Notes to Accounts of Sharda Cropchem Ltd.

Mar 31, 2025

2.15 Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation.

The expense relating to a provision is presented in the
statement of profit and loss.

These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
Provision in respect of loss contingencies relating to
claims litigation, assessment, fines, penalties etc. are
recognised when it is probable that a liability has been
incurred, and the amount can be estimated reliably.

2.16 Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation, A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Company does not recognise a contingent liability
but discloses its existence in the standalone financial
statements.

A contingent asset is not recognised unless it becomes
virtually certain that an inflow of economic benefits will

arise. When an inflow of economic benefits is probable,
contingent assets are disclosed in the standalone
financial statements.

Contingent liabilities and contingent assets are
reviewed at each balance sheet date.

2.17 Employee benefit expenses

Employee benefits consist of contribution to provident
fund, gratuity fund and compensated absences.

Post-employment benefit plans
Defined Contribution plans

Payments to defined contribution retirement benefit
scheme for eligible employees in the form of provident
fund are charged as an expense as they fall due. Such
benefits are classified as Defined Contribution Schemes
as the Company does not carry any further obligations,
apart from the contributions made.

Defined benefit plans

The Company operates defined benefit plans - gratuity
fund.

The liability recognised in the balance sheet in respect
of its defined benefit plans is the present value of the
defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the said obligation is determined
by discounting the estimated future cash outflows,
using market yields of government bonds that have
tenure approximating the tenures of the related liability.
The interest income / (expense) are calculated by
applying the discount rate to the net defined benefit
liability or asset. The net interest income / (expense) on
the net defined benefit liability or asset is recognised in
the Standalone Statement of Profit and loss.
Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are
included in retained earnings in the Standalone Statement
of Changes in Equity and in the Standalone Balance Sheet.
Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or
loss as past service cost.

Short-term employee benefit

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits. Short term employee benefits
are recognised as an expense at the undiscounted
amount in the statement of profit and loss of the year in
which the related service is rendered.

Provision for compensation absence is determined on
the basis of leave credit balance of individual employee
as at year end and last drawn salary and is charged to
statement of profit and loss for the year.

2.18 Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets

Initial recognition and initial measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI), and
fair value through profit or loss. The classification of
financial assets at initial recognition depends on the
financial asset’s contractual cash flow characteristics
and the Company’s business model for managing
them. The Company initially measures a financial asset
at its fair value plus transaction cost, in the case of a
financial asset not at fair value through profit or loss.
Classification and subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:

- Debt instruments at amortised cost

- Debt instruments at fair value through other
comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)

- Equity instruments

Debt instruments at amortised cost

A ''debt instrument’ is measured at the amortised cost if
both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in finance income in the statement of profit and loss.
The losses arising from impairment are recognised in
the statement of profit and loss.

Debt instrument at FVTOCI

A ''debt instrument’ is classified as at the FVTOCI if both
of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

b) The asset’s contractual cash flows represent solely
payments of principle & interest ( SPPI ).

Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised in
the other comprehensive income (OCI). However, the
Company recognises interest income, impairment
losses & reversals and foreign exchange gain or loss in
the statement of profit and loss. On derecognition of the
asset, cumulative gain or loss previously recognised in
OCI is reclassified from equity to the statement of profit
and loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR
method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortised cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred
to as ''accounting mismatch’). The Company has not
designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the statement of profit and loss.

Equity investments

Investments in subsidiaries and associates are carried
at cost. All other equity investments in scope of Ind
AS 109 are measured at fair value. Equity instruments
which are held for trading and contingent consideration
recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL. For
all other equity instruments, the Company may make an
irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The
Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the

OCI. There is no recycling of amounts from OCI to the
statement of profit and loss, even on sale of investment.
However, the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the
Company’s balance sheet) when:

- The rights to receive cash flows from the asset
have expired, or

- The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
''pass-through’ arrangement and either

(a) the Company has transferred substantially
all the risks and rewards of the asset, or

(b) the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset but has transferred
control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained
substantially all the risks and rewards of the asset, nor
transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of the
Company’s continuing involvement. In that case, the
Company also recognises an associated liability.

The transferred asset and the associated liability
are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt

securities, deposits, trade receivables and bank
balance

b) Financial assets that are debt instruments and are
measured as at FVTOCI

c) Trade receivables or any contractual right to
receive cash or another financial asset that
result from transactions that are within the
scope of Ind AS 115 (referred to as ''contractual
revenue receivables’ in these standalone financial
statements)

The Company follows ''simplified approach’ for
recognition of impairment loss allowance on:

- Trade receivables and

- Other receivables

The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance
based on lifetime ECLs at each reporting date,
right from its initial recognition.

For recognition of impairment loss on other
financial assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL
which results from default events that are possible
within 12 months after the reporting date.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. When estimating
the cash flows, an entity is required to consider:

- All contractual terms of the financial
instrument (including prepayment, extension,
call and similar options) over the expected life
of the financial instrument. However, in rare
cases when the expected life of the financial
instrument cannot be estimated reliably, then
the entity is required to use the remaining

contractual term of the financial instrument.

- Cash flows from the sale of collateral held or
other credit enhancements that are integral
to the contractual terms.

- Financial assets measured as at amortised
cost and contractual revenue receivables:
ECL is presented as an allowance, i.e., as an
integral part of the measurement of those
assets in the balance sheet. The allowance
reduces the net carrying amount. Until the
asset meets write-off criteria, the Company
does not reduce impairment allowance from
the gross carrying amount.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company’s financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts and derivative financial instruments.
Subsequent measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. This
category also includes derivative financial instruments
entered into by the Company that are not designated as
hedging instruments in hedge relationships as defined
by Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement of profit
and loss.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the standalone balance
sheet if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

2.19 Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant
risk of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted for
withdrawal and usage.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the
Company’s cash management.

2.20 Dividend to Equity shareholders

The Company recognises a liability to make cash
distributions to equity holders when the distribution
is authorised, and the distribution is no longer at the
discretion of the Company.

2.21 Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. Earnings
considered in ascertaining the Company’s earnings per
share are the net profit for the year attributable to equity
shareholders.

For the purpose of calculating diluted earnings per share,
the net profit or loss after tax for the period attributable to
equity shareholders and the weighted average number of
equity shares outstanding during the year is adjusted for
the effects of all dilutive potential equity shares, except
where the results would be anti-dilutive.

2.22 Segment reporting

Based on "Management Approach" as defined in Ind AS
108 -Operating Segments, the Chief Operating Decision
Maker evaluates the Company’s performance and
allocates the resources based on an analysis of various
performance indicators by business segments. Inter
segment sales and transfers are reflected at market
prices.

Segment revenue, segment expenses, segment assets
and segment liabilities have been identified to segments
based on their relationship to the operating activities of
the segment. Inter segment revenue is accounted based
on transactions which are primarily determined based
on market / fair value factors. Revenue, expenses, assets
and liabilities which relate to the Company as a whole
and are not allocable to segments on a reasonable
basis have been included under "unallocated revenue /
expenses / assets / liabilities".

2A. Critical accounting judgements and key sources of
estimation uncertainty

The preparation of the standalone financial statements
in conformity with the Ind AS requires management to
make judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities and disclosures as at date
of the standalone financial statements and the reported
amounts of the revenues and expenses for the years
presented. The estimates and associated assumptions
are based on historical experience and other factors
that are relevant. Actual results may differ from these
estimates under different assumptions and conditions.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that
period, or in the period of the revision and future periods
if the revision affects both current and future periods.

(i) Critical Judgements

In the process of applying the Company’s
accounting policies, management has made
the following judgements, which have the most
significant effect on the amounts recognised in

Contingences and commitments

In the normal course of business, contingent
liabilities may arise from litigations and other
claims against the Company. Where the potential
liabilities have a low probability of crystallising
or are very difficult to quantify reliably, these are
considered as contingent liabilities. Such liabilities
are disclosed in the notes but are not provided for
in the standalone financial statements. Although
there can be no assurance regarding the final
outcome of the legal proceedings, these are not
expected to have a materially adverse impact on
our financial position or profitability.

(ii) Key sources of estimation uncertainty

The key assumptions concerning the future and
other key sources of estimation uncertainty at
the reporting date, that have a significant risk of
causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year, are described below.

Taxes

There are many transactions and calculations
undertaken during the ordinary course of business
for which the ultimate tax determination is
uncertain. Where the final tax outcome of these
matters is different from the amounts initially
recorded, such differences will impact the current
and deferred tax provisions in the period in which
the tax determination is made. The assessment of
probability involves estimation of several factors
including future taxable income.

Defined benefit plans (gratuity benefits)

A liability in respect of defined benefit plans is
recognised in the balance sheet and is measured
as the present value of the defined benefit
obligation at the reporting date less the fair value
of the plan’s assets. The present value of the
defined benefit obligation is based on expected
future payments at the reporting date, calculated
annually by independent actuaries. Consideration
is given to expected future salary levels, experience
of employee departures and periods of service.
Impairment of financial assets
The Company assesses impairment based on
expected credit losses (ECL) model on trade
receivables. The Company uses a provision matrix
to determine impairment loss allowance on the
portfolio of trade and other receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade and

other receivable and is adjusted for forward looking
estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analysed.
Impairment of non- financial assets
The Company assesses at each reporting date
whether there is an indication that an asset may
be impaired. If any indication exists, or when
annual impairment testing for an asset is required,
the Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the
higher of an asset’s fair value less costs of disposal
and its value in use. It is determined for an individual
asset, unless the asset does not generate cash
inflows that are largely independent of those from
other assets or group of assets. Where the carrying
amount of an asset exceeds its recoverable
amount, the asset is considered impaired and
is written down to its recoverable amount. In
assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessment of the time value of money and the risk
specific to the asset. In determining fair value less
cost of disposal, recent market transactions are
taken into account. If no such transactions can be
identified, an appropriate valuation model is used.
Provision against obsolete and slow-moving
inventories

The Company reviews the condition of its inventories
and makes provision against obsolete and slow-
moving inventory items which are identified as no
longer suitable for sale or use. Company estimates
the net realisable value for such inventories based
primarily on the latest invoice prices and current
market conditions. The Company carries out an
inventory review at each balance sheet date and
makes provision against obsolete and slow-moving
items. The Company reassesses the estimation on
each balance sheet date.

Useful lives of property, plant and equipment
The Company reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change in
depreciation expense in future periods.

Liability for sales return

In making judgment for liability for sales return,
the management considered the detailed criteria
for the recognition of revenue from the sale of
goods set out in Ind AS 115 and in particular,
whether the Company had transferred to the buyer
the significant risk and rewards of ownership of
the goods. Following the detailed quantification
of the Company’s liability towards sales return,
the management is satisfied that significant
risk and rewards have been transferred and that
recognition of the revenue in the current year is
appropriate, in conjunction with the recognition of
an appropriate liability for sales return.

Accruals for estimated product returns, which
are based on historical experience of actual sales
returns and adjustment on account of current
market scenario is considered by Company to be
reliable estimate of future sales returns.

(iii) Recent accounting pronouncement

¦ Standards issued but not yet effective

The Company has applied all Indian
Accounting Standards (Ind AS) and
amendments effective for the financial year
ended 31 March, 2025, as notified by the
Ministry of Corporate Affairs (MCA). The
following amendments, effective for annual
reporting periods beginning on or after 01
April, 2024, were assessed and determined
to have no material impact on the Company’s
financial statements due to the nature of its
operations:

Amendments to Ind AS 116 (Leases) related
to sale and leaseback transactions.
Amendments to Ind AS 107 (Financial
Instruments: Disclosures) related to supplier
finance arrangements.

Amendments to Ind AS 1 (Presentation of
Financial Statements) related to classification
of liabilities as current or non-current.

As of the date of authorisation of these
financial statements, no new standards or
amendments have been issued by the MCA
that are not yet effective for the financial year
ended 31 March, 2025. The Company will
continue to monitor developments in Ind AS
and assess their impact on future financial
statements.

There are no specific MCA notifications or
ICAI announcements that indicate new Ind
AS standards or amendments issued with
an effective date beyond 01 April, 2025, that
would apply to 2025-26 or later.

Capital Reserve -

The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company’s own equity instruments to
capital reserve.

Securities Premium -

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the
premium received on those shares shall be transferred to "Securities Premium". The Company may issue fully paid-up bonus
shares to its members out of the securities premium and the Company can use this for buy-back of shares.

General Reserve -

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit
and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

Retained earnings -

The amount represent profits that can be distributed by the Company as dividends to its equity shareholders.

iii) In February 2019, the Supreme Court of India in its judgement clarified the applicability of allowances that should be
considered to measure obligations under Employees Provident Fund Act, 1952. The Company is opined that there are
interpretative challenges on the application of judgement retrospectively and as such does not consider there is any
probable obligations for past periods. The Company has complied with the Employees Provident Fund Act, 1952 from the
date of the Supreme Court order.

32. | SEGMENT INFORMATION

The consolidated financial statements of the Company contains segment information as per IND AS 108 - Operating Segments
accordingly separate information is not included in the Standalone financial statement.

33. | REVENUE FROM CONTRACTS WITH CUSTOMER (IND AS 115)

The Company is primarily in the business of export of agrochemicals (technical grade and formulations) and non-agro products
such as conveyor belts, rubber belts / sheets, dyes and dye intermediates to various countries across the world. The revenue
is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery. The Company has a
credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give
significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement
of the damaged goods.

Terms and conditions of transactions with related parties

The sales to and purchases of goods and services from related parties are made on terms equivalent to those that
prevail in arm’s length transactions and are in compliance with the provisions of Companies Act and SEBI Regulations.
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been
no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each
financial year through examining the financial position of the related party and the market in which the related party
operates.

35. | HEDGING ACTIVITIES AND DERIVATIVES
Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange
forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency
exposure of the underlying transactions.

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected
sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit
or loss.

The management assessed that cash and cash equivalents, trade receivables, trade payables, other financial liabilities and
other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices and/ or NAV. This includes listed
equity instruments, traded bonds and mutual funds that have quoted price and/ or NAV declared by the funds. The fair value
of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the
reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Technique used to determine Fair Value:-

The following table shows the valuation techniques used in measuring Level 2 fair values for financial instruments at fair value
in the balance sheet:

37. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is
to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to
mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual
characteristic of each customer.

Market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and
purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign
exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate
between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in
the future. Consequently, the results of the Company’s operations are adversely affected as the rupee appreciates / depreciates
against these currencies.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a foreign currency) and the Company’s net investments in
foreign subsidiaries.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange
contracts (refer note 35).

The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the
reporting period are as follows:

Liquidity Risk

The 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 of 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 damages to the Company’s reputation. The Company
monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade
payables & other financial liabilities.

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flows that are generated from
operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no
liquidity risk is perceived.

As of 31 March, 2025, the Company had a working capital of '' 1,44,315.43 Lakhs including cash and cash equivalents of
'' 6,447.24 Lakhs and current investments of '' 29,432.73 Lakhs. As of 31 March, 2024, the Company had a working capital of
'' 1,24,798.44 Lakhs including cash and cash equivalents of '' 3,282.17 Lakhs and current investments of '' 15,889.87 Lakhs.

38. | CAPITAL MANAGEMENT

The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support
the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term
and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.
The capital structure of the Company consists of net asset and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

45. | DISCLOSURE FOR ULTIMATE BENEFICIARIES

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities("lntermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with
the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by
or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

46. | OTHER MATTERS

i) The Company does not have any Benami property, where any proceeding has been initiated or is pending against the
Company, for holding any Benami property.

ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond
the statutory period.

iv) The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of The Companies Act
read with the Companies ( Restriction on number of layers) Rules, 2017.

v) The Company does not have any such transaction which is not recorded in the Books of Accounts that has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such as

Search or Survey or any other relevant provisions of the Income Tax Act, 1961

vi) As on 31 March, 2025 there is no unutilised amounts of any issue of securities and long term borrowings from banks and
financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

vii) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.

viii) The Company does not have any transactions with companies struck off.

For B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Sharda Cropchem Limited

Firm Registration No. 101248W/W-100022

Burjis Pardiwala Ramprakash V. Bubna Manish R. Bubna

Partner Chairman & Managing Director Whole-time Director

Membership No.: 103595 DIN 00136568 DIN 00137394

Shailesh A. Mehendale Jetkin Gudhka

Chief Financial Officer Company Secretary

Membership No.: A26487

Place: Mumbai Place: Mumbai Place: Mumbai

Date : 14 May, 2025 Date : 14 May, 2025 Date : 14 May, 2025

---

Mar 31, 2024

2.15 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The expense relating to a provision is presented in the statement of profit and loss.

These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provision in respect of loss contingencies relating to claims litigation, assessment, fines, penalties etc. are recognised when it is probable that a liability has been incurred, and the amount can be estimated reliably.

2.16 Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation, A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.

The Company does not recognise a contingent liability but discloses its existence in the standalone financial statements.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of economic benefits is probable, contingent assets are disclosed in the standalone financial statements.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.17 Employee benefit expenses

Employee benefits consist of contribution to provident fund, gratuity fund and compensated absences.

Post-employment benefit plans

Defined Contribution plans

Payments to defined contribution retirement benefit scheme for eligible employees in the form of provident fund are charged as an expense as they fall due. Such benefits are classified as Defined Contribution

Schemes as the Company does not carry any further obligations, apart from the contributions made.

Defined benefit plans

The Company operates defined benefit plans - gratuity fund.

The liability recognised in the balance sheet in respect of its defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the said obligation is determined by discounting the estimated future cash outflows, using market yields of government bonds that have tenure approximating the tenures of the related liability. The interest income / (expense) are calculated by applying the discount rate to the net defined benefit liability or asset. The net interest income / (expense) on the net defined benefit liability or asset is recognised in the Standalone Statement of Profit and loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Standalone Statement of Changes in Equity and in the Standalone Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Short-term employee benefit

All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits. Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

Provision for compensation absence is determined on the basis of leave credit balance of individual employee

as at year end and last drawn salary and is charged to statement of profit and loss for the year.

2.18 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and initial measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. The Company initially measures a financial asset at its fair value plus transaction cost, in the case of a financial asset not at fair value through profit or loss. Classification and subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories:

- Debt instruments at amortised cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss

(fvtpl)

- Equity instruments

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss.

Debt instrument at FVTOCI

A ''debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset’s contractual cash flows represent solely payments of principle & interest ( SPPI ).

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to the statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortised cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch’). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Equity investments

Investments in subsidiaries and associates are carried at cost. All other equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of amounts from OCI to the statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through’ arrangement; and either

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

b) Financial assets that are debt instruments and are measured as at FVTOCI

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115 (referred to as ''contractual revenue receivables'' in these standalone financial statements)

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

- Trade receivables and

- Other receivables

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to

use the remaining contractual term of the financial instrument.

- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

- Financial assets measured as at amortised cost and contractual revenue receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are

also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

2.19 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be

cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.20 Dividend to Equity shareholders

The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Company.

2.21 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share are the net profit for the year attributable to equity shareholders.

For the purpose of calculating diluted earnings per share, the net profit or loss after tax for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares, except where the results would be anti-dilutive.

2.22 Segment reporting

Based on "Management Approach" as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices.

Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments based on their relationship to the operating activities of the segment. Inter segment revenue is

accounted based on transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on a reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

2A. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the standalone financial statements in conformity with the Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the standalone financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates under different assumptions and conditions.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

(i) Critical Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements: Contingences and commitments In the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where the potential liabilities have a low probability of crystallising or are very difficult to quantify reliably, these are considered as contingent liabilities. Such liabilities

are disclosed in the notes but are not provided for in the standalone financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings, these are not expected to have a materially adverse impact on our financial position or profitability.

(ii) Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

Taxes

There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. Where the final tax outcome of these matters is different from the amounts initially recorded, such differences will impact the current and deferred tax provisions in the period in which the tax determination is made. The assessment of probability involves estimation of several factors including future taxable income.

Defined benefit plans (gratuity benefits)

A liability in respect of defined benefit plans is recognised in the balance sheet and is measured as the present value of the defined benefit obligation at the reporting date less the fair value of the plan’s assets. The present value of the defined benefit obligation is based on expected future payments at the reporting date, calculated annually by independent actuaries. Consideration is given to expected future salary levels, experience of employee departures and periods of service. Impairment of financial assets The Company assesses impairment based on expected credit losses (ECL) model on trade receivables. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade and other receivables.

The provision matrix is based on its historically observed default rates over the expected life of the trade and other receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

Impairment of non- financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risk specific to the asset. In determining fair value less cost of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Provision against obsolete and slow-moving inventories

The Company reviews the condition of its inventories and makes provision against obsolete and slow-moving inventory items which are identified as no longer suitable for sale or use. Company estimates the net realisable value for such inventories based primarily on the latest invoice prices and current market conditions. The Company carries out an inventory review at each balance sheet date and makes provision against

obsolete and slow-moving Items. The Company reassesses the estimation on each balance sheet date.

Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Liability for sales return

In making judgment for liability for sales return, the management considered the detailed criteria for the recognition of revenue from the sale of goods set out in Ind AS 115 and in particular,

whether the Company had transferred to the buyei the significant risk and rewards of ownership ol the goods. Following the detailed quantification of the Company''s liability towards sales return the management is satisfied that significanl risk and rewards have been transferred and thal recognition of the revenue in the current year is appropriate, in conjunction with the recognition ol an appropriate liability for sales return.

Accruals for estimated product returns, which are based on historical experience of actual sales returns and adjustment on account of currenl market scenario is considered by Company to be reliable estimate of future sales returns.

Capital Reserve -

The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve.

Securities Premium -

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium". The Company may issue fully paid-up bonus shares to its members out of the securities premium and the Company can use this for buy-back of shares.

General Reserve -

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

i) In respect to the income tax liability mentioned above, the demands have arisen on account of disallowance of a claim made by the Company (common for all years) which has been settled and allowed in favour of the Company by the Hon''ble ITAT, Mumbai for the earlier years. Therefore, the management is of the opinion that the contingent liabilities would not have an adverse impact on the Company in view of the favourable decisions given by the higher authorities in the Company''s own case as mentioned above. Further, for FY 2014-15 (AY 2015-16), the Company has considered '' 90.61 Lakhs as contingent liability as in view of the management, the Company has a refund of '' 1,340.48 Lakhs as per the return of income filed and once the issue is decided in favour of the Company for the respective year, the Company will be entitled to a refund of '' 1,340.48 Lakhs along with the applicable interest.

ii) In respect of service tax matter, CESTAT has passed order in favour of the company in the month of July 2023, against said order the department has preferred an appeal benfore the High Court, Mumbai. The Company does not expect the outcome of the matter stated above to have a material adverse effect on the Company''s financial condition, result of operations or cash flows.

iii) In February 2019, the Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. The Company is opined that there are interpretative challenges on the application of judgement retrospectively and as such does not consider there is any probable obligations for past periods. The Company has complied with the Employees Provident Fund Act, 1952 from the date of the Supreme Court order.

32. | SEGMENT INFORMATION

The consolidated financial statements of the Company contains segment information as per IND AS 108 - Operating Segments accordingly separate information is not included in the Standalone financial statement.

’ 33. | REVENUE FROM CONTRACTS WITH CUSTOMER (IND AS 115)

The Company is primarily in the business of export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts / sheets, dyes and dye intermediates to various countries across the world. The revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods.

a. During the year ended 31 March, 2018, the Company entered into a Memorandum of Understanding (''MOU'') with other shareholders of Sharda Private (Thailand) Limited (an Associate Company). In terms of the said MOU dated 10 November, 2017, the Company has gained 100% control over Sharda Private (Thailand) Limited as the other shareholders shall not be entitled to participate in the profits / losses of the said Company and do not have any decision making powers as well. Thus, the said Company has been treated as a subsidiary Company w.e.f. 10 November, 2017 in the consolidated financial results of the Company for and from the year ended 31 March, 2019 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

b. During the year ended 31 March, 2021, the Company entered into a Memorandum of Understanding (''MOU'') with other shareholders of Sharda Impex Trading LLC (an Associate Company). In terms of the said MOU dated March 17, 2021, the Company has gained 100% control over Sharda Impex Trading LLC as the other shareholders shall not be entitled to participate in the profits / losses of the said Company and do not have any decision making powers as well. Thus, the said Company has been treated as a subsidiary Company w.e.f. March 17, 2021 in the consolidated financial results of the Company for the year ended 31 March, 2021 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

Terms and conditions of transactions with related parties

The sales to and purchases of goods and services from related parties are made on terms equivalent to those that prevail in arm’s length transactions and are in compliance with the provisions of Companies Act and SEBI Regulations. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

35. | HEDGING ACTIVITIES AND DERIVATIVES Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions.

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

37. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates / depreciates against these currencies.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts (refer note 35).

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial Ioss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 1,46,264.91 Lakhs and '' 1,67,455.98 Lakhs as of 31 March, 2024 and 31 March, 2023 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company 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.

Trade Receivables

The Company has established credit policy under which each new customer is analysed individually for credit worthiness before Company''s standard payment terms (credit period ranges from 30 to 180 days) and delivery terms and conditions are offered. The Company reviews external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.

The 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 of 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 damages to the Company''s reputation. The Company monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables & other financial liabilities.

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flows that are generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31 March, 2024, the Company had a working capital of '' 1,24,798.44 Lakhs including cash and cash equivalents of '' 3,282.17 Lakhs and current investments of '' 15,889.87 Lakhs. As of 31 March, 2023, the Company had a working capital of '' 1,06,872.23 Lakhs including cash and cash equivalents of '' 8,393.03 Lakhs and current investments of '' 3,190.29 Lakhs.

38. | CAPITAL MANAGEMENT

The Company''s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The capital structure of the Company consists of net asset and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

46. | DISCLOSURE FOR ULTIMATE BENEFICIARIES

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities(''lntermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

47. | OTHER MATTERS

i) The Company does not have any Benami property, where any proceeding has been initiated or is pending against the Company, for holding any Benami property.

ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

iv) The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of The Companies Act read with the Companies ( Restriction on number of layers) Rules, 2017.

v) The Company does not have any such transaction which is not recorded in the Books of Accounts that has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such as

Search or Survey or any other relevant provisions of the Income Tax Act, 1961

vi) As on 31 March, 2024 there is no unutilised amounts of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

vii) The company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.

48. | PREVIOUS YEAR COMPARATIVE

The figures for the previous year have been regrouped / reclassified to correspond with the current year''s classification / disclosures.

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Sharda Cropchem Limited

Firm Registration No. 101248W/W-100022

Burjis Pardiwala Ramprakash V. Bubna Ashish R. Bubna

Partner Chairman & Managing Director Whole-time Director

Membership No.: 103595 DIN 00136568 DIN 00945147

Shailesh A. Mehendale Jetkin Gudhka

Chief Financial Officer Company Secretary

Membership No.: A26487

Place: Mumbai Place: Mumbai

Date: 10 May, 2024 Date: 10 May, 2024 Date: 10 May, 2024

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Mar 31, 2023

The process of approval is known as ''Registration'' of the product and its form as an intangible asset of the Company. The process of registration involves identification of the product, basic and applied research, field trials, data generation, evaluation and approval by the authorities at each step. The nature of these processes makes it highly unpredictable in terms of cost as well as timeline. The timeline can vary for 6 months to 8 years approx. The varying demand from the authorities during the process of registration also adds to the uncertainty of cost and timeline. As of 31 March, 2023, there are 1,143 (31 March, 2022: 1130) product registrations (numbers) in pipeline across geographies.

Terms / rights attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regards to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Capital Reserve -

The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company’s own equity instruments to capital reserve.

Securities Premium -

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium". The Company may issue fully paid-up bonus shares to its members out of the securities premium and the Company can use this for buy-back of shares.

General Reserve -

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

29. | EMPLOYEE BENEFITS - EMPLOYMENT BENEFIT PLANS a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund and ESI which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to statement of profit and loss as they accrue.

b) Defined benefit plans

The Company operates one post-employment defined benefit plan that provides gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month’s salary for each year of completed service at the time of retirement. In case of employees completing longer service periods, the Company’s scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972.

31. CONTINGENT LIABILITIES		('' Lakhs)
	As at 31 March, 2023	As at 31 March, 2022
Income tax matters (refer note (i) below)	6,703.71	6,703.71
Service tax matter (refer note (ii) below)	785.14	785.14
Total	7,488.85	7,488.85

Note:

i) In respect to the income tax liability mentioned above, the demands have arisen on account of disallowance of a claim made by the Company (common for all years) which has been settled and allowed in favour of the Company by the Hon’ble ITAT, Mumbai for the earlier years. Therefore, the management is of the opinion that the contingent liabilities would not have an adverse impact on the Company in view of the favourable decisions given by the higher authorities in the Company’s own case as mentioned above. Further, for 2014-15 (AY 2015-16), the Company has considered '' 90.61 Lakhs as contingent liability as in view of the management, the Company has a refund of '' 1,340.48 Lakhs as per the return of income filed and once the issue is decided in favour of the Company for the respective year, the Company will be entitled to a refund of '' 1,340.48 Lakhs along with the applicable interest.

ii) Future cash flows, if any, in respect of Service tax matter is determinable only on receipt of the 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 condition, result of operations or cash flows.

iii) In February 2019, the Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. The Company is opined that there are interpretative challenges on the application of judgement retrospectively and as such does not consider there is any probable obligations for past periods. The Company has complied with the Employees Provident Fund Act, 1952 from the date of the Supreme Court order.

(iv) During March 2022, the Company had voluntarily paid / reversed GST ITC Credit ''Under Protest’ aggregating to '' 3,678.73 Lakhs and disclosed the same as recoverable. The Company has received refund of '' 2,823.38 Lakhs in September, 2022 and believes that the amount of '' 855.35 Lakhs is refundable based of legal advise obtained from an eminent expert.

32. | SEGMENT INFORMATION

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment. All other expenses or income which are not attributable or allocable to segments have been disclosed as unallocable expenses.

(i) The business of the Company is divided into two business segments. These segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:

a) Agrochemicals - This is the main area of the Company’s operation and includes the trading of agrochemical products.

b) Non-agrochemicals - Trading of products such as conveyor belts and rubber belts / sheets.

(ii) Segment Revenue in the above segments includes sales of products net of taxes.

(iii) Inter Segment Revenue is taken as comparable third party average selling price for the year.

(iv) Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India.

b) Revenue outside India is further bifurcated into Europe, North American Free Trade Agreement (NAFTA), Latin America (LATAM) and Rest of the World (ROW).

(v) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

(vi) The Company does not have any customer (including related parties), with whom revenue from transactions is more than 10% of Group’s total revenue during the year.

(vii) Based on the "management approach" defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company’s performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along these segments.

Geographical information

The geographical information analyses the Company’s revenues and non-current assets by the Company’s country of domicile (i.e. India) and other geographic locations. In presenting the geographical information, segment revenue are based on the geographic location of customers and segment assets are based on the geographical locations of the assets. It is bifurcated

33. | REVENUE FROM CONTRACTS WITH CUSTOMER (IND AS 115)

The Company is primarily in the business of export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts / sheets, dyes and dye intermediates to various countries across the world. The product shelf life being short, revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods.

a. During the year ended 31 March, 2018, the Company entered into a Memorandum of Understanding (''MOU'') with other shareholders of Sharda Private (Thailand) Limited (an Associate Company). In terms of the said MOU dated 10 November, 2017, the Company has gained 100% control over Sharda Private (Thailand) Limited as the other shareholders shall not be entitled to participate in the profits / losses of the said Company and do not have any decision making powers as well. Thus, the said Company has been treated as a subsidiary Company w.e.f. 10 November, 2017 in the consolidated financial results of the Company for and from the year ended 31 March, 2019 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

b. During the year ended 31 March, 2021, the Company entered into a Memorandum of Understanding (''MOU'') with other shareholders of Sharda Impex Trading LLC (an Associate Company). In terms of the said MOU dated 17 March, 2021, the Company has gained 100% control over Sharda Impex Trading LLC as the other shareholders shall not be entitled to participate in the profits / losses of the said Company and do not have any decision making powers as well. Thus, the said Company has been treated as a subsidiary Company w.e.f. 17 March, 2021 in the consolidated financial results of the Company for the year ended 31 March, 2021 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

c. Pursuant to order of Court, Sharda Polska SP Z..O.O was merged with Sharda Poland SP Z.O.O. w.e.f. 01 March, 2022.

d. Sharda Hellas Agrochemicals Limited was dissolved on 11 April, 2022.

Terms and conditions of transactions with related parties

The sales to and purchases of goods and services from related parties are made on terms equivalent to those that prevail in arm’s length transactions and are in compliance with the provisions of Companies Act and SEBI Regulations. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

35. | HEDGING ACTIVITIES AND DERIVATIVES Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions.

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

36. | FAIR VALUE MEASUREMENTS

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair level hierarchy.

The management assessed that cash and cash equivalents, trade receivables, trade payables, buyers credit and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The mutual funds are valued using the closing NAV.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Technique used to determine Fair Value:-

The following table shows the valuation techniques used in measuring Level 2 fair values for financial instruments at fair value in the balance sheet:

37. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are adversely affected as the rupee appreciates / depreciates against these currencies.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency) and the Company’s net investments in foreign subsidiaries.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts (refer note 35).

The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in US$ and EUR exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 1,67,455.98 Lakhs and '' 1,31,860.64 Lakhs as of 31 March, 2023 and 31 March, 2022 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company 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.

Trade Receivables

The Company has established credit policy under which each new customer is analysed individually for credit worthiness before Company’s standard payment terms (credit period ranges from 30 to 180 days) and delivery terms and conditions are offered. The Company reviews external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units. Loans represent loan given to related parties for which the Company does not foresee any impairment loss.

Liquidity Risk

The 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 of 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 damages to the Company’s reputation. The Company monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables & other financial liabilities.

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flows that are generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31 March, 2023, the Company had a working capital of '' 1,06,872.23 Lakhs including cash and cash equivalents of '' 8,393.03 Lakhs and current investments of '' 3,190.29 Lakhs. As of 31 March, 2022, the Company had a working capital of '' 98,375.14 Lakhs including cash and cash equivalents of '' 4,292.03 Lakhs and current investments of '' 13,439.50 Lakhs.

38. | CAPITAL MANAGEMENT

The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

The capital structure of the Company consists of net asset and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

i) Loans given are unsecured and repayable on demand. Loans have been given to meet their working capital requirements.

ii) During the previous year, the Company advanced a loan of '' 1,584.70 Lakhs (US$ 21.00 Lakhs) to Sharda International DMCC, a subsidiary company for business purpose in an arms’ length transaction which was repaid by the subsidiary during the previous year itself. The maximum amount outstanding during the previous year in respect of this loan was '' 1,586.62 Lakhs (US$ 21.03 Lakhs).

1) CSR activities were mainly undertaken towards promoting education, healthcare assistance, eradicating hunger and malnutrition, promoting sports and animal welfare.

2) Gross amount required to be spent by the Company is '' 676.61 Lakhs (31 March, 2022: '' 567.43 Lakhs) as per the provisions of Section 135 of the Companies Act, 2013.

3) The Company has spent '' 866.15 Lakhs during the current year. Excess amount spent of '' 189.54 Lakhs (31 March, 2022: '' 28.96 Lakhs)

4) For contribution made to related party refer note 34.

45. | STANDARDS ISSUED BUT NOT YET EFFECTIVE

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

On 31 March, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 01 April, 2023, as below:

a) IND AS 1 - Presentation of financial statements:

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

b) Ind AS 8 - Accounting policies, changes in accounting estimates and errors:

This amendment has introduced a definition of accounting estimates and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

b) Ind AS 12 - Income taxes:

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

None of these amendments are expected to have material impact on the financial statements of the Company.

46. | DISCLOSURE FOR ULTIMATE BENEFICIARIES

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

47. | OTHER MATTERS

i) The Company does not have any Benami property, where any proceeding has been initiated or is pending against the Company, for holding any Benami property.

ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii) The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

iv) The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of The Companies Act read with the Companies ( Restriction on number of layers) Rules, 2017.

v) The Company does not have any such transaction which is not recorded in the Books of Accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such as Search or Survey or any other relevant provisions of the Income Tax Act, 1961

vi) As on 31 March, 2023 there is no unutilised amounts of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

48. | PREVIOUS YEAR COMPARATIVE

The figures for the previous year have been regrouped / reclassified to correspond with the current year’s classification /

disclosures.

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Mar 31, 2022

(b) Terms/rights attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regards to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Capital Reserve -

The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve.

Securities Premium -

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium". The Company may issue fully paid-up bonus shares to its members out of the securities premium and the Company can use this for buy-back of shares.

General Reserve -

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up bonus shares.

|29.| EMPLOYEE BENEFITS - EMPLOYMENT BENEFIT PLANS

a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, and ESI which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to statement of profit and loss as they accrue.

i) In respect to the income tax liability mentioned above, the demands have arisen on account of disallowance of a claim by the Company (common for all years) which has been settled and allowed in favour of the Company by the Hon''ble ITAT, Mumbai for the earlier years, and therefore the management is of the opinion that the contingent liabilities would not have an adverse impact on the Company in view of the favourable decisions given by the higher authorities in the Company''s own case as mentioned above. Further, for FY 2014-15 (AY 2015-16), the Company has considered '' 90.61 Lakhs as contingent liability as in view of the management the Company has a refund of '' 1,340.48 Lakhs as per the return of income filed and once the issue is decided in favour of the Company for the respective year, the Company will be entitled to a refund of '' 1,340.48 Lakhs along with the applicable interest.

ii) Future cash flows, if any, in respect of Service tax matter is determinable only on receipt of the 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 condition, result of operations or cash flows.

iii) In February 2019, the Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure obligations under Employees Provident Fund Act, 1952. The Company is opined that there are interpretative challenges on the application of judgement retrospectively and as such does not consider there is any probable obligations for past periods. The Company has complied with the Employees Provident Fund Act, 1952 from the date of the Supreme Court order.

iv) During March 2022, the Company has voluntarily paid/ reversed GST ITC Credit ‘Under Protest'' aggregating to '' 3,678.72 Lakhs and disclosed the same as recoverable. The Company believes that the amount is refundable based on legal advice obtained from an eminent expert.

|32.| SEGMENT iNFORMATiON

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment. All other expenses or income which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Business segment of the Company primarily identified and reported taking into account, the different risks and returns, the organisation structure and the internal reporting systems are as follows:

Agrochemicals : Insecticides, Herbicides, Fungicides and Biocides

Belts : Conveyor Belts, V Belts and Timing Belts

(i) The business of the Company is divided into two business segments. These segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:

a) Agrochemicals - This is the main area of the Company''s operation and includes the trading of agrochemical products.

b) Belts - Trading of products such as conveyor belts and rubber belts/sheets

(ii) Segment Revenue in the above segments includes sales of products net of taxes.

(iii) Inter Segment Revenue is taken as comparable third party average selling price for the year

(iv) Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India.

b) Revenue outside India is further bifurcated into Europe, North American Free Trade Agreement (NAFTA), Latin America (LATAM) and Rest of the World (ROW).

(v) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

(vi) The Group does not have any customer (including related parties), with whom revenue from transactions is more than 10% of Group''s total revenue during the year.

(vii) Based on the "management approach" defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company''s performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along these segments.

Geographical information

The geographical information analyses the Company''s revenues and non-current assets by the Company''s country of domicile (i.e. India) and other geographic locations. In presenting the geographical information, segment revenue are based on the geographic location of customers and segment assets are based on the geographical locations of the assets. It is bifurcated between within India and Outside India.

|33.| REVENUE FROM CONTRACTS WITH CUSTOMER (IND AS 115)

The Company is primarily in the business of export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes and dye intermediates to various countries across the world. The product shelf life being short, revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch / delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods.

a. During the year ended 31 March, 2018 the Company entered into a Memorandum of Understanding (‘MOU'') with other shareholders of Sharda Private (Thailand) Limited (an Associate Company). In terms of the said MOU dated November 10, 2017 the Company has gained 100% control over Sharda Private (Thailand) Limited as the other shareholders shall not be entitled to participate in the profits/losses of the said company and do not have any decision making powers as well. Thus, the said company has been treated as a subsidiary company w.e.f. November 10, 2017 in the consolidated financial results of the Company for and from the year ended 31 March, 2019 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

b. During the year ended 31 March, 2021, the Company entered into a Memorandum of Understanding (‘MOU'') with other shareholders of Sharda Impex Trading LLC (an Associate Company). In terms of the said MOU dated 17 March, 2021 the Company has gained 100% control over Sharda Impex Trading LLC as the other shareholders shall not be entitled to participate in the profits / losses of the said company and do not have any decision making powers as well. Thus, the said company has been treated as a subsidiary company w.e.f. 17 March, 2021 in the consolidated financial results of the Company for the year ended 31 March, 2021 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

c) Persuant to order of Court Sharda Polska SP. Z..O.O was merged with Sharda Poland SP. Z.O.O. w.e.f 01 March, 2022.

Terms and conditions of transactions with related parties

The sales to and purchases of goods and services from related parties are made on terms equivalent to those that prevail in arm''s length transactions and are in compliance with the provisions of Companies Act and SEBI Regulations. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The management assessed that cash and cash equivalents, trade receivables, trade payables, buyers credit and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the- counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.The mutual funds are valued using the closing NAV.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

|37.| FiNANOiAL RiSK MANAGEMENT OBJEOTiVES AND POLiCiES Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates / depreciates against these currencies.

foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts (Refer note 35).

The movement in the pre-tax effect is a result of a change in the fair value of of monetary assets and liabilities denominated in US dollars, where the functional currency of the entity is a currency other than US dollars. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

Foreign currency sensitivity

With all other variables held constant , for the year ended 31 March, 2022 and 31 March, 2021, every percentage point depreciation/appreciation in the exchange rate between the Indian rupee and respective major currencies (viz.US$, EUR & CAD) pertaining to trade payables , trade receivables & capital creditors has affected the Company''s incremental profit before tax margins by approximately 0.30 % each.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 1,31,860.64 Lakhs and '' 1,09,376.42 Lakhs as of 31 March, 2022 and 31 March, 2021, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company 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.

Trade Receivables

The Company has established credit policy under which each new customer is analysed individually for credit worthiness before Company''s standard payment terms (credit period ranges from 30 to 180 days) and delivery terms and conditions are offered. The Company review external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks. with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units. Loans represent loan given to related parties & employees for which the Company does not foresee any impairment loss.

Liquidity Risk

The 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 of 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 damages to the Company''s reputation. The Company monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables & other financial liabilities.

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31 March, 2022, the Company had a working capital of '' 98,877.74 Lakhs including cash and cash equivalents of '' 4,292.03 Lakhs and current investments of '' 13,439.50 Lakhs. As of 31 March, 2021, the Company had a working capital of '' 85,289.15 Lakhs including cash and cash equivalents of '' 3,876.70 Lakhs and current investments of '' 8,301.31 Lakhs.

The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 March, 2022:

|38.| CAPiTAL MANAGEMENT

The Company''s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-tem and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

The capital structure of the Company consists of net asset and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

|44.| ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC FROM COVID-19:

The Governments of various countries notified lockdown to contain the outbreak of COVID-19. Due to this, there have been several restrictions imposed by the Governments across the globe. However, the operations of the Company did not face any disruption. There is no significant impact of COVID-19 pandemic on the financial position and performance of the Company for the financial year ended 31 March, 2022.

In light of these circumstances, the Company has considered the possible effects that may result from COVID-19 on the carrying amounts of financial assets, inventories, trade receivables, property plant and equipment, Intangibles assets and Intangible assets under development, etc., as well as liabilities accrued. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company has used internal and external information such as our current contract terms, financial strength of partners, investment profile, future volume estimates from the business etc.

Having reviewed the data and based on current estimates, the Company expects the carrying amount of these assets will be recovered and there is no significant impact on liabilities accrued.

|45.| sTANDARDs Issued BuT NOT YET EFFEcTIVE

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time

On 23 March, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from 01 April, 2022, key amendments are as below:

a) IND As 16 - property plant and Equipment-

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant and equipment.

b) Ind As 37 - provisions, contingent liabilities and contingent Assets-

The amendment specifies that the ‘cost of fulfilling'' a contract comprises the ‘costs that relate directly to the contract''. Costs that related directly to a contract can either be incremental cost of fulfillling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an exampe would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).

None of these amendment is expected to have material impact on the financial statements of the Company.

|46.| DiSCLOSURE FOR ULTiMATE BENEFiOiARiES

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

|47.| OTHER MATTERS

Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the Company for the year.

|48.| PREViOUS YEAR COMPARATiVE

The figures for the previous year have been regrouped / reclassified to correspond with the current year''s classification / disclosures puruant to amendment of the revised Schedule III to the Companies Act 2013.

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Mar 31, 2018

1. CORPORATE INFORMATION

Sharda Cropchem Limited (the “Company”) is a public limited company incorporated in India under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India.

The Company is principally engaged in export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes and dye intermediates to various countries across the world.

The registered office of the Company is located at 2nd Floor, Prime Business Park, Dashrathlal Joshi Road, Vile Parle (West), Mumbai - 400 056.

The financial statements were authorised for issue in accordance with a resolution passed at the meeting of the Board of Directors held on May 09, 2018.

2.1 BASIS OF PREPARATION

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended, under the historical cost convention on the accrual basis except for derivative financial instruments and certain financial assets and liabilities which have been measured at fair values (refer accounting policy regarding financial instruments), the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

3A. CAPITAL WORK-IN-PROGRESS

Capital work-in-progress relates to expenditure incurred on lease hold improvement and furniture fixture for the Company’s new office premises. The amount has been capitalised during the year on 1st August, 2017.

* The data compensation element of product registration was initially capitalised based on management estimates. In the current year the outcome of negotiations with contracting parties resulted in a reduction of Rs.651.94 Lakhs ( March 31, 2017 : Rs.729.36 Lakhs) in the gross block of product registrations.

4A. INTANGIBLE ASSETS UNDER DEVELOPMENT

Intangible assets under development comprise of costs incurred towards creating product dossiers, fees paid to registration consultants, application fees to the ministries, data compensation costs, data call-in costs and fees for task-force membership.

5. INCOME TAXES

The major components of income tax expense for the years ended 31st March, 2018 and 31st March, 2017 are:

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member,

For terms and conditions relating to related party receivables, refer note 35.

For explanations on the Company’s credit risk management process, refer note 38.

(b) Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for dividend and one vote per share held. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

* Shareholding includes 10 Equity shares held jointly by Mr. Ashish R. Bubna and Mrs. Seema A. Bubna, with Mr. Ashish R. Bubna as the first holder.

** Shareholding includes 10 Equity shares held jointly by Mr. Manish R. Bubna and Mrs. Anisha M. Bubna, with Mr. Manish R. Bubna as the first holder.

As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

(d) In the period of five years, immediately preceding March, 2018:

The company has not alloted any equity shares as fully paid up without payment being received in cash or bonus shares or bought back any equity shares.

Capital Reserve -

The Company recognises profit or loss on purchase, sale, issue or cancellation of the Company’s own equity instruments to capital reserve.

Securities Premium Reserve -

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium Reserve”. The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

General Reserve -

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

6. GRATUITY PLANS

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, an employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at separation date.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below

7. LEASES

Operating lease commitment: 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 3 years) . There is no escalation clause in the lease agreement. There are no sub leases. The company paid Rs.460.13 Lakhs (31 March 2017: Rs.294.77 Lakhs) during the year towards minimum lease payment.

Future minimum rentals payable under non-cancellable operating leases are as follows:

8. CAPITALISATION OF EXPENDITURES

During the year, the Company capitalised the following expenses of revenue nature to the cost of Intangible Asset / Intangible Asset Under Development (IAUD), since these expenditures relate to such development. Consequently, expenses disclosed under the respective notes are net of amounts capitalised by the company.

9. SEGMENT INFORMATION

Business segment of the Company primarily identified and reported taking into account, the different risks and returns, the organization structure and the internal reporting systems are as follows.

Notes

(i) The business of the Company is divided into two business segments. These segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:

a) Agrochemicals - This is the main area of the Company’s operation and includes the trading of agrochemical products.

b) Belts - Trading of products such as conveyor belts and rubber belts/sheets

(ii) Segment Revenue in the above segments includes sales of products net of taxes.

(iii) Inter Segment Revenue is taken as comparable third party average selling price for the year,

(iv) Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India.

b) Revenue outside India is further bifurcated into Europe, North American Free Trade Agreement (NAFTA), Latin America (LATAM) and Rest of the World (ROW).

(v) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

(vi) The Company does not have any customer (other than related parties), with whom revenue from transactions is more than 10% of Company’s total revenue.

(vii) Based on the ““management approach”“ defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the company’s performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along these segments.”

* During the year ended March 31, 2018 the Company entered into a Memorandum of Understanding (‘MOU’) with other shareholders of Sharda Private (Thailand) Limited (an Associate Company). In terms of the said MOU dated November 10, 2017 the Company has gained 100% control over Sharda Private (Thailand) Limited as the other shareholders shall not be entitled to participate in the profits/losses of the said company and do not have any decision making powers as well. Thus, the said company has been treated as a subsidiary company w.e.f. November 10, 2017 in the consolidated financial results of the Company for the year ended March 31, 2018 and has been consolidated in the Financial Statements applying Indian Accounting Standard - 110.

(c) Enterprises owned or significantly influenced by key managerial personnel or their relatives

Jankidevi Bilasrai Bubna Trust

(d) Name of associate

Sharda Private (Thailand) Limited (upto November 9, 2017)

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

10. HEDGING ACTIVITIES AND DERIVATIVES

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions. The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

11. FAIR VALUE MEASUREMENTS

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair level hierarchy.

The management assessed that cash and cash equivalents, trade receivables, trade payables, buyers credit and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the- counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Technique used to determine Fair Value:-

The following table shows the valuation techniques used in measuring Level 2 fair values for financial instruments at fair value in the balance sheet.

12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are adversely affected as the rupee appreciates / depreciates against these currencies.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency) and the Company’s net investments in foreign subsidiaries.

Further, the Company has not hedged its investments in subsidiaries outside India (For list of subsidiaries refer Note 5).

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.83,014.88 Lakhs and Rs.60,553.70 Lakhs as of March 31,2018 and March 31,2017, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company 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.

Trade Receivables

The company has established credit policy under which each new customer is analysed individually for credit worthiness before Company’s standard payment and delivery terms and conditions are offered. The Company review external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.

All the trade receivables are considered good. Hence the company has not impaired its trade receivables.

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks. with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units. Loans represent loan given to related parties & employees for which the company does not foresee any impairment loss

Liquidity Risk

The 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 of 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 damages to the Company’s reputation. The Company monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables & other financial liabilities

As of March 31, 2018, the Company had a working capital of Rs.47,856.87 Lakhs including cash and cash equivalents of Rs.2,878.36 Lakhs and current investments of Rs.2,206.94 Lakhs. As of March 31, 2017, the Company had a working capital of Rs.45,616.89 Lakhs including cash and cash equivalents of Rs.5,009.54 Lakhs and current investments of Rs.6,068.32 Lakhs.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018:

13. CAPITAL MANAGEMENT

The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-tem and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

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Mar 31, 2017

**Note b:

The Company has an investment in Axis Crop Science Private Limited (Axis Crop Science) ofRs,544 Lakhs (March 31,2016 Rs,60.67 Lakhs). Basis the audited financial statements for the year ended March 31,2017, Axis Crop Science has accumulated losses which have substantially eroded its net worth. Having regard to the financial position of Axis Crop Science and considering the expected business outlook, the Management has provided Rs,475 Lakhs as impairment loss.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below

1. LEASES

Operating lease commitment: 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 3 years) . There is no escalation clause in the lease agreement. There are no sub leases.

Note:

Future cash flows in respect of Service tax matter, if any, is determinable only on receipt of the judgment/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 condition, result of operations or cash flows.

2. CAPITALISATION OF EXPENDITURES

During the year, the Company capitalized the following expenses of revenue nature to the cost of Intangible Asset / Intangible Asset Under Development (IAUD), since these expenditures relate to such development. Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the company.

3. SEGMENT INFORMATION

Business segment of the Company primarily identified and reported taking into account, the different risks and returns, the organization structure and the internal reporting systems are as follows.

Agrochemicals : Insecticides, Herbicides, Fungicides and Biocides

Belts : Conveyor Belts, V Belts and Timing Belts

* IAUD - Intangible Asset Under Development Notes

(i) The business of the Company is divided into two business segments. These segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:

a) Agrochemicals - This is the main area of the Company''s operation and includes the trading of agrochemical products.

b) Belts - Non agro activities includes manufacture and marketing of industrial chemical and other non agricultural related products.

(ii) Segment Revenue in the above segments includes sales of products net of taxes.

(iii) Inter Segment Revenue is taken as comparable third party average selling price for the year.

(iv) Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India.

b) Revenue outside India is further bifurcated into Europe, North American Free Trade Agreement (NAFTA), Latin America (LATAM) and Rest of the World (ROW).

(v) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

(vi) The Company does not have any customer (other than related parties), with whom revenue from transactions is more than 10% of Company''s total revenue.

(vii) Based on the -management approach- defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the company''s performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along these segments.

* Non-current assets exclude financial instruments and post-employment benefit assets

No customer individually accounted for more than 10% of the revenues in the years ended March 31,2017 and March 31,2016

(b) Key management personnel and their relatives

Mr. Ramprakash V. Bubna Chairman & 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. M.S. Sundara Rajan Independent Director

Mr. P. R. Srinivasan Independent Director

Mr. Shitin Desai Independent Director

Mr. Shobhan Madhukant Thakore Independent Director

Mrs. Urvashi Saxena Independent Director

Chief Financial Officer

Mr. Gautam Arora

(resigned effective 30.11.2015)

Chief Financial Officer Mr. Conrad Fernandes .

(appointed effective 25.01.2016)

Mr. Jetkin N. Gudhka Company Secretary

(c) Enterprises owned or significantly influenced by key management personnel or their relatives

Jankidevi Bilasrai Bubna Trust

(d) Name of associate

Sharda Private (Thailand) Limited

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

4. HEDGING ACTIVITIES AND DERIVATIVES

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions. The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

The management assessed that cash and cash equivalents, trade receivables, trade payables, buyers credit and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV,

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the- counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Technique used to determine Fair Value:-

The following table shows the valuation techniques used in measuring Level 2 fair values for financial instruments at fair value in the balance sheet.

5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

Market risk

The Company operates internationally and a major portion of its business is transacted in United States Dollars and Euros and purchases from overseas suppliers mainly in US Dollars. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates / depreciates against these currencies.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries.

Further, the Company has not hedged its investments in subsidiaries outside India (For list of subsidiaries refer Note 5).

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EUR exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting toRs,60,553.70 Lakhs andRs,51,222.01 Lakhs as of March 31,2017 and March 31,2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company 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.

Trade Receivables

The company has established credit policy under which each new customer is analyzed individually for credit worthiness before Company''s standard payment and delivery terms and conditions are offered. The Company review external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.

All the trade receivables are considered good. Hence the company has not impaired its trade receivables.

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks. with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units. Loans represent loan given to related parties & employees for which the company does not foresee any impairment loss

Liquidity Risk

The 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 of 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 damages to the Company''s reputation. The Company monitors the level of expected cash inflows on trade receivables and loans together with expeceted cash outflows on trade payables & other financial liabilities

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations .The company had short term borrowings as at March 31, 2016 which has been repaid in current year. The company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of March 31, 2017, the Company had a working capital ofRs,45,616.89 Lakhs including cash and cash equivalents ofRs,5,009.54 Lakhs and current investments ofRs,6,068.32 Lakhs. As of March 31, 2016, the Company had a working capital ofRs,37,886.19 Lakhs including cash and cash equivalents ofRs,2,199.48 Lakhs and current investments ofRs,9,017.63 Lakhs.

6. CAPITAL MANAGEMENT

The Company''s objective for capital management is to maximize shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

7. FIRST-TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2017, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2015, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS.

Ind AS optional exemptions

1. Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investment in associates.

2. Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the Indian GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Indian GAAP carrying value.

Property, plant and equipment, including intangible assets, were carried in the balance sheet prepared in accordance with Indian GAAP on the basis of valuations as on 31 March 2015. The Company has elected to regard those values of the assets as deemed cost at the date of the revaluation. Accordingly, the Company has not revalued the assets at 1 April 2015 again.

Explanations for reconciliation of Balance Sheet and statement of profit and loss as previously reported under Indian GAAP to Ind AS

1. Intangible assets

The Company has elected to measure all of its property, plant and equipment and intangible assets at their Indian GAAP carrying value.

Under Indian GAAP, amortization of intangible assets for capitalizations done in financial year 2015-16 relating to previous years was disclosed under ''Prior Period Adjustments''. Under Ind AS, these amounts are recorded by restating intangible assets on the date of transition to Ind AS.

2. FVTPL financial assets

Under Indian GAAP, Company recognized long-term and current investments in mutual funds at cost less provision for diminution in the value of investments other than temporary. Under Ind AS, Company recognized such mutual fund investments as at FVTPL and measured them at fair value through profit or loss.

On the transition date, an increase ofRs,157.42 Lakhs between the long term investments fair value and amortized cost has been recognized in retained earnings.

On the transition date, an increase ofRs,383.56 Lakhs between the current investments fair value and amortized cost has been recognized in retained earnings. Further for the year ended March 31, 2016 an increase ofRs,819.33 Lakhs between the instruments fair value and amortized cost has been recognized in the statement of profit and loss.

3. Amortized Cost financial assets

Under Indian GAAP, the Company accounted for loan to employees at cost i.e. the amount actually paid. Under Ind AS, such loans are recognized at fair value on initial recognition and at amortized costs on subsequent measurement. Accordingly, on the date of transition,Rs,2.11 lakhs (Rs, 0.94 lakhs relating to non-current portion andRs,1.18 lakhs relating to current portion) is treated as prepaid employee benefit cost and has been recognized in retained earnings.

4. Forward contracts

Under Indian GAAP, the company recorded the premium or discount arising at the inception of such a forward exchange contract and amortized the same as expense or income over the life of the contract. Exchange differences on such a contract was recognized in the statement of profit and loss in the reporting period in which the exchange rates change.Under Ind AS 109, the company has recognized Derivative instruments at FVTPL which has resulted in increase in value of derivative as of March 31, 2015 byRs,92.18 Lakhs and as of March 31, 2016 byRs,74.22 Lakhs

5. Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IndAS 12 requires entitiesto account for deferredtaxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

In addition, the various transitional adjustments has led to temporary differences. Accordingly, Company has accounted for deferred tax on such differences in retained earnings at the transition date, thereby increasing deferred tax liabilities byRs,189.95 Lakhs and reducing retained earnings by the same amount.

6. Dividends

In Indian GAAP, dividend payable is recorded as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognized as a liability in the period in which the obligation to pay is established.Accordingly, proposed dividends and the related tax have increased the retained earnings byRs,2,714.68 Lakhs, at the transition date and as on March 31, 2016.

7. Deferred revenue :

The Company offers rebate to customers in the form of reward points. Under Ind AS an adjustment has been made for such sales by accounting them as deferred sales revenue.

8. Advertising and sales:

Under Indian GAAP, the cost of product distributed as free samples was recorded under cost of materials consumed. Under Ind AS, these are reflected as advertising and sales promotion under other expenses.

8. STATEMENT OF CASH FLOW

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

Note:

Loans given are unsecured and repayable on demand. Loans have been given to meet their working capital requirements.

b) Investments

Details required u/s 186 have been disclosed in Note 5 of the financial statements.

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Mar 31, 2016

1. Leases

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 3 years) . There is no escalation clause in the lease agreement. There are no sub leases.

Future minimum rentals payable under non-cancellable operating leases are as follows:

2. Capitalization of Expenditures

During the year, the Company capitalized the following expenses of revenue nature to the cost of intangible Asset/intangible Asset Under Development (iAUD), since these expenditures relate to such development. Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the company.

³. ^Seg^{ment 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 geographical locations. Outside India is further bifurcated into Europe, North American Free Trade Agreement (NAFTA),Latin America (LATAM) and Rest of the World(ROW).

* iAUD - intangible Asset Under Development Geographical segments

The Company''s secondary segments are the geographic distribution of activities. Revenue and receivables are specified by location of customers while the other geographic information is specified by location of the assets. The following table presents revenue, expenditure and certain asset information regarding the Company''s geographical segments:

NOTES

to financial statements for the year ended March 31, 2016

4.. Related party disclosures (A) Names of related parties and related party relationship (a) Related parties where control exists

Subsidiaries - Sharda International DMCC

- Sharda Polska SP. ZO.O._

- Sharda Ukraine LLC

- Sharda Del Ecuador CIA. Ltda.

- Sharda Peru SAC

- Sharda Swiss SARL

- Sharda Do Brasil Comercio De Produtos Quimicos E Agroquimicos LTDA

- Sharda Hellas Agrochemicals Limited

- Sharda Balkan Agrochemicals Limited

- Shardaserb DO.O.

- Sharda Spain, S.L.

- Axis Crop Science Private Limited

- Sharda Costa Rica SA

- Sharda Italia SRL

- Sharda De Guatemala, S.A.

- Shardacan Limited

- Sharda USA LLC

- Sharda Chile SpA

- Sharda Cropchem Espana, S.L.

- Sharzam Limited

- Sharda Poland SP. ZO.O._

- Sharda Taiwan Limited

- Sharda Cropchem Tunisia SARL

- Sharda Hungary Kft

- Sharda Agrochem Dooel Skopje(effective 02.10.2015)

- Sharda Dominicana, S.R.L.(effective 03.08.2015)

- Sharda EL Salvador S.A. DE CV (effective 28.05.2015)

- Nihon Agro Service Kabushiki Kaisha(effective 23.03.2016)

- Shardarus LLC (till 02.12.2015)

- 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.

- Sharda Benelux BVBA

- Euroazijski Pesticidi D.O.O.

Associate - Sharda Private (Thailand) Limited

(B) 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:

Note:

Future cash flows in respect of Service tax matter, if any, is determinable only on receipt of the judgment/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 condition, result of operations or cash flows.

5. Derivative instruments and unheeded foreign currency exposure

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure to 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.

Further, the Company has not hedged its investments in subsidiaries outside India (For list of subsidiaries refer Note 12).

6. Loans and advances in the nature of loans given to subsidiaries and associates and firms/companies in which the directors are interested.

7. Details of dues to micro and small enterprises as defined under "The Micro, Small and Medium Enterprises Development Act, 2006"

The Company has not received any intimation from suppliers regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006" and hence no disclosure as required under the Act has been made.

Loans given are unsecured and repayable on demand. Loans have been given to meet their working capital requirements.

b) Investments

Details required u/s 186 have been disclosed in Note 12 and 15 of the financial statements.

8. The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) as per the provisions of Section 135 of the Companies Act, 2013 amounts to ''270.30 Lacs. During the year the Company has spend an amount of '' 270.41 Lacs on CSR activities for education, health care, medical relief, skill development etc. included in Note 27 of the Statement of Profit & Loss.

9. Previous year figures have been regrouped / reclassified wherever necessary, to conform to current year''s classification.

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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:

5. Leases

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

Subsidiaries

* 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.

Associate

* 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.