Articles

1. The Board of Directors have recommended a dividend of `2.00 per equity share of ` 5/- each (Previous Year: ` 3.75 per share).
2. In compliance with ad-interim Order passed by the Hon’ble Supreme Court on 13th May, 2011, the Company immediately suspended production and sale of Endosulfan. Subsequently, pursuant to Orders passed by the Hon’ble Supreme Court, the Company exported its entire stock of Endosulfan Technical and over one-third of Endosulfan Formulations stock during the year. The remaining stocks of Endosulfan Formulation are being exported as and when export orders are secured.
   
   At the last hearing in the court matter related to Endosulfan, the Hon’ble Supreme Court has asked the Central Government for its suggestion as to how the stocks of Endosulfan Formulation and its raw materials should be disposed of/phased out.
   
   The Company carries provision aggregating to `16.30 crores (including `6.10 crores made during the year 2011-12 and shown as Exceptional Item) in respect of stocks relating to Endosulfan. In the opinion of the Company, the amount of such provision is sufficient and reasonable.
3. Endosulfan has been the single largest product of the Company. Its absence in the Company’s product portfolio for the major part of the year (barring exports as referred to above) severely impacted the Company’s sales and profits. Though the shortfall in the sales was made up to an extent by increased sale of other manufactured and traded products, there has been significant erosion in the margins for the year.
4. Vide its order dated 23rd April, 2012, the Competition Commission of India held that there was a violation of Section 3 of the Competition Act, 2002, in relation to supply of Aluminium Phosphide Tablets to one of the buyers and imposed a penalty of `63.90 crores on the Company. The Company has decided to file an appeal against the said Order before the Competition Appellate Tribunal.
5. The Company has only one primary business segment viz. Agri Inputs.
6. The financial statements for the year ended 31st March, 2012 have been prepared as per the Revised Schedule VI to the Companies Act, 1956. Accordingly, the previous period’s figures have been regrouped/rearranged wherever necessary to make them comparable with the current period.
7. The figures for the last quarter ended 31st March, 2012 and the corresponding quarter in the previous year are the balancing figures between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the end of the third quarter of the relevant financial year.
8. The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 30th May, 2012.

In compliance with the ad-interim Order passed by the Hon'ble Supreme Court on 13th May, 2011, the Company has suspended production and sale of Endosulfan. The loss of Endosulfan business is adversely impacting the Company's performance.

By its Order dated 30th September, 2011, the Hon'ble Supreme Court has allowed export of existing manufactured stock of Endosulfan Technical, subject to specific conditions.

The Company holds stock of about 744 MT of Endosulfan Technical which would be exported in the course of time. The Company continues to maintain provision of Rs.1630 lacs (including Rs.610 lacs provided during the first quarter in the current financial year) made out of abundant caution in respect of inventory items relating to Endosulfan. The provision is shown as Exceptional Item.

The business of the Company is seasonal in nature and its performance depends on monsoon and other climatic conditions.

The Company has only one primary business segment viz. Agri Inputs.

There was one investor complaint pending at the beginning of the quarter. The Company received one investor complaint during the quarter. Both the complaints were resolved leaving no pending complaint at the end of the quarter.

The figures for the previous period/year have been regrouped wherever necessary.

The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 20th October, 2011 and have been subjected to Limited Review by the Statutory Auditors.

A writ petition has been filed by Democratic Youth Federation of India before the Hon'ble Supreme Court seeking a ban on Endosulfan, a major product of the Company, alleging health concerns. By an ad-interim order passed on 13th May, 2011, the Hon'ble Court appointed a Joint Committee to conduct a scientific study and submit its interim report and pending submission of such report the Hon'ble Court banned production, use and sale of Endosulfan. Pursuant to the said Order, the Company has suspended production and sale of Endosulfan. The temporary ban imposed during the peak sale season is adversely impacting the Company's performance.

The Exceptional Item of Rs.610 lacs during the quarter under review represents further provision made out of abundant caution in respect of inventory items relating to Endosulfan, the aggregate amount of such provision as at June 30, 2011 being Rs.1630 lacs.

The business of the Company is seasonal in nature and its performance depends on monsoon and other climatic conditions. The first quarter performance is not representative of performance of the entire financial year.

There was no investor complaint pending at the beginning of the quarter. The Company received one investor complaint during the quarter under review which remained pending at the end of the quarter.

The figures for the previous period/year have been regrouped wherever necessary.

The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 27th July, 2011 and have been subjected to Limited Review by the Statutory Auditors.