GOBIND SUGAR MILLS LIMITED

BOARD OF DIRECTORS REGISTRAR & SHARE TRANSFER AGENT

Mr. H. S. Bawa
Link Intime India Pvt. Ltd.
Chairman
59C, Chowringhee Road, 3rd Floor,
Kolkata-700 020
Mr. R. S. Raghavan
Tel : 91-033-2289 0540
Managing Director
Fax : 91-033-2289 0539
e-mail : kolkata@linkintime.co.in
Mr. N.G. Khaitan
Mr. N. Suresh Krishnan
Mr. Anil C Gupta REGISTERED OFFICE
Mr. Marco Wadia
Mr. R. N. Ratnam (Appointed w.e.f. 7th Nov. 2012) 9/1, R.N. Mukherjee Road,
Mr. AK Newar (Resigned w.e.f. 4th Sep., 2012) Kolkata - 700 001
Mr. BK Malpani (Resigned w.e.f. 19th Sep., 2012) Tel. : 91-033-2243 0497/8

CORPORATE OFFICE
EXECUTIVES
Mr. Ankush Wadhawan - Company Secretary 5th Floor, Tower-A,
Mr. B. N. Jha - Chief Financial Officer Global Business Park, Sector-26,
M.G. Road, Gurgaon
Haryana
AUDITORS Tel. : 0124-4827800
Fax : 0124-4212046
S.R. Batliboi & Co.
E-mail : ig.gsml@zuari.adventz.com
Chartered Accountants
Website : www.gobindsugar.com
www.adventz.com
ADVOCATES & SOLICITORS
Khaitan & Co. SUGAR MILLS / PLANT LOCATION

P.O. Aira Estate

BANKERS
Dist. Lakhimpur Kheri (U.P.)
State Bank of India Pin : 262 722
State Bank of Hyderabad
IDBI Bank Ltd.

Contents Page No.

Performance at a Glance 2
Notice 3
Directors' Report 9
Management Discussion & Analysis 13
Report on Corporate Governance 20
Auditors' Report 32
Balance Sheet 38
Profit & Loss Account 39
Cash Flow Statement 40
Notes to the Accounts 41
Consolidated Accounts 64

1
 GOBIND SUGAR MILLS LIMITED

PERFORMANCE AT A GLANCE

(Rs. in Laks)

2007-08 2008-09 2009-10 2010-11 2011-12

Gross Turnover 11,405.57 20,365.18 13,533.53 24,837.44 26,786.26

Operating profit 110.28 2,912.32 (1,165.11) 546.79 1.98

Interest & Finance Charges (net) 1,066.31 1,300.75 1,079.60 1,916.37 1,872.94

Depreciation 510.52 450.31 472.66 421.36 421.93

Profit/(Loss) before Tax (1,466.55) 1,161.26 (2,717.37) (1,790.94) (2,292.89)

Exceptional Item (expenses) - - - - (963.48)

Profit/(Loss) after Tax &

Execeptional items (954.48) 790.10 (1,827.28) (1,252.55) (2,280.73)

Net Worth 1,176.47 1,971.25 147.58 (1,096.44) (1,370.41)

Net Worth per

Equity Share (Rs.) 36.76 61.60 4.61 (34.26) (42.82)

Dividend per
Equity Share (Rs.) - - - - -

Earning per
Equity Share (Rs.) (29.83) 24.69 (57.10) (39.14) (71.27)

Cane Crushed (Season)

(In lacs Qtls.) 76.12 53.00 73.89 82.58 93.82

2

NOTICE
Notice is hereby given that the 60th Annual General
Meeting of GOBIND SUGAR MILLS LIMITED will be
held on Friday, 28th December, 2012 at 3.00 P.M. at
the Registered Office of the Company at 9/1, R.N.
Mukherjee Road, Kolkata - 700 001 to transact the
following businesses:
As Ordinary Business:
1. To receive, consider and adopt the Audited
Balance Sheet of the Company as at 30th June,
2012 and the Statement of Profit and Loss for
the financial year ended on that date together
with the Reports of the Directors and Auditors
thereon.
2. To appoint M/s. S. R. Batliboi & Co., Chartered
Accountants as Stautory Auditors of the
Company.
3. To appoint a Director in place of Mr. Nand Gopal
Khaitan who retires by rotation and is eligible
for reappointment.
As Special Business:
4. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
"RESOLVED THAT Mr. H S Bawa, who was
appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and is
hereby appointed as a Director of the Company,
liable to retire by rotation."
5. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
"RESOLVED THAT Mr. N Suresh Krishnan, who
was appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and he is
hereby appointed as a Director of the Company,
liable to retire by rotation."
6. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
3
GOBIND SUGAR MILLS LIMITED
"RESOLVED THAT Mr. Anil C Gupta, who was
appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and is
hereby appointed as a Director of the Company,
liable to retire by rotation."
7. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
"RESOLVED THAT Mr Marco Wadia, who was
appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and is
hereby appointed as a Director of the Company,
liable to retire by rotation."
8. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
"RESOLVED THAT Mr R N Ratnam, who was
appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and is
hereby appointed as a Director of the Company,
liable to retire by rotation."
9. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Ordinary Resolution:
"RESOLVED THAT Mr R S Raghavan, who was
appointed as an Additional Director of the
Company and who holds office up to the date of
this Annual General Meeting pursuant to Section
260 of the Companies Act, 1956, be and he is
hereby appointed as a Director of the Company,
liable to retire by rotation."
10. To consider and if thought fit, to pass with or
without modifications, the following Resolution
as an Special Resolution:
"RESOLVED THAT pursuant to the provisions
of Sections 269 of the Companies Act, 1956 read
with Schedule XIII as amended up to date, Article
96 of the Articles of Association of the Company
and all the guidelines issued by the Central

Government from time to time on the subject,
the Company hereby accords its approval to the
appointment of Mr. R S Raghavan as the
Managing Director of the Company for a period
of three years with effect from the close of the
meeting of the Board of Directors of the Company
held on 28th August, 2012 at remuneration, terms
and conditions mentioned in the explanatory
statement.
Regd Office: By Order of the Board
9/1, R N Mukherjee Road
Kolkata - 700001 Ankush Wadhawan
07th November, 2012 Company Secretary
NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE
AT THE MEETING IS ENTITLED TO APPOINT
A PROXY TO ATTEND AND VOTE INSTEAD OF
HIMSELF AND A PROXY NEED NOT BE A
MEMBER. THE INSTRUMENT APPOINTING
PROXY SHOULD, HOWEVER, BE DEPOSITED
AT THE REGISTERED OFFICE OF THE
COMPANY NOT LESS THAN FORTY-EIGHT
HOURS BEFORE COMMENCEMENT OF THE
MEETING.
2. Corporate members intending to send their
authorised representatives to attend the Meeting
are requested to send to the Company a certified
copy of the Board Resolution authorising their
representative to attend and vote on their behalf
at the Meeting.
3. Members are requested to bring their attendance
slip along with their copy of the Annual Report
to the Meeting.
4. In case of joint holders attending the Meeting,
only such joint holder who is higher in the order
of names will be entitled to vote.
5. In all correspondences with the Company/
Registrar & Share Transfer Agent the members
are requested to quote their accounts/ folio
numbers and in case their shares are held in
dematerialised form, they must quote their Client
ID Number and their DP ID Number.
6. Pursuant to the provisions of Section 205A of
the Companies Act, 1956, as amended, dividend
remaining unclaimed / unpaid for a period of
seven years is required to be transferred to the
4
GOBIND SUGAR MILLS LIMITED
Investor Education and Protection Fund of the
Central Government (Fund). Accordingly, all
unclaimed / unpaid dividends up to and including
the financial year 30th June, 2005 have been
transferred to the said fund. Members who have
not encashed the dividend warrants so far for
the subsequent financial years may make their
claim to the Company / Registrar and Share
Transfer Agent. In terms of Section 205C of the
said Act once the unclaimed/unpaid dividend is
transferred to the Fund no claim in this regard,
shall lie against the Fund or the Company.
7. In terms of provisions of Section 109A of the
Companies Act, 1956, nomination facility is
available to individual shareholders in respect
of shares held by them in physical form. The
Nomination Form 2B prescribed by the
Government can be obtained for the purpose
from the Company/Registrar & Share Transfer
Agent. The said Form 2B can also be
downloaded from the Company's website.
8. The Securities and Exchange Board of India
(SEBI) has mandated the submission of
Permanent Account Number (PAN) by every
participant in securities market. Members
holding shares in electronic form are, therefore,
requested to submit the PAN to their Depository
Participants with whom they are maintaining their
demat accounts. Members holding shares in
physical form can submit their PAN details to
the Company/Registrar and Share Transfer
Agent.
9. The Equity Shares of the Company are listed at
The Calcutta Stock Exchange Limited, 7, Lyons
Range, Kolkata - 700001 and listing fee for the
financial year 2012-13 has been paid to the
Stock Exchange
10. The Equity Shares of the Company are of shares
in physical form converted into dematerialized
form to have a better liquidity of their
shareholding.
11. The Equity Shares of the Company are
compulsorily tradable in the dematerialized form
on The Calcutta Stock Exchange Limited.
Therefore, shareholders holding their shares in
physical form are advised to have their holding
of shares in physical form converted into
dematerialized form to have a better liquidity of
their shareholding.

12. The Statement of Profit and Loss for the financial
year ended 30th June, 2012, the Balance Sheet
as at that date, the Auditors' Report, the
Directors' Report and all other documents
annexed or attached to the Balance Sheet are
available for inspection by the Members at the
Registered Office of the Company between
11.00AM and 1.00 PM on all working days up to
this AGM.
EXPLANATORY STATEMENT
Pursuant to Section 173(2 of the Companies Act, 1956)
Item No.4
Mr H S Bawa was appointed as an Additional Director
of the Company on 21st August, 2012. Pursuant to
Section 260 of the Companies Act, 1956, Mr H S Bawa
holds office of a Director upto the date of this Annual
General Meeting. Notice in writing along with requisite
deposit has been received from a Member as required
under section 257 of the Companies Act, 1956
signifying his intention to propose the candidature of
Mr H S Bawa as a Director.
Mr. H.S. Bawa, holds an MS degree in Chemical
Engineering from the University of Tulsa, USA.
Mr. Bawa began his career with Bahrain Petroleum
Company, Bahrain after getting his Masters degree
in 1955. In 1957, he joined ESSO India (Now
Hindustan Petroleum Corporation Limited) and held
several senior positions, both in India and overseas.
Mr. Bawa, holds directorship in Zuari Global Limited,
Zuari Agro Chemicals Limited, Indian Potash Limited,
Lionel India Limited, Paradeep Phosphates Limited,
Simon India Limited, Style Spa Furniture Limited, Zuari
Investments Limited, Zuari Maroc Phosphates
Limited, Zuari Seeds Limited, Zuari Fertilisers &
Chemicals Ltd
Considering the background, competence and wide
experience of Mr H S Bawa in diverse corporate fields,
your Directors consider it to be in the interest of the
Company to recommend appointment of Mr. Bawa
as a Director of the Company, liable to retire by rotation
as per the provisions of Companies Act, 1956.
None of the Directors of the Company except Mr H S
Bawa is concerned or interested in the Resolution.
Item No.5
Mr N. Suresh Krishnan was appointed as an Additional
Director of the Company on 21st August, 2012.
5
GOBIND SUGAR MILLS LIMITED
13. Members who wish to obtain information on the
Company or view the Accounts for the financial
year ended 30th June, 2012 may visit the
Company's website or send their queries at least
10 days in advance before the AGM to the
Secretary of the Company.
Pursuant to Section 260 of the Companies Act, 1956,
Mr Suresh Krishnan holds office of a Director upto
date of this Annual General Meeting. Notice in writing
along with requisite deposit has been received from a
Member as required under section 257 of the
Companies Act, 1956 signifying his intention to
propose the candidature of Mr N. Suresh Krishnan as
a Director.
Mr. N. Suresh Krishnan is an alumnus of prestigious
BITS (Pilani). Mr. Krishnan has 25 years of corporate
experience in fertilisers, energy and cement sectors.
Mr. Krishnan has been associated with Zuari Group
for nearly two decades.
His functional experience spans corporate finance,
corporate strategy, projects planning, operations and
business development. Mr. Krishnan is on the Board
of Directors of Zuari Agro Chemicals Limited
(Managing Director), Zuari Global Limited, Zuari
Investments Limited, Zuari Maroc Phosphates Limited,
Zuari Seeds Limited, Zuari Fertilisers & Chemicals Ltd
and Zuari Management Services Limited
Considering the background, competence and wide
experience of Mr N. Suresh Krishnan in diverse
corporate fields, your Directors consider it to be in the
interest of the Company to recommend appointment
of Mr. Krishnan as a Director of the Company liable to
retire by rotation as per the provisions of Companies
Act, 1956.
None of the Directors of the Company except
Mr N. Suresh Krishnan is concerned or interested in
the Resolution.
Item No.6
Mr Anil C Gupta was appointed as an Additional
Director of the Company on 21st August, 2012.
Pursuant to Section 260 of the Companies Act, 1956,
Mr Anil C Gupta holds office of a Director upto the
date of this Annual General Meeting. Notice in writing

along with requisite deposit has been received from a
Member as required under section 257 of the
Companies Act, 1956 signifying his intention to
propose the candidature of Mr Anil C Gupta as a
Director.
Mr. Anil C Gupta is B.Com (Hons.) from prestigious
Sri Ram College of Commerce, New Delhi and a
Fellow member of institute of Chartered Accountants
of India. Mr. Gupta has experience of more than 40
years in Statutory Audits under the Companies Act,
1956 and Internal / Management Audits of large
corporate enterprises. He retired from position of
Managing Partner from Messers A.F. Fergusan & Co.
/ A.F. Fergusan Associates, Hyderabad, which are a
part of Messers Deloitte Haskins & Sells in the year
2009.
Considering the background, competence and wide
experience of Mr Anil C Gupta in diverse corporate
fields, your Directors consider it to be in the interest
of the Company to recommend appointment of Mr.
Gupta as a Director of the Company, liable to retire by
rotation as per the provisions of Companies Act, 1956.
None of the Directors of the Company except Mr Anil
C Gupta is concerned or interested in the Resolution.
Item No.7
Mr Marco Wadia was appointed as an Additional Director
of the Company on 21st August, 2012. Pursuant to
Section 260 of the Companies Act, 1956, Mr Marco
Wadia holds office of a Director upto the date of this
Annual General Meeting. Notice in writing along with
requisite deposit has been received from a Member as
required under section 257 of the Companies Act, 1956
signifying his intention to propose the candidature of Mr
Marco Wadia as a Director.
Mr. Marco Wadia is B.A. (Hons.) L.L.B. and practicing
Advocate since 1986, specializing in corporate matters
and is currently, a partner in the firm of Crawford Bayley
& Co., Mumbai.
Mr. Marco Wadia, holds directorship in Chambal
Fertilisers & Chemicals Ltd, Jost's Engineering
Company Ltd, Johnson & Johnson Ltd., Paradeep
Phosphates Limited, Stovec Industries Limited, Simon
India Ltd., Zuari Maroc Phosphates Limited, Zuari
Industries Limited, Adventz Infraworld India Ltd.
Considering the background, competence and wide
experience of Mr Marco Wadia in diverse corporate
fields, your Directors consider it to be in the interest
6
GOBIND SUGAR MILLS LIMITED
of the Company to recommend appointment of Mr.
Wadia as a Director of the Company, liable to retire
by rotation as per the provisions of Companies Act,
1956.
None of the Directors of the Company except Mr
Marco Wadia is concerned or interested in the
Resolution.
Item No.8
Mr R N Ratnam was appointed as an Additional
Director of the Company on 07th November, 2012.
Pursuant to Section 260 of the Companies Act, 1956,
Mr R N Ratnam holds office of a Director upto the
date of this Annual General Meeting. Notice in writing
along with requisite deposit has been received from
a Member as required under section 257 of the
Companies Act, 1956 signifying his intention to
propose the candidature of Mr R N Ratnam as a
Director.
Mr. R.N. Ratnam is a Chartered Accountant, Company
Secretary and Cost & Management Accountant. Mr.
Ratnam initially joined Indian Audit and Accounts
Service as Class I officer and worked therein for 4
years. He joined EID Parry Group of Madras and
retired as Deputy Managing Director in the year 1984.
Since 2000, he is self employed as Business and
Finance Consultant providing consultancy to diverse
Indian and international organizations.
Considering the background, competence and wide
experience of Mr R N Ratnam in diverse corporate
fields, your Directors consider it to be in the interest
of the Company to recommend appointment of Mr.
Ratnam as a Director of the Company liable to retire
by rotation as per the provisions of Companies Act,
1956.
None of the Directors of the Company except Mr
Ratnam is concerned or interested in the Resolution
Item No.9
Mr R S Raghavan was appointed as an Additional
Director of the Company on 21st August, 2012.
Pursuant to Section 260 of the Companies Act, 1956,
Mr R S Raghavan holds office of a Director upto the
date of this Annual General Meeting. Notice in writing
along with requisite deposit has been received from
a Member as required under section 257 of the
Companies Act, 1956 signifying his intention to
propose the candidature of Mr R S Raghavan as a
Director.

Mr. R.S. Raghavan is a Chartered Accountant and
Company Secretary and has 40 years experience in
wide range of industries such as Fertilizers &
Chemicals, Steel, Textile and Electronics. He had
earlier worked in Zuari Industries Limited as Vice
President - Finance and was later Executive Director
in Birla Home Finance Limited
Mr. R.S. Raghavan also holds directorship in Zuari
Investments Limited
Considering the background, competence and wide
experience of Mr R S Raghavan in diverse corporate
fields, your Directors consider it to be in the interest
of the Company to recommend appointment of Mr.
Raghavan as a Director of the Company liable to retire
by rotation as per the provisions of Companies Act,
1956.
None of the Directors of the Company except Mr R S
Raghavan is concerned or interested in the Resolution
Item No.10
The Board of Directors of the Company at its meeting
held on 28th August, 2012 had appointed Mr R S
Raghavan as the Managing Director of the Company,
for a period of three years, at no material remuneration
with effect from 28th August, 2012. As a Managing
Director of the Company Mr R S Raghavan shall be
responsible to give vision and direction to the
Management team of the Company in
accomplishment of its business plan effectively and
efficiently and shall otherwise be entrusted with
substantial power of management of the Company.
Brief terms and conditions of the appointment of Mr.
RS Raghavan as below:
1. Term and Termination:
a.) Subject as hereinafter provided, this
Agreement shall remain in force up to three
years unless terminated earlier
b.) This Agreement may be terminated earlier
by either Party by giving to the other Party
Regd Office: 9/1, R N Mukherjee Road
Kolkata - 700001
Dated: 07th November, 2012
7
GOBIND SUGAR MILLS LIMITED
six months' notice of such termination or
the Company paying six months'
remuneration in lieu of such notice.
2. Duties & Powers:
The Managing Director shall devote his whole
time and attention to the business of the
Company and carry out such duties as may be
entrusted to him by the Board from time to time
3. Remuneration: Rs.1 per month. Any increments,
effective dates of which, will be decided by the
Board, will be merit-based and take into account
the Company's performance as well.
4. Variation: The terms and conditions of the
appointment of the Manager and / or this
Agreement may be altered and varied from time
to time by the Board as it may, in its discretion
deem fit, within the maximum limits stipulated
under Schedule XIII to the Act or any
amendments made hereafter in this regard in
such manner as may be agreed to between the
Board and the Manager, subject to such
approvals as may be required
5. Agreement co-terminus with employment /
directorship: If and when, Mr. RS Raghavan will
cease to be the Managing Director for any reason
whatsoever, this Agreement shall also expire and
considered terminated.
Mr. R S Raghavan does not hold any equity share
in the Company.
None of the Directors of the Company, except R
S Raghavan is in any way concerned or
interested in the resolution.
The Board recommends passing of the aforesaid
resolution as a special resolutions.
The proposed Resolution as set out in item no.
10 and this explanatory statement may be treated
as an Abstract of the terms and conditions of
appointment of Mr. R S Raghavan as the
Managing Director of the Company in terms of
Section 302 of the Companies Act 1956.
By Order of the Board
Ankush Wadhawan
Company Secretary
 GOBIND SUGAR MILLS LIMITED

Circular from Ministry of Corporate Affiars

Sub : Green initiative in Corporate Communication- Electronic Mode of service of documents

The Ministry of Corporate Affairs, Government of India, has by Circular No. 17/2011 dated 21st April, 2011 and
another dated 18/2011 dated 29th April, 2011 clarified that a Company will have complied with the provisions of
the Companies Act, 1956 if it has made service of notices(s)/documents to its shareholders through electronic
mode i.e. by e mail. As a strong supporter of green initiatives and as a responsible corporate citizen your
Company vehemently supports the said clarification. We are sure, that as a responsible shareholder, you too
will support this initiative and get yourselves registered for getting all corporate communications in electronic
form from the Company. By registering yourself with the Company for e-communication, you will be able to
receivesuch notice(s)/document(s), etc., promptly and without there being a chance of loss of the same in postal
transit.

It is therefore proposed that henceforth documents Notices of Meetings, Annual Reports, Directors' Reports,
Auditors' Report and other shareholder communications will be sent electronically to the e mail id provided by
you and made available with the Company by the Depositories viz., NSDL/CDSL. As and when there are changes
in your email ids, you are requested to keep your Depository Participants (DPs) informed of the same.

For shares held in physical form, shareholders can either register their e mail ids with the Company mentioning
their name(s) and folio no. or return the attached E-communication Registration Form enclosed herewith, duly
filled in to the Company's Registrar & Share Transfer Agent M/s Link Intime India Private Limited at their address
at:

M/s Link Intime India Private Limited

Unit : Gobind Sugar Mills Limited
59C, Chowringhee Road, 3rd Floor
Kolkata- 700 020.

May it also be noted that should you still wish to get a hard copy of the above documents, the Company will send
the same, free of cost, upon receipt of a request from you.

8
 GOBIND SUGAR MILLS LIMITED

DIRECTORS' REPORT
To
The Members,

Your Directors take pleasure in presenting their 60th Annual Report and the audited Accounts of the Company
for the year ended 30th June 2012.

1. Financial Results & Appropriations

(Rs. in lacs)

2011-12 2010 - 11

Gross Sales 26786.26 24837.44

Gross Profit/(Loss) before Exceptional Item,
Depreciation, Tax and Finance Cost 1.98 537.98

Less: Finance Cost (Net) 1872.94 1908.06

Depreciation/Amortization Expenses 421.93 421.36

Profit/(Loss) before Exceptional Item Tax (2292.89) (1791.44)

Less: Loss on Account of Exceptional Item

Less/(Add) : Differential Cane price
for FY 2007-08, on account of order of
Supreme Court dated 17.01.2012 963.48
Add: Deferred Tax Credit (975.64) (538.89)

Profit/(Loss) after Tax (2280.73) (1252.55)

Add : Surplus /(Deficit) brought forward (1712.30) (459.75)
Transfer from General Reserve -- --
Balance carried to Balance Sheet (3993.03) (1712.30)

Other Reserves
Capital Redemption Reserve 10 10
Securities Premium Account 200 200
Molasses and Alcohol Storage and Maintenance Reserve 92.62 85.86
Reserve and Surplus as on 30th June, 2012 (3690.41) (1416.44)

Operating Performance of the Company for the year 2011-12 increased

2. A detailed analysis of the Company's operations,
future expectations and business environment
has been given in the Management Discussions
& Analysis Report which is made an integral part
of this Report and marked as Annexure - A.
Financial Performance
3. The Company had recorded a Net Revenue of
Rs. Lacs (including other income aggregating
to Rs. 1.98 Lacs) for the year ended 30th June,
2012. The Gross Sales (inclusive of Excise Duty)
9
by 7.84 % (Approx) to Rs. 26786.26 lacs from
Rs. 24837.44 lacs in the year 2010-11.
4. The earning before interest, depreciation, tax for
the year under review stood at Rs.1.98 Lacs as
compared to previous year's Rs. 537.98 Lacs.
The decrease of EBIDTA of the Company during
the year under review can be attributed to
increase in cost of cane, accompanied with
minimal corresponding increase in price of sugar
and, increase in inventories / stock.
5. During the year under review the sugar industry
made substantial losses due to the negative

policies of the Central and the State
Governments. Sugar prices remained under
pressure during the major part of the year, mainly
due to surplus sugar in the country along with
the various measures of controls exercised by
the Central Government to control inflation. The
Central Government has regulated exports by
releasing 30.48 lac tonnes till 2nd August, 2012
and erratic release of sugar stocks under the
archaic quarterly release mechanism. The
Central Government continued its policy of
procuring 10% sugar as levy at prices
significantly below the cost of production and the
market prices.
6. The State Government of UP fixed an exorbitant
price of Rs 240/- per qtl of sugarcane at
extraneous considerations without any economic
justification. The high sugarcane price without a
corresponding increase in sugar price crippled
the industry in UP.
Progress of references made to BIFR and
Infusion of fresh capital in to the Company.
7. A reference has been made during the year
under review to the Board for Industrial and
Financial Reconstruction (BIFR) under Section
15(1)/(2) of Sick Industrial Companies (Special
Provisions) Act, 1985 for determination of
sickness and the measures to be adopted under
the Act for Company's rehabilitation. The
proceedings before the BIFR are progressing on
expected lines.
To revive the financial position of the Company
and to otherwise smoothen the fund flow position
the promoters of the Company had infused fund
into the Company to the extent of Rs. 23 crores
in the form of 7% - Non Cumulative Redeemable
Preference Shares of Rs. 10 each (NCRPS) and
subscription money pending allotment of
NCRPS.
Research & Development (R & D)
8. During the year under review the Company has
undertaken Research & Development initiatives
with an intention to improve the sugar recovery
ratio and to educate the cane growers to cultivate
improved variety of sugarcane and to otherwise
improve the sucrose contents of their produce.
During the year under review the Company had
incurred a sum of Rs. 39.25 lacs on account of
Research & Development initiatives.
10
GOBIND SUGAR MILLS LIMITED
Dividend
9. The Board of Directors do not recommended any
dividend for the year in view of the current year's
and accumulated losses.
Corporate Governance
10. Pursuant to Clause 49 of the Listing Agreement,
Management Discussion & Analysis, Statement
in respect of Conservation of Energy, Report on
Corporate Governance, Declaration of
Managing Director on Code of Conduct and
Auditors' Certificate on compliance of conditions
of Corporate Governance form an integral part
of this Report and are attached to this Report
as Annexure "A", "B", "D", "E" and "F"
respectively.
Directors
11. The Company has seven Non Executive
directors having experience in varied fields and
a Managing Director.
12. During the year under review Mr Ram Nath
Bansal and Mr Pradeep Kumar Daga ceased to
be the Directors of the Company both with effect
from 31st January, 2012. Mr Chandra Shekhar
Nopany, Dr P K Mookerjee and Mr Akshay
Poddar were also ceased to be the Directors of
the Company with effect from 28th August, 2012.
Mrs Jyotsna Poddar had also resigned from the
post of Chairperson and Managing Director of
the Company with effect from 28th August, 2012.
The Board places on record its deep
appreciation for the services rendered by all the
outgoing Directors during their respective
tenures as Directors/Chairperson cum Managing
Director of the Company.
13. Pursuant to the provision of Section 260 of the
Companies Act, 1956, Mr H S Bawa, Mr Suresh
Krishnan, Mr Anil C Gupta, Mr Marco Wadia and
Mr R S Raghavan were appointed as the
Additional Directors on the Board of the
Company with effect from 21st August, 2012.
Mr R S Raghavan was also appointed as the
Managing Director and Mr H S Bawa as the Non-
Executive Chairman of the Company both with
effect from 28th August, 2012 to fill in the
vacancy caused by the resignation of Mrs
Jyotsana Poddar as the Chairperson and
Managing Director of the Company. All these
Additional Directors shall hold their respective

offices only up to the date of the ensuing Annual
General Meeting. The Company has received five
notices in writing from five different members
proposing the candidatures of Mr H S Bawa, Mr
N. Suresh Krishnan, Mr Anil C Gupta, Mr R S
Raghavan and Mr Marco Wadia for being
appointed as the Directors liable to retire by
rotation.
14. Other information on the directors including required
particulars of the Director retiring by rotation is
provided in the Report on Corporate Governance
annexed to this Report as Annexure "D".
Directors' Responsibility Statement
15. Your Directors confirm that -
i) That in the preparation of the annual
accounts for the financial year ended June
30, 2012 the applicable accounting
standards had been followed along with
proper explanation relating to material
departures;
ii) That the Directors had selected such
accounting policies and applied them
consistently and made judgments and
estimates that are reasonable and prudent
so as to give a true and fair view of the state
of affairs of the Company at the end of the
financial year and of the loss of the
Company for that period;
iii) That proper and sufficient care was taken
for the maintenance of adequate
accounting records in accordance with the
provisions of the Companies Act, 1956 for
safeguarding the assets of the Company
and for preventing and detecting fraud and
other irregularities.
iv) To ensure this, the Company established
internal control systems, consistent with its
size and nature of operations, in weighing
the assurance provided by any such system
of internal controls and in recognizing its
inherent limitations. These systems are
reviewed and updated on an ongoing basis.
Periodic internal audits are conducted to
provide reasonable assurance of
compliance with these systems. The Audit
Committee meets at regular intervals to
review the internal audit functions;
11
GOBIND SUGAR MILLS LIMITED
v) That the Directors had prepared the annual
accounts on a going concern basis.
Auditors, Audit Qualifications and Board's
Explanations
16. The Auditors have made observations regarding
recognition of Deferred Tax Asset (net) of Rs.
3268.55 Lacs, MAT credit entitlement of Rs.
295.31 Lacs and Negative Net Worth of the
Company. The Company has taken necessary
steps and management is optimistic about the
revival of the Sugar Industry and of the Company.
This will significantly enhance the profitability and
smoothen the future Cash Flow of the Company
and there would be sufficient taxable income in
future to claim credit of Deferred Tax Assets as
well as MAT credit entitlements.
17. The Auditors, Messrs S. R. Batliboi & Co.,
Chartered Accountants, retire at the forthcoming
Annual General Meeting of the Company and
are eligible for re-appointment. According to the
certificate submitted to the Company by the said
firm of Auditors the said reappointment, if made
by the Shareholders, will be well within the limits
prescribed in Section 224(1B) of the Companies
Act, 1956.
The Board, on the recommendation of the Audit
Committee, has proposed that Messrs S. R.
Batliboi & Co, Chartered Accountants, be re-
appointed as the Statutory Auditors of the
Company for the period beginning the conclusion
of the ensuing Annual General Meeting of the
Company and ending on the conclusion of the
Annual General Meeting to be held next
thereafter.
Cost Auditors
18. In accordance with the directives of the Central
Government under Section 233B of the
Companies Act, 1956, Mr Somnath Mukherjee,
Cost Accountant, was appointed as Cost Auditor
to audit the cost accounting records of the
Company relating to sugar for the year ending
on 30th June, 2013.
Cost Audit Reports for the product Sugar for the
year ended 30th June, 2011 was filed on 16th
December, 2011 with cost audit cell of Ministry
of Corporate Affairs department within due dates
viz., 31st December, 2011.

Subsidiary Company and Consolidated Financial
Statement
19. The Company has an Indian Subsidiary viz., New
Eros Tradecom Limited. In compliance with
General Circular No. 2/2011 of Government of
India, Ministry of Corporate Affairs and the Board
Resolution passed by the Board of Directors, the
Company has opted to avail the exemption,
provided under Section 212(8) of the Companies
Act, 1956 and accordingly the Audited statement
of Accounts along with the report of the Board of
Directors and Auditor relating to the Company's
subsidiary is not annexed as required u/s 212(8)
of the Companies Act, 1956. However, the
Consolidated Financial Statement conforming to
the Accounting Standard 21, 23 and 27 and
including inter alia the financial performance of
the said subsidiary forms an integral part of the
annexed Audited statement of Accounts.
In this regard, the statement pursuant to Section
212 of the Companies Act, 1956 is attached and
is marked as Annexure - C.
20. The Annual accounts of the subsidiary company
will be available for inspection by any
shareholder at the Registered Office of the
Company and will also be available on the
website www.adventz.com Furthermore, a hard
copy of the detailed accounts of the subsidiary
company to any shareholder on demand at any
point of time.
Particulars of Employees
21. There was no employee in the Company who
was in receipt of remuneration as required to be
disclosed under Section 217(2A) of the
Companies Act, 1956.
Energy Conservation, Technology Absorption and
Foreign Exchange Earning & Outgo
22. Particulars in respect of conservation of energy,
technology absorption and foreign exchange
earnings and outgo as required under Section
217(1)(e) of the Companies Act, 1956 is
Annexure "B" and forms part of this Report.
12
GOBIND SUGAR MILLS LIMITED
Fixed Deposits
23. As on 30th June, 2012, your Company had 26
depositors with fixed deposits of Rs. 27.07 lacs.
The depositors are being advised at regular
intervals to claim their deposits. The Company
had been regular in refunding the claimed
deposits on maturity. In terms of requirements
of Investor Protection and Education Fund
(Uploading of information regarding unpaid and
unclaimed amounts lying with companies) Rules,
2012 the Company shall be uploading on the
website of Ministry of Corporate Affairs as well
as on its own website www.adventzcom within
such time as is prescribed under the said Rules
the detail of all such fixed deposit holders who
till the date of the ensuing Annual General
Meeting shall not have claimed their matured
fixed deposit proceeds, if there be any such
case.
24. CEO/CFO Certification
Mr R S Raghavan, Managing Director and Mr B
N Jha, CFO have submitted a certificate to the
Board as contemplated in Clause 49 of the
Listing Agreement. Enclosed herewith in
Annexure E.
Acknowledgements
25. Your Directors take this opportunity of recording
their appreciation for the support extended to
the Company by the shareholders, financial
institutions, bankers, suppliers and cane
growers. Your Directors are also grateful to
various ministries in the Central Government and
State Government of Uttar Pradesh, the Sugar
Directorate and the Sugar Development Fund
for their continued support to the Company. The
Directors also recognize the valuable
contribution made by the employees at various
levels to Company's progress.
For and on behalf of the Board
Place : Gurgaon H S Bawa
Dated : 28th August, 2012 Chairman
 GOBIND SUGAR MILLS LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS Annexure A

Global sugar industry: An Overview industry. Over 50 million Indians make their livelihood
by growing, supplying or otherwise dealing in
The global sugar industry is one of the oldest agro sugarcane. The sugar industry contributes annually
based industry. Sugar industry globally is influenced around Rs. 50 billion by way of excise duty, cess, VAT,
by variety of factors notably among them being historic entry tax and octroi.
in nature and the increasing sugar consumption
pattern of the mankind especially the youth. Uttar Pradesh, India's largest sugar producing state
contributes almost 38% and Maharashtra 21% of the
Global sugar production in 2011-12 grew by 5.85% Country's total sugar production, the balance coming
to 173.83 million tonnes though consumption growing from Tamil Nadu 12%, Karnataka 8%, and other States
at a healthy rate of 2.26% to 167.35 million tonnes 21%. The Indian Sugar Industry is cyclical in nature
which was at a rate in line with its 10-year average and depends heavily on cane availability. Production
(2.14%). This coupled with the increased consumption of sugar largely depends on acreage of land cultivated
level of sugar due to higher spending capacity of for sugarcane and monsoon.
consumers resulted in a very insignificant surplus of
6.48 million tonnes of sugar. Though the stock Production: India accounts for 15% of the global
consumption ratio marginally increased from 34.78% sugar production and its sugar production in the sugar
to 34.94% in World Sugar Season 2011-12 the trend season October 2011-September 2012 was estimated
of higher consumption of sugar worldwide is clearly at 26.00 million tonnes against 24.37 million tonnes
visible. Currently, 72% of the world sugar production in 2010-11 a 6.71% growth over the previous year,
is consumed in the countries of origin itself while the driven mainly by improved cane acreage in response
balance is traded in the world markets. to healthy cane prices being paid, adequate rains and
increase productivity.
World sugar balance
In Million Tonnes
(million tonnes, raw value)
2011/12 2010/11 Change S. Season Season
No 2011-12 2010-11
in million in %
Oct., 2011 to Oct., 2010
tonnes
Sep. 2012 to Sep.2011
Production 173.828 164.219 9.609 5.85 (Estimated)
Consumption 167.352 163.649 3.703 2.26 1. Opening Stock as
Surplus/deficit 6.476 0.570 on 1st October 5.98 4.98
Import demand 48.615 53.098 (4.483) (8.44) 2. Production during
the Season 26.00 24.37
Export availability 53.538 52.796 0.742 1.41
3. Imports -- --
End stocks 58.470 56.917 1.553 2.73
4. Total Availability 31.98 29.35
Stocks/consum- 5. Domestic
-ption ratio in % 34.94 34.78 Consumption 22.00 20.77
Source : ISO Quarterly Market Outlook , May 2012 6. Exports 3.50 2.60
7. Closing Stock 6.48 5.98
Indian Sugar Economy
Consumption: Though in absolute terms India is
India is the world's second largest producer of sugar
world's largest consumer, accounting for around 15%
after Brazil producing about 15% of the Global sugar
of global consumption,it's per capita sugar
production. India's sugar industry is also the second-
consumption is only 21 kg compared to 62 kg of Brazil,
largest domestic agro-processing industry after cotton
40 kg of the US and 35 kg of the European Union.
textiles.
World per capita sugar consumption stood at 23.8 kg
and is expected to remain steady at the same level in
The sugar industry occupies an important place in
2011-12 as well.
the Indian economy. Nearly 7.5 million people across
the country are directly or indirectly employed in the
13

Sugar Prices
During 2011, limited sugar availability sustained higher
world sugar prices which rose above US30 cents/lb.
International sugar prices are expected to soften over
the remainder part of SY 2011-12, as production
responds globally to recent high prices and the global
balance moves into a larger surplus that allows stock
rebuilding. More recently, improved production
prospects, including predictions of a record crop in
Thailand softened the demand, resulting in the
international price falling to around US25.20cents/lb
in May 2012.
As regards cane prices the Indian sugar industry
followed two types of pricing till last sugar season to
remunerate the farmers - State Advised Price (SAP)
(fixed by the State Government) and Fair and
Remunerative Price (FRP) (decided by the
Commission on Agricultural Costs and Prices).
During 2011-12, the Government hiked the FRP by
4.2% to Rs 145 per quintal from 139.12 per quintal in
2010-11. The State Advisory Price in UP was set at
Rs 240 per quintal in the year 2011-12 from Rs 205
per quintal in 2010-11 resulting in further pressure on
the margins of sugar mills.
Government of India has recently increased the 'Fair
and Remunerative Price' (FRP) of Sugarcane for the
sugar season 2012 - 13 by 17% from Rs. 145 per
quintal for the sugar season 2011-12 to Rs. 171 per
quintal. This has been the highest ever increased in a
year by the Government.
The domestic sugar prices on the other hand have
also been reeling under pressure since past one year
on account of sugar surplus though since July 2012
sugar prices have started hardening. During the most
part of the year under review the prices of sugar were
range bound between Rs. 28 per kg to Rs.30 per kg
ex-mill. Higher cane prices and lower realizations
resulted in losses for the industry.
Sugar prices in the upcoming 2012-13 season are
expected to remain highly volatile in view of near
drought like situation on the one hand and the
prospects of improved domestic supplies on the other.
International price movements can also influence
domestic prices. [Source: Global Agricultural
Information Network]
Government Policies & Sugar policy developments
2011-12
14
GOBIND SUGAR MILLS LIMITED
• It is mandatory for the sugar millers to sell a
portion of their production to consumers below
poverty line through the Public Distribution
System (PDS), at a pre-determined below-
market price (levy price). Rest of the stock is
sold in the free market under monthly release
mechanism. Levy quota presently is 10%.
• The Government decided to allow unrestricted
sugar exports by bringing it under the open
General licence with effect from May 2012.
• The Government approved a third tranche of
1million tonne of white sugar exports under the
so-called Open General Licence (OGL) scheme
in late March. This follows the earlier approval
of two tranches of 1 million tonne each, in early
February and late November respectively, taking
the total export allowance to date to 3.5 million
tonnes.
• The State Advisory Price of Sugar cane was
fixed at a record level of Rs. 240/- per tonnes
without corresponding increase in sales
realization of sugar.
Sugar import & Export
In 2011-12, India returned to the league of net-
exporters. As estimated, India exported 3.5 million
tonnes. During the first seven months of the 2011-12
season, the Government allowed 3 million tonnes of
Open General Licence (OGL) exports in three
tranches of one million tonnes each (at the end of
November, in early February and, finally, in late
March). However, by the beginning of May, the
Government decided to free sugar exports from any
quantity restrictions for the time being in order to
speed up shipments so that mills are able to pay
farmers for sugarcane. The industry believes that the
country will keep its net-exporting status even in 2012-
2013.
Operations
The comparative operating performance of the
Company for the last two seasons is given below :
Season Season
2011-2012 2010-2011
Sugarcane crushed
(lac Qtls.) 93.82 82.58
Recovery (%) 9.14 9.02
Sugar produced (lac Qtls.) 8.56 7.50
Crushing days 154 124

Levy Sugar Price
The price of levy sugar for the Company's sugar
factory at Aira for the season 2011-12 was fixed at
Rs. 1959.41 per quintal.
Figures of Production, Sales and Closing Stock during
the year under review.
(In thousand quintals)
Opening Prod- Sales Closing
Stock -uction stock as on
30th June
2012
Sugar 252.99 855.977 772.464 336.503
Molasses 61.63 501.511 450.959 111.333
Internal control systems and their adequacy.
The company has a wide spread internal control
system to ensure smooth functioning of each and
every department of the organization. The internal
control system is totally in alignment with the business
nature and the size of the company. It tracks various
financial transactions effectively and certifies the
compliance with statutory rules and regulations, thus
contributing to the operational efficiency of the
company.
The Internal audit of the Company is conducted by
Chartered Accountants firms. The findings of the
internal audit and consequent corrective actions
initiated and implemented form time to time are placed
before the Audit Committee. The Audit Committee
reviews such audit findings and the adequacy and
reasonableness of internal control system.
Human resources and industrial relations
Continuous learning is the cornerstone of the
Company's human resource policy. The Company's
human resource policy is structured to meet the
aspirations of the employees as well as of the
organization. The Company has adopted a
progressive policy of continuous development of its
human resources by training and motivating the
employees to attain greater efficiency and
competence besides striving to retain the talent.
The current strength of management staff is 6 and
non-management staff is 573.
Industrial relations in all the units were cordial
throughout the year under review and there was no
15
GOBIND SUGAR MILLS LIMITED
material development in Human Resources/Industrial
relation front.
Risk Management
Risk : Lower sugar realizations. Lower sugar
realisations can directly impact the top line of the
Company, making it difficult to meet its day-to-day
expenses.
As mitigation measures, the Company has developed
an integrated business model which provides them
with an additional revenue stream through the sale of
bagasse and molasses at remunerative prices.
Risk : Lower recovery
The Company may fail to leverage higher cane
production owing to lower recovery rate, though this
year the sugar recovery was on expected lines.
As mitigation measures, the Company has put in place
latest methodology and techniques for higher
recoveries.
Risk : Farmer relationship
Non-availability of cane due to unharmonious farmer
relation may result in lower crushing, impacting the
overall performance of the Company.
As mitigation measure, the Company maintains a
harmonious and co-ordeal relationship with its farmers.
Besides ensuring timely payments, it also helps them
by assisting them in seed selection and fertilizers.
Future Outlook
The previous two years have eroded the profitability
of the sugar industry resulting in huge losses and
accumulated cane arrears. The problem would have
been more acute had the Central Government not
permitted the industry to export sugar and reduce the
surplus sugar from the Indian markets. The problems
facing the sugar industry are being recognized by the
Central Government for which they have constituted
a high powered committee under the Chairmanship
of Dr Rangarajan. This Committee is expected to
submit its report shortly and it is hoped that the
industry's demand for deregulation will be accepted.
India's sugar production in the sugar season October,
2012 - September, 2013 is estimated at 25 million
tonnes.

The monsoons during the year 2012-13 has started
late with deficiencies in Maharashtra and Karnataka
which is likely to affect the sugar production in these
two States. Preliminary indications are that the
monsoons in the northern region, though late is by
and large satisfactory and will result in an increase in
production due to increase in cane acreage.
As a result of these two factors, sugar production in
India during 2012-13 will be lower than the previous
year that is to say at 25 Million tones but is still
expected to be substantially higher than domestic
consumption.
In anticipation of a reduction in production, sugar
prices have improved from the month of July 2012
onwards. It is yet to be seen whether this price
increase can be sustained and a lot will depend
primarily on the final outcome of the monsoons and
sugarcane availability.
Cautionary Statement
The statements in the Management Discussions &
Analysis Report detailing the Company's objectives,
16
GOBIND SUGAR MILLS LIMITED
projections, estimates, expectations or predictions
may be forward looking within the meaning of
applicable securities laws and regulations. As these
statements are based on certain assumptions and
expectations of future events, actual result could differ
materially from those expressed or implied. Important
factors that could make a difference to the company's
operations include economic conditions affecting
global or domestic demand and supplies, political and
economic developments in India or other countries,
government regulations and taxation policies, prices
and availability of raw materials, prices of finished
goods, abnormal climatic and geographical
conditions, etc. The company assumes no
responsibility in respect of forward looking statements
contained in this Report as the same may be revised
or modified in the future on the basis of subsequent
developments, information or events.
 GOBIND SUGAR MILLS LIMITED

Annexure - B
Statement showing particulars pursuant to the Companies (Disclosure of particulars in the Report of the
Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 30th June,
2012.

I. Conservation of Energy : Speed Diesel when compared with the

previous year's consumption.
(i) Stem Process Scheme has been upgraded
with modification in the existing system to (iv) Total energy consumption and energy
suit the technical parameters of the boiling consumption per unit of production
house equipments installed in the
Company. This has been done to conserve (A) Power & Fuel Consumption :
the energy generated during the year 2011-
2012 and has resulted in improvement in Current Previous
Stem Consumption per unit. Year Year
1. Electricity :
The Company continues to upgrade/ a) Purchased :
technically modify it machineries and Units (in lacs) -- --
equipments for higher generation of steam Total amount (Rs.in lacs) -- --
per unit of fuel consumed. Rate/Unit (Rs.) -- --

Various other initiatives taken by the b) Own Generation :

Company have collectively resulted in i) Through Diesel Generator :
substantial reduction of consumption of Units (in lacs) 7.09 8.24
energy in production and consequently Units per liter of
more saving of bagasse. diesel-oil 2.77 3.00
Cost/Unit (Rs.) 18.60 15.35
(ii) Additional investments and proposals,
if any, being implemented for reduction ii) Through Steam
of consumption of energy : Turbine/Generator :
Units (in lacs) 208.68 176.07
Due to cash crunch there had been no Units per liter of Cost/Unit (Rs.) Not
substantial investment aimed at reduction fuel oil/gas ascertainable as the
of consumption of energy in the year under bagasse which is a
review. However, conservation of energy by-product is being
has been taken as a challenge and a used as fuel
detailed project of energy conservation is
2. Coal :
under active consideration and is being
Quantity (Tonnes) -- --
discussed with consultants. Decision will
Total Cost (Rs. in lacs) -- --
be taken shortly keeping in view financial
Average Rate (Rs.) -- --
implications.
3. Furnace Oil -- --
(iii) Impact of measures of (i) and (ii) above
for the reduction of energy consumption
4. Others/Internal generation -- --
and consequent impact on the cost of
production of goods.
(B) Consumption of following fuels No standard
per 100 kgs of sugar : has been fixed
In view of initiatives enumerated in (i) & (ii)
above there has been a decrease in total
Production of Sugar (in lac qtls) 8.57 7.42
cost of Power & Fuel in spite of higher
Electricity (unit) 25.17 24.80
crushing of cane. The higher crushing of
Furnace Oil (litres) -- --
cane has resulted in higher availability of
Coal (Kgs.) -- --
bagasse which in turn lead to
Others -- --
comparatively lower consumption of High

17
 GOBIND SUGAR MILLS LIMITED

II. Research & Development and Technology
Absorption :
The Company has been carrying out Research
& Development in the following specific areas :
Future plans on R&D front are :
(i) Continue to research on better yield and to have
disease free variety of cane by adopting
measures stated above.

(1) Control of Insect, Pest & Disease
(a) Mechanical Control : Cane which is
affected by insects and diseases at
cane field is eliminated at the
cultivation stage itself.
(ii) Installation of machineries with latest technology
at different work stations in the factory, subject
to availability of fund.
(iii) To have Portable soil testing electronic
laboratory.

(b) Chemical Control: To ensure disease
free cane that is to say to control the
attack of insect, pest and borer,
insecticide and pesticide are being
applied on the crop as an usual
practice.
(2) Ratoon Management: To increase the yield
of the Ratoon, farmers are being educated
on constant basis and village meetings are
organised.
(3) Multiplication of foundation cane seed by
rearing of nurseries.
(iv) To render advices to the cane growers by
research scholars from Sugar Cane Research
Station by holding seminars.
(v) To have well equipped laboratory to analyse
various factors related to process control to
reduce losses and improvement in the quality
of sugar.
(vi) To increase the area of early maturing high sugar
content varieties of sugarcane to get better
recovery in early months of cane crushing.
The Company has not imported any technology.

(4) Ratoon Management by managing the III. Foreign Exchange Earnings and Outgo :
ratoon crop of cane by urea spraying and

}
gap filling of cane to increase yield. a) Activities relating to The Company does
exports, initiatives not directly export
(5) Distribution of improved varieties of cane taken to increase any of its products.
seed to farmers. exports The Sugar is generally
exported through Indian
(6) Educational tour of cane growers at b) Development of Sugar EXIM Corporation
research stations for improving knowledge new export markets Limited. The Government
in relation to latest cane development for products and has allowed export
activities. services and export through merchant
plan exporters also.
Due to above initiatives, higher yield of
disease free sugar cane is being made c) Earnings in Foreign
available resulting in higher return to cane Exchange - Rs. NIL
growers and also better recovery to the
factory. The Company has during the year d) Expenditure in
under review spent an amount of Rs 39.25 Foreign Currency - Rs. 1.96 lacs
lacs towards various R&D oriented
initiatives.

18
 GOBIND SUGAR MILLS LIMITED

Annexure - C
Statement pursuant to Section 212 of the Companies Act, 1956 relating to the Company's interest in
subsidiary companies during the year ended 30th June, 2012

1 Name of the subsidiary company New Eros Tradecom Limited

2 The financial year of the subsidiary company ends on 30th June, 2012
3 Date from which they became subsidiary company 23rd November, 2009
4 Holding company's interest Holders of 4550000 Equity Shares of
Rs. 10 each fully paid up
5 Extent of holding 100%
6 The net aggregate amount of the subsidiary
company profit / (loss) so far as it concerns
the members of the holding company
a) Not dealt with the holding company's accounts
i) For the financial year ended 30th June, 2012 Rs. 56.64 lacs
ii) For the previous financial years of the
subsidiary company since they became the
holding company's subsidiary Rs. 7.99 lacs
b) Dealt with in the holding company's accounts :
i) For the financial year ended 30th June, 2011 NIL
ii) For the previous financial years of the
subsidiary company since they became the
holding company's subsidiary NIL

Financial information of Subsidiary Company

Name of the Reporting Capital Reserves Total Total Invest- Turnover/ Profit/ Provision Profit/ Proposed Country
Subsidiary Currency Liabilities Assets -ment Total (Loss) for (Loss) Dividend
Company Income before Taxation after
Taxation Taxation

New Eros
Tradecom
Limited INR (Lacs) 455.00 1408.47 5664.99 5664.991787.43 65.43 56.64 -- 56.64 Nil India

Secretary Managing Director Chairman

19

REPORT ON CORPORATE GOVERNANCE
1. Company's Philosophy
Gobind Sugar Mills Limited (GSML), a part of the
Adventz Group, firmly believes that Corporate
Governance helps to serve corporate purposes by
providing a framework within which stakeholders
can pursue the objective of the organization most
effectively. Corporate Governance in fact denotes
acceptance by the management of the inalienable
rights of the shareholders as true owners of the
organization and of their own role as trustees on
behalf of the shareholders.
By harnessing ethical values with business
acumen the executive functions of GSML is
structured to institutionalize policies and
practices that enhance the efficacy of the Board
and the Senior Management of the Company and
inculcate a culture of accountability, transparency
and integrity across the Company as a whole.
GSML has a strong legacy of fair, transparent
and ethical Governance practices and
procedures and through these pages renews its
commitment to uphold and nurture the core
values of integrity, passion, responsibility, quality
and respect in dealing with its customers, cane
growers and other stake holders of the Company.
The other enablers for the Company are 'team
work' and 'adherence' to professionalism.
GSML has also in place a duly codified Code of
Conduct and Code of Internal Procedures and
Conduct as envisaged under the SEBI
(Prohibition of Insider Trading) Regulations, 1992
for its employees including for the Executive
Chairman and Managing Director. This Code is
available on Company's website.
GSML is in compliance with the requirements of
the guidelines on corporate Governance
stipulated under Clause 49 of the Listing
Agreement with the Stock Exchange. With the
adoption of an uncodified whistle blower
mechanism as stipulated under Clause 49 of the
Listing Agreements with the Stock Exchanges
UGSIL has moved far ahead in its pursuit of
excellence in Corporate Governance.
2. Board of Directors
i) The Company has in all 8 Directors with
considerable professional experience in
20
GOBIND SUGAR MILLS LIMITED
Annexure - D
divergent areas connected with corporate
functioning, which includes, Managing
Director and seven Non-Executive
Directors, including the Chairman.
The composition of the Board is in
conformity with Clause 49 of the Listing
Agreements entered into with the Stock
Exchange. The Board is headed by the
Non Executive Chairman Mr H S Bawa.
Mr R S Raghavan acts as the Managing
Director of the Company and is entrusted
with the substantial powers of
management of the Company subject to
superintendence, control and directions of
the Board.
ii) None of the Directors on the Board is a
Member of more than 10 Committees or
Chairman of more than 5 Committees
across all the companies in which he or
she is/was a Director.
iii) With a view to institutionalize all corporate
affairs and set up values, systems,
standards and procedures for advance
planning for matters requiring discussions
at/decisions by the Board, the Company
has un codified rules and procedures
for the meetings of the Board of Directors
and Committees thereof. These rules and
procedures seek to systematize the
decision making process at the meetings
of the Board/Committees in an informed
and most effective and efficient manner.
iv) The Company holds minimum of four
Board Meetings in each year. The
meetings are generally held at the
Company's Registered Office at "Birla
Building", 9/1, R.N. Mukherjee Road,
Kolkata 700 001.
v) All divisions/departments in the Company
are encouraged to plan their functions well
in advance, particularly with regard to
matters requiring discussions/approval/
decisions in the Board/Committee
Meetings. All such matters are
communicated to the Company Secretary
well in advance so that the same could be
included in the Agenda of the Board
Meetings.
 GOBIND SUGAR MILLS LIMITED

vi) The Chairman, Managing Director and the
Company Secretary in consultation with
other concerned persons in the senior
management, finalise the agenda papers
for the Board Meetings.
vii) Agenda papers are circulated to the
Directors sufficiently in advance. All
material information is incorporated in the
Agenda papers for facilitating meaningful
and focused discussions at the meeting.
Where it is not practicable to attach any
document to the Agenda, the same are
placed on the table at the meeting with
specific reference to this effect in the
Agenda.
Additional Directors on the Board wef 21st
August, 2012. Also, Mr Ram Nath Bansal,
Mr Pradeep Kumar Daga, Mr Chandra
Shekhar Nopany, Mr Akshay Poddar, Dr
Pranab Kumar Mookerjee had resigned
from the Board as non executive directors.
Mrs. Jyotsna Poddar had also resigned
from the post of Chairperson cum
Managing Director of the Company. Mr RS
Raghavan was appointed as the Managing
Director and Mr H S Bawa as the Non
Executive Chairman of the Company both
w.e.f. 28th August, 2012. At the forthcoming
Annual General Meeting Mr Ajay Kumar
Newar shall retire from the Board by
rotation and is eligible for re appointment.

viii) In special and exceptional circumstances, During the year under review four Board
additional or supplementary item(s) on the Meetings were held on 12th August, 2011,
agenda are permitted. Sensitive subject 21st October, 2011, 31st January, 2012 and
matters may be discussed at the meeting 30th April, 2012. The composition of the
without written material being circulated in Board of Directors and their attendance at
advance or at the meeting. the Board Meetings during the year and at
the last Annual General Meeting as also
ix) The independent directors have confirmed the number of directorships in other bodies
that they satisfy the 'criteria of corporate by all the directors are mentioned
independence' as stipulated in Clause 49 below. The number of directorships held by
of the Listing Agreement. the Directors do not include Private Limited
Companies, Foreign Companies and
x) Mr H S Bawa, Mr Suresh Krishnan, Mr Anil Companies incorporated under section 25
C Gupta, Mr Marco Wadia and Mr R S of the Companies Act, 1956 :
Raghavan were appointed as the
Name of Director Category No. of Attendance No. of No. of No. of
of Board at last Directorships Chairmanship/ Equity
Director Meeting AGM Membership of Shares
Attended Board Committee Held
Chairman Member
Mrs. Jyotsna Poddar £** MD 3 No 9 -- -- --
Mr C S Nopany ** NED 4 No 12 1 2 --
Mr A K Newar I/NED 2 Yes -- 1 1 --
Mr N G Khaitan I/NED 3 No 9 1 8 --
Dr P K Mookerjee** I/NED 4 Yes 3 -- -- --
Mr Akshay Poddar ** NED 4 No 11 2 6 2,35,000
Mr B K Malpani I/NED -- No -- -- -- --
Mr P K Daga * I/NED 1 Yes 6 1 5 --
Mr R N Bansal ** I/NED -- No 10 5 5 --
Mr H S Bawa $ NED NA NA 12 -- 4 --
Mr R S Raghavan $ MD NA NA 2 -- -- --
Mr Suresh Krishnan $ NED NA NA 14 3 --. --
Mr Anil C Gupta $ I/NED NA NA -- -- -- --
Mr Marco Wadia $ I/NED NA NA 10 3 3 --

21

• # MD-Managing Director, I-Independent, NED-
Non-Executive Director
• Excludes memberships of Committees other
than Audit Committee and, Shareholders /
Investor's Grievance Committee.
• The number of directorships excludes
Companies other than Public Limited
Companies.
• £ Resigned and ceases to be Managing Director
effective 1st April, 2012
• *Resigned w.e.f. 31st January, 2012.
• **Resignation accepted on meeting held on 28th
August, 2012
• $ Appointed Additional Directors w.e.f. 21st
August, 2012
In accordance with Clause 49 of the Listing Agreement
with the Stock Exchange, membership/chairmanship
of only the Audit Committee and Shareholders'/
Investors' Grievance Committee of all public limited
companies has been considered in the aforesaid
tabulation.
Mr H S Bawa, Mr R S Raghavan, Mr Suresh Krishnan,
Mr Anil C Gupta and Mr Marco Wadia shall hold their
respective offices only upto the date of ensuing Annual
General Meeting. The Company has received notices
from members proposing their candidatures for being
appointed as the Directors of the Company. Their
particulars form part of the Corporate Governance
Report.
3. Audit Committee
Overall purpose/objective
The Audit Committee of the Company has been
constituted in line with the provisions of Clause
49 of the Listing Agreement with the Stock
Exchange read with Section 292A of the
Companies Act, 1956. The purpose of the Audit
Committee is to assist the Board of Directors
("the Board") in reviewing the financial
information which will be provided to the
shareholders and others, reviewing the systems
of internal controls established in the Company,
appointing, retaining and reviewing the
performance of independent accountants/
internal auditors and overseeing the Company's
accounting and financial reporting processes and
the audit of the Company's financial statements.
22
GOBIND SUGAR MILLS LIMITED
a) Terms of Reference
The terms of reference of the Audit Committee
are broadly as under:
• Overview of the Company's financial reporting
process and the disclosure of its financial
information to ensure that the financial
statements reflect a true and fair position and
that sufficient and credible information is
disclosed.
• Recommending the appointment and removal
of external auditors, fixation of audit fee and also
approval for payment for any other services.
• Discussion with statutory auditors before the
audit commences, of the nature and scope of
audit as well as post-audit discussion to
ascertain any area of concern.
• Reviewing the financial statements and draft
audit report, including quarterly/half yearly
financial information.
• Holding periodic discussions and reviewing with
the management, the Statutory Auditors and
internal Auditors, the annual and quarterly
financial reports and statements before
submission to the Board, focusing primarily on:
i. any changes in accounting policies and
practices;
ii. major accounting entries based on
exercise of judgment by management;
iii. qualifications and observations in draft
audit report;
iv. significant adjustments arising out of audit;
v. the going concern assumption;
vi. compliance with accounting standards;
vii. compliance with stock exchange and legal
requirements concerning financial
statements;
viii. any related party transactions as per
Accounting Standard 18
ix. Significant findings of the statutory and
internal auditors and follow up thereon.
 GOBIND SUGAR MILLS LIMITED

• Reviewing the Company's financial and risk Name of the Member Status No. of
management policies. meetings
attended
• Reviewing with the management, statutory and
internal auditors, the adequacy of and Mr Ajay Kumar Newar Chairman --
compliances with internal control systems. Mr Anil C Gupta $ Member --
Mr Marco Wadia $ Member --
• Reviewing the adequacy of internal audit
function, including structure of the internal audit Mr R S Raghavan $ Member --
department, approval of the audit plan and its
Mr Pradeep Kumar Daga * Chairman 1
execution, staffing and seniority of the official
heading the department, reporting structure, Mr Ram Nath Bansal * Member --
coverage and frequency of internal audit.
Dr Pranab Kumar Mookerjee ** Member 4
• Reviewing the findings of any internal Mr Akshay Poddar ** Member 4
investigations by the internal auditors into
* Resigned w.e.f. 31st January, 2012.
matters where there is suspected fraud or
** Resigned w.e.f. 28th August, 2012
irregularity or a failure of internal control systems
$ Appointed w.e.f. 21st August, 2012
of a material nature and reporting the matter to
the Board.
The Company Secretary of the Audit Committee
attended all the above meetings. At the invitation of
• Reviewing the functioning of the Whistle Blower
the Committee, the Internal Auditors, Statutory Auditors
mechanism.
and Cost Auditor also attended the Audit Committee
Meetings to answer and clarify the queries raised at
• Reviewing the appointment of Cost Auditors.
the Meetings.
• Approval of appointment of Chief Financial
The then Chairman of the Audit Committee Mr Pradeep
Officer after assessing the qualification,
Kumar Daga attended the last Annual General Meeting
experience and background of the candidate.
held on 21st December, 2011.
b) Composition and Meetings
4. Remuneration Committee
The Audit Committee comprises of four Directors
Objectives:
out of which three are independent non-
executive Directors viz. Mr Ajay Kumar Newar
i) Though the constitution of the
(Chairman), Mr Anil C Gupta and Mr Marco
Remuneration Committee is not mandatory,
Wadia and Mr R S Raghavan, Managing Director
the Company has constituted the
of the Company. Mr Ankush Wadhawan,
Remuneration Committee to review and
Company Secretary of the Company, is the
determine the Company's policy on
Secretary of the Committee as well. During the
managerial remuneration and recommends
year Mr Pradeep Kumar Daga, Chairman and
to the Board on the specific remuneration
Mr Ram Nath Bansal, Member resigned from the
of Executive Directors, so as to ensure that
Committee with effect from 31st January, 2012.
they are fairly rewarded for their individual
Dr Pranab Kumar Mookerjee and Mr Akshay
contributions to the Company's overall
Poddar resigned from the Committee w.e.f. 28th
performance and their remuneration is in
August, 2012. Mr Ajay Kumar Newar had been
line with the industry practice and
nominated as Member and Chairman of the
standards.
Committee. The Board nominated Mr Anil C
Gupta, Mr Marco Wadia and Mr R S Raghavan
The Committee has all the powers and
as new members of the Audit Committee with
authority as may be necessary for
effect from 21st August, 2012. The Committee
implementation, administration and
met four times during the year on 12th August,
superintendence of various fringe benefits
2011, 21st October, 2011, 31st January, 2012
for managerial remuneration.
and 30th April, 2012 and attendance of the
members at the meetings was as follows:

23
 GOBIND SUGAR MILLS LIMITED

ii) Terms of Reference: * Resigned w.e.f. 31st January, 2012.

** Resigned w.e.f. 28th August, 2012
The broad terms of reference of the $ Appointed as member of committee w.e.f. 28th
Remuneration Committee are as under: August, 2012.

a. To recommend to the Board salary, iv) Remuneration Policy

perquisites and incentive payable to the
Company's executive Directors and
increments in their salaries.
b. To recommend to the Board any new
appointments including re-appointments
and tenure of office of Directors, whether
executive or non-executive.
c. Such other matters as the Board may from
time to time request the Remuneration
Committee to examine and recommend/
approve.
iii) Composition and Meetings:
The Company, while deciding the remuneration
package of the senior management, takes into
consideration the following items:
a. Job profile and special skill requirements.
b. Prevailing compensation structure in
companies of similar size and in the
industry.
c. Remuneration package of comparable
managerial talent in other industries.

The Committee presently comprises of five
non-executive Directors, viz. Mr H S Bawa
(Chairman), Mr Suresh Krishnan, Mr Marco
Wadia, Mr Bal Kishore Malpani and Mr Ajay
Kumar Newar. Mr Pradeep Kumar Daga
and Mr Chandra Shekhar Nopany had
resigned from the Membership of the
Committee with effect from 31st January,
2012 and 28th August, 2012 respectively.
The Board nominated Mr H S Bawa, as
Chairman and Mr Suresh Krishnan and Mr
Marco Wadia as Members of the
Remuneration Committee w.e.f. 28th
August, 2012. The Company Secretary of
the Company is acting as the Secretary of
the Remuneration Committee as well. The
committee met once during the year on 20th
July, 2011 for approval and
recommendation of reappointment of J.
Poddar or ID of the company.
The Non-Executive Directors are paid
remuneration by way of commission
besides sitting fees, if approved by the
Board, on the net profit of the Company at
the rate not exceeding 1% of the net profit
of the Company determined in accordance
with the terms and provisions of Section
349 of the Companies Act, 1956. The
distribution of such commission amongst
the non-executive directors is placed
before the Board for its decision
During the last 13 years the Company has
not been able to pay any commission to
the Non- Executive Directors in view of
inadequacy of the net profit of the
Company determined in the aforesaid
manner.
v) Remuneration of Directors

Name of the Member Status No. of Details of remuneration paid to the Directors for
meetings the year 2011-12 :
attended
Mr H S Bawa $ Member NA i) Executive Director

Mr Bal Kishore Malpani Member 1 Managing Salary Perquisites Retirement Total

Mr Marco Wadia $ Member NA Director Benefits

Mr Suresh Krishnan $ Member NA Rs. Rs. Rs. Rs.

Mr Ajay Kumar Newar Chairman NA Mrs Jyotsna

Poddar 22,50,000 29,900 3,78,174 26,58,074
Mr Pradeep Kumar Daga * Member NA
Mr Chandra Shekhar Nopany** Member 1

24

Mrs Jyotsna Poddar's remuneration package
includes salary, free furnished accommodation
with all expenses for upkeep and maintenance
thereof, contribution to Provident Fund,
reimbursement of medical expenses, leave
travel concession, car with driver and telephone
etc.
Mrs Jyotsna Poddar had also resigned from the
post of Chairperson and Managing Director of
the Company w.e.f. 28th August, 2012.
ii) Non-Executive Directors
The Company pays remuneration to its non-
executive Directors by way of commission upto
1% of the net profit. Besides, the Company also
pays a fee of Rs. 3,000/- and Rs. 1,500/- per
meeting to each Director for attending meetings
of the Board of Directors and Committees
thereof respectively. The details of sitting fee
paid during the year 2011-2012 are as follows:
Sl. No. Name of the Director Amount
(Rs.)
1. Mr Chandra Shekhar Nopany 25500
2. Mr Pradeep Kumar Daga 6000
3. Mr Ajay Kumar Newar 24000
4. Mr Nand Gopal Khaitan 21000
5. Dr Pranab Kumar Mookerjee 18000
6. Mr Akshay Poddar 18000
5. Investors' Grievance Committee
Terms of Reference:
The Investors' Grievance Committee oversees
the redressal of complaints of investors such as
transfer, credit of shares to demat accounts, non-
receipt of dividend/annual reports, approval of
physical shares above 1000 shares, etc. It also
approves allotment of shares and matters
incidental thereto including listing thereof. By a
resolution of the Board of Directors of the
Company dated 6th May, 2011 the terms of
reference of the Investors' Grievance Committee
has further been enlarged to include taking note
of: shares transferred in course of a quarter,
status of dematerialized shares as on the end
of each quarter, stock of blank stationery of
share certificates as on the end of each quarter,
25
GOBIND SUGAR MILLS LIMITED
shareholding pattern of the Company as on the
end of each quarter and detail of investors'
grievances pending as on the end of each
quarter.
Composition & Meetings:
The Committee comprises of five Directors out
of which four are non-executive Directors viz.
Mr Suresh Krishnan (Chairman), Mr Marco
Wadia, Mr Nand Gopal Khaitan and Mr Ajay
Kumar Newar and one Executive Director i.e.
Mr R S Raghavan. Mr Chandra Shekhar Nopany
had resigned from the Membership of the
Committee w.e.f. 28th August, 2012. Mr Ankush
Wadhawan, Company Secretary of the
Company, is the Compliance Officer of the
Company for complying with the requirements
of the Listing Agreement with the stock
exchange. The Committee met four times during
the year on 20th July, 2011, 10th October, 2011,
10th January, 2012 and 16th April, 2012 and
attendance of the members at the meetings was
as follows:
Name of the Member Status No. of
meetings
attended
Mr Suresh Krishnan $ Chairman NA
Mr Marco Wadia $ Member NA
Mr Nand Gopal Khaitan Member 3
Mr Ajay Kumar Newar Member 4
Mr R S Raghavan$ Member NA
Mr Chandra Shekhar Nopany * Member 3
* Resigned w.e.f. 28th August, 2012
$ Appointed as member of committee w.e.f. 28th
August, 2012
The Company Secretary of the Investors'
Grievance Committee attended all the above
meetings. The Company Secretary acts as
Secretary to the Committee Meetings.
The Board of Directors have authorised the
Company Secretary to approve transfers/
transmissions of upto 1000 shares. The
transfers/transmissions approved by the
Company Secretary are periodically placed
before the Committee. The Committee deals with
the applications for transfer/ transmission of

shares, subdivision and consolidation of share
certificates and issue of duplicate share
certificates, etc. The Committee also keeps a
close watch on all complaints/grievances of
shareholders. During the year under review the
Company received no complaint/grievance from
the shareholders. The average period in which
grievances are re-addressed is 7 days from the
date of receipt of letters/complaints. There was
no unresolved complaint as on 30th June, 2012.
There were no share transfer applications
pending for registration on 30th June, 2012.
6. General Body Meetings
The last three Annual General Meetings of the
Company were held as under :
Financial Year Date Time Location
2010-11 21.12.2011 3.00 p.m. Registered Office :
9/1, R.N. Mukherjee Road
Kolkata - 700 001
2009-10 25.03.2011 3.00 p.m. Registered Office :
9/1, R.N. Mukherjee Road
Kolkata - 700 001
2008-09 21.12.2009 3.00 p.m. Registered Office :
9/1, R.N. Mukherjee Road
Kolkata - 700 001
A Special Resolution was passed at the 57th
Annual General Meeting held on the 21st
December, 2009 for payment of Commission
not exceeding 1% of the net profit of the
Company computed in accordance with the
provision of Companies Act, 1956 to the Non
Executive Director of the Company.
8.
A Special resolution was passed at the Extra
Ordinary General Meeting held on the 26th
September, 2011 for re-appointment of Mrs
Jyotsna Poddar as the Managing Director of the
Company for a further period of three years with
effect from 1st October, 2011.
The last Annual General Meeting was held on
21st December, 2011 which was attended by Mr
Pradeep Kumar Daga, the then Chairman of the
Audit Committee.
7. Disclosures
i) There are no materially significant related
party transactions of the Company which
26
GOBIND SUGAR MILLS LIMITED
have potential conflict with the interest of
the Company at large. Transaction with
Related Parties are disclosed in Note No.
30 of the Accounts in the Annual Report.
ii) No penalties or strictures have been
imposed on the Company by Stock
Exchange or SEBI or any statutory
authority on any matter related to capital
market for non-compliance by the
Company during the last three years.
iii) The Company has complied with all the
applicable mandatory requirements. The
Company has not adopted the non
mandatory requirements of the Listing
Agreement except relating to the
Remuneration Committee.
iv) Periodical disclosures from Senior
Management relating to all material
financial and commercial transactions,
where they had or were deemed to have
had personal interest, that might have had
a potential conflict with the interest of the
Company at large were placed before the
Board.
v) The Company has followed the Guidelines
of Accounting Standards laid down by the
Institute of Chartered Accountants of India
in preparation of its financial statements.
vi) During the year under review, the Company
has raised fund by way issue of Preference
Shares on Preferential basis.
Means of Communication
i) Since the financial results in respect of
each quarter and annual audited financial
results of the Company are sent to the
Stock Exchange immediately after they are
approved by the Board/Committee and
posted on the Company's website and also
published in 'The Financial Express', in
English and 'Aajkaal', in Bengali in Kolkata
editions, the same were not separately sent
to the shareholders.
ii) The financial results are simultaneously
posted on the Company's website at
adventz.com / gobindsugar.com.
Distribution of Shareholdings is also
displayed on the website.
 GOBIND SUGAR MILLS LIMITED

iii) No presentation was made to any iv) Dividend Payment Date

Institutional Investor or to any Analysts
during the year.
iv) The Company has designated following e-
mail ID exclusively for redressal of the
investors' grievances and the necessary
disclosure to this effect has also been
made in the Company's website
adventz.com / gobindsugar.com, e-mail ID
ig.gsml@zuari.adventz.com.
v) SEBI Complaints Redress System
(SCORES): The investor complaints are
processed in a centralized web based
complaints redressal system. The salient
features of this system are centralized
database of all complaints to SEBI, online
upload of Action Taken Reports (ATRs) by
the concerned companies and online
viewing by investors of actions taken on
the complaint and its current status.
9. General Shareholders' Information
i) 60th Annual General Meeting
Day : Monday
Date : 17th December, 2012
Time : 3.00 p.m.
Venue : Registered Office -
9/1, R.N. Mukherjee Road
Kolkata - 700 001
ii) Tentative Financial Calendar for the year
2012-13
The Board of Directors do not recommend any
dividend for the year under review.
v) Listing on Stock Exchange and Stock Code
The Equity Shares of the Company are listed on
The Calcutta Stock Exchange Limited (CSE) and
the Stock Code is 10017013. Under the
depository system, International Securities
Identification Number (ISIN) allotted to the Equity
Shares of the Company is INE246E01013.
Annual Listing Fee for the year 2011-12 has been
paid to CSE.
vi) Market Price Data
The Equity Shares of the Company were last
traded on 15th February, 2010 at a price of Rs.
45.75 per share and since then there has been
no trading of Equity Shares of the Company on
the Stock Exchange. The shares of the Company
are infrequently traded on the said Stock
Exchange.
vii) Registrar & Share Transfer Agent
The Company has appointed Link Intime India
Pvt. Ltd. as its Registrar & Share Transfer Agent
(RTA) for handling work related to share
registry in terms of both physical and electronic
modes. Accordingly all correspondence, shares
for transfer, demat/remat requests and other
communication in relation thereto should be
mailed/hand delivered to the RTA directly at the
following address:

Audited Annual Results (2011-12) 28th August, 2012 Link Intime India Pvt. Ltd.
Unit : Gobind Sugar Mills Ltd.
Publication of Audited Results 29th August, 2012 59C, Chowringhee Road, 3rd Floor
First Quarter Results On or before 15th Nov. 2012 Kolkata - 700 020
Tel : 91 033 2289 0540
Second Quarter Results On or before 15th Feb. 2013 Fax : 91 033 2289 0539
Third Quarter Results On or before 15th May 2013 e-mail : kolkata@linkintime.co.in
Audited Annual Results (2012-13) On or before 31st Aug. 2013
viii) Share Transfer System
iii) Book Closure
The Board of Directors have authorised the
The Register of Members and Share Transfer Secretary to approve transfer/transmission of upto
Books of the Company shall remain closed from 1,000 shares. After the requests for transfer/
10th December, 2012 (Monday) to 17th transmission of above 1000 shares in physical form
December, 2012 (Monday) (both days inclusive). are approved by the Investors' Grievance
Committee the same are sent to the Registrar &

27
 GOBIND SUGAR MILLS LIMITED

Share Transfer Agent for completing the necessary xi) Outstanding GDRs/ADRs/Warrants or
procedural formalities and dispatch to the Convertible Instrument
shareholders Share transfer requests, if found valid
and complete in all respects, are normally effected The Company has not issued GDRs/ ADRs/
within a period of 15 days from the date of receipt. Warrants or Convertible Instrument.
A total of 3997 Equity Shares were transferred/
transmitted during the year 2011-12. The xii) Location of Plant
dematerialized shares are directly transferred to
the beneficiaries by the Depositories. SUGAR MILL
P.O. Aira Estate
ix) Distribution of Shareholdings District. Lakhimpur Kheri
Uttar Pradesh, Pin - 262 722
a) The Distribution of Shareholdings as on
30th June, 2012 was as follows : xiii) Address for Correspondence

No. of No. of % of total No. of % of Regd. Office : 9/1, R.N. Mukherjee Road,
Equity share share- shares total Kolkata - 700 001
Shares holders holders held shares Tel. : 91-033-2243 0497/8
1 - 100 2217 69.79 99223 3.10
Company Secretary
101 - 500 760 23.92 160471 5.01
Gobind Sugar Mills Ltd.
501 - 1000 110 3.46 76800 2.40 5th Floor, Tower A, Global Business Park
1001 - 2000 38 1.20 55224 1.73 Sector - 26, MG Road, Gurgaon, Haryana
Tel : 91 - 124 - 482 7841/7800
2001 - 3000 9 0.28 20314 0.63
Fax : 91 - 124 - 421 2046
3001 - 4000 13 0.41 43792 1.37 e-mail : ig.gsml@zuari.adventz.com
4001 - 5000 2 0.06 8542 0.27
5001 - 10000 8 0.25 55778 1.74 Link Intime India Pvt. Ltd.
Unit : Gobind Sugar Mills Ltd.
10001 & above 20 0.63 2679856 83.75 59C, Chowringhee Road, 3rd Floor
Total 3177 100.00 3200000 100.00 Kolkata - 700 020
Tel : 91 033 2289 0540
b) Details of Shareholdings as on 30th June, 2012
Fax : 91 033 2289 0539
was as follows :
e-mail : kolkata@linkintime.co.in
Sl. Particulars No. of %age
No. shares 10. CEO and CFO Certification
1 Promoters 2075632 64.86
The outgoing Chairperson and Managing
3 Indian Public : Director and the Chief Financial Officer of the
a. Bodies Corporate 607563 18.99 Company have given the annual certification on
financial reporting and internal controls to the
c. Individuals 516805 16.15
Board in terms of Clause 49 of the Listing
Total 3200000 100.00 Agreement.

x) Dematerialization of Shares and Liquidity 11. Re-appointment of Directors

The Equity Shares of the Company are
compulsorily traded in dematerialised form at The
Calcutta Stock Exchange Ltd. under depository
systems at both the Depositories viz. National
Securities Depository Limited and Central
Depository Services (India) Limited. 28,19,293
Equity Shares (88.10%) of the Company have
already been dematerialised.
Mr H S Bawa, Mr. Suresh Krishnan, Mr Anil C
Gupta, Mr Marco Wadia and Mr R S Raghavan
were appointed as the Additional Directors and
are eligible for appointment in the ensuing
Annual General Meeting as Directors liable to
retire by rotation.
Brief particulars of the retiring Director are given
below :

28
 GOBIND SUGAR MILLS LIMITED

i) Mr H S Bawa, Born on March 20, 1931, Sl Name of the Company Designation

Mr. Harbachan Singh Bawa, holds an MS No
degree in Chemical Engineering from the
University of Tulsa, USA. 1 Zuari Maroc Phosphates Limited Managing
Director
Mr. Bawa is presently the Executive Vice- 2 Zuari Management Services Ltd. Director
Chairman of Zuari Industries Ltd. He has
also served as Vice Chairman of Chambal 3 Zuari Indian Oiltanking Ltd. Director
Fertilizers and 4 Zuari Seeds Ltd. Director
Chemicals Ltd., from January 1990 to
August 2011. 5 Indian Furniture Products Ltd. Director
6 Zuari Investments Ltd. Director
Names of other Indian public limited
companies in which Mr H S Bawa is a 7 Gulbarga Cement Ltd. Director
Director are as follows : 8 Zuari Rotem Speciality Fertilizers Ltd. Director

Sl Name of the Company Designation 9 Adventz Infraworld India Ltd. Director

No 10 Zuari Fertilisers & Chemicals Ltd. Director
1 Indian Potash Ltd. Director 11 Zuari Agro Chemicals Ltd. Managing
2 The Fertiliser Association of India Director Director

3 Zuari Seeds Ltd. Director 12 Adventz Industries India Ltd. Director

4 Simon India Ltd. Director 13 Zuari Global Ltd. Director

5 Zuari Global Ltd. Whole-time 14 The Fertiliser Association of India Director

Director
iii) Mr Anil C Gupta, aged about 69 years is
6 Lionel India Ltd. Director B.com(Hons) from Shri Ram College of
7 Paradeep Phosphates Ltd. Director Commerce, Delhi University and Fellow
member of the Institute of Chartered
8 Zuari Maroc Phosphates Ltd. Director Accountants of India (ICAI).
9 Zuari Investments Ltd. Director
Mr. Gupta has experience of more than 40
10 Style Spa Furniture Ltd. Director years of statutory audits under the
11 Zuari Fertilisers & Chemicals Ltd. Director Companies Act, 1956, Internal/
Management audits of large corporate
12 Zuari Agro Chemicals Ltd. Director enterprises and he retired as Managing
Partner of A.F. Fergusson & Co.,
ii) Mr Suresh Krishnan, Mr. N. Suresh Hyderabad.
Krishnan, Managing Director of the
Company has 25 years of corporate Currently, he is not a Director in any other
experience in fertilisers, energy and Public Limited Company.
cement sectors;
iv) Mr Marco Wadia, aged 55 years is B.A.
Mr. N. Suresh Krishnan has been (Hons.) L.L.B. and practicing Advocate
associated with Zuari Industries Limited since 1986, specializing in corporate
(ZIL) and related companies over nearly matters and is currently, a partner in the
two decades. firm of Crawford Bayley & Co., Mumbai.

Names of Indian public limited companies Names of Indian public limited companies
in which Mr N. Suresh Krishnan is a in which Mr Marco Wadia is a Director are
Director are as follows: as follows:

29

Sl Name of the Company Designation
No
1 Zuari Global Ltd. Director
2 Chambal Fertilisers & Chemicals Ltd. Director
3 Josts Engineering Comapny Ltd. Director
4 Stovec Industries Ltd. Director
5 Johnson And Johnson Ltd. Director
6 Zuari Maroc Phosphates Ltd. Director
7 Paradeep Phosphates Ltd. Director
8 Simon India Ltd. Director
9 Adventz Infraworld India Ltd. Director
10 Zuari Agro Chemicals Ltd. Director
v) Mr. R.S. Raghavan, aged about 63 years,
joined M/s. Gobind Sugar Mills Limited as
Managing Director w.e.f. 28th August, 2012.
He is a Chartered Accountant and has over
40 years of experience in vide range of
industries such as Fertilizers, Chemicals,
Steel, Textile and Electronics. He had
earlier worked in Zuari Industries Limited
as Vice President - Finance and was later
Executive Director in Birla Home Finance
Limited.
Names of Indian public limited companies
in which Mr RS Raghavan is a Director are
as follows:
Sl Name of the Company Designation
No
1 Zuari Investments Ltd. Additional
Director
12. Prevention of Insider Trading
The Company has adopted the Code of Internal
Procedures and Conduct framed under the SEBI
(Prohibition of Insider Trading) Regulations,
1992, as amended to, inter alia, prevent insider
trading in the shares of the Company. This code
is applicable to all Directors/officers (including
statutory auditors)/designated employees. The
Code ensures the prevention of dealing in
Company's shares by persons having access to
30
GOBIND SUGAR MILLS LIMITED
unpublished price sensitive information. The
Code is posted on the website of the Company
at www.adventz.com / www. gobindsugar.com.
13. Code of Conduct & Ethics
The Company has also adopted a Code of
Conduct and Ethics (Code) for the members of
Board of Directors and Senior Management
Personnel of the Company to follow. The Code
is posted on the website of the Company at
www.adventz.com / www. gobindsugar.com. The
essence of the Code is to conduct the business
of the Company in an honest and ethical
manner, in compliance with applicable laws and
in a way that excludes considerations of
personal advantage. All Directors and Senior
Management Personnel have affirmed their
compliance with the Code, and a declaration to
this effect, signed by the Managing Director, is
attached to this report.
14. Legal Compliances
The Board reviews periodically compliance
reports of all laws applicable to the Company,
prepared by the Company Secretary which is
duly supported by the legal compliance report
of the internal auditors and heads of different
units. The Board also reviews periodically the
steps taken by the Company to rectify instances
of non compliances, if there be any.
15. Compliances with Corporate Governance
Norms
The Company has complied with all the
mandatory requirements of the Code of
Corporate Governance as stipulated in Clause
49 of the Listing Agreement with the Stock
Exchange. The Company has submitted the
compliance report in the prescribed format to
the stock exchange for the quarters ended 30th
September, 2011, 31st December, 2011, 31st
March, 2012 and 30th June, 2012. The Statutory
Auditors have certified that the Company has
complied with the conditions of Corporate
Governance as stipulated in Clause 49 of the
listing agreements with the stock exchange. The
said certificate is annexed to this Report and
will be forwarded to the Stock Exchange and
the Registrar of Companies, West Bengal along
with the Annual Report.

As regards compliance with the non-mandatory
requirements, the following have been adopted:
a. Remuneration Committee:
As detailed in the earlier paragraphs, the
Company has constituted a Remuneration
Committee. The Chairman of the
Remuneration Committee is Mr H S Bawa.
b. Whistle Blower Mechanism
Though a codified Whistle Blower Policy
of the Company is not in place every
employee of the Company is encouraged
to escalate to the level of the Audit
Committee any issue of concerns
impacting and compromising with the
interest of the Company and its
stakeholders in any way. The company is
committed to adhere to highest possible
standards of ethical, moral and legal
business conduct and to open
communication and to provide necessary
safeguards for protection of employees
from reprisals or victimization, for whistle
blowing in good faith.
c. Other non mandatory requirements
have not been adopted by the Company.
16. Subsidiary Company :
The Company does not have any material non
listed Indian Subsidiary Company. The Audit
31
GOBIND SUGAR MILLS LIMITED
Committee reviews the financial statements and
in particular, the investments made by the only
unlisted subsidiary company. The minutes of the
Board meetings as well as statements of all
significant transactions of its unlisted subsidiary
company are placed before the Board of
Directors of the Company for their review.
17. Shareholders' Rights :
The quarterly financial results are published in
leading financial newspapers, uploaded on the
Company's website and any major developments
are covered in the intimation to stock exchange
by the Company. The Company therefore has
not been sending the half yearly financial results
to the shareholders.
18. Corporate Governance Voluntary Guidelines
2009
The Ministry of Corporate Affairs had announced
a set of voluntary guidelines on Corporate
Governance. The Company in line with its stated
policy of being committed to the principles and
practices of good corporate governance, is in
compliance with many of these guidelines, as
reported in the earlier paragraphs. As regards
the remaining guidelines, the Company is in the
process of evaluating the feasibility of
implementing the same progressively.
 GOBIND SUGAR MILLS LIMITED

32
 GOBIND SUGAR MILLS LIMITED

Annexure - E

28th August, 2012

The Board of Directors

Gobind Sugar Mills Ltd.
9/1, R.N. Mukherjee Road
Kolkata 700 001

Dear Sirs,

We have reviewed the financial statements and the cash flow statements of the Company for the year ended 30th
June, 2012 and to the best of our knowledge and belief certify that :

a. the financial statements and the cash flow statements do not contain any materially untrue statement or
omit any material fact or contain statements that might be misleading;

b the said statements together present a true and fair view of the Company's state of affairs and are in
compliance with the existing accounting standards, applicable laws and regulations;

c. no transactions entered into by the Company during the year under reference are fraudulent, illegal or
violative of the Company's Code of Conduct and Ethics;

d. we accept responsibility for establishing and maintaining internal controls for financial reporting and state
that we have evaluated the effectiveness of the internal control systems at the different units of the
Company pertaining to financial reporting and no deficiency in the design or operation of such internal
controls was found by us;

e. we have indicated to the Statutory Auditors of the Company and the Audit Committee that during the year-

i) there has been no significant changes in the internal control over financial reporting;

ii) there has been no significant change in the accounting policies and if there is any, the same have
been disclosed by way of notes to the financial statements, and

iii) there has been no instances of fraud of which we have become aware.

(B.N. Jha) (R.S. Raghavan)

Chief Financial Officer Managing Director

33

AUDITORS' REPORT
To
The Members of Gobind Sugar Mills Limited
1. We have audited the attached Balance Sheet
of Gobind Sugar Mills Limited ('the Company')
as at 30th June, 2012 and also the Statement of
profit and loss and the cash flow statement for
the year ended on that date annexed thereto.
These financial statements are the responsibility
of the Company's management. Our
responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with
auditing standards generally accepted in India.
Those Standards require that we plan and
perform the audit to obtain reasonable assurance
about whether the financial statements are free
of material misstatement. An audit includes
examining, on a test basis, evidence supporting
the amounts and disclosures in the financial
statements. An audit also includes assessing
the accounting principles used and significant
estimates made by management, as well as
evaluating the overall financial statement
presentation. We believe that our audit provides
a reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report)
Order, 2003 (as amended) issued by the Central
Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the
said Order.
4. Without qualifying our opinion, attention is drawn
to Note 28 regarding negative net worth of the
Company. The management based on the future
profitability projections and revival plans, is
hopeful that the Company would be in a position
to generate positive cash flow and profitability in
near future, in view of which the accompanying
financial statements have been prepared under
the going concern assumption, and
consequently, no adjustments have been made
to the carrying values or classification of balance
sheet.
5. Attention is drawn to Note 12 regarding
recognition of Deferred Tax Asset (DTA) (net) of
Rs. 3,268.55 lacs and Note 13 regarding
34
GOBIND SUGAR MILLS LIMITED
recognition of Minimum Alternate Tax (MAT)
Credit Entitlement of Rs. 295.31 lacs up to 30th
June, 2012, based on the future profitability
projections made by the management. In our
opinion in the absence of virtual certainty and
convincing evidence of the aforesaid
projections, required in terms of Accounting
Standard - 22 and Guidance Note on Accounting
for Credit Available in Respect of Minimum
Alternative Tax under the Income-tax Act, 1961,
respectively , had the above impact been
considered, there would be a loss of Rs.
5,844.59 lacs (including DTA and MAT of Rs.
2,588.22 lacs recognised up to 30th June, 2011)
as against the reported loss of Rs. 2,280.73 lacs
for the year and the reserve and surplus balance
would be Rs.(-) 7,254.27 lacs as against the
reported figure of Rs.(-) 3,690.41 lacs as on
the balance sheet date.
In respect of above, the previous year's audit
report was similarly modified.
6. Further to our comments in the Annexure
referred to above, we report that:
i. We have obtained all the information and
explanations, which to the best of our
knowledge and belief were necessary for
the purposes of our audit;
ii. In our opinion, proper books of account as
required by law have been kept by the
Company so far as appears from our
examination of those books;
iii. The balance sheet, statement of profit and
loss and cash flow statement dealt with by
this report are in agreement with the books
of account;
iv. In our opinion, the balance sheet,
statement of profit and loss and cash flow
statement dealt with by this report comply
with the accounting standards referred to
in sub-section (3C) of section 211 of the
Companies Act, 1956, except for our
comments in para 5 above;
v. On the basis of the written representations
received from the directors, as on 30th
June, 2012, and taken on record by the

Board of Directors, we report that none of
the directors is disqualified as on 30th
June, 2012 from being appointed as a
director in terms of clause (g) of sub-
section (1) of section 274 of the Companies
Act, 1956.
vi. In our opinion and to the best of our
information and according to the
explanations given to us, except for the
effects of the matter stated in paragraph 5
above, the said accounts give the
information required by the Companies Act,
1956, in the manner so required and give
a true and fair view in conformity 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 30th June, 2012:
Annexure to the Auditors' Report
(Referred to in our report of even date to the members of Gobind Sugar Mills Limited as at and for the
year ended 30th June, 2012)
(i) a) The Company has maintained proper
records showing full particulars, including
quantitative details and situation of fixed
assets.
b) All fixed assets have not been physically
verified by the management during the year
but there is a regular programme of
verification which, in our opinion, is
reasonable having regard to the size of the
Company and the nature of its assets. No
material discrepancies were noticed on
such verification.
c) There was no disposal of substantial part
of fixed assets during the year.
(ii) a) The management has conducted physical
verification of inventory at reasonable
intervals during the year.
b) The procedures of physical verification of
inventory followed by the management are
reasonable and adequate in relation to the
size of the Company and the nature of its
business.
35
GOBIND SUGAR MILLS LIMITED
b) in the case of the statement of profit
and loss, of the loss for the year
ended on that date; and
c) in the case of cash flow statement, of
the cash flows for the year ended on
that date.
For S. R. BATLIBOI & CO.
Firm Registration Number: 301003E
CHARTERED ACCOUNTANTS
per Bhaswar Sarkar
Place : Kolkata Partner
Dated : August 28, 2012 Membership No. 55596
c) The Company is maintaining proper
records of inventory and no material
discrepancies were noticed on physical
verification.
(iii) a) According to the information and
explanations 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. Accordingly, the provisions of clause
4(iii) (a) to (d) of the Order are not
applicable to the Company and hence not
commented upon.
b) According to information and explanations
given to us, the Company has not taken
any loans, secured or unsecured, from
companies, firms or other parties covered
in the register maintained under section
301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii)
(e) to (g) of the Order are not applicable to
the Company and hence not commented
upon.
 GOBIND SUGAR MILLS LIMITED

(iv) In our opinion and according to the information b) According to the information and
and explanations given to us, there is an explanations given to us, no undisputed
adequate internal control system commensurate amounts payable in respect of provident
with the size of the Company and the nature of fund, investor education and protection
its business, for the purchase of inventory and fund, employees' state insurance, income-
fixed assets and for the sale of goods. During tax, wealth-tax, service tax, sales-tax,
the course of our audit, we have not observed customs duty, excise duty cess and other
any major weakness or continuing failure to material statutory dues were outstanding,
correct any major weakness in the internal at the year end, for a period of more than
control system of the company in respect of six months from the date they became
these areas. There is no sale of services during payable.
the year.
c) According to the records of the Company,
(v) In our opinion, there are no contracts or the dues outstanding of income-tax, sales-
arrangements that need to be entered in the tax, wealth-tax, service tax, customs duty,
register maintained under Section 301 of the excise duty and cess on account of any
Companies Act, 1956. Accordingly, the dispute, are as follows:
provisions of clause 4(v)(b) of the Order is not
applicable to the Company and hence not Name of Nature of Amount Period to Forum
commented upon. the dues (Rs. which the where
statute Lacs) amount dispute
(vi) In respect of deposits accepted, in our opinion relates is pending
and according to the information and
explanations given to us, directives issued by Tax on Entry 35.50 2001-02, Tribunal
the Reserve Bank of India and the provisions of Entry Tax 2008-09 Court
sections 58A, 58AA or any other relevant of Goods (including Lucknow
provisions of the Companies Act, 1956, and the Act, 2000 interest) Additional
rules framed there under, to the extent Commissioner
applicable, have been complied with. We are Sitapur
informed by the management that no order has
been passed by the Company Law Board, UP Trade Trade Tax 4.79 2003-04, Tribunal
National Company Law Tribunal or Reserve Tax Act, 2006-07, Court,
Bank of India or any Court or any other Tribunal. 1948 2007-08, Lucknow;
2011-2012
(vii) In our opinion, the Company has an internal
audit system commensurate with the size of the Central Disallowance 92.96 1998-99, CESTAT
Company and nature of its business. Excise of Cenvat 2001-2002, Delhi
Act, 1944 Credit on 2003-04 to Commissioner
(viii) We have broadly reviewed the books of account certain inputs 2011-12 (Appeals)
maintained by the Company pursuant to the & capital goods Lucknow
rules made by the Central Government for the
maintenance of cost records under section
209(1)(d) of the Companies Act, 1956 in respect
(x) The Company's accumulated losses at the end
of its products and are of the opinion that prima
of the financial year are more than fifty per cent
facie, the prescribed accounts and records have
of its net worth and it has incurred cash losses
been made and maintained.
in the current and immediately preceding
financial year.
(ix) a) Undisputed statutory dues including
provident fund, investor education and
(xi) Based on our audit procedures and as per the
protection fund, employees' state
information and explanations given by the
insurance, income-tax, sales-tax, wealth-
management, the Company has delayed in
tax, service tax, customs duty, excise duty,
repayment of dues to banks during the year as
cess and other material statutory dues
given below. However there was no amount
have generally been regularly deposited
outstanding against such defaults as on the
with the appropriate authorities.
balance sheet date
36

Period of delay Rs. in lacs
31-90 days 75.00
90 days and above 250.00
The Company neither have any outstanding
dues in respect of financial institution nor any
outstanding debentures during the year.
(xii) According to the information and explanations
given to us and based on the documents and
records produced before us, the Company has
not granted loans and advances on the basis of
security by way of pledge of shares, debentures
and other securities.
(xiii) In our opinion, the Company is not a chit fund or
a nidhi / mutual benefit fund / society. Therefore,
the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 (as amended) are
not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or
trading in shares, securities, debentures and
other investments. Accordingly, the provisions of
clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 (as amended) are not applicable to
the Company.
(xv) According to the information and explanations
given to us, the Company has not given
guarantee for loans taken by others from a bank
or financial institutions.
Place : Kolkata
Dated : August 28, 2012
37
GOBIND SUGAR MILLS LIMITED
(xvi) Based on the information and explanations
given to us by the management, term loans were
applied for the purpose for which the loans were
obtained.
(xvii) According to the information and explanations
given to us and on an overall examination of
the balance sheet of the Company, we report
Rs. 9,820 lacs raised on short term basis have
been used for long-term investment (without
considering permanent working capital)
representing repayment of loans and funding of
losses.
(xviii) The Company has not made any preferential
allotment of shares to parties or companies
covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding
debentures during the year.
(xx) The company has not raised any money by way
of public issue during the year.
(xxi) Based upon the audit procedures performed for
the purpose of reporting the true and fair view
of the financial statements and as per the
information and explanations given by the
management, we report that no fraud on or by
the Company has been noticed or reported
during the year.
For S. R. BATLIBOI & CO.
Firm Registration Number: 301003E
CHARTERED ACCOUNTANTS
per Bhaswar Sarkar
Partner
Membership No. 55596
 GOBIND SUGAR MILLS LIMITED

BALANCE SHEET
As at 30 June 2012 (Rs. in lakhs)
Notes As at As at
30 June 2012 30 June 2011

Equity and Liabilities

Shareholders’ Funds
Share Capital 3 2,320.00 320.00
Reserves and Surplus 4 (3,690.41) (1,416.44)
(1,370.41) (1,096.44)
Non-current Liabilities
Long-term borrowings 5 - 28.38
Long-term provisions 6 22.42 22.89
22.42 51.27
Current Liabilities
Short-term borrowings 7 13,122.96 13,851.06
Trade payables 8 6,602.68 964.61
Other current liabilities 8 785.20 2,255.33
Short-term provisions 6 18.80 22.89
20,529.64 17,093.89
TOTAL 19,181.65 16,048.72
Assets
Non-Current Assets
Fixed Assets
Tangible Assets 9 3,392.38 3,777.95
Capital Work-in-Progress 10 8.53 4.27
Non-current Investments 11 1,805.82 1,805.82
Deferred tax assets (net) 12 3,268.55 2,292.91
Long-term loans and advances 13 23.41 11.39
8,498.69 7,892.34
Current Assets
Inventories 14 10,040.62 6,889.03
Trade Receivables 15.1 29.33 13.76
Cash and bank balances 16 57.82 334.99
Short-term loans and advances 13 554.51 658.03
Other current assets 15.2 0.68 260.57
10,682.96 8,156.38
TOTAL 19,181.65 16,048.72
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.

As per our report of even date

For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)

38
 GOBIND SUGAR MILLS LIMITED

STATEMENT OF PROFIT AND LOSS

for the year ended 30 June 2012 (Rs. in lakhs)
Notes Year ended Year ended
30 June 2012 30 June 2011

Income
Revenue from Operations (gross) 17 26,786.26 24,837.44
Less : Excise duty 896.95 1,009.35
Cess 185.39 198.45
Revenue from Operations (net) 25,703.92 23,629.64
Other Income 18 50.40 91.34
Total Revenue (I) 25,754.32 23,720.98

Expenses
Cost of Raw Material Consumed 19 23,600.94 18,050.99
Purchase of Traded Goods 20 2,366.42 330.63
(Increase) / decrease in Inventories of
Finished Goods, Traded Goods and Goods
under Process 20 (3,078.59) 1,977.25
Employee benefits expenses 21 900.06 838.29
Other expenses 22 1,963.51 1,985.84
Total (II) 25,752.34 23,183.00
Profit /(Loss) before finance costs, tax,
depreciation and exceptional item [(I) - (II)] 1.98 537.98
Depreciation 9 421.93 421.36
Finance Costs 23 1,872.94 1,908.06
Profit / (Loss) before exceptional item and tax (2,292.89) (1,791.44)
Exceptional item - Expenses 27 963.48 -
Profit / (Loss) before tax (3,256.37) (1,791.44)
Tax expenses / credit
Deferred tax credit 975.64 538.89
Profit / (Loss) for the year (2,280.73) (1,252.55)

"Earnings per equity share “[nominal value

of share Rs 10 (30 June 2011 : Rs 10]" 24
Basic & Diluted (71.27) (39.14)
Summary of significant accounting policies 2.1

The accompanying notes are an integral part of the financial statements.

For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)
39
 GOBIND SUGAR MILLS LIMITED

CASH FLOW STATEMENT

for the year ended 30 June 2012 (Rs. in lakhs)
As at As at
30 June 2012 30 June 2011
(A) CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit / (Loss) before Tax (3,256.37) (1,791.44)
Adjustments for :
Depreciation 421.93 421.36
Finance Costs 1,872.94 1,908.06
Loss on tangible assets sold / discarded (net) 5.28 1.58
Provision for bad and doubtful debts / advances - 7.47
Bad Debts, irrecoverable claims and advances written off 0.12 2.44
Molasses Storage & Maintenance Reserve 6.76 8.53
"Unspent Liabilities, Provisions no longer required and
“Unclaimed Balances adjusted" (22.05) (16.30)
Interest Income (24.23) (17.71)
Dividend Income - (53.85)
Operating Profit / (Loss) before Working Capital Changes : (995.62) 470.14
"Increase / (Decrease) in Trade Payables,
Other “Liabilities and Provisions" 5,798.70 (2,616.52)
Decrease / (Increase) in Trade Receivables 19.78 (195.06)
Decrease in Loans & Advances and Other Current Assets 41.30 404.11
Decrease / (Increase) in Inventories (3,151.59) 2,120.73
CASH GENERATED FROM OPERATIONS: 1,712.57 183.40
Direct Taxes Refund / (Paid) 50.35 (1.53)
NET CASH FROM OPERATING ACTIVITIES 1,762.92 181.87
(B) CASH FLOW FROM INVESTING ACTIVITIES :
Proceeds from sale of Tangible Assets 1.37 -
Purchase of Fixed Assets including Capital Advances (47.27) (90.59)
Fixed Deposits 304.00 (307.30)
Interest Received 4.22 12.13
Dividend Received - 53.85
Loans received back 5.66 2.45
NET CASH GENERATED FROM / (USED IN)
INVESTING ACTIVITIES 267.98 (329.46)
(C) CASH FLOW FROM FINANCING ACTIVITIES :
Issuance of Preference Share Capital 2,000.00 -
Repayment of Long Term Loans (1,554.72) (2,150.04)
Proceeds from Long Term Loans - 65.91
Repayment of Short Term Borrowings (5,200.00) (2,200.00)
Proceeds from Short Term Borrowings - 7,400.15
Increase / (Decrease) in Cash Credit borrowings 690.90 (1,205.49)
Proceeds from Loan from Subsidiary Company 3,800.00 19.00
Repayment of Loan to Subsidiary Company (19.00) -
Interest Paid (1,695.53) (1,840.51)
Other Borrowing Cost (39.61) (40.27)
Redemption of Preference Share Capital - (0.05)
NET CASH FROM /(USED IN) FINANCING ACTIVITIES (2,017.96) 48.70
NET CHANGES IN CASH & CASH EQUIVALENTS (A+B+C) 12.94 (98.89)
Cash & Cash Equivalents at the beginning of the year 20.18 119.07
Cash & Cash Equivalents at the end of the year 33.12 20.18
* represents Cash and Bank Balances as indicated in Note 16 and excludes Rs 24.70 lacs ( 30 June 2011 : Rs 314.81 lacs)
being balances with restrictive use or having maturity of more than 3 months

As per report of even date

For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)
40

NOTES TO FINANCIAL STATEMENTS
for the year ended 30 June 2012
1. Corporate information
Gobind Sugar Mills Limited (the Company) is a
public Company domiciled in India and
incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on
Calcutta Stock Exchange in India. The Company
is primarily engaged in manufacture and sale of
Sugar and its By-product (Molasses and
Bagasse). The Company presently has
manufacturing facilities at Aira Estate, District
Lakhimpur Kheri in the State of Uttar Pradesh.
2. Basis of preparation
The financial statements of the Company have
been prepared in accordance with generally
accepted accounting principles in India (Indian
GAAP). The Company has prepared these
financial statements to comply in all material
respects with the Accounting Standards notified
under the Companies (Accounting Standards)
Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The
financial statements have been prepared on an
accrual basis and under the historical cost
convention.
The accounting policies adopted in the
preparation of financial statements are
consistent with those used in the previous year,
except for the change in accounting policy
explained in 2.1 (a) below.
2.1 Summary of Significant Accounting Policies
(a) Change in Accounting Policy
Presentation and disclosure of financial
statements
During the year ended 30 June 2012, revised
Schedule VI notified under the Companies Act
1956, has become applicable to the Company,
for preparation and presentation of its financial
statements. The adoption of revised Schedule
VI does not impact recognition and
measurement principles followed for preparation
of financial statements. However, it has
significant impact on presentation and
disclosures made in the financial statements.
The Company has also reclassified the previous
year figures in accordance with the requirements
applicable in the current year.
41
GOBIND SUGAR MILLS LIMITED
(b) Use of Estimates
The preparation of financial statements in
conformity with Indian GAAP requires the
management to make judgments, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and
the disclosure of contingent liabilities, at the end
of the reporting period and the results from
operations during the reporting period. Although
these estimates are based on the management’s
best knowledge of current events and actions,
uncertainty about these assumptions and
estimates could result in the outcomes requiring
a material adjustment to the carrying amounts
of assets or liabilities in future periods.
(c) Tangible Fixed Assets
Tangible Fixed Assets are stated at cost less
accumulated depreciation and impairment losses
determined, if any. The cost comprises the
purchase price inclusive of duties (net of
CENVAT Credit), taxes, incidental expenses,
erection / commissioning expenses and
borrowing costs if capitalisation criteria are met
and directly attributable cost of brining the assets
to its working condition for the intended use.
Machinery spares which can be used only in
connection with an item of tangible fixed asset
and whose use as per technical assessment is
expected to be irregular, are capitalised and
depreciated over the residual life of the
respective assets.
(d) Depreciation on Tangible Fixed Assets
The classification of plant and machinery into
continuous and non-continuous process is done
as per technical certification and depreciation
thereon is provided accordingly.
Depreciation on tangible fixed assets is provided
under Straight Line Method at the rates
prescribed in Schedule XIV of the Companies
Act, 1956 or at the rates based on the useful
lives of the assets estimated by the
management, whichever is higher.
In case of impairment, if any, depreciation is
provided on the revised carrying amount of the
assets over its remaining useful life.

(e) Intangible Assets
Intangible assets acquired separately are
measured on initial recognition at cost. Following
initial recognition, intangible assets are carried
at cost less accumulated amortization and
accumulated impairment losses, if any. Internally
generated intangible assets, excluding
capitalized development costs, are not
capitalized and expenditure is reflected in the
statement of profit and loss in the year in which
the expenditure is incurred.
Intangible assets are amortized on a straight line
basis over the estimated useful economic life of
the asset. The Company uses a rebuttable
presumption that the useful life of an intangible
asset will not exceed ten years from the date
when the asset is available for use. If the
persuasive evidence exists to the affect that
useful life of an intangible asset exceeds ten
years, the Company amortizes the intangible
asset over the best estimate of its useful life.
Such intangible assets and intangible assets not
yet available for use are tested for impairment
annually, either individually or at the cash-
generating unit level. All other intangible assets
are assessed for impairment whenever there is
an indication that the intangible asset may be
impaired.
The amortization period and the amortization
method are reviewed at least at each financial
year end. If the expected useful life of the asset
is significantly different from previous estimates,
the amortization period is changed accordingly.
If there has been a significant change in the
expected pattern of economic benefits from the
asset, the amortization method is changed to
reflect the changed pattern. Such changes are
accounted for in accordance with AS 5 Net Profit
or Loss for the Period, Prior Period Items and
Changes in Accounting Policies.
(f) Leases
Operating Lease
Leases where the lessor effectively retains
substantially all the risks and benefits of the
ownership of the leased assets are classified as
operating leases. Operating lease payments are
recognized as an expense in the statement of
profit and loss on straight line basis over the
lease term.
42
GOBIND SUGAR MILLS LIMITED
Finance Lease
Assets acquired under lease agreements which
effectively transfer to the company substantially
all the risks and benefits incidental to ownership
of the leased items, are capitalized at the lower
of the fair value and present value of minimum
lease payment at the inception of the lease term
and disclosed as leased assets. Lease
payments are apportioned between the finance
charges and the reduction of the lease liability
so as to achieve a constant rate of interest on
the remaining balance of their liability. Finance
charges are charged directly to the expenses
account.
(g) Borrowing Costs
Borrowing cost includes interest and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as
an adjustment to the interest cost.
Borrowing costs directly attributable to the
acquisition, construction of an asset that
necessarily takes a substantial period of time to
get ready for its intended use are capitalized as
part of the cost of the respective asset. All other
borrowing costs are expensed in the period they
occur.
(h) Impairment of Tangible and Intangible
Assets
The carrying amounts of assets are reviewed
at each balance sheet date if there is any
indication of impairment based on internal/
external factors. An impairment loss is
recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset’s
net selling price and value in use. In assessing
value in use, the estimated future cash flows
are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and
risks specific to the asset.
(i) Government Grants and Subsidies
Grants and subsidies from the government are
recognized when there is reasonable assurance
that the grant/subsidy will be received and all
attaching conditions will be complied with.

When the grant or subsidy relates to an expense
item, it is recognized as income over the periods
necessary to match them on a systematic basis
to the costs, which it is intended to compensate.
Revenue grants / subsidies, which are not
related to any expenses, are recognised as
income in the statement of profit and loss.
Where the grant or subsidy relates to an asset,
its value is deducted from the gross value of the
asset concerned in arriving at the carrying
amount of the related asset.
Government grants of the nature of promoters’
contribution are credited to capital reserve and
treated as a part of shareholders’ funds.
(j) Investments
Investments, which are readily realizable and
intended to be held for not more than one year
from the date on which such investments are
made, are classified as current investments. All
other investments are classified as long-term
investments.
Current investments are carried in the financial
statements at lower of cost and fair value
determined on an individual investment basis.
Long-term investments are carried at cost.
However, provision for diminution in value is
made to recognize a decline other than
temporary in the value of the investments.
(k) Inventories
Raw Materials, stores and spares are valued at
lower of cost and net realizable value. However,
these items are considered to be realizable at
cost if the finished products, in which they will
be used, are expected to be sold at or above
cost.
Goods under process, finished goods and
traded goods, are valued at lower of cost and
net realizable value. Finished goods and Goods
under process include cost of conversion and
other costs incurred in bringing the inventories
to their present location and condition based on
normal operating capacity.
Cost of inventories is computed on a weighted
average basis.
43
GOBIND SUGAR MILLS LIMITED
By products and Saleable scraps, whose cost
is not identifiable, are valued at estimated net
realizable value.
Net realizable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and estimated costs
necessary to make the sale.
(l) Revenue Recognition
Revenue is recognised to the extent that it is
probable that the economic benefits will flow to
the Company and the revenue can be reliably
measured.
Revenue from sale of goods is recognized when
all the significant risks and rewards of ownership
of the goods have been passed to the buyer,
usually on delivery of the goods. The Company
collects Sales Tax(s) and Value Added Taxes
(VAT) on behalf of the government and,
therefore, these are not economic benefits
flowing to the Company. Hence, they are
excluded from revenue. Excise duty and Cess
deducted from revenue (gross) is the amount that
is included in the revenue (gross) and not the
entire amount of liability arising during the year.
Interest income is recognized on a time
proportion basis taking into account the amount
outstanding and the applicable interest rate.
Interest income is included under the head “other
income” in the statement of profit and loss.
Dividend income is recognized when the
shareholders' right to receive the payment is
established by the reporting date.
Insurance and other claims are accounted for
on acceptance / actual receipt basis.
(m) Foreign Currency Transactions
Initial recognition
Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign
currency amount the exchange rate between the
reporting currency and the foreign currency at
the date of the transaction.
Conversion
Foreign currency monetary items are reported
using the closing rate. Non-monetary items which

are carried in terms of historical cost
denominated in a foreign currency are reported
using the exchange rate at the date of the
transaction, and non-monetary items which are
carried at fair value or other similar valuation
denominated in a foreign currency are reported
using the exchange rates that existed when the
values were determined.
Exchange differences
Exchange differences arising on the settlement/
conversion of monetary items are recognized as
income or expenses in the year in which they
arise.
Forward Exchange Contracts entered into hedge
foreign currency risk of an existing asset / liability
The premium or discount arising at the inception
of forward exchange contracts is amortized as
expenses or income over the life of the respective
contracts. Exchange differences on such
contracts are recognized in the statement of profit
and loss in the year in which the exchange rates
change. Any profit or loss arising on cancellation
or renewal of forward exchange contracts is
recognized as income or expense for the year.
(n) Retirement and Other Employee Benefits
Retirement benefits in the form of Provident and
Pension Funds are defined contribution schemes
and are charged to the statement of profit and
loss of the year when the contributions to the
respective funds are due. The Company has no
obligation other than contribution to the
respective funds except in case of contribution
towards Provident Fund, where the deficit if any,
arising in making the statutory payment by the
Trust to its members, is being funded by the
company in terms of the provision under
Employee Provident Fund & Miscellaneous
Provisions Act, 1952.
Gratuity liability being a defined benefit obligation
is provided for on the basis of actuarial valuation
on projected unit credit method made at the end
of each financial year.
Short term compensated absences are provided
for based on estimates whereas long term
compensated absences are provided for based
on actuarial valuation on projected unit credit
44
GOBIND SUGAR MILLS LIMITED
method made at the end of each financial year.
Actuarial gains / losses are immediately taken
to the statement of profit and loss and are not
deferred.
(o) Income taxes
Tax expense comprises of current and deferred
tax. Current income tax is measured at the
amount expected to be paid to tax authorities in
accordance with Income Tax Act, 1961 enacted
in India. Deferred income tax reflects the impact
of current year timing differences between
taxable income and accounting income for the
year and reversal of timing differences of earlier
years.
The deferred tax for timing differences between
the book and tax profit for the year is accounted
for using the tax rates and laws that have been
enacted or substantively enacted as of the
reporting date. Deferred tax asset is recognized
only to the extent that there is reasonable
certainty that sufficient future taxable income will
be available against which such deferred tax
asset can be realized. If the company has carry
forward unabsorbed depreciation and tax losses,
deferred tax asset is recognized only to the
extent that there is virtual certainty supported
by convincing evidence that sufficient taxable
income will be available in future against which
such deferred tax asset can be realized.
The carrying amount of deferred tax assets is
reviewed at each reporting date. The company
writes-down the carrying amount of deferred tax
asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be,
that sufficient future taxable income will be
available against which deferred tax asset can
be realised. Any such write-down is reversed to
the extent that it becomes reasonably certain or
virtually certain, as the case may be, that
sufficient taxable income will be available in
future.
At each reporting date, the Company re-
assesses unrecognized deferred tax assets. It
recognizes unrecognized deferred tax assets
to the extent that it has become reasonably
certain or virtually certain, as the case may be
that sufficient future taxable income will be
available against which such deferred tax assets
can be realized.

Minimum Alternative Tax (MAT) credit is
recognised as an asset only when and to the
extent that there is convincing evidence that the
company will pay normal income tax during the
specified period. In the year in which the MAT
credit becomes eligible to be recognized as an
asset in accordance with the recommendations
contained in the guidance Note issued by the
Institute of Chartered Accountants of India, the
said asset is created by way of a credit to the
statement of profit and loss and shown as MAT
Credit Entitlement. The Company reviews the
same at each reporting date and writes down
the carrying amount of MAT Credit Entitlement
to the extent there is no longer convincing
evidence to the effect that the Company will pay
normal Income Tax during the specified period.
(p) Earnings Per Share
Basic Earning per Share is calculated by
dividing the net profit or loss for the year
attributable to equity shareholders by the
weighted number of equity shares outstanding
during the year.
For the purpose of calculating diluted earning
per share, net profit or loss for the year
attributable to equity share holders and the
weighted average number of shares outstanding
during the year are adjusted for the effect of all
dilutive potential equity shares.
(q) Cash and Cash Equivalents
Cash and cash equivalents in the cash flow
statement comprise of cash at bank and on hand
and short-term investments with an original
maturity of three months or less.
(r) Excise Duty
Excise duty is accounted for at the point of
manufacture of goods and accordingly, is
considered for valuation of stocks as on the
reporting date.
45
GOBIND SUGAR MILLS LIMITED
(s) Shares Issue Expenses
Shares issue expenses are adjusted against
Securities Premium Account.
(t) Provisions
A provision is recognized when the company has
a present obligation as a result of past event and
it is probable that an outflow of resources will be
required to settle the obligation, in respect of
which a reliable estimate can be made.
Provisions made in terms of Accounting Standard
29 are not discounted to its present value and
are determined based on the best estimate
required to settle the obligation, at the reporting
date. These are reviewed at each reporting date
and adjusted to reflect the current management
estimates.
(u) Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present
obligation that is not recognized because it is
not probable that an outflow of resources will be
required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized
because it cannot be measured reliably. The
Company does not recognize a contingent
liability but discloses its existence in the financial
statements.
 GOBIND SUGAR MILLS LIMITED

NOTES TO FINANCIAL STATEMENTS

for the year ended 30 June 2012
3. SHARE CAPITAL (Rs. in lacs)
As at As at
30 June 2012 30 June 2011

Authorized shares :
1,50,00,000 (30 June 2011 : 1,02,50,000) Equity Shares of Rs 10/- each 1,500.00 1,025.00
3,50,00,000 (30 June 2011 : 50,00,000) Preference Shares of Rs 10/- each 3,500.00 500.00
Nil (30 June 2011 : 47,50,000) Shares of Rs 10/- each - 475.00

Total 5,000.00 2,000.00

Issued shares :
32,00,000 (30 June 2011 : 32,00,000) Equity Shares of Rs 10/- each 320.00 320.00
3,00,00,000 (30 June 2011 : Nil) 7% Non Convertible Redeemable
Preference Shares of Rs 10/- each 3,000.00 -
Total 3,320.00 320.00

Subscribed and fully paid-up shares :

32,00,000 (30 June 2011 : 32,00,000) Equity Shares of Rs 10/- each 320.00 320.00
1,50,00,000 (30 June 2011 : Nil) 7% Non Convertible Redeemable
Preference Shares 1st Series of Rs 10/- each 1,500.00 -
50,00,000 (30 June 2011 : Nil) 7% Non Convertible Redeemable
Preference Shares 2nd Series of Rs 10/- each 500.00 -
Total 2,320.00 320.00
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

As at 30 June 2012 As at 30 June 2011

No. of Shares Rs in lacs No. of Shares Rs in lacs

Equity Shares
Outstanding at the beginning
and end of the year 3,200,000 320.00 3,200,000 320.00
Preference Shares 1st Series
At the beginning of the year - - - -
Add : Issued during the year 15,000,000 1,500.00 - -
Outstanding at the end of the year 15,000,000 1,500.00 - -
Preference Shares 2nd Series
At the beginning of the year - - -
Add : Issued during the year 5,000,000 500.00 - -
Outstanding at the end of the year 5,000,000 500.00 - -

(b) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs10 per share. Each holder of
equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive remaining assets of the company, after distribution of all preferen-
tial amounts. The distribution to equity shareholders will be in proportion to the amount paid up or cred-
ited as paid up.

46
 GOBIND SUGAR MILLS LIMITED

(c) Terms of redemption of Preference Shares

The Non-Convertible Redeemable Preference Shares (NCRPS) issued during the year carries dividend
@ 7.00% per annum.

NCRPS of 1st Series shall be redeemable at par in three equal installments in the 9th, 10th, and 11th year
from the date of allotment (3rd January, 2012) with a right vested to the board of directors to redeem earlier,
subject to the consent of the subscribers. However, no redemption will take place before 30 June 2014.

NCRPS of 2nd Series shall be redeemable at par in one single lot after the expiry of 7th year from the
date of allotment (18th June, 2012) with a right vested to the board of directors to redeem earlier, subject
to the consent of the subscribers.

Dividend shall accrue annually to the holders of the NCRPS and shall accordingly be paid on each
anniversary of allotment of NCRPS or on premature redemption of NCRPS as aforesaid. However, the
Board reserve the right to pay the dividend earlier with the consent of the subscribers but subject to the
availability of profit. In case of loss or inadequacy of profit, the right of holders of NCRPS to receive the
Dividend shall expire.

(d) Details of shareholders holding more than 5% shares in the company

Name of the shareholder As at 30 June 2012 As at 30 June 2011
No. of Shares % Holding No. of Shares % Holding
in the class in the class

Equity shares of Rs 10 each fully paid

Zuari Investments Ltd. 800,000 25.00% 800,000 25.00%
Adventz Investments and Holding Ltd. 410,952 12.84% 410,952 12.84%
Mr. Akshay Poddar 235,000 7.34% 235,000 7.34%

NCRPS 1st Series of Rs 10 each fully paid

Zuari Investments Limited 15,000,000 100.00% - -

NCRPS 2nd Series of Rs 10 each fully paid

Zuari Investments Limited 5,000,000 100.00% - -

As per the records of the Company including its register of shareholders / members, the above shareholding
represents legal ownerships of shares.
4. RESERVES AND SURPLUS (Rs. in lacs)
As at As at
30 June 2012 30 June 2011
Capital Redemption Reserve
As per the last financial statements 10.00 10.00
Securities Premium Account
As per the last financial statements 200.00 200.00
Molasses & Alcohol Storage and Maintenance Reserve
Balance as per the last financial statements 85.86 77.33
Add: Provided during the year 6.76 8.53
Closing balance 92.62 85.86
Surplus / (Deficit) in the Statement of Profit and Loss
Balance as per last financial statements (1,712.30) (459.75)
Profit / (Loss) for the year (2,280.73) (1,252.55)
Net Surplus / (Deficit) in the Statement of Profit and Loss (3,993.03) (1,712.30)
Total Reserves and Surplus (3,690.41) (1,416.44)

47
 GOBIND SUGAR MILLS LIMITED

5. LONG-TERM BORROWINGS (Rs. in lacs)

Non-current portion Current portion

As at As at As at As at
30 June 2012 30 June 2011 30 June 2012 30 June 2011

Term Loans (secured) :

From Banks -
Under Corporate Loan Scheme - - - 1,000.00
Under Financial Assistance Scheme
(Excise Duty Loan) - - - 474.99
Other Loans and Advances (unsecured) :
Fixed Deposits from related parties (Note 30d) - - - 34.00
Fixed Deposits from others - 28.38 27.07 44.42
- 28.38 27.07 1,553.41

Less : Amount disclosed under the head

“other current liabilities” (Note 8) - - 27.07 1,553.41
Net amount - 28.38 - -

a) Term Loan from bank (except excise duty loan) were secured by first mortgage / charge on all the immovable
and movable assets (save and except book debts), present and future of the company, ranking pari-
passu between the lenders, subject to prior charges created on movables for working capital borrowings
from the Company's bankers. Term Loan under Finance Assistance Scheme (Excise duty Loan) were
secured by a residual charge on entire Fixed Assets (movable & immovable) of the company.

The aforesaid loans has been repaid during the year.

b) Fixed Deposits from related parties / others carry interest of 11.75% p.a. and are repayable after two
years from the respective date of deposits.

6. PROVISIONS (Rs. in lacs)

Long-Term Short-Term
As at As at As at As at
30 June 2012 30 June 2011 30 June 2012 30 June 2011

Provision for employee benefits

Gratuity (Note 25) - - - 7.42
Leave 22.42 22.89 18.30 14.97

22.42 22.89 18.30 22.39

Other provisions
For wealth tax - - 0.50 0.50
- - 0.50 0.50
22.42 22.89 18.80 22.89

48
 GOBIND SUGAR MILLS LIMITED

7. SHORT-TERM BORROWINGS (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Cash credit from Banks (secured) (repayable on demand) 6,222.96 5,532.06

"Loans from related parties (Unsecured) “[including Rs 3,800 lacs
(30 June 2011: Rs 19 lacs) repayable on demand] (Refer Note 30d)" 5,800.00 2,019.00
Other Loans & Advances
Short Term Loan from a Bank (unsecured) 1,100.00 2,800.00
Inter-Corporate Deposit (unsecured) - 3,500.00
13,122.96 13,851.06
Cash Credit from banks are secured by hypothecation of entire current assets and also by a second charge
on the immovable assets of the Company.

Cash Credit borrowings are repayable on demand and carry interest at base rate of the bank plus 5.00%.p.a.

8. OTHER CURRENT LIABILITIES (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Trade payables (refer note 34 for details of dues to

micro and small enterprises) 6,602.68 964.61
Other liabilities :
Current maturities of long-term borrowings (Note 5) 27.07 1,553.41
Advance against Sales 71.32 35.97
Interest accrued but not due on borrowings, deposits etc. 153.68 275.95
Amount payable against redemption of Preference Share Capital 5.43 5.43
Others -
Statutory dues 114.62 84.35
Excise Duty on Closing Stocks 390.12 277.22
Other Miscellaneous 22.96 23.00
785.20 2,255.33
7,387.88 3,219.94

10. CAPITAL WORK-IN-PROGRESS (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Balance brought forward from the previous year 4.27 12.70

Add : Additions during the year 5.44 98.31
9.71 111.01
Less : Transfer to Tangible Assets during the year 1.18 106.74
8.53 4.27

49
 9. TANGIBLE ASSETS

Rs in lacs

Freehold Buildings Plant and Furniture Vehicles Office Total

Land equipments and fixtures equipments
Cost
At 1 July 2010 41.33 885.67 8,536.00 38.18 103.19 114.45 9,718.82
Additions - - 110.20 2.90 - 5.29 118.39
Disposals - - - - - 27.69 27.69
At 30 June 2011 41.33 885.67 8,646.20 41.08 103.19 92.05 9,809.52
Additions - - 19.55 0.90 8.93 13.63 43.01
Disposals - - 40.60 - 11.95 - 52.55
At 30 June 2012 41.33 885.67 8,625.15 41.98 100.17 105.68 9,799.98 #

Depreciation

50
At 1 July 2010 - 268.92 5,174.69 35.72 71.33 85.66 5,636.32
Charge for the year - 20.25 388.49 1.87 4.04 6.71 421.36
Disposals - - - - - 26.11 26.11
At 30 June 2011 - 289.17 5,563.18 37.59 75.37 66.26 6,031.57
Charge for the year - 20.21 389.85 0.96 4.54 6.37 421.93
Disposals - - 34.55 - 11.35 - 45.90
At 30 June 2012 - 309.38 5,918.48 38.55 68.56 72.63 6,407.60

Net Block

At 30 June 2011 41.33 596.50 3,083.02 3.49 27.82 25.79 3,777.95

At 30 June 2012 41.33 576.29 2,706.67 3.43 31.61 33.05 3,392.38

# Includes assets held in joint ownership with others - Gross Block Rs 12.58 lacs (30 June 2011 : Rs 12.58 lacs) and Net Block
Rs 5.68 lacs (30 June 2011 : Rs 6.33 lacs).
GOBIND SUGAR MILLS LIMITED
 GOBIND SUGAR MILLS LIMITED

11. NON-CURRENT INVESTMENTS (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Non Trade Investments (Unquoted)

(valued at cost)
Investment in Subsidiary Company
4,550,000 ( 30 June 2011: 4,550,000) Equity Shares of
Rs 10 each fully paid up in New Eros Tradecom Ltd. 1,805.00 1,805.00

Government Securities
20 Years U.P.State Development Loan, 2008 0.20 0.20
6 Years National Saving Certificates 0.12 0.12
5 Years National Saving Certificates 0.50 0.50

# 0.82 0.82
1,805.82 1,805.82

# Includes Securities valuing Rs 0.52 lacs (30 June 2011 : Rs 0.52 lacs) deposited with Government Authorities.

12. DEFERRED TAX ASSET (NET) (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Deferred tax asset

Carry forward of Business Losses and Unabsorbed Depreciation 3,693.43 2,758.58
Expenditure allowable against taxable income in future years 251.64 282.22
3,945.07 3,040.80
Deferred tax liability
Fixed assets: Impact of difference between tax depreciation and
depreciation charged for the financial reporting 676.52 747.89
676.52 747.89

Net Deferred tax asset 3,268.55 2,292.91

Although, there is carried forward unabsorbed depreciation and business losses as on the reporting date, yet in
view of the future profitability projections, the Company is virtually certain that there would be sufficient taxable
income in future, to realise the aforesaid deferred tax asset.

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 GOBIND SUGAR MILLS LIMITED

13. LOANS AND ADVANCES Non-Current Current (Rs. in lacs)

As at As at As at As at
30 June 2012 30 June 2011 30 June 2012 30 June 2011

(Unsecured, considered good

except stated otherwise)

Capital Advances 22.70 10.63 - -

Sundry Deposits
Considered good 0.71 0.76 - -
Doubtful - 0.25 - -
0.71 1.01 - -
Less : Provision for doubtful advances - 0.25 - -
0.71 0.76 - -

Advances recoverable in cash or in kind

or for value to be received or pending
adjustments
Considered good - - 80.25 162.53
Doubtful 12.98 18.94 - -
12.98 18.94 80.25 162.53
Less : Provision for doubtful advances 12.98 18.94 - -
- - 80.25 162.53
Other loans and advances
Considered good
Loan to employees - - 7.94 13.60
Deposits against demand under appeal
and / or under dispute - - 139.74 103.19
Prepaid Expenses - - 12.63 17.84
Advance payment of Tax, Refunds
receivable and Tax deducted at source - - 2.32 46.55
Minimum Alternative Tax Credit Entitlement # - 295.31 295.31
Balances with Excise and Other
Government Authorities - - 16.32 19.01

Doubtful
Loan to Employee 0.35 0.35 - -
Claims Receivable 0.59 0.59 - -
0.94 0.94 474.26 495.50
Less: Provision for doubtful loans
and advances 0.94 0.94 - -

- - 474.26 495.50

23.41 11.39 554.51 658.03

# Minimum Alternative Tax (MAT) Credit Entitlement of Rs 295.31 lacs (30 June 2011 : Rs 295.31 lacs), being
available as tax credit for set off in future years as per the Income Tax Act, 1961, is carried forward for future
adjustments based on future profitability projections.

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 GOBIND SUGAR MILLS LIMITED

ADVANCES DUE FROM OFFICER (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Due from an officer of the Company - 0.05

14. INVENTORIES (Rs. in lacs)

Notes As at As at
30 June 2012 30 June 2011

Valued at Lower of Cost and Net Realisable Value

Finished goods 20 9,282.93 6,333.96
Goods under process 20 116.94 99.95
Stores, Chemicals and spare parts etc. 248.64 288.54

Valued at Estimated Realisable Value

By-Products 20 388.01 162.33
Scrap 20 4.10 4.25
10,040.62 6,889.03
The above includes stock in transit :
Stores, Chemicals and spare Parts etc. 0.26 12.20
0.26 12.20

15. TRADE RECEIVABLES AND OTHER ASSETS (Rs. in lacs)

15.1 Trade receivables Current
As at As at
30 June 2012 30 June 2011

Outstanding for a period exceeding six months from

the date they are due for payment
Unsecured, considered good - -
Doubtful 1.32 1.32
1.32 1.32

Provision for doubtful trade receivables 1.32 1.32

- -
Other receivables
Unsecured, considered good 29.33 13.76
29.33 13.76

15.2 Other current assets (Rs. in lacs)

As at As at
30 June 2012 30 June 2011
(Unsecured, considered good)
Interest accrued on Loan, Advances, Deposits, Investments etc. 0.68 0.49
Claims Receivable towards Subsidy - 260.08
0.68 260.57

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 GOBIND SUGAR MILLS LIMITED

16. CASH AND BANK BALANCES (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Cash and cash equivalents

Balances with banks:
On current accounts 29.41 14.26
On saving account 0.03 0.02
On deposits with original maturity of less than 3 months 19.06 305.21
Cash on hand 3.66 5.88
52.16 325.37
Other bank balances
Deposits with original maturity of more than 3 months
but less than 12 months * 5.64 9.60
In Post office savings bank account 0.02 0.02
5.66 9.62
57.82 334.99

* Deposit receipts for Rs 19.06 lacs (30 June 2011 : Rs 305.21 lacs) pledged with a Bank as margin money
against loan of Rs. 1,100 lacs (Refer Note 7)

17. REVENUE FROM OPERATIONS (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Revenue from operations

Sale of products
Finished goods 22,058.12 22,066.79
Traded goods 2,680.73 357.08
By products 2,046.82 2,412.38
26,785.67 24,836.25
Other operating revenue
Scrap Sales 0.59 1.19
Revenue from operations (gross) 26,786.26 24,837.44
Less : Excise duty 896.95 1,009.35
Cess 185.39 198.45
Revenue from operations (net) 25,703.92 23,629.64

Detail of products sold (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Finished goods
Sugar 22,058.12 22,066.79
Traded goods
Sugar 2,680.73 357.08
By products
Molasses 1,200.14 1,478.80
Bagasse 846.68 933.58
2,046.82 2,412.38

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 GOBIND SUGAR MILLS LIMITED

18. OTHER INCOME (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Interest income on
Loans, deposits, advances etc. 18.07 17.66
Refund from Income Tax Department 6.12 0.01
Long-term investments 0.04 0.04
Dividend income on Long-term investments - 53.85
Insurance and Other Claims 2.85 2.51
Rent and Hire Charges 0.52 0.68
Unspent Liabilities, Provisions no longer required and
Unclaimed Balances adjusted 22.05 16.30
Miscellaneous Receipts 0.75 0.29
50.40 91.34

19. COST OF RAW MATERIALS CONSUMED (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Purchases and procurement expenses 23,413.19 17,885.68

Purchase tax 187.75 165.31
23,600.94 18,050.99

Details of raw materials consumed (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Sugarcane 23,600.94 18,050.99

20. DECREASE / (INCREASE) IN INVENTORIES (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011
Inventories at the end of the year
Finished goods 9,282.93 6,333.96
By Products 388.01 162.33
Goods under process 116.94 99.95
Scrap 4.10 4.25
9,791.98 6,600.49
Inventories at the beginning of the year
Finished goods 6,333.96 8,160.32
By Products 162.33 530.57
Goods under process 99.95 60.32
Scrap 4.25 3.00
6,600.49 8,754.21
(3,191.49) 2,153.72
Decrease / (Increase) of excise duty and cess on inventories 112.90 (176.47)
(3,078.59) 1,977.25

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 GOBIND SUGAR MILLS LIMITED

Details of purchase of traded goods (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Sugar 2,366.42 330.63

Details of Inventory (Rs. in lacs)

As at As at
30 June 2012 30 June 2011

Finished goods
Sugar 9,282.93 6,333.96
By-products
Molasses 369.91 145.58
Bagasse 18.10 16.75
388.01 162.33
Goods under process
Sugar 116.94 99.95

21. EMPLOYEE EXPENSES (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Salaries, wages and bonus etc. 802.58 713.51

Contribution to provident and other funds 74.71 71.33
Gratuity expense (Note 25) 1.37 32.48
Workmen compensation - 1.00
Employees' welfare expenses 21.40 19.97
900.06 838.29

22. OTHER EXPENSES (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Consumption of stores and spares 376.32 362.24

Packing Materials 470.61 454.82
Power & Fuel 131.81 141.84
Repairs to and Maintenance of :
Buildings 70.93 57.37
Machinery 297.94 348.93
Others 1.85 2.45
Rent 18.49 19.44
Rates & Taxes 12.03 9.70
Insurance 21.83 16.14
Payment to Auditors
As Auditors
Audit Fees 4.00 2.75
Limited Review Fees 2.40 1.65
In other capacity
Tax Audit Fees 1.10 1.10
For Certificates and Other services 3.06 3.40
Reimbursement of Expenses 0.52 0.18
Payment to Cost Auditors 0.15 0.15

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 GOBIND SUGAR MILLS LIMITED

(Rs. in lacs)
Year ended Year ended
30 June 2012 30 June 2011

Commission on sales 95.45 88.58

Freight & Forwarding charges etc. 192.70 180.42
Charity and Donations 6.93 7.42
Provision for bad and doubtful debts / advances - 7.47
Loss on sale / discard of fixed assets (net) 5.28 1.58
Bad Debts, irrecoverable claims and
advances written off 0.12 4.19
Less : Adjusted against provisions - 0.12 1.75 2.44
Molasses Storage & Maintenance Reserve 6.76 8.53
Director's sitting fees 1.13 1.35
Miscellaneous Expenses 242.10 265.89
1,963.51 1,985.84

23. FINANCE COST (Rs. in lacs)

Year ended Year ended
30 June 2012 30 June 2011

Interest 1,833.33 1,867.79

Other Borrowing Costs 39.61 40.27
1,872.94 1,908.06

24. EARNINGS PER SHARE (EPS) (Rs. in lacs)

The following reflects the profit and share data used in the basic and diluted EPS computations:
Year ended Year ended
30 June 2012 30 June 2011

Loss after tax 2,280.73 1,252.55

Net profit / (loss) for calculation of basic and diluted EPS 2,280.73 1,252.55

Nos. Nos.
Weighted average number of equity shares in calculating
basic and diluted EPS 3,200,000 3,200,000

Earnings per equity share

[nominal value of share Rs 10 (30 June 2011 : Rs 10)]
Basic & Diluted (71.27) (39.14)

25. GRATUITY - DEFINED BENEFIT PLAN

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years
or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment
of Gratuity Act, 1972. The Company has got an approved gratuity fund which has taken an insurance
policy with Life Insurance Corporation of India (LIC) to cover the gratuity liabilities.

The following tables summarize the components of net benefit expense recognized in the statement of
profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

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 GOBIND SUGAR MILLS LIMITED

Statement of profit and loss

Net employee benefit expense recognized in employee costs (Rs. in lacs)
Year ended Year ended
30 June 2012 30 June 2011

Current service cost 16.01 15.09

Interest cost on benefit obligation 22.88 20.48
Expected return on plan assets (23.26) (20.34)
Net actuarial (gain) / loss recognized in the year (14.26) 17.25
Net benefit expense 1.37 32.48
Actual return on plan assets 28.00 18.91

Balance sheet
Net Benefit liability / (asset) (Rs. in lacs)
As at As at
30 June 2012 30 June 2011

Present value of defined benefit obligation 304.40 297.03

Fair value of plan assets 319.82 289.61
Plan liability / (asset) (15.42) 7.42

Changes in the present value of the defined benefit

obligation are as follows : (Rs. in lacs)
30 June 30 June
2012 2011
Opening defined benefit obligation 297.03 266.28
Current service cost 16.01 15.09
Interest cost 22.88 20.48
Benefits paid (22.00) (20.64)
Actuarial (gains) / losses on obligation (9.52) 15.82
Closing defined benefit obligation 304.40 297.03

Changes in the fair value of plan assets are as follows : (Rs. in lacs)
30 June 30 June
2012 2011

Opening fair value of plan assets 289.61 237.73

Expected return 23.26 20.34
Contributions by employer 24.21 53.61
Benefits paid (22.00) (20.64)
Actuarial gains / (losses) 4.74 (1.43)
Closing fair value of plan assets 319.82 289.61

The Company expects to contribute Rs 25.00 lacs (30 June 2011 Rs 35.00 lacs) to Gratuity Fund in the next
year.

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 GOBIND SUGAR MILLS LIMITED

The major categories of plan assets as a percentage of the fair

value of total plan assets are as follows : (Rs. in lacs)
30 June 30 June
2012 2011

Investments with LIC 100% 100%

The principal assumptions are shown below : (Rs. in lacs)

30 June 30 June
2012 2011

Discount rate 8.00% 8.00%

Expected rate of return on assets 8.50% 8.00%
Salary Increase 5.00% 5.00%
Withdrawal Rates Varying between Nil to 4.20% per
annum depending upon the
duration and age of the employees
Mortality Table LIC (1994-96) ultimate

Amounts for the current and previous four periods are as follows :

30 June 2012 30 June 2011 30 June 2010 30 June 2009 30 June 2008
Rs in lacs Rs in lacs Rs in lacs Rs in lacs Rs in lacs
Gratuity
Defined benefit obligation 304.40 297.03 266.28 216.08 182.82
Plan assets 319.82 289.61 237.73 227.91 204.47
Surplus / (deficit) 15.42 (7.42) (28.55) 11.83 21.65
Experience (gain) / loss
adjustments on plan liabilities 9.52 (15.82) Not Available *
Experience gain / (loss)
adjustments on plan assets 4.74 (1.43) Not Available *

* Experience adjustments on plan liabilities and assets are not readily available for earlier years and hence not
disclosed.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

Defined Contribution Plan : The Company has recognised the following amount as an expense and included
under, “Contribution to Provident & Other Funds”.
(Rs. in lacs)
30 June 30 June
2012 2011
Contribution to Provident Fund and other Funds 74.71 71.33
74.71 71.33

Based on past return on assets of the Provident Fund Trust and statutory obligation of the Trust towards its
members, the management does not expect any material deficit in fund position and hence no provision has
been considered necessary in terms of accounting policy as stated in para "n" of Note No. 2 above.

59
 GOBIND SUGAR MILLS LIMITED

26. Leases
Operating lease
Certain office premises, godowns, cane purchasing centre etc. are held on operating lease. The lease term is
ranging upto 3 years and are renewable for further period either mutually or at the option of the Company. There
is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. There
are no subleases. The leases are cancellable.
(Rs. in lacs)
30 June 30 June
2012 2011

Lease payments made for the year 18.49 19.44

18.49 19.44

27 During the year, the Company has paid Rs 963.48 lacs towards differential cane price for the sugar
season 2007-08 in terms of the order of the Hon'ble Supreme Court dated 17 January 2012, which has
been shown as "Exceptional Item" in the statement of profit & loss.

28 The networth of the company is negative as the accumulated loss of the company as at the reporting date
stands at Rs 3993.03 lacs (30 June 2011 Rs 1712.30 lacs) as against the shareholder's fund of Rs
2622.62 lacs (30 June 2011 Rs 615.86 lacs). The company during the year has made a reference to the
Hon'ble Board of Industrial and Financial Reconstruction (BIFR) pursuant to the provision of Sick Industrial
Companies (Special Provisions) Act, 1985. To bridge the gap of accumulated losses and shareholders
fund and to make the networth positive, the promoters of the company, subsequent to the balance sheet
date has infused Rs 1500 lacs towards subscription of share capital of the company. Further , based on
future profitability projections, the management is hopeful that the Company would be in a position to
generate positive cash flows and profits in the near future. Considering the above, these financial statements
have been drawn-up on going concern assumption which is appropriate in the opinion of management.

29 The company has only one business segment i.e. sugar and thus no further disclosures are required in
accordance with Accounting Standard 17 issued by Institute of Chartered Accountants of India.

30. Related party Disclosures

60
 GOBIND SUGAR MILLS LIMITED

61
 GOBIND SUGAR MILLS LIMITED

The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave
benefits, as they are determined on an actuarial basis for the company as a whole.

31 Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for
(net of advances) Rs 69.77 lacs (30 June 2011 : Rs 29.99 lacs).

(b) For commitments relating to lease arrangements, please refer note 26.

32. Contingent liabilities (Rs. in lacs)

30 June 30 June
2012 2011
(a) Demands / Claims by various Government Authorities and
others not acknowledged as debts and contested by the Company :
(i) Excise Duty & Service Tax 326.39 205.83
(ii) Sales & Entry Tax 81.18 113.19
(iii) Collection charges against Cane Dues 288.05 288.05
(iv) Others 25.66 17.69
Total 721.28 624.76

33 Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in
which directors are interested and which are outstanding at the end of the year in terms of Clause 32 of
the Listing Agreement with Stock Exchanges.
(Rs. in lacs)
Particulars Outstanding amount as at Maximum amount
outstanding during the year

30 June 2012 30 June 2011 30 June 2012 30 June 2011

Advances to a Subsidiary Company
New Eros Tradecom Limited - - - 3.58

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 GOBIND SUGAR MILLS LIMITED

34. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
(Rs. in lacs)
30 June 2012 30 June 2011
(i) Principal amount remaining unpaid to any supplier at the end of
accounting year (including retention money against performance). 7.52 11.65
(ii) Interest due on above. 0.07 0.16
Total of (i) & (ii) 7.59 11.81
(iii) Amount of interest paid by the Company to the suppliers
in terms of section 16 of the Act.
- -
(iv) Amount paid to the suppliers beyond the respective due date. 31.56 44.56
(v) Amount of interest due and payable for the period of delay
in payments (which have been paid but beyond the due date
during the year) but without adding the interest specified under the Act. 1.03 1.17
(vi) Amount of interest accrued and remaining unpaid at the end
of accounting year. 0.90 1.33
(vii) Amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise, for the purpose of disallowance as
a deductible expenditure under section 23 of this Act. 6.20 4.88

It is not possible to identify consumption of spare parts separately and hence consumption of stores and spares
is shown above.

37. Previous year figures

Previous years figure have been rearranged where necessary to compare to the current classification
under Revised Schedule VI stated in Note 2.1 (a) above.
As per our report of even date
For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)
63
GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

64
GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

65
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

BALANCE SHEET
As at 30 June 2012 (Rs. in lakhs)
Notes As at As at
30 June 2012 30 June 2011

Equity and Liabilities

Shareholders’ Funds
Share Capital 3 2,320.00 320.00
Reserves and Surplus 4 (3,631.95) (1,414.62)
(1,311.95) (1,094.62)

Non-current Liabilities
Long-term borrowings 5 3,800.00 28.38
Long-term provisions 6 22.42 22.89
3,822.42 51.27
Current Liabilities
Short-term borrowings 7 9,322.96 13,832.06
Trade payables 8 6,602.73 964.66
Other current liabilities 8 785.33 2,255.33
Short-term provisions 6 18.80 22.89
16,729.82 17,074.94
TOTAL 19,240.29 16,031.59
Assets
Non-Current Assets
Fixed Assets
Tangible Assets 9 3,392.38 3,777.95
Capital Work-in-Progress 10 8.53 4.27
Non-current Investments 11 1,788.25 1,788.25
Deferred tax assets (net) 12 3,268.55 2,292.91
Long-term loans and advances 13 23.41 11.39
8,481.12 7,874.77
Current Assets
Inventories 14 10,040.62 6,889.03
Trade Receivables 15.1 29.33 13.76
Cash and bank balances 16 133.88 335.43
Short-term loans and advances 13 554.66 658.03
Other current assets 15.2 0.68 260.57
10,759.17 8,156.82
TOTAL 19,240.29 16,031.59
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)

66
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

STATEMENT OF PROFIT AND LOSS

for the year ended 30 June 2012 (Rs. in lakhs)
Notes Year ended Year ended
30 June 2012 30 June 2011

Income
Revenue from Operations (gross) 17 26,786.26 24,837.44
Less : Excise duty 896.95 1,009.35
Cess 185.39 198.45
Revenue from Operations (net) 25,703.92 23,629.64
Other Income 18 114.33 99.95
Total Revenue (I) 25,818.25 23,729.59

Expenses
Cost of Raw Material Consumed 19 23,600.94 18,050.99
Purchase of Traded Goods 20 2,366.42 330.63
(Increase) / decrease in Inventories of Finished
Goods, Traded Goods and Goods under Process 20 (3,078.59) 1,977.25
Employee benefits expenses 21 900.06 838.29
Other expenses 22 1,970.83 1,986.47
Total (II) 25,759.66 23,183.63
Profit /(Loss) before finance costs, tax,
depreciation and exceptional item [(I) - (II)] 58.59 545.96
Depreciation 9 421.93 421.36
Finance Costs 23 1,872.91 1,908.06
Profit / (Loss) before exceptional item and tax (2,236.25) (1,783.46)
Exceptional item - expenses 27 963.48 -
Profit / (Loss) before tax (3,199.73) (1,783.46)
Tax expenses / credit
Deferred tax credit 975.64 538.89
Profit / (Loss) for the year (2,224.09) (1,244.57)

"Earnings per equity share “[nominal value

of share Rs 10 (30 June 2011 : Rs 10]" 24
Basic & Diluted (69.50) (38.89)
Summary of significant accounting policies 2.1

The accompanying notes are an integral part of the financial statements.

For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)
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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

CASH FLOW STATEMENT

for the year ended 30 June 2012 (Rs. in lakhs)
As at As at
30 June 2012 30 June 2011

* represents Cash and Bank Balances as indicated in Note 16 and excludes Rs 24.70 lacs ( 30 June 2011 : Rs 314.81
lacs) being balances with restrictive use or having maturity of more than 3 months
As per report of even date
For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)
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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
NOTES TO FINANCIAL STATEMENTS
for the year ended 30 June 2012
1. Principles of Consolidated Financial
Statements:
"The consolidated financial statements of
Gobind Sugar Mills Ltd. ("" the Company"") and
its subsidiary company ( collectively referred as
"" the Group"") have been prepared on the
following basis:”
(a) The financial statements of the Company
and its subsidiary are combined on a line-
by-line basis by adding together the book
values of like items of assets, liabilities,
income and expenditure, after fully
eliminating intra group balances, intra
group transactions and any unrealized
profit/loss included therein is accordance
with accounting standard (AS – 21)
“Consolidated Financial Statements”.
(b) "The consolidated financial statements
have been prepared using uniform
accounting policies, except stated
otherwise, for like transactions and are
prepared, to the extent possible, in the
same manner as the Company’s
separate financial statements.“"
(c) "The difference between the cost of the
Company’s investments in the subsidiary
and their respective equity as on the date
of investment is treated as Goodwill /
Capital Reserve, as the case may be, in
the financial statements.“"
(d) "The Subsidiary Company considered in
the financial statements is as follows:“"
Name Country of % of ownership/
Incorporation voting power
as on as on
30.06.2012 30.06.2011
New India 100 100
Eros
Tradecom
Ltd.
2. Basis of preparation
The financial statements of the Company have
been prepared in accordance with generally
69
accepted accounting principles in India (Indian
GAAP). The Company has prepared these
financial statements to comply in all material
respects with the Accounting Standards notified
under the Companies (Accounting Standards)
Rules, 2006, (as amended) and the relevant
provisions of the Companies Act, 1956. The
financial statements have been prepared on an
accrual basis and under the historical cost
convention.
The accounting policies adopted in the
preparation of financial statements are
consistent with those used in the previous year,
except for the change in accounting policy
explained in 2.1 (a) below.
2.1 Summary of Significant Accounting Policies
(a) Change in Accounting Policy
Presentation and disclosure of financial
statements
During the year ended 30 June 2012, revised
Schedule VI notified under the Companies Act
1956, has become applicable to the Group, for
preparation and presentation of its financial
statements. The adoption of revised Schedule
VI does not impact recognition and
measurement principles followed for
preparation of financial statements. However,
it has significant impact on presentation and
disclosures made in the financial statements.
The Group has also reclassified the previous
year figures in accordance with the
requirements applicable in the current year.
(b) Use of Estimates
The preparation of financial statements in
conformity with Indian GAAP requires the
management to make judgments, estimates
and assumptions that affect the reported
amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent
liabilities, at the end of the reporting period and
the results from operations during the reporting
period. Although these estimates are based on
the management’s best knowledge of current
events and actions, uncertainty about these
assumptions and estimates could result in the
outcomes requiring a material adjustment to the
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
carrying amounts of assets or liabilities in future
periods.
(c) Tangible Fixed Assets
Tangible Fixed Assets are stated at cost less
accumulated depreciation and impairment losses
determined, if any. The cost comprises the
purchase price inclusive of duties (net of CENVAT
Credit), taxes, incidental expenses, erection /
commissioning expenses and borrowing costs if
capitalisation criteria are met and directly
attributable cost of brining the assets to its working
condition for the intended use.
Machinery spares which can be used only in
connection with an item of tangible fixed asset
and whose use as per technical assessment is
expected to be irregular, are capitalised and
depreciated over the residual life of the
respective assets.
(d) Depreciation on Tangible Fixed Assets
The classification of plant and machinery into
continuous and non-continuous process is done
as per technical certification and depreciation
thereon is provided accordingly.
Depreciation on tangible fixed assets is provided
under Straight Line Method at the rates
prescribed in Schedule XIV of the Companies
Act, 1956 or at the rates based on the useful
lives of the assets estimated by the
management, whichever is higher.
In case of impairment, if any, depreciation is
provided on the revised carrying amount of the
assets over its remaining useful life.
(e) Intangible Assets
Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible assets
are carried at cost less accumulated
amortization and accumulated impairment
losses, if any. Internally generated intangible
assets, excluding capitalized development
costs, are not capitalized and expenditure is
reflected in the statement of profit and loss in
the year in which the expenditure is incurred.
Intangible assets are amortized on a straight
line basis over the estimated useful economic
life of the asset. The Company uses a rebuttable
presumption that the useful life of an intangible
70
asset will not exceed ten years from the date
when the asset is available for use. If the
persuasive evidence exists to the affect that
useful life of an intangible asset exceeds ten
years, the Company amortizes the intangible
asset over the best estimate of its useful life.
Such intangible assets and intangible assets not
yet available for use are tested for impairment
annually, either individually or at the cash-
generating unit level. All other intangible assets
are assessed for impairment whenever there is
an indication that the intangible asset may be
impaired.
The amortization period and the amortization
method are reviewed at least at each financial
year end. If the expected useful life of the asset
is significantly different from previous estimates,
the amortization period is changed accordingly.
If there has been a significant change in the
expected pattern of economic benefits from the
asset, the amortization method is changed to
reflect the changed pattern. Such changes are
accounted for in accordance with AS 5 Net Profit
or Loss for the Period, Prior Period Items and
Changes in Accounting Policies.
(f) Leases
Operating Lease
Leases where the lessor effectively retains
substantially all the risks and benefits of the
ownership of the leased assets are classified
as operating leases. Operating lease payments
are recognized as an expense in the statement
of profit and loss on straight line basis over the
lease term.
Finance Lease
Assets acquired under lease agreements which
effectively transfer to the company substantially
all the risks and benefits incidental to ownership
of the leased items, are capitalized at the lower
of the fair value and present value of minimum
lease payment at the inception of the lease term
and disclosed as leased assets. Lease
payments are apportioned between the finance
charges and the reduction of the lease liability
so as to achieve a constant rate of interest on
the remaining balance of their liability. Finance
charges are charged directly to the expenses
account.
(g) Borrowing Costs
Borrowing cost includes interest and exchange
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
differences arising from foreign currency
borrowings to the extent they are regarded as
an adjustment to the interest cost.
Borrowing costs directly attributable to the
acquisition, construction of an asset that
necessarily takes a substantial period of time
to get ready for its intended use are capitalized
as part of the cost of the respective asset. All
other borrowing costs are expensed in the
period they occur.
(h) Impairment of Tangible and Intangible Assets
The carrying amounts of assets are reviewed
at each balance sheet date if there is any
indication of impairment based on internal/
external factors. An impairment loss is
recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset’s
net selling price and value in use. In assessing
value in use, the estimated future cash flows
are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and
risks specific to the asset.
(i) Government Grants and Subsidies
Grants and subsidies from the government are
recognized when there is reasonable assurance
that the grant/subsidy will be received and all
attaching conditions will be complied with.
When the grant or subsidy relates to an expense
item, it is recognized as income over the periods
necessary to match them on a systematic basis
to the costs, which it is intended to compensate.
Revenue grants / subsidies, which are not
related to any expenses, are recognised as
income in the statement of profit and loss.
Where the grant or subsidy relates to an asset,
its value is deducted from the gross value of
the asset concerned in arriving at the carrying
amount of the related asset.
Government grants of the nature of promoters’
contribution are credited to capital reserve and
treated as a part of shareholders’ funds.
(j) Investments
Investments, which are readily realizable and
intended to be held for not more than one year
71
from the date on which such investments are
made, are classified as current investments. All
other investments are classified as long-term
investments.
Current investments are carried in the financial
statements at lower of cost and fair value
determined on an individual investment basis.
Long-term investments are carried at cost on
individual investment basis. However, provision
for diminution in value is made to recognize a
decline other than temporary in the value of the
investments.
(k) Inventories
Raw Materials, stores and spares are valued
at lower of cost and net realizable value.
However, these items are considered to be
realizable at cost if the finished products, in
which they will be used, are expected to be sold
at or above cost.
Goods under process, finished goods and
traded goods, are valued at lower of cost and
net realizable value. Finished goods and Goods
under process include cost of conversion and
other costs incurred in bringing the inventories
to their present location and condition based
on normal operating capacity.
Cost of inventories is computed on a weighted
average basis.
By products and Saleable scraps, whose cost
is not identifiable, are valued at estimated net
realizable value.
Net realizable value is the estimated selling
price in the ordinary course of business, less
estimated costs of completion and estimated
costs necessary to make the sale.
(l) Revenue Recognition
Revenue is recognised to the extent that it is
probable that the economic benefits will flow to
the Group and the revenue can be reliably
measured.
Revenue from sale of goods is recognized when
all the significant risks and rewards of
ownership of the goods have been passed to
the buyer, usually on delivery of the goods. The
Company collects Sales Tax(s) and Value
Added Taxes (VAT) on behalf of the government
and, therefore, these are not economic benefits
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
flowing to the Company. Hence, they are
excluded from revenue. Excise duty and Cess
deducted from revenue (gross) is the amount
that is included in the revenue (gross) and not
the entire amount of liability arising during the
year.
Interest income is recognized on a time
proportion basis taking into account the amount
outstanding and the applicable interest rate.
Interest income is included under the head
“other income” in the statement of profit and
loss.
Dividend income is recognized when the
shareholders' right to receive the payment is
established by the reporting date.
Insurance and other claims are accounted for
on acceptance / actual receipt basis.
(m) Foreign Currency Transactions
Initial recognition
Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign
currency amount the exchange rate between
the reporting currency and the foreign currency
at the date of the transaction.
Conversion
Foreign currency monetary items are reported
using the closing rate. Non-monetary items
which are carried in terms of historical cost
denominated in a foreign currency are reported
using the exchange rate at the date of the
transaction, and non-monetary items which are
carried at fair value or other similar valuation
denominated in a foreign currency are reported
using the exchange rates that existed when the
values were determined.
Exchange differences
Exchange differences arising on the settlement/
conversion of monetary items are recognized
as income or expenses in the year in which they
arise.
Forward Exchange Contracts entered into
hedge foreign currency risk of an existing asset
/ liability. The premium or discount arising at
the inception of forward exchange contracts is
amortized as expenses or income over the life
of the respective contracts. Exchange
differences on such contracts are recognized
in the statement of profit and loss in the year in
which the exchange rates change. Any profit
or loss arising on cancellation or renewal of
72
forward exchange contracts is recognized as
income or expense for the year.
(n) Retirement and Other Employee Benefits
Retirement benefits in the form of Provident and
Pension Funds are defined contribution
schemes and are charged to the statement of
profit and loss of the year when the contributions
to the respective funds are due. The Company
has no obligation other than contribution to the
respective funds except in case of contribution
towards Provident Fund, where the deficit if any,
arising in making the statutory payment by the
Trust to its members, is being funded by the
company in terms of the provision under
Employee Provident Fund & Miscellaneous
Provisions Act, 1952.
Gratuity liability being a defined benefit obligation
is provided for on the basis of actuarial valuation
on projected unit credit method made at the end
of each financial year.
Short term compensated absences are provided
for based on estimates whereas long term
compensated absences are provided for based
on actuarial valuation on projected unit credit
method made at the end of each financial year.
Actuarial gains / losses are immediately taken
to the statement of profit and loss and are not
deferred.
(o) Income taxes
Tax expense comprises of current and deferred
tax. Current income tax is measured at the
amount expected to be paid to tax authorities in
accordance with Income Tax Act, 1961 enacted
in India. Deferred income tax reflects the impact
of current year timing differences between
taxable income and accounting income for the
year and reversal of timing differences of earlier
years.
The deferred tax for timing differences between
the book and tax profit for the year is accounted
for using the tax rates and laws that have been
enacted or substantively enacted as of the
reporting date. Deferred tax asset is recognized
only to the extent that there is reasonable
certainty that sufficient future taxable income will
be available against which such deferred tax
asset can be realized. If the company has carry
forward unabsorbed depreciation and tax losses,
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
deferred tax asset is recognized only to the
extent that there is virtual certainty supported
by convincing evidence that sufficient taxable
income will be available in future against which
such deferred tax asset can be realized.
The carrying amount of deferred tax assets is
reviewed at each reporting date. The company
writes-down the carrying amount of deferred tax
asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be,
that sufficient future taxable income will be
available against which deferred tax asset can
be realised. Any such write-down is reversed to
the extent that it becomes reasonably certain
or virtually certain, as the case may be, that
sufficient taxable income will be available in
future.
At each reporting date, the Company re-
assesses unrecognized deferred tax assets. It
recognizes unrecognized deferred tax assets
to the extent that it has become reasonably
certain or virtually certain, as the case may be
that sufficient future taxable income will be
available against which such deferred tax assets
can be realized.
Minimum Alternative Tax (MAT) credit is
recognised as an asset only when and to the
extent that there is convincing evidence that the
company will pay normal income tax during the
specified period. In the year in which the MAT
credit becomes eligible to be recognized as an
asset in accordance with the recommendations
contained in the guidance Note issued by the
Institute of Chartered Accountants of India, the
said asset is created by way of a credit to the
statement of profit and loss and shown as MAT
Credit Entitlement. The Company reviews the
same at each reporting date and writes down
the carrying amount of MAT Credit Entitlement
to the extent there is no longer convincing
evidence to the effect that the Company will pay
normal Income Tax during the specified period.
(p) Earnings Per Share
Basic Earning per Share is calculated by
dividing the net profit or loss for the year
attributable to equity shareholders by the
weighted number of equity shares outstanding
during the year.
For the purpose of calculating diluted earning
per share, net profit or loss for the year
attributable to equity share holders and the
73
weighted average number of shares
outstanding during the year are adjusted for
the effect of all dilutive potential equity shares.
(q) Cash and Cash Equivalents
Cash and cash equivalents in the cash flow
statement comprise of cash at bank and on
hand and short-term investments with an
original maturity of three months or less.
(r) Excise Duty
Excise duty is accounted for at the point of
manufacture of goods and accordingly, is
considered for valuation of stocks as on the
reporting date.
(s) Shares Issue Expenses
Shares issue expenses are adjusted against
Securities Premium Account.
(t) Provisions
A provision is recognized when the Group has
a present obligation as a result of past event
and it is probable that an outflow of resources
will be required to settle the obligation, in
respect of which a reliable estimate can be
made. Provisions made in terms of Accounting
Standard 29 are not discounted to its present
value and are determined based on the best
estimate required to settle the obligation, at the
reporting date. These are reviewed at each
reporting date and adjusted to reflect the
current management estimates.
(u) Contingent Liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will
be confirmed by the occurrence or non-
occurrence of one or more uncertain future
events beyond the control of the Group or a
present obligation that is not recognized
because it is not probable that an outflow of
resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Group does not
recognize a contingent liability but discloses
its existence in the financial statements.
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

NOTES TO FINANCIAL STATEMENTS

for the year ended 30 June 2012

(b) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs10 per share. Each holder of
equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amounts. The distribution to equity shareholders will be in proportion to the amount paid up or credited as
paid up.

(c) Terms of redemption of Preference Shares

The Non-Convertible Redeemable Preference Shares (NCRPS) issued during the year carries dividend @
7.00% per annum.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

NCRPS of 1st Series shall be redeemable at par in three equal installments in the 9th, 10th, and 11th year
from the date of allotment (3rd January, 2012) with a right vested to the board of directors to redeem
earlier, subject to the consent of the subscribers. However, no redemption will take place before 30 June
2014.

NCRPS of 2nd Series shall be redeemable at par in one single lot after the expiry of 7th year from the date
of allotment (18th June, 2012) with a right vested to the board of directors to redeem earlier, subject to the
consent of the subscribers.

Dividend shall accrue annually to the holders of the NCRPS and shall accordingly be paid on each
anniversary of allotment of NCRPS or on premature redemption of NCRPS as aforesaid. However, the
Board reserve the right to pay the dividend earlier with the consent of the subscribers but subject to the
availability of profit. In case of loss or inadequacy of profit, the right of holders of NCRPS to receive the
Dividend shall expire.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

a) Term loan from a body corporate is repayble on 8th August 2014 and carries interest @ 12.50% p.a. The
aforesaid loan is secured against pleade of part of shares held as Investments

b) Fixed Deposits from related parties / others carry interest of 11.75% p.a. and are repayable after two years
from the respective date of deposits.
The loans from banks has been repaid during the year.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

Cash Credit from banks are secured by hypothecation of entire current assets and also by a second
charge on the immovable assets of the Company.

Cash Credit borrowings are repayable on demand and carry interest at base rate of the bank plus 5.00%.p.a.

77
78
# Includes assets held in joint ownership with others - Gross Block Rs 12.58 lacs (30 June 2011 : Rs 12.58 lacs) and Net Block Rs 5.68
lacs (30 June 2011 : Rs 6.33 lacs).
GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

Although, there is carried forward unabsorbed depreciation and business losses as on the reporting date, yet in
view of the future profitability projections, the Company is virtually certain that there would be sufficient taxable
income in future, to realise the aforesaid deferred tax asset.

79
 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

# Minimum Alternative Tax (MAT) Credit Entitlement of Rs 295.31 lacs (30 June 2011 : Rs 295.31 lacs), being
available as tax credit for set off in future years as per the Income Tax Act, 1961, is carried forward for future
adjustments based on future profitability projections.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

* Deposit receipts for Rs 19.06 lacs (30 June 2011 : Rs 305.21 lacs) pledged with a Bank as margin money
against loan of Rs_1,100 lacs (Refer Note 7)
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GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

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GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

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GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

25. Gratuity - Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed at least five years or more
of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act,
1972. The Company has got an approved gratuity fund which has taken an insurance policy with Life Insurance
Corporation of India (LIC) to cover the gratuity liabilities.

The following tables summarize the components of net benefit expense recognized in the statement of profit and
loss and the funded status and amounts recognized in the balance sheet for the plan.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

Defined Contribution Plan :

The Company has recognised the following amount as an expense and included under, “Contribution to Provident
& Other Funds”.

Based on past return on assets of the Provident Fund Trust and statutory obligation of the Trust towards its
members, the management does not expect any material deficit in fund position and hence no provision has been
considered necessary in terms of accounting policy as stated in para "n" of Note No. 2 above.

26. Leases

Operating lease

Certain office premises, godowns, cane purchasing centre etc. are held on operating lease. The lease term is
ranging upto 3 years and are renewable for further period either mutually or at the option of the Company. There
is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. There
are no subleases. The leases are cancellable.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

27 During the year, the Company has paid Rs 963.48 lacs towards differential cane price for the sugar season
2007-08 in terms of the order of the Hon'ble Supreme Court dated 17 January 2012, which has been
shown as "Exceptional Item" in the statement of profit & loss.

28 The networth of the company is negative as the accumulated loss of the company as at the reporting date
stands at Rs 3993.03 lacs (30 June 2011 Rs 1712.30 lacs) as against the shareholder's fund of Rs 2622.62
lacs (30 June 2011 Rs 615.86 lacs). The company during the year has made a reference to the Hon'ble
Board of Industrial and Financial Reconstruction (BIFR) pursuant to the provision of Sick Industrial
Companies (Special Provisions) Act, 1985. To bridge the gap of accumulated losses and shareholders
fund and to make the networth positive, the promoters of the company, subsequent to the balance sheet
date has infused Rs 1500 lacs towards subscription of share capital of the company. Further , based on
future profitability projections, the management is hopeful that the Company would be in a position to
generate positive cash flows and profits in the near future. Considering the above, these financial statements
have been drawn-up on going concern assumption which is appropriate in the opinion of management.

29 The company has only one business segment i.e. sugar and thus no further disclosures are required in
accordance with Accounting Standard 17 issued by Institute of Chartered Accountants of India.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

31 Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for
(net of advances) Rs 69.77 lacs (30 June 2011 : Rs 29.99 lacs).

(b) For commitments relating to lease arrangements, please refer note 26.

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 GOBIND SUGAR MILLS LIMITED & ITS SUBSIDIARY COMPANY

35. Previous year figures

Previous years figure have been rearranged where necessary to compare to the current classification
under Revised Schedule VI stated in Note 2.1 (a) above.

As per our report of even date

For S.R.Batliboi & Co. For and on behalf of the board of directors
Firm registration number: 301003E
Chartered Accountants

per Bhaswar Sarkar H. S. Bawa R. S. Raghavan

Partner (Chairman) (Managing Director)
Membership no.: 55596
Place : Kolkata B. N. Jha A. Wadhawan
Date : 28th August 2012 (Chief Financial Officer) (Company Secretary)

89
 GOBIND SUGAR MILLS LIMITED
Regd. Office : 9/1, R.N. Mukherjee Road, Kolkata - 700 001

ATTENDANCE SLIP
Only Shareholders or the proxies will be allowed to attend the meeting

D.P. ID LF No.

Client ID No. of Shares held

I hereby record my presence at the 60th Annual General Meeting of the Company being held at 9/1, R.N. Mukherjee
Road,, Kolkata - 700 001 on Friday 28th December 2012 at 3.00 pm.

Name of the Shareholder ________________________________________________________________

(In capital letters)
Name of the Proxy _____________________________________________________________________
(in capital letters)

_______________________
Signature


GOBIND SUGAR MILLS LIMITED
Regd. Office : 9/1, R.N. Mukherjee Road, Kolkata - 700 001

PROXY
Only Shareholders or the proxies will be allowed to attend the meeting

D.P. ID LF No.

Client ID No. of Shares held

I/We ________________________________________________________________________________ of
_____________________________________________________________________________________
being a member / members of GOBIND SUGAR MILLS LIMITED hereby appoint Shri / Smt.
____________________________________ of ______________________________ on failing him / her
Shri / Smt. ____________________________ of ______________________________or failing him / her
Shri / Smt. ___________________________ of _____________________________ as my / our proxy to
attend and vote for me / us on my / our behalf at the 60th Annual General Meeting of the Company to be held on
Friday 28th December 2012 at 3.00 pm. at the Registered Office of the Company at 9/1, R.N. Mukherjee Road,
Kolkata - 700 001 and / or at any adjournments thereof.

Affix
Signed this _______ day of ______2011 (Signature of the shareholder)
Revenue
Stamp

Note : The Proxy Form signed across revenue stamp should reach the Registered Office of the Company at
leaast 48 hours before the scheduled time of Meeting.
90