Notes to Accounts of Agri-Tech (India) Ltd.

Mar 31, 2024

P 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 of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance 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, 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 the amount cannot be made.

Q CASH AND CASH EQUIVALENTS

In the Statement of Cash Flows, cash and cash equivalents includes cash on hand, demand and short term deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

R FINANCIAL ASSETS AT AMORTISED COST

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

S 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 a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and a contractual terms of the financial assets give rise on the specified dates to cash flows that are solely payment of the principal and interest on the principal amount outstanding.

T 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 through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of assets and liabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss.

U FINANCIAL LIABILITIES

Financial liabilities are measured at amortised cost using the effective interest method.

V 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.

W RECLASSIFICATION OF FINANCIAL ASSETS

The Company determines classification of the financial assets and liabilities on initial recognitions. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the company''s operations. Such changes are evident to external parties. A change in the business model occurs when a company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains and losses) or interest.

X 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 legal right to offset the recognized amounts and there is on intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

24 Fair Value Measurement

The management assessed that the fair values of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction among willing parties, other than in a forced or liquidation sale

The Company determines fair values of long term financial assets and financial liabilities by discounting contractual cash inflows/ outflows using prevailing interest rates of financial instruments with similar terms. The fair value of investment is determined using quoted net assets value from the fund. Further, the subsequent measurement of all finance assets and liabilities (other than investment in mutual 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 the borrower which in case of financial liabilities is the weighted average cost of borrowing of the Company and in case of financial assets is 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 data available. 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 as follows, 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 are observed, 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 on observation market data.

25 Financial Instruments and Risk Review

i) Capital Management

The Company''s capital management objectives are:-

The Board policy is to maintain a strong capital base so as to maintain inventor, creditors and market confidence and to future development 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 as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

Debt-to-equity ratio is as follows

* Net Debts includes Non-Current borrowings, Current borrowings, Current Maturities of non current borrowing net off Current Investment and cash and cash equivalent

** Equity includes equity and others equity.

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 or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analysing credit limit and creditworthiness of customers on a continuous basis to whom the credit has been granted offer necessary approvals for credit.

Financial instruments that are subject to concentration of credit risk principally consists of trade receivable investments, derivative financial instruments and other financial assets. None of the financial instruments of the Company results in material concentration of credit risk

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 to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b) Maturities of financial liabilities

The following tables detail the remaining contractual maturities for its financial liabilities with agreed repayment period. The amount disclosed in the tables have been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.

c) Maturities of financial assets

The expected maturity for financial assets of the company are all current.

iv) Market Risk

Market risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market prices. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rate, interest rate, credit, liquidity and other market changes.

47 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 or kind of funds) to any other person(s) or entity(is), 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

48 Registration of charges or satisfaction with Registrar of Companies - No charge is required to be registered / satisfied during the year with Registrar of Companies.

49 Undisclosed income - There is no case of search or survey of any other cases related to income surrendered or disclosed in any tax assessments under the Income Tax Act, 1961.

50 The company has not fulfilled the criteria of Corporate Social Responsibility (CSR) as specified in Section 135 of the Companies Act, 2013.

51 The company has not invested in Crypto Currency or Virtual Currency, hence related details are not provided

52 Previous year’s figures have been regrouped / rearranged wherever necessary to conform to the current year’s presentation.

Signatures to Notes "1" to "52" forming part of these Financial Statements.

For Gautam N Associates For and on behalf of the Board of Directors

Firm Registration No.: 10117W Chartered Accountants

Satish Kagliwal Sweta Kagliwal

Gautam Nandawat Managing Director Director

Partner DIN No.: 00119601 DIN No.: 02052811

Membership No.:032742

UDIN: 24032742BKCRRZ1150 Rajendra Sharma Reshma Talbani

Place:Chhatrapati Sambhajinagar Chief Financial Officer Company Secretary

_Date: 22 May 2024

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Mar 31, 2018

Notes to the reconciliations

1) These financial statements of Company for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purposes of transitions to the Ind AS, the company has followed the guidance prescribed in AS 101, First time adoption of Indian Accounting Standards, with April 1, 2016 as the transition date and IGAAP as per previous GAAP.

2) The Company has elected to measure its land and plant & machinery at fair value at the date of transition to Ind AS. Gain on such fair valuation Rs. 66,18,95,180 has been recognized in the opening retained earnings as at April 01, 2016. The Company has depreciated the fair value of plant and machinery over the technically assessed useful lives of the assets which is reflected in the Statement of Profit and Loss

3) The company has re-classified the Standing crops Rs. 56,51,895 as Bio-logical assets which were hitherto shown as Inventories in complying the Ind-AS - 41, Agriculture.

Notes to the reconciliations

1. The company has re-instated the fair value of free hold land based upon the valuation by an independent valuer. The part of its land have been sold during the year 2016-17 making a profit of Rs. 13,65,58,688, however, due to re-instatement of the fair value as on the date of transition to Ind AS i.e. 1st April 2016, the difference between selling price and fair value have been classified as ''Loss on sale of agricultural land'' in Note no 23.

2. The company has re-classified the Standing crops as Bio-logical assets which were hitherto shown as Inventories in complying the Ind-AS - 41, Agriculture.

The management assessed that the fair values of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction among willing parties, other than in a forced or liquidation sale

The Company determines fair values of financial assets and financial liabilities by discounting contractual cash inflows/ outflows using prevailing interest rates of financial instruments with similar terns. The fair value of investment is determined using quoted net assets value from the fund. Further, the subsequent measurement of all finance assets and liabilities (other than investment in mutual 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 the borrower which in case of financial liabilities is the weighted average cost of borrowing of the Company and in case of financial assets is the average market rats of similar credits rated instrument.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. In addition, the Company internally reviews valuation, including independent price validation for certain instruments.

Fair value of financial assets and liabilities is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The following methods and assumptions were used to estimate fair value:-

a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments.

b) The fair value of the Company''s interest borrowing received are determined using discount rate reflects the entity''s borrowing rate as at the end of the reporting period. The own non performance risk as at the end of reporting period was assessed to be insignificant.

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy described as follows, 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 are observed, 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 on observation market data.

26 Financial Instruments and Risk Review

i) Capital Management

The Company''s capital management objectives are:-

The Board policy is to maintain a strong capital base so as to maintain inventor, creditors and market confidence and to future development 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 as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

* Net Debts includes Non-Current borrowings, Current borrowings, Current Maturuities of noncurrent borrowing net off Current Investment and cash and cash equivalent

** Equity includes equity and others equity.

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 or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limit and creditworthiness of customers on a continuous basis to whom the credit has been granted offer necessary approvals for credit.

Financial instruments that are subject to concentration of credit risk principally consists of trade receivable investments, derivative financial instruments and other financial assets. None of the financial instruments of the Company results in material concentration of 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.

Trade receivables

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or group of financial assets is impaired. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12 months expected credit losses or at an amount equal to the life time expected credit losses, if the credit risk on the financial asset has increased significantly since initial recognition

Before accenting any new customer, the Company uses an external/internal credit scoring system to asses potential customer''s credit quality and defines credit limits by customer. Limits and scoring attributed to customer are reviewed periodic 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 to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b) Maturities of financial liabilities

The following tables detail the remaining contractual maturities for its financial liabilities with agreed repayment period. The amount disclosed in the tables have been draw up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.

2g In the opinion of the Board, Current Assets, Loans and advances are approximately of the value stated, if realized in the ordinary course of business.

3 a) The Company''s income being agricultural income, the Company does not expect any liability for income tax.

b) In view of agriculture income being earned by the Company which is exempt from levy of Income Tax; despite being carried forward losses and unabsorbed depreciation, no deferred tax assets have been recognized as a matter of prudence.

4 The Company has single reportable segment namely Farming Activity for the purpose of Accounting Standard 17 on Segment Reporting, therefore, the information related to Segmental Reporting has not been provided.

5 (i) In the opinion of the Board, fixed assets have been stated at cost, which is at least equal to or less than the realizable value if sold in the ordinary course of business. Consequently, the management is of the opinion that there is no impairment of assets.

6 Related party disclosure as per Accounting Standard 18:

(a) List of Related Parties

1) TechIndia Nirman Ltd

2) Nath Bio-Genes (India) Ltd.

3) Nath Biotechnologies Ltd

4) Paithan Mega Food Park Pvt. Ltd.

(b) Key Management personnel

Mr. Akash Kagliwal, Whole Time Director Mr Rajendra Sharma, Chief Financial Officer

III Other Employee Benefit Plan

Liability for compensated absences as at year end is Rs. 1,15,341 (Previous Year: Rs. 93,531 ).

7 Outstanding dues to Micro and Small Enterprises:

The Company has certain dues to suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31, 2018. The disclosures pursuant to the said MSMED Act are as follows:

Note:- This information has been given in respect of such vendors to the extent they could

8 Previous year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2015

Note 1:

Contingent liabilities not provided for in respect of:

Current Year Rs. Previous Year Rs.

a) Arrears of dividend on Cumulative Redeemable Preference Shares (Including Corporate dividend Tax) 8,303,930 7,835,950



b) Amount of interest liability / penalty / liquidated damages, if any on delayed/non- Amount Amount payment of certain short term Unascertainable Unascertainable borrowings.

NOTES - 2

In the opinion of the Board, Current Assets, Loans and advances are approximately of the value stated, if realized in the ordinary course of business.

NOTES - 3

a) In view of the unabsorbed depreciation and carried forward business losses / allowances and the Company's income being agricultural income, the Company does not expect any liability for income tax.

b) In view of agriculture income being earned by the Company which is exempt from levy of Income Tax; despite of being carried forward losses and unabsorbed depreciation, no deferred tax assets have been recognized as a matter of prudence.

NOTES - 4

The Company has single reportable segment namely Farming Activity for the purpose of Accounting Standard 17 on Segment Reporting, therefore, the information related to Segmental Reporting have not been provided.

NOTES - 5

(i) In the opinion of the Board, fixed assets have been stated at cost, which is at least equal to or less than the realizable value if sold in the ordinary course of business. Consequently, the management is of the opinion that there is no impairment of assets.

(ii) Pursuant to the notification of Schedule II of the Companies Act, 2013, (the Act) by the Ministry of Corporate Affairs effective from 01.04.2014, the management has internally reassessed based upon the technical evaluation and changed, wherever necessary, the useful life to compute depreciation to confirm the requirement of the Act. Accordingly, the carrying amount as at 01.04.2014 is being depreciated over the revised useful life of the assets. In case of assets with NIL revised remaining useful life as at 01.04.2014 is reduced after tax adjustment from the retained earning as at such date in the financial results. Further, had the company continued with the previously assessed useful life the charge of depreciation for the year ended 31.03.2015 would have been lower by Rs. 1,83,326 and the profit before tax would also have been lower by such amount in financial results as also fixed assets as on 31.03.2015 would have been lower to that extent.

NOTES - 6

Related party disclosure as per Accounting Standard 18:

(a) List of Related Parties

1) Nath Bio-Genes (India) Ltd.

2) Nath Biotechnologies Ltd

(b) Key Management personnel

Mr. Akash Kagliwal, Managing Director

The accounts of trade payable, Unsecured Loans, ARCIL, Other Liabilities and Provisions and Loans & advances, are subject to confirmation and reconciliation, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the management the ultimate difference will not be material.

NOTES - 7

Previous year's figures have been re-grouped/rearranged wherever necessary to confirm to the current year's presentation.

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Mar 31, 2014

1. Contingent liabilities not provided for in respect of:

Current Year Rs. Previous Year Rs.

a) Arrears of dividend on Cumulative Redeemable Preference Shares (Including Corporate 7835950 7367970 dividend Tax)

b) Amount of interest liability / penalty / liquidated damages, if any on delayed/non- Amount Amount payment of certain short term borrowings. Unascertainable Unascertainable

NOTES - 2

In the opinion of the Board, Current Assets, Loans and advances are approximately of the value stated, if realized in the ordinary course of business.

NOTES - 3

a) In view of the unabsorbed depreciation and carried forward business losses / allowances and the Company''s income being agricultural income, the Company does not expect any liability for income tax.

b) In view of agriculture income being earned by the Company which is exempt from levy of Income Tax; despite of being carried forward losses and unabsorbed depreciation, no deferred tax assets have been recognized as a matter of prudence.

NOTES - 4

The Company has single reportable segment namely Farming Activity for the purpose of Accounting Standard 17 on Segment Reporting, therefore, the information related to Segmental Reporting have not been provided.

NOTES - 5

Related party disclosure as per Accounting Standard 18:

(a) List of Related Parties

1) Nath Seeds Ltd.

2) Nath Bio-Genes (India) Ltd.

3) Global Transgenes Ltd

4) Nath Biotechnologies Ltd

(b) Key Management personnel

Mr. Akash Kagliwal, Whole Time Director

NOTES - 6

The accounts of certain creditors and Unsecured Loans including from associate concern and ARCIL, loans and advances including associate concern, Other Liabilities and Provisions are subject to confirmation and reconciliation, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the management the ultimate difference will not be material.

NOTES - 7

Previous year''s figures have been re-grouped/rearranged wherever necessary to confirm to the current year''s presentation.

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Mar 31, 2013

NOTES - 1

Contingent liabilities not provided for in respect of: Rs. Rs.

a) Arrears of dividend on Cumulative Redeemable Preference Shares 7367970 7303080

(Including Corporate dividend Tax)

b) Amount of interest liability / penalty / liquidated damages, if any on Amount Amount delayed/ non-payment of certain short term borrowings.

Unascertainable Unascertainable

NOTES - 2

In the opinion of the Board, Current Assets, Loans and advances are approximately of the value stated, if realized in the ordinary course of business.

NOTES - 3

a) In view of the unabsorbed depreciation and carried forward business losses / allowances and the Company''s income being agricultural income, the Company does not expect any liability for income tax.

b) In view of agriculture income being earned by the Company which is exempt from levy of Income Tax; despite of being carried forward losses and unabsorbed depreciation, no deferred tax assets have been recognized as a matter of prudence

NOTES - 4

The Company has single reportable segment namely Farming Activity for the purpose of Accounting Standard 17 on Segment Reporting, therefore, the information related to Segmental Reporting have not been provided.

NOTES - 5

Related party disclosure as per Accounting Standard 18:

(a) List of Related Parties

1) Nath Seeds Ltd.

2) Nath Bio-Genes (India) Ltd.

3) Global Transgenes Ltd

4) Nath Biotechnologies Ltd

(b) Key Management personnel

Mr. Akash Kagliwal, Whole Time Director

NOTES :6

1. Related party relationship is as identified by the Company and relied upon by the Auditors.

2. No amounts in respect of the related parties have been written off during the year. Also, no accounts have been provided for as doubtful debts.

NOTES - 7

The basic and diluted earnings per share in terms of Accounting Standard 20 on Earnings per Share issued by the Institute of Chartered Accountants of India has been calculated as under: -

NOTES - 8

The accounts of certain debtors, creditors, Secured and Unsecured Loans including from associate concern, loans and advances including associate concern, Other Liabilities and Provisions are subject to confirmation and reconciliation, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the management the ultimate difference will not be material.

NOTES - 9

Previous year''s figures have been re-grouped/rearranged wherever necessary to confirm to the current year''s.