Audited Financial Results for
the year ended 31/03/2007

Sl.No Particulars Stand -alone Company Accounts ConsolidatedAuditedYear ended
Unaudited Audited Year ended
Nine Months ended 4th Quarter ended
Dec. 31, 2006 March 31, 2007 March 31, 2006 March 31, 2007 March 31, 2006 March 31, 2007 March 31, 2006
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX)
(1) Net Sales/Income from operations 1,629.02 436.47 556.05 2,065.49 1,846.91 2,066.50 1,851.79
(2) Other income 11.03 7.70 7.29 18.73 27.80 16.05 27.20
(3) Total Expenditure              
(a) (Increase)/Decrease in stock in trade 32.69 (39.93) 23.10 (7.24) (115.88) (6.14) (115.91)
(b) Consumption of raw materials 1,060.84 322.51 397.20 1,383.35 1,287.86 1,383.35 1,287.86
(c) Purchase of goods for resale 72.17 28.69 6.79 100.86 200.72 100.86 202.12
(d) Staff cost 47.48 16.44 14.41 63.92 50.57 63.99 51.65
(e) Other expenditure 243.58 81.63 80.43 325.21 274.99 325.08 276.48
    1,456.76 409.34 521.93 1,866.10 1,698.26 1,867.14 1,702.20
(4) Gross Profit 183.29 34.83 41.41 218.12 176.45 215.41 176.79
(5) Interest 22.44 9.49 6.95 31.93 24.01 31.96 24.05
(6) Depreciation 29.05 10.79 10.10 39.84 37.08 39.92 37.16
(7) Profit before Tax, minority interest and share of profits of Associate Companies 131.80 14.55 24.36 146.35 115.36 143.53 115.58
(8) Provision for taxation              
  -Current tax 49.94 (1.06) 11.00 48.88 44.50 48.94 44.61
  -Deferred tax (2.74) 1.49 (2.94) (1.25) (11.77) (1.25) (11.77)
  -Fringe benefits tax 0.62 0.24 0.37 0.86 1.12 0.86 1.16
  -Provision for tax no longer required, written back 0 (2.88) 0 (2.88) (2.04) (2.88) (2.04)
(9) Profit after Tax, before minority interest and share of Profit from Associate Companies 83.98 16.76 15.93 100.74 83.55 97.86 83.62
(10) Share of Profit of Associates 0 0 0 0 0 18.86 11.76
(11) Net Profit 83.98 16.76 15.93 100.74 83.55 116.72 95.38
                 
(12) Paid -up Equity Share Capital(Face value Rs.2/- per equity share) 25.41 25.41 25.41 25.41 25.41 25.41 25.41
(13) Reserves excluding revaluation reserve       486.86 412.58 525.54 435.27
(14) Earnings per share              
  -Basic 6.61 1.32 1.25 7.93 6.57 9.19 7.51
  -Diluted 6.57 1.31 1.25 7.88 6.57 9.13 7.51
(15) Aggregate of non-promoter shareholding              
  -Number of shares       37,918,165 37,918,165 37,918,165 37,918,165
  -Percentage of shareholding       29.85 29.85 29.85 29.85
(16) Capital employed       1,132.74 939.41 1,171.77 962.94

Note:

  1. The above financial results are drawn following the accounting policies consistently adopted by the Company.
  2. The results have been reviewed by the Audit Committee and taken on record / approved by the Board of Directors at their meeting held on May 3, 2007.
  3. The Board of Directors have recommended a dividend of 100% for the year ended March 31,2007.
  4. The Company is engaged in the Farm Inputs business which, in the context of the Accounting Standard-17, is considered the only business segment.
  5. Other income for the previous year ended March 31, 2006 includes interest received on Income tax refund (net) amounting to Rs.10.52 crore (2007 : Rs. 'Nil' ).
  6. Pending announcement of final rates of concession for the complex fertilisers for the period July 2006 to March 2007, income amounting to Rs. 32.62 crore (previous year Rs.72.09 crore) has been recognised having regard to the existing concession scheme and according to management estimates of price concession receivable.
  7. The Board of Directors of the Company, at their meeting held on October 17, 2006 approved the merger of Ficom Organics Limited (Ficom), and its wholly owned subsidiary Rasilah Investments Limited (Rasilah) through a Scheme of Amalgamation to be effective from April 1, 2006. The Scheme of Amalgamation was approved by the Shareholders of both the Companies and creditors of Ficom. The Scheme has been sanctioned by the Hon'ble High Courts of Andhra Pradesh and Bombay. The certified copies of the Orders of the Hon'ble High Courts sanctioning the Scheme, when obtained, will be filed with the Registrar of Companies of Andhra Pradesh and Maharashtra to complete the process of Amalgamation of Ficom & Rasilah with the Company.
  8. The above financial results for the quarter/year ended March 31, 2007and the nine months ended December 31,2006, incorporate the results of M/s. Ficom Organics Limited and its wholly owned subsidiary Rasilah Investments Limited (on account of amalgamation referred in point 7 above), and are hence not comparable with the figures of corresponding previous period.
  9. Earnings per share have been worked out after considering equity shares to be allotted to the members of Ficom Organics Limited as per the Scheme of Amalgamation.
  10. Pursuant to the Share Purchase Agreement with Indian Farmers Fertiliser Cooperative Limited ('IFFCO') and the consequent open offer made to the shareholders of Godavari Fertilisers And Chemicals Limited (GFCL) in accordance with the Securities & Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, the Company had acquired 15,51,960 equity shares through an open offer and 80,01,000 equity shares from IFFCO at Rs.150/- per share on April 2, 2007 and April 12, 2007 respectively. With this the Company's holding in Godavari Fertilisers And Chemicals Limited has increased to 74.92%.
  11. Pursuant to the adoption of Accounting Standard 15 (revised 2005) on 'Employee Benefits' issued by the Institute of Chartered Accountants of India, the transitional obligation of the Company on account of defined contribution and defined benefit plans amounting to Rs. 5.07 crore (net of related deferred tax asset of Rs.2.57 crore) has been adjusted against the opening general reserve of the Company.
  12. During the quarter, 2 investor complaints were received and resolved. There were no complaints pending, both at the beginning and at the end of the quarter.
  13. Figures have been regrouped wherever necessary.

Place : Secunderabad

Dated: May 3, 2007

V. Ravichandran

Managing Director

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