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Notes to Accounts of Gokul Refoils & Solvent Ltd.

Mar 31, 2015

Note: - 1:Discontinuing Operations

The Board of Directors of the company at its meeting held on 3rd July, 2014 have approved a Composite Scheme of Arrangement between Gokul Refoils and Solvent Ltd, Gokul Agro Resources Ltd and Gokul Agri International Ltd, (both wholly owned subsidiaries of the Company) and their respective Shareholders and Creditors which Inter alia envisages

(1) Demerger of Gandhidham undertaking (including Windmill) with related assets and liabilities into Gokul Agro Resources Ltd and

(2) Transfer of Sidhpur undertaking (including Windmill) to Gokul Agri International Ltd with effect from January 1, 2015 in accordance with the provisions of the Companies Act, 1956 read with related provisions of the Companies Act, 2013. The scheme will be effective only after getting necessary statutory approvals and filings with the Registrar of Companies. Gujarat.

The proposed demerger of the Gandhidham undertaking (including Windmill) and transfer of Sidhpur undertaking (including Windmill) qualify as an initial disclosure event as per AS-24 (Accounting for Discontinuing Operations). The following table shows the estimated revenue, expenses and profit attributable to the respective undertakings.

Note: - 2:Composite Scheme of arrangement

The Board of Directors of the company at its meeting held on 3rd July, 2014 have approved a Composite Scheme of Arrangement between Gokul Refoils and Solvent Ltd(GRSL), Gokul Agro Resources Ltd(GARL) and Gokul Agri International Ltd(GAIL) (both wholly owned subsidiaries of the company) and their respective shareholders and creditors which Inter alia envisages;

(1) Demerger of Gandhidham undertaking (including windmill) with related assets and liabilities into Gokul Agro Resources Ltd and,

(2) Transfer of Sidhpur undertaking (including windmill)to Gokul Agri International Limited with effect from January 1, 2015 in accordance with the provisions of the Companies Act, 1956 read with related provisions of the Companies Act, 2013. The scheme will be effective only after getting necessary statutory approvals and filings with the Registrar of Companies, Gujarat. Therefore with effect from January 1, 2015 as provided in the scheme, GRSL in respect of the Gandhidham Undertaking (including windmill) and Sidhpur Undertaking (including windmill), shall carry on and be deemed to have been carrying on the business and activities and shall stand possessed of and hold all of its properties and assets for and on account of and in trust for GARL and GAIL respectively. Similarly with effect from January 1, 2015 all the profits or income accruing or arising to GRSL in respect of the Gandhidham Undertaking (including windmill) and Sidhpur Undertaking (including windmill) or expenditure or losses arising to or incurred by GRSL in respect of these undertakings shall for all purposes and intents be treated and be deemed to be and accrue as the profits or incomes or expenditure or losses (as the case may be) of GARL and GAIL, as the case may be. Pending the approval of the scheme GRSL has included all the transactions of these undertakings as its own and will be transferred effective January 1,2015 to the respective undertakings on scheme becoming effective.

Note: - 3:Previous year's figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year. Figures have been rounded off to nearest of rupee in Lacs.

Note: - 4:The company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme" (EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of Rs.7558.10 Lacs (Previous year Rs. 5895.16Lacs) to be fulfilled during a specified period as applicable from the date of imports .The liability towards custom duty payable there on in respect of unfulfilled export obligation as on 31st March, 2015 of Rs. 1044.29 Lacs. (Previous year Rs. 781.58Lacs) is not provided for.

Note: - 5:The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any, will be made when accounts are reconciled / settled.

Note: - 6:Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances) Rs. 0.00 Lacs (Previous year Rs. 795.41Lacs).

Note: - 7: Segment Reporting

Based on the guiding principles given in Accounting Standard on "Segment Reporting (AS-17)" issued by the Institute of Chartered Accountant of India, the management reviewed and classified its primary business segment as "Agro based commodities" which incorporates product groups viz. Soybean, Palmolive,cotton seed oil, sun flower oil, mustard seed oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oil seeds, its by products and other agro-commodities which have similar production process, similar methods of distribution and have similar risks and returns. This in the context of AS 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006 constitutes one single primary segment.Geographical Segment is identified as secondary segment.As per Accounting Standard (AS) 17 - "Segment Reporting", segment information has been provided under notes to Consolidated Financial Statements.

Note: - 8:

In accordance with principles of Prudence and other applicable guidelines and as per Accounting Standards notified by the Companies (Accounting standards) Rules, 2006, the Company has charged amounts of Rs.1.92 Lacs (Previous Year of Rs. 110.69Lacs) to Profit and Loss Account in respect of derivative contracts remaining unsettled at the end of the year.

Note: - 9:

A sum of Rs.29.96 Lacs(Previous Year Rs.19.68 Lacs) is included under other income representing net prior period items.

Note:- 10: Details of CSR Expenditure :

Company is not required to spend any amount on CSR activities during the year under review as its average Net Profit of last three preceding Financial Years is negative.


Mar 31, 2014

Note: - 1: Contingent Liabilities Particulars As at 31st As at 31st March, 2014 March, 2013

(A) For Letter of credit opened for which goods were in transit 2509.45 11200.71

(B) Guarantee Given to Banks 1872.23 838.68

(C) For Corporate Guarantee Given 11000.00 13000.00

(D) Disputed demand of custom duty, income tax, Entry Tax and Service Tax 2170.65 1239.74

(E) Claims not acknowledged as debt 50.19 418.69

Company does not have any default as on the balance sheet date in the repayment of any loan and interest.

Buyers credit is secured by comfort letters issued by bankers in favour of banks which is ultimately secured by pledge of fixed deposits. The rate of interest for buyers credit loans ranges 45 to 75 basis points over LIBOR for foreign currency loans and 10.00 % to 13.50 % P.A. in case of cash credit /overdraft and packing credit.

Cash Credit /Overdraft and Packing credit loans from banks are secured by hypothecation of current assests of the company on pari passu basis and collaterally secured by way of first charge /residual charge on all the fixed assets of the company and personal guarantee of Mr. B.C Rajput and Mr. K.J Thakkar and corporate guarantee of M/S Gokul Overseas.

The disclosures as required to be made relating to Micro, Small, and Medium enterprises under the Micro ,small and Medium enterprises development Act 2006 (MSMED) are not furnished in the view of non availability of information with the company from such enterprises.

Wages salary and bonus includes director remuneration .

Salary, wages and bonus head include director remuneration.

The company has recognised as an expenses in profit and loss account in respect of defined contribution plan Rs. 56.77 Lacs (Previous Year Rs. 53.69 Lacs) administrated by government

a. Defined benefit plan and long term employment benefit Defined Benefit Plan (Gratuity)

The company has a defined benefit gratuity plan .every employee who has completed five years and more service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance company in the form of qualifying insurance policy

Long Term Employment Benefit (Leave Wages)

Leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or resignation or upon retirement on attaining superannuation age.

Note: - 2

Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year. Figures have been rounded off to nearest of rupee in Lacs.

Note: - 3

The company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme" (EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of Rs. 5895.16 Lacs (Previous year Rs. 4823.27 Lacs) to be fulfilled during a specified period as applicable from the date of imports .The liability towards custom duty payable there on in respect of unfulfilled export obligation as on 31st March, 2014 of Rs. 781.58 Lacs. (Previous year Rs. 602.91 Lacs) is not provided for.

The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any, will be made when accounts are reconciled / settled.

Note: - 4

Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances) Rs. 795.41 Lacs (Previous year Rs. 41.83 Lacs).

NOTE-5 Segment Reporting:

Based on the guiding principles given in Accounting Standard on "Segment Reporting (AS-17)" issued by the Institute of Chartered Accountant of India, the management reviewed and classified its primary business segment as "Agro based commodities" which incorporates product groups viz. Soybean, Palmolive, cotton seed oil, sun flower oil, mustard seed oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oil seeds, its bye products and other agro-commodities which have similar production process, similar methods of distribution and have similar risks and returns. This in the context of AS 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006 constitutes one single primary segment. Geographical Segment is identified as secondary segment. As per Accounting Standard (AS) 17 - "Segment Reporting", segment information has been provided under notes to Consolidated Financial Statements. NOTE-39 Related party Disclosure: Disclosures as required by Accounting standard 18 "Related Party Disclosures" are given below.

A. Related Party

1. Gokul Overseas A Firm in which some of the directors and company are partners.

2. Maurigo International Ltd. Wholly owned subsidiary.

3. Maurigo Pte Ltd Wholly owned subsidiary

4. Professional Commodity Services Pvt. Ltd. Wholly owned subsidiary

5. Gujarat Gokul Power Ltd. Associate Company.

6. Gokul Foundation Charitable Trust where Key Management Personnel (KMP) are Trustee.

7. Shree Bahuchar Jan Seva Trust Charitable Trust where Key Management Personnel (KMP) are Trustee.

B. Key Management Personnel

1. Mr. Balvantsinh Rajput Chairman and Managing Director

2. Mr. Kanubhai Thakkar Managing Director

3. Mr. Dinesh Sharma Whole Time Director upto 1st January, 2014

4. Mr. Bipinbhai Thakkar Whole Time Director w.e.f. 16th January, 2014

C. Relative of Key Management Personnel:

1. Mr. Amrutji Rajput Brother in Law of Chairman and Managing Director

2. Ms. Heenaben Rajput Daughter of Chairman and Managing Director

3. Ms. Bhavnaben Thakkar Daughter of Managing Director

4. Mr. Deepak Harwani Son in Law of Managing Director

5. Mr. Digeeshsinh Harendrakumar Rajput Son in Law of Chairman and Managing Director

6. Mr. Dharmendra Rajput Son of Chairman and Managing Director

7. Mr. Jayesh Thakkar Son of Managing Director

The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and dilutive earning per share of the Company remain the same.

NOTE-6 Disclosures in respect of derivative Instruments:

(a) Derivative Instrument outstanding

The year end foreign currency exposures that have been hedged by derivative instruments are given below-

(b) All the derivative instruments have been acquired for hedging purpose

(c) Foreign Currency exposure that are not hedged by derivative instruments

NOTE-7

Pursuant to approval of the shareholders of the company in the Extra Ordinary General meeting held on September 6, 2007, the Company

had issued and allotted through Initial Public Offering (IPO) 7158392 equity shares of Rs. 10 each at premium of Rs.185 per share. The issue has been made in accordance with the terms of Company''s Prospectus dated May 20, 2008. Subsequently pursuant to provisions of Section 61 of the Companies Act, 1956 the members, in the Extra ordinary general meetings of the company held on February 27, 2010, and on September 19, 2013 approved the amendments in the objects / utilizations of funds as stated "Objects" of the issue in prospectus dated May 20, 2008 by passing a special resolution.

Note: - 8

The Ministry of Corporate Affairs, Government of India, vide General Circular No -2 and 3, dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956 subject to fulfillment of conditions stipulated in the circulars. The Company has satisfied the conditions stipulated in the circulars and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

Note: - 9

In accordance with principles of Prudence and other applicable guidelines and as per Accounting Standards notified by the Companies (Accounting standards) Rules, 2006, the Company has charged amounts of Rs. 110.69 Lacs (Previous Year of Rs. 35.03 Lacs) to profit and loss Account in respect of derivative contracts remaining unsettled at the end of the year.

Note: - 10

A sum of Rs. -19.68 Lacs (Previous Year Rs. 4.55 Lacs) is included under Manufacturing and other expenses representing net prior period items.

Note: - 11

Hitherto sales tax / Vat was grossed up in sales and shown as expense in statement of profit and loss. Based on guidance note on revised schedule VI issued by ICAI, from this year the company has reported sales exclusive of sales tax/vat.


Mar 31, 2013

NOTE: - 1:

Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for tie preceding year are included as an integral part of the current year financial statements and are ~o be read in relation to the amounts and other disclosures relating to current year. Figures have been rounded off to nearest of rupee in Lacs.

NOTE - 2:

The Company has imported certain capital Equipments at concessional Tate of custom duty under ''Export Promotion of Capital Goods Scheme" (EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of * 4SZ3.27 Lacs

(Previous year Rs. 5047,(4 Lacs) to he fulfilled during a specified period as applicable from the date of imports. The liability towards custom duty payable there Dn in respect of unfuLfiLed export ob.igation as on 31" March, 2011 of T 602.91 Lacs. (Previous year Rs. 336.05 Lacs) is not provided for.

NOTE: - 3:

The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any. will be made when accounts are reconciled / settled.

NOTE: - 4:

Estimated amount of contracts reigning to be executed on capital account and not provided (net of advances) T 41.83 Lacs (Previous year 7 408.95 Lacs),

NOTE: - 5: Segment Reporting

Based on the gutting principles giwn in Accounting Standard on "Segment Reporting (AS-1 /)" Issued by the Institute of Chartered Accountant of India, the management reviewed and classified tts primary business segment as *Agro based commodities" which incorporates product groups vfz. Soybean, PaJnolive, cotton seed oil sun flower oil mustard seed oil, castor oft oil cakes, de-oiled cakes. Vanaspati, oil seeds, its bye products and other agro-commod''"ties which have similar production process, similar methods of distribution and have similar risks and returns. This in the context of AS 17 "Segment Reporting* notified under the Companies (Accounting Standard) Rules, 2006 constitutes one single primary segment. Geographical Segment is identified as secondary segment. As per Accounting Standard {AS) 17 - "Segment Reporting", segment information has been prodded under notes to Consolidated Financial Statements.

NOTE: - 6:

Pursuant to approval of the shareholders of the Company In the Extra Ordinary General meeting held on September 6, 2007, the Company had issued and allotted through Initial Public Offering (IPO) 715*392 equity shares of Rs. 10 each at premium of 7 185 per share. The issue has been made In accordance with the terms of Company''s Prospectus dated Hay 20, 2008. Subsequently pursuant to

provisions of Section 61 of the Companies Art, 1956 the members, in an Extra Ordinary General Meeting of the Company held on February 27, 2010, approved the amendments In the objects / utilizations of funds as stated Objects of the issue in prospectus dated May 20, 2008.

NOTE: - 7:

The Ministry of Corporate Affairs, Government of India, vide General Circular No -2 and 3, dated Z* February, 2011 and 21* February,

2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfillment of conditions stipulated in the circulars. The Company has satisfied the conditions stipulated in the circulars and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

NOTE: - 8:

In accordance wTlh principles of Prudence and other applicable guidelines and as per Accounting Standards notified by the Companies (Accounting standards) Rjles, 2006, the Compa-iy has charged amounts of Rs. 35.03 Lacs (Previous Year ofRs. 637.38 Lacs) to profit and loss Account in respect of derivative contracts remaining unsettled at the end of the year.

NOTE: - 9:

A sum of T 4.55 Lacs (Previous Year T 35.32 Lacs) is included under Manufacturing and other expenses representing net prior period items.


Mar 31, 2012

NOTE: - 1 Contingent Liabilities (Rs. in Lacs)

Particulars 2011-12 2010-11

(a) For letter of credit opened for which goods were in transit 15200.91 6836.87

(b) Guarantee given to banks. 938.80 1470.84

(c) For Corporate guarantee given 22921.60 20367.25

(d) Disputed demand of Custom Duty and Income Tax 1008.15 783.16

Company Does not have any default as on the balance sheet date in the repayment of any loan and interest.

Buyers credit is secured by comfort letters issued by bankers in favour of banks which is ultimately secured by pledge of fixed deposits. The rate of interest for buyers credit loans ranges 80-200 basis points over LIBOR for foreign currency loans and 11% to 13.75 % p.a. in case of cash credit /overdraft and packing credit.

Cash Credit /Overdraft and Packing credit loans from banks are secured by hypothecation of current assets of the Company on pari-passu basis and collateral secured by first charge /residual charge on all the fixed assets of the Company and personal guarantee of Shri Balvantsinh Rajput and Shri Kanubhai Thakkar and corporate guarantee of M/S Gokul Overseas.

The Company has recognised as an expenses in profit and loss account in respect of defined contribution plan Rs. 66.83 Lacs (Previous Year Rs. 37.08 Lacs) administrated by government

Defined benefit plan and long term employment benefit

a. Defined Benefit Plan (Gratuity)

The Company has a defined benefit gratuity plan. Every employee who has completed five years and more service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service, the scheme is funded with insurance Company in the form of qualifying insurance policy.

b. Long Term Employment Benefit (Leave Wages)

Leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or resignation or upon retirement on attaining superannuation age.

NOTE-2

Previous year's figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.

Figures have been rounded off to nearest of rupee in Lacs.

(a) The Company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme" (EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of Rs. 5047.64 Lacs (Approx) (Previous year Rs. 5106.24 Lacs) to be fulfilled during a specified period as applicable from the date of imports. The liability towards custom duty payable there on in respect of unfulfilled export obligation as on 31st March, 2012 of Rs. 336.05 Lacs. (Previous year Rs. 638.28 Lacs) is not provided for.

N0TE-3

The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any, will be made when accounts are reconciled / settled.

NOTE-4 Segment Reporting:

Based on the guiding principles given in Accounting Standard on "Segment Reporting (AS-17)" issued by the Institute of Chartered Accountant of India, the management reviewed and classified its primary business segment as "Agro based commodities" which incorporates product groups viz. Soybean, palmoline ,cotton seed oil, sun flower oil, mustard seed oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oil seeds, its by products and other agro-commodities which have similar production process, similar methods of distribution and have similar risks and returns. Hence the primary segment information is being reported based on this classification. As per Accounting Standard (AS) -17 on" Segment Reporting "Segment information has been provided under the notes to Consolidated Financial statement. NOTE-38 Related party Disclosure: Disclosures as required by Accounting standard 18 "Related Party Disclosures" are given below.

A. Related Party

1. Gokul Overseas A Firm in which some of the Directors and Company are partners.

2. Maurigo International Ltd. Wholly owned subsidiary

3. Maurigo Pte Ltd. Wholly owned subsidiary

4. Professional Commodity Services Pvt. Ltd. Wholly owned subsidiary

5. Gujarat Gokul Power Ltd. Associate Company

6. Gokul Foundation Charitable Trust where Key Management Personnel (KMP) are Trustee.

7. Shree Bahuchar Jan Seva Trust Charitable Trust where Key Management Personnel (KMP) are Trustee.

B. Key Management Personnel

1. Mr. Balvantsinh Rajput Chairman and Managing Director

2. Mr. Kanubhai Thakkar Managing Director

3. Mr. Gyan Choradia Executive Director (up to 31st March, 2012)

C. Relative of Key Management Personnel:

1. Mr. Amratji Rajput Brother in Law of Chairman

2. Ms. Heenaben Rajput Daughter of Chairman

3. Ms. Bhavnaben Thakkar Daughter of Managing Director

4. Mr. Deepak HarvaniSon in Law of Managing Director

NOTE-5

Pursuant to approval of the shareholders of the Company in the Extra Ordinary General Meeting held on 6th September, 2007, the Company had issued and allotted through Initial Public Offering (IPO) 7158392 equity shares of Rs. 10 each at premium of Rs. 185 per share. The issue has been made in accordance with the terms of Company's Prospectus dated 20th May, 2008. Subsequently, pursuant to provisions of Section 61 of the Companies Act, 1956 the members, in an Extra Ordinary General Meeting of the Company held on 27th February, 2010, approved the amendments in the objects/utilizations of funds as stated "Objects" of the issue in prospectus dated 20th May, 2008.

The unutilized funds have been invested in inter corporate deposits included under "Loans and Advances "in Note- 14 of Balance Sheet.

NOTE-6

The Ministry of Corporate Affairs, Government of India, vide General Circular No -2 and 3, dated 8th February, 2011 and 21st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circulars. The Company has satisfied the conditions stipulated in the circulars and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

NOTE-7

In accordance with principles of Prudence and other applicable guidelines and as per Accounting Standards notified by the Companies (Accounting standards) Rules, 2006 the Company has charged amounts of Rs. 637.38 Lacs (Previous Year of Rs. Nil ) to profit and loss Account in respect of derivative contracts remaining unsettled at the end of the year.

NOTE-8

A sum of Rs. 35.32 Lacs (Prev. Year Rs. 9.75 Lacs) is included under Manufacturing and other expenses representing net prior period items.

NOTE-9

The Company has paid dividend in respect of shares held by Non-residents on repartition basis. The details of dividend amounts remittable in this respect are given here in below.


Mar 31, 2011

1. (a) Previous year's figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.

(b) Figures have been rounded off to nearest of rupee in lacs.

2. (a) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value, as stated in the balance sheet if realized, during the ordinary course of business.

(b) Letters of Credit outstanding has been netted off by margin money given as security Rs. 7,266.00 lacs (Previous Year Rs. 6,560.00 lacs) for effective presentation.

(c) Interest income has been shown as deduction from interest paid for loans in Profit and Loss account for proper presentation.

3. The Company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme"(EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of Rs. 5,106.24 lacs (Approx) (Previous year Rs. 5,414.84 lacs) to be fulfilled during a specified period as applicable from the date of imports .The liability towards custom duty payable there on in respect of unfulfilled export obligation as on 31st March, 2011 of Rs. 638.28 lacs. (Previous year Rs. 676.85 lacs) is not provided for.

4. The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any, will be made when accounts are reconciled / settled.

5. Quantitative information to the extent applicable for the year pursuant to paragraph 3 & 4 of part II of schedule (VI) to the Companies Act, 1956 (As certified by the management)

6. Contingent Liabilities

(Rs. in lacs)

31st March, 2011 31st March, 2010

(a) For letter of credit opened for which goods were in transit 6,836.87 4,917.11

(b) Guarantee given to banks. 1,470.84 35.40

(c) For Corporate guarantee given 2,0367.25 16,936.16

(d) Claims against the Company not acknowledged as debts 783.16 1,331.24

7. Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances) Rs. 92.20 lacs (Previous year Rs. 1,272.46 lacs)

8. Term Loans from Banks are secured by equitable mortgage of land and building situated at Gandhidham and Haldia, hypothecation of specified machinery at Gandhidham, Haldia and Sidhpur units and wind Turbines. Further secured by second charge on current assets of the Company. Working Capital loans are secured by hypothecation of stock, book debts and other current assets of the Company. Term loan repayable within one year Rs. 4,386 lacs. (Previous year Rs. 3,182 lacs).

9. The disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro, Small and Medium Enterprises Development Act, 2006. (MSMED) are not furnished in view of the non-availability of information with the Company from such Enterprises.

10. Segment Reporting: Hitherto the management had identified two primary business segments viz. Edible oil business and non-edible oil businesses. Due to changes in the internal reporting system and organization structure based on the guiding principles given in Accounting Standard on "Segment Reporting (AS-17)" issued by the Institute of Chartered Accountant of India, the management reviewed and reclassified its primary business segments as "Agro based commodities" which incorporates product groups viz. Soybean, palm line ,cotton seed oil, sun flower oil, mustard seed oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oil seeds, its bye products and other agro- commodities which have similar production process, similar methods of distribution and have similar risks and returns. Hence the primary segment information is being reported based on this classification from this year.

As per Accounting Standard (AS) -17 on" Segment Reporting "Segment information has been provided under the notes to Consolidated Financial Statement.

11. Related Party Disclosures :- Disclosures as required by Accounting standard 18 "Related Party Disclosures" are given below.

(A) Related Party

1. Gokul Overseas : A Firm in which some of the Directors and Company are partners.

2. Maurigo International Ltd. : Wholly owned subsidiary

3. Maurigo Pte Ltd. : Wholly owned subsidiary

4. Professional Commodity

Services Pvt. Ltd. : Wholly owned subsidiary

5. Gujarat Gokul Power Ltd. : Associate Company

6. Gokul Foundation : Charitable Trust where Key Management Personnel (KMP) are Trustees

7. Shree Bahuchar Jan Seva Trust : Charitable Trust where Key Management Personnel (KMP) are Trustees

(B) Key Management Personnel

1. Shri B.C. Rajput : Chairman and Managing Director

2. Shri K.J.Thakkar : Managing Director

3. Shri D.H.Sharma : Whole Time Director (upto 31.07.2010)

(C) Relative of Key Management Personnel

1. Shri Amratji Rajput : Brother in Law of Chairman

2. Shri Sunil Sharma : Brother of Whole time Director

3. Ms. Heenaben Rajput : Daughter of Chairman

4. Ms. Bhavnaben : Daughter of Managing Director

5. Shri Deepak Harwani : Son in Law of Managing Director

12. The Deferred tax liability of Rs. 271.98 lacs (previous year Rs. 1,272.87 lacs) has been recognized in the profit and loss account.

13. Loans and Advances Include amount due from Subsidiary Companies and related Companies.

14. Disclosures pursuant to Accounting Standard -15 (Revised) " Employee Benefits"

(A) The Company has recognised as an expense in the profit and loss account in respect of defined contribution plan Rs. 37.08 lacs ( Previous year Rs. 30.81 lacs) administered by the Government.

(B) Defined benefit plan and long term employment benefit: A General description:

Gratuity [Defined benefit plan]:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy.

Leave wages [Long term employment benefit]

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

15. Disclosures in respect of derivative Instruments (a) Derivative Instrument outstanding

(b) All the derivative instruments have been acquired for hedging purpose.

(c) Foreign Currency exposure that are not hedged by derivative instruments

16. Mutual fund Transactions

During the year the Company has purchased and redeemed the following investments in mutual funds

17. Pursuant to approval of the shareholders of the Company in an Extra Ordinary General Meeting held on September 6th, 2007,the Company had issued and allotted through Initial Public Offering (IPO) 71,58,392 equity shares of Rs. 10 each at premium of Rs.185 per share. The issue has been made in accordance with the terms of Company's Prospectus dated 20th May, 2008. Subsequently, pursuant to provisions of Section 61 of the Companies Act, 1956 the Members, in an Extra Ordinary General Meeting of the Company held on 27th February, 2010, approved the amendments in the objects/utilizations of funds as stated "Objects" of the issue in prospectus dated 20th May, 2008.

18. All fixed assets and current assets of the Company both present and future are mortgaged/hypothecated in favour of Company's bankers for securing various fund/non fund based facilities granted by consortium banks.

19. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3, dated 8th February, 2011 and 21st February, 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circulars. The Company has satisfied the conditions stipulated in the circulars and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

20. In accordance with principles of Prudence and other applicable guidelines and as per Accounting Standards notified by the Companies (Accounting standards) Rules, 2006, the Company has charged an accounts of Rs. NIL (Previous year of Rs.Nil) to profit and loss Account in respect of derivative contracts remaining unsettled at the end of the year.

21. A sum of Rs. 9.75 lacs (Previous year Rs. 30.95 lacs) is included under Manufacturing and other expenses representing net prior period items.

22. Particulars of the Balance Sheet abstract and the Company general Business Profile, Pursuant to part IV of the Companies Act, 1956 is attached herewith Signature to Schedules 1 to 20.


Mar 31, 2010

1. (a) Previous years figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.

(b) Figures have been rounded off to nearest of rupee in Lacs.

2. (a) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value, if realized, during the ordinary course of business.

(b) Letters of Credit outstanding has been netted off by margin money given as security Rs. 6560.00 Lacs (Previous Year Rs. 5829.00 Lacs) for effective presentation.

(c) Interest income has been shown as deduction from interest paid for loans in Profit and Loss account for proper presentation.

3. The Company used to value goods lying in bonded godown on which custom duty is not paid, at cost excluding custom duty. From the current financial year the Company has changed its accounting policies and now it has valued goods lying in bonded godown inclusive of custom duty. Due to this change the stock of raw material is overstated by Rs. Nil and current liabilities is understated by Rs. Nil. There is no effect on Profit for the year.

4. Pursuant to approval of the shareholders of the company in 16th Annual General meeting held on September 12,2009 the company has sub-divided its equity shares of the face value of Rs.10/ each in to five equity shares of the face value of the Rs.2 each.

5. The company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme"(EPCG) of the Central Government. The Company has undertaken an export obligation to the extent of Rs. 5414.84 Lacs (Approx) (Previous year Rs. 9170.81 Lacs) to be fulfilled during a specified period as applicable from the date of imports The liability towards custom duty payable there on in respect of unfulfilled export obligation as on 31st March,2010 of Rs 676.85 Lacs. (Previous year Rs. 1146.35 Lacs) is not provided for.

6. The balances of sundry debtors and sundry creditors are subject to confirmation from respective parties. Necessary adjustments, if any, will be made when accounts are reconciled / setteled.

7. Quantitative information to the extent applicable for the year pursuant to paragraph 3 & 4 of part II of schedule (VI) to the Companies Act, 1956 (As certified by the management)

8. Contingent Liabilities:- (Rs in Lacs) 31-03-2010 31-03-2009 (a) For letter of credit opened for which goods were in transit 4917.11 13441.00 (b) Guarantee given to banks. 35.40 1162.00 (c) For Corporate guarantee given 16936.16 11051.00 (d) Claims against the company not acknowledged as debts 1331.24 63.73

9. Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances) Rs. 1272.46 Lacs (Previous year .Rs. 3356.43 Lacs)

10. Term Loans from Banks are secured by equitable mortgage of land and building situated at Gandhidham and Haldia, hypothecation of specified machinery at Gandhidham, Haldia and Sidhpur units and wind Turbines. Further secured by second charge on current assets of the company. Working Capital loans are secured by hypothecation of stock, book debts and other current assets of the company. Term loan repayable within one year Rs. 3182 Lacs. (Previous Year Rs. 1363.60 Lacs).

11. The disclosers as required to be made relating to Micro, Small and Medium Enterprise under the Micro, Small and medium enterprises development Act, 2006.(MSMED) are not furnished in view of the non availability of information with the company from such Enterprises.

12. Segment Reporting: As per Accounting Standard (AS) -17 on" Segment Reporting " Segment information has been provided under the notes to Consolidated Financial statement

13. Related party Disclosure. :- Disclosures as required by Accounting standard 18 "Related Party Disclosures" are given below.

(A) Related Party

1. Gokul Overseas : A Firm in which some of the Directors and company are partners. 2. Maurigo International Ltd. : Wholly owned subsidiary . 3. Maurigo Pte Ltd : Wholly owned subsidiary 4. Professional Commodity Services Pvt. Ltd. : Wholly owned subsidiary 5. Gujarat Gokul Power Ltd. : Associate Company. 6. Gokul Foundation : Charitable Trust where Key Management Personnel (KMP) are Trustees.

(B) .Key Management Personnel

(i) Mr. B.C. Rajput : Chairman and Managing Director (ii) Mr. K.J.Thakkar : Managing Director (iii) Mr.D.H.Sharma : Whole Time Director (from 01.08.2009)

25. Disclosures pursuant to Accounting Standard -15 ( Revised) " Employee Benefits"

(A) The company has recognised as an expense in the profit and loss account in respect of defined contribution plan Rs.30.81 Lacs ( Previous year Rs. 23.20 Lacs) administered by the Government.

(B) Defined benefit plan and long term employment benefit: A General description:

Gratuity [Defined benefit plan]:

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity. Gratuity is computed based on 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy

14. Pursuant to approval of the shareholders of the company in the Extra Ordinary General meeting held on September 6, 2007,the Company had issued and allotted through Initial Public Offering (IPO) 7158392 equity shares of Rs. 10 each at premium of Rs.185 per share. The issue has been made in accordance with the terms of Companys Prospectus dated May 20, 2008.Subsequently pursuant to provisions of Section 61 of the Companies Act, 1956 the members, in the Extra Ordinary General Meeting of the Company held on February 27, 2010, approved the amendments in the objects/utilizations of funds as stated "Objects" of the issue in prospectus dated May 20, 2008.

15. All fixed assets and current assets of the company both present and future are mortgaged/hypothecated in favour of companys bankers for securing various fund/non fund based facilities granted by consortium banks.

16. Particulars of the Balance Sheet abstract and the Company General Business Profile, Pursuant to Part IV of Schedule VI of the Companies Act 1956 is attached herewith.

17. A sum of Rs. 30.95 Lacs (Net credit) (Prev. Year Rs. NIL) is included under Manufacturing and other expenses representing net prior period items.

 
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