A. General Information

Agro Phos (India) limited is a public limited company incorporated under the Companies Act, 1956 bearing Corporate Identity No. U24123MP2002PLC015285 dt. 19.09.2002 having registered office at M-87, Trade Centre 18M, South Tukoganj, Indore, MP -452001. The Company was initially incorporated as a private limited company and has been converted into public limited company w.e.f. 28.02.2004. Company established its manufacturing facilities at Industrial Area, Dewas (M.P.) during the year 2014-15 and its new manufacturing facility at Meghnagar Distt. Jhabua (M.P.). The Shares of the Company are listed at the National Stock exchange SME Platform

1.1 Rights, Preference and restrictions attached to Shares :

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 For a period of five years immediately preceding the date of Balance Sheet i.e. 31st March 2018 the company has :-

(i) Not allotted shares as fully paid up pursuant to contract (s) without payment being received in cash.

(ii) Allotted 11515292 equity shares as fully paid up by way of bonus shares during F.Y. 2016-17.

(iii) Not bought back any shares .

I Working Capital Loans from Axis Bank Rs. 171313005/- (Pre. Year Nil) is secured by :

a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movable fixed assets, both present and future,of the Company and personal guarantee of Directors.

b) Further secured by Equitable Mortgage on following property:

1. Factory land and building situated at 13A/2, Dewas Industrial Area ,Office premies of M-91-92 Trade Center, 18 South Tukoganj Indore and Office premises at gold plaza, MG Road Indore.

2.Resident Plot no. 120 PLCC DLF Garden city Indore, 37 & 38 Megha Apartment , Ram Nagar, Annex ,Dewas , Residential Plot no. WB-93, Sector B, Scheme No. 94, IDA, Ring road Indore and Residential Plot No. 40 Ramanagar Annex, A.B road ,Dewas in the name of Rajkumar Gupta (Director),

3. Residential House A-7, Mangal Murti Nagar, Navlakha Main Road Indore in the name of Mrs. Uma Gupta,

4. Residential House WA-12, Sector A, Scheme No. 94, Ring Road Indore in the name of Ms. Shraddha Gupta and

5. Pledge of 10 Lacs Equity shares of promoters having market value of Rs. 2.12 crore as on 24.07.2017

Working Capital Loans from Union Bank of India Rs. Nil (Pre.Year Rs.14,76,97,680/-) are secured by :

Secured by hypothecation of Inventories & Book debts. Also Secured by personal guarantee of Directors of the company.

Working Capital Loans from Punjab National Bank Rs. Nil (Pre.Year Rs.3,94,45,904/-) are secured by :

Secured by pledge of Warehouse Receipts of the agriculture commodities and fertilizers which have been stored or may be stored with the Central/State Warehousing Corporation. Also Secured by personal guarantee of Directors of the company.

Short term borrowings aggregating to Rs. 17,13,13,005 (Pre. Year Rs.18,71,43,584/-) is personally guaranteed by directors.

II Unsecured loan is Over Draft against LC Bills from Union Bank of India, Siyaganj, Indore.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. The company is mainly engaged in the business of Manufacturing and trading of Fertilizers. This is the only product in which company is dealing and Company’s all business located in India, hence disclosure as per AS 17 - Segment Reporting is not required.

4. Leases (Where company is Lessee)

The Company lias taken various premises under operating leases with no restrictions and are renewable / cancellable at the option of either parties. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 39,92,433 (Pre. Year Rs. 41,49,827). The company has not recognized any contingent rent as expense in the statement of profit and loss.

5. Disclosure as required under section 186 (4) of the Companies Act, 2013 the following are the details thereof:

Investments made are classified under respective heads and are utilized for the purposes as mentioned in their object clause.

6. Previous year’s figures are regrouped or re arranged wherever considered necessary to make them comparable with current year’s figures.