Directors Report of JK Agri Genetics Ltd.

Mar 31, 2025

Your Directors have pleasure in presenting the Annual
Report together with the Audited Financial Statements
of the Company for the Financial Year ended 31^st March
2025.

FINANCIAL RESULTS

('' in Crore)

Sales & Other Income	166.89
Profit before Finance Cost &	(5.02)
Depreciation (PBIDT)
Profit after Tax	(2.50)
Surplus brought forward	16.64
Surplus carried to Balance Sheet	14.14

DIVIDEND

Considering the financials of the Company, no
dividend has been recommended by the Board for the
Financial Year 2024-25 ended 31^st March 2025.

OPERATIONS

The year 2024-25 proved to be a mixed one for the
seed industry, characterised by contrasting trends
across major crops. Your company''s domestic trade
and institutional businesses grew by 9% and 14%
respectively supported by growth in crops such as
Jowar, Bajra, Maize, Wheat, Mustard, Paddy, SSG
and Vegetables. During the Kharif 2024 season, the
industry faced shortage of hybrid Paddy seeds, along
with limited availability of Cotton seeds at the season’s
onset. Cotton has also seen shrinkage of acreages
for last two years leading to reduction in seed sale for
industry. In northern regions, the delayed monsoons
negatively impacted the demand for long-duration
Bajra hybrids.

On positive side, the Maize segment showed
encouraging growth. Acreage expanded significantly,
driven by favourable price trends and strong market
demand.

However, the mustard segment experienced a downturn
in packed seed sales. Many farmers opted to use
saved seeds to reduce costs, a trend observed across

several regions. This behaviour impacted all mustard
seed companies, including JK Agri and this led to a
noticeable dip in sales performance for the segment.
Mustard for last two years has seen a significant shift to
self-grown seed rather than hybrids by farmers in India.

There were several challenges posed by regional
political unrest and non-availability of seeds for the
export market. In Egypt, the Company has successfully
expanded sales of sorghum and introduced SSG
product, which is expected to drive growth in the
coming years. In West Africa, the company has made
significant strides in the markets of Burkina Faso,
Senegal, Togo, and Ghana, with successful trials and
registration of ECOWAS for sorghum and pearl millet.
In Bangladesh, JK Agri has successfully registered
it’s X-gene cotton after extensive trials. Commercial
sales is expected to grow from next season onwards.
In Sri Lanka, JK Agri has introduced two new tomato
hybrids and two okra hybrids, resulting in increased
sales over the previous year. Despite facing challenges
such as short supply of maize and okra, political unrest
in Sudan and Bangladesh and a stronger dollar, the
Company has achieved growth in okra, tomato, and
sorghum crops. JK Agri stays committed to grow its
exports in the coming years. However, overall exports
reduced by 3%.

During the year your Company monetised surplus land
asset, strengthening its financial position and providing
strategic flexibility for future growth. This allowed the
Company to fully repay its Working Capital Term Loan,
Working Capital Demand Loan and Cash Credit Limits.
The surplus will augment the Company''s cash position
adding to its liquidity and support future growth initiatives.

INDUSTRY OVERVIEW AND OUTLOOK

India’s Monsoon forecast is optimistic for 2025, on
time and normal monsoon, which is vital for the Kharif
season. The Indian seed market size reached USD
7.8 Billion in 2024 and is expected to grow at a CAGR
of 8% to reach USD 15.0 Billion by 2033.

The agribusiness sector continues to play a pivotal
role in supporting food security and rural livelihoods.
The rapid development of the economy with the
proliferation of industrial and service sectors, has
led to significant decline in the share of agriculture in
India’s GDP. But even with a lower share of around
15 percent, the agriculture sector still remains the
leader in employment, with a share of over 46%. In
fact, the dependence on agriculture for employment
has increased by two per cent in post-pandemic
period and during that time average agricultural
growth remained robust at 4.6 percent, demonstrating
remarkable resilience.

A key part of that strength emanates from Government’s
mission mode focus to transform the agricultural sector
through various initiatives to enhance productivity and
infrastructure. The aim is to create a sustainable and
resilient agricultural ecosystem through investments
in irrigation systems, storage solutions, modernising
post-harvest management, expanding cold chain
facilities, technological advancements and improving
market access. The Pradhan Mantri Kisan Sampada
Yojana (PMKSY) not only enables reduction in post¬
harvest losses but also ensure better prices for
farmers’ products. In addition, Government policies
such as National Food Security Mission (NFSM) and
the Rashtriya Krishi Vikas Yojana are the key drivers
for growth of Indian Seed industry.

RESEARCH AND DEVELOPMENT

Your Company has been constantly contributing to
the Agri sector by conducting intensified research
activities focused on developing new suitable hybrids
across various crops. The company is developing new
products by fortifying crops via deployment of marker
assisted backcross breeding program in varied crops-
viz., Paddy crop improvement against the diseases-
bacterial blight, neck blast, brown plant hopper and
yield traits. In cotton - major traits are pink boll worm
& tobacco streak virus. In Maize - major focusing traits
are drought, wilt and fall army worm; in Mustard -
downy mildew and white rust; in Tomato - tomato leaf
curl virus, bacterial wilt, late blight; chilli- chilli leaf curl
virus, CVMV, CMV, anthracnose and bacterial wilt; in
Okra- ELCV and YVMV.

Advancements in molecular approaches are
being utilised to breed crops with a wide range of
economically valuable traits to develop superior
products. Also, it is utilising the immense potential
of biotechnological tools in fostering and fortifying
traditional breeding. An integrated molecular breeding
approach has been deployed by blending traditional
breeding with advanced biotechnology. This enables
develop superior products that are high-yielding
coupled with targeted traits under stress environments
to accelerate the new product development. Strategic
field trials coupled with stringent product advancement
procedure led to identify best performing products for
wider adaptability.

The teams at JK Agri are focused on improvement
of quality of seed production by various technological
interventions, like genetic male sterility, cytoplasmic
male sterility, etc. to purify the CMS lines during
foundation and is using markers for identification/
differentiating A-line from B&R lines, reducing the
time for selection process in field. Seed production
research is being enhanced through technological
interventions to achieve cost-effectiveness and
improve seed quality, focusing on areas like
accelerated breeding, data driven decision making
which ultimately leads to better seeds and increase
in crop yield. To stay competitive, productive and
sustainable, your Company is emphasising on
use of digital platforms, artificial intelligence and
mechanisation of R&D.

OPPORTUNITIES, THREATS, RISK AND

CONCERNS

Opportunities

Technological advancements, especially through AI
and machine learning is transforming Indian agriculture,
where a phygital (physical digital) ecosystem is
empowering farmers to adopt the vast array of tools
like advisory on crop cycles, crop monitoring, nutrition
management, soil testing, weather forecast etc. as
well as financial services and market access. This not
only enables optimum resource utilization amidst rising
clamour for sustainable farm practices, but also leads to
lower costs, enhanced yields, and thus high incomes.

The Indian horticulture presents huge untapped
potential as despite being the second largest producer
of fruits and vegetables globally, it accounts for only
about two percent of global horticulture trade. India’s
comparative advantage in this segment presents
scalable export potential, especially with the likely
shift in global trade patterns. Exports opportunities are
increasing from India, as India is the largest source for
almost all seed portfolio like Sorghum, Maize, Cotton,
and vegetables. The Cluster Development Program
(CDP) for horticulture enables private enterprises
to leverage their operational excellence to create
specialised clusters focused on horticultural crops
with export potential while the Government plays the
role of facilitator. The tech-platforms are playing a
major role in improved market linkages, with farm-gate
pickup of the produce. Govt.’s Agricultural Marketing
Infrastructure sub-scheme can also be leveraged.

The ‘One Nation, One License’ project for seeds and
agri inputs is to simplify and standardize licensing
requirements across states that would reduce time
to reach the market from the current 5-8 years to 3-5
years. Last year the Government has launched 109
new high-yielding and climate-resilient varieties of 32
field and horticulture crops for farmers.

Threats, Risk and Concerns

Agriculture in India faces numerous threats that
impact productivity, sustainability and the livelihoods
of farmers.

Despite the progress made on irrigation front, a
significant part of India’s crop area remains reliant on the
vagaries of unpredictable monsoon rainfall. This along
with droughts and temperature anomalies threaten
crop cycles and yields. Fragmented landholdings,
with 9 out of 10 agricultural households owning less
than two hectares of land, presents a major challenge
as they struggle to access affordable credit and crop
insurance. It also makes it difficult for farmers to
adopt modern agricultural practices and technologies,
resulting in lower productivity and income. While the
role of middlemen has been significantly reduced, yet
they are not completely eliminated, and thus Indian
farmers remain vulnerable to exploitation and often

face price volatility and lack of transparent market
information.

HUMAN RESOURCE DEVELOPMENT

With a vision to transform the organisation into an agile,
innovative and customer-centric entity, organisational
transformation has been the key agenda for the
year enabling opportunities in - enhanced market
competitiveness and operational efficiency, increased
employee engagement and alignment with long-term
goals and superior stakeholder value creation through
innovation and sustainability.

The adopted synergy of talent and teamwork has
helped us towards a meaningful organisational change
and improved standards of value creation for our
stakeholders. This harmonious combination has been
the cornerstone of our resilience in the competitive
industry since the very beginning.

JK Agri fosters an environment where teams thrive
by promoting a culture of continuous learning and
professional growth. The Company has been working
with internal and external faculty of elite institutions
like IIMs towards leveraging and develop skills of
high performers across all segments. Ensuring
competitive advantage, we have accelerated adoption
of technology via Super Sales App enabling the field
force with advanced robust market coverage by post
season & pre-season activities with distributors,
farmers participation in the focused products for the
identified geographies.

JK Agri for the 6^th consecutive year has been certified as
a Great Place to Work-recognized by the Great Place
to Work Institute & JK Agri -Employee Engagement
Survey showed a positive increase in the Employee
Engagement levels over last year. The achieved
milestones will sharpen our objectives further in the
journey to build a High-Trust, High-Performance Culture.

CORPORATE SOCIAL RESPONSIBILITIES
Despite there being no obligation to spend any amount
on CSR activities during the Financial Year, as a good
practice, the Board of Directors unanimously approved
to make voluntary contribution of '' 5.00 Lakh towards
CSR related activities.

Our Corporate Social Responsibility (CSR) initiatives are integral to our business strategy and reflect your
Company’s dedication to making a positive impact on society and the environment. The main objective is to train
farmers on latest management and agricultural practices to control pests & diseases along with mitigating abiotic
stress factors. The training covers various farm management practices, importance of Seed Selection, Improving
yields, Improved Seed quality in terms of germination and genetics purity with reference to new and improved
practices, technology in alliance with specific agro-climatic regions enabling better Livelihood.

The Company has a Corporate Social Responsibility
(CSR) Policy in accordance with the provisions of
the Act and rules made thereunder. The CSR Policy
along with the CSR projects approved by the Board,
the composition of the Committee and other relevant
details are disclosed on the website of the Company
at https://jkagri.com/wp-content/uploads/2024/05/
CSR-Policy-Projects-Committee-1.pdf

The Annual Report on the CSR activities undertaken
by the Company during the Financial Year under
review, in the prescribed format, is annexed to this
Report as Annexure - CSR.

KEY CHANGES IN FINANCIAL INDICATORS

Key Changes in financial indicators, are given in the
Notes to Financial Statements.

INTERNAL CONTROL SYSTEMS AND THEIR
ADEQUACY

The Internal Control Systems includes policies, processes,
tasks, behaviours and other aspects of the Company,
which when combined, facilitate effective and efficient
operation, quality of internal and external reporting and
compliance with applicable laws & regulations.

The Company has a well-defined Internal Control
System commensurate with the size, scale and
complexities of the operations to support the
Business Operations and also to ensure Statutory

Compliances. These systems are regularly tested
for their effectiveness by Statutory as well as
Internal Auditor and were found to be operating
effectively during the year. Based on the Internal
Audit Programme approved by the Audit Committee
of the Board, the Internal Auditor carries out regular
internal audits covering all offices, factory and key
areas of business. Reports of the Internal Auditor are
placed before the Audit Committee on quarterly basis
for review. The Audit Committee undertakes a total
review of the audit observations and the actions taken
by the Management on all the findings of the Internal
Auditors. The implementation of the recommendations
of the Internal Auditors is regularly reviewed and
monitored by the Senior Management and the Action
Taken Report is placed periodically before the Audit
Committee. There are adequate checks & balances in
place, wherein deviation from the systems laid-out are
clearly identified and corrective actions are taken in
the respective areas, wherever required.

INTERNAL FINANCIAL CONTROLS

The Company has established adequate internal
financial controls for ensuring orderly and efficient
conduct of its business including its adherence to
Company’s policies, safeguarding of its assets,
prevention and detection of frauds and errors, accuracy
and completeness of the accounting records and
timely preparation of financial information. The controls

comprise a mix of preventive and detective controls,
which are manual, semi-automated and automated in
nature. The Company has followed principles such as
segregation of duties, authorisation, periodic reviews
etc, while designing the internal control framework.
The objective is to provide the management and the
Audit Committee, an independent and reasonable
assurance on the adequacy and effectiveness of
company ‘s risk management, control and governance
process. The same is being reviewed independently
by the auditors. This helps to facilitate timely detection
of any irregularities and early remediation.

Based on the review of the Internal Financial Control
Systems during the year by the Management, Audit
Committee and the Auditors of the Company, no material
reportable weakness was observed in the Internal
Financial Control Systems during the Financial Year.

ANNUAL RETURN

The Annual Return referred to in Section 134 (3) (a)
of the Companies Act, 2013 (‘the Act’) is available
on the website of the Company at https://jkagri.com/
annualreturn/

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS

The particulars of loans given, guarantees or securities
provided and investments made as required under the
provisions of Section 186 of the Act are given in the
Notes to Financial Statements.

CONSOLIDATED FINANCIAL STATEMENTS

During the financial year under review, your Company
has subscribed 4900 Equity shares of face value of
'' 10/- each i.e., 49% shareholding of JK Agri Research
Services Limited (JKARSL), a newly incorporated
Company. Consequently, JKARSL becomes an
Associate Company of your Company.

The consolidated financial statements of your
Company for the Financial Year 2024-25 have been
prepared in accordance with the Act read with the Rules
made thereunder and applicable Indian Accounting
Standards. The audited consolidated financial
statements together with Auditors'' Report form part of
the Annual Report. In compliance with Section 129(3)
of the Act and Rule 5 of the Companies (Accounts)
Rules, 2014, a report on the performance and financial
position of its associate included in the consolidated
financial statements is presented in a separate

section in the Annual Report. Please refer form AOC-1
attached to the financial statements in the Annual
Report. Pursuant to the provisions of Section 136 of
the Act, the financial statements, the consolidated
financial statements along with relevant documents
are available on the website of the Company.
RELATED PARTY TRANSACTIONS
During the Financial Year ended 31^st March 2025, all
the contracts or arrangements or transactions entered
into by the Company with the related parties were in
the ordinary course of business and on arm’s length
basis and were in compliance with the applicable
provisions of the Act and the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
(‘SEBI Listing Regulations’).

Further, the Company has not entered into any contract
or arrangement or transaction with the related parties
which could be considered material in accordance with
the policy of the Company on materiality of Related
Party Transactions. In view of the same, disclosure in
Form AOC-2 is not applicable.

The Policy on materiality of Related Party Transactions
and on dealing with Related Party Transactions is
available on the website of the Company.

COST RECORDS

Maintenance of cost records, as specified by the
Central Government under sub-section (1) of section
148 of the Act is not required by the Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year, the Members at the Annual General
Meeting of the Company held on 30^th July 2024 have
approved re-appointment of Shri Raj Kumar Jain
(DIN: 01741527) as an Independent Director of the
Company for a second term of five consecutive years
with effect from 26^th November 2024.

Shri Abhimanyu Jhaver (DIN: 02330095) has ceased
to be Director w.e.f the closing of business hours of
24^th March 2025 on completion of his second term
as Independent Director of the Company. The Board
placed on record its sincere appreciation of the
valuable contributions and guidance received from
him during his tenure.

Shri Vikrampati Singhania (DIN: 00040659), Managing
Director of the Company retires by rotation and
being eligible offers himself for re-appointment at the

ensuing Annual General Meeting (AGM). The Board
recommends his re-appointment.

The Board at its Meeting held on 31^st July 2025, on
recommendation of the Nomination and Remuneration
Committee, appointed Shri Pravinchandra Shivaram
Dravid (DIN: 02726180) as Independent Director of the
Company for a term of 3 consecutive years, commencing
23^rd October 2025. Shri Dravid aged 74 years, would
attain the age of 75 years during his proposed
term. Accordingly, in terms of Regulation 17(1A) of
SEBI Listing Regulations, the Board recommends
appointment of Shri Dravid as Independent Director, as
aforesaid, for approval of Members of the Company by
way of Special Resolution at the ensuing AGM. In the
opinion of the Board, he possesses requisite expertise,
integrity, proficiency and experience.

All Independent Directors of the Company have
given declarations that they meet the criteria of
independence as provided in Section 149 of the Act
and Regulation 16 of the SEBI Listing Regulations.
All the Independent Directors are registered on the
Independent Directors Data Bank.

There were no other changes in the Directors/ Key
Managerial Personnel of the Company, during the
period under review.

CONSERVATION OF ENERGY, ETC.

The details as required under Section 134(3)(m) of the
Act read with the Companies (Accounts) Rules, 2014
are annexed to this Report as Annexure - 1 and forms
part of it.

DEPOSITS

The Company has neither invited nor accepted any
deposits from the public.

AUDITORS

(a) Statutory Auditors and their Report

M/s Lodha & Co LLP, Chartered Accountants (ICAI
Firm’s Registration Number- 301051E/E300284)
were appointed in the 24^th AGM held on 30^th July
2024 as the Statutory Auditors of the Company for
a term of five consecutive years commenced from
the conclusion of the 24^th AGM till the conclusion
of 29^th AGM to be held in the year 2029.

The observations of the Auditors in their Report on
Accounts and the Financial Statements, read with
relevant notes are self-explanatory. The Auditor’s
Report does not contain any qualification,
reservation, adverse remark or disclaimer. Further,
no fraud has been reported by the Auditors to the
Audit Committee or to the Board.

(b) Secretarial Auditor and Secretarial Audit
Report

Pursuant to the provisions of Section 204 of the
Act, the Board of Directors appointed Shri Namo
Narain Agarwal, Company Secretary in Practice
as Secretarial Auditor to carry out Secretarial
Audit of the Company for the Financial Year
2024-25.

The Report given by him for the said Financial
Year in the prescribed format is annexed to
this Report as Annexure - 2. The Secretarial
Audit Report does not contain any qualification,
reservation, adverse remark or disclaimer.

In terms of the provisions of Regulation 24A
of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (SEBI Listing
Regulations) and Section 204 of the Act and
the Rules made thereunder, your Directors
have recommended appointment of M/s Ronak
Jhuthawat & Co., Company Secretaries, Peer
Reviewed Company Secretary Firm, as the
Secretarial Auditor of the Company for a term of
five consecutive years for financial year 2025¬
26 to financial year 2029-30 for approval by the
Members. Requisite resolution regarding their
appointment is included in the Notice of ensuing
AGM for approval by the Members. M/s Ronak
Jhuthawat & Co., Company Secretaries, have
given their consent to act as Secretarial Auditor
of the Company and have further confirmed that
their appointment, if made, at the ensuing AGM
shall be in accordance with conditions specified
in the Act and SEBI Listing Regulations.

PARTICULARS OF REMUNERATION

Disclosure of the ratio of the remuneration of each

Director to the median employee''s remuneration and

other requisite details pursuant to Section 197(12)
of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is annexed to this Report as
Annexure - 3 and forms part of it. Further, Particulars
of Employees pursuant to Rule 5(2) & (3) of the above
Rules, also forms part of this Report. However, in terms
of provisions of Section 136 of the Act, the Annual
Report for the financial year 2024-25 is being sent to
all the Members of the Company and others entitled
thereto, excluding the said particulars of employees.
Any member interested in obtaining such particulars
may write to the Company Secretary. The said
information is available for inspection at the
Registered Office of the Company during business
hours on working days of the Company upto the
ensuing AGM.

CHANGE IN THE NATURE OF BUSINESS

During the year under review, there was no material
change in the nature of business of the Company.
SIGNIFICANT AND MATERIAL ORDERS PASSED
BY THE REGULATORS OR COURTS OR
TRIBUNALS

During the year under review, there were no significant
and material orders passed by the Regulators or Courts
or Tribunals that could impact the going concern status
of the Company and its future operations.

MATERIAL CHANGES AND COMMITMENTS

There have been no material changes and
commitments affecting the financial position of the
Company which have occurred between the end of
the Financial Year of the Company and the date of
this report.

DETAILS OF APPLICATION MADE OR ANY
PROCEEDING PENDING UNDER THE INSOLVENCY
AND BANKRUPTCY CODE

During the year under review, no application is made
or any proceeding is pending under the Insolvency
and Bankruptcy Code, 2016.

COMPLIANCE OF SECRETARIAL STANDARDS
During the year under review, your Company has duly
complied with the applicable Secretarial Standards on

Meetings of Board of Directors and General Meetings
issued and as amended by the Institute of Company
Secretaries of India.

CORPORATE GOVERNANCE

Your Company reaffirms its commitment to best
corporate governance practices. Pursuant to
Regulation 34 of the SEBI Listing Regulations, a
Management Discussion and Analysis, Corporate
Governance Report and Auditors’ Certificate regarding
compliance of conditions of Corporate Governance are
made part of this Report. The Corporate Governance
Report also covers the following:

(a) Particulars of the four Board Meetings held
during the Financial Year under review.

(b) Salient features of the Policy on Nomination
and Remuneration of Directors, Key Managerial
Personnel and Senior Management

(c) Manner in which formal annual evaluation of
the performance of the Board of Directors, of its
Committees and of individual Directors has been
made.

(d) Details with respect to composition of
Audit Committee and establishment of Vigil
Mechanism.

(e) Details regarding Risk Management.

(f) Disclosures in relation to the Sexual Harassment
of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013.

DIRECTORS’ RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Act, your
Directors state that-

(a) In the preparation of the annual accounts, the
applicable accounting standards have been
followed along with proper explanation relating
to material departures, if any;

(b) the accounting policies have been selected
and applied consistently and judgments and
estimates made are reasonable and prudent
so as to give a true and fair view of the state of
affairs of the Company at the end of the Financial
Year and of the profit and loss of the Company
for that period;

(c) proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the said Act
for safeguarding the assets of the Company and
for preventing and detecting fraud and other
irregularities;

(d) the annual accounts have been prepared on a
going concern basis;

(e) the internal financial controls to be followed by
the Company have been laid down and that such
internal financial controls are adequate and were
operating effectively; and

(f) t he proper systems to ensure compliance with
the provisions of all applicable laws have been
devised and that such systems were adequate
and operating effectively.

CAUTIONARY STATEMENT

"Management''s Discussion & Analysis Report"
contains forward looking statements, which may be
identified by the use of the words in that direction
or connoting the same. All statements that address
expectation or projections about the future, including
but not limited to statements about the Company’s
strategy for growth, product development, market
position, expenditures and financial results are
forward looking statements. The Company''s actual

results, performance or achievements could thus
differ materially from those projected in such forward¬
looking statements. The Company assumes no
responsibility to publicly amend, modify or revise
any forward - looking statements on the basis of any
subsequent development, information or events.
ACKNOWLEDGEMENTS

Your directors wish to acknowledge and place on
record the commitment and dedication put in by every
employee of your Company.

Your Directors would also like to acknowledge and
record their appreciation of the continued support and
assistance received by the Company from its valued
Customers, Dealers, Suppliers, Shareholders, Banks
and Central and State Government Agencies etc.

On behalf of the Board of Directors

Date: 31^st July 2025 Raghupati Singhania

Place: New Delhi Chairman

---

Mar 31, 2024

The Directors have pleasure in presenting the Annual Report together with the Audited Financial Statements of the Company for the Financial Year ended 31^st March 2024.

FINANCIAL RESULTS

(Rs in Crore)
Sales & Other Income	155.58
Profit before Finance Cost & Depreciation (PBIDT)	(18.00)
Profit after Tax	(20.82)
Surplus brought forward	37.46
Surplus carried to Balance Sheet	16.64

DIVIDEND

Considering the financials of the Company, no dividend has been recommended by the Board for the Financial Year 2023-24 ended 31^st March 2024.

OPERATIONS

The year 2023-24 has been a challenging year for the seed industry in general. In the case of JK Agri, overall revenue and profits declined due to reduction in the vegetable business caused by rationalisation of non-viable products from company’s portfolio as well as shift in crop segments due to extreme weather conditions. Due to ‘black thrips’ epidemic in South India, the cropping pattern shifted from chilli to cotton in major areas negatively resulting in sales of chilli seeds. Insufficient and delayed rains forced farmers to shift to alternate crops while paddy farmers in the east shifted from hybrid to varietal and saved seed whereas farmers in South and Central India shifted to pulses due to delayed monsoon. In case of Mustard, the commodity price was low compared to previous season hence, farmers in many places shifted to self-saved seeds instead of purchasing hybrid mustard seeds.

In the year 2023, the Company introduced a new hybrid JKCH-9555 in big boll segment. Performance of New hybrids of vegetables i.e., JK 1020 (Chilli) and JK Vijeta in okra is encouraging and likely to drive future vegetable business. New hybrid 2044 in Bajra and 6901 Gold in Mustard are also promising and is planned aggressively for next few years.

On the export front, your Company continues to carefully expand its geographical and product

footprints by diversifying into new crops. Meanwhile, our existing products in Tomato, Okra, Brinjal, Millet and Sorghum continue to grow. The Company has got new registrations in Sri Lanka (2 Tomato varieties, 1 each in Bitter Gourd and Pumpkin), Myanmar (2 Tomatoes, 1 each Millet and Sorghum), Nepal (Paddy), Burkina Faso (1 Maize, 1 Sorghum) and Egypt (SSG). In Cotton, X -Gene Cotton de-regulation process in Bangladesh is complete and large-scale registration trails are being conducted, which will be commercialized in 2025 season. However, during the year, export business had to face headwinds in Sri Lanka, Bangladesh, Sudan etc. due to political instability, forex availability & sharp currency depreciation in the importing countries coupled with high freight costs.

Despite these challenges, the team at JK Agri focussed on demand generation activities to promote the products. The Company connected with more than 1200 distributors through distributor meetings which established positive sentiment among our trade partners. The sales team is focussed on covering 10,000 key villages and 1.5 lakh farmers. The Company has adopted a new commercial policy and started ‘focussed distributor’ approach, which has generated improved advance bookings for the Kharif-24 season. Effective use of technology has been made to improve customer connect by mapping all the trade partners as well as all the farmers and retailers through the app.

INDUSTRY OVERVIEW AND OUTLOOK

The share of agriculture in India’s GDP declined to 15 percent in last fiscal year compared to 35 percent in 1990-91 due to rapid growth in industrial and service sector. However, despite challenges posed by the global health crisis and variability in climate conditions, the sector has demonstrated remarkable resilience. Agriculture and allied services grew by an average of 4 percent for the last 6 years. The government’s farmercentric focus was key, which is reflected in 5 times increase in the budget set aside for agriculture from Rs 1.37 lakh crore during 2007-14 to Rs 7.27 lakh crore during 2014-25. Pradhan Mantri Fasal Bima Yojana (PMFBY) has become world’s largest crop insurance scheme in terms of farmer enrolments. Agriculture Infrastructure Fund has been key to farmers’ welfare as several projects are underway including warehouses, sorting & grading units, cold store projects, and other kinds of post-harvest management.

RESEARCH AND DEVELOPMENT

Your Company has been constantly contributing to domestic GDP by developing new products in cotton, rice, maize, pearl millet, jowar, wheat and mustard along with vegetables, like tomato, chilli, bhindi, gourds and brinjal to support Indian farming community and consumers. The Company continues to strengthen focus on developing products for multiple climatic regions in India, ASEAN and African markets to fulfil customer needs and ensuring food security. The Company has major focus in advanced research to encounter threat due to biotic stresses caused by viruses, fungi, bacteria, mycoplasma, nematodes, insects, etc. and abiotic stresses caused by moisture, heat and cold tolerance to develop climate resilient varieties.

To promote sustainable growth and mitigate climatic challenges, the Company has strengthened advanced molecular breeding in the field crops, cotton and vegetable crops using various biotechnology tools for precision breeding and has shifted from traditional molecular breeding to advanced molecular markers assisted breeding (e.g., single nucleotide polymorphism (SNP) markers and real time polymerase chain reaction technology platform, genome sequencing and molecular marker discovery etc.) to develop products in the shortest possible time. Use of biotechnology in breeding is assisting in development of disease resistant, climate resilient, more nutritious and tastier crop varieties. Strengthened strategic field trials with stringent product advancement procedure have been put in place to identify best performing products for wider adaptability.

Seed production research is being strengthened for cost effectiveness and improved quality seed production by various technological interventions, like genetic male sterility, cytoplasmic male sterility, etc. To stay competitive, productive and sustainable, the Company is emphasizing on use of digital platforms, artificial intelligence and mechanisation of R&D.

OPPORTUNITIES, THREATES, RISK ANDCONCERNS

Opportunities

In India, there is growing emphasis on technological transformation and farmers are benefiting from the adoption of emerging technologies like precision agriculture techniques to optimize the productivity, usage of kisan drones, geographic information systems (GIS), remote sensing technologies, satellite imagery,

IoT, while big data analytics are providing farmers information on rainfall patterns, climate changes, fertilizer requirements etc. for crop monitoring, crop pest/ nutrition management. Artificial Intelligence and Robotic system provide crucial insights to perform labour intensive activities like land preparations, spraying, irrigation etc. for optimum resource utilization with the goal of enhancing yields, saving costs and maximizing the profits. Block chain technologies are contributing transparency in agricultural supply chain and innovations in biotechnology are leading to modified crops with significant pest and disease resistance.

Regarding market linkages, many of the tech-platforms are currently acting as facilitators and strengthening direct connection between buyers and sellers which leads to guaranteed better prices thereby contributing to overall economic prosperity of farmers. There is an increasing adoption of fintech platforms providing enhanced access to credit, crop insurance and various financial services to farmers. The government has also created Agri stack, for effective planning, monitoring, policymaking, strategy formulation, and implementation of schemes. A special fund, the Food Processing Fund (FPF) of US$ 265 million has set up by the Government in NABARD for extending affordable credit to food processing enterprises in the designated food parks. Private companies are permitted to conduct cluster farming of specified horticulture crops. With such emerging trends, there is huge market scope and ample opportunity for growth.

Threats, Risk and Concerns

Agriculture sector is plagued by the problem of low productivity because of poor dissemination of information on technologies & improved farming practices, lack of proper irrigational facilities and poor knowledge of optimum pesticide/nutrition management in farmlands. Agriculture being vulnerable to climate change like erratic weather patterns, droughts, floods etc., affects the production of crops and increases customer prices. Lack of infrastructure in rural areas including poor means of transport, limited storage facilities, and limited access to credit acts as a key inhibitor for farmers to store and transport their produce to different markets. Indian agriculture is dominated by small and marginal farmers with limited access to resources making it difficult to compete and scale up their production.

These challenges have contributed to the stagnation of agricultural sector growth and affected livelihood of

millions of farmers. Government is actively involved in devising schemes and initiatives to support the small and marginal farmers. Many private players are also working towards production of high yielding hybrids and varieties to improve the productivity of the crops with limited resource intake. Addressing these key challenges is essential for long term sustainable growth of agriculture sector in India.

2024-25 would also be a challenging year for seed business as the industry has seen a significant drop in seed production of Hybrid Paddy, Cotton and Maize across companies. The impact would be more severe for companies which are carrying lower opening inventories.

HUMAN RESOURCE DEVELOPMENT

The year has been marked by significant strides in Human Resources initiatives, reinforcing our commitment to fostering a supportive, dynamic, and inclusive workplace. Our strategic focus has been on talent acquisition, development, and retention, ensuring that we not only attract top talent but also nurture and retain our existing workforce. The digital interventions, implementation of CRM systems over the year have significantly enhanced our operational capabilities, customer relationships, and employee engagement. Our commitment to digital transformation will ensure that we remain agile and responsive to the dynamic business environment.

Leadership communication at various forums reiterated and reinforced the commitment towards Core values of Integrity, Openness, Fairness and Trust as our pillars for the future. Effective Management of the 3P’s - Purpose, People and Process to a large extent had helped us to navigate through these uncertain times and gear up to meet the challenges ahead.

In line with our core values of Caring for People and Commitment to Excellence we always thrive to give

the best opportunities to employees to enhance their skillset and deliver effectively. Our ability and capability of moving quickly and being responsive has helped us to effectively manage the organizational structural changes in an effective manner. Transformation of the business with a global perspective & emerging challenges being the key objective our transparent social media framework helped us in fostering a healthy two-way communication process between the employees and management.

The Company received 5^th successive certification of “Great Place to Work” and is listed as the Top 10 Seed Companies in India.

CORPORATE SOCIAL RESPONSIBILITIES

Our Corporate Social Responsibility (CSR) initiatives are integral to our business strategy and reflect our dedication to making a positive impact on society and the environment.

Advocating farmers on latest Management practices along with new Agricultural equipment and new spray molecules to control pests & diseases along with mitigating abiotic stress factors. The training covers various farm management practices, importance of seed selection, improving yields, improved seed quality in terms of germination and genetics purity with reference to new and improved practices, technology in alliance with specific agro-climatic regions enabling better Livelihood.

Wellness and Health Camps are conducted in collaboration with reputed healthcare centres. Medical camps cover Physical fitness, ECG, Gynaecologist consultation, complete blood examination and supplements are extended to diagnosed. Also focusing upon child health education where focus was upon hygiene issues, eating habits, adverse effects of tobacco & drugs.

The Company has a Corporate Social Responsibility (CSR) Policy in accordance with the provisions of the Act and rules made thereunder. The CSR Policy along with the CSR projects approved by the Board, the composition of the Committee and other relevant details are disclosed on the website of the Company at https://jkagri.com/wp-content/uploads/2024/04/ CSR-Policy-Proiects-Committee.pdf

The Company did not meet any of the threshold limits specified under Section 135 of the Act (based on the financials of the Company for the Financial Year 2022-23), accordingly, there was no obligation to spend any amount on CSR activities during the Financial Year 2023-24. However, based on the recommendation of the CSR Committee, the Board of Directors unanimously approved to make voluntary contribution of Rs. 5.00 Lakh towards CSR related activities during the Financial Year 2023-24.

The Annual Report on the CSR activities undertaken by the Company during the Financial Year under review, in the prescribed format, is annexed to this Report as Annexure - CSR.

KEY CHANGES IN FINANCIAL INDICATORS

Key changes in financial indicators, are given in the Notes to Financial Statements.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Control Systems are the foundation for ensuring achievement of organisations objectives of operational efficiencies, reliable financial reporting and compliance with laws, regulations & policies. The Company has a well-defined Internal Control System commensurate with the size, scale and complexities of the operations to support the Business Operations and also to ensure Statutory Compliances. These systems are regularly tested for their effectiveness by Statutory as well as Internal Auditor and were found to be operating effectively during the year. Based on the Internal Audit Programme approved by the Audit Committee of the Board, the Internal Auditor carry out regular internal audits covering all offices, factory and key areas of business. Reports of the Internal Auditor are placed before the Audit Committee on quarterly basis for review. The Audit Committee undertakes a total review of the audit observations and the actions taken by the Management on all the findings of the Internal Auditors. The implementation of the

recommendations of the Internal Auditors is regularly reviewed and monitored by the Senior Management and the Action Taken Report is placed periodically before the Audit Committee. There are adequate checks & balances in place, wherein deviation from the systems laid-out are clearly identified and corrective actions are taken in the respective areas, wherever required.

INTERNAL FINANCIAL CONTROLS

The Company has laid down Internal Financial Controls Systems, Policies and Procedures with reference to Financial Statements. These Internal Financial Control Systems are designed for safeguarding the assets of the Company and for the prevention and detection of errors & frauds commensurate with the size, nature and complexities of the Operations of the Company. The Company also has a robust Management Information System which not only facilitates speedy business decisions but also helps in timely preparation and sharing of reliable financial information across various levels in the Company. The Internal Financial Control Systems are regularly reviewed to ensure their effectiveness. Based on the review of the Internal Financial Control Systems during the year by the Management, Audit Committee and the Auditors of the Company, no material reportable weakness was observed in the Internal Financial Control Systems during the Financial Year.

ANNUAL RETURN

The Annual Return referred to in Section 134(3)(a) of the Companies Act, 2013 (‘the Act’) is available on the website of the Company at https://jkagri.com/wp-content/uploads/2024/07/Annual-Return-2023-24.pdf

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The particulars of loans given, guarantees or securities provided and investments made as required under the provisions of Section 186 of the Act are given in the Notes to Financial Statements.

RELATED PARTY TRANSACTIONS

During the Financial Year ended 31^st March 2024, all the contracts or arrangements or transactions entered into by the Company with the related parties were in the ordinary course of business and on arm’s length basis and were in compliance with the applicable provisions of the Act and the SEBI (Listing Obligations

and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’).

Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of Related Party Transactions. In view of the same, disclosure in Form AOC-2 is not applicable.

The Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions is available on the website of the Company.

COST RECORDS

Maintenance of cost records, as specified by the Central Government under sub-section (1) of section 148 of the Act is not required by the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year, the Members approved the appointment of Shri Kalpataru T ripathy (DIN:00865794) & Shri Mudit Kumar (DIN:00141585), as Independent Directors of the Company for a period of five (5) consecutive years w.e.f. 5^th September 2023 by way of Postal Ballot. The Board has also appointed Shri Kalpataru Tripathy as Chairman of Audit Committee & Member of Nomination and Remuneration Committee and Shri Mudit Kumar as Member of Audit Committee & Corporate Social Responsibility Committee w.e.f 5^th September 2023.

The Board is of the opinion that Shri Kalpataru Tripathy and Shri Mudit Kumar both have requisite expertise, high integrity, proficiency and experience.

Shri Sanjay Kumar Khaitan (DIN: 00156816) & Shri Sanjeev Kumar Jhunjhunwala (DIN: 00177747) have ceased to be Directors of the Company w.e.f. 6^th September 2023 on completion of their second term as Independent Directors of the Company. The Board placed on record its sincere appreciation of the valuable contributions and guidance received from them during their tenure.

Dr. Gyanendra Shukla (DIN: 02922133), President & Director of the Company resigned from the directorship w.e.f the closing of business hours of 23^rd November 2023.

The Members of the Company, based on the recommendation of the Nomination and Remuneration Committee and the Board of Directors have approved

the appointment of Shri Kuldeep Kumar Pandit (DIN: 08381208) as Whole-time Director of the Company with the designation ‘President & Director’ for a period of three years w.e.f. 24^th November 2023 by way of Postal Ballot. In the opinion of the Board, he possesses requisite expertise, high integrity, proficiency and experience.

Smt. Swati Singhania (DIN: 00095409), NonExecutive Director of the Company retires by rotation and being eligible offers herself for re-appointment at the ensuing Annual General Meeting (AGM). The Board recommends her re-appointment.

Shri Bharat Hari Singhania stepped down as Chairman & Director of the Company w.e.f. closing of business hours of 20^th May 2024. Further, the Board appointed Dr. Raghupati Singhania, Non - Executive Director, as Chairman of the Company w.e.f 21^st May 2024.

All Independent Directors of the Company have given declarations that they meet the criteria of independence as provided in Section 149 of the Act and Regulation 16 of the SEBI Listing Regulations. All the Independent Directors are registered on the Independent Directors Data Bank.

There were no other changes in the Directors/ Key Managerial Personnel of the Company, during the period under review.

CONSERVATION OF ENERGY, ETC.

The details as required under Section 134(3)(m) of the Act read with the Companies (Accounts) Rules, 2014 are annexed to this Report as Annexure - 1 and forms part of it.

DEPOSITS

The Company has neither invited nor accepted any deposits from the public.

AUDITORS

(a) Statutory Auditors and their Report

M/s BGJC & Associates LLP, Chartered Accountants (ICAI Firm’s Registration Number- 003304N/ N500056), were appointed as Statutory Auditors of the Company for Second term of five consecutive years to hold office from the conclusion of 19^th AGM held on 27^th August 2019 till the conclusion of 24^th AGM to be held in the year 2024. Accordingly, the term of office of said Auditors shall expire at the conclusion of the ensuing AGM. The observations of the Auditors in their Report on Accounts and the Financial Statements, read with relevant notes are self-explanatory.

The Auditor’s Report does not contain any qualification, reservation, adverse remark or disclaimer. Further, no fraud has been reported by the Auditors to the Audit Committee or to the Board.

In terms of the provisions of Section 139 of the Act and the Rules made thereunder, your Directors have recommended appointment of M/s Lodha & Co LLP, Chartered Accountants (ICAI Firm’s Registration Number- 301051E/E300284), as the Statutory Auditors of the Company for a term of five consecutive years to hold office commencing from the conclusion of ensuing AGM till the conclusion of 29^th AGM to be held in the year 2029 for approval by the Members. Requisite resolution regarding their appointment is included in the Notice of ensuing AGM for approval by the Members. M/s Lodha & Co LLP, Chartered Accountants have given their consent to act as Statutory Auditors of the Company and have further confirmed that their appointment, if made, at the ensuing AGM shall be in accordance with conditions specified in the Act.

(b) Secretarial Auditor and Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Act, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the Financial Year 2023-24.

The Report given by him for the said Financial Year in the prescribed format is annexed to this Report as Annexure - 2. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

PARTICULARS OF REMUNERATION

Disclosure of the ratio of the remuneration of each Director to the median employee’s remuneration and other requisite details pursuant to Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed to this Report as Annexure - 3 and forms part of it. Further, Particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules, also forms part of this Report. However, in terms of provisions of Section 136 of the Act, the Annual Report for the financial year 2023-24 is being sent to all the Members of the Company and others entitled thereto, excluding the said particulars of employees. Any member interested in obtaining such particulars may write to the Company Secretary. The said information is available for inspection at the

Registered Office of the Company during business hours on working days of the Company upto the ensuing AGM.

CHANGE IN THE NATURE OF BUSINESS

During the year under review, there was no material change in the nature of business of the Company.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals that could impact the going concern status of the Company and its future operations.

MATERIAL CHANGES AND COMMITMENTS

There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the Financial Year of the Company and the date of this report.

DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE

During the year under review, no application is made or any proceeding is pending under the Insolvency and Bankruptcy Code, 2016.

COMPLIANCE OF SECRETARIAL STANDARDS

During the year under review, your Company has duly complied with the applicable Secretarial Standards on Meetings of Board of Directors and General Meetings issued and as amended by the Institute of Company Secretaries of India.

CORPORATE GOVERNANCE

Your Company reaffirms its commitment to best corporate governance practices. Pursuant to Regulation 34 of the SEBI Listing Regulations, a Management Discussion and Analysis, Corporate Governance Report and Auditors’ Certificate regarding compliance of conditions of Corporate Governance are made part of this Report. The Corporate Governance Report also covers the following:

(a) Particulars of the five Board Meetings held during the Financial Year under review.

(b) Salient features of the Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management.

(c) Manner in which formal annual evaluation of

the performance of the Board of Directors, of its Committees and of individual Directors has been made.

(d) Details with respect to composition of Audit Committee and establishment of Vigil Mechanism.

(e) Details regarding Risk Management.

(f) Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

DIRECTORS’ RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Act, your

Directors state that-

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit and loss of the Company for that period;

(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the annual accounts have been prepared on a going concern basis;

(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and

(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.

CAUTIONARY STATEMENT

“Management’s Discussion & Analysis Report” contains forward looking statements, which may be identified by the use of the words in that direction or connoting the same. All statements that address expectation or projections about the future, including but not limited to statements about the Company’s strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The Company’s actual results, performance or achievements could thus differ materially from those projected in such forwardlooking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward - looking statements on the basis of any subsequent development, information or events.

ACKNOWLEDGEMENTS

Your Directors wish to acknowledge and place on record the commitment and dedication put in by every employee of your Company.

Your Directors would also like to acknowledge and record their appreciation of the continued support and assistance received by the Company from its valued Customers, Dealers, Suppliers, Shareholders, Banks and Central and State Government Agencies etc.

---

Mar 31, 2018

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report together with the Audited Financial Statements of the Company for the Financial Year ended 31^st March 2018.

FINANCIAL RESULTS

(Rs. in Crore)

Sales & Other Income	202.89
Profit before Finance Cost &	27.38
Depreciation (PBIDT)
Profit after Tax	11.99
Surplus brought forward	32.67
Surplus carried to Balance Sheet	42.92

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs.4/- per Equity Share of Rs.10/- each (i.e. 40%) for the Financial Year ended 31^st March 2018. The Dividend outgo subject to approval at the ensuing Annual General Meeting will be Rs.1.74 crore (inclusive of Dividend Distribution Tax of Rs.0.30 crore).

OPERATIONS

During the Financial Year ended 31^st March 2018, the Company achieved a turnover of Rs.202.89 crore, an increase of 6% over previous year. EBIDTA of the Company during the year was Rs.27.38 crore.

During the year the Company recorded significant improvement in its field crop and cotton seeds business clocking high double digit growth in both the categories. The Company is very hopeful that this growth will continue in the coming years also. The increase in the Minimum Support Price (MSP) of key crops along with prediction of a normal monsoon augurs well for the Agri Economy. This will help create a conducive environment for increased investment in agriculture inputs including seeds by the farmer, directly benefitting the Company’s business.

During the year the farm gate prices of most of the commodities especially vegetables remained supressed due to factors like over production and sudden stoppage of exports of fresh vegetables to some of our neighbouring countries creating a situation of glut in the domestic market. This had a negative impact on the vegetable seeds business, which hitherto has been growing at a very healthy rate.

We are very hopeful that this situation will change for the better in the coming year.

We expect that in coming times, there will be a redistribution of crop acreages based on economic returns. The expected hike in the MSPs of various crops will also have a bearing on this decision. The Company is very well prepared to handle these likely changes owing to its diversified product portfolio and also an R&D program which is capable of coming out with new products in response to the changing market requirements.

Your Company continues to work across segments in field crops like Jowar, Bajra, Wheat, Rice, Cotton, etc. in addition to vegetables like Okra, Tomato, Chillies, Cabbage, Gourds, etc.

The effort of the Company is to widen the portfolio by way of launching products for each of the microsegments in the market.

This year saw the market share expansion of our Bajra & Cotton hybrids especially in North and Central Indian Markets. One new Tomato hybrid - JK Ratan continues to make good strides and we are hopeful that this hybrid will grow manifold in the coming seasons.

RESEARCH AND DEVELOPMENT

R&D is the key driving force for growth of any company in agriculture. It is the potential factor to turnaround the entire business and propels growth of the Company.

While the Company has been focusing on growth, R&D has always acted as a propeller in the ocean of agriculture industry. The R&D team has delivered good hybrids of Cotton, Corn, Paddy, Bajra and new varieties in Mustard and Wheat. These varieties have helped in strengthening the overall brand equity of your Company.

Vegetable R&D also continues to come up with a number of hybrids in Okra, Tomato & Chili. Along with it the Company has also launched some hybrids of Gourds and Cucurbits, especially Melons and Cucumbers.

The Company''s R&D team is working to come up with solutions to resolve the productivity challenges, surpassing the biotic and abiotic stress & reducing the dependency of farming community on pesticide and other Agri inputs.

INDUSTRY OVERVIEW

Agriculture plays a vital role in India''s economy. Two third of the Country''s population depends primarily on agriculture for their livelihood. Continued subdued performance of the Agricultural sector with abysmally low average growth rate of 2.2% per annum during last four years does not augur well for the Economy.

The Government in the recent budget announced various programmes for the farming community. It announced MSP of 1.5 times of the input cost of farmers for the kharif crops. Further increased allocation for rural credit and fertilizer subsidy, along with irrigation reforms as well as full implementation of eNAM system (online agriculture market place) has been announced.

Development and up-gradation of agriculture marketing infrastructure in 22,000 Grams and 58 APMCS will also help the farmers. The Government has also set aside '' 500 Crore for "Operation Green" to address price volatility in perishable commodities. A special focus on food processing sector coupled with increased allocation towards crop insurance would help the farmers. In addition, initiatives like supply of subsidized fertilizer to farmers through Direct Benefit Scheme, supply of urea at statutorily controlled price are steps in the right direction to double the farmers'' income.

Favourable monsoon forecast by IMD and Skymet, expected hike in MSP rates, possibility of higher yield coupled with above mentioned initiatives taken by the government, augurs well for the farming community to boost up agricultural growth thereby reviving rural consumption.

Enthused by the positive monsoon predictions, the food grain production in the coming year is expected to surpass the record production of the previous year. While monsoon continues to be crucial for Kharif crops, however, increasing production in the Rabi season has also helped in reducing over dependence on monsoon during Kharif season.

Rising global temperatures due to climate change is also having an impact on cropping patterns and farm incomes. Irrigation is the best insurance for climate change. Approximately 35% of the total cropped area is under irrigation, leaving a large part of India to the mercy of monsoons. Over the last few years improved canal connectivity and micro irrigation to some extent has helped improve productivity, especially in the states of Uttar Pradesh, Haryana, Punjab and Maharashtra. However, relatively poor irrigation and low reservoir levels in Southern states continue to be a matter of concern.

In a nutshell in the above backdrop and due to overall positive sentiments the agricultural sector is poised for a decent double digit growth in the coming years.

OPPORTUNITIES, THREATS, RISK AND CONCERNS

Opportunities

India''s burgeoning population and rising need for food grains, increasing GDP coupled with increasing seed replacement rate, better awareness among the farming community about the benefits of using certified seeds, has led to a spur in demand for Hybrid seeds over the past few years.

With rising disposable income and change in the lifestyle and food habits of Indians the demand for fruits and vegetables has increased the need for quality vegetable seeds. The low hybridisation in Vegetable Segment, presents ample opportunity for the seed sector to grow multi-fold in next few years.

Continued economic growth and increasing demand for food in many emerging economies, especially in African and Asian continent, has opened new markets for quality seeds. Being in similar agro-climatic conditions and the potential adaptability of Indian Hybrid seeds in these regions is opening up new vistas to expand geographically.

Escalation in hybridisation rate in some of the under penetrated crops coupled with approval for GM in food crops in future has the potential to accelerate the growth of the industry.

Increasing role of the organized sector, post demonetization and GST implementation, growth in contract farming, increased mechanization, easy availability of credit and a host of recent measures initiated by the Government will further help catalyse the growth of the Indian seed industry.

Threats, Risk and Concerns

Erratic and unpredictable monsoons, uneven and skewed distribution of rain, surging cost of production, availability of labour and varying commodity prices are some of the areas of concern to the farmers.

In addition, increasing incidence of pest and Pink Boll worm attacks, rising competition, saturated market in certain crops, working capital requirement and labour cost also pose challenges for the industry. Frequent regulatory intervention restricting MRPs in certain crops and lack of a strong regulatory regime for protection of patent, etc. also cause uncertainty.

All the above factors pose a challenge to the sustainable and healthy growth of the industry.

HUMAN RESOURCE DEVELOPMENT

The success of our HR Strategy will depend in part on our ability to retain, motivate, develop and continue to attract employees with the skills and experience to help the company master challenges and make the most of opportunities. Investing in our employees remains of paramount importance. This enables in translating our strategic priorities into action and is reflected in our organizational culture, diversity and inclusion, talent and development, talent acquisition, compensation and benefits, managing change and collaboration with our social partners.

The role of HR has changed over the years. More than ever it operates in partnership with senior management across all functions. It has a key role in strategic development of the goals of the Company and helps its teams to build capabilities to deliver.

The Company has been working with internal and external faculty including exposing people across segments to training programmes at leading institutions like IIMs at Lucknow, Kozhikode, Bengaluru, etc. The team also closely works with internal mentors and has been participating in quality movements as well as innovation initiatives. Various teams have also been involved in CSR activities undertaken by the Company like farmer education, etc. The HR team continues to work with the leadership in building capabilities across the organisation to help it achieve a sustainable growth agenda. The Company continues to work towards providing an encouraging work culture where performance and innovation are encouraged and recognised.

INTERNAL CONTROL SYSTEMS

The Company has in place an adequate internal control system under which its Internal Auditor carries out extensive audit covering all significant areas of Company''s operations through-out the year. The Internal Auditor regularly reviews the adequacy and effectiveness of Company''s internal control systems. Reports of the Internal Auditor are placed before the Audit Committee on quarterly basis for review. There are adequate checks & balances in place, wherein deviation from the systems laid-out are clearly identified and corrective actions are taken in the respective areas, wherever required. Further, the Legal Compliance Monitoring Software Tool also performed satisfactorily during the year to monitor and ensure timely compliances of all applicable statutory requirements.

INTERNAL FINANCIAL CONTROLS

The Company over the years has strengthened its budgetary control system and internal financial controls with reference to financial statements. Further, the Company has adequate internal financial control policies and procedures commensurate with its size, complexity and nature of its operations. These are designed to ensure adherence to the Company''s policies, safeguarding of its assets & interests, prevention & detection of frauds & errors and accuracy & completeness of financial records. The control & systems of the Company have been made more effective with the implementation of ERP (SAP) which connects the plants as well as all offices and marketing offices to ensure seamless data and information flow. The Company also has a robust management Information System for the timely preparation of reliable financial information. No material reportable weakness was observed in the system during the previous financial year.

EXTRACT OF ANNUAL RETURN

An extract of the Annual Return as on 31^st March 2018 in the prescribed Form MGT-9 is attached as Annexure - 1 to this report and forms part of it.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans given, guarantees or securities provided and investments made as required under the provisions of Section 186 of the Companies Act, 2013 are given in the financial statements.

RELATED PARTY TRANSACTIONS

During the Financial Year ended 31^st March 2018, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on arm''s length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of Related Party Transactions. In view of the above, disclosure in Form AOC-2 is not applicable.

The Related Party Transaction Policy as approved by the Board is available on the website of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year, Shri Ajay Srivastava and Shri Amar Singh Mehta were appointed as Additional Directors of the Company w.e.f. 24^th October 2017 and 6^th February 2018, respectively, pursuant to Section 161 of the Companies Act 2013 (Act), and they shall hold office as Directors up to the date of the forthcoming Annual General Meeting (AGM). The Board also appointed them as Independent Directors of the Company for a term of five consecutive years each from the said dates pursuant to the relevant provisions of the Act and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company has also received requisite Notice from Members of the Company proposing the name of Shri Ajay Srivastava and Shri Amar Singh Mehta for appointment as Director at the forthcoming AGM. The Board recommends their appointments as aforesaid.

Shri J.R.C. Bhandari and Shri S.C Sethi, Independent Directors, resigned from the Board w.e.f. 14^th November 2017 and 27^th March 2018, respectively, owing to health issues. Shri Bhandari was also Chairman of the Audit Committee and the Nomination and Remuneration Committee of Directors and Shri Sethi was Chairman of the Stakeholders Relationship Committee of Directors of the Company. The Board placed on record its sincere appreciation of the valuable contributions made by them during the long tenure of their association with the Company.

Shri Vikrampati Singhania retires by rotation and being eligible offers himself for re-appointment at the forthcoming AGM. The Board of Directors also appointed Shri Singhania as Managing Director of the Company w.e.f. 7^th May 2018, for a period of five years, subject to the approval of the Members of the Company at the forthcoming AGM. Shri Vikrampati Singhania also became Key Managerial Personnel of the Company effective from the said date. The Board recommends his appointment.

All Independent Directors of the Company have given declarations that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, there were no other changes in the Directors and Key Managerial Personnel of the Company in terms of the provisions of the Companies Act 2013, during the period under review.

CONSERVATION OF ENERGY, ETC.

The details as required under Section 134(3)(m) read with the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure - 2 and forms part of it.

DEPOSITS

The Company has neither invited nor accepted any deposits from the public.

AUDITORS

(a) Statutory Auditors and their Report

M/s. BGJC & Associates LLP, Chartered Accountants were appointed as Statutory Auditors of the Company for a term of two consecutive years to hold office from conclusion of the 17^th AGM held in the year 2017 till the conclusion of the 19^th AGM to be held in the year 2019, subject to ratification of their appointment by the members at the AGM to be held in the year 2018. However, pursuant to the Companies (Amendment) Act, 2017, the requirement of ratification of appointment of the Auditors on yearly basis has been dispensed with. The observations of the Auditors in their Report on Accounts and the Financial Statements, read with relevant notes are self-explanatory.

(b) Secretarial Auditor and Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the Financial Year 2017-18. The Report given by him for the said Financial Year in the prescribed format is annexed to this Report as Annexure-3. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

PARTICULARS OF REMUNERATION

Disclosure of the ratio of the remuneration of each director to the median employee''s remuneration and other requisite details pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed to this Report as Annexure - 4. Further, Particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules also form part of this Report. However, in terms of provisions of Section 136 of the said Act, the Report and Accounts are being sent to all the members of the Company and others entitled thereto, excluding the said particulars of employees. The said information is available for inspection at the Registered Office of the Company during business hours on working days of the Company up to the ensuing AGM. Any member interested in obtaining such particulars may write to the Company Secretary.

CORPORATE SOCIAL RESPONSIBILITY

Your Company believes in the process of giving back to the society and aims to contribute to sustainable growth of the society at large. Besides undertaking projects for overall development and welfare of the society, your Company has been working closely with the farming community in areas of imparting agricultural knowledge, promoting preventive healthcare, skill development and livelihood enhancement projects.

The Company has requisite Corporate Social Responsibility (CSR) Policy in accordance with the provisions of the Companies Act, 2013 and rules made thereunder. The contents of the CSR Policy are disclosed on the website of the Company.

The Annual Report on the CSR activities undertaken by the Company during the financial year under review, in the prescribed format is annexed to this Report as Annexure - 5.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the financial year under review, there were no significant and material orders passed by the regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.

COMPLIANCE WITH SECRETARIAL STANDARDS

During the financial year under review, the Company has duly complied with the applicable Secretarial Standards on Meetings of the Board of Directors and General Meetings.

CORPORATE GOVERNANCE

Your Company reaffirms its commitment to best corporate governance practices. Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a Management Discussion and Analysis, Corporate Governance Report and Auditors’ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Annual Report.

The Corporate Governance Report which forms part of this Report also covers the following:

a) Particulars of the four Board Meetings held during the financial year under review.

b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, criteria for determining qualifications, positive attributes, independence of a Director, etc.

c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.

d) The details with respect to Composition of Audit Committee and establishment of Vigil Mechanism.

e) Details regarding Risk Management

DIRECTORS’ RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Companies Act 2013, your Directors state that:-

(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the annual accounts have been prepared on a going concern basis;

(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and

(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.

CAUTIONARY STATEMENT

"Management''s Discussion & Analysis Report" contains forward looking statements, which may be identified by the use of the words in that direction, or connoting the same. All statements that address expectation or projections about the future, including, but not limited to statements about the Company''s strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The Company''s actual results, performance or achievements could thus differ materially from those projected in such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward - looking statements on the basis of any subsequent development, information or events.

ACKNOWLEDGEMENTS

Your Directors wish to acknowledge and place on record the commitment and dedication on the part of the employees of your Company in achieving good results.

Your Directors would also like to acknowledge and record their appreciation of the continued support and assistance received by the Company from its valued Customers, Dealers, Suppliers, Shareholders, Banks and various central and State Government Agencies.

On behalf of the Board of Directors

Dr. Raghupati Singhania Vikrampati Singhania

Director Managing Director

Date: 7^th May 2018

Place: New Delhi

---

Mar 31, 2016

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report together with the Audited Financial Statements of the Company for the financial year ended 31^st March 2016.

FINANCIAL RESULTS	(Rs. in Crore)
Sales & Other Income	190.20
Profit before Finance Cost &	24.15
Depreciation (PBIDT)
Profit before Depreciation	13.09
Profit before Tax	9.08
Profit after Tax	8.02
Surplus brought forward	14.28
Amount available for appropriation	22.30
Appropriations
- Dividend (incl. tax on Dividend)	1.30
- General Reserve	-
- Surplus carried to Balance Sheet	21.00
	22.30

DIVIDEND

Your Directors are pleased to recommend a dividend of '' 3/- per Equity Share of Rs. 10/- each (i.e. 30%) on the Equity Share Capital of Rs. 3.60 crores for the financial year ended 31^st March 2016. The Dividend outgo will be Rs. 1.30 crores (inclusive of dividend tax of Rs. 0.22 crores).

OPERATIONS

During the year ended 31^st March 2016, the Company achieved a turnover of Rs.190.20 crores. EBIDTA of the Company during the year was Rs. 24.15 crores and Profit before Tax was Rs.9.08 crores.

Operations of the Company were negatively impacted due to two years of continuous failed monsoons leading to failure of four crop cycles. Not only has this led to hardships for the farmer but also has substantially reduced his affordability and cash flow. On top of it, regulatory uncertainty added to the challenges faced in the year gone by. Combination of all these led to a slow-down in the industry and slow recovery of payments from the farmers. Hopefully, the expected good monsoon this year will help companies involved in the Agri economy as well as the farming community.

RESEARCH AND Development

Over the years R&D spend of the Company has been significant. During the year 2015-16 around 7% of its turnover was invested in R&D activities. The Company has developed and markets a number of its own hybrids across the crops of Cotton, Corn, Paddy, Sunflower, Bajra, Jowar etc. Over the last few years the vegetable breeding programme has also produced leading hybrids in the areas of Okra, Tomato and Chillies amongst others.

With this portfolio of products, the Company has been able to access new market segments across the country. Apart from being an important player in cereal and cash crops, the Company is emerging as a strong player in the field of vegetables with some leading hybrids in Okra and Tomato having significant market shares in various regions of India and neighbouring countries.

The Company continues to focus on its research programme as its backbone for growth. In order to speed up the product development cycle and stay ahead of competition, your Company is using advanced techniques like Double Haploid, Embryo Rescue, DNA based methods etc. Farmers’ growing expectations towards disease and pest tolerance has created new avenues in Vegetable Hybrid development, where desired characters are being successfully transferred from wild species into new hybrids.

To build a continuous pipe-line of products, a dedicated team of scientists at different locations are working on more than 100 hybrids that have new improved attributes which are in different stages of evaluation right from Multi-location testing to minikit trials and demonstration plots.

INDUSTRY OVERVIEW

The poor monsoons over the last two years during Kharif coupled with unseasonal rains in the Rabi season has created havoc in the agricultural economy leading to dwindling productivity and large crop losses. The deficit monsoon during the year gone by has compounded the problems of the farming community, who were already reeling under the pressures of the previous bad monsoons. Since a large part of Indian agriculture is still rain-dependent, water scarcity has a significant impact on the crop output in these areas. Two years of back to back rain fall deficit coupled with lower subsidies and relatively non-remunerative prices for their produce has put financial pressure on the farmers. The skewed crop patterns and absence of advanced agronomy practices have added to the problems of the farmers in States like Haryana, Punjab, Eastern Uttar Pradesh, etc. where they continue to grow water intensive crops.

Also during the year, pests like White Fly in Punjab and Pink Bollworm in Gujarat caused extensive damage to the cotton crops in these states, resulting in significant losses to the farmers. This along with lack of farm credit has resulted in trying times for the farmers and has reduced their overall affordability. During the year the Government also regulated the Cotton seed pricing by fixing the maximum sales price.

Given the growing population in India, the Indian Government understands the significance of these challenges and its impact on food security. Keeping this in mind, the Government has started a number of schemes to help the farmers, some of the significant ones being:

- Soil Health Card

- Pradhan Mantri Fasal Bima Yojana

- Rashtriya Krishi Vikas Yojana

- Pradhan Mantri Krishi Sinchai Yojana

- National Agricultural Market

The intent to move subsidies for input and food grain into direct cash transfer mechanism is also under consideration, which should help plug subsidy leakages and ensure greater availability of funds in the hands of the farmer as well as for strategic public investments in the areas of irrigation, grain storage systems and cold storages. Government’s initiative of crop insurance will also go a long way in providing stability to the farming community.

All these initiatives augur well for the industry in the long run.

OPPORTUNITIES, THREATS, RISK AND CONCERNS

Opportunities

The global population currently stands at 7.2 billion, and is expected to rise to 9.3 billion by 2050. This will lead to an increased demand for food. Increasing demand for food along with reducing arable land will put pressure on Nations across the globe to increase their Food productivity, in turn creating a demand for high quality hybrid seeds.

Around 25% of the global crop output is lost due to attacks by pests, weeds and diseases, causing stress for the farming community. This offers an opportunity for improved technologies, both GM and non-GM to face these challenges. Global water shortage is also pushing companies to develop new technologies for crops to consume less water in the fields.

The opportunities in the agricultural sector are still under exploited. There are immense opportunities for improving all-round technologies in the entire supply chain right from field to plate. High quality seeds with improved productivity as well as pest resistance capabilities continue to offer good potential. In fact, seeds with the ability to perform under various abiotic stresses are the need of the hour to improve the health of the agricultural sector in India. Mechanization and improved farming techniques including crop protection technologies would help this sector grow. The Government’s increasing budget allocation for the agricultural sector augurs well for the industry. There are new growth opportunities for Indian seed companies to explore markets in the Africa’s and Asia’s that have agro-climatic conditions akin to India. The growing Indian population and increasing per capita income will need doubling of our food production over the next decade. Hence, the industry is at an interesting crossroad, which has its own set of challenges but also great opportunities ahead.

Threats, Risk and Concerns

High reliance on rainfall for irrigation in India, frequent intervention by the Government both at State and Central levels, increasing weather variability and depressed commodity prices globally, overall economic conditions, ever increasing cost of manpower, unavailability of skilled labour, lack of liquidity in the hands of farmer, withdrawal of government led subsidy schemes, continue to pose challenge to the entire Agriculture Sector including seed industry.

Even the supply of unprocessed seeds, our basic raw material is also subject to production risk due to its heavy dependence on climatic conditions. Failure to get the raw material owing to bad monsoon may impact our sale and market share. Better and timely production planning, focus on geographical diversity for production has enabled the Company to minimize the production related risk.

Rising competition intensity, rapid introduction of superior Hybrids, shifting crop by the farmer to the alternative crops exposes the company to market volatility and risk.

Your Company has been trying to mitigate its market and weather related risk by diversifying into large number of crops, which can be sold both in Kharif and Rabi season.

HUMAN RESOURCE DEVELOPMENT

Apart from R&D, the other important pillar is the people in your Company. Your Company has been focusing in improving the quality of talent by hiring people from good management institutes as well as by conducting focussed Management Development Programmes by senior faculties in both the areas of Management and Technical Skills. The Company is also strengthening employee involvement through communication meetings, cross functional teams, Young Leader Forums, Suggestion Schemes, etc. Members of the team also create a sense of community by involving them in various CSR activities of the Company. In the mission of creating sustainability and building a strong agile culture, the Company participates in employee surveys conducted by external agencies and also benchmarks itself with other competitors and best work places. The Company continues to endeavour to offer a motivating but challenging work environment where performance is recognized and employees are motivated to realize their full potential.

INTERNAL FINANCIAL CONTROLS

The Company has in place adequate internal financial controls with reference to financial statements and no material reportable weakness was observed in the system. Further, the Company has in place adequate internal financial controls commensurate with the size and nature of its operations.

The Company also has robust Budgetary Control System and Management Information System (MIS) which are backbone of the Company for ensuring that your Company’s assets and interests are safeguarded.

EXTRACT OF ANNUAL RETURN

An Extract of the Annual Return as on 31^st March 2016 in the prescribed Form MGT-9 is attached as Annexure - 1 to this report and forms part of it.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans, guarantees or securities and investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the financial statements.

RELATED PARTY TRANSACTIONS

During the financial year ended 31^st March 2016, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on arm’s length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of Related Party Transactions. In view of the above, disclosure in Form AOC-2 is not applicable.

The Related Party Transaction Policy as approved by the Board is available on the website of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Bharat Hari Singhania and Dr. Raghupati Singhania retire by rotation and being eligible offer themselves for re-appointment at the forthcoming AGM.

The Board of Directors of the Company re-appointed Shri S.K. Gupta as Whole-time Director of the Company with the designation “President & Director” for a term of three years commencing 1^st September 2016, subject to the approval of the members of the Company at the forthcoming AGM and other requisite approval, as required.

All Independent Directors of the Company have given declarations that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CONSERVATION OF ENERGY ETC.

The details as required under Section 134(3)(m) read with the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure - 2 and forms part of it.

DEPOSITS

The Company has neither invited nor accepted any deposits from the public.

AUDITORS

(a) Statutory Auditors and their Report

M/s Lodha & Co., Chartered Accountants, have been appointed as Auditors of the Company to hold the office from the conclusion of the 14^th Annual General Meeting (AGM) held on 6^th September 2014 until the conclusion of the 17^th AGM to be held in the year 2017, subject to ratification of their appointment by the members at the respective AGMs to be held in the years 2015 and 2016. Accordingly, being eligible, matter relating to the appointment of the Auditors will be placed for ratification by members at the forthcoming AGM. The observations of the Auditors in their Report on Accounts and the financial statements, read with relevant notes are self-explanatory.

(b) Secretarial Auditor and Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2015-16. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure -3. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

PARTICULARS OF REMUNERATION

Disclosure of the ratio of the remuneration of each director to the median employee’s remuneration and other requisite details pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended is annexed to this Report as Annexure - 4. Further, Particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules, form part of this report. However, in terms of provisions of Section 136 of the said Act, the Report and Accounts are being sent to all the members of the Company and others entitled thereto, excluding the said particulars of employees. Any member interested in obtaining such particulars may write to the Company Secretary. The said information is available for inspection at the Registered Office of the Company during working hours.

CORPORATE SOCIAL RESPONSIBILITY

Since inception, your Company considers itself a responsible corporate citizen and has been involved in undertaking projects and interventions for overall development and welfare of the society. It has been working closely with the farming community in areas of imparting agricultural knowledge and promoting preventive healthcare, rural development and livelihood enhancement projects.

The Company has requisite Corporate Social Responsibility (CSR) Policy in accordance with the provisions of the Companies Act, 2013 and rules made there under. The contents of the CSR Policy are disclosed on the website of the Company.

The Annual Report on the CSR activities undertaken by the Company during the financial year under review, in the prescribed format is annexed to this Report as Annexure-5

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the financial year under review, there were no significant and material orders passed by the regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.

CORPORATE GOVERNANCE-including details pertaining to Board Meetings, Nomination and Remuneration Policy, Performance Evaluation, Risk Management, Audit Committee and Vigil Mechanism.

Your Company reaffirms its commitment to good corporate governance practices. Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Management Discussion and Analysis, Corporate Governance Report and Auditors’ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Annual Report.

The Corporate Governance Report which forms part of this Report also covers the following:

(a) Particulars of the four Board Meetings held during the financial year under review.

(b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors.

(c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.

(d) The details with respect to Composition of Audit Committee and establishment of Vigil Mechanism.

(e) Details regarding Risk Management.

DIRECTORS’ RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Companies Act 2013, your Directors state that:-

(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the annual accounts have been prepared on a going concern basis;

(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and

(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.

CAUTIONARY STATEMENT

“Management’s Discussion & Analysis Report” contains forward looking statements, which may be identified by the use of the words in that direction, or connoting the same. All statements that address expectation or projections about the future, including, but not limited to statements about the Company’s strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The Company’s actual results, performance or achievements could thus differ materially from those projected in such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward - looking statements on the basis of any subsequent development, information or events.

ACKNOWLEDGEMENTS

Your Directors wish to acknowledge and place on record the commitment and dedication on the part of the employees of your Company in achieving good results.

Your Directors would also like to acknowledge and record their appreciation of the continued support and assistance received by the Company from its valued Customers, Dealers, Suppliers, Shareholders, Banks and various Central and State Government Agencies.

On behalf of the Board

Date : 2^nd August 2016 Bharat Hari Singhania

New Delhi Chairman

---

Mar 31, 2015

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report together with the Audited Financial Statements of the Company for the financial year ended 31st March, 2015.

Financial Results ( Rs in Crore)

Sales & Other Income 210.10

Profit before Finance Cost & Depreciation (PBIDT) 32.59

Profit before Depreciation 22.14

Profit Before Tax 17.19

Profit after Tax 12.22

Surplus brought forward 10.61

Amount available for appropriation 22.83

Appropriations

Dividend (incl. tax on Dividend) 1.30

General Reserve 7.24

Surplus carried to Balance Sheet 14.29

22.83

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs. 3 per Equity Share of Rs. 10 each (i.e. 30%) on the Equity Share Capital of Rs. 3.60 Crores for the financial year ended 31st March 2015. The Dividend outgo will be Rs. 1.30 Crores (inclusive of dividend tax of Rs. 0.22 Crores).

OPERATIONS

During the year ended 31st March, 2015, the Company achieved a turnover of Rs. 210.10 crores. EBIDTA of the Company increased by 19% to Rs. 32.59 crores from Rs. 27.30 crores and Profit Before Tax increased by 19% to Rs. 17.19 crores from Rs. 14.39 crores in the previous year.

While the Company continues to develop new hybrids and strengthen its marketing, the focus has been to increase its bottom line. This has been achieved by a better product mix as well as entering newer and more profitable segments. Launches of new innovative hybrids across field crops and vegetable segments have started showing some early positive signs. The Company lays emphasis on improving its seed production techniques as well as processing plant efficiencies. All these facts helped the Company to improve its overall performance.

RESEARCH AND DEVELOPMENT

The Company is conscious that an edge in this sector can only be achieved by developing technically superior and consumer friendly hybrids through a well- planned research programme and by continuously investing in research and development. Each crop segment typically has 5 or 6 leading hybrids that command majority of the market share. For any hybrid to be successful, it is important that it is significantly superior to the existing product in the market, both from the perspective of productivity as well as adaptability to flexible agronomic conditions. Your Company continues to focus on developing hybrids with these capabilities and characteristics through breeding, biotech R&D and transgenic research. This apart, your company has also developed key hybrids in vegetables and paddy through non transgenic methods like marker assisted breeding. Further, the biotechnology lab focuses on varieties tolerant to biotic and abiotic stresses and marker-assisted selection to speed up the breeding programme.

JK Agri Genetics invested 6% of its turnover in R&D activities and today produces and markets more than 80 of its internally developed hybrids in the areas of cotton, corn, paddy, sunflower, bajra, jowar, and in vegetable crops like okra, tomato and chillies. In the last few years the Company has established itself as one of the leading players in the area of vegetables and one of the top players in key crops like Okra and Tomato. While JK Agri Genetics'' Okra is in great demand, its newly introduced heat resistant tomato has done well in India as well as in our neighbouring countries.

LISTING

The Equity Shares of the Company have been voluntarily delisted from the Calcutta Stock Exchange Limited w.e.f. 21st August 2014. The Equity Shares of the Company, however, are continuing to be listed in BSE Ltd.

EXTRACT OF ANNUAL RETURN

An Extract of the Annual Return as on 31st March 2015 in the prescribed Form MGT-9 is attached as Annexure - 1 to this report and forms part of it.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans, guarantees or securities and investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the financial statements.

RELATED PARTY TRANSACTIONS

During the financial year ended 31st March 2015, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on arm''s length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the Listing Agreement.

Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material

in accordance with the policy of the Company on materiality of Related Party Transactions. In view of the above, disclosure in Form AOC-2 is not applicable. The Related Party Transaction Policy as approved by the Board is available on the website of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

With enactment of the Companies Act, 2013, the Independent Directors of the Company, namely - Shri J.R.C. Bhandari, Shri S.K. Khaitan, Shri S.K. Jhunjhunwala and Shri S.C. Sethi were appointed by the Members at the Annual General Meeting (AGM) held on 6th September 2014 under Section 149 of the Act for a term of five consecutive years commencing from the date of the AGM.

Shri Vikrampati Singhania retires by rotation and being eligible offers himself for re-appointment at the ensuing AGM.

The Board of Directors appointed Smt. Swati Singhania as an Additional Director of the Company pursuant to Section 161 of the Companies Act, 2013 (Act) effective 3rd February 2015. The Board of Directors also appointed Shri Abhimanyu Jhaver as an Additional Director pursuant to Section 161 of the Act effective 25th March 2015 and also appointed him as an Independent Director of the Company from the said date for a term of five consecutive years pursuant to the provisions of Section 149 of the Act and the Listing Agreement with Stock Exchange, subject to approval of the members of the Company at the ensuing AGM.

In terms of Section 161 of the Act, Smt. Swati Singhania and Shri Abhimanyu Jhaver will hold office as Directors up to the date of the ensuing AGM.

The Company has received from members notices in accordance with Section 160 of the Act proposing candidatures of Smt. Swati Singhania for appointment as Director, liable to retire by rotation and of Shri Abhimanyu Jhaver for appointment as Director as aforesaid.

The Board recommends appointments as aforesaid. All Independent Directors of the Company have given declarations that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and also Clause 49 of the Listing Agreement with the Stock Exchange.

Further, in terms of Section 203 of the Companies Act 2013, Shri S.K. Gupta, President & Director; Shri Amit Agarwal, Chief Financial Officer and Shri Anoop Singh Gusain, Company Secretary were appointed as Key Managerial Personnel of the Company on their existing terms and conditions.

CONSERVATION OF ENERGY ETC.

The details as required under Section 134(3)(m) read with the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure -2 and forms part of it.

DEPOSITS

The Company has neither invited nor accepted any deposits from the public.

AUDITORS

(a) Statutory Auditors and their Report

M/s Lodha & Co., Chartered Accountants, have been appointed as Auditors of the Company to hold the office from the conclusion of the 14th Annual General Meeting (AGM) held on 6th September 2014 until the conclusion of the 17th AGM to be held in the year 2017, subject to ratification of their appointment by the members at the respective AGMs to be held in the years 2015 and 2016. Accordingly, being eligible, matter relating to the appointment of the Auditors will be placed for ratification by members at the forthcoming AGM. The observations of the Auditors in their Report on Accounts and the financial statements, read with relevant notes are self-explanatory.

(b) Secretarial Auditor and Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2014-15. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure -3. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

(c) Cost Audit

The Cost Audit for the financial year ended 31st March 2014 was conducted by M/s Vijender Sharma & Co., Cost Accountants, Delhi and as required Cost Audit Report was duly filed with Ministry of Corporate Affairs, Government of India. Pursuant to the order of the Central Government dated 30th June 2014 and also revised order dated 31st December 2014, your Company did not fall within the ambit of Cost Audit for the financial year 2014-15.

PARTICULARS OF REMUNERATION

Information in accordance with the provisions of Section 197 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 regarding remuneration and other details is annexed to this Report. However, as per the provisions of Section 136 of the said Act, the Report and Accounts are being sent to all the members of the Company and others entitled thereto, excluding the aforesaid information. Any member interested in obtaining such particulars may write to the Company Secretary at the registered office of the Company. The said information is available for inspection at the Registered Office of the Company during working hours.

CORPORATE SOCIAL RESPONSIBILITY

Since inception, your Company considers itself a responsible corporate citizen and has been involved in undertaking projects and interventions for overall development and welfare of the society. It has been working closely with the farming community in areas of adult literacy, imparting agricultural knowledge and promoting preventive healthcare, rural development and livelihood enhancement projects.

The Company has framed Corporate Social Responsibility (CSR) Policy in accordance with the provisions of the Companies Act, 2013 and rules made thereunder. The contents of the CSR Policy are disclosed on the website of the Company.

The Annual Report on the CSR activities undertaken by the Company during the financial year under review, in the prescribed format is annexed to this Report as Annexure - 4.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

During the financial year under review, there were no significant and material orders passed by the regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.

CORPORATE GOVERNANCE - including details pertaining to Board Meetings, Nomination and Remuneration Policy, Performance Evaluation, Risk Management, Audit Committee and Vigil Mechanism.

Your Company reaffirms its commitment to good corporate governance practices. Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange, a Management Discussion and Analysis, Corporate Governance Report and Auditors'' Certificate regarding compliance of conditions of Corporate Governance are made a part of this Annual Report. The Corporate Governance Report which forms part of this Report also covers the following:

a) Particulars of the four Board Meetings held during the financial year under review.

b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors.

c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.

d) The details with respect to composition of Audit Committee and establishment of Vigil Mechanism.

e) Details regarding Risk Management

DIRECTORS'' RESPONSIBILITY STATEMENT

As required under Section 134(3)(c) of the Companies Act 2013, your Directors state that:-

a. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

b. the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

c. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. the annual accounts have been prepared on a going concern basis;

e. the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and

f. the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

Your Directors wish to acknowledge and place on record the commitment and dedication on the part of the employees of your Company in achieving good results.

Your Directors would also like to acknowledge and record their appreciation of the continued support and assistance received by the Company from its valued Customers, Dealers, Suppliers, Shareholders, Banks and various Central and State Government Agencies.

On behalf of the Board

Date: 7th August 2015 (Bharat Hari Singhania) New Delhi Chairman

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Mar 31, 2014

TO THE MEMBERS

The Directors have pleasure in presenting the Annual Report together with the Audited Accounts of the Company for the financial year ended 31st March, 2014.

Financial results ( Rs. in Crore)

Sales & Other Income 188.84

Profit before Finance Cost & Depreciation

(PBIDT) 27.30

Profit before Depreciation 17.17

Profit after Tax 11.86

Surplus brought forward 4.80

Amount available for appropriation 16.66

Appropriations

Dividend (incl. tax on Dividend) 1.05

General Reserve 5.00

Surplus carried to Balance Sheet 10.61

16.66

DIVIDEND

Your Directors are pleased to recommend a maiden dividend of Rs. 2.5 per Equity Share of Rs. 10 each (i.e. 25%) on the Equity Share Capital of Rs. 3.60 Crores. The Dividend outgo will be Rs. 1.05 Crores (inclusive of dividend tax of Rs. 0.15 Crores).

LISTING

As the members are aware, 36,03,906 Equity Shares of Rs. 10 each of the Company were listed with BSE Ltd. and the Calcutta Stock Exchange Ltd. pursuant to their respective approvals dated 26th September 2013 and 24th September 2013.

OPERATIONS

During the year ended 31st March, 2014 the Company achieved a turnover of Rs. 188.84 Crores. EBIDTA of the Company increased by 26% from Rs. 21.67 Crores to Rs. 27.30 Crores and Profit Before Tax increased by 36% from Rs. 10.58 Crores to Rs. 14.39 Crores.

The Company continues to develop new hybrids and also increase its distribution depth and width across the country. The endeavour of the marketing team is to increase penetration of the Company''s hybrids in the market by demonstrating its superiority and benefits to the farming community. The Company is pursuing innovative farm productivity enhancing techniques and is working closely with its increasing network of channel partners to reach the target customers. Continuous emphasis on distribution, logistics as well as better management of seed production techniques, is helping the company drive efficiencies.

Introduction of new products both for Kharif and Rabi seasons as well as introduction of newer products in vegetable seeds is helping the company gain momen- tum. The Company continues to focus on field crops like Cotton, Paddy, Maize, Bajra and Jowar, apart from Okra, Tomato and Chillies in the vegetable segment.

RESEARCH AND DEVELOPMENT

Your Company continues to strengthen its base in developing its future capabilities and competencies in breeding, biotech R&D and transgenic research. Your company believes that in the competitive arena this capability will help differentiate the company and its products from others. The dedicated team of Scientists is working closely with a number of National & International Research Institutes, e.g. ICRISAT, CIMMYT, IRRI, etc.

Apart from working on transgenic technology, the Company has been working on development of hybrids through non-transgenic methods like marker assisted breeding, etc. This has led to development of value added products in field crops as well as vegetables. Developed using molecular markers and due to its uniqueness in tolerating multiple abiotic stresses, the launch of its new rice hybrid is an important milestone for the company. A number of products in Cotton, Maize and Bajra are also undergoing trials. Products in Okra and Tomato are also showing great potential due to their ability to tolerate diseases. Such multi-pronged research is creating the platform for your Company''s growth in the coming years.

INDUSTRY OVERVIEW

Indian agriculture has come a long way since the Green Revolution of the late 1960s. India presents an interesting scenario: both GDP and food grain production in the country have risen faster than the growth in population over the last 50 years. However, now the situation is becoming alarming as the agricultural growth has been static in recent years. The enormity of the problem is indicated by the fact that during the 7 year period 2006-07 to 2012-13, our food grain production has grown at a CAGR of only 2.4%. The total estimated demand for food grains will touch 298 million tons by 2020. To achieve the forgoing amount of production the compounded annual growth rate of 2.2% in agricultural sector has to be maintained over next 7 years. For this, agricultural growth needs to be in the forefront of our national GDP growth agenda.

Indian seed Industry is one of the most mature and vibrant ones in the world, currently occupying 6th position with nearly Rs. 12,000 Crore turnover. During the past 5 years the Indian Seed Industry has been growing at a CAGR of 10% compared to global growth of 6-7%. In value terms the major growth has come from increased adoption of BT cotton hybrids, single cross corn hybrids and hybrid vegetables. The volume growth has mainly come through increased Seed Replacement Rates in crops like Paddy and Wheat.

India has the second largest agricultural land and has favourable climatic conditions to support this growth. It has over 15 major climatic zones and possesses 46 different soil types. India is the largest producer of pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds. All in all with its land resources and the growing role of farm input companies, India will continue to play a major role in world agriculture.

OPPORTUNITIES, THREATS & CONCERNS

The large population of India is the key driver of demand for agricultural products. Rising urban and rural incomes have also aided demand growth. The growth of organised procurement and retail as well as growing consumption of packaged and processed food would also fuel demand. The potential to not only export processed food but also the improvement in infrastructure is allowing fresh farm produce to be exported to other countries. Apart from being one of the largest consumers of agricultural products, India is also among the top 10 leading exporters

of agricultural products in the world. The continued focus and incentives under various national and state Government schemes, like Rashtriya Krishi Vikas Yojana as well as focus for improvement in farm productivity under the aegis of National Food Security Mission is helping increase production and productivity. Improved rural lending facilities as well as improved infrastructure to store and distribute produce will also help this process.

While there are number of opportunities, they continue to be inherent concerns and threats for the seeds industry. The vagaries of weather and inconsistent monsoon across the country continue to be the major challenge. The growing unavailability of water either through rivers or bore-wells is also threatening productivity. Pest attacks and rising temperatures also have an impact on agricultural production. The inconsistent Government policies and regulations on GM crops is also a matter of concern.

HUMAN RESOURCE DEVELOPMENT

The real strength of your Company lies in the hands of its teams and people. The backbone of the Company, whether be it in R&D or in the field, is based on the dedication of its teams. The company has adopted a robust, progressive and dynamic culture and focuses on organisational development, engagement and Talent Management of its employees through a structured mechanism for identification, reviewing, implementing and rewarding the identified talent. The Company identifies "High Talent" through assessment centres and provides high potential employees a cross-functional exposure creating a growth path for them. People are sponsored to various internal and external training programmes including leading Business schools to hone their technical as well as general management skills. The Company also runs a special programme under the group''s "Krishna-Arjuna" initiative which serves as the mentoring and guidance platform.

INTERNAL CONTROL SYSTEMS

The Company has a structured Internal Audit system. All the functions of the Company are reviewed periodically. The system ensures that the Company achieves its targets and complies with the applicable laws and regulations and checks efficiency of operations and reliability of financial reporting.

Financial Statements on quarterly and on annual basis are placed before the Audit Committee consisting

of Independent Directors before submission to the Board for approval. Audit Committee meets every quarter to review the Audit Report and action taken on the findings of Internal Audit Reports are discussed and wherever required action is taken to enhance effectiveness of the internal control system.

DIRECTORS

Shri Bharat Hari Singhania and Dr. Raghupati Singhania who were appointed as Directors of the Company w.e.f. 30th March 2013, in the casual vacancy caused by resignation of Shri A.K. Kinra and Shri P.K. Rustagi respectively pursuant to Section 262 of the Companies Act, 1956 retire by rotation and being eligible offer themselves for re-appointment at the ensuing Annual General Meeting (AGM).

The Board of Directors appointed Shri S.K. Gupta as an Additional Director pursuant to Section 161 of the Companies Act, 2013 and also appointed him as Whole-time Director with the designation ''President & Director'' for a period of three years w.e.f. 23rd October, 2013 subject to the approval of shareholders and other necessary approvals as may be required. In terms of the said Section Shri S.K. Gupta will hold office as Director upto the date of the ensuing AGM.

The Company has received from members, notices in accordance with Section 160 of the Companies Act, 2013 proposing candidatures of Shri Bharat Hari Singhania, Dr. Raghupati Singhania and Shri S.K. Gupta for appointment as Directors as aforesaid.

Shri JRC Bhandari, Shri S.C. Sethi, Shri S.K. Khaitan and Shri S.K. Jhunjhunwala whose period of office is liable to determination by retirement of Directors by rotation are proposed to be appointed as Independent Directors of the Company, each for a term of five consecutive years commencing from the date of ensuing AGM. The Company has also received declarations from the said directors about their independence pursuant to Section 149 of the Companies Act, 2013.

The Board recommends appointments as aforesaid.

AUDITORS

M/s Lodha & Co., Chartered Accountants, Auditors of the Company, retire and are eligible for re- appointment. The observations of the Auditors in their report on Accounts read with the relevant notes are self-explanatory.

COST AUDIT

The Cost Audit for the financial year ended 31st March 2013 was conducted by M/s Vijender Sharma & Co., Cost Accountants, Delhi and as required Cost Audit Report was duly filed with Ministry of Corporate Affairs, Government of India. The Audit of the cost accounts of the Company for the financial year ended 31st March 2014 is being conducted by the said firm and the Report will also be filed.

PARTICULARS OF EMPLOYEES

Particulars of employees required under Section 217 (2A) of the Companies Act, 1956 are given in the enclosed statement forming part of the Report. However, as per the provisions of Section 219 (1) (b) (IV) of the Companies Act, 1956, the Report and Accounts are being sent to all shareholders of the Company excluding aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary at the Company''s New Delhi address

CORPORATE SOCIAL RESPONSIBILITY

The Company has always been life sensitive towards its social responsibility and has been undertaking various programmes like, Adult Literacy, Medical Camp and Health awareness, etc. Pursuant to the provisions of the Companies Act, 2013 and Rules thereto, a Corporate Social Responsibility (CSR) Committee of the Board has been constituted to monitor CSR related activities in terms of the said provisions and Rules, comprising of Shri Vikrampati Singhania (Chairman of the Committee), Shri S.K. Jhunjhunwala and Shri S.K. Gupta, as members.

CORPORATE GOVERNANCE

Your Company reaffirms its commitment to good corporate governance practices. Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis, Corporate Governance Report and Auditors'' Certificate regarding compliance of conditions of Corporate Governance are made a part of this Annual Report.

DIRECTORS'' RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Compa- nies Act, 1956, your Directors state that:

(i) in the preparation of Annual Accounts, the applicable accounting standards have been

followed along with proper explanation relating to material departures;

(ii) the accounting policies selected and applied are consistent and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

(iii) proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the said Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv) the annual accounts have been prepared on a going concern basis.

CAUTIONARY STATEMENT

"Management''s Discussion and Analysis Report" contains forward looking statements, which may be identified by the use of the words in that direction, or connoting the same. All statements that address expectation or projections about the future, including, but not limited to statements about the Company''s strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The Company''s actual results, performance or achievements could thus differ materially from those projected in such forward- looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward - looking statements on the basis of any subsequent development, information or events.

ACKNOWLEDGEMENTS

Your Directors wish to acknowledge and place on record the commitment and dedication on the part of the employees of your Company in achieving good results.

Your Directors would also like to acknowledge and record their appreciation of the continued support and assistance received by the Company from its valued Customers, Dealers, Suppliers, Shareholders, Banks and various Central and State Government Agencies.

On behalf of the Board Date: 27 th May 2014 Bharat Hari Singhania New Delhi Chairman