R PROVISION AND CONTINGENT LIABILITIES
Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow ofresources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount ofthe obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at theBalance sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, theexistence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not whollywithin the control of the company or a present obligation that arises from past events where it is either not probable that anoutflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
S CASH AND CASH EQUIVALENTS
In the Statement of Cash Flow, cash and cash equivalents includes cash in hand, demand and short term deposits with banks, othershort-term highly liquid investments with original maturities of three months or less.
T FINANCIAL ASSETS AT AMORTISED COST
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objectiveis to hold these assets in order to collect contractual cash flows and contractual terms of the financial asset give rise on specifieddates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
U FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within abusiness whose objective is achieved by both collecting contractual cash flows and selling financial assets and a contractual termsof the financial assets give rise on the specified dates to cash flows that are solely payment of the principal and interest on theprincipal amount outstanding._
V FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value throughother comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of assets andliabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss.
W FINANCIAL LIABILITIES
Financial liabilities are measured at amortised cost using the effective interest method, if tenure repayment of such liabilityexceeds one year.
X EQUITY INSTRUMENTS
An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities.The Company recognises equity instruments at proceeds received net off direct issue cost.
Y RECLASSIFICATION OF FINANCIAL ASSETS
The Company determines classification of the financial assets and liabilities on initial recognitions. After initial recognition, noreclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debtinstruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to thebusiness model are expected to be infrequent. The Company's senior management determines change in the business model as aresult of external or internal changes which are significant to the company's operations. Such changes are evident to externalparties. A change in the business model occurs when a company either begins or ceases to perform an activity that is significant toits operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassificationdate which is the first day of the immediately next reporting period following the change in business model. The Company does notrestate any previously recognized gains, losses (including impairment gains and losses) or interest.
Z OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legalright to offset the recognized amounts and there is on intention to settle on a net basis, to realize the assets and settle the liabilitiessimultaneously.
Note No. 32 FAIR VALUE MEASUREMENT
The management assessed that the fair values of short term financial assets and liabilities significantly approximate their carryingamounts largely due to the short term maturities of these instruments. The fair value of financial assets and liabilities is included atthe amount at which the instrument could be exchanged in a current transaction among willing parties, other than in a forced orliquidation sale.
The Company determines fair values of financial assets and financial liabilities by discounting contractual cash inflows/ outflowsusing prevailing interest rates of financial instruments with similar terms. The fair value of investment is determined using quoted netassets value from the fund. Further, the subsequent measurement of all finance assets and liabilities (other than investment inmutual funds) is at amortized cost, using the effective interest method.
Discount rates used in determining fair value
The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of theborrower which in case of financial liabilities is the weighted average cost of borrowing of the Company and in case of financial assetsis the average market rate of similar credits rated instrument.
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant dataavailable. In addition, the Company internally reviews valuation, including independent price validation for certain instruments.
Fair value hierarchy
All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy described asfollows, based on the lowest level input that is significant to the fair value measurement as a whole.
Level-1 : Quoted (unadjusted) price is active market for identical assets or liabilities
Level-2 : Valuation technique for which the lowest level input that has a significant effect on the fair value measurement areobserved, either directly or indirectly.
Level-3 : Valuation technique for which the lowest level input has a significant effect on the fair value measurement is not based onobservation market data.
Note No. 33 FINANCIAL INSTRUMENTS AND RISK REVIEW
i) Capital Management
The Board policy is to maintain a strong capital base so as to maintain inventory, creditors and market confidence and to futuredevelopment of the business. The Board of Directors monitors return on capital employed.
The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such asdebt-to-equity ratio and net borrowings to- equity ratio on a monthly basis and implements capital structure improvement planwhen necessary.
The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt andtotal equity are based on the amounts stated in the financial statements.
ii) Credit Risk
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to contractual terms orobligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well asconcentration of risks. Credit risk is controlled by analysing credit limit and creditworthiness of customers on a continuous basis towhom the credit has been granted.
Financial instruments that are subject to concentration of credit risk principally consists of trade receivable investments, derivativefinancial instruments and other financial assets. None of the financial instruments of the Company results in material concentrationof credit risk.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is as under,being the total of the carrying amount of balances with trade receivables and advances for seed production.
Trade receivables
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financialstatement whether a financial asset or group of financial assets is impaired. The Company recognizes lifetime expected losses for allcontract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expectedcredit losses are measured at an amount equal to 12 months expected credit losses or at an amount equal to the life time expectedcredit losses, if the credit risk on the financial asset has increased significantly since initial recognition.
Before accepting any new customer, the Company uses an external/internal credit scoring system to access potential customer'scredit quality and defines credit limits by customer. Limits and scoring attributed to customer are reviewed yearly basis
iii) Liquidity Risk
a) Liquidity risk management
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is tomaintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk bymaintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actualcash flows, and by matching the maturity profiles of financial assets and liabilities.
b) Maturities of financial liabilities
The following table details the remaining contractual maturities for its financial liabilities with agreed repayment period. Theamount disclosed in the table has been drawn up based on the undiscounted cash flow of financial liabilities based on the earliestdate on which the Company can be required to pay. The table includes both interest and principal cash flows.
Note No. 44 In the opinion of the Board, Property, Plant and Equipments have been stated at cost, which is at least equal to or lessthan the realizable value if sold in the ordinary course of business. Consequently, the management is of the opinion that there is noimpairment of assets.
Note No. 45 I) The company is engaged in agricultural activities of production of seeds on lease hold land situated at various part ofIndia.
ii) The company has entered into agreements with various farmers/growers for cultivation and production of agricultural produce inview of the fact that the company itself is unable to carry on such activities which are spread over various parts of India. The companyhas compensated the production expenses (Refer Note No .25) based upon the agreements entered into with the farmers/ growers.
NOTE NO. 63.UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:
The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources orkind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whetherrecorded 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 thecompany (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
NOTE NO.64. UNDISCLOSED INCOME
There is no case of search or survey of any other cases related to income surrendered or disclosed in any tax assessments underthe Income Tax Act, 1961.
Note No. 65. The company has not invested in Crypto Currency or Virtual Currency, hence related details are not provided
Jeevanlata Kagliwal Satish Kagliwal Amol Gupta Dhiraj Rathi
Director Managing Director Chief Financial Officer Company Secretary
DIN Na: 02057459 DIN No.: 00119601
Place: Chhatrapati Sambhajinagar
Date: 29-04-2025