Management Report 2020
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SLC
Agrícola
Management Report 2020
26. Subvenções governamentais
The Governments of the States of Mato Grosso do Sul, through Decree No.
9716/99, of Mato Grosso, through Law 6883/97 and of Goiás, through State Law
No. 13.506/99, granted incentives for presumed ICMS credits in operations with
Cotton lint, with a reduction in the value of ICMS to be collected from 70% to 75%
through the adhesion of Fazenda Planalto to the PDAGRO program (Mato Grosso
do Sul), of Paiaguás and Fazenda Planorte to PROALMAT (Mato Grosso) and of
Fazenda Pamplona to the PROALGO program (Goiás). The State of Mato Grosso
granted a presumed 75% ICMS credit on sales of cotton lint, cotton seed and
fibrilla. By opting for these programs, the company is prevented from appropriat-
ing credits for the acquisition of raw materials, inputs and fixed assets. The pre-
sumed credits are recorded in the statement of income under the item sales taxes
against the item recoverable taxes.
As requirements for participation in these incentive programs, the Company must
make the option with the State Secretariats, waive the ICMS credits to which it
would be entitled for the acquisition of inputs, raw materials and fixed assets,
provide ancillary information regarding this tax waiver and collect PDAgro to the
State of Mato Grosso do Sul
The presumed credits are recorded in the income statement under the item sales
taxes, against the item taxes payable. In 2020, R$ 171 of presumed ICMS credit
was recognized in the parent company and in the consolidated. This amount was
recognized in a tax incentive reserve in shareholders' equity.
27. Profit Share Program
In conformity with Collective Work Agreements entered into with employee's cate-
gories, the Company and its subsidiaries have a profit-sharing plan for all its em-
ployees.
The amount to be distributed as profit sharing is calculated based on the Company's
consolidated net income; part of the amount is freely distributed to beneficiaries,
and the other part is linked to goals established for each production unit.
Interest is calculated by applying 9% to parent company net income. Of this amount,
60% will be distributed to beneficiaries and 40% will depend on compliance with
goals established for each production unit. Goal value is limited to 2 nominal sala-
ries for each employee that is beneficiary of the plan.
The value provision in the income for the year in the administrative expenses' group
is as follows:
Profit sharing
Parent Company
12/31/2020
Consolidated
12/31/2019
12/31/2020
12/31/2019
41,354
24,503
46,701
27,684
28. Share-based payments
a) Stock option plan
In the Extraordinary Shareholders' Meeting held on May 23, 2007, the Company's
shareholders approved a stock option plan to take effect on June 15, 2007, for the
Company's officers and managers. The plan is managed by the Management Com-
mittee, which was created by the Board of Directors on May 23, 2007.
The stock option plan is limited to a maximum number of options that results in the
dilution of 3.75% of the Company's capital stock on the creation date of each Annual
Program. Dilution corresponds to the percentage represented by the number of
shares underlying the options divided by the total number of shares issued by the
Company.
The beneficiaries of the Stock Option Plan may exercise their options within 5 years
as from the respective grant date. The vesting period is up to three years, with 30%
vested as from the first anniversary, 60% as from second anniversary and 100% as
from the third anniversary. The Company has 30 days to issue the shares as from
the delivery date of the Declaration of Exercise of the Stock Option Plan.
In meetings of the Board of Directors the following grants were approved:
Grant date
Number of shares granted
11/11/2015
11/08/2016
11/08/2017
11/13/2018
11/13/2019
11/06/2020
Plan¹
2015
2016
2017
2018
2019
2020
1. The 2015 to 2018 plans have their number of shares granted before the capital split.
393,000
363,500
373,000
195,893
613,750
637,450
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