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Notes to Accounts of Gokul Agro Resources Ltd.

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when the Company has a present
obligation (legal or constructive) as a result of past events
and it is probable that the outflow of resources will be
required to settle the obligation and in respect of which
reliable estimates can be made.

A disclosure for contingent liability is made when there is a
possible obligation that may, but probably will not require
an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision/
disclosure is made. The Company does not recognize a
contingent liability but discloses its existence in the

financialstatements.

Contingent assets are not recognized in the financial
statements. Provisions and contingencies are reviewed at
each balance sheet date and adjusted to reflect the correct
management estimates.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
Commitments include the amount of purchase order (net
of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and
commitments are renewed at each balance sheet date.

3.13 Cash and Cash Equivalents

Cash and cash equivalent comprise cash on hand and
demand deposits with banks which are short-term, highly
liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk
ofchangesinvalue.

3.14 Exceptional items

Certain occasions, the size, type or incidence of an item of
income or expense, pertaining to the ordinary activities of
the Company is such that its disclosure improves the
understanding of the performance of the Company, such
income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the
financialstatements.

Mar 31, 2021

1. Terms / Rights attached to Equity Shares:

- The Company has only one class of equity share having par value of Rs. 2/-per share. Each holder of equity share is entitled to one vote pershare.

- In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Terms / Rights attached to Preference Shares:

- Loan from Directors of Rs. 4,500 Lakhs was converted into 45,00,000 Redeemable Non Convertible - Non Cumulative Preference Shares ofRs. 100/-each and the said shares were allotted to the same Director i.e. Mr. Kanubhai JivatramThakkar on 26.03.2020.

- The Company has outstanding 45,00,000 0.01% Non-Cumulative Redeemable Preference Shares ofRs. 100/- each ranking pari passu with the existing shares.

- In the event of liquidation of the Company, the holder of Redeemable Non Convertible - Non Cumulative Preference Shares (before redemption) will have priority over equity shares in the payment of dividend and repayment of capital. The preference shares carry fixed dividend which is non-discretionary.

i. NA Land & Building situated at R.S. No. 89/paiki, bearing plot no. 1,5,6,9 to 11,15 to 18,23 to 26, 31 to 34, 39 to 42, forming part of R.S. no. 89, 90,98 & 99 and plot no. 1 & 1A of amalgamated R.S. no. 89(paiki), Meghpar Borichi, Galapadar Road, Nr. Sharma resort, Tal. Anjar, Dist. Kutch. (Land admeasuring 76,893 sq. mts. including area of 46,136 sq. mts. for plot no. 1,5,6, 9 to 11,15 to 18, 23 to 26,31 to 34,39 to 42.

ii. NA Land and Building situted at R.S. no. 80 (Plot no. 22 to 52 and 68 to 76) & 91 (Old Survey no. 73), Meghpar Borichi, Galapadar Road, Nr. Sharma resort, Tal. Anjar, Dist. Kutch. (Land admeasuring 1,35,469 Sq. mts. including Plot no. 22 to 52 & 68 to 76 -42,136.38Sq. mts., (i.e. 93,786sq. mts. of S.No. 80/part) and 41,682Sq. mts. ofS.No. 91)

iii. All Fixed Assets of the company (both present & future) incl. Plant & Machinery, Furniture & Fixture and other ancilliary assets:

a) NA Land at LS No. 34/2 (Wind Farm - V05) at Motisindholi, Phase I, Vanku, Kutch - 370640 & Hypothecation of windmill thereon (Land admeasuring area 4,350 sq. mts.)

b) OneSuzlon make wind mill having identification nos. M16 installed at L.S. No. 114/p, village Kadoli, Phase II, Taluka - Abdasa, Kutch - 370640 (Leasehold Land admeasuring 10,000Sq. Mts.)

c) Windmill installed at L.S. No. 289/8p/1p, Wind Farm - ADO-33, Village - Ratanpur, Phase I, Ta. & Dist. Porbandar - 360575 (Leasehold land admeasuring10,000Sq. Mts.)

2. First pari pasu charge by way of pledge of 1.50 Cr. Shares of GARL out of the shares held by Promotor Director.

3. These credit facilities are secured by personal guarantees of Mr. Kanubhai J.Thakkar, Mr. Jayesh K. Thakkar, Mr. Dipakkumar KThakkar & Mr. Nilesh KThakkar.

4. FDRofRs. 5.65Cr.

*As per the scheme of the de-merger as approved by the High Court of Gujarat, the company shall be responsible for any disputed statutory liability of the Gandhidham Undertaking if any payable by the demerged company.

Note: -35: Event Occurring After Balance Sheet

There is no significant subsequent event that would require adjustments or disclosure in the financial statements as on the balance sheet date. Note: -36: Assessment of Impact of Covid-19 Pandemic

In March 2020, the World Health Organization has declared Covid-19, a global pandemic. Consequent to this, Government of India declared a nation-wide lockdown and later on the same was lifted with some restrictions. The company remains watchful of the potential impact of Covid-19 pandemic, particularly the "second wave" on continuous basis. The company''s management has continued to make the assessment of likely adverse impact on business and financial risks. As per current assessment, there are no significant impact on carrying amount of property, plant and equipments, inventories, goodwill, intangible assets, trade receivables, investments and other financial assets is expected, and the management is continue to monitor changes in future economic conditions.

Being a part of the essential commodity industry, the company was allowed to continue its operations/manufacturing activities of it''s units with minimum labour and staff as suggested by Government from time to time, hence the company was able to manage the same at optimum level.

From the measure taken above, the management believes that there is not much adverse impact on the business and financial risk and believes that the impact is likely to be short term in nature. The management does not see any medium to long term risk on the company''s ability to continue as a going concern and meeting its liabilities as and when they become due subject to the situation doesn''t worsen from the current position of the pandemic.

Given the uncertainties associated with nature, condition and duration of covid-19 pandemic, the impact on the company''s financial statements will be continuously made and provided for as and when required. However, a definitive assessment of the impact in the subsequent period is highly dependent upon the circumstance they evolve.

Note: -37:

Previous year''s compiled 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.

Note: -38:

Balances of Trade Payables, Trade Receivables, Receivables / Payables from / to various parties / authorities, Loans &advances are subject to confirmation from the respective parties, and necessary adjustments if any, will be made on its reconciliation.

Note:-39:

In the Opinion of the Board of Directors the aggregate value of current assets, loans and advances on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

Note:-40:

Valuation techniquesand significant unobservable inputs:

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Note:-50: Financial Risk Management Objectives & Policies:

and trade & other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets include Investments, loans given, trade and other receivables and cash & short-term deposits that derive directly from its operations. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The company has exposure to the following risks arising from financial instruments: -

(i) Market Risk

(a) Currency Risk

(b) Interest Rate Risk

(d) Equity Risk

(ii) Credit Risk and

(iii) Liquidity Risk

Risk Management Framework

The Company''s activities expose it to variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management is to minimize potential adverse effects of risk on its financial performance. The company''s risk management assessment policies and processes are established to identify and analyze the risk faced by the company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s Activity. The Board of Directors and Audit Committee are responsible for overseeing these policies and processes.

In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency exposures. Derivatives are used exclusively for hedging purposes and not as trading/speculative instruments.

(i) Market Risk:-

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices, commodity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.

(a) Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss of the company, where any transactions has more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risk primarily relates to fluctuations in U.S. dollar and Euro, against the respective functional currencies (INR) of Gokul Agro Resources Limited.

The company, as per its risk management policy, uses its foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The company does not use derivative financial instruments for trading or speculative purpose.

Exposure to Currency Risk

Refer Note no. 47 for foreign currency exposure as at March 31,2021 and March 31,2020 respectively.

Sensitivity Analysis: -

A 1%Increase/Decreaseofthe respective foreign currencies with respect to functional currency of company would result in increase or decrease in profit or loss as shown in the table below. The following analysis has been worked out based on the exposure as of the date of statement of financial position.

interest rates. The company''s exposure to market risk for changes in interest rates relates to borrowings from financial institutions. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

The prices of agricultural commodities are subject to wide fluctuations due to unpredictable factors such as weather, government policies, changes in global demand resulting from population growth and changes in standards of living and global production of similar and competitive crops. During its ordinary course of business, the value of the Company''s open sales and purchases commitments and inventory of raw material changes continuously in line with movements in the prices of the underlying commodities. To the extent that its open sales and purchases commitments do not match at the end of each business day, the Company is subjected to price fluctuations in the commodities market.

While the Company is exposed to fluctuations in agricultural commodities prices, its policy is to minimise its risks arising from such fluctuations by hedging its sales either through direct purchases of a similar commodity or through futures contracts on the commodity exchanges.

In the course of hedging its sales either through direct purchases or through futures, the Company may also be exposed to the inherent risk associated with trading activities conducted by its personnel. The Company has in place a risk management system to managesuch riskexposure.

(d) EquityRisk

Equity Price Risk is related to the change in market reference price of the investments in equity securities. The fair value of some of the Company''s investments in Fair value through profit and loss account, securities exposes the Company to equity price risks. In general, these securities are held for trading purposes. These investments are subject to changes in the market price of securities.

(ii) CreditRisk

Credit risk arises from the possibility that a customer or counter party may not be able to settle their contractual obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring and the asset at the reporting date with the risk of default as the date of initial recognition. It considers reasonable and supportiveforwarding-lookinginformation such as:

i. Actual or expected significant adverse changes in business.

ii. Actual or expected significant changes in the operating results of the counterparty.

iii. Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to mere its obligation.

iv. Significant increase in credit risk on other financial instruments of the same counterparty.

v. Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.

A. Trade and Other Receivables:-

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

III. Provision for expected credit losses against "I" and "II" above:

The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of above mentioned financial assets, except otherwise stated above.

B. Cash and cash equivalents

The Company holds cash and cash equivalents with credit worthy banks and financial institutions of Rs.2,835.06 Lakhs as at March 31, 2021 [FY 2019-2020 Rs. 2,716.41 Lakhs].The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

C. Derivatives

The derivatives are entered into with credit worthy banks and financial institution on counterparties. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

D. Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

(iii) Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company also constantly monitors various funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As of March 31,2021, the Company has working capital of Rs. 9,397.45 Lakhs [March 31,2020 Rs. 6,085.59 Lakhs] including cash and cash equivalents of Rs. 2,835.06 Lakhs [March 31, 2020 Rs. 2,716.41 Lakhs] investments in term deposits (i.e., bank certificates of deposit having original maturities of less than 3 months & more than 3 months and less than 12 months) of Rs. 11,516.00 Lakhs [March 31, 2020 Rs. 10,186.74 Lakhs].

Exposure to Liquidity Risk

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

Mar 31, 2018

Note: - 1 : CORPORATE INFORMATION

Gokul Agro Resources Limited (the company) is a public limited company and listed on Bombay Stock Exchange (BSE) & National Stock Exchange (NSE), domiciled in India and incorporated under the provisions of the Companies Act, 2013. The company is engaged in business of Manufacturing & Trading of Edible & Non-Edible Oil, Meals and other Agro Products.

Note: - 2 : BASIS OF PREPARATION

a) Basis of preparation

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2017. The transition from previous GAAP to Ind AS has been accounted for in accordance with the Ind AS 101 "First Time Adoption of Indian Accounting Standards", with April 1, 2016 being the transition date. In accordance with the Ind AS 101 "First time adoption of Indian Accounting Standard", the Company has presented a reconciliation [from the presentation of financial statements under accounting standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") to Ind AS] of total equity as at April 1, 2016, March 31, 2017 and Statement of Profit and Loss for the year ended March 31, 2017 (Refer Note 50 for information on how the company has adopted Ind AS).

b) Functional and presentation currency

These financial statements are presented in Indian rupees, which is the Company''s functional currency. All amounts have been rounded to the nearest lakh, unless otherwise indicated.

c) Basis of measurement

The financial statements have been prepared on historical cost basis, except certain financial assets and liabilities which have been measured at fair value, defined benefits plan and contingent consideration. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle to be of 12 months for the purposes of current / non-current classification of assets and liabilities.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

a. Expected to be realized or intended to be sold or consumed in normal operating cycle

b. Held primarily for the purpose of trading

c. Expected to be realized within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

a. It is expected to be settled in normal operating cycle

b. It is held primarily for the purpose of trading

c. It is due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Note: -2A : USE OF ESTIMATES

The preparation of financial statements requires the use of accounting estimates which, by definition, will often equal the actual results. Management also needs to exercise judgment in applying the group''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be adjusted due to estimates and assumptions turning out to be different from those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates and judgments

The areas involving critical estimates or judgments are:

a) Estimation of current tax expense and payable - Refer accounting policies - 3.9

b) Estimated useful life of property, plant & equipment and intangible assets - Refer accounting policies -3.1

c) Estimation of defined benefit obligation - Refer accounting policies -3.8

d) Estimation of fair values of contingent liabilities - Refer accounting policies -3.12

e) Recognition of revenue - Refer accounting policies - 3.4

f) Recognition of deferred tax assets for carried forward tax losses - Refer accounting policies -3.9

g) Impairment of financial assets - Refer accounting policies - 3.2 &3.5

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the group and that are believed to be reasonable under the circumstances.

Investments in Subsidiaries are measured at cost and tested for impairment. Impairment(if any) denotes permanent diminution and charged to Statement of Profit and loss. Impairment in cases of unlisted securities is determined based on the valuation reports and in case of listed securities the same is determined based on the prevaling market prices.

Note :

Inventories are valued at Cost or Market value which ever is less except Raw Materials, which is valued at Cost.

Note :

1. Fixed Deposits of Rs. 7,445.00 Lakhs (Previous Year :Rs.18,938.39 Lakhs) (01.04.2016 : Rs.20,682.30 Lakhs) are pledged as margin money with respective banks for letter of credit issued to trade payables.

2. Fixed Deposits of Rs.3,989.41 Lakhs (Previous Year : Rs.883.97 Lakhs) (01.04.2016 : Rs. NIL) are pledged as 100% Collateral Security & Deposit.

**Shantiniketan Financial Services Private Limited had been amalgamated into M/s. Jashodaben Commodities Private Limited vide Regional Director''s order dated 28th March, 2017 which had been subsequently converted into M/s. Jashodaben Commodities LLP with effect from 31st March, 2017, but shares are still registered in the name of the Shantiniketan Financial Services Private Limited.

*For the Financial Year 2016-17, PBT as per Indian GAAP has been considered for the purpose of reconciliation of the effective Tax Rate, because the same has already been considered for all the Income Tax Related Purposes.

The Company has not defaulted in the repayment of any loan and interest during the reporting period.

The rate of interest for Export Packing credit /overdraft is in the range of 9.55% to 10.95% P.A. (Previous Year : 9.55% to 10.95% P.A.) (01.04.2016 : 10.00 % to 13.50 % P.A.)

Primary Security:-

Export Packing Credit/ Overdraft loans from consortium of banks are secured by hypothecation of current assets of the company on paripassu basis.

Collaterally Security:-

1. First paripassu charge by way of mortgage on following immovable properties of the Company :

i. NA Land & Building situated at R.S. No. 89/paiki, bearing plot no. 1,5,6,9 to 11, 15 to 18, 23 to 26, 31 to 34, 39 to 42, forming partof R.S. no. 89, 90, 98 & 99 and plot no. 1 & 1A of amalgamated R.S. no. 89(paiki), MeghparBorichi, Galapadar Road, Nr. Sharmaresort, Tal. Anjar, Dist. Kutch. (Land admeasuring 76,893 sq. mts. including area of 46,136 sq. mts. for plot no. 1,5,6, 9 to 11, 15 to 18, 23 to 26, 31 to 34, 39 to 42.

ii. NA Land and Building situted at R.S. no. 80 (Plot no. 22 to 52 and 68 to 76) & 91 (Old Survey no. 73), MeghparBorichi, Galapadar Road, Nr. Sharma resort, Tal. Anjar, Dist. Kutch. (Land admeasuring 1,35,469 Sq. mts. including Plot no. 22 to 52 & 68 to 76 -42,136.38 Sq. mts., (i.e. 93,786 sq. mts. of S.No. 80/part) and 41,682 Sq. mts. of S.No. 91)

iii. All Fixed Assets of the company (both present & future) incl. Plant & Machinery, Furniture & Fixture and other ancilliary assets:

a) NA Land at LS No. 34/2 (Wind Farm - V05) at Motisindholi, Phase I, Vanku, Kutch - 370640 & Hypothecation of windmill thereon (Land admeasuring area 4,350 sq. mts.)

b) One Suzlon make wind mill having identification nos. M16 installed at L.S. No. 114/p, village Kadoli, Phase II, Taluka - Abdasa,Kutch - 370640 (Leasehold Land admeasuring 10,000 Sq. Mts.)

c) Windmill installed at L.S. No. 289/8p/1p, Wind Farm - ADO-33, Village - Ratanpur, Phase I, Ta. & Dist. Porbandar- 360575 (Leasehold land admeasuring 10,000 Sq. Mts.)

2. First parupasu charge by way of pledge of 1.50 Cr. Shares of GARL out of the shares held by Promotor Director.

3. These credit facilities are secured by personal guarantees of Mr.Kanubhai J. Thakkar and Mr.Jayesh K. Thakkar.

The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with the company.

Note:

* The Government of lndia introduced the Goods and Services tax (GST) with effect from 1st July, 2017. GST is collected on behalf of the Government and no economic benefit flows to the entity and does not result in an increase in equity, consequently revenue from the period 1st July, 2017 to 31st March, 2018 is presented net of GST. Sales of earlier periods included excise duty which now subsumed in GST. Current Year Sales includes excise duty up to 30th June,2017, Excise duty to that extent forms part of the profit and loss account as a separate line item.

** Operating revenue includes contract settlement gain/(Loss), profit on exchanges and export incentive.

The company has recognised as an expenses in profit and loss account in respect of defined contribution plan Rs.76.32 Lakhs (Previous Year : Rs.62.90 Lakhs) administrated by government.

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-3 :

There are no significant subsequent event that would require adjustments or disclosure in the financial statements as on the balance sheet date.

Note-4 :

Note-5 :

Balances of Sundry Creditors, Debtors, Receivables / Payables from / to various parties / authorities, Loans & advances are subject to confirmation from the respective parties, and necessary adjustments if any, will be made on its reconciliation. Note-38 :

Note-6 :

Disclosure pursuant to regulation 34(3) and 53(f) of schedule V of the SEBI (Listing obligation and disclosure requirements) Regulations, 2015.

Note-7 :

Details of Loans given, Investment made and guarantee given under section 186(4) of the Companies Act, 2013

i. Investment made/Guarantees/Securities given : NIL

ii. Details of Closing Balances of Loans and Advances Given to parties covered under section 186 of the Companies Act, 2013

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.

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

Measurement of Fair Values:

Valuation techniques and significant unobservable inputs:

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1 : quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 : inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 : inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Note-8 : Financial Risk Management Objectives & Policies:

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The company''s financial risk management policy is set by the Managing Board. The Company''s principal financial liabilities, other than derivatives, comprise borrowings and trade & other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets include Investments, loans given, trade and other receivables and cash & short-term deposits that derive directly from its operations. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The company has exposure to the following risks arising from financial instruments: -

(i) Market Risk

(a) Currency Risk

(b) Interest Rate Risk

(d) Equity Risk

(ii) Credit Risk and

(iii) Liquidity Risk

Risk Management Framework

(i) Market Risk:-

(a) Currency Risk

Exposure to Currency Risk

Refer Note no. 47 for foreign currency exposure as at March 31, 2018 and March 31, 2017 respectively.

Sensitivity Analysis: -

A 1% Increase/Decrease of the respective foreign currencies with respect to functional currency of company would result in increase or decrease in profit or loss as shown in the table below. The following analysis has been worked out based on the exposure as of the date of statement of financial position.

(b) Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company''s exposure to market risk for changes in interest rates relates to borrowings from financial institutions. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

(d) Equity Risk

(ii) Credit Risk

i. Actual or expected significant adverse changes in business.

ii. Actual or expected significant changes in the operating results of the counterparty.

iii. Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to mere its obligation.

iv. Significant increase in credit risk on other financial instruments of the same counterparty.

v. Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.

A. Trade and Other Receivables: -

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The ageing analysis of these receivables (gross of provision) has been considered from the date of the Invoice.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

III. Provision for expected credit losses against "I" and "II" above:

B. Cash and cash equivalents

The Company holds cash and cash equivalents with credit worthy banks and financial institutions of Rs.6,509.24 Lakhs as at March 31, 2018 [FY 2016-2017 Rs. 18,115.87 Lakhs]. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

C. Derivatives

D. Investments

(iii) Liquidity Risk

As of March 31, 2018, the Company has working capital of Rs.423.27 Lakhs [ March 31, 2017 Rs.1,238.55 Lakhs] including cash and cash equivalents of Rs.6,509.24 Lakhs [March 31, 2017 Rs.18,115.87 Lakhs] investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months and less than 12 months) of Rs.5,674.12 Lakhs [March 31, 2017 Rs.5,322.89 Lakhs].

Exposure to Liquidity Risk

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

Capital Management

The purpose of the Company''s capital management is to maximise shareholder value. It includes issued capital and all other equity reserves. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants. The company monitors its Capital using Debt-Equity Ratio, which is total debt divided by total equity.

Note-9 : Transition to IND-AS First Time Adoption of IND-AS:

The company has prepared its first Financial Statements in accordance with Ind AS for the year ended March 31, 2018. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with Indian GAAP, including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Company''s Ind AS Opening Balance Sheet is 1 April 2016 (the date of transition to Ind AS).

The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 01, 2016 (the Company''s date of transition). According to Ind AS 101, the first Ind AS Financial Statements must use recognition and measurement principles that are based on standards and interpretations that are effective at March 31, 2018, the date of first-time preparation of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial Statements.

Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of April 01, 2016 compared with those presented in the Indian GAAP Balance Sheet as of March 31, 2016, were recognized in equity under retained earnings within the Ind AS Balance Sheet.

An explanation of how the transition from previous GAAP to Ind AS has affected the company''s financial position, financial performance and cash flows is set out in the following notes and reconciliations. On transition, we did not revise estimates previously made under Indian GAAP except where required by Ind AS.

I. Exemptions and exceptions availed:

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS.

A. Deemed cost:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the Indian GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Indian GAAP carrying values.

B. Leases:

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

C. Estimates:

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP [after adjustments to reflect any difference in accounting policies], unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under Indian GAAP:

i. Investment in equity instruments carried at FVPL or FVOCI;

ii. Investment in debt instruments carried at FVPL; and

iii. Impairment of financial assets based on expected credit loss model.

D. Non-current assets held for sale and discontinued operations:

The Company has elected the option provided under Ind AS 101 to measure non-current assets held for sale and discontinued operations at the lower of carrying value and fair value less cost to sell at the date of transition to Ind AS.

E. Classification and measurement of financial assets:

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

F. De-recognition of financial assets and liabilities:

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

NOTES ON THE FIRST-TIME-ADOPTION:

i. Investment

Investment in equity instruments are valued at FVTPL. The same are held for trading purpose, hence, gain / losses on fair valuation of such financial instruments are routed through Profit and Loss account which is in line with Ind AS 109 requirements.

ii. Non-current financials assets - Loans

Under Indian GAAP, security deposits given and taken were required to be carried at book value. Under Ind AS, the said concept has shifted from book value to their fair value, hence the same has been adjusted after considering fair valuation criteria''s given under Ind AS 109 by routing the same through profit and loss account.

iii. Revenue from operations

Under Indian GAAP, the Company used to present Revenue net off excise duty. The incidence of excise duty is on manufacture and not on sales since manufacturer is the primary obligor for the payment of excise duty. Management collects excise duty from its customers in the capacity as principal and not as an agent. As a result, excise duty recovered from customers would form part of revenue, with a corresponding equal amount charged to the statement of Profit and loss.

iv. Employee benefits

Both under Indian GAAP and Ind-AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit and loss. Under Ind-AS, remeasurements of defined benefits plans are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

Mar 31, 2015

A) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs,10 per share. Each holder of equity

shares is entitled for one vote per share.

In th event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1. General Notes forming the parts of Accounts:

1 As this is the first year of the company hence previous year's figures are not given. Figures have been rounded off to nearest of rupee.

2 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.

3 The Board of Directors of the company in their meeting dated 31st July 2014 have approved the composite scheme of arrangement between Gokul Refoils & Solvents Ltd (GRSL) and Gokul Agro Resources Ltd (GARL)and Gokul Agri International Ltd (GAIL) and their respective shareholders and creditors. As per draft scheme the whole of the Gandhidham undertaking and Gandhidham Windmill Undertaking shall be transferred to and vested into GARL as a going concern so as to vest in GARL all rights, title and interest pertaining to the said Gandhidham undertakings. GARL shall issue "1 (One) Fully paid Equity Share of Rs. 2 each of GARL shall be issued and allotted for every (1) fully paid Equity share of Rs. 2 each held in GRSL.

4 As per the scheme of arrangement the appointed date of the demerger is 1st January,2015 but shall be operative from the Effective date subject to approval of the Honorable High Court of Gujarat. At present the scheme of arrangement is pending before Honorable High Court of Gujarat for approval. Therefore, all the expenses incurred up to 31st March,2015 are considered as "Pre Operative Expenses" (pending allocation). These shall be charged to revenue when the company receives the approval of arrangement scheme by Honorable High Court of Gujarat. Detailed breakup of the Pre Operative Expenses (pending allocation) is as under :-

5 Expenditure incurred by the company on employee who were in receipt of remuneration exceeding Rs.6,000,000/- or more per annum or Rs. 500,000/- or more per month Rs.NIL

2. Related party Disclosure. :-

Disclosures as required by Accounting Standard 18 "Related Party Disclosures" are given below.

A Related Party

1 Gokul Refoils & Solvent Ltd. Holding Company

B. Key Managerial Personnel

1 Kanubhai J. Thakkar Director

2 Jayesh K. Thakkar Director up to 20th April, 2015

3 Hiteshkumar Thakkar Director up to 20th April, 2015

4 Dipakkumar K. Thakkar Director up to 20th April, 2015

5 Balvantsinh Chandansinh Rajput Director w.e.f. 20th April, 2015

6 Piyushchandra Ramchandra Vyas Director w.e.f. 20th April, 2015

7 Dipooba Halaji Devada Director w.e.f. 20th April, 2015

8 Karansinghji Dolatsinghji Mahida Director w.e.f. 20th April, 2015

9 Bipinkumar Jayantilal Thakkar Director w.e.f. 20th April, 2015

C. Relative of Key Management Personnel

1 Manjulaben K. Thakkar Wife of Shri Kanubhai J. Thakkar

2 Bhavnaben K. Thakkar Daughter of Shri Kanubhai J. Thakkar

3 Dipak Harwani Son in Law of Shri Kanubhai J. Thakkar

4 Vinitaben J. Thakkar Wife of Shri Jayesh K Thakkar

5 Himanshi D.Thakkar Wife of Dipakkumar K Thakkar

3. Particulars of Earnings Per Share:

Earnings per share computed in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India.

In the absence of details of number of potential Equity Shares to be issued to shareholders of GRSL pursuant to the Composite scheme of arrangement as referred to note No. 3, the working of Dilutive Earnings per share is not given.

4. Provisions of gratuity payable under Payment of Gratuity Act is not applicable to the Company during the period under reference.

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