Notes to Accounts of Jayant Agro Organics Ltd.

Mar 31, 2018

1 Corporate Information

Jayant Agro-Organics Limited was incorporated on May 7, 1992 under Companies Act, 1956 having CIN L24100MH1992PLC066691. The Company is mainly engaged in manufacturing and trading of castor oil and its derivatives such as oleo chemicals.

Notes:

2. Plant and machinery includes general plant and machinery, electrical installations, laboratory equipments and windmill.

*The Company has elected to consider the carrying value of all its items of property plant and equipment and intanqible assets recoqnised in the financial statements prepared under Previous GAAP and use the same as deemed cost in the openinq Ind AS Balance Sheet. Accordinqly, the accumulated depreciation in the openinq Ind AS Balance Sheet is Nil.

(d) 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.

Note 3: Capital Reserve was partially created in FY 2009-10 for for forfeiture of Share warrants and partially in FY 2011-12 on account of a amalgamation of a Company.

Note 4: Capital Redemption Reserve is created out of profits on redemption of preference share capital in year 2006-07.

Note 5: Amount received on issue of shares in excess of the par value has been classified as security premium account.

Note 6: General Reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General Reserve is created by transfer of one component of equity to another and hence not an item of Other Comprehensive Income.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs (level 3 measurements). The categories used are as follows :

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. Considering that all significant inputs required to fair value such instruments are observable, these are included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

The fair value of financial instrument is determined using discounted cash flow analysis.

For Assets and liabilities not discounted:

The carrying amounts of trade receivables, loans, cash and bank balances,trade payable and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

For assets and liabilities discounted:

The fair values for Unbilled revenue were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

Note 7: Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management policy of the Company provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Finance department activities are designed to:

- protect the Company''s financial results and position from financial risks;

- maintain market risks within acceptable parameters, while optimising returns; and

- protect the Company''s financial investments, while maximising returns.

A) Management of market risk A1-Interest Risk

Company''s borrowing is in the form of working capital loans which are linked to MCLR of the lending banks. Any change in the MCLR can have a positive or negative impact on the companies profit to the extent the benefit or cost is not absorbed in the selling price of the products.

A2-Commodity Risk

The prices of agricultural commodities are subject to vide fluctuations due to unpredictable factors such as weather, government policies, change in global demand and farmers sowing pattern.

The castor seed crop is shallow in nature and much smaller crop in size, therefore there is an inherent risk associated with the vide fluctuation in castor seed prices, the main raw material of the company.

The company has in place Risk Management Policy which is reviewed from time to time to cap the potential losses arising from such risks.

B) Management of credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.

The group is exposed to credit risk from Loans and Inter corporate deposits, deposits with banks and financial institutions, as well as credit exposure to customers with deferred payment terms.

Trade receivable

Credit risks related to receivables resulting from the sale of inventory property is managed by screening the customer profile and also by sales to high credit rating counterparties therefore, substantially eliminating the Company''s credit risk in this respect.

Other financial assets

Credit risk from balances with banks and financial institutions is managed in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparties. Counterparty credit limits are reviewed on periodic basis, and updated the same as and when required as per the credit profile of the customer. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through potential counterparty failure

C) Foreign Currency Risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency : USD, EUR, JPY

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key managerial personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.

Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to accounts receivable, accounts payable and future sales order. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Dire ctors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Note 8 (a): Capital Management

The Company considers that capital includes net debt and equity attributable to the equity holders.

The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy credit ratios in order to support its business and maximise shareholders value.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

The Company monitors capital using a gearing ratio which is total capital divided by Net debt. The Company includes within Net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents excluding discontinued operations.

*Liability for service tax shown above is net of Rs.1,123,595/- reversed under protest.

**The borrowings of the subsidiary company are primarily secured against the fixed assets of the subsidiary in case of term loan and current assets in case of working capital loans. The company being the holding company has provided corporate guarantee over and above the security provided by the subsidiary.

Proposed Dividend

The Board of Directors at its meeting held on 5^th May. 2018 have recommended a payment of final dividend of Rs.1.35 (Rupees one and paisa thirty five only) per equity share of face value of Rs.5 each for the financial year ended 31^st March, 2018. The same amounts to Rs.4.88 crores including dividend distribution tax of Rs.0.83 crores.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

Note 9: Capital Commitment

Estimated amount of contracts remaining to be executed on Capital accounts amounted to Rs.13,075,000/- (PY Rs.7,411,294/-).

Note 10: Disclosure under the Micro, Small and Medium Enterprises Development Act (MSMED), 2006

The Company has no dues towards principal and interest amount to micro, small and medium enterprise at the year end March 31, 2018.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

* During the year Company has issued Bonus Shares in 1:1 ratio (refer Note No. 16 (b)) to eligible equity shareholder. The Earning Per Share figures for the year ended March 31, 2017 has been restated to give effect to the allotment of the bonus shares.

Note 11: Employee Benefit Obligation

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

Gratuity:

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of the five years of continuous service and once vested is payable to employee on retirement or on termination of employment. The Company makes annual contribution to the gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company''s policy for Plan Assets Management.

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2017-18.

Sensitivity Analysis

Significant Actuarial Assumptions for the determination ofthe defined benefit obligation are discount trade ,expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period , while holding all other assumptions constant. The result of Sensitivity analysis is given below:

Terms and conditions of transactions with related parties

a) The sale and purchase from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash and cash equivalents. For the year ended March 31, 2018 the company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

b) The company has entered into job work agreement with the subsidiary company for crushing of castor seed on the terms equivalent at the arms length price.

Note 12: Disclosure as per Regulation 53(F) of SEBI (Listing Obligation and Disclosure Requirements) Regulations

There was no loans and advances in the nature of loans given to subsidiaries, associates and firms or companies in which directors are interested.

Note 13: Disclosure as per Section 186 of the Companies Act, 2013

(i) There was no loans and advances in the nature of loans given to subsidiaries, associates and firms or companies in which directors are interested.

(ii) The guarantees issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder is given in the below table:

Note 14: Subscription to Share Warrant

During the year 2014-15, 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 entitles 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.

Note 15: Long Term Derivative Contracts

The Company does not have any long term contracts or derivatives contract, which require provision of any foreseeable losses. Note 50: Investor Education and Protection Fund

The Company has transferred the amount, required to be transferred, of Rs.133,464 (PY Rs.308,390) to Investor Education and Protection Fund.

Note 16: Interest Income

Interest income include an amount of Rs.31,251,526/- (PY Rs.Nil) received from Department of Commercial Tax in Gujarat as interest on VAT refunds.

Note 17: Segment Reporting

The company has identified Castor Oil based derivative business as its only primary reportable segment in accordance with the requirement of Ind AS 108, ''Operating Segments''. Accordingly, no separate segment information has been provided.

Note 18: Approval of Financial Statements

The financial statements are approved for issue by the Audit Committee at its meeting held on 5^th May. 2018 and by the Board of Directors on May 5, 2018.

Note 19: Previous Year Figures

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

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Mar 31, 2017

1: Capital Commitment

Estimated amount of contracts remaining to be executed on capital accounts amounted to Rs.7,411,294/- (PY Rs.6,781,463/-). Note 34: 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, 2017.

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of the five years of continuous service and once vested is payable to employee on retirement or on termination of employment. The Company makes annual contribution to the gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

2. 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:-

3. Related Parties and their relationship i. Holding Company

Jayant Finvest Limited

4. Subsidiary companies

Ihsedu Agrochem Private Limited

Ihsedu Coreagri Services Private Limited

Ihsedu Itoh Green Chemicals Marketing Private Limited

5. Joint Venture

Vithal Castor Polyols Private Limited

6. Entities Controlled by Directors and Relatives

Enlite Chemical Industries Limited Gokuldas K. Udeshi Investment Innovative Micro Systems Private Limited Gokulmani Agricom Limited Akhandanand Engineering & Trading Company

7. Key Management Personnel

Mr.Abhay V Udeshi Chairman

Mr. Hemant V. Udeshi Managing Director

Dr. Subhash V. Udeshi Whole-time Director

Mr. Varun A. Udeshi (from July 23, 2016) Whole-time Director

Mr. Vikram V. Udeshi Chief Financial Officer

Mr. Dinesh M. Kapadia Company Secretary

vi. Relative of Key Management Personnel

Mr. Sudhir V. Udeshi Mrs. Trupti A. Udeshi Mr. Dhayvat H. Udeshi

Mr. Varun A. Udeshi (up to the date of becoming Director)

8: During the year 2014-15, 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 entitles 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.

9: Long Term Derivative Contracts

The Company does not have any long term contracts or derivatives contract, which require provision of any foreseeable losses. Note 45: Investor Education and Protection Fund

The Company has transferred the amount, required to be transferred, of Rs.308,390 (PY Rs.374,871) to Investor Education and Protection Fund.

10: Interest income include an amount of Rs. Nil/- (PY Rs.19,164,860) received from Department of Commercial Tax in Gujarat as interest on VAT refunds.

11: Previous Year Figures

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

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Mar 31, 2016

Note 1: Capital Commitment

Estimated amount of contracts remaining to be executed on capital accounts amounted to Rs, 6,781,463/(PY Rs, 900,000/-).

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, 2016.

Note 3: Employee Benefit Obligation

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

The Company''s contributions paid / payable during the year towards provident fund and superannuation fund are charged in the Statement of Profit and Loss every year

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 Finevest 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. Entities Controlled by Directors and Relatives

Enlite Chemical Industries Limited Gokuldas K. Udeshi Investment Innovative Micro Systems Private Limited Gokulmani Agricom Limited Akhandanand Engineering & Trading Company

v. Key Management Personnel

Mr. Abhay V. Udeshi Chairman

Mr. Hemant V. Udeshi Managing Director

Dr. Subhash V. Udeshi Whole-time Director

Mr. Vikram V. Udeshi Chief Financial Officer

Mr. Dinesh M. Kapadia Company Secretary

vi. Relative of Key Management Personnel

Mr. Sudhir V. Udeshi Mrs. Trupti A. Udeshi Mr. Varun A. Udeshi Mr. Dhayvat H. Udeshi

Note 5: During the year 2014-15, 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 entitles 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.

Note 6: Interest income include an amount ofRs, 19,164,860/- (PY 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.

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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.

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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.

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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.

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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.

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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.

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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.