Notes to Accounts of JK Agri Genetics Ltd.

Mar 31, 2025

(xv) Foreign currency transactions and translation

Financial statements have been presented in Indian Rupees(''), which is the Company’s functional and
presentation currency. A company''s functional currency is that of the primary economic environment in
which the company operates.

Foreign currency transactions are translated into the functional currency using the exchange rate at the
date of the transaction. Foreign exchange gains/ losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated in foreign currencies at year end
exchange rates are recognised in the Statement of Profit and Loss.

1.4 Significant accounting judgements, estimates and assumptions:

The Preparation of these financial statements requires managements judgements, estimates and
assumptions that affect the application of accounting policies, the accounting disclosures made and the
reported amounts of assets, liabilities, income and expenses.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates
are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to
such revisions.

f) Rights and preferences attached to the equity shares

i. The Company has only one class of equity share having par value of ''10 per share. Each holder of equity
share is entitled to one vote per share.

ii. In the event of winding up the equity shareholders will be entitled to receive remaining assets of the Com¬
pany, after distribution of all preferential amounts. The distribution will be in proportionate to the number of
equity shares held by the shareholders.

iii. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing
Annual General Meeting except in the case of interim dividend.

Note No. 34

Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for '' 673.32 lacs (Previous Year
'' 652.82 lacs).

(ii) Income Tax (matters in appeals) of '' 342.60 lacs (Previous year '' 342.60 lacs ).

iii) Guarantees issued by bank on behalf of the Company as on March 31, 2025 is ? 4.00 lacs (Previous year
? 4.00 lacs)

Note No. 35

Company acted as a facilitator for Schedule Banks '' 5404.93 lacs (Previous year '' 5974.65 lacs) for loans
provided to the farmers, grouped under trade payables / trade advances.

Note No. 38

Income tax calculation has been made considering certain expenses/adjustments available as assessed by the
management.

Note No. 39

Based on information available with the Company in respect of MSME (‘The Micro Small & Medium Enterprises
Development Act 2006''). The details are as under:

i) Principal and Interest amount due and remaining unpaid as at 31^st March 2025 '' Nil (previous year '' Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid
but beyond the appointed day during the year) but without adding the interest specified - Nil (previous year
- Nil).

iv) Payment made beyond the appointed day during the year - Nil (previous year - Nil).

v) Interest Accrued and unpaid as at 31^st March 2025 - Nil (previous year - Nil).

Note No. 40

Foreign Currency exposure not hedged as at Balance sheet Date:

Net receivable '' Nil - US$ Nil (Previous year '' Nil Lacs - US$ Nil), Net payable '' Nil (US$ Nil) (Previous year
'' Nil lacs (US$ Nil) ) and Buyers Credit '' Nil (Previous year Nil)

Note No. 47

Financial Risk Management Objectives and Policies.

The Company’s Financial Risk Management is an integral part of how to plan and execute its Business Strategies.
The Company’s Financial Risk Management Policy is set by the Board. The Company’s activities are exposed
to a variety of financial risks from its operations. The key financial risks include market risk (including foreign
currency risk, interest rate risk and commodity risk etc.), credit risk and liquidity risk.

47.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash flows that may results
from change in the price of a financial instrument. The value of a financial instrument may change as result of
change in the interest rates, foreign currency exchange rates, equity prices and other market changes may affect
market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments and
deposits, foreign currency receivables, payables and loans and borrowings. Market risk comprises mainly three
types of risk:

Interest rate risk, currency risk and other price risk such as equity price risk and commodity risk.

The Company has an elaborate risk management system to inform Board Members about risk management and
minimization procedures.

a) Foreign Currency Risk :

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company makes certain imports and exports in foreign currency &
therefore is exposed to Foreign Exchange Risk. The Company evaluates exchange rate exposure arising from
foreign currency transactions. The Company has not undertaken any hedging activities for foreign exchange.

ine assumed movement in oasis points tor tne interest rate sensitivity analysis is oasea on tne currently
observable market environment.

(c) Commodity Price Risk and Sensitivity:

Commodity price fluctuations can have an impact on the demand of seeds for particular crop. Therefore, we
track the commodity price movements very closely and take advance production decisions accordingly.

In addition to the above, Company also maintains a strategic buffer inventory to ensure that such disruptions do
not impact the business significantly.

47.2 Credit Risk:

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer
contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily
trade receivables).

47.2a Trade Receivables: Customer credit risk is managed based on company’s established policy, procedures
and controls. The company assesses the credit quality of the counterparties, taking into account their financial
position, past experience and other factors.

Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company
has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are
regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting
date on an individual basis. However a large number of minor receivables are grouped into homogenous groups
and assessed for impairment collectively.

47.2b. Advance to suppliers are net of provision/loss allowances made for Doubtful advances of '' 39.91 lacs
(Previous year '' 39.91 lacs). (Refer note 15)

47.2c. ECL impairment loss allowance (or reversal) recognized during the period as income/ expense in the
Statement of Profit and Loss under the head ‘Other expenses’. The balance sheet presentation for financial
instruments is described below:

i) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross
carrying amount.

ii) Financial Assets includes '' 1823.61 lacs towards Trade Receivables and Security Deposit of '' 121.68 lacs
shown under the heading “Deposit with Government Authorities and others” from Rajasthan State Seed
Corporation (RSSC). In earlier years, the company has filed claim before the arbitral tribunal against RSSC
which was not allowed on technical grounds of limitation without examining the matter on merits. The company
has filed an application under sec 34 of the Arbitration and Conciliation Act 1996 challenging the said order of
the arbitral tribunal before the commercial court Jaipur which have been accepted and proceedings are going
on. During previous year RSSC filed Special Leave Petition (SLP) in the Hon’ble Supreme Court against the
orders of High Court of Rajasthan in miscellaneous application which was dismissed in our favour. Based on
the legal opinion, the company has good case for realisation of the recovery of above amount. Hence, the
stated outstanding amount have considered good and recoverable by the management.

iii) The Company has initiated legal proceedings against Uttar Pradesh Seed Development Corporation
(UPSDC) and the Department Of Agriculture, Government of UP for recovery of the overdue outstanding of
'' 952.00 lacs out of which '' 258.66 lacs was received (includes '' 54.87 Lacs received during current year).
The current outstanding is '' 693.34 lacs (Previous year '' 748.21 lacs) for which necessary provision were
made under expected credit loss allowance in the books of accounts.

The Company has filed an application under the Arbitration and Conciliation Act 1996 for appointment of
Arbitrator for recovery of the aforesaid overdue amount from UPSDC. Hon’ble High court did not allow
the application and held that the dispute is not covered by the arbitration. As such the Company had
filed a separate writ petition in 2019 before the Hon’ble High court Lucknow against Uttar Pradesh Seed
Development Corporation (UPSDC) and the Department Of Agriculture, Government of UP for recovery of
the overdue outstanding of '' 952 lacs basing on the facts of the case and other circumstances took place
after filing the writ petition, the company has good chance of recovery.

47.2d. Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/
reconciliation.

47.3 Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. when both normal
and stressed conditions, without incurring unacceptable losses or risking damages to the company’s reputation.

Maturity Profile of Financial Liabilities:

The following Table provides undiscounted cash flows towards financial liabilities into relevant maturity based on
the remaining period at the balance sheet to the contractual maturity date

Note No. 48

Capital Risk Management:

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. The Company’s primary objective when managing capital is to
ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability
to continue as a going concern in order to support its business and provide maximum returns for shareholders.
The Company also proposes to maintain an optimal structure to reduce the cost of capital. For the purpose of
the Company’s capital management, capital includes issued capital, securities premium and all other equity
reserves. Net debt includes, interest bearing loans and borrowings, less cash and cash equivalents.

Fair Valuation Techniques:

The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best
and most relevant data available. The Fair Values of the Financial Assets and Liabilities are included at the
amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances,
trade receivables, trade payables and other financial liability at carrying value because their carrying amounts
are a reasonable approximation of the fair values due to their short term nature.

Fair value of Investments in quoted mutual funds are based on quoted market price at the reporting date.

The Company does not have any asset or liabilities that can be grouped into Level 1 to Level 3 for Fair value
measurement

Note No. 53

Impairment Testing of Intangible Assets

The Brands are considered to have an Indefinite useful life on the basis of the expected longevity and tested for
impairment annually, in case there is any indication for impairment of carrying value. Based on internal analysis
and relevant factors, the Management is of the opinion that, the brand is expected to continue to generate cash
flows for an undetermined period.

Note No. 54

Exceptional Items include net gain on sale of agricultural land of '' 6120.97 Lacs and this is to be read with Note
No 33

Note No. 56

Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide

Notification dated March 24, 2021:

a. There are no proceedings which have been initiated or pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

b. The Company has not been declared as Willful Defaulter by any Bank or Financial Institution or other Lender.

c. During the year, the Company does not have any transactions with the companies struck off under section
248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

d. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.

e. During the financial year ended March 31,2025, other than the transactions undertaken in the normal course
of business and in accordance with extant regulatory guidelines as applicable.

(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the un¬
derstanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
or the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Com¬
pany from nay person or entity, including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether,direclty or indirectly, lend or
invest in other persons or entities indentified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

f. The Company does not have any transactions not recroded in the books of accounts that has been surren¬
dered or discarded as income during the year in the tax assessments under the Income Tax Act,1961 (such
as, search or survey or nay other relevant provisions of the Income Tax Act, 1961). Also, there are nil previ¬
ously unrecorded income and related assets.

g. No schme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of
the Companies Act, 2013 during the year ended March 31,2025.

h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

i. The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMP’s
and the related parties (As per Companies Act, 2013), which are repayable on demand or without specifying
any terms or period of repayments.

Note No. 57

Previous year’s figures have been re-grouped/re-classified/recast wherever necessary.

As per our report of even date.

For Lodha & Co LLP G.SRAVANA KUMAR DR. RAGHUPATI SINGHANIA Directors:

Chartered Accountants Chief Financial Officer Chairman (DIN: 00036129) AJAY SRIVASTAVA

(DIN: 00049912)

SHYAMAL KUMAR ANOOP SINGH GUSAIN VIKRAMPATI SINGHANIA KALPATARU TRIPATHY

Partner Company Secretary Managing Director (DIN: 00040659) (DIN: 00865794)

FIRM REGISTRATION NO. 301051E/E300284 MUDIT KUMAR

Membership No. 509325 KULDEEP KUMAR PANDIT (DIN: 00141585)

New Delhi, 16 May, 2025 President & Director (DIN: 08381208)

---

Mar 31, 2024

f) Rights and preferences attached to the equity shares

i. The Company has only one class of equity share having par value of ''10 per share. Each holder of equity share is entitled to one vote per share.

ii. In the event of winding up the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportionate to the number of equity shares held by the shareholders.

iii. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting except in the case of interim dividend.

1. Term Loan from Bank '' 1118.06 lacs taken from Bank under Emergency Credit Line Guarantee Scheme (ECLGS) secured by second pari passu charges on current assets and immovable assets (Collateral 100% Credit gurantee by National Credit Gurantee Trustee Company Ltd (NCGTC)). Repayable in 35 equal monthly installments.

# Working Capital borrowings are secured by hypothecation of entire current assets viz stocks and book debts etc., both present and future, of the Company and by a second charge on entire fixed assets of the Company including land at Ranpur, Kota, (Rajasthan) and excluding certain specified Fixed assets.

The periodical returns/ statement filed by the Company with respect to working capital taken from banks on the basis of security of current assets, are in agreement with books of accounts.

Note No. 33

Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for '' 652.82 lacs (Previous Year '' 687.46 lacs).

(ii) Income Tax (matters in appeals) of '' 342.60 lacs (Previous year '' 342.60 lacs ).

(iii) Guarantees issued by bank on behalf of the Company as on March 31,2024 is '' 4.00 lacs (Previous year '' 2.00 lacs)

Note No. 34

Company acted as a facilitator for Schedule Banks ''5974.65 lacs (Previous year '' 4903.71 lacs) for loans provided to the farmers, grouped under trade payables / trade advances.

Note No. 35

Estimated amount of contracts net of advances amounting to '' NIL (Previous year '' 4.00 lacs) remaing to be executed on capital account.

Note No. 36

Expenditure on Research and Development (R&D) activities during the year:

Note No. 38

Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

Note No. 39

Based on information available with the Company in respect of MSME (‘The Micro Small & Medium Enterprises Development Act 2006’). The details are as under:

i) Principal and Interest amount due and remaining unpaid as at 31^st March 2024 '' Nil (previous year '' Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (previous year - Nil).

iv) Payment made beyond the appointed day during the year - Nil (previous year - Nil).

v) Interest Accrued and unpaid as at 31^st March 2024 - Nil (previous year - Nil).

Note No. 40

Foreign Currency exposure not hedged as at Balance sheet Date:

Net receivable '' Nil - US$ Nil (Previous year '' 80.44 Lacs - US$ 97872.86), Net payable '' Nil (US$ Nil) (Previous year '' 94.37 lacs (Euro 105920) ) and Buyers Credit '' Nil (Previous year Nil)

Note No. 41

Retirement benefit obligations:

A Expenses Recognised for Defined Contribution Plan

Note No. 42 Segment Information:

The Company is engaged primarily into Agri & Allied products. The Company has only one business segment as identified by management namely “Agri & Allied products”. Segments have been identified taking into account nature of product and differential risk and returns of the segment.

Note No. 45 Lease

The Company has adopted Ind AS 116 “Leases” effective 1^st April 2019 as notified by the Ministry of Corporate Affairs (MCA) and applied the Standard to using the simplified approch. This has resulted in recognising right-of-use assets and corresponding lease liabilities.

Note No. 47

Financial Risk Management Objectives and Policies.

The Company’s Financial Risk Management is an integral part of how to plan and execute its Business Strategies. The Company’s Financial Risk Management Policy is set by the Board. The Company’s activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk (including foreign currency risk, interest rate risk and commodity risk etc.), credit risk and liquidity risk.

47.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash flows that may results from change in the price of a financial instrument. The value of a financial instrument may change as result of change in the interest rates, foreign currency exchange rates, equity prices and other market changes may affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments and deposits, foreign currency receivables, payables and loans and borrowings. Market risk comprises mainly three types of risk:

Interest rate risk, currency risk and other price risk such as equity price risk and commodity risk.

The Company has an elaborate risk management system to inform Board Members about risk management and minimization procedures.

a) Foreign Currency Risk :

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company makes certain imports and exports in foreign currency & therefore is exposed to Foreign Exchange Risk. The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company has undertaken hedging activities for foreign exchange.

b) Interest Rate Risk :-

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings. The following Table shows the blend of Company’s Fixed & Floating Rate Borrowings in Indian Rupee:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

(c) Commodity Price Risk and Sensitivity:

Commodity price fluctuations can have an impact on the demand of seeds for particular crop. Therefore, we track the commodity price movements very closely and take advance production decisions accordingly.

In addition to the above, Company also maintains a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.

47.2 Credit Risk:

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).

47.2a Trade Receivables: Customer credit risk is managed based on company’s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting date on an individual basis. However a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

47.2b. Advance to suppliers are net of provision/loss allowances made for Doubtful advances of '' 39.91 lacs (Previous year '' 34.12 lacs).

47.2c. ECL impairment loss allowance (or reversal) recognized during the period as income/ expense in the Statement of Profit and Loss under the head ‘Other expenses’. The balance sheet presentation for financial instruments is described below:

i) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part

of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

ii) Financial Assets includes '' 1823.61 lacs towards Trade Receivables and Security Deposit of '' 121.68 lacs shown under the heading “Deposit with Government Authorities and others” from Rajasthan State Seed Corporation (RSSC). The company has filed claim before the arbitral tribunal against RSSC which was not allowed on technical grounds of limitation without examining the matter on merits. The company has filed an application under sec 34 of the Arbitration and Conciliation Act 1996 challenging the said order of the arbitral tribunal before the commercial court Jaipur. During the year RSSC filed Special Leave Petition (SLP) in the Hon’ble Supreme Court against the orders of High Court of Rajasthan in miscellaneous application which was dismissed in our favour. Based on the legal opinion, the company has good case for realisation of the recovery of above amount.

iii) The Company has initiated legal proceedings against Uttar Pradesh Seed Development Corporation (UPSDC) and the Department Of Agriculture, Government of UP for recovery of the overdue outstanding of '' 952.00 lacs out of which '' 203.79 lacs was received during previous years. The current outstanding is '' 748.21 lacs (Previous year '' 782.21 lacs) for which necessary provision were made under expected credit loss allowance in the books of accounts.

The Company has filed an application under the Arbitration and Conciliation Act 1996 for appointment of Arbitrator for recovery of the aforesaid overdue amount from UPSDC. Hon’ble High court did not allow the application and held that the dispute is not covered by the arbitration. As such the Company had filed a separate writ petition in 2019 before the Hon’ble High court Lucknow against Uttar Pradesh Seed Development Corporation (UPSDC) and the Department Of Agriculture, Government of UP for recovery of the overdue outstanding of '' 952 lacs lacs basing on the facts of the case and other circumstances took place after filing the writ petition, the company has good chance of recovery.

An amount of '' 54.87 Lacs, since been received during the month of April 2024 .

47.2d. Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/ reconciliation.

47.3 Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. when both normal and stressed conditions, without incurring unacceptable losses or risking damages to the company’s reputation.

Maturity Profile of Financial Liabilities:

The following Table provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

Note No. 48

Capital Risk Management:

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal structure to reduce the cost of capital. For the purpose of the Company’s capital management, capital includes issued capital, securities premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, less cash and cash equivalents.

Fair Valuation Techniques:

The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best and most relevant data available. The Fair Values of the Financial Assets and Liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, trade payables and other financial liability at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

Fair value of Investments in quoted mutual funds are based on quoted market price at the reporting date.

The Company does not have any asset or liabilities that can be grouped into Level 1 to Level 3 for Fair value measurement

Note No. 53

Impairment Testing of Intangible Assets

The Brands are considered to have an Indefinite useful life on the basis of the expected longevity and tested for impairment annually, in case there is any indication for impairment of carrying value. Based on internal analysis and relevant factors, the Management is of the opinion that, the brand is expected to continue to generate cash flows for an undetermined period.

Note No. 55

Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide

Notification dated March 24, 2021:

a. There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

b. The Company has not been declared as Willful Defaulter by any Bank or Financial Institution or other Lender

c. During the year, the Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

d. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

e. During the financial year ended March 31,2024, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

f. The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets.

g. No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013 during the year ended March 31,2024.

h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

i. The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013), which are repayable on demand or without specifiying any terms or period of repayments.

Note No. 56

Previous year’s figures have been re-grouped/re-classified/recast wherever necessary.

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Mar 31, 2018

1.1 The Company overview:

JK Agri Genetics Limited (JKAGL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the Bombay Stock Exchange (‘BSE’), in India. The Registered office of the company is situated at 7, Council House Street, Kolkata-700 001, West Bengal (India). JKAGL is engaged in research and development, production, processing and marketing of Cotton, Maize, Paddy, Pearl Millet, Sorghum, Mustard, Wheat, Sorghum Sudan grass, Fodder beet, Tomato, Okra, Chillies and other vegetable seeds. The company’s manufacturing facilities are located at Survey no. 509/2, Village: Gundlapochampally, District: Ranga Reddy - 501401 Telangana and at Ranpur, Kota, Rajasthan These financial statements were approved and adopted by board of directors of the Company in their meeting held on 7^th May, 2018.

Note:

The Company has elected to measure the items of Property, Plant and Equipments at their fair value at the date of transition. (Refer Note No.58)

On Lease hold premises

@ Net carrying Amount of Rs. 99.64 lacs as at 31.03.2018 (Previous year Rs. 105.21 lacs).

# Net carrying Amount of Rs. 624.89 lacs as at 31.03.2018 (Previous year Rs. 742.83 lacs).

Note:

The Company has elected to measure the items of Other Intangible Assets at their Previous GAAP carrying value at the date of transition to IND AS.

@The indefinite life intangible assets (J.K. SEEDS - Brand), no indication of impairment noticed (Refer Note no. 58)

# Being amortized over a period of 5 Years, being useful life as determined.

2. Terms/right attached to equity shares:

a. The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

b. In the event of winding up the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportionate to the number of equity shares held by the shareholders.

c. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting except in the case of interim dividend.

Notes:

1. Term loan from Bank of Rs. 450 lacs taken from bank is secured by second charge on the entire current assets of the company viz., stocks & book debts, etc., both present and future, first charge on the entire Property, Plant and Equipments of the Company including land at Dundigal village, Telangana and Land at Ranpur, Kota Rajasthan, excluding certain specified assets. It is further secured by Hypothecation of entire intangible assets of the Company including the Brand and Patents. Repayable in 3 Equal quarterly Installments during FY 2018-19.

2. Term loan others of Rs. 107.15 lacs (net of Rs. 18.03 lacs for deferred Government grants) taken from Biotechnology Industry Research Assistance Council (BIRAC) is secured by First Charge on movable properties of the Company including its movable Plant and Machinery, spares, tools and accessories and other movables, both present and future (Except Book debts) and is repayable in 9 equal half yearly installments by 2022-23.

3. Unsecured Loan of Rs. 249.24 lacs (Net of Rs. 45.48 lacs for deferred Government Grants) taken from CSIR is repayable in 4 equal yearly installments by 2021-22.

# Working Capital borrowings are secured by hypothecation of entire current assets viz stocks and book debts etc., both present and future, of the Company and by a second charge on entire fixed assets of the Company including land at Dundigal village, Telangana and Ranpur, Kota, (Rajasthan) and excluding certain specified Fixed assets.

Note No. 3

Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for Rs. 239.11 lacs (Net of Rs. 99.94 lacs indemnified by another party) (Previous Year Rs. 134.42 lacs (Net of Rs. 99.00 lacs indemnified by another party)).

(ii) Income Tax (matters in appeals) of Rs. 221.43 lacs (Previous year Rs. 560.71 lacs). In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

Note No. 4

Company acted as a facilitator and has extended guarantees to Yes Bank Limited Rs. 3707.95 lacs (Previous year Rs. 3097.36 lacs) for loans provided to the farmers, grouped under trade payables / trade advances.

Note No. 5

Pursuant to the Scheme of Arrangement and Demerger transfer of authorized Capital of Rs. 4250 lacs divided into 50,00,000 preference share capital of Rs. 85/- each is pending for transfer from Florence Investech Limited to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the Scheme. In the absence of receipt of requisite approvals, it is been decided not to pursue this matter any further.

Note No. 6

Estimated amount of contracts net of advances amounting to Rs. 6.18 lacs (Previous year Rs. Nil) remaining to be executed on capital account.

Note No. 7

The Company has challenged the notice of the Income Tax assessing officer for reopening of the income tax assessment order for the year ended 31.03.2009 (Assessment year 2009-10), in High Court of Calcutta. Hon’ble High court of Calcutta vide its order dated 26.03.2015 has granted interim stay.

Note No. 8

a) Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

b) The Company has filed a Writ Petition before the Hon’ble High Court of Calcutta seeking directions for acceptance of revised Income Tax returns by the Income Tax Department, ("the Department") for the Financial years 2005-06 to 2010-11, which had been treated as nonest by the department vide its Notice dated 17th February, 2014. The above revised returns were filed by the Company with the Department pursuant to the Scheme of Arrangement and Demerger (the Scheme) approved by Hon''ble High court of Calcutta on 17th October, 2012, giving impact of the Scheme from 1st April, 2005, during the financial year 2012-13.

Note No. 9

Based on information available with the Company in respect of MSME (‘The Micro Small & Medium Enterprises Development Act 2006’). The details are as under:

i) Principal and Interest amount due and remaining unpaid as at 31st March 2018 Rs. Nil (previous year Rs. Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (previous year - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified - Nil (previous year - Nil).

iv) Payment made beyond the appointed day during the year - Nil (previous year - Nil).

v) Interest Accrued and unpaid as at 31st March 2018- Nil (previous year - Nil).

Note No. 10

Foreign Currency exposure not hedged as at Balance sheet Date:

Net receivable Rs. 687.77 lacs - US $ 216712 & AED 3082800 (Previous year Rs. 113.73 lacs - US $ 175400), Net payable Rs. 0.01 lacs - Euro 20 (''0.01 lacs - Euro 20) and Buyers Credit of Rs. 117.18 lacs - US $ 180170 (Previous year Nil)

Note No. 11 Segment Information:

The Company is engaged primarily into Agri & Allied products. The Company has only one business segment as identified by management namely “Agri & Allied products”. Segments have been identified taking into account nature of product and differential risk and returns of the segment.

Note No. 12

Royalty payable on BG II Cotton Sales has been provided as per the Central Government Notification No.S.O.686(E) Dated 8th March, 2016.

Note No. 13 Lease

Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory premises on cancellable lease have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

Note No. 14

Financial Risk Management Objectives and Policies.

The Company''s Financial Risk Management is an integral part of how to plan and execute its Business Strategies. The Company''s Financial Risk Management Policy is set by the Board. The Company''s activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk (including foreign currency risk, interest rate risk and commodity risk etc.), credit risk and liquidity risk.

15. Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash flows that may results from change in the price of a financial instrument. The value of a financial instrument may change as result of change in the interest rates, foreign currency exchange rates, equity prices and other market changes may affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments and deposits, foreign currency receivables, payables and loans and borrowings. Market risk comprises mainly three types of risk:

Interest rate risk, currency risk and other price risk such as equity price risk and commodity risk.

The Company has an elaborate risk management system to inform Board Members about risk management and minimization procedures.

a) Foreign Currency Risk :

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company makes certain imports and exports in foreign currency & therefore is exposed to Foreign Exchange Risk. The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company has not undertaken any hedging activities for foreign exchange.

b) Interest Rate Risk :-

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings. The following Table shows the blend of Company''s Fixed & Floating Rate Borrowings in Indian Rupee:

The Company regularly scans the Market & Interest Rate Scenario to find appropriate Financial Instruments & negotiates with the Lenders in order to reduce the effect Cost of Funding.

Interest Rate Sensitivity: The following table demonstrates the sensitivity to a reasonably possible change in interest rates on financial assets affected. With all other variables held constant, the Company’s profit / (Loss) before tax is affected through the impact on finance cost with respect to our borrowing, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

(c) Commodity Price Risk and Sensitivity:

Commodity price fluctuations can have an impact on the demand of seeds for particular crop. Therefore, we track the commodity price movements very closely and take advance production decisions accordingly.

In addition to the above, Company also maintains a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.

16. Credit Risk:

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables: Customer credit risk is managed based on company''s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting date on an individual basis. However a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

17. Advance to suppliers are net of provision/loss allowances made for Doubtful advances of Rs. 13.52 lacs (Previous year Rs. 24.45 lacs).

17.1. ECL impairment loss allowance (or reversal) recognized during the period as income/ expense in the Statement of Profit and Loss under the head ‘Other expenses’.The balance sheet presentation for financial instruments is described below:

i) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

ii) Financial Assets includes Rs. 1823.61 lacs towards Trade Receivables and Security Deposit of Rs. 121.68 lacs shown under the heading "Deposit with Government Authorities and others" from Rajasthan Government. In view of the fact that the materials supplied met all the quality specifications and was accepted by the government, the receivable is considered good and recoverable. During the year the Hon''ble High Court of Rajasthan, Jaipur, allowed our petition file under sec 11 of the Arbitration and Conciliation Act, 1996 and appointed Retired Supreme Court Judge as arbitrator.

iii) During the year company also has initiated legal proceedings on Uttar Pradesh Seed Development Corporation (UPSDC) for recovery of the overdue outstanding of Rs. 952 lacs for which we have also made expected credit loss allowance in the books of accounts. Company filed an application in Hon’ble High Court of Uttar Pradesh to appoint an arbitrator and thereby notices have been issued to UPSDC.

17.2d. Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/ reconciliation.

17.3 Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. The Company relies on a mix of borrowings and operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowings facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Note No. 18

Capital Risk Management:

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal structure to reduce the cost of capital. For the purpose of the Company’s capital management, capital includes issued capital, securities premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, less cash and cash equivalents.

Note No. 19

Fair Value of Financial Assets and Liabilities:

Set out below, is a comparison by class of the carrying amounts and fair value of the financial instruments of the Companies

Fair Valuation Techniques:

The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best and most relevant data available. The Fair Values of the Financial Assets and Liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, trade payables and other financial liability at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

The Company does not have any asset or liabilities that can be grouped into Level 1 to Level 3 for Fair value measurement

Note No. 20

During the year the Company has received a grant of Rs. 14.80 lacs (Previous year Rs. 11.10 lacs) from BIRAC, the same is netted from other expenses.

Note No. 21

Previous year’s figures have been re-grouped/re-classified/recast wherever necessary and figures less than Rs. 500 have been shown as actuals in bracket.

Note No. 22

Impairment Testing of Intangible Assets

The Brands are considered to have an Indefinite useful life on the basis of the expected longevity and tested for impairment annually, in case there is any indication for impairment of carrying value. Based on internal analysis and relevant factors, the Management is of the opinion that, the brand is expected to continue to generate cash flows for an undetermined period.

Note No. 23 RECONCILIATION

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101-First time adoption of Indian Accounting Standards, with April 01, 2016 as the transition date and IGAAP as the previous GAAP.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

- Equity as at 1st April, 2016;

- Equity as at 31st March, 2017;

- Balance Sheet as at 1st April, 2016

- Balance Sheet as at 31st March, 2017

- Total comprehensive income for the year ended 31st March, 2017.

In preparing these financial statements, the Company has availed certain exemptions and exceptions from retrospective application of certain requirements under Ind AS, as explained below:

a) Exemptions from retrospective application:

Property, Plant & Equipment: The Company has elected to measure items of PPE at the date of transition to Ind AS at their fair value. Company has used the fair value of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, Plant and Equipment on transition from previous GAAP is '' 869.95 lacs and accordingly impact (net of deferred tax) been given in other equity.

Intangibles Assets: The Company has opted to continue with the carrying value for all its intangible assets as recognised in the previous GAAP financial statements as their deemed cost on the date of transition i.e. 1st April, 2016.

Leases: For arrangements entered into prior to 1st April, 2015, the Company has assessed all arrangements for Embedded Lease based on conditions prevailing as at the date of transition (i.e. 1st April, 2016)

(b) Exceptions from full retrospective application:

Government loans: The Company has adopted previous GAAP regarding book values of Unsecured & secured Loan at the date of transition to Ind AS as the carrying amount of the loan in the Opening Ind AS Balance sheet and applied Ind AS 109 (Financial Instruments) and Ind AS 20 (Accounting for Government Grants and Disclosure of Government Assistance) prospectively.

Estimates: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where revision in estimates was necessitated as required by Ind AS. The estimates used by the Company to present the amounts in accordance with Ind AS reflect conditions existing as at 1st April, 2016, the date of transition to Ind AS and as at 31st March, 2017 and 31st March, 2018.

Explanations for reconciliation of Balance Sheet and Total Comprehensive Income as previously reported under Previous GAAP to Ind AS

A.(i) Fair value as deemed cost - Property Plant and Equipment : The company has opted the option of fair value as deemed cost for Property Plant and Equipments as on the date of transition to Ind AS.This has resulted in the increase of Rs. 975.25 lacs in the value Property Plant and Equipment with corresponding increase in retained earning of Rs. 869.65 and deferred tax liability of Rs. 105.60 lacs. Fair value as deemed cost on the transition date for respective category of PPE is as under.

The above has resulted in additional depreciation charged to Profit or Loss Account by Rs. 9.77 lacs during the Financial Year Ended 31st March, 2017.

A. (ii) Dismantling Provision : The Company has availed the exemption for dismantling liability as at the date of transition and accordingly measured the liability as at the date of transition, the liability prior to transition is adjusted in opening retained earnings.

B. Brand - The company has adopted to use its previous GAAP carrying value as deemed cost on the date of transition to Ind AS. The life of the intangible asset have been considered indefinite as per Ind AS 38, vis-a-vis previous GAAP wherein intangible assets which have only finite life.

C. Security Deposit : Under Ind AS 109- financial instruments, security deposit are required to be valued at fair value and difference between cost and fair value is to be amortised over the period of security as rental expenses and consequently interest income to be booked using effective interest method in statement of Profit & loss.

D. Government Grants : The company has received loans from DBT and BIRAC at concessional rate. The loans are recognised at fair value using prevailing market interest of loan. The difference between the gross proceeds and fair value of the loan is the benefit derived from lower rate of interest and is recognised as deferred income. Loan as at 1st April 2015 was carried at historical cost (Exemption availed).

E. Dividend : Under Indian GAAP, Proposed Dividend was recognised as liability in the period to which it was related. Under Ind AS Proposed Dividend is recognised as liability in the period in which it is approved by shareholders.

F. Actuarial Gain/Loss - The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability is accounted in the Statement of Other Comprehensive Income (net of tax impact). Due to this, for the period ended March 31, 2016, tax credit there on is shown in OCI and reversal in Statement of Profit and loss.

G. Expected Credit Loss : Under I GAAP, the Company has created provision for impairment of trade receivables in respect of specific amounts. Under Ind AS, impairment losses of Rs. 654.90 lacs have been determined on the expected credit loss model (ECL) with corresponding impact to retained earnings (net of deferred Tax) and Rs. 52.34 lacs under Current Loans. The Company has made a loss allowance based on ECL policy which has been recognised in retained earning on the date of transition to Ind AS. The loss allowance (ECL) of Rs. 79.73 lacs (Net of deferred Tax) for the year ended 31st March, 2017 has been recognized in the statement of Profit or Loss Account.

H. Deferred Tax - The additional Deferred Tax liability / Asset has also been recognised due to different accounting treatment in respect of certain items as per Ind AS at the tax rate at which they are expected to be reversed. on transition to Ind AS, the MAT Credit Entitlement being in the nature of deferred tax assets, has been netted from deferred tax liabilities/assets.

I. Under Ind As revenues is recognised at the fair value of the consideration received or receivable. As a result, discounts are required to be reduced from sales. Therefore a sum of Rs. 243.82 has been reduced from sales with corresponding decrease in other expenses.

Note No. 24

Standards issued but not yet effective

Ind AS 115 revenue from Contracts with Customers

Amended Ind AS 115 was notified on 28th March 2018 and establishes a five step model to account for revenue arising from contracts with customers. The new revenue standard with supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after 1st April, 2018. the Company is evaluating the requirements of the amendments and the effect on the financial statements is being evaluated.

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Mar 31, 2016

1. There is no change in the Share Capital during the year and no Bonus / Right Buy-back in the preceding five years.

2. Terms/right attached to equity shares:

a. The Company has only one class of equity shares having par value of ''10 per share. Each holder of equity shares is entitled to one vote per share.

b. In the event of winding up the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportionate to the number of equity shares held by the shareholders.

c. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting except in the case of interim dividend.

Notes:

1. a) Term Loan of Rs. Nil (Previous year Rs.19.19 lacs) taken from bank is secured against first charge of the assets purchased there under, Hypothecation of entire intangible assets, second charge on entire current assets viz stock and book debts etc., both present and future, of the company and is further secured by extension of equitable mortgage on land at Ranpur, Kota (Rajasthan). Charge been vacated.

b) Term Loan of Rs. Nil (Previous year Rs. 642.86 lacs) taken from bank is secured by subservient charge on entire current and movable fixed assets (both Present and future). Charge been vacated.

c) Corporate loan of Rs. 1350 lacs (Previous year Rs. 1350 lacs) taken from bank is secured by second charge on the entire current assets of the company viz., stocks & book debts, etc., both present and future, first charge on the entire fixed assets of the Company including land at Dundigal village, Telangana and Land at Ranpur, Kota Rajasthan, excluding certain specified assets. It is further secured by Hypothecation of entire intangible assets of the Company including the Brand and Patents. It is repayable in 3 years, 4 Quarterly installments of Rs. 100 lacs each in FY 2017, 4 equal installments of Rs.125 lacs each in FY 2018 and 3 equal installments of Rs.150 lacs each in FY 2019.

2. Term loan of Rs. 139.09 lacs (Previous year Rs. 96.60 lacs) taken from Biotechnology Industry Research Assistance Council (BIRAC) is secured by First Charge on movable properties of the Company including its movable Plant and Machinery, spares, tools and accessories and other movables, both present and future (Except Book debts) and is repayable in 10 equal half yearly installments of Rs. 13.90 lacs each commencing from October, 2017.

3. a) Unsecured loan of Rs. 442.08 lacs (Previous year Rs. 515.75 lacs) taken from CSIR is repayable in 6 equal yearly installments of Rs. 73.68 lacs each.

b) Unsecured loan of Rs. 250 lacs (Previous year Rs. 500 lacs) taken from Bengal & Assam company Ltd. (A Related Party) is repayable in April, 2016. Since paid.

c) Unsecured loan of Rs. 1000 lacs (Previous year Rs.Nil) taken from Bengal & Assam company Ltd. (A Related Party) is repayable in May, 2017.

3. Pursuant to the Scheme of Arrangement and Demerger transfer of authorized Capital of Rs. 4250 lacs divided into 50,00,000 preference share capital of '' 85/- each is pending for transfer from Florence Investech Limited to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the Scheme.

4. Estimated amount of contracts net of advances amounting to Rs.19.93 lacs (Previous year Rs. 1.85 lacs) remaining to be executed on capital account.

5. (A) Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for Rs.120.72 lacs (Net of Rs. 99.00 lacs indemnified by another party) (Previous Year Rs. 126.58 lacs (Net of Rs. 99.00 lacs indemnified by another party)).

(ii) Pending export obligation against import of capital goods under EPCG Scheme (Guarantee given Rs. 129.24 lacs): Rs. Nil (Previous year Rs. Nil).

(iii) Income Tax (matters in appeals) of Rs. 606.95 lacs (Previous year Rs. 581.30 lacs) & Sales tax (Matters in appeals) of Rs.7.25 lacs (Previous year Rs. 6.90 lacs).

In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

(B) Company acted as a facilitator and has extended gurantees to Yes Bank Limited Rs. 2859.33 lacs (Previous year Rs.3040.44 lacs) and ICICI Bank Ltd Rs. Nil lacs (Previous year Rs. 130.03 lacs) for loans provided to the farmers.

6. The Company has challenged the notice of the Income Tax assessing officer for reopening of the income tax assessment order for the year ended 31.03.2009 (Assessment year 2009-10), in High Court of Calcutta. Hon’ble High court of Calcutta vide its order dated 26.03.2015 has granted interim stay.

7. (a) In terms of disclosure requirements stated in Accounting Standard on Intangible Assets (AS-26) notified by the Companies (Accounting Standards) Rules, 2006 the management considered it appropriate to amortize “J.K.SEEDS” brand over a period of 20 years (balance 6 years as on Balance Sheet date) from the date of its acquisition, considering nature of business, life cycle of brand, its inherent value and expected future benefits. The carrying amount of “J.K.SEEDS” brand as on 31st March, 2016 is Rs. 810 lacs which is to be amortized in over the balance period of 6 years.

(b) Software is amortized over a period of 5 years from the year of installation.

8. a) Debtors over six months are net of provision made for doubtful Debts of Rs. 131.19 lacs (Previous year Rs.101.19 Lacs).

Overdue Receivables exceeding six months includes Rs.2422.19 lacs from state governments (Including Rs. 1938.23 lacs from Rajasthan Government along with Security Deposit given amounting to Rs.121.68 lacs included in the heading “Deposit with Government Authorities and other” in Note no.17 and where part payment been received). In view of the fact that the materials supplied having met all the quality specifications and accepted by the governments, these receivable are considered good and fully receivable.

b) Advance to suppliers are net of provision made for Doubtful advances of Rs.40.53 lacs (Previous year Rs. 40.53 lacs).

c) Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/ reconciliation.

9. a) Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

b) The Company has filed a Writ Petition before the Hon’ble High Court of Calcutta seeking directions for acceptance of revised Income Tax returns by the Income Tax Department, (“the Department”) for the Financial years 2005-06 to 2010-11, which had been treated as Nonest by the department vide its Notice dated 17^th February, 2014. The above revised returns were filed by the Company with the Department pursuant to the Scheme of Arrangement and Demerger (the Scheme) approved by Hon’ble High court of Calcutta on 17^th October, 2012, giving impact of the Scheme from 1^st April , 2005, during the financial year 2012-13.

10. Foreign Currency exposure not hedged as at Balance sheet date:

Foreign Currency exposure unhedged net receivable Rs. 183.15 lacs - US $ 276100 (Previous year Rs. 4.38 lacs - US $ 7000) and net payable Rs. 0.50 lacs - US $ 753 (Previous year Rs. 37.63 lacs - US $ 60125)

36. The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to the extent information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.03.2016: Nil (Previous year: Nil) (ii) Payment made beyond the appointed day during the year: Nil (Previous Year: Nil) and (iii) Interest accrued and unpaid as at 31.03.2016: Nil (Previous year: Nil).

Note:

a) Defined Benefit Plans

Amounts recognized as expense and included in the Note 23:

Item “Salaries, Wages, Allowance, etc” includes Rs. 43.16 lacs (Previous year Rs.39.71 lacs) for gratuity Rs. 33.44 lacs (Previous year Rs. 38.19 lacs) for leave encashment.

b) Defined Contribution Plans

Amount recognized as an expense and included in the Note 23 “Contribution to Provident and other Funds” of Statement of Profit & Loss Rs.116.64 lacs (Previous year Rs. 111.04 lacs).

c) The estimates of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors, such as demand and supply in the employment market.

11. There is only one business segment - Agri & Allied products.

12. Impairment of Assets:

The Company carries out a periodic review of all its assets with a view to identify any impairment. Impairment of assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India. There is no Impairment of assets which has not been accounted.

13. Leases

Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory premises on cancellable lease have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

14. CSR expenses amounting to Rs.22.44 lacs (Previous Year Rs.18.07 lacs) have been included in Miscellaneous Expenses under the head “Other Expenses” in note no. 25.

15. Previous year’s figures have been re-grouped/re-classified/recast wherever necessary.

16. Figures less than Rs.500/- has been shown at actual in Bracket.

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Mar 31, 2015

1.1 There is no change in the Share Capital during the year and no Bonus / Right Buy-back in the preceding five years.

1.2 Terms/rights attached to equity shares:

a. The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

b. I n the event of winding up the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting except in the case of interim dividend.

1. a) Term loan of Rs. Nil (Previous year Rs. 44.46 lacs) taken from bank was secured against first charge of the assets purchased thereunder, hypothecation of entire intangible assets, second charge on the entire current assets viz stocks and book debts etc., both present and future, of the company and was further secured by way of first Charge on entire fixed assets including land at Dundigal Village, Telangana of the Company excluding certain specified Assets. Charge been vacated.

b) Term Loan of Rs. 19.19 lacs (Previous year Rs. 60.19 lacs) taken from bank is secured against first charge of the assets purchased thereunder, Hypothecation of entire intangible assets, second charge on entire current assets viz stock and book debts etc., both present and future, of the company and is further secured by extension of equitable mortgage on land at Ranpur, Kota (Rajasthan). Balance amount of term loan is repayable in one Quarterly installments of Rs. 10.25 lacs and another Quarterly installment of Rs. 8.94 lacs.

c) Term Loan of Rs. 642.86 lacs (Previous year Rs. 1500.00 lacs) taken from bank is secured by subservient charge on entire current and movable fixed assets (both Present and future) and repayable in 2 equal Quarterly installments of Rs. 214.29 lacs and one Quarterly installment of Rs. 214.28 lacs.

d) Corporate loan of Rs. 1350 lacs (Previous year Rs. Nil) taken from bank is secured by second charge on the the entire current assets of the company viz., stocks & book debts, etc., both present & future, First charge on the entire fixed assets of the Company including land at Dundigal village, Telangana and Land at Ranpur, Kota Rajasthan, excluding certain specified assets. It is further secured by Hypothecation of entire intangible assets of the Company including the Brand and Patents. It is repayable in 4 years with 3 Quarterly Installment of Rs. 50 lacs each in FY 2016, 4 Quarterly installment of Rs. 100 lacs each in FY 2017, 4 equal installment of Rs. 125 lacs each in FY 2018 and 2 equal installment of Rs. 150 lacs each in FY 2019.

2 Term loan of Rs. 96.60 lacs (previous year Rs. 96.60 lacs) taken from Biotechnology Industry Research Assistance Council (BIRAC) (earlier department of Bio-technology (DBT)) is secured by first charge on the Assets created out of the loan, Pari Passu second charge on the entire fixed Asset of the Company including the land at Dundigal village, Telangana and excluding certain specified assets & Pari Passu second charge on the current assets and is repayable in 10 equal half yearly installments of Rs. 9.66 lacs each commencing from March, 2016.

3 a) Unsecured loan of Rs. 515.75 lacs (Previous year Rs. 589.43 lacs) taken from CSIR is repayable in 7 equal yearly installments of Rs. 73.68 lacs each.

b) Unsecured loan of Rs. 500 lacs (Previous year Nil) taken from Bengal & Assam company Ltd. (A Related Party) is repayable in 2 equal yearly installments of Rs. 250 lacs each, starting from April, 2015.

# Working Capital borrowing is Secured by hypothecation of entire current assets viz stocks and book debts etc., both present and future, of the Company and by a second pari passu charge on entire fixed assets of the Company including land at Dundigal village, Telangana and land at Ranpur, Kota, (Rajasthan) and excluding certain specified fixed assets.

4. Pursuant to the Scheme of Arrangement and Demerger transfer of authorized Capital of Rs. 4250 lacs divided into 50,00,000 preference share capital of Rs. 85/- each is pending for transfer from Florence Investech Limited to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the Scheme.

5. Estimated amount of contracts net of advances amounting to Rs. 1.85 lacs (Previous year Rs. 2.74 lacs) remaining to be executed on capital account.

6. (A) Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for Rs. 126.58 lacs (Net of Rs. 99.00 lacs indemnified by another party) (Previous Year Rs. 164.30 lacs (Net of Rs. 99.00 lacs indemnified by another party)).

(ii) Pending export obligation against import of capital goods under EPCG Scheme (Guarantee given Rs. 129.24 lacs): Rs. Nil (Previous year Rs. 0.37 lacs).

(iii) Income Tax (matters in appeals) of Rs. 581.30 lacs (Previous year Rs. 512.89 lacs) & Sales tax (Matters in appeals) of Rs. 6.90 lacs (Previous year Rs. 6.90 lacs).

In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

(B) Company acted as a facilitator and has extended a gurantee to Yes Bank Limited Rs. 3040.44 lacs (Previous year Rs. 1752.94 lacs) and by ICICI Bank Ltd Rs. 130.03 lacs (Previous year Rs. 1,000.38 lacs) for loans that these banks have provided to the farmers.

7. The Company has challenged the notice of the Income Tax assessing officer for reopening of the income tax assessment order for the year ended 31.03.2009 (Assessment year 2009-10), in High Court of Calcutta. Hon''ble High court of Calcutta vide its order dated 26.03.2015 has granted interim stay.

8. (a) In terms of disclosure requirements stated in Accounting Standard on Intangible Assets (AS-26) notified by the Companies (Accounting Standards) Rules, 2006 the management considered it appropriate to amortize "J.K.SEEDS" brand over a period of 20 years (balance 7 years as on Balance Sheet date) from the date of its acquisition, considering nature of business, life cycle of brand, its inherent value and expected future benefits. The carrying amount of "J.K.SEEDS" brand as on 31st March, 2015 is Rs. 945 lacs which is to be amortized in over the balance period of 7 years.

(b) Software is amortized over a period of 5 years from the year of installation.

Cost audit fees Rs. 0.45 lacs pertaining to previous year (Previous year Rs. 1.24 lacs); Rs. Nil (Previous Year Rs. 0.27 lacs) lacs towards Certification and other charges and Rs. 0.35 lacs (Previous year Rs. 0.18 lacs) towards reimbursement of expenses.

9. (a) Debtors over six months are net of provision made for doubtful Debts of Rs. 101.19 lacs (Previous year Rs. 101.19 Lacs) and are after bad debts of Debtors Rs. Nil (Previous year Rs. 16.14 lacs).

Overdue Receivables exceeding six months includes Rs. 1938.23 lacs from Rajasthan state government along with Security Deposit given amounting to Rs. 121.68 lacs included in the heading "Deposit with Government Authorities and other" in Note no.16. In view of the fact that the materials supplied having met all the quality specifications, and part payments has also been received, the receivable is considered good.

(b) Advance to suppliers are net of provision made for Doubtful advances of Rs. 40.53 lacs (Previous year Rs. 40.53 lacs and are after bad loans of Rs. Nil lacs (Previous year Rs. 7.58 lacs).

(c) Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/reconciliation.

10. (a) Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

(b) The Company has filed a Writ Petition before the Hon''ble High Court of Calcutta seeking directions for acceptance of revised Income Tax returns by the Income Tax Department, ("the Department") for the Financial years 2005-06 to 2010-11, which had been treated a Nonest by the department vide its Notice dated 17th February, 2014. The above revised returns were filed by the Company with the Department pursuant to the Scheme of Arrangement and Demerger (the Scheme) approved by Hon''ble High court of Calcutta on 17th October, 2012, giving impact of the Scheme from 1st April , 2005, during the financial year 2012-13.

11. Foreign Currency exposure not hedged as at Balance sheet date:

Foreign Currency exposure unhedged net receivable Rs. 4.38 lacs - US $ 7000 (Previous year Rs. 6.61 lacs - US $ 11000) and net payable Rs. 37.63 lacs - US $ 60125 (Previous year Rs. 79.59 lacs - US $ 64032 & EURO 49780)

12. The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to the extent information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.03.2015: Nil (Previous year: Nil) (ii) Payment made beyond and appointed day during the year: Nil (Previous Year: Nil) and (iii) Interest accrued and unpaid as at 31.03.2015: Nil (Previous year: Nil).

Note: a) Defined Benefit Plans

Amounts recognized as expense and included in the Note 22: item "Salaries, Wages, Allowance, etc" includes Rs. 39.71 lacs (Previous year Rs. 30.81 lacs) for gratuity,Rs. 38.19 lacs (Previous year, Rs. 28.71 lacs) for leave encashment.

b) Defined Contribution Plans

Amount recognized as an expense and included in the Note 22 "Contribution to Provident and other Funds" of Statement of Profit & Loss Rs. 111.04 lacs (Previous year Rs. 125.45 lacs).

c) The estimates of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors, such as demand and supply in the employment market.

d) Experience Adjustment:

13.Related Parly :

A). Relationships

Key Management Personnel : Shri Sanjay Kumar Gupta, President & Whole Time Director

: Shri Amit Agarwal, Chief Financial Officer

: Shri Anoop Singh Gusain, Company Secretary

Associates : Florence Investech Ltd (FIL)

: Bengal & Assam Company Ltd (BACL) Pursuant to the Companies Act, 2013

I. The following transactions were carried out with related parties in the ordinary course of business:

14. Impairment of Assets:

The Company carries out a periodic review of all its assets with a view to identify any impairment. Impairment of assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India. There is no Impairment of assets which has not been accounted.

15. Leases Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory premises on cancellable lease have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

c) The percentage increase in the median remuneration of employees in the financial year: 10%

d) The number of permanent employees on the rolls of company:- 445

e) The explanation on the relationship between average increase in remuneration and company performance: Increments are given keeping in view the overall performance of the employees, Company''s growth, economic scenario, prevailing conditions in the market and industry trends etc.

f) Comparison of the remuneration of the Key Managerial Personnel against the performance of the company:

h) Percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer: The Company has not come out with any public offer since its inception. Pursuant to the Scheme of Arrangement and Demerger sanctioned by the Hon''ble High Court of Calcutta, the equity shares of the Company were listed and permitted for trading on BSE Limited w.e.f. 30th September 2013.

i) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

k) No variable component of remuneration was availed by the directors during the financial year ended 31st March 2015.

l) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year: None

m) The Company affirms that the remuneration is as per the remuneration policy of the company.

n) The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in a separate annexure forming part of this Report. Further, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company during working hours. Any member interested in obtaining a copy of the same may write to the Company Secretary.

---

Mar 31, 2014

1. There is no change in the Share Capital during the year and no Bonus / Right Buy-back in the preceding five years. (Read with note no.25)

2. Terms/right attached to equity shares:

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

3. In the event of winding up the equity shareholders will be entittled to receive remaining assets of the Company, after distribution of all preferencial amounts. The distribution will be in proportionate to the number of equity shares held by the shareholders.

4. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting except in the case of interim dividend.

Notes:

1. a) Term loan of Rs. 44.46 lacs (Previous year Rs. 444.46 lacs) taken from bank is secured against first charge of the assets purchased thereunder, hypothecation of entire intangible assets, parri passu second charge on the entire current assets viz stocks and book debts etc., both present and future, of the company and is further secured, by way of first charge on land at Dundigal village (AP) and on entire movable fixed assets of the Company. This is further secured by second Pari Passu charge on the entire fixed assets financed by Department of Biotechnology (DBT). Balance Term loan is repayble in 1 Installment of Rs. 44.46 lacs.

b) Term Loan of Rs. 60.19 lacs (Previous year Rs. 101.19 lacs) taken from bank is secured against first charge of the assets purchased thereunder, Hypothecation of entire intangible assets, parri passu second charge on entire current assets viz stock and book debts etc., both present and future, of the company and is further secured by extension of equitable mortgage on land at Ranpur, Kota (Rajasthan). This is further secured by second Pari Passu charge on the entire fixed assets financed by DBT and balance amount of term loan is repayable in 5 equal Quarterly installments of Rs. 10.25 lacs each and 6th installment of Rs. 8.94 lacs.

c) Term Loan of Rs. 1500.00 lacs (Previous year Rs. 1500.00 lacs) taken from bank is secured by subservient charge on entire current and movable assets (both Present and future) and repayable in 6 equal Quarterly installments of Rs. 214.29 lacs and one quarterly installments of Rs. 214.26 lacs commencing from July 2014.

2. Term loan of Rs. 96.60 lacs (Previous year Rs. 59.61 lacs) taken from Department of Bio-Technology (DBT) is secured by First Charge on the Assets created out of the loan, Pari Passu second charge on the entire fixed Asset of the Company including the land at Dundigal village, Ranga Reddy District (AP) and excluding land at ICICI Knowledge Park & Pari Passu second charge on the current assets and is repayable in 10 equal half yearly installments of Rs. 9.66 lacs each commencing from March, 2016.

3. Unsecured loan of Rs. 589.43 lacs (Previous year Rs. 663.11 lacs) taken from CSIR is repayable in 8 equal yearly installments of Rs. 73.68 lacs each

# Working Capital borrowings are Secured by hypothecation of current assets viz stocks and book debts etc., both present and future, of the Company and by a second charge on entire fixed assets of the Company including land at Dundigal village (AP) and Ranpur, Kota, (Rajasthan).

# Includes gross value as at 31.03.2014 of Building Rs. 273.09 lacs (Previous year Rs. 268.05 lacs) and Plant & Equipments Rs. 1290.49 lacs (Previous Year Rs. 1288.80 lacs) {WDV Rs. 177.37 lacs (Previous year Rs. 180.21 lacs ) and Rs. 1034.27 lacs (Previous year Rs. 1098.09 lacs respectively)} on leasehold premises.

$ Includes Capital Subsidy of Rs. 50 lacs under Reform Link Investement Scheme on certain processing plant and machinery at Hyderabad which has been adjusted from the cost of respective Machinery.

* Note No. 4

# Deferred tax assets on unabsorbed depreciation and business losses have been recognized based on management''s opinion that there is virtual certainty and sufficient taxable income will be generated / available against which such deferred tax assets can be realized.

5. Scheme of Arrangement and Demerger (The Scheme) between the Company {JK Agri Genetics Limited (JKAGL) (formerly Florence Alumina Limited) (FAL) (Transferee)} and Florence Investech Limited (formerly JK Agri Genetics Limited)(Transferor) has been Sanctioned by the Hon''ble High Court at Calcutta vide its order dated 17th October, 2012 and the Scheme became effective on 2nd November 2012, operative from 1st April 2005, the Appointed Date. Accordingly impact was given in the accounts for the year ended 31.03.2013.

6. i. Name of the Company had been changed from Florence Alumina Limited to JK Agri Genetics Limited

ii. Pursuant to the Scheme transfer of authorized Capital of Rs. 4250 lacs divided into 50,00,000 preference share capital of Rs. 85/- each is pending for transfer from Florence Investech Limited to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the Scheme.

iii. Certain fixed assets, licences, approval, charges on secured loans are pending for transfer in the name of the Company.

7. Estimated amount of contracts net of advances amounting to Rs. 2.74 lacs (Previous year Rs. 3.77 lacs) remaining to be executed on capital account.

8. (A) Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for Rs. 164.30 lacs (Net of Rs. 99.00 lacs indemnified by another party) (Previous Year Rs. 157.84 lacs(Net of Rs. 99.00 lacs indemnified by another party)).

(ii) Pending export obligation against import of capital goods under EPCG Scheme (Guarantee given Rs. 129.24 lacs): Rs. 0.37 lacs (Previous year Rs. 160.68 lacs).

(iii) Income Tax (matters in appeals) of Rs. 512.89 lacs (Previous year Rs. 371.62 lacs) & Sales tax (Matters in appeals) of Rs. 6.90 lacs (Previous year Rs. 6.90 lacs).

(B) In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

(C) Company acted as a facilitator and has extended a gurantee to Yes Bank Limited Rs. 1752.94 lacs (Previous year - Nil) and by ICICI Bank Ltd Rs. 1,000.38 lacs (Previous year Nil) for loans that these banks have provided to the farmers.

9. MAT Credit Entitlement (Net of Provision for Taxation) amounting to Rs. 43.63 lacs accrued and accounted for. (Refer Note no.25)

10. (a) In terms of disclosure requirements stated in Accounting Standard on Intangible Assets (AS-26) notified by the Companies (Accounting Standards) Rules, 2006 the management considered it appropriate to amortize "J.K.SEEDS" brand over a period of 20 years (balance 8 years as on Balance Sheet date) from the date of its acquisition, considering nature of business, life cycle of brand, its inherent value and expected future benefits. The carrying amount of "J.K.SEEDS" brand as on 31st March, 2014 is Rs. 1080 lacs which is to be amortized in over the balance period of 8 years.

(b) Software is amortized over a period of 5 years from the year of installation.

11. Research and Development Revenue expenses as assessed and ascertained by the management are amounting to Rs. 1089.18 lacs (Previous Year Rs. 1152.98 lacs) and the same have been included in respective revenue heads of accounts.

Excludes provision for Gratuity and Leave Encashment where the actuarial valuation has been done on overall Company basis.

@ for the period 23rd October, 2013 to 31st March, 2014. Appointment and payment to a Whole Time Director is subjected to the approval in the ensuing General Meeting.

# Transferred from Florence Investech Limited formerly (JKAGL){Excludes Rs. 71.82 lacs Pertaining to period 1st October, 2011 to 31st March, 2012.}

$ for the period 1st April, 2012 to 1st November, 2012.

$ Excludes Rs. 2.90 lacs transferred from Florence Investech Limited (formerly JKAGL) for the period 1st October, 2011 to 31st March, 2012

Cost Auditors: 2013-14 2012-13

Cost Audit Fees 1.24 -

Cost audit fees includes Rs. 0.27 lacs towards Certification and other charges and Rs.0.18 lacs towards reimbursement of expenses.

12. a) Debtors over six months are net of provision made for doubtful Debts of Rs. 101.19 lacs (Previous year Rs. 96.67 Lacs) and are after bad debts of Debtors Rs. 16.14 lacs (Previous year nil). Overdue Receivables exceeding six months includes Rs. 19.38 Crores from Rajasthan state government. In view of the fact that the materials supplied having met all the quality specifications, and part payments has also been received, the receivable is considered good.

b) Advance to suppliers are net of provision made for Doubtful advances of Rs. 40.53 lacs (Previous year Rs. 21.85 lacs and are after bad loans of Rs. 7.58 lacs (Previous year nil)

c) Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/reconciliation.

13. Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

*Since the Forex Liability is crystallized to the extent advances given & received, these exposure are not required to be hedged.

14. The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to the extent information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.03.2014: Nil (Previous year: Nil) (ii) Payment made beyond and appointed day during the year: Nil (Previous Year: Nil) and (iii) Interest accrued and unpaid as at 31.03.2014: Nil (Previous year : Nil).

15. Production and Purchase of Seeds & Others Consumed:

43. The disclosures required under Accounting Standard (AS-15) "Employees Benefits" notified in the Companies (Accounting Standards) Rules, 2006 are as given below: Defined Benefits Plans / Long Term Compensated Absences – As per Actuarial Valuation on 31st March, 2014.

Note: a) Defined Benefit Plans

Amounts recognized as expense and included in the Note 22:

Item "Salaries, Wages, Bonus & Retirement Benefits" includes Rs. 30.81 lacs (Previous year Rs. 27.92 lacs) for gratuity, Rs 28.71 lacs (Previous year, Rs. 32.38 lacs) for leave encashment.

b) Defined Contribution Plans Amount recognized as an expense and included in the Note 22 "Contribution to Provident and other Funds" of Statement of Profit & Loss Rs. 125.45 lacs (Previous year Rs. 127.87 lacs).

c) The estimates of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors, such as demand and supply in the employment market.

d) Experience Adjustment

16. There is only one business segment – Agri & Allied products.

17. Related Party : A) Relationships

Key Management Personnel : Shri Sanjay Kumar Gupta, President & Director#

(Appointed on 23rd October, 2013)

# Remuneration: Refer Note no.32 (remuneration to Manager/Director)

47. Impairment of Assets:

The Company carries out a periodic review of all its assets with a view to identify any impairment. Impairment of assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India. There is no Impairment of assets which has not been accounted.

18. Leases

Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory premises on cancellable lease have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

---

Mar 31, 2013

1. Scheme of Arrangement and Demerger (The Scheme) between the Company {JK Agri Genetics Limited (JKAGL) (formerly Florence Alumina Limited) (FAL) (Transferee)} and Florence Investech Limited (FIL) (formerly JK Agri Genetics Limited) (Transferor) has been Sanctioned by the Hon''ble High Court at Calcutta vide its order dated 17th October, 2012 and the Scheme became effective on 2nd November 2012, operative from 1st April 2005, the Appointed Date.

2. Pursuant to the Scheme: (a)

i. Name of the Company has been changed from Florence Alumina Limited to JK Agri Genetics Limited.

ii. The Seed undertaking of Florence Investech Ltd. (formerly JK Agri Genetics Limited) as defined in the scheme has been transferred to and vested in the Company with effect from the said Appointed Date. The Scheme has accordingly been given effect to in these accounts.

iii. The paid up equity share capital of FIL (formerly JKAGL) of Rs. 350.65 lacs has been reorganized and allocated between FIL & the Company in the ratio of 2:3 (i.e. in the ratio 40:60) and accordingly the Share Capital amounting to Rs. 210.39 lacs has been allocated to the Company.

iv. a) An amount of authorised capital of Rs. 1,250 lacs divided into 1,25,00,000 equity shares of Rs. 10 each stands transferred from the share capital of FIL to the authorized capital of the Company.

b) Transfer of authorized Capital of Rs. 4,250 lacs divided into 50,00,000 preference share capital of Rs. 85/- each: will also be transferred in due course from FIL to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the said Scheme.

v. The Company has issued Rs. 1000 lacs Zero Coupon Non-Convertible Bonds (ZCNCB) to the Bond holders of Florence Investech Ltd as provided in the Part IV of the Scheme. The Bonds have also since been redeemed by the Company, the last date of redemption being April 01, 2010.

vi. The difference of Rs. 2775.94 lacs between assets and liabilities (including ZCNCB of Rs. 1000 Lacs) transferred from FIL (formerly JKAGL) at their book values w.e.f. April 01, 2005 along with Debenture Redemption Reserve of Rs. 472.34 lacs and paid up Equity Capital of Rs. 210.39 lacs has been recorded as General reserve in the books of the company.

(b) Certain fixed assets, licenses, approvals, charges on secured loan are pending for transfer in the name of the Company.

(c) Business of Seed undertaking for the period 1st Apr''2005 till 1st Nov''2012 has been carried out by FIL (formerly JKAGL) for and on account of, and in trust for, the Company.

@ Tax Includes Deferred Tax amounting to Rs. 749.27 Lacs

As stated in the Note no. 26, the Scheme became effective from 2nd November 2012 i.e. subsequent to the adoption of accounts for the year ended 31st March 2012 by the Shareholders of the Company in the Annual General Meeting held on 14th August, 2012. In view of this the results for the period 01.10.2011 to 31.03.2012 are audited by the Statutory Auditors of the Company are as stated above.

The net loss of Rs. 1340.36 lacs net of tax provision as stated above of the period of six months ended 31st March, 2012 have been adjusted against the balance in Statement of Profit and Loss (Read with Note no.3).

3. Estimated amount of contracts net of advances amounting to Rs. 3.77 lacs (Previous year Nil) remaining to be executed on capital account.

4. (A) Contingent liabilities, not provided for in respect of :

(a) Claims by certain parties against the company not accepted and not provided for Rs. 157.84 lacs (Net of Rs. 99.00 lacs to be indemnified by another party) (Previous Year Nil (Net of Nil to be indemnified by another party)).

(b) Pending export obligation against import of capital goods under EPCG Scheme (Guarantee given Rs. 129.24 lacs): Rs. 160.68 lacs (Previous year Nil).

(c) Income Tax (matters in appeals) of Rs. 371.62 lacs (Previous year Nil) & Sales tax (Matters in appeals) of Rs. 6.90 lacs (Previous year Nil).

(B) In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

5. (a) In terms of disclosure requirements stated in Accounting Standard on Intangible Assets (AS-26) notified

by the Companies (Accounting Standards) Rules, 2006 the management considered it appropriate to amortize "J.K. SEEDS" brand over a period of 20 years (balance 9 years as on Balance Sheet date) from the date of its acquisition, considering nature of business, life cycle of brand, its inherent value and expected future benefits. The carrying amount of "J.K.SEEDS" brand as on 31st March, 2013 is Rs. 1215 lacs which is to be amortized in over the balance period of 9 years.

(b) Software is amortized over a period of 5 years from the year of installation.

6. Research and Development Revenue expenses as assessed and ascertained by the management amount to Rs. 1152.98 lacs (Previous Year Rs. Nil). The same have been included in respective revenue heads of accounts.

7. a) Debtors over six months and Advances are net of Provisions made for doubtful Debts of Rs. 96.67 lacs and Advances Rs. 21.85 lacs (Previous year Nil).

b) Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/reconciliation.

8. Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management for the current year as well as for the period post appointed date.

9. The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to the extent information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.03.2013: Nil (Previous year: Nil) (ii) Payment made beyond and appointed day during the year: Nil (Previous Year: Nil) and (iii) Interest accrued and unpaid as at 31.03.2013 : Nil (Previous year : Nil).

10. The disclosures required under Accounting Standard (AS-15) "Employees Benefits" notified in the Companies (Accounting Standards) Rules, 2006 are as given below: Defined Benefits Plans / Long Term Compensated Absences – As per Actuarial Valuation on 31st March, 2013.

a) Defined Benefit Plans

Amounts recognized as expense and included in the Note 23:

Item "Salaries, Wages, allowances, etc." includes Rs. 27.92 lacs (Previous year Nil) for gratuity, Rs. 32.38 lacs

(Previous year Nil) for leave encashment.

b) Defined Contribution Plans

Amount recognized as an expense and included in the Note 23 "Contribution to Provident and other Funds" of Statement of Profit & Loss Rs. 127.87 lacs (Previous year Nil).

c) The estimates of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors, such as demand and supply in the employment market.

11. There are no separate reportable segments as per Accounting Standard 17 "Segment Reporting" pursuant to Scheme of Arrangement and Demerger, hence segment reporting is not being given.

12. Related Party @: (A) Relationships

(a) Wholly Owned Subsidiary : -

(b) Investing Company : -

(c) Key Management Personnel : -

(d) Relative of KMP : -

@ In pursuance of Scheme of Arrangement and Demerger JKAGL (Now FIL) ceased to be 100% Holding Company w.e.f. 1st April,2005. Accordingly, related party transactions have been re-organized.

13. In view of Note No. 27 (read with note no. 28), the company ceased to be Wholly owned Subsidiary (WOS) of the FIL (Formerly JKAGL) with effect from 1st April''2005.

14. Impairment of Assets:

The Company carries out a periodic review of all its assets with a view to identify any impairment. Impairment of assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India. There is no Impairment of assets which has not been accounted.

15. Leases

Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory premises have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

16. Previous year''s figures have been re-grouped/re-classified wherever necessary and Previous Year''s figure are not strictly comparable in view of note no. 26.