Note: - 1: Significant Accounting Policies and Notes forming part of the Accounts

(A) Basis of brparation of financial statements and revenue recognition:-

i) The financial statements have been brpared under the historical cost convention on an accrual basis in accordance with Generally Accepted Accounting Principles in India including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

ii) Accounting policies not specifically referred to otherwise are consistent with Generally Accepted Accounting Principles followed by the company.

iii) Sale of goods is recognized on transfer of significant risk and rewards of ownership which is generally on shipment and dispatch to customers. Sale is inclusive of excise duty but exclusive of VAT. Sales include income/loss on bargain settlements. Revenue/ Loss from bargain settlement of goods is recognized at the time of settlement of transactions. Export benefits/Value added tax benefits are recognized as Income when the right to receive credit as per the terms of the scheme is established and there is no significant uncertainty regarding the claim. Other revenue/ cost arerecognized on accrual basis. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Share of profit and loss from partnership firm is recognized when company's right/obligation to receive/pay is established.

(B) Fixed Assets & Debrciation / Amortization: -

i) Fixed assets tangible and intangible are stated at cost of acquisition or construction net of recoverable taxes less accumulated debrciation and impairment losses if any. All cost including finance Cost, till commencement of commercial production is capitalized. Application software expenses for internal use are treated as intangible assets.

ii) Debrciation on tangible assets is systematically allocated over the useful life of tangible assets as specified in Part C of Schedule II of the Companies Act 2013. Intangible assets are amortized equally over five years.

iii) Pursuant to Accounting standard 28 " Impairment of Assets" issued by the ICAI, the Company has a system to review the carrying cost of all the assets vis-a-vis recoverable value and impairment loss, if any is charged to Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in estimate of recoverable amount.

iv) Lease hold assets are amortized over the period of lease from the date of start of commercial production.

(C) Investments:-

i) Long term Investments are stated at cost of acquisition. Provision for diminution in the value of long term investments is made only if such decline is other than temporary in the opinion of the management.

ii) Current Investments, if any, are stated at lower of cost and fair value determined on individual investment basis.

iii) Investments in shares of foreign subsidiaries are exbrssed at the rates of exchange brvailing at the time when original investments were made.

(D) Foreign Currency Transactions: -

Transactions denominated in foreign currency are normally recorded at the exchange rate brvailing at the time of the transactions. Monetary items denominated in foreign currency remaining unsettled at the year-end are restated at the exchange rate brvailing at the end of the year. Gains and losses on foreign exchange transactions other than those relating to Fixed Assets are charged to profit & loss account. Premium paid on forward contract has been recognized over the life of the contract. Any profit or loss on cancellation or renewal of such forward exchange contract is recognized as income or expenditure for the period. Non-monetary foreign currency items are considered at cost.

(E) Inventories:-

Inventories are valued at lower of cost and net realizable value except by products which are valued at estimated net realizable value. In determining the cost of raw material, stores, spares, and other material the first in first out (FIFO) method is used. Finished goods and work in progress include material cost, labour and factory overheads and excise duty, if applicable.

(F) Employee Retirement Benefit:-

i) Company makes contributions in respect of provident fund to Government authorities and the liability is limited to the extent of contributions. The employees of the company are entitled to leave as per leave policy of the company. The liability in respect of unutilized leave balances is provided based on an actuarial valuation carried out by an independent actuary as at the year end and charged to the Statement of Profit and Loss.

ii) The company has created a trust and has taken group gratuity policy with the Life Insurance Corporation of India for the future payments of retiring gratuities. The liability for the defined benefit plan of Gratuity is determined on the basis of an actuarial valuation by an independent actuary at the year end which is calculated using Projected Unit Credit Method. Actuarial gains and losses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognized in the Statement of Profit and Loss.

(G) Lease Rent:-

Lease rentals are expensed with reference to lease terms and other considerations.

(H) Liquidated Damages:-

Liquidated damages / Penalties, if any are provided whenever there is a claim from party and when the same is accepted by the company.

(I) Custom Duty:-

The year-end inventory is inclusive of custom duty.

(J) Taxation:-

Taxation expense comprises current tax and deferred tax charge or credit. Provision for income tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. Advance tax and tax deducted at source are adjusted against provision for taxation and balance, if any, are shown in the balance sheet under respective heads.

(K) Deferred Taxation:-

Deferred tax resulting from timing differences between book and tax profit is accounted for under the liability method at the current rate of Income tax to the extent that the timing differences are expected to crystallize as deferred tax charge/benefit in the Statement of Profit and Loss and as deferred tax Assets/Liability in the Balance-Sheet.

(L) Insurance Claim:-

Insurance and other claims to the extent considered recoverable are accounted for in the year of claim based on the amount assessed by the surveyor. However, claims and refund whose recovery cannot be ascertained with reasonable certainly, are accounted for on acceptance/actual receipts basis.

(M) Borrowing Cost:-

Borrowing cost that is attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

(N) Excise Duty:-

Excise duty has been accounted on the basis of both payment made in respect of goods cleared and provision for goods lying in bonded area.

(O) Use of Estimates:-

In brparing Company's financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The management believes that the estimates used in the brparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which results are known /materialized.

(P) Commodity Hedging Transactions:-

The commodity hedging contracts are accounted on the date of their settlement and realized gain/loss in respects of settled contracts are recognized in the Statement of Profit and Loss, along with the underlying transactions. Pursuant to announcement on accounting for the derivatives issued by the Institute of Chartered Accountants of India (ICAI), in accordance with the principle of prudence as enunciated in Accounting Standard -1 (AS-1) " Disclosure of Accounting Policies" the company provides for losses in respect of all outstanding derivatives contracts at the balance sheet date by marking them mark to market. Any net unrealized gains arising on such Mark to Market are not recognized as income.

(Q) Provision, Contingent Liabilities and Contingent Assets:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed at their estimated amount in the notes forming part the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

(R) Related Party Transaction:-

Parties are considered to be related if at any time during the year; one party has the ability to control the other party or to exercise significant influence over the other party in making financial and / or operating decision.

(S) Earnings per Share (EPS):-

The earning considered in ascertaining the company's EPS comprises the net profit for the period after tax attributed to equity shareholders' The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

(T) Government Grants:-

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter's contribution are credited to capital reserve. Revenue grants are recognized in the Statement of Profit and Loss in accordance with the related schemes and in the period in which these are accrued and it is reasonably certain that the ultimate collection will be made.

(U) Share Issue Expenses:-

Share Issue expenses are adjusted against security brmium account.

Note: - 2:Composite Scheme of arrangement

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

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

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

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

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

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

Note: - 6: Segment Reporting

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

Note: - 7:

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

Note: - 8:

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

Note:- 9: Details of CSR Expenditure :

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

As per our report of even date attached

For M.R. Pandhi & Associates

Chartered Accountants

(Registration No: 112360W)

N. R. Pandit

Partner

Membership No:033436

For and on behalf of the Board

Kanubhai Thakkar Managing Director

Bipinkumar Thakkar Whole Time Director (Legal)

Mahesh Agrawal Group CEO & CFO

Kalpesh Desai Company Secretary

Place : Ahmedabad

Date : 30th May, 2015