Notes to Accounts of Kaveri Seed Company Ltd.

Mar 31, 2025

2.20 Provision, Contingent Liabilities and Contingent
Assets:

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

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

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

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

2.21 Critical accounting estimates and judgements:

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

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

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

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

b) Provision for schemes - Refer note no.30

c) Provision for returns - Refer note no.30

d) Biological assets - Refer note no.12

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

f) Provisions and Contigent Liabilities - Refer note.39

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

h) Retirement benefits & obligations - Refer note.48

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

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

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

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

45. Financial Instruments (Contd..)

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

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

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

Other financial assets and liabilities

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

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

46. Financial Risk Management

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

A. Management of Liquidity Risk

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

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

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

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

B. Management of Market Risk

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

Currency Risk
Price Risk
Interest Rate Risk

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

a Currency Risk

Potential Impact of Risk

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

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

Management Policy

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

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

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

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

46. Financial Risk Management (Contd..)

b Price Risk

Potential Impact of Risk

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

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

Management Policy

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

Sensitivity to Risk

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

C Interest Rate Risk

Potential Impact of Risk

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

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

Management Policy

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

Sensitivity to Risk

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

d Management of Credit Risk

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

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

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

Other financial assets

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

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

48. Employee Benefit plans

48.1 Defined Contribution Plan:

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

48.2 Compensated Absences:

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

48.3 Gratuity:

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

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

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

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

49. Share Based Payments

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

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

51. Operating Leases

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

52. Contract Liabilities

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

53. Note on Reconciliation of Cash flow activities

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

54. Segment Information

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

b) Geographical information

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

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

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

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

55. Additional Regulatory and Other Information

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

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

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

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

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

Companies Act, 1956.

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

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

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

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

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

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

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

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

As per our report of even date attached

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

Chartered Accountants
Firm Registration No.000459S

Sd/- Sd/- Sd/-

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

Partner Chief Financial Officer Managing Director

Membership No. 220881 DIN: 00892232

Sd/- Sd/-

V.Sreelatha G.Vanaja Devi

Place: Secunderabad Company Secretary Wholetime Director

Date: 19 May 2025 DIN: 00328947

---

Mar 31, 2024

2.20 Provision, Contingent Liabilities and Contingent Assets:

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects when appropriate the risks specific to the liability. When discounting is used the increase in the provision due to the passage of time is recognised as a finance cost.

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

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

2.21 Critical accounting estimates and judgements:

In preparing these financial statements, Management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

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

a) Provision for doubtful debts - Refer note no.12

b) Provision for schemes - Refer note no.30

c) Provision for returns - Refer note no.30

d) Biological assets - Refer note no.11

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

f) Provisions and Contigent Liabilities - Refer note.39

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

h) Retirement benefits & obligations - Refer note.48

Equity share capital and other equity are considered for the purpose of Company''s capital management. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain or if necessary adjust its capital structure.

45. Financial Instruments (Contd..)

Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price 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.

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

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

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

Other financial assets and liabilities

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

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

46. Financial Risk Management

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

A. Management of Liquidity Risk

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

The Company maintained a cautious liquidity strategy with a positive cash balance throughout the year ended 31 March, 2024 and 31 March, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

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

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

Currency Risk Price Risk Interest Rate Risk

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

a Currency Risk

Potential Impact of Risk

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

As at 31 March, 2024, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital advances) and liabilities (trade payables and capital creditors) other than in their functional currency amounted to H535.28 Lakhs (31 March, 2023 H176.78 Lakhs).

Management Policy

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

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

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

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to approximately an additional H 26.76 Lakhs gain in the Statement of Profit and Loss (2022-23: H8.84 Lakhs ). A 5% weakening of the INR against these currencies would have led to an equal but opposite effect.

b Price Risk

Potential Impact of Risk

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

At 31st March 2024, the investments in debt mutual funds amounts to H 25199.22 Lakhs (31st March, 2023 H50979.59 Lakhs). These are exposed to price risk.

Management Policy

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

Sensitivity to Risk

A 0.5% increase in prices would have led to approximately an additional gain of H126.00 Lakhs in the Statement of Profit and Loss or Other Comprehensive Income (2022-23: gain of H254.90 Lakhs). A 0.5 % decrease in prices would have led to an equal but opposite effect.

C. Interest Rate Risk

Potential Impact of Risk

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

The company does not have any investment in interest sensitive securities/bonds as on 31st March 2024 and 2023.

Management Policy

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

Sensitivity to Risk

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

D. Management of Credit Risk

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

Trade receivables

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

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

Other financial assets

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

The Company''s maximum exposure to credit risk as at 31st March, 2024 and 2023 is the carrying value of each class of financial assets.

48. Employee Benefit plans

48.1 Defined Contribution Plan:

The company has certain defined contribution plans. Contributions are made to provident fund in India for qualifying employees at the specified percentage of salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is H 665.54 Lakhs (31 March 2023 : 585.87 Lakhs)

48.2 Compensated Absences:

The company provides for accumulation of compensated absences. These employees can carry forward portion of unutilised compensated absences and utilise it in future period or receive cash in lieu therof as per the company''s policy. The company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the company towards its obligation was H622.39 Lakhs (31 March 2023 : H527.48 Lakhs)

48.3 Gratuity:

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

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

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

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

49. Share Based Payments

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

51. Operating Leases

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

52. Contract Liabilities

Contract liabilities resulting from advance payments by customers for delivery of goods and schemes/discounts are predominantly recognized as sales within one year. The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied as on 31 March 2024 is H 36570.20 lakhs (31 March 2023 is H 27405.34 lakhs) resulting from advance payments and shown under other current liabilities.

53. Note on Reconciliation of Cash flow activities

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

54. Segment Information

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

b) Geographical information

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

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

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

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

55. Additional Regulatory and Other Information

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

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

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

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

e) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the Companies Act, 1956.

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

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

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

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

B). The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

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

As per our report of even date attached

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

Chartered Accountants

Firm Registration No.000459S

Sd/- Sd/- Sd/-

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

Partner Chief Financial Officer Managing Director

Membership No. 220881 DIN: 00892232

Sd/- Sd/-

Place: Secunderabad V.Sreelatha G.Vanaja Devi

Date: 22 May 2024 Company Secretary Wholetime Director

DIN: 00328947

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Mar 31, 2023

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

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

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

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

Two Term Loans from Department of Biotechnology, Ministry of Science & Technology with 2% p.a interest is secured by all equipment, Plant & Machinery and other movable assets of the company acquired for the project and is repayable in ten equal half yearly instalments starting from June,2019.

39	Commitments and Contingencies
Particulars		Year Ended	Year Ended
		31 March 2023	31 March 2022
A.	Claims against the Company not acknowledged as debts. This comprises of i. Tax demands disputed by the Company relating to disallowances / additions of fiscal	7,461.82	324.46
	benefits, pending before various judicial forums and tax authorities, aggregating to
	ii. Other matters not related to tax	10.75	10.75
	iii. Compensation, claims from farmers, customers and Government departments.	1,879.42	1,929.70
		9,351.99	2,264.91

Consequent to the search proceedings on the Company, during the year 2017-18, the Company had submitted returns for the block assessment years from FY 2011-12 to FY 2017-18 in response to notice u/s 153A disclosing the same income as was disclosed in the returns filed earlier. Assessments upto the date of search have been completed by the Income Tax Department.

Aggrieved by the departments’ basis for initiating search proceedings, the Company filed a writ petition before the Hon’ble High Court of Telangana, Hyderabad, challenging the validity of the search proceedings. The Hon’ble High Court granted interim stay against assessment proceedings pending disposal of the writ. The assessment of income as per returns submitted in response to notice u/s 153A, for said block period is kept in abeyance by the Income Tax Department in view of the interim stay granted by the Hon’ble High Court. Additional tax liability, if any, is dependent on the outcome of the writ petition and consequent completion of the assessment.

42 Capital Management:

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain or if necessary adjust its capital structure.

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1 : Quoted Prices for identical Instruments in an active Market

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs, and

Level 3: Inputs which are not based on observable market data

The fair values of the financial assets and liabilities are defined as the price 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.

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

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

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

Other financial assets and liabilities

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

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

46. Financial Risk Management

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

A. Management of Liquidity Risk

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

The Company maintained a cautious liquidity strategy with a positive cash balance throughout the year ended 31 March, 2023 and 31 March, 2022. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

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

B. Management of Market Risk

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

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

a Currency Risk

Potential Impact of Risk

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

As at 31 March, 2023, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital advances) and liabilities (trade payables and capital creditors) other than in their functional currency amounted to H176.78 Lakhs (31 March, 2022 H 401.62 Lakhs).

Management Policy

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

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

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

Sensitivity to Risk

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to approximately an additional H8.84 Lakhs gain in the Statement of Profit and Loss (2021-22: H20.08 Lakhs ). A 5% weakening of the INR against these currencies would have led to an equal but opposite effect.

b Price Risk

Potential Impact of Risk

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

At 31st March 2023, the investments in debt mutual funds amounts to H50979.59 Lakhs (31st March, 2022 H 41920.84 Lakhs). These are exposed to price risk.

Management Policy

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

Sensitivity to Risk

A 0.5% increase in prices would have led to approximately an additional gain of H 254.90 Lakhs in the Statement of Profit and Loss or Other Comprehensive Income (2021-22: gain of H 209.60 Lakhs). A 0.5 % decrease in prices would have led to an equal but opposite effect.

C Interest Rate Risk

Potential Impact of Risk

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

The company does not have any investment in interest sensitive securities/bonds as on 31st March 2023 and 2022.

Management Policy

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

Sensitivity to Risk

A 0.25% or .50% increase/decrease in interest rates will not make any difference to the company profit or loss as there are no interest rate sensitive investments.

d Management of Credit Risk

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

Trade receivables

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

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

Other financial assets

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

The Company’s maximum exposure to credit risk as at 31st March, 2023 and 2022 is the carrying value of each class of financial assets.

49 Employee Benefit plans

49.1 Defined Contribution Plan:

The company has certain defined contribution plans. Contributions are made to provident fund in India for qualifying employees at the specified percentage of salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is H 585.87 Lakhs (31 March 2022 : 528.96 Lakhs)

49.2 Compensated Absences:

The company provides for accumulation of compensated absences. These employees can carry forward portion of unutilised compensated absences and utilise it in future period or receive cash in lieu therof as per the company’s policy. The company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement. The total liability recorded by the company towards its obligation was H 527.48 Lakhs (31 March 2022 : H448.60 Lakhs)

49.3 Gratuity:

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

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

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

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

The Principal Assumptions used for the purposes of the actuarial valuation as follows

Method used for sensitivity analysis: The sensitivity results above determine their individual impact on the Plan’s end of year Defined Benefit Obligation. In reality the Plan is subject to multiple external experience items which may move the Defined Benefit Obligation in similar or opposite directions while the Plan’s sensitivity to such changes can vary over time.

50. Share Based Payments

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

e) Fair value of Options granted

The fair value of options granted during the year 2020-21 as at 31 March 2023 is. H99.31 (31 March 2022: H 115.93) and the fairvalue of options granted during the financial year 2019-20 as at 31 March 2023 is H 159.87 (31 March 2022: H203.71). The fair value options as at reporting date is determined using the Black Scholes Model which takes into account the excercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

52 Operating Leases

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

53 Contract Liabilities

Contract liabilities resulting from advance payments by customers for delivery of goods and schemes/discounts are predominantly recognized as sales within one year. The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied as on 31 March 2023 is H27405.34 lakhs (31 March 2022 is H 25114.87 lakhs) resulting from advance payments and shown under other current liabilities.

54 Note on Reconsilation of Cash flow activities

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

55 Segment Information

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

b) Geographical information

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

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

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

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

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Mar 31, 2018

1 Corporate Information

Kaveri Seed Company Limited (“the Company”) has been incorporated on August 27, 1986, as private limited company and converted into public limited company on November 07, 2006. The company has been listed on 04.10.2007 on the Bombay Stock Exchange and the National Stock Exchange in India. The company is into research, production, processing and marketing of various high quality hybrid seeds.

The financial statements reflect the results of its operations carried on by the company.

Investments in Mutual Funds

Mutual funds - Under Ind AS, the Company has designated these investments at fair value through Other Comprehensive Income (OCI) or Profit & loss . Accordingly Fair value changes are recognised in the Statement of Other Comprehensive Income (OCI) or Profit & loss statement for the year ended as the case may be.

Investments in Subsidaries

Investments in Subsidaries - The Company has designated these investments at cost .

Investments in Associates & Other Equities

Investment in Associates & Other Equities - Under Ind AS, the Company has designated these investments at fair value through Other Comprehensive Income (OCI). Accordingly, these investments are required to be measured at fair value. Fair value changes are recognised in the Statement of Other Comprehensive Income (OCI).

During FY 2016-17 Rs.500.00 Lakhs paid to M/s. ASK Real Estate Fund, out of this 125 units of ASK Real Estate Special Situation Mutual Fund has been allotted for Rs.125.00 Lakhs. The balance amount of Rs.375.00 Lakhs was kept as advance for further allottment of Real Estate Fund units as on 31.03.2017. During FY 2017-18 another 375 units of ASK Real Estate Special Situation Mutual Fund has been allotted for the balance advance amount of Rs.375.00 Lakhs.

Of the Trade Receivables balances, top 3 customers represent a balance of Rs.2411.28 Lakhs as at 31st March 2018 and Rs.3219.97 Lakhs as at 31st March 2017, and 3 customers represent more than 5% of the total balance of Trade Receivables as at 31st March 2018 and 3 Customers as at 31st March 2017.

The Average Credit period on sales of goods is 60 days.

The Company maintains a provison for doubtful debts based on ageing of receivable as tool to determine the degree of liquidity. Receivable due for more than two years and referred for recovery through legal proceeding are considered for provision.

Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.2 per share. Each shareholder is eligible for one vote per share held and carry a right to dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

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

Securities Premium Reserve: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.

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

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

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

Term Loan from Deptt of Biotechnology, Ministry of Science & Technology is secured by all equipment, Plant & Machinery and other movable assets of the company and is repayable in ten equal half yearly instalments starting from June,2019.

There are no amounts due for payment to the Investor Education and Protection Fund under section 125 of the Companies Act, 2013 as at 31st March 2018 and 31st March 2017.

2 Expenditure incurred for corporate social responsibilty

The Company spent Rs.378.00 Lakhs and Rs.839.94 Lakhs towards CSR Expenditure for the year ended 31st March 2018 and 31st March 2017. The details of expenditure upto 31-03-2018 are as follows.

3 Income Taxes

The reconciliation between the statutory income tax rate applicable to the company and the effective income tax rate of the company is as follows:

4 Exceptional Items

For the financial year 2016-17 company had provided Rs.5923.80 Lakhs as Exceptional Item towards the settlement of legal issue related to royalty payment with M/s. Mahyco Monsanto Biotech India Ltd related to Royalty payment in arbitration.

5 Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain or if necessary adjust its capital structure.

6 Financial Instruments

Refer Note 2.13 for accounting policy on Financial Instruments.

A. Accounting Classification and Fair Values

The carrying amounts and fair values of financial instruments by class are as follows:

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

B. Income, Expenses, Gains or Losses on Financial Instruments

Interest income and expenses, gains or losses recognised on financial assets and liabilities in the Statement of Profit or Loss and Other Comprehensive Income are as follows:

C. Fair Value Hierarchy

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted Prices for identical Instruments in an active Market

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs, and

Level 3: Inputs which are not based on observable market data

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by category is summarized below:

Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price 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.

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

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

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

Other financial assets and liabilities

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

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

7 Financial Risk Management

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

A. Management of Liquidity Risk

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

The Company maintained a cautious liquidity strategy with a positive cash balance throughout the year ended 31st March, 2018 and 31st March, 2017. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

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

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

B. Management of Market Risk

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

Currency Risk Price Risk Interest Rate Risk

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

1. CURRENCY RISK

POTENTIAL IMPACT OF RISK

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

As at 31st March, 2018, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital advances) and liabilities (trade payables and capital creditors) other than in their functional currency amounted to Rs.13.01 Lakhs receivable (31st March, 2017 ‘ Nil Lakhs.

MANAGEMENT POLICY

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

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

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

SENSITIVITY TO RISK

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Rs.0.65 Lakhs gain in the Statement of Profit and Loss (2016-17: ‘ Nil Lakhs ). A 5% weakening of the INR against these currencies would have led to an equal but opposite effect.

2. PRICE RISK

POTENTIAL IMPACT OF RISK

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

At 31st March 2018, the investments in debt mutual funds amounts to Rs.53708.50 Lakhs (31st March, 2017 Rs.62697.12 Lakhs). These are exposed to price risk.

MANAGEMENT POLICY

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

SENSITIVITY TO RISK

A 0.5% increase in prices would have led to approximately an additional Rs.268.54 Lakhs gain in the Statement of Profit and Loss Or Other Comprehensive Income (201617 Rs.313.49 Lakhs gain). A 0.5 % decrease in prices would have led to an equal but opposite effect.

3. INTEREST RATE RISK

POTENTIAL IMPACT OF RISK

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

The company does not have any investment in interest sensitive securities/bonds as on 31st March 2018 and 2017.

MANAGEMENT POLICY

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

SENSITIVITY TO RISK

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

C. Management of Credit Risk

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

Trade receivables

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

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

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments

money market liquid mutual funds and derivative instrument with financial institutions. The Company has set counterparties limits based on multiple factors including financial position, credit rating, etc. The Company has given inter-corporate deposits (ICD) only to its subsidiaries amounting Rs.850 Lakhs (31st March, 2017 ‘ Nil Lakhs).

The Company’s maximum exposure to credit risk as at 31st March, 2018 and 2017 is the carrying value of each class of financial assets.

8 Disclosures Pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of The Companies Act, 2013

9 Related Party Transactions

9.1 Following is the list of related parties and their relationships

A. Key managerial persons and their relatives

1 Mr. G.V. Bhaskar Rao

2 Mrs. G. Vanaja Devi

3 Mr. R. Venumanohar Rao

4 Mr. C. Vamsheedhar

5 Mr. C. Mithun Chand

6 Mr. G. Pawan

7 Mrs. G. Madhusree

8 G.V. Bhaskar Rao - HUF

9 C. Vamsheedhar - HUF

10 R. Venumanohar Rao - HUF

B. Subsidary Companies:

11 M/s. Kexveg India Pvt Ltd

12 M/s. Aditya Agritech Pvt Ltd

13 M/s. Genome Agritech Pvt Ltd

14 M/s. Kaveri Microteck Pvt Ltd

15 M/s. Genomix Agri Genetics Pvt Ltd

C Other related firms

16 M/s. Kaveri Infra

17 M/s. Bhaskara Investments

10 Employee Benefit plans

The gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benfits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The plan design meand the risks commonly affecting the liabilities and the financial results are expected to: A97

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

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

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

The Principal Assumptions used for the purposes of the acturial valuation as follows

Method used for sensitivity analysis: The sensitivity results above determine their individual impact on the Plan’s end of year Defined Benefit Obligation. In reality the Plan is subject to multiple external experience items which may move the Defined Benefit Obligation in similar or opposite directions while the Plan’s sensitivity to such changes can vary over time.

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

11 Operating Leases

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

The company does not have any non-cancellable agreements.

12 Segment Information

12.1 The Company has only one business segment i.e, Seeds.

12.2 Geographical information

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

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

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

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

13 Previous year figures are regrouped wherever considered necessary to conform to current year classification.

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Mar 31, 2017

Notes to Reconciliations between previous GAAP and Ind AS

(a) Recognition of Biological Assets :

The company has recognized Standing Crop as Biological Asset from April 1, 2015 as result of India AS. This has resulted in an increase in equity by '' 65.87 Lakhs and '' 164.68 Lakhs as at March 31,2016 and April 1, 2015 respectively and decrease in net profit by '' 98.80 Lakhs for the year ended March 31, 2016.

(b) Restatement of Grant and Subsidies :

Under Previous GAAP, Fixed Assets acquired with the Grants/Subsidy are accounted net of the Grant/Subsidy in books of account. Now as per India AS the extent of Grant/Subsidy reduced from Fixed Assets are re-instated in the books as Fixed Assets along with the Grant/Subsidy as Liability. The value of the Fixed Assets re-instated will be depreciated as per schedule II of Companies Act 2013 and Grant/Subsidy re-instated will be charged to profit & loss a/c over the life time of those assets in equal installments. Net difference of Depreciation and Grant/Subsidy charged to Profit & loss a/c has resulted in equity decrease by Rs, 8.67 Lakhs and Rs, 6.54 Lakhs as at March 31,2016 and April 1, 2015 respectively and decrease net profit by Rs, 2.13 Lakhs for the year ended March 31, 2016.

(c) Fair Value Adjustments of Financial Assets:

Under India AS, historical percentage of receivables written off over the years need to be provided from sales and the same should be reduced in sales and as well as in trade receivables. This has resulted in decrease of equity by Rs, 4.14 Lakhs and Rs, Nil as at March 31,2016 and April 1,2015 respectively and decrease in net profit by Rs, 4.14 Lakhs for the year ended March 31,2016.

(d) Fair Value of Investments :

Under previous GAAP, current investments were measured at cost less diminution in value, under India AS investments are measured at fair value. Net increase in fairvalue after reducing provision for current tax has resulted in increase of equity by Rs, 1981.79 Lakhs and Rs, 1177.12 Lakhs as at March 31,2016 and April 1,2015 respectively.

The fairvalue difference as on April 1, 2015 is effected to retained earnings and later increase/ decrease is effected to Other Comprehensive

Income (OCI). For the year ended March 31,2016 this has resulted in increase in Other Comprehensive Income (OCI) by Rs, 1246.36 Lakhs net of provision for current tax and decrease in net profit by Rs, 441.68 Lakhs due to redemption of investment held on April 1,2015 on those fairvalue difference is already effected to retained earings.

(e) Dividend and Dividend Tax :

Under India AS, dividend to holders of equity instruments is recognized as a liability in the year in which the obligation to pay is established. Under previous GAAP, dividend payable is recorded as a liability in the year to which it relates. This has resulted in an increase in equity by Rs, Nil and Rs, 2077.83 Lakhs as at March 31, 2016 and April 1, 2015 respectively.

(f) Tax Adjustments :

Tax adjustments include deferred tax impact on account of differences between previous GAAP and Ind AS. These adjustments have resulted in an increase in equity under Ind AS by Rs, 27.07 Lakhs and Rs, (35.45) Lakhs as at March 31, 2016 and as at April 1, 2015 respectively and increase in net profit by Rs, 62.51 Lakhs as at March 31, 2016.

Investments in Subsidaries

Investments in Subsidaries - Under Previous GAAP were measured at cost. Under Ind AS, the Company has designated these investments at cost only.

Investments in Associates & Other Equities

I nvestment in Associates & Other Equities - Under Previous GAAP were measured at lower of cost or market value . Under Ind AS, the Company has designated these investments at fair value through Other Comprehensive Income (OCI). Accordingly, these investments are required to be measured at fair value. At the date of transition to Ind AS, difference between the fair value of the instruments and the carrying value under Previous GAAP has been recognized in retained earnings. Fair value changes are recognized in the Statement of Other Comprehensive Income (OCI) for the year ended 31st March, 2016.

Rs, 500.00Lakhs paid to M/s. ASK Real Estate Fund, out of this 125 units of ASK Real Estate Special Situation Mutual Fund has been allotted for Rs, 125.00Lakhs. The balance amount of Rs, 375.00 Lakhs was kept as advance for further allotment of Real Estate Fund units.

Of the Trade Receivables balances, top 3 customers represent a balance of Rs, 3219.97 Lakhs as at 31st March 2017 and Rs, 1764.71 Lakhs as at 31st March 2016, and 3 customers represent more than 5% of the total balance of Trade Receivables as at 31st March 2017 and 2 Customers as at 31st March 2016.

The Average Credit period on sales of goods is 60 days.

The Company maintains a provision for doubtful debts based on ageing of receivable are considered as tool to determine the degree of liquidity. Receivable due for more than two years and balance considered doubtful, referred for recovery through legal proceeding are considered for provision.

Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs, 2 per share. Each shareholder is eligible for one vote per share held and carry a right to dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Share options granted under the Company’s employee share option plan

Share options granted under the Company''s Employee Share option plan carry no rights to dividends and no voting rights. Further details of the Employee Share option plan are provided.

Securities Premium Reserve: The amount received in excess of face value of the equity shares is recognized in Securities Premium Reserve. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

Employee Stock Options Outstanding Account: The fair value of the equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding Account.

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

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

The Company has received Loan from Department of Biotechnology, Ministry of scicence and technology, GOI for research in Hybrid Maize and Rice development. The loan is secured by all equipment, plant and machinery and other moveable assets of the company and is repayable in 10 equal half yearly installments starting from June, 2018.

Security Deposit

On appointment of distributor initially an amount is collected as deposit and accounted as security deposit, without bearing any interest , refundable and adjustable against the receivable at settlement shown in separately as liability.

1. Exceptional Items:

For the financial year 2015-16 the company based on notifications of the various State Governments has short provided royalty in comparison with M/s.Mahyco Monsanto Biotech India Ltd Agreement. On this issue legal cases were pending for which the company has shown an amount of Rs, 6550.57 Lakhs as contingent liability for the year 2015-16. In the subsequent period these legal issues have been sorted out and setteled in arbitration. The settled amount of Rs, 5923.80 Lakhs is provided in accounts as exceptional item.

2. Capital Management:

Equity share capital and other equity are considered for the purpose of Company''s capital management. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

3. FINANCIAL INSTRUMENTS

Refer Note 2.13 for accounting policy on Financial Instruments.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, current account balances with group companies and joint venture, trade payables and unpaid dividends at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

B. INCOME, EXPENSES, GAINS OR LOSSES ON FINANCIAL INSTRUMENTS

Interest income and expenses, gains or losses recognized on financial assets and liabilities in the Statement of Profit and Loss are as follows:

C. FAIR VALUE HIERARCHY

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1 : Quoted Prices for identical Instruments in an active Market

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs, and

Level 3: Inputs which are not based on observable market data

CALCULATION OF FAIR VALUES

The fair values of the financial assets and liabilities are defined as the price 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.

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

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

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

Other financial assets and liabilities

- Cash and cash equivalents (except for investments in mutual funds), trade receivables, investments in term deposits, other financial assets (except derivative financial instruments), trade payables,

and other financial liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-term nature.

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

4. FINANCIAL RISK MANAGEMENT

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

A. MANAGEMENT OF LIQUIDITY RISK

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

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2017 and 31st March, 2016. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

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

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

B. MANAGEMENT OF MARKET RISK

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

CURRENCY RISK PRICE RISK INTEREST RATE RISK

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

1. CURRENCY RISK

''POTENTIAL IMPACT OF RISK

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

As at 31st March, 2017, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital advances) Rs,and liabilities (trade payables and capital ''creditors) other than in their functional currency Rs,amounted to Rs, 0 Lakhs payable (31st March, Rs,2016 Rs, 0 Lakhs and 1st April, 2015 Rs, 0 Lakhs).

MANAGEMENT POLICY

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

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

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

SENSITIVITY TO RISK

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to approximately ''an additional Rs, 0 Lakhs gain in the Statement of ''Profit and Loss (2015-16: Rs, 0 Lakhs gain). A 5% ''weakening of the INR against these currencies ''would have led to an equal but opposite effect.

2. PRICE RISK

POTENTIAL IMPACT OF RISK

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

At 31st March 2017, the investments in debt mutual funds amounts to Rs, 62697.12 Lakhs (31st March, 2016 Rs, 48634.07 Lakhs and 1st April, 2015 Rs, 29430.05 Lakhs). These are exposed to price risk.

MANAGEMENT POLICY

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

SENSITIVITY TO RISK

A 0.5% increase in prices would have led to approximately an additional '' 313.49 Lakhs gain in the Statement of Profit and Loss (2015-16 Rs, 243.17 Lakhs gain). A 0.5 % decrease in prices would have led to an equal but opposite effect.

3. INTEREST RATE RISK

POTENTIAL IMPACT OF RISK

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

The company does not have any investment in interest sensitive securities/bonds as on 31st march 2017, 2016 and 2015.

MANAGEMENT POLICY

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

SENSITIVITY TO RISK

A 0.25% or .50% increase/decrease in interest rates will not make any difference to the company profit or loss as there are no interest rate sensitive investments.

C. MANAGEMENT OF CREDIT RISK

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

Trade receivables

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

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

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments money market liquid mutual funds and derivative instrument with financial institutions. The Company has set counter-parties limits based on multiple factors including financial position, credit rating, etc. The Company has given inter-corporate deposits (ICD) only to its subsidiaries amounting Rs, 0 Lakhs (31st March, 2016 Rs, 740 Lakhs and 1st April, 2015 Rs, 642 Lakhs).

The Company''s maximum exposure to credit risk as at 31st March, 2017, 2016 and 1st April, 2015 is the carrying value of each class of financial assets.

5. Related Party Transactions

50.1 Following is the list of related parties and their relationships

A. Key managerial persons and their relatives

1 Mr. G.V.Bhaskar Rao

2 Mrs. G. Vanaja Devi

3 Mr. R. Venumanohar Rao

4 Mr. C. Vamsheedhar

5 Mr. C. Mithun Chand

6 Mr. G.Pawan

7 Mrs. G. Madhusree

8 G.V.Bhaskar Rao - HUF

9 C. Vamsheedhar - HUF

10 R. Venumanohar Rao - HUF

B. Subsidary Companies:

11 M/s. Kexveg India Pvt Ltd

12 M/s. Aditya Agritech Pvt Ltd

13 M/s. Genome Agritech Pvt Ltd

14 M/s. Kaveri Microteck Pvt Ltd C Other related firms

15 M/s. Kaveri Infra_

6. Employee benefit plans

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

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

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

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

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

7. Operating Leases

The Company''s significant leasing arrangements are in respect of operating leases for lands and premises (Agricultural lands, office, stores, go down etc.). These leasing arrangements which are cancellable range between 11 months and 10 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

The company does not have any non-cancellable agreements.

8. Segment Information

9. The Company has only one business segment via, Seeds.

10. Geographical information

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

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

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

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

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Mar 31, 2016

1. CAPITAL COMMITMENTS

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for '' 29.23 Lakhs (170.63) Lakhs.

2. CONTINGENT LIABILITIES AND COMMITMENTS. a). Contingent Liabilities

Claims against the company not acknowledged as debts Rs, 7521.00 Lakhs (Rs, 159.90 Lakhs) This comprise:

i) Tax demands disputed by the Company relating to disallowances/additions of fiscal benefits, pending before various judicial forums and tax authorities, aggregating to Rs, 860.50 Lakhs (Rs, 22.36 Lakhs).

ii) Other matters not related to Tax aggregating to Rs, 10.75 Lakhs (Rs, 10.75 Lakhs).

iii) Royalty Payment for use of BT Cotton Technology Rs, 6550.57 Lakhs (NIL) (Refer Note No.34). v) Bank Gurantees Rs, 99.18 Lakhs (Rs, 126.79 Lakhs).

3. RELATED PARTIES DISCLOSURE:

Key Managerial Persons and their relatives

Mr. G.V.Bhaskar Rao Mrs. G. Vanaja Devi Mr. R. Venumanohar Rao Mr. C. Vamsheedhar Mr. C. Mithun Chand Mr. G.Pawan Mrs. G. Madhusree G.V.Bhaskar Rao - HUF C. Vamsheedhar - HUF R. Venumanohar Rao - HUF

Subsidiary Companies:

M/s. Kexveg India Pvt Ltd M/s. Aditya Agritech Pvt Ltd M/s. Genome Agritech Pvt Ltd M/s. Kaveri Microteck Pvt Ltd

Other Related Firms:

M/s. Kaveri Infra

4. The Company, based on Notifications of the various State Governments, has provided Royalty of '' 3,809.14 Lakhs for the year ended 31st March 2016 as against the Royalty Payable amount of Rs, 10,359.71 Lakhs as per the Agreement with service Provider and thus the expenses are short provided by Rs, 6,550.57 Lakhs.

5. Previous year''s figures have been regrouped / rearranged wherever necessary to confirm to those of current year.

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Mar 31, 2014

1. Capital Commitments

Estimated amount of contracts(net of advances) remaining to be executed on capital account and not provided for Rs.808.37 (282.25)Lakhs.

2. Contingent Liabilities and Commitments.

a) Contingent Liabilities

Claims against the company not acknowledged as debts Rs.146.65 Lakhs (Rs. 150.57 Lakhs) This comprise.

i) Tax demands disputed by the Company relating to disallowances/additions of fiscal benefits, pending before various judicial forums and tax authorities, aggregating to Rs. 22.36 Lakhs (Rs. 22.36 Lakhs)

ii) Other matters not related to Tax aggregating to Rs.10.75 Lakhs (Rs.10.75 Lakhs).

iii) Bank Gurantees Rs.113.54 Lakhs(Rs.117.46 Lakhs)

3. Related Parties Disclosure:

Key Managerial Persons and their relatives

Mr. G.V.Bhaskar Rao

Mrs. G. Vanaja Devi

Mr. R. Venumanohar Rao

Mr. C. Vamsheedhar

Mr. C. Mithun Chand

Mr. G.Pawan

Mrs. G. Madhusree

G.V.Bhaskar Rao - HUF

C. Vamsheedhar - HUF

R. Venumanohar Rao - HUF

Subsidary Companies:

M/s. Kexveg India Pvt Ltd M/s. Aditya Agritech Pvt Ltd M/s. Genome Agritech Pvt Ltd

Other Related Firms:

M/s. Kaveri Infra

4. Previous year''s figures have been regrouped/rearranged wherever necessary, to conform to those of the current year.

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Mar 31, 2013

1. Capital Commitments

Estimated amount of contracts(net of advances) remaining to be executed on capital account and not provided for Rs. 282.25 (683.78) Lakhs.

2. Contingent Liabilities and Commitments a. Contingent Liabilities

Claims against the company not acknowledged as debts Rs. 150.57 Lakhs (Rs. 164.85 Lakhs) This comprise.

i) Tax demands disputed by the Company relating to disallowances/additions of fiscal benefits, pending before various judicial forums and tax authorities, aggregating to Rs. 22.36 Lakhs (Rs. 53.08 Lakhs).

ii) Other matters not related to Tax aggregating to Rs. 10.75 Lakhs (Rs. 14.20 Lakhs).

iii) Bank Gurantees Rs. 117.46 Lakhs (Rs. 97.57 Lakhs)

3. Related Parties Disclosure:

Key Managerial Persons and their relatives

Mr. G.V.Bhaskar Rao

Mrs. G. Vanaja Devi

Mr. R. Venumanohar Rao

Mr. C. Vamsheedhar

Mr. C. Mithun Chand

Mr. G.Pawan

Mrs. G. Madhusree

G.V.Bhaskar Rao - HUF

C. Vamsheedhar - HUF

R. Venumanohar Rao - HUF

Subsidary Companies:

M/s. Kexveg India Pvt Ltd

Partnership Firms In which company is partner:

M/s. Aditya Agriteck

Transactions with related parties during the year

4. Segment Information:

The Company has identified two reportable segments viz., Seed Division and Micro Nutrients Division. Segment have been identified and reported taking into account nature of products and service, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

5. Previous year''s figures have been regrouped/rearranged wherever necessary, to conform to those of the current year.

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Mar 31, 2012

1 Capital Commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for Rs 683.78 (Rs 178.02) Lakhs.

2 Contingent Liabilities and Commitments

a. Contingent Liabilities

Claims against the company not acknowledged as debts Rs 164.85 Lakhs (Rs 125.33 Lakhs) This comprise.

i. Tax demands disputed by the Company relating to dis-allowances/additions of fiscal benefits, pending before various judicial forums and tax authorities, aggregating to Rs 53.08 Lakhs (Rs 25.38 Lakhs)

ii. Other matters not related to Tax aggregating Rs 14.20 Lakhs (Rs 14.20 Lakhs).

iii. Bank Gaurantees Rs 97.57 Lakhs (Rs 85.95 Lakhs)

3 Related Parties Disclosure

Key Managerial Persons and their relatives

GV Bhaskar Rao

G Vanaja Devi

R Venumanohar Rao

C Vamsheedhar

C Mithun Chand

G Pawan

G Madhusree

GV Bhaskar Rao - HUF

C Vamsheedhar - HUF

R Venumanohar Rao - HUF

Subsidary Companies

M/s Kexveg India Pvt Ltd

Transactions with related parties during the year

4 Segment Information

The Company has identified two reportable segments viz., Seed Division and Micro Nutrients Division. Segment have been identified and reported taking into account nature of products and service, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

5 Previous year's figures have been regrouped/rearranged wherever necessary, to conform to those of the current year.

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Mar 31, 2011

1. Contingent Liabilities not Provided for

(Rs. in Lacs)

S.No Particulars 2010-11 2009-10

a Bank Guarantees 96.70 120.89

b Claims a gain st the company not acknowledged as debts 28.83 36.74

2. Sundry Creditors

i, in respect of the amounts mentioned under section 205C of the Companies Act, 1956 no dues are to be credited to the Investor Education and Protection Fund as at March 31st, 2011.

ii. Disclosure as per the provision of Micro,Small and Medium Enterprises Development Act, 2006.

3. Deferred Tax Liability:

In conformity with Accounting Standards 22 on Accounting for Taxes on Income issued by Institute of Chartered Accountants of India, the Company hasprovided for the Deferred Tax Liability in the books of Accounts,

4. Segment Information:

The Company has identified two reportable segments viz., Seed Division and Micro Nutrients Division. Segment have been identified and reported taking into account nature of products and service, the differing risks and returns and the interna] business reporting systems. The accounting policies adopted for segment reporting are in line witli the accounting policy of the company with following additionaI policies for segment reporting.

5. Some of the balances under sundry debtors, sundry creditors, deposits, loans and advances payable / receivable are subject to confirmation and reconciliation,

6. Previous year's figures have been regrouped/rearranged wherever necessary, to conform to those of the current year,

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Mar 31, 2010

1. Sundry Creditors

i. In respect of the amounts mentioned under section 205C of the Companies Act, 1956 no dues are to be credited to the Investor Education and Protection Fund as at March 31 st, 2010.

ii. Disclosure as per the provisions of Micro, Small and Medium Enterprises Development Act, 2006.

2. Deferred Tax Liability:

In conformity with Accounting Standards 22 on Accounting for Taxes on Income issued by Institute of Chartered Accountants of India, the Company has provided for the Deferred Tax Liability in the books of Accounts.

3. Segment Information:

The Company has identified two reportable segments viz., Seed Division and M,cro Nutrients Division. Segment have been identified and reported taking into account nature of products and service, the differing risks and returns and the internal business reporting systems. The accounting polices adopted for segment reporting are in line with the accounting policy of the company with following additional polices for segment reporting.

4. Some of the balances under sundry debtors, sundry creditors, deposits, loans and advances payable / receivable are subject to confirmation and reconciliation.

5. Figures in brackets represent those relating to the previous year

6. Previous years figures have been regrouped/rearranged wherever necessary, to conform to those of the current year.