1.1.

0 Highlights for the year 2008-2009 : Your Company's overall performance was excellent during the financial year 2008-09. Your Company achieved highest ever turn over of s. 8!"".#2 crore compared to s."228.9$ crore in the previous year% recording an increase of s.#22&.#" crore% a growth rate of &'.$0(. )he total income from operations was s.8"#8.!# crore as against s. "#2".0& crore during the previous year registering a growth of &0."#(. Your Company achieved a gross profit of s. !8$.20 crore as against s. #88.&' crore during the previous year% thus recording an increase in the operational profits *y 2".#$(. )he net +rofit *efore )ax at s.#2".$0 crore as against s. 2!2.0$ crore registered% an increase of #!.""(. )he ,et +rofit after )ax during the current year% is higher at s.2''."8 crore as against s.'"8.'" crore in the previous year registering an increase of ##.92( over previous year. )he net -nterest cost during the year has increased to s.$!.9# crore compared to s."9.#2 crore during the previous year due to level *orrowing for wor.ing capital having gone up% delayed su*sidy payments *y /overnment and also receiving part of the same in the form of /overnment 0onds. 1 provision of s. &2.8& crore had to *e made towards loss due to 2ar. to mar.et value of 3ertiliser 0onds.

2.1.2 Fertilizers:. Your Company produced 2#.$" la.h 2) of fertili4ers during the year as against 2#.00 la.h 2) produced in the previous year and achieved overall capacity utilisation of 88.0# ( as against 8".#0( during the previous year. )he capacity utilisation of the 5rea plants was to the extent of 9#.!8( only since the 5rea plant at )rom*ay was not operated due to gas limitation. 1s regards complex fertili4ers% 6uphala 7'"8'"8'"9 plant produced to the extent of '"$(. -n terms of nutrients% your Company produced 9.!& la.h 2) of ,itrogen :,;% 0.$' la.h 2) of +hosphate :+20"; and 0.$' la.h 2) of +otassium :<20; during the year as compared to 9.'# =a.h 2) of ,% 0.$0 la.h 2) of +20" and 0.$0 la.h 2) of <20 during the previous year. +roduction of 6uphala was marginally affected due to limitation of roc. phosphate. )he performances of the units are given *elow8 2.1.2.1 Thal Unit: )hal unit produced '9.0! la.h 2) of 5rea during the year compared to '8.#2 la.h 2) produced in the previous year. )he unit achieved a capacity utilisation of '''."" ( as compared to '0$.#"( during the previous year. )he unit produced '0.9$ la.h 2) of 1mmonia compared to '0."" la.h 2) during previous year. )he energy consumption per 2) of 5rea was &.!$2 /cal. -n terms of nutrients in the fertili4ers% the unit produced 8.$& la.h 2) of , during the year compared to 8.!# la.h 2) during the previous year. )he unit% certified for -6>-900'% -6>-'!00' and -60'800' under -ntegrated 2anagement 6ystem% had excellent performance during the year *y surpassing all the records previously achieved such as highest ever production% highest capacity utilisation% and highest stream days of #"& days for 1mmonia. )hal unit of your company was *estowed with following awards during the year8 '. 31- award 2008 for ?0est )echnical -nnovation? for @nergy 6aving *y Aigh @missivity Coating in +rimary eformer furnace underta.en at )hal 1mmonia plant. 2. /ood /reen /overnance award from 6rishti 3oundation for year 200$ for @nvironment +rotection B +ollution Control. #. 6pecial 1ward for ?Contri*ution in 6afety 1wareness activity *y C3? given Cointly *y Directorate of -ndustrial 6afety and Aealth and 2utual 1id esponse /roup% /overnment of 2aharashtra.

6everal technical innovations underta.en have resulted in achieving lowest energy consumption in urea :&.!$2 2<calE 2);% lowest specific power consumption :!8.$& .whE2);% highest production of ammonia :'0.9$ la.h 2);% highest production of urea :'9.0! la.h 2); etc. 2.1.2.2 Trombay Unit: )he )rom*ay 5nit produced !.$' la.h 2) of 6uphala '"8'"8'" during the year under report compared to !.&8 la.h 2) produced during the previous year. )he )rom*ay unit% during the year% did not produce 5rea due to the constraint in the availa*ility of feed stoc. gas. +resently 1,+ plant is *eing re-engineered and maCor wor. is *eing underta.en and hence the unit did not produce 6uphala 20820. )he unit achieved an overall capacity utili4ation of !$."#( compared to !$.2"( during the previous year. -n terms of ,utrient values% the unit produced 0.$' la.h 2) of , during the year :previous year 0.$0 la.h 2);% and produced 0.$' la.h 2) +20" : previous year 0.$0 la.h 2); and 0.$' la.h 2) <20 :previous year 0.$0 la.h 2);. )he unit was *estowed with the following awards8 '. 3ertili4er 1ssociation of -ndia :31-; 1ward for ?0est @nvironmental +erformance in ,+E,+< complex fertili4er plant for the year 2008-09. 2. ?/olden +eacoc. @nvironmental 2anagement 1ward? for the year 200&-0$ *y the ?-nstitute of Directors?% ,ew Delhi.

2.2.0 MA !"T#$% &" F' MA$(": 2.2.1 Fertilizer )i*ision: Your Company achieved the highest ever sales volume of !8.## la.h 2) during 2008-09 as compared to !0."0 la.h 2) in the previous year. Your Company sold #&.&! la.h 2) of 5rea% ".0# la.h 2) of 6uphala '"8'"8'"% and &.&& la.h 2) of other *ought out products such as D1+% 2>+% etc. compared to #'.0' la.h 2) of 5rea% !.9' la.h 2) of 6uphala '"8'"8'"% and !."8 la.h 2) of other *ought out products respectively during the previous year. Your Company achieved highest sales even in other products such as 0iofertili4ers :0iola;% 2icronutrients :2icrola; and '00( water solu*le fertili4er :6uCala;% all produced *y your Company. 5rea sales at #&.&! la.h 2)% is the highest ever sales of urea achieved in any year and surpassed the last years sale of #'.0' la.h 2). )he Company has emerged as the largest supplier of urea in the states of 2aharashtra% <arnata.a B )amil ,adu. )he Company's mar.et-share of urea has also gone up from '2( in 200$-08 to '!( in 2008-09 and thus has *ecome the second largest seller of 5rea. -n previous year it held #rd position. )he sales of *ought out fertili4ers increased to 2#.'" la.h 2) in the current year from '$.$0 la.h 2) over the traded Fuantity in the previous year registering an increase of 29(. 6ales of traded products constituted #&( of the total sales volume of the Company. 1ll states registered impressive increase in mar.et share over the previous years. 6imilarly all products showed increase over previous years in terms of volume. Due to excellent performance of the 2ar.eting division% your Company received the 31- /olden Gu*ilee 1ward for )ransfer of 3arm )echnology% 2.2.2 #n+,strial &ro+,-ts )i*ision: Despite various constraints due to glo*al recession during the second half of the financial year% -ndustrial +roducts Division achieved highest ever turnover of s.$8#.9" Crore as against the sales turnover of s.&"".80 Crore during the previous year% achieving a- growth rate of '9.'" (.

1mmonium ,itrate :2elt;% 2ethanol% 2ethylamines and Cone. ,itric 1cid contri*uted significantly in achieving the high growth. )he division has plans to achieve a )urnover of s.8"0 Crores during the financial year 2009-'0.

2...0 /trength an+ 0ea1ness: 2...1 /trengths: Your Company's strength lies in its s.illed manpower% high 0rand @Fuity for the +roducts manufactured such as 5CCwala% 6uphala% 2icrola% 0iola% 6uCala. )he wide spread mar.eting networ. ensures that your company reaches the products to all parts of the country. )he 3armer's )raining -nstitute and BD Centre ensure that Fuality services are provided to the farmersE dealers *y educating them and providing inputs for *etter crop realisation. Your Company has a wide portfolio of chemical products and can withstand difficult economic situations *y adopting optimal mix of production. )he well maintained plants and eFuipment ensure Huninterrupted production and distri*ution of goods. 2...2 0ea1nesses: )he +lants have *een in operation for a very long time% some of them since '9&" *y carrying out regular up.eep% maintenance and upgradation. )he company's wor.ing capital is dependent on the receipt of su*sidy payments from governmentI any delays would force the company to *orrow and incur interest *urden. )he complex fertili4ers are *ased on imported raw materials which can face severe volatility in raw material prices and foreign currency exchange rate affecting the profita*ility of the company. 2...2 '33ort,nities: )he increased availa*ility of feed stoc. gas would permit for underta.ing maCor expansion at )hal. 1lternate feedstoc. li.e Coal gasification gives an opportunity for underta.ing 3ertili4er +roCects in other parts of the country. CD2 activities ena*les reali4ation of Car*on Credits:C@ ;. Due to your Company's good reputation% several opportunities exist for Colla*orations E Diversification in manufacturing% mining and mar.eting of varieties of products. @xperienced B 6.illed 2anpower of your company .has *een in demand for rendering >B2 service in -ndia and a*road in Countries such as 1ustralia% 0angladesh% 0ahrain% China% 6audi 1ra*ia etc. 2.... Threats: 2anufacturing and mar.eting of 3ertili4ers is the core *usiness of your Company. 1gro-climatic conditions have a large effect on the performance of the Company. )he chemicals *usiness is highly suscepti*le to cut throat glo*al mar.et competition. 4.0.0 &U56#(#T7 A$) & 'M'T#'$: 3ertili4er promotion activities through various extension measures continued to play a maCor role in increasing *rand eFuity. 6ome of the activities underta.en are as under8 6oil testing 6ervices8 Your Company continued to give special importance to 6oil diagnostics as a means of advising farmers a*out use of proper dosage of fertili4ers in order to optimi4e soil productivity. >ver $0%000 soil samples were analy4ed and recommendations given through the five static and five mo*ile soil testing la*oratories. 6oil samples are also collected through using the facilities of

-)C's e-choupal. 2icronutrient analysis of soil had also *een underta.en and around '"00 samples were analy4ed during the year. +u*licity8 Your Company's pu*licity programme focuses on enhancing *rand image. +ress% )J and adio were extensively used to spread the Company's messages to its customers. Your Company has also underta.en field pu*licity li.e wall paintingsI Jillage -ndication 0oards etc. were extensively used. Calendars in different regional languages were pu*lished% which had wide appeal to the customers. Your Company also participated in different 6tate level exhi*itions during the year. =iterature and posters% appropriate to the themes% were distri*uted at different <rishi melasEcrop seminars organised *y your Company. Your Company's 2ar.eting 6trategy includes the fertili4er promotion% farmers' education and rural development programmes. -ts aim is to increase productivity through intensive and integrated extension activities in the field of agriculture% recommending *alanced use of fertili4ers and simultaneously to extend the services as promoter% activator and organiser of various socio economic and educational activities to improve the Fuality of life of various rural masses particularly small% marginal and 6CE6) families. Your Company initiated a novel programme called ?@arn-while-you-learn? to impart practical training to students from agricultural colleges and ena*le them to earn during their graduation. )his was implemented successfully in 2aharashtra particularly while promoting the use of solid solu*le fertili4ers. 4.1.0 Farmers8 ser*i-e: Your Company continues to have grass root contract with farmers% disseminate .nowledge of proper farm practices to enhance their farm income. Your Company undertoo. crop specific development programs depending on the 6tateE area. Your Company has esta*lished several 3armers' 6ervices Centres for providing services such as soil sample collection% arranging farmers meeting% film shows% and exhi*itions and for providing general guidance in the fields of farming. 6everal farmers' E dealers' training programmes were conducted during the year at the Company's two 3armers )raining -nstitutes. 2ore than '&00 dealersEfarmers were trained during the year. Your Company has two well eFuipped 3armer )raining -nstitutes at )hal and ,agpur where programmes are conducted year round for the *enefit of farmersEdealers. 3aculty is drawn from within the Company and also from agricultural universities% 6tateECentral /overnment institutions. 6pecial hi-tech programmes were also organi4ed in colla*oration with 1gro-Kon.