2 e) Material Accounting Policies
The material accounting policies adopted in preparation of standalone financial statements has been disclosed in the
pertinent note along with other information. All accounting policies has been consistently applied to all the periods
presented in the standalone financial statements unless otherwise stated.
2 f) Key accounting estimates and judgements
The preparation of the Company's standalone financial statements requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Estimates and underlying assumptions are
reviewed on an ongoing basis. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Revisions to accounting estimates are recognised prospectively. The changes in the estimates are reflected in the
Standalone financial statements in the period in which changes are made and, if material, their effects are disclosed
in the notes to the Standalone financial statements.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below:
Critical accounting estimates, judgements and key sources of estimation uncertainty
Revenue Recognition: Revenue is recognised upon transfer of control of promised products or services to customers
in an amount that reflects the consideration which the Company expects to receive in exchange for those products
or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume
discounts, price concessions and incentives, if any, as specified in the contract with the customer. The Company
exercises judgment in determining whether the performance obligation is satisfied at a point in time or over a period
of time.
Employee retirement plans: The Company provides defined benefit employee retirement plans. Measurement of
obligations under such plans require numerous assumptions and estimates that can have a significant impact on the
recognized costs and obligation, such as future salary level, discount rate, attrition rate and mortality etc.
Recognition of current tax and deferred tax (including MAT credit entitlements)
The Company uses judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances,
and disallowances which is exercised while determining the provision for income tax. Deferred income tax expense is
calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes
and their respective tax basis that are considered temporary in nature. Valuation of deferred tax assets (including
MAT credit entitlement) is dependent on management's assessment of future recoverability of the deferred benefit.
Expected recoverability may result from expected taxable income in the future, planned transactions or planned tax
optimizing measures. Economic conditions may change and lead to a different conclusion regarding recoverability
Useful lives of depreciable/ amortisable assets (tangible and intangible): The Company uses its technical expertise
along with historical and industry trends for determining the economic life of an asset/component of an asset. The
useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortised
depreciable amount is charged over the remaining useful life of the assets. Uncertainties in these estimates relate
to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT
equipment and other plant and equipment.
Recognition and measurement of provisions and contingencies
The Company estimates the provisions that have present obligations as a result of past events and it is probable
that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each
reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgements to assess contingent liabilities.
The Company does not recognize contingent liability but discloses its existence in the Standalone financial statements.
Refer note 28 for details.
Loss allowance on trade receivables
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect
current and estimated future economic conditions. The Company considered current and anticipated future economic
conditions relating to industries the Company deals with, and the countries where it operates. The identification of
credit impaired balances of trade receivable requires use of judgments and estimates. Where the expectation is
different from the original estimate, such difference will impact the carrying value of the trade and other receivables,
and credit impaired expenses in the period in which such estimate has been changed. Refer note 8 (b) for details.
Biological Assets
Tissue culture plantations: Estimates and judgements in determining the fair value of tissue cultured plants relate
to market prices, quality of plants, and mortality rates. The impact of discounting is not considered material as the
transformation cycle is less than 6 months. Refer Note No.12 (b) for details.
3) PROPERTY, PLANT AND EQUIPMENT
Accounting Policy:
Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative
purposes, are measured at cost / deemed cost, less accumulated depreciation and impairment losses, if any. Cost of
Property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for
its intended use and estimated attributable costs of dismantling and removing the item and restoring the site on which
it is located.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation
of overheads, directly attributable borrowing costs.
Depreciation is provided on a pro rata basis using straight line method over the estimated useful life of the fixed assets
taking into consideration their estimated residual values. All the assets have been provided depreciation based on life
of assets taken on the basis of technical assessment by the management on Straight Line Method. Further, green
house, shades and poly houses are depreciated at 10% and screw barrels used in moulding machines and PVC pipes
are depreciated at 12.50% and 25% per annum. The Management believes that depreciation rates currently used fairly
reflect its estimate of the useful life and residual values of fixed assets, though these rates in certain cases are different
from lives prescribed under Schedule II.
Freehold land is not depreciated. Useful lives and residual values are reviewed at each financial year end and adjusted,
as appropriate.
The assets residual values and useful life are reviewed, and adjusted if appropriate, at the end of each reporting period.
Orchards
The Group is engaged into orchard activities. The Orchards are regarded as bearer plant and presented as property, plant
and equipment. The orchards are recognised at historical cost less depreciation. Depreciation is calculated using the
straight-line method to allocate their cost, net of their residual values, over a period of 15 years from the date of planting.
Orchard mortality is charged to Statement of Profit and Loss.
Capital work-in-progress
Capital work-in-progress assets in the course of construction for production or/and supply of goods or services or
administrative purposes, or for purposes not yet determined, which are not ready for intended use as on the date of
Balance Sheet are disclosed as Capital work-in-progress and are carried at cost, less any recognised impairment loss,
if any. Directly attributable expenditure (including finance costs relating to borrowed funds/general borrowings for
construction or acquisition of property, plant and equipment) incurred on project under implementation are treated as
Pre-operative expenses pending allocation to the asset and are shown under CWIP
Intangible assets acquired are reported at cost less accumulated amortization and accumulated impairment losses, if
any. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
annually, and whenever there is an indication that the asset may be impaired.
The Company recognises right to use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right to use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost to right to use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date.
Right to use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful
lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of
a purchase option, depreciation is calculated using the estimated useful life of the asset.
The Company has carried out the fair valuation of property involving external independent valuation expert. As per the
fair valuation report dated March 31,2025 the fair value of investment property is ' 129.22 (the fair value of investment
property as on March 31,2024 was ' 162.79). The valuation model has considered various input like cost, location,
market appreciation, etc.
The Company has no restrictions on the realisability of its investment properties and no contractual obligations to
purchase, construct or develop investment properties or for repairs, maintenance and enhancements. The fair value of
investment property has been determined using Level 3 inputs under IND AS 113, based on market rates available for
similar properties in the location.
7) FINANCIAL ASSET
Accounting Policy:
All financial assets are recognised on trade date when the purchase of a financial asset is under a contract whose term
requires delivery of the financial asset within the timeframe established by the market concerned. Financial assets are
initially measured at fair value, plus transaction costs, except for those financial assets which are classified at fair value
through profit or loss (FVTPL) at inception. All recognised financial assets are subsequently measured in their entirety at
either amortised cost or fair value.
Initial Recognition and Subsequent Recognition
i) Amortised Cost
Financial assets are subsequently measured at amortised cost using the effective interest method, if these financial
assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows
and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Financial assets classified at amortised cost comprise Investment in debt instruments, loans, trade receivables, cash
and cash equivalent, other bank balance and other financial assets except derivative.
ii) Fair value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are
solely payments of principal and interest on the principal amount outstanding and selling financial assets.
On initial recognition, the Company has an irrevocable option to present changes in the fair value of equity investments
not held for trading in OCI. This option is made on an investment-by-investment basis.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising
from changes in fair value recognised in other comprehensive income and accumulated in other Equity. Where the
asset is disposed of, the cumulative gain or loss previously accumulated in the other Equity is directly reclassified to
retained earnings.
iii) Fair value through profit and loss (FVTPL)
Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or
at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in
statement of profit and loss.
Refer Note 36 for disclosure related to Fair value measurement of financial instruments.
De-recognition of financial asset
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity.
Impairment
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and
unbilled revenues which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled
revenues with no significant financing component is measured at an amount equal to lifetime ECL. For all other
financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been
a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect
current and estimated future economic conditions. The Company considers current and anticipated future economic
conditions relating to industries the Company deals with and the countries where it operates.
The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that
is required to be recorded is recognized as an impairment loss or gain in statement of profit and loss.
Investment in Subsidiaries and associates
The investments in subsidiaries and associates are carried in the financial statements at historical cost except when
the investment, or a portion thereof, is classified as held for sale, in which case measured at lower of carrying amount
and fair value less costs to sell. When the Company is committed to a sale plan involving disposal of an investment,
or a portion of an investment, in any subsidiary or associate, the investment or the portion of the investment that will
be disposed of is classified as held for sale when the criteria described above are met. Any retained portion of an
investment in a subsidiary or a associate that has not been classified as held for sale continues to be accounted for at
historical cost.
Investments in subsidiaries and associates carried at cost are tested for impairment in accordance with Ind AS 36
Impairment of Assets
During the Income Tax Assessment proceedings, certain additions on account of Transfer pricing adjustments for the
years FY 2012-13 to FY 2022-23 having a tax impact of approx. ' 600 have been made which are contested by the
company at CIT(A)/ITAT/High Court and are pending adjudication. Based on the expert opinion and management's
estimates, it is not considered probable that an outflow of resources embodying economic benefits will be required to
settle the obligation.
12 a) INVENTORIES
Accounting Policy:
Raw materials, stores and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials
and all other costs incurred in bringing the inventories to their present location and condition. Cost of finished goods
comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the
latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory
arrived on weighted average basis. Costs of purchased inventory are determined after deducting rebates and discounts.
However, materials and other supplies held for use in the production of inventories (finished goods) are not written down
below the cost if the finished products in which they will be used are expected to sell at or below the cost.
b) BIOLOGICAL ASSETS OTHER THAN BEARER PLANTS
Accounting Policy:
Tissue culture plants
The Company sells tissue cultures plants of banana, strawberry, pomegranate & others to its customers. Tissue culture
is a process where, propagation of a plant by using a plant part or single cell or Company cell is done in a test tube under
very controlled and hygienic conditions.
The tissue culture plants are valued at their fair value less cost to sell at the end of each reporting period. Changes in
fair value are recognised in the Statement of Profit and Loss. Farming costs such as manure, soil preparation, laboratory
maintenance and poly-house maintenance expenses are expensed as incurred.
During the Financial year 2024-25, Company has cultured total 108.92 million nos of plants and 16,060 MT of potato
seed under tissue culture process (FY 2023-24:132.23 million nos of plants and 7,698 MT of potato seed). During the
year, the Company sold112.97 million nos of cultured plantations and 12,301 MT of potato seeds (FY 2023-24: 132.36
million of cultured plantations and 5,834 MT of potato seeds).
Inventories and biological assets stated above are part of total current assets hypothecated on a first pari-passu charge
basis to the working capital consortium members led by State Bank of India.
i) Fair value information:
The fair value measurements of Tissue culture plantations have been categorised as Level 3 fair values based on the
inputs to the valuation techniques used. The following table shows the gain or losses recognised in relation to level 3
fair values.
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