Notes to Accounts of Camson Bio Technologies Ltd.

Mar 31, 2018

1. CORPORATE INFORMATION

Camson Bio Technologies Limited (''the Company'') is in the field of bio technology focused on manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets.

2. Transition to indian accounting Standards (ind aS)

These standalone financial statements of Camson Seeds Limited for the year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable Ind AS have been applied consistently and retrospectively wherever required.

The effect of the Company''s transition to Ind AS is summarized as follows:

i. Transition election

ii. Reconciliation of equity as previously reported under Indian GAAP to Ind AS

iii Reconciliation of profit or loss as previously reported under Indian GAAP to Ind AS

iv. Adjustments to the statement of cash flows i. Transition election

The Company has prepared the opening Balance Sheet as per Ind AS as of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to certain mandatory exceptions and optional exemptions availed by the Company as detailed below:

a. Share based payments:

In accordance with Ind AS transitional provisions, Ind AS 102 Share-based payment has not been applied to employee stock options that have vested before the transition date.

b. Derecognition of financial assets and financial liabilities:

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after the transition date.

c. Ind AS 101 allows an entity to measure property, plant and equipment on the transition date at its fair value or previous GAAP carrying value (book value) as deemed cost. The Company has elected to measure carrying value (book value) as deemed cost on the date of transition.

d. Under Previous GAAP, loss provision for trade receivables was created on incurred loss based on credit risk assessment of each customer. Under Ind AS, these provisions are based on Expected Loss model which factor the credit risk as well as payment delay risk. As a practical expedient, the Company has evaluated a matrix based approach based on past trends to arrive at the provision matrix for receivables outstanding as at each period end. Accordingly, the provision resulting from such evaluation has been adjusted to opening reserves (for receivables outstanding as at April 01, 2016) and the statement of profit and loss (receivables as at March 31, 2017).

e. Under previous GAAP, transaction costs incurred in connection with borrowings are charged upfront to statement of profit and loss. Under Ind AS, transaction costs are included in initial recognition amount of financial liability and charged to statement of profit and loss based on effective interest method.

f. The Company recognises costs related to the post-employment defined benefit plan on an actuarial basis both under Indian GAAP and Ind AS. Under Indian GAAP, the entire cost including actuarial gains and losses are charged to statement of profit and loss. Under Ind AS, remeasurements are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI.

Explanations for reconciliation of Statement of Profit and Loss as previously reported under IGAAP to Ind AS

A. Other Expenses

Adjustment includes provision for expected credit loss and fair value adjustment of investment under Ind AS.

iv. Cash Flow Statement

There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under Ind AS.

(ii) Terms / rights attached to equity shares

The Company has one class of Equity shares having par value of Rs. 10 per share. Each holder of an equity share is entitled to one vote per share.

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 shares held by the equity share holders.

(iv) Shares reserved for issue under option

As at March 31,2017 4,99,946 shares ( As at March 31, 2016 9,99,893 shares) were reserved for issuance towards Employees Stock Options available for grant to their eligible employees on its EGM dated February 12, 2015 were lapsed ( Refer Note 40)

(i) The Company has disputed various demands raised by income tax authorities for the assessment year 2015-16 which are pending at the stage of appeal. The Company is confident that the appeal will be decided in its favour.

(ii) The Company has disputed various demands raised by Sales tax authorities for the assessment year 2012-13 and 2013-14 which are pending at the stage of appeal. The Company is confident that the appeal will be decided in its favour.

(ii) Loans and advances in the nature of loans where there is,

a. no repayment schedule or repayment is beyond seven years or

b. no interest or interest is below rates stipulated in Section 186 of the Companies Act, 2013:

B Disclosure under Accounting Standard.:

3. Employee benefit plans

a. Defined contribution plans:

The Company makes Provident Fund contribution and Employee state insurance which is defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 22,16,572/- (P.Y. 18,65,145/- ) for provident fund contributions and Rs 1,24,418/- (P.y. Rs 38,015/-) for Employee State insurance Scheme contribution in the statement of profit and loss . The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b. Defined benefit plans:

The Company makes provision for Employees'' Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The Company recognized Rs. 19,87,422/- for Gratuity fund contributions in the statement of profit and loss account.. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at the balance sheet date.

The following table sets out the details of the gratuity plan and defined benefits obligations amounts recognized in the Company''s financial statements as at March 31, 2018:

C. Employees are entitled to accumulation of leave which can be encased at the time of retirement or termination. The leave encashment benefit scheme is a defined benefit plan and is not funded. Hence, there are no plan assets attributable to the obligation. The Leave encashment liability under defined benefit plan as on 31.3.2018 is Rs.20,46,811/- (P.Y: Rs.18,88,311).

4. Employee Stock Options Plan

In the extraordinary general meeting held on Feb 12, 2015, the shareholders approved the issue of 1,499,990 options under the Scheme ESOP.

The ESOP allows the issue of options to employees of the Company. Each option comprises one underlying equity share.

As per the Scheme, the Remuneration / Compensation Committee grants the options to the employees deemed eligible. The exercise price of each option shall be Rs. 109/-(One Hundred Nine Only) per option as defined in the Scheme. The options granted vest over a period of 3years from the date of the grant in proportions specified in the Scheme. Options may be exercised within 365 days of vesting.

The difference between the fair price of the share underlying the options granted on the date of grant of option and the exercise price of the option (being the intrinsic value of the option) representing Stock compensation expense is expensed over the vesting period.

*In the opinion of the management, the above expenditure is eligible for the purpose of claiming deduction under section 35(2AB) of the Income Tax Act, 1961. Being this matter is technical in nature, the Auditors'' have also relied upon the same.

5. Previous year''s figures have been regrouped or reclassified wherever necessary to correspond with the current year classification or disclosure.

6. During the FY 2015-16, the Company had received communication from certain shareholders to conduct forensic audit on the financial matters of the Company. The Company had earlier replied to the said shareholders requesting specific facts and scope/areas for the forensic audit. However, as per the representation received from the Board of Directors / Management of the Company, there is no pursuance from the complainants and due to no substantial framework was provided for the forensic audit to be conducted, the Company''s Board of Directors have decided to drop the proposal of such forensic audit due to lack of direction, any proof leading to the need of such audit and hefty fund flow required for said activity.

7. Approval of financial statements

The financial statements are approved for issue by the Board of Directors on May 30, 2018

---

Mar 31, 2016

1. Related parties:

a. Name of the related pant and nature of relationship where control exists:

1 Camson Agri Ventures Private Limited Subsidiary

2. Cam son Agro Products Private Limited Subsidiary

3. Cam son farm Management Venture LLP Entities where Key Management

Personnel (KMP)/relatives of Key Management Personnel (RK M P) have significant influence

4.CAV chepyala farms L.L.P

5. Mr. Dhirendra Kumar Key Management Personnel

6. Mr. Veerendra Kumar Singh Key Management Personnel

7. Mr. Narendran R Key Management Personnel

8. Mr. Santosh Natr Key Management Personnel

9. Mr. Bhamidi S Krishna Skirmish Compliance Officer Company Secretary up to 05,06.201 5

10. Mr, A.N. Singh - Director Relatives of Key Management Personnel:

I I. Ms. Geeta Singh Relatives of Key Management Personnel

12. Mr. Karan Singh Relatives of Key Management

Personnel

13 During The year, the company has initiated and completed the demerger of Seed Business. The "Scheme of Arrangement” (''the scheme") involved transfer of The Seed Business lo a ‘‘Resulting Company" Cam son Seeds Limited “CSLT''. In consideration for the vesting of the Seeds business undertaking to CSL as per the terms of the Scheme, each member of The demerged company shall receive one equity share of Rs. 10/- each in the resulting company for every one equity share of Rs. 10/- each held in the demerged company. The Scheme was approved by the Honorable High Court of Karnataka vide order dated 31 the July, 201 5. CRTL has filed the order approved by the High Court with the Registrar of the Companies, Bangalore (ROC/) on 1st September. 201 5. The Scheme lies accordingly been given effect to in these financial statements with retrospective effect from April 1. 2014 ("Appointed Date")

Consequent: to demerger of the Seed Business of the Company in terms of the Scheme, the financial statements of the Company for the year ended March 31, 2016 do not include die operations of the Seed Business, and are therefore strictly not comparable with the figures of the previous year ended March 31, 2015

The following assets and liabilities have been divested into the Resulting Company from CBTT, with effect from April 1, 2014 pursuant to the Scheme.

The Net Assets relating to the Seeds undertaking amount mg to Rs. 1,170,248,600 to the Resulting Company as at April 1, 2014, pursuant to the sachem of arrangement has been adjusted as per the terms of the Scheme against the Reserves of CBTL as under:

*1n the opinion of the management, (he above expenditure is eligible for the purpose of claiming deduction under section 35(2AB) of the Income Tax Act, 1961, Being this mailer is technical in nature, the Auditors'' have also relied upon the same,

14 During the year, the company has received communication from shareholders alleging certain issues relating to the financial matter of the company anti have requested to conduct of forensic audit. The company lies replied to the shareholder requesting specific facts and scope/areas for forensic audit.

The Company''s Board of Directors on meeting held on May 30, 301 has proposed lo canyon forensic audit by appointing. n independent committee/legal counsel to decide die scope and she areas of forensic audio Accordingly, the company is of the view dial maternal adjustment or disclosures, it any, would be considered after conclusion of the forensic audit.

15. Previous year''s figures have been regrouped or reclassified wherever necessary to correspond wade the current year um or disclosure.

---

Mar 31, 2015

1. CORPORATE INFORMATION

Camson Bio Technologies Limited ('the Company') is in the field of bio technology focused on cultivation of hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets.

2. Employee Benefits

2.1 Retirement Benefit Plans:

a) Defined contribution plans:

The Company makes Provident Fund contribution to defined contribution plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 4,805,606/- (P.Y. Rs. 2,083,725/-) for provident fund contributions in the Statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans:

The Company makes provision for Employees' Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at the balance sheet date.

2.2 Employees are entitled to accumulation of leave which can be encashed at the time of retirement or termination. The leave encashment benefit scheme is a defined benefit plan and is not funded. Hence, there are no plan assets attributable to the obligation. The Leave encashment liability under defined benefit plan as on 31.3.2015 is Rs. 3,704,427 (2013: Rs. 2,629,025).

2.3 Employee Stock Options Plan

'The Company has formulated Employee Stock Option plan 2012, drafted in accordance with the SEBI (Employee Stock Option Scheme) Guidelines, 1999. The company has granted 14,99,990 stock options to their eligible employees in its board meeting held on Dt: Feb 12, 2015. to acquire equity shares of the Company which vest in a graded manner and to be exercised within a specified period. In accordance with the SEBI Guidelines; the excess of Rs. 0.50/- on the closing market price of Rs. 109.5/-, the day prior to the grant of the options under ESOS over the exercise price of Rs. 109/-is amortized on a straight-line basis over the vesting period. (Amortization amount - Rs. 32876/-)

3. Segment Information:

In accordance with AS-17 "Segment Revenue", notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under:

A. Primary Segment

(a) Business Segment:

Segment identified by the company comprises as under:

i. Seeds & Vegetables

ii. Agri Biotech Products

(b) Segment Revenue & Expenses:

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(c) Segment Assets & Liabilities:

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

B. Secondary Segment

The entire turnover of the Company is from domestic business and there is no geographical/secondary segment to be reported.

4 Leases

4.1 The Company has taken certain assets and office premises under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs.7,567,703/- (P.Y. Rs.11,084,154/-).

4.2 The Company has entered into an un-registered agreement for Lease/License in respect of 34 acres of land from Mr. A N Singh, Director with effect from Jan 01, 2015 and paid Rs 415,725,676.53 (P.Y. Rs. 374,725,677/-) as lease consideration under Operating Lease Plan for a term of 99 Years. The agreement is not cancellable before the lease term and not renewable upon completion of the said term. The consideration amount is amortized over the lease period (Amortization amount charged for the 3 months period during the year Rs. 1,037,797/-, P. Y. – NIL)

5 Earnings per Share (EPS)

Earnings per share is calculated in accordance with Accounting Standard 20 – "Earnings per share", notified by the Companies (Accounting Standards) Rules, 2006.

6. Discontinuing Operation

"The Management of the Company intended to demerge its seeds division to Camson Seeds Limited through Court approved Scheme of Arrangement. In this process, the Management has obtained approval of the Court to conduct Meetings and Convened Meetings of shareholders and creditors on April 23, 2015 and complied with the directions of High Court of Karnataka. The Company has filed the voting results and outcome of the meeting with Stock Exchange (BSE). The Company has filed the Petition vide no 105/2015 with Honorable. High Court of Karnataka and awaiting Approval. Affect in the accounts will be accordingly given in the ensuing financial year".

On approval of the Scheme by the Honorable High Court, shareholders of Camson Bio Technologies Limited will get one equity share of Camson Seeds Limited for every share held in Camson Bio Technologies Limited.

7 Contingent Liabilities

Corporate Guarantee issued in respect of borrowings availed by subsidiary companies Rs. 22 Crores (P.Y. NIL).

8 ADDITIONAL DISCLOSURES:

8.1 Foundation Seeds are the most important input towards production of hybrid seeds. Certain important aspect of a foundation seeds production is the isolation that has to be maintained. These isolations are to be regulated very carefully so as to avoid the cross pollination of the seeds, It is valued very high due to significant nature of the stringent steps taken for production of seeds. The Government of India has mentioned certain isolation distances for each crop & all the companies adhere to same formula. Generally foundation seeds have an expected life of 5-10 years. (Refer Note No. 2.6)

8.2 During the year, 4,774,327 lakh warrants issued in earlier years have been converted into equity shares as per terms of issue of such warrants. Out of that 1,674,327 equity shares allotted to Bio Harvest Pte. Limited (Foreign Investor) @ Rs. 198.86 per warrant and 700,000 to Ms. Reeya Singh (Daughter of Managing Director) @ Rs. 70 per warrant and remaining 2,400,000 warrant converted into equity share @ Rs. 70/- per warrant and issued to other investors

8.3 The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties had been identified on the basis of information available with the Company in this regard.

8.4 Eanrings in foreign currency from export of products is Rs 6, 14,697.85/- (P.Y. Nil) Expenditure in foreign currency towards travelling expenses is Rs. 1,824,240/- (P.Y. Rs. 1,029,628/-).

8.5 Claims against company not acknowledged as debts Rs.6, 92,688/-(P.Y. Rs. 6,92,688/-).

8.6 The soft loan and interest there on to Rs 80.04 lakhs due to the NHB is written back in current year and shown under other income, in the absence of any claim from NHB.( The Honorable Court of Civil Judge (SR.DN), Doddaballapur vide their order dated 8th December 2009 closed the case filed by the National Horticulture Board (NHB) to recover the Loan of Rs. 69.00 lakhs and interest thereon from the Company).

8.7 During the year, the Company had received demand for additional Income-tax from the department for the AY 2012-13 for Rs.3,08,17,780 (including interest of Rs. 76,59,591). Company has agreed for the same and accordingly provision has been made in the books.

8.8 The Company has reclassified previous year figures to confirm to this year's classification.

8.9 The figures in brackets represent previous year's figures.

---

Mar 31, 2014

1. CORPORATE INFORMATION

Camson Bio Technologies Limited (''the Company'') is in the field of bio technology focused on cultivation of hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets.

2 ADDITIONAL DISCLOSURES:

2.1 Foundation Seeds are the most important input towards production of hybrid seeds. Certain important aspect of a foundation seeds production is the isolation that has to be maintained. These isolations are to be regulated very carefully so as to avoid the cross pollination of the seeds, It is valued very high due to significant nature of the stringent steps taken for production of seeds. The Government of India has mentioned certain isolation distances for each crop & all the companies adhere to same formula. Generally foundation seeds have an expected life of 5-10 years. (Refer Note No. 2.6)

2.2 The Company has taken certain assets and office premises under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 1,10,84,154/- (Rs. 1,24,75,910/-).

2.3 The Company has entered into an agreement to acquire 34 acres of land from Mr. A N Singh, Director and paid an advance of Rs 374,725,677/- (Rs. 154,375,676/-), for which the registration / transfer is under process as it has already been applied with the concerned Government Authority,

2.4 During the year, the shareholders at the Extra Ordinary General Meeting held on May 29, 2013 approved the issue of 1,674,327 warrants (Investor warrants) to Bio Harvest Pte. Limited (investor) at a consideration of INR 173.34 per warrant. The holder of the investor warrant is entitled for allotment of one equity share of face value of INR 10 for each warrant held. The investor warrants are convertible within a period not exceeding six months or nine months (as mutually agreed between the Company and the holder of the warrants) from the date of allotment of the warrants. 25% of the consideration is to be received prior to issue of warrants and balance 75% at the time of conversion. Such warrants were allotted on November 14,2013.

During the year, 2,900,000 lakh warrants issued in earlier years have been converted into equity shares as per terms of issue of such warrants. The 3,100,000 share warrants issued in earlier years and pending for conversion as at March 31,2014 are convertible at any time within a period of 18 months from the date of allotment of warrants. Each warrant is convertible into one equity share of nominal value of Rs. 10/- each. 25% of the consideration is to be received prior to issue of warrants and balance 75% at the time of conversion.

2.5 Retirement Benefit Plans:

a) Defined contribution plans:

The Company makes Provident Fund contribution to defined contribution plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 2,083,725/- (Rs, 1,736,734/-) for provident fund contributions in the Statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans:

The Company makes provision for Employees'' Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at the balance sheet date.

2.6 Leave encashment provided in the books as at March 31, 2014 aggregated to Rs 2,629,025/- (PY Rs. Nil) and expense debited to the Statement of Profit and Loss for the year is Rs 2,629,025/-(PY Rs Nil).

2.7 Expenditure in foreign currency towards travelling expenses 1,029,628/- (Nil).

2.8 Intangible Assets

During the year, the company has developed a new product "Calpushti", a natural fertiliser. The techno- commercial feasibility of the product has been established and cost of development incurred of Rs. 320,617,067/- towards material and employee costs has been capitalized on completion of the development activity in March 2014.

2.9 Claims against comp any not acknowledged as debts Rs.6, 92,688/-(P.Y. 6,92,688/-).

2.10 The Honorable Court of Civil Judge (SR.DN), Doddaballapur vide their order dated 8th December 2009 closed the case filed by the National Horticulture Board (NHB) to recover the Loan of Rs. 69.00 lakhs and interest thereon from the Company since the NHB has not taken any steps to resolve the matter despite the directives from the said court. However as a matter of prudence, the loan and interest there on aggregating to Rs 80.04 lakhs due to the NHB is not written back.

2.11 During the year, Management have reviewed the carrying value of inventory of foundation seeds and recorded a provision of Rs. 35,630,025/- to write down such inventory to net realizable value. Given the significance of the amount, such write down has been disclosed as exceptional item in the Statement of Profit and Loss.

2.12 The Company has reclassified previous year figures to conform to this year''s classification.

2.13 The figures in brackets represent previous year''s figures.

---

Mar 31, 2013

1. CORPORATE INFORMATION

Camson Bio Technologies Limited („the Company'') is in the field of bio technology focused on cultivation of hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets.

2.1 The Income generated from cultivation and marketing of seeds, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for both agricultural activities and agri - biotech products are bifurcated on an estimated basis for the purpose of computing taxable income.

2.2 The Honorable Court of Civil Judge (SR .DN), Doddaballapur vide their order dated 8th December 2009 closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from the said court. However as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interest thereon due to NHB is not withdrawn.

2.3 The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 64, 80,308/- (Rs. 36, 61,705/-).

2.4 The Company has entered into an agreement to acquire 34 acre land from a director and paid an advance of Rs 154,375,676/- (19,915,000/-).

2.5 Retirement Benefit Plans:

a) Defined contribution plans:

The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 17,36,734/- (Rs. 13, 98,612/-) for provident fund contributions in the profit and loss account including contribution to the Managing Director. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans:

The Company makes the provision to the Employees'' Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

2.6 Expenditure in foreign currency towards travelling expenses Nil (89,962/-).

2.7 Related Party Disclosure:

1. Relationship during the year:

(a) Subsidiaries:

Camson Agri Ventures Private Limited

(b) Associates: Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have significant influence:

- Sanatan Herbal & Naturals Limited

- Camson Farm Produce Private Limited

- Shashtika Health Resorts & Spa Private Limited

- Camson Green Valley Products Private Limited

(c) Key Management Personnel: Dhirendra Kumar – Managing Director Veerendra Kumar Singh - Director

(d) Relatives of Key Management Personnel: A.N. Singh - Director

Alka Singh

Geetha Singh

Karan Singh Reeya Singh

2.8 Segment Information:

In accordance with AS-17 "Segment Revenue", notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under:

A. Primary Segment

(a) Business Segment:

Segment identified by the company comprises as under: i. Seeds & Vegetables ii. Agri Biotech Products

(b) Segment Revenue & Expenses:

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(c) Segment Assets & Liabilities:

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

B. Secondary Segment

The entire turnover of the Company is from domestic business and there is no geographical/secondary segment to be reported.

2.9 Claims against company not acknowledged as debts Rs.6,92,688/-(Nil)

2.10 Balances of Trade Payables, Trade Receivables, Loans and Advances are subject to confirmation and reconciliation.

2.11 The Company has reclassified previous year figures to conform to this year''s classification.

2.12 The figures in the brackets represent previous year''s figures.

---

Mar 31, 2012

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 an Equity Share 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 Share Holders in the 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 Shares held by the Equity Share Holders.

1. CORPORATE INFORMATION

Camson Bio Technologies Limited ('the Company') is in the field of bio technology focused on cultivation of hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management products for the agricultural markets.

2.1 The Income generated from cultivation and marketing of seeds, vegetables and fruits, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for both agricultural activities and agri - biotech products are bifurcated on an estimated basis for the purpose of computing taxable income.

2.2 The Honorable Court of Civil Judge (SR .DN), Doddaballapur vide their order dated 8th December 2009 closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from the said court. However as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interest thereon due to NHB is not withdrawn.

2.3 The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 36, 61,705/- (Rs. 27, 62,994/-).

2.4 Retirement Benefit Plans:

a) Defined contribution plans:

The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 13, 98,612/- (Rs. 16,70,762/-) for provident fund contributions in the profit and loss account including contribution to the Managing Director. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans:

The Company makes the provision to the Employees' Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company's financial statements as at March 31, 2012:

2.5 The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties had been identified on the basis of information available with the Company in this regard.

2.6 Related Party Disclosure:

1. Relationship during the year:

(a) Subsidiaries: None

(b) Associates: None

(c) Key Management Personnel:

Dhirendra Kumar - Managing Director Veerendra Kumar Singh - Director

(d) Relatives of Key Management Personnel:

A.N. Singh - Director

Alka Singh Geetha Singh Karan Singh

(e) Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have significant influence:

Sanatan Herbal & Naturals Limited

Camson Farm Produce Private Limited

Shashtika Health Resorts & Spa Private Limited

Camson Green Valley Products Private Limited

2.7 Segment Information:

In accordance with AS-17 "Segment Revenue", notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under:

A. Primary Segment

(a) Business Segment:

Segment identified by the company comprises as under:

i. Seeds & Vegetables

ii. Agri Biotech Products

(b) Segment Revenue & Expenses:

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(c) Segment Assets & Liabilities:

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

2.8 Contingent Liabilities and commitments : Nil

2.9 Balances of Trade Payables, Trade Receivables, Loans and Advances are subject to balance confirmation and reconciliation.

2.10 Up to the year ended March 31st 2011, the Company was using pre-revised schedule VI to the Companies Act 1956, for preparation and presentation of its Financial Statements. For the year ended March 31st 2012, the revised Schedule VI notified under the Companies Act, 1956 has been applicable to the Company. The Company has reclassified previous year figures to conform to this classification. Figures in brackets relate to previous year.

---

Mar 31, 2011

1) The Income generated from cultivation and marketing of seeds, vegetables and fruits, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961. Expenses which are common for both agricultural activities and agri biotech products are bifurcated on an estimated basis for the purpose of computing taxable income.

2) Share warrants application money includes Rs. 181 lakhs (Previous Year Rs. 529 lakhs) towards security premium.

3) The Honorable Court of Civil Judge (SR .DN), Doddaballapur, vide their order dated 8th December 2009 closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from the said court. However, as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interest thereon due to NHB is not withdrawn.

4) The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 27,62,994/- (Rs. 21,59,566/-).

5) Retirement Benefit Plans :

a) Defined contribution plans :

The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 16,70,762/- (Rs. 9,24,215/-) for provident fund contributions in the Profit and Loss Account including contribution to the Managing Director. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans :

The Company makes the provision to the Employees' Gratuity Scheme for eligible employees. The Scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date.

6) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties had been identified on the basis of information available with the Company in this regard.

7) Additional particulars as required under Part II of Schedule VI of the Companies Act, 1956.

The Company is engaged in the business of Production and sale of Agro Biotech products, seeds and vegetables. The particulars required to be disclosed in 3, 4B and 4C of Part II of Schedule VI to the Companies Act, 1956 are furnished to the extent applicable to the Company for the year under review.

As per the general exemption given under Section 211 of the Companies Act, 1956, vide press note no. 2/2011 dated 08.02.2011, the Company has not furnished information prescribed in para 3 (i) (a) and 3 (ii) (b) of Part II of Schedule VI to the Companies Act, 1956.

8) Related Party Disclosure :

1. Relationship during the year :

(a) Subsidiaries : None

(b) Associates : None

(c) Key Management Personnel : Dhirendra Kumar - Managing Director

(d) Relatives of Key Management Personnel: A.N. Singh

Veerendra Kumar Singh

Alka Singh

Geeta Singh

Karan Singh

(e) Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have significant influence :

Sanatan Herbal & Naturals Limited

Camson Farm Produce Private Limited

Shashtika Health Resorts & Spa Private Limited

Camson Green Valley Products Private Limited

9) Earnings per Share (EPS) :

Earnings per share is calculated in accordance with Accounting Standard 20 - "Earnings per share", notified by the Companies (Accounting Standards) Rules, 2006.

10) Segment Information :

In accordance with AS-17 "Segment Revenue", notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under :

A. Primary Segment

(a) Business Segment :

Segment identified by the Company comprises as under:

i. Seeds & Vegetables

ii. Agri Biotech Products

(b) Segment Revenue & Expenses :

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(c) Segment Assets & Liabilities :

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

B. Secondary Segment

The entire turnover of the Company is from domestic business and there is no geographical/secondary segment to be reported.

11) Contingent Liabilities : Nil

12) The Company is in the process of filing revised returns under various State Sales Tax Act (VAT). Reconciliation of liability accounts relating to VAT is in progress and the effect, if any, will be accounted in the year in which it is reconciled/ revised returns filed.

13) Foundation Seeds included earlier under Fixed Assets and depreciated are now grouped under inventories based on its written down value. Issue of the same for further production is accounted as consumption . There is no impact on the revenue and reserves of the Company on account of this change.

14) Previous year figures have been regrouped / reclassified wherever necessary to conform to current year classification. Figures in brackets are in respect of previous year.

---

Mar 31, 2010

1) a. Confirmation of balances from the parties with whom the Company has had transactions are called for and received in certain cases and are reconciled. In respect of cases where confirmation of balances is not received, the Management does not expect any material variations.

b. Supporting documents relating to Rs 2,506 lakhs of expenses incurred during the year is misplaced / lost in transit. The management has reviewed these transactions and confirms the veracity of the same.

2) Details of Securities for Loan:

a. Vehicle loans from banks are secured by hypothecation of vehicles.

b. Soft loan from National Horticulture Board is secured by mortgage of all immovable and movable assets both present and future.

3) The Income generated from cultivation and marketing of seeds, vegetables and fruits, which is in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for both agricultural activities and agri biotech products are bifurcated on an estimated basis for the purpose of computing taxable income .

4) Share warrants application money pending allotment includes Rs. 512 lakhs (Previous Year Rs. Nil) towards security premium.

5) The Company is carrying out the cultivation of herbal plants, extraction of alkaloids and other research and development activities on the land owned by one of the Directors.

6) The Honourable Court of Civil Judge (SR .DN),Doddaballapur vide their order dated 8th December 2009 closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs.69.00 lakhs and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from the said court. However as a matter of prudence , Rs 80.04 lakhs shown as soft loan and accrued interest thereon due to NHB during the previous year is not withdrawn.

7) The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 21,59,566/- (Rs.20,82,100/-).

8) Retirement Benefit Plans:

a) Defined contribution plans: The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.924, 215/- (Rs.836, 761/-) for provident fund contributions in the Profit and Loss Account including contribution to the Managing Director. The contributions payable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans: The Company makes the provision to the Employees Gratuity Scheme for eligible employees. The scheme provides for lump sum payment to eligible employees at retirement, death while in employment or on termination of employment, an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Eligibility occurs upon completion of five years of service.

The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company’s financial statements as at March 31, 2010:

9) Related Party Disclosure:

1. Relationship during the year:

(a)Subsidiaries: None

(b)Fellow Subsidiaries: None

(c)Associates:

None (d)Key Management Personnel:

Dhirendra Kumar – Managing Director

(e)Relatives of Key Management Personnel:

A. N. Singh

Veerendra Kumar Singh

Geeta Singh

Karan Singh (f) Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have

significant influence:

Sanatan Herbal & Naturals Limited

Camson Farm Produce Private Limited

Shashtika Health Resorts & Spa Private Limited

Camson Green Valley Products Private Limited

10) Segment Information:

In accordance with AS-17 "Segment Revenue", notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under:

A. Primary Segment

a) Business Segment:

Segment identified by the Company comprises as under: i. Seeds & Vegetables ii. Agri Biotech Products

b) Segment Revenue & Expenses:

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

c) Segment Assets & Liabilities:

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

B. Secondary Segment

The entire turnover of the Company is from domestic business and there is no geographical/secondary segment to be reported.

11) Contingent Liabilities : Nil

12) The Company is in the process of filing revised returns under various State Sales Tax Act (VAT). Reconciliation of liability accounts relating to VAT is in progress.