(xv) Foreign currency transactions and translation
Financial statements have been presented in Indian Rupees('), which is the Company’s functional and
presentation currency. A company's functional currency is that of the primary economic environment in
which the company operates.
Foreign currency transactions are translated into the functional currency using the exchange rate at the
date of the transaction. Foreign exchange gains/ losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated in foreign currencies at year end
exchange rates are recognised in the Statement of Profit and Loss.
1.4 Significant accounting judgements, estimates and assumptions:
The Preparation of these financial statements requires managements judgements, estimates and
assumptions that affect the application of accounting policies, the accounting disclosures made and the
reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates
are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to
such revisions.
f) Rights and preferences attached to the equity shares
i. The Company has only one class of equity share having par value of '10 per share. Each holder of equity
share is entitled to one vote per share.
ii. In the event of winding up the equity shareholders will be entitled to receive remaining assets of the Com¬
pany, after distribution of all preferential amounts. The distribution will be in proportionate to the number of
equity shares held by the shareholders.
iii. The Dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing
Annual General Meeting except in the case of interim dividend.
Note No. 34
Contingent liabilities, not provided for in respect of :
(i) Claims by certain parties against the company not accepted and not provided for ' 673.32 lacs (Previous Year
' 652.82 lacs).
(ii) Income Tax (matters in appeals) of ' 342.60 lacs (Previous year ' 342.60 lacs ).
iii) Guarantees issued by bank on behalf of the Company as on March 31, 2025 is ? 4.00 lacs (Previous year
? 4.00 lacs)
Note No. 35
Company acted as a facilitator for Schedule Banks ' 5404.93 lacs (Previous year ' 5974.65 lacs) for loans
provided to the farmers, grouped under trade payables / trade advances.
Note No. 38
Income tax calculation has been made considering certain expenses/adjustments available as assessed by the
management.
Note No. 39
Based on information available with the Company in respect of MSME (‘The Micro Small & Medium Enterprises
Development Act 2006'). The details are as under:
i) Principal and Interest amount due and remaining unpaid as at 31st March 2025 ' Nil (previous year ' Nil).
ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (previous year - Nil).
iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid
but beyond the appointed day during the year) but without adding the interest specified - Nil (previous year
- Nil).
iv) Payment made beyond the appointed day during the year - Nil (previous year - Nil).
v) Interest Accrued and unpaid as at 31st March 2025 - Nil (previous year - Nil).
Note No. 40
Foreign Currency exposure not hedged as at Balance sheet Date:
Net receivable ' Nil - US$ Nil (Previous year ' Nil Lacs - US$ Nil), Net payable ' Nil (US$ Nil) (Previous year
' Nil lacs (US$ Nil) ) and Buyers Credit ' Nil (Previous year Nil)
Note No. 47
Financial Risk Management Objectives and Policies.
The Company’s Financial Risk Management is an integral part of how to plan and execute its Business Strategies.
The Company’s Financial Risk Management Policy is set by the Board. The Company’s activities are exposed
to a variety of financial risks from its operations. The key financial risks include market risk (including foreign
currency risk, interest rate risk and commodity risk etc.), credit risk and liquidity risk.
47.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash flows that may results
from change in the price of a financial instrument. The value of a financial instrument may change as result of
change in the interest rates, foreign currency exchange rates, equity prices and other market changes may affect
market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments and
deposits, foreign currency receivables, payables and loans and borrowings. Market risk comprises mainly three
types of risk:
Interest rate risk, currency risk and other price risk such as equity price risk and commodity risk.
The Company has an elaborate risk management system to inform Board Members about risk management and
minimization procedures.
a) Foreign Currency Risk :
Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company makes certain imports and exports in foreign currency &
therefore is exposed to Foreign Exchange Risk. The Company evaluates exchange rate exposure arising from
foreign currency transactions. The Company has not undertaken any hedging activities for foreign exchange.
ine assumed movement in oasis points tor tne interest rate sensitivity analysis is oasea on tne currently
observable market environment.
(c) Commodity Price Risk and Sensitivity:
Commodity price fluctuations can have an impact on the demand of seeds for particular crop. Therefore, we
track the commodity price movements very closely and take advance production decisions accordingly.
In addition to the above, Company also maintains a strategic buffer inventory to ensure that such disruptions do
not impact the business significantly.
47.2 Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer
contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily
trade receivables).
47.2a Trade Receivables: Customer credit risk is managed based on company’s established policy, procedures
and controls. The company assesses the credit quality of the counterparties, taking into account their financial
position, past experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company
has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are
regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting
date on an individual basis. However a large number of minor receivables are grouped into homogenous groups
and assessed for impairment collectively.
47.2b. Advance to suppliers are net of provision/loss allowances made for Doubtful advances of ' 39.91 lacs
(Previous year ' 39.91 lacs). (Refer note 15)
47.2c. ECL impairment loss allowance (or reversal) recognized during the period as income/ expense in the
Statement of Profit and Loss under the head ‘Other expenses’. The balance sheet presentation for financial
instruments is described below:
i) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross
carrying amount.
ii) Financial Assets includes ' 1823.61 lacs towards Trade Receivables and Security Deposit of ' 121.68 lacs
shown under the heading “Deposit with Government Authorities and others” from Rajasthan State Seed
Corporation (RSSC). In earlier years, the company has filed claim before the arbitral tribunal against RSSC
which was not allowed on technical grounds of limitation without examining the matter on merits. The company
has filed an application under sec 34 of the Arbitration and Conciliation Act 1996 challenging the said order of
the arbitral tribunal before the commercial court Jaipur which have been accepted and proceedings are going
on. During previous year RSSC filed Special Leave Petition (SLP) in the Hon’ble Supreme Court against the
orders of High Court of Rajasthan in miscellaneous application which was dismissed in our favour. Based on
the legal opinion, the company has good case for realisation of the recovery of above amount. Hence, the
stated outstanding amount have considered good and recoverable by the management.
iii) The Company has initiated legal proceedings against Uttar Pradesh Seed Development Corporation
(UPSDC) and the Department Of Agriculture, Government of UP for recovery of the overdue outstanding of
' 952.00 lacs out of which ' 258.66 lacs was received (includes ' 54.87 Lacs received during current year).
The current outstanding is ' 693.34 lacs (Previous year ' 748.21 lacs) for which necessary provision were
made under expected credit loss allowance in the books of accounts.
The Company has filed an application under the Arbitration and Conciliation Act 1996 for appointment of
Arbitrator for recovery of the aforesaid overdue amount from UPSDC. Hon’ble High court did not allow
the application and held that the dispute is not covered by the arbitration. As such the Company had
filed a separate writ petition in 2019 before the Hon’ble High court Lucknow against Uttar Pradesh Seed
Development Corporation (UPSDC) and the Department Of Agriculture, Government of UP for recovery of
the overdue outstanding of ' 952 lacs basing on the facts of the case and other circumstances took place
after filing the writ petition, the company has good chance of recovery.
47.2d. Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/
reconciliation.
47.3 Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. when both normal
and stressed conditions, without incurring unacceptable losses or risking damages to the company’s reputation.
Maturity Profile of Financial Liabilities:
The following Table provides undiscounted cash flows towards financial liabilities into relevant maturity based on
the remaining period at the balance sheet to the contractual maturity date
Note No. 48
Capital Risk Management:
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. The Company’s primary objective when managing capital is to
ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability
to continue as a going concern in order to support its business and provide maximum returns for shareholders.
The Company also proposes to maintain an optimal structure to reduce the cost of capital. For the purpose of
the Company’s capital management, capital includes issued capital, securities premium and all other equity
reserves. Net debt includes, interest bearing loans and borrowings, less cash and cash equivalents.
Fair Valuation Techniques:
The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best
and most relevant data available. The Fair Values of the Financial Assets and Liabilities are included at the
amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances,
trade receivables, trade payables and other financial liability at carrying value because their carrying amounts
are a reasonable approximation of the fair values due to their short term nature.
Fair value of Investments in quoted mutual funds are based on quoted market price at the reporting date.
The Company does not have any asset or liabilities that can be grouped into Level 1 to Level 3 for Fair value
measurement
Note No. 53
Impairment Testing of Intangible Assets
The Brands are considered to have an Indefinite useful life on the basis of the expected longevity and tested for
impairment annually, in case there is any indication for impairment of carrying value. Based on internal analysis
and relevant factors, the Management is of the opinion that, the brand is expected to continue to generate cash
flows for an undetermined period.
Note No. 54
Exceptional Items include net gain on sale of agricultural land of ' 6120.97 Lacs and this is to be read with Note
No 33
Note No. 56
Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide
Notification dated March 24, 2021:
a. There are no proceedings which have been initiated or pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
b. The Company has not been declared as Willful Defaulter by any Bank or Financial Institution or other Lender.
c. During the year, the Company does not have any transactions with the companies struck off under section
248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
d. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.
e. During the financial year ended March 31,2025, other than the transactions undertaken in the normal course
of business and in accordance with extant regulatory guidelines as applicable.
(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the un¬
derstanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
or the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(ii) No funds (which are material either individually or in the aggregate) have been received by the Com¬
pany from nay person or entity, including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether,direclty or indirectly, lend or
invest in other persons or entities indentified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
f. The Company does not have any transactions not recroded in the books of accounts that has been surren¬
dered or discarded as income during the year in the tax assessments under the Income Tax Act,1961 (such
as, search or survey or nay other relevant provisions of the Income Tax Act, 1961). Also, there are nil previ¬
ously unrecorded income and related assets.
g. No schme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of
the Companies Act, 2013 during the year ended March 31,2025.
h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
i. The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMP’s
and the related parties (As per Companies Act, 2013), which are repayable on demand or without specifying
any terms or period of repayments.
Note No. 57
Previous year’s figures have been re-grouped/re-classified/recast wherever necessary.
As per our report of even date.
For Lodha & Co LLP G.SRAVANA KUMAR DR. RAGHUPATI SINGHANIA Directors:
Chartered Accountants Chief Financial Officer Chairman (DIN: 00036129) AJAY SRIVASTAVA
(DIN: 00049912)
SHYAMAL KUMAR ANOOP SINGH GUSAIN VIKRAMPATI SINGHANIA KALPATARU TRIPATHY
Partner Company Secretary Managing Director (DIN: 00040659) (DIN: 00865794)
FIRM REGISTRATION NO. 301051E/E300284 MUDIT KUMAR
Membership No. 509325 KULDEEP KUMAR PANDIT (DIN: 00141585)
New Delhi, 16 May, 2025 President & Director (DIN: 08381208)
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