, snorkel, is ready to offer service on the spur of the moment.

9. HUMAN RESOURCES:

Shareholders are requested to refer to point 26 on page no. 18 of the Directors Report which forms part of the Annual Report.

For and on behalf of the Board

Sd/- Dr. S K Nanda, IAS

Chairman & Managing Director

Place : Fertilizernagar

Date : 15.06.2015

CAUTIONARY STATEMENT:

Some of the statements made in this "Management Discussion & Analysis Report" regarding the economic and financial conditions and the results of operations of the Company, the Company's objectives, expectations and brdictions may be futuristic within the meaning of applicable laws/regulations. These statements are based on assumptions and expectations of events that may or may not materialize in the future.

The Company does not guarantee that the assumptions and expectations are accurate and/or will materialize. The Company does not assume responsibility to publicly amend, modify or revise the statements made therein nor does it assume any liability for them. Actual performance may vary substantially from those exbrssed in the foregoing statements. The investors' are, therefore, cautioned and are requested to take considered decisions with respect to these matters.

Data sources : Websites of (1) Ministry of Finance, Department of Economic Affairs, (2) Ministry of Fertilizers & Chemicals, Department of Fertilizers, Govt. of India, (3) Govt. of Gujarat, (4) FAI, New Delhi, (5) Economic Survey- 2014-15, (6) Fertilizer Market Bulletins and (7) A special issue on Vibrant Gujarat 2015 (8)RBI Bulletin.