1. CORPORATE INFORMATION

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

2. Transition to indian accounting Standards (ind aS)

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

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

i. Transition election

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

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

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

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

a. Share based payments:

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

b. Derecognition of financial assets and financial liabilities:

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

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

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

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

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

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

A. Other Expenses

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

iv. Cash Flow Statement

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

(ii) Terms / rights attached to equity shares

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

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of shares held by the equity share holders.

(iv) Shares reserved for issue under option

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

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

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

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

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

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

B Disclosure under Accounting Standard.:

3. Employee benefit plans

a. Defined contribution plans:

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

b. Defined benefit plans:

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

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

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

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

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

4. Employee Stock Options Plan

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

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

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

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

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

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

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

7. Approval of financial statements

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