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Notes to Accounts of Excel Crop Care Ltd.

Mar 31, 2018

IA. company information

Excel Crop Care Limited(the “Company”) is a public limited company domiciled in India. Its share prices are listed on two stock exchanges in India. The registered office of the Company is located at 184-87, Swami Vivekanand Road, Jogeshwari (W), Mumbai 400102. The Company is engaged in the business of agro chemicals and manufactures technical grade pesticides and formulations. The Company also manufactures and markets other agri inputs like soil enrichers, bio-pesticides, plant growth regulators and soil and plant nutrition products. The Company has presence in domestic and international markets.

IB. basis of preparation and measurement

These financial statements are the separate financial statement of the Company (also called standalone financial statements) prepared in accordance with Indian Accounting Standards (“Ind AS”) notified, by the Ministry of Corporate Affairs in consultation with the National Advisory Committee on Accounting Standards, under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Act. The financial statements were approved by the Company’s board of directors on 25th May, 2018.

These financial statements for the year ended 31 March, 2018 are the first financial statements the Company has prepared under Ind AS. For all periods upto and including the year ended 31 March, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended 31 March, 2017 and the opening Balance Sheet as at 1 April, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company’s Balance Sheet, Statement of Profit and Loss and Statement of Cash Flows are provided in note 40.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the ‘date of transition to Ind AS’. All assets and liabilities have been classified as current or non current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non current classification of assets and liabilities.

1 c. functional and presentation currency

These financial statements are presented in Indian rupees, which is the functional currency of the Company. All financial information presented in Indian rupees has been rounded to the nearest lakhs unless otherwise stated.

1D. use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialise.

Estimates and assumptions are required in particular for:

- Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may be capitalized

Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers’ warranties and maintenance support. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalized.

- Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the postemployment benefit obligations.

- Assessment of lease transactions

Management assesses the contractual terms of the lease agreements to evaluate whether it is an operating lease or finance lease.

- Recognition of deferred tax assets

A deferred tax asset is recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. The management assumes that taxable profits will be available while recognising deferred tax assets.

- Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure included in other provisions. Provisions for obligations relating to employees primarily include provisions for compensated absences. The uncertainty associated with the measurement of these provisions is very low, as the expected costs can be reliably determined.

Note-2 Assets classified as held for sale

As at 1 April, 2016, the management committed to a plan to sell their entire investment of the Company’s Associates Kutch Crop Services Limited, Excel Genetics Limited and Aimco Pesticides Limited and the Company’s wholly owned subsidiary ECCL Investments and Finance Limited. Accordingly, these investments were classified as assets held for sale.

Since the investments were treated as assets held for sale, they were measured at the lower of their carrying amount and fair value less costs to sell. The Company was able to sell these investments within the 12 month period.

B Measurement of fair values

i. Fair value hierarchy

The non-recurring fair value measurement for the unquoted investments held for sale has been categorized as a level 3 fair value based on the inputs to the valuation technique used. The non-recurring fair value measurement for the quoted investment held for sale was categorized as a level 1 fair value.

ii. Valuation technique and significant unobservable inputs

The following table shows the valuation technique used in measuring the fair value of the assets held for sale (classified as level 3) as well as the significant unobservable inputs.

b) Terms/rights attached to Equity shares

The Company has only one class of equity shares having par value of Rs.5 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.

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.

d) During the year ended 31 March 2017, the Shroff Family, the erstwhile promoters, sold and transferred their entire 24.72% shareholding in the Company to Sumitomo Chemical Company, Limited, Japan. Accordingly, the Shroff Family, ceased to be the Promoters of the Company. Sumitomo Chemical Company, Limited, Japan has become the Company’s Promoter and Sumitomo Chemical India Private Limited, a part of the Promoter Group. Their aggregate shareholding in the Company is 64.97%. Accordingly, the Company has become a subsidiary of Sumitomo Chemical Company, Limited, Japan.

e) There are no shares issued for consideration other than cash during the period of five years immediately preceding the reporting date.

f) Shares held by holding company and their subsidiaries

Proposed dividend

The Board of Directors at its meeting held on 25 May, 2018 have recommended a payment of final dividend of Rs.8.75 (Rupees Eight and Paise Seventy Five only) per equity shares of face value of Rs.5 each for the financial year ended 31 March, 2018. The same amounts to Rs.1,160.94 lacs including dividend distribution tax of Rs.197.95 lacs.

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

General Reserve:

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Retained Earnings:

Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.

Note:

Foreign currency term loan carries interest @ LIBOR 150 bps (8.15% p.a. on fully hedged basis). The loan is secured by mortgage of a plot of land and Plant and Machinery and Equipments situated at Bhavnagar.

The secured borrowings from banks carries interest @ 9.50% and are secured by way of hypothecation of all tangible movable assets, both present and future, including stock of raw materials, finished goods, work-in-process, stores and trade receivables.

Terms and conditions of the above financial liabilities

Trade Payables are non-interest bearing and are normally settled on 30 to 180 days terms For terms and conditions with related parties (refer note 39)

For explanations on the Company’s credit risk management processes (refer note 37B)

* The Government of India introduced the Goods and Services Tax (GST) with effect from 1 July, 2017 and consequently revenue from operations for the year ended 31 March, 2018 is net of GST. However, revenue for the year ended 31 March, 2017 presented is inclusive of excise duty. Accordingly, the figures for the year ended 31 March, 2018 are not comparable with the figures for the year ended 31 March, 2017, to that extent. The following additional information is being provided to facilitate such understanding:

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 liabilities relate to income taxes levied by the same tax authority.

Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

As on 31 March, 2018, the tax liability with respect to the dividend proposed is Rs.197.95 Lacs (31 March, 2017 : Rs. Nil, April 1, 2016 : Rs.280.06 Lacs).

Given that the Company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognized.

The Company does not have any tax losses carried forward as at 31 March, 2018.

Note-3 Earnings per share (Eps)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

* There has been no other transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these standalone financial statements.

Note-4 Employee benefits

The Company contributes to the following post-employment plans in India.

(A) defined Contribution plans:

Provident Fund is a defined contribution scheme established under a State Plan.

Superannuation Fund is a defined contribution scheme. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Current service cost included under the head Contribution to Provident Fund and other funds in Note 28 ‘Employee Benefits Expense’.

(B) Defined Benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service then instead of 15 days, he/she will get gratuity on retirement at 22 days of last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The Company established the “Excel Crop Care Limited Employees Group Gratuity Assurance Scheme” (the “Gratuity Fund”) to fund the Gratuity Plan. Trustees administer the contributions made to the Gratuity Fund. Amounts contributed to the fund are invested with an Insurance company in the form of a qualifying insurance policy.

Note-5 Leases

Assets taken on operating lease

a. The Company has taken certain assets such as vehicles, office space and other premises on operating lease. The lease typically run for a period of three to five years. There are no restrictions imposed by lease agreements/arrangements. There are sub-leases entered into by the Company in respect of the office premises taken on lease.

b. Amounts recognized in Statement of Profit or Loss

c. Future minimum lease payments for non-cancellable operating lease as at 31 March is as follows:

Note-6A Category-wise Classification and measurement of Financial instruments

A. Accounting classification and fair values hierarchy

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels are presented below. It does not include the fair value information for financial assets and financial liabilities, if their carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs;

(i) Financial instruments measured at fair value:

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

— The fair value of loans from banks and other financial liabilities, as well as other non current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

— The fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31 March 2018 was assessed to be insignificant.

(ii) Financial instruments measured at amortised cost:

The carrying amount of financial assets and financial liability measured at amortized cost in the financial statements are a reasonable approximation of their fair value since the Company does not anticipate that the carrying amounts would be significantly different from the value that would eventually be received or settled.

Note-6B Financial risk management - objectives and policies

i. Risk management framework

The Company’s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’) oversee the management of these financial risks. The Risk Management Policy of the Company states the Company’s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company’s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s financial performance.

The audit committee 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 following disclosures summarize the Company’s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

ii. credit risk

Credit risk is the risk of financial loss to the Company, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed 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 establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

At 31 March, 2018, the Company’s most significant customer accounted for Rs.1,202.17 Lacs of the trade and other receivables carrying amount (31 March, 2017 : Rs. Nil).

Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows:

Expected credit loss assessment for customers as at 1 April, 2016, 31 March, 2017 and 31 March, 2018

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The movement in the allowance for impairment in respect of trade and other receivables during the year was as follows:

The impairment loss at March 31, 2018 related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Investments

The Company limits its exposure to credit risk by investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short-term, medium-term and long-term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk. Thus, the Company’s exposure to market risk is a function of revenue generating and operating activities in foreign currency.

Currency risk

The Company is exposed to currency risk on account of its operations with other countries. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognized underlying assets/ liabilities and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

The foreign currency exposure to the Company is mainly on account of its foreign currency trade receivables and trade payables. The Company has a policy of taking forward covers against such trade receivables and trade payables on a timely basis, with the objective of minimizing its foreign currency exposure.

Sensitivity analysis

A reasonably possible strengthening/(weakening) of the Indian Rupee against US dollars at 31 March, 2018 would have affected the measurement of financial instruments denominated in US dollars and Euro and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises primarily from borrowings. The interest rate profile of the Company’s interest-bearing financial instruments is as follows:

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Variable-rate instruments

The Company does not have any variable-rate borrowings.

Note-7 Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern.

The Company has adequate cash and bank balances and minimum borrowings. The Company monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements.

Note 8 Related Party disclosures

A Names of the related parties where control exists irrespective of whether transactions have occurred or not:

(1) Holding Company

Sumitomo Chemical Company, Limited, Japan ( From 07.10.2016)

(2) Subsidiary Companies:

Excel Crop Care (Australia) Pty Limited ECCL Investments and Finance Limited (Up to 28.04.2016)

Excel Crop Care (Europe) N V Excel Brasil Agronegocious Ltda *

Excel Crop Care (Africa) Limited

* On 30 March, 2011, the Company established Excel Brasil Agronegocious Ltda, a wholly owned subsidiary company, in Brazil.

The Company has not made any investment in the shares of the said subsidiary company till 31 March, 2017.

(3) Post Employment Benefit Plans entity

Excel Crop Care Gratuity Trust Excel Crop Care Superannuation Trust

B Names of other related parties with whom transactions have taken place during the year:

(1) Fellow Subsidiaries:

Sumitomo Chemical India Private Limited (From 07.10.2016) Sumitomo Chemical Vietnam Co., Ltd (Vietnam) (From 07.10.2016)

Sumitomo Chemical Do Brazil Representacoes Ltda (Brazil) (From 07.10.2016)

(2) Associate Companies:

Aimco Pesticides Limited (Upto 02.05.2016) Kutch Crop Services Limited (Upto 28.04.2016)

Excel Genetics Limited (Upto 28.04.2016)

(3) Key Management Personnel:

i) Executive Directors

Ashwin C Shroff (Chairman) (Upto 07.10.2016) Jagdish R Naik (Director) (Upto 07.10.2016)

Dipesh K Shroff (Managing Director) (Upto 06.10.2016) and Chetan Shah (Managing Director) (From 07.10.2016)

Non Executive Director (From 07.10.2016) Ninad D Gupte (Joint Managing Director) (From 26.10.2016)

Hrishit A Shroff (Executive Director) (Upto 07.10.2016)

ii) Non Executive Directors

Dipesh K Shroff (From 07.10.2016) Dr. Mukul G Asher

Mr. Seiji Ota (From 07.10.2016) Ms. Preeti Mehta (From 07.10.2016)

Mr. B V Bhargava

iii) Chief Financial Officer Anil Nawal

iv) Company Secretary Pravin D Desai

(4) Relatives of Key Management Personnel:

Mrs. Minoti Ninad Gupte (Wife of Ninad Gupte) Mrs. Usha A Shroff (Wife of Ashwin Shroff)

Mr. Kantisen Chaturbhuj Shroff (Father of Dipesh Shroff) Mr. Ravi A Shroff (Son of Ashwin Shroff)

Mrs. Preeti Dipesh Shroff (Wife of Dipesh Shroff) Mrs. Anshul Bhatia (Daughter of Ashwin Shroff)

Mr. Chaitanya Dipesh Shroff (Son of Dipesh Shroff) Mrs. Tejal Jagdish Naik (Wife of Jagdish Naik)

Mrs. Ami Abhay Saraiya (Sister of Dipesh Shroff)

(5) Enterprises controlled by key management personnel and their relatives:

Agrocel Industries Private Limited Excel Industries Limited (up to 07.10.2016)

Dipkanti Investments & Financing Private Limited Kamaljyot Investments Limited (up to 07.10.2016)

Pritami Investments Private Limited Shroffs Family Charitable Trust

Shrodip Investments Private Limited Shrujan Trust (Up to 07.10.2016)

Vibrant Greentech Private Limited (Formerly Vibrant Greentech India Limited) Shrujan Creations (Up to 07.10.2016)

Anshul Specialty Molecules Private Limited (up to 07.10.2016) Utkarsh Global Holdings Private Limited (up to 07.10.2016)

C C Shroff Research Institute (up to 07.10.2016) Shree Vivekanad Research & Training Institute (up to 07.10.2016)

C C Shroff Self Help Centre (up to 07.10.2016)

Notes:

1 This includes short-term employee benefits. Key Managerial personnel who are under the employment of the Company are entitled to post-employment benefits and other long-term employee benefits as per Ind AS 19 - ‘Employee Benefits’ in the standalone financial statements. As these employee benefits are lumpsum amounts provided on the basis of actuarial valuation, the same is not disclosed above.

2 Terms and conditions of transactions with related parties:

The sales and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured. There are no guarantees provided or received from any related party receivables or payables. For the year ended 31 March, 2018, the Company has not recorded any impairment of receivables related to amounts owed by related party (31 March, 2017: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note-9 Transition to Ind As:

First time adoption of Ind As

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1 April, 2017, with the transition date on 1 April, 2016. These standalone financial statements for the year ended 31 March, 2018 are the first standalone financial statements that the Company has prepared under Ind AS. For all periods upto and including the year ended 31 March, 2017, the Company prepared its standalone financial statements in accordance with the accounting standards notified under the Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP’).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared Standalone financial statements which comply with Ind AS for year ended 31 March, 2018, together with the comparative information as at and for the year ended 31 March, 2017 and the opening Ind AS Balance Sheet as at 1 April 2016, the date of transition to Ind AS.

In preparing these Ind AS standalone financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the standalone financial statements as at the transition date under Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its standalone financial statements prepared under previous GAAP including the Balance Sheet as at 1 April, 2016 and the standalone financial statements as at and for the year ended 31 March, 2017.

A. Optional Exemptions from retrospective application

Ind AS 101 permits first-time adopters certain exemptions from retrospective application of certain requirements under Ind AS. The Company has elected to apply the following optional exemptions from retrospective application:

(i) Deemed cost for property, plant and equipment and intangible assets

The Company has elected to measure all its property, plant and equipment and intangible assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

(ii) Investments in subsidiaries

The Company has elected to measure its investments in subsidiaries at the previous GAAP carrying amount as it deemed cost on the date fo transition to Ind AS.

B. Mandatory Exceptions from retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101:

(i) Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

(ii) Classification and measurement of financial assets

The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

C. Transition to Ind As reconciliations

The following reconciliations provides the explanations & quantification of the differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

(i) Reconciliation of equity as at 1 April, 2016.

(ii) A. Reconciliation of equity as at 31 March, 2017.

B. Reconciliation of statement of profit and loss for the year ended 31 March, 2017.

(iii) Adjustments to statement of cash flows for the year ended 31 March, 2017.

Previous GAAP figures have been reclassified / regrouped wherever necessary to confirm with standalone financial statements prepared under Ind AS.

For the purposes of reporting as set out in Note 1, we have transitioned our basis of accounting from previous GAAP to Ind AS. The accounting policies setout in note 1 have been applied in preparing the standalone financial statements for the year ended 31 March, 2018, the comparative information presented in these standalone financial statements for the year ended 31 March, 2017 and in the preparation of an opening Ind AS balance sheet at 1 April, 2016 (the “transition date”).

In preparing our opening Ind AS balance sheet, we have adjusted amounts reported in standalone financial statements prepared in accordance with previous GAAP An explanation of how the transition from previous GAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under previous GAAP except where required by Ind AS.

Notes to the reconciliation:

1 Remeasurement benefit of net defined benefit plans

Under Ind AS, all actuarial gains and losses are recognized in Other Comprehensive Income. Under previous GAAP these gains and losses were recognized in the Statement of Profit and Loss. However, this has no impact on the total comprehensive income and total equity as on 1 April, 2016 or as on 31 March, 2017.

2 Proposed dividend

Under Previous GAAP dividend proposed by the board of directors after the reporting date but before the date of approval of financial statements was considered to be an adjusting event and accordingly recognized (along with related dividend distribution tax) as liability at the reporting date. Under Ind AS, such dividend is recognized in the reporting period in which the same is approved by the members in a general meeting. Accordingly, provision for proposed dividend and dividend distribution tax recognized under previous GAAP has been reversed against retained earnings.

3 Security Deposit

Under previous GAAP the security deposits for leases are accounted at an undiscounted value. Under Ind AS, the security deposits for leases have been recognized at discounted value and the difference between undiscounted and discounted value has been recognized as ‘Deferred lease rent’ which has been amortised over respective lease term as rent expense under ‘other expenses’. The discounted value of the security deposits is increased over the period of lease term by recognising the notional interest income under ‘other income’.

The impact arising from the change is summarized as follows:

4 Lease Rentals

Under Previous GAAP lease payments are required to be recognized on a straight-line basis over the term of the lease. Under Ind AS, lease payments which are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases, are required to be recognized as an expense in line with its contractual term. Accordingly, the provision for scheduled increases on operating lease recognized under Previous GAAP has been written back under Ind AS.

The impact arising from the change is summarized as follows:

5 Fair valuation of investments:

In the financial statements prepared under previous GAAP, non current investments of the Company were measured at cost less provision for diminution (other than temporary) and current investments of the Company were measured at lower of cost or fair value. Under Ind AS, the Company has recognized such Investments as follows:

— Government Securities - At Amortised Cost

— Equity shares of Subsidiaries and Associate companies - At Cost

— Mutual Funds - At FVTRPL

— Quoted Equity shares - At FVTPL through an irrevocable election

— Unquoted Equity shares - At FVTPL through an irrevocable election

Ind AS required the above investments to be recognized at fair value (except investments in equity shares of subsidiary and associate companies) The impact arising from the change is summarized as follows:

6 Foreign Exchange Forward contracts:

Under previous GAAP premium / discount arising at the inception of the forward exchange contracts to hedge foreign currency risks were amortised as expense or income over the life of the contract. Exchange differences on such forward exchange contracts were recognized in the Statement of Profit and Loss. Under Ind AS, all derivative contracts are measured at fair value through profit and loss. Derivative assets and derivative liabilities are presented on gross basis. The resulting gains or losses as on the date of transition are included in retained earnings.

7 Excise duty:

Under previous GAAP revenue from sale of goods was presented net of the excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of Excise duty. Excise duty is presented in the Statement of Profit and Loss as an expense. This has resulted in an increase in the revenue from operations and expenses for the year ended 31 March, 2017. The total comprehensive income for the year ended and equity as at 31 March, 2017 has remained unchanged.

The impact arising from the change is summarized as follows:

8 Revenue from sale of goods:

Under previous GAAP revenue was recognized net of trade discounts, Rebates, sales taxes and excise duties. Under Ind AS, revenue is recognized at the fair value of the consideration received or receivable, after deduction of any trade discounts, volume discounts and any taxes or duties collected on behalf of the government such as sales tax and value added tax except excise duty. Cash and other discount given to customers which have been reclassified from “Cash and Other discount” within Other Expenses under previous GAAP and netted from revenue under Ind AS.

The impact arising from the change is summarized as follows:

9 Deferred tax adjustments :

Previous 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 previous GAAP

The impact arising from the change is summarized as follows:

Note: The Company’s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.

Note-10

The disclosures regarding details of specified bank notes held and transacted during 8 November, 2016 to 30 December, 2016 has not been made since the requirement does not pertain to financial year ended 31 March, 2018. Corresponding amounts as appearing in the audited standalone financial statements for the year ended 31 March, 2017 have been disclosed as under:

Note-11 standards issued but not yet effective

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115 ‘Revenue from Contracts with Customers’ (New Revenue Standard), which replaces Ind AS 11 ‘Construction Contracts’ and Ind AS 18 ‘Revenue’. The New Revenue Standard establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. Significant additional disclosures in relation to revenue are also prescribed. The New Revenue Standard also provides two broad alternative transition options - Retrospective Method and Cumulative Effect Method - with certain practical expedients available under the Retrospective Method. The Company continues to evaluate the impact of the New Revenue Standard on the present and future arrangements and shall determine the appropriate transition option once the said evaluation has been completed.

Also Appendix B to Ind AS 21, foreign currency transactions and advance consideration was notified along with the same notification which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The Company has evaluated the effect of these on the financial statements and the impact is not expected to be material.

The amendments will come into force from 1 April, 2018.

Note-12 subsequent Events

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.


Mar 31, 2017

1. Related Party Disclosures as required by Accounting Standard (AS)-18 “Related Party Disclosures”, notified by Companies, (Accounting Standards) Rules, 2006 (as amended) are given below:

(A) Relationships:

Related parties where control exists:

(1) Holding Company:

Sumitomo Chemical Company, Limited, Japan (from 07.10.2016)

(2) Subsidiary Companies:

Excel Crop Care (Australia) Pty. Limited Excel Crop Care (Europe) N V

ECCL Investments and Finance Limited (up to 28.04.2016)

Excel Crop Care (Africa) Limited

Excel Brasil Agronegocious Ltda*

* On 30th March, 2011, the Company established Excel Brasil Agronegocious Ltda, a wholly owned subsidiary company, in Brazil.

The company has not made any investment in the shares of the said company till 31st March, 2017

Related parties with whom transactions have taken place during the year:

(3) Fellow Subsidiary:

Sumitomo India Private Limited (from 07.10.2016)

(4) Joint Venture:

Multichem Industries (a partnership firm) (up to 31.03.2016)

(5) Associate Companies:

Aimco Pesticides Limited ( up to 02.05.2016)

Kutch Crop Services Limited ( up to 27.04.2016)

Excel Genetics Limited (up to 27.04.2016)

(6) Other Enterprises over which key management personnel and their relatives have significant influence:

Agrocel Industries Private Limited

Anshul Specialty Molecules Limited (up to 07.10.2016)

C C Shroff Research Institute (up to 07.10.2016)

C C Shroff Self Help Centre (up to 07.10.2016)

Dipkanti Investments & Financing Private Limited (up to 07.10.2016)

Excel Industries Limited (up to 07.10.2016)

Hyderabad Chemical Private Limited (Formerly Hyderabad Chemicals Limited) (up to 07.10.16)

Kamaljyot Investments Limited (up to 07.10.2016)

Pritami Investments Private Limited (up to 07.10.2016)

Shroffs Family Charitable Trust Shrujan Trust (up to 07.10.2016)

Shrujan Creations

Shrodip Investments Private Limited (up to 07.10.2016)

TML Industries Limited (up to 07.10.2016)

Transchem Agritech Limited (up to 07.10.2016)

Transpek Industry Limited (up to 07.10.2016)

Transpek Industry (Europe) Limited (up to 07.10.2016)

Utkarsh Global Holdings Private Limited (up to 07.10.2016)

Shree Vivekanad Research & Training Institute (up to 07.10.2016)

Vibrant Greentech Private Limited (Formerly Vibrant Greentech India Limited ) (up to 07.10.2016)

(7) Key Management Personnel:

Mr. Ashwin C. Shroff (Chairman) (up to 07.10.2016)

Mr. Dipesh K. Shroff (Managing Director) (up to 07.10.2016)

Mr Hrishit A. Shroff, (Executive Director) (up to 07.10.2016)

Mr. Jagdish R. Naik (Director) (up to 07.10.2016)

Mr. Chetan Shah (Managing Director) (from 07.10.2016)

Mr. Ninad D. Gupte (Joint Managing Director) (from 26.10.2016)

(Mr Ashwin C. Shroff and Mr Hrishit A. Shroff are relatives)

(8) Relatives of Key Management Personnel:

Mrs. Usha A. Shroff (Wife of Mr. Ashwin C. Shroff and mother of Mr Hrishit A. Shroff) Mr. Ravi A. Shroff (Son of Mr. Ashwin C. Shroff and brother of Mr Hrishit A. Shroff)

Mrs. Anshul Bhatia (Daughter of Mr. Ashwin C. Shroff and sister of Mr Hrishit A. Shroff) Mr. Kantisen C. Shroff (Father of Mr. Dipesh K. Shroff)

Mrs. Preeti D. Shroff (Wife of Mr. Dipesh K. Shroff)

Mr. Chaitanya D. Shroff (Son of Mr. Dipesh K. Shroff)

Mrs. Ami A. Saraiya (Sister of Mr. Dipesh K. Shroff)

Mrs. Minoti Ninad Gupte (Wife of Mr. Ninad D. Gupte)

Mrs. Tejal Jagdish Naik (Wife of Mr. Jagdish R. Naik)

2. Operating Leases:

Office premises are obtained on non-cancellable/cancellable operating leases for various tenors. None of the operating leases are renewable. There are no restrictions imposed by lease agreements/arrangements. There are subleases entered into by the Company in respect of the office premises taken on lease.

3. Previous year figures have been regrouped/reclassified, where necessary, to conform to this year''s classification.


Mar 31, 2016

1. Previous year figures have been regrouped/reclassified, where necessary, to conform to this year''s classification.


Mar 31, 2015

1. CORPORATE INFORMATION

Excel Crop Care Limited (the Company) is a public company domiciled in India. Its shares are listed on two stock exchanges in India. The Company is engaged in the business of agro chemicals and manufactures technical grade pesticides and formulations. The Company also manufactures and markets other agri inputs like soil enrichers, bio-pesticides, plant growth regulators and soil and plant nutrition products. The Company has presence in both domestic and international markets.

2. BASIS OF PREPARATION

The fnancial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these fnancial statements to comply in all material respects with the accounting standards notifed under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The fnancial statements have been prepared on accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of fnancial statements are consistent with those of previous year.

(Rs. in lacs) (Rs. in lacs)

3. Contingent Liabilities and Commitments:

(i) Contingent Liabilities:

(a) Disputed Excise duty liability 1.63 1.63

(b) Disputed Service-tax liability 35.47 35.47

(c) Disputed Income-tax liability 4,85.42 7,35.13

(d) Disputed Sales-tax liability 36.96 1,37.66

(e) Guarantees given by the Company''s banker on behalf of the Company to third parties 1,09.99 1,16.17

(f) Liability in respect of employee(s) disputes Amount Amount

unascertainable unascer tainable

(g) Claims against the Company not acknowledged as debts 46.00 3,34.23

(h) Company''s share in the disputed lease rent payable to collector of Bhavnagar by

M/s Multichem Industries * 52.06 __

* The claims comprise:

The Holding Company, holds 50% interest in M/s Multichem Industries, a jointly controlled entity which is holding leasehold land admeasuring 2500 sq. meters in Bhavnagar. The Collector of Bhavnagar vide his letters dated 15.01.2015 & 17.01.2015 has demanded Rs. 1,04.12 lacs towards differential lease rent for a period 22.11.2009 to 31.07.2015 in respect of land granted on lease to Firm on 23.11.1979 for a period of 30 years which lease expired on 22.11.2009.

M/s Multichem Industries does not expect these claims to succeed and has disputed it by submitting its responses to the collector vide letter dated 04.04.2015. Accordingly, no provision for the said liability has been recognized in the fnancial statements.

(ii) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 2,79.58 2,92.13

The Company''s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its fnancial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the fnancial statements.

4. Segment Information:

Primary Business Segment: The Company has only one business segment viz. Agri Inputs. Secondary Business Segment: Information in respect of geographical segments is as shown below:

5. Previous year fgures have been regrouped/reclassifed, where necessary, to conform to this year''s classifcation.


Mar 31, 2014

1. Contingent Liabilities and Commitments:

(i) Contingent Liabilities:

(a) Disputed Excise duty liability 1.63 1.63

(b) Disputed Service-tax liability 35.47 37.21

(c) Disputed Income-tax liability 7,35.13 6,27.17

(d) Disputed Sales-tax liability 1,37.66 36.95

(e) Guarantees given by the Company''s banker on behalf of the Company to third parties 1,16.17 19.66

(f) Liability in respect of employee(s) disputes Amount Amount unascer unascer tainable tainable (g) Claims against the Company not acknowledged asdebts 3,34.23 3,60.53 (ii) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 2,92.13 63.78

2. Guarantee/commitments in respect of Excel Genetics Limited

(a) As on 31st March, 2014, Excel Genetics Limited, the Company''s Subsidiary Company, has an accumulated losses of Rs. 3,11.14 lacs against the paid-up Share Capital of Rs. 3,00.00 lacs. The Company has given a commitment for providing full financial and operational support to Excel Genetics Limited to enable it to operate and settle its liabilities and obligations as they become due and continue as a going concern during the year ending 31.03.2015 and for the foreseeable future.

(b) Corporate Guarantee given to a bank for overdraft facility of Rs. 2,00.00 lacs granted to Excel Genetics Limited [Outstanding balance as on March 31, 2014: Rs. 1,74.22 lacs (Previous Year: Rs. 1,15.57 lacs)].

3. Details of Employee benefits:

I. Defined benefit Plan – Gratuity (Funded):

The Company has a Defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service then instead of 15 days, he/she will get gratuity on retirement at 22 days of last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with an Insurance company in the form of a qualifying insurance policy.

Notes:

(i) The estimates of future salary increases, considered in actuarial valuation, takes account of infation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

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

4. Related Party Disclosures as required by Accounting Standard (AS)-18 "Related Party Disclosures", notifed by Companies, (Accounting Standards) Rules, 2006 (as amended) are given below:

(A) Relationships:

Related parties where control exists:

(1) Subsidiary Companies:

Excel Crop Care (Australia) Pty. Limited

Excel Crop Care (Europe) N.V.

ECCL Investments and Finance Limited

Excel Genetics Limited

Excel Crop Care (Africa) Limited

Excel Brasil Agronegocious Ltda*

* On 30th March, 2011, the Company established Excel Brasil Agronegocious Ltda, a wholly owned subsidiary company, in Brazil. The Company has not made any investment in the shares of the said subsidiary company till 31st March, 2014.

Related parties with whom transactions have taken place during the year:

(2) Joint Venture:

Multichem Industries (a partnership firm)

(3) Associate Companies: Aimco Pesticides Limited Kutch Crop Services Limited

(4) Enterprises over which key management personnel and their relatives have significant infuence: Agrocel Industries Limited

Anshul Specialty Molecules Limited

C.C. Shroff Research Institute

C.C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Divakar Techno Specialities & Chemicals Limited (Formerly Divakar Chemicals Limited)

Excel Industries Limited

Hyderabad Chemicals Limited

Hyderabad Chemical Products Limited

Kamaljyot Investments Limited

Pritami Investments Private Limited

Shroff Foundation Trust

Shroff Family Charitable Trust

Shrujan Creations

Shrujan Trust

Shrodip Investments Private Limited

TML Industries Limited

Transpek Industry Limited

Transpek Silox Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Global Holdings Private Limited (Formerly Utkarsh Chemicals Private Limited)

Shree Vivekanand Research & Training Institute

Vivekanand Rural Development Institute

(5) Key Management Personnel: Mr. Ashwin C. Shroff (Chairman)

Mr. Dipesh K. Shroff (Managing Director)

Mr. Ninad D. Gupte (Joint Managing Director)

Mr. Prakash K. Shroff (Executive Director upto 31.08.2013)

Mr. Jagdish R. Naik (Director)

(5) Relatives of Key Management Personnel:

Mrs. Usha A. Shroff (Wife of Mr. Ashwin C. Shroff) Mr. Ravi A. Shroff (Son of Mr. Ashwin C. Shroff) Mr. Hrishit A. Shroff (Son of Mr. Ashwin C. Shroff) Mrs. Anshul Bhatia (Daughter of Mr. Ashwin C. Shroff) Mr. Kantisen C. Shroff (Father of Mr. Dipesh K. Shroff) Mrs. Preeti Dipesh Shroff (Wife of Mr. Dipesh K. Shroff) Mr. Chaitanya D. Shroff (Son of Mr. Dipesh K. Shroff) Mrs. Ami A. Saraiya (Sister of Mr. Dipesh K. Shroff) Mrs. Priti P. Shroff (Wife of Mr. Prakash K. Shroff) Mr. Kunal P. Shroff (Son of Mr. Prakash K. Shroff) Mr. Harish K. Shroff (Brother of Mr. Prakash K. Shroff) Mrs. Tarla K. Rajda (Sister of Mr. Prakash K. Shroff) Mrs. Jayabala R. Naik (Mother of Mr. Jagdish R. Naik) Dr. Sujan R. Naik (Brother of Mr. Jagdish R. Naik) Mrs. Tejal Jagdish Naik (Wife of Mr. Jagdish R. Naik) Mrs. Minoti Ninad Gupte (Wife of Mr. Ninad D. Gupte)

6. Segment Information:

Primary Business Segment: The Company has only one business segment viz. Agri Inputs. Secondary Business Segment: Information in respect of geographical segments is as shown below:

Note: Segment Revenue in the above segments considered for disclosure are as follows :

(a) Revenue from Domestic Segment includes sales to customers located within India.

(b) Revenue from Export Segment includes sales to customers located outside India and income on account of Export Incentives.

7. Operating Leases:

Office premises and other assets are obtained on non-cancellable/ cancellable operating leases for various tenors. None of the operating leases are renewable. There are no restrictions imposed by lease agreements/arrangements. There are subleases entered into by the Company in respect of the office premises taken on lease.


Mar 31, 2013

1. CORPORATE INFORMATION

Excel Crop Care 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 two stock exchanges in India. The Company is engaged in the business of agro chemicals and manufactures technical grade pesticides and formulations. The Company also manufactures and markets other agri inputs like soil enrichers, bio-pesticides, plant growth regulators and soil and plant nutrition products. The Company has presence in both domestic and international markets.

2. BASIS OF PREPARATION

The fnancial statements have been prepared to comply in all material respects with the Notifed Accounting Standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The fnancial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. The Hon’ble Supreme Court, by its ad-interim order dated 13th May, 2011, has banned production, use and sale of Endosulfan. By its subsequent orders, the Hon’ble Supreme Court permitted export of existing stocks of Endosulfan. The Company has accordingly suspended production and domestic sale of this product. The Company carries stocks of Endosulfan, its raw materials and other related materials. In the preceding fnancial years, the Company made provision aggregating Rs. 16,30.00 lacs for these inventory items as a matter of prudence. In the opinion of the Company, this provision is suffcient and reasonable. Accordingly, the provision is being carried forward.

4. Related Party Disclosures as required by Accounting Standard (AS)-18 "Related Party Disclosures", notifed by Companies, (Accounting Standards) Rules, 2006 (as amended) are given below:

(A) Relationships:

(1) Subsidiary Companies:

Excel Crop Care (Australia) Pty. Limited

Excel Crop Care (Europe) N.V.

ECCL Investments and Finance Limited

Excel Genetics Limited

Excel Crop Care (Africa) Limited

Excel Brasil Agronegocious Ltda*

* On 30th March, 2011, the Company established Excel Brasil Agronegocious Ltda, a wholly owned subsidiary company, in Brazil. The Company has not made any investment in the shares of the said subsidiary company till 31st March, 2013.

(2) Joint Venture:

Multichem Industries (a partnership frm)

(3) Associate Companies: Aimco Pesticides Limited Kutch Crop Services Limited

Excel Bio Resources Limited (upto 29.09.2011)

(4) Enterprises over which key management personnel and their relatives have signifcant infuence: Agrocel Industries Limited

Anshul Specialty Molecules Limited

C. C. Shroff Research Institute

C. C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Divakar Chemicals Limited

Excel Industries Limited

Hyderabad Chemicals Limited

Hyderabad Chemical Products Limited

Pritami Investments Private Limited

Shroff Family Charitable Trust

Shrujan Creations

Shrujan Trust

Shrodip Investments Private Limited

TML Industries Limited

Transpek Industry Limited

Transpek Silox Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Chemicals Private Limited

Shree Vivekanand Research & Training Institute

(5) Key Management Personnel: Mr. Ashwin C. Shroff (Chairman)

Mr. Dipesh K. Shroff (Managing Director)

Mr. Ninad D. Gupte (Joint Managing Director from 01.08.2012)

Mr. Prakash K. Shroff (Executive Director)

Mr. Jagdish R. Naik (Director)

(6) Relatives of Key Management Personnel: Mrs. Usha A. Shroff (Wife of Mr. Ashwin C. Shroff) Mr. Ravi A. Shroff (Son of Mr. Ashwin C. Shroff) Mr. Hrishit A. Shroff (Son of Mr. Ashwin C. Shroff) Mrs. Anshul Bhatia (Daughter of Mr. Ashwin C. Shroff) Mr. Kantisen C. Shroff (Father of Mr. Dipesh K. Shroff) Mrs. Preeti Dipesh Shroff (Wife of Mr. Dipesh K. Shroff) Mr. Chaitanya D. Shroff (Son of Mr. Dipesh K. Shroff) Mrs. Ami Abhay Saraiya (Sister of Mr. Dipesh K. Shroff) Mrs. Priti P. Shroff (Wife of Mr. Prakash K. Shroff)

Mr. Kunal P. Shroff (Son of Mr. Prakash K. Shroff) Mr. Harish K. Shroff (Brother of Mr. Prakash K. Shroff) Mrs. Tarla K. Rajda (Sister of Mr. Prakash K. Shroff) Mrs Jayabala R. Naik (Mother of Mr. Jagdish R. Naik) Mr. Jayesh R. Naik (Brother of Mr. Jagdish R. Naik) Dr. Sujan R. Naik (Brother of Mr. Jagdish R. Naik) Mrs. Tejal Jagdish Naik (Wife of Mr. Jagdish R. Naik)

7. Segment Information:

Primary Business Segment: The Company has only one business segment viz. Agro Inputs. Secondary Business Segment: Information in respect of geographical segments is as shown below:

8. Operating Leases:

Offce premises and other assets are obtained on operating leases for various tenors. None of the operating leases are renewable. There are no restrictions imposed by lease agreements/arrangements. There are subleases entered into by the Company in respect of the offce premises taken on lease.

9. Previous year fgures have been regrouped/reclassifed, where necessary, to confrm to this year’s classifcation.


Mar 31, 2012

1. Corporate information:

Excel Crop Care 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 two stock exchanges in India. The Company is engaged in the business of agro chemicals and manufactures technical grade pesticides and formulations. The Company also manufactures and markets other agri inputs like soil enrichers, bio-pesticides, plant growth regulators and soil and plant nutrition products. The Company has presence in both domestic and international markets.

2. Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the Notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year, except for the change in accounting policy explained below.

3. Contingent Liabilities and Commitments.

(i) Contingent Liabilities:

(a) Disputed Excise-duty liability 4.40 4.40 (b) Disputed Service-tax liability 54.34 36.05

(c) Disputed Income-tax liability 2,03.01 1,20.79

(d) Disputed Sales-tax liability 20.23 73.18

(e) Guarantees given by the Company's banker on behalf of the Company to third parties 2,92.25 51.15

(f) Corporate Guarantee given to a bank for overdraft facility of Rs. 2,00 lacs granted to a subsidiary company 67.90 -

(g) Liability in respect of employee(s) disputes Amount Amount

unascertainable unascertainable

(h) Claims against the Company not acknowledged as debts 43.56 44.23

(i) Penalty levied by Competition Commission of India for a violation of section 3 of the Competition Act, 2002 63,90.00 -

(ii) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 1,62.55 9,06.27

4. Related Party Disclosures as required by Accounting Standard (AS)-18 “Related Party Disclosures”, notified by Companies, (Accounting Standards) Rules, 2006 (as amended) are given below:

(A) Relationships:

(1) Subsidiary Companies:

Excel Crop Care (Australia) Pty Limited Excel Crop Care (Europe) N.V.

ECCL Investments and Finance Limited Excel Genetics Limited Excel Crop Care (Africa) Limited Excel Brasil Agronegocious Ltda*

* On 30th March, 2011, the Company established Excel Brasil Agronegocious Ltda, a wholly owned subsidiary company, in Brazil. The Company has not made any investment in the shares of the said subsidiary company till 31st March, 2012.

(2) Joint Venture:

Multichem Industries (a partnership firm)

(3) Associate Companies:

Aimco Pesticides Limited

Kutch Crop Services Limited

Excel Bio Resources Limited (upto September 29, 2011)

(4) Enterprises over which key management personnel and their relatives have significant influence:

Agrocel Industries Limited

Anshul Specialty Molecules Limited

C.C. Shroff Research Institute

C.C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Divakar Chemicals Limited

Excel Industries Limited

Hyderabad Chemical Limited

Hyderabad Chemical Products Limited

Pritami Investments Private Limited

Shrujan Creations

Shrujan Trust

Shrodip Investments Private Limited

TML Industries Limited

Transpek Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Chemicals Private Limited

Shree Vivekanand Research & Training Institute

(5) Key Management Personnel:

Mr. Ashwin C. Shroff (Chairman)

Mr. Dipesh K. Shroff (Managing Director)

Mr. Prakash K. Shroff (Executive Director)

Mr. Jagdish R. Naik (Director)

(6) Relatives of Key Management Personnel:

Mrs. Usha A. Shroff (Wife of Mr. Ashwin C. Shroff)

Mr. Ravi A. Shroff (Son of Mr. Ashwin C. Shroff)

Mr. Hrishit A. Shroff (Son of Mr. Ashwin C. Shroff)

Mrs. Anshul Bhatia (Daughter of Mr. Ashwin C. Shroff)

Mr. Kantisen C. Shroff (Father of Mr. Dipesh K. Shroff)

Mrs. Chanda Kantisen Shroff (Mother of Mr. Dipesh K. Shroff)

Mrs. Preeti Dipesh Shroff (Wife of Mr. Dipesh K. Shroff)

Mrs. Priti P Shroff (Wife of Mr. Prakash K. Shroff)

Mr. Kunal P Shroff (Son of Mr. Prakash K. Shroff)

Mr. Harish K. Shroff (Brother of Mr. Prakash K. Shroff)

Mrs. Tarla K. Rajda (Sister of Mr. Prakash K. Shroff)

Mrs. Jayabala R. Naik (Mother of Mr Jagdish R. Naik)

Mr. Jayesh R. Naik (Brother of Mr. Jagdish R. Naik)

Dr. Sujan R. Naik (Brother of Mr. Jagdish R. Naik)

Mrs. Tejal Jagdish Naik (Wife of Mr. Jagdish R. Naik)


Mar 31, 2010

1. NATURE OF OPERATIONS:

Excel Crop Care Limited is a reputed Company in agro chemicals sector manufacturing technical grade and formulations of pesticides. The Company also markets agri inputs like soil enrichers, bio-pesticides and plant growth promoters. The Company has presence in both the domestic and international markets.

2. The Company transferred its Seeds business as a going concern to Excel Genetics Limited with effect from 1 July 2009. All the assets and liabilities of the Seeds business were transferred at book value. Services of all the employees of the Seeds business were also transferred to Excel Genetics Limited without break or interruption in service. On 10 August 2009, Excel Genetics Limited allotted 1,50,000 equity shares of Rs. 10 each at par to the Company and thereby it became the Companys Subsidiary in which 75% of the equity capital is held by the Company.

As at 31st As at 31st March, 2010 March, 2009 (Rs. in lacs) (Rs. in lacs)

3. Contingent Liabilities:

(a) Disputed Excise-duty liability 2.77 2.77

(b) Disputed Service-tax liability 34.45 34.45

(c) Disputed Income-tax liability 1,05.38 1,14.74

(d> Disputed Sales-tax liability 11.57 4.77

(e) Guarantees given by the Companys bankers on behalf of the Company to third parties 79.46 31.48

(f> Liability in respect of employee(s) disputes Amount Amount unascertainable unascertainable

(g) Claims against the Company not acknowledged as debts 19.86 3.55

4. Details of Employee Benefits:

I. Defined Benefit Plans - Gratuity (Funded):

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service then instead of 15 days, he/she will get gratuity on retirement at 22 days of last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

5. Related Parly Disclosures as required by Accounting Standard (AS)-18 "Related Party Disclosures", notified by Companies (Accounting Standards) Rules, 2006 (as amended) are given below:

(A) Relationships:

(1) Subsidiary Companies:

Excel Industries (Australia) Pty Limited

Excel Industries (Europe) N.V.

ECCL Investments and Finance Limited

Excel Genetics Limited (formerly Harvest Inte-Agro Limited) (w.e.f. 10 August 2009)

(2) Joint Venture:

Multichem Industries (a partnership firm)

(3) Associate Companies:

Aimco Pesticides Limited Excel Bio Resources Limited Kutch Crop Services Limited

(4) Enterprises over which key management personnel and their relatives have significant influence:

Agrocel Industries Limited

Anshul Specialty Molecules Limited

C. C. Shroff Research Institute

C. C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Divakar Chemicals Limited

Excel Industries Limited

Hyderabad Chemicals Limited

Hyderabad Chemical Products Limited

Parul Chemicals Limited

Pritami Investments Private Limited

Shroff Family Charitable Trust

Shroffs Foundation Trust

Shrujan

Shrodip Investments Private Limited

TML Industries Limited (Formerly Transmetal Limited)

Transpek Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Chemicals Private Limited

Shree Vivekanand Research & Training Institute

(5) Key Management Personnel:

Mr, Ashwin C. Shroff Mr, Dipesh K. Shroff Mr. Prakash K. Shroff Mr. Jagdish R. Naik

(6) Relatives of Key Management Personnel:

Mrs. Usha A. Shroff Mr. Ravi A. Shroff Mr. Hrishit A. Shroff Mrs. Anshul Bhatia Mr. Kantisen C. Shroff Mrs. Chanda K. Shroff Mrs. Preeti D. Shroff Mrs. Priti P. Shroff Mr. Kunal P. Shroff Mr. Harish K. Shroff Late Miss Ramila K. Shroff Mrs. Tarla K. Rajda Mr. Ramanlal M. Naik Mrs. Tejal Jagdish Naik

7. Previous Years figures have been regrouped/rearranged, wherever necessary to conform to this years classification.

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