Notes to Accounts of Super Crop Safe Ltd.

Mar 31, 2018

1. COMPANY BACKGROUND

Super Crop Safe Limited (“The Company”) was incorporated on 9th February, 1987 vide certificate of incorporation no: L24231GJ1987PLC009392 under the Companies Act, 1956. The Company is engaged in the business of manufacturing and trading of Agro Chemicals.

I. Reconciliation of Equity as at 1st April, 2016 and 31st March, 2017

II. Reconciliation of Statement of Profit and Loss for the year ended 31st March, 2017

III. Adjustments to Statement of Cash Flows for the year ended 31st March, 2017

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

As required under Paragraph (10C) of Ind AS 101, the Company has reclassified items that it recognised in accordance with previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity in accordance with Ind ASs.

Notes to the Reconciliations

Note 1: Trade Receivables

On the date of transition to Ind AS, the provision for expected credit loss on trade receivables has resulted in a decrease in the carrying amount of these receivables by Rs. 8.41 Lakhs which has been recognised directly in retained earnings (Equity).

Deferred Tax Liability of Rs. 2.60 Lakhs has been recognized on such provision.

As at 31st March, 2017, the provision for expected credit loss on trade receivables has resulted in a decrease in the carrying amount of these receivables by Rs. 19.13 Lakhs. On such provision, net loss amounting to Rs. 10.72 Lakhs has been recognised in other expenses in the Statement of Profit and Loss. Deferred Tax Liability of Rs.5.91 Lakhs has been recognized on such loss.

Note 2: Amortisation of Loan Processing Fees

Under previous GAAP, upfront fee paid to the lenders is charged to statement of profit and loss as and when incurred. However, Ind AS - 109 “Financial instruments” requires long term debt to be recognised at amortised cost and upfront fees are charged on the basis of effective interest rate method. The difference resulting from the said treatment has been adjusted against retained earnings as at the date of transition.

Note 3: Share issue expenses

Under Previous GAAP, Share issue expenses were written off in profit & loss on a systematic basis. Under Ind AS, Share issue expenses are do not meet the asset recognition criteria i.e. probability of future expected economic benefit. On the date of transition to Ind AS, derecognition of Share issue expenses has resulted in a decrease retained earnings (Other Equity) by Rs 2.73 Lakhs. Deferred Tax Liability of Rs. 0.84 Lakhs has been recognized on the same.

Note 4: Deferred Tax

Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or through other comprehensive income.

Note 5: Remeasurements of post-employment benefit obligations

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

Note 6: Excise Duty

Under the IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs. 555.47 Lakhs. There is no impact on the total equity and profit.

III. Adjustments to Statement of Cash Flows for the year ended 31st March, 2017

There were no material differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP.

Subdivision of Equity Shares

(i) During the year the equity shares of the Company having the face value of Rs. 10 (Rupees ten only) each were subdivided into 10 (ten) equity shares having a face value of Rs. 2 (Rupees two only) each. Accordingly 7848900 equity shares of face value of Rs. 10 each were sub divided into 39244500 equity shares of face value of Rs. 2 each.

1. 31st March 2018 Vehicle loans against hypothication of vehicles itself from Yes Bank at 8.70% interest rate p.a. repayable in 36 equal monthly installment and HDFC Bank at 8.60% interest rate repayable in 60 equal monthly installment.

2. 31st March 2017 Vehicle loans against hypothecation of vehicles itself from Yes Bank at 8.70% interest rat p.a. repayable in 36 equal monthly installments.

3. 1st April 2016 Term Loan from HDFC bank, secured by hypothecation of Plant & Machinery and Colateral security of Land & Building located at Suervey No. 1482, Himatpura (Bilodra), Ta: Mansa, Dist: Gandhinagar.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments Fair Value of Financial Assets & Liabilities measured at amortised cost

- The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

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

2. Financial Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to.

Credit Risk Management

Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal credit rating is performed on for each class of financial instruments with different characteristics.

The company is making provision on Trade Receivables based on Expected Credit Loss Model (ECL).

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the Company in accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit or loss.

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Market Risk Management Foreign Currency Risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

Cash flow and fair value interest rate risk

The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2018 and 31 March 2017, the Company’s borrowings at variable rate were mainly denominated in INR.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

3. Capital Management

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity’ (as shown in the balance sheet).

4. Segment information

In line with Ind AS 108 operating segments and basis of the review of operations being done by the senior management, the operations of the group falls under Agro Chemicals business which is considered to be the only reportable segment by the management.. The Company is principally engaged in a single business segment viz., “Agro-Chemicals” which is also the major revenue generating product.

5. Information about Major Customers:

Revenue from transactions with a single customer exceeds 10 percent or more of entity’s revenues with two customers.

Defined Benefits Plan

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following table sets out the amounts recognised in the company’s financial statements based on actuarial valuations being carried out as at 31st March 2018.

6. Previous year’s figures have been rearranged and reclassified wherever necessary to correspond with the current year.

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Mar 31, 2016

1 Company''s Overview:

Super Crop Safe Limited ("The Company") was incorporated on 9^th February, 1987 vide Corporate Identification No: L24231GJ1987PLC009392 under the Companies Act, 1956. The Company is engaged in the business of manufacturing and trading of agro-chemicals.

2 The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

3 All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties. In the absence of information available with the Company regarding status of the suppliers being Micro, small and Medium Enterprise, we are unable to furnish details as per section 22 of MSMED Act, 2006 for dues included in Trade Payables, if any.

4 Directors'' Remuneration

The Company is advised that the computation of net profit under section 197 of the Companies Act 2013 need not be made, since no commission is paid / payable to any director for the year ended 31st March, 2016.

5 As the Company''s business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17-Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

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Mar 31, 2015

1. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 344640.05.

3. All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties. In the absence of information available with the company regarding status of the suppliers being Micro, small and Medium Enterprise, we are unable to furnish details as per section 22 of MSMED Act, 2006 for dues included in Trade Payables, if any.

4. As the Company's business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17-Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

5. RELATED PARTY DISCLOSURE

1. LIST OF RELATED PARTIES AND RELATIONS:

Name of Related Party Nature of Relationship

Ishwarbhai Patel Managing Director

Nitin I Patel Director

Bhupendra A. Patel Son of a Director

Gopinath Packaging Controlling int. by directors' relative

Super Industries Controlling int. by director

Pioneer Pesticides Ind. Controlling int. by directors' relative

VIP Industries Controlling int. by directors' relative

Gopinath Plastic Packaging Controlling int. by directors' relative

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Mar 31, 2014

1 The above Cash Flow Statement has been prepared under the Indirect Method as set in the Accounting Standard-3 on Cash Flow Statements issued by the institute of Chartered Accountant of India.

2 Cash & Cash equivalent of Rs. 13,18,747 as on 31st March, 2014, comprises of balances with Scheduled Banks in Current A/cs and deposit a/cs Rs. 7,02,336.14 and cash on hand Rs. 6,16,411.40.

3 Figures of previous year have been regrouped wherever necessary to conform to the current year''s figures.

4 The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

5 As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below :

6 All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties. In the absence of information available with the company regarding status of the suppliers being Micro, small and Medium Enterprise, we are unable to furnish details as per section 22 of MSMED Act, 2006 for dues included in Trade Payables, if any.

The company is advised that the computation of net profit under section 349 of the Company''s Act 1956 need not be made, since no commission is paid / payable to any director for the year ended 31st March, 2014.

7 As the Company''s business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17-Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

8. RELATED PARTY DISCLOSURE

1. LIST OF RELATED PARTIES AND RELATIONS:

Name of Related Party Nature of Relationship

Ishwarbhai Patel Managing Director

Nitin I Patel Director

Bhupendra A. Patel Son of a Director

Gopinath Packaging Controlling int. by directors'' relative

Super Industries Controlling int. by director

Pioneer Pesticides Ind. Controlling int. by directors'' relative

VIP Industries Controlling int. by directors'' relative

Gopinath Plastic Packaging Controlling int. by directors'' relative

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Mar 31, 2013

1 The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties. In the absence of information available with the company regarding status of the suppliers being Micro, small and Medium Enterprise, we are unable to furnish details as per section 22 of MSMED Act,2006 for dues included in Trade Payables, if any.

3 All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties.

4 DISCLOSURES UNDER ACCOUNTING STANDARDS:

(a) BORROWING COSTS: Rs. Nil

Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalised as part of cost of such assets, all other borrowing costs are recognized as an expense in the period in which those are incurred.

(b) As the Company''s business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17-Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

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Mar 31, 2012

1. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. SECURED LOANS:

Vehicle Loans from Banks are secured by way of hypothecation of Vehicles acquired out of the said loan.

Working Capital Loans from banks are secured by hypothecation of the Company's stock of raw materials, packing materials, finished goods and book debts and against personal fixed assets of the Director Shri Ambalal B. Patel

3. All Sundry Debits & Credits are as per books of account and are subject to confirmation by concerned parties.

4. DISCLOSURES UNDER ACCOUNTING STANDARDS:

(a) CAPITAL WORK IN PROGRESS:

Capital Work-in-Progress includes Formulation Building of Rs. 3,408,632 ACM Mill - Rs. 1,532,274

(b) BORROWING COSTS: Rs. Nil

Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalised as part of cost of such assets, all other borrowing costs are recognized as an expense in the period in which those are incurred.

(c) As the Company's business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17 - Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

(d) RELATED PARTY DISCLOSURES:

1. LIST OF RELATED PARTIES AND RELATIONS:

Name of Related Party Nature of Relationship

Nitin I Patel Director

Bhupendra A. Patel Son of a Director

Gopinath Packaging Controlling int. by directors' relative

Super Industries Controlling int. by director

Pioneer Pesticides Ind. Controlling int. by directors' relative

VIP Industries Controlling int. by directors' relative

Gopinath Plastic Packaging Controlling int. by directors' relative

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Mar 31, 2010

1. Previous years figures have been regrouped / rearranged wherever necessary to make them comparable with current years figures.

2. All Sundry Debits and Credits are as per books of account and are subject to confirmation by concerned parties.

The company is advised that the computation of net profit under section 349 of the Companys Act 1956 need not be made, since no commission is paid / payable to any director for the year ended 31st March, 2010.

3. ADDITIONAL INFORMATION :

Additional Information pursuant to provisions of paragraphs 3, 4C & 4D of part II of Schedule VI to the Companies Act, 1956. [As certified by the management]

4. (a) As per the records and information available with the company, we are unable to segregate small scale industrial undertaking units, hence we are unable to furnish such details.

5. DISCLOSURES UNDER ACCOUNTING STANDARDS :

(a) GOVERNMENT GRANTS : Rs. 200,000

Subsidy of Rs 200000 received from Government for testing equipments has been taken to revenue account in place of deducting from the gross value of the assets concerned in arriving at its book value. Depreciation on this assets of Rs 27820 has been claimed. On account of this Net profit is overstated by Rs. 172180

(b) BORROWING COSTS : Rs. Nil

Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalised as part of cost of such assets, all other borrowing costs are recognised as an expense in the period in which those are incurred

(c) As the Companys business activity falls within a single segment viz. Pesticides, the disclosure requirements of Accounting Standard (AS) 17-Segment reporting sued by the Institute of Chartered Accountants of India is not applicable.

(d) RELATED PARTY DISCLOSURES :

1. LIST OF RELATED PARTIES AND RELATIONS :

Name of Related Party Nature of Relationship

Nitin Patel Director

Bhupendra A. Patel Son of a Director

Gopinath Packaging Controlling int. by directors relative

Super Industries Controlling int. by directors relative

Pioneer Pesticides Industries Controlling int. by directors relative

VIP Industries Controlling int. by directors relative

(e) ACCOUNTING FOR TAXES ON INCOME :

(i) In accordance with Accounting Standard 22, "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, the Company has provided for the deffered tax during the year.

Notes :

1. The above Cash Flow Statement has been prepared under the Indirect Method as set in the Accounting Standard-3 on Cash Flow Statements issued by the institute of Chartered Accountant of lndia.

2. Cash & Cash equivalent of Rs. 4325110 as on 31st March 2010, comprises of balances with Scheduled Banks in Current A/cs and deposit A/c. Rs.1229613 and cash on hand Rs. 3095497

3. Figures of previous year have been regrouped wherever necessary to Confirm to the current years figures.