(12) Provisions, contingent liabilities and contingent assets
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation.
The expenses relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows specific
to the liability. The unwinding of the discount is recognised as finance cost.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract and
the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment
loss on the assets associated with that contract.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably
not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision disclosure is made.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.
Commitments includes the amount of purchase order (net of advance) issued to parties for completion of assets.
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance sheet date.
(13) 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 recognized in
the other comprehensive income in cash flow hedging reserve within equity, limited to the cumulative change in fair value of hedged
item on a present value basis from the inception of hedge. The gain or loss relating to the effective portion is recognized immediately
in profit or loss.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss.
(14) Leases
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.
Company as a lessee
The Company’s lease asset classes primarily consist of leases for land. 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
asset, the Company assesses whether: (i) the contract 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.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low
value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on
a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the
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.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the
country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.
(15) Impairment of non-financial assets
Goodwill and intangible assets that have infinite useful life are not subjected to amortization and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired.
The carrying values of other assets/cash generating units at each balance sheet date are reviewed for impairment if any indication
of impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised
for such excess amount.
The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the
future cash flows to their present value based on an appropriate discount factor that reflects current market assessments of the time
value of money and the risk specific to the asset.
When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods
which no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss,
to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets, such reversal is not
recognised.
(16) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
(17) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
(18) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements
in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares.
(F) Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The
Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact
in its financial statements.
Capital redemption reserve
Capital redemption reserve was created for buy back of shares. The company may issue fully paid-up bonus shares out of the capital redemption
reserve.
Employee stock options outstanding
The employee stock options outstanding is used to recognise the grant date fair value of options issued to employees under the Company’s stock
option plan.
Securities Premium
Securities Premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.
Note 18.1 : Term Loan from Bank amounting to '.9,000 lakhs is repayable in quarterly installments commencing from January 01,2026 . Current
interest rate of the loan is 7.85% (Previous year 7.85%)
Term loan amounting '. 10,200 lakh from Bank and Financial institutions during the previous year carries interest rate at 8.15% to 9.50% and is
repayable over a period of three years till FY 2027-28. During the current year, '. 1,000 lakh (previous year '. 942.92 Lakh) has been disclosed
under current maturity of Long term Borrowing. During the current year interest of '. 11.42 lakh (Previous year '. Nil) has been disclosed under
current maturities of long-term borrowings.
Note 18.2; Non-convertible debentures (NCD) is repayable on March 25, 2027 . Interest rate of NCD is 8.90%. During the current year interest of
'. 5.97 lakh (Previous year '. 250.78 lakh) has been disclosed under current maturities of long-term borrowings.
Note 18.3: Inter corporate deposits (ICD) from Godrej Agrovet Limited is repayable after Two years in February, 2027. Interest rate of ICD is 8.5%.
Inter corporate deposits (ICD) from Godrej Foods Limited is repayable after Two years in March 2027. Interest rate of ICD is 8.5%.
The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.
Note 23.1 : Cash Credit from banks are repayable on demand and carries interest at MCLR 0.25% (Previous year - MCLR 0.25%).
Note 23.2 : Buyers Credit from banks are repayable on due dates and carries interest at 7.07% to 7.87% (Previous Year: No Buyers Credit
transaction)
Note 23.3 : Working capital loan (Rupee) from banks carries interest rate at 7.80% to 9.50% (Previous year 7.70% to 9.00%). These loans are
repayable on different dates within six months from the date of Financial Statements.
Note 23.4 : Inter corporate deposits (ICD) from Creamline dairy products Limited is repayable within six months from the date of Financial
Statements. Interest rate of ICD is 8.5%.
Note 23.5 : Commercial Paper carries interest rate of 7.80% to 8.20% (Previous year - 8.12% to 8.24%) and are repayable on different dates
within 6 months from the date of the Financial Statements.
Note 38. 1 Current ratio : Current assets / Current liabilities
Note 38. 2 Debt Equity ratio : Total Debt / Shareholder’s Equity
Note 38. 3 Debt Service Coverage Ratio : (Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations
Interest other adjustments like loss on sale of Fixed assets/Investment etc.) / (Interest & Lease Payments Principal Repayments)
Note 38. 4 Return on Equity Ratio : Net Profits after taxes - Preference Dividend (if any) / Average Shareholder’s Equity
Note 38. 5 Inventory turnover : Cost of goods sold / Average Inventory
Note 38. 6 Trade Receivables turnover ratio : Net Credit Sales / Average Trade Receivable
Note 38. 7 Trade payables turnover ratio : Net Credit Purchases / Average Trade Payables
Note 38. 8 Net capital turnover ratio : Net Sales / Working Capital
Note 38. 9 Net profit ratio : Net Profit / Net Sales
Note 38. 10 Return on Capital employed : Earning before interest and taxes / (Tangible Net Worth Total Debt Deferred Tax Liability)
Note 38. 11 The Debt-Equity, Debt service coverage ratio(DSCR), Return on Equity, Net proft ratio, Inventory turnover ratio, Net capital turnover
ratio and Return on Capital employed for the current financial year are less than that of previous financial year. The company was in losses due to
challenging market conditions in the agro-chemical industry. The company’s debt has increased to meet its working capital requirements.
Trade payables are down due to lower purchases in current year as compared to previous years.
Note 39 : Employee benefits
The Company contributes to the following post-employment plans in India.
Defined Contribution Plan:
The Company pays provident fund contributions to publicly administered provident funds as per local regulations and are recognised as expense
in the Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than
the contributions payable to the appropriate authorities.
The Company recognised '. 219.54 lakh for the year ended March 31,2025 (Previous Year '.220.14 lakh ) towards provident fund contribution in
the Statement of Profit and Loss.
Defined Benefit Plan:
The Company’s gratuity scheme is defined benefit plan. The Company’s liability for the defined benefit scheme is actuarially determined based on
the projected unit credit method. The Company’s net obligations in respect of such plans is calculated by estimating the amount of future benefit
that the employees have earned in return for their services and the current and prior periods that benefit is discounted to determine its present value
and the fair value of the plan asset is deducted. Actuarial gains and losses are recognised in Other Comprehensive Income.
In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity
payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts
are based on the respective employee’s last drawn salary and the years of employment with the Company.
Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to
the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees
administer the contributions made by the Company to the gratuity scheme.
The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme
was carried out as at March 31,2025. The present value of the defined benefit obligations and the related current service cost and past service
cost, were measured using the Projected Unit Credit Method.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan
assets as at balance sheet date:
The Company has exposure to the following risks arising from financial instruments:
• Credit risk ;
• Liquidity risk;
• Market risk;
• Currency risk;
i. Risk management framework
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework. The board of directors has established the Risk Management Committee, which is responsible for developing and
monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate
risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards
and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.
The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures,
and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is
assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls
and procedures, the results of which are reported to the audit committee.
Note 40.2 : Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company’s receivables from customers and loans and advances.
The carrying amount of following financial assets represents the maximum credit exposure:
Trade receivables and loans and advances
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it
operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business.
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s
standard payment and delivery terms and conditions are offered. The Company’s export sales are backed by letters of credit and Trade Credit
Insurance policy from Export Credit Guarantee Corporation of India (ECGC).
The company individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the Company makes specific
provisions against such trade receivables wherever required and monitors the same at periodic intervals.
The Company monitors each loans and advances given and makes any specific provision wherever required.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables and loans
and advances.
The maximum exposure to credit risk for trade and other receivables by type of counterparty was as follows.
This comprises mainly of balances with banks, deposits with Government authorities and other receivables. Credit risk arising from these financial
assets is limited and there is no collateral held against these because the counterparties are banks and government organizations. The Company
considers that its balances with banks have low credit risk based on the external credit ratings of the counterparties. The Company has created the
loss allowance for other receivables on specific identification basis.
Cash and cash equivalents
The Company held cash and cash equivalents of '. 56.50 lakh at March 31, 2025 (previous year '. 46.05 lakh) . The cash and cash equivalents
are held with bank and financial institution counterparties with good credit rating.
Note 40.3 : 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 to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.
Exposure to liquidity risk
The company has sufficient credit lines with Banks / Financial Institutions / Other group companies and board approvals are in place to utilise the
saction limits.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and
include estimated interest payments and exclude the impact of netting agreements.
The gross outflows disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held
for risk management purposes and which are not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for
derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement.
Note 40.4 : Currency Risk
Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Generally, the
Company hedge the financial instruments to manage volatility in profit or loss.
Currency risk
The company operates internationally and portion of the business is transacted in USD, EURO and CHF currencies and consequently the company
is exposed to foreign exchange risk through its sales in overseas market and purchases from overseas suppliers in various foreign currencies.
Foreign currency exchange rate exposure is partly balanced by purchasing of goods and services in the respective currencies and through
derivative instruments.
The company evaluates exchange rate exposure arising from foreign currency transactions and the company follows established risk management
policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.
Exposure to currency risk ( Exposure in different currencies converted to functional currency i.e INR)
The summary quantitative data about the Company’s exposure to currency risk as reported to the management of the Company is as follows. The
following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include
estimated interest payments and exclude the impact of netting agreements.
Note 40.5 : Interest rate risk
Interest rate risk can either be fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair
values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured
at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate
because of fluctuations in the interest rates.
Exposure to interest rate risk
The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows.
Note 43 : Capital Management
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position. The primary objective of the Company’s Capital Management is to maximise
shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in the economic environment and
the requirements of the financial covenants, if any.
The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is defined as total borrowings,
comprising interest-bearing loans and borrowings less cash and cash equivalents. Equity comprises all components of equity.
a) The Company’s adjusted net debt to equity ratio at March 31,2025 was as follows:-
Note 44: Operating Segment
In accordance with Ind AS 108 “Operating Segments”, segment information has been given in the consolidated financial statements of Astec
LifeSciences Limited and therefore no separate disclosure on segment information is given in these financial statements.
Note 45 : Share based payments
(a) Employee stock option scheme (ESOP, 2012 as amended by the Shareholders by way of a Special Resolution)
The Company had set up the Employees Stock Option Plan 2012 which was amended by the Shareholders by way of a Special Resolution
obtained by way of Postal Ballot, whose results have been declared on September 27, 2021.
The Scheme applies to the Eligible Employees who are in whole time employment of the Company or its Subsidiary Companies. The
entitlement of each employee would be decided by the Nomination and Remuneration Committee of the respective Company based on the
employee’s performance, level, grade, etc.
The total number of Stock Option to be awarded under the ESOP Scheme are restricted to 1% of the issued equity share capital at the time
of awarding the Stock Option, can be awarded to any one employee in any one year.
The Stock Options shall vest in the Eligible Employees pursuant to the ESOP Scheme in the proportion of 1/3rd at the end of each year
from the date on which the Stock Options are awarded for a period of three consecutive years, or as may be determined by the Nomination
and Remuneration Committee, subject to the condition that the Eligible Employee continues to be in employment of the Company or the
Subsidiary company as the case may be.
The Eligible Employee shall exercise her / his right to acquire the shares vested in her / him all at one time within 1 month from the date on
which the shares vested in her / him or such other period as may be determined by the Nomination and Remuneration Committee.
(b) Employee stock option scheme (ESOS, 2015)
The Company has implemented Employees under Employee stock option scheme (ESOS, 2015) which was approved by the Shareholders
at the 21st Annual General Meeting. The employee stock option scheme is designed to provide incentives to all the permanent employees to
deliver long-term returns. Under the plan, participants are granted options which will vest in 4 years (40% in 1st year, 30% in 2nd year, 20%
in 3rd year and 10% in 4th year) from the date of grant. Participation in the plan is at the discretion of the Compensation Committee / Board
of Directors of the Company.
Once vested, the options remains exercisable for a period of three years.
Options are granted at the market price on which the options are granted to the employees under ESOS 2015. When exercisable, each
option is convertible into one equity share.
(c) Employee stock option plan (ESOP, 2012)
The Company has implemented Employee Stock Option Plan (ESOP 2012) which was approved by the Shareholders at the Extra-Ordinary
General Meeting of the Company in the Year 2012. The employee stock option plan is designed to provide incentives to all the permanent
employees to deliver long-term returns. Under the plan, participants are granted options which will vest in 4 years (40% in 1st year, 30% in 2nd
year, 20% in 3rd year and 10% in 4th year) from the grant date. Participation in the plan is at the discretion of the Compensation Committee
/ Board of Directors of the Company.
Once vested, the options remains exercisable for a period of seven years.
Options are granted under ESOP 2012 at an exercise price of '.34/- each. When exercisable, each option is convertible into one equity
share.
Set out below is a summary of options granted under both the plans:
Employee stock option scheme (ESOP, 2012 as amended by the Shareholders by way of a Special Resolution)
Note 46.1 : Contingent liabilities represents estimates made mainly for probable claims arising out of litigation/ disputes pending with authorities
under various statutes (Excise duty, Customs duty, Income tax, etc).The probability and timing of outflow with regard to these matters depend on
the final outcome of litigations/ disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.
Note 46.2 : The above amount includes interest of '. 9,945.76 Lakh
Note 47
The Hon’ble Supreme Court of India (“SC”) by their order dated February 28, 2019, in the case of Surya Roshani Limited & others v/s EPFO, set out
the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation
of Provident Fund contribution. The company has started complying with this prospectively from the month of March 2019. In respect of the past
period there are significant implementation and interpretative challenges that the management is facing and is awaiting for clarity to emerge in this
regard, pending which, this matter has been disclosed under the Contingent liability section in the financial statements. The impact of the same is
not ascertainable.
Note 52:
Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act, 2013
The remuneration paid to its directors during the current year is in accordance with the provisions of Section 197 of the Act.The excess remuneration
paid to a director is in accordance with the requisite approvals as mandated by the provisions of Section 197 read with Schedule V to the Act.
As per our report of even date attached For and on behalf of the Board of Directors of
For B S R & Co. LLP Astec LifeSciences Limited
Chartered Accountants (CIN:L99999MH1994PLC076236)
Firm Registration Number : 101248W/W-100022
BURJIS GODREJ B. S. YADAV
Managing Director Director
DIN:08183082 DIN:00294803
Mumbai Mumbai
23 April 2025 May 02, 2024
RAHUL CHOUDHARY MUGDHA KHARE TEJASHREE PRADHAN
Partner Chief Financial Officer Company Secretary
Membership Number: 408408 ICAI Member No. 133002 ICSI Member. No. FCS7167
Mumbai Mumbai Mumbai
23 April 2025 23 April 2025 23 April 2025
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