Significant Accounting Policies:

(a) Accounting Basis:

The financial statements are brpared under historical cost convention in accordance with generally accepted accounting principles in India (Indian GAAP) and comply in all material aspects with the applicable accounting standards notified under the relevant provisions of the Companies Act, 2013.

(b) Revenue Recognition:

(i) Sale of goods is recognized on dispatch of goods to customers and is recorded net of claims, etc., as considered appropriate. Revenue from Conversion, Sale of Scrap and obsolete stores is accounted for at the time of disposal.

(ii) Export entitlements are recognized on realization.

(iii) Revenue in respect of Interest, Insurance claims are recognized on the time proportion method.

(iv) Subsidy from Department of Fertilizers is recognized, based on the eligible quantities supplied by the Company, at the rates as notified/announced by the Government of India.

(c) Fixed Assets and Debrciation:

(1) Fixed Assets

Fixed Assets are stated at cost of acquisition (net of CENVAT/VAT) inclusive of all expenditure of capital nature such as, inward freight, duties & taxes, installation and commissioning expenses, appropriate borrowing costs and incidental expenses related to acquisition.

(2) Debrciation

(A) Debrciation on Fixed Assets other than Leasehold Land and those mentioned above are provided under Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 till financial year 2013-14. Further in case of Assets installed by the Company in one plant, taken on operating lease, the Debrciation was provided on Reducing Balance Method at the rate brscribed under Schedule XIV of the Companies Act, 1956 till financial year 2013-14.

(B) Pursuant to the notification of Schedule II of the Companies Act, 2013, by the Ministry of Corporate Affairs effective 1st April, 2014, the Management has reassessed and changed based on an independent technical estimates, wherever necessary, the useful lives to compute debrciation, to confirm to the requirements of the Companies Act, 2013. The revised useful life for various class of assets is as follows:

Particulars

(i) Leasehold Land: Over the remaining tenure of lease

(ii) Building :Over a period of 19 years

(iii) Residential Quarters :Over a period of 30 years

(iv) Plant & Equipments :Over its useful life as technically assesed i.e. over a period of 9 - 19 years, based on the type of processes and the equipments installed.

(v) Computers: Over a period of 3 years

(vi) Furniture and Fixtures :Over a period of 10 years

(vii) Vehicles: Over a period of 7 years

 (C) Product/Process Development Expenses are amortized over the estimated useful life of the product.

(3) Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of net selling price of an assets or its value in use. Value in use is brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

(d) Investments:

(i) Current investments are stated at lower of cost or fair market value.

(ii) Long term investments are stated at cost less provision for permanent diminution in value if any, of investments

(e) Valuation of Inventories:

Inventories are valued at Cost or Net Realizable Value whichever is lower.

Inventories have been valued on the following basis:

(i) Raw Materials, Packing Material, Stores and Spares

At cost on Weighted Average basis.

(ii) Work-in-Process

At cost plus appropriate allocation of overheads.

(iii) Finished Goods

At cost plus appropriate allocation of overheads or net realizable value, whichever is lower.

(f) Retirement Benefits:

Employee benefits are charged off in the year in which the employee has rendered services.

(g) Foreign Currency Transactions:

Foreign currency transactions are accounted at the rates brvailing on the date of the transaction. The exchange rate differences arising out of such transactions are dealt with in the Profit and Loss Account, except in case of long-term loans, where they relate to acquisition of fixed asset, in which case they are adjusted to the carrying cost of such assets. The brmium in case of future contracts is dealt with in the Profit and Loss Account proportionately over the period of the contracts.

(h) Research and Development:

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account for the year. Capital Expenditure on Research and Development is included as part of fixed assets and debrciation is provided on the same basis as for other fixed assets.

(i) Operating Lease:

Operating Lease payments are recognized as an expense in the Profit and Loss Account of the year to which they relate.

(j) Deferred Revenue Expenditure:

Deferred Revenue Expenditure is amortized over the period of the agreement on pro rata basis.

(k) Income Tax:

Tax expenses comprise of current tax 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.

Deferred Tax reflects 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 on the basis of Tax Rates and Tax Laws enacted or substantively enacted at the Balance Sheet.

Deferred Tax Assets are recognized only if there is reasonable certainty of their realization except in case of Deferred Tax Assets on unabsorbed debrciation and carried forward business losses, which are recognized only if there is virtual certainty of their realization.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward. The Company reviews the same at each balance sheet date.

(l) Borrowing Costs:

Borrowing cost directly related to the acquisition or construction of an asset is capitalized as part of the cost of that asset. Other borrowing costs are charged to the Profit and Loss Account.

(m) Provisions and Contingent Liabilities:

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a brsent obligation and it is probable that a cash outflow will not be required to settle the obligation.

2. There are no Micro and Small Enterprise, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Interest received of Rs. 395.29 Lakhs (Tax Deducted at Source Rs. 33.53 Lakhs) [brvious year Rs. 334.77 Lakhs (Tax Deducted at Source Rs. 29.14 Lakhs)] is netted off against interest paid on Working Capital.

4. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

5. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

As at 31st March, 2015 the Company had hedged in aggregate an amount of Rs. 15,747.61 Lakhs (brvious year Rs. 299.50 Lakhs) out of its annual trade related operations (Exports & Imports) aggregating to Rs. 182,575.79 Lakhs (brvious year Rs. 160,963.49 Lakhs).

The Company had hedged its currency risks to the tune of Rs. 9,839.14 Lakhs (brvious year Rs. 11,980.00 Lakhs), in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of Rs. 13,622.89 Lakhs (brvious year Rs. 19,010.75 Lakhs) into a fixed rate loan through an interest rate swap.

(B) Net foreign exchange loss

6. The figures of brvious year have been regrouped and rearranged wherever necessary.

As per our report of even date

For GOKHALE & SATHE

CHARTERED ACCOUNTANTS

Sd/- TEJAS J. PARIKH

PARTNER

FOR AND ON BEHALF OF THE BOARD

Sd/- RAJENDRA V. GOGRI

CHAIRMAN AND MANAGING DIRECTOR

Sd/- RASHESH C. GOGRI

VICE CHAIRMAN AND MANAGING DIRECTOR

Sd/- SHANTILAL T. SHAH

VICE CHAIRMAN

Sd/- CHETAN GANDHI

CHIEF FINANCIAL OFFICER

Sd/- MONA PATEL

COMPANY SECRETARY

PLACE: Mumbai

DATE: 13th May, 2015