1 MATERIAL ACCOUNTING POLICIES:

A Basis of Preparation and Presentation

i) The financial statements are prepared in accordance with applicable Indian Accounting Standards (Ind AS) and
on accounting principles of going concern which are measured at fair values except Property, Plant & Equipments,
which are accounted for on historical cost basis. These financial statements have been prepared to comply with all
material aspects with the Indian accounting standards notified under section 133 of the Act, (the "Act") read with
Rule 7 of the Companies (Accounts) Rules, 2014, and the other relevant provisions of the Act.

H) Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in

use.

iii) All assets and liabilities have been classified as current or non-current as per the Company's normal operating
cycle and other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between
the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current classification of assets and liabilities.

B REVENUE RECONGNTION

I) Revenue is measured at the transaction valued considered as fair value of the consideration received or
receivable where the ownership and significant risk has been transferred to the buyer.

il) interest on overdue debtors is accounted for as and when received, as the collection cannot be ascertained with
reasonable certainty.

Ill) Sales return are accounted for / provided for in the year of return.

Iv) Compensation on account of crop quality discounts are accounted for as and when settled.

C PROPERTY, PLANT AND EQUIPMENTS

LViTteted ^production °^{r stJ}PP'V ^ofa°ods °r services, or for administrative purposes,

are stated in the balance sheet at cost less accumulated depreciation. Freehold land Is not depreciated.

aL^Aumu^!mpa³irmen^Pt7^: ^ ^ ^E™^{entS are Sta,ed at c}°^st -cumulated depreciation and

are^expeeled tiTa rls^ro^the^ontinu'e<T^* ^{iS derec}°9"^ised «'sposa, or when no future economic benefits

D CAPITAL WORK-IN-PROGRESS

administrative parpo... „ cHm, a, epat,

E DEPRECIATION /AMORTIZATION

Depreciation is charged on the WDV Method based on the estimated useful life prescribed under Schedule II to the

P IMPAIRMENT

asset/cash generating unit is made Assets 1™ Ý ^ex,sls' ^an estimate of the recoverable amount of the

ssssszi" Ý^{at th}*

accounting periods may no " '^mPa,m,ent ^

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G RESEARCH AND DEVELOPMENT EXPENDITURE:

The Research Expenditure (other than capital expenditure) incurred is charged off to the Statement of Profit &
Loss.

H INVENTORIES:

i) Inventories comprise of Unprocessed seeds, Under- Processed Seeds, Processed Seeds, Packing Material and
traded goods. Inventories are valued at the lower of cost or the net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost is determined on Weighted Average basis. Cost
Includes all charges in bringing the goods to their present location and condition and receiving charges.

ii) The cost of Under-Processed Seeds and Processed Seeds comprises of direct labour, other direct costs and
related production overheads. Net realizable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make the sale.

I FOREIGN CURRENCY TRANSACTIONS:

i) Transactions in foreign currency are recorded at the rate prevailing on the date of the transaction.

ii) Current Assets and Current Liabilities in foreign currency outstanding as at the year-end are stated at the rates
of exchange prevailing at the close of the year. The resultant gains/losses of the year are recognized in the
Statement of Profit and Loss.

J EMPLOYEES BENEFITS:

Liability as at the year end in respect of retirement benefits is provided for and/ or funded and charged to
Statement of Profit and Loss as follows:

i) Provident Fund / Family Pensions:

At a percentage of salary/wages for eligible employees.

ti) Retirement benefit costs and termination benefit

The Company determines the present value of the defined benefit obligation and recognizes the liability or asset in
the balance sheet.

The present value of the obligation is determined using the projected unit credit method, with actuarial valuations
being carried out at the end of each year

Defined benefit costs are composed of:

(a) service cost - recognized in profit or loss; service cost comprises (i) current cost which is the increase in the
present value of defined benefit obligations resulting from employee service in the current period, (ii) past service
cost which is the increase in the present value of defined benefit obligations resulting from employee service in the
prior periods resulting from a plan amendment, and (iii) gain or loss on settlement.

(b) remeasurements of the liability or asset - recognized in other comprehensive income.

(d) remeasurements of the liability or asset essentially comprise of actuarial gains and losses (he. changes in the
present value of defined benefit obligations resulting from experience adjustments and effects of changes in
actuarial assumptions).

Short-term benefits: A liability is recognised for benefits accruing to employees in respect of wages and salaries
annual leave and sick leave and other short term benefits in the period the refated service is rendered at the
undiscounted amount of the benefits expected to be paid in exchange for that service,

£e ^ben®^fits: ^abilities recognised in respect of other long-term employee benefits are measured at

„_rn ^P. .. ^valuf ^{of 1116 estlm}ated future cash outflows expected to be made by the Group In respect of services
provided by employees up to the reporting date.

iii) Bonus

The company recognises a liability and expense for bonus in the year of payment. The company recognises a
provision where contractually obliged or where there is past practice that has created a constructive obligation.

K BORROWING COST

L⁰Zr,n⁹|^{COStS di}™^tJ.^{y attributable to} «« acquisition, construction or production of qualifying assets, which are
r“r^C^f^an,y^^{ke 3 substantiat} P^erlod °^{f bme} Set ready for their intended use, are added to the cost of

a^recoanTse^inThe S? “ T ^SUb"^al|y ^read* ^for their intended use. All other borrowing costs

are recognised in the Statement of Profit and Loss in the period in which they are incurred The company

determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on tij

r ^,CSS ^ ^interest earned on temporary investment^ specie Arrowing_s

nnrnnco to the extent that an entity borrows tunas specifically for the

r_aSi™a_a^rf^,S,^{a q} ^ °r^Sr^L *? ^{case if thC c}°^m*>^a"Y borrows generally and uses the funds for obtaining
e^SiTes^£™_E^WeLThfc™ ** ^C™^isati°" ^{are de,ermi}"^ed by applying a capitalisation rate to the

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l) Income from the agricultural activities is accounted for up to the stage of dispatch of goods by the Company to
the customer after processing.

ii) Expenses which are directly related to the agricultural activities have been accounted for in the books of account
under the Production Expenses. Expenses which are not related to the specific activities are allocated on the basis
of turnover (net of return and Schemes & Discounts) of Agricultural activities and Trading activities.

M EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered
in ascertaining the Company’s earnings per share is the net profit for the year attributable to equity share holders.
The weighted average number of equity shares outstanding during the year and for all years presented is adjusted
for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the
number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity
shares.

N TAXATION
INCOME TAX

Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per
applicable provisions of Income Tax Act 1961.

DEFERRED TAX

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profiL Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounted
profit ³

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is
highly probable that future economic benefit associated with it will flow to the Company.

r,r_br,:^s::id^d₀:^ia:f^es a? ***** ^{rates are expe}°^ted 10 -w** p*** m

t habt fty is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

°f‘l^red f^{sets and} deferred ta* liabilities are offset if a legally enforceable right exists to set off current tax
authority⁹³ "^St ^ ^{defelTed ta}*^{es relate} t0 enfi**and Z“sameSK

Current and deferred tax for the period

recognised in profit or loss, except when they relate to items that are recognised in
n ? T™ °^{r y m eqUity}’ ^{in which caae}- current and deferred tax are also recognized

nlS L?ouK^efa^Vb?_sr ^ ^reSpectJVe'y ^Where or deferred tax arises from the

combination combination, the tax effect is included In the accounting for the business

The Company recognises interest levied and penalties related to Income Tax assessments In the tax expanse.

0 USE OF ESTIMATES

Imn.?7^Parf^ati0n *°^{f Fi}'T^0ial Statements requires estimates and assumptions to be made that affect the reoorted
“f^u ^and "^{abi,ities da}‘« financial Statements and the reoorted amnl* o

tli- —^{1 a}"« - —— « recognised in