Notes to Accounts of White Organic Agro Ltd.

Mar 31, 2018

Note 1 - Financial Risk Management

The Company''s business activities are exposed to financial risks, namely Credit risk, Liquidity risk .The Company''s Senior Management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the Board of Directors on its activities.

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 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 adhoc reviews of risk management controls and procedures, the results of which are reported the audit committee

i. 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, if require an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows.

This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents

Note 2 Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Note 3: First Time Adoption Explanation of transition to Ind AS:

As per Note 1, these are the Company''s first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2018, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (''IGAAP'').

The accounting policies set out in Note 1 have been applied in preparing these financial statements for the year ended 31 March 2018 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2016.

In preparing its Ind AS balance sheet as at 1 April 2016 and in presenting the comparative information for the year ended 31 March 2018, the Company has adjusted amounts previously reported in the financial statements prepared in accordance with IGAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with IGAAP, and how the transition from IGAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

Optional exemptions availed and mandatory exceptions

In preparing the financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

1. Property, plant and equipment and Intangible assets

The Company has availed the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant and equipment and intangibles as recognised in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition (1 April 2016).

2. Investment in Subsidiaries

The Company has elected to use the exemption to measure all investments in Subsidiaries as recognised in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (1st April 2016).

B. Mandatory Exceptions

1. 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.

2. Classification and measurement of financial assets

As permited under Ind AS 101, Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. In line with Ind AS 101, measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

4. The company has no outstanding dues to small scale industrial undertakings as on 31st March, 2018.

5. Previous year''s figures have been regrouped / rearranged wherever necessary, so as to make them comparable with those of the current year.

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Mar 31, 2014

1. Deferred Tax (Liabilities)/Assets(net)

In accordance with the Accounting Standard 22 on " Accounting for Taxes on Income " issued by The Institute of Chartered Accountants of India, Deferred assets and liabilities should be recognized for all timing differences in accordance with the said standard.

The tax effect of significant timing differences during the year that have resulted in deferred assets and liabilities are given below.

2. Related Party Transactions

a) List of Related Parties:

Key Management Personnel (KMP)

Mr. Darshak Rupani Managing Director

Mr. Prashantt Rupani Whole Time Director

Mr. Ramesh P Kothari Additional Director

Mr. Jaynish R. Kothari Director

Mr. Jitendra Mehta Director

Other Related Party (Enterprise Owend or significantly influenced by Key Management Personnel).

Suraj Enterprises (Proprietorship firm)

Sapna Infraventure Pvt Ltd (Wholly owned subsidiary)

Jaynish & Co. (Proprietorship firm)

3. Expenses in foreign currency : NIL (P.Y. NIL)

Earnings in foreign currency : NIL (P.Y. NIL)

4. The company has no outstanding dues to small scale industrial undertakings as on 31st March, 2014.

5. During the year, the company has not carried on more than one activity. Therefore Segment Reporting as per AS 17 is not applicable to the company.

6. Previous year''s figures have been regrouped/rearranged wherever necessary, so as to make them comparable with those of the current year.

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Mar 31, 2013

Company Overview :

White Diamond Industries Limited along with its 100% owned and controlled subsidiary Sapna Infraventure Pvt. Ltd. is a company engaged in business of trading in cut and polished diamonds.

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Mar 31, 2012

Company Overview :

White Diamond Industries Limited along with its 100% owned and controlled subsidiary Sapna Infraventure pvt. Ltd. is a company engaged in business of trading in cut and polished diamonds.

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Mar 31, 2010

1. There is no contingent liability outstanding as on the year ended 31st March, 2010.

2. The company has given advance against export order of US $ 10 million from Romidiam B.V.B.A. Antwerp, Belgium to the various parties amounting to Rs. 5,09,65,000.

3. Impairment loss is not provided as the same is not material during the current financial year. The company will review the same in future.

4. Provision for gratuity amounting to Rs. 76,000 have not been invested in any fund by the Company,

5. The account pertaining to unclaimed dividend is under reconciliation and/or subject to adjustment, if any.

6. Disclosure of Segment Reporting under Accounting Standard:

Notes:

During the year the company has only one trading activity and hence segment wise report of activities is not given.

7. In accordance with the Accounting Standard 22 on "Accounting for Taxes on Income",(AS 22) issued by The Institute of Chartered Accountants of India, Deferred assets and liabilities should be recognized for all timing differences in accordance with the said standard.

8. Related party disclosure.

A) List of related party

Key Management Personnel

Mr. Ramesh Kothari Managing Director

Mr. Jaynish Kothari Director

Other Related Party (Enterprise owned or significantly influenced by key management personnel)

Suraj Enterprises

Jaynish & Co.

Nature of transaction Relationship Name of Related party Value

Salary Key Management Ramesh Kothari 96,000



9. Foreign Currency Expenses:

Foreign Traveling Expenses NIL NIL

10. Additional information pursuant to the provisions of Paragraph 4(C) & 4(d) of Part-II of Schedule-VI of the Companies Act, 1956 (As Certified by a Director) to the extent applicable.

A) The quantitative information regard to class of goods manufactured by the Company.

a) Licensed Capacity : Not Applicable

b) Installed Capacity : Not Applicable

c) Actual Production : Cut & Polished Diamonds Cts. NIL

B) Information required in terms of part IV of schedules VI of companies Act 1956 attached.

11. The Valuation of Fixed Assets has been taken, valued and certified by the Managing director of the Company.

12. The closing stock has been taken, valued and certified by the Managing director of the company and the company accepted the same on the basis of valuation certificate by valuer appointed by the company being a technical matter.

13. In the opinion of the Board, Stock in Hand, Current Assets, Loans and Advances have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated.

14. Balance of Debtors, Creditors, Loan & Advances are subject to confirmation and/or reconciliation/consequential adjustments, if any.

15. Information required in terms of Part IV of Schedule VI of the Companies Act, 1956 is attached.

16. Previous Years figures have been rearranged/regrouped wherever were necessary.

17. Figures in Brackets pertain to previous year.