Accounting Policies of Shreeoswal Seeds and Chemicals Ltd. Company

Mar 31, 2025

1.3 SUMMARY OF MATERIAL ACCOUNTING POLICIES

a. Key accounting estimates and judgments

The preparation and presentation of financial statements in conformity with Ind AS requires
management to make judgments, estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and
reported amounts of revenues and expenses during the period.

Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods. Accounting
estimates could change from period to period. Any revision to accounting estimates is recognized
prospectively in the current and future periods, and if material, their effects are disclosed in the
financial statements. Actual results could differ from the estimates. Any difference between the actual
results and estimates are recognized in the period in which the results are known/materialize.

Information about critical judgments in applying accounting policies, as well as estimates and
assumptions that have the most significant effect to the carrying amounts of assets and liabilities
within the next financial year, are included in the following notes:

I. Measurement of defined benefit obligations

II. Measurement and likelihood of occurrence of contingencies

III. Recognition of deferred tax assets

b. Inventories

Inventories are valued at lower of cost and net realizable value (except as otherwise stated) on an
item-by-item basis, as under:

Raw materials, packing materials, stores and spares: Cost of inventory comprises all costs of
purchase, duties and taxes (other than those subsequently recoverable from tax authorities) and all
other costs incurred in bringing the inventories to their present location and condition. Raw materials
and other items held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at or above cost. Cost is
determined on a first-in first-out formula.

Work-in-progress and finished goods: Cost includes direct materials and costs of conversion in the
form of labour and a systematic allocation of fixed and variable production overheads. It also includes
other costs which are incurred in bringing the inventories to their present location and condition. The
allocation of fixed production overheads is based on normal capacity of production. Cost is determined
on first-in first-out formula. The expected scrap value is deducted from the cost to arrive at the net
cost of inventories. However, cost of inventories neither includes abnormal amounts of wasted
material nor any scrap realizations there from.

By products and scrap are recognized at their net realizable value.

Stock-in-trade: Cost includes cost of purchases, duties and taxes (other than those subsequently
recoverable from authorities) and other costs which are incurred in bringing the inventories to their
present location and condition. Cost is determined on a first-in first-out formula.

Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale.

Cost of agricultural produce is deemed to be the fair value on the date of rise.

Cost of finished goods and work-in-progress include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.

c. Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred tax

The tax expenses for the period comprise of current tax and deferred tax. The Company exercises
judgment in computation of current tax considering the relevant rulings and reassesses the carrying
amount of deferred tax assets at the end of each reporting period

d. Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and
impairment losses, if any. Cost comprises of purchase price net of trade discounts and rebates, non¬
refundable duties and taxes, any directly attributable cost of bringing the asset to its working
condition for its intended use. Cost also includes borrowing cost directly attributable to acquisition /
construction of a qualifying asset up to the date the asset is ready for its intended use. Subsequent
expenditure on fixed assets is capitalized only if such expenditure results into an increase in the future
benefits from such asset beyond its previously assessed standard of performance.

An item of property, plant and equipment and any significant part initially recognized is derecognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement when the asset is
derecognized.

Capital work-in-progress comprises the cost of property, plant and equipment that are yet not ready
for their intended use at the balance sheet date. The depreciable amount of a depreciable fixed asset is
allocated on a systematic basis to each accounting period over the useful life of the asset.
Management''s estimate of useful life, which is duly supported by technical evidence, is as stipulated in
Schedule II to the Companies Act, 2013. The useful life is for the whole of the asset, except where cost
of a part of the asset is significant to total cost of the asset and useful life of that part is different from
the useful life of the remaining asset, useful life of that significant part (“component”) is determined
separately and the depreciable amount of the said component is allocated on a systematic basis to each
accounting period during the useful life of the asset.

In arriving at the depreciable amount, residual value in case of certain assets are considered to be
more than 5% of the original cost, this estimate of residual value is duly supported by technical advice.
Depreciation on assets acquired during the year is calculated on a pro-rata basis from the date of
addition. Similarly, depreciation on assets sold, discarded, demolished or destroyed during the year is
also calculated on a pro rata basis up to the date on which such asset has been sold, discarded,
demolished or destroyed. Depreciable assets costing up to Rupees 1,000/- are depreciated fully in the
year of acquisition The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

e. Leases

IND-AS 116 “Leases” is mandatory for the accounting period commencing on and from 1st April 2019,
and has replaced the existing IND-AS 17 relating to leases. We have applied the modified retrospective
approach, for which no significant adjustments were required to be made to the retained earnings as
at 1st April 2019. However, no material lease has been recognized for the year ending March 31, 2025.

f. Employee benefits

Short term employee benefits

All employee benefits which fall due wholly within twelve months after the end of the period in which
employee renders the related service are classified as short-term employee benefits. Undiscounted
value of short term benefits such as salaries, wages, bonus and ex-gratia are recognized in the period
in which the employee renders the related service.

Defined Contribution Plans:

The Company''s Employee''s Provident Fund scheme, Employee''s State Insurance Scheme and
Employee''s Superannuation Scheme are defined contribution plans. The Company''s contribution
payable under the schemes is recognized as an expense in the statement of profit and loss during the
period in which the employee renders the related service.

Defined benefit plan Gratuity

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a
separately administered fund. The defined benefit plan surplus or deficit on the balance sheet
comprises the total for each of the fair value of plan assets less the present value of the defined
liabilities. The cost of providing benefits under the defined benefit plan is determined based on
independent actuarial valuation using the projected unit credit method. The gratuity liability is
measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan, is based on the market
yield on government securities as at the balance sheet date.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognized
immediately in the balance sheet with a corresponding debit or credit to retained earnings through
OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

The date of the plan amendment or curtailment, and

The date that the Group recognizes related restructuring cost

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

The Company recognizes the following changes in the net defined benefit obligation as an expense in
the statement of profit and loss: Service costs comprising current service costs, past-service costs,
gains and losses on curtailments and non-routine settlements; and Net interest expense or income

As per Actuarial Valuations as on 31st March, 2025 and recognised in the financial statements in
respect of Employee Benefit Schemes: The liabilities arising in the Defined Benefit Schemes are
determined in accordance with the advice of independent, professionally qualified actuaries, using the
projected unit credit method as at year end.

g. Earnings Per Share

Earnings per share (EPS) is calculated by dividing the net profit for the year attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and weighted average number of shares outstanding during the period is adjusted for
the effects of all diluted potential equity shares.

h. 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 or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets. When the carrying amount of an
asset or CGU 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 assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples or other available fair value indicators. No
such asset was impaired during the reporting period.

---

Mar 31, 2024

1.1 CORPORATE INFORMATION

Shreeoswal Seeds and Chemicals Limited ("the Company") was originally registered as a partnership firm as "M/s Oswal Seeds and Chemicals" dated July 29, 2002 which was then converted into public limited company i.e. SHREEOSWAL SEEDS AND CHEMICALS LIMITED having CIN: U01100MP2018PLC045146 vide fresh certificate of incorporation dated December 1, 2017.

The registered office of the Company is situated at Oswal House, Opposite Bal Kavi Bairagi College, Village-Kanawati, Neemuch -458441, Madhya Pradesh, India.

Shreeoswal Seeds and Chemicals Limited ("the Company") is a limited company incorporated in India under the provisions of the Companies Act, 2013. The Company is a Processing unit involved in processing of agriculture seeds along with Trading of Agriculture Produce.

1.2 BASIS OF PREPARATION COMPLIANCE WITH IND-AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards ("Ind AS") as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities have been classified and disclosed as current or non-current as per the Company''s normal operating cycle and other criteria set out in division II of Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as up to twelve months for the purpose of current or non-current classification of assets and liabilities.

BASIS OF MEASUREMENT

The financial statements have been prepared on a historical cost basis, except for the assets and liabilities that require measurement at fair value in accordance with Ind AS. The financial statements are presented in Indian Rupees and all values are rounded to the nearest lakhs (INR 00,000), except otherwise indicated.

1.3 SUMMARY OF MATERIAL ACCOUNTING POLICIES

a. Key accounting estimates and judgments

The preparation and presentation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses during the period.

Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Accounting estimates could change from period to period. Any revision to accounting estimates is recognized prospectively in the current and future periods, and if material, their effects are disclosed in the financial statements. Actual results could differ from the estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known/materialize.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

I. Measurement of defined benefit obligations

II. Measurement and likelihood of occurrence of contingencies

III. Recognition of deferred tax assets

b. Inventories

Inventories are valued at lower of cost and net realizable value (except as otherwise stated) on an item-byitem basis, as under:

Raw materials, packing materials, stores and spares: Cost of inventory comprises all costs of purchase, duties and taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventories to their present location and condition. Raw materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a first-in first-out formula.

Work-in-progress and finished goods: Cost includes direct materials and costs of conversion in the form of labour and a systematic allocation of fixed and variable production overheads. It also includes other costs which are incurred in bringing the inventories to their present location and condition. The allocation of fixed production overheads is based on normal capacity of production. Cost is determined on first-in first-out formula. Realizable value of pre-determined normal rate of scrap is deducted from the cost of inventories. However, cost of inventories neither includes abnormal amounts of wasted material nor any scrap realizations there from.

By products and scrap are recognized at their net realizable value.

Stock-in-trade: Cost includes cost of purchases, duties and taxes (other than those subsequently recoverable from authorities) and other costs which are incurred in bringing the inventories to their present location and condition. Cost is determined on a first-in first-out formula.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Cost of agricultural produce is deemed to be the fair value on the date of rise.

Cost of finished goods and work-in-progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

c. Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxation authority.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India; to the extent it would be available for set off against future current income tax liability. Accordingly, MAT is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

d. Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost comprises of purchase price net of trade discounts and rebates, non-refundable duties and taxes, any directly attributable cost of bringing the asset to its working condition for its intended use. Cost also includes borrowing cost directly attributable to acquisition / construction of a qualifying asset up to the date the asset is ready for its intended use. Subsequent expenditure on fixed assets is capitalized only if such expenditure results into an increase in the future benefits from such asset beyond its previously assessed standard of performance.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

Capital work-in-progress comprises the cost of property, plant and equipment that are yet not ready for their intended use at the balance sheet date. The depreciable amount of a depreciable fixed asset is allocated on a systematic basis to each accounting period over the useful life of the asset. Management''s estimate of useful life, which is duly supported by technical evidence, is as stipulated in Schedule II to the Companies Act, 2013. The useful life is for the whole of the asset, except where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part ("component") is determined separately and the depreciable amount of the said component is depreciated is allocated on a systematic basis to each accounting period during the useful life of the asset.

In arriving at the depreciable amount, residual value in case of certain assets are considered to be more than 5% of the original cost, this estimate of residual value is duly supported by technical advice. Depreciation on assets acquired during the year is calculated on a pro-rata basis from the date of addition. Similarly, depreciation on assets sold, discarded, demolished or destroyed during the year is also calculated on a pro rata basis up to the date on which such asset has been sold, discarded, demolished or destroyed. Depreciable assets costing up to Rupees 1,000/- are depreciated fully in the year of acquisition The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

e. Leases

IND-AS 116 "Leases" is mandatory for the accounting period commencing on and from 1st April 2019, and has replaced the existing IND-AS 17 relating to leases. We have applied the modified retrospective approach, for which no significant adjustments were required to be made to the retained earnings as at 1st April 2019. However, no material lease has been recognized for the year ending March 31, 2024.

f. Employee benefitsShort term employee benefits

All employee benefits which fall due wholly within twelve months after the end of the period in which employee renders the related service are classified as short-term employee benefits. Undiscounted value of short term benefits such as salaries, wages, bonus and ex-gratia are recognized in the period in which the employee renders the related service.

Defined Contribution Plans:

The Company''s Employee''s Provident Fund scheme, Employee''s State Insurance Scheme and Employee''s Superannuation Scheme are defined contribution plans. The Company''s contribution payable under the schemes is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

Defined benefit plan Gratuity

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a separately administered fund. The defined benefit plan surplus or deficit on the balance sheet comprises the total for each of the fair value of plan assets less the present value of the defined liabilities. The cost of providing benefits under the defined benefit plan is determined based on independent actuarial valuation using the projected unit credit method. The gratuity liability is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, is based on the market yield on government securities as at the balance sheet date.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

The date of the plan amendment or curtailment, and

The date that the Group recognizes related restructuring cost

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

Service costs comprising current service costs, past-service costs, gains and losses on curtailments and nonroutine settlements; and Net interest expense or income

g. Earnings Per Share

Earnings per share (EPS) is calculated by dividing the net profit for the year attributable to the equity shareholders by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and weighted average number of shares outstanding during the period is adjusted for the effects of all diluted potential equity shares.

h. 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 or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU 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 pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators. No such asset was impairment during the reporting period.

i. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a 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. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

j. Revenue recognition

Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade discount or rebates. The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Company.

Revenue from Sale of goods

Revenues from sales of goods are recognized upon transfer of control of promised goods to customer, which are generally on dispatch of goods and the customer has accepted the products in accordance with the agreed terms. There is no continuing managerial involvement with the goods and the Company retains no effective control of goods transferred to a decree usually associated with ownership. Revenue from sales of goods is based on the price quoted in the market or price specified in the sales contracts.

k. Other Income

Other Income is comprised primarily of interest income, discounts and lease rent. Interest income is recognized on accrual basis.

l. Investments and other financial assets Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortized cost

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit and loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held.

Measurement

All financial assets are recognized initially at fair value. In the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset are included in the value of financial assets. Transaction costs of financial assets carried at fair value through profit or loss are charged in Statement of Profit and Loss.

Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the Company has not transferred substantially all risks and rewards of ownership of financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

m. Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as the effective interest rate amortization process.

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

n. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

o. Litigations

The nature of business of the company is agro based commodities and legal pending cases against the company at district court are due to Non-Germination of Agro Seeds or failure of Seeds Sample and which may be happened by any of the one condition i.e. Climate changes, Soil Issue, excess or less water used while irrigation of crop, Non-Germination and farmer negligence which is not the fault of the company. Further quantum of the amount is not ascertainable and nature of the cases are in criminal hence there was no impact on financial of the Company.

---

Mar 31, 2018

II Secured Loans

A) Terms of Repayment

Term Loan > The loan was previously taken by Partnership firm and the same was continuous in the name of resulting Company. The Principal amount of Term Loan to be repaid in 75 Equal Monthly Installment payable from 01.04.2018.

LC Limit:- Repayment of FLC will done after 1080 Days from sanction date 19.03.2015.

B1 Primary Security

Term Loan Primary Secured Against Land & Building At Survey No. 557 & 559, Scheme No. 14/2, Chittorgarh Road, Gram Kanawati, Distt Neemuch owned by M/s Oswal Psyllium Exports (Now Converted into ShreeOswal Psyllium Exports India Ltd, vtfiolly owned subsidiary Company) also primary security of Sortax Plant owned by the Company.

LC Limit (Secured Against Plant & Machinery (Grading & Cleaning Machine ’Sortax Machine’ and F.D.R. of Rs. 25.00 Lacs with Bank).

Cl Collateral Security

1. Collateral Security of Mouse situated at 794, Scheme No 14/2, Vikas Nagar Extention, Owned by Shri Kanhaiyalal ji Nahata.

2. Collateral Security of Shop No 24 & 25, Shri Balaji Ganesh Market, Station Road, Neemuch Owned by Smt. Chandraleka Begani, Smt. Sunita Begani and Shri Anil Kumar Begani (Relatives of Managing Director Shri Sanjay Kumar Begani).

3. Collateral Security of Mouse situated at 297, Schme No 14/2, Vikas Nagar Extension owned by Smt. Chandra Lekha Begani (Mother of Managing Director).

4. Collateral Security of Mouse situated at 475, Schme No 14/2, Vikas Nagar Extension owned by Smt. Kiran Devi Begani (Wife of Managing Director).

5. Land and Building Situated at Plot No. 06, Industrial Area Neemuch Owned by M/s Oswal Seeds & Chemicals (Partnership firm that is converted to The Company).

6. Cash Collateral of Rs. 15.00 Lacs in form of Term Deposit.

I) Axis Bank IWHR Loan)

A) Terms of Repayment

The Validity of Facility against Warehouse Receipt Should be Lower of

a) Expity Date Mentioned in the Warehouse Receipts / Storage Receipts/ Quality Certificate

b) Be the end of Month in which new crop arrives for respective cropes or Maximum permissible Funding period \Miichever is earlier

B) Primary Security

Pledge of Warehouse Receipts/Storage Receipts, issued with Lien Noted in favour of AXIS Bank Ltd.

Cl Collateral Security

No Collateral security Provided for this Bank Loan.

PI Personal Guarantee

Personal Guarantee of Director and Managing Director and Promotes and Other Directors Named Shri Anil Kumar Nahata, Shri Sanjay Kumar Beigani, Smt. Kiran Devi Begani and Smt. Padma Nahata.

II) Union Bank (CC Limit)

A) Primary Security

First Charge by way of hypothecation of company''s entire Paid stock of Raw Materal, Finished Goods, Plant & Machinery, Consumable Stores and spares and such other movable including books Debts, Bills, vriiether documentary of clean, outstanding monies, receivables both present and luture pari pasu with other working capital alongvwth other security such as Cash Margin for LC/LG.

B) Collateral Security

1. Collateral Security of Mouse situated at 794, Scheme No 14/2, Vikas Nagar extension, Owned by Shri Kanhaiyalal ji Nahata (Father of CEO of the Company)

2. Collateral Security of Shop No 24 & 25, Shri Balaji Ganesh Market, Station Road, Neemuch Owned by Smt. Chandraleka Begani, Smt. Sunlta Begani and Shri Anil Kumar Begani (Relatives of Managing Director Shri Sanjay Kumar Beigani)

3. Collateral Security of Mouse situated at 297, Schme No 14/2, Vikas Nagar extension owned by Smt. Chandra Lekha Begani (Mother of Managing Director)

4. Collateral Security of Mouse situated at 475, Schme No 14/2, Vikas Nagar extension owned by Smt. Kiran Devi Begani (Wife of Managing Director)

5. Land and Building Situated at Plot No. 06, Industrial Area Neemuch Owied by M/s Oswal Seeds & Chemicals (Partnership firm that is converted to The Company)

6. Cash Collateral of Rs. 15.00 Lacs in form of Term Deposit Cl Personal Guarantee

Personal Guarantee of Director and Managing Director and Promotes Shri Anil Kumar Nahata and Shri Sanjay Kumar Beigani along with Smt. Chandraleka Begani, Shri Kanhaiyalal ji Nahata, Smt. Sunita Devi Begani and Kiran Devi Begani.

Notes forming part of Financial Statements Mote No. 1 to the financial statements for the year ending on 31st March. 2018

Note 1(a) Background of the Company

The Company was originally registered as a Partnership firm as "M/s Oswal Seeds and Chemicals" dated July 29, 2002 which was then converted into public limited company i.e. 5HREEOSWAL SEEDS AND CHEMICALS LIMITED having CIN : U01111MP2017PLC044596 vide fresh certificate of incorporation dated December 1, 2017

The Registered office of the company is situated at Oswal House, Opposite Bal Kavi Bairagi College, Village- Kanawati, Neemuch-458441, Madhya Pradesh, India.

ShreeOswal Seeds and Chemicals Limited (the "Company") is a limited company incorporated in India under the provisions of the Companies Act,2013. The Company is a Processing unit involved in processing of Agriculture Seed along with Trading of Agriculture Produce.

Note 1(b) SIGNIFICANT ACCOUNTING POLICIES :-

1 (i) Basis of Accounting:-

The financial statements are prepared in accordance with the applicable Accounting Standards as prescribed under section 133 of The Companies Act,2013 read with Rule7 of Companies (Accounts) Rules 2014 except as required by Accounting Standard No.-15 “Employees benefits” under the Historical cost convention, on accrual basis.

The Financial Statements are prepared under the Historical Cost Conversion using the accrual method of accounting, in accordance with the accounting standards prescribed by the Institute of Chartered Accountants of India. However, the insurance claims and other than cash compensatory incentives are accounted on the basis of receipt. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, except in case of significant uncertainties relating to the income.

(iii Use Of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that effect the reported amount of assets and liability on the date of financial statement and the reported amount of revenue and expenses during the reporting period . Difference between actual result and estimates are recognized in the period in which the result are known / materialized.

2 Revenue Recognition;-

Revenue has been considered as per AS 9- Revenue Recognition issued by Institute of Chartered Accountants of India.

(a) Items of income & expenditure are accounted for on accrual basis.

(b) Sales of goods are recognized on dispatch of goods to customers or when substantial risk and rewards of ownership are transferred by company.

(c) Service Income is recognized, net of service tax, when related services are provided.

3 Taxes on Income:-

(a) Current Taxes :¦ Income Tax expenses comprises current tax and differed tax charges or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.

(b) Deferred Tax is determined using the tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date, Deferred Tax Assets are recognized and carried forward only if there is reasonable certainty of its realization. However in case of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961, the Deferred Tax Asset is recognized if and only if there is a virtual certainty backed by convincing evidence of its realization. Such assets are reviewed at each Balance Sheet date to reassess its realization.

4 Provisions and Contingent Liability:-

A Provision is recognized, if as a result of past event the company has a present obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the Obligation.

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.

5 Fixed Assets:-

Fixed assets are stated at cost less accumulated depreciation and impairment loss if any. The company capitalized all costs relating to acquisition and installation of fixed assets till the date on the assets first put to use for commercial purpose.

6 Impairment of Assets:-

Pursuant to’AS-28 Impairment of Assets "issued by the Central Government under the Companies (Accounting Standard) Rules 2006 for determining impairment in the carrying amount of fixed assets, the management has concluded that since recoverable amount of fixed Assets is not less than its carrying amount, therefore no provision is required for impairment in respect of fixed Asset of the company.

7 Depreciation:-

Depreciation on tangible assets is provided on “Written down Value Method" at the rate prescribed in schedule II of the companies act 2013 for the number of days the assets has been put to use and over the useful vies of the assets estimated by the management. The Management estimates are based on the useful life provided in the Schedule II to Companies Act 2013. The useful life of various assets are mentioned in the below mentioned chart.

9 Investments:-

Investments are either classified as current or noncurrent based on management''s intention. Long term investments are stated at cost less other than temporary decline in the value of such investments determined separately for each individual investment.

Company has invested in Equity Shares of its Subsidiary Company.

10 Foreign Currency Transactions:*

As per information provided by the Management, the Company has not entered into any foreign currency transactions during the year.

11 Valuation of Inventories:*

The inventories are physically verified at regular intervals by the Management. Raw materials, stores and spares are valued at cost and net of credits under scheme under CENVAT Rules and GST Rules. Finished goods and trade goods are valued at cost or market value \Michener is lower.

12 Preliminary Expenses:-

During the current year the company do not have any preliminary expenses which is expensed form profit and loss account but company incurred Preliminary expenses which are shown in Balance Sheet under ''Other Current Assets’ and are carried forward to be written off in the next year.

13 Prior Period Expenses:-

Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods. No Prior Period Expenses are included in the Current Financial Statements.

14 Management Remuneration:-

Disclosures with respect to the remuneration of directors and employees as required under section 197 of Companies Act, 2013 and Rule 5 (1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table:

15 Cash and Cash Equivalents:-

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

16 Segment Reporting:-

The Company is engaged in the business of Processing of Seeds which is considered to be the only reportable business segment as per Accounting Standard 17 on Segment Reporting. The Company mainly operates in India and there is no other significant geographical segment.