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Super Crop Safe Ltd.

BSE: 530883 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE366G01022
BSE 00:00 | 21 Feb 18.75 0.40
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NSE 05:30 | 01 Jan Super Crop Safe Ltd
OPEN 18.00
PREVIOUS CLOSE 18.35
VOLUME 72862
52-Week high 37.75
52-Week low 15.05
P/E 13.99
Mkt Cap.(Rs cr) 74
Buy Price 18.45
Buy Qty 115.00
Sell Price 18.75
Sell Qty 22.00
OPEN 18.00
CLOSE 18.35
VOLUME 72862
52-Week high 37.75
52-Week low 15.05
P/E 13.99
Mkt Cap.(Rs cr) 74
Buy Price 18.45
Buy Qty 115.00
Sell Price 18.75
Sell Qty 22.00

Super Crop Safe Ltd. (SUPERCROPSAFE) - Director Report

Company director report

To

The Members

Your Directors are pleased to present the 31st Annual Report together with the auditedaccounts of the company for the year ended on 31st March 2018. The summarized financialresults for the year ended 31st March 2018 are as under:

FINANCIAL RESULTS

(Amount in Lakhs)

Particulars Financial Year 2017-18 Financial Year 2016-17
Profit / (Loss) before Depreciation 635.54 370.24
Less: Depreciation 75.64 60.99
Profit / (Loss) before Taxation 559.90 309.24
Less: Deferred Tax 0.86 3.57
Less: Current Tax (67.07) (36.24)
Net Profit / (Loss) after Depreciation & Tax 493.69 276.57
General Reserve 771.01 421.01

OPERATIONS

During the year under report the company continued to reach the new heights in salesand profit as well. Sales of the company have decreased to Rs. 6829.48 Lakhs (PreviousYear Rs. 7498.21 Lakh) which shows encouraging growth in total revenue and speaks aboutthe efficient working of the company.

Revenues

Total Income from Operations decreased by Rs. 694.50 Lakh from Rs. 7527.66 Lakh to Rs.6833.16 Lakh in FY 2017-18 decreased by 9.22%. (In Accordance with the Indian AccountingStandards - 18 on revenue and Schedule III of the Companies Act 2013 unlike exciseduties levies like GST VAT etc. are not part of the Revenue. Accordingly the figures arenot strictly relatable to previous year figures).

Profits

Earnings before Depreciation Interest and Taxes (EBDIT) has increased by Rs. 266.05from Rs. 491.94 to Rs. 757.99 in FY 201718 increased by 54.85%.

Profit before Tax (PBT) increase by Rs. 250.66 from Rs. 309.24 Lakhs to Rs. 559.90Lakhs in FY 2017-18 increased by 81.06%.

Profit after Tax (PAT) increase by Rs.217.12 Lakhs from Rs. 276.57 Lakhs to Rs. 493.69Lakhs in FY 2017-18 increased by 78.51%.

Members are aware that changes were introduced by your Directors in marketing strategya few years back and since then performance of the Company is improving which haveresulted in strengthening the financial position of the Company. The encouraging resultsare before you. Your Company has done very well even during the depression in the countryand overseas market.

DIVIDEND

Considering the performance and to appropriately reward the Members while conservingresources to meet future financial requirements the Board of Directors recommends adividend of Rs. 0.10/- per equity share of Rs. 2/- each (5%). This dividend is subject tothe approval of Members at the forthcoming Annual General Meeting and if approved Memberswhose names appear on the Register of Members on 17th September 2018 will be entitled todividend. In the previous year the Company paid a dividend of Rs. 0.70/- per equity shareof Rs. 10 each (7%)

In respect of shares held in the dematerialized form the dividend will be paid to themembers whose names are furnished by NSDL and CDSL as beneficiary owners.

TRANSFER TO RESERVES

The company has transferred Rs. 350 Lakh from Profit & Loss Account to GeneralReserve.

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to applicable provisions of the Companies Act 2013 ("The Act") readwith the Investor Education and Protection Fund Authority (Accounting Audit Transfer andRefund) Rules2016 ("The Rules") all unpaid or unclaimed dividends are requiredto be transferred by the Company to the Investor Education and Protection Fund (IEPF)established by the Central Government after completion of seven years. Further accordingto the Rules the shares in respect of which dividend has not been paid or claimed by theMembers for seven consecutive years or more shall also be transferred to the demat accountcreated by the IEPF Authority.

The Company had sent individual notices and also advertised in the newspapers seekingaction from the Members who have not claimed their dividends for seven consecutive yearsor more. Accordingly the Company has transferred such unpaid or unclaimed dividends andcorresponding shares up to the Dividend for the Financial Year ended 31 March 2011.

Members/claimants whose shares unclaimed dividend have been transferred to the IEPFDemat Account or the Fund as the case may be may claim the shares or apply for refund bymaking an application to the IEPF Authority in Form IEPF-5 (available onhttp://www.iepf.gov.in ) along with requisite fee as decided by the IEPF Authority fromtime to time. The Member/claimant can file only one consolidated claim in a Financial Yearas per the IEPF Rules.

The Company will be transferring the Final Dividend and corresponding shares for theFinancial Year ended 31 March 2011 on or before 19 October 2018. Members are requested toensure that they claim the dividends and shares referred above before they aretransferred to the said Fund. Due dates for Transfer of Unclaimed Dividend to IEPF areprovided in the Report on Corporate Governance.

Details of shares/shareholders in respect of which dividend has not been claimed areprovided on our website at www. supercropsafe.com The shareholders are thereforeencouraged to verify their records and claim their dividends of all the earlier sevenyears if not claimed.

CHANGE IN THE NATURE OF BUSINESS

There has been no change in the nature of the business during the financial year2017-18.

DEPOSITS

The Company has not accepted any Deposits within the meaning of section 73 and 74 ofthe Act read with the Companies (Acceptance of Deposits) Rules 2014 during the year underreview hence it is not required to comply with the requirement under the Companies(Accounts) Rules 2014.

CHANGE IN SHARE CAPITAL

During the year 2017-18 the Company has converted 300000 Convertible Warrants intoEquity Shares of the Company in the month of August 2017

DISCLOSURE REGARDING ISSUE OF EQUITY SHARES WITH DIFFERENT RIGHTS

The company has not issued any equity shares with differential voting rights during theFinancial year and it is therefore not required to make disclosures specified in Rule 4(4) of Companies (Share Capital and Debenture) Rules 2014.

DISCLOSURE REGARDING ISSUE OF SWEAT EQUITY SHARES

The company has not issued any Sweat Equity Shares during the financial year and it istherefore not required to make disclosures specified in Rule 8 (13) of Companies (ShareCapital and Debenture) Rules 2014.

DISCLOSURE REGARDING ISSUE OF EMPLOYEE STOCK OPTION

The company has not issued any shares under Employee Stock Option Scheme during thefinancial year and it is therefore not required to make disclosures specified in Rule 12(9) of Companies (Share Capital and Debenture) Rules 2014.

EXTRACT OF ANNUAL RETURN

The Extract of Annual return in form no MGT - 9 pursuant to section 92(3) of theCompanies Act 2013 and rule 12(1) of the Companies (Management and Administration) Rules2014 as on the financial year ended on March 31 2018 is annexed herewith as Annexure - Ito this report.

NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS AND AUDIT COMMITTEE

A calendar of Meetings was prepared and circulated in advance to the Directors.

During the year under review Seven Board Meetings were held on 26th May 2017 28thJuly 2017 21st August 2017 19th September 2017 03rd November 2017 21st December2017 and 12th February 2018 respectively and one Independent Directors' meeting was heldon 12th February 2018 and Four Audit Committee Meetings were convened on 26th May 201728th July 2017 03rd November 2017 and 12th February 2018 respectively. The interveninggap between the Meetings was within the period prescribed under the Companies Act 2013.

PARTICULARS OF LOAN GUARANTEES AND INVESTMENT

Particulars of loans given investments made guarantees given and securities providedalong with the purpose for which the loan or guarantee or security is proposed to beutilized by the recipient are provided in the financial statement (Please refer to Note tothe financial statement).

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

Pursuant to provision of Section 188 of the Companies Act 2013 all the related partytransactions entered into during the financial year under review were in ordinary courseof business and on an arm's length basis. There were no materially significanttransactions with related parties during the financial year which were in conflict withthe interest of the Company. Accordingly information in form AOC-2 is not annexed.

All Related Party Transactions are placed before the Audit Committee and the Board forapproval. Prior omnibus approval of the Audit Committee is obtained for the transactionswhich are of a foreseen and repetitive nature. The transactions entered into pursuant tothe omnibus approval so granted are placed before the Audit Committee and the Board ofDirectors for their review and approval on a quarterly basis.

Your attention is drawn to the Related Party disclosures set out in Note no 33 of theNotes forming of the Account.

ISO AND OTHER CERTIFICATION

The Company's manufacturing facilities at Himatpura (Bilodra) Ta. Mansa Dist:Gandhinagar continue to be certified to the latest version of ISO 9001:2015 ISO14001:2015 HACCP and GMP by leading International Certification Company. The Company isalso holding valid FSSAI and GPCB consents from Government authorities. Thesecertifications indicate our commitment in meeting in a sustainable manner Global QualityEnvironment Health and Safety Standards.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

A statement highlighting details of the conservation of energy technology absorptionand foreign exchange earnings and outgo in accordance with section 134(3)(m) of the Actread with the Companies (Accounts) Rules 2014 is annexed hereto as Annexure -II.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes and commitments affecting financial position of thecompany which have occurred between the end of financial year and date of report.

SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES

During the year under review Company does not have any subsidiary company and none ofthe companies has become or ceased to be Company's subsidiaries joint ventures orassociate companies.

REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARIESASSOCIATES AND JOINT VENTURE COMPANIES

During the year under review none of the companies have become or ceased to beCompany's subsidiaries joint ventures or associate companies therefore Report on theperformance and financial position of each of the subsidiaries associates and jointventure companies is not require to be given.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Pursuant to Sections 149 152 and other applicable provisions if any of the CompaniesAct 2013 one-third of such of the Directors as are liable to retire by rotation shallretire every year and if eligible offer themselves for re-appointment at every AGM.

The brief resume of the Directors being appointed/ reappointed the nature of theirexpertise in specific functional areas names of companies in which they have heldDirectorships Committee Memberships/ Chairmanships their shareholding etc. arefurnished in the explanatory statement to the notice of the ensuing AGM.

Pursuant to the provisions under Section 134(3)(d) of the Companies Act 2013 withrespect to statement on declaration given by Independent Directors under Section 149(6) ofthe Act the Board hereby confirms that all the Independent Directors of the Company havegiven a declaration and have confirmed that they meet the criteria of independence asprovided in the said Section 149(6).

Key Managerial Personnel

The Key Managerial Personnel (KMP) in the Company as per Section 2(51) and 203 of theCompanies Act 2013 are as follows:

Mr. Ishwarbhai Baldevdas Patel Managing Director
Mr. Ambalal Baldevdas Patel : Executive Director
Mr. Nitinkumar Ishwarbhai Patel Whole Time Director
Mr. Ishwarbhai Baldevdas Patel CEO
Mr. Nitinkumar Ishwarbhai Patel : CFO
Ms. Hiral M Patel Company Secretary

During the year under review there was no change (appointment or cessation) in theoffice of any KMP.

Declaration by Independent Director

As per the requirements of the Companies Act 2013 the company being a listed companyrequire to appoint independent Directors. Therefore requirement for obtaining Declarationfrom the Independent Directors pursuant to section 149 (6) Companies Act 2013 isapplicable to the Company.

List of the Independent directors:

1) Mr. Radhakrishna Naraparaju

2) Mr. Piyushkumar Krishnaprasad Patel

3) Ms. Kalpanaben Jigneshbhai Pandya

The Independent Directors have submitted the declaration of Independence as requiredpursuant to Section 149(7) of the Companies Act 2013 stating that they meet the criteriaof independence as provided in sub section (6) and Regulation 16 (b) of the SEBI (ListingObligation and Disclosure Requirements) Regulations 2015.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(3)(c) read with section 134(5) of theCompanies Act 2013 the Board of Directors states that:

1) in the preparation of the annual financial statements for the year ended March 312018 the applicable accounting standards have been followed along with proper explanationrelating to material departures if any;

2) such accounting policies have been selected and applied consistently and judgementand estimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at March 31 2018 and of the profit of theCompany for the year ended on that date.

3) proper and sufficient care has been taken for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 2013 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

4) the annual financial statements have been prepared on a going concern basis;

5) proper internal financial controls were in place and that the financial controlswere adequate and were operating effectively;

6) Systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.

INDUSTRIAL RELATIONS

Our employees are the most valuable assets of the Company. We encourage innovationmeritocracy and the pursuit of excellence.

The human resource development function of the Company is guided by a spirit ofcorporate team building and dedication towards strengthening the Company's systems therebyimproving efficiencies and registering growth. All personnel continue to have a healthycordial and harmonious approach in problem solving and enhancing Company value at alllevels. Despite uncertain economic conditions the enthusiasm and unstinting efforts ofthe employees have enabled the Company to maintain leadership in its business areas. Therelationship with the workmen and staff remained cordial and harmonious during the yearand the management received full cooperation from the employees.

During the year extensive training and developmental activities were undertaken bothin-house and out-bound for the employees. Various efficiency and quality improvementinitiatives including some functional and behavioural training programs were undertaken.The total number of employees as on 31st March 2018 was 84.

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5 of The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect of employeesof the Company will be provided upon request. In terms of Section 136 of the Act theReport and Accounts are being sent to the Members and others entitled thereto excludingthe information on employees' particulars which is available for inspection by the Membersat the Registered Office of the Company during business hours on working days of theCompany up to the date of the ensuing Annual General Meeting. If any Member is interestedin obtaining a copy thereof such Member may write to the Company Secretary in thisregard.

MANAGERIAL REMUNERATION

The Company believes its employees are its biggest assets and aligns its compensationand benefits towards rewarding employees in line with its Rewards policy. The Companyfocuses on being market aligned as well as differentiate basis performance to drive a highperformance culture.

The Company believes that by means of the variable pay plan the Company is able to linka portion of compensation to the individual and business performance which creates astrong positive reinforcement. It also ensures that the employees of the Company arerewarded only when the shareholders' goals are met. The Company's variable pay plantherefore links the variable pay to both - individual performance and business resultssuch as sales growth and operating profits.

The company believes in balancing the competitiveness of pay as well as sustainabilityof the associated costs for the organization. The salary increases for this year wereaimed at maintaining the pay competitiveness with market as well as performance of theCompany.

The information required pursuant to Section 197 read with Rule 5 of The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 in respect of employeesof the Company and Directors is attached herewith as Annexure - III.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE

The Company has not received any significant and material orders passed by theRegulators or Courts or Tribunals impacting the going concern status and Company'soperations in Future.

INSURANCE

The Company has taken adequate insurance to cover the risks to its people plants andmachineries buildings and other assets.

RISK MANAGEMENT POLICY

The Company has taken sufficient insurance for the properties against risks of firestrike riot and earthquake. All the Assets of the company including InventoriesBuildings and Machinery are adequately insured.

The Company has laid down a Risk Management Policy and identified threat of such eventswhich if occurs will adversely affect either/or value to shareholders ability ofCompany to achieve objectives ability to implement business strategies the manner inwhich the Company operates and reputation as "Risks". Further such Risks arecategorized in to Strategic Risks Operating Risks & Regulatory Risks. A detailedexercise is carried out to identify evaluate manage and monitoring all the three typesof risks.

ANNUAL PERFORMANCE EVALUATION

In compliance with the provisions of the Companies Act 2013 and SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 the performance evaluation wascarried out as under:

Board

In accordance with the criteria suggested by The Nomination and Remuneration Committeethe Board of Directors evaluated the performance of the Board having regard to variouscriteria such as Board composition Board processes Board dynamics etc. The IndependentDirectors at their separate meetings also evaluated the performance of the Board as awhole based on various criteria. The Board and the Independent Directors were of theunanimous view that performance of the Board of Directors as a whole was satisfactory.

Committees of the Board

The performance of the Audit Committee the Nomination and Remuneration Committee andthe Stakeholders Relationship Committee was evaluated by the Board having regard tovarious criteria such as committee composition committee processes committee dynamicsetc. The Board was of the unanimous view that all the Committees were performing theirfunctions satisfactorily and according to the mandate prescribed by the Board under theregulatory requirements including the provisions of the Act the Rules framed there underand the Listing Agreement/ SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015.

Individual Directors

1) Independent Directors: In accordance with the criteria suggested by The Nominationand Remuneration Committee the performance of each independent director was evaluated bythe entire Board of Directors (excluding the director being evaluated) on variousparameters like preparedness participation value addition focus on governance andcommunication. The Board was of the unanimous view that each independent director wasbrought his / her rich experience to the deliberations of the Board. The Board alsoappreciated the contribution made by all the independent directors in guiding themanagement in achieving higher growth and concluded that continuance of each independentdirector on the Board will be in the interest of the Company.

2) Non-Independent Directors: The performance of each of the non-independent directors(including the Chairperson) was evaluated by the Independent Directors at their separatemeeting. Further their performance was also evaluated by the Board of Directors. Thevarious criteria considered for the purpose of evaluation included transparency businessleadership people leadership focus on governance communication preparednessparticipation and value addition. The Independent Directors and the Board were of theunanimous view that each of the non independent directors was providing good business andpeople leadership.

CORPORATE SOCIAL RESPONSIBILITY

Under Section 135 of the Companies Act 2013 the provision of Corporate SocialResponsibility is not applicable to the company for the financial year 2017-18.

AUDIT COMMITTEE

The Company has constituted the audit committee as per requirement of section 177 ofthe Companies Act 2013 read with rule (6) of the Companies (Meetings of Board and itsPowers) Rules2014 and Regulation 18 of the SEBI (Listing Obligation and DisclosureRequirements) Regulations 2015 being a Listed company.

During the year under review the board has accepted all recommendations of auditcommittee and accordingly no disclosure is required to be made in respect ofnon-acceptance of any recommendation of the audit committee by the Board.

STAKEHOLDERS RELATIONSHIP COMMITTEE

The Company has constituted the Stakeholders Relationship Committee as per requirementof Section 178(5) of the Act and Regulations 20 of the Listing Regulations being a listedcompany. The Committee comprises of Ms. Kalpnaben J Pandya as the Chairperson anIndependent Director Mr. Ishwarbhai B Patel and Mr. Nitin I Patel as the other twomembers.

The Committee inter alia looks into redressing the grievances of the Security holdersof the Company viz. non-receipt of transferred shares and non- receipt of dividend amongothers. During the Financial Year 2017-2018 the Committee met for Seven times on 26thMay 2017 28th July 2017 21st August 2017 19th September 2017 03rd November 201721st December 2017 and 12th February 2018 and the same was attended by all the membersof the Committee.

VIGIL MECHANISM

As per provisions of section 177(9) of the Act read with regulation 22(1) of ListingRegulations the Company is required to establish an effective vigil mechanism fordirectors and employees to report genuine concerns. The Company has a policy forprevention detection and investigation of frauds and protection of whistleblowers("Whistleblower Policy") in place. Detailed policy for Whistle blower isavailable at www.supercropsafe.com .

NOMINATION AND REMUNERATION COMMITTEE

The company has constituted Nomination and Remuneration Committee pursuant to section178 of the Companies Act 2013 read with rule (6) of the Companies (Meetings of Board andits Powers) Rules 2014 being a listed company. The Committee comprises of all independentdirectors Ms. Kalpnaben J Pandya as the Chairperson Mr. Piyush K Patel and Mr. N. R.Krishna as the other two members.

The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for selection and appointment of Directors Senior Management and theirremuneration. There were no committee meeting conducted during the year under review.

CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION AND ANALYSIS

Your Company has put in place governance practices as prevalent globally. The CorporateGovernance Report and the Auditor's Certificate regarding compliance of conditions ofCorporate Governance are made part of the Annual Report.

ENVIRONMENTAL HEALTH SAFETY AND PROTECTION

The Company gives highest importance to Health Safety and Environment and encouragesand promotes safety awareness in true letter and spirit as an integral part of its workculture.

Process Safety Management is an integral part of all changes taking place in theprocess. Onsite emergency plans have been reviewed and updated by all divisions. Periodicmock drills are conducted at various divisions and reports indicate improved preparednessof employees.

To further strengthen the safety of overall operations and to promote a positive safetyculture and transparency your Company has introduced site specific Behavioural BasedSafety process at all its manufacturing locations and substantially invested for theimprovement of process safety.

Apart from employees the contractors and workmen are also given exhaustive training onsafety first-aid and fire-fighting. A green belt in and around the factory premises hasbeen maintained to enhance eco-friendliness.

DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION& REDRESSAL) ACT 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted apolicy against sexual harassment in line with the provisions of Sexual Harassment of Womenat Workplace (Prevention Prohibition and Redressal) Act 2013 and the rules framed thereunder. During the year no complaint with allegations of sexual harassment was received bythe Company and hence no complaints remain pending as of 31 March 2018.

STATUTORY AUDITORS

At the Annual General Meeting held on September 25 2017 M/s. Naresh J. Patel &Co. Chartered Accountants (Firm Registration No. 123227W) were appointed as statutoryauditors of the Company to hold office till the conclusion of the Annual General Meetingto be held in financial year 2021-22 (35th AGM). In terms of the first proviso to Section139 of the Companies Act 2013 the appointment of the auditors shall be placed forratification at every Annual General Meeting. Accordingly appointment of M/s Naresh J.Patel & Co. Chartered Accountants as Statutory Auditor of the Company is placed forratification by the shareholders"

The Auditor's Report for fiscal 2018 does not contain any qualification reservation oradverse remark.

AUDITORS REPORT

The observations made by the auditors in their report read with the relevant notes asgiven in the notes to the financial statements for the year ended 31st March 2018 areself-explanatory and are devoid of any reservation qualification or adverse remarks.

SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of the Companies Act

2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules2014 the Company has appointed M/s SPANJ & Associates a firm of Company Secretariesin Practice to undertake the Secretarial Audit of the Company. The Secretarial AuditReport is annexed herewith as "Annexure -IV".

COST AUDITOR

Pursuant to Section 148 of the Companies Act 2013 read with The Companies (CostRecords and Audit) Amendment Rules 2014 is not applicable to the company for the yearunder review.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has established and maintained adequate internal control framework in linewith the Internal Financial Controls ("IFC") requirement within the meaning ofthe explanation to Section 134(5)(e) of the Companies Act 2013 including financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (ICAI).

The Company has documented procedures covering all financial and operating functions.These controls have been designed to provide a reasonable assurance with regard tomaintaining of proper accounting controls monitoring of operations protecting assetsfrom unauthorised use or loses compliances with regulations and for ensuring reliabilityof financial reporting. The Company has continued its efforts to align all its processesand controls with global best practices in these areas as well.

The scope and authority of the Internal Audit (IA) function is defined in the InternalAudit Charter. To maintain its objectivity and independence the Internal Auditor placesInternal Audit reports before the Board of Directors. The Internal Auditor monitors andevaluates the efficacy and adequacy of internal control system in the Company itscompliance with operating systems accounting procedures and policies at all locations ofthe Company.

Audit Committee of the Board of Directors regularly reviews the audit planssignificant audit findings adequacy of internal controls compliance with accountingstandards as well as reason for changes in accounting policies and practices if any.Based on the report of Internal Auditor process owners undertake corrective action intheir respective areas and thereby strengthen the controls. Significant Audit observationsand corrective actions thereon are presented before the Board.

COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS

During the Financial Year your Company has complied with applicable SecretarialStandards issued by the Institute of Company Secretaries of India.

INFORMATION ON COMPANY'S SHARE PERFORMANCE

The market capitalisation of the Company has increased by 8.92 % (Rs. 117.54 Cr)against March 31 2017 (Rs.107.91 Cr). EPS as on March 31 2018 stands at Rs. 1.28 againstRs. 0.79 as on closing date of last Financial Year. The PE ration as on March 31 2018stands at 23.40 against 34.70 as on closing date of last Financial Year.

ACKNOWLEDGEMENT

Your directors place on record their gratitude to the Central Government StateGovernments and Company's Bankers for the assistance co-operation and encouragement theyextended to the company. We also thank our customers vendors dealers investors andbusiness partners for their continued support during the year which made the Company growsuccessfully. We also place on record our appreciation of the contribution made by ouremployees at all levels. Our consistent growth was made possible by their hard worksolidarity co-operation and support.

For SUPER CROP SAFE LIMITED

Date: 08/08/2018

ISHWARBHAI B. PATEL NITINKUMAR I. PATEL
Chairman & Managing Director Director
[DIN: 00206389] [DIN: 00206561]