Mar 31, 2015
1. Corporate information
Sharda Cropchem limited ("the company") (Formerly known as Sharda Worldwide Exports Private Limited) is a public company domiciled in India. Its shares are listed on the Bombay Stock Exchange ("BSE") and the National Stock Exchange ("NsE"). The Company is engaged in exports of Agro chemicals - technical grade and formulations - to various countries around the world. The Company also exports Conveyor belts, Rubber belts/sheet, Dyes and Dye intermediates and other products worldwide.
2. Basis of preparation
The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 201 3, read together with Rule 7 of the Companies (Accounts) Rules 2014 and the provisions of the Act (to the extent notified). The financials statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.
3. SHARE CAPITAL
(a) Terms/rights attached to equity shares
The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. the company declares and pays dividend 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.
4. Retirement benefit plans
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.
Disclosures as required by Accounting Standard (AS) - 15 (Revised 2005) " Employee Benefits" notified by the Companies (Accounting Standards) Rules, 2006 as amended are given below:
Operating lease: company as lessee
The Company has certain operating leases for office facility which are non cancellable. Such leases are generally with the option of renewal depending on the rent prevailing at the time of renewal. the lease term is 3 years (Previous year: 5 years). there is no escalation clause in the lease agreement. there are no sub leases.
6. Capitalisation of Expenditures
During the year, the company has capitalised the following expenses of revenue nature to the cost of Intangible asset/Intangible asset under development (IAUD). consequently, expenses disclosed under the respective notes are net of amounts capitalised by the company.
7. Segment information
The Company has disclosed business segment as primary segment. Segments have been identified and reported taking into account, the different risks and returns, the organization structure and the internal reporting systems.
Agrochemicals : Insecticides, Herbicides, Fungicides and Biocides
Belts : conveyor Belts, V Belts and timing Belts
Others : Dyes and Dye Intermediates and General chemicals
The company considers secondary segment based on revenues within India and outside India which is further bifurcated in four regions LATAM, Europe, NAFTA and ROW.
8. Related party disclosures
Names of related parties and related party relationship
Related parties where control exists
* Axis Crop Science Private Limited
* Sharda Balkan Agrochemicals Limited
* Sharda Chile SpA
* Sharda Costa Rica SA
* Sharda Cropchem Espana, S.L.
* Sharda Cropchem Tunisia SARL
* Sharda De Guatemala, S.A.
* Sharda Del Ecuador CIA. Ltda.
* Sharda Do Brasil Comercio De Produces Quimicos E Agroquimicos LTDA
* Sharda Hellas Agrochemicals Limited
* Sharda Hungary Kft
* Sharda International DMCC
* Sharda Italia SRL
* Sharda Peru SAC
* Sharda Poland SP. ZOO
* Sharda Polska SP. ZOO
* Sharda Spain, S.L.
* Sharda Swiss SARL
* Sharda Taiwan Limited
* Sharda Ukraine LLC
* Sharda USA LLC
* Shardacan Limited
* Shardarus LLC
* Shardaserb DO.O
* Sharzam Limited
Stepdown subsidiaries (w.e.f 30.09.2013)
* Siddhivinayak International Limited
* Sharda Bolivia SRL
* Sharda Colombia S.A.S
* Sharda De Mexico S De RL DE CV
* Sharda Europe BVBA
* Sharda International Africa (Pty) Ltd
* Sharda Malaysia SDN. BHD.
* Sharda Uruguay S.A.
* Sharpar S.A.
Stepdown subsidiaries (w.e.f 13.11.2013)
* Sharda Benelux BVBA
Stepdown subsidiaries (w.e.f 07.01.2014)
* Euroazijski Pesticidi d.o.o.
* Sharda Private (Thailand) Limited
Related parties with whom transactions have taken place during the year
Key Management Personnel and relatives
Mr. Ramprakash V. Bubna Chairman and Managing Director
Mrs. Sharda R. Bubna Whole-time Director
Mr. Ashish R. Bubna Whole-time Director
Mr. Manish R. Bubna Whole-time Director
Mrs. Seema a. Bubna Wife of Whole-time Director
Mrs. Anisha M. Bubna Wife of Whole-time Director
Mr. Gautam S. Arora chief Financial Officer
Mr. Jetkin N. Gudhka company Secretary
Enterprises owned or significantly influenced by key management personnel or their relatives Jankidevi Bilasrai Bubna Trust
Related party transactions
the following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:
9. Contingent liabilities
(Rs. in Lacs)
As at As at 31-Mar-15 31-Mar-14
Corporate guarantee given to Company's bank for issuing standby letter of - 4,806.00 credit in respect of loan taken by M/s. Sharda International DMcc,a wholly owned subsidiary of the company (Refer note 36 (b))
Bank's letter of guarantee - 8.86
Letter of credit 3,804.05 2,206.83
Income tax matter (AY 2008-09) - 21.26
Service tax matter (Refer note below) 785.14 785.14
Total 4,589.19 7,828.09
Note: Future cashflows in respect of the Service tax matter, if any, is determinable only on receipt of judgement/decision pending with relevant authorities. The company does not expect the outcome of the matter stated above to have a material adverse effect on the company's financial conditions, result of operations or cashflows.
10. During the year, the company has completed its Initial Public Offer (IPO) through an Offer for Sale of 22,555,124 equity shares at a price of Rs. 156 per share (including share premium of Rs. 146 per equity share). HEP Mauritius Ltd. (PE investor), which was holding 14,320,495 equity shares in the company offered its entire holding in the Offer for Sale. Mr. Ramprakash V Bubna and Mrs. Sharda R Bubna offered 4,117,314 equity shares and 4,117,315 equity shares, respectively in the Offer for Sale in order to comply with SEBI's requirement of maximum holding of promoter and promoter group to 75%. Since the issue was an Offer for Sale, all the share issue expenses related to the IPO have been recovered from the selling shareholders.
11. Derivative instruments and unhedged foreign currency exposure
The company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations primarily relating to trade payables and trade receivables. the counter party is generally a bank. these contracts are for a period between one day and one year.
12. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
Based on the information available with the Company there are no " The Micro, Small and Medium Enterprise Development Act, 2006" parties identified to whom any amounts are outstanding.
13. The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) as per the provision of Section 135 of the companies Act, 2013 amounts to Rs. 205.55 Lacs. During the year, the company has spent an amount of Rs. 144.88 lacs on cSR activities for education, health care, medical relief, skill development, etc. the same is included in note 28 of the statement of profit & loss.
14. The name of the company has been changed from Sharda Worldwide Exports Private limited to Sharda cropchem limited with effect from September 18, 2013.
15. Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year classification/ disclosure.