Dear Stakeholders,
 
 My warm greetings to all of you. It is my proud privilege to present
 the 18th Annual Report of the Company.
 
 The year started on a high note with the world economy fighting the
 last leg of war with recession in Europe, but domestically the common
 man took a hit. The year 2010-11 saw the Indian economy battle with out
 of control, upward spiraling food prices and uncontrollable inflation.
 
 Indian industries fought a long drawn battle between falling profits
 and consumer benefits. In this dismal scenario, where on one end World
 recession kept global sentiments low and on the other end domestic
 inflation impacted household spending, edible oils brought much needed
 relief to the Indian Agri basket by maintaining level prices.
 
 Oilseeds and edible oils are two of the most sensitive essential
 commodities in India with it being 4th largest edible oil economy in
 the world and this sector occupies an important position in our
 economy.
 
 Despite its importance in the Indian household consumption story, the
 domestic edible oil sector continues to be highly fragmented, with top
 10 players taking only 35% of the market. As reliance on imports and
 integration benefits across the value chain come to fore, the industry
 will witness continued consolidation.
 
 Indian edible oil demand is set to rise from 16mn MT now to 30mn by
 2015. More importantly, with increasing quality consciousness, rising
 incomes and consolidation, branded sales are likely to grow at ~25-30%
 over the next few years.
 
 Building Capacities to sustain growth
 
 Your Company has always believed in going the extra mile and being
 ahead of the growth curve. We gauged that only increasing existing
 capacities will not ensure growth of the Company. There is a huge unmet
 demand which is an opportunity in disguise.
 
 Gearing to meet the growing demand, your Company has increased its
 production capacity from 1914000 MT in FY10 to 2394000 MT in FY11.
 Better efficiencies have come into the production process with the
 commencement of our ultra modern chillex plant at Sidhpur with a
 capacity of 500 TPD, enhancement of castor seed processing capacity by
 800 TPD, Castor solvent extraction capacity by 400 TPD and Castor
 refining capacity by 200 TPD.
 
 During the year, we have successfully run our new Haldia plant on
 optimum capacity utilization. This has led to enhanced access and
 logistics efficiency in markets of the North East, West Bengal, Bihar,
 Jharkhand, Orissa and Uttar Pradesh. The refinery with 1100 TPD
 capacity has given boost to the top line and bottom line of Company.
 
 Today, the Company has two port based plants at Gandhidham and Haldia,
 along with mother plant at Sidhpur and one other plant at Surat. The
 strategic location of Company''s plants provides logistic advantages in
 procurement of raw material as well as in distribution of its products.
 
 Focus on Branded sales
 
 Now, the Indian housewife, both in the urban and rural sector is
 becoming increasingly conscious about quality and purity, thus
 demanding branded edible oil products. This has resulted in a shift of
 the Indian consumer from loose and adulterated edible oils to branded
 offerings. Branded segment of the Indian edible oil market is expected
 to register 25-30% growth per annum in the next few years. Gokul
 Refoils'' two flagship brands Gokul and Zaika performed exceptionally
 well in the current year. Today, nearly 50% of the Company''s edible oil
 sales come from the branded segment and retail sales are also
 significantly increasing in the proportion.
 
 The Company has developed a two pronged strategy to address both the
 urban and rural markets. As an initiative to increase its branded sales
 proportion and visibility of products in the market, the Company has
 placed its products in Big Bazaar, Spencer, Star Bazaar & National
 Handloom etc. The Company is reaching out to the discerning housewife
 and family shopper through these retail chains where its products are
 well stocked and displayed in front shelves.
 
 The semi urban and rural markets are under-penetrated, scattered and
 operate through mom and pop stores. Thus distribution and reach are
 critical to ensure products reach the consumers. Deepening our retail
 penetration we increased our C&F/depots to 50 in FY11 from 41 in FY10.
 A small but a substantial step towards dedicated retails sales was
 undertaken by widening our distribution network to more than 1000
 distributors this year from around 400 in FY10.  Giving a major push to
 its retailing efforts, the Company doubled its retailers from approx 1,
 00,000 in FY10 to approx 2, 00,000 in FY11.
 
 Regular advertisements in print and electronic media at local and
 national level, sponsoring local events to create brand visibility,
 outdoor hoardings and radio advertisement are just some of the
 activities undertaken by the Company in a dedicated effort towards
 brand building.
 
 Gokul Refoils performance in 2010-11
 
 We emerged successful and stronger after an eventful 2010.  The Company
 has just started reaping benefits of expanded capacities and increased
 branded sales. In 2010-11 Gokul Refoils and Solvent Ltd attained two
 landmarks viz. Its highest ever record turnover of Rs. 4,534 crores
 (PY: Rs. 2,816 crores) and highest net profit of Rs. 61 crores (PY: Rs.
 42 crores). This landmark performance is a result of better penetration
 in new and existing markets with new capacities; higher consumer demand
 for FMCG products due to growing affluence and higher disposable income
 in the hands of consumers linked to better quality of life and best in
 class manufacturing performance at all our plants. Record performance
 is also attributed to volume growth and better margin in branded
 products.
 
 Building the Leadership Pipeline - Employee Initiatives
 
 Human Resource is our key focus as it will lead to a competitive edge
 in the future with five core values as Customer Orientation,
 Excellence, Integrity, leadership and Innovation. All Gokul''s employees
 are assigned a level under a particular band depending upon their role,
 impact and criticality of job and the contribution to the Company''s
 strategy. Employee Capital and leadership development will be a key
 focus in the years to come.
 
 Your Board and Management have always practiced the highest principles
 of Corporate Governance in an endeavor to create value for
 stakeholders. I would like to reiterate that your Company would
 continue to uphold these traditions and act in the best interest of all
 stakeholders.
 
 Our Management team is visionary and proactive. It has continuously
 provided a clear vision and strong leadership and has been the backbone
 of the Company''s leadership profile.
 
 The way ahead
 
 Sustainable, profitable growth is the only way ahead. To fulfill our
 vision, we have a mission, to become one of India''s leading FMCG
 companies having reach to every kitchen of Indian family, pan India
 presence and operations across the globe, to develop most preferred and
 admired edible oil brands and to create best value propositions to
 investors, vendor & society.
 
 With this mission, dedicated thoughts and efforts, both financial and
 emotional, is being put into scouting for a location to set up two new
 refineries. The Company is planning to set up a port based 1,000 TPD
 refinery on the East coast of South India and another port based 1,000
 TPD refinery along with 600 TPD solvent plant at Maharashtra.
 
 It is imperative to create top of mind recall amongst your consumers
 such that the product and the brand become synonymous. The Company
 looks beyond immediate challenges to build up the business with long
 term goals based on the Company''s intrinsic strength in terms of
 productions capacity, technical capabilities, products quality and
 distribution strength.
 
 We aim to bring down our cost of inputs and raw materials.  Continuous
 cost leadership in the back end and profit margin expansion in the
 front end by building brands will drive growth and profitability in the
 Company.
 
 I am grateful to the Board of Directors for their unwavering support
 and guidance. I also take this opportunity to express my gratitude to
 all our Stakeholders, who have reposed trust in us and extended their
 constant support.
 
 With best regards, 
 
 Balvantsinh Rajput
 
 
 Chairman & Managing Director