2.20 Provision, Contingent Liabilities and Contingent
Assets:

A provision is recognized when the company has a present
obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation
in respect of which reliable estimate can be made. If the

effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects when
appropriate the risks specific to the liability. When discounting
is used the increase in the provision due to the passage of
time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence
of one or more uncertain future events not wholly within the
control of the company or a present obligation that arises
from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate of amount cannot be made.

Contingent Liabilities and Contingent Assets are not
recognized in the financial statements.

2.21 Critical accounting estimates and judgements:

In preparing these financial statements, Management has
made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results
may differ from these estimates. Estimates and underlying

assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised prospectively.

Information about significant areas of estimation uncertainty
and judgements in applying accounting policies that have the
most significant effect on standalone financial statements
are as follows.

a) Provision for doubtful debts - Refer note no.13

b) Provision for schemes - Refer note no.30

c) Provision for returns - Refer note no.30

d) Biological assets - Refer note no.12

e) Measurement of useful life and residual values of
property, plant and equipments and useful life of
intangible assets - Refer note no.3

f) Provisions and Contigent Liabilities - Refer note.39

g) Fairvalue measurements of financial instruments
- Refer note.45

h) Retirement benefits & obligations - Refer note.48

General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general
reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the
Companies Act 2013.

Retained Earnings: Retained earnings are the profits that the Company has earned till date less any transfers to general reserve,
dividends, utilisations or other distributions paid to shareholders.

Other Comprehensive Income: The fair value change of the investments measured at fair value through other comprehensive income
recognised through Other Comprehensive Income. Upon derecognition the cumulative fair value changes on the said investments except
equity investments are reclassified to the Statement of Profit and Loss. Accumulated gain or loss on employee benefits also recognised
through other comprehensive income.

Capital Redemption Reserve: Face value of the No. of Shares cancelled through buyback is transferred to Capital Redemption Reserve.

45. Financial Instruments (Contd..)

Financial assets and liabilities measured at fair value as at Balance Sheet date:

1. The fair values of investment quoted investment in equity shares is based on the current bid price of respective investment as
at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue
further units of mutual fund and the price at which issuers will redeem such units from the investors.

Other financial assets and liabilities

Cash and cash equivalents (except for investments in mutual funds), trade receivables, investments in term deposits, other financial
assets , trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their
short-term nature.

- Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated
future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

46. Financial Risk Management

The Company’s business activities are exposed to a variety of financial risks namely liquidity risk, market risks and credit risk. The
Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly.

A. Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this management considers both normal and stressed conditions.

The Company maintained a cautious liquidity strategy with a positive cash balance throughout the year ended 31 March, 2025 and
31 March, 2024. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs.
Any short term surplus cash generated over and above the amount required for working capital management and other operational
requirements is retained as cash and cash equivalents (to the extent required) and any excess is invested in highly marketable debt
investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted
cash flows along with its carrying value as at the Balance Sheet date.

B. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

Currency Risk
Price Risk
Interest Rate Risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure
to and management of these risks are explained below.

a Currency Risk

Potential Impact of Risk

The impact of risk due to change in foreign currency value is very minimum on the company as the company's exposure to
foreign currency is very low.

As at 31 March, 2025, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital
advances) and liabilities (trade payables and capital creditors) other than in their functional currency amounted to H 287.28
Lakhs (31 March, 2024 H 535.28 Lakhs).

Management Policy

The Company is not majorly exposed to foreign currency exchange risk because of its low volume foreign currency transactions,
even though management exercises proper precautions to minute the currency risk in foreign exchange transactions. The
company deals with US Dollar and Euro for its foreign currency transactions.

The Company makes its exports against advance irrevocable LC to mitigate the risk of currency exchange due to delay in
remittances. The company does not opt for forward exchange contracts. Foreign exchange transactions are closely monitored
to reduce the risk.

The aim of the Company’s approach to management of currency risk is to leave the Company with no material residual risk.
Sensitivity to Risk

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to
approximately an additional H 14.36 Lakhs gain in the Statement of Profit and Loss (2023-24: H 26.76 Lakhs ). A 5% weakening
of the INR against these currencies would have led to an equal but opposite effect.

46. Financial Risk Management (Contd..)

b Price Risk

Potential Impact of Risk

The Company is exposed to the price risk due to its investment in debt mutual funds. The price risk arises due to uncertainties
about the future market values of these investments.

At 31st March 2025, the investments in debt mutual funds amounts to H 28,598.77 Lakhs (31st March, 2024 H 25,199.22 Lakhs).
These are exposed to price risk.

Management Policy

The Company takes all the precautions to minimise price risk arising from investments in debt mutual funds. The company is
investing mainly in debt mutual funds through leading mutual fund companies and in best mutual funds where price risk is very
low. The company examine fund performance, rating, liquidity and risk aspects before investing.

Sensitivity to Risk

A 0.5% increase in prices would have led to approximately an additional gain of H 143.00 Lakhs in the Statement of Profit and
Loss or Other Comprehensive Income (2023-24: gain of H 126.00 Lakhs). A 0.5 % decrease in prices would have led to an
equal but opposite effect.

C Interest Rate Risk

Potential Impact of Risk

The impact of interest rate risk is very minute on the company as the company does not have exposure to any interest rate
sensitive investments or securities.

The company does not have any investment in interest sensitive securities/bonds as on 31st March 2025 and 2024

Management Policy

The Company makes maximum of the investments in non interest sensitive sectors to mitigate interest rate risk.

Sensitivity to Risk

A 0.25% or 0.50% increase/decrease in interest rates will not make any difference to the company profit or loss as there are no
interest rate sensitive investments.

d Management of Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade receivables

Concentration of credit risk with respect to trade receivables is moderate due to the Company’s customer base being large
and diverse and also company receives good amount of receipts towards advances. All trade receivables are reviewed and
assessed for default on a quarterly basis based on collections and ageing.

Our historical experience of collecting receivables is that credit risk is moderate . Hence trade receivables are considered to be
a single class of financial assets.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments money market liquid
mutual funds and derivative instrument with financial institutions. The Company has set counter-parties limits based on multiple
factors including financial position, credit rating, etc.

The Company’s maximum exposure to credit risk as at 31st March, 2025 and 2024 is the carrying value of each class of financial assets.

48. Employee Benefit plans

48.1 Defined Contribution Plan:

The company has certain defined contribution plans. Contributions are made to provident fund in India for qualifying employees
at the specified percentage of salary as per regulations. The contributions are made to registered provident fund administered
by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any
constructive obligation. The expense recognized during the period towards defined contribution plan is H 725.80 Lakhs (31 March
2024 : H 665.54 Lakhs)

48.2 Compensated Absences:

The company provides for accumulation of compensated absences. These employees can carry forward portion of unutilised
compensated absences and utilise it in future period or receive cash in lieu therof as per the company's policy. The company records
a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The
total liability recorded by the company towards its obligation was H 780.23 Lakhs (31 March 2024 : H 622.39 Lakhs)

48.3 Gratuity:

The gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by way of
retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service
and paid as lump sum at exit. The plan design mitigate the risks commonly affecting the liabilities and the financial results.

a) Interest rate risk : the defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields
fall, the defined benefit obligation will tend to increase.

b) Salary inflation risk : Higher than expected increases in salary will increase the defined benefit obligation

c) Demographic risk : For example, as plan is open to new entrants an increase in membership will increase the defined benefit
obligation. Also the plan only provides benefits upon completion of a vesting criteria. Therefore if turnover rates increase then
the liability will tend to fall as fewer employees reach vesting period.

49. Share Based Payments

a) The Company implemented the Kaveri ESOP 2018 Scheme for all eligible employees pursuant to the special resolution approved
by the shareholders through postal ballot on 19th July 2018 The Kaveri ESOP 2018 Scheme covers all employees and directors
(excluding independent and promoter directors, promoter group) of the parent company and its subsidiaries (collectively, “eligible
employees”). Upon the exercise of options granted under the Kaveri ESOP 2018 Scheme, the applicable equity shares will be
transferred from the Kaveri Employees Trust (“ESOP Trust”) to the eligible employee. The ESOP Trust will acquire such equity
shares by way of secondary market acquisitions funded through loans from the Company. The Nomination and Remuneration
Committee of the Board of the parent company (the “Compensation Committee”) administers the Kaveri ESOP 2018 Scheme and
grants stock options to eligible employees, it has delegated functions and powers relating to the administration of the Kaveri ESOP
2018 Scheme to the ESOP Trust. The Compensation Committee determines which eligible employees will receive the options, the
number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for
all options issued on the date of grant. The options issued under the Kaveri ESOP 2018 Scheme vest in periods ranging between
the end of one and five years, and generally have a maximum contractual term of five years.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.

51. Operating Leases

The Company’s significant leasing arrangements are in respect of operating leases for lands and premises (Agricultural lands, office,
stores, godown etc.). These leasing arrangements which are cancellable range between 11 months and 10 years generally, or longer,
and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in
the Statement of Profit and Loss in respect of short term and low value leases where company has availed exemption under IndAS 116.

52. Contract Liabilities

Contract liabilities resulting from advance payments by customers for delivery of goods and schemes/discounts are predominantly
recognized as sales within one year. The aggregate amount of transaction price allocated to the performance obligations that are
unsatisfied as on 31 March 2025 is H 42,185.79 lakhs (31 March 2024 is H 36,570.20 lakhs) resulting from advance payments and shown
under other current liabilities.

53. Note on Reconciliation of Cash flow activities

Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 "Statement of Cash Flows": (contd.)
Amounts reported in statements of cash flows under financing activities

54. Segment Information

a) The Company has only one business segment i.e, Sale of Seeds and there are no other reportable segments under Ind AS 108
"Operating Segments".

b) Geographical information

The Company operates in single principal geographical area i.e., India. Though the Company has operations across various
geographies within India, the same are considered as a single operating segment considering the following factors

- These operating segments have similar long term gross profit margins.

- The nature of the products and production processes are similar and the methods used to distribute the products to the
customers are the same.

c) In view of the above mentioned classification of business and geographical segments the particulars relating to Segment revenue
and results, Segment assets and liabilities, Other segment information, revenue from major products and services, geographical
information are not required to be furnished.

55. Additional Regulatory and Other Information

a) The Company has not revalued its Property, Plant and Equipment (including the Right of use assets) and intangible assets during
the year under review.

b) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPS and the related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person that are repayable on demand; or without
specifying any terms or period of repayment

c) No Proceeding has been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988 and the
rules made thereunder

d) The Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender.

e) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the

Companies Act, 1956.

f) The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies
(Restriction on number of layers) Rules 2017.

g) During the year, no scheme of arrangements has been approved by the competent authority in terms of Sec.230 to 237 of the Act,
in which the company is a party.

h) A). The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources

or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding (whether
recorded in writing or otherwise) that the intermediary shall (i) directly or Indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries); or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

B). The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii)
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

i) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
tax act, 1961 that has not been recorded in the books of account.

j) The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

As per our report of even date attached

for M. Bhaskara Rao & Co. For and on behalf of the Board

Chartered Accountants
Firm Registration No.000459S

Sd/- Sd/- Sd/-

K.S.Mahidhar K.V.Chalapathi Reddy G.V.Bhaskar Rao

Partner Chief Financial Officer Managing Director

Membership No. 220881 DIN: 00892232

Sd/- Sd/-

V.Sreelatha G.Vanaja Devi

Place: Secunderabad Company Secretary Wholetime Director

Date: 19 May 2025 DIN: 00328947