AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED ON 31st March, 1999

Rs. in lacs

PARTICULARS

Year Ended on 31.03.1999

Year Ended on 31.03.1998

1. Net sales / Income from operations**

9,606.75

6,101.19

2. Other Income

24.92

12.67

3. Total Expenditure

8,145.76

5,245.57

4. Interest

573.13

296.00

5. Gross Profit After Interest But before Depreciation

912.78

572.29

6. Depreciation

205.88

121.20

7. Provision for Taxation

75.52

49.03

8. Net Profit

631.38

402.06

9. Proposed Dividend

79.40

48.28

10. Paid-up Equity Share Capital

602.35

301.77

11..Reserves Excluding Revaluation Reserves

1,741.14

895.71

12. Earning Per Share***

14.31

13.31

** After Adjustment of Stock Variation.
*** Annualised on Average Capital.

NOTES:

• The above Result has been taken on record at the Meeting of Board of Directors held on 29.04.1999.

• The Company's share Capital has increased by Rs. 150.69 lacs in the month of April, 1998 by right issue and by Rs. 149.89 lacs by conversion of warrant No. 1 in to Equity Shares in the month of March, 1999.

• The Board of Directors has recommended dividend @ 18% on Equity Shares on pro-rata basis, subject to approval of Financial Institutions and Bank.

• The Company does not have significant operations which will be affected by the year, 2000 problem. The Company has taken appropriate and effective steps to be Y2K complaint by September, 1999. The expenditure to ensure Y2K compliance is not expected to have any material financial impact.

for KHAITAN CHEMICALS & FERTILIZERS LTD.