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Notes to Accounts of Jayant Agro Organics Ltd.

Mar 31, 2015

Note 1: capital commitment

Estimated amount of contracts remaining to be executed on Capital accounts amounted to Rs.900,000/- (P.Y. Rs. 5,000,000)

note 2: Micro, small and Medium Enterprises dues

The Company is in the process of identifying the Micro, Small and Medium Enterprises as defined under the "The Micro, Small and Medium Enterprises Development Act, 2006." However, based on the information so far available with the Company, the Company has no dues to micro and small enterprises during the year ended March 31, 2015.

note 3: Employee Benefit obligation

The Company has recognised, in the Statement of Profit and Loss the following amount as contribution made under defined contribution plans.

note 4: related Party disclosures:

(As identified by the Management)

Related party disclosures as required by Accounting Standard 18, "Related Party Disclosures", issued by the

Institute of Chartered Accountants of India are given below :-

Note 5: Segment Information

The business segment has been considered as the primary segment. The Company is organized into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are categorized in relation to the associated turnover of the segment.

Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Company's business or liabilities contracted have been identified to the reportable segments.

note 40: During the year, pursuant to Joint Venture Agreement, the company has subscribed to 36,000,000 share warrants of Rs. 5 each issued by Vithal Castor Polyols Pvt. Ltd. a joint venture of the company. These warrants entitle the company to subscribe 36,000,000 equity shares of Rs. 5 each fully paid upon payment at any time after the period of 7 years but on or before 20 years from the date of issue of warrants made by the said associated enterprise during the year.

note 6: Interest income include an amount of Rs.51,995,871/- received from Department of Commercial Tax in Gujarat as interest on VAT refunds.

note 7: Previous year Figures

Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification.


Mar 31, 2014

Note 1: Capital Commitment

Estimated amount of contracts remaining to be executed on Capital accounts amounted to Rs.5,000,000/- (P.Y. Rs.40,000,000)

Note 2: Outstanding Forward Contracts

Forward Contracts of Rs.1,483,743,365 (USD 24.90 Million) (PY Rs.763,437,813 (USD 13.61 Million)) are outstanding as on March 31, 2014.

Note 3: Micro, Small and Medium Enterprises Dues:

The Company is in the process of identifying the Micro, Small and Medium Enterprises as defined under the "The Micro, Small and Medium Enterprises Development Act, 2006." However, based on the information so far available with the Company, the Company has no dues to micro and small enterprises during the year ended March 31, 2014.

Note 4: Related Party disclosures:

(As identified by the Management)

Related party disclosures as required by Accounting Standard 18, "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are given below :-

a) Related Parties and their relationship :

i. Holding Company :

Jayant Finvest Limited

ii. Subsidiary companies :

Ihsedu Agrochem Private Limited

Ihsedu Coreagri Services Private Limited

Ihsedu Itoh Green Chemicals Marketing Private Limited

iii. Joint Venture :

Vithal Castor Polyols Private Limited

iv. Enterprises Controlled by directors/relatives:

Enlite Chemical Industries Limited

Gokuldas K. Udeshi Investment

Innovative Micro Systems Private Limited

Varun Leasing & Finance Private Limited

Kalyan Impex Private Limited

Gokulmani Agricom Limited

Akhandanand Engineering & Trading Company.

v. Key Management Personnel:

Mr. Vithaldas G. Udeshi - Chairman upto 14th April, 2013.

Mr. Abhay V. Udeshi - Chairman from 13th May, 2013.

Mr. Hemant V. Udeshi - Managing Director

Dr. Subhash V. Udeshi - Executive Director

Mr. Vikram V. Udeshi - Chief Financial Officer

vi. Relative of Key Management Personnel:

Mr. Varun A. Udeshi Mrs. Trupti A. Udeshi

Notes on Financial Statements for the year ended 31st March, 2014

Note 5: Segment Information

The business segment has been considered as the primary segment. The Company is organized into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are categorized in relation to the associated turnover of the segment.

Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Company''s business or liabilities contracted have been identified to the reportable segments.

Note 6:

Deputy Commissioner of commercial tax, Vadodara ("Department") has completed the re-assessment at the year end under Gujarat Value Added Tax Act, 2003 for the F.Y. 2009-10, based on the order of Gujarat Value Added Tax Tribunal ("Tribunal") dated 13.08.2012. Accordingly a refund of ''99,875,275/- has been determined and receivable by the company which includes interest on the refund of ''19,952,968/-. However Department has filed an appeal against the said order of Tribunal in Gujarat High Court. Further the Company during the re-assessment proceedings also has given an undertaking to the Department that in case Gujarat High Court reverses the decision of the Tribunal, it will be liable to pay the relevant tax including interest and penalty and hence pending the disposal of appeal by High Court, no effect of the said order passed resulting in refund has been given in accounts for the year under review.

Note 7: Previous Year Figures

Previous year figures have been regrouped/reclassified wherever neccessary to correspond with the current year''s classification.


Mar 31, 2013

Note 1: Contingent Liabilities :

(Amount in lacs Rs.)

Particulars 2013 2012

Claims against company not acknowledged as debts -

Excise/Service Tax 150.20 202.80

Income Tax 181.82 39.45

Custom 200.00

Guarantees Given on behalf of its Subsidiaries 12,320.00 9,320.00

Guarantees Given to Banks on behalf of Enterprises Controlled by Directors for Discounting of Bills 2,000.00 2,000.00

for Collateral Management Arrangement Financing Facilities 4,500.00

Liability on account of co-borrowin 810.00

Bank Guarantee Given to Peninsula Land Ltd. 72.06

Bank Guarantee Given to GSAMB 30.00 30.00

(Gujarat State Agricultural Marketing Board)

Notes:

i. Advances recoverable includes an amount of Rs.1,877,566 (P.Y. Rs.1,877,566) paid to the excise authorities under protest on account of disputed availment of Cenvat Credit of Service Tax.

ii. Unclaimed Dividend:

The balance with banks in current accounts include Rs.2,135,472 (P.Y. Rs.2,154,727) set aside for payment of dividends.

Note 2: Capital Commitment

Estimated amount of contracts remaining to be executed on Capital accounts amounted to Rs.40,000,000 (P.Y. Rs.24,000,000)

Note 3: Outstanding Forward Contracts

Forward Contracts of Rs.763,437,813 (USD 13.61 Million) (PY Rs.2,793,130,311 (USD 54.93 Million)) are outstanding as on March 31, 2013.

Note 4: Micro, Small and Medium Enterprises Dues:

The Company is in the process of identifying the Micro, Small and Medium Enterprises as defined under the "The Micro, Small and Medium Enterprises Development Act, 2006." However, based on the information so far available with the Company, the Company has no dues to micro and small enterprises during the year ended March 31, 2013.

Note 5: Related Party disclosures:

(As identified by the Management)

Related party disclosures as required by Accounting Standard 18, "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are given below :-

a) Related Parties and their relationship :

i. Holding Company :

Jayant Finvest Ltd.

ii. Subsidiary companies :

Ihsedu Agrochem Pvt. Ltd.

Ihsedu Speciality Chemicals Pvt. Ltd. (upto September 30, 2011)

Ihsedu Coreagri Services Pvt. Ltd.

Ihsedu Itoh Green Chemicals Marketing Pvt. Ltd.

iii. Enterprises Controlled by directors/relatives:

Enlite Chemical Industries Ltd.

Gokuldas K. Udeshi Investments.

Innovative Micro Systems Pvt. Ltd.

Varun Leasing & Finance Pvt. Ltd.

Kalyan Impex Pvt. Ltd.

Gokulmani Agricom Ltd.

Akhandanand Engineering & Trading Company.

iv. Associate Company :

Itoh Oil Chemicals Co. Ltd., Japan. (from January 19, 2012)

v. Key Management Personnel:

Mr. Vithaldas G. Udeshi - Chairman

Mr. Hemant V. Udeshi - Managing Director

Mr. Abhay V. Udeshi - Executive Director

Dr. Subhash V. Udeshi - Executive Director

Mr. Vikram V. Udeshi - Chief Financial Officer

vi. Relative of Key Management Personnel:

Mr. Dilipsinh G. Udeshi Mr. Mulraj G. Udeshi Mr. Jayraj G. Udeshi Mr. Hitesh J. Udeshi Mr. Varun A. Udeshi Mrs. Trupti A. Udeshi

Note 6: Debtors amounting to Rs.28.51 lacs in respect of which legal suit has been filed on account of non recovery. Company is hopeful to recover the said amount. Accordingly, no provision for doubtful debts has been made in the accounts inspite debtor being outstanding for more than 6 months.

Note 7: Segment Information

The business segment has been considered as the primary segment. The Company is organized into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are categorized in relation to the associated turnover of the segment.

Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Company''s business or liabilities contracted have been identified to the reportable segments.

Note 8: Previous Year Figures

Pursuant to the amalgamation of Ihsedu Speciality Chemicals Private Limited with the company in financial year 2011-12, the current year figures are not comparable with those of the previous year. Previous year figures have been regrouped/reclassified wherever neccessary to correspond with the current year''s classification.


Mar 31, 2012

(a) Rights, preferences and restrictions attached to equity shares: The company has one class of equity shares having a face value of Rs. 5/- each per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(b) Equity Shares held by holding company :

Holding Company#:

7,551,390 (P.Y. 5,628,519) equity shares held by Jayant Finvest Limited.

# Jayant Finvest Limited has become Holding Company w.e.f. March 28, 2012.

(1.1) loans are secured against hypothecation of Wind Mill, Vehicles, Plant and Machinery and personal guarantee of directors.

(1.2) Term Loan from banks amounting to Rs. 247,266,923 are secured against pari passu charge on all fixed assets of the Company. Term loans are collaterally secured by personal guarantee of two of directors of the Company.

(1.3) Term loan amounting to Rs. 139,861,136 is repayable in 38 monthly installments from the date of loan alongwith interest @ "BPLR" 4.25% p.a.

(1.4) Term loan amounting to Rs. 107,405,787 is repayable in 39 monthly installments from the date of loan alongwith interest @ "ICICI Bank Benchmark Advance Rate" - 2.25% p.a.

(1.5) Term loan amounting to Rs. 38,285,202 is repayable in 29 monthly installments from the date of loan alongwith interest @ "BPLR" 4.25% p.a.

(1.6) Term loan amounting to Rs. 84,354,678 is repayable in 36 monthly installments from the date of loan alongwith interest @ "BPLR" 4.25% p.a.

(BPLR - Benchmark Prime Lending Rate)

(2.1) Short term loans are secured by joint deed of hypothecation, on pari passu basis of raw material, work in process, finished goods, spares and receivables and personal guarantee of the directors. Further, collaterally secured by Equitable Mortgage of all present and future immovable properties comprising inter alia machinery, equipment, plant and spares.

* Other Non-Current Investments include capital oriented Life Insurance Policy taken in the name of one of the employee's of the Company and has been assigned in favour of the Company. As per the terms of the insurance policy, besides the amount of Rs. 10,000,000 paid during the year 2007-08. The Company has paid Rs. 100,000 each during the year 2008-09, 2009-10 and 2010-11 to keep the policy active. After the expiry of three years of the lock-in-period, the Company will have an option of claiming the amount thus accumulated along with the minimum returns guaranteed by the insurance Company. The aforesaid policy has been offered as a collateral security and duly assigned in favour of Kotak Mahindra Bank Limited against the packing credit facility availed by the Company from it.

** Other Non-Current Investments include capital oriented Life Insurance Policy taken in the name of one of the employee's of the Company and has been assigned in favour of the Company. The aforesaid policy has been offered as a collateral security and duly assigned in favour of Kotak Mahindra Bank Limited against the packing credit facility availed by the Company from it.

* Amount credited to Rupee account in India out of which Rs. 1,050,000 (RY. Rs. 900,000) amount of equity dividend has been credited to other than Rupee account in India

Note 3: Contingent Liabilities :

(Amount in lacs Rs.)

Particulars 2012 2011

Claims against company not acknowledged as debts -

Excise Duty 202.80 586.11

Service Tax - 28.04

VAT/CST - 1,483.68

Income Tax 39.45 565.69

Liability in respect of excise duty where the issue was decided in favour of the Company - 7.44

Bill Discounted 3,520.39 3,303.14

Guarantees Given on behalf of its Subsidiaries (excluding merged company) 9,320.00 10,565.00

Guarantee Given to Bank for Discounting of Bills 2,000.00 5,000.00

Bank Guarantee Given to GSAMB 30.00 30.00 (Gujarat State Agricultural Marketing Board)

Notes:

i. Advances recoverable includes an amount of Rs. 1,877,566 (P.Y. Rs. 1,877,566) paid to the excise authorities under protest on account of disputed availment of Cenvat Credit of Service Tax.

ii. Unclaimed Dividend:

The balance with banks in current accounts include Rs. 2,154,727 (P.Y. Rs. 1,996,496) set aside for payment of dividends.

iii. The Company had entered into Memorandum Of Understanding (MOU) with a party to carry out import and export trade in certain commodities. In respect of such trade, the Company has received show cause notices from the authorities for alleged violation of regulation in terms of the export value of goods under Section 14 of the Customs Act, 1962 read with Section 11 of Foreign Trade Development & Regulation Act, 1992 and rule 11 & 14 of Foreign Trade (Regulation) Rule,1993 and under Section 16 of the Foreign Exchange Management Act, 1999 read with Rule (4) of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rule, 2000. Neither any quantification has been done by the authorities of any potential penal liabilities nor is it possible to ascertain the same. The Company has been indemnified with regards to such potential liabilities by the said party with whom it has MOU.

Note 4: Amalgamation of Ihsedu Speciality Chemicals Private Limited

Pursuant to the scheme of Amalgamation ("the Scheme") of the Ihsedu Speciality Chemicals Private Limited ("ISCPL") with the Company under sections 391 to 394 of the Companies Act, 1956 sanctioned by the Hon'ble High Court of Judicature at Bombay as per their Order dated July 6, 2012, the assets and the liabilities of the ISCPL were transferred to and vested in the Company w.e.f October 1, 2011. Accordingly, the scheme has been given effect to in these accounts w.e.f. the said date. The operations of ISCPL includes manufacturing of Castor

Oil Derivatives.

The amalgamation has been accounted for under the " Amalgamation in the nature of Merger" as prescribed by AS 14 Accounting for Amalgamation". Accordingly, the accounting treatment has been given as under:

i) the assets, liabilities, reserves of ISCPL as at 1st October, 2011 have been incorporated at their book values in the financial statements of the Company.

ii) 50,000,000 equity shares of Rs. 5/- each fully paid-up of ISCPL and investments in such equity shares held by the Company stands cancelled and accordingly the difference in the value of investment and the paid-up share capital of ISCPL is taken as Capital Reserve. Refer Note 3.

iii) Authorised Share Capital of the company is being increased by Rs. 250,000,000 consisting of 50,000,000 equity shares of Rs. 5/- each subsequently to the year end as necessary filing with the authorities was done based on the order of the Bombay High Court.

Consequently, the financial statements for the year ended 31st March, 2012 includes the operation of ISCPL. Note 38: Capital Commitment

Estimated amount of contracts remaining to be executed on Capital accounts amounted to Rs. 24,000,000 (P.Y. Rs. 25,000,000)

Note 5: Outstanding Forward Contracts

Forward Contracts ofRs. 2,793,130,311 (USD 54.93 Million) (PY Rs. 2,539,421,964 (USD 55.23 Million) are outstanding as on March 31, 2012.

Note 6: Capitalization of Pre-Operative Expenses:

Pre-operative expenses as on October 1, 2011 appearing in the books of Ihsedu Speciality Chemicals Pvt. Ltd., (ISCPL) a Company amalgamated with the Company pursuant to the order of Hon'ble Bombay High Court dated July 6, 2012 u/s 391 and 394 of the Companies Act, 1956 were capitalised as a cost of Plant and Machinery and Building in the ratio of the respective costs on the date on which the said plant had began commercial production. The assets of the ISCPL have been accounted in the books of the Company accordingly.

Note 7: Related Party disclosures :

(As identified by the Management)

Related party disclosures as required by Accounting Standard 18, "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are given below

a) Related Parties and their relationship :

i. Holding Company :

Jayant Fiavest Ltd. (from 28th March, 2012)

ii. Subsidiary companies :

Ihsedu Agrochem Pvt. Ltd.

Ihsedu Speciality Chemicals Pvt. Ltd. (up to 30th September, 2011)

Ihsedu Coreagri Services Pvt. Ltd.

Ihsedu Itoh Green Chemicals Marketing Pvt. Ltd.

iii. Enterprises Controlled by directors/relatives:

Enlite Chemical Industries Ltd.

Gokuldas K. Udeshi Investments.

Innovative Micro Systems Pvt. Ltd.

Varun Leasing & Finance Pvt. Ltd.

Kalyan Impex Pvt. Ltd.

Gokulmani Real Estate Development Pvt. Ltd.

Akhandanand Engineering & Trading Company.

iv. Associate Company:

Mitsui & Co (Asia Pacific) Pte Ltd., Singapore (up to 31st August, 2011)

Mitsui & Co Ltd., Japan (up to 31s* August, 2011)

Itoh Oil Chemicals Co. Ltd., Japan, (from 19th January 2012)

v. Key Management Personnel:

Mr. Vithaldas G. Udeshi - Chairman

Mr. Hemant V. Udeshi - Managing Director

Mr. Abhay V. Udeshi - Executive Director

Dr. Subhash V. Udeshi - Executive Director

Mr. Vikram V. Udeshi - Chief Financial Officer

Mr. Sudhir V. Udeshi - Wholetime Director (of ISCPL)

vi. Relative of Key Management Personnel:

Mr. Dilipsinh G. Udeshi

Mr. Mulraj G. Udeshi

Mr. Jayraj G. Udeshi

Mr. Hitesh J. Udeshi

Mr. Varun A. Udeshi

Mrs. Trupti A. Udeshi

Note 8: Segment Information

The business segment has been considered as the primary segment. The Company is organized into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are categorized in relation to the associated turnover of the segment.

Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Company's business or liabilities contracted have been identified to the reportable segments.

Note 9: Micro, Small and Medium Enterprises Dues:

The Company is in the process of identifying the Micro, Small and Medium Enterprises as defined under the "The Micro, Small and Medium Enterprises Development Act, 2006." However, based on the information so far available with the Company, the Company has no dues to Micro Small and Medium Enterprises during the year ended March 31, 2012.

Note 10: Previous Year Figures

Pursuant to the amalgamation of Ihsedu Speciality Chemicals Private Limited with the company (Refer Note 37), the current year figures are not comparable with those of the previous year. Previous year figures have been regrouped / reclassified whereever necessary to correspond with the current years classification.


Mar 31, 2011

1. Contingent Liabilites

(Amount in Lacs)

Particulars For the Year For the Year

ended ended

March 31, 2011 March 31, 2010

Rs. Rs.

Claims against the Company not acknowledged as debts -

Excise Duty 586.11 55.87

VAT/CST 1,396.88 949.27

Service Tax 28.04 -

Liability in respect of excise duty where the issue was decided in favour of the Company for which the Department is in further appeal 7.44 7.44

Guarantees given on behalf of its subsidiaries 10,565.00 16,343.68

Guarantee given to bank for discounting of bills 5,000.00 5,000.00

Bank guarantee given to GSAMB 30.00 30.00 (Gujarat State Agricultural Marketing Board)

Notes:

i. The Company has deposited Nil (P.Y Rs.3,243,991) and furnished bank guarantee for Nil (PY. Rs.2,500,000) to the excise authority.

ii. Other investments include capital oriented Life Insurance Policy taken in the name of one of the employee's of the Company and has been assigned in favour of the Company. As per the terms of the insurance policy, besides the amount of X 100,000,000 paid during the year 2007-08. The Company has paid X 100,000 each during the year 2008-09, 2009-10 as well as current year 2010- 11 to keep the policy active. After the expiry of three years of the lock-in-period, the Company will have an option of claiming the amount thus accumulated along with the minimum returns guaranteed by the insurance company. The aforesaid policy has been offered as a collateral security and duly assigned in favour of Kotak Mahindra Bank Limited against the packing credit facility availed by the Company from it.

iii. Advances Recoverable includes an amount of X 1,877,566 (P.Y. X 1,877,566) paid to the excise authorities under protest on account of disputed availment of Cenvat Credit of Service Tax.

iv. Unclaimed Dividend:

The balance with banks in current accounts include X 1,996,496 (P.Y. X 1,896,395) set aside for payment of dividends.

v. The Company had entered into memorandum of understanding (MOU) with a party to carry out import and export trade in certain commodities. In respect of such trade, the company has received show cause notices from the authorities for alleged violation of regulation in terms of the export value of goods under Section 14 of the Customs Act, 1962 read with Section 11 of Foreign Trade Development and Regulation Act, 1992 and rule 11 & 14 of Foreign Trade (Regulation) Rule,1993 and under Section 16 of the Foreign Exchange Management Act, 1999 read with Rule (4) of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rule, 2000. Neither any quantification has been done by the authorities of any potential penal liabilities nor is it possible to ascertain the same. The Company has been indemnified with regards to such potential liabilities by the said party with whom it has a MOU.

4. Related Party Disclosures: (As identified by the Management)

Related party disclosures as required by Accounting Standard 18, "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are given below :-

a) Related Parties and their Relationship:

i. Subsidiary Companies:

Ihsedu Agrochem Pvt. Ltd.

Ihsedu Speciality Chemicals Pvt. Ltd.

Ihsedu Coreagri Services Pvt. Ltd.

Ihsedu Itoh Green Chemicals Marketing Pvt. Ltd.

ii. Enterprises Controlled by directors/relatives:

Jayant Finvest Ltd.

Enlite Chemical Industries Ltd.

Gokuldas K. Udeshi Investments

Innovative Micro Systems Pvt. Ltd.

Varun Leasing & Finance Pvt. Ltd.

Gokulmani Real Estate Development Pvt. Ltd.

Akhandanand Engineering & Trading Company

iii. Associate Company:

Mitsui & Co (Asia Pacific) Pte Ltd.,

Singapore Mitsui & Co Ltd., Japan

iv. Key Management Personnel:

Mr. Vithaldas G. Udeshi - Chairman

Mr. Hemant V. Udeshi - Managing Director

Mr. Abhay V. Udeshi - Executive Director

Dr. Subhash V. Udeshi - Executive Director

Mr. Vikram V. Udeshi - Chief Financial Officer

v. Relative of Key Management Personnel:

Mr. Dilipsinh G. Udeshi

Mr. Mulraj G. Udeshi

Mr. Jayraj G. Udeshi

Mr. Sudhir V. Udeshi

Mr. Hitesh J. Udeshi

Mr. Varun A. Udeshi

2. Segment Information

The business segment has been considered as the primary segment. The Company is organized into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainders of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Company's business or liabilities contracted have been identified to the reportable segments.

3. Estimated amount of contracts remaining to be executed on Capital Accounts amounted to Rs.25,000,000/- (P.Y. Rs.60,000,000/-).

4. Forward contracts of Rs.2,539,421,964 (USD 55.231 Million) are outstanding as on March 31, 2011.

5. Previous year figures have been recast/re-grouped wherever necessary to conform to Current Year's presentation.

6. Figures have been rounded off to the nearest of a Rupee.


Mar 31, 2010

1. Contingent Liabilities

(Amount in Lacs)

For the year ended For the year ended Particulars March 31,2010 March 31,2009



Claims against the Company not acknowledged as debts - Excise Duty 55.87 55.87

VAT 949.27 -

Liability in respect of excise duty where the issue was decided in 7.44 7.44

favour of the Company for which the Department is in further appeal

Guarantees given on behalf of its subsidiaries 16,343.68 8,067.68

Guarantees given on behalf of farmers for purchase of castor seed - 1,900.00

Guarantees given to bank for discounting of bills 5,000.00 2,500.00

Bank guarantee given to GSAMB (Gujarat State Agricultural 30.00 30.00 Marketing Board)



Notes: i. The Company has deposited 3,243,991/- (P.Y. 3,243,991/-) and furnished bank guarantee for 2,500,000/- (P.Y. 2,500,000/-) to the excise authority.

ii. Other investments include capital oriented Life Insurance Policy taken in the name of one of the employee of the Company and has been assigned in favour of the Company. As per the terms of the insurance policy, besides the amount of 10,000,000/- paid during the year 2007-2008. The Company has paid 100,000/- each during the previous year 2008-2009 as well as current year 2009-2010 to keep the policy active. After the expiry of three years of the lock-in-period, the Company will have an option of claiming the amount thus accumulated alongwith the minimum returns guaranteed by the insurance company. The aforesaid policy has been offered as a collateral security and duly assigned in favour of Kotak Mahindra Bank Limited against the packing credit facility availed by the Company from it.

iii. Advances Recoverable includes an amount of 1,877,566/- (P.Y. 1,877,566/-) paid to the excise authorities under protest on account of disputed availment of Cenvat Credit of Service Tax.

iv. Unclaimed Dividend:

The balance with banks in current accounts include 1,896,395/- (P.Y. 1,643,193/-) set aside for payment of dividends.

v. The Company had entered into memorandum of understanding (MOU) with a party to carry out import and export trade in certain commodities. In respect of such trade, the company has received show cause notices from the authorities for alleged violation of regulation in terms of the export value of goods under Section 14 of the Customs Act, 1962 read with Section 11 of Foreign Trade Development Regulation Act, 1992 and Rule 11 & 14 of Foreign Trade (Regulation) Rule, 1993 and under Section 16 of the Foreign Exchange Management Act, 1999 read with Rule (4) of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rule, 2000. Neither any quantification has been done by the authorities of any potential penal liabilities nor is it possible to ascertain the same. The Company has been indemnified with regards to such potential liabilities by the said party with whom it has a MOU.

vi. The Company has received a notice of demand from Gujarat VAT authorities claiming VAT of ? 949.27 lacs including interest Rs. 215.00 lacs and penalty Rs. 440.00 lacs on self consumption of De-Oiled Cake used in the boiler on the ground that raw-material purchased is used as fuel.

Note : Remuneration comprises of Salary, Allowances, Companys Contribution to Provident Fund and Leave Encashment and excludes contribution to Gratuity Fund.

2. Related Party Disclosures: (As identified by the Management)

Related party disclosures as required by Accounting Standard J 8, "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are given below :-

a) Related Parties and their Relationship:

i. Subsidiary Companies:

Ihsedu Agrochem Pvt. Ltd.

Ihsedu Speciality Chemicals Pvt. Ltd.

Ihsedu Coreagri Services Pvt. Ltd.

ii. Enterprises Controlled by directors/relatives:

Jayant Finvest Ltd.

Enlite Chemical Industries Ltd.

Gokuldas K. Udeshi Investment

Innovative Micro Systems Pvt. Ltd.

Varun Leasing & Finance Pvt. Ltd.

Gokulmani Real Estate Development Pvt. Ltd.

Akhandanand Engineering & Trading Company

iii. Associate Company:

Mitsui & Co (Asia Pacific) Pte Ltd., Singapore Mitsui & Co Ltd., Japan

iv. Key Management Personnel:

Mr. Vithaldas G. Udeshi - Chairman

Mr. Hemant V. Udeshi - Managing Director

Mr. Abhay V. Udeshi - Executive Director

Dr. Subhash V. Udeshi - Executive Director

Mr. Deepak V. Bhimani - Independent Director

Mr. Jaysinh V. Mariwala - Independent Director

Mr. Vijaykumar Bhandan - Independent Director

Mr. Mukesh C. Khagram - Independent Director



v. Relative of Key Management Personnel:

Mr. Dilipsinh G. Udeshi

Mr. Mulraj G. Udeshi

Mr. Jayraj G. Udeshi

Mr. Sudhir V. Udeshi

Mr. Bharat M. Udeshi

Mr. Vikram V. Udeshi

Mr. Hitesh J. Udeshi

Notes:

1. The above information has been reckoned on the basis of information available with the Company.

2. Figures in brackets are in respect of the Previous Year.

Note: 1 Production procured from other is shown in actual production. Note: 2 Production is net of consumption.

3. Capital Reserve represents amount forfeited, being the amount received @ ? 10.50 per warrant on 1,700,000 warrants issued in the earlier year.

4. Segment Information

The business segment has been considered as the primary segment. The Company is organised into three business segments namely Castor Oil, Derivatives and Power Generation. These business segments have been identified considering the customers, the differing Risks and Returns and the Internal Financial Reporting System. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and the amounts allocated on a reasonable basis. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. These are as set out in the significant accounting policies. Income and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while the remainder of the costs are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying services are used interchangeably. The Company believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Fixed assets used in the Companys business or liabilities contracted have been identified to the reportable segments. Amounts credited to Rupee Account in India out of which Rs. 750,000/- amount of equity dividend has been credited to other than Rupee Account in India.

5. Estimated amount of contracts remaining to be executed on Capital Accounts amounted to Rs. 60,000,000/- (P.Y. Rs. NIL)

6. Previous year figures have been recast/re-grouped wherever necessary to conform to Current Years presentation.

7. Figures have been rounded off to the nearest of a Rupee.















 
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