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Notes to Accounts of Bharat Agri Fert & Realty Ltd.

Mar 31, 2023

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liablities relate to income taxes levied by the same tax authority.

Considering the probability of availability of future taxable profits in the period in which tax losses expire, deferred tax assets have not been recognised in respect of tax credits carried forward by the Company.

Major Components of income tax expense for the years ended March 31, 2023 and March 31, 2022 are as follows:

Terms/rights attached to equity shares

The company has only one class of equity shares having par value of INR 1 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2023, the amount of per share final dividend recognised as distributions to equity shareholders was Nil (P.Y final dividend Nil)

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 will be in proportion to the number of equity shares held by the shareholders.

iv. The Company had equity shares having face value Rs.10 vide Extra ordinary meeting dated 28/02/2023, the equity shares having face value Rs.10 has subdivided to Re 1 per share.

v. Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL (previous period of five years ended March 31, 2022: NIL)

vi. None of the above shares are reserved for issue under options/contract/commitments for sale of shares or disinvestment.

vii. The Company does not have any holding company.

The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act wherein certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies Act 2013, the requirement to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve available to the Company.

Current and Non Current Borrowings

Terms and Conditions of Repayment and Details of Securities are as under :

1. The loan from Bank of Baroda is Repayable on demand. Term loan (BGECL 1 ) is having repayment period of 48 months with 12 months of moratoriam period (O/s Rs.161.11 Lacs), Term loan (BGECL 2) is having repayment period of 60 months with 24 months of moratoriam period (O/s Rs.150.00 Lacs). Said loans are availed for Fertiliser Division. 1. Rate of interest 9.25% 2. Repayment in equal installments of Rs.8.05 lacs to Rs.4.17 lacs.

2. Cash Credit loan is secured by hypothecation of stock of raw material, semi-finished goods and stores and spares, packing material, finished goods , receivables (both present and future).

3. Cash Credit loan & term loanis secured by equitable mortgage on factory Land(measuring 18.36 acre) and buildings situated at village Kharivali, Taluka-Wada, District-Palghar.

4. Cash Credit loan is secured by hypothecation of Plant and machinery and all other movable fixed Property, Plant and Equipment of the Company already in possession or to be in possession of the Company.

5. Overdraft facility from Saraswat Bank is secured by equitable mortgage on land measuring 2 acre and building (studio) situated at survey no.180/1, Village Kharivali, Taluka Wada, District Palghar. Said facility is availed for Resort Division. Term loan 1 (GECL) is having repayment period of 72 months with 24 month of moratoriam period. (O/s Rs.174.00 lacs) Rate of Interest - 11.45%. Term Loan - 3 is taken for expansion of resort is repayable in 66 months with moratoriam period of 12 months. (O/s Rs.72.01 lacs)

6. Overdraft facility from State Bank of India is secured by equitable mortgage on office premises situated at 301, Hubtown Solaris, N S Phadke Marg, Andheri East, Mumbai - 400069. Said facility is availed for Fertiliser Division.

7. Personal Guarantee of Shri.Yogendra D Patel and Smt. Anjni Y Patel, Promoter Director of the company are given against working capital facility for fertiliser Division. Personal Guarantee of Shri.Yogendra D Patel, Promoter Director of the company is given against working capital facility for Resort Division.

8. Vehicle loan is taken from HDFC Bank Ltd , Saraswat Co-op Bank Ltd and Mahindra Finance.(O/s Rs.148.37 lacs) Rate of interest -, Hypothecation of vehicles

9. Term loan - 2 from Saraswat Bank is taken for Project finance for construction of residential tower which is repayable in 57 months with moratoriam of 33 months O/s is Rs.564.45 lacs. Mortgage of land and building at Sector-5, S.No.112/2A, Majiwada, Thane.

10. Rate of Interest is in the range of 11.45% p.a. - 12.50% p.a (PY 9.25% p.a - 10.35% p.a)

Post Employement obligations Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

(iii) Defined contribution plans

The company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the period towards defined contribution plan is INR 4.86 Lakhs (March 31, 2022: INR 15.24 Lakhs)

(v) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and payables. Forthe year ended March 31, 2023. This assessment is undertaken each financial yearthrough examining the financial position of the related party and market in which the related party operates.

No operating segments have been agrregated to form the above reportable operating segment.

The Managing Director (MD) monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone financial statements. Also, the Company''s financing (including finance costs and finance income) and income taxes are managed on a Company basis (unallocable) and are not allocated to operating segments.

Adjustments and eliminations

Finance income and costs are not allocated to individual segments as the underlying instruments are managed on a group basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a group basis.

Capital expenditure consists of additions of property,plant and equipment and intangible assets.

B. Information about geographical areas Revenue from external customers

The Company is domiciled and have operations only in India. Hence, there is no geographical segment. Accordingly, no disclosure is required under Ind AS 108 "Operating Segment".

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The finance team oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

The Company''s activity exposes it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the company manages the risk.

(A) Credit risk

Credit risk is the risk that risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(a) Trade and other receivables

Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwardinglooking infor

A default on a financial asset is when the counterparty fails to make contractual payments of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

i. Provision for expected credit losses

The company follows ''simplified approach'' for recognition of loss allowance on Trade receivables.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

(b) Other Financial Assets

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

The carrying amount of cash and cash equivalents, loans, deposits with banks and financial institutions and other financial assets represents the maximum credit exposure.

(B) Liquidity risk

Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. In addition, the company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as commodity price risk.

(i) Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import payables.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The management is responsible for the monitoring of the Company'' interest rate position. Various variables are considered by the management in strucutring the Company''s borrowings to achieve a reasonable and competitive cost of funding.

However, during the periods presented in the financial statements, the Company has primarily borrowed funds under fixed interest rate arrangements with banks and financial institutions and therefore the Company is not significantly exposed to interest rate risk.

(iii) Inventory price risk

The company is exposed to the movement in price of principal finished product i.e Fertilizer. The main raw material i.e Rock Phosphate is imported from Egypt / Jordan and its price is variable depending upon exchange rate. Fertiliser being a seasonal as well as subsidized product; prices of fertilizer are monitered by government. Department of Fertilizer implemented "Direct Benefit Transferâ (DBT) system for eligibility of subsidy on sale of fertilizer through POS machines. Company monitors the fertilizer prices on daily basis and formulates the sales strategy to achieve maximum realisation.

For the purpose of the company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company includes within debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents and other bank balances.

1 Debt Equity Ratio increased as debt of the company has increased during the year, borrowed funds are for real estate division and expansion of resort division.

2 Debt service coverage ratio was negative due to increased operating expenses.

3 Return on equity, Return on capital emplyed and Net Profit ratio has been affected due to losses of the company. Fertiliser division capacity utilization is less than 10% and increased overhead expenses has affected the performance of resort division.

⁴ Trade payables Turnover ratio increased due to purchases incurred in construction division (PY- Nil).

5 Net capital turnover ratio increased due to increase in turnover and increase in inventory, decrease in current borrowings and trade receivables.

6 Returns on Mutual funds and dividend has improved the Return on investment ratio.

42. In the opinion of the Board, any of the assets other than Property, Plant and Equipment , Intangible assets and non-current investments do not have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

46. There is no pending registration of charges or satisfaction of charges with Registrar of Companies.

47. Previous year''s amounts are regrouped and reclassified to make them comparable with current year''s classification, wherever necessary.

Mar 31, 2018

1 Corporate Information

These statements comprise financial statements of Bharat Agri Fert Realty Limited (referred to as âthe Companyâ) (CIN: L24100MH1985PLC036547) for the year ended March 31, 2018. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its Equity shares are listed on Bombay Stock Exchange in India. The registered office of the company is located at 301, 3rd Floor, Hubtown Solaris, N S Phadke Marg, near Gokhale Bridge, Andheri (East), Mumbai - 400 069.

The Company is principally engaged in the business of construction and development of Residential and Commercial Complex and manufacture of fertilisers and operating Resort The financial statements were approved by the Board of Directors and authorised for issue on May 30, 2018.

Notes:

i. Property, Plant and Equipment given as collateral security against borrowings by the company

Refer to Note 36 for information on property, plant and equipment given as collateral security by the company.

ii. Contractual Obligations

Refer to Note 30 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

Changes in tax rate

The increase in education cess from 3% to 4% was substantively enacted on February 1, 2018 and will be effective from April 1, 2018. As a result, the relevant deferred tax balance have been remeasured. The impact of the change in tax rate has been recognised in tax expense in profit or loss.

Terms/rights attached to equity shares

The company has only one class of equity shares having par value of I NR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2018, the amount of per share final dividend recognised as distributions to equity shareholders was Nil (P.Y final dividend Nil)

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 will be in proportion to the number of equity shares held by the shareholders.

iv. Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL (previous period of five years ended march 31, 2017 : NIL)

v. None of the above shares are reserved for issue under options/contract/commitments for sale of shares or disinvestment.

Current Borrowings

Terms of Conditions of Repayment and Details of Securities are as under :

1. The loan is Repayable on demand.

2. Cash Credit loan is secured by hypothecation of stock of raw material, semi-finished goods and stores and spares, packing material, finished goods , receivables (both present and future).

3. Cash Credit loan is secured by equitable mortgage on factory Land(measuring 18.36 acre) and buildings situated at village Kharivali, Taluka-Wada, District-Palghar.

5. Cash Credit loan is secured by Personal guarantee of Shri Yogendra D. Patel (Promoter Director)and Anjni Y. Patel (Promoter Director)

6. Rate of Interest is 11.00% p.a. (March 31, 2017: 12.10%)

Post Employment obligations

Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The average duration of the defined benefit plan obligation at the end of the reporting period is 11.72 years (March 31, 2017: 12.89 years)

(iii) Defined contribution plans

*The amount of post employment benefits and long term employee benefits cannot be separately identified from the composit figure advised by the actuary/valuer.

(vi) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and payables. For the year ended March 31, 2018, the group has not recorded any impairment of receivables relating to amount owed by related parties (March 31, 2017: NIL). This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates.

2. SEGMENT REPORTING

A. For management purposes, the Company is organized into following three business units based on the risks and rates of returns of the products offered by these unit as per Ind AS 108 on âOperating Segment'' :

Construction

Fertilizers

Resort

No operating segments have been agrregated to form the above reportable operating segment.

The Managing Director (MD) monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone financial statements. Also, the Company''s financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not allocated to operating segments.

Transfer prices between operating segments are on an arm''s length basis in a manner similar to transactions with third parties.

Adjustments and eliminations

Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a group basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a group basis.

Capital expenditure consists of additions of property, plant and equipment and intangible assets.

B. Information about geographical areas Revenue from external customers

The Company is domiciled and have operations only in India. Hence, there is no geographical segment. Accordingly, no disclosure is required under Ind AS 108 âOperating Segmentâ.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values for loans, deposits and other non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

All assets and liabilities for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

There have been no transfers among Level 1, Level 2 and Level 3 during the period Measurement

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity shares included in level 3.

Iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis iv. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee(AC). Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the company''s quarterly reporting periods.

3. FINANCIAL RISK MANAGEMENT

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and dherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee and finance team oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

The Company''s activity exposes it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the company manages the risk.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(a) Trade and other receivables

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

i. Provision for expected credit losses

The company follows ''simplified approach'' for recognition of loss allowance on Trade receivables.

(b) Other Financial Assets

The carrying amount of cash and cash equivalents, loans, deposits with banks and financial institutions and other financial assets represents the maximum credit exposure. The maximum exposure to credit risk is I NR 2,390.63 Lakhs (March 31, 2017: INR 2,081.32 Lakhs, April 1, 2016: INR 2,217.65 Lakhs).

(B) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company consistently generated sufficient cash flows from operations to meet its financial obligations.Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. In addition, the company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements.

Contractual maturities of financial liabilities

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include principal cash flows.

C) Market risk

(i) Foreign currency risk

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The management is responsible for the monitoring of the Company'' interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable and competitive cost of funding.

(iii) Inventory price risk

The company is exposed to the movement in price of principal finished product i.e Fertilizer. The main raw material i.e Rock Phosphate is imported from Egypt and its price is variable depending upon exchange rate. Fertiliser being a seasonal as well as subsidized product; prices of fertilizer are monitered by government. During current financial year, Department of Fertilizer implemented âDirect Benefit Transferâ (DBT) system for eligibility of subsidy on sale of fertilizer through POS machines. Company monitors the fertilizer prices on daily basis and formulates the sales strategy to achieve maximum realisation.

4. CAPITAL MANAGEMENT

For the purpsoe of the company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

In order to achieve the objective of maximize shareholders value, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.

5. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT, 2006)

The details in respect of Enterprises covered/ registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence, the details of the principal amounts and interest, if any, payable to the suppliers as on March 31, 2018 have not been furnished.

6. STANDARDS ISSUED BUT NOT YET EFFECTIVE

Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 was issued in February 2016 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after April 1, 2018. The Company will adopt the new standard on the required effective date.

7. FIRST TIME ADOPTION OF IND AS

These are the company''s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

1. Ind AS optional exemptions

i. Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets covered by Ind AS 38 - Intangible Assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii. Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from Impairment of financial assets based on expected credit loss model.

The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016, the date of transition to Ind AS and as of March 31, 2017.

iii. Investments in associates

In separate financial statements, a first-time adopter that subsequently measures an investment in a associate at cost , may measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) in its separate opening Ind AS balance sheet. Selection of fair value or previous GAAP carrying amount for determining deemed cost can be done for each subsidiary, associate and joint venture. The company elects to carry its investments in associates at previous GAAP carrying amount as deemed cost.

iv. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Accordingly, the classification and measurement of financial assets have been done on the basis of the facts and circumstances that existed at the date of transition and end of comparative year.

B. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

vi. Impact of Ind AS adoption on the statements of cash flows for the year ended March 31, 2017

There are no material adjustments to the Statement of Cash flows as reported under the previous GAAP.

C. Notes to first-time adoption:

Note 1: Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

Note 2: Borrowings

Under the previous GAAP, interest free borrowings from related parties are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognised at fair value on initial recognition. Accordingly, the company has fair valued the interest free borrowings and the difference between the fair value and transaction value has been recognised in retained earnings on the date of transition.

Note 3: Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented as other expenses in the statement of profit and loss.

Note 4: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

Note 5: Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 6: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

Mar 31, 2016

1. Rights, preferences and restrictions attached to shares Equity Shares:

The Company has only one class of shares referred to as equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2016, the amount of per share final dividend recognized as distributions to equity shareholders was Nil ( P.Y. final dividend Rs. 1.50/-)

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 will be in proportion to the number of equity shares held by the shareholders.

Terms of Conditions of Repayment and Details of Securities are as under :

2. The loan is Repayable on demand.

3. Cash Credit loan is secured by hypothecation of stock of raw material, semi-finished goods and stores & spares, packing material, finished goods , receivables (both present and future)

4. Cash Credit loan is secured by equitable mortgage on factory Land(measuring 18.36 acre) and buildings situated at village Kharivali, Tal-Wada, Dist-Palghar.

5. Cash Credit loan is secured by hypothecation of Plant and machinery and all other movable fixed assets of the Company already in possession or to be in possession of the Company.

6. Cash Credit loan is secured by Personal guarantee of Shri Yogendra D. Patel (Promoter Director) and Anjni Y. Patel (Promoter Director)

7. Rate of Interest is 12.15% p.a. (P.Y. 13.00%)

8. The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31^st March, 2016 have not been furnished.

9. Contingent Liabilities:

The company do not have any pending litigation and continent liability as at 31st March,2016.

10. Commitments: Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs.22,21,098/- (P.Y.Rs. 34,10,000/-).

11. The Company has not accounted for Society''s Common Maintenance Charges Rs.1,15,04,340/- for the year ended 31^st March, 2016. as the matter is subjudice.

The Company has outstanding receivables on account of said Society Maintenance Charges Rs.1,14,83,512/-/- as at 31^st March, 2016.

The Company has filed civil suit at Thane Court in respect of recovery of these Society Maintenance Charges. Management of the Company is hopeful about positive outcome of the said civil suit. Accordingly no provision has been made in the books of Accounts.

12. The values of Current Assets and Loans & Advances and Deposits are stated at value which is the opinion of the Management of the Company is realizable in the ordinary course of the business, of the Company.

13. Retirement Benefits

14. Defined Benefit Plan: The Company has provided for Gratuity on the basis of Actuarial valuation. The Company does not have any fund for Gratuity Liability.

The following table summarized the net benefit / Expenses recognized in Statement of Profit &Loss and Balance Sheet.

15. The Company has two reportable primary business segments namely Construction and Fertilizer. Business segment has been considered as primary segment. Details of primary segment disclosure are as follows.

16. The Construction Segment includes construction and sale of residential and commercial units. The Fertilizer segment includes manufacturing and sale of Single Super Phosphate (SSP) in Powder and Granulated form

17. Entire consumption of stores & spares is indigenous for the financial year ended 31^st March, 2016 and previous financial year.

18. Previous year''s figures are regrouped and reclassified wherever necessary to make them comparables with current period''s classification.

Mar 31, 2015

OVERVIEW:

The Company is engaged in the business of construction and development of Residential & Commercial Complex and manufacture of Fertilisers.

1. The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2015 have not been furnished.

1. The Company does not expect any reimbursements in respect of claim against the Company not acknowledged as a debt.

2. It is not practicable to estimate the timing of cash flows, if any, in respect of matters claim against the Company not acknowledged as a debt.

ii) Commitments: Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs.34,10,000/- (P.Y.Rs.18,95,000/-). 30. The Company has accounted for Society's Common Maintenance Charges Rs.89,46,177/- (Previous Years Rs.28,10,148/-). The Company has outstanding receivables on account of said Society Maintenance Charges Rs. l,14,83,512/-(Previous Years Rs. 27,98,520/-)

The Company has filled civil suit at Thane Court in respect of recovery of these Society Maintenance Charges. Management of the Company is hopeful about positive outcome of the said civil suit. Accordingly no provision has been made in the books of Accounts.

2. The values of Current Assets and Loans & Advances and Deposits are stated value which is the opinion of the Management of the Company is realisable in the ordinary course of the business, of the Company.

3. Retirement Benefits

a) Defined Benefit Plan: The Company Provides for Gratuity on the basis of Actuarial valuation. The Company does not have any fund for Gratuity Liability. The following table summarized the net benefit / Expenses recognised in Statement of Profit & Loss and Balance Sheet.

4. Excise Duty has not been provided on Closing stock Inventory. This, however do not have any impact on profit of the Company.

5. Entire consumption of stores & spares is indigenous for the financial year ended 31st March 2015 and previous financial year.

6. Previous year's figures are regrouped and reclassified wherever necessary to make them comparables with current period's classification.

Mar 31, 2014

1.OVERVIEW:

The Company is engaged in the business of construction and development of Residential & Commercial Complex and manufacture of Fertilizers.

a. Rights, preferences and restrictions attached to shares Equity Shares:

The Company has only one class of shares referred to as equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2014, the amount of per share final dividend recognised as distributions to equity shareholders was Rs. 2.50/-per share( P.Y. final dividend Rs.2.50/-)

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 will be in proportion to the number of equity shares held by the shareholders.

As per records of the Company, including its register of shareholders/members and other declaration received from shareholders ,regarding beneficial interest,the above shareholding represents both legal and beneficial ownership of the above shareholding.

2.Terms of Conditions of Repayment and Details of Securities are as under:

1. The loan is Repayable on demand.

2. Cash Credit loan is secured by hypothecation of stock of raw material, semi-finished goods and finished goods , receivables (both present and future)

3. Cash Credit loan is secured by hypothecation of goods covered by bill supported by document to title of goods.

4. Cash Credit loan is secured by equitable mortgage on factory Land(measuring 18.36 acre) and buildings situated at village Kharivali, Tal-Wada, Dist-Thane.

5. Cash Credit loan is secured by hypothecation of Plant and machinery and all other movable fixed assets of the Company already in possession or to be in possession of the Company.

6. Cash Credit loan is secured by Personal guarantee of Shri Yogendra D. Patel (Promoter Director) and Anjni Y Patel (Promoter Director)

7. Rate of Interest is 13.00% p.a. (P.Y. 15.60%)

3. The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2014 have not been furnished.

4. Contingent Liabilities:

A. Letter of Credit issued outstanding as at 31st March 2014

Sn. Particulars As at 31st As at 31st March 2014 March 2013

1. LC opened with Bank of Baroda 10,60,43,735 Nil

B i) Claims against the Company not acknowledged as a debt:

1. Maharashta State Electricity Board 16,04,084 16,04,084

ii) Commitments: Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs.18,95,000/- (P.Y.Rs.5,88,500/-).

5. The values of Current Assets and Loans & Advances and Deposits are stated values which is the opinion of the Management of the Company are realizable in the ordinary course of the business, of the Company.

6. Retirement Benefits

a) Defined Benefit Plan: The Company Provides for Gratuity on the basis of Actuarial valuation.The Company does not have any fund for Gratuity Liability.

The following table summerised the net benefit Expenses recognised in Statement of Profit & Loss and Balance Sheet.

7. Excise Duty has not been provided on Closing stock Inventory. This, however do not have any impact on profit of the Company.

8. Entire consumption of Stores & Spares is indigenous for the current and previous financial years.

9. Previous year''s figures are regrouped and reclassified wherever necessary to make them comparables with current period''s classification.

Mar 31, 2013

OVERVIEW:

The Company is engaged in the business of construction and development of Residential & Commercial Complexes and manufacture of Fertilisers.

1. The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2013 have not been furnished

2. Contingent Liabilities:

i) Claims against the Company not acknowledged as a debt:

As at 31st March As at 31st March Sl No Particulars 2013 2012

1. Maharashta State 16,04,084 16,04,084 Electricity Board

ii) Commitments: Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs.5,88,500/- (P.Y.Rs.Nil).

3. The values of Current Assets and Loans & Advances and Deposits are stated values which is the opinion of the Management ofthe Company are realizable in the ordinary course ofthe business, ofthe Company.

4. Retirement Benefits

a) Defined Benefit Plan: The Company Provides for Gratuity on the basis of Actuarial valuation. The Company does not have any fund for Gratuity Liability.

The following table summerised the net benefit / Expenses recognised in Profit & Loss A/c and Balance Sheet.

5. Excise Duty has not been provided on Closing stock Inventory. This, however do not have any impact on profit of the Company.

6. Director''s Remuneration aggregating to Rs.20,38,476/- provided in the books of accounts, which is payable to the Chairman & Managing Director and the Joint managing Director is in excess ofthe limit specified under section 198 read with Schedule XIII ofthe Companies Act, 1956.The above remuneration has been already approved by Remuneration Committee. Said provision is subject to approval of the Shareholder in ensuing Annual General Meetings.

7. Previous year''s figures are regrouped and reclassified wherever necessary to make them comparables with current period''s classification.

Mar 31, 2012

1. The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2012 have not been furnished.

2. Contingent Liabilities:

i) Claims against the Company not acknowledged as a debt:

(Amt. in Rupees)

Sn. Particulars 2011-2012 2010-2011

1. Maharashta State Electricity Board 16.04,084 16.04.084

ii) Commitments: Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs.Nil (P.Y.Rs.16,59,000/-).

3. The values of Current Assets and Loans & Advances and Deposits are stated values which is the opinion of the Management of the Company are realizable in the ordinary course of the business, of the Company.

4. During the previous year the Company did not import any raw material, stores & spares.

Accordingly the Company has not incurred any expenditure in foreign currency for the said purpose.

5. The Company has converted land situated at Thane into stock in trade, up to 31 Dec. 2010 The proportionate sales proceeds relating to such conversion were accounted for in Capital Receipt Reserve. The Company was legally advised that the said receipts should be credited to the Profit and Loss Account. The Company has accordingly changed the method of accounting from 01/01/2011.

6. The amount of Capital Receipt Reserve for the year 2008-09 and 2009-10 amounting to Rs. 6.47 Crores, is credited to the Profit & Loss as prior period income in the financial year 2010-2011.

7. Excise Duty has not been provided on Closing stock Inventory. This, however do not have any impact on profit of the Company.

8. The Revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

Mar 31, 2011

OVERVIEW:

The Company is engaged in the business of construction and development of Residential & Commercial Complexes and manufacture of Fertilisers.

A) The details in respect of Enterprises covered/registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2011 have not been furnished.

B) Contingent Liabilities:

i) Claims against the Company not acknowledged as a debt:

(Amt. Rs. In lacs)

Sr. Particulars 2010-2011 2009-2010 No 1 Maharashtra State Electricity Board 16.04 16.04

C) The values of Current Assets and Loans & Advances and Deposits are stated values which is the opinion of the Management of the Company are realizable in the ordinary course of the business, of the Company.

ii) The Company is operating in India hence there is no reportable geographic/secondary segment. Accordingly no disclosure is required under AS-17

E) Disclosure of Related Party: a. List of Related Parties:

Subsidiary Companies None Associate Concerns 1. Yogi Investments Private Limited 2. Vijal Shipping Private Limited 3. Wada Agro Chemicals Private Limited 4. Wada Bottling Industries Private Limited 5. Patel Combi-Therm (India) Private Limited 6. Chavi Impex Private Limited 7. Wada Alums and Acids Private Limited 8. My Shop Key Management Shri.Y.D.Patel .-Chairman & Managing Director

Personnel Relatives of Key Smt. AnjniY. Patel, Jt. Mg. Director Management Personnel Miss. Chandni Y. Patel, Director Shri.Shailendra D. Patel, CEO (Fertiliser Division) Shri. ViialY.Patel.CEO (Construction Division)

7. During the previous year the Company did not import any raw material and stores & spares and other expenses. Accordingly the Company has not incurred any expenditure in foreign currency forsaid purpose.

I) The Company has converted land situated at Thane into stock in trade. The proportionate sales proceeds relating to such conversion were accounted for in Capital Receipt Reserve. The Company has now been legally advised that the said receipts should be credited to the Profit and Loss Account. The Company has accordingly changed the method of accounting from 01/01/2011.

J) The amount of Capital Receipt Reserve for the year 2008-09 and 2009-10 amounting to Rs. 6.47 Crores, is credited to the Profit & Loss as prior period income.

K) Due to the change in the accounting policy as mentioned in points "I" & "J", the sales for the year ended 31 st March 2011, are not comparable with previous year.

L) Estimated amount of contracts on capital accounts remaining to be executed and not provided for is Rs. 16.59 Lacs (P.Y.Rs.11.18Lacs).

M)The figures of the previous year have been re-grouped and rearranged wherever necessary so as to make them comparable with those of the current financial year.

Mar 31, 2010

A) The details in respect of Enterprises registered under Micro, Small and Medium

Enterprises Development Act, 2006 (MSMED Act) are not available with the Company. Hence the details of the principal amounts and interest, if any, payable to the suppliers as on 31st March 2010 have not been furnished.

B) Contingent Liabilities:

i) Claims against the Company not acknowledged as a debt: (Amt. Rs. In lacs)

Sr. No Particulars 2009-2010 2008-2009

1 MSEB Claim 16.04 16.04

ii) Estimated amount of contracts remaining to be executed on capital account and not provided forRs.11.18lacs(P.Y.Rs.Nil)

C) The values cf Current Assets and loans & Advances and deposits are stated at realizable in ordinary course of the business, as stated in balance sheet as per the opinion of the Management of the Company. 34

D) Disclosure of Related Party: a. List of Related Parties:

Subsidiary Companies None

Associate Concerns 1. Yogi Investments Pvt. Ltd

2. Vijal Shipping Pvt Ltd.

3. WadaAgro Chemicals Pvt. Ltd.

4. Wada Bottling Industries Pvt. Ltd.

5. Patel Combi-Therm (India) Pvt. Ltd.

6. Chavi Impex Pvt. Ltd.

7. Wada Alums and Acids Pvt Ltd.

Key Management Shri.Y.D.Patel .-Managing Director

Personnel

Relatives of Key Smt. Anjni Y. Patel, Jt. Mg. Director

Management Personnel Miss. Chandni Y Patel, Director

-In view of substantial brought forward losses, the deferred tax asset has not been recognized in view of virtual uncertainty of profit in the immediate future.

- During the previous year, initial recognition of deferred tax liability amounting to Rs. 58, 07,521/- has been added to balance in Profit and Loss account.

E) The Company has written off goodwill amounting to Rs. Nil (RY. Rs. 1,56,97,409/-) as per AS- 10.Accounting for Fixed Assets as said goodwill had been resulted on amalgamation of manufacturing division of Wada Alums and Acids Private Limited with Bharat Fertilizers Limited and no consideration has been received for the same.

F) Fertiliser Division : Disclosure of additional information pursuant of the provisions of paragraph 3,4C and 4D of part II Schedule VI to the Companies Act, 1956, to the extent applicable.

G) The company has converted land into stock in trade. The proportionate sale proceeds relating to such conversion is accounted for in the capital reserve. This accounting treatment is based on expert opinion obtained by the Company.

H) The figures of the previous year have been re-grouped and rearranged wherever necessary so as to make them comparable with those of the current financial year.

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