1. Acquisition of Land on Long-Term Lease Basis
The Board approved the proposal for taking approximately 51.46 acres of land on a long-term lease basis for the business, operational and expansion requirements of the Company. The land is located in District Nandurbar, Maharashtra and will be used for agricultural operations and business expansion. The lease will have yearly renewal for up to 10 years, with effective date upon execution of definitive lease deed. This is not a related party transaction and involves no promoter interest.
2. Capitalisation of Work-in-Progress
The Board reviewed and approved the capitalisation of eligible completed Work-in-Progress into the appropriate Fixed Asset categories in accordance with the applicable provisions of the Companies Act, 2013 and relevant Accounting Standards/Indian Accounting Standards.
3. Conversion of Loans and Advances into Equity Investment in Subsidiary Company
The Board approved the conversion of Loans and Advances aggregating approximately ₹3.88 Crores extended by the Company into equity investment in its 51% owned subsidiary, Agronica Seeds Spark Private Limited. The conversion represents conversion of existing loans and advances already reflected in the books of the Company into equity investment and does not involve any fresh disbursement of funds. The approval was based on a valuation report issued by an IBBI Registered Valuer. The subsidiary will continue as a subsidiary of the Company post-transaction.
4. Related Party Transaction
As Agronica Seeds Spark Private Limited is a subsidiary of the Company, the loan conversion transaction constitutes a Related Party Transaction under the applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction has been approved by both the Audit Committee and the Board of Directors in accordance with applicable legal and regulatory requirements.
The information will be made available on the company website at www.mrcagro.com.