Material accounting policies

3.5 Property plant and equipment (PPE)

(a) Recognition and measurement

The cost of an item of property, plant and equipment shall be
recognised as an asset if, and only if it is probable that future
economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably.

On adoption of Ind AS, the Company retained the carrying
value for all of its property, plant and equipment as
recognised in the financial statements as at the date of

transition to Ind AS, measured as per the previous GAAP
and used that as its deemed cost as permitted by Ind AS 101
'First-time Adoption of Indian Accounting Standards'.

PPE including capital work-in-progress are initially recognised
at cost. The initial cost of PPE comprises its purchase price,
including non-refundable duties and taxes net of any trade
discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended
use and estimated costs of dismantling and removing the
item and restoring the site on which it is located.

Subsequent to initial recognition, PPE are stated at cost less
accumulated depreciation (other than freehold land, which
are stated at cost) and impairment losses, if any.

Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.

The residual values, useful life and depreciation method
are reviewed at each financial year-end to ensure that the
amount, method and period of depreciation are consistent
with previous estimates and the expected pattern of
consumption of the future economic benefits embodied in
the items of property, plant and equipment.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any
gain or loss arising on disposal or retirement of an item of
property, plant and equipment is determined as the difference
between sales proceeds and the carrying amount of the asset
and is recognised in profit or loss. Fully depreciated assets still
in use are retained in the financial statements.

(b) Depreciation

Depreciation is recognised so as to write off the cost of assets
(other than freehold land and capital work in progress) less
their residual values over the useful lives, using the straight¬
line method ("SI_M"). Management believes based on a
technical evaluation (which is based on technical advice,
taking into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past

history of replacement, anticipated technological changes,
manufacturers warranties and maintenance support, etc.) that
the useful lives of the assets reflect the periods over which
these assets are expected to be used, which are as follows:

The carrying values of property, plant and equipment
are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not
be recoverable.

Useful lives and residual lives are reviewed annually at
reporting date and adjusted if appropriate. Based on
internal technical evaluation and consequent advice, the
management believes that its estimates of useful lives
as given above best represent the period over which
management expects to use these assets.

Depreciation on additions/ (disposals) is provided on pro
rata basis i.e. from/ (upto) the date on which assets is ready
for use/ (disposed of).

c) Gain or Loss on Disposal

Any gain or loss on disposal of property, plant and equipment
is recognised in the Statement of Profit and Loss.

3.6 investment Property

(a) Recognition and Measurement

Flats in buildings held to earn rentals or for capital
appreciation or both rather than for use in the production or
supply of goods or services or for administrative purposes;
or sale in the ordinary course of business is recognised as
Investment Property.

An investment property is measured initially at its cost.
The cost of an investment property comprises its purchase
price and any directly attributable expenditure. After initial
recognition, the Company carries the investment property
at cost less accumulated depreciation and accumulated
impairment, if any.

Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the
expenditure will flow to the Company and the cost of the
item can be measured reliably.

Transfers to (or from) investment property are made only
when there is a change in use. Transfers to/from investment
property do not change the carrying amount of the property
transferred and they do not change the cost of that property
for measurement or disclosure purposes.

The residual value and the useful life of an asset is reviewed
at least at each financial year-end and, if expectations differ
from previous estimates, the change(s) is accounted for
as a change in an accounting estimate in accordance with
Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors.

Investment property is derecognised either when it has
been disposed of or when it is permanently withdrawn from
use and no future economic benefit is expected from its
disposal. Any gain or loss on disposal of investment property
(calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognised
in profit or loss.

(b) Depreciation

As per paragraph 56 of Ind AS 40 - Investment Property, after
initial recognition, the Company measures all of its investment
property in accordance with Ind AS 16 - Property, Plant and
Equipment requirements for cost model. The depreciable
amount of an item of investment property is allocated on a
systematic basis over its useful life. The Company provides

depreciation on the straight line method. The Company
believes that straight line method reflects the pattern in
which the asset's future economic benefits are expected to
be consumed by the Company. Based on internal technical
evaluation, the management believes useful lives of the assets
are appropriate. The depreciation method is reviewed at least
at each financial year-end and, if there has been a significant
change in the expected pattern of consumption of the future
economic benefits embodied in the asset, the method is
changed to reflect the changed pattern. Such a change
is accounted for as a change in an accounting estimate in
accordance with Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors.

The depreciation charge for each period is recognised in the
Statement of Profit and Loss.

The estimated useful lives for the current and comparative
periods are as follows:

(c) Fair Value

Fair value of investment property is based on a valuation by
an independent valuer who holds a recognised and relevant
professional qualification and has recent experience in the
location and category ofthe investment property being valued.
The fair value of investment property is disclosed in Note 5.

(d) Gain or Loss on Disposal

Any gain or loss on disposal of an Investment Property is
recognised in the Statement of Profit and Loss.

3.7 Other intangible assets

Other intangible assets are measured on initial recognition
at cost and subsequently are carried at cost less accumulated
amortisation and accumulated impairment losses, if any.

On adoption of Ind AS, the Company retained the carrying
value for all of its other intangible assets as recognised in
the financial statements as at the date of transition to Ind

ASs, measured as per the previous GAAP and used that as its
deemed cost as permitted by Ind AS 101 'First-time Adoption
of Indian Accounting Standards'.

Research and development

Expenditure on research activities is recognised in profit or
loss as incurred.

Development expenditure is capitalised as part of the cost
of the resulting intangible asset only if the expenditure can
be measured reliably, the product or process is technically
and commercially feasible, future economic benefits are
probable and the Company intends to and has sufficient
resources to complete development and to use or sell the
asset. Otherwise, it is recognised in profit or loss as incurred.
Subsequent to initial recognition, development expenditure
is measured at cost less accumulated amortisation and any
accumulated impairment losses.

Subsequent expenditure is capitalised only when it increases
the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including
expenditure on internally generated goodwill and brands, is
recognised in profit or loss as incurred.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses on derecognition are determined
by comparing proceeds with carrying amount. These are
included in profit or loss within other gains/ (losses).

The Company amortises intangible assets with a finite useful
life using the straight-line method over the following range
of useful lives:

The estimated useful life is reviewed annually by
the management.

Company has process of identifying finite and infinite assets
based on useful lives.

Goodwill

Goodwill arising on amalgamation of a business is carried at
cost as established at the date of acquisition of the business
less accumulated impairment losses, if any. For the purposes of
impairment testing, goodwill is allocated to cash-generating
units that are expected to benefit from the synergies of the
combination. A cash-generating unit to which goodwill has
been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash generating
unit is less than its carrying amount, the impairment loss is
allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit
pro rata based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised directly in
profit or loss. An impairment loss recognised for goodwill is not
reversed in subsequent periods. On disposal of the relevant
cash-generating unit, the attributable amount of goodwill is
included in the determination of the profit or loss on disposal.

3.8 Leases
As a lessee

The Company assesses whether a contract contains a lease, at
inception of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the
use of an identified assets, the Company assesses whether:
(i) the contact involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits from
use of the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

As a lessee, the Company recognises a right-of-use asset and
a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any
lease incentives received.

The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or
the end of the lease term. The estimated useful lives of right-

of-use assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use asset
is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of
the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease
liability comprise the fixed payments, including in-substance
fixed payments.

The Company determines its incremental borrowing rate
by obtaining interest rates from various external financing
sources and makes certain adjustments to reflect the terms
of the lease and type of the asset leased.

The lease liability is measured at amortised cost using the
effective interest method.

The Company has used number of practical expedients
when applying Ind AS 116 namely, Short-term leases, leases
of low-value assets and single discount rate.

The Company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases that have a
lease term of 12 months or less and leases of low-value assets.
The Company recognises the lease payments associated
with these leases as an expense on a straight-line basis over
the lease term. The Company applied a single discount rate
to a portfolio of leases of similar assets in similar economic
environment with a similar end date.

The Company's leases mainly comprise land and buildings
and Plant and equipment. The Company leases land and
buildings for warehouse facilities. The Company also has
leases for equipment.

As a Lessor

When the Company acts as a lessor, it determines at lease
inception whether each lease is a finance lease or an
operating lease.

To classify each lease, the Company makes an overall
assessment of whether the lease transfers substantially
all of the risks and rewards incidental to ownership of the

underlying asset. If this is the case, then the lease is a finance
lease; if not, then it is an operating lease. As part of this
assessment, the Company considers certain indicators such
as whether the lease is for the major part of the economic
life of the asset.

The Company recognises non-cancellable lease payments
received under operating leases as income on a straight-line
basis over the lease term as part of 'other income'.

3.9 Non-current assets held for sale

Non-current assets and disposal group are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing
use. This condition is regarded as met only when the asset (or
disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary
for sales of such asset (or disposal group) and its sale is highly
probable. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed
sale within one year from the date of classification.

When the Company is committed to a sale plan involving
disposal of an investment, the investment that will be
disposed of is classified as held for sale when the criteria
described above are met.

Non-current assets (and disposal group) classified as held for
sale are measured at the lower of their carrying amount and
fair value less costs to sell.

3.10 Capital work-in-progress and intangible assets
under development

Capital work-in-progress comprises of property, plant and
equipment and intangible assets under development that
are not ready for their intended use at the end of reporting
period and are carried at cost comprising direct costs, related
incidental expenses, other directly attributable costs and
borrowing costs, less impairment losses if any.

3.11 Non-derivative financial instruments
Recognition and initial measurement

Financial assets and liabilities are recognised when the
Company becomes a party to the contractual provisions of
the instrument. Financial assets (unless it is a trade receivable
without a significant financing component) and liabilities are
initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

Trade Receivables

A trade receivable without a significant financing component
is initially measured at the transaction price (net of variable
consideration) as the same are recorded after decreasing
rebates as per para 51 of Ind AS 115 on Revenue from
contracts with customers.

Cash and cash equivalents

The Company considers all highly liquid financial instruments,
which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value
and having original maturities of three months or less from
the date of purchase, to be cash equivalents. Cash and
cash equivalents consist of balances with banks which are
unrestricted for withdrawal and usage.

Classification and subsequent measurement

On initial recognition, a financial asset is classified
as measured at:

- amortised cost;

- Fair value through other comprehensive income
(FVOCI) - equity investment; or

- Financial assets at fair value through profit
or loss (FVTPL).

Financial assets are not reclassified subsequent to their initial
recognition unless the Company changes its business model
for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the first
reporting period following the change in the business model.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised
cost 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 asset give
rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Financial assets at 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 that give rise on specified
dates to solely payments of principal and interest on the
principal amount outstanding and by selling financial assets.

The Company has made an irrevocable election to present
subsequent changes in the fair value of equity investments
not held for trading in Other Comprehensive Income.

Financial assets at fair value through profit or loss
(FVTPL)

Financial assets are measured at fair value through profit or
loss unless it is 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 profit or loss.

Financial liabilities

Financial liabilities are measured at amortised cost using the
effective interest method.

Equity instruments

An equity instrument is a contract that evidences residual
interest in the assets of the Company after deducting all of its
liabilities. Equity instruments recognised by the Company are
measured at the proceeds received net of direct issue cost.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in financial statements if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

3.12 Derivative financial instruments

In the ordinary course of business, the Company uses certain
derivative financial instruments to reduce business risks
which arise from its exposure to foreign exchange associated
with imports and exports (cash flow hedges).

When the Company opts to undertake hedge accounting,
the Company documents, at the inception of the hedging
transaction, the economic relationship between hedging
instruments and hedged items including whether the
hedging instrument is expected to offset changes in
Cash Flows or fair values of hedged items. The Company
documents its undertaking various hedge transactions at
the inception of each hedge relationship.

Derivatives are initially recognised at fair value on the date
the derivative contract is entered into and are subsequently
remeasured to their fair value at the end of each reporting
period. The accounting for subsequent changes in fair
value depends on whether the derivative is designated as a
hedging instrument, and if so, the nature of the item being
hedged and the type of hedge relationship designated.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives
that are designated and qualify as cash flow hedges, is
recognised through OCI and as cash flow hedging reserve
within equity, limited to the cumulative change in fair value of
the hedged item on a present value basis from the inception
of the hedge. The gain or loss relating to the ineffective
portion is recognised immediately in the Statement of Profit
and Loss. Amounts accumulated in equity are reclassified to
the Statement of Profit and Loss on settlement. When the
hedged forecast transaction results in the recognition of a
non-financial asset, the amounts accumulated in equity with
respect to gain or loss relating to the effective portion of
the spot component of forward contracts, both the deferred
hedging gains and losses and the deferred aligned forward
points are included within the initial cost of the asset. The
deferred amounts are ultimately recognised in the Statement
of Profit and Loss as the hedged item affects profit or loss.

When a hedging instrument expires, is sold or terminated,
or when a hedge no longer meets the criteria for hedge
accounting, then hedge accounting is discontinued
prospectively and any cumulative deferred gain or loss and
deferred costs of hedging in equity at that time remains in
equity until the forecast transaction occurs.

When the forecast transaction is no longer expected to occur,
the cumulative gain or loss and deferred costs of hedging
that were reported in equity are immediately transferred to
the Statement of Profit and Loss.

3.13 impairment

Financial assets (other than at fair value)

The Company assesses on a forward looking basis the
expected credit losses associated with its assets carried
at amortised cost and FVTOCI debt instruments. The
impairment methodology applied depends on whether
there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from
initial recognition of the receivables. Credit risk in relation to
trade receivable is assessed at every reporting date.

PPE and intangibles assets

Property, plant and equipment and intangible assets with
finite life are evaluated for recoverability whenever there is any
indication that their carrying amounts may not be recoverable. If
any such indication exists, the recoverable amount (i.e. higher of
the fair value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other
assets. In such cases, the recoverable amount is determined for
the cash generating unit (CGU) to which the asset belongs.

Ifthe recoverable amount of an asset (or CGU) is estimated to be
less than its carrying amount, the carrying amount of the asset
(or CGU) is reduced to its recoverable amount. An impairment
loss is recognised in the Statement of Profit and Loss.

An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount.
Such a reversal is made only to the extent that the asset's
carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.

All Technological Knowhow project falling under Intangible
Assets under Development for more than 5 years will be
fully provided.

3.14 inventories

Inventories are measured at lower of cost (on weighted
average basis) and net realisable value after providing for
obsolescence and other losses, where considered necessary.

Cost includes all production or conversion costs and other
costs incurred in bringing the goods to their present location
and condition, including relevant taxes and other levies,
transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads.

In the case of raw materials and stock-in-trade, cost comprises
of cost of purchase. In the case of work-in-progress and finished
goods and work in progress, cost includes an appropriate share
of production overheads based on normal operating capacity.

For seeds, remnant/substandard stocks are not valued and
are accounted as revenue in the year of sale of such stock.
Cost associated with hybrid seed production in leased land
for which produce is yet to be received will be accounted as
work-in-progress.

Raw materials, components and other supplies held for
use in the production of finished products are not written
down below cost except in cases when a decline in the price
of materials indicates that the cost of the finished products
shall exceed the net realisable value.

The net realisable value of work-in-progress is determined
with reference to the selling prices of related finished goods.

The comparison of cost and net realisable value is made on
an item-by-Item basis.

Net realisable 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.

3.15 Revenue from contracts with customers

As per Ind AS 115 “Revenue from contracts with customers" - A
contract with a customer exists only when the parties to the
contract have approved it and are committed to perform their
respective obligations, the Company can identify each party's
rights regarding the distinct goods or services to be transferred
(“performance obligations"), the Company can determine the
transaction price for the goods or services to be transferred,
the contract has commercial substance and it is probable
that the Company will collect the consideration to which it
will be entitled in exchange for the goods or services that will
be transferred to the customer. Revenues are recorded in the
amount of consideration to which the Company expects to be
entitled in exchange for performance obligations upon transfer
of control to the customer and is measured at the amount of

transaction price allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of
estimated incentives, returns, rebates, sales tax and applicable
trade discounts, allowances, Goods and Services Tax (GST) and
amounts collected on behalf of third parties.

3.15.1 Sale of goods

Based on the contractual terms with the customers,
revenue from sale of goods is recognised at the point
in time when control is transferred to the customer
either on dispatch of goods or goods accepted by the
customers at their premises.

Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, rebates, scheme allowances, price
concessions, incentives, and returns, if any, as specified
in the contracts with the customers. Revenue excludes
taxes collected from customers on behalf of the
Government. Accruals for discounts/incentives and
returns are estimated (using the most likely method)
based on accumulated experience and underlying
schemes and agreements with customers. Due to the
short nature of credit period given to customers, there
is no financing component in the contract.

For contracts that permit the customer to return an
item, revenue is recognised to the extent that it is highly
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur.

Therefore, the amount of revenue recognised is
adjusted for expected returns. In these circumstances,
a refund liability and a right to recover returned goods
asset are recognised.

The Company reviews its estimate of expected returns
at each reporting date.

The right to recover returned goods asset is measured at
the former carrying amount of the inventory. The refund
liability is included in other current liabilities and the right
to recover returned goods is included in current assets.

3.15.2 interest income

Interest income from financial assets is recognised
when it is probable that economic benefits will flow
to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time

basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial assets to that
asset's net carrying amount on initial recognition.

3.15.3 Dividend

Dividend income from investments is recognised
when the shareholder's right to receive payment has
been established (provided that it is probable that the
economic benefits will flow to the Company and the
amount of income can be measured reliably).

3.15.4 Insurance claims

Insurance claims are accounted for on the basis of
claims admitted and to the extent that there is no
uncertainty in receiving the claims.

3.15.5 Contract balances

Contract assets

A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for
the earned consideration that is conditional.

Contract liabilities

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration is
due) from the customer. If a customer pays consideration
before the Company transfers goods or services to the
customer, a contract liability is recognised when the
payment is made or the payment is due (whichever is
earlier). Contract liabilities are recognised as revenue
when the Company performs under the contract.

3.16 Government Grants

Government grants and subsidies are recognised when there
is reasonable assurance that the Company will comply with
the conditions attached to them and the grants/subsidy
will be received. Other Government grants related to assets,
including non-monetary grants, are initially recognised as
deferred income at fair value if there is reasonable assurance
that they will be received, and the Company will comply with

the conditions associated with the grant. Grants related to
the acquisition of assets are recognised in profit or loss as
other income on a systematic basis over the useful life of the
asset. Export benefits are accounted for in the year of exports
based on eligibility and when there is no uncertainty in
receiving the same.

Other Government grants and subsidies are recognised
as income over the periods necessary to match them with
the costs for which they are intended to compensate, on a
systematic basis.

3.17 Employee benefit expenses

Employee benefits consist of contribution to provident fund,
superannuation fund, gratuity fund, compensated absences,
supplemental pay and ex-director pension liability.

3.17.1 Post-employment benefit plans

Defined Contribution plans

A defined contribution plan is a post-employment
benefit plan where the Company's legal or constructive
obligation is limited to the amount that it contributes
to a separate legal entity. Payments to defined
contribution retirement benefit scheme for eligible
employees in the form of Superannuation Fund and
provident fund are expensed as an employee benefits
expense in the statement of profit and loss in period in
which the related service is provided by the employee.
Such benefits are classified as Defined Contribution
Schemes as the Company does not carry any further
obligations, apart from the contributions made.

Defined benefit plans

The Company operates various defined benefit
plans- Employee's provident fund, gratuity fund,
supplemental pay and ex-director pension liability.

Employee's provident fund

The Company also makes contribution towards
provident fund, in substance a defined contribution
retirement benefit plan. The provident fund is
administered by the Trustees of the Rallis India Limited
Provident Fund. The rules of the Company's provident
fund administered by the Trust, require that if the
Board of Trustees are unable to pay interest at the rate
declared by the Employees' Provident Fund by the

Government under para 60 of the Employees' Provident
Fund Scheme, 1952 for the reason that the return
on investment is less or for any other reason, then
the deficiency shall be made good by the Company.
Having regard to the assets of the fund and the return
on the investments, the Company does not expect any
deficiency as at the year end.

Gratuity Fund, supplemental pay & ex-director
pension liability

The liability or asset recognised in the balance sheet in
respect of its defined benefit plans is the present value
of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The
calculation of defined benefit obligations is performed
annually by a qualified actuary using the projected
unit credit method. When the calculation results in a
potential asset for the Company, the recognised asset
is limited to the present value of economic benefits
available in the form of any future refunds from the
plan or reductions in future contributions to the plan
('the asset ceiling'). To calculate the present value
of economic benefits, consideration is given to any
applicable minimum funding requirements.

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognised
immediately in OCI. The Company determines the net
interest expense (income) on the net defined benefit
liability (asset) for the period by applying the discount
rate determined by reference to market yields at the
end of the reporting period on Government bonds.
This rate is applied on the net defined benefit liability
(asset), both as determined at the start of the annual
reporting period, taking into account any changes in
the net defined benefit liability (asset) during the period
as a result of contributions and benefit payments. Net
interest expense and other expenses related to defined
benefit plans are recognised in profit or loss.

The present value of the said obligation is determined
by discounting the estimated future cash outflows,
using market yields of Government bonds that have
tenure approximating the tenures ofthe related liability.

The interest income/(expense) are calculated by
applying the discount rate to the net defined benefit
liability or asset. The net interest income/(expense) on
the net defined benefit liability or asset is recognised in
the Statement of Profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the Statement of
Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or
loss as past service cost.

3.17.2 Other long term employee benefit

Accumulated absences expected to be carried
forward beyond twelve months is treated as
long-term employee benefit for measurement
purposes. The Company's net obligation in respect of
other long-term employee benefit of accumulating
compensated absences is the amount of future
benefit that employees have accumulated at the end
of the year. That benefit is discounted to determine
its present value The obligation is measured annually
by a qualified actuary using the projected unit credit
method. Remeasurements are recognised in profit or
loss in the period in which they arise.

The obligations are presented as current liabilities in
the balance sheet if the Company does not have an
unconditional right to defer the settlement for at least
twelve months after the reporting date.

3.17.3 Short term employee benefit

Compensated absences which accrue to employees
and which can be carried to future periods but are
expected to be encashed or availed in twelve months
immediately following the year end are reported as
expenses during the year in which the employees
perform the services that the benefit covers and the
liabilities are reported at the undiscounted amount of
the benefits after deducting amounts already paid.

Where there are restrictions on availment of
encashment of such accrued benefit or where the
availment or encashment is otherwise not expected to
wholly occur in the next twelve months, the liability on
account of the benefit is actuarially determined using
the projected unit credit method.

3.18 Borrowing cost

Borrowing costs are interest and ancillary costs incurred in
connection with the arrangement of borrowings. Borrowing
costs are recognised in the Statement of Profit and Loss
within Finance costs of the period in which they are incurred.

3.19 Segment reporting

Operating segments are defined as components of an
enterprise for which discrete financial information is available
that is evaluated regularly by the chief operating decision
maker, in deciding how to allocate resources and assessing
performance. The Company's chief operating decision maker
is the Managing Director & CEO of the Company.

Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the
segment. Inter segment revenue is accounted on the basis of
transactions which are primarily determined based on market/
fair value factors. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable
to segments on a reasonable basis have been included under
"unallocated revenue/expenses/assets/liabilities".

3.20 Income tax

Income tax expense comprises current tax expense and
the net change in the deferred tax asset or liability during
the year. Current and deferred taxes are recognised in the
Statement of Profit and Loss, except when they relate to a
business combination, or items that are recognised in other
comprehensive income or directly in equity, in which case,
the current and deferred tax are also recognised in other
comprehensive income or directly in equity, respectively.

As per the Company's assessment, there are no material
income tax uncertainties over income tax treatments.

Current tax

Current tax is measured at the amount of tax expected to be
payable on the taxable income for the year as determined in
accordance with the provisions of the Income Tax Act, 1961.

Current tax comprises the expected tax payable or receivable
on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years. The
amount of current tax payable or receivable is the best estimate
of the tax amount expected to be paid or received that reflects
uncertainty related to income taxes, if any. It is measured using
tax rates enacted or substantively enacted at the reporting date.

Current tax assets and current tax liabilities are offset when
there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the
liability on a net basis.

Deferred tax

Deferred tax assets and liabilities are recognised for deductible
and taxable temporary differences arising between the
tax base of assets and liabilities and their carrying amount,
except when the deferred income tax arises from the initial
recognition of an asset or liability in a transaction that is not
a business combination and affects neither accounting nor
taxable profit or loss at the time of the transaction.

Temporary differences in relation to a right-of-use asset and a
lease liability for a specific lease are regarded as a net package
(the lease) for the purpose of recognising deferred tax.

Deferred tax assets are recognised only to the extent that it
is probable that either future taxable profits or reversal of
deferred tax liabilities will be available, against which the
deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall be reviewed
at the end of each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax
asset to be utilised.

Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period and are expected
to apply when the related deferred tax asset is realised or the
deferred tax liability is settled.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority.