CAMSON BIO TECHNOLOGIES LIMITED - bseindia.com Ishwar & Gopal, Chartered Accountants K. V. Gopalakrishnayya Partner Membership No.21748 Firm Registration No. 001154S ... Share Capital

CAMSON BIO

TECHNOLOGIES

LIMITED

_________________________________________________________________________________________________________

INFORMATION MEMORANDUM _________________________________________________________________________________________________________

Annual Report2010-1135

To the Members of Camson Bio Technologies Limited

1. We have audited the attached Balance Sheet ofCAMSON BIO TECHNOLOGIES LIMITED as at 31stMarch 2011, and also the Profit and Loss Accountand the Cash Flow Statement for the year ended ason that date, both annexed thereto. These financialstatements are the responsibility of the Company’sManagement. Our responsibility is to express anopinion on these financial statements based on ouraudit.

2. We conducted our audit in accordance with auditingstandards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtainreasonable assurance about whether the financialstatements are free of material mis-statements. Anaudit includes examining, on a test basis, evidencesupporting the amounts and disclosures in thefinancial statements. An audit also includes assessingthe accounting principles used and significantestimates made by the Management, as well asevaluating the overall financial statementpresentation. We believe that our audit provides areasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report)Order, 2003 as amended by the Companies (Auditor’sReport) (Amendment) Order, 2004 (the ‘order’) issuedby the Central Government in terms of Section 227(4A) of the Companies Act, 1956 we give in theannexure, a statement on the matters specified inparagraphs 4 and 5 of the said order to the extentapplicable.

4. Further to our comments in the Annexure referred toabove, we report that:

a. We have obtained all the information andexplanations which, to the best of our knowledgeand belief, were necessary for the purposes of ouraudit;

b. In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books;

c. The Balance Sheet, the Profit and Loss Accountand the Cash Flow Statement dealt with by thisreport are in agreement with the books of account;

d. In our opinion, the Balance Sheet, the Profit andLoss Account and the Cash Flow Statement dealtwith by this report comply with the accountingstandards, to the extent applicable, referred to insubsection (3C) of Section 211 of the CompaniesAct, 1956;

e. On the basis of written representations receivedfrom the Directors, taken on record by the Boardof Directors, we report that none of the Directorsis disqualified as at 31st March, 2011 from beingappointed as a Director in terms of Clause (g) ofsub-section (1) of Section 274 of the CompaniesAct, 1956; and

f. In our opinion, and to the best of information andaccording to the explanations given to us, the saidAccounts, give the information required by theCompanies Act, 1956, in the manner so required,giving a true and fair view

i. in the case of Balance Sheet, of the state ofaffairs of the Company as at 31st March, 2011;

ii. in the case of Profit and Loss Account, of theprofit of the Company for the year ended onthat date; and

iii. in the case of the Cash Flow Statement, of theCash Flows for the year ended on that date.

For Ishwar & Gopal,Chartered Accountants

K. V. GopalakrishnayyaPartner

Membership No.21748Firm Registration No. 001154S

Place : BangaloreDate : 27th August 2011

Auditors’ Report

36

(i) a. The Company has maintained proper recordsshowing full particulars including quantitativedetails and situation of the fixed assets.

b. According to the information and explanationsgiven to us, the fixed assets have been physicallyverified by the Management during the year ina phased periodic manner which in our opinionis reasonable having regard to the size of theCompany and the nature of its assets. Nomaterial discrepancies were noticed on suchverification.

c. As explained to us the Company has notdisposed off any fixed asset during the yearunder review.

(ii) a. As explained to us, inventories were physicallyverified during the year by the Management atreasonable intervals.

b. In our opinion and according to the informationand explanations given to us, the procedures ofphysical verification of inventories followed bythe Management were reasonable and adequatein relation to the size of the Company and natureof the business.

c. The Company is maintaining proper records ofinventory. We have been informed that nomaterial discrepancies have been noticed onphysical verification of stocks with the inventoryrecords maintained by the Company.

(iii) According to the information and explanationsgiven to us, the Company has not granted or takenunsecured loans to/from Companies, firms or otherparties covered in the Register maintained underSection 301 of the Companies Act, 1956.

(iv) In our opinion and according to the informationand explanations given to us, internal controlsystems with regard to purchase of inventory, fixedassets, and with regard to sale of goods needs tobe strengthened to make it commensurate withthe size of the Company and the nature of itsbusiness. However, during the course of our audit,we have not come across continuing failure tocorrect major weakness in the internal controls.

(v) a. To the best of our knowledge and belief andaccording to the information and explanationsgiven to us, transactions to be entered in theregister maintained under Section 301 of theCompanies Act, 1956 have been entered in theregister.

b. In our opinion and according to the informationand explanations given to us, the transactionsmade in pursuance of contracts or arrangements

entered in the register maintained under Section301 of the Companies Act,1956 in respect ofany party during the year have been made atprices which are reasonable having regard toprevailing market marker prices at the relevanttime.

(vi) In our opinion and according to the informationand explanations given to us, the Company hasnot accepted deposits in terms of the provisions ofSections 58A and 58AA or any other relevantprovisions of the Companies Act, 1956.

(vii) In our opinion, internal audit system of theCompany needs to be strengthened to make itcommensurate with the size and nature of itsbusiness.

(viii) The Central Government has not prescribedmaintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956 in respect of anyof the activities of the Company.

(ix) a. According to the information and explanationsgiven to us, the Company has generally beenregular in depositing undisputed statutory dues,including Provident Fund, Investor Educationand Protection Fund, Employees’ StateInsurance, Income-Tax, Wealth Tax, Service Tax,Customs Duty, Excise Duty, Cess and any othermaterial statutory dues. There are no arrears ofundisputed amounts payable in respect of theaforesaid dues which were outstanding as on31st March, 2011 for a period of more than sixmonths from the date they became payable.

b. According to the information and explanationsgiven to us, there are no dues of Income Tax,Sales Tax, Wealth Tax, Service Tax, Customs Duty,Excise Duty and cess which have not beendeposited on account of any dispute.

(x) The Company does not have accumulated losses.The Company has not incurred cash losses duringthe financial year covered by our audit and in theimmediately preceding financial year.

(xi) According to the information and explanationsgiven to us, the Company has not defaulted in therepayment of dues to banks. The Company has nodues to financial institutions or debenture holdersduring the year under review.

(xii) In our opinion and according to the informationand explanations given to us, no loans and advanceshave been granted by the Company on the basis ofsecurities by way of pledge of shares, debenturesand other securities.

Annexure to the Auditors’ Report[Referred to in paragraph (3) of our report of even date]


(xiii) The Company is not a chit fund/nidhi/mutual benefitfund/society. Accordingly, Clause 4 (xiii) of theCompanies (Auditor’s Report) Order, 2003 is notapplicable to the Company during the year underaudit.

(xiv) In our opinion and according to the informationand explanations given to us, the Company is notdealing in or trading in shares, securities, debenturesand other investments. Therefore, the provisionsof Clause (4) (xiv) of the Companies (AuditorsReport) Order 2003 are not applicable to theCompany.

(xv) The Company has not given any guarantee for loanstaken by others from financial institutions or banks.

(xvi) The Company has not availed any term loans duringthe year under review.

(xvii) According to the information and explanationsgiven to us, and on an overall examination of theBalance Sheet of the Company, short term fundshave not been used for long term investments.

(xviii) During the year, the Company has made allotmentof shares on conversion of warrants issued onpreferential basis during the prior years to parties

covered in the Register maintained under Section301 of the Act. In our opinion the price at whichsuch share warrants were issued are prima facienot prejudicial to the interest of the Company.

(xix) The Company has not issued any debentures duringthe year under review.

(xx) The Company has not raised any money by publicissues during the year.

(xxi) Based upon the audit procedures performed by usand information and explanations given by theManagement, we report that no fraud on or by theCompany has been noticed or reported during thecourse of our audit.

For Ishwar & Gopal,Chartered Accountants

K. V. GopalakrishnayyaPartner

Membership No.21748Firm Registration No. 001154S

Place : BangaloreDate : 27th August 2011

38

Particulars Schedule As at As atNo. 31st March, 2011 31st March, 2010

Sources of Funds

Share Holders’ Funds

Share Capital A 181,300,000 160,500,000

Share Warrants 20,931,250 61,106,250

Reserves & Surplus B 867,544,152 1,069,775,402 533,247,087 754,853,337

Loan Funds C

Secured Loans 9,045,076 9,996,676

Deferred Tax Liability (Net) D 6,076,589 4,218,911

Total 1,084,897,067 769,068,923

Application of Funds

Fixed Assets E

Gross Block 312,603,655 354,791,965

Less: Accumulated Depreciation 46,509,984 66,066,218

Net Block 266,093,671 288,725,746

Capital Work-in-Progress 111,578,243 55,199,266

Investments F 43,513,497 8,391,714

Current Assets, Loans & Advances G

Inventories 427,228,148 223,025,799

Sundry Debtors 424,534,634 117,291,955

Cash & Bank Balances 19,441,196 150,335,370

Loans & Advances 20,990,463 11,947,816

892,194,441 502,600,939

Less: Current Liabilities & Provisions H

Current Liabilities 198,942,061 57,780,407

Provisions 29,540,724 28,068,335

228,482,785 85,848,742

Net Current Assets 663,711,657 416,752,197

Total 1,084,897,067 769,068,923

Significant Accounting Policies &Notes to Accounts P

Amount in Rs.

Balance Sheetas at 31st March, 2011

Schedules referred to herein from an integralpart of Balance Sheet

As per our report of even date For and on behalf of the Board

For Ishwar & GopalChartered Accountants

K. V. GopalakrishnayyaPartnerMembership No : 021748Registration No. 001154S

Place : Bangalore C. M. MurthyDate : 27th August, 2011 Company Secretary

Dhirendra KumarManaging Director

A. N. SinghDirector


Particulars Schedule Year Ended Year EndedNo. 31st March, 2011 31st March, 2010

Income

Sales I 987,393,193 799,817,991

Other Income J 9,411,358 3,530,559

Total 996,804,551 803,348,550

Expenditure

Material Cost K 221,721,615 150,582,208

Employee Cost L 37,180,873 21,249,825

Research Expenses M 169,212,790 151,301,219

Operating and Other Overheads N 334,148,570 299,559,122

Financial Charges O 1,431,867 1,970,590

Total 763,695,714 624,662,964

Profit before Depreciation & Amortization 233,108,837 178,685,586

Depreciation & Amortization E 9,215,779 16,619,239

Profit Before Tax 223,893,058 162,066,347

Provision For Tax

Current Tax 1,929,168 6,353,696

Deferred Tax (Net) 1,857,678 4,218,911

Profit After Tax For The Year 220,106,211 151,493,740

Less: Prior Period Adjustments ( Net) - 14,933,494

Profit After Tax 220,106,211 136,560,246

Balance of Profit Brought Forward 300,944,287 187,470,211

Amount Available For Appropriation 521,050,498 324,030,457

Appropriations

Proposed Dividend on Equity Shares 18,130,000 16,050,000

Corporate Dividend Tax 2,879,146 2,727,698

Corporate dividend tax pertaining to earlier year - 211,665

Transfer to General Reserve 200,000,000 4,096,807

Balance Carried Forward to Balance Sheet 300,041,352 300,944,287

Earnings per share of Face Value of Rs. 10 each

Basic 13.64 9.28

Diluted 13.64 9.28

Weighted average number of shares of Face Value of Rs. 10 each

Basic 16,135,479 14,710,822

Diluted 16,135,479 14,718,938

Significant Accounting Policies & Notes to Accounts P

Profit and Loss Accountfor the year ended 31st March, 2011

Amount in Rs.

Schedules referred to herein from an integralpart of Profit and Loss Account






A. N. SinghDirector

40






A. N. SinghDirector

Particulars 2010 - 2011 2009 - 2010

A. Cash from Operating Activities

Net Profit before tax and extraordinary items 223,893,058 162,066,347

Adjustments for:

Prior Period Adjustments (Net) - (14,933,494)

Depreciation (Rs. 44,37,319/- pertainingto earlier years) 9,215,779 21,056,558

Interest Income (985,100) (2,001,943)

Dividend Income (691,898) (160)

Interest and financial charges 184,909 288,191

Investments written off - 11,366

Proceeds from sale of fixed assets (89,449) -

Provision for Employee Benefits 1,061,639 8,695,880 769,175 5,189,693

Operating Profit /(Loss) before workingcapital changes 232,588,937 167,256,040

Adjustment for changes in :

Inventories (72,184,852) (73,364,462)

Trade & other receivables (316,285,326) (10,121,231)

Trade & other payables 141,161,654 (247,308,524) 21,205,788 (62,279,905)

Cash generated from operations (14,719,587) 104,976,135

Income tax paid (net) (3,811,860) (511,633)

Net Cash Flow before extraordinary items (18,531,447) 104,464,502

Extraordinary items - -

Net Cash Flow from/(used in) Operating Activities (18,531,447) 104,464,502

B. Cash Flow from Investing Activities

Investment in Fixed Assets / in New Projects (176,334,777) (124,095,984)

Proceeds from Sale of Fixed Assets 1,444,048 -

(Increase)/decrease in other Investment (35,121,783) (8,300,160)

Interest Income 985,100 2,001,943

Dividend Income 691,898 160

Net Cash Flow from/(used in) Investing Activities (208,335,514) (130,394,041)

C. Cash Flow from Financial Activities

Proceeds from issue of Share Capital 20,800,000 23,500,000

Proceeds from Share Warrants (40,175,000) 61,106,250

Increase in Share Premium 135,200,000 152,750,000

Increase/(Decrease) in Secured Loans (951,599) (1,106,272)

Dividend paid (Including Dividend Tax) (18,715,705) (16,028,315)

Interest & Financial charges (184,909) (288,191)

Net Cash Flow from/(used in) Financing Activities 95,972,787 219,933,472

Net Changes in Cash & Cash Equivalents (130,894,173) 194,003,933

Cash and Cash Equivalents at the Beginning of year 150,335,370 11,530,703

Cash and Cash Equivalents at the end of the year 19,441,196 150,335,370

Amount in Rs.

Cash Flow Statementfor the year ended 31st March, 2011


SchedulesForming Part of Accounts

Amount in Rs.

Particulars As at As at31st March, 2011 31st March, 2010

Schedule - A

Share Capital

Authorised:

2,00,00,000 Equity Shares of Rs. 10 each 200,000,000 200,000,000

Issued, Subscribed and Paid Up:

1,81,30,000 ( Previous Year 1,60,50,000)Equity Shares of Rs.10 (previous year Rs. 10 each) 181,300,000 160,500,000

181,300,000 160,500,000

Schedule - B

Reserves & Surplus

Security Premium Account:

As per last Balance Sheet 219,750,000 67,000,000

Add: Received during the year 135,200,000 354,950,000 152,750,000 219,750,000

Capital Reserve:

As per last Balance Sheet 189,885 189,885

General Reserve:

As per last Balance Sheet 12,362,915 8,266,108

Add: Transfer from Profit & Loss Account 200,000,000 212,362,915 4,096,807 12,362,915

Profit & Loss Account: 300,041,352 300,944,287

Total 867,544,152 533,247,087

Schedule - C

Loan Funds

(1) Secured:

i. Soft Loan from National Horticulture Board 8,004,000 8,004,000

ii. Term Loan from Banks 1,041,076 9,045,076 1,992,676 9,996,676(Secured against hypothecation of vehicles)

Total 9,045,076 9,996,676

Amount payable within one year 8,860,697 8,962,502

Schedule - D

Deferred Tax Liabilities

a. Deferred Tax Liability

(i) Related to Fixed Asset 6,392,009 4,481,311

b. Deferred Tax Asset

(i) On disallowances under IncomeTax Act, 1961 315,421 262,400

Net Deferred tax liability 6,076,589 4,218,911

42


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Amount in Rs.


Schedule - F

Investments (Long Term)

Non Trade

in Government Securities (Unquoted)

National Savings Certificates 18,000 18,000

in Mutual Funds (Quoted)

Kotak Mahindra Mutual Funds (Net present valueRs. 52756080 (8302562) 43,422,801 8,300,160

in Others (Unquoted)

Time Share - Sterling Holiday Resorts (I) Pvt. Ltd 72,696 73,554

43,513,497 8,391,714

43,513,497 8,391,714

Schedule - G

Current Assets, Loans & Advances

Current Assets:

Inventories ( at lower of cost and net realisable valueas certified by the Management):

Raw Materials 7,683,157 1,920,732

Packing Materials 4,000,965 3,625,033

Work-in-Progress 264,877,797 148,343,236

Finished Goods 150,666,229 427,228,148 69,136,797 223,025,799

Sundry Debtors - (Unsecured, Considered goodexcept to the extent specifically provided):

Outstanding for more than six months -Considered good 45,218,486 31,437,324

- Doubtful 905,578 905,578

46,124,063 32,342,902

Less: Provision for doubtful debts 905,578 905,578

45,218,486 31,437,324

Others 379,316,148 424,534,634 85,854,631 117,291,955

Cash and Bank Balances:

Cash on Hand 11,017 69,988

Demand Draft on Hand - 6,900,000

Balance with Scheduled Banks:

Current Accounts 18,026,179 79,349,572

Deposit Accounts 1,404,000 19,441,196 64,015,809 150,335,370

Loans & Advances:

(Unsecured - considered good unless otherwisestated) Advances recoverable in cash or in kind orfor value to be received 17,158,897 10,146,250

Deposits with Statutory/Public Bodies & others 3,831,566 20,990,463 1,801,566 11,947,816

Total 892,194,441 502,600,939

44

Amount in Rs.


Schedule - H

Current Liabilities and Provisions

Current Liabilities:

Sundry Creditors:

- Due to Micro, Small & Medium Enterprises - -

- Others 139,887,922 4,130,404

Taxes & Levies 2,205,709 3,869,948

Advance received 6,573,932 13,184,847

Trade Deposits received 15,948,881 12,947,415

Interest accrued and due 782,877 1,177,489

Other Liabilities 33,542,739 198,942,061 22,470,304 57,780,407

Provisions:

Proposed Dividend 18,130,000 16,050,000


Taxation (Net of Advance Tax) 5,897,396 7,780,088

Gratuity 2,572,188 29,540,724 1,510,549 28,068,335

Total 228,482,785 85,848,742



Amount in Rs.

Particulars Year ended Year ended31st March, 2011 31st March, 2010

Schedule - I

Sales

Seeds 838,938,194 596,877,678

Agricultural Biotech Products 148,454,999 202,940,313

Total 987,393,193 799,817,991

Schedule - J

Other Income

Interest from Banks (Tax Deducted at SourceRs. 96,668/-(Rs.191,455/-) 985,100 2,001,943

Interest from others ( Gross, TDS Rs.Nil ) 2,619,203 302,392

Dividend 691,898 160

Scrap Sales 36,789 56,153

Provision no longer required written back 4,073,071 40,025

Profit on Sale of Asset 89,449 -

Miscellaneous Income 915,848 1,129,886

Total 9,411,358 3,530,559

Schedule - K

Material Cost:

Raw Materials & Cultivation 410,641,423 217,742,672

Consumable Stores 1,591,371 122,338


Depletion/(Accretion) in Inventories:

Opening Stock of WIP 148,343,236 93,841,013

Opening Stock of Finished Goods 69,136,797 50,198,252

217,480,033 144,039,265

Closing Stock of WIP 264,877,797 148,343,236

Closing Stock of Finished Goods 150,666,229 69,136,797

415,544,026 (198,063,993) 217,480,033 (73,440,768)

221,721,615 150,582,208

Schedule - L

Payments to and Provision for Employees:

Salaries, Wages & Bonus 34,079,310 19,352,878

Contribution to Providend and other funds 1,670,762 914,855

Workmen & Staff Welfare Expenses 479,487 192,148

Gratuity 951,314 789,944

37,180,873 21,249,825


46

Amount in Rs.

Particulars Year ended Year ended31st March, 2011 31st March, 2010

Schedule - M

Research Expenses

Research Materials 421,182 161,262

Geoclimatic Trials 161,815,398 145,509,311

Consumables 120,476 1,113,356

Salary 6,855,734 4,517,290

Total 169,212,790 151,301,219

Schedule - N

Operating and Other Overheads

Labour Charges 1,633,288 1,261,791

Power, Fuel & Water 2,683,014 2,213,286

Repairs and Maintenance:

Building 1,268,803 455,575

Plant & Machinery 476,422 486,114

Others 1,355,843 2,180,901

Rent & Hiring Charges 2,762,994 2,159,566

Rates & Taxes 1,136,190 1,662,264

Insurance 865,036 130,175

Travelling & Conveyance 22,839,889 10,644,282

Communication expenses 725,832 561,821

Postage & Courier Charges 490,813 367,542

Advertisement & Publicity 2,081,660 1,356,803

Printing & Stationery 786,112 477,211

Lease & License Fee 602,766 240,000

Legal & Professional Fee 4,617,141 2,523,136

Donations 15,000 12,200

Director’s Remuneration 5,303,226 1,200,000

Auditors’ Remuneration 275,750 275,750

Director’s Sitting Fee 14,000 12,000

Freight 9,853,819 5,674,215

Rebates & Discounts 137,826,293 148,148,222

Commission 2,377,308 2,214,482

Business Promotion 131,898,011 112,574,407

Loss on sale of Investment 69,258 -

Bad Debts 738,105 -

Miscellaneous 1,451,997 2,727,380

Total 334,148,570 299,559,122

Schedule - O

Financial Charges

Interest on Vehicle Loan 184,909 288,191

Interest on Security Deposit 1,001,074 1,267,795

Bank Charges 245,884 414,604

Total 1,431,867 1,970,590


Annual Report

2010-1147

Schedules forming part of the accounts for the year ended 31st March, 2011Schedule P - Significant accounting policies and notes to accounts.

A. Significant Accounting Policies :

1) Basis of Accounting :

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and asper applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 andrelevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting andrecognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied bythe Company and are consistent with those used in the previous year.

2) Use of estimates :

The preparation of financial statements in conformity with the generally accepted accounting principles requiresthe Management to make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosure of contingent assets and liabilities at the date of the financial statements and the results ofoperations during the period under review. Although these estimates are based upon the Management’s bestknowledge of current events and actions, actual results could differ from these estimates.

3) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises thepurchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its workingcondition for its intended use and attributable borrowing costs. Capital Work-in-Progress comprises of advancespaid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use as at theBalance Sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

4) Depreciation / Amortization :

1. The Company provides depreciation on Fixed Assets on Straight Line Method at the rates and in the mannerprescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the yearhas been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are fully depreciated.

2. Amortization on Leasehold improvements has been done in proportion to the period of lease.

5) Investments :

Investments that are readily realizable and intended to be held for not more than a year are classified as currentinvestments. All other investments are classified as long-term investments. Current investments are carried atlower of cost and fair value determined on an individual investment basis. Long term investments are carried atcost.

6) Inventories :

a. Inventories comprises of Raw Materials, Stores, Spares and Consumables, Packing Materials, Work-in-Progressincluding Foundation Seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing theinventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows :

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizablevalue on FIFO basis. However, materials and other items held for use in the production of inventories are notwritten down below cost if the finished products in which they will be incorporated are expected to be sold ator above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes directmaterials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost ofseeds is determined on standard cost basis.

7) Employee Benefits :

a. Post-employment benefit plans :

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employeeshave rendered services entitling them to contributions. For defined benefit schemes, the cost of providing

NotesForming Part of Accounts

48

benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at eachBalance Sheet Date. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the periodin which they occur. Past service cost is recognized immediately to the extent that the benefits are alreadyvested, and otherwise it is amortized on straight-line basis over the average period until the benefits becomeeligible for being vested.

b. Short Term Employee Benefits :

The amount payable on account of short term employee benefits comprising largely of salaries and wages,annual bonus is valued on an undiscounted basis and charged to the Profit and Loss Account for the year.

8) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company andthe revenue can be reliably measured.

a. Sale of Goods :

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods havepassed to the buyer which generally coincides with dispatch of goods to the customer and when there is nosignificant uncertainty existing regarding the amount of the consideration that will be derived from the sale ofgoods.

b. Interest Income :

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding andthe rate applicable.

c. Dividend Income :

Dividend from Investment is recognized when the right to receive payment is established.

9) Research And Development :

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at theapplicable rates. Revenue expenditure is charged to Profit and Loss Account in the year in which it is incurred.

10) Borrowing Costs :

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalizedas part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one thatnecessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged toProfit and Loss Account in the year in which they are incurred.

11) Taxation :

a. Current Tax :

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessmentyear.

b. Minimum Alternative Tax (MAT) :

In case the Company is liable to pay income tax u/s 115JB of Income Tax Act,1961 (i.e. MAT), the amount of taxpaid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement), only if there is convincingevidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at eachBalance Sheet date.

c. Deferred Tax :

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have beenenacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account ofbrought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtualcertainty of its realization supported by convincing evidence. Deferred tax asset on account of other timingdifferences are recognized only to the extent there is a reasonable certainty of its realization. At each BalanceSheet date the carrying amount of deferred tax assets are reviewed to reassure realization.


Annual Report

2010-1149

12) Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairmentof the carrying amount of the Company’s assets. If any indication exists, the recoverable amount of such assetsis estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverableamount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible toestimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of thecash generating unit to which the asset belongs.

13) Foreign Currency Transactions :

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 “The Effects ofChanges in Foreign Exchange Rates”, notified by the Companies (Accounting Standards) Rules, 2006.

14) Operating Leases :

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained bythe Lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

15) Earnings per Share :

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders(after deducting preference dividends and attributable taxes) by the weighted average number of equity sharesoutstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equityshareholders and the weighted average number of shares outstanding during the period are adjusted for theeffects of all dilutive potential equity shares.

16) Accounting for Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when the Company has a present obligation as a result of past event and it is probablethat an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate canbe made. Provisions are not discounted to present value and are determined as best estimates required settlingthe obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of :

a. a present obligation arising from past events, when it is not probable that an outflow of resources will berequired to settle that obligation ;

b. a present obligation when no reliable estimate is possible; and

c. a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are not recognized in the financial statements.

B. Notes to Accounts :

1) The Income generated from cultivation and marketing of seeds, vegetables and fruits, which is in the nature ofagricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961. Expenses which arecommon for both agricultural activities and agri biotech products are bifurcated on an estimated basis for thepurpose of computing taxable income.

2) Share warrants application money includes Rs. 181 lakhs (Previous Year Rs. 529 lakhs) towards security premium.

3) The Honorable Court of Civil Judge (SR .DN), Doddaballapur, vide their order dated 8th December 2009 closedthe case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interestthereon from the Company since NHB has not taken any steps to resolve the issue despite the directives fromthe said court. However, as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interestthereon due to NHB is not withdrawn.

4) The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelableoperating leases during the year was Rs. 27,62,994/- (Rs. 21,59,566/-).


50

5) Deferred Tax :

The Company has accounted for deferred tax in accordance with Accounting Standard 22 ‘Accounting for Taxeson Income’, notified by the Companies (Accounting Standards) Rules, 2006. The deferred tax liability comprisesfollowing components :

Amt. in Rs.

Particulars 31.03.2011 31.03.2010

a. Deferred Tax Liability : Timing difference on account of depreciation 63,92,009 44,81,311

b. Deferred Tax Asset :Disallowance on account of non deduction of TDS 3,15,421 2,62,400

Net Deferred Tax Liability (a-b) 60,76,589 42,18,911

6) Retirement Benefit Plans :

a) Defined contribution plans :

The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligibleemployees. Under the scheme, the Company is required to contribute a specified percentage of the payrollcosts to fund the benefits. The Company recognized Rs. 16,70,762/- (Rs. 9,24,215/-) for provident fundcontributions in the Profit and Loss Account including contribution to the Managing Director. The contributionspayable to these plans by the Company are at rates specified in the rules of the respective scheme.

b) Defined benefit plans :

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

The present value of the defined benefit obligation and current service cost were measured using the ProjectedUnit Credit Method, with actuarial valuations being carried out at each Balance Sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company’sfinancial statements as at March 31, 2011:

Amount in Rs.


I. Change in benefit obligations :

Projected benefit obligation, beginning of the year(April 1, 2010) 15,10,549 -

Service cost 4,80,674 -

Interest cost 1,56,865 -

Actuarial (gain) / loss 4,24,100 -

Benefits paid - 20,769

Projected benefit obligation, end of the year 25,72,188 15,10,549

II. Change in plan assets :

Fair value of plan assets, beginning of the year(April 1, 2011) - -

Expected return on plan assets - -


Annual Report

2010-1151


Employer’s contributions - -

Benefits paid - -

Actuarial gain - -

Fair value of plan assets at the end of the year -

Excess of (obligation over plan assets)/plan assets over obligation (25,72,188) (15,10,549)

(Accrued liability) / Prepaid benefit (25,72,188) (15,10,549)

III. Net gratuity and other cost for the year endedMarch 31, 2011 :

Service cost 10,61,639 7,89,944

Interest on defined benefit obligation - -


Net actuarial gain recognized in the year - -

Net gratuity and other cost 10,61,639 7,89,944

Actual Return on Plan Assets - -

IV. Category of Assets as at March 31, 2011:

Special Deposits Scheme Nil Nil

Insurer Managed Funds Nil Nil

Others Nil Nil

Total Nil Nil

V. Assumptions used in accounting for the gratuity plan :

Discount rate 8.05% 8%

Salary escalation rate 10% - First 10% - First4 years and 5 years and

7% thereafter 7% thereafter

Retirement Age 58 years 58 years

7) Auditors’ Remuneration :

Amount in Rs.

No.Particulars 2010 -11 2009 -10

1 Statutory Audit Fee 2,00,000 2,00,000

2 Tax Audit Fee 50,000 50,000

3 Service Tax on above 25,750 25,750

Total 2,75,750 2,75,750

Amount in Rs.


52

8) Managerial Remuneration :

Amount in Rs.

No.Particulars 2010-11 2009-10

1 Salary 52,93,866 11,90,640

2 Employer’s contribution to Provident Fund 9,360 9,360

3 Perquisites - 3,00,000

Total 53,03,226 15,00,000

9) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act,2006 has been determined to the extent such parties had been identified on the basis of information availablewith the Company in this regard.

2010 - 11 2009 - 10Particulars Principal Interest Principal Interest

Principal amount and the interest due thereon remaining unpaidto any supplier as at the end of each accounting year ; Nil Nil Nil Nil

The amount of interest paid by the buyer in terms of Section 16 ofthe Micro, Small and Medium Enterprises Development Act, 2006,along with the amount of the payment made to the supplier beyondthe appointed day during each accounting year ; Nil Nil Nil Nil

The amount of interest due and payable for the period of delay inmaking payment (which have been paid but beyond the appointedday during the year) but without adding the interest specified underthe Micro, Small and Medium Enterprises Development Act, 2006 ; Nil Nil Nil Nil

The amount of interest accrued and remaining unpaid at the end ofeach accounting year; Nil Nil Nil Nil

The amount of further interest remaining due and payable even inthe succeeding years, until such date when the interest dues asabove are actually paid to the small enterprise, for the purpose ofdisallowance as a deductible expenditure under Section 23 of theMicro, Small and Medium Enterprises Development Act, 2006. Nil Nil Nil Nil

This information has been compiled based on the details available with the Company.

10) Additional particulars as required under Part II of Schedule VI of the Companies Act, 1956.

The Company is engaged in the business of Production and sale of Agro Biotech products, seeds and vegetables.The particulars required to be disclosed in 3, 4B and 4C of Part II of Schedule VI to the Companies Act, 1956 arefurnished to the extent applicable to the Company for the year under review.

As per the general exemption given under Section 211 of the Companies Act, 1956, vide press note no. 2/2011dated 08.02.2011, the Company has not furnished information prescribed in para 3 (i) (a) and 3 (ii) (b) of PartII of Schedule VI to the Companies Act, 1956.

Capacity and Production :

Particulars 2010-11 2009-10

Licensed Capacity NA NA

Installed Capacity (As certified by the Management):Seeds 2,50,000 kgs 2,50,000 kgsBiocides 15,00,000 kgs 15,00,000 kgs


Annual Report

2010-1153


Actual production :Seeds* 2,10,477 kgs 1,71,248 kgsBiocides 9,09,910 Ltrs 11,90,526 ltrs

8,36,620 kgs 11,93,302 kgs

* Includes produced through contract farming.

a) Details of Value of Imports, Earnings in foreign currency, and Expenditure in foreign currency :

Amount in INR


i) CIF value of Imports(a) Stores, supplies & spares; Nil 24,893

ii) Earnings in foreign currency 5,35,500 Nil

iii) Expenditure in foreign currency Travel Expenses 2,82,000 Nil

b) Value and % of Materials Consumed :

Amount in Rs.


Amount % of Amount % ofConsumption Consumption

Value of Materials Consumed :

Imported - - - -

Indigenous 3,61,640,252 100% 22,40,22,977 100%

Total 3,61,640,252 100% 22,40,22,977 100%

11) Related Party Disclosure :

1. Relationship during the year :

(a) Subsidiaries :

None

(b) Associates :

None

(c) Key Management Personnel :

Dhirendra Kumar – Managing Director

(d) Relatives of Key Management Personnel:

A.N. Singh

Veerendra Kumar Singh

Alka Singh

Geeta Singh

Karan Singh

(e) Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have significantinfluence :


{ {

54

Sanatan Herbal & Naturals Limited

Camson Farm Produce Private Limited

Shashtika Health Resorts & Spa Private Limited

Camson Green Valley Products Private Limited

2. Transactions carried out with related parties referred in 1 above :

Amount in Rs.

Related Transaction

Name of the party Director’sRemuneration Rent Deposit Lease rent Sales

Dhirendra Kumar 53,03,226(12,33,566)

Camson Green Valley Products 9,12,377Private Limited (Nil)

Camson Farm 21,00,000 2,49,500Produce Private Limited (-) (2,40,000)

Amount in INR

Related Transaction

KMP Dividend Value of Shares Loan given Loan taken Allotted (including Repaid recovered security premium)

Dhirendra Kumar 9,26,580 7,42,50,000(8,96,480) (Nil)

Relatives of Key 16,27,550Managerial Personnel (16,27,550)

Camson Green NilValley Products (4,109)Private Limited

Camson Farm 19,85,240 1,98,000Produce Private Limited (Nil) (Nil)

Shashtika Health 7,42,50,000 1,400Resorts & Spa Private Limited (Nil) (1,400)

Sanatan Herbal & 5,55,700 7,69,157 25,15,335Naturals Limited (Nil) (2,00,20,265) (2,00,20,265)

12) Earnings per Share (EPS) :

Earnings per share is calculated in accordance with Accounting Standard 20 – “Earnings per share”, notifiedby the Companies (Accounting Standards) Rules, 2006.

Amount in Rs.


Profit Before Tax & Extra Ordinary Items 22,38,93,058 14,71,32,853

Less : Current year Tax 19,29,168 63,53,696 Deferred Tax 18,57,678 37,86,846 42,18,912 1,05,72,608


Annual Report

2010-1155


Profit After Tax but before ExtraOrdinary Items 22,01,06,211 13,65,60,245

Extra Ordinary Items - -

Profit After Tax and ExtraOrdinary Items 22,01,06,211 13,65,60,245

Weighted average no. of Equity shares :Basic 1,61,35,479 1,47,10,822Diluted* 1,61,35,479 1,47,18,938

Earnings per Share - Basic :a. Before extra ordinary items 13.641 9.283b. After extra ordinary items 13.641 9.283

Earnings per Share – Diluted :

a. Before extra ordinary items 13.641 9.283b. After extra ordinary items 13.641 9.283

Note : The share warrants not allotted have been subsequently forfeited and hence not considered for dilutedshares.

13) Segment Information :

In accordance with AS-17 “Segment Revenue”, notified by the Companies (Accounting Standards) Rules, 2006,segment revenue, segment results and other information are as under :

A. Primary Segment

(a) Business Segment :

Segment identified by the Company comprises as under:

i. Seeds & Vegetables

ii. Agri Biotech Products

(b) Segment Revenue & Expenses :

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities ofthe segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segmenton a reasonable basis have been disclosed as “Unallocable”.

(c) Segment Assets & Liabilities :

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, taxrelated assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis havebeen disclosed as “Unallocable”.

B. Secondary Segment

The entire turnover of the Company is from domestic business and there is no geographical/secondary segmentto be reported.

Amount in Rs.

Particulars Seeds & Vegetables Agri Biotech Products Consolidated Total

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

Segment Revenue 83,89,38,194 59,71,12,622 14,84,54,999 20,40,36,527 98,73,93,193 80,11,49,149

Segment Result 22,77,45,749 14,76,87,558 44,35,814 2,31,77,609 23,21,81,563 17,08,65,167


56

Amount in Rs.


2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

UnallocatedCorporate Expenses 1,28,30,640 91,72,590

UnallocatedCorporate Incomes (23,69,698) (40,025)

Operating profitbefore interest& taxes 22,17,20,621 16,17,32,602

Interest Expense 14,31,867 19,70,590

Interest Income (36,04,303) (23,04,335)

Profit Before Tax 22,38,93,057 16,20,66,346

Taxes :

Current tax 19,29,168 63,53,696

Fringe Benefit tax - -

Deferred tax 18,57,678 42,18,912

Profit After Tax forthe year 22,01,06,211 15,14,93,739

Prior PeriodAdjustments - 36,37,661 - 1,12,95,833 - 1,49,33,494

Profit after tax 22,01,06,211 13,65,60,245

OtherInformation

Segment Assets

Fixed Assets 15,31,76,481 21,18,84,304 4,79,10,789 4,94,39,644 20,10,87,270 26,13,23,948

Current Assets 73,03,05,818 27,38,37,895 11,37,73,807 4,94,13,823 84,40,79,625 32,32,51,718

UnallocatedCorporate Assets

Fixed Assets 17,65,84,643 8,26,01,064

Investments 4,35,13,497 83,91,714

Current Assets 4,81,14,816 17,93,49,221

Total Assets 131,33,79,851 85,49,17,665

Segment Liabilities 11,60,78,722 1,01,32,154 2,38,09,200 60,15,157 13,98,87,922 1,61,47,311

UnallocatedCorporate Liabilities 117,34,91,929 83,87,70,354

Total Liabilities 131,33,79,851 85,49,17,665


Annual Report

2010-1157

14) Contingent Liabilities : Nil

15) The Company is in the process of filing revised returns under various State Sales Tax Act (VAT). Reconciliation ofliability accounts relating to VAT is in progress and the effect, if any, will be accounted in the year in which it isreconciled/ revised returns filed.

16) Foundation Seeds included earlier under Fixed Assets and depreciated are now grouped under inventoriesbased on its written down value. Issue of the same for further production is accounted as consumption .There is no impact on the revenue and reserves of the Company on account of this change.

17) Previous year figures have been regrouped / reclassified wherever necessary to conform to current year classification.Figures in brackets are in respect of previous year.

Schedules referred to herein from an integral

part of Balance Sheet and Profit & Loss Account






A. N. SinghDirector


58

Balance Sheet Abstract

37

AUDITORS’ REPORT


1. We have audited the attached Balance Sheet of Camson Bio Technologies Limited as at 31st March 2012, and

also the Profit and Loss Account and the Cash Flow statement for the year ended as on that date, both

annexed thereto. These financial statements are the responsibility of the Company’s Management. Our

responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free of material mis-statements. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the

accounting principles used and significant estimates made by the Management, as well as evaluating the

overall financial statement presentation. We believe that our audit provides a reasonable basis for our

opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies (Auditor’s

Report) (Amendment) Order, 2004 (the ‘order’) issued by the Central Government in terms of Section 227

(4A) of the Companies Act, 1956 we give in the annexure, a statement on the matters specified in paragraphs

4 and 5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to above, we report that:

a. We have obtained all the information and explanations which, to the best of our knowledge and belief,

were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it

appears from our examination of those books;

c. The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report

are in agreement with the books of account;

d. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with

by this report comply with the accounting standards, to the extent applicable referred to in subsection

(3C) of the Section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors, taken on record by the Board of

Directors, we report that none of the directors is disqualified as at 31st March 2012 from being

appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,

1956; and

f. In our opinion, and to the best of information and according to the explanation given to us, the said

Accounts, give the information required by the Companies Act, 1956 in the manner so required give a

true and fair view

i. in the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2012;

ii. in the case of Profit and Loss Account, of the profit of the Company for the year ended on that date; and

iii. in the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

For ISHWAR & GOPAL,

Chartered Accountants

K. V. Gopalakrishnayya

Partner

Membership No.21748 Place: Bangalore

Firm Registration No. 001154S Date: 30.08.2012

38

ANNEXURE TO THE AUDITORS’ REPORT [Referred to in paragraph (3) of our report of even date] (i) a. The Company has maintained proper records showing full particulars including

quantitative details and situation of the fixed assets.

b. According to the information and explanation given to us, the fixed assets have been

physically verified by the Management during the year in a phased periodic manner

which in our opinion is reasonable having regard to the size of the Company and the

nature of its assets. No material discrepancies were noticed on such verification.

c. As explained to us the Company has not disposed off any fixed asset during the year

under review.

(ii) a. As explained to us, inventories were physically verified during the year by the Management at reasonable intervals.

b. In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and nature of the business.

c. The Company has strengthened inventory records which in our opinion need to be modified to record the movement and balances of the inventory on regular basis. We have been informed that no material discrepancies have been noticed on physical verification of stocks with the inventory records maintained by the Company.

(iii) a. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to Companies, Firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b. According to the information and explanations given to us, the Company has taken

unsecured loans from four parties covered in the register maintained under section 301 of

the Companies Act, 1956. Maximum amount involved during the year was Rs 2,80,09,178/

and balance as on year end was Rs 2,48,71,146/

(iv) In our opinion and according to the information and explanations given to us, internal control systems with regard to purchase of inventory, fixed assets, and with regard to sale of goods needs to be strengthened to make it commensurate with the size of the Company and the nature of its business. During the course our audit, we have been informed that the company has initiated corrective steps to address the weakness in internal controls.

(v) a. To the best of our knowledge and belief and according to the information and explanations given to us, transactions to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register

b. As per the information and explanations given to us, the Company during the year under review has not entered into any transactions exceeding Rs Five lakhs in respect of any party which need to be recorded in the register maintained under section 301 of the Companies Act, 1956.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits in terms of the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956.

(vii) In our opinion, internal audit system of the Company needs to be strengthened to make it commensurate with the size and nature of its business.

39

(viii) The Central Government has not prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of any of the activities of the company.

(ix) a. According to the information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues except for income tax where there is slight delay in a few cases. According to the information and explanations given to us, income tax dues of Rs 1,61,731/ is outstanding as on 31st March 2012 for a period of more than six months from the date they became payable

b. According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and cess which have not been deposited on account of any dispute.

(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year and in the immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks.

(xii) In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of securities by way of pledge of shares, debentures and other securities.

(xiii) Company is not a chit fund/nidhi/mutual benefit fund/society. Accordingly, clause 4 (xiii) of the Companies (Auditor’s Report) Order, 2003 is not applicable to the company during the year under audit.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. All the investments are held by the Company in its own name.

(xv) The Company has not given any guarantee for loans taken by others from financial institutions or banks.

(xvi) Based on the explanation given to us, the term loans were applied for the purpose for which loans are obtained.

(xvii) According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, short term funds have not been used for long term investments.

(xviii) The Company has not made any preferential allotment of shares to parties covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company did not have any outstanding debentures during the year under review.

(xx) The Company has not raised any money by public issues during the year.

(xxi) Based upon the audit procedures performed by us and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For ISHWAR & GOPAL, Chartered Accountants K. V. Gopalakrishnayya Partner Membership No. 21748 Place: Bangalore Firm Registration No. 001154S Date: 30.08.2012

40

CAMSON BIO TECHNOLOGIES LIMITED

Balance Sheet as at 31st March 2012 (All amounts expressed in Indian Rupees)

Sl. No

PARTICULARS Note No.

As at As at

31-Mar-2012 31-Mar-2011

I EQUITY AND LIABILITIES

Shareholders' Funds

Share Capital 3

181,300,000

181,300,000

Reserves and Surplus 4

1,074,619,080

867,544,152

Money Received Against Share Warrants

-

20,931,250

1,255,919,080 1,069,775,402

Non-Current Liabilities

Long Term Borrowings 5

25,321,814

1,898,686

Deferred Tax Liabilities (Net) 6

7,218,266

6,076,589

Long Term Provisions 7

3,168,879

2,463,177

35,708,959 10,438,452

Current Liabilities

Short Term Borrowings 8

98,591,442

8,004,000

Trade Payables 9

78,656,367

138,141,744

Other Current Liabilities 10

39,654,463

59,037,129

Short Term Provisions 11

23,147,215

27,077,546

240,049,487 232,260,419

TOTAL

1,531,677,526

1,312,474,273

II ASSETS

Non-Current Assets

Fixed Assets

Tangible Assets 12

345,935,785

266,027,746

Intangible Assets 12A

349,875

65,925

41

Capital Work in Progress

221,185,588

111,578,243

Non-Current Investments 13

90,696

90,696

Long Term Loans & Advances 14

64,909,243

6,668,356

632,471,186 384,430,965

Current Assets

Current Investments 15

-

43,422,801

Inventories 16

400,062,758

427,228,148

Trade Receivables 17

469,346,586

423,629,056

Cash & Cash Equivalents 18

8,591,421

19,441,196

Short Term Loans & Advances 19

21,127,502

14,322,107

Other Current Assets 20

78,073

-

899,206,339 928,043,308

TOTAL

1,531,677,526

1,312,474,273

Significant Accounting Policies ,Additional Disclosures 1,2&28

As per our report of even date

for Ishwar and Gopal, For and on behalf of the Board of Directors

Chartered Accountants,

K V Gopalakrishnayya Partner

Dhirendra Kumar A N Singh

Membership Number 021748 Managing Director Director

Firm Registration No : 001154S

Place : Bangalore Malatesh G Kalal

Date : 30.08.2012 Company Secretary


42

(All amounts expressed in Indian Rupees) Statement of Profit and Loss as at 31st March, 2012

Sl. No

Particulars Note No For the Year Ended For the Year Ended

31-Mar-2012 31-Mar-2011

INCOME

Revenue from Operations 21

1,122,390,210 987,393,193

Other Income 22

4,937,088 9,411,358

Total Revenue

1,127,327,298 996,804,551

EXPENSES

Cost of Cultivation/ Materials Consumed

23

243,560,587

420,046,097

(Increase) / Decrease in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

24

25,448,930

(198,063,993)

Employee Benefits Expense 25

44,924,437 44,036,607

Financial Costs 26

3,618,699 1,431,867

Depreciation and Amortization Expense

12

16,364,559

9,215,779

Other Expenses 27

588,942,206 496,245,137

Total Expenses

922,859,417 772,911,494

Profit Before Tax

204,467,881 223,893,057

Tax Expense:

Current Tax

1,566,849

1,929,168

Current Tax relating to Prior Years Withdrawn

(3,896,646)

-

MAT Credit Entitlement

(1,566,849)

Deferred Tax

1,141,677

(2,754,969)

1,857,678 3,786,846

43

Profit(Loss) for the Year 20,72,22,850 22,01,06,211

Earning per Equity Share:

Basic 11.43 13.64

Diluted 11.43 13.64

Significant Accounting Policies ,Additional Disclosures

1,2&28




K V Gopalakrishnayya

Partner Dhirendra Kumar A N Singh



Place : Bangalore Malatesh G Kalal

Date : 30.08.2012 Company Secretary

44

CAMSON BIO TECHNOLOGIES LIMITED Notes to the Financial Statements for the year Ended 31st March 2012 (All amounts expressed in Indian Rupees)

3 SHARE CAPITAL

Particulars

As at 31.03.2012 As at 31.03.2011

Number Amounts in

INR Number Amounts in INR

Authorised

Equity Shares 2,00,00,000 20,00,00,000 2,00,00,000 20,00,00,000

Issued

Equity Shares 1,81,30,000 18,13,00,000 1,81,30,000 18,13,00,000

Subscribed and Paid Fully

Equity Shares 1,81,30,000 18,13,00,000 1,81,30,000 18,13,00,000

Total 1,81,30,000 18,13,00,000 1,81,30,000 18,13,00,000 a. Par value per Equity Share is Rs. 10 /= b. Reconciliation of the Shares Outstanding at the Beginning and at the end of the Reporting Period

Particulars

As at 31.03.2012 As at 31.03.2011

Number Amounts in

INR Number Amounts in INR

Equity Shares

Outstanding at the Beginning of the Period 1,81,30,000 18,13,00,000 1,81,30,000 18,13,00,000

Outstanding at the End of the Period 1,81,30,000 18,13,00,000 1,81,30,000 18,13,00,000

c. 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 an Equity Share 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 Share Holders in the 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 Shares held by the Equity Share Holders.

45

(All amounts expressed in Indian Rupees ) d. Shares held by each Shareholder holding more than 5 percent Shares specifying the number of Shares held

Name of the Shareholder

As at 31.03.2012 As at 31.03.2011

No. of

shares % of holding No. of

shares % of holding

held held

Dhirendra Kumar 19,16,580 10.57 926580 5.11

Camson Farm Produce Private Limited 10,61,093 5.85 19,85,240 10.95

Shashtika Health Resort & SPA Private Ltd

9,90,000 5.46

-

4 RESERVES & SURPLUS

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Securities Premium Account

Balance As Per Last Financial Statement

354,950,000

219,750,000

Add: Received During The Year

-

354,950,000

135,200,000

354,950,000

Capital Reserve

Balance as per Last Financial Statement

189,885

189,885

Add: Additions During the Year

20,931,250

21,121,135

-

189,885

General Reserve

Balance as per Last Financial Statement

212,362,915

12,362,915

Add: Additions During the Year

-

212,362,915

200,000,000

212,362,915

Surplus / (Deficit) in Statement of Profit & Loss A/c

Balance as per last Financial Statement

300,041,354

300,944,287

Profit for the Year 207,222,850 220,106,211

507,264,204

521,050,498

Appropriations

Proposed Dividend on Equity Shares

18,130,000

18,130,000


Transfer to General Reserve

-

200,000,000

Net surplus / (Deficit) in Statement of Profit & Loss

486,185,030

300,041,352

Total

1,074,619,080

867,544,152

46

5 LONG TERM BORROWINGS

(All amounts expressed in Indian Rupees )

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Term Loans

Term Loan from Banks - Secured 993,634 1,041,076

(Secured against hypothecation of Vehicles)

Other Long Term Borrowings from Related Parties

2,48,71,146 17,46,178

(Unsecured ,Interest free -Repayable after 31st March 2014)

Total Long Term Borrowings 2,58,64,780 27,87,254

Less: Current maturities of long term debt (refer note 10)

5,42,966 8,88,568

Total 2,53,21,814 18,98,686

Particulars of repayment of Term Loan to Banks

Year of Repayment Amount Amount

2011-12

-

888,568

2012-13

542,966

152,508

2013-14

281,439

-

2014-15

169,229

-

Total

993,634

1,041,076

6 DEFERRED TAX ASSETS / (LIABILITIES)

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Deferred Tax Liability on Account of Fixed Assets

72,67,504 63,92,009

Deferred Tax Assets on Account of Temporary Disallowances under Income Tax Act

49,238

315,420

Net Deferred Tax Liability 72,18,266 60,76,589

47

7 LONG TERM PROVISIONS

(All amounts expressed in Indian Rupees)

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Provision for Gratuity 3,168,879 2,463,177

Total 3,168,879 2,463,177

8 SHORT TERM BORROWINGS

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Loans Repayable on Demand

Cash Credit Facilities from a Bank - Secured

90,587,442 -

From National Horticultural Board -Unsecured

8,004,000 8,004,000

Total 98,591,442 8,004,000

The Cash credit facilities from HDFC Bank Limited are Secured by exclusive Hypothecation of Stocks and Book Debts (Present & Future) of the Company and further Secured by First Charge on the Land and Building situated at Plot No 6 A and B, Phase -4, Industrial Area, Gwalthai, Dist: Bilasapur, Himachal Pradesh, Pin - 174 201.

9 TRADE PAYABLES

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Due to Micro, Small and Medium Enterprises*

-

-

Due to Others 78,656,367 138,141,744

Total 78,656,367 138,141,744

* As per the information available with the Company

10 OTHER CURRENT LIABILITIES

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Current Maturities of Long Term Debts (refer note 5)

5,42,966 8,88,568

Interest Accrued and Due on Borrowings

-

782,877

Taxes & Levies 1,714,634 2,205,709

Trade Deposit Received 16,276,325 15,948,882

Other Liabilities 10,121,532 32,345,081

Advances From Customers 10,369,884 6,573,932

Unpaid Dividend 629,122 292,080

Total

39,654,463

59,037,129

48

11 SHORT TERM PROVISIONS


PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Provision for Gratuity 4,92,094 1,09,011

Proposed Dividend 1,81,30,000 1,81,30,000


Provision for Taxation (Net of Advance Tax)

16,45,975 58,97,396

Total 2,31,47,215 2,70,77,546

12. FIXED ASSETS OF TANGIBLE

Tangible

Gross Block Depreciation/Amortization Net Block

As at 1st April, 2011

Additions during the

year

Deductions during the

year

As at 31st March, 2012


For the Year

Withdrawn As at 31st

March, 2012



LAND - FREEHOLD

9,780,800

9,780,800

-

-

9,780,800

9,780,800

LAND -LEASEHOLD

1,242,500

1,242,500

-

-

1,242,500

1,242,500

BUILDING

141,242,705

40,842,790

182,085,495

16,921,385

6,081,655

23,003,040

159,082,455

124,321,320

GREEN HOUSE

8,951,987

8,951,987

8,951,987

-

8,951,987

(0)

(0) PLANT AND MACHINERY

117,487,975

53,069,566

170,557,541

11,093,688

7,468,783

18,562,471

151,995,070

106,394,287

OFFICE EQUIPMENT

4,857,550

402,253

-

5,259,803

2,008,526

240,820

2,249,346

3,010,457

2,849,024

COMPUTER

2,452,782

518,389

2,971,171

116,507

408,716

525,223

2,445,948

2,336,275 FURNITURE & FIXTURES

13,320,570

69,095

13,389,665

2,641,562

843,935

3,485,497

9,904,168

10,679,008

VEHICLES

13,200,861

1,352,854

14,553,715

4,773,198

1,306,130

6,079,328

8,474,387

8,427,663

TOTAL

312,537,730

96,254,947

-

408,792,677

46,506,853

16,350,039

-

62,856,892

345,935,785

266,030,877

Capital WIP

111,578,243

183,229,049

73,621,704

221,185,588

221,185,588

111,578,243

GRAND TOTAL

424,115,972

279,483,996

73,621,704

629,978,265

46,506,853

16,350,039

-

62,856,892

567,121,373

377,609,119

Previous year

354,791,965

119,955,800

162,144,110

312,603,655

66,066,218

9,215,779

28,772,013

46,509,984

266,093,671

288,725,746 12A. INTANGIBLE ASSETS

Intangible

Gross Block Depreciation/Amortization Net Block


Additions during the

year

Deductions during the

year



For the Year

Withdrawn As at 31st

March, 2012



SOFTWARE

65,925

301,602

-

367,527

3,131

14,520

17,651

349,876

62,794

TOTAL

65,925

301,602

-

367,527

3,131

14,520

-

17,651

349,876

62,794

GRAND TOTAL

424,181,897

279,785,598

73,621,704

630,345,792

46,509,984

16,364,559

-

62,874,543

567,471,249

377,671,913

49

13 NON CURRENT INVESTMENTS (All amounts expressed in Indian Rupees )

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Investment in Government or Trust Securities

18,000

18,000

Others 72,696 72,696

Total 90,696 90,696

14 LONG TERM LOANS AND ADVANCES

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Capital Advances 4,00,06,989 28,36,790

Deposit - With Government Authorities

12,96,454 6,64,566

Trade /Security Deposits 2,36,05,800 31,67,000

Total 6,49,09,243 66,68,356

15 CURRENT INVESTMENTS

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Investments in Mutual Funds

-

43,422,801

Nil (20,96,392) Units of Kotak Mahindra Mutual Funds Net Present Value - Nil (Rs.5,27,56,080/=)

Total

-

43,422,801

16 INVENTORIES

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Raw Materials 5,045,980 7,683,157

Work in Progress 80,865,000 264,877,797

Finished Goods 309,230,097 150,666,229


Total 400,062,758 427,228,148

50

17 TRADE RECEIVABLES


PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Unsecured, Aggregate amount of Trade Receivables outstanding for a Period Exceeding Six months from the date they are Due for Payment

Considered Good 32,479,182 44,312,908

Considered Doubtful 1,805,578 905,578

Sub Total 34,284,760 45,218,486

Less: Provision for Doubtful Debts 1,805,578 905,578

32,479,182 44,312,908

Others - Considered Good 436,867,403 379,316,148

Total 469,346,586 423,629,056

18 CASH AND CASH EQUIVALENTS

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Balance with Banks

In Current Account 8,108,878 19,230,179

In Margin Deposit 144,386 200,000

Cash on Hand 338,157 11,017

Total 8,591,421 19,441,196

19 SHORT TERM LOANS AND ADVANCES

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Other Loans & Advances [Considered Good]

Advance to Suppliers 4,567,359 12,113,633

Employee Advances 2,850,401 2,208,474

MAT Credit Entitlement 1,566,849 -

Other Advances 12,142,893 -

Total 21,127,502 14,322,107

20 OTHER CURRENT ASSETS

PARTICULARS

As at As at

31-Mar-2012 31-Mar-2011

Prepaid Expenses 78,073 -

Total 78,073 -

51

21 REVENUE FROM OPERATIONS


PARTICULARS

For the Year Ended For the Year Ended

31-Mar-2012 31-Mar-2011

Sale of Products 1,122,390,210 987,393,193

Other Operating Revenues -

Revenue from operations 1,122,390,210 987,393,193

Details of Products Sold

Seeds 958,108,978 838,938,194


Total 1,122,390,210 987,393,193

22 OTHER INCOME

PARTICULARS


31-Mar-2012 31-Mar-2011

Interest Earned on Others 1,064,542 985,100

Interest on Others 442,610 2,619,203

Dividend Income 3,280,280 691,898

Income from Redemption of Mutual Fund Investment

15,561 -

Net gain on Sale of Fixed Assets

- 89,449

Excess Provision / (Unclaimed Credit) Withdrawn

4,073,071

Miscellaneous Receipts 134,095 952,637

Total 4,937,088 9,411,358

23 COST OF CULTIVATION/ MATERIALS CONSUMED

PARTICULARS


31-Mar-2012 31-Mar-2011

Cultivation Expenses 205,036,318 400,726,725

Biocides Raw Materials 16,906,331 9,914,699


Carriage Inward 1,896,666 1,851,860

Total 243,560,587 420,046,097

52

24 (INCREASE) / DECREASE IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE (All amounts expressed in Indian Rupees)

PARTICULARS


31-Mar-2012 31-Mar-2011

Inventories at the end of the Year

Work in Progress 285,827,395 264,877,797

Finished Goods 104,267,701 150,666,229

390,095,096 415,544,026

Inventories at the beginning of the year

Work in Progress 264,877,797 148,343,236

Finished Goods 150,666,229 69,136,797

415,544,026 217,480,033

(Increase) / Decrease in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

25,448,930

(198,063,993)

Details of Work In Progress and Finished Goods

Closing Stock of Work In Progress

Foundation Seeds 207,767,800 193,237,797

Other Seeds 78,059,595 71,640,000

Sub Total 285,827,395 264,877,797

Closing Stock of Finished Goods

Seeds 80,322,530 107,402,389

Biocides 23,945,171 43,263,840

Sub Total 104,267,701 150,666,229

Opening Stock of Work In Progress

Foundation Seeds 193,237,797 -

Other Seeds 71,640,000 148,343,236

Sub Total 264,877,797 148,343,236

Opening Stock of Finished Goods

Seeds 107,402,389 50,160,892

Biocides 43,263,840 18,975,905

Sub Total 150,666,229 69,136,797

53

25 EMPLOYEE BENEFIT EXPENSES


PARTICULARS


31-Mar-2012 31-Mar-2011

Salaries , Wages and Allowances 42,394,029 41,886,358

Contribution to Provident & Other Funds

1,398,612 1,670,762

Staff Welfare Expenses 1,131,797 479,487

Total

44,924,437

44,036,607

26 FINANCIAL COSTS

PARTICULARS


31-Mar-2012 31-Mar-2011

Interest Expense on Working Capital 2,371,832 -

Interest Paid on Term Loan 132,316 184,909

Interest on Trade Deposits 259,175 1,001,074

Interest on Others 79,126 -

Bank Charges 776,250 245,884

Total 3,618,699 1,431,867

54

27 OTHER EXPENSES


PARTICULARS


31-Mar-2012 31-Mar-2011

Research Materials 339,904 421,182

Geo-Climatic Trials 164,844,914 161,815,398

Consumable 2,283,998 1,711,847

Labour Charges 2,639,127 1,633,288

Power, Fuel & Water 4,160,424 2,683,014

Repairs & Maintenance:

Building 973,481 1,268,803

Plant & Machinery 57,860 476,422

Others 3,188,251 1,355,843

Rent & Hire Charges 3,661,705 2,762,994

Rates & Taxes 3,172,827 1,638,583

Insurance 1,159,767 865,036

Travelling & Conveyance 20,452,010 22,839,889

Communication Expenses 1,108,152 725,832

Postage & Courier Charges 711,814 490,813

Advertisement & Publicity 440,358 2,081,660

Printing & Stationery 2,696,353 786,112

Lease & License Fee 900,000 602,766

Legal & Professional Fees 4,117,039 4,617,141

Donations 10,500 15,000

Director's Remuneration 5,870,940 5,303,226

Auditors' Remuneration 393,260 275,750

Director's Sitting Fee 18,000 14,000

Freight 14,339,093 8,001,959

Rebate & Discounts 168,632,446 137,826,293

Commission 5,137,126 2,377,308

Business Promotion 174,668,633 131,898,011

Selling & Distribution 22,812 69,258

Provision for Bad Debts / Bad Debt written off

900,000 738,105

Miscellaneous 2,041,412 949,604

Total 588,942,206 496,245,137

Remuneration to Auditor

As Auditor Audit Fees 300,000 200,000

Tax Audit Fees 50,000 50,000

Service Tax 43,260 25,750

Total 393,260 275,750

55

CAMSON BIO TECHNOLOGIES LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2012

(All amounts expressed in Indian Rupees) Particulars Year Ended 31st March, 2012 Year Ended 31st March, 2011

A. CASH FROM OPERATING ACTIVITIES

Net Profit before tax and extraordinary items

204,467,881

223,893,057

Adjustments for:

Prior Period Adjustments (Net)

-

Depreciation

16,364,559

9,215,779

Interest Income

(1,064,542)

(985,100)

Dividend Income

(3,280,280)

(691,898)

Profit on redemption of investments

(15,561)

Interest and financial charges

3,618,699

184,909

Proceeds from sale of fixed assets

(89,449)

Provision for doubtful debts

900,000

-

Provision for employee benefits

1,088,785

17,611,660

1,061,639

8,695,880

Operating Profit /(Loss) before working capital changes

222,079,541

232,588,937

Adjustment for changes in :

Inventories

27,165,390

(72,184,852)

Trade & other receivables

(113,308,731)

(316,285,326)

Trade & other payables

(73,664,025)

(159,807,366)

141,161,654

(247,308,524)

Cash generated from operations

62,272,175

(14,719,587)

Income tax paid (net)

(4,297,864)

(3,811,860)

Net Cash Flow before extraordinary items

57,974,312

(18,531,447)

Extraordinary items

-

- Net Cash Flow from/(used in) Operating Activities

57,974,312

(18,531,447)

56

B. CASH FLOW FROM INVESTING ACTIVITIES

Investment in Fixed Assets / in New Projects

(206,163,894)

(176,334,777)

Proceeds from Sale of Fixed Assets

1,444,048

(Increase)/decrease in other Investment

43,407,240

(35,121,783)

Interest Income

1,064,542

985,100

Dividend Income

3,280,280

691,898

Net Cash Flow from/(used in) Investing Activities

(158,411,832)

(208,335,514)

C. CASH FLOW FROM FINANCIAL ACTIVITIES

Proceeds from issue of Share Capital

-

20,800,000 Proceeds from Share Warrants Application Money

-

(40,175,000)

Increase in Share Premium

-

135,200,000

Increase/(Decrease) in Secured Loans

114,010,570

(951,599)

Dividend paid (Including Dividend Tax)

(20,804,125)

(18,715,705)

Interest & Financial charges

(3,618,699)

(184,909) Net Cash Flow from/(used in) Financing Activities

89,587,746

95,972,787

NET CHANGES IN CASH & CASH EQUIVALENTS

(10,849,774)

(130,894,174)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR

19,441,196

150,335,370

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

8,591,421

19,441,196


For and on behalf of the Board of Directors

for Ishwar and Gopal, Chartered Accountants,


Dhirendra Kumar A N Singh Managing Director Director Partner

Membership Number 021748

Firm Registration No : 001154S Malatesh G Kalal Company Secretary

Place : Bangalore

Date : 30.08.2012

57

NOTES TO ACCOUNTS (All amounts expressed in Indian Rupees) 1. CORPORATE INFORMATION

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

2. SIGNIFICANT ACCOUNTING POLICIES : 2.1 Basis of Accounting:

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been diligently applied by the Company and are consistent with those used in the previous year.

2.2 Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the period under review. Although these estimates are based upon the Managements best knowledge of current events and actions, actual results could differ from these estimates.

2.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are recorded at the consideration paid for their acquisition.

2.4 Depreciation / Amortization:

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the year has been provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5, 000/- each are fully depreciated.

Amortization on Leasehold improvements has been done in proportion to the period of lease.

2.5 Investments: Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

58

2.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Work-in Process including foundation seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

c. The method of valuation of various categories of inventories is as follows:

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net realizable value on FIFO basis. However, 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.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour expenses and appropriation of manufacturing overheads based on normal operating capacity determined on standard cost basis. Cost also includes a portion of the research expenses which in the opinion of the management attribute to the development of these seeds.

2.7 Employee Benefits:

a. Post-employment benefit plans

Contribution to defined contributory retirement benefit schemes are recognized as an expense when employees have rendered services entitling them to contributions. For defined benefit schemes, the cost of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged to the profit &loss account for the year.

2.8 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the goods have passed to the buyer which generally coincides with dispatch of goods to the customer and when there is no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

c. Dividend Income:

Dividend from Investment is recognized when the right to receive payment is established.

59

2.9 Research and Development:

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at the applicable rates. Revenue expenditure is charged to Profit and Loss account in the year in which it is incurred.

2.10 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are charged to Profit and Loss Account in the year in which they are incurred.

2.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year.

b. Minimum Alternative Tax (MAT):

In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if there is convincing evidence for realization of such asset during the specified period. MAT credit entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to reassure realization.

2.12 Impairment of Assets: The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

60

2.13 Foreign Currency Transactions: Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates”, notified by the Companies (Accounting Standards) Rules, 2006.

2.14 Operating Leases:

Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as incurred.

2.15 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.16 Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined as best estimates required settling the obligation at the Balance Sheet date.

Contingent Liabilities are disclosed by way of notes to accounts in case of:

a. A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle that obligation;

b. A present obligation when no reliable estimate is possible; and

c. A possible obligation arising from past events where the probability of outflow of resources is remote.


28. ADDITIONAL DISCLOSURES:

28.1 The Income generated from cultivation and marketing of seeds, vegetables and fruits, which is

in the nature of agricultural activity, is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for both agricultural activities and agri - biotech products are bifurcated on an estimated basis for the purpose of computing taxable income.

28.2 The Honorable Court of Civil Judge (SR .DN), Doddaballapur vide their order dated 8th

December 2009 closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from the said court. However as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interest thereon due to NHB is not withdrawn.

61

28.3 The Company has taken certain assets under cancelable operating leases. The total rental expense under cancelable operating leases during the year was Rs. 36, 61,705/- (Rs. 27, 62,994/-).

28.4 Retirement Benefit Plans:

a) Defined contribution plans:

The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible 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. 13, 98,612/- (Rs. 16,70,762/-) for provident fund contributions in the profit and loss account including contribution to the Managing Director. 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 the provision to the 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 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 each balance sheet date. The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company’s financial statements as at March 31, 2012:

Particulars

As at March 31, 2012

As at March 31, 2011

I. Change in benefit obligations:

Projected benefit obligation, beginning of the year (April 1, 2011)

25,72,188 15,10,549

Service cost 5,82,206 4,80,674

Interest cost 2,49,541 1,56,865

Actuarial (gain) / loss 2,57,038 4,24,100

Benefits paid

Projected benefit obligation, end of the year 36,60,973 25,72,188

II. Change in plan assets:

Fair value of plan assets, beginning of the year (April 1, 2011)

- -


Employer’s contributions - - Benefits paid - -

Actuarial gain - -

Fair value of plan assets at the end of the year

Excess of (obligation over plan assets) / plan assets (36,60,973) (25,72,188)

62

28.5 The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties had been identified on the basis of information available with the Company in this regard.

2011-12 2010-11 Particulars Principal Interest Principal Interest

Principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year;

Nil Nil Nil Nil

The amount of interest paid by the buyer in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year;

Nil Nil Nil Nil

The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006;

Nil Nil Nil Nil

The amount of interest accrued and remaining unpaid at the end of each accounting year;

Nil Nil Nil Nil

over obligation

(Accrued liability) / Prepaid benefit (36,60,973) (25,72,188)

III. Net gratuity and other cost for the year ended March 31, 2012:

Service cost 10,88,785 10,61,639

Interest on defined benefit obligation - Expected return on plan assets -

Net actuarial gain recognized in the year -

Net gratuity and other cost 10,88,785 10,61,639

Actual Return on Plan Assets -

IV. Category of Assets as at March 31, 2012:

Special Deposits Scheme -Nil- -Nil- Insurer Managed Funds -Nil- -Nil-

Others -Nil- -Nil-

Total - -

V. Assumptions used in accounting for the gratuity plan:

Discount rate 8.05% 8.05%

Salary escalation rate 10% - First 4 years and 7%

thereafter

10% - First 4 years and 7%

thereafter

Retirement Age 58 years 58 years

63

The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

Nil Nil Nil Nil


28.6 Details of Value of Imports, Earnings in foreign currency, and Expenditure in foreign currency:

Particulars 2011-12 2010-11 i) CIF value of Imports Nil Nil ii) Earnings in foreign currency Nil 5,35,500 iii) Expenditure in foreign currency Travel Expenses

89,962

2,82,000

28.7 Related Party Disclosure:

1. Relationship during the year:

(a) Subsidiaries: None

(b) Associates: None

(c) Key Management Personnel:


Veerendra Kumar Singh - Director


A.N. Singh - Director Alka Singh Geetha Singh Karan Singh

(e) Entities where Key Management Personnel (KMP)/relatives of Key Management Personnel (RKMP) have significant influence:

Sanatan Herbal & Naturals Limited

Camson Farm Produce Private Limited

Shashtika Health Resorts & Spa Private Limited

Camson Green Valley Products Private Limited

64

2. Transactions carried out with related parties referred in 1 above:

Related Party Transaction

Sl. No.

Particulars 31st March 2012 31st March 2011

i Transactions with KMP & their relatives

Remuneration to Dhirendra Kumar 6,000,000 5,303,226

Shares allotted to Dhirendra Kumar Nil 74,250,000

Commission to V K Singh 2,061,581 Nil

Loan Taken/recovered from Dhirendra Kumar

1,550,000

Nil

Lease Deposit to A N Singh, Director

19,915,000 Nil

ii Transactions with associates

Sales to Camson Green Valley Private Limited

Nil 912,377

Sales to Camson Green Valley Products Private Limited

Nil 912,377

Lease Rent to Camson Farm Produce Private Limited

900,000 249,500

Dividend to Camson Farm Produce Private Limited

1,061,093 1,985,240

Dividend to Shastika Health Resorts & spa Private Limited

990,000 Nil

Dividend to Sanatan Herbal & Natural Limited

36,691 555,700

Shares allotted to Shastika Health Resorts & spa Private Limited

Nil 74,250,000

Loan taken from Camson Green Valley Products Private Limited

18,250,000 Nil

Trade advance from Camson Farm Produce Private Limited

13,001,214 Nil

Loan repaid to Camson Farm Produce Private Limited

Nil 198,000

Loan Taken from Sanatan Herbal & Naturals Limited

6,709,178 2,515,335

Loan repaid to Sanatan Herbal & Naturals Limited

Nil 769,157

65

Balances with Related Parties :

Rent Deposit to Camson Farm Produce Private Limited

2,100,000 2,100,000 Payable to Dhirendra Kumar 1,550,000 Nil Payable to Geeta Singh 1,500,000 Nil Loan Payable Camson Green Valley

Products private Limited 18,111,968 Nil

Trade Payables to Camson Farm Produce

Private Limited 13,001,214 Nil

Loan payable to Sanatan Herbal & Naturals

Limited 3,709,178 2,515,335

Due from Shastika Health Resorts & spa

Private Limited 1,400 1,400

Deposit due from A N Singh 19,915,000 Nil

28.8 Earnings per Share (EPS):

Earnings per share is calculated in accordance with Accounting Standard 20 – “Earnings per share”, notified by the Companies (Accounting Standards) Rules, 2006.


Amount (Rs) Amount (Rs) Amount (Rs) Amount (Rs) Profit Before Tax & Extra Ordinary Items 204,467,881 223,893,057

Less: Current Year Tax 1,566,849 1,929,168

Deferred Tax 1,141,677

1,857,678 Current Tax relating to

Prior Years Withdrawn

(3,896,646)

MAT Credit Entitlement (1,566,849) (2,754,969) 3,786,846 Profit After Tax but before Extra-Ordinary Items

207,222,850

220,106,211

Extra Ordinary Items - - Profit After Tax and Extra Ordinary Items

207,222,850

220,106,211

Weighted average no. of Equity shares:

Basic 18,130,000 16,135,479

Diluted* 18,130,000 16,135,479

Earnings per Share - Basic:

a. Before extra-ordinary items 11.43

13.64

b. After extra ordinary items 11.43

13.64

Earnings per Share – Diluted:

a. Before extra-ordinary items 11.43

13.64

b. After extra ordinary items 11.43

13.64

66

28.9 Segment Information:

In accordance with AS-17 “Segment Revenue”, notified by the Companies (Accounting Standards) Rules, 2006, segment revenue, segment results and other information are as under:

A. Primary Segment

(a) Business Segment:

Segment identified by the company comprises as under:



(b) Segment Revenue & Expenses:

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as “Unallocable”.

(c) Segment Assets & Liabilities:

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.


The entire turnover of the Company is from domestic business and there is no geographical/secondary segment to be reported.

Segment report


2011-12 2010-11 2011-12 2010-11 2011-12 2010-11

Segment Revenue 958,108,978 838,938,194 164,281,232 148,454,999 1,122,390,210 987,393,193

Segment Result 217,778,466 227,745,749 6,531,055 4,435,814 224,309,522 232,181,563

Unallocated Corporate Expenses

21,025,932

12,830,640 Unallocated Corporate Incomes

(3,295,841)

(2,369,698) Operating profit before interest & taxes

206,579,430

221,720,621

Interest Expense 3,618,699 1,431,867

Interest Income (1,507,150) (3,604,303)

Profit Before Tax 204,467,881 223,893,057

Taxation

Current tax 1,566,849 1,929,168

Mat Tax Credit entitlement

(1,566,849)

Prior Year Tax withdrawn

(3,896,646) -

Deferred tax 1,141,677 1,857,678

Profit After Tax for the year

207,222,850

220,106,211

Profit after tax 207,222,850 220,106,211

67

OTHER INFORMATION

Segment Assets

Fixed Assets 174,536,554 153,176,481 166,364,491 47,910,789 340,901,045 201,087,270

Current Assets 742,127,815 730,305,818 127,281,528 113,873,807 869,409,343 844,179,625

Unallocated Corporate Assets

Fixed Assets 226,570,203 176,584,643

Investments - 43,513,497

Current Assets (869,409,343) 48,114,816

Total Assets 567,471,248 1,313,479,851

Segment Liabilities 67,141,075 116,078,722 11,515,292 23,809,200 78,656,367 139,887,922

Unallocated Corporate Liabilities

488,814,880 1,173,591,929

Total Liabilities 567,471,248 1,313,479,851

28.10 Contingent Liabilities and commitments : Nil

28.11 Balances of Trade Payables, Trade Receivables, Loans and Advances are subject to balance

confirmation and reconciliation. 28.12 Up to the year ended March 31st 2011, the Company was using pre-revised schedule VI to the

Companies Act 1956, for preparation and presentation of its Financial Statements. For the year ended March 31st 2012, the revised Schedule VI notified under the Companies Act, 1956 has been applicable to the Company. The Company has reclassified previous year figures to conform to this classification. Figures in brackets relate to previous year.

As per our report of even date For and on behalf of the Board of Directors For ISHWAR & GOPAL Chartered Accountants

K. V. Gopalakrishnayya Dhirendra Kumar A N Singh Partner Managing Director Director Membership No. 21748 Firm Registration No. 001154S Place: Bangalore Malatesh G Kalal Date: 30.08.2012 Company Secretary

68


BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE


(As per Part-IV of Schedule VI to the Companies Act 1956)

I. Registration Details

Registration No. 14944 State Code 08

Balance Sheet Date 31-Mar-12

II. Capital raised during the year

Public Issue Nil Preferential Issue Nil

Bonus Issue Nil Private Placement Nil

III. Position of Mobilisation and Deployment of Funds

SOURCES OF FUNDS APPLICATION OF FUNDS

Paid-up Capital 181,300,000 Net Fixed Assets 567,471,248

Share Warrents Application Money

0 Investments

78,073

Reserves & Surplus 1,074,619,080 Net Current Assets 794,179,467

Secured Loan 98,591,442

Deferred Tax Liability 7,218,266

Total Liabilities 1,361,728,788 Total Assets 1,361,728,788

IV. Performance of the Company

Turnover 1,127,327,298 Profit/(Loss) after Tax 207,222,850

Total Expenditure 922,859,417 Earning Per Share in Rs. 11.43

Profit/(Loss) before Tax 204,467,881 Dividend Rate in % 10

V. Generic Names of three principal products (as per monitory terms)

Item Code No. (ITC Code) 120900

Product Description Agricultural Biotech Products

Zero Residue Vegetables & Fruits

As per our report of even date For and on behalf of the Board of Directors

for Ishwar and Gopal,



Dhirendra Kumar A N Singh

Partner

Managing Director Director

Membership Number 021748 Firm Registration No : 001154S

Place : Bangalore

Malatesh G Kalal Company Secretary Date : 30.08.2012

Auditors Report

INDEPENDENT AUDITORS REPORT


Report on the Financial Statements

We have audited the accompanying financial statements of Camson Bio Technologies Limited (“the Company”)

which comprises the Balance Sheet as at 31st March 2013, the Statement of Profit and Loss and the Cash Flow

statement for the year then ended and a summary of significant accounting policies and other explanatory

information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the

financial position, financial performance and cash flows of the Company in accordance with the accounting

principles generally accepted in India. This responsibility includes the design, implementation and maintenance of

the internal control relevant to the preparation and presentation of the financial statements that give a true and fair

view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit

in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidences about the amounts and disclosures in the

financial statements. The procedures selected depend on auditor’s judgement, including the assessment of the risks

of the material misstatements of the financial statements whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting

estimates made by the management, as well as evaluating the overall presentation of the financial statements.

We believe that that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid

financial statements give the information required by the Act in the manner so required and give a true and fair view

in conformity with the accounting principles generally accepted in India:

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2013;

(b) In the case of Profit and Loss Account, of the profit for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor’s Report) Order, 2003 (“ the Order”) issued by the Central

Government of India in terms of Section 227 (4A) of the Act, we give in the Annexure, a statement on the

matters specified in paragraphs 4 and 5 of the Order.

2 As required by Section 227(3) of the Act, we report that:

Auditors Report

a. We have obtained all the information and explanations which, to the best of our knowledge and belief,

were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by Law have been kept by the Company so far as it

appears from our examination of those books;

c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this

Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement

comply with the Accounting Standards, to the extent applicable, referred to in Section 211 (3C) of the

Act.

e. On the basis of written representations received from the directors as on March 31st, 2013, taken on

record by the Board of Directors, none of the directors is disqualified as at March 31st, 2013 from

being appointed as a director in terms of Section 274 (i) (g) of the Act .

For Ishwar & Gopal,


Sd/-


Partner

Membership No. 21748

Firm Registration No. 001154S

Place: Bangalore

Date: 30th

May 2013

ANNEXURE TO THE AUDITORS’ REPORT

[Referred to in paragraph (3) of our report of even date]

i. a. The Company has maintained proper records showing full particulars including quantitative details

and situation of the fixed assets.

b. According to the information and explanation given to us, the fixed assets have been physically

verified by the Management during the year in a phased periodic manner which in our opinion is

reasonable having regard to the size of the Company and the nature of its assets. No material

discrepancies were noticed on such verification.

c. As explained to us the Company has not disposed off any fixed asset during the year under review.

ii. a. As explained to us, inventories were physically verified during the year by the management at

reasonable intervals.

b. In our opinion and according to the information and explanation given to us, the procedures of

physical verification of inventories followed by the Management were reasonable and adequate in

relation to the size of the company and nature of the business.

c. Based on the records furnished before us we are of the opinion that the inventory records maintained

by the Company needs to be improved. We have been informed that no material discrepancies have

been noticed on physical verification of stocks with the inventory records maintained by the

Company.

iii According to the information and explanations given to us, the Company has not granted unsecured

loans to Companies, firms or other parties covered in the Register maintained under Section 301 of

the Companies Act, 1956. Hence the provisions of clause (4) (iii) (a) to (c) of the Companies

Auditors Report

(Auditors Report) Order 2003 are not applicable to the Company for the year under review.

d. The Company has taken interest free unsecured loans from 2 parties and 3 private limited Companies

and a limited Company listed in the register maintained under Section 301 of the Act. The maximum

balance outstanding during the year was Rs. 5,41,49,549/- and the outstanding as at the end of the

year was Rs. 5,13,99,149/-.

e. The rate of interest and other terms and conditions of these unsecured loans are in our opinion prima

facie not prejudicial to the interest of the Company.

f. In respect of the said loans and the interest thereon, there are no overdue amounts.

iv In our opinion and according to the information and explanations given to us, internal control

systems with regard to purchase of inventory, fixed assets, and with regard to sale of goods needs to

be strengthened to make it commensurate with the size of the Company and the nature of its business.

However, during the course of our audit, we have not come across continuing failure to correct major

weakness in the internal controls.

v a To the best of our knowledge and belief and according to the information and explanations given to

us, transactions to be entered in the register maintained under Section 301 of the Companies Act,

1956 have been entered in the register

b In our opinion and according to the information and explanations given to us, the transactions made

in pursuance of contracts or arrangements entered in the register maintained under section 301 of the

Companies Act, 1956 in respect of any party during the year have been made at prices which are

reasonable having regard to prevailing market marker prices at the relevant time.

vi In our opinion and according to the information and explanations given to us, the Company has not

accepted deposits in terms of the provisions of Sections 58A and 58AA or any other relevant

provisions of the Companies Act, 1956.

vii In our opinion, internal audit system of the Company needs to be strengthened to make it

commensurate with the size and nature of its business

viii The Central Government has not prescribed maintenance of cost records under section 209 (1) (d) of

the Companies Act, 1956 in respect of any of the activities of the company.

ix a According to the information and explanations given to us, the Company has generally been regular

in depositing undisputed statutory dues, including Provident Fund, Investor Education and Protection

Fund, Employees’ State Insurance, Income-Tax, Wealth Tax, Service Tax, Custom Duty, Excise

Duty, Cess and any other material statutory dues.

b There are no arrears of undisputed amounts payable in respect of the aforesaid dues which were

outstanding as on 31st March, 2013 for a period of more than six months from the date they became

payable.

c According to the information and explanations given to us, there are no dues of Income Tax, Sales

Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and cess which have not been deposited

on account of any dispute.

x The Company does not have accumulated losses. The Company has not incurred cash losses during

the financial year covered by our audit and in the immediately preceding financial year.

xi According to the information and explanations given to us, the Company has not defaulted in the

repayment of dues to banks. The Company has no dues to financial institutions or debenture holders

during the year under review.

xii In our opinion and according to the information and explanations given to us, no loans and advances

have been granted by the Company on the basis of securities by way of pledge of shares, debentures

and other securities.

xiii The Company is not a chit fund / nidhi / mutual benefit fund/society. Accordingly, clause 4 (xiii) of

the Companies (Auditor’s Report) Order, 2003 is not applicable to the company during the year

under audit.

xiv In our opinion and according to the information and explanations given to us, the Company is not

Auditors Report

dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions

of clause (4) (xiv) of The Companies (Auditors Report) Order 2003 are not applicable to the

Company.

xv The Company has not given any guarantee for loans taken by others from financial institutions or

banks.

xvi. As per the information and explanations furnished to us the term loans availed by the Company

during the year under review are utilized for the purposes for which the loans were obtained.

xvii According to the information and explanations given to us, and on an overall examination of the

Balance Sheet of the Company, short term funds have not been used for long term investments.

xviii During the year, the Company has made allotment of warrants issued on preferential basis to the

parties covered in the Register maintained under Section 301 of the Act. In our opinion the price at

which such share warrants were issued are prima facie not prejudicial to the interest of the Company.

Xix The Company has not issued any debentures during the year under review.

Xx The Company has not raised any money by public issues during the year.

xxi. Based upon the audit procedures performed by us and information and explanations given by the

Management, we report that no fraud on or by the Company has been noticed or reported during the

course of our audit.

For Ishwar & Gopal,


Sd/-


Partner



Place : Bangalore

Date: 30th

May 2013

Auditors Report

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Camson Bio Technologies Limited

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Camson Bio Technologies Limited (“the

Company”), which comprise the Consolidated Balance Sheet as at March 31, 2013, and the Consolidated

Statement of Profit and Loss and Consolidated Cash Flow Statement for the year then ended, and a summary of

significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

The Company’s management is responsible for the preparation of these financial statements that give a true and

fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of

the Group in accordance with the accounting principles generally accepted in India. This responsibility includes

the design, implementation and maintenance of internal control relevant to the preparation and presentation of the

consolidated financial statements that give a true and fair view and are free from material misstatement, whether

due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We

conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants

of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting

estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

We report that the Consolidated financial statements have been prepared by the Company in accordance with the

requirements of Accounting Standards (AS) 21 – Consolidated Financial Statements – notified under section 211

(3C) of the Companies Act, 1956.

In our opinion and to the best of our information and according to the explanations given to us, the financial

statements give the information required by the Act in the manner so required and give a true and fair view in

conformity with the accounting principles generally accepted in India subject to

a. in the case of the Consolidated Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b. in the case of the Consolidated Profit and Loss Account, of the profit for the year ended on that date; and

c. in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date.

Other Matter

We did not audit the financial statements of a subsidiary, Camson Agri Ventures Private Limited, whose financial

statements reflect total assets (net) of Rs. 16,56,32,738/- as at March 31, 2013, total revenues of Rs. 16,51,76,888/-

and net cash inflows amounting to Rs. 1,25,000/- for the year ended on that date, as considered in the consolidated

financial statements

The financial statements of the aforesaid subsidiary have been audited by other auditors whose report has been

Auditors Report

furnished to us by the Management. Our opinion, in so far as it relates to the amounts and disclosures included in

respect of these entities, is based solely on the reports of the other auditors.

Our opinion is not qualified in respect of this matter

For Ishwar & Gopal,


Firm’s Registration Number : 001154S

Sd/-

(K V Gopalakrishnayya)

(Partner)

Membership Number: 21748

Place of Signature: Bangalore

Date: 30th

May 2013

Rs. Rs. Rs. Rs.

A. Cash Flow from Operating Activities

Profit /(Loss) before taxation 231,077,608.85 204,467,881.15

Adjustments for:

Depreciation 33,537,807.00 16,364,559.00

Interest income on deposits - (1,064,542.00)

Dividend income - (3,280,280.00)

Profit on redemption of Investment - (15,561.00)

Interest Expenses on borrowings 17,954,182.00 3,618,699.00

Provision for doubtful receivables 35,586,789.00 900,000.00

Provision for Employee Benefit 4,230,284.00 1,088,785.00

91,309,062.00 17,611,660.00

Operating profit before working capital changes 322,386,670.85 222,079,541.15

Changes in Working Capital:

Increase / (Decrease) in trade payables (47,378,099.00) (59,485,376.55)

Increase / (Decrease) in Short term provisions 3,818,738.00 (3,930,331.13)

Increase / (Decrease) in Other Long term Liabilities (1,810,001.00) -

Increase / (Decrease) in Long term provisions (3,168,879.00) (383,083.40)

Increase / (Decrease) in other current liabilities 36,208,810.00 (19,382,665.98)

(Increase) / Decrease in trade receivables (206,883,430.00) (42,868,806.60)

(Increase) / Decrease in inventories 4,477,003.00 27,165,390.43

(Increase) / Decrease in short term loans and advances (75,126,615.00) (6,805,395.23)

(Increase) / Decrease in Long term loans and advances (166,635,519.00) (58,240,886.62)

(Increase) / Decrease in other current assets (671,729.00) (78,073.00)

(Increase) / Decrease in current Assets - 43,422,801.00

(Increase) / Decrease in other non-current assets - (457,169,721.00) (120,586,427.08)

Taxes paid -

Net cash generated from operating activities A (134,783,050.15) 101,493,114.07

B. Cash flow from Investing Activities:

Purchase of tangible/intangible assets including Capital work in progress (250,253,581.10) (206,163,893.69)

Proceeds from redemption of investments 7,696.00 -

Profit on redemption of Investment - 15,561.00

Dividend Income - 3,280,280.00

Interest received on deposits - 1,064,542.00

Net cash from investing activities B (250,245,885.10) (201,803,510.69)

C. Cash flow from Financing Activities

Share Warrants application Money 148,000,000.00 (20,931,250.00)

Payment of Dividend including Distribution tax (21,009,146.00) -

Interest paid (17,954,182.00) (3,618,699.00)

Proceeds from Borrowings including Current Obligation of Long term Debt(net) 284,156,744.63 114,010,570.14

-

Net cash used in Financing Activities C 393,193,417.00 89,460,621.14

Net increase in cash and cash equivalents (A+B+C) 8,164,481.75 (10,849,775.48)

Cash and Cash equivalents at the beginning of the year 8,591,421.00 19,441,196.00

Cash and Cash equivalents at the end of the year 16,755,903.00 8,591,421.06



Firm Registration No : 001154S For and on behalf of the Board of Directors


sd/-

K V Gopalakrishnayya sd/- sd/-



sd/-

Place : Bangalore Ekta Gandhi Thakurel

Date : 30th May 2013 Company Secretary


CASH FLOW FOR THE YEAR ENDED 31ST MARCH 2013

As at March 31, 2013 As at March 31, 2012Particulars


Balance Sheet as at 31st March 2013



Shareholders' funds

Share capital 3 181,300,000 181,300,000

Reserves and surplus 4 1,283,671,461 1,074,619,080

Money received against share warrants 148,000,000 1,612,971,461 - 1,255,919,080

Non-current liabilities

Long term borrowings 5 159,116,882 25,321,814

Other long term liabilities 6 14,466,325 16,276,326

Deferred tax liabilities (Net) 7 8,195,168 7,218,266

Long term provisions 8 4,004,137 185,782,512 3,168,879 51,985,285

Current liabilities

Short term borrowings 9 225,132,095 98,591,442

Trade payables 10 27,626,802 75,004,901

Other current liabilities 11 87,059,438 27,029,604

Short term provisions 12 27,231,280 367,049,615 23,147,215 223,773,162

TOTAL 2,165,803,588 1,531,677,527

II ASSETS

Non-current assets

Fixed assets

Tangible assets 13 783,854,621 345,935,786

Intangible assets 13A 332,402 349,875

Capital work in progress - 221,185,588

Non-current investments 14 83,000 90,696

Long term loans & advances 15 231,544,762 1,015,814,785 64,909,243 632,471,188

Current assets

Inventories 16 395,585,755 400,062,758

Trade receivables 17 640,643,226 469,346,585

Cash & cash equivalents 18 16,755,903 8,591,421

Short term loans & advances 19 96,254,117 21,127,502

Other current assets 20 749,802 1,149,988,803 78,073 899,206,339

TOTAL 2,165,803,588 1,531,677,527

Significant accounting policies and additional disclosures 1,2&28





sd/- sd/- sd/-

K V Gopalakrishnayya Dhirendra Kumar A N Singh

Partner Managing Director Director

Membership Number 021748 sd/-

Ekta Gandhi Thakurel

Place : Bangalore Company Secretary

Date : 30th May 2013

As at

31-Mar-2012

As at

31-Mar-2013

Note

No.ParticularsSl. No


Notes to the Financial Statements for the year Ended 31st March 2013

3 SHARE CAPITAL

Number Amounts in INR Number Amounts in INR

Authorised

Equity Shares 30,000,000 300,000,000 20,000,000 200,000,000

Issued

Equity Shares 18,130,000 181,300,000 18,130,000 181,300,000

Subscribed and fully paid

Equity Shares 18,130,000 181,300,000 18,130,000 181,300,000

Total 18,130,000 181,300,000 18,130,000 181,300,000

a. Par value per equity Share is Rs. 10 /=

b. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period.


Equity Shares

Outstanding at the beginning of the period 18,130,000 181,300,000 18,130,000 181,300,000

Outstanding at the end of the period 18,130,000 181,300,000 18,130,000 181,300,000

c. Terms / rights attached to equity shares

No. of shares % of holding No. of shares % of holding

held held

Dhirendra Kumar 1,944,680 10.73 1,916,580 10.57


Shashtika Health Resort & SPA Private Ltd 990,000 5.46 990,000 5.46

As at 31.03.2012

As at 31.03.2013 As at 31.03.2012

As at 31.03.2013 As at 31.03.2012

The Company has only 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. The

company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of share holders in the 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 shares held by the equity share holders.

d. Shares held by each shareholder holding more than 5 percent shares specifying the number of shares held

Particulars

Name of the ShareholderAs at 31.03.2013

Particulars


Capital Reserve

Balance as per last financial statement 21,121,135 189,885

Add: additions during the year 21,121,135 20,931,250 21,121,135


Balance as per last financial statement 354,950,000 354,950,000

Add: received during the year - 354,950,000 - 354,950,000

General Reserve


Add: additions during the year - 212,362,915 212,362,915

Surplus / (Deficit) in Statement of Profit & Loss


Profit for the year 230,061,527 207,222,850

716,246,557 507,264,204

Appropriations

Proposed dividend on equity shares 18,130,000 18,130,000

Corporate dividend tax 2,879,146 2,949,174

Net surplus / (deficit) in statement of Profit & Loss 695,237,411 486,185,030

Total 1,283,671,461 1,074,619,080


Term Loans

a) From Bank: - Secured

Term Loan from banks 1,064,989 993,634

(Secured against hypothecation of plant and machinery)

Term Loan from HDFC Bank Limited - Secured 130,000,000 -

(Security details - refer note 1)

b) From Other Parties:

- From TATA Motors Finance Ltd 473,768

(Secured against hypothecation of vehicles)

- From Related parties 51,399,149 24,871,146

(Unsecured ,Interest free -Repayable during the year 2015-16)

Total Long term borrowings 182,937,906 25,864,780

23,821,024 542,966

Total 159,116,882 25,321,814

As at As at

31-Mar-2013 31-Mar-2012

As at

31-Mar-2013


31-Mar-2012

PARTICULARS

As atPARTICULARS

-

23,219,995

26,138,978

29,454,905 -

33,123,906 -

18,062,216 -

542,966

296,490 281,439

331,622 169,229

370,917

65,960

304,538

169,229

6 OTHER LONG TERM LIABILITIES

Trade deposit received 14,466,325 16,276,326

Total 14,466,325 16,276,326


Deferred tax liability on account of fixed assets 8,462,416 7,267,504

Deferred Tax Assets on account of temporary disallowances

under Income Tax Act 267,247 49,238



Provision for gratuity 4,004,137 3,168,879

Total 4,004,137 3,168,879

31-Mar-2012

31-Mar-2013

As at As at

31-Mar-2013

As at

31-Mar-2012

31-Mar-2013 31-Mar-2012

Note1 - The Term Loan from HDFC Bank Limited are secured by exclusive Hypothecation charge over plant and machinery purchase out of bank finance and

extension of charge on over property mortgaged for Cash Credit facility. The interest rate is 12.50% p.a.

2015-16

PARTICULARS

2014-15

2014-15

2016-17

2013-14

2015-16

2016-17

2017-18

PARTICULARS

31-Mar-2012

Particulars of repayment of Term Loan against Plant and machinery

from HDFC Ltd

As at

As at As at

As at

31-Mar-2013

PARTICULARS

As at

Particulars of repayment of Term Loan against vehicle from HDFC Ltd

2013-14

Particulars of repayment of loan against vehicle from TATA Motors

Finance Ltd.

2012-13

2013-14

2014-15


a) Loans repayable on demand

i) From Banks:

Cash Credit facilities from HDFC bank Limited - Secured 170,765,465 90,587,442

Farmer Loan - HDFC Bank Limited - Unsecured 46,362,630 -

ii) From other parties:

National Horticultural Board -Unsecured 8,004,000 8,004,000

(Refer note 28.2)

Total 225,132,095 98,591,442

10 TRADE PAYABLES

Due to Micro, Small and Medium Enterprises* 3,745 -

Due to others 27,623,057 75,004,901

Total 27,626,802 75,004,901

Principal Interest Principal Interest

3,745 Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

2012-13 2011-12

The information required to be disclosed under the Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have

been identified on the basis of information available with the Company in this regard.

31-Mar-2013 31-Mar-2012

As at As at

31-Mar-2013

As atPARTICULARS

the amount of interest paid by the buyer in terms of section 16 of the

Micro, Small and Medium Enterprises Development Act, 2006, along with

the amount of the payment made to the supplier beyond the appointed

day during each accounting year;

PARTICULARS

the amount of interest due and payable for the period of delay in making

payment (which have been paid but beyond the appointed day during the

year) but without adding the interest specified under the Micro, Small and

Medium Enterprises Development Act, 2006;

the amount of interest accrued and remaining unpaid at the end of each

accounting year;

the amount of further interest remaining due and payable even in the

succeeding years, until such date when the interest dues as above are

actually paid to the small enterprise, for the purpose of disallowance as a

deductible expenditure under section 23 of the Micro, Small and Medium

Enterprises Development Act, 2006.

Principal amount and the interest due thereon (to be shown separately)

remaining unpaid to any supplier as at the end of each accounting year;


Particulars

31-Mar-2012

The Cash credit facilities from HDFC Bank Limited are secured by exclusive hypothecation of Stocks and Book receivables (Present & Future) of the Company and

further secured by first charge on the Land and Building situated at Plot No 6 A and B, Phase -4, Industrial Area, Gwalthai, Dist.: Bilasapur, Himachal Pradesh.

As at


Current maturities of long term debts (refer note 5) 23,821,024 542,966

Interest Accrued but not due on Borrowings 1,137,730 -

Interest accrued but not due on security deposit 894,836

Taxes & Levies 3,190,882 1,714,634

Advances from customers 1,900,526 10,369,884

Unpaid dividend 981,404 629,122

Liabilities for capital assets 15,712,019 3,651,466

Other liabilities 39,421,017 10,121,532

Total 87,059,438 27,029,604


Provision for gratuity 226,147 492,094

Proposed dividend 18,130,000 18,130,000


Provision for taxation (Net of advance tax) 5,995,987 1,645,975

Total 27,231,280 23,147,215

As at As at

As at As at

31-Mar-2013 31-Mar-2012

31-Mar-2013 31-Mar-2012

PARTICULARS

PARTICULARS

14 NON CURRENT INVESTMENTS

Trade, Valued at Cost:

Investment in Equity Instruments - In a Subsidiary Compant

6500 (Nil) equity shares of face value of Rs.10 each in

subsidiary Company M/s Camson Agri Venture Private

Limited 65,000 -

Investment in government or Trust securities 18,000 18,000

Others - 72,696

Total 83,000 90,696

Aggregate amount of unquoted investment Rs.83,000/-, (P.Y. Rs.90,696/-)


Capital advances 226,575,677 59,921,989

Trade /Security deposits 3,203,398 3,690,800

Deposit - With Government Authorities 1,765,687 1,296,454

Total 231,544,762 64,909,243

16 INVENTORIES

Raw materials 2,297,859 5,045,980

Work in progress 162,513,638 207,767,800

Finished goods 224,955,854 182,327,297

Packing materials 5,818,404 4,921,681

Total 395,585,755 400,062,758


Unsecured,

Outstanding for a period exceeding six months from the date

they are due for payment

Considered good - 32,479,182

Considered doubtful 1,771,278 1,805,578

Sub Total 1,771,278 34,284,760

Less: Provision for doubtful receivables 1,771,278 1,805,578

- 32,479,182

Others - Considered good 640,643,226 436,867,403

Total 640,643,226 469,346,585

As at

31-Mar-2013 31-Mar-2012

As at As at

31-Mar-2013 31-Mar-2012

31-Mar-2013 31-Mar-2012

As at As at

As at As at

As at

PARTICULARS

PARTICULARS

31-Mar-2013 31-Mar-2012

PARTICULARS

PARTICULARS

18 CASH AND BANK BALANCES

Cash and Cash Equivalents:

Cash on hand 41,269 338,157

Cash at bank

- In Current accounts 15,549,244 7,480,156

- Unpaid Dividend account 981,004 628,722

Margin Deposit 184,386 144,386

Total 16,755,903 8,591,421


Unsecured - Considered Good

Advance to suppliers 1,923,518 4,567,359

Employee advances 5,166,972 2,850,401

MAT credit entitlement 6,532,621 1,566,849

Other advances 82,631,006 12,142,893

Total 96,254,117 21,127,502


Prepaid expenses 749,802 78,073

Total 749,802 78,073

31-Mar-2012

As at As at

31-Mar-2013 31-Mar-2012

As at As at

31-Mar-2013

31-Mar-2013

31-Mar-2012

PARTICULARS

PARTICULARS

PARTICULARS

As at As at



Statement of Profit and Loss for year ended 31st March, 2013

1 INCOME

Revenue from operations 21 1,196,080,118 1,122,390,210

Other Income 22 3,031,114 4,937,088

Total Revenue 1,199,111,232 1,127,327,298

2 EXPENSES

Cost of Cultivation/ Materials consumed 23 282,838,015 243,560,586

Purchase of stock-in-trade 98,627,121 -

(Increase) / Decrease in Inventories of finished goods, work-in-

progress and stock-in-Trade 24 2,625,603 25,448,929

Employee benefits expense 25 70,730,519 50,795,378

Financial costs 26 20,109,308 3,618,699

Depreciation and amortization expense 13&13A 33,537,807 16,364,559

Other expenses 27 459,565,251 583,071,266

Total Expenses 968,033,624 922,859,417

Profit before tax 231,077,609 204,467,881

Tax Expense:

Current tax 5,710,000 1,566,849

Current tax relating to prior years withdrawn (705,048) (3,896,646)

MAT credit entitlement (4,965,772) (1,566,849)

Deferred Tax 976,902 1,016,082 1,141,677 (2,754,969)

Profit/Loss for the Year 230,061,527 207,222,850

Earning per equity share:

Basic 12.69 11.43

Diluted 9.53 11.43






sd/- sd/- sd/-

K V Gopalakrishnayya Dhirendra Kumar A N Singh


Membership Number 021748 sd/-

Ekta Gandhi Thakurel

Place : Bangalore Company Secretary

Date : 30th May 2013


31-Mar-2013 31-Mar-2012

Sl. No Particulars Note No


Notes to the Financial Statements


Sale of products 1,196,080,118 1,122,390,210

Other operating revenues - -

Revenue from operations 1,196,080,118 1,122,390,210

Details of products sold:

Seeds from cultivation 838,121,150 958,108,978


Trading of Seeds 113,421,378 -

Total 1,196,080,118 1,122,390,210

22 OTHER INCOME

Interest on others - 1,507,152

Dividend Income - 3,280,280

Income from redemption of Mutual Fund Investment - 15,561

Prior period Income 1,929,232 -

Excess provision written back 328,926 -

Insurance claim received 27,328 -

Miscellaneous receipts 745,628 134,095

Total 3,031,114 4,937,088


Cultivation expenses 249,368,601 205,036,318

Raw materials 23,004,921 16,906,331



282,838,015 243,560,586

31-Mar-2013 31-Mar-2012

For the Year Ended

For the Year Ended


31-Mar-2012

For the Year Ended

31-Mar-2013 31-Mar-2012

31-Mar-2013

PARTICULARS

PARTICULARS For the Year Ended

PARTICULARS

24 (INCREASE) / DECREASE IN INVENTORIES OF FINISHED GOODS,

WORK-IN-PROGRESS AND STOCK-IN-TRADE

Inventories at the end of the year

Work in progress 162,513,638 207,767,800

Finished goods 224,955,854 182,327,295

387,469,492 390,095,095


Work in progress 207,767,800 264,877,795

Finished goods 182,327,295 150,666,229

390,095,095 415,544,024

(Increase) / Decrease in Inventories of Finished Goods, Work-

in-Progress and Stock-in-Trade 2,625,603 25,448,929

Details of work In progress and finished goods

Closing stock of work In progress

Foundation seeds 162,513,638 207,767,800

Other seeds - -

Sub Total 162,513,638 207,767,800

Closing stock of finished goods

Seeds 189,958,984 158,382,124

Biocides 34,996,870 23,945,171

Sub Total 224,955,854 182,327,296

Opening stock of work In progress


Other Seeds - 71,640,000

Sub Total 207,767,800 264,877,797

Opening stock of finished goods

Seeds 158,382,124 107,402,389

Biocides 23,945,171 43,263,840

Sub Total 182,327,295 150,666,229


Salaries , wages and allowances 67,145,812 48,264,969

Contribution to Provident & Other Funds 2,809,960 1,398,612

Staff welfare expenses 774,747 1,131,797

Total 70,730,519 50,795,378

31-Mar-2012

For the Year Ended

31-Mar-2012

For the Year Ended

31-Mar-2013

For the Year Ended

For the Year Ended

31-Mar-2013

PARTICULARS

PARTICULARS

26 FINANCIAL COSTS

Interest expense on working capital 16,613,439 2,371,832

Interest paid on term loan 1,340,743 132,316

Interest on trade deposits 120,806 259,175

Interest on Income tax 285,987 -

Interest on others 214,455 79,126

Bank charges 1,533,878 776,250

Total 20,109,308 3,618,699

* Interest cost of Rs.74,58,348/-(Nil) has been capitalised as per AS 15. The same amount is not been considered in the above finance cost

27 OTHER EXPENSES

Research materials 160,593 339,904

Geo-Climatic trials 178,565,386 164,844,914

Consumable 1,521,528 2,283,998

Labour charges 3,812,007 2,639,127

Power, fuel & water 4,077,687 4,160,424

Repairs & maintenance:

Building 409,490 973,481

Plant & machinery 551,516 57,860

Others 2,681,473 3,188,251

Rent & hire Charges 5,723,602 3,661,705

Rates & taxes 3,516,920 3,172,827

Insurance 685,459 1,159,767

Travelling & conveyance 31,317,150 20,452,010

Communication expenses 1,283,183 1,108,152

Postage & Courier charges 493,642 711,814

Advertisement & publicity 216,228 440,358

Printing & stationery 1,179,701 2,696,353

Lease & license Fee 275,000 900,000


Donations - 10,500

Auditors' remuneration 393,260 393,260


Freight 13,471,481 14,339,093


Business promotion 139,346,136 179,805,759

Provision for bad Receivables / bad receivables written off 35,586,789 900,000

Miscellaneous 2,693,933 2,041,412

Total 459,565,251 583,071,266


As Auditor

Audit fees 300,000 300,000

Tax audit fees 50,000 50,000

Service tax 43,260 43,260

393,260 393,260

31-Mar-2013 31-Mar-2012


31-Mar-2013 31-Mar-2012


PARTICULARS

PARTICULARS

Notes to Accounts

NOTES TO ACCOUNTS (Standalone)


1. CORPORATE INFORMATION

Camson Bio Technologies Limited („the Company‟) is in the field of bio technology focused on cultivation of

hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management

products for the agricultural markets.

2. SIGNIFICANT ACCOUNTING POLICIES :

2.1 Basis of Accounting:

The financial statements are prepared under the historic cost conversion, on the basis of a going concern and

as per applicable Notified Accounting Standards laid down in Companies (Accounting Standards) Rules,

2006 and relevant provisions of the Companies Act, 1956. The Company follows mercantile system of

accounting and recognizes Income and Expenditure on accrual basis. The accounting policies have been

diligently applied by the Company and are consistent with those used in the previous year.

2.2 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles

requires the Management to make estimates and assumptions that affect the reported balances of assets and

liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the

results of operations during the period under review. Although these estimates are based upon the

Managements best knowledge of current events and actions, actual results could differ from these estimates.

2.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the

purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its working

condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises cost of

fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets are

recorded at the consideration paid for their acquisition.


The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner

prescribed in Schedule XIV of the Companies Act, 1956 except in the case of Poly House which has been

depreciated over the period of ten years. Depreciation on additions/deletions during the year has been

provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each are

fully depreciated.


2.5 Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as

current investments. All other investments are classified as long-term investments. Current investments are

carried at lower of cost and fair value determined on an individual investment basis. Long term investments

are carried at cost.

2.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Work-in

Process including foundation seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing the

inventories to their present location and condition.


Notes to Accounts

(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost and net

realizable value on FIFO basis. However, materials and other items held for use in the production of

inventories are not written down below cost if the resulting finished products are expected to be sold at or

above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost

includes direct materials and labour expenses and aproportion of manufacturing overheads based on normal

operating capacity determined on standard cost basis. Cost also includes a portion of the research expenses

which in the opinion of the management attribute to the development of these seeds.



Contribution to defined contributory retirement benefit schemes are recognized as an expense when

employees have rendered services entitling them to contributions. For defined benefit schemes, the cost

of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being

carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and

loss account for the period in which they occur. Past service cost is recognized immediately to the extent

that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average

period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits

comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged

to the profit &loss account for the year.


Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company

and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the

goods have passed to the buyer which generally coincides with dispatch of goods to the customer and

when there is no significant uncertainty exists regarding the amount of the consideration that will be

derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding

and the rate applicable.

2.9 Research And Development:

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at

the applicable rates. Revenue expenditure is charged to Profit and Loss account in the year in which it is

incurred.


Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are

capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset

is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs

are charged to Profit and Loss Account in the year in which they are incurred.

2.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the

assessment year.


In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount

of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if

Notes to Accounts

there is convincing evidence for realization of such asset during the specified period. MAT credit

entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have

been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on

account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if

there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on

account of other timing differences are recognized only to the extent there is a reasonable certainty of its

realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to

reassure realization.

2.12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of

impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount

of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets

exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the

recoverable amount of the cash generating unit to which the asset belongs.

2.13 Foreign Currency Transactions:

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 “The Effects of

Changes in Foreign Exchange Rates”.


Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by

the lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as

incurred.


Basic earnings per share are calculated by dividing the net profit for the period attributable to equity

shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of

equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity

shareholders and the weighted average number of shares outstanding during the period are adjusted for the

effects of all dilutive potential equity shares.


A provision is recognized when the Company has a present obligation as a result of past event and it is

probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable

estimate can be made. Provisions are not discounted to present value and are determined as best estimates

required settling the obligation at the Balance Sheet date.


a. A present obligation arising from past events, when it is not probable that an outflow of resources will be

required to settle that obligation;





Notes to Accounts

28.1 The Income generated from cultivation and marketing of seeds, which is in the nature of agricultural activity,

is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for

both agricultural activities and agri - biotech products are bifurcated on an estimated basis for the purpose of

computing taxable income.


December 2009 closed

the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs and interest

thereon from the Company since NHB has not taken any steps to resolve the issue despite the directives from

the said court. However as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and accrued interest

thereon due to NHB is not withdrawn.

28.3 The Company has taken certain assets under cancelable operating leases. The total rental expense under

cancelable operating leases during the year was Rs. 64, 80,308/- (Rs. 36, 61,705/-).

28.4 The Company has entered into an agreement to acquire 34 acre land from a director and paid an advance of Rs

154,375,676/- (19,915,000/-).



The Company makes Provident Fund contribution to defined contribution retirement benefit plans for eligible

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. 17,36,734/- (Rs. 13, 98,612/-) for provident fund

contributions in the profit and loss account including contribution to the Managing Director. The contributions

payable to these plans by the Company are at rates specified in the rules of the respective scheme.


The Company makes the provision to the 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 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 each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company‟s

financial statements as at March 31, 2013:

Particulars Period Ended

31.03.2013 31.03.2012

Present Value of Funded Obligation 0 0

Fair Value of Plan Assets 0 0

Present Value of Unfunded Obligation 4,230,284 3,660.97

Unrecognized Past Service Cost 0 0

Amount not Recognized as on Assets (limit as Para 59(b)) 0 0

Net Liability 4,230,284 3,660,973

Amount in Balance Sheet

Liabilities 4,230,284 3,660,973

Assets 0 0

Net Liability is bifurcated as follows:

Current 226,147 492,094

Non Current 4,004,137 3,168,879

Net Liability 4,230,284 3,660,973

Notes to Accounts

Expenses to be Recognised in Statement of Profit and Loss Account

Current Service Cost 703,056 582,206

Interest on Defined Benefit Obligation 352,087 249,541

Expected Return of Plan Assets 0 0

Net Actuarial Losses/ (Gain) Recognised in Year -247,312 257038

Past Service Cost 0 0

Losses/(Gains) on " Curtailments & Settlements" 0 0

Losses/(Gains) on " Acquisition / Divestiture " 0 0

Effect of the limit in Para 59(b) 0 0

Total, included in " Employee Benefit Expenses " 807,831 1,088,785

Actual Return on Plan Assets 0 0


31.03.2013 31.03.2012

Financial Assumption at the Valuation Date:

Discount Rate (p. a.) 8.05% 8.55%

Expected Rate of Return of Assets (p.a.) 0.00% 0.00%

Salary Escalation Rate (p.a.)

10% for the first 2

year & 7 %

thereafter

10% for the first 3

year & 7 %

thereafter

28.6 The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act,

2006 has been determined to the extent such parties had been identified on the basis of information available

with the Company in this regard.

Particulars 2012-2013 2011-13


Principal amount and the interest due thereon

remaining unpaid to any supplier as at the end of each

accounting year;

3,745/- Nil Nil Nil

The amount of interest paid by the buyer in terms of

Section 16 of the Micro, Small and Medium

Enterprises Development Act, 2006, along with the

amount of the payment made to the supplier beyond

the appointed day during each accounting year;

Nil Nil Nil Nil

The amount of interest due and payable for the period

of delay in making payment (which have been paid

but beyond the appointed day during the year) but

without adding the interest specified under the Micro,

Small and Medium Enterprises Development Act,

2006;

Nil Nil Nil Nil

The amount of interest accrued and remaining unpaid

at the end of each accounting year;

Nil Nil Nil Nil

The amount of further interest remaining due and

payable even in the succeeding years, until such date

Nil Nil Nil Nil

Notes to Accounts

when the interest dues as above are actually paid to

the small enterprise, for the purpose of disallowance

as a deductible expenditure under section 23 of the

Micro, Small and Medium Enterprises Development

Act, 2006.


28.7 Expenditure in foreign currency towards travelling expenses Nil (89,962/-).



(a) Subsidiaries:

Camson Agri Ventures Private Limited

(b) Associates: Entities where Key Management Personnel (KMP)/relatives of Key Management

Personnel (RKMP) have significant influence:

- Sanatan Herbal & Naturals Limited

- Camson Farm Produce Private Limited

- Shashtika Health Resorts & Spa Private Limited

- Camson Green Valley Products Private Limited

(c) Key Management Personnel:




A.N. Singh - Director

Alka Singh

Geetha Singh

Karan Singh

Reeya Singh

2. Transactions carried out with related parties


Sl.

No. Particulars 31st March 2013 31st March 2012

I Transactions with KMP & their relatives

Remuneration to Dhirendra Kumar

6,000,000 6,000,000

Commission to V K Singh Nil 2,061,581

Loan taken/recovered from Dhirendra Kumar

7,877,189 1,550,000

Capital Advance to A N Singh, Director

154,375,676 19,915,000

II Transactions with associates

Bio Cides Sales with Camson Agri Ventures Private Limited

1,03,160 Nil

Seeds Sales with Camson Agri Ventures Private Limited

76,752 Nil

Notes to Accounts

Equity Share Capital Investment in Camson Agri Ventures Private Limited

65,000 Nil


900,000

900,000


1,061,093 1,061,093

Dividend to Shashtika Health Resort & spa Private Limited

990,000

990,000


36,691

36,691

Share Warrant money received from Shashtika Health Resorts & Spa Pvt.,

Ltd.,

31,500,000 Nil

Share Warrant money received from Reeya Singh

12,250,000 Nil

Loan taken from Shashtika Health Resorts & Spa Pvt., Ltd.,

1,800,000 Nil

Loan repaid to Camson Farm Produce Pvt., Ltd.,

3,320,000 Nil

Loan taken from Camson Green Valley Products Private Limited Nil 18,250,000

Loan taken from Camson Farm Produce Private Limited

8,245,000 13,001,214

Loan repayment to Camson Farm Produce Private Limited

3,320,000 Nil

Loan taken from Sanatan Herbal & Naturals Limited

1,350,000 6,709,178


3,249,000 Nil



2,100,000 2,100,000

Payable to Dhirendra Kumar

9,427,189 1,550,000

Payable to Geeta Singh

1,500,000 1,500,000

Payable to Camson Green Valley Products private Limited

18,111,968

18,111,9680

Payable to Camson Farm Produce Private Limited

18,751,214 13,001,214

Outstanding Amount due from Camson Agri Venture Private Limited

1,509,695

-

Payable to Sanatan Herbal & Naturals Limited

1,810,178 3,709,178

(Due from)/ Due to Shashtika Health Resorts & spa Private Limited 1798600 (Cr) 1400(Dr)

Capital Advance due from A N Singh

154,375,676 19,915,000

28.9 Earnings per Share (EPS): - Standalone

Earnings per share is calculated in accordance with Accounting Standard 20 – “Earnings per share”, notified

by the Companies (Accounting Standards) Rules, 2006.

Earnings per Share - Standalone


Amount (Rs) Amount (Rs) Amount (Rs) Amount (Rs)

Notes to Accounts

Profit before tax & extra ordinary Items

231,077,609

204,467,881

Less: Tax expense 1,016,082 (2,754,969)

Profit after tax

230,061,527

207,222,850

Weighted average no. of equity shares:

Basic

12.69

11.43

Diluted*

9.53

11.43

There is no extraordinary income/expense during the year.


In accordance with AS-17 “Segment Revenue”, notified by the Companies (Accounting Standards) Rules,

2006, segment revenue, segment results and other information are as under:

A. Primary Segment






Revenue and Expenses have been identified to a segment on the basis of relationship to operating

activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not

allocable to a segment on a reasonable basis have been disclosed as “Unallocable”.


Segment assets and segment liabilities represent assets and liabilities in respective segments.

Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment

on reasonable basis have been disclosed as “Unallocable”.


The entire turnover of the Company is from domestic business and there is no geographical/secondary

segment to be reported.

Segment report - standalone


2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

Segment Revenue

951,542,528

958,108,978

244,537,590

164,281,232 1,196,080,118

1,122,390,210

Segment Result

233,624,668

217,778,466

16,221,506

6,531,055 249,846,174

224,309,521

Unallocated Corporate

Expenses

-

21,025,932


Incomes

-

(3,295,841)

Operating profit before

interest & taxes 249,846,174

206,579,430

Notes to Accounts

Interest Expense 18,768,565

3,618,699

Interest Income

-

(1,507,150)

Profit Before Tax 231,077,609

204,467,881

Tax expense 1,016,082

(2,754,969)

Profit After Tax 230,061,527

207,222,850

OTHER INFORMATION

Segment Assets

Fixed Assets

420,361,080

174,536,554

360,897,725

166,364,491 781,258,805

340,901,045

Current Assets

824,372,824

742,127,815

211,856,157

127,281,528 1,036,228,981

869,409,343


Assets

Fixed Assets

-

226,570,203

Investments

-

-

Current Assets

(1,036,228,981)

(869,409,343)

Total Assets 781,258,805

567,471,248

Segment Liabilities

21,978,525

116,078,722

5,648,277

23,809,200 27,626,802

78,656,367


Liabilities 753,632,003

488,814,880

Total Liabilities 781,258,805

567,471,248

28.11 Claims against company not acknowledged as debts Rs.6,92,688/-(Nil)

28.12 Balances of Trade Payables, Trade Receivables, Loans and Advances are subject to confirmation and

reconciliation.

28.13 The Company has reclassified previous year figures to conform to this year‟s classification.

28.14 The figures in the brackets represent previous year‟s figures.


For ISHWAR & GOPAL


Sd/- Sd/- Sd/-

K. V. Gopalakrishnayya Dhirendra Kumar A N Singh




Sd/-

Place: Bangalore Ekta Ghandhi Thakurel

Date: 30.05.2013 (Company Secretary)

Rs. Rs. Rs. Rs.

A. Cash Flow from Operating Activities

Profit /(Loss) before taxation 243,352,117.00 204,467,881.15

Adjustments for:

Depreciation 33,537,807.00 16,364,559.00

Interest income on deposits - (1,064,542.00)

Dividend income - (3,280,280.00)

Profit on redemption of Investment - (15,561.00)

Interest Expenses on borrowings 17,954,182.00 3,618,699.00

Provision for doubtful debts 35,586,788.00 900,000.00

Provision for Employee Benefit 4,230,284.00 1,088,785.00

91,309,061.00 17,611,660.00

Operating profit before working capital changes 334,661,178.00 222,079,541.15

Changes in Working Capital:

Increase / (Decrease) in trade payables 104,335,436.00 (59,485,376.55)

Increase / (Decrease) in Short term provisions 3,853,738.00 (3,930,331.13)

Increase / (Decrease) in Other Long term Liabilities (1,810,001.00) -

Increase / (Decrease) in Long term provisions (3,168,879.00) (383,083.40)

Increase / (Decrease) in other current liabilities 36,208,810.00 (19,382,665.98)

(Increase) / Decrease in trade receivables (372,060,314.00) (42,868,806.60)

(Increase) / Decrease in inventories 4,185,397.00 27,165,390.43

(Increase) / Decrease in short term loans and advances (73,616,920.00) (6,805,395.23)

(Increase) / Decrease in Long term loans and advances (166,635,519.00) (58,240,886.62)

(Increase) / Decrease in other current assets (675,976.00) (78,073.00)

(Increase) / Decrease in current Assets - 43,422,801.00

(Increase) / Decrease in other non-current assets - (469,384,228.00) (120,586,427.08)

Taxes paid -

Net cash generated from operating activities A (134,723,050.00) 101,493,114.07

B. Cash flow from Investing Activities:

Purchase of tangible/intangible assets including Capital work in progress (250,253,581.10) (206,163,893.69)

Proceeds from redemption of investments 72,696.00 -

Profit on redemption of Investment - 15,561.00

Dividend Income - 3,280,280.00

Interest received on deposits - 1,064,542.00

Net cash from investing activities B (250,180,885.10) (201,803,510.69)

C. Cash flow from Financing Activities

Share Warrants application Money 148,000,000.00 (20,931,250.00)

Payment of Dividend including Distribution tax (21,009,146.00) -

Interest paid (17,954,182.00) (3,618,699.00)

Proceeds from Borrowings including Current Obligation of Long term Debt(net) 284,622,868.68 114,010,570.14

Repayment of borrowings (466,124.05)

Net cash used in Financing Activities C 393,193,417.00 89,460,621.14

Net increase in cash and cash equivalents (A+B+C) 8,289,481.90 (10,849,775.48)

Cash and Cash equivalents at the beginning of the year 8,591,421.00 19,441,196.00

Cash and Cash equivalents at the end of the year 16,880,903.00 8,591,421.06





Sd/-




sd/-




CASH FLOW FOR THE YEAR ENDED 31ST MARCH 2013

As at March 31, 2013 As at March 31, 2012Particulars


Consolidated Balance Sheet as at 31st March 2013



Shareholders' funds

Share capital 3 181,300,000 181,300,000

Reserves and surplus 4 1,288,689,528 1,074,619,080

Money received against share warrants 148,000,000 1,617,989,528 - 1,255,919,080

Minority Interest 2,737,036 -

Non-current liabilities

Long term borrowings 5 159,116,882 25,321,814

Other long term liabilities 6 14,466,325 16,276,326

Deferred tax liabilities (Net) 7 8,195,168 7,218,266

Long term provisions 8 4,004,137 185,782,512 3,168,879 51,985,285

Current liabilities

Short term borrowings 9 225,132,095 98,591,442

Trade payables 10 179,340,337 75,004,901

Other current liabilities 11 87,059,438 27,029,604

Short term provisions 12 31,820,685 523,352,555 23,147,215 223,773,162

TOTAL 2,329,861,631 1,531,677,527

II ASSETS

Non-current assets

Fixed assets

Tangible assets 13 783,854,621 345,935,786

Intangible assets 13A 332,402 349,875

Capital work in progress - 221,185,588

Non-current investments 14 18,000 90,696

Long term loans & advances 15 231,544,762 1,015,749,785 64,909,243 632,471,188

Current assets

Inventories 16 395,877,361 400,062,758

Trade receivables 17 805,820,111 469,346,585

Cash & cash equivalents 18 16,880,903 8,591,421

Short term loans & advances 19 94,744,422 21,127,502

Other current assets 20 789,049 1,314,111,846 78,073 899,206,339

TOTAL - 2,329,861,631 1,531,677,527

Significant accounting policies and additional disclosures 1,2&28





sd/-




sd/-



Note

No.ParticularsSl. No

As at

31-Mar-2013

As at

31-Mar-2012


Notes to the Financial Statements for the year Ended 31st March 2013

3 SHARE CAPITAL


Authorised

Equity Shares 30,000,000 300,000,000 20,000,000 200,000,000

Issued

Equity Shares 18,130,000 181,300,000 18,130,000 181,300,000

Subscribed and fully paid

Equity Shares 18,130,000 181,300,000 18,130,000 181,300,000

Total 18,130,000 181,300,000 18,130,000 181,300,000

a. Par value per equity Share is Rs. 10 /=


Equity Shares

Outstanding at the Beginning of the Period 18,130,000 181,300,000 18,130,000 181,300,000

Outstanding at the End of the Period 18,130,000 181,300,000 18,130,000 181,300,000

c. Terms / rights attached to equity shares

No. of shares % of holding No. of shares % of holding

held held

Dhirendra Kumar 1,944,680 10.73 1,916,580 10.57


Shashtika Health Resort & SPA Private Ltd 990,000 5.46 990,000 5.46

Particulars

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.

As at 31.03.2012

d. Shares held by each shareholder holding more than 5 percent shares specifying the number of shares held

As at 31.03.2013Name of the Shareholder

As at 31.03.2012

The Company has only 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.

The Company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of share holders in

the annual general meeting.

As at 31.03.2013

b. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars As at 31.03.2012

As at 31.03.2013


Capital Reserve

Balance as per last financial statement 2,11,21,135 189,885

Add: Additions During the Year 21,121,135 20,931,250 21,121,135


Balance as per last financial statement 35,49,50,000 354,950,000

Add: Received During The Year 354,950,000 - 354,950,000

General Reserve


Add: Additions during the year 212,362,915 212,362,915

Surplus / (Deficit) in Statement of Profit & Loss


Profit for the year 23,50,79,594 207,222,850

721,264,624 507,264,204

Appropriations

Proposed Dividend on equity shares 1,81,30,000 18,130,000


Net surplus / (Deficit) in Statement of Profit & Loss 700,255,478 486,185,030

Total 1,288,689,528 1,074,619,080


Term Loans

a) From Bank: - Secured

Term Loan from banks 1,064,989 993,634

(Secured against hypothecation of plant and machinery)

Term Loan from HDFC Bank Limited - Secured 130,000,000 -

(Security details - refer note 1)

b) From Other Parties:

- From TATA Motors Finance Ltd 473,768

(Secured against hypothecation of vehicles)

- From Related parties 51,399,149 24,871,146

(Unsecured ,Interest free -Repayable during the year 2015-16)

Total Long term borrowings 182,937,906 25,864,780

23,821,024 542,966

Total 159,116,882 25,321,814

31-Mar-2012

PARTICULARS

PARTICULARS

31-Mar-2013

As at As at


31-Mar-2012

As at As at

31-Mar-2013

-

23,219,995

26,138,978

29,454,905 -

33,123,906 -

18,062,216 -

- 542,966

296,490 281,439

331,622 169,229

370,917 -

65,960 -

304,538 -

169,229 -

6 OTHER LONG TERM LIABILITIES

Trade deposit received 14,466,325 16,276,326

Total 14,466,325 16,276,326


Deferred tax liability on account of fixed assets 8,462,416 7,267,504

Deferred Tax Assets on account of temporary disallowances

under Income Tax Act 267,247 49,238



Provision for gratuity 4,004,137 3,168,879

Total 4,004,137 3,168,879

PARTICULARS

2012-13

2013-14

2014-15

As at

31-Mar-2012

As at

Particulars of repayment of Term Loan against Plant and machinery

from HDFC Ltd

As at

PARTICULARS

2016-17

2017-18

2013-14

2015-16

As at

31-Mar-2013 31-Mar-2012

As atAs at

31-Mar-2013

PARTICULARS

31-Mar-2013

31-Mar-2013 31-Mar-2012

Note1 - The Term Loan from HDFC Bank Limited are secured by exclusive hypothecation charge over plant and machinery purchase out of bank finance

and extension of charge on over property mortgaged for Cash Credit facility. The interest rate is 12.50% p.a.

2014-15

As at

31-Mar-2012

Particulars of repayment of loan against vehicle from TATA Motors

Finance Ltd.

2013-14

2014-15

As at

2015-16

2016-17

Particulars of repayment of Term loan against vehicle from

HDFC Ltd


a) Loans repayable on demand

i) From Banks:

Cash Credit facilities from HDFC Bank Limited - Secured 170,765,465 90,587,442

Farmer loan - HDFC Bank Limited - Unsecured 46,362,630 -

ii) From other parties:

National Horticultural Board -Unsecured 8,004,000 8,004,000

(Refer note 28.2)

Total 225,132,095 98,591,442

10 TRADE PAYABLES

Due to Micro, Small and Medium Enterprises* 3,745 -

Due to others 179,336,592 75,004,901

Total 179,340,337 75,004,901


.


3,745 Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

the amount of interest paid by the buyer in terms of section 16 of the

Micro, Small and Medium Enterprises Development Act, 2006, along with

the amount of the payment made to the supplier beyond the appointed

day during each accounting year;

The information required to be disclosed under the Small and Medium Enterprises Development Act, 2006 has been determined to the extent such

parties have been identified on the basis of information available with the Company in this regard.

31-Mar-2012

the amount of interest due and payable for the period of delay in making

payment (which have been paid but beyond the appointed day during the

year) but without adding the interest specified under the Micro, Small and


the amount of interest accrued and remaining unpaid at the end of each

accounting year;

the amount of further interest remaining due and payable even in the

succeeding years, until such date when the interest dues as above are

actually paid to the small enterprise, for the purpose of disallowance as a

deductible expenditure under section 23 of the Micro, Small and Medium

Enterprises Development Act, 2006.

PARTICULARS

PARTICULARS

As at

Particulars

2012-13

Principal amount and the interest due thereon (to be shown separately)

remaining unpaid to any supplier as at the end of each accounting year;

31-Mar-2013

31-Mar-2013 31-Mar-2012

2011-12

As at

The Cash credit facilities from HDFC Bank Limited are secured by exclusive hypothecation of Stocks and Book receivables (Present & Future) of the

Company and further secured by first charge on the Land and Building situated at Plot No 6 A and B, Phase -4, Industrial Area, Gwalthai, Dist.: Bilasapur,

Himachal Pradesh.

As at As at


Current maturities of long term debts (refer note 5) 23,821,024 542,966

Interest Accrued but not due on borrowings 1,137,730 -

Interest accrued but not due on security deposit 894,836

Taxes & Levies 3,190,882 1,714,634

Advances from customers 1,900,526 10,369,884

Unpaid dividend 981,404 629,122

Liabilities for capital assets 15,712,019 3,651,466

Other liabilities 39,421,017 10,121,532

Total 87,059,438 27,029,604


Provision for gratuity 226,147 492,094

Proposed dividend 18,130,000 18,130,000


Provision for taxation (Net of advance tax) 10,550,392 1,645,975

Provision for expenses 35,000 -

Total 31,820,685 23,147,215

As at As at

31-Mar-2012

PARTICULARS

PARTICULARS

As at

31-Mar-2013

31-Mar-2013

As at

31-Mar-2012

14 NON CURRENT INVESTMENTS

Trade, Valued at Cost:

Investment in Government or Trust Securities 18,000 18,000

Others - 72,696

Total 18,000 90,696

Aggregate amount of unquoted investment Rs.18,000/-, (P.Y. Rs.90,696/-)


Capital advances 226,575,677 59,921,989

Trade /Security deposits 3,203,398 3,690,800

Deposit - With government authorities 1,765,687 1,296,454

Total 231,544,762 64,909,243

16 INVENTORIES

Raw materials 2,589,463 5,045,980

Work in progress 162,513,638 207,767,800

Finished goods 224,955,854 182,327,297


Total 395,877,361 400,062,758


Unsecured,

Outstanding for a period exceeding six months from the date

they are due for payment

Considered good - 32,479,182

Considered doubtful 1,771,278 1,805,578

Sub Total 1,771,278 34,284,760

Less: Provision for doubtful receivables 1,771,278 1,805,578

- 32,479,182

Others - Considered good 805,820,111 436,867,403

Total 805,820,111 469,346,585

As atPARTICULARS

PARTICULARS

PARTICULARS

PARTICULARS

As at As at

31-Mar-2013 31-Mar-2012

As at

31-Mar-2013 31-Mar-2012

As at As at

31-Mar-2013 31-Mar-2012

As at

31-Mar-2013 31-Mar-2012

As at

18 CASH AND BANK BALANCES

Cash and Cash Equivalents:

Cash on hand 166,269 338,157

Cash at bank

- In Current accounts 15,549,244 7,480,156

- Unpaid Dividend account 981,004 628,722

Other Bank Balances

In Margin deposit 184,386 144,386

Total 16,880,903 8,591,421


Unsecured - Considered Good

Advance to suppliers 1,923,518 4,567,359

Employee advances 5,166,972 2,850,401

MAT credit entitlement 6,532,621 1,566,849

Other advances 81,121,311 12,142,893

Total 94,744,422 21,127,502


Prepaid expenses 789,049 78,073

Total 789,049 78,073

PARTICULARS

PARTICULARS

As at As at

31-Mar-2013

As at

PARTICULARS

As at As at

31-Mar-2013 31-Mar-2012

31-Mar-2012

As at

31-Mar-2013 31-Mar-2012



Consolidated Statement of Profit and Loss for year ended 31st March, 2013

1 INCOME

Revenue from operations 21 1,360,413,525 1,122,390,210

Other Income 22 3,031,114 4,937,088

Total Revenue 1,363,444,639 1,127,327,298

2 EXPENSES

Cost of Cultivation/ Materials consumed 23 282,838,015 243,560,586

Purchase of stock-in-trade 250,164,476 -

(Increase) / Decrease in Inventories of finished goods, work-in-

progress and stock-in-Trade 24 2,625,603 25,448,929

Employee benefits expense 25 70,730,519 50,795,378

Financial costs 26 20,109,308 3,618,699

Depreciation and amortization expense 13&13A 33,537,807 16,364,559

Other expenses 27 460,086,794 583,071,266

Total Expenses 1,120,092,522 922,859,417

Profit before tax 243,352,117 204,467,881

Tax Expense:

Current tax 10,264,405 1,566,849

Current tax relating to prior years withdrawn (705,048) (3,896,646)

MAT credit entitlement (4,965,772) (1,566,849)

Deferred Tax 976,902 5,570,487 1,141,677 (2,754,969)

Profit/Loss for the Year 237,781,630 207,222,850

Minority Interest 2,702,036 -

Net Profit after taxes, Minority interest 235,079,594 207,222,850

Earning per Equity Share:

Basic 12.97 11.43

Diluted 9.74 11.43






sd/-




sd/-



Note NoSl. No Particulars

31-Mar-2013


31-Mar-2012


Notes to the Financial Statements


Sale of products 1,360,413,525 1,122,390,210

Other operating revenues -

Revenue from operations 1,360,413,525 1,122,390,210

Details of products sold:

Seeds from Cultivation 838,121,150 958,108,978

Agricultural Biotech products 244,537,590 164,281,232

Trading of Seeds 277,754,785 -

Total 1,360,413,525 1,122,390,210

22 OTHER INCOME

Interest on others - 1,507,152

Dividend Income - 3,280,280

Income from redemption of Mutual Fund Investment - 15,561

Prior period Income 1,929,232 -

Excess provision written back 328,926 -

Insurance claim received 27,328 -

Miscellaneous receipts 745,628 134,095

Total 3,031,114 4,937,088


Cultivation expenses 249,368,601 205,036,318

Raw materials 23,004,921 16,906,331



282,838,015 243,560,586

31-Mar-2013

PARTICULARS

31-Mar-2012

PARTICULARS

PARTICULARS For the Year Ended

31-Mar-2012


31-Mar-2013 31-Mar-2012

For the Year Ended

31-Mar-2013


24 (INCREASE) / DECREASE IN INVENTORIES OF FINISHED GOODS,

WORK-IN-PROGRESS AND STOCK-IN-TRADE

Inventories at the end of the year

Work in progress 162,513,638 207,767,800

Finished goods 224,955,854 182,327,295

387,469,492 390,095,095


Work in progress 207,767,800 264,877,795

Finished goods 182,327,295 150,666,229

390,095,095 415,544,024

(Increase) / Decrease in Inventories of Finished Goods, Work-

in-Progress and Stock-in-Trade 2,625,603 25,448,929

Details of work In progress and finished goods

Closing stock of work In progress

Foundation seeds 162,513,638 207,767,800

Other seeds - -

Sub Total 162,513,638 207,767,800

Closing stock of finished goods

Seeds 189,958,984 158,382,124

Biocides 34,996,870 23,945,171

Sub Total 224,955,854 182,327,296

Opening stock of work In progress


Other Seeds - 71,640,000

Sub Total 207,767,800 264,877,797

Opening stock of finished goods

Seeds 158,382,124 107,402,389

Biocides 23,945,171 43,263,840

Sub Total 182,327,295 150,666,229


Salaries , wages and allowances 67,145,812 48,264,969

Contribution to Provident & Other funds 2,809,960 1,398,612

Staff welfare expenses 774,747 1,131,797

Total 70,730,519 50,795,378

PARTICULARS

PARTICULARS

31-Mar-2013 31-Mar-2012

31-Mar-2012


31-Mar-2013


26 FINANCIAL COSTS

Interest expense on working capital 16,613,439 2,371,832

Interest paid on term loan 1,340,743 132,316

Interest on trade deposits 120,806 259,175

Interest on Income tax 285,987

Interest on others 214,455 79,126

Bank charges 1,533,878 776,250

Total 20,109,308 3,618,699

* Interest cost of Rs.74,58,348/-(Nil) has been capitalised as per AS 15. The same amount is not been considered in the above finance cost

27 OTHER EXPENSES

Research materials 160,593 339,904

Geo-Climatic trials 178,565,386 164,844,914

Consumable 1,531,828 2,283,998

Labour charges 3,957,607 2,639,127

Power, fuel & water 4,077,687 4,160,424

Repairs & maintenance:

Building 409,490 973,481

Plant & machinery 551,516 57,860

Others 2,689,488 3,188,251

Rent & hire charges 5,963,602 3,661,705

Rates & taxes 3,524,340 3,172,827

Insurance 685,459 1,159,767

Travelling & conveyance 31,330,385 20,452,010

Communication expenses 1,283,183 1,108,152

Postage & Courier charges 493,642 711,814

Advertisement & publicity 216,228 440,358

Printing & stationery 1,183,326 2,696,353

Lease & license Fee 275,000 900,000


Donations - 10,500

Auditors' remuneration 449,440 393,260


Freight 13,471,481 14,339,093


Business promotion 139,346,136 179,828,571

Selling & Distribution - -

Provision for bad Receivables / bad receivables written off 35,586,788 900,000

Bad and Doubt Full Debts - -

Miscellaneous 2,703,012 2,041,412

Total 460,086,794 583,071,266


As Auditor

Audit fees 350,000 300,000

Tax audit fees 50,000 50,000

Service tax 49,440 43,260

449,440 393,260


31-Mar-2013 31-Mar-2012

PARTICULARS


31-Mar-2013 31-Mar-2012

PARTICULARS

Notes to Accounts

NOTES TO CONSOLIDATED ACCOUNTS


1. CORPORATE INFORMATION

Camson Bio Technologies Limited („the Company‟) is in the field of bio technology focused on cultivation of

hybrid seeds and manufacture of effective, safe and environmentally friendly natural pest management

products for the agricultural markets.

2. SIGNIFICANT ACCOUNTING POLICIES :

2.1 Convention

a) The consolidated financial statements comprise the individual financial statements of Camson Bio

Technologies Limited and its subsidiary as on 31st March, 2013 and for the year ended on that date. The

consolidated financial statements have been prepared on the following basis:

The financial statements of the Company and its subsidiary has been combined on a line-by-line basis by

adding together the book values of like items of assets, liabilities, income and expenses, after eliminating

intra group balances and intra group transactions resulting in un realised profit or losses as per Accounting

Standard–21 on „Consolidated Financial Statements‟ issued by the Institute of Chartered Accountants of

India.

b) The financial statements of the subsidiary, in the consolidation are drawn up to the same reporting date as

the Company i.e. 31st March2013.

c) The financial statements of Camson Agro-Venture the only subsidiary company has been consolidated

with Camson Agro-Ventures Private limited. The Company holds 65 percent (nil) of equity shares in its

subsidiary company.

2.2 Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles

requires the Management to make estimates and assumptions that affect the reported balances of assets and

liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the

results of operations during the period under review. Although these estimates are based upon the

Managements best knowledge of current events and actions, actual results could differ from these estimates.

2.3 Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises

the purchase price, expenses incidental to the installation of the assets, cost of bringing the asset to its

working condition for its intended use and attributable borrowing costs. Capital Work-in Progress comprises

cost of fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible assets

are recorded at the consideration paid for their acquisition.


The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner

prescribed in Schedule XIV of the Companies Act, 1956 except in the case of Poly House which has been

depreciated over the period of ten years. Depreciation on additions/deletions during the year has been

provided for on pro-rata basis. Assets purchased/installed during the year costing less than Rs.5,000/- each

are fully depreciated.


2.5 Investments:

Notes to Accounts

Investments that are readily realizable and intended to be held for not more than a year are classified as

current investments. All other investments are classified as long-term investments. Current investments are

carried at lower of cost and fair value determined on an individual investment basis. Long term investments

are carried at cost.

2.6 Inventories:

a. Inventories comprises of Raw Material, Stores, Spares and Consumables, Packing Materials, Work-in

Process including foundation seeds and Finished Goods.

b. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing

the inventories to their present location and condition.


(i) Raw Materials, stores, spares, consumables, and packing materials are valued at lower of cost

and net realizable value on FIFO basis. However, materials and other items held for use in the

production of inventories are not written down below cost if the resulting finished products are

expected to be sold at or above cost.

(ii) Work-in-Progress and Finished Goods are valued at lower of cost and net realizable value. Cost

includes direct materials and labour expenses and aproportion of manufacturing overheads

based on normal operating capacity determined on standard cost basis. Cost also includes a

portion of the research expenses which in the opinion of the management attribute to the

development of these seeds.



Contribution to defined contributory retirement benefit schemes are recognized as an expense when

employees have rendered services entitling them to contributions. For defined benefit schemes, the cost

of providing benefits is determined using the Project Unit Credit Method, with actuarial valuation being

carried out at each Balance Sheet Date. Actuarial gains and losses are recognized in full in the profit and

loss account for the period in which they occur. Past service cost is recognized immediately to the extent

that the benefits are already vested, and otherwise it is amortized on straight-line basis over the average

period until the benefits become eligible for being vested.

b. Short Term Employee Benefits: The amount payable on account of short term employee benefits

comprising largely of salaries and wages, annual bonus is valued on an undiscounted basis and charged

to the profit &loss account for the year.


Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company

and the revenue can be reliably measured.

a. Sale of Goods:

Revenue from sale of goods is recognized when significant risk and rewards of the ownership of the

goods have passed to the buyer which generally coincides with dispatch of goods to the customer and

when there is no significant uncertainty exists regarding the amount of the consideration that will be

derived from the sale of goods.

b. Interest Income:

Interest Income is recognized on a time proportionate basis taking into account the amount outstanding

and the rate applicable.

2.9 Research And Development:

Research and Development expenditure relating to capital items is debited to fixed assets and depreciated at

the applicable rates. Revenue expenditure is charged to Profit and Loss account in the year in which it is

incurred.


Notes to Accounts

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are

capitalized as part of the cost of asset up to the date such asset is ready for its intended use. A qualifying asset

is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs

are charged to Profit and Loss Account in the year in which they are incurred.

2.11 Taxation:

a. Current Tax:

Provision for current taxation has been made in accordance with the Income Tax laws applicable to the

assessment year.


In case the company is liable to pay income tax u/s 115JB of income tax Act,1961 ( MAT), the amount

of tax paid in excess of normal income tax is recognized as an asset (MAT Credit Entitlement) only if

there is convincing evidence for realization of such asset during the specified period. MAT credit

entitlement is reviewed at each balance sheet date.

c. Deferred Tax:

The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have

been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on

account of brought forward losses and unabsorbed depreciation under tax laws are recognized only if

there is a virtual certainty of its realization supported by convincing evidence. Deferred tax asset on

account of other timing differences are recognized only to the extent there is a reasonable certainty of its

realization. At each balance sheet date the carrying amount of deferred tax assets are reviewed to

reassure realization.

2.12 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of

impairment of the carrying amount of the Company's assets. If any indication exists, the recoverable amount

of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets

exceeds its recoverable amount. The recoverable amount is greater of the net selling price or value in use.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the

recoverable amount of the cash generating unit to which the asset belongs.

2.13 Foreign Currency Transactions:

Foreign currency transactions are dealt with in accordance with the Accounting Standard 11 “The Effects of

Changes in Foreign Exchange Rates”.


Assets acquired on lease where a significant portion of the risks and rewards of the ownership are retained by

the lessor are classified as operating lease. Lease rentals are charged off to the Profit & Loss Account as

incurred.


Basic earnings per share are calculated by dividing the net profit for the period attributable to equity

shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of

equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity

shareholders and the weighted average number of shares outstanding during the period are adjusted for the

effects of all dilutive potential equity shares.


A provision is recognized when the Company has a present obligation as a result of past event and it is

probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable

Notes to Accounts

estimate can be made. Provisions are not discounted to present value and are determined as best estimates

required settling the obligation at the Balance Sheet date.


a. A present obligation arising from past events, when it is not probable that an outflow of resources will be

required to settle that obligation;





28.1 The Income generated from cultivation and marketing of seeds, which is in the nature of agricultural activity,

is fully exempt from Income Tax u/s 10(1) of the Income Tax Act, 1961.Expenses which are common for

both agricultural activities and agri - biotech products are bifurcated on an estimated basis for the purpose of

computing taxable income.


December 2009

closed the case filed by National Horticulture Board (NHB) to recover the Soft Loan of Rs. 69.00 lakhs

and interest thereon from the Company since NHB has not taken any steps to resolve the issue despite the

directives from the said court. However as a matter of prudence, Rs 80.04 lakhs is shown as soft loan and

accrued interest thereon due to NHB is not withdrawn.

28.3 The Company has taken certain assets under cancelable operating leases. The total rental expense under

cancelable operating leases during the year was Rs. 64, 80,308/- (Rs. 36, 61,705/-).

28.4 The Company has entered into an agreement to acquire 34 acre land from a director and paid an advance of

Rs 154,375,676/-(19,915,000/-).



The Company makes Provident Fund contribution to defined contribution retirement benefit plans for

eligible 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. 17,36,734/- (Rs. 13, 98,612/-)

for provident fund contributions in the profit and loss account including contribution to the Managing

Director. The contributions payable to these plans by the Company are at rates specified in the rules of

the respective scheme.


The Company makes the provision to the 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 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 each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the

Company‟s financial statements as at March 31, 2013:


31.03.2013 31.03.2012

Present Value of Funded Obligation 0 0

Fair Value of Plan Assets 0 0

Present Value of Unfunded Obligation 4,230,284 3,660.97

Notes to Accounts

Unrecognized Past Service Cost 0 0

Amount not Recognized as on Assets (limit as Para 59(b)) 0 0

Net Liability 4,230,284 3,660,973

Amount in Balance Sheet

Liabilities 4,230,284 3,660,973

Assets 0 0

Net Liability is bifurcated as follows:

Current 226,147 492,094

Non Current 4,004,137 3,168,879

Net Liability 4,230,284 3,660,973

Expenses to be Recognised in Statement of Profit and Loss Account

Current Service Cost 703,056 582,206

Interest on Defined Benefit Obligation 352,087 249,541

Expected Return of Plan Assets 0 0

Net Actuarial Losses/ (Gain) Recognised in Year -247,312 257038

Past Service Cost 0 0

Losses/(Gains) on " Curtailments & Settlements" 0 0

Losses/(Gains) on " Acquisition / Divestiture " 0 0

Effect of the limit in Para 59(b) 0 0

Total, included in " Employee Benefit Expenses " 807,831 1,088,785

Actual Return on Plan Assets 0 0


31.03.2013 31.03.2012

Financial Assumption at the Valuation Date:

Discount Rate (p. a.) 8.05% 8.55%

Expected Rate of Return of Assets (p.a.) 0.00% 0.00%

Salary Escalation Rate (p.a.)

10% for the first 2

year & 7 %

thereafter

10% for the first 3

year & 7 %

thereafter

28.6 The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act,

2006 has been determined to the extent such parties had been identified on the basis of information available

with the Company in this regard.

Particulars 2012-2013 2011-13


Principal amount and the interest due thereon remaining

unpaid to any supplier as at the end of each accounting

year;

3,745/- Nil Nil Nil

The amount of interest paid by the buyer in terms of

Section 16 of the Micro, Small and Medium Enterprises

Development Act, 2006, along with the amount of the

payment made to the supplier beyond the appointed day

during each accounting year;

Nil Nil Nil Nil

The amount of interest due and payable for the period of

delay in making payment (which have been paid but

Nil Nil Nil Nil

Notes to Accounts

beyond the appointed day during the year) but without

adding the interest specified under the Micro, Small and


The amount of interest accrued and remaining unpaid at

the end of each accounting year;

Nil Nil Nil Nil

The amount of further interest remaining due and payable

even in the succeeding years, until such date when the

interest dues as above are actually paid to the small

enterprise, for the purpose of disallowance as a deductible

expenditure under section 23 of the Micro, Small and

Medium Enterprises Development Act, 2006.

Nil Nil Nil Nil


28.7 Expenditure in foreign currency towards travelling expenses Nil (89,962/-).



(a) Associates: Entities where Key Management Personnel (KMP)/relatives of Key Management

Personnel (RKMP) have significant influence:

- Sanatan Herbal & Naturals Limited

- Camson Farm Produce Private Limited

- Shashtika Health Resorts & Spa Private Limited

- Camson Green Valley Products Private Limited

(b) Key Management Personnel:



(c) Relatives of Key Management Personnel:

A.N. Singh - Director

Alka Singh

Geetha Singh

Karan Singh

Reeya Singh

2. Transactions carried out with related parties


Sl.

No. Particulars 31st March 2013 31st March 2012

I Transactions with KMP & their relatives

Remuneration to Dhirendra Kumar

6,000,000 6,000,000

Commission to V K Singh Nil 2,061,581

Loan taken/recovered from Dhirendra Kumar

Capital Advance to A N Singh, Director

154,375,676 19,915,000

II Transactions with associates


900,000

900,000


1,061,093 1,061,093

Notes to Accounts

Dividend to Shashtika Health Resort & spa Private Limited

990,000

990,000


36,691

36,691

Share Warrant money received from Shashtika Health Resorts & Spa Pvt.,

Ltd.,

31,500,000 Nil

Share Warrant money received from Reeya Singh

12,250,000 Nil

Loan taken from Shashtika Health Resorts & Spa Pvt., Ltd.,

1,800,000 Nil

Loan repaid to Camson Farm Produce Pvt., Ltd.,

3,320,000 Nil

Loan taken from Camson Green Valley Products Private Limited Nil 18,250,000

Loan taken from Camson Farm Produce Private Limited 8,245,000 13,001,214

Loan repayment to Camson Farm Produce Private Limited

3,320,000

Nil

Loan taken from Sanatan Herbal & Naturals Limited

1,350,000 6,709,178


3,249,000 Nil



2,100,000 2,100,000

Payable to Dhirendra Kumar

9,427,189 1,550,000

Payable to Geeta Singh

1,500,000 1,500,000

Payable to Camson Green Valley Products private Limited

18,111,968 18,111,968

Payable to Camson Farm Produce Private Limited

18,751,214 13,001,214

Payable to Sanatan Herbal & Naturals Limited

1,810,178 3,709,178

(Due from)/ Due to Shashtika Health Resorts & spa Private Limited 1798600 (Cr) 1400(Dr)

Capital Advance due from A N Singh

154,375,676 19,915,000

28.9 Earnings per Share (EPS): - Consolidated

Earnings per share is calculated in accordance with Accounting Standard 20 – “Earnings per share”, notified

by the Companies (Accounting Standards) Rules, 2006.


Amount (Rs) Amount (Rs) Amount (Rs) Amount (Rs)

Profit before tax & extra ordinary Items

243,352,117

204,467,881

Less: Tax expense 5,570,487 (2,754,969)

Minority Interest

2,702,036

-

Profit after minority Interest

235,079,594

207,222,850

Earnings per share – Basic & Diluted:

Basic

Notes to Accounts

12.97 11.43

Diluted*

9.74

11.43

There is no extraordinary income/expense during the year.


In accordance with AS-17 “Segment Revenue”, notified by the Companies (Accounting Standards) Rules,

2006, segment revenue, segment results and other information are as under:

A. Primary Segment






Revenue and Expenses have been identified to a segment on the basis of relationship to operating

activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not

allocable to a segment on a reasonable basis have been disclosed as “Unallocable”.


Segment assets and segment liabilities represent assets and liabilities in respective segments.

Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment

on reasonable basis have been disclosed as “Unallocable”.

B. Secondary Segment - Consolidated

The entire turnover of the Company is from domestic business and there is no geographical/secondary

segment to be reported.

Segment report - Consolidated


2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

Segment Revenue

1,116,719,416

958,108,978

244,537,590

164,281,232

1,361,257,006

1,122,390,210

Segment Result

245,899,177

217,778,466

16,221,506

6,531,055

262,120,683

224,309,521


Expenses

-

21,025,932


Incomes

-

(3,295,841)

Operating profit before

interest & taxes

262,120,683

206,579,430

Interest Expense

18,768,565

3,618,699

Interest Income

-

(1,507,150)

Profit Before Tax

243,352,118

204,467,881

Tax expense

5,570,487

(2,754,969)

Profit after tax

237,781,631

207,222,850

OTHER INFORMATION

Segment Assets

Fixed Assets

420,361,080

174,536,554

360,897,725

166,364,491

781,258,805

340,901,045

Notes to Accounts

Current Assets

985,823,319

742,127,815

215,874,153

127,281,528

1,201,697,472

869,409,343


Assets

Fixed Assets

-

226,570,203

Current Assets

(1,200,908,423)

(869,409,343)

Total Assets

782,047,854

567,471,248

Segment Liabilities

22,663,895

116,078,722

156,676,442

23,809,200

179,340,337

78,656,367


Liabilities

602,707,517

488,814,880

Total Liabilities

782,047,854

567,471,248

28.11 Claims against company not acknowledged as debts Rs.6,92,688/-(Nil)

28.12 Balances of Trade Payables, Trade Receivables, Loans and Advances are subject to confirmation and

reconciliation.

28.13 The Company has reclassified previous year figures to conform to this year‟s classification.

28.14 The figures in the brackets represent previous year‟s figures.


For ISHWAR & GOPAL


Sd/- Sd/- Sd/-

K. V. Gopalakrishnayya Dhirendra Kumar A N Singh




Sd/-

Place: Bangalore Ekta Gandhi Thakurel

Date: 30.05.2013 (Company Secretary)

Documents

CAMSON BIO TECHNOLOGIES LIMITED - bseindia.com Ishwar & Gopal, Chartered Accountants K. V. Gopalakrishnayya Partner Membership No.21748 Firm Registration No. 001154S ... Share Capital