company information - gujarat · 2015-03-24 · to rs.1918.14 crores achieved during the previous...

COMPANY INFORMATION

Board of Directors

1. Shri Bhupendra Lakhawala Chairman

2. Shri R.P. Gupta IAS Director

3. Shri C.V. Som IAS Managing Director

4. Shri. Mukeshkumar IAS Director

5. Shri. Hareet Shukla IAS Executive Director

6. Ms. Arda Agrawal IAS Director

7. Shri Dipak Erda Director

8. Shri J. G. Pandya Director

9. Shri Prataprai M. Jani Director

10. Shri Jagdischandra P. Soni Director

11. Shri Utsavlal R. Parikh Director

12. Shri Jugalji M. Lonkhandwala Director

13. Shri Lalitkumar Shah Director

14. Smt. Bhar tiben A. Shukla Director

General Managers :

1. Shri R. P. Patel - Administration2. Shri Gaurang Bhatt - Commerce - I & Chief FinancialOfficer3. Shri S. N. Rao - MIS4. Shri I. M. Kothawala - Accounts & Finance

Company Secretary:Smt. Monika H. Pandya

Auditors:M/s Parikh mehta & AssociatesChartered AccountantsE-8 ,Tarun nagar society, Nr. Bijal park,Gurukul road, Memnagar, Ahmedabad-380052

Bankers:State bank of India – GandhinagarBank of Baroda – GandhinagarAxis Bank - Gandhinagar

Registered Office:Sector 10-A, Ch-RoadNear New SachivalayaGandhinagar – 382043CIN : U65910 GJ 1980 SGC 003957Phone: (079) 23221037, 23221038Fax: (079) 23222707, 23221030

The Gujarat State Civil Supplies Corporatin Limited, Gandhinagar

33 Annual report 2013-14rd

1

ContentCompany Information......................................................01

Directors’ Report.............................................................03

Auditors’ Report .............................................................13

Balance Sheet .................................................................22

Profit & Loss Account ...................................................24

Notes ...............................................................................29


The Gujarat State Civil Supplies Corporatin Limited, Gandhinagar 2

DIRECTORS’ REPORTToThe ShareholdersGSCSC Ltd.Gandhinagar

Gentlemen,Your Directors have pleasure in presenting their 33 rd Annual Report together with the Audited

Statement of Accounts for the financial year ended 31st March, 2014.

OBJECTIVES:

The Gujarat State Civil Supplies Corporation Ltd. (GSCSCL) is the pivotal organization for thePublic Distribution System in Gujarat. The Corporation incorporated in 1980, supplies food grains andother essential commodities to fair price shops across Gujarat. The Corporation also supplies commoditiesto other target groups under various schemes of State Governments. To fulfill this objective, Corporationis carrying out various activities like procurement, storage and distribution of food grains, edible oil,sugar etc. Since its inception, turnover of GSCSC Ltd. has grown consistently.

Corporation is carried out procurement activities of various commodities for Mid-day meal schemeof Primary Education Department and Integrated Child Development schemes and for many otherschemes of other departments also.

Corporation also manages supply chain of essential commodities, whenever there is any calamitylike an earthquake, drought, flood, cyclone, outbreak of diseases, etc. in any part of State.

FINANCIAL RESULTS:

During 2013-2014the turnover of the Corporation was 1778.27 Crores, less by 7.29% as comparedto Rs.1918.14 Crores achieved during the previous year 2012-13.

The Corporation has earned net profit of Rs.44.24 lakhs during the year 2013-14 as against thenet profit of Rs. 47.23 lakhs during the previous financial year 2012-13.

DIVIDEND:

Your Directors have not recommended payment of Dividend for the year ended on 31st March,2014.

OPERATIONAL HIGHLIGHTS:

During the year 2013-14, scheme-wise wheat and rice allotment to Gujarat State and Quantity ofWheat and Rice lifted by GSCSC from Food Corporation of India (FCI) is as under :

Whea Rice Figures in MT

Scheme Allotment Lifting Distribution Lifting % Allotment Lifting Distribution Lifting %against against allotment allotment

BPL 376524 376524 375876.25 100 173844 173844 87234.20 100

AAY 184476 184476 166927.00 100 155604 155604 140748.60 100

APL &ADHOCAPLSP. BPL 116354 112124 193732 96 46214 43836 161246.00 95

ADIJATI / 41137 39760 31554 97 0 0 0.00 0OMSSTotalAverage 1913151 1308566 1370831 68 375662 373284 389229 99

1194660 595682 602741.57 50 0 0 0 0



Estimated Population of gujarat for the year 2013 is 6,27,000.03. As par Sensus survey out oftotal population of gujarat 42.60% is urban population and 57.40% is rural population total requirement ofwheat is 33,31,523 MT and of rice is 15,95,018 MT.

During the year 2013-14, the corporation has handled about 41.05% of the total estimatedrequirement of wheat in the state . Similarly for rice, corporation has handled about 24.36% of the totalestimated requirement of Rice in the State.

Corporation having 501 Godowns, having a total storage capacity of 2,65,970 MT at variousTaluka/ District locations in the State. Further an initiative has been taken to create minimum storagecapacity in all the Taluka Head Quarters besides augmentation of storage capacities at some of theexisting Taluka places.

ACTIVITIES AND PROSPECTS:

Targeted Public Distribution System (TPDS) scheme has been introduced since 01.06.1997.For the purposes of distribution of essential commodities under TPDS, beneficiary families have beencategorized into three types i.e. (1) Below Poverty Line (BPL) (2) Above Poverty Line (APL) and (3)Antyodaya Anna Yojna (AAY). During the year 2013-14, category wise food grain distribution normswere as follows:

Scheme Commodity Quantity/Card Rate in( in Kgs) Rs/Kg.

Antyodaya Anna Yoj na (AAY) Wheat 19 2.00

Rice 16 3.00

Below Poverty Line (BPL) Wheat 13 2.00

Rice 3 3.00

BPL Rice (Sp) 3 7.20

APL to BPL Wheat 16 7.65

Above Poverty Line (APL) Wheat 15 7.65

The central Government has stopped allotment of Levy Sugar with effect from July-2013 andgiven permission of purchase of sugar from open market for public distrbution system. Price fixed forthis scheme is Rs. 13.50 and for difference in purchase price from open market will be given by CentralGovernment to the extent of Rs. 18.50 per KG in of subsidy. For excess allotment, (above CentralGovernment allotment) in quantity State Government will give the subsidy at the rate of Rs. 18.50 perKg. if the open market price of sugar is exceeding above Rs. 32.00 (12.50+ 18.50) per kg than stateGovernment will borne the difference price on whole quantity.

The Central and StateGovernment jointly born the subsidy for this scheme.

As per State Government’s Scheme, during the year 2013-2014, State Government has

determined the distribution of 1 Kg Iodized salt per card to every card holders in 54 taluka of 12 districts

of Tribal areas and also 1 Kg Iodized salt per card to AAY and BPL Familise of Other than tribal areas



under public Distribution System at concessional rate of 1/Kg. As per resolution of State Government

(F&CSD) dated 24.08.2012, quantum for distribution is 2 kg Iodised Salt in case of more than Six (6)

family members in a ration card. As per GR of GOG, the distribution of Refined Iodized salt instead if

ordinary salt has been started from July, 2012.

As per directions of the State Government, Corporation has procured 3.54 lac MTs of cement

during 2013-2014 and supplied to the Government Departments/ Offices/ Boards and Corporations at

the rate decided by Government of Gujarat.



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In addition, GSCSC has operated 5 (Five) petrol pumps out of which 4 petrol pumps are on

dealership basis and 1 Kisan Seva Kendra. During 2013-14 turnover of the petrol pumps is as under:

Sr. Items Quantity in Liters

No.

1 Petrol 1,16,38,019

2 Diesel 1,25,66,197

3 Oil 35,469

During the year 2013-2014, 22,47,391 KGs of CNG were sold at two CNG filling stations located

at Sector-21 in Gandhinagar. Further turnover of 1,80,662 Cylinders were recorded by Two gas agencies

operated by the GSCSC.

QUALITY TESTING / INSPECTIONS:

During the year 2013-2014, 1787 samples of food grains and pulses, and 290 samples of edible

oils, 64 samples of iodized salt and 265 samples of Sugar and 132 samples of nutri candy were

analyzed through quality control branch. In addition, 1318 inspections of godowns and commercial

centers were carried out.

TRAINING PROGRAMME:

During year 2013-2014 about 284 employees/officers attended short term training regarding

Quality Control Work at Anand Krushi University, at GSCSC Gandhinagar by Quality Control Cell Puna.

AL STRCAPIT UCTURE AND FINANCE PATTERN:

There is no change in capital structure of the Corporation during the year under review. As on

31.3.2014, the GSCSC has invested Rs.36.00 Crores with M/s GSFS Ltd in liquid deposit/ Inter Corporate

deposit scheme as per the Government guidelines and in the best financial interest of the Corporation.

Further, during 2013-2014 Corporation has paid back Rs.24.00 Crores (Rupees Twenty Four Crores) to

the State Government against the surplus generated on account of government activities.

FIXED DEPOSITS:

The Corporation has not accepted any Fixed Deposits from the public during the year under

review.



Accounts and Audit:

M/s Parikh Mehta & Associates Chartered Accountants was appointed as the Statutory Auditors

of the Corporation by CAG Office, New Delhi for the year 2013-2014.The Board takes note of the qualified

opinion [With reference to Section 217(3)] and Observations as detailed in the Auditor’s Report. With

regard to same management will take due care to comply and resolve the highlighted issues in the

Auditors Report in due course.

The comments of Comptroller and Auditor General of India on the accounts of 2013-14 under

section 619 (4) of Companies Act,1956 and replies of the Board of Directors are as per Annexure – A.

AUDIT COMMITTEE:

Audit Committee of the Corporation consists of 8 member of the Board of Directors . Audit committee

has met and reviewed the Annual Accounts.

DIRECTORS:

The details regarding Directors who were on the Board of Directors as on 01.04.2013 and the

changes that have taken place in the Board of Directors till date are given as per Annexure – B.

PARTICULARS OF EMPLOYEES:

Since no employee draws remuneration exceeding the provisions prescribed under Section 217

(2 A) of the Companies Act, 1956 and the Companies (Particulars of Employees) Rules, 1975 and

therefore, the information is ‘NIL’.

INFORMATION PURSUANT TO SECTION 217 (1) (e):

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with Companies

(Disclosures of particulars in the report of Directors), Rules 1988 and forming part of the Directors’

Report for the period ended 31st March, 2013 is as under.

A) Conservation of energy : Not applicable.

B) Technology Absorption : The Gujarat State Civil Supplies Corporation

Ltd. being a trading organization, hence the

information is NIL.

C) Foreign Exchange earnings : i) Activities relating to exports, initiatives taken

and outgo. to increase exports, development of new

export markets for products and services – Nil.

ii) Total foreign exchange spent : NIL.

iii) Total foreign exchange earned : NIL.



DIRECTORS’ RESPONSIBILITY STATEMENT (DRS):

Pursuant to Section 217 (2 AA) of the Companies act, 1956, the Directors confirm that:

1. in the preparation of the annual accounts, the applicable accounting standards had been followedalong with proper explanation relating to material departures.

2. the directors had selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair view of thestate of affairs of the company at the end of the financial year and of the profit or loss of thecompany for that period.

3. The directors had taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of this Act for safeguarding the assets of the companyand for preventing and detecting fraud and other irregularities.

4. the directors had prepared the annual accounts on a “Going Concern” basis.

Awards :

Your company has received “CSI- Nihilent e-Governance Awards 2012-2013: Awards forExcellence” For use of information and communication technology (ICT) in Supply logistics.G.S.C.S.C.is first PSU of the Government to introduce progrmmable Hand Held Terminal for lifting of stock andonline real time system to issue stock to FPS. This project will also help administration in taping diversionof stock meant for poor.

ACKNOWLEDGEMENTS:

The Directors wish to place on record their appreciation for the sincere co-operation and assistancereceived from the various departments of the State Government and Central Government, State/ CentralGovernment organizations and other co-operative Federations, bankers and officers/employees fromtime to time.

For the Board of Directors

Place : Gandhinagar (Bhupendra Lakhawala)

Date : 30-12-14 Chairman



ANNEXURE - AComments of Comptroller and Auditor General of India under Section 619(4) of

the Companies Act, 1956 on the accounts of the Gujarat State Civil Supplies Cor-poration Limited for the year ended 31 March, 2014.

The preparation of fincial dstatements of Gujarat State Civil Supplies CorporationLimited for the year ended March, 2014 in accordance with the finacial reporting frame-work prescribed under the Companies Act, 1956 is the responsibility of the managementof the Company. The Statutory Auditors appinted by the Comptroller and Auditor Generalof India under sectin 619(2) of the Companies Act, 1956 are responsible for expressingoppinion on these financial statements under Section 227 of the Companies Act 1956based on independent audit in accordance with the auditing and assurance standardsprescribed by their professional body, the Institute of Chartered Accountants of India. Thisis stated to have been done by them vide their Audit Report dated 29 September, 2014.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supple-mentary audit under Section 619(3) (b) of the Companies Act, 1956 of the financial state-ments of the Gujarat State Civil Supplies Corporation Limited for the year ended 31 March,2014. This supplementary audit has been carried out independently without access to theworking papers of the statutory auditors and is limited primarily to the inquiries of the statu-tory auditors and company personnel and a selective examination of the accounting records.On the basis of my audit nothing significant has come to my knowledge which would giverise to any comment upon or supplement to Statutory Auditors’ report under Section 619(4)of the Companies Act, 1956.

For and on behalf of theComptroller & Auditor General of India

-Sd-(B. BASANTIA)

Place : Rajkot Accountant General (G&SS Audit)Date : 29-12-14 Gujarat, Rajkot.



ANNEXURE – B

Name of the Director Designation Date of Date ofAppointment Cessation

Shri Bhupendra Lakhawala Chairman 29-10-2013 Continuing

Shri. Raj Kumar, (IAS) Chairman 08 -12 - 2009 28 -06 -2013

Shri R.P..Gupta (IAS) Chairman 28 - 06 - 2013 01-11-2013

Shri T. Natrajan (IAS) Managing Director 20 -08 -2012 03-05-2013

Shri V. Y. Vyasa (IAS) Managing Director 03 -05 -2013 28-02-2014

Shri R.P. Gupta (IAS) Director 28-06-2013 ContinuingManaging Director 01-03-2014 29-09-2014

Shri C.V. Som (IAS) Managing Director 29-09-2014 Continuing

Smt. Sangeeta Singh, (IAS) Director 23-08-2011 20-12-2013

Shri Mukeshkumar (IAS) Director 20-12-2013 Continuing

Ku. S. Aparna, (IAS) Director 06-09-2011 04-03-2014

Shri Dipak Erda Director 25-06-2014 Continuing

Smt. Anju Sharma (IAS) Director 08-06-2012 20-12-2013

Shri. Dinesh Patel, (IAS) Director 20-12-2013 18-07-2014

Ms. Ardra Agarwal, (IAS) Director 29-09-2014 Continuing

Shri.D. G. Jhalawadia (IAS) Director Ex. Officio 27-09-2012 18.05.2013Executive Director

Shri J.K.Astik (IAS) Director Ex. Officio 18-05-2013 20-12-2013.

Executive Director

Shri. Hareet Shukla, (IAS) Executive Director 13-08-2014 Continuing

Shri. Dilip K. Raval,(IAS) Director 29-12-2009 25-06-2014



Shri M. A. Narmawala, (IAS) Director 25-06-2014 12-08-2014

Dr. B. R. Shah Director 03-04-2010 22-11-2013

Dr. S. R. Chaudhari Director 03-04-2010 22-12-2014

Shri M. D. Chauhan Director 11-09-2007 20-12-2013

Shri Y. A. Baloch Director 20-12-2013 25-06-2014

Shri J. G. Pandya Director 25-06-2014 Continuing

Shri Prataprai M. jani Director 16-11-2013 Continuing

Shri Jagdishchandra P. Soni Director 16-11-2013 Continuing

Shri Utsavlal R. Parikh Director 16-11-2013 Continuing

Shri Jugalsingh M. Lokhandwala Director 16-11-2013 Continuing

Shri Lalitkumar Shah Director 16-11-2013 Continuing

Smt. Bhartiben A. Shukla Director 16-11-2013 Continuing

Name of the Director Designation Date of Date ofAppointment Cessation



ANNEXURE – B

INDEPENDENT AUDITOR’S REPORT

To

THE MEMBERS OF

THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LIMITED

GANDHINAGAR

Report on the Financial Statements

We have audited the accompanying financial statements of THE GUJARAT STATE CIVILSUPPLIES CORPORATION LIMITED, GANDHINAGAR which comprise the Balance Sheet as at31, March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year ended,and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management of the company is responsible for the preparation of these financial statementsthat give a true and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act, 1956 (theAct) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in termsof General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs ) and inaccordance with the accounting principles generally accepted in India. This responsibility includes thedesign, implementation and maintenance of internal control relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from material misstatement,whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with the Standards on Auditing issued by the Institute ofChartered Accountants of India. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internal control relevantto the Company’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the Company’s internal control.



An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidences we have obtained aresufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

(a) Significant Accounting Policies disclosed in Para 8 of Note 27 containing the list ofitems of Income and expenditure which are accounted on cash basis even as theCompany follows Mercantile system of Accounting, Which is not in accordance withAccounting Standard-1 (AS-1) “Disclosure of Accounting Policies”, issued by TheInstitute of Chartered Accountant of India (ICAI). Exact impact on financial statementsin this behalf could not be ascertained.

(b) Information as required under section 22 of Micro, Small and Medium EnterprisesDevelopment Act, 2006 have not been disclosed in the financial statement. Exact impacton financial statement in this behalf could not be ascertained.

(c) Reconciliation of Deposits with subsidiary ledger, amounting to Rs.169.97( lacs referredto in Note 3.2) is still pending. Exact impact on financial statement in this behalf couldnot be ascertained.

Aggregate effect of (a) to (c) above on net profit before tax for the year of Rs.64.94 lacscould not be ascertained.

Opinion

In our opinion and to the best of our information and according to the explanations given to us,Except for the matter described in the basis for Qualified Opinion Paragraph , financial statementsgive the information required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.



EMPHASIS OF MATTER:

1. We draw your attention to foot note in note no 16(viii) Revenue from Operations, Govermentacctivity sales has been reduced by Rs.3,535.25 lacs and treated advance given by Governmentof Gujarat for year 2014-15 (that is credit balence of advance from state Government againtssubsidy/sales incresed The praposal is pending to be approved by State Government

Our opinion is not qualified in respect of above metter

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2003 (the Order) issued by the CentralGovernment of India in terms of Section 227(4A) of the Act, we give in the Annexure a statementon the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. Except for the matter described in the basis for Qualified Opinion Paragraph Inour opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act, (which continue to beapplicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs )

e. In terms of notification No.G.S.R.829 (E) dated 21 October,2003 issued by centralGovernment,the provision contained in clause (g) of sub-section (1) of section 274 ofthe Companies Act,1956 is not applicable to a Government Company.

FOR Parikh Mehta & Associates

CHARTERED ACCOUNTANTS

Firm .Registration .No.112832WPlace: - Ahmedabad

Date: -29/09/2014

Hemangi MulaokarPartner

Membership .No. 127083



ANNEXURET OT HE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 of Report on other legal and Regulatory Requirements of our report of

Even date on the accounts of THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LIMITED,GANDHINAGAR as at 31st March, 2014)

I) a) The Company has maintained proper records of fixed assets showing full particularsincluding quantitative details and situation of fixed assets with regards to additions anddeletion of fixed assets that have occurred during the year under review. However, foropening balance, only their aggregate value is brought forward in the books andrecords up to 31.3.1999 Thereafter Item wise proper details of fixed assets areavailable.

b) As explained to us and as per the internal audit reports produced before us, physical

verification of fixed asset has been conducted by the management and certified by

the internal auditor at the end of accounting year. In our opinion the frequency of

verification is reasonable having regard to the size of the company. No material

discrepancies were noticed on such verification.

c) No substantial part of its fixed assets has been disposed off during the year and the

going concern status of the company is not affected.

II) a) As explained to us and as per the internal audit report produced before us, physical

verification of inventory, including inventory lying with third parties has been conductedby the management and certified by the internal auditor at the end of accounting year inrespect of various commodities dealt with by the company. In our opinion the frequencyof verification is reasonable

b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventory followed by the management areReasonable and adequate in relation to the size of the Company and the nature of itsbusiness.



c) On the basis of our examination of the records of inventory and according to the

information and explanation given to us, we are of the opinion that the Company

is maintaining proper records of inventory. The discrepancies noticed on verification

between the physical stock and the book record were not material.

III) a) In our opinion and according to the explanation given to us the company has not

Granted any loans, secured or unsecured to companies, firms or other parties covered

in the register maintained under section 301 of the Companies Act, 1956

and accordingly, the provisions of clause (iii)(b), (iii)(c) and (iii)(d) of the order

are not applicable to the company.

b) In our opinion and according to the explanation given to us the company has not

taken any loans, secured or unsecured to companies, firms or other parties covered

in the register maintained under section 301 of the Companies Act, 1956 and

accordingly, the provisions of clause (iii)(e) , (iii)(f) and (iii)(g) of the order


IV) In our opinion and according to the information and explanations given to us,

there exist an adequate internal control system commensurate with the size of the

company and the nature of its business, with regard to purchase of inventory and

fixed assets and with regard to sale of goods and services. During the course of

our audit, no major weaknesses have been noticed in the internal control system.

V) In our opinion and according to the information and explanations given to us,

there are no contracts or arrangements, the particular of which need to be entered

into the register maintained under section 301 of the Companies Act, 1956 and

therefore, the provision of clause (v)(a) and (v)(b) of the order are not applicable

to the company.



VI) The company has not accepted any deposits during the year from the public within

the of meaning of provision of section 58A and 58AA of the Companies Act, 1956and the rules framed there under and therefore, provision of clause (vi) of the orderis not applicable to the company.

VII) The internal audit of the company is entrusted to the firm of Chartered Accountants.

the system is commensurate with size and nature of business of the company.

VIII) According to the information and explanations given to us, the Central Government

has not prescribed maintenance of cost records under clause (d) of sub-section (1)of section 209 of the Companies Act, 1956 for any of the products of the Companyand therefore, the provision of clause (viii) of the order are not applicable to theCompany.

IX) a) According to the information and explanations given to us, the company is generally

regular in depositing undisputed statutory dues including provident fund, investoreducation and protection fund, Employees state insurance , income tax , sales tax,custom duty service tax, excise duty, cess and any other statutory dues applicable toit with the appropriate authorities . According to the information and explanation givento us, no undisputed statutory dues were in arrears as at 31st March, 2014 for a periodof more than six months from the date they became payable.

b) According to the information and explanations given to us and the records of the

company examined by us, in our opinion, there are no disputed amounts payable

in respect of sale tax, wealth tax, service tax, custom duty, excise duty, cess as at

31st March, 2014. There is disputed amounts payable in respect of income tax as at

31st March, 2014. Details are as under:-

Nature Of the Dues Period to which Ammount Forum where dispute isthe ammount (Rs. in pending

relates lacs)

Disputed Income Tax 2010-11 3074.00 APPELLATE TRIBUNALLiabilty AHMEDABAD

X) The company does not have any accumulated losses as at 31 st March 2014.

The Company has not incurred cash losses during year covered by our audit and



the immediately preceding financial year.

XI) In our opinion and according to information and explanation given to us, the

Company has not defaulted in repayment of dues to banks , financial institution.

The company has not obtained any borrowings by way of debentures.

XII) According to the information and explanations given to us, the company has not

granted loans and advances on the basis of security by way of shares, debentures

and other securities and therefore, the provision of clause (xii) of the order is not

applicable to the Company.

XIII) In our opinion and according to the information and explanation given to us ,

the company is not a chit fund or a nidhi / mutual benefit fund society and

therefore, the provision of clause (xiii) of the order is not applicable to the

Company.

XIV) In our opinion and according to the information and explanation given to us ,

the company is not dealing in or trading in shares, securities , debentures and

other investments and therefore , the provisions of clause (xiv) of the order are

not applicable to the company.

XV) According to the information and explanation given to us ,the company

has not given any guarantee for loans by others from banks and financial

institution and therefore , the provisions of clause 4(xv) of the order are

not applicable to the Company.

XVI) According to the information and explanation given to us ,the company

did not have any term loans outstanding during the year and therefore, the

provision of clause (xvi) of the order are not applicable to the Company.

XVII) According to the information and explanation given to us and on overall

examination of the balance sheet of the company , we report that short term

funds, prima facie, have not been used for long-term investment.

XVIII) The company has not made any preferential allotment of shares to companies/

Firms/parties covered in the register maintained under section 301 of theCompanies Act, 1956 and therefore , the provision of clause (xviii) of the order




XIX) The company has not issued any secured debentures during the year under audit

and therefore , the provisions of clause (xix) of the order are not madeapplicable to the company.

XX) The company has not raised any money by public issues during the year and therefore,

the provisions of clause (xx) of the order are not applicable to the company.

XXI) Based on the audit procedures performed and information and explanation given by

the management , we report that following fraud on or by the company has beenNoticed or reported during the reporting period:-

Sr. Nature of Fraud Amt. StatusInvolved ( `)

1 Shortages found in 76,481 Inquiry is under process.palmolien and cotton seed oil

2 Shortages found in Rice, 2,75,032 Employee is compulsorily retiredwheat, salt, coarse grain from service, but amount is still

pending.

3 Shortages found in Wheat and 7,471 Recovery is still pending.Rice

4 Shortages found in Wheat and 2,22,425 Recovery is still pending.Rice MSP

5 Shortages found in empty 1,027 Recovery is still pending.

gunny bags

6 Shortages found in Wheat 65,70,142 Employee is terminated fromservice, but recovery is pending

7 Shortages found in Wheat 2,79,890 Compulsory retirement orderpassed, recovery is still pending.

8 Difference in cost of 38,12,907 Departmental inquiry is still pendingtranspotation of Km. and ammount is still pending to be

recovered

9 Shortages found in Wheat and 11,500 Amount is recoveredRice



12 Shortages found in Wheat, 25,000 Amount is recoveredRice and palmolien

13 Shortages found in Wheat, 4,700 Amount is recoveredRice and pulses

14 Shortages found in Rice 9,914 Amount is recovered and gunny bags



15 Shortages found in Wheat, 1,09,942 Amount is recoveredRice and levy sugar

16 Shortages found in Sugar, 11,276 Amount is recoveredRice and coarse grain

TOTAL 1,14,56,498Above 16 cases are reported during the year amounting ` ` ` ` ` 1,14,56,498/- out

of which ` ` ` ` ` 2,11,123/- are recovered and ` 1,12,45,375/- are unrecovered

For Parikh Mehta & Associates

Chartered Accountants

Firm N o. R.No.-112832W

Hemangi Mulaokar

Partner

M.No.127083

Place: Ahmedabad

Date: 29/09/2014



1

BALANCE SHEET AS AT MARCH 31, 2014

Particulars Note No. As at March As at March

31, 2014 31, 2013

(I) EQUITY AND LIABILITIES

(1) Shareholders’ funds

(a) Share capital 1 1,000.00 1,000.00

(b) Reserves and surplus 2 361.47 317.23

(2) Non-current liabilities

(a) Deferred tax liabilities (net) 28 135.13 140.24

(b) Other long-term liabilities 3 12,748.44 12,232.67

(3) Current liabilities

(a) Short-term borrowings 4 0.00 2,438.73

(b) Trade payables 5 9,605.57 5,909.58

(c) Other current liabilities 6 13,062.99 9,484.70

(d) Short-term provisions 7 558.10 0.36

TOTAL 37,471.70 31,523.51

(` In Lacs)



(II) ASSETS

(1) Non-current assets

(a) Fixed assets

(i) Tangible assets 8 1,305.30 1,305.55

(ii) Capital work-in-progress 553.84 181.68

(b) Long-term loans and advances 9 1,172.36 1,235.29

(c) Other non-current assets 10 617.83 4.19

(2) Current assets

(a) Inventories 11 2,460.97 1,777.53

(b) Trade receivables 12 2,389.53 869.17

(c) Cash and Cash Equivalents 13 6,696.18 4,785.10

(d) Short-term loans and advances 14 22,254.24 21,339.97

(e) Other current assets 15 21.45 25.03

TOTAL 37,471.70 31,523.51

See accompanying notes forming part of the financial statement

The notes referred to above form an integral part of Balance sheet

In terms of our report attached

FOR PARIKH MEHTA & ASSOCIATES

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS

F.R. NO. 112832W

(Hemangi Mulaokar) (Bhupendra Lakhawala) (R.P.Gupta)Partner

CHAIRMAN MANAGING DIRECTOR

M. No. 127083 (Gaurang Bhatt) (Monika H. Pandya)

GENERAL MANAGER COMPANY SECRETARY (COMMERCE-I)

PLACE : AHMEDABAD PLACE : GANDHINAGARDATED:29-09-2014 DATED:29-09-2014

BALANCE SHEET AS AT MARCH 31, 2014(` In Lacs)

Particulars Note No. As at March As at March31, 2014 31, 2013



STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2014

(` In Lacs)Particulars Note For the For the

No. year ended year ended31st March, 2014 31st March, 2013

1 Revenue from operations (gross) 16 190,385.90 208,943.50

2 Other income 17 779.52 688.63

3 Total revenue (1+2)

191165.42 209632.13

4 Expenses

(a) Purchases of stock-in-trade 18 155,911.17 170,784.25

(b) Changes in inventories of stock-in-trade 19 (683.43) 848.17

(c) Employee benefits expense 20 7,097.54 6162.77

(d) Finance costs 21 207.53 678.50

(e) Depreciation and amortisation expense 8 95.06 90.47

(f) Other expenses 22 28472.61 30994.15

Total expenses

1,91,100.48 209,558.31

5 Profit / (Loss) before extraordinaryitems and tax (3 - 4) 64.94 73.83

6 Extraordinary items 0.00 0.007 Profit / (Loss) before tax (5 - 6) 64.94 73.838 Tax expense: (a) Current tax expense for current year 25.50 29.00 (b) (Less): MAT credit (where applicable) 0.00 2.37 (c) Current tax expense relating to prior years 0.31 (0.67) (d) Net current tax expense 25.81 30.70 (e) Deferred tax Assets (5.11) (4.11)

20.70 26.609 Profit / (Loss) for the year (7 + 8) 44.24 47.23



10.i Earnings per share (of ` 1000/- each): 28 (a) Basic 44.24 47.23 (b) Diluted 44.24 47.23

10.ii Earnings per share (of ` 1000/- each): 28(excluding extraordinary items)

(a) Basic 44.24 47.23 (b) Diluted 44.24 47.23

The notes referred to above form an intigral part of Balance - Sheet


FOR PARIKH MEHTA & ASSOCIATES FOR AND ON BEHALF OF THE BOARD OF DIRECTORSCHARTERED ACCOUNTANTSF.R. NO. 112832W

(Hemangi Mulaokar) (Bhupendra Lakhawala) (R.P. Gupta)

PARTNER CHAIRMAN MANAGING DIRECTOR

M. NO. 127083

(Monika H. Pandya)(Gaurang Bhatt) GENERAL MANAGER COMPANY SECRETARY

(COMMERCE-I)

PLACE : AHMEDABAD PLACE : GANDHINAGARDATED : 29th Sept. 2014 DATED : 29h Sept. 2014

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2014

(` In Lacs)

Particulars Note For the For theNo. year ended year ended

31st March, 2014 31st March, 2013



CASH FLOW STATEMENT FOR THEY EAR ENDED 31 MARCH, 2014(`(`(`(`(` in lacs)

Particulars For the year ended For the year ended31 March, 2014 31 March, 2013

A. Cash flow from operating activitiesNet Profit / (Loss) before extraordinary items and tax 64.94 73.83Adjustments for:

Depreciation and amortisation 95.06 91.46 (Profit) / loss on sale / write off of assets (3.29) (2.55) Finance costs 207.53 678.50 Interest income (241.54) (137.63) Sundry Credit Balances written back (20.66) 0.00 Sundry Debit Balances written back 1.63 0.00 VAT expenses 27.40Prior period expenses (8.40) 0.00Liabilities / provisions no longer required written back 0.00 0.00

Operating profit / (loss) before working capital changes 122.67 703.61Changes in working capital: Adjustments for (increase) / decreasein operating assets: Inventories (683.44) 863.69 Trade receivables (1520.29) 2279.28 Short-term loans and advances (7366.28) (880.21)Long-term loans and advances 37.12 (521.28)Other current assets 3.58 0.00 Other non-current assets (613.64) (10142.95) 105.68 1847.16

Adjustments for increase / (decrease)in operating liabilities: Trade payables 3695.98 3,007.73 Other current liabilities 3578.29 (1127.64) Other long-term liabilities 515.78 (4808.51) Short-term provisions 557.74 0.37 Long-term provisions 0.00 8347.79 0.00 (2928.05)

(1672.49) (377.28)Cash flow from prior period items 8.40 0.00Cash generated from operations (1664.09) (377.28)Net tax (paid) / refunds (27.71) (0.41)Net cash flow from / (used in)operating activities (A) (1691.80) (377.69)B. Cash flow from investing activities

Capital expenditure on fixed assets,including capital advances (98.44) (37.01) Decrease in Capital WIP (372.15) 70.72 Proceeds from sale of fixed assets 4.26 2.76 Inter-corporate deposits (net) 6452.00 37.00 Interest received 221.45 171.26 Profit on sale of Fixed Assets 3.29 6210.41 0.00 244.73Net income tax (paid) / refunds 0.00 0.00Net cash flow from / (used in)investing activities (B) 6210.41 244.73



(`(`(`(`(` in lacs)Particulars For the year ended For the year ended

31 March, 2014 31 March, 2013C. Cash flow from financing activities Proceeds from other short-term borrowings (2400.00) Repayment of other short-term borrowings 0.00 Finance cost (207.53) (2607.53) (3279.42)

Cash flow from extraordinary items 0.00 0.00

Net cash flow from / (used in) financing activities (C) (2607.53) (3279.42) Net increase / (decrease) in Cash and cash equivalents (A+B+C) 1911.08 (3412.39) Cash and cash equivalents at the beginning of the year 4785.10 8197.49Effect of exchange differences on restatement of foreign currency Cash and cash equivalents 0.00 0.00

Cash and cash equivalents at the end of the year 6696.18 4785.10

Reconciliation of Cash and cash equivalents

with the Balance Sheet:

Cash and cash equivalents as per Balance Sheet (Refer Note 13) 6696.18 4785.10

Net Cash and cash equivalents (as defined in AS 3 Cash Flow Statements) included in Note 13 6696.18 4785.10

Cash and cash equivalents at the end of the year *

* Comprises: (a) Cash on hand 29.90 71.94 (b) Cheques, drafts on hand 2154.59 233.34 (c) Balances with banks (i) In current accounts 4506.10 4069.33 (ii) In Cash Credit 18.25 404.49 (iii) In earmarked accounts (give details) (Refer Note (ii) below) Balances held as Margin money or Security against borrowing, guarantees, and other Commitments. 0.00 6.00 (d) Remittances in transit (12.66) 0.00



Notes:

(i) The Cash Flow Statement has been prepared by the indirect method as set out in AccountingStandard- 3 (Cash Flow Statement) issued by ICAI.

(ii) Previous year figures have been regrouped and/ or rearranged wherever considered necessary.

The notes referred to above form an integral part of Balance Sheet


FOR PARIKH MEHTA & ASSOCIATES FOR AND ON BEHALF OFT HE BOARD OF DIRECTORSCHARTERED ACCOUNTANTS F.R. NO. 113602W

(Hemangi Mulaokar)

(Bhupendra Lakhawala) (R.P. Gupta)

PARTNER CHAIRMAN MANAGING DIRECTORM. NO. 127083

(Gaurang Bhatt) (Monika H. Pandya)


PLACE : AHMEDABAD PLACE : GANDHINAGAR

DATED : 29th Sept. 2014 DATED : 29h Sept. 2014



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(`(`(`(`(` in lacs)Note 2 Reserves and surplus

Particulars For the year ended For the year ended 31 March, 2014 31 March, 2013

Surplus / (Deficit) in Statement of Profit and Loss

Opening balance 317.23 270.00

Add: Profit / (Loss) for the year 44.24 47.23

Amounts transferred from:

prior period - -

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Other reserves (give details) - -

Less: Interim dividend - -

Dividends proposed to be distributed to equity

shareholders - -

Tax on dividend -

Transferred to:

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Capital redemption reserve - -

Debenture redemption reserve - -

Other reserves (give details) - -

Closing balance 361.47 317.23

Total 361.47 317.23

Note 3 Other long-term liabilities (`(`(`(`(` in lacs)

Particulars For the year ended For the year ended31st March, 2014 31st March, 2013

(a) Trade Payables: 3192.06 2892.48

(b) Others:

Grant Repayable 3.41 0.00

Outstanding Liabilities 2.12 0.00

Trade / security deposits received 2,268.43 2,268.43Interest accured & dueOn Loan from Govt.of Gujarat for construction Branch 5.36 5.36On Surplus Payable to Govt. of Gujarat 5,456.31 5,510.38Advance from GSDMA 165.82 165.82GOG fund for Model FPS 15.30 15.45Director of Food (Relief) 179.24 179.24Grant in Floods Riots & Others (Pending Utilization) 559.83 559.83



(`(`(`(`(` in lacs)

Sugar / Cement Price Equalisation Fund 871.87 606.97Adminitrative Charges SPEF / CPEF 28.69 28.69

Total 12,748.44 12,232.67

Note 3.1 "Trade Payable" includes:-

(a) ` 880.93 lacs (previous year ` 880.93 lacs) payable to Food Corporation of Indiarelating to periodic price revisions for food grains collected from Fair Price Shopson behalf of Food Corporation of India. The Corporation, however, is notcontingently liable for the amounts not remitted by Fair Price Shops.

(b) ` 1034.65 lacs (previous year ` 1034.65 lacs) payable to ‘Commissioner of Relief ’relating to sale proceeds of surplus stock remaining after free distribution duringdrought periods and Flood Relief.

(c) Following amounts are owing to the respective schemes for utilization of theirstocks in the ‘Above Poverty Line’ and ‘Below Poverty Line’ schemes:

(`(`(`(`(` in lacs)

Paticulars As at 31/03/2014 As at 31/03/2013

Commissioner of Gram Vikas 114.07 0.00

Commissioner of Health – SATTU DNP 128.07 0.00

Note 3.2 Trade and Security Deposit Received includes :-

(a) `2,795.63 lacs ( ` 527.20 lacs are in current liabilites ) out of which ` 2625.66 lacsare reconciled confirmed. Outstanding more than 3 year are ` 144.86 lacs.

Note 3.3 “ Adminitrative Charges SPEF / CPEF ” includes :-

(a) Final approval from the Government of Gujarat is pending for balance of cementadministrative charges of ` 2.17 lacs (Previous year ` 2.17 lacs).

(b) Final approval from the Government of Gujarat is pending for balance of Sugaradministrative charges of ` 26.53 lacs (Previous year ` 26.53 lacs).

Note 3.4 “ Sugar / Cement Price Equlization Fund ” includes :-

(a) ` 418.14 lacs ( Previous year ` 153.26 lacs ) being price difference as and whenreceived / paid from / to Nominees / FCI in respect of levy suger is credited /debited to Sugar Price Equlization Fund managed by the Corporation on behalf ofGovernment of Gujarat.

(b) ` 409.41 lacs ( Previous year ` 408.52 lacs ) being price difference received fromstockist in respect of Levy cement is credited to Cement Price Equlization Fundpayable to Government of Gujarat.



(`(`(`(`(` in lacs)

(`(`(`(`(` in lacs)

Note 4 Short-term borrowings

Particulars For the year ended For the year endedMarch 31, 2014 March 31, 2013

Other loans and advances

Unsecured

Surplus payable to Govt. of Gujarat 0.00 2,438.73

Opening Balance 2438.73

Add: Adjustment for Previous year 0.11

Add: Additions during the year 6978.79

9417.63

Less: Adjustments during the year 38.84

Less: Paid during the year 2400.00

Less: Commission to the Corporation 6978.79 0.00 2438.73

Total 0.00 2438.73

Note: The Company has not provided any security against above short term borrowings.Repayment terms are also not defined by the Govt. of Gujarat. The Company has notdefaulted in repayment of loans and interest.

Note 5 Trade payables (`(`(`(`(` in lacs)Particulars For the year ended For the year ended

March 31, 2014 March 31, 2013

Trade paya bles: 9,605.57 5,909.58

Total 9,605.57 5,909.58

Note 6 Other current liabilities

Particulars For the year ended For the year ended March 31, 2014 March 31, 2013

Other payables

(i)Statutory remittances 63.58 14.29

(Contributions to PF and ESIC, Withholding

Taxes, Excise Duty, VAT, Service Tax, etc.)

(ii) Trade / security deposits received 527.20 25.75

(iii) Outstanding Liabilities 1,911.13 1,848.46



32

(iv) Inter Scheme Stock Transfer 3,081.90 2,815.34

(v) Advances from customers 0.00 0.00

(vi) Wrong Credit given by Bank 0.00 12.84

(vii) Advances from State Government 4,691.10 2,955.27 (different Scheme)

(viii)Unpaid Expenses 10.84 0.00(ix) Grant in Aid / Subsidies 2,776.58 1,812.77 (Pending Utilization)

(x) TDS Payable 0.66 0.00 Total 13062.99 9484.71

Note 6.1 Other Current Liabilities includes:

(a) ` 31.62 lacs (previous year ` 33.45 lacs), relating to the deduction on account ofPF from the payment to contractors having no PF registration.

(b) ` 58.82 lacs (previous year ` 59.68 lacs), pertaining to Levy Cement Allotteesaccount, is subject to reconciliation.

Note: 6.2 Inter Scheme Stock TransferThe Corporation has changed accounting treatment with reference to accounting for InterScheme Stock Transfer from the year 2011-12. Due to this accounting treatment balanceof Inter scheme stock transfer account as on 31st March, 2014 is `3081.90 lacs ( previousyear ` 2815.33 lacs ).There is no effect on statement of profit & loss of the Corporationfor the year ended 31st March, 2014.

Note 7 Short-term provisions` in lacs


Provision for Employee benefit

1. Provisions for Gratuity 377.90 0.002. Provision for Leave Encashment 179.12 0.00Provision - others1. Wealth Tax provision 1.08 0.36

Total 558.10 0.36



33

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34

Note 8

(a) Godowns valuing ` 4.58 lacs (previous year ` 4.58 lacs ) transferred by Governmentof Gujarat. for which Conveyance Deeds are yet to be executed.

(b) Godowns valuing `158.41 lacs (previous year `158.41 lacs) transferred to theCorporation at the time of incorporation, for which the ownership of the land on whichsuch godowns are located rests with Government of Gujarat.

(c) Out of subsidy/Grant received from Government of Gujarat. `10.20 lacs and 990.94lacs (previous year `941.89 lacs and 221.33 lacs) utilsed for purchase of computersand construction of godowns respecttively has been reduced from the cost ofacquisition leaving a nominal value of 1.00 for each asset items. Capital expendituresfor construction of godowns in excess of subsidy/grant is treated as Corporationown assets and depreciation at applicable rates is charged accordingly (ReferAccounting Policy No.10 and 15 of Note No. 27)

(d) Assets purchased out of Government Grant/Subsidies have been shown at a nominalvalue of ` 1.00 and included in WDV at the year end.

(e) Amount paid for land purchased ` 287.84 lacs out of Government Grant / Interestpayable to Government have been show at a nominal value of ` 8.00 and included inWDV at the year end.

(f) Office Buldings includes 10,350/- being cost of 3 shares held in Sindhu ResettlmentCorporation, Adipur on which depereciation is not considered.

(g) (i) The value of mobile vans doesn't include the cost for 4 (P.Y.4) mobile vans receivedfrom Govt. of Gujarat by way of 100% Grant.

(ii) The Capital expenditure incurred for 4 (P.Y. 4) mobile vans out of the above hasbeen capitalised.

(h) Godown equipments have been treated as Furniture & Fixtures and Depreciation @18.10% has been provided.



35

Note 9 Long-term loans and advances

(` in lacs)

Particulars As at 31 March, 2014 As at 31 March, 2013

(a) Security deposits

Unsecured, considered good 6.89 10.10

Doubtful 0.00 0.00

6.89 10.10

Less : Provision for doubtful deposits 0.00 0.00

6.89 10.10

(b) Loans and advances to employees

Secured, considered good 354.13 421.39

Less : Provision for doubtful Loans

and advances 0.00 0.00

354.13 421.39

(c) Advance income tax and TDS 8.72 1.90

(d) Advance Welth tax 0.77 0

(e) Other loans and advances

(i) CPEF Admininistrative Charges

Recoverable


Doubtful 0.00 0.000.80 0.84

Less : Provision for other doubtful

loan and advances 0.00 0.00

0.80 0.84

(ii) Other advances Rcoverable in cash or kind


Doubtful 40.52 40.52

841.57 841.57

Less : Provision for other doubtful loans and

advances 40.52 40.52 801.05 801.05

Total 1,172.36 1235.29



36

Note 10 Other non-current assets

(` in lacs )


Long-term trade receivables

Secured, considered good (Government) 0.00 0.00


Doubtful 81.53 81.53

699.37 85.72

Less: Provision for doubtful trade receivables 81.53 81.53

617.83 4.19

Total 617.83 4.19

Note 11 Inventories ( ` in lacs )


(a) Raw materials 0.00 0.00

(b) Finished goods 0.00 0.00

(c) Stock-in-trade (acquired for trading) 2,460.97 1,777.53

Total 2,460.97 1,777.53

Note : Method of Valuation of Stock

Inventories of Departmental Stores and free sale items of Mobile shops are valued at lower of purchaseprice or net realisable value and rest of items inventories are valued at lower of cost or net realisable value.

Note 12 Trade receivables (` in lacs )

Particulars As at March 31, 2014 As at March 31, 2013Current Trade Receivable(a) More than six months(From the date they were due for payment)Considered good 0.89 0.24(b) OtherConsidered good 2,388.64 868.93Net Trade Receivables 2,389.53 869.17Classification of Current Trade Receivable

Secured, Considered good 0.00 0.00UnSecured, Considered good 2,389.53 869.17UnSecured, Considered doubtful 0.00 0.00Total Current Trade Receivables 2,389.53 869.17



37

Note 13 Cash and Bank Balances

(` in lacs )

Particulars As at March 31, 2014 As at March 31, 2013

Cash and Cash Equivalents(a) Cash on hand 29.90 71.94

(b) Cheques, drafts on hand 2,154.59 233.34

(c) Balances with banks

(i) In current accounts 4,506.10 4,069.33

(ii) In Cash Credit Accounts 18.25 404.49

(iii) In earmarked Accounts

- Balances held as margin money

or security against borrowings, guarantees

and other commitments 0.00 6.00

(d) Remittances in transit (12.66) 0.00

Total 6,696.18 4,785.10

Note 14 Short-term loans and advances

( in lacs )

Particulars As at March 31, 2014 As at March 31, 2013

(a) Loans and advances to employees



Doubtful 0.00 0.00

0.00 122.21

Less: Provision for doubtful loans and advances 0.00 0.00

0.00 122.21

(b) Prepaid expenses - Unsecured, considered good

1. Prepaid Insurance 14.21 17.02

2. Other Prepaid Expenses 0.07 0.00

(c) Inter-corporate deposits


Unsecured, considered good(GSFS LTD.) 3,600.00 10,052.00

Doubtful 0.00 0.003,614.28 10,069.02

Less: Provision for doubtful inter-corporate deposits 0.00 0.00 3,614.28 10,069.02



38

(`(`(`(`(` in lacs )


(d) Others (i) Subsidy Receivable

Secured, considered good 0.00 0.00Unsecured, considered good 11,820.92 2,244.51Doubtful 0.00 0.00

11,820.92 2,244.51Less: Provision for other doubtful loans and advances 0.00 0.00

11,820.92 2,244.51 (ii) Other Loans and Advances Receivable in cash or Kind Secured, considered good 0.00 0.00 Unsecured, considered good 6,819.04 8,904.23 Doubtful 0.00 0.00

6,819.04 8,904.23Less: Provision for other doubtful loans and advances 0.00 0.00

6,819.04 8,904.23Total 22,254.24 21,339.97

Note 15 Other current assets

( ` ` ` ` ` in lacs)


(a) AccrualsInterest accrued on deposits 8.29 25.03

(b) OthersLess credit by Bank 13.16 0.00

Total 21.45 25.03



39

Note 16 Revenue from operations

(`(`(`(`(` in lacs )


(a) Sale of products 1. Government Activities ( Refere Note (ii) below) 147,263.51 144,335.94 2. Corporation Activities ( Refere Note (ii) below) 30,563.96 47,477.98(b) Other Operative incomes( Refer Note (i) below) 12,558.43 17,129.57Gross Revenue from Operation 190,385.90 208,943.50Note (i)Other Operating income comprise:

1.Commission from Govt of Gujarat (Corporation) 6,978.79 6,403.62 2.Reimbursement of handling charges (Govt.) 4,177.47 3,116.66 3.Reimbursement of admn chag/comm SPEF 0.00 15.17 4.Reimbursement of RFFC claims 74.06 0.00 5.Agency Commission 30.04 2,923.51 6.Grant from State Govt for Mobile van operation 23.21 25.07 7.Price Diff due from SPEF 1,274.86 4,645.54Total 12,558.43 17,129.57

Note (ii)

Particulars For the year ended For the year ended31 March, 2014 31 March, 2013

SalesTraded goodsWheat 85,476.37 90,422.64

MSP Paddy 0.00 0.00Rice 22,798.53 24,631.50Atto 0.00 0.00Soya Flour 0.00 0.00Bajara 0.00 0.00Nutri. Candy(PKTS)

363.32 839.86

Tur Dal 5,102.86 4,586.70Moong Dal 1,289.57 2,423.22Maize 0.00 102.72Gram 323.21 596.18Gram Dal 4,063.92 2,050.17Palmolein Oil 9.44 11,818.03Cottonseed Oil 9,511.72 6,864.92Levy Sugar 1,771.04 10,455.56Cement 12,447.68 18,661.64Salt 918.52 1,200.87Miscellaneous 33,751.29 17,159.92

Total 177,827.47 191,813.93



40

16 (iii) In view of the clarifications vide G.R.No.CSC-1083-4089-E from the Government of Gujarat,inter branch transfers of commodities under Public Distribution System dealt by theCorporation on Government account are made to Mobile shops run by the Corporation at ex-godown rates for issues to Fair Price Shop and treated as Sales on Government accountand purchases on the Corporation account. The sales and purchases are therefore higher by` 6.16 lac (previous year ` 6.59 lacs ).

16 (iv) Sales of Salt includes ` 516.83 lacs (previous year ` 664.50 lacs) and sales of Sugarinclude ` 1473.82 lacs (GOG) and ` 9,547.11 lacs(GOI) being difference betweenprocurement cost and concessional price on account of Government Subsidy/ Grant utilisedduring the year.

16 (v) Pending resolution by State Govt.4.53 % handling commission amounting to ` 6,978.79 lacs (P.Y. ` 6403.62 lacs) on the turnover of Food grains and Edible Oil in Govt. account including notional value of Food grains distributed free of cost in various schemes, hasbeendisclosed under “other income” on the basis of proposal submitted by the corporation vide its letter no. Napuni/411/ways & means/treatement /PDS/2013-14 dated 06-09-2014 and 12-09-2014.

16 (vi) Handling commission in respect of Sugar Price Equalization Fund Account for the period commencing on or after 01-04-2004 is accounted for on the basis of rates approved by the Central Government for the year 2003-04. However, Govt. of India vide letter no. 18(4)/96- SPY.D.II/CC/335 dated 25.07.2013 revised the rates provisionally for the year 2004-05 to 2009-10 which is corporation lost the clalims to FCI for ` 525.62 lacs against which FCI had sanctioned ` 333.71 lacs this includes ` 19.51 lacs for private Nominees and ` 314.19 lacs for corporation nominee and accounted in the year 2013-14. The differential claim is not accounted for and the same will accounted as and when sanctioned by FCI. Handling Commission for the year 2010-11 onwards is yet not sanctioned by Central Government. Necessary adjustment will be given as and when sanctioned by the Central Government.

16 (vii) Free Stock :

A. Free stocks are supplied under various Central / State Government Schemes. At yearend, the Corporation has accounted ` 6,793.60 lacs(previous year ` 6,337.56 lacs)handling charges shown under the head “ Other Income”

B. VGBS Wheat distruted under VGBS and corporation has accounted ` 1.8 lacs16 (viii) Government activty sales has been reduced by ` 3,535.25 lacs and treated advance

given by Government of Gujarat for year 2014-15 as per proposal submitted by the corporation vide its letter no. Napuni/411/ways & means/treatement /PDS/2013-14 dated 12-09-2014.



41

17. Other Income (` in lacs)


(a) Interest income1.Interest from banks on:

Deposits 113.81 1.34 Other balance 0.45 74.15

2. Interest on loans and advances: Inter Corporate Deposits 116.23 47.73 Staff Advances 11.05 14.38 Interest on income tax refund 0.00 0.03

(b) Profit on sale of fixed assets 3.29 2.55(c) Sundry Credit Balances Written Back (Corporation) 20.66 0.00(d) Excess Provision written back : - 1.Gratuity 68.89 2. Leave encashment 42.01(e) Commission PE Fund 2.24 -(f) Miscellaneous Income 511.79 437.55

Total 779.52 688.63

Other Income includes:

17 (i) Claims received for ` 74.06 lacs (previous year ‘NIL) from Food Corporation of India for lifting Wheat & Rice under various Schemes of Government of Gujarat, shown under the head of Reimbursement of RFFC claims. (Aggregate claim outstanding as on 31st March,2014 for 212 lacs )

17 (ii) Handling commission in respect of Sugar Price Equalization Fund Account for the period commencing on or after 01-04-2004 is accounted for on the basis of rates approved by the Central Government for the year 2003-04. However, Govt. of India vide letter no. 18(4)/96-SPY.D.II/CC/335 dated 25.07.2013 revised the rates provisionally for the year 2004-05 to 2009-10 which is yet to be accepted by the Corporation after due verification. Necessary adjustment, if any, will be given at the time of final outcome of verification.

17 (iii) Grant received from Government of Gujarat and utilised for operartion of mobile van for Rs.20.73 lacs (previous year 22.65 lacs) and grant from industries commissioner 2.47 lacs.

17 (iv) Cases of frauds, misappropriations and cash shortages/theft aggregating to 185.66 lacs (previous year 76.01 lacs ) are pending for recovery/under investigation/ in various courts. The same have been written off in the accounts of respective year. Amounts recovered during the year 4.92 lacs (P.Y.

` 6.26 lacs) have been credited to Misc. Income.



42

(`(`(`(`(` in lacs )

(` in lacs )

(` in lacs )

18. Purchase of Goods Particulars For the year ended For the year ended

March 31, 2014 March 31, 2013Traded GoodGovt. Activities 125,701.41 120,499.25Corporation Activities 30,209.76 50,285.00Total 155,911.17 170,784.25

19. Changes in inventories of finished goods, work-in-progress and stock-in-trade


Inventories at the end of the year:Govt. Activities 1,869.79 858.11Corporation Activities 591.18 919.42

2,460.97 1,777.53Inventories at the beginning of the year:Govt. Activities 858.12 1,468.13Corporation Activities 919.42 1,173.09

1,777.54 2,641.22Less:- Adjustments for utilisation of stock for inter scheme 0.00 15.52

1,777.54 2,625.70Net (increase) / decrease (683.43) 848.17

20. Employee benefits expenses Particulars For the year ended For the year ended

March 31, 2014 March 31, 2013Salaries and wages 5,626.35 5,419.06Contributions to provident and other funds 1,396.61 666.94Staff welfare expenses 74.58 76.77Total 7,097.54 6,162.76

Note 20 (i)Managerial RemunerationDetails of Remuneration paid to the Managing Director included in ‘Employees Benefits Expenses’are as follows:


Salaries 14.99 6.62Pension and Leave Salary contribution 14.58 0.00Perquisites 0.27 0.06Total 29.84 6.6820 (ii) As per the G R of Govt. of Gujarat dated 12.02.2009, the Corporation has implemented the

“Sixth Pay Commission”. Since the Company follows the cash basis of accounting for“Arrears of Pay & Allowance due to revision in the Pay scales” (Note 27 Point No. 8(b)(iii),

(` in lacs )



43

the same would be accounted for as and when paid. Out of total liabilities of Rs.1734 lacs,`1382.23 lacs paid till 31st March,2013 and remaining amount is paid in current year.

21. Finance costs ( `. in lacs)


(a) Interest expense on: (i) Borrowings Cash Credit(ii) Others - Interest paid to MMTC 0.00 87.80 - Interest on Surplus Funds (Government) 197.17 333.32 - Interest on loan from GSFS 7.76 253.49(b) Other Borrowing Costs( Bank Charges) 2.60 3.89Total 207.53 678.50

22. Other expenses(`. in lacs)


Procurement & Handling charges - Transportation and Frieght charges 5,994.44 5,754.16 - Labour Handling and Octroi Charges 1,893.70 1,856.83 - Market Cess and Fees 1,030.60 892.29Commission to Corporation 6,978.79 11,921.78Consumption of packing materials 0.00 480.57Packing Expense (Government 64581 + Corporation 283) 0.65 0.65Rent including lease rentals 41.34 140.03Repairs and maintenance - Buildings 189.15 237.82Repairs and maintenance - Others 77.78 70.13Insurance 18.45 36.79Fortification Expenses (Govt.) 2.13 0.00Rates and taxes 38.06 30.54G Vat expenses (0.15) 0.20GVAT (corpo.) 25.21 0.00GVAT Interest (corpo.) 2.19 0.00Directors’ sitting fees 1.22 0.97Directors travelling exps 1.89 0.50Service Tax( Government 5897 + Corporation 5,145,492) 51.51 22.41Sales & Distribution Expenses (FPS) 11,384.47 8,920.13Payments to auditors (Refer Note 22.1 below) 4.41 5.22Bad trade and other receivables, loans and advances written off 0.00 2.66Sundry Dr. balance W/o 1.63 0.00Prior period items (net) (Refer Note 22.2 below) (8.24) 13.60Miscellaneous expenses (Corporation + Government) 743.38 606.86Total 28,472.61 30,994.14



44

(`(`(`(`(` in lacs )

22.1 Auditors Remuneration (`(`(`(`(` in lacs )Particulars For the year ended For the year ended

March 31, 2014 March 31, 2013Payments to the auditors :-As auditors - statutory audit 3.09 3.09For taxation matters 1.01 0.51For company law matters 0.00 0.00For management services 0.00 0.00For other services 0.00 0.45Reimbursement of expenses 1.17Total 4.41 5.22

22.2 Details of Prior period items (net)Prior period expenses :Sales 0.00 1.09Interest 0.00 8.60Bonus 0.00 0.26Other deduction 0.00 0.25Rent, Rates and Taxes 0.79 0.92Miscellaneous Expenses (Corporation) 8.24 2.57Labour Chargres 3.29Security 0.27Depriciation 0.50 0.00Impairment Loss 0.00 1.00Prior period income :Purchases 0.56 1.08Reversal of Depreciation on computer 8.06 0.00Computer Maintenance 7.33 0.00Misc. Income 5.38 0.00Total (8.24) 13.60

23. Contingent Liabilities and Capital Commitments (To the extent not provided)

(` (` (` (` (` in lacs )

(a) Contigent Liabilities For the year ended For the year endedMarch 31, 2014 March 31, 2013

Contingent liabilities and commitments(to the extent not provided for)Contingent liabilities(a) Claims against the Company not acknowledged as debt 3,500.72 3,420.30(b) Guarantees to IOC for Petrol Pumps( Net of Margin) 18.00 18.00(c) Other money for which the Company is contingently liable ** Present/past employees of the Corporation have filed 23 (previous year 22) cases forreinstatement, promotion, transfer and staff related matter (Amount is not ascertainable).



45 45

0.31

(` (` (` (` (` in lacs )(b) Capital Commitments For the year ended For the year ended

March 31, 2014 March 31, 2013CommitmentsEstimated amount of contracts remaining to be executed oncapital account and not provided for Tangible Assets 432.31 349.56

24. Disclosure required under Section 22 of Micro, Small amd Medium EnterprisesDevelopment Act, 2006The Corporation has received a notice dated 09.07.2012 from The Honourable Madhya PradeshMicro, Small & Medium Enterprise Facilitation Council, Bhopal, claiming interest on delayed paymenttowards the purchase of Soya under MSMED Act, 2006. Out of which ` 235.48 lacs (P. Y. ` 133.81lacs) pertains to the period up to 31st March, 2014.

As the matter is under investigation of CID crime, Gujarat, no provision has been made in the booksof accounts for the interest on delayed payment. However, the same has been shown as contigentliabilities and included under the head of “Claims against the Corporation not acknowledge as debts”.

25.Details of fixed assets held for sale (`(`(`(`(` in lacs )


Building 0.00 0.00Plant and machinery 0.00 0.00Office equipment 0.00 0.00Vehicles 0.00 0.00Others (give details) 0.00 0.00Total 0.00 0.00

26.Details of Imported and Packing Materials (`(`(`(`(` in lacs )


Value of imports calculated on CIF basis NIL NILExpenditure in foreign currency NIL NILDetails of consumption of imported and indigenous itemsPacking Materials` 0.00 480.57% 0.00 100.00%



46

Note : 27

CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES FOR THEYEAR ENDED ON 31st MARCH, 2014

1. CORPORATE INFORMATION

The Gujarat State Civil Supplies Corporation Ltd. is established in the year 1980 with a motive toproviding services. The Corporation is carrying out various activities like procurement, storageand distribution of food grains, coarse grain, edible oils, sugar etc. for the effective implementationof Public Distribution System in the state.

2. ACCOUNTING CONVENTION

The Financial Statements have been prepared under the historical cost convention. The Corporationconsistently follows Mercantile System of accounting as required under the provisions of theCompanies Act, 1956, unless otherwise stated anywhere. Accounting Policies not specificallyreferred to otherwise, are consistent and in consonance with Generally Accepted AccountingPrinciples. In applying the accounting policies, consideration has been given to Prudence,Substance over Form and Materiality.

3. USE OF ESTIMATES

Estimates and assumptions are based on management's evaluation of the relevant facts andcircumstances as of the date of the financial statement that affect the reported amount of Assetsand Liabilities and the reported amount of revenues and expenses during the reported period.Differences between the actual results and the estimates are recognized in the period in whichthe results are known / materialized.

4. REVENUE RECOGNITION

GOVERNMENT ACCOUNT

(a) Income of handling charges is recognized as follows:

(i) For SGRY-S.S.Y., SGRY SP. Component, New FFW, Riot Relief, Flood ReliefNFWFP, NREGS, VGBS, Annapurna, EBBS and MDM Scheme on the basis ofissues made.

(ii) For ICD Scheme, in case of Wheat procured for converting it in to Atta, on thebasis of procurement of Wheat otherwise on the basis of procurement and forother commodities on the basis of issues made.

(b) Sales is recognized as follows:

(i) The sales of food grains and edible oils are recognized when actual delivery fromthe storage of the Corporation takes place. Sales price is inclusive of VAT.

(ii) For ICD Scheme, in case of Wheat & Atta on the basis of procurement of Wheatand for other commodities on the basis of procurement /receipt of commodities.

(iii) For MDM Scheme, other than free stock, on the basis of procurement/receipt ofcommodities.



47

CORPORATION ACCOUNT

(a) Revenue in respect of sale of Cement, Sugar, Petroleum Products, Departmental Storesand Iodized Salt is recognized on dispatch of products to the customers.

(b) Agency commission in respect of COCO petrol pump is accounted for on the basis ofquantity received during the year.

5. GOVERNMENT ACTIVITIES

(a) According to the terms of Resolution No. CSC-1083-4089-E of F& CSD, the Governmentof Gujarat, dated 6th July, 1991, the transactions on account of Wheat, Rice, Coarse grains,Pulses and Edible oils entrusted to the Corporation on a fixed service margin are included in theaccounts of the Corporation. The net resultant surplus / deficit arising out of these operations forthe year and previous year's unpaid balance, is shown as "Unsecured Loans" payable toGovernment of Gujarat.

(b) The fixed service margin allowed by the State Govt, to the Corporation is accounted foras Income of the Corporation.

(c) Overhead expenses relating to procurement, handling, packing and other directmiscellaneous expenses in respect of Government transactions entrusted to the Corporationhave been borne by the Government and other than above mentioned expenses have beenborne by the Corporation and debited under the respective head of account.

(d) Interest and financial charges are allocated to Government and Corporation activitiesbased on value of annual average inventory held during the year.

(e) Interest has been provided on the opening balance of surplus account after adjusting theprior period adjustments and transactions in respect of Govt. activities.

(f) No interest is provided on "Interest Accrued on Government Surplus Funds"

6. PURCHASES

(a) Purchases of Coarse grains & Pulses are accounted for on the basis of quantity received.

(b) Purchases of Food Grains, Sugar, Edible Oils, Cement and other commodities areaccounted for on the basis of quantity lifted from the storage of suppliers/procurement as thecase may be.

7. FREE STOCK

Stocks of Commodities supplied free of cost to the Corporation for distribution under variousschemes of Central/State Government and their respective receipts and issues are not accountedfor in the books of account of the Corporation. Handling charges on the above stock is accountedfor, on the basis of issues made.



48

8. INCOME AND EXPENDITURE

Due to special nature of activities pursued by the Corporation, the following items of income/expenditure are treated on realization/payment basis:

(a) Income:

(i) Price difference in respect of commodities.

(ii) Recovery of shortages/damages from the transport contractors/employees & otherrecoveries.

(iii) Recovery of Railway Freight Forwarding Charges from Food Coiporation of India.

(iv) Leave salary recoverable.

(v) Sales of substandard/damaged stock of various Commodities.

(vi) Insurance claims.

(b) Expenditure:

(i) Encashment of Credit Notes in respect of rebate against issues made under specified

schemes.

(ii) Leave salary and pension contribution for deputation staff.

(iii) Arrears of Pay and allowances, Leave Salary & Gratuity due to revision in the pay scale.

(c) In case of municipal taxes and market cess, the same is accounted for on the basis of billsreceived.

9. INSURANCE & INSURANCE CLAIMS

The Corporation has paid insurance premium for composite policy of all commodities including

commodities related to Government activities which has debited to Corporation account and

Insurance claim received for damaged/lost/theft etc. for all commodities has been credited to

Corporation account.

10. FIXED ASSETS

Fixed Assets are stated at their original cost including incidental expenses related to acquisition

and installation, less accumulated depreciation and net of grants received /receivable. Cost

comprises of the purchase price and any other attributable cost of bringing the assets to its

working condition for its intended use.

In case of construction work-in-progress, accounting has been done on the basis of Running

Account bills received up to year end.

11. DEPRECIATION

(a) The depreciation on fixed assets is provided on "Written Down Value Method" at the rate

prescribed in Schedule XIV of the Companies Act for all its assets during the year under

consideration.



49

(b) Assets costing less than Rs. 5000/- are charged off as depreciation during the year of

purchase / installation.

(c) From 1-04-2007 purchase of telephone instruments & calculators is fully charged to profit

and loss account.

(d) Depreciation on additions during the year is charged on pro rata basis from the date of

addition/put to use.

(e) Depreciation on Fixed Assets sold/discarded/demolished during the year is charged on

pro rata basis up to the date of assets sold/discarded/demolished during the year.

12. INVENTORIES

(a) Inventories are valued as under:Particulars Method of Mode of

Valuation of Stock ascertaining costDepartmental Stores and At lower of purchase price On FIFO basisfree sale items of Mobile shops or net realizable value.Other than items of Departmental At lower of cost or net Weighted averageStores and free sale items of realizable value.Mobile Shops

(b) The stock except Goods-in-Transit at the end of the accounting year is physically verifiedby the Management and firms of Chartered Accountants. The stock including Goods-in-Transit is valued by the Management and where the stocks are held by State/CentralWarehousing Corporation & at flour mills are accounted for on the basis of certificatesfurnished by them. The closing stock of substandard/damaged stock of variouscommodities are not valued and accounted for.

(c) Transit, Storage & Cleaning losses are written off to the Profit & Loss Account in the yearin which it is ascertained. Pending examination of such losses, the recovery, if any, will beaccounted for as and when made.

(d) In case of departmental Stores and Mobile shops, the determination of obsolete items ismade at the time of disposal.

(e) The value of tins, tin plates, barrels, gunny bags and stationery purchased during theyear is fully charged to the Profit and Loss Account.

13. EMPLOYEE BENEFITS

(a) Defined Contribution plan

Company's contribution paid/payable for the year to defined contribution plan is charged to Profitand Loss Account.



50

(b) Defined Benefit plan

The obligations towards defined benefit plans are determined using the Projected Unit CreditMethod. Actuarial valuations under the Projected Unit Credit Method are carried out at the balancesheet date. Actuarial gains and losses are recognized in the Profit and Loss account in theperiod of occurrence of such gains and losses

The retirement benefit obligation recognized in the balance sheet represents the present value ofthe defined benefit obligation as reduced by the fair value of plan assets.

(c) Short-term employee benefits

Short-term employee benefits expected to be paid in exchange for the services rendered byemployees are recognized undiscounted during the period employee renders services.

14. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition, construction or production of aqualifying asset are capitalized as part of the cost of that asset. Borrowing costs other than that

are directly attributable to a quantifying asset are recognized as expenses in the period in whichthey are incurred.

15. GOVERNMENT GRANTS

Capital Grants relating to specific assets are reduced from the gross value of the assets.

Subsidies from Government of Gujarat for price differences in respect of issues made underdifferent schemes are included under sales.Excess grant over actual is treated as Advancegiven by Govt. of Gujrat / Subsidy refundable to State Govt.

Grant from Govt. of Gujarat for the operations of Mobile Vans is treated as Miscellaneous Income.

16. SEGMENT REPORTING

The following specific accounting policies have been followed for segment reporting:

(a) Segment Revenue includes income from commodity sales and other income directlyidentifiable with/allocable to the segment.

(b) Income which is not allocable to a particular business segment is included in "UnallocableIncome".

(c) Expenses which are directly identifiable with/allocable to the segment are considered fordetermining Segment Results. Expenses which are not allocable to a particular businesssegment are included under "Unallocable Expenditure".

(d) Assets and Liabilities which are not directly identifiable with a particular segment areincluded in "Unallocable assets and liabilities".

17. ACCOUNTING FOR TAXES ON INCOME

(a) Current Tax

Provision for current tax is made after taking into consideration taxable income for the yearunder the provisions of the Income-tax Act, 1961.



51

(b) Deferred Tax

Deferred Tax is recognized as per AS 22 "Accounting for Taxes on Income" issued by the ICAI.

Deferred tax resulting from "timing difference" between book and taxable profit is accounted forusing the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

The deferred tax asset in case of unabsorbed depreciation and carried forward loss is recognizedand carried forward only to the extent that there is a virtual certainty that the asset will be realizedin future.

18. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that anasset may be impaired. If any such indication exists, the Company estimates the recoverableamount of the asset. If such recoverable amount of the asset or the recoverable amount of thecash generating unit to which the asset belongs is less than its carrying amount, the carryingamount is reduced to its recoverable amount.

The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. Ifat the Balance Sheet date, there is an indication that if a previously assessed impairment lossno longer exists, the recoverable amount is reassessed and the asset is reflected at therecoverable amount.

19. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of a pastevent that probably requires an outflow of resources and a reliable estimate can be made of theamount of the obligation. A disclosure for a contingent liability is made when there is a possibleobligation or a present obligation that may, but probably will not, require an outflow of resources.Where there is a possible obligation or a present obligation that the likelihood of outflow of resourcesis remote, no provision or disclosure is made.



52

NOTES TO THE FINANCIAL STATEMENT

Note 28 (i) Employee benefit plans

Defined contribution plansThe Company has recognized an amount of Rs.1395.44 lacs (previous year Rs.556.04 lacs) asexpenses (net of realised gains) under the defined contribution plan in the Profit & Loss account forthe year ended 31st March, 2014 towards provident and other funds.

Defined benefit plansThe Company makes annual contributions to the Employees’ Group Gratuity and leave encashmentto the LIC of India, a funded defined benefit plan for qualifying employees.The most recent valuation of plan assets and the present value of the defined benefit obligation forgratuity and leave encashment were carried out as at March 31, 2014 by LIC of India.

The following table sets out the funded status of the defined benefit schemes and the amountrecognised in the financial statements: (`(`(`(`(` in lacs )

Particulars For the year ended For the year endedMarch 31, 2014 March 31, 2013Gratuity Leave Gratuity Leave

Encashment EncashmentComponents of employer expenseCURRENT SERVICE COST 165.72 204.42 173.49 42.08INTEREST COST 374.52 263.72 378.48 263.47EXPECTED RETURN ON PLAN ASSETS 400.69 282.67 409.17 291.65Curtailment cost/(credit) 0.00 0.00 0.00 0.00Settlement cost/(credit) 0.00 0.00 0.00 0.00PAST SERVICE COST 0.00 0.00 0.00 0.00ACTUARIAL LOSSES/ (GAINS) 309.58 44.11 (210.77) (47.42)

Total expense recognised in the Statementof Profit and Loss 449.13 229.58 (67.97) (33.53)Actual contribution and benefit payments for yearActual benefit payments 580.11 359.65 390.67 255.05Actual contributions 2.35 8.45 435.13 178.29

Net asset/(liability) recognised in the Balance SheetPresent value of defined benefit obligation 4,951.24 3,449.05 4,681.52 3,296.45Fair value of plan assets 4,573.34 3,269.93 4,750.41 3,338.46Funded status[Surplus/(Deficit)]Unrecognised past service costsNet asset/(liability) recognised in the Balance Sheet (377.90) (179.12) 68.89 42.01



53

NOTEST OT HE FINANCIAL STATEMENT

Disclosures under Accounting Standards (contd.) (`(`(`(`(` in lacs )

Particulars For the year ended For the year ended

March 31, 2014 March 31, 2013

Gratuity Leave Gratuity Leave

Encashment Encashment

Change in defined benefit obligations

(DBO) during the year

Present value of DBO at beginning of the year 4,681.52 3,296.45 4,730.00 3,293.37

Current service cost 165.72 204.42 173.49 42.08

Interest cost 374.52 263.72 378.48 263.47

Curtailment cost / (credit) 0.00 0.00 0.00 0.00

Settlement cost / (credit) 0.00 0.00 0.00 0.00

Plan amendments 0.00 0.00 0.00 0.00

Acquisitions 0.00 0.00 0.00 0.00

Actuarial (gains) / losses 309.58 44.10 (210.77) (47.42)

Past service cost 0.00 0.00 0.00 0.00

Benefits paid 580.11 359.65 390.67 255.02

Present value of DBO at the end of the year 4,951.24 3,449.05 4,681.52 3,296.45

Change in fair value of assets

during the year

Plan assets at beginning of the year 4,750.41 3,338.46 4,296.78 3,123.57

Acquisition adjustment 0.00 0.00 0.00 0.00

Expected return on plan assets 400.69 282.67 409.17 291.65

Actual company contributions 2.35 8.45 435.13 178.29

Actuarial gain / (loss) 0.00 0.00 0.00 0.00

Benefits paid 580.11 359.65 390.67 255.05

Plan assets at the end of the year 4,573.33 3,269.93 4,750.41 3,338.46

Composition of the plan assets is as follows:

Insurer Managed Fund 4,573.33 3,269.93 4,750.41 3,338.46

Actuarial assumptions

Discount rate 8.00% 8.00% 8.00% 8.00%

Expected return on plan assets 9.00% 9.00% 9.45% 9.45%

Salary escalation 7.00% 7.00% 7.00% 7.00%



54

Note 28 (ii) Segment Reporting as per AS 17

(a) The Company has identified business segments as its primary segment and there is no reportablesecondary segment. Business segments are primarily Cement including Material Bank, Levy Sugar,Wheat andRice and Other Revenues and expenses directly attributable to segments are reported under each reportablesegment. All other expenses which are not attributable or allocable to segments have been disclosed asunallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosedunder each reportable segment. All other assets and liabilities are disclosed as unallocable.

(` (` (` (` (` in lacs )

For the Year Ended 31st March 2014

Particulars Business Segments Cement Sugar

including Incl. Levy Wheat & Material Bank and Free Rice Others Total Elimination Total

Revenue 12447.68 20095.61 108274.90 37009.28 177827.46 0.00 177827.46(18661.64) (10454.45) (115049.35) (47641.81) (191807.25) (0.00) (191807.25)

Inter-Segment 0.00 0.76 4.00 0.02 4.78 4.78 0.00Revenue (0.00) (1.11) (4.79) (0.78) (6.68) (6.68) (0.00)

Total 12447.68 20096.37 108278.90 37009.30 177832.25 4.78 177827.46(18661.64) (10455.56) (115054.14) (47642.59) (191813.93) (6.68) (191807.25)

Segment Expenses 12324.28 19698.65 94967.00 36809.38 163799.31 163799.31(18498.95) (14595.79) (15297.78) (125085.43) (173477.94) (173477.94)

Segment Result 123.40 397.72 13311.90 199.92 14032.94 4.78 14028.16(162.69) (277.26) (18117.84) (11693.30) (18329.31) (0.00) (18329.31)

Unallocable Exps.(net) 27301.18 27301.18(18393.11) (18393.11)

Surplus Transferred 0.00 0.00To GOG (11921.78) (11921.78)

Other Income(net) 1276.29 284.58 11777.08 13337.95 13337.95(4662.33) (3056.11) (9962.13) (17680.57) (17680.57)

Profit before Tax 69.71 64.93(73.82) (73.82)

Tax Expenses 20.70 20.70(26.59) (26.59)

Net Profit for the year 49.01 4.78 44.23(47.23) (0.00) (47.23)



55

28(ii) (a) Segment Reporting as per AS 17 (Conti.) (`(`(`(`(` in lacs )

Particulars For the year ended 31 March, 2014

Business segmentsCement Sugar incl. Wheat Others Totalincluding Levy and & RiceMaterial Bank free

Segment assets 731.63 9498.92 4186.12 23055.02 35612.51(541.05) (2736.00) (8179.00) (16999.74) (28455.79)

Unallocable assets 1859.19 (1487.24)

Total assets 37471.70(31523.51)

Segment liabilities 2608.80 2615.39 7035.90 11143.71 23403.80(2757.28) (388.71) (9843.57) (17046.71) (30036.27)

Unallocable liabilities 14067.90(1487.24)

Total liabilities 37471.70 (31523.51)

Other informationCapital expenditure (allocable) 0.00

Capital expenditure (unallocable) 98.44(37.01)

Depreciation and amortisation (allocable) 0.00

Depreciation and amortisation (unallocable) 95.10(90.47)

(b)Geographical segment: There is no reportable segment as none of the conditions laid down for determinationof geographical segment are satisfied.



56


28 (iii) Related Party Tansactions

(i) Details of related parties:Description of relationship Names of related partiesKey Management Personnel (KMP) Mr. R.P.Gupta, IAS

Mr. T. Natrajan, IASMr. Vinay Vyasa, IAS

Note: Related par ties have been identified by the Management.(ii) Details of related party transactions during the year and balances outstanding

as at the year end:(`(`(`(`(` in lacs )

Particulars Remuneration Paid Outstanding BalancesKey Managment Personnel 2013-14 2012-13 2013-14 2012-13Dr. Rajeev Kumar Gupta, IAS Nil 6.68 Nil NilMr. T. Natrajan, IAS 0.25 Nil Nil NilMr. Vinay Vyasa, IAS 27.96 Nil Nil NilMr. R.K.Pathak, IAS 1.07 Nil Nil NilSmt. Sangeeta Singh, IAS 0.56 Nil Nil NilTotal 29.84 6.68 Nil Nil



57

NOTES TO THE FINANCIAL STATEMENT (` in lacs)

28 (iv) Earning Per Share

Particulars For the year ended For the year endedMarch 31, 2014 March31, 2013

(a) Earnings per shareBasicNet profit / (loss) for the year 44.24 47.23Weighted average number of equity shares 100,000.00 100,000.00Par value per share 1,000.00 1,000.00Earnings per share - Basic (`) 44.24 47.23DilutedNet profit / (loss) for the year 44.24 47.23Weighted average number of equity shares -for diluted EPS 100,000.00 100,000.00Par value per share 1,000.00 1,000.00Earnings per share, - Diluted (`) 44.24 47.23

(b) Basic (excluding extraordinary items)Net profit /(loss) for the year 44.24 47.23Weighted average number of equity shares 100,000.00 100,000.00Par value per share 1,000.00 1,000.00Earnings per share, excluding extraordinaryitems-Basic( `) 44.24 47.23Diluted (excluding extraordinary items)Net profit /(loss) for the year 44.24 47.23Weighted average number of equity shares -for diluted EPS 100,000.00 100,000.00Par value per share 1,000.00 1,000.00Earnings per share, excluding extraordinaryitems-Diluted(`) 44.24 47.23



58


28(v) Deffered Tax Liabilities/(Asset)


Deferred Tax Liablitiesi) Difference between book Depreciation and Tax Depreciation 175.98 140.24

175.98 140.24Deffred Tax Assetsi) Market Cess 2.46 0.00ii) Rates & Taxes 0.32 0.00iii) Provision for Bonus 0.36 0.00iv) Provision for Doubtful Debt 37.71 0.00

40.85 0.00Net Deffered Tax Liability/(Asset) 135.13 140.24

Note 28(vi)The balances of Trade Receivable, Trade payables, current assets, non current assets , short term and long terrm loans

and advances etc. are subject to confirmation and reconciliation and consequent adjustments, if any.

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’sclassification / disclosure.

The Notes referred to above form an integral part of Balance sheet

FOR PARIKH MEHTA & ASSOCIATES FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

CHARTERED ACCOUNTANTSF.R. NO. 112832W

(Hemangi Mulaokar) (Bhupendra Lakhawala) (R.P.Gupta)

Partner

CHAIRMAN MANAGING DIRECTOR

M. No. 127083

(Gaurang Bhatt) (Monika H. Pandya)


PLACE : AHMEDABAD PLACE : GANDHINAGARDATED:29-09-2014 DATED:29-09-2014



59



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company information - gujarat · 2015-03-24 · to rs.1918.14 crores achieved during the previous...

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