We have audited the accompanying Balance Sheet of Ruchi Agri Private Limited Company

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Abraham Chartered Certified Accountants Teshome & Co B Authorized Auditor INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF RUCHI AGRI PRIVATE LIMITED COMPANY We have audited the accompanying

1 Abraham Chartered Certified Accountants Teshome & Co B Authorized Auditor INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF RUCHI AGRI PRIVATE LIMITED COMPANY We have audited the accompanying Balance Sheet of Ruchi Agri Private Limited Company as of 31 st March, 2016 and related Profit and Loss Account for the year then ended. 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. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly the financial position of Ruchi Agri Private Limited Company as of 31 st March, 2016 and related profit and loss account for the Addis Ababa 11th April, 2016

2 BALANCE SHEET AS AT MARCH 31,2016. Particulars I. EQUITY AND LIABILITIES Note No. (Figures in Ethiopian Birr' ) Figures as at the Figures as at the end of current end of previous reporting period reporting period from to from to (1) Shareholders' funds (a) Share capital 4 131,229, ,742,000 (b) Reserves and surplus 5 (134,342,958' (107, (3,113,958) 18,835,922 (2) Share application money pending allotment 4 4,992, ,316 4,992,638 1,110,316 (3) Non-current liabilities (a) tone-term borrowinqs 6 67,478,714 67,478,714 (b) Lonq-term provisions 7 10,545,000 11, ,023,714 78,578,714 (4) Current liabilities (a) Trade pavables 8 25,987 25,535 (b) Other current liabilities 9 9,214,755 2,052,523 (c) Short Term Provisions 10 10, TOTAL 89,153, ,414 II. ASSETS (1) Non-current assets (a) Fixed assets 11 (i) Tanqible assets 59,204,098 67,999,523 (iii) Capital work-ln-proqress 59,204,098 67,999,523 (b) Other non-current assets ,495 17,014,079 73,787,593 85,013,602 (2) Current assets (a) Inventories 13 1,133,291 1,361,849 (b) Cash and cash equivalents , ,790 (c) Short-term loans and advances 15 3,484,337 3,448,635 (d) Other current assets 16 9,877,350 9,877,539 15,366,102 15,600,812 TOTAL 89,153, ,614,414 2

3 INCOME STATEMENT FOR THE YEAR ENDED AS AT MARCH 31,2016 (Figures in Ethiopian Birr' ) Particulars Note Figures as at the Figures as at the No. end of current end of Previous reporting period reporting period from to from to REVENUE I. Revenue from operations ,141 1,028,245 II. Other income III. Total Revenue ( I + II ) 283,141 1,028,245 IV. EXPENSES Cost of Sales 18 2,135,709 2,475,056 (Increase)/Decrease in inventories of finished goods 19 (47,246) 861,441 Employee benefits expenses 20 1,659,554 2,336,957 Finance costs 21 7,184,287 5,713,943 Other Expenses 22 4,561,708 5,835,192 Depreciation, amortization and impairment expenses 11 8,795,425 10,472,641 Deferred Expenditure Written off 12 2,430,584 2,430,584 Total expenses 26,720,022 30,125,814 V. Profit (Loss) before exceptional and extraordinary items and tax (26,436,881) (29,097,570) (III - IV) VI. Exceptional items VII. Profit (Loss) before extraordinary items and tax (V - VI ) (26,436,881) (29,097,570) VIII. Extraordinary Items IX. Profit (Loss) before tax (VII - VIII) (26,436,881) (29,097,570) (1) Current tax (2) Deferred tax (3) Tax for earlier years X. Tax expense: XI. Profit (Loss) for the period (IX - X ) (26,436,881 ( ) XII Earning per equity share: (1) Basic (2) Diluted (203.62) (229.58) (203.62) (229.58) See accompanying notes to the financial statements 3

4 UCHI AGRI PRIVATE LIMITED COMPANY ~OTES TO THE FINANCIAL STATMENTS OR THE YEAR ENDED MARCH 31, 2016 The Company [ Principal Trade Registration No -EIA -PC 01/3349/09 & Investment Permit No - EIA-IP 18307/09 issued pursuant to the Investment Proclamation No 280/2002] is a Private Limited Company having primary business objectives include. To engage in Soya bean & maize farming, to engage in palm tree plantation & processing, to establish palm tree nurseries and development, to engage in cotton plantation and manufacturing textiles, to engage in farming of different types of crops, coffee tree, tea, sugar and cocoa plantation, to engage in different types of agro -industries and agro- processing, and to engage in Manufacturing and processing of different types of containers, packing materials, metal including tin, alloy, glass, HOPE, LOPE, plastic, hard board, car board from any other material or synthetic or not. substance whether '2 SIGNIFICANT ACCOUNTING POLICIES (i) FIXED ASSETS: Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost of fixed assets includes taxes, duties, freight and other incidental expenses related to acquisition and installation (ii) DEPRECIATION AND AMORTISATION: Depreciation is provided on all assets of company on reducing balance basis,except depreciation on Building which is on Straight line basis at 5%, at the rates prescribed in proclamation 286/2002 which is as follows: Motor Vehicles: 20%, Office Furniture & equipment, Container: 20%, Computer & software: 25% (iii) INVENTORIES: The cost of inventories is arrived at on lower of cost or net realizable value. (iv) RETIREMENT BENEFIT Defined Contribution Plan - Contribution to pension fund are accrued in accordance with applicable statute & deposited with appropriate authorities. (v) FOREIGN EXCHANGE TRANSACTIONS: Transactions in foreign currency are accounted at the exchange spot rate prevailing on the date of the transaction. The difference on account of fluctuation in the rate of exchange as recognized in the nroflt and loss account (vi) BORROWING COSTS Borrowing cost attributable to acquisition,construction of qualifying assets are capitalized. (vii) REVENUE RECOGNITION: The Income & Expenditure are recognized on accrual basis.

5 KUCHI AGRI PRIVATE LIMITED COMPANY ~OTES TO THE FINANCIAL STATMENTS OR THE YEAR ENDED MARCH 31, (viii) PROVISIONS 8tCONTINGENT LIABILITIES A provision is made based on a reliable estimate when it is probable that an outflow of resources will be required to settle an obligation and in respect of which a reliable estimate can be made. Provision is not discounted and is determined based on best estimate required to settle the obliaation at the vear end date. (ix) DEFERRED EXPENDITURE (PRE-OPERATIONAL EXPENSES) According to International Accounting Standards (IAS38), expenditure at the Project stage that are not specifically attributed to either of the physical assets shall be charged to the income statements. Such expenses will therefore be transferred to the income statement from the first year of operation over ten year in line with Income tax Proclamation 286/2002. (x) LAND LEASE RENTAL Ministry of Agriculture and Rural Development (MORD) of Federal Democratic Republic of Ethiopia is allotted land on lease for the period of 25 years measuring hectares In Apr 2010, located in Gambella Regional State, Agnuwa Zones, Goge District Puchal, Pugnido and Teta Kebeles, for soyabean and other crops farming and related activities on rental of ETB 111/ hi'!vpi'!rlv. NOTES ON ACCOUNTS: Notes 1 to 21 form part of accounts for the year ending on March 31, (II) SEGMENT REPORTING :- The cultivation of soya been and maize is considered as a single segment thus the disclosure requirement of segment reporting are Not applicable. (III) EARNING PER SHARE : to to Nominal Value per Equity Share ( Birr) Profifloss after Tax (Birr) (26,436,881) (29,097,570) Weighted Average No of Equity 129,832 Share 126,742 Basic & Diluted Earnings Per Share (203.62) (Birr) (229.58), IV Disclosure of transaction with related partied - Related parties have been identified on the basis of representation made by the management and information available with the company. Period to to Nature of transactions Ruchi Ethiopia Holdlnq Ltd Ruchi Ethiopia Holdlnq Ltd Equity Share Allotted NIL Share application money 8,369,005 1,110,316 received Note- A. Ruchi Ethiopia Holding Ltd- Holding Company.

6 NOTES TO THE FINANCIAL STATMENTS FOR THE YEAR ENDED MARCH 31, 2016 Note-4 A B C Share Capital Particulars (Figures in Birr' ) Opening Balance Additions during the Reductions Closing Balance as on April 1, 2015 year during the year as on March 31 r 2016 Authorized i) Equity Shares 131,229 (Previous Quarter 126,742) 126,742,000 4,487, ,229,000 face value of 1000/- each 126,742,000 4,487, ,229,000 Issued, Subscribed and paid-up i) Equity Shares 131,229 (Previous Quarter 126,742) 126,742,000 4,487, ,229,000 face value of 1000/- each fully paid-up 126,742,000 4,487, ,229,000 Share Application Money Share Application Money 1,110,316 8,369,322 4,487,000 4,992,638 1,110,316 8,369,322 4,487,000 4,992, (a) From the above shares, the following shareholder hold more than 5 % of Shares ;- S.No Name of shareholder No of Shares held % as to total Equity EQUITY SHARES A Ruchi Ethiopia Holdinas Pic Note-5. Reserve and Surplus Opening Balance Additions during the Reductions Closing Balance as on April 1, 2015 year during the year as on March 31, Particulars 2016 Profit and LossAccount (107906,078 ( ' - ( ) (107,906,078) (26,436,881) - (134,342,958) to to Note-6. Long -Term Borrowings Secured Term Loans from Bank; - From Development Bank of Ethiopia 67,478, The Development Banks Of Ethiopia agreed to lend an amount of Birr 410,070,365/- for financing the project, secured by first degree mortgage up on the entire assets and property of the project. As per the terms of loan agreement, repayment of loan was to commence in Apr 14 but rephasing & restructuring proposal has been submitted to the bank and requested to postpone repayment schedule and proposal is under consideration of DBE. Note-7. Long Term Provisions Provisions For Lease Rent --:-~1 0~,5~4~5~,0:::,00o:-l~-_1~1:L:' 1~0:.:::.0,t..:::0~00:: ,545, ,100,000. Note-8. Trade payables Other Liabilities ==2:::5~,9:::,87:_1-----=2;::.5,t..:::5~35:: , ,535 Note-9. Other current liabilities a Pension Fund payable b Staff Credit Balance c Other liabilities d Interest & commitment Charges payable Note-l0. Short Term Provisions Taxations: a Withholding tax payable b Payroll tax payable 1,125 3,276 38,372 44,844 51,302 64, , ,868 1,607 ~ \\ , n 6 J Qo r,,'

7 NOTES TO THE FINANCIAL STATMENTS FOR THE YEAR ENDED MARCH 31, 2016 Note-ll Fixed Assets GROSS BLOCK DEPRECIATION NET BLOCK As on As on PARTICULARS Additions Deductions Upto For the Year Adjustments As on As on As on (i) TANGIBLEASSETS Buildings 7,315, ,315,828 1,115, , ,481,737 5,834,091 6,199,883 Land Development 33,706, ,706,101 5,613,547 1,685, ,298,852 26,407,249 28,092,554 Plant & Machinery 61,094, ,094,990 31,526,943 5,913, ,440,553 23,654,437 29,568,047 Furniture & Fixtures 398, , ,573 30, , , ,721 Vehicles 8,516, ,516,842 4,819, , ,558,648 2,958,194 3,697,742 Office Equipments 703, , ,520 60, , , ,577 Total 111,735, ,735,152 43,735,629 8,795, ,531,054 59,204,098 67,999,523 (ii) INTANGIBLEASSETS (Figures in Birr') Trade Marks Computer Software Total (iii)capitalworkin PROGRESS Total Total (i+ii+iii) 111,735, ,735,152 43,735,629 8,795,425-52,531,054 59,204,098 67,999,523 7

8 NOTES TO THE FINANCIAL STATMENTS FOR THE YEAR ENDED MARCH 31, 2016 Note Other non-current assets Deferred Expenditures Less : Amortization of Deferred Expenditure to (Figures in Birr') to ,014,079 19,444,663 2,430,584 2,430,584 14,583,495 17,014,079 Note-13. Inventories (As valued and certified by the Management) Stock-in-trade (At lower of cost and net realizable value except realizable by-products which are valued at net realizable value) a) Raw Materials: Seeds Chemical Fertilizer Fuel and Lubricants b) Finished Product : Soya bean Maize Cotton Groundut Note-14. Cash and cash equivalents A Bank Balances with Scheduled Banks In Current Accounts B Cash in hand 5, ,875 1,294, ,580 66,899 1,086,045 1,361,849 14,246-27,000 6,000 47,246-1,133,291 1,361, , , ,872 97, , ,789 Note-15. Short-term loans and advances A Advance for Capital Expenditure B Other Advances recoverable in cash or in kind Secured,considered good Unsecured,considered good Considered doubtful Less: Provision for doubtful advances C Dues from officers. D Balance with Excise and Custom authorities Note-16. Other current assets V.A.T. Receivable 2,607,944 2,607, , ,679 3,484,337 3,441,623 3,484,337 3,441,623 3,484,337 3,441,623-7,012 3,484,337 3,448,635 9,877,351 9,877,540 9,877,540

9 NOTES TO THE FINANCIAL STATMENTS FOR THE YEAR ENDED MARCH 31, 2016 Note-17.Revenue from operations a Sale of Produce to (Figures in Birr') to Total 283,141 1,028,245 Note-18.Crop cultivation expenses a. Farm Material Consumed Opening Stock Add: Purchase Less: Closing Stock Farm Material Consumed b. Farm Expenses 1,294,950 2,023, , ,487 1,820,935 2,130, ,465 1,294, , c. Fuel and lubricants Opening Stock Add: Purchase Less: Closing Stock Fuel Consumed Total ( A+B+C) 66, , ,344 1,010,697 1,057,244 1,316, , ,664 1,249,440 2,135,709 2,475,056 Note-19. Changes in inventories of finished goods Inventories at the beginning of the year: Finished goods Inventories at the end of the year: Finished goods - 861,441 47,246 - Net (increase) I decrease (47,246) 861,441 Note-20. Employee benefits expense Salary, Wages and Bonus Contribution to Provident and Other Funds Workmen & Staff Welfare expenses Note-21. Finance costs Interest - - On Fixed loans - Working Capital 1,198,785 1,791,211 16,191 24, ,960 1,659,554 2,336,957 5,529,926 4,059,582 1,654,361 1,654,361 7,184,287 5,713,943

10 NOTES TO THE FINANCIAL STATMENTS FOR THE YEAR ENDED AS AT MARCH 31, 2016 Note-22. Other Expenses Transport cost Stationery and printing Communication Electricity and Water Rent-Lease Land Repairs - Plant & Machinery Insurance Rent Travelling & Conveyance Legal & Professional Charges Fees & Subscriptions Loading & Unloading Warehousing & Demurrage Miscellaneous expenses Social Welfare Activity Bank Commission & Charges Advertisement I to (Figures in Birr') to ,583 26,430 12,498 18,227 53,902 71,809 2,437 7,660 2,775,000 2,775, , , , , , , , , , , ,997 27,417 1,768 6, ,073 50,704 10,600 34,304 3,288 4,148-1,526 4,561,708 5,835,192 Note-23. GOING CONCERN The financial statements have been prepared on a going concern basis assuming that the Company will continue in operation for the forceable future. However, the Company's accumulated loss exceeds three quarter of its paid up capital: Article 543 of the Commercial Code of Ethiopia 1960 requires that an extraordinary general meeting shall be called to consider voluntary dissolution or the continuation of the Company.

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