Notes to Accounts of Gujarat Cotex Ltd.

Mar 31, 2014

1. Corporate Information:

GUJARAT COTEX LIMITED is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in the business of trading of Fabrics and Education of Students. The Company caters to domestic markets.

1.1 Interest Rate Profile of Term Loans & Deposits :

Interest Rate Profile of Term Loans & Deposits are Not Applicable to the Company.

2. Deferred Tax Liabilities (Net):

Not Provided as not required for the same.

3. Long Term Provisions :

Long Term Provisions are not Obtained.

3.1 The Company has not received information from vendors regarding their status under the Micra Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given. This has been relied upon by the Auditors.

4. Short Term Provisions:

Short Term Provisions are not Provided.

5. Short Term Borrowings:

All borrowings are from Share Holders or from Directors. All borrowings are Unsecured borrowings.

6. Long Term Borrowings:

Car Loan taken from ICICI Bank Ltd against the Hypothecation of Motor Car.

7. Cash And Cash Equivalents:

All Bank Balances are verified and tallied by the management. All Cash are with the Managing Directors and verified by the management only.

8. Short Term Loans and Advances:

As informed to us, advances given for purchase of material or some asset and Income Tax Deducted by the Party for our payments.

9. Revenue from Operation:

The Company is doing wholesale trading business. Revenue is recognized as and when material received by the party.

10. Other Income:

Dividend, Care Claim received, Discount and Profit(Loss) on sale of Fixed Assets are included in other Income .

11. Employee Benefits:

We have been informed that employees are paid Salary which includes all benefits. No Separate Benefits are paid.

12. Expenditure and Earnings in Foreign Exchange:

As informed to us – No Earnings or Expenditure in Foreign Exchange during the year under Audit.

13. Segment Reporting:

The Company operates in two segment (i) wholesale Trading in Fabrics and (ii) Education Business. The Company earn Commission from Shikkim Manipal University for their Education Business. The Revenue result of two segments are as below:

14. Related party Disclosures as required by AS-18 are given below.

Directors are related in Company namely Prabhat Oil Ltd.

Common Director in Gujarat Co-tex Ltd and Prabhat Oil Ltd – are Shri Shailesh J Parekh, Smt. Priyavanda S. Parekh, Shri Chetan S. Parekh and Smt. Sonal D. Sheth.

NOTE : Related party relationship on the basis of the requirements of Accounting Standard (AS) 18 as identified and Certified by the Management and relied upon by the Auditors.