Notes to Accounts of Gagan Gases Ltd.

Mar 31, 2024

(f ) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability.

(g) Income taxes

Income tax comprises current and deferred taxes. Income tax is recognized in the
Statement of Profit and Loss except when they relate to items that are recognized outside
profit or loss (whether in other comprehensive income or directly in equity), in which case tax
is also recognized outside profit or loss. Current income taxes are determined based on
respective taxable income of each taxable entity.

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carry-forwards and tax
credits. Such deferred tax assets and liabilities are computed separately for each taxable
entity. Deferred tax assets are recognized to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax
losses, depreciation carry-forwards and unused tax credits could be utilized.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates and
tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.

(h) Earnings per share

Basic earnings per share has been computed by dividing profit/loss for the year by the
weighted average number of shares outstanding during the year.

Partly paid up shares are included as fully paid equivalents according to the fraction paid
up. Diluted earnings per share has been computed using the weighted average number of
shares and dilute potential shares, except where the result would be anti-dilute.

(i) Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of raw materials,
components and consumables are ascertained on a moving weighted average/monthly
moving weighted average basis. Cost, including fixed and variable production overheads, is
allocated to work-in-progress and finished goods determined on a full absorption cost basis.
Net realizable value is the estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.

Q'') Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less
accumulated depreciation less accumulated impairment, if any.

Freehold land is measured at cost and is not depreciated.

Cost includes purchase price, taxes and duties, labour cost and direct overheads for self-
constructed assets and other direct costs incurred up to the date the asset is ready for its
intended use.

Interest cost incurred for constructed assets is capitalized up to the date the asset is ready for
its intended use, based on borrowings incurred specifically for financing the asset or the
weighted average rate of all other borrowings, if no specific borrowings have been incurred
for the asset.

Depreciation is provided on the Straight Line Method (SLM) over the estimated useful lives of
the assets considering the nature, estimated usage, operating conditions, past history of
replacement, anticipated technological changes, manufacturers warranties and
maintenance support. Taking into account these factors, the Company has decided to
apply the useful life for various categories of property, plant & equipment,

(k) Assets taken on lease

(i) Operating leases - where the Company is a lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership
of the leased item, are classified as operating leases. Accounting for lease are done on the
basis of IND AS 116.

(ii) Finance leases - where the company is a lessee N.A.

(l) Cash Flow Statement

Cash flows are reported using indirect method. The cash flows from operating, financing and
investing activities of the company are segregated based on the available information.

(m) Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short
term highly liquid investments with original maturities of three months or less.

(n) Segment reporting

The accounting policies adopted for segment reporting are in conformity with the
accounting policies adopted for the Company. The Company''s operating businesses are
organized and managed separately according to the nature of products and services
provided, with each segment representing a strategic business unit that offers different
products and serves different markets. The analysis of geographical segments is based on the
areas in which major operating divisions of the Company operate.

Further, inter-segment revenue have been accounted for based on the transaction price
agreed to between segments which is primarily market based. Unallocated items include
general corporate income and expense items, which are not allocated to any business
segment.

However, the company has no separate business and geographical segments to be
reported

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Mar 31, 2015

(i) The voting period begins on Saturday, September 26, 2015 from 10:00 a.m. and ends on Monday, September 28, 2015 at 5:00 p.m. During this period shareholders' of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date (record date) of Tuesday, September 22, 2015, may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter. (ii) The shareholders should log on to the e-voting website www.evotingindia.com. (iii) Click on Shareholders. (iv) Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,

c. Members holding shares in Physical Form should enter Folio Number registered with the Company. (v) Next enter the Image Verification as displayed and Click on Login.

(ii) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier voting of any company, then your existing password is to be used.

(iii) After entering these details appropriately, click on "SUBMIT" tab.

(iv) Members holding shares in physical form will then directly reach the Company selection screen. However, members holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

(v) For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this

(vi) Click on the EVSN for the relevant Gagan Gases Limited on which you choose to vote.

(vii) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

(viii) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.

(ix) After selecting the resolution you have decided to vote on, click on "SUBMIT". A confirmation box will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote, click on "CANCEL" and accordingly modify your vote.

(x) Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.

(xi) You can also take out print of the voting done by you by clicking on "Click here to print" option on the Voting page. (xvii) If Demat account holder has forgotten the same password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

(xii) Note for Non – Individual Shareholders and Custodians

- Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on to www.evotingindia.com and register themselves as Corporates.

- A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [e-mail].

- After receiving the login details a compliance user should be created using the admin login and password. The Compliance user would be able to link the account(s) for which they wish to vote on.

- The list of accounts should be mailed to [e-mail] and on approval of the accounts they would be able to cast their vote.

- A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

(xiii) In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions ("FAQs") and e- voting manual available at www.evotingindia.com, under help section or write an email to [e-mail].

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Mar 31, 2014

# HDFC bank loan is secured against Hypothecation of vehicle financed by the bank. The loan is repayable in 48 monthly instilments of Rs. 16331 /- inclusive of interest.

# Dealers deposits are in the nature of interest free business security deposit payable on termination of dealership.

1. CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities

1 Claims against the company not acknowledged as debt NIL NIL

2 Bank Guarantees

Rs.15 lacs bank guarantee issued by bank in favor of M/s. LPG 1500000 1500000 Infrastructure (India) Ltd. against fixed deposit of Rs.3.75 personally given by director of the company

3 Other money for which the company is contingently liable NIL NIL

Commitments

1 Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

2 Other commitments NIL NIL

2. Note : I. Prior period expenses Rs. 879616/- debited in lease rent account paid to MPAKVN on account of settlement of earlier years lease rent demand .

II. Prior period expenses Rs. 1909678/- debited in interest paid to MPAKVN on account of delayed payment of lease rent payable for earlier years as per settlement.

II. Power and Electricity include Rs. 4075/- relating to prior period.

Note : The entire assets and liabilities are not allocable between these two segments because of nature of business.

3. Previous year''s figures have been regrouped and rearranged wherever considered to make them comparable and in lines with the requirement of presentation. Figures are rounded to nearest rupees.

4. There are no transactions with SSI units, hence reporting for SSI units not required.

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Mar 31, 2013

CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities

1 Claims against the company not acknowledged as debt 0 5822707 DRT passed order dated 15/10/2012 in favor of Dena Bank for payment of Rs.58,22,707/- as interest for the period 1.4.2003 to 30.6.2010. This order of - DRT was set aside by the DRAT Allahabad vide order dated 19/12/2012.However settlement was arrived and bank agree to settle the claim against the company fora sum of Rs.2688341/-against its claim of Rs. 5822707/- the payment of Rs.2688317/- was made on 23/03/2013.

2 Bank Guarantees

Rs.15 lacs bank guarantee issued by bank in favor of M/s. LPG 1500000 750000

Infrastructure (India) Ltd. against fixed deposit of Rs.3.75 personally given by director of the company

3 Other money for which the company is contingently liable NIL NIL Commitments

1 Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

2 Other commitments NIL NIL

4. Previous year''s figures have been regrouped and rearranged wherever considered to make them comparable and in lines with the requirement of presentation. Figures are rounded to nearest rupees.

5. There are no transactions with SSI units, hence reporting for SSI units not required.

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Mar 31, 2012

NOTE A

1. HDFC bank loan is secured against Hypothecation of vehicle financed by the bank. The loan is repayable in 48 monthly installments of Rs. 16331/- inclusive of interest.

2. Dealers deposits are in the nature of interest free business security deposit payable on termination of dealership.

3. Loans and advances from related parties is interest free Inter corporate deposit.

NOTE B

CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities

1. Claims against the company not acknowledged as debt 5822707 5822707 Dena bank has filed claim of interest against the company before DRT Jabalpur on Sep.2010 for Rs. 58,22,707/- for the period 01.04.2003 to 30.06.2010. As reported earlier, the company has already informed the bank that there is no liability to pay interest in view of the decision of their higher authorities. The company is contesting the claim of the bank before competent authority.

2. Previous year's figures have been regrouped and rearranged wherever considered to make them comparable and in lines with the requirement of presentation. Figures are rounded to nearest rupees.

3. There are no transactions with SSI units, hence reporting for SSI units not required.

4. A Sum of Rs. 596770/- of Cylinder security deposit credited as income in earlier year had to be refunded during the year hence debited as exceptional item in Profit and Loss account below the line .

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Mar 31, 2010

1. Balances of Sundry debtors, creditors and advances are subject to confirmation & reconciliation.

2. Provisions: The company has made the following provisions during the year.

a) Provision of Rs. nil (10956) towards Fringe Benefit Tax Liability has been made.

b) Provision of Rs 93173 (199654) towards gratituity payable.

3. The Company has neither earned any foreign exchange nor incurred any expenditure in foreign currency.

4. Additional information required in respect of the provisions of paragraph 3,4 (c) and 5 (d) of part II of schedule VI to the Companies Act 1956.

A) Capacity & Production - LPG Bottling Plant

(as certified by the management)

i) Lie./regd. Capacity (p.a.) ii) Installed Capacity (p.a)

iii) Actual Production

5. Earning per share

After tax earning per share & diluted earning per share before prior year adjustment and deffered tax liability/assets during the year is Rs (0.009) as against Rs (0.06) of previous year.

The entire assets and liabilities are not allocable between these two segments because of nature of business.

6. Contingent liabilities not provided are as under:

a) Rs 50 lac (Rs 51 lacs) being bank guarantees issued by Bank in favour of Exxon Mobil Lubricants P Ltd from whom the company is purchasing material. These guarantees are secured against fixed deposit of Rs 6 lac of the company and remaining amount secured by collateral security belonging to director and related party of the directors..

b) Provision of Rs 3 836375/- as interest payable to bank was made in earlier years and was shown under the head current liabilities till 31.3.09. This amount is being written back and is credited to profit and loss account during the year as prior year adjustment. In the opinion of the management, the company has paid total settled liability of Rs 242.60 lacs during previous years and nothing is due for payment now. In respect of the interest the company has informed the bank that there is no liability to pay interest in view of the decision of the higher authorities of the bank. The company has therefore, written back the provision made in earlier years of interest payable to bank.

7. Previous years figures have been regrouped and rearranged wherever considered to make them comparable and in lines with the requirement of presentation. Figures are rounded to nearest rupees.

8. There are no transactions with SSI units, hence reporting for SSI units not required.