Rizobacter Argentina S.A. — Interim / Quarterly Report 2021

May 12, 2021

(Registration Number 2015 / 308733 / 07) Management Statements for the 9 month period ended 31 March 2021

Compiled Financial Statements

in compliance with Companies Act 71 of 2008 Compiled by: Chanette Haasbroek CA(SA)

(Registration Number 2015 / 308733 / 07) Management Statements for the 9 month period ended 31 March 2021

Index

The reports and statements set out below comprise the financial statements presented to the shareholders:

General Information	1
Report of the Compiler	2
Statement of Financial Position	3
Statement of Comprehensive Income	4
Statement of Changes in Equity	5
Statement of Cash Flows	6
Supplementary information: Detailed Income Statement	7

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

General Information

Country of Incorporation and Domicile	South Africa
Nature of Business and Principal Activities	Agriculture
Directors	AG Lehmann PE Mac Mullen
Registered Office Business Address	510 Makou Street Monument Park x 2 Pretoria Gauteng 0181 510 Makou Street Monument Park x 2 Pretoria Gauteng 0181
Bankers	The Standard Bank of South Africa Limited
Compiler	Chanette Haasbroek CA(SA) 494 Road A Rietvalleirand x 32 Pretoria Gauteng 0042

FIHh,ISE fUIUREIIISE

Report of the Compiler

To the Directors of Rirobader South Africa (Ptyl ttd

I have compiled the accompanying management statements of Rizobacter South Africa {Pty) Ltd based on information you have provided. These management statements comprise the statement of financial position of Rizobacter South Africa (Pty) Ltd as at 31 March 2021, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the 9 month period then ended, a summary of significant accounting policies and other explanatory information.

I performed this compilation engagement in accordance with International Standard on Related Services 4410 (Revised), Compilation Engagements.

I have applied my expenise in accounting and financial reporting to assist you in the preparation and presentation of these management statements in accordance with the lnternational Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act of South Africa. I have complied with relevant ethical requirements, including principles of integrity, objedivity, professional competence and due care.

These management statements and the accuracy and completeness of the information used to compile them are your responsibility.

Since a compilation engagement is not an assurance engagement, I am not required to verify the accuracy or completeness of the information you provided to me to compile these management statements. Accordingly, I do not express an audit opinion or a review conclusion on whether these management statements are prepared in accordance with the lnternational Financial Reporting Standard for Small and Medium-sized Entities and the requirements ofthe Companies Act of South Africa.

Chartered Accountant (SAl 0042

7 Aptil202L

494 Road A Rietvall€irand x 32 Pretoria Gautent

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

Statement of Financial Position

Figures in R	31 March 2021	30 June 2020
Assets
Non-Current Assets
Property, plant and equipment	6,306	10,402
Loan to shareholder	8,334	8,334
	14,640	18,736
Current Assets
Trade and other receivables	131,052	105,990
Cash and cash equivalents	498,357	212,689
	629,409	318,679
Total Assets	644,049	337,415
Equity and Liabilities
Equity
Issued capital	686,683	686,683
Accumulated loss	(248,850)	(372,309)
	437,833	314,374
Current Liabilities
Trade and other payables	206,216	23,041
Total Equity and Liabilities	644,049	337,415

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

Statement of Comprehensive Income	9 months
Figures in R	31 March 2021	30 June 2020
Revenue	1,305,468	482,917
Cost of sales	(512,355)	-
Gross profit	793,113	482,917
Other income	-	1,075
Operating costs	(670,765)	(843,481)
Operating profit / (loss)	122,348	(359,489)
Finance income	1,111	-
Finance costs	-	(7,059)
Profit / (loss) for the year	123,459	(366,548)

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

Statement of Changes in Equity

		Accumulated
Figures in R	Share capital	loss	Total
Balance at 1 July 2019	120,000	(5,761)	114,239
Total comprehensive income for the
year
Loss for the year		(366,548)	(366,548)
Total comprehensive income for the
year	-	(366,548)	(366,548)
Issue of share capital	566,683		566,683
Balance at 30 June 2020	686,683	(372,309)	314,374
Balance at 1 July 2020	686,683	(372,309)	314,374
Total comprehensive income for the
year
Profit for the year		123,459	123,459
Total comprehensive income for the
year	-	123,459	123,459
Balance at 31 March 2021	686,683	(248,850)	437,833

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

Statement of Cash Flows	9 months
Figures in R	31 March 2021	30 June 2020
Cash flows from / (used in) operating activities
Profit/(loss) for the year	123,459	(366,548)
Adjustments for:
Finance costs	-	7,059
Depreciation of property, plant and equipment	4,096	89,437
Investment income	(1,111)	-
Operating cash flow before working capital changes	126,444	(270,052)
Working capital changes
(Increase)/decrease in trade and other receivables	(25,062)	442,715
Increase in short term loans	-	(511,547)
Increase/(decrease) in trade and other payables	183,175	(16,673)
Net cash flows from / (used in) operations	284,557	(355,557)
Investment income	1,111	-
Finance costs	-	(7,059)
Net cash flows from / (used in) operating activities	285,668	(362,616)
Cash flows from financing activities
Capital issued	-	566,683
Shareholder's loan repaid	-	(28,334)
Net cash flows from financing activities	-	538,349
Net increase in cash and cash equivalents	285,668	175,733
Cash and cash equivalents at beginning of the year	212,689	36,956
Cash and cash equivalents at end of the year	498,357	212,689

(Registration Number 2015 / 308733 / 07)

Management Statements for the 9 month period ended 31 March 2021

Detailed Income Statement	9 months
Figures in R	31 March 2021	30 June 2020
Gross Revenue
Commission received	765,068	482,917
Registration trials income	540,400	-
	1,305,468	482,917
Cost of Sales
Purchases	512,355	-
	512,355	-
Gross Profit	793,113	482,917
Other Income
Investment income	1,111	-
Profit on foreign exchange	-	1,075
	1,111	1,075
	794,224	483,992
Expenditure
Accounting fees	50,000	57,975
Bank charges	3,025	3,332
Compiler's remuneration	9,000	8,500
Computer expenses	3,522	3,268
Consulting fees	288,723	52,474
Depreciation - Tangible assets	4,096	89,437
Electricity and water	10,822	17,015
Field and Greenhouse trials	2,790	393,534
Finance costs	-	7,059
Insurance	11,822	28,050
Lease rental on operating lease	79,825	106,485
Legal expense	-	1,891
Logistics: Samples and others	(683)	56,697
Loss on foreign exchange	5,345	-
Marketing	-	4,348
Motor vehicle expense	1,693	2,011
Recruitment fees	180,000	-
SABO Membership fees	-	5,000
Secretarial fees	150	100
Telephone and internet	11,410	13,364
Travel - overseas	9,225	-
	670,765	850,540
Profit / (loss) for the year	123,459	(366,548)