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Notes to Accounts of KRBL Ltd.

Mar 31, 2023

1 On 26 June 1993, M/s. K.B. Overseas had entered into an agreement with M/s. Khushi Ram Bihari Lal Limited wherein M/s. K.B. Overseas had transferred its entire business including all properties and assets to M/s. Khushi Ram Bihari Lal Limited. Further pursuant to declaratory civil suit no. 962/1998 titled M/s. Khushi Ram Bihari Lal Limited vs. M/s. Bhagirath Lal and Others decreed on 24 March 1999, the assets of M/s. K.B. Overseas inter-alia including these land parcels were taken over by M/s. Khushi Ram Bihari Lal Limited and later the name of M/s Khushi Ram Bihari Lal Limited was changed to M/s KRBL Limited on 1 February 2000. These properties were mutated in the name of M/s. KRBL Limited and the name of M/s. KRBL Limited has also been entered in land revenue records as bhumidhar. Thus, M/s. KRBL Limited is the owner of said parcels.

2 The Company has physical possession of these land parcels vide Memorandum of Understandings entered into by the Company with each of the above mentioned directors and their relatives. Further, the Company had also executed and registered the General Power of Attorney, will and other necessary documents with the above mentioned directors and their relative, in favour of the Company. The Company is in process of doing the necessary compliance in relation to the registration of these land parcels in the name of the Company.

3 Pending registration in the name of the Company due to legal dispute. However, the building is in the possession of the Company and used for its business purpose. Further, the Company had already paid its obligation in full as per signed sale agreement dated 15 April, 2015.

C Lease related disclosures

The Company has leases mainly for land and buildings. With the exception of short-term leases, each lease is reflected on the standalone balance sheet as a right-of-use asset and a lease liability. There are no variable lease payments included in the agreement.

D Extension and termination options

Extension and termination options are included in all leases. These terms are used to maximise operational flexibility in terms of managing contracts.

b) Terms/ rights attached to ordinary equity shares

The Company has only one class of equity shares having a face value of ?1 per share. Each holder of equity shares is entitled to have one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

e) Shares reserved for issue under option

The Company has not reserved any shares for issuance under options.

f) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

No bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

Description and purpose of reserves:

(i) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(ii) General reserve

The Company has transferred a portion of the net profit of the Company to general reserve from time to time and it is not the item of other comprehensive income. Also the Company has earlier forfeited the partly paid equity shares with the requisite approvals. The amount originally received against forfeited shares is also included in the general reserve.

(iii) Securities premium reserve

The amount received in excess of face value of the equity shares is recognised in securities premium reserve.

(iv) Capital reserve

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(v) Capital redemption reserve

The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

(vi) Cash flow hedge reserve

The cash flow reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges.

A Details of security of current borrowings

i. The Company has executed deed of hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created mortgage on its movable and immovable properties located at various locations vide memorandum of entries for an amount of ?155,500 lacs (31 March 2022 : ?155,500 lacs) in the form of loan and other facilities sanctioned by banks under consortium. The same is secured by first pari-passu charge on all current assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts and all other movables of whatsoever nature and where ever arising, both present and future and on all movable and immovable fixed assets of the Company, both present and future (except immovable fixed assets situated at Maharashtra and Madhya Pradesh for which the Company has executed the Non Disposable Undertaking) of the Company.

Further, the current borrowings of the Company are also secured vide the personal guarantees of Mr Anil Kumar Mittal, Mr Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (the liability of Mr. Ashish Mittal shall be limited only to the extent of the immovable properties mortgaged by him in favour of the security trustee for the benefit of working capital lenders).


B Defined benefit plans

Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained liability to Kotak Mahindra Life Insurance Company Limited with whom the plan assets are maintained.

Policy for recognizing actuarial gains and losses:

Actuarial gains and losses of defind benefit plan arising from experience adjustments and effects of changes in actuarial assumptions are immediately recognized in other comprehensive income. Risks associated with the plan provisions are actuarial risks. These risk are investment risk, interest rate risk, mortality risk and salary risk.

Interest rate risk

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occuring at the end of the reporting period, while holding all other assumptions constant and may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the balance sheet date ,which is the same method as applied in calculating the defined benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

*During the preceding financial year ended 31 March 2022, ?1,250 lacs and ?64 lacs were remitted to KRBL Foundation and Anamrita Foundation respectively aggregating to ?1,314 lacs for the purpose of aforementioned CSR ongoing projects. Subsequent to the year end 31 March 2022, the said amount had been deposited to the Unspent CSR account, held in the name of the Company which comprises of an amount maintained in the Company’s bank account for ?1,183 lacs and excess spent of ?131 lacs (refer note C below).

42 Capital management

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investors, creditors and market confidence.

The Company monitors capital using a ratio of “Net Debt” to “Total Equity”. For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents. Total equity comprises of equity share capital and other equity. During the year, no significant changes were made in the objectives, policies or processes relating to the management of the Company’s capital structure.

A Disclosure in respect of financial risk management

1. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, cash and cash equivalents, deposits and security deposits.

Credit risk management:

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and diverse. 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 long aged trade receivables, mainly comprise of receivables from DISCOM companies and as per past experience, there has been no credit loss on account of customer’s inability to pay as the revenue is agreement driven and all the customers are government companies. Thus, the Company’s historical experience of collecting receivables, supported by the level of default indicate a low credit risk and so trade receivables are considered to be a single class of financial assets.

On the basis of the above assessment, the Company identified and written off an amount of Nil ( 31 March 2022 : ?21 lacs) of trade receivable balances, which were subject to dispute and will not be realisable at the reporting date.

Other financial assets

Further, credit risk in respect of other receivables and loans, mainly comprise of security deposit, unbilled revenue, cash and bank equivalents and interest accrued on deposits which are managed by the Company, by way of assessing financial condition and current economic trends. The Company considers the probability of default associated with the other receivable and loan is very low at the year respective year end and thus would not require any provision, except as disclosed below.

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(iii) Currency Risk

The Company operates internationally and consequently the Company is exposed to foreign exchange risk through its sales in overseas market. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

The Company has outstanding forward contracts and options of USD 73.45 Mio (P.Y. USD 68.60 Mio).

The Company has designated certain forward contracts and borrowings as eligible hedging instruments for hedge of foreign currency forecast sales. Pursuant to this, the effective portion of change in value of the hedging instruments has been recognised in ‘cash flow hedge reserve’ in other comprehensive income. Such amount is reclassified to statement of profit and loss as and when the forecast transaction occurs or the hedges are no longer effective.

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, AED, GBP and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the (INR) cash flows of highly probable forecast transactions.

The Company’s policy is to hedge all material foreign exchange risk associated with highly probable forecast sales transactions denominated in foreign currencies. The Company’s policy is to hedge the risk of changes in foreign currency. The Company uses forward contracts (derivative instruments) to hedge its exposure in foreign currency risk. The Company designate both change in spot and forward element of forward contracts and change in spot of PCFCs to hedge exposure in foreign currency risk on highly probable forecast sales.

The Company’s hedging policy only allows for effective hedge relationships to be established. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessment to ensure that an economic relationship exists between the hedged item and hedging instrument.

In hedges of foreign currency forcast sales, ineffectiveness mainly arises because of Change in timing of hedged item from that of the hedging instrument and cost of hedging. The ineffectiveness arised in the hedges have been disclosed in above table.

1. The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables, other financial assets, borrowings, trade payables , lease liabilities and other financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments.

Further, these instruments are valued at level 3 and their fair value are considered to be same as their carrying value, as there is an immaterial change in the lending rate.

2. Investment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind AS 27. Therefore, the same are not in the scope of Ind AS 109 and not disclosed here.

2. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three level prescribed under the accounting standard. An explanation each level follows underneath the table.

Assets and liabilities measured at amortised cost, for which fair value are disclosed.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers among levels 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

3. Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, interest accrued, other receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the same as fair values, due to their short term nature.

The fair value of security deposits were calculated based on cash flow discounted using a current lending rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount.

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of borrowings approximates the carrying amount.

The fair valuation of investments in quoted equity shares is based on the current bid price of respective investments as at the balance sheet date.

45 Segmental reporting

A Operating segments

Agri - Comprises of agricultural commodities such as rice, furfural, seed, bran, bran oil, etc.

Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.

B Identification of segments

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

C Segment revenue and results [refer note 2(g)]

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure .

D Segment assets and liabilities:

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

B A portion of land parcels and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement (‘ED’) to the extent of value of ?1,532 Lakh in connection with a money laundering investigation which is currently pending before the Special Judge, CBI Court. The Appellate Tribunal, PMLA, New Delhi, (“Appellate Tribunal”) had restored the possession of the attached land on interim basis in favour of the Company. However, aforesaid attachment would continue till conclusion of the matter. Against the order of the Appellate Tribunal, ED had filed an appeal before the Hon’ble High Court of Delhi, which is pending for hearing. The Company filed an application before the Hon’ble High Court of Delhi for restoration of possession of the land in favour of the Company and High court allowed the Company to take physical possession of the said land parcels and building thereupon for specified purpose against the deposit of ?1,113 Lakh, (deposited on 5 November, 2020), as an interim relief until conclusion of the aforesaid matter, without prejudice to the rights and contentions of the parties to be decided in the appeal. The management based upon the legal assessments, is confident that it has a favourable case and the said attachment shall be vacated and no adjustment is required in the accompanying Statement.

C The Company’s Joint Managing Director, Mr. Anoop Kumar Gupta (‘JMD’), had been detained and released on bail by the Directorate of Enforcement (‘ED’) pursuant to certain allegations against the Company, KRBL DMCC (a subsidiary of KRBL Limited) and JMD. As per criminal complaint filed it is alleged that M/s Rawasi Al Khaleej General Trading LLC (‘RAKGT’) had received proceeds of crime of USD 24.62 million in AgustaWestland case during the period 20082010 which in turn had been transferred to KRBL Limited through KRBL DMCC. Basis the affidavit filed by Balsharaf Group (one of the Customer of the Company) in the Hon’ble High Court of Delhi in the said matter, the amount of USD 24.62 million had been received by RAKGT in the account of Balsharaf Group. Pursuant to this, ED had attached 1,43,33,221 shares of Balsharaf Group held in KRBL Limited. Based on the opinion taken from the independent legal counsel, the management is of the view that since the investigation is still ongoing no adverse opinion can be drawn. The Company had appointed an independent professional firm (‘IP’) to review the aforesaid allegations, to assess the impact, if any, on the financial statement and control environment of the Company during the year ended 31 March 2022. Further during the current year, the IP had issued a report to the Board of Directors with respect to the aforesaid review which was discussed and approved in their previously held meeting, wherein the Board of Directors had responded to the observations contained therein and basis that no further action was proposed. Pending the ongoing investigation on the above matter, no adjustment has been made in the financial statements. The management of the Company is confident that the above stated matter will be resolved soon.

D Other matter comprise of civil cases pending under various CPC 1908, Trade Mark Act 1999, Consumer Protection Act 1986 and other recovery suits.

* The Company on the basis of the legal opinion is of the firm belief that the above demands are not tenable and highly unlikely to be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The amounts disclosed are based on the orders/ notices received from the authorities.

50 Disclosures pursuant to Regulation 34(3) of Securities and Exchange Board of India (Listing Obligations And Disclosure Requirements) Regulations, 2015 And Section 186 of the Companies Act, 2013

The Company has not provided any loans, security and corporate guarantees covered under section 186 of the Companies Act, 2013 and accordingly, the disclosure requirements to the extent does not apply to the Company. Refer note 7 for details of investment in subsidiaries and note 12 for details of other investments.

51 Additional regulatory information required by Schedule III to the Companies Act, 2013

i. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

iii. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

iv. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

v. The Company has not traded or invested in Crypto currency or virtual currency during the year.

vi. There is no income surrendered or disclosed as income during the year in tax assessments under the Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

vii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (‘Intermediaries’) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (‘Ultimate Beneficiaries’) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ix. Basis the management’s assessment, it has been concluded that the Company has made no transactions with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.

A Formulae used for calculation of ratios:

1. Total Debt represent aggregate of borrowing from the banks, related parties and lease liabilities.

2. Earnings available for debt service represent the Net Profit after taxes Depreciation and other amortizations Interest expense other adjustments on account of Gain/loss on sale of property, plant and equipment.

3. Debt service represent Interest payment lease payments Principal repayments.

4. Working capital represents excess of current assets over current liabilities.

5. Capital employed represents Tangible net worth Total debt Deferred tax liability.

B The Debt-equity ratio has upward marginally from 0.04 to 0.05 due to additional debt availed by the Company in form of working capital loan.

C The Debt-service coverage ratio has improved from 15.6 to 25.8 due to higher profitability in current year in comparision to previous year.

D The return on equity has increased from 12% to 16% due to higher profitability in current year in comparision to previous year.

E The trade payable turnover ratio has been improved from 14.4 to 29.1 is because of the higher inventory.

53 Transfer pricing

As per the international transfer pricing norms introduced in India with effect from 1 April, 2001, the Company is required to use certain specified methods in computing arm’s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.


Mar 31, 2022

A Contractual obligations

Refer note 48 B for disclosure of contractual commitments for the acquisition of property, plant and equipment.

B Property, plant and equipment pledged as security

Refer note 21 and 24 for information on property, plant and equipment pledged as security by the Company.

C The Company has given a warehouse building situated at Kandla, Gujarat on operating lease for long term as the Company intends to generate rental income and accordingly, the Company has transferred the said warehouse building to investment property (refer note 5).

D Capital work-in-progress mainly comprise of Plant and machinery and Buildings which are under installation/construction at the premises of the Company.

E During the year ended 31 March 2020, the Company had sold one of its wind turbine generator and corresponding freehold land (pending registration as at the reporting date) since the power purchase agreement for the same was not executed due to technical difficulties. However the Company has already transferred the control to the said customer and accordingly, the same had been recorded as sale of the said plant and machinery and corresponding freehold land in the year ended 31 March 2020.

F The Company has not revalued its property, plant and equipment.

G Rounded off to zero.

1 On 26 June 1993, M/s. K.B. Overseas had entered into an agreement with M/s. Khushi Ram Bihari Lal Limited wherein M/s. K.B. Overseas had transferred its entire business including all properties and assets to M/s. Khushi Ram Bihari Lal Limited. Further pursuant to declaratory civil suit no. 962/1998 titled M/s. Khushi Ram Bihari Lal Limited vs. M/s. Bhagirath Lal and Others decreed on 24 March 1999, the assets of M/s. K.B. Overseas inter-alia including these land parcels were taken over by M/s. Khushi Ram Bihari Lal Limited and later the name of M/s Khushi Ram Bihari Lal Limited was changed to M/s KRBL Limited on 1 February 2000. These properties were mutated in the name of M/s. KRBL Limited and the name of M/s. KRBL Limited has also been entered in land revenue records as bhumidhar. Thus, M/s. KRBL Limited is the owner of said parcels.

2 The Company has physical possession of these land parcels vide Memorandum of Understandings entered into by the Company with each of the above mentioned directors and their relatives. Further, the Company had also executed and registered the General Power of Attorney, Will and other necessary documents with the above mentioned directors and their relative, in favour of the Company. The Company is in process of doing the necessary compliance in relation to the registration of these land parcels in the name of the Company.

3 Pending registration in the name of the Company due to legal dispute. However, the building is in the possession of the Company and used for its business purpose. Further, the Company had already paid its obligation in full as per signed sale agreement.

Terms/ rights attached to ordinary equity shares

The Company has only one class of equity shares having a face value of ?1 per share. Each holder of equity shares is entitled to have one vote per share.

The board of directors of the Company in their meeting held on 27 May 2022 has recommended a final dividend @ 350% i.e. ?3.50 per equity share of face value of ?1/- each (31 March 2021: ?3.50 per share). The same shall be paid subject to the approval of shareholders in ensuing annual general meeting of the Company.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Shares reserved for issue under option

The Company has not reserved any shares for issuance under options.

Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

No bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

Description and purpose of reserves:

(i) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(ii) General reserve

The Company has transferred a portion of the net profit of the Company to general reserve from time to time and it is not the item of other comprehensive income. Also the Company has earlier forfeited the partly paid equity shares with the requisite approvals. The amount originally received against forfeited shares is also included in the general reserve.

(iii) Securities premium reserve

The amount received in excess of face value of the equity shares is recognised in securities premium reserve.

(iv) Capital reserve

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(v) Capital redemption reserve

The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

(vi) Cash flow hedge reserve

The cash flow reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges.

Details of security of non-current borrowings

The Company has executed deed of hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created mortgage on its movable and immovable properties located at various locations vide memorandum of entries for an amount of ?931 lacs (31 March 2021 : ?18,405 lacs) in the form of term loan facilities taken from State Bank of India under consortium. The same is secured by first pari-passu charge on all movable and immovable fixed assets of the Company, both present and future (except immovable fixed assets situated at Maharashtra and Madhya Pradesh for which the Company has executed the Non Disposable Undertaking) and second pari-passu charge on all current assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts and all other movables of whatsoever nature and where ever arising, both present and future of the Company.

A. Details of security of current borrowings

i. The Company has executed deed of hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created mortgage on its movable and immovable properties located at various locations vide memorandum of entries for an amount of ?155,500 lacs (31 March 2021 : ?175,400 lacs) in the form of loan and other facilities sanctioned by banks under consortium. The same is secured by first pari-passu charge on all current assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts and all other movables of whatsoever nature and where ever arising, both present and future and second pari-passu charge on all movable and immovable fixed assets of the Company, both present and future (except immovable fixed assets situated at Maharashtra and Madhya Pradesh for which the Company has executed the Non Disposable Undertaking) of the Company.

Further, the current borrowings of the Company are also secured vide the personal guarantees of Mr Anil Kumar Mittal, Mr Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (the liability of Mr. Ashish Mittal shall be limited only to the extent of the immovable properties mortgaged by him in favour of the security trustee for the benefit of working capital lenders).

ii. Durinig the year ended 31 March 2020, the Company has created subservient charge by way of hypothecation in favour of HDFC Bank Limited and created mortgage on its movable and immovable properties located at various locations for an amount of ?20,000 lacs. The same now stands submerged with the overall working capital facilities of ?155,500 lacs as mentioned above and as sanctioned inter-alia by HDFC Bank Limited under consortium.

1. It includes the sale of certified emission reduction certificates.

2. During the year ended 31 March 2022, the Company has recognised revenue of ?778 lacs pertaining to previous years 2019 till 202l, related to the energy supplied from wind mill to the Andhra Pradesh (''DISCOM''). During the previous period, the Company had not recognised the said revenue due to the uncertainty of recoverability of the amount as DISCOM had disputed the rate at which power purchased agreement (''PPA'') was signed and was paying the Company at the lower rate. However, in current year, the Hon''ble High Court, Andhra Pradesh, vide it order dated 15 March 2022 issued a directive to DISCOM to pay the amount for each unit of energy supplied by the Company as per the rates mentioned in the PPA. Accordingly, the Company has now recognised revenue at the contractually agreed rate.

3. It includes GBI of ?78 lacs (31 March 2021: ?69 lacs) and income from RODTEP of ?822 lacs (31 March 2021: ?Nil ). The Company has complied all the attached condition.

4. Liquidated damages received by the Company from its vendor for non execution of contract terms.

5. Refer note 39, for disaggregation of revenue from operations and other disclosures.

Policy for recognizing actuarial gains and losses:

Actuarial gains and losses of defind benefit plan arising from experience adjustments and effects of changes in actuarial assumptions are immediately recognized in other comprehensive income. Risks associated with the plan provisions are actuarial risks. These risk are investment risk, interest rate risk, mortality risk and salary risk.

Interest rate risk

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk. Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Capital management

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investors, creditors and market confidence.

The Company monitors capital using a ratio of "Net Debt" to "Total Equity". For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents. Total equity comprises of equity share capital and other equity.

During the year, no significant changes were made in the objectives, policies or processes relating to the management of the Company''s capital structure.

A Disclosure in respect of financial risk management

1. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, cash and cash equivalents, deposits and security deposits.

Credit risk management:

Concentration of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large and diverse. 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 long aged trade receivables, mainly comprise of receivables from DISCOM companies and as per past experience, there has been no credit loss on account of customer''s inability to pay as the revenue is agreement driven and all the customers are government companies. Thus, the Company''s historical experience of collecting receivables, supported by the level of default indicate a low credit risk and so trade receivables are considered to be a single class of financial assets. On the basis of the above assessment, the Company identified and written off an amount of ?21 lacs of trade receivable balances, which were subject to dispute and will not be realisable at the reporting date.

Other financial assets

Further, credit risk in respect of other receivables and loans, mainly comprise of security deposit, unbilled revenue, cash and bank equivalents and interest accrued on deposits which are managed by the Company, by way of assessing financial condition and current economic trends. The Company considers the probability of default associated with the other receivable and loan is very low at the year respective year end and thus would not require any provision, except as disclosed

2. Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(iii) Currency Risk

The Company operates internationally and consequently the Company is exposed to foreign exchange risk through its sales in overseas market. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

The Company has Outstanding Forward contracts and options of USD 68.60 Mio (PY. USD 42.00 Mio).

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• interest rate risk;

• price risk; and

• currency risk

(i) Interest risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at year end, the Company has following borrowings:

Foreign currency risk

The Company has designated certain forward contracts and borrowings as eligible hedging instruments for hedge of foreign currency forecast sales. Pursuant to this, the effective portion of change in value of the hedging instruments has been recognised in ''cash flow hedge reserve'' in other comprehensive income. Such amount is reclassified to profit or loss as and when the forecast transaction occurs or the hedges are no longer effective.

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, AED, GBP and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The Company''s policy is to hedge all material foreign exchange risk associated with highly probable forecast sales transactions denominated in foreign currencies. The Company''s policy is to hedge the risk of changes in foreign currency. The Company uses combination of pre-shipment credit in foreign currency (PCFC) and forward contracts (derivative instruments) to hedge its exposure in foreign currency risk. The Company designate both change in spot and forward element of forward contracts and change in spot of PCFCs to hedge exposure in foreign currency risk on highly probable forecast sales.

The Company''s hedging policy only allows for effective hedge relationships to be established. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessment to ensure that an economic relationship exists between the hedged item and hedging instrument.

For PCFCs, hedge effectiveness is measured by comparing change in the discounted spot restatement of hypothetical derivative with change in the value of actual hedging instrument i.e. PCFC.

In hedges of foreign currency forcast sales, ineffectiveness mainly arises because of Change in timing of hedged item from that of the hedging instrument and cost of hedging. The ineffectiveness arised in the hedges have been disclosed in above table.

1. The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables, other financial assets, borrowings, trade payables , lease liabilities and other financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments.

Further, these instruments are valued at level 3 and their fair value are considered to be same as their carrying value, as there is an immaterial change in the lending rate.

2. Investment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind AS 27. Therefore, the same are not in the scope of Ind AS 109 and not disclosed here.

2. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three level prescribed under the accounting standard. An explanation each level follows underneath the table.

Assets and liabilities measured at amortised cost, for which fair value are disclosed.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

3. Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the same as fair values, due to their short term nature.

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount.

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of borrowings approximates the carrying amount.

The fair valuation of investments in quoted equity shares is based on the current bid price of respective investments as at the balance sheet date.

46 Segmental Reporting

A Operating segments

Agri - Comprises of agricultural commodities such as rice, furfural, seed, bran, bran oil, etc.

Energy - Comprises of power generation from wind turbine, husk based power plant and solar power plant.

B Identification of segments

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

C Segment revenue and results [refer note 2(g)]

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure . D Segment assets and liabilities

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

48 Contingent liabilities and commitments A Contingent liabilities

(i) Claims against the Company not acknowledged as debts*

As at

As at

31 March 2022

31 March 2021

Income tax matters1

96

21,780

Indirect taxes2

6,772

7,126

Enforcement directorate investigation matter3

1,532

1,532

Other matters

1,171

1,093

9,571

31,531

1. For the year ended 31 March 2019, the Company had received assessment orders along with demand notices under Section 153A/143(3) of the Income-tax Act, 1961, with respect to assessment years 2010-11 to 2016-17, aggregating to ?126,920 lacs (including interest), which was contested by the Company before CIT (Appeals), New Delhi. The Hon''ble CIT(Appeals) vide its order dated 11 March 2020, granted partial relief to the Company and reduced the said demand to ?9,883 lacs (including interest). The Company had already deposited an amount of ?18,990 lacs, (net of refund), under protest, in respect of tax demand raised by the ITD.

Later, the Company and the Income Tax Department (''ITD'') had filed appeals before the Hon''ble Income Tax Appellate Tribunal (Hon''ble Tribunal), New Delhi, for the matters sustained and set-aside at the CIT (Appeals) levels, respectively. Further, the Company had also received penalty orders for AY 2010-11 to 2016-17 on the issues sustained by CIT(A) to the tune of ?11,896 lacs, against which appeals was filed before CIT(A).

Subsequent to the year ended 31 March 2022, the Hon''ble Tribunal vide its consolidated order dated 9 May 2022, has granted relief in favour of the Company reducing the liability to ?96 lacs (including interest) and has dismissed all the appeals filled by ITD. The sustained matter by the Hon''ble Tribunal has been remand back to the Income-tax officer for further review. Simultaneously, CIT(A) has also quashed the demand of penalty, raised by the Assessing Officer of ?11,896 lacs. At the year end, the management has assessed ?96 lacs as contingent liability and is evaluating available legal remedies.

2. Indirect taxes mainly comprise of matter relating to VAT, sales tax pending at various levels and also includes the matters related to mandi fee levied under the Agricultural Produce Market Committee Act, 2003 for an amount of ?1,138 lacs.

3 A portion of land parcels and building thereupon, situated at Dhuri, Punjab was attached by the Directorate of Enforcement (''ED'') to the extent of value of ?1,532 lacs in connection with a money laundering investigation. The Appellate Tribunal, PMLA, New Delhi, (""Appellate Tribunal"") had restored the possession of the attached land on interim basis in favour of the Company. However, aforesaid attachment would continue till conclusion of the matter. Against the order of the Appellate Tribunal, ED had filed an appeal before the Hon''ble High Court of Delhi, which is pending for hearing. The Company filed an application before the Hon''ble High Court of Delhi for restoration of possession of the land in favour of the Company and High court allowed the Company to take physical possession of the said land parcels and building thereupon for specified purpose against the deposit of ?1,113 lacs, (deposited on 5 November 2020), as an interim relief until conclusion of the aforesaid matter, without prejudice to the rights and contentions of the parties to be decided in the appeal. The management based upon the legal assessments, is confident that it has a favourable case and the said attachment shall be vacated.

4.The Company''s Joint Managing Director, Mr. Anoop Kumar Gupta (''JMD''), had been detained and released on bail by the Directorate of Enforcement (''ED'') pursuant to certain allegations against the Company, KRBL DMCC (a subsidiary of KRBL Limited) and JMD. As per criminal complaint filed it is alleged that M/s Rawasi Al Khaleej General Trading LLC (''RAKGT'') had received proceeds of crime of USD 24.62 million in AgustaWestland case during the period 2008-2010 which in turn had been transferred to KRBL Limited through KRBL DMCC. Basis the affidavit filed by Balsharaf Group (one of the Customer of the Company) in the Hon''ble High Court of Delhi in the said matter, the amount of USD 24.62 million had been received by RAKGT in the account of Balsharaf Group. Pursuant to this, ED had attached 1,43,33,221 shares of Balsharaf Group held in KRBL Limited. Based on the opinion taken from the independent legal counsel, the management is of the view that since the investigation is still ongoing no adverse opinion can be drawn.

The Company had appointed an independent professional firm (''IP'') to review the aforesaid allegations, to assess the impact, if any, on the financial statement and control environment of the Company. Subsequent to the year ended 31 March 2022, the IP has issued a report to the Board of Directors with respect to the aforesaid review. The board of the directors has discussed and approved the report, and has responded to the observation contained therein, basis that no further action is proposed.

However, pending the ongoing investigation on the above matter, no adjustment has been made in the financial statement. The management of the Company is confident that the above stated matter will be resolved soon.

The auditors of the Company have qualified on the aforementioned issue in their audit report for the year ended 31 March 2022.

* The Company on the basis of the legal opinion is of the firm belief that the above demands are not tenable and highly unlikely to be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The amounts disclosed are based on the orders/ notices received from the authorities.

The Company has filed the statements of current assets with the consortium lenders in accordance with the sanction letters and these statements are in agreement with the books of accounts for that period.

During the year, the Company has only borrowed the working capital loans from the consortium lenders and they are used for its intended purpose.

Disclosures pursuant to Regulation 34(3) of Securities and Exchange Board of India (Listing Obligations And Disclosure

Requirements) Regulations, 2015 And Section 186 of the Companies Act, 2013

The Company has not provided any loans, security and corporate guarantees covered under section 186 of the Companies

Act, 2013 and accordingly, the disclosure requirements to the extent does not apply to the Company. Refer note 7 for details of

investment in subsidiaries and note 12 for details of other investments.

Additional regulatory information required by Schedule III to the Companies Act, 2013

i. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

iii. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

iv. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

v. The Company has not traded or invested in Crypto currency or virtual currency during the year.

vi There is no income surrendered or disclosed as income during the year in tax assessments under the Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

A Formula used for calculation of ratios:

1. Total Debt represent aggregate of borrowing from the banks, related parties and lease liabilities.

2. Earnings available for debt service represent the Net Profit after taxes Depreciation and other amortizations Interest expense other adjustments on account of Gain/loss on sale of property, plant and equipment.

(All amounts stated in '' lacs, unless otherwise stated)

vii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (''Intermediaries'') with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (''Ultimate Beneficiaries'') or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii. The Company have not received any fund form any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

53 Basis the management''s assessment, it has been concluded that the Company has made no transactions with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.

3. Debt service represent Interest and lease payments Principal repayments.

4. Working capital represents excess of current assets over current liabilities.

5. Capital employed represents Tangible net worth Total debt Deferred tax liability.

B The current ratio of the Company has improved from 4.7 to 7.4 owing to the fact that the Company is having the healthy cash accrual year-on-year basis which helps in reducing the liabilities and increase the asset base of the Company.

C The Debt ratio has improved from 0.10 to 0.04 owing to the fact that the external debt of the Company have been repaid substantially. Further, the Company''s net-worth has also improved on year-to-year basis.

D The return on equity has decreased from 16.5% to 11.9% owing to the compressed gross margin.

E The trade payable turnover ratio has been improved from 9.4 to 14.4 is because of the effective purchase mechanism.

F There has been decrease on return on investment from 13.6% to 6.2% as there was a significant gain on the fair valuation of investments in equity shares during the previous year.

55 Transfer pricing

As per the international transfer pricing norms introduced in India with effect from 1 April 2001, the Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.


Mar 31, 2021

A Contractual obligations

Refer note 47 B for disclosure of contractual commitments for the acquisition of property, plant and equipment.

B Property, plant and equipment pledged as security

Refer note 20 and 23 for information on property, plant and equipment pledged as security by the Company.

C During the year, the Company has given a portion of warehouse, situated at Kandla, Gujarat on operating lease for short term duration. The said warehouse has been and will be utilised by the Company for its business purpose only. The net carrying value of the said building is ''346 lacs (31 March 2020: ''363 lacs)

D Out of the total land parcels, 52 land parcels amounting to ''761 lacs (31 March 2020 :''761 lacs) are registered in the name of Mr Anil Kumar Mittal, Mr Arun Kumar Gupta and Mr Anoop Kumar Gupta ("KMPs") and their relative namely, Mr Ashish Mittal, though the payment had been made by the Company. The Company has physical possession of such land parcels vide Memorandum of Understandings (MOUs) entered into by the Company with each of the above KMPs and their relative. Further the Company had already executed and registered the General Power of Attorney, Will and other documents with the respective KMPs and their relative in favour of the Company.

E Out of the total land parcels, also 26 land parcels amounting to ''83 lacs (31 March 2020 :''83 lacs) of which tittle deeds are in the name of KB Overseas, the erstwhile firm merged with the Company.

F Buildings amounting to ''148 lacs (31 March 2020 : ''150 lacs) are pending registration in the name of the Company.

G Capital work-in-progress mainly comprise of plant and machinery which are under installation at the premises of the Company.

H During the previous year, the Company had sold one of its wind turbine generator and corresponding freehold land (pending registration as at the reporting date) since the power purchase agreement for the same was not executed due to technical difficulties. However the Company has already transferred the control to the said customer and accordingly, the same had been recorded as sale of the said plant and machinery and corresponding freehold land in the year ended 31 March 2020.

I Rounded off to zero.

BASMATI RICE

Summary of the standalone significant accounting policies and other explanatory information for the year ended 31 March 2021

(All amounts stated in ? lacs, unless otherwise stated)

Leases

Right of use assets

Particulars

As at

As at

31 March 2021

31 March 2020

Gross carrying amount

Opening gross carrying amount

9,152

Additions for the year

1,124

9,152

Disposals (including termination and modification)

(1,984)

-

Balance at the end of the year

8,292

9,152

Accumulated depreciation Opening accumulated depreciation

1,014

Additions for the year

1,055

1,014

Disposals (including termination and modification)

(255)

-

Balance at the end of the year

1,823

1,014

Net carrying amount at the end of the year

6,469

8,138

Lease Liabilities

Particulars

As at

As at

31 March 2021

31 March 2020

Non-current

5,324

5,955

Current

828

515

6,152

7,580

C. Lease related disclosures

The Company has leases mainly for the land and buildings. With the exception of short-term leases, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. There are no variable lease payments included in the agreement.

i. Extension and termination options

Extension and termination options are included in all leases. These terms are used to maximise operational flexibility in terms of managing contracts.

ii. Lease payments not included in measurement of lease liability

The Company has elected not to recognise a lease liability for short term leases (leases of expected term of 12 months or less). Payments made under such leases are expensed on a straight-line basis. The expense relating to payments not included in the measurement of the lease liability is as follows:

Particulars

For the year ended 31 March 2021

For the year ended 31 March 2020

Amount of leases which are for short term of 12 months or less

102

60

The following are amounts recognised in profit or loss with respect to leasing arrangements:

Particulars

For the year ended 31 March 2021

For the year ended 31 March 2020

Depreciation on right of use assets Interest expense on lease liabilities

1,065

557

1,014

675

iv. Total cash outflow in respect of leases in the year amounts to ? 1,296 lacs. (31 March 2020 ? 1,239 lacs)

b) Terms/ rights attached to ordinary equity shares

The Company has only one class of equity shares having a face value of ''1 per share. Each holder of equity shares is entitled to have one vote per share.

The board of directors of the Company in their meeting held on 29 June 2021 has recommended a final dividend @ 350 % i.e. ''3.50 per equity share of face value of ''1/- each (31 March 2020 - ''2.80 per share). The same shall be paid subject to the approval of shareholders in ensuing annual general meeting of the Company.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Shares reserved for issue under option

The Company has not reserved any shares for issuance under options.

e) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

No bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

Description and purpose of reserve

(i) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(ii) General reserve

The Company has transferred a portion of the net profit of the Company to general reserve from time to time and it is not the item of other comprehensive income. Also the Company has earlier forfeited the partly paid equity shares with the requisite approvals. The amount originally received against forfeited shares is also included in the general reserve.

(iii) Securities premium

The amount received in excess of face value of the equity shares is recognised in securities premium.

(iv) Capital reserve

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(v) Capital redemption reserve

The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

(vi) Cash flow hedge reserve

The cash flow reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges.

A. Details of security of non-current borrowings

The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created mortgage on its movable and immovable properties located at various locations for an amount of ''18,405 lacs (31 March 2020 - ''18,405 lacs) in the form of term loan facilities taken from various banks under consortium.

First pari-passu charge on all movable and immovable properties of the Company and second pari-passu charge on all current assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts and all other movable of whatsoever nature and where ever arising, both present and future of the Company.

A. Details of security of current borrowings

i. The Company has created hypothecation in favour of SBICAP Trustee Company Limited (acting as Security Trustee) and created mortgage on its movable and immovable properties located at various locations for an amount of ''1,75,400 lacs (31 March 2020 - ''1,75,400 lacs) in the form of loan and other facilities taken under consortium.

First pari-passu charge on entire current assets including but not limited to stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts and all other movable of whatsoever nature and where ever arising, both present and future of the Company and second pari-passu charge on entire movable and immovable properties of the Company.

Further, Mr Anil Kumar Mittal, Mr Arun Kumar Gupta, Mr Anoop Kumar Gupta and Mr. Ashish Mittal (to the extent of the properties mortgaged by him) has given their personal guarantees in favour of working capital lenders.

ii. During the year ended 31 March 2020, the Company has created subservient charge by way of hypothecation in favour of HDFC Bank Limited and created mortgage on its movable and immoveable properties located at various locations for an amount of ''20,000 lacs. There is no amount outstanding against the said facility, as at the balance sheet date.

D. During the previous year, the Company had exercised the option permitted under Section 115BAA of the Income-tax Act, 1961 ("Act") as introduced by the Taxation Laws (Amendment) Ordinance, 2019 in quarter ended 30 September 2019, which had resulted in lower tax rate of 25.17% as compared to 34.94% on the taxable profits, computed without any exemption/incentives under the different provisions of the Act. Consequent to such change, the accumulated deferred tax liabilities (net) has been remeasured, which has resulted in a onetime additional charge of ''788 lacs recognised in the Statement of Profit and loss for the year ended 31 March 2020.

E. The Company doesn''t have any carry forward losses at the year end.

B. Defined benefit plans Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained liability to Kotak Mahindra Life Insurance Company Limited with whom the plan assets are maintained.

Policy for recognizing actuarial gains and losses:

Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial assumptions are immediately recognized in other comprehensive income. Risks associated with the plan provisions are actuarial risks. These risk are investment risk, interest rate risk, mortality risk and salary risk.

Interest rate risk

The present value of the defined benefit liability is calculated using a discount rate determined by reference to market yields of high quality corporate bonds. The estimated term of the bonds is consistent with the estimated term of the defined benefit obligation and it is denominated in INR. A decrease in market yield on high quality corporate bonds will increase the Company''s defined benefit liability, although it is expected that this would be offset partially by an increase in the fair value of certain of the plan assets.

Investment risk

Plan assets comprise funds managed by the insurer i.e. Kotak Mahindra Life Insurance Company Limited and details of assets are not available and hence not accordingly disclosed.

Mortality risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. A change in mortality rate will have a bearing on the plan''s liability.

Salary risk

The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Based on the recommendation of CSR Committee, the Board of Directors of the Company during the financial year 2U2U-21, had considered and approved the CSR Project for setting up the Centralized Kitchen for running mid-day meals programme in Gautam Budh Nagar, Uttar Pradesh with the Akshaya Patra Foundation (‘the Foundation''). The Company had entered into "Memorandum of Understanding" (MOU) with the Foundation for the same. This being an ongoing project, during the financial year 2020-21 the Company had incurred an expenditure of ''11.36 lacs on this project and the balance amount is yet to be spend which shall be transferred to Unspent Corporate Social responsibility account as per the relevant rules of the Companies Act,2013.

42 Capital management

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investors, creditors and market confidence.

The Company monitors capital using a ratio of "Net Debt" to "Total Equity". For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents. Total equity comprises of equity share capital and other equity.

During the year, no significant changes were made in the objectives, policies or processes relating to the management of the Company''s capital structure.

A Disclosure in respect of financial risk management

1. Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, cash and cash equivalents, deposits and security deposits.

Credit risk management

Concentration of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large and diverse. 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 long aged trade receivables, mainly comprise of receivables from DISCOM companies and as per past experience, there has been no credit loss on account of customer''s inability to pay as the revenue is agreement driven and all the customers are government companies. Thus, the Company''s historical experience of collecting receivables, supported by the level of default indicate a low credit risk and so trade receivables are considered to be a single class of financial assets.

On the basis of the above assessment, the Company identified and written off an amount of ''245 lacs of trade receivable balances, which were subject to dispute and will not be realisable at the reporting date.

Other financial assets

Further, credit risk in respect of other receivables and loans, mainly comprise of security deposit, unbilled revenue, cash and bank equivalents and interest accrued on deposits which are managed by the Company, by way of assessing financial condition and current economic trends. The Company considers the probability of default associated with the other receivable and loan is very low at the year respective year end and thus would not require any provision, except as disclosed below.

2. Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(ii) Price Risk

The Company is mainly exposed to the price risk due to its investment in equity shares. The price risk arises due to uncertainties about the future market values of these investments.

The table below summarises the impact of increases/decreases of the market value of shares on the Company''s equity and profit for the year. The analysis is based on the assumption that the market value of equity shares has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

Foreign currency risk

Effective from 1 April 2019, the Company has designated certain forward contracts and borrowings as eligible hedging instruments for hedge of foreign currency forecast sales. Pursuant to this, the effective portion of change in value of the hedging instruments has been recognised in ‘cash flow hedge reserve'' in other comprehensive income. Such amount is reclassified to profit or loss as and when the forecast transaction occurs or the hedges are no longer effective.

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, AED, GBP and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

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1. The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables, other financial assets, borrowings, trade payables , lease liabilities and other financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments.

Further, these instruments are valued at level 3 and their fair value are considered to be same as their carrying value, as there is an immaterial change in the lending rate.

2. I nvestment in equity instrument in the subsidiary has been accounting at cost in accordance with Ind AS 27. Therefore, the same are not in the scope of Ind AS 109 and not disclosed here.

2. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three level prescribed under the accounting standard. An explanation each level follows underneath the table.

Assets and liabilities measured at amortised cost, for which fair value are disclosed.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers among levels 1, 2 and 3 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

3. Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the same as fair values, due to their short term nature.

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of borrowings approximates the carrying amount.

The fair valuation of investments in quoted equity shares is based on the current bid price of respective investments as at the balance sheet date.

45 Segmental Reporting A Operating segments

Agri - Comprises of agricultural commodities such as rice, furfural, seed, bran, bran oil, etc.

Energy - Comprises of power generation from wind turbine, husk based power plant & solar power plant.

B Identification of segments

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

C Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure . Refer note 2q of the accounting policies for segment revenue and results.

D Segment assets and liabilities:

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

2. As gratuity and compensated absences are computed for all the employees in aggregate, the amount relating to relatives of KMPs cannot be individually identified.

3. Amounts are below rounding off thresholds adopted by the Company.

4. Personal guarantee has been given by Mr. Anil Kumar Mittal, Mr. Anoop Kumar Gupta and Mr. Arun Kumar Gupta in respect of working capital consortium loan taken by the Company, as at the year ended 31 March 2021, the outstanding amount of loan is ''19,500 lacs (31 March 2020 ''39,308 lacs) and Mr. Ashish Mittal (relative of key managerial personnel) to the extent of the immovable properties as specified in consortium agreement.

5. All related party transactions are at arms length price and in the ordinary course of business.

6. Refer note 3(D) for transactions related to Property, Plant and Equipment with KMP and their relatives.

1. During the year ended 31 March 2019, the Company had received demand notices under section 153A/143(3) of the Income-tax Act, 1961, with respect to assessment years 2010-11 to 2016-17, amounting to ''75,744 lacs and interest thereon ''51,176 lacs, which were contested by the management at CIT (Appeals), New Delhi. During the year ended 31 March 2020, CIT (Appeals) had granted partial relief on certain matters in favor of the Company, vide order dated 11 March

2020, and correspondingly, income tax demand had been reduced by ''69,612 lacs and interest thereon by ''47,424 lacs.

The Company had filed further appeals before Hon''ble Income-tax Appellate Tribunal (ITAT), New Delhi on 18 June 2020 for remaining matters sustained by CIT (Appeals) in respect of income tax demand of ''6,132 lacs and interest thereupon of ''3,752 lacs. The Company had already paid ''21,900 lacs, under protest

The Income-tax department has also filed appeals in Hon''ble Income Tax Appellant Tribunal, New Delhi in respect of the matters allowed by CIT (Appeals) for appeals filed by the Company. However, a copy of appeal had not been received by the company, in respect of said filing by the department.

The management, based on legal assessment, is confident that it has a favorable case and the remaining demand shall also be deleted at the ITAT level.

Further, the Company has received penalty orders under section 271(1) (c)/ 271AAB (1) for AY 2010-11 to 2016-17 on the matters sustained by CIT (Appeals) of amounting to ''11,896 lacs. The Company has filed appeals before CIT (Appeals) in respect of such penalty orders on 24th March, 2021.

However, Hon''ble Income Tax Appellate Tribunal vide its order dated 12 March, 2021 has granted interim relief till 12 May

2021, which has been extended till 16 July 2021, to the Company against such recovery of demand.

2. Indirect taxes mainly comprise of matter relating to VAT, sales tax pending at various levels and also includes the matters related to mandi fee levied under the Agricultural Produce Market Committee Act, 2003 for an amount of ''1493 lacs.

3 A portion of land parcels and building thereupon, situated at Dhuri, Punjab was attached by the Enforcement Directorate (""ED"") vide its order dated 3 July 2019, to the extent of value of ''1,532 lacs in connection with a money laundering investigation.

The Company filed an appeal against the aforementioned order with Appellate Tribunal, PMLA, New Delhi, (""Appellate Tribunal"") who vide its order dated 17 January 2020, had restored the possession of the attached land on interim basis in favour of the Company. However, aforesaid attachment would continue till the conclusion of the matter. Against the order of the Appellate Tribunal, ED had filed an appeal before the Hon''ble High Court of Delhi, which is pending for hearing.

The Company filed an application before the Hon''ble High Court of Delhi for restoration of possession of the land in favour of the Company in accordance with the order dated 17 January 2020 passed by the Appellate Tribunal. The High Court vide its order dated 23 October 2020 has allowed the Company to take physical possession of the said land parcels and building thereupon for specified purpose against the deposit of ''1,113 lacs, (deposited on 5 November 2020), as an interim relief until conclusion of the aforesaid matter, without prejudice to the rights and contentions of the parties to be decided in the appeal. The management based upon the legal assessments, is confident that it has a favourable case and the said attachment shall be vacated.

4 The Company''s Joint Managing Director, Mr. Anoop Kumar Gupta had been detained and released on bail by the Enforcement Directorate (‘ED'') with regard to the investigation under the Prevention of Money Laundering Act, 2002, for alleged involvement in AgustaWestland case, pursuant to the order of Special Judge, Rouse Avenue Courts dated 30 January 2021 and dated 05 April 2021, respectively.

ED vide their criminal complaint dated 30 March 2021, has made certain allegations against the Company, KRBL DMCC (a subsidiary of KRBL Limited) and Mr. Anoop Kumar Gupta. As per criminal complaint filed it is alleged that M/s Rawasi Al Khaleej General Trading LLC (‘RAKGT'') has received proceeds of crime of USD 24.62 million in AgustaWestland case during the period 2008-2010 which in turn has been transferred to KRBL Limited through KRBL DMCC. Basis the affidavit filed by Balsharaf Group (one of the Customer of the Company) in the Hon''ble High Court of Delhi in the said matter, the amount of USD 24.62 million has been received by Balsharaf Group from RAKGT. Pursuant to this, ED had attached 1,43,33,221 shares of Balsharaf Group held in KRBL Limited.

The management of the Company has taken an opinion from an independent legal counsel and on the basis of the same is of the view that since the investigation is still ongoing no adverse opinion can be drawn. The Board of Directors of the Company have appointed an independent professional firm to review the aforesaid allegations, by undertaking steps as necessary, in order to assess impact of aforesaid matter, if any, on the standalone financial statements and control environment of the Company. Pending the ongoing investigation on the above matter, no adjustment has been made in the standalone financial statements of the Company. The management of the Company is confident that the above stated matter will be resolved soon.

* The Company on the basis of the legal opinion is of the firm belief that the above demands are not tenable and highly unlikely to be retained by higher authorities and is accordingly not carrying any provision in its books in respect of such demands. The amounts disclosed are based on the orders/ notices received from the authorities.

51 Disclosures Pursuant To Regulation 34 (3) Of Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations, 2015 And Section 186 Of The Companies Act, 2013

The Company has not provided any loans, security and corporate guarantees covered under section 186 of the Companies act, 2013 and accordingly, the disclosure requirements to the extent does not apply to the Company. Refer note 6 for details of Investment in subsidiaries and note 11 for details of other investments.

52 Transfer pricing

As per the international transfer pricing norms introduced in India with effect from 1 April 2001, the Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

53 The Indian Parliament has approved the Code on Social Security, 2020 which is expected to impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

54 The outbreak of Coronavirus (Covid-19) has severally impacted business globally including India. Since the nature of business performed by the Company falls under the essential category, the Company continued to operate its manufacturing facilities and distribute its products in accordance with the prescribed guidelines. Though there have been some operational difficulties due to lock down imposed in various regions, the impact on overall operations have not been significant. Further, the management of the Company has also assessed the impact of the situation on the capital, profitability, liquidity positions etc. giving due consideration to the internal and external factors, and based on its assessment, the pandemic doesn''t have any material impact on the standalone financial statements of the Company. Further, on account of continued spread of COVID-19 in the country, the Company has made timely and requisite changes in business model during the year. The Company is continuously monitoring the situation arising on account of COVID-19 and will make appropriate action required, if any.


Mar 31, 2018

1 COMPANY INFORMATION

- KRBL Limited (the Company) is a Domestic Public Limited Company and listed on the Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). The Company is World’s leading Basmati Rice player with milling capacity of 195 MT per hour. The company has fully integrated operations with involvement in every aspect of Basmati value chain, right from seed development, contact farming, procurement of paddy, storage, processing, packaging, branding and marketing. Among the many brands launched by the company “India Gate” is the flagship brand both in Domestic and International Markets.

b) Terms/ rights attached to ordinary Equity shares

The Company has only one class of Equity Shares having a face value of ‘1 per share. Each holder of Equity Shares is entitled to have one vote per share. The Company declares dividend in Indian Rupees and pays in INR to Resident Shareholders and in USD to the Foreign Shareholders under FDI Category.

The Board of Directors of the Company in their meeting held on May 10, 2018 had recommended a final dividend @230% i.e. ‘2.30 per equity share of face value of Rs.1/- each for the year ended March 31, 2018 (P.Y. Rs.2.10 per share). The same shall be paid subject to the approval of shareholders in the ensuing Annual General Meeting of the Company.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

* Due to inter-se promoter group share transfer from Anil Kumar Mittal, Preeti Mittal, Priyanka Mittal & Ashish Mittal to Anil Mittal Family Trust, Anulika Gupta to Arun Kumar Gupta Family Trust and Binita Gupta to Anoop Kumar Gupta Family Trust, the shareholding of Anil Kumar Mittal, Preeti Mittal, Anulika Gupta and Binita Gupta were reduced and hence they were not part of the shareholders holding more than 5% shares in the company as on March 31, 2018. Further due to inter-se promoter group share transfer, the shareholding of Anil Mittal Family Trust, Arun Kumar Gupta Family Trust and Anoop Kumar Gupta Family trust were increased and they became the shareholders holding more than 5% shares in the company as on March 31, 2018.

d) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: During the Buy-Back period i.e. March 4, 2013 to February 11, 2014, the Company has Bought Back and Extinguished 77,22,048 Equity Shares at an average price of Rs.23.58 per share, utilising a sum of Rs.18.21 Crores (Rupees Eighteen Crores Twenty One Lacs) excluding Transaction Cost. Agreegate number of Bonus shares issued in last 5 years immediately preceding the reporting date is Nil.

(b) The Company has classified the various benefits provided to employees as under:

Gratuity: The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India.

Leave Encashment: The Company provides for Leave Encashment for during the year on an arithmetical basis and the same is payable to the employees on separation from the Company due to death, retirement, superannuation or resignation. The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the Balance Sheet date.

Provident Fund: Retirement benefit in the form of provident fund is a defined contribution scheme. All the employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan in which both the employee and the Company contribute monthly at a stipulated rate. Contributions are made to PF in India for employees at the rate of 12% of the basic salary as per the rules and regulations. The Company has no liability for future provident fund benefits other than its annual contribution and recognises such contributions as an expense in the period in which employee renders the related service. The contributions are made to recognised provident fund administered by the government.

Significant estimates with respect to Defined benefit plans:

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in India.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increase and gratuity increase are based on expected future inflation rates in India.

Significant Leasing arrangement:

The Company has entered into leasing arrangements in respect of godowns/premises. Further, some lands are also taken on lease for power generation projects at different locations which has been classified as operating lease.

- Basis of determining contingent rent:

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

- Renewal/purchase options & escalation clauses:

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor.

- There are no restrictions imposed by the lease arrangements, concerning dividend and additional debt.

2.01 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 24: RELATED PARTY DISCLOSURES NATURE OF RELATIONSHIP AND TRANSACTION WITH RELATED PARTIES:

1 Related Parties and their Relationship:

a) Subsidiary Company : KRBL DMCC

: K B Exports Private Limited

b) Key Management Personnel:

Mr. Anil Kumar Mittal : Chairman & Managing Director

Mr. Arun Kumar Gupta : Joint Managing Director

Mr. Anoop Kumar Gupta : Joint Managing Director

Ms. Priyanka Mittal : Whole Time Director

Mr. Ashok Chand : Whole Time Director

Mr. Rakesh Mehrotra : Chief Financial Officer

Mr. Raman Sapra : Company Secretary

c) Independent Non-Executive Directors:

Mr. Vinod Ahuja : Independent Non Executive Director

Mr. Ashwani Dua : Independent Non Executive Director

Mr. Shyam Arora : Independent Non Executive Director

Mr. Devendra Kumar Aggawal : Independent Non Executive Director

Mr. Alok Sabharwal : Independent Non Executive Director

d) Employee benefit plans where there in significant influence:

KRBL Limited Employees Group Gratuity Trust

e) Relatives of Key Management Personnel:

Mrs. Preeti Mittal : Wife of Mr. Anil Kumar Mittal

Mrs. Anulika Gupta : Wife of Mr. Arun Kumar Gupta

Mrs. Binita Gupta : Wife of Mr. Anoop Kumar Gupta

Mr. Ashish Mittal : Son of Mr. Anil Kumar Mittal

Mrs. Sonali Mittal : Wife of Mr. Ashish Mittal

Mrs. Neha Singh : Daughter of Mr. Arun Kumar Gupta

Mr. Kunal Gupta : Son of Mr. Arun Kumar Gupta

Mrs. Avantika Gupta : Wife of Mr. Kunal Gupta

Mrs. Rashi Gupta : Daughter of Mr. Anoop Kumar Gupta

Mr. Akshay Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Anushree Gupta : Wife of Mr. Akshay Gupta

Mr. Ayush Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Sanchi Gupta : Wife of Mr. Ayush Gupta

Anil Kumar Mittal HUF : Mr. Anil Kumar Mittal is Karta of HUF

Arun Kumar Gupta HUF : Mr. Arun Kumar Gupta is Karta of HUF

Anoop Kumar Gupta HUF : Mr. Anoop Kumar Gupta is Karta of HUF

f) Enterprises over which key management personnel are able to exercise significant influence:

Khushi Ram Behari Lal : Partnership Firm in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr.

Anoop K. Gupta are Partners.

Aakash Hospitality Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

Anurup Exports Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

Adwet Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

K B Exports Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

Holistic Farms Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

India Gate Foods Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta, Ms. Priyanka Mittal and Mr. Kunal Gupta and Mr. Ashish Mittal are Directors.

KRBL Foods Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors.

Radha Raj Logistics Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta

& Mr. Anoop K. Gupta are Directors.

Radha Raj Infrastructure Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta, Mr. Anoop K. Gupta, Mr. Ashwani Dua, Mr. Manav Dua and Mr. Balbir Kapoor are Directors.

Padmahasta Warehousing Pvt. Ltd. : Private Limited Company in Which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

KRBL Infrastructure Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors.

Radha Raj IT City & Parks Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

Solid Infradevelopers Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta

& Mr. Anoop K. Gupta and Mr. Sanjeev Gupta are Directors.

g) Trust/Society over which key management personnel are able to exercise significant influence :

Seth Banwari Lal Charitable Trust : Trust in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Seth Khushi Ram Charitable Trust : Trust in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Seth Banwari Lal Education Society : Society in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Anil Kumar Mittal Children Welfare Trust : Trust in which Mr. Arun K. Gupta & Mr. Anoop K. Gupta are trustees. Arun Kumar Gupta Children Welfare Trust : Trust in which Mr. Anil K. Mittal & Mr. Anoop K. Gupta are trustees. Anoop Kumar Gupta Children Welfare Trust : Trust in which Mr. Anil K. Mittal & Mr. Arun K. Gupta are trustees. Anil Mittal Family Trust : Trust in which Mr. Anil K. Mittal and Mrs. Preeti Mittal are trustees.

Anoop Kumar Gupta Family Trust : Trust in which Mr. Anoop K. Gupta, Mr. Akshay Gupta and Mr. Ayush

Gupta are trustees.

Arun Kumar Gupta Family Trust : Trust in which Mr. Arun K. Gupta and Mr. Kunal Gupta are trustees.

Anulika Gupta Family Trust : Trust in which Mr. Arun K. Gupta and Mrs. Anulika Gupta are trustees.

Binita Gupta Family Trust : Trust in which Mr. Anoop K. Gupta and Mrs. Binita Gupta are trustees.

Ashish Mittal Family Trust : Trust in which Mr. Anil K. MIttal, Mrs. Preeti Mittal and Mr. Ashish Mittal are trustees.

c) Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those prevailing in arm’s length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which related party operates. Outstanding balances at the year-end are unsecured. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.

d) Transactions with key management personnel

The Company has taken an interest free loan from directors of the company and is repayable on demand (Refer Note no. 15B)

2.02 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 108:- OPERATING SEGMENTS Segmental Reporting:

For management purposes, the Company is organized into business units based on its products and services and has two reportable segments, as follows:

-Agri - Comprises of agricultural commodities such as rice, Furfural, seed, bran, bran oil, etc.

- Energy - Comprises of power generation from wind turbine, husk based power plant & solar power plant.

No operating segment have been aggregated to form the above reportable operating segments.

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

1 Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including cash and cash equivalents and deposit with banks and financial institutions.

Credit risk management:

i) Trade receivable related credit risk

Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on routine basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low and so trade receivables are considered to be a single class of financial assets.

ii) Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposit with banks, money market liquid mutual funds with financial institutions and derivative financial instruments. The Company’s maximum exposure to credit risk as at March 31, 2018 and March 31, 2017 is the carrying value of each class of financial assets.

iii) Treasury related credit risk

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. The Company actively manages its exposure to credit risk, reducing surplus cash balances wherever possible through investment in bank deposits. Further, the company ensures it diversifies its treasury related credit risk by investing in bank deposits in different banks. Limits are set for maximum investment in deposits in each bank.

2 Liquidity Risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

A Maturities of financial liabilities

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows.

3 Market risk - foreign exchange risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- price risk; and

- interest rate risk.

4 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 21:- THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES:

Potential Impact of Risk:

A) Currency Risk

The Company operates internationally and consequently the Company is exposed to foreign exchange risk through its sales in overseas market. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

The Company has Outstanding Forward contracts as on March 31, 2018 and there is Marked to Market ( MTM) unrealized gain/(loss) on forward contracts of ‘ (35.57) Lacs as at March 31, 2018, (P.Y. Nil), which has been accounted for accordingly in the books of accounts.

Derivative Instruments

i) Outstanding forward exchange contracts as entered into by the Company for the purpose of hedging its foreign currency exposures are as under:

ii) Foreign currency exposure recognized by the Company that have not been hedged by a derivative instrument or otherwise are as under:

Apart from above Company has foreign currency Liability (PCFC/Advances received from customers/ ECB) of Rs.72,597.16 Lacs as at March 31, 2018, (P.Y. Rs.30,380.79 Lacs) at the year end, further as per the IND AS the effect of change in foreign exchange gain/(loss) as on March 31,2018 is amounting to Rs.97.16 Lacs P.Y ‘ (109.56 Lacs) has been taken to statement of profit and loss.

B) Interest Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at March 31, 2018, the Company had long term borrowings amounting to Rs.8,110.78 Lacs (P.Y. Rs.12,502.00 Lacs).

Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates (after considering repayments) were utilised for the whole financial year.

C) Price Risk

The Company is mainly exposed to the price risk due to its investment in equity shares and mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

The table below summarises the impact of increase/decrease of the index on the Company’s equity and profit for the year. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

2.03 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 113: FAIR VALUE MEASUREMENT:

Significant estimates with respect to fair value of financial instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the present valuation technique. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

B Fair value hierarchy

This section explains the judgements and estimates made in determining the fair value of financial instruments that are (a) recognised and measured at fair value (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three level prescribed under the accounting standard. An explanation of each level follows below :

Assets and liabilities measured at amortised cost, for which fair value are disclosed

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximises the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs are required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers among levels 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the same as fair values, due to their short term nature.

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending rate.They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount.

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of borrowings approximates the carrying amount.

2.04 DISCLOSURE IN RESPECT OF CAPITAL MANAGEMENT:

A Risk management

Equity share capital and other equity are considered for the purpose of Company’s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the level of dividend to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

B Dividend

Under Previous GAAP, proposed dividend and related dividend distribution tax was recognised as a provision in the year to which they relate, irrespective of when they are declared. Under Ind AS, dividend and related dividend distribution tax are recognised as a liability in the year in which it is approved by the shareholders in the Annual General Meeting of the Company.

2.05 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 33 - EARNINGS PER SHARE (EPS):

EPS is calculated by dividing the profit attributable to the Equity shareholders by the average number of Equity Shares outstanding during the year. Number used for calculating basic and diluted earnings per equity is stated below:

A sum of Rs. Nil (P.Y. Rs.203.06 Lacs ) has been received from DMI through NABARD towards construction of rural godown . The entire grant so received / receivable has been deducted from the respective cost of the Capital Expenditure.

The Company has in-House R & D Centre, The details of revenue/capital expenditure incurred by the R&D Centre during the year are as under :

2.06 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 10:- EVENT AFTERTHE REPORTING PERIOD:

The Board of Directors in its meeting on May 10, 2018 has recommended Equity dividend of 2.30 per share (P.Y Rs.2.10 per share) for the financial year 2017-18.

2.07 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 38:- INTANGIBLE ASSETS:

In accordance with Accounting Standard AS - 38 on ‘Intangible Assets’ during the year ended March 31, 2018 Rs.21.68 Lacs (P.Y. Rs.1.63 Lacs) have been capitalized on account of computer software development charges.

2.08 DURING THE YEAR, THE OFFICERS OF THE DIRECTORATE OF ENFORCEMENT, MINISTRY OF FINANCE, GOVERNMENT OF INDIA VISITED U/S 17 OF THE PM LA 2002, THE PREMISES OF THE COMPANY IN AN ONGOING INVESTIGATION OF SOME MATTERS PERTAINING TO MR. GAUTAM KHAITAN, SOLICITOR AND THE ERSTWHILE INDEPENDENT DIRECTOR OF THE COMPANY FROM JULY 30, 2007 TO APRIL 18, 2013 AND IN THE COURSE OF WHICH STATEMENTS OF SOME DIRECTORS/OFFICERS OF THE COMPANY WERE RECORDED BY THEM. NOTHING INCRIMINATING IN THE AFFAIRS OF THE COMPANY HAS BEEN ALLEGED BY THEM SO FAR AS ON THIS DATE.

2.09 DURING CONSTRUCTION PHASE COMPANIES GENERALLY TEMPORARILY INVEST THE SURPLUS FUNDS TO REDUCE THE COST OF CAPITAL OR FOR OTHER BUSINESS REASONS. HOWEVER SUBSEQUENTLY THE SAME ARE UTLISED FOR THE STATED OBJECTIVE.

2.10 THE FIGURES ARE ROUNDED OFF TO NEAREST RUPEES IN LACS.

2.11 THE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY AND ITS SUBSIDIARIES ARE ENCLOSED SEPARATELY IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD (IND-AS) 110 “CONSOLIDATED FINANCIAL STATEMENTS”.

1.12 PREVIOUS YEARS FIGURES HAVE BEEN REGROUPED/REARRANGED WHEREVER CONSIDERED NECESSARY. HOWEVER, THERE WERE NO MATERIAL IMPACT OF THE SAME.


Mar 31, 2017

b) Terms/ rights attached to ordinary Equity shares

The Company has only one class of Equity Shares having a par value of Re.1 per share. Each holder of Equity Shares is entitled to have one vote per share. The Company declares dividend in Indian Rupees and pays in INR to Resident Shareholders and in USD to the Foreign Shareholders under FDI Catagory.

The Board of Directors of the Company in their meeting held on May 29, 2017, had recommended a final dividend @ 210% i.e. Rs, 2.10 per equity share of face value of Rs, 1/- each for the year ended March 31, 2017 (March 31, 2016- '' 1.90 per share, April 01, 2015 - '' 1.70 per share). The same shall be paid subject to the approval of shareholders in the ensuing Annual General Meeting of the Company.

I n the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

* Due to inter-se promoter group share transfer from Anoop Kumar Gupta to Binita Gupta and Arun Kumar Gupta to Anulika Gupta and also upon receipt of shares pursuant to the Amalgamation of Radha Raj Ispat Private Limited with KRBL Limited, the shareholding of Anulika Gupta and Binita Gupta was increased and both of them became the shareholders holding more than 5% shares in the company as on March 31, 2017.

** Upon receipt of shares pursuant to the Amalgamation of Radha Raj Ispat Private Limited with KRBL Limited, the shareholding of Preeti Mittal was increased and she became the shareholder holding more than 5% shares in the company as on March 31, 2017.

*** Radha Raj Ispat Private Limited was merged with KRBL Limited vide the order of Hon’ble High Court of Delhi dated May 24, 2016. The Scheme was effective w.e.f June 01, 2016.

# Due to interse promoter group share transfer from Anoop Kumar Gupta to Binita Gupta and Arun Kumar Gupta to Anulika Gupta, the shareholding of Anoop Kumar Gupta and Arun Kumar Gupta was reduced and both of them were not part of the catagory of shareholders holding more than 5% shares in the company as on March 31, 2017.

d) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: During the Buy-Back period i.e. March

4, 2013 to February 11, 2014, the Company has Bought Back and Extinguished 7,722,048 Equity Shares at an average price of '' 23.58 per share, utilizing a sum of Rs, 18.21 Crores (Rupees Eighteen Crores Twenty One Lacs) excluding Transaction Cost. Aggregate number of Bonus shares issued in last 5 years immediately preceding the reporting date is Nil.

(b) The Company has classified the various benefits provided to employees as under:

Gratuity: The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India.

Leave Encashment: The Company provides for Leave Encashment for during the year on an arithmetical basis and the same is payable to the employees on separation from the Company due to death, retirement, superannuation or resignation. The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the Balance Sheet date.

Provident Fund: Retirement benefit in the form of provident fund is a defined contribution scheme. All the employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan in which both the employee and the Company contribute monthly at a stipulated rate. Contributions are made to PF in India for employees at the rate of 12% of the basic salary as per the rules and regulations. The Company has no liability for future provident fund benefits other than its annual contribution and recognizes such contributions as an expense in the period in which employee renders the related service. The contributions are made to recognized provident fund administered by the government.

Significant estimates with respect to Defined benefit plans:

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in India.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates in India.

(d) The following tables summaries the components of net benefit expense recognized in the statement of profit or loss and the funded status and amounts recognized in the balance sheet for the respective plans:

Significant Leasing arrangement:

The Company has entered into leasing arrangements in respect of god owns/premises. Further, some lands are also taken on lease for power generation projects at different locations which has been classified as operating lease.

- Basis of determining contingent rent:

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

- Renewal/purchase options & escalation clauses:

-Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the less or.

- There are no restrictions imposed by the lease arrangements, concerning dividend and additional debt.

Note:

* The matter was decided in favour of company by the Hon’ble VAT Tribunal, Punjab and the amount paid against this liability ('' 226.37 Lacs) was refunded to the company on May 15, 2017. However, Punjab VAT Department has gone into appeal with Hon’ble High Court of Punjab and Haryana against the said order of VAT Tribunal.

** The appeal is pending before Hon’ble Deputy Excise and Taxation Commissioner (DETC), Punjab. As per the legal opinion the demand created by VAT department is arbitrary and the matter will be decided in favour of company.

31.04 . DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 24: RELATED PARTY DISCLOSURES NATURE OF RELATIONSHIP AND TRANSACTION WITH RELATED PARTIES: 1 Related Parties and their Relationship:

a) Subsidiary Company : KRBL DMCC

: K B Exports Private Limited

b) Key Management Personnel:

Mr. Anil Kumar Mittal : Chairman & Managing Director

Mr. Arun Kumar Gupta : Joint Managing Director

Mr. Anoop Kumar Gupta : Joint Managing Director

Ms. Priyanka Mittal : Whole Time Director

Mr. Ashok Chand : Whole Time Director

Mr. Rakesh Mehrotra : Chief Financial Officer

Mr. Raman Sapra : Company Secretary

c) Independent Non-Executive Directors:

Mr. Vinod Ahuja : Independent Non Executive Director

Mr. Ashwani Dua : Independent Non Executive Director

Mr. Shyam Arora : Independent Non Executive Director

Mr. Devendra Kumar Aggawal : Independent Non Executive Director

Mr. Alok Sabharwal : Additional Director, Independent Non Executive

d) Employee benefit plans where there in significant influence:

KRBL Limited Employees Group Gratuity Trust

e) Relatives of Key Management Personnel:

Mrs. Preeti Mittal : Wife of Mr. Anil Kumar Mittal

Mrs. Anulika Gupta : Wife of Mr. Arun Kumar Gupta

Mrs. Binita Gupta : Wife of Mr. Anoop Kumar Gupta

Mr. Ashish Mittal : Son of Mr. Anil Kumar Mittal

Mrs. Sonali Gupta : Wife of Mr. Ashish Mittal

Mrs. Neha Gupta : Daughter of Mr. Arun Kumar Gupta

Mr. Kunal Gupta : Son of Mr. Arun Kumar Gupta

Mrs. Avantika Gupta : Wife of Mr. Kunal Gupta

Mrs. Rashi Gupta : Daughter of Mr. Anoop Kumar Gupta

Mr. Akshay Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Anushree Gupta : Wife of Mr. Akshay Gupta

Mr. Ayush Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Sanchi Jain : Wife of Mr. Ayush Gupta

Anil Kumar Mittal HUF : Mr. Anil Kumar Mittal is Karta of HUF

Arun Kumar Gupta HUF : Mr. Arun Kumar Gupta is Karta of HUF

Anoop Kumar Gupta HUF : Mr. Anoop Kumar Gupta is Karta of HUF

Bhagirath Lal Gupta HUF : Mr. Anil Kumar Mittal is Karta of HUF

BanwariLal Bhagirath Lal HUF : Mr. Anil Kumar Mittal is Karta of HUF

f) Enterprises over which key management personnel are able to exercise significant influence:

Khushi Ram Behari Lal : Partnership Firm in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr.

Anoop K. Gupta are Partners.

Aakash Hospitality Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta

& Mr. Anoop K. Gupta are Directors.

Anurup Exports Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta

& Mr. Anoop K. Gupta are Directors.

Adwet Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta

& Mr. Anoop K. Gupta are Directors.

Holistic Farms Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta

& Mr. Anoop K. Gupta are Directors.

India Gate Foods Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta

& Mr. Anoop K. Gupta, Ms. Priyanka Mittal and Mr. Kunal Gupta and Mr. Ashish Mittal are Directors.

KRBL Foods Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors.

Radha Raj Logistics Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta &

Mr. Anoop K. Gupta are Directors.

Radha Raj Infrastructure Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta, Mr. Anoop K. Gupta, Mr. Ashwani Dua, Mr. Manav Dua and Mr. Balbir Kapoor are Directors.

Padmahasta Warehousing Pvt. Ltd. : Private Limited Company in Which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

KRBL Infrastructure Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors.

Radha Raj I T City & Parks Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K.

Gupta & Mr. Anoop K. Gupta are Directors.

Solid Infradevelopers Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta &

Mr. Anoop K. Gupta and Mr. Sanjeev Gupta are Directors.

g) Trust/Society over which key management personnel are able to exercise significant influence:

Seth Banwari Lal Charitable Trust : Trust in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Seth Khushi Ram Charitable Trust : Trust in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Seth Banwari Lal Education Society : Society in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Trustees.

Anil Kumar Mittal Children Welfare Trust : Trust in which Mr. Arun K. Gupta & Mr. Anoop K. Gupta are trustees.

Arun Kumar Gupta Children Welfare Trust : Trust in which Mr. Anil K. Mittal & Mr. Anoop K. Gupta are trustees.

Anoop Kumar Gupta Children Welfare Trust : Trust in which Mr. Anil K. Mittal & Mr. Arun K. Gupta are trustees.

Anil Mittal Family Trust : Trust in which Mr. Anil Kumar Mittal and Mrs. Preeti Mittal are trustees.

Anoop Kumar Gupta Family Trust : Trust in which Mr. Anoop Kumar Gupta, Mr. Akshay Gupta and Mr.

Ayush Gupta are trustees.

Arun Kumar Gupta Family Trust : Trust in which Mr. Arun Kumar Gupta and Mr. Kunal Gupta are

trustees.

Anulika Gupta Family Trust : Trust in which Mr. Arun Kumar Gupta and Mrs. Anulika Gupta are

trustees.

Binita Gupta Family Trust : Trust in which Mr. Anoop Kumar Gupta and Mrs. Binita Gupta are

trustees.

1. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 108: OPERATING SEGMENTS Segmental Reporting:

For management purposes, the Company is organized into business units based on its products and services and has two reportable segments, as follows:

- Agri - Comprises of agricultural commodities such as rice, Furfural, seed, bran, bran oil, etc.

- Energy - Comprises of power generation from wind turbine, husk based power plant & solar power plant.

No operating segment have been aggregated to form the above reportable operating segments.

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

2. DISCLOSURE IN RESPECT OF FINANCIAL RISK MANAGEMENT:

1 Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including cash and cash equivalents and deposits with banks and financial institutions.

Credit risk management: i) Trade receivable related credit risk

Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large and diverse. All trade receivables are reviewed and assessed for default on routine basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low and so trade receivables are considered to be a single class of financial assets.

ii) Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, money market liquid mutual funds with financial institutions and derivative financial instruments. The Company’s maximum exposure to credit risk as at March 31, 2017, March 31, 2016 and April 01, 2015 is the carrying value of each class of financial assets.

iii) Treasury related credit risk

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. The Company actively manages its exposure to credit risk, reducing surplus cash balances wherever possible through investment in bank deposits. Further, the company ensures it diversifies its treasury related credit risk by investing in bank deposits in different banks. Limits are set for maximum investment in deposits in each bank.

3. Liquidity Risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

A Maturities of financial liabilities

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.

4 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 21: THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES:

Potential Impact of Risk:

A) Currency Risk

The Company operates internationally and consequently the Company is exposed to foreign exchange risk through its sales in overseas market. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows policies which includes the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

The Company has Outstanding Forward contracts as on March 31, 2017 and there is Marked to Market (MTM) unrealized gain/(loss) on forward contracts of '' Nil as at March 31, 2017, (March 31, 2016- Rs, 1.22 Lacs, April 01, 2015 - Rs, 80.86 Lacs), which has been accounted for accordingly in the books of accounts.

Apart from above Company has foreign currency Liability (PCFC/Advances received from customers/ECB) of Rs, 30,380.79 Lacs as at March 31, 2017, (March 31, 2016- Rs, 35,704.45 Lacs, April 01, 2015- Rs, 74,105.46 Lacs) at the year end, further as per the Ind AS the effect of change in foreign exchange gain/(loss) as on March 31,2017, is amounting to Rs, (109.56 Lacs) {(March 31, 2016- Rs, (305.19) April 01, 2015- Rs, (32.46 Lacs)}has been taken to statement of profit and loss.

B) Interest Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at March 31, 2017, the Company had long term borrowings amounting to Rs, 12,502.00 Lacs (March 31, 2016: Rs, 27,606.06 Lacs and April 01, 2015: Rs, 31,430.25 Lacs)

Sensitivity is calculated based on the assumption that amount outstanding as at reporting dates (after considering repayments) were utilized for the whole financial year.

C) Price Risk

The Company is mainly exposed to the price risk due to its investment in equity shares and mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

The table below summarizes the impact of increases/decreases of the index on the Company’s equity and profit for the year. The analysis is based on the assumption that the index has increased by 5% or decreased by 5% with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

31.07. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 113: FAIR VALUE MEASUREMENT: Significant estimates with respect to fair value of financial instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the present valuation technique. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

B Fair value hierarchy

This section explains the judgments and estimates made in determining the fair value of financial instruments that are (a) recognized and measured at fair value (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three level prescribed under the accounting standard. An explanation each level follows underneath the table.

Assets and liabilities measured at amortized cost, for which fair value are disclosed

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers among levels 1, 2 and 3 during the year.

The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include the use of discount cash flows for estimating fair value of loans to employees, security deposits and borrowings.

The carrying amounts of trade receivables, cash and cash equivalents, consignment debtors, interest accrued, other receivables, other bank balances, trade payables, employee payables and other current payables are considered to be the same as fair values, due to their short term nature

The fair value for loans and security deposits were calculated based on cash flow discounted using a current lending rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of loans to employees and security deposits approximates the carrying amount

The fair value for borrowings was calculated based on cash flow discounted using a current borrowing rate. They are classified as level 3 fair value in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk. The fair value of borrowings approximates the carrying amount.

31.08. DISCLOSURE IN RESPECT OF CAPITAL MANAGEMENT:

A Risk management

Equity share capital and other equity are considered for the purpose of Company’s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management’s judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the level of dividend to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

B Dividend

Under Previous GAAP, proposed dividend and related dividend distribution tax was recognized as a provision in the year to which they relate, irrespective of when they are declared. Under Ind AS, dividend and related dividend distribution tax are recognized as a liability in the year in which it is approved by the shareholders in the Annual General Meeting of the Company.

31.10. TRANSITION TO IND AS - RECONCILIATIONS:

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

A Property, plant & equipment

Under previous GAAP, all leasehold lands are classified as Property, plant & equipment. Under Ind AS, leasehold land is to be recognized as an Operating or a Finance lease as per the definition and classification criteria under Ind AS 17. Accordingly deemed cost of the leasehold land is required to be reclassified from property plant and equipment and to be disclosed as operating leases prepayments under “current assets” and “non-current assets” to be amortized annually. Therefore, Property, plant & equipment has been reduced by Rs, 600.44 lacs (April 01, 2015- Rs, 628.74 lacs) and Prepayments have increased by the same amount.

Depreciation has decreased by Rs, 28.29 lacs and lease expenses have increased by the same amount.

B Investment property

Under previous GAAP, building given for the purpose of earning rental income was a part of property, plant & equipment, however as per Ind AS, the same needs to be disclosed as a part of investment property. Hence, warehouse at Kandla has been reclassified from Property, plant & equipment to Investment property Rs, 446.39 lacs (April 01, 2015-464.28 lacs).

C Discounting of security deposit

Under the previous GAAP, interest free security deposits are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the security deposits under IND AS. Difference between fair value of security deposits and the carrying value (transaction value) as per Previous GAAP has been recognized as prepaid rent. Consequently, the amount of security deposit has been decreased by Rs, 808.65 lacs (April 01, 2015 - Rs, 824.42 lacs). The prepaid rent increased by Rs, 705 lacs as at March 31, 2016 (April 01, 2015- Rs, 747 lacs). Total equity decreased by Rs, 77.42 lacs as at April 01, 2015. The profit for the year ended March 31, 2016 decreased by Rs, 24.90 due to amortisation of prepaid rent Rs, 41.07 lacs which is partially set off by notional interest income of Rs, 16.17 lacs recognized on these security deposits.

D Fair valuation of Investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as longterm investments or current investments based on the intended holding period and realisability. Longterm investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. At the date of transition to Ind AS, difference between the fair value of the instruments and its Previous GAAP carrying amount has been recognized in retained earnings for Rs, 157.63 lacs. Fair value changes are recognized in the Statement of Profit and Loss for the year ended March 31, 2016 (Rs, 91.26 lacs)

E Derivative instruments

Under the Ind AS 109, Forward Contracts are carried at fair value and the resultant gains and losses are recorded in the statement of Profit and Loss. Accordingly, the same has been fair valued resulting in increase of in equity by Rs, 1,379.02 lacs as at March 31, 2016 (increase 602.71 lacs as at April 01, 2015). Derivative assets and derivative liabilities are presented on gross basis.

F Proposed dividend

Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events and accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividend are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs, 4,001.26 lacs as at April 01, 2015 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount.

G Borrowings

As required under the Ind AS 109 transactions costs incurred towards origination of borrowings have been deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit and loss over the tenure of the borrowing as interest expense, computed using the effective interest rate method corresponding effect being in Long term borrowings and to the extent attributable to Current maturity of long term debts.

Under the previous GAAP, these transaction costs were charged to the profit and loss as and when incurred. As per Ind AS 32 and Ind AS 109, a debt instruments are required to be fair valued. Accordingly, debt instruments in foreign currency (external commercial borrowings) were restated at the balance sheet date, resulting in increase in borrowings.

The net impact of above resulted in decrease in amount of borrowings by Rs, 144.18 lacs as at March 31, 2016. However, the impact as at April 01, 2015 was increase in borrowings by Rs, 843.51 lacs) with corresponding impact on equity as at April 01, 2015.

I ncrease in interest on borrowings due to effective interest rate method is Rs, 82.14 lacs for the year ended March 31, 2016.

H Remeasurements of post employment benefit obligation

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increase by '' 100.89 lacs along with tax amounting to '' 35 lacs. There is no impact on the total equity as at March 31, 2016.

I Retained earnings

Retained earnings as at April 01, 2015 has been adjusted consequent to the above Ind AS transition adjustments. Refer Reconciliation of Equity on note no. 31.10 (iv).

J Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in statement of profit and loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

K Deferred Tax

Under Previous GAAP, deferred taxes were recognized for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognized using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or through other comprehensive income.

L Excise duty

Under Previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of Statement of Profit and Loss. Thus, sale of goods under Ind AS has increased with a corresponding increase in expenses of Rs, 87.16 lacs.

M Revenue from sale of goods

a) Under Previous GAAP, revenue is recognized net of trade discounts, rebates, sales taxes and excise duties. Under Ind AS, revenue is recognized at the fair value of the consideration received or receivable, after the deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales tax and value added tax except excise duty. Discounts given include cash coup scheme, quantity discount, cash discount, target incentives etc. which have been classified under “Other expenses” as per previous GAAP have been netted from revenue under Ind AS. Accordingly, Gross revenue has decreased by Rs, 3,034.11 lacs with corresponding effect on “Other expense”. There is no impact on profit for the year.

b) Under previous GAAP, revenue from export sale was recognized on the date of bill of lading. However, under Ind AS, the Company is recognizing the revenue from export sale when all the significant risk and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract. Hence, some export sales were derecognized as at April 01, 2015. The net impact resulted in decrease in retained earnings by Rs,1,004.63 lacs increase in trade receivables by Rs, 11,582.67 lacs, increase in inventories by Rs, 10,110 lacs and in prepayments by Rs, 472.45 lacs.

As at March 31, 2016, sales derecognized in 2015 were now recognized and hence, as at March 31, 2016, net impact resulted in decreased trade receivables by Rs, 9,913.81 lacs and increase in inventories by Rs, 5,141.88 lacs.

N Financial assets and liabilities have been reclassified/regrouped wherever necessary according to their definitions.

O Current tax liability has been disclosed on the face of balance sheet by reclassifying it from Provisions.

P Staff welfare expenses have been reclassified to “Employee benefit expenses” from “Other expenses” as the nature of such expenses is related to employee welfare.

Q Certain assets amounting to Rs, 694.30 lacs have been considered as not recoverable, therefore company has made a provision of the aforesaid amount as per Expected Credit Loss (ECL) model.

R The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended March 31, 2016 as compared with the previous GAAP.

* For the purpose of this clause ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.

The disclosures with respects to ‘Permitted Receipts’, ‘Permitted Payments’, ‘Amount Deposited in Banks’ and ‘Closing Cash in Hand as on December 30, 2016, is understood to be applicable in case of SBNs only.

4. DISCLOSURE IN RESPECT OF SUBSIDY RECEIVED/RECEIVABLE:

A sum of Rs, 203.06 Lacs (P.Y. Rs, 52.11 Lacs) has been received from DMI through NABARD towards construction of rural go down and a sum of Rs, Nil (P.Y. Rs, 203.06 Lacs) is receivable from DMI through NABARD towards construction of rural go down. The entire grant so received / receivable has been deducted from the respective cost of the Capital Expenditure.

5. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 10: EVENT AFTER THE REPORTING PERIOD:

The Board of Directors has recommended Equity dividend of 2.10 per share (Previous year Rs, 1.90 per share) for the financial year 2016-17.

6. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 38: INTANGIBLE ASSETS:

I n accordance with Accounting Standard AS - 38 on Rs,Intangible Assets’, during the year ended March 31, 2017 '' 1.63 Lacs (March 31, 2016 - Rs, 25.17 Lacs, April 01, 2015 - Rs, 53.17 Lacs) have been capitalized account of computer software development charges.

7. DURING CONSTRUCTION PHASE COMPANIES GENERALLY TEMPORARILY INVEST THE SURPLUS FUNDS TO REDUCE THE COST OF CAPITAL OR FOR OTHER BUSINESS REASONS. HOWEVER SUBSEQUENTLY THE SAME ARE UTLISED FOR THE STATED OBJECTIVE.

8. THE FIGURES ARE ROUNDED OFF TO NEAREST RUPEES IN LACS.

9. THE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY AND ITS SUBSIDIARIES ARE ENCLOSED SEPARATELY IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD (IND-AS) 110 “CONSOLIDATED FINANCIAL STATEMENTS”.


Mar 31, 2016

b) Terms/ rights attached to ordinary Equity shares

The Company has only one class of Equity Shares having a par value of Rs,1 per share. Each holder of Equity Shares is entitled to be vote per share. The Company declares dividend in Indian Rupees and pays in INR to Resident Shareholders and in USD to the Foreign Shareholders under FDI category.

During the year ended March 31, 2016, the amount of per share dividend recognized as distributions to equity shareholders is Rs,1.90 per share (P.Y : Rs,1.70 per share).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

* Radha Raj Ispat Private Limited is in the process for being merged with KRBL Limited vide the order of Hon’ble High Court of Delhi dated May 24, 2016. The Scheme will be effective after filing of the High Court order with the Registrar of Companies, NCT of Delhi & Haryana, New Delhi.

d) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: During the Buy-Back period i.e. March 4, 2013 to February 11, 2014, the Company has Bought Back and Extinguished 77,22,048 Equity Shares at an average price of Rs,23.58 per share, utilizing a sum of Rs,18.21 Crores (Rupees Eighteen Crores Twenty One Lacs) excluding Transaction Cost. Aggregate number of Bonus shares issued in last 5 years immediately preceding the reporting date is Nil

# Secured by first pari-passu charge on entire movable and immovable Fixed Assets of the Company and second pari-passu charge on entire current assets of the Company.

- There is no default in repayment of any of the above loan.

# Adjustment of Rs,Nil (P.Y. Rs,92.47 Lacs) on account of implementation of Schedule II of Companies Act 2013.

# Working capital facilities (fund based & non fund based limits) are secured by first pari-passu charge on the entire current assets of the Company. These facilities are further secured by the second pari-passu charge on entire moveable & immoveable fixed assets of the Company and personal guarantee of Promoter Directors of the Company.

- There is no default in repayment of Principal Loan or Interest thereon.

1. Creditors for Others are due in respect of goods purchases or services received in the normal course of business.

2. Based on information available with the company there are no overdue amount payable to Micro, Small and Medium Enterprises, as defined in The Micro, Small and Medium Enterprises Development Act, 2006. This has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the Auditors.

# There are no amount due & outstanding to be credited to the Investor Education & Protection Fund

Notes

1) None of the Fixed Assets has been revalued during the year.

2) Addition to fixed Assets and Capital work-in-progress include net borrowing cost capitalized during the year Rs, 427.32 Lacs (P.Y. Rs, 497.41 Lacs).

3) There has been no impairment loss on Assets during the year.

4) Pursuant to the enactment of Companies Act, 2013, the company in the previous year has applied the estimated useful lives as specified in Schedule II of the Companies Act, 2013, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortization and Depletion. Accordingly the unamortized carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Nil (P.Y. Rs, 272.06 Lacs) on Fixed Assets whose lives have expired as at April 1, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs, Nil (P.Y. Rs, 179.59 Lacs).

1 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Accounting Standard AS-5 on “Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies”.

2. Intangible Assets:

In accordance with Accounting Standard AS - 26 on ‘Intangible Assets’, Rs,25.18 Lacs (P.Y.Rs,53.17 Lacs) have been capitalized on account of computer software development charge.

3. Corporate Dividend Tax:

In view of the amended provision of Section 115-O(IA)(i) of the Income Tax Act,1961, no provision of Corporate Dividend Tax has been made in the books of accounts as the Company has set-off declared Foreign Dividend from its Subsidiary Company against declare Dividend.

4. Earnings per Share (EPS):

EPS is calculated by dividing the profit attributable to the Equity shareholders by the average number of Equity Shares outstanding during the year. Number used for calculating basic and diluted earnings per equity is stated below:

C ) Significant Leasing arrangement:

- The Company’s significant leasing arrangements are in respect of operating lease taken for premises/god owns.

- The Company does not have any assets given on operating lease during the reporting period.

(i) Basis of determining contingent rent:

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

(ii) Renewal/purchase options & escalation clauses:

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the less or.

(iii)There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

a) The business groups comprise of the following:

- Agri - Agri commodities such as rice, Furfural, seed, bran, bran oil, etc.

- Energy - Power generation from wind turbine, husk based power plant & solar power plant.

b) The Geographical segments considered the following disclosures:

- Sales within India

- Sales outside India

a) Middle East

b) Other than Middle East

5. Related Party Disclosures Accounting Standard AS-18:

A) Related parties and their relationship :

1) Subsidiary Company : KRBL DMCC

: K B Exports Pvt. Ltd.

2) Key Management Personnel :

Mr. Anil Kumar Mittal : Chairman & Managing Director

Mr. Arun Kumar Gupta : Joint Managing Director

Mr. Anoop Kumar Gupta : Joint Managing Director

Mr. Ashok Chand : Whole Time Director

Ms. Priyanka Mittal : Whole Time Director

Mr. Rakesh Mehrotra : Chief Financial Officer

Mr. Raman Sapra : Company Secretary

3) Independent Non-Executive Directors :

Mr. Ashwani Dua : Non Executive & Independent Director

Mr. Devendra Kumar Agarwal : Non Executive & Independent Director

Mr. Shyam Arora : Non Executive & Independent Director

Mr. Vinod Ahuja : Non Executive & Independent Director

4) Employee benefit plans where there in significant influence :

KRBL Limited Employees Group Gratuity Trust

5) Relatives of Key Management Personnel :

Mrs. Preeti Mittal : Wife of Mr. Anil Kumar Mittal

Mrs. Anulika Gupta : Wife of Mr. Arun Kumar Gupta

Mrs. Binita Gupta : Wife of Mr. Anoop Kumar Gupta

Mr. Ashish Mittal : Son of Mr. Anil Kumar Mittal

Mrs. Neha Gupta : Daughter of Mr. Arun Kumar Gupta

Mr. Kunal Gupta : Son of Mr. Arun Kumar Gupta

Mrs. Avantika Gupta : Wife of Mr. Kunal Gupta

Mrs. Rashi Gupta : Daughter of Mr. Anoop Kumar Gupta

Mr. Akshay Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Anushree Gupta : Wife of Mr. Akshay Gupta

Mr. Ayush Gupta : Son of Mr. Anoop Kumar Gupta

Mrs. Sanchi Jain : Wife of Mr. Ayush Gupta

Anil Kumar Mittal HUF : Mr. Anil Kumar Mittal is Karta of HUF

Arun Kumar Gupta HUF : Mr. Arun Kumar Gupta is Karta of HUF

Anoop Kumar Gupta HUF : Mr. Anoop Kumar Gupta is Karta of HUF

Bhagirath Lal Gupta HUF : Mr. Anil Kumar Mittal is Karta of HUF

Banwari Lal Bhagirath Lal HUF : Mr. Anil Kumar Mittal is Karta of HUF

6) Enterprises over which key management personnel are able to exercise significant influence :

Khushi Ram Behari Lal : Partnership Firm in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are

Partners

KRBL Foods Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors

KRBL Infrastructure Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

Gupta, Mrs. Preeti Mittal, Mrs. Anulika Gupta & Mrs. Binita Gupta are Directors

Aakash Hospitality Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Adwet Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Anurup Exports Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Holistic Farms Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

India Gate Foods Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

(Formerly K B Foods Pvt Ltd.) Gupta, Ms. Priyanka Mittal, Mr. Ashish Mittal & Mr. Kunal Gupta are Directors.

Padmahasta Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Radha Raj Ispat Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

Gupta, Mrs. Anulika Gupta, Mrs. Binita Gupta & Ms. Priyanka Mittal are Directors

Radha Raj Infrastructure Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

Gupta, Mr. Ashwani Dua, Mr. Manav Dua & Mr. Balbir Kapoor are Directors

Radha Raj IT City & Parks Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Radha Raj Logistics Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K.

Gupta are Directors

Solid Infradevelopers Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K.

Gupta & Mr. Sanjeev Gupta are Directors

Notes: (1) Amount written off or written back in respect of dues from or to related parties is Rs,Nil (P.Y. Rs,Nil)

(2) Loan & Advances (without repayment schedule) given to subsidiary i.e. KRBL DMCC , Dubai and K B Exports Private Limited, which is outstanding as on March 31,2016 Rs,Nil (P.Y. Rs,Nil). Maximum outstanding balance during the Year Rs,Nil (P.Y. Rs,Nil) as interest free loan.

6 Employee Benefits Accounting Standard AS-15 (Revised):

a) The Company has determined the liability for Employee benefits as at March 31, 2016 in accordance with revised Accounting Standard AS-15 issued by ICAI - Employee defined benefits.

c) Gratuity is administered by an approved gratuity fund trust

d) Amount recognized as an expense in respect of defined benefits plan as under :

7. Change in Accounting Practice:

The Company has adopted component accounting as required under Schedule II to the Companies Act, 2013, from April 1, 2015. Now, the company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is significant to the total cost of the asset having useful life that is materially different from that of the remaining asset. These components are depreciated over their useful lives; the remaining asset is depreciated over the life of the principal asset.

There is no material impact on account of change of the aforesaid accounting policy on the financial statements of the Company.

8. As required under Accounting Standard AS-11 the Company has Outstanding Forward contracts as on March 31, 2016 and there is Marked to Market (MTM) unrealized gain/(loss) on forward contracts of Rs,1.22 Lacs (P.Y. Rs,80.86 Lacs), which has been accounted for accordingly in the books of accounts.

Apart from above Company has foreign currency Liability (PCFC/Advances received from customers/ECB) of Rs,35,704.45 Lacs (P.Y. Rs,74,105.46 Lacs) at the year end and as per Accounting Standard AS-11 the effect of change in foreign exchange gain/(loss) as on March 31,2016 amounting to Rs,(305.19 Lacs) {P.Y. Rs,(32.46 Lacs)} has been taken to profit & loss account.

9. During construction phase, company temporarily invest its surplus funds out of the term loan availed to reduce the cost of capital or for other business ns. However subsequently the same are utilized for the stated objective.

10. The company has reclassified and regrouped previous year figure wherever considered necessary.

11. The figures are rounded off to nearest rupees in Lacs.

12. The Consolidated Financial Statements of the company and its subsidiaries are enclosed separately in accordance with Accounting Standard AS-21 “Consolidated Financial Statements”

For the purpose of considering the limit of the committees on which a directors can serve, all public limited companies, whether listed or not, are considered. Further Committees considered for the purpose are those prescribed under explanation to Regulation 26(1)(b) of the SEBI Listing Regulations viz. Audit Committee and Stakeholders Relationship Committee of Indian public limited companies including KRBL Limited


Mar 31, 2015

1. other notes Forming part of the Financial Statements

1.1 Contingent liabilities not provided for in respect of:

(Rs,in Lacs)

particulars year ended year ended march 31, 2015 march 31, 2014

(i) Claims against the Company not acknow- ledged as debts

(a) Liability relating to Bank Guarantee 1,189.28 369.57

(b) Liability relating to Bills Discounted with Scheduled Banks - 909.68

(c) Disputed liability in respect of Income Tax Demand in appeal 5.86 3.41

- Amount paid against disputed Income Tax appeal as Rs.Nil (P.Y. Rs,Nil)

(d) Disputed liability relating to Sales Tax / VAT 8.63 31.07

- Amount paid against disputed Sales Tax / VAT appeal as Rs,8.63 Lacs (P.Y.Rs,27.32 Lacs)

(e) Disputed purchase tax liability on paddy purchased in the course of exports* 905.49 905.49

- Amount paid against disputed purchase tax liability under appeal Rs,226.37 Lacs (P.Y. Rs,226.37 Lacs)

(f) Disputed liability relating to Market Fees (Fazilka, Punjab) - 15.09

- Amount paid against disputed Market Fees is Rs,5.25 Lacs (P.Y. Rs,3.86 Lacs)

(g) Others 28.24 50.08

- Amount paid against other disputed liabilities is Rs,Nil (P.Y. Nil)

total 2,137.50 2,284.39

* Note: Te appeal is pending before Hon''ble VAT Tribunal, Punjab. As per the legal opinion the demand created by VAT department is arbitrary and the matter will be discussed in favour of company.

2. brief information on the treatment of amount Received on Forfeited Shares:

Subsequent to Introduction of Schedule III of Companies Act, 2013, the amount of Rs. 4.29 Lacs originally received against forfeited shares, earlier shown as addition to paid-up capital and now has been transferred to General Reserve.

3. Tere is no prior period item, which is considered material for the purpose of disclosure in accordance with the accounting Standard aS-5 on "net profit or loss for the period, prior period items and changes in accounting policies".

4. intangible assets:

In accordance with Accounting Standard AS-26 on ''Intangible Assets'', Rs. 53.17 Lacs (P.Y. Rs. Nil) have been capitalized on account of computer software development charge.

5. Corporate dividend tax:

In view of the amended provision of Section 115-O(IA)(i) of the Income Tax Act,1961, no provision of Corporate Dividend Tax has been made in the books of accounts as the Company has set-of declared Foreign Dividend from its Subsidiary Company against declare Dividend.

C) Significant leasing arrangement:

Te Company has entered into leasing arrangements in respect of god owns / premises.

(i) basis of determining contingent rent:

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump-sum amount, as agreed between the parties.

(ii) Renewal / purchase options & escalation clauses:

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor.

(iii) There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

6. Change in accounting practice:

Following change in assumption of lifespan of fixed Assets under Schedule II of Companies Act, 2013, over age Fixed Assets have been reduced to their residual with consequent reduction amounting to Rs. 272.06 Lacs (Net of Rs. 92.47 Lacs towards deferred impact thereon) has been charged to surplus under "Reserve and Surplus" head in Balance Sheet. In addition to above, remaining items of fixed assets have been subjected to depreciation charge at rates which reduce them to their values subjected to depreciation charge at rates which reduce them to their residual values under their revised lifespan.

7. during Construction phase Companies generally temporarily invest the surplus funds to reduce the cost of capital or for other business reasons. however subsequently the same are utilized for the stated objective. during the year surplus funds (if any) out of the term loans availed by KRbl limited are temporarily invested in bank For''s but were ultimately utilized for the stated end use.

8. Te company has reclassified and regrouped previous year figure wherever considered necessary.

9. Te figures are rounded of to nearest rupees in lacs.

11. Te Consolidated Financial Statements of the company and its subsidiary, are enclosed separately in accordance with accounting Standard aS-21 "Consolidated Financial Statements".


Mar 31, 2014

1. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS

1.01 Contingent liabilities not provided for in respect of:

(Rs. in Lacs) Particulars Year Ended Year Ended March 31, 2014 March 31, 2013

(i) Claims against the Company not acknowledged as debts

(a) Liability relating to Bank Guarantee 369.57 133.90

(b) Liability relating to Bills Discounted with Scheduled Banks 909.68 -

(c) Disputed liability in respect of Income Ta x Demand in appeal 3.41 26.25 -Amount paid against disputed Income Ta x appeal as Rs.Nil (P.Y.Rs.17.93 Lacs)

(d) Disputed liability relating to Sales Tax/VAT 31.07 23.75 -Amount paid against disputed Sales Tax/VAT appeal as Rs.27.32 Lacs (P.Y. Rs.20.00 Lacs)

(e) Disputed purchase tax liability on paddy purchased in the course of exports* 905.49 - -Amount paid against disputed purchase tax liability under appeal Rs. 226.37 Lacs (P.Y. Rs.Nil)

(f) Disputed liability relating to Market Fees(Fazilka, Punjab) 15.09 15.09 -Amount paid against disputed Market Fees is Rs.Nil (P.Y. Rs.1.37Lacs)

(g) Others 50.08 50.08 -Amount paid against other disputed liabilities is Rs.Nil (P.Y Rs.Nil)

Total 2,284.39 249.07

*Note:- The appeal is pending before Hon''ble VAT Tribunal, Punjab. As per the legal opinion the demand created by VAT department is arbitrary and the matter will be discussed in favour of company.

2.02 Brief Information on Shares Bought-back:

Pursuant to the resolution passed by the Board of Directors of the Company and in accordance with the provisions of the Companies Act, 1956 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998, the Company made a Public Announcement on February, 14, 2013, to Buy-back the Equity Shares having Face Value of Rs.1 each of the Company from open market through stock exchange route at a price not exceeding Rs.35 per share, agreegating to Rs.35 Crores.

During the Buy-back period i.e. March 4, 2013 to February 11, 2014, the Company has Bought-back and Extinguished 77,22,048 Equity Shares at an average price of Rs.23.58 per share, utilising a sum of Rs.18.21 Crores (Rupees Eighteen Crores Twenty one Lacs) excluding Transaction Cost. The amount paid towards Buy-back of Equity Shares, in excess of the face value, has been utilised out of Free Reserve.

2.03 In the opinion of the Board and to the best of their knowledge and belief, the valuation on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

2.04 Value of raw materials, including packaging materials, spare parts and components consumed during the year:

2.05 A sum of Rs.30 .95 Lacs (P.Y. Rs.64.69 Lacs) has been received from DMI through NABARD towards construction of rural godown and a sum of Rs.104.00 Lacs (P.Y. Rs.30.95 Lacs) is receivable from DMI through NABARD towards construction of rural godown. The entire grant so received / receivable has been deducted from the respective cost of the Capital Expenditure.

2.06 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Accounting Standard AS-5 on "Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies".

2.7 Intangible Assets:

In accordance with Accounting Standard AS-26 on ''Intangible Assets'', Rs.NIL (P.Y. Rs.9.14 Lacs) have been capitalized on account of computer software development charges.

2.8 Corporate Dividend Tax:

In view of the amended provision of Section 115-0(IA)(i) of the Income Tax Act,1961, no provision of Corporate Dividend Tax has been made in the books of accounts as the Company has set-of declared Foreign Dividend from its Subsidiary Company against declare Dividend.

C) significant Leasing arrangement:

The Company has entered into leasing arrangements in respect of godowns/premises.

(i) Basis of determining contingent rent:

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially afecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

(ii) Renewal/purchase options & escalation clauses:

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor.

(iii) There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

a) The business groups comprise of the following:

- Agri - Agri commodities such as rice, Furfural, seed, bran, bran oil, etc.

- Energy - Power generation from wind turbine, husk based power plant & solar power plant.

b) The Geographical segments considered the following disclosures:

- Sales within India

- Sales outside India

a) Middle East

b) Other than Middle East

29.22 Related Party Disclosures Accounting Standard AS-18: A) Related parties and their relationship:

1) Subsidiary Company : KRBL DMCC

: K B Exports Private Limited

2) Key Managerial Persons

Mr. Anil Kumar Mittal : Chairman & Managing Director

Mr. Arun Kumar Gupta : Joint Managing Director

Mr. Anoop Kumar Gupta : Joint Managing Director

Ms. Priyanka Mittal : Whole Time Director

Mr. Ashok Chand : Whole Time Director

Dr. Narpinder Kumar Gupta : Non Executive & Independent Director

Mr. Vinod Ahuja : Non Executive & Independent Director

Mr. Ashwani Dua : Non Executive & Independent Director

Mr. Shyam Arora : Non Executive & Independent Director

Mr. Devendra Kumar Agarwal : Non-Executive & Independent Director

Mr. Rakesh Mehrotra : Chief Financial Officer

Mr. Raman Sapra : Company Secretary

3) Employee benefit plans where there in significant infuence:

KRBL LIMITED Employees Group Gratuity Trust:

4) Relatives of Key Managerial Persons:

Mrs. Preeti Mittal : Wife of Mr. Anil Kumar Mittal

Mrs. Anulika Gupta : Wife of Mr. Arun Kumar Gupta

Mrs. Binita Gupta : Wife of Mr. Anoop Kumar Gupta

Mr. Ashish Mittal : Son of Mr. Anil Kumar Mittal

Mrs. Neha Gupta : Daughter of Mr. Arun Kumar Gupta

Ms. Rashi Gupta : Daughter of Mr. Anoop Kumar Gupta

Mr. Kunal Gupta : Son of Mr. Arun Kumar Gupta

Mrs. Avantika Gupta : Wife of Mr. Kunal Gupta

Mr. Akshay Gupta : Son of Mr. Anoop Kumar Gupta

Mr. Ayush Gupta : Son of Mr. Anoop Kumar Gupta

Anil Kumar Mittal HUF : Mr. Anil Kumar Mittal is Karta of HUF

Arun Kumar Gupta HUF : Mr. Arun Kumar Gupta is Karta of HUF

Anoop Kumar Gupta HUF : Mr. Anoop Kumar Gupta is Karta of HUF

Bhagirath Lal Gupta HUF : Mr. Anil Kumar Mittal is Karta of HUF

5) Enterprises over which key managerial persons are able to exercise significant infuence:

Khushi Ram Behari Lal : Partnership Firm in which Mr. Anil K. Mittal, Mr. Arun K. Gupta &Mr. Anoop K.Gupta are Partners

Anurup Exports Pvt. Limited : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors

Radha Raj Ispat Pvt. Ltd : Private Limited Company in which Mr. Anil K.Mittal, Mr. Arun K. Gupta, Mr. Anoop K. Gupta & Ms. Priyanka Mittal are Directors

Radha Raj Infrastructure Pvt. Ltd: Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K. Gupta & Mr. Ashwani Dua are Directors

KRBL Infrastructure Ltd : Public Limited Company in which Mr. Anil K.Mittal, Mr. ArunK. Gupta & Mr. Anoop K. Gupta are Directors

Aakash Hospitality Pvt. Ltd : Private Limited Company in which Mr. AnilK. Mittal, Mr. ArunK. Gupta & Mr. Anoop K. Gupta are Directors

Holistic Farms Pvt. Ltd : Private Limited Company in which Mr. Anil K.Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors

Radha Raj IT City & Parks Pvt. Ltd: Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta & Mr. Anoop K. Gupta are Directors

Radha Raj Logistics Pvt. Ltd : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta & Mr. Anoop K. Gupta are Directors

KRBL Foods Ltd. : Private Limited Company in which Mr. Anil K. Mittal,Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors

Adwet Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors

Padmahasta Warehousing Pvt. Ltd. : Private Limited Company in Which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors

K.B. Foods Pvt. Ltd. : Private Limited Company in which Mr. Akshay Gupta and Mr. Ayush Gupta are Directors

2.9 Employee benefits Accounting Standard AS-15 (Revised):

a) The Company has determined the liability for Employee benefits as at March 31, 2014 in accordance with revised Accounting Standard AS-15 issued by ICAI - Employee defned benefits.

2.10 As required under Accounting Standard AS-11 the Company has Outstanding Forward contracts as on March 31, 2014 and there is Marked to Market ( MTM) unrealized gain/(loss) on forward contracts is Rs.303.58 Lacs (P.Y. Rs.225.24 Lacs), which has been accounted for accordingly in the books of accounts.

Apart from above Company has foreign currency Liability (PCFC/Advances received from customers/ECB) of Rs.21,142.00 Lacs (P.Y. Rs.29,807.00 Lacs) at the year end and As per Accounting Standard AS-11 the efect of change in foreign exchange as on March 31, 2014 amounting to Rs.501.94 Lacs (P.Y. Rs.816.35 Lacs) has been taken to Profit & Loss Account.

2.11 During Construction Phase Companies generally temporarily invest the surplus funds to reduce the cost of capital or for other business reasons. However subsequently the same are utilised for the stated objective.

During the year surplus funds (if any) out of the Term Loans availed by KRBL Limited are temporarily invested in bank FDR''s but were ultimately utilized for the stated end use.

2.12 The company has reclassified and regrouped previous year fgure & wherever considered necessary.

2.13 The Consolidated Financial Statements of the company and its subsidiary, are enclosed separately in accordance with Accounting Standard AS-21 "Consolidated Financial Statements".


Mar 31, 2013

1.1 Brief Information on Shares Bought Back during the Year:

Pursuant to the resolution passed by the Board of Directors of the Company and in accordance with the provisions of the Companies Act, 1956 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1 998, the Company made a Public Announcement on February 14, 2013, to Buy-back the Equity Shares of Face Value of Rs.1/- each of the Company from open market through Stock Exchange route at a price not exceeding Rs.35/- per share, aggregating to Rs.35 Crores.

The Company has bought Back 12,00,652 Equity Shares as at March 31, 2013 at an average price of Rs.24.38 per share, utilising a sum of Rs.293.32 Lacs. The amount paid towards Buy-back of Shares, in excess of the face value, has been utilised out of Free Reserve.

In terms of the Provisions of Section 77A of the Companies Act, 1956 and SEBI (Buy-back of Securities) Regulations 1998, as at March 31, 2013 the Company has extinguished 11,65,652 Shares and the remaining 35,000 Shares has been extinguished on April 1, 2013 Consequently, the Paid- up Equity Share Capital of the Company has been reduced and the Company has created Capital Redemption Reserve of Rs.11.65 Lacs towards face value of 11,65,652 Equity Shares of Rs.1 each by utilising Free Reserve. The balance amount paid on Buy-back of Equity Shares which are yet to be extinguished as on March 31, 2013 has been shown by way of deduction from the Shareholder''s Fund.

1.2 In the opinion of the Board and to the best of their knowledge and belief, the valuation on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

1.3 A sum of Rs.64.69 Lacs (P.Y. Rs.29.94 Lacs) has been received from DMI through NABARD towards construction of rural godown and a sum of Rs.30.95 Lacs (P.Y. Rs.73.66 Lacs) is receivable from DMI through NABARD towards construction of rural godown. The entire grant so received / receivable has been deducted from the respective cost of the Capital Expenditure.

1.4 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Accounting Standard AS-5 on "Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies".

1.5 Intangible Assets

In accordance with Accounting Standard AS - 26 on ''Intangible Assets'', a sum of Rs.9.14 Lacs (P.Y. Rs.1.41 Lacs) have been capitalized on account of computer software development charge.

1.6 Corporate Dividend Tax

In view of the amended provision of Section 115-O(1A)(i) of the Income Tax Act, 1961, no provision of Corporate Dividend Tax has been made in the books of accounts as the Company has set-off declared Foreign Dividend from its Subsidiary Company against declared Dividend.

1.7 Earnings Per Share (EPS)

EPS is calculated by dividing the profit attributable to the Equity Shareholders by the average number of Equity Shares outstanding during the year. Number used for calculating basic and diluted earnings per equity is stated below:

1.8 The Company has entered into lease agreement for the period of five years, which are in the nature of operating leases as defined in the Accounting Standard AS-19 in respect of leases:-

C) Significant Leasing arrangement

The Company has entered into leasing arrangements in respect of godowns/premises

(i) Basis of determining contingent rent

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties

(ii) Renewal/purchase options & escalation clauses

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Va riations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor

(iii) There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

a) The business groups comprise of the following

- Agri:- Agri commodities such as rice, Furfural, seed, bran, bran oil, etc.

- Energy - Power generation from wind turbine and husk based power plant

b) The Geographical segments considered for disclosure are

- Sales within India

- Sales outside India

a) Middle East

b) Other than Middle East

1.9 Related Party Disclosures Accounting Standard AS-18:

A) Related parties and their relationship:

1) Subsidiary Company : KRBL DMCC

: K. B. EXPORTS PVT. LTD.

2) Key Management Personnel

Mr. Anil Kumar Mittal : Chairman & Managing Director

Mr. Arun Kumar Gupta : Joint Managing Director

Mr. Anoop Kumar Gupta : Joint Managing Director

Ms. Priyanka Mittal : Whole Time Director

Mr. Ashok Chand : Whole Time Director

Dr. Narpinder Kumar Gupta : Non Executive & Independent Director

Mr. Vinod Ahuja : Non Executive & Independent Director

Mr. Ashwani Dua : Non Executive & Independent Director

Mr. Shyam Arora : Non Executive & Independent Director

Mr. Gautam Khaitan : Non Executive & Independent Director

3) Employee benefit plans where there in significant influence:

- KRBL LIMITED Employees Group Gratuity Trust:

4) Relatives of Key Management Personnel:

Mrs. Preeti Mittal : Wife of Mr. Anil Kumar Mittal

Mrs. Anulika Gupta : Wife of Mr. Arun Kumar Gupta

Mrs. Binita Gupta : Wife of Mr. Anoop Kumar Gupta

Mr. Ashish Mittal : Son of Mr. Anil Kumar Mittal

Mrs. Neha Gupta : Daughter of Mr. Arun Kumar Gupta

Ms. Rashi Gupta: : Daughter of Mr. Anoop Kumar Gupta

Mr. Kunal Gupta : Son of Mr. Arun Kumar Gupta

Mr. Akshay Gupta : Son of Mr. Anoop Kumar Gupta

Mr. Ayush Gupta : Son of Mr. Anoop Kumar Gupta

Anil Kumar Mittal HUF : Mr. Anil Kumar Mittal is Karta of HUF

Arun Kumar Gupta HUF : Mr. Arun Kumar Gupta is Karta of HUF

Anoop Kumar Gupta HUF : Mr. Anoop Kumar Gupta is Karta of HUF

Bhagirath Lal Gupta HUF : Mr. Anil Kumar Mittal is Karta of HUF

5) Enterprises over which key management personnel are able to exercise significant influence:

Khushi Ram Behari Lal : Partnership Firm in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are partners Anurup Exports Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Radha Raj Ispat Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K. Gupta & Ms. Priyanka Mittal are Directors Radha Raj Infrastructure Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta, Mr. Anoop K. Gupta & Mr. Ashwani Dua are Directors

KRBL Infrastructure Ltd : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Aakash Hospitality Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Holistic Farms Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Radha Raj IT City & Parks Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Arun K. Gupta & Mr. Anoop K. Gupta are Directors Radha Raj Logistics Pvt. Ltd. : Private Limited Company in which Mr. Anoop K. Gupta & Mr. Ashwani Dua are Directors KRBL Foods Ltd. : Public Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Adwet Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors Padmahasta Warehousing Pvt. Ltd. : Private Limited Company in which Mr. Anil K. Mittal, Mr. Arun K. Gupta & Mr. Anoop K. Gupta are Directors K. B. Foods Pvt. Ltd. : Private Limited Company in which Mr. Akshay Gupta and Mr. Ayush Gupta are Directors

1.10 Employee Benefits Accounting Standard - AS 15 (Revised)

a) The Company has determined the liability for Employee benefits as at March 31, 2013 in accordance with revised Accounting Standard 15 issued by ICAI - Employee defined benefits.

1.11 As required under Accounting Standard AS-11 the Company has Outstanding Forward contracts as on March 31, 2013 and there is Marked to Market ( MTM) unrealized gain/(loss) on forward contracts is Rs.225.24. Lacs (P.Y. Rs.7.49 Lacs) , which has been accounted for accordingly in the books of accounts.

1.12 The Company has reclassified and regrouped previous year figure wherever considered necessary.

1.13 The Consolidated Financial Statements of the Company and its Subsidiary, are enclosed separately in accordance with Accounting Standard 21 (AS-21) "Consolidated Financial Statements"


Mar 31, 2012

A) Terms/ rights attached to ordinary shares

the Company has issued only one class of ordinary equity shares having a par value of Rs. 1/- per share. Each holder of ordinary shares is entitled to one vote per share. The Company declares and pays dividends in indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2012, the amount of dividend per share recognised for distribution to ordinary shareholders is Rs. 0.30/- (Previous year: Rs. 0.30/-). in event of liquidation of the company, the holders of ordinary equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. the distribution will be in proportion to the number of ordinary shares held by the shareholders.

b) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL.

# Secured by First pari passu charge by way of mortgage and hypothecation over all immovable properties and moveable fixed assets of the Company (both present and future) and further secured by second pari passu charge on all current assets of the Company and Personal Guarantee of promoter directors of the company

- There is no continuing default in repayment of any of the above loan.

## Working capital facilities (fund based & non fund based limits) are secured by first pari passu charge over stocks, stores, raw materials, inventories, work in progress, finished goods and also book debts, bills and moneys receivable of the Company by way of hypothecation. These facilities are further secured by second charge over the immovable & moveable assets of the Company & Personal Guarantee of promoter directors of the company.

- There is no continuing default in repayment of any of the above secured bank loan.

There are no Micro, Small and Medium Enterprises, (PY NIL) to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias (Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

1. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS

1.1 Contingent liabilities not provided for in respect of :

(Rs. in Lac)

Particulars As at 31/03/2012 As at 31/03/2011

(i) Claims against the Company not acknowledged as debts

(a) Liability relating to Bank Guarantee 166.00 205.00

(b) Liability relating to Bills Discounted with Scheduled Banks - 6,775.05

- Liability relating to Bills Discounted with Scheduled Banks as on date Rs. NIL (PY NIL)

(c) Disputed liability in respect of income tax demand in appeal 23.32 200.16

- Amount paid against disputed income tax appeal as Rs. 5.75 Lacs (PY Rs. 80.68 Lacs)

(d) Disputed liability relating to Sales tax 32.70 102.79

- Amount paid against disputed Sales tax appeal as Rs. 28.95 Lacs (PY Rs. 99.04 Lacs)

(e) Disputed liability relating to ESI (Malerkotla, Punjab) 6.12 -

(f) Disputed liability relating to Market Fees (Fazilka, Punjab) 15.09 -

- Amount paid against disputed is Rs. 1.37 lacs

(f) other 28.25 -

271.48 7,283.00

1.2 in the opinion of the Board and to the best of their knowledge and belief, the valuation on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

1.3 A sum of Rs. 29.94 (PY Rs. 40.36 Lacs) has been received from DMI through NABARD towards construction of rural godown and a sum of Rs. 73.66 Lacs (PY Rs. 44.01 Lacs) is receivable from DMI through NABARD towards construction of rural godown. The entire grant so received/receivable has been deducted from the respective cost of the Capital Expenditure.

1.4 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Accounting Standard-5 on "Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies".

1.5 intangible Assets

In accordance with Accounting Standard - 26 on 'Intangible Assets' ' 1.41 Lacs (PY ' 61.86 Lacs) have been capitalized on account of computer software development charge.

1.6 Earnings per Share (EPS)

EPS is calculated by dividing the profit attributable to the equity share holders by the average number of equity shares outstanding during the year. Number used for calculating basic and diluted earnings per equity is stated below

c) Significant Leasing arrangement

The Company has entered into leasing arrangements in respect of godowns/premises

(i) Basis of determining contingent rent

- Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

(ii) Renewal/purchase options & escalation clauses

- Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor.

(iii) There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

i) The business groups comprise of the following

a) Agri - Agri commodities such as rice, cotton, seed, bran, bran oil, etc.

b) Energy - Power generation from wind turbine and husk based power plant.

ii) The Geographical segments considered for disclosure are

- Sales within india

- Sales outside india

a) Middle East

b) Other than Middle East

Notes: (1) Amount written of or written back in respect of debts due from or to related parties in NIL (PY Rs. NIL)

(2) Loans & Advances (without repayment schedule) given to subsidiary i.e. KRBL DMCC, Dubai and K. B. Exports Private Limited, which is outstanding as on 31/03/2012 Rs. NIL (PY Rs. NIL). Maximum outstanding balance during the year Rs. NIL (PY Rs. NIL) as interest free loan.

1.7 Employee Benefits - AS 15 (Revised)

a) The Company has determined the liability for Employee benefits as at 31st March, 2012 in accordance with revised Accounting Standard 15 issued by ICAI - Employee defined benefits.

1.8 As required under AS-11 the Company has Outstanding Forward contracts as on 31st March, 2012 and there is Marked to Market ( MTM) unrealized gain/(loss) on forward contracts is Rs. 7.49 lacs (PY Rs. 2.97 lacs) , which has been accounted for accordingly in the books of accounts. derivative instruments

Apart from above Company has foreign currency Liability (PCFC/Advances received from customers/ECB) of Rs. 43,704 Lacs (PY Rs. 37,658 Lacs) at the year end and As per Accounting Standard (AS-11) the effect of change in foreign exchange as on 31st March, 2012 amounting to Rs. (2,571) Lacs (PY Rs. 842 Lacs) has been taken to profit & loss account.

1.9 Till the year ended 31st March, 2011, the company was using pre-revised Schedule VI of the Companies Act, 1956 for preparation and presentation of its financial statement. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956 is applicable to the company. The company has reclassified and regrouped previous year figure in conformity with revised Schedule-VI of the companies Acts, 1956 and wherever necessary.

1.10 The Consolidated Financial Statements of the company and its subsidiary, are enclosed separately in accordance with Accounting Standard

2 (AS-21) "Consolidated Financial Statements".


Mar 31, 2011

1. The Consolidated Financial Statements of the Company and its subsidiary, are enclosed separately in accordance with Accounting Standard 21 (AS-21) "Consolidated Financial Statements”.

2. Previous year figures have been regrouped/recast wherever found necessary.

3. Additional information pursuant to Part - II of Schedule VI to the Companies Act, 1956.

(c) The Company has milled 125.00 MT (P.Y. 1,502.63 MT) of Paddy on job work basis received from various agencies namely, Pun sup and Pun grain, resulting in production of 83.75 MT (P.Y. 996.70 MT) of Rice and 658.65 MT (P.Y. 431.78 MT) of Rice has been dispatched to these agencies during the year.

(d) CIF value of Imports made during the year in respect of:

(i) Components and Spare Parts Rs. 2,95,562 (P.Y. Rs. 1,90,36,399), (ii) Capital Goods Purchased Rs. 12,85,24,424 (P.Y. Rs. 8,89,70,155).

(e) Earnings in foreign exchange on mercantile basis - Rs. 642,80,07,277 (P.Y. Rs. 892,64,88,897).

(f) Expenditure in foreign currency on mercantile basis (i) Foreign Travel & Other: Rs. 15,08,137 (P.Y. Rs. 13,81,655) [By Directors: Rs. 9,62,811 (P.Y. Rs. 6,85,054)], (ii) Ocean Freight: Rs. 6,21,17,255 (P.Y. Rs. 5,34,06,740),(iii) Legal, professional & Other charges: Rs. 12,91,186 (P.Y. Rs. 16,30,054), (iv) Salary: Rs. 20,91,867 (P.Y. Rs. 20,04,223), (v) Selling & Distribution Expenses Rs. 13,81,706 (P.Y. Rs. 47,47,553).

(h) Managerial remuneration to Executive Directors Rs. 2,24,82,000 (P.Y. Rs. 1,42,05,600) including value of Perquisites Rs. 1,98,000 (P.Y. Rs. 1,05,600).

(i) F.O.B. value of exports - Rs. 626,58,88,930 (P.Y Rs. 881,16,32,102).

4. (a) The Company has requested all its Sundry Creditors to furnish Small Scale Industries Registration Certificate (SSIRC) but since

the creditors, having outstanding balance at the year end, have not furnished the SSIRC, it is deemed that none of them is a Small Scale Industrial Undertaking and no such amount is payable as on the balance sheet date.

(b) There are no Micro, Small and Medium Enterprises (P.Y Nil) to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

(c) Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias (Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act,2006.

5. Unclaimed dividend amounting to Rs. 24,10,394 (P.Y Rs. 23,95,663) pending on account of non presentation of cheques has been deposited in separate accounts with Scheduled Bank.

6. Insurance charges include payment of Rs. 1,02,81,712 (P.Y Rs. 1,02,81,712) on account of Key man Insurance of personnel of the Company.

7. A sum of Rs. 40.36 Lacs (P.Y Rs. 72.10 Lacs) has been received from DMI through NABARD towards construction of rural godown and a sum of Rs. 44.01 Lacs (P.Y Rs. Nil) is receivable from DMI through NABARD towards construction of rural godown. The entire grant so received / receivable has been deducted from the respective cost of the Capital Expenditure.

8. The Company purchased the assets (Land, Building & Machineries) of an integrated rice mill at Dhuri, District Sangrur, Punjab in an auction for net consideration of Rs. 15.80 crores through Hon'ble High Court of Punjab & Haryana at Chandigarh. Conveyance deed of the said property was registered on 02.05.2005. However, an appeal no. 21 of 2003 was filed by the bidders before the Hon'ble High Court of Haryana & Punjab challenging the sale process, while the appeal was pending, in a new judgment, The Hon'ble High Court of Haryana & Punjab remanded the judgment, against which appeal no. 21 of 2003 was pending, for review of the decision by another independent Judge. Thus appeal no 21 of 2003 got infructuous and in remand the case was again heard and sale was reconfirmed in favor of KRBL Limited by the independent Judge. Against the reconfirmation of sale the party which had filed earlier appeal, have filed an appeal contesting this judgment. The new appeal number is 4 of 2009, which was lying before The Hon'ble High Court of Haryana & Punjab stands dismissed vide order dated November 12, 2010 passed by the bench comprising Hon'ble Chief Justice Mukul Mudgul & Hon'ble Justice Ajey Tiwari. The appellant has not approached the apex court against dismissal of its above referred appeal & the period for filing the appeal before the apex court also standlapsed. Thus the assets purchased by the company are totally dispute free.

9. None of the fixed assets has been revalued during the year.

10. Borrowing Costs

The borrowing costs amounting to Rs. 1,58,44,441 (P.Y Rs. 17,33,855) attributable to the acquisition or construction of qualifying assets are capitalized as a part of those assets.

11. Prior Period Items

There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Accounting Standard-5 on "Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies".

12. Research & Development Expenses for the year amounting to Rs. 220.03 Lacs (P.Y Rs. 162.13 Lacs) including capital expenditure of Rs. Nil (P.Y Rs. 0.17 Lacs).

13. Intangible Assets

In accordance with Accounting Standard - 26 on 'Intangible Assets', Rs. 61.86 lacs (P.Y. Rs. 117.37 Lacs) have been capitalized on account of computer software development charge and for miscellaneous expenditure incurred by the company is being charged off to the Profit & Loss Account, unless it qualifies to be an 'Intangible Asset, in which case it shall be forwarded as permitted by the Standard.

c) Significant Leasing arrangement:

The Company has entered into leasing arrangements in respect of godowns / premises.

(i) Basis of determining contingent rent:

Contingent rents are payable for excessive, improper or unauthorized use of the assets, beyond the terms of the lease agreement, prejudicially affecting the resale value of the asset, either by way of increase in lease rentals or by way of lump- sum amount, as agreed between the parties.

(ii) Renewal / purchase options & escalation clauses:

Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the parties. Variations in lease rentals are made in the event of a change in the basis of computation of lease rentals by the lessor.

(iii) There are no restrictions imposed by the lease arrangements, concerning dividends, additional debt and further leasing.

14. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

(a) the Company has a present obligation as a result of a past event;

(b) a probable outflow of resources is expected to settle the obligation; and

(c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received ultimately.

Contingent liability is disclosed in case of.

(a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;

(b) a present obligation when no reliable estimate is possible; and

(c) a possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent Assets are neither recognised, nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

Contingent liabilities

(a) Contingent liabilities in respect of Bank guarantee Rs. 2.05 Lacs (P.Y. Rs. 176.92 Lacs).

(b) Contingent liabilities in respect of Bills discounted with Banks is Rs. 6,775.05 Lacs (P.Y. Rs. 1,460.90 Lacs). Outstanding amount as on date is Rs. Nil (P.Y. Rs. Nil).

(c) Disputed Income Tax demand in appeal Rs.200.16 Lacs (P.Y Rs. 3.11 Lacs) and disputed Sales Tax demand in appeal Rs. 102.79 Lacs (P.Y. Rs. 419.03 Lacs), which includes amount paid Rs.80.68 Lacs (P.Y. Rs. Nil ) for Income Tax and Rs. 99.04 Lacs(P.Y. Rs. 174.28 Lacs) for sales tax. Based on pronounced legal ratio and the interpretation of other relevant provisions, the company has been legally advised that the demands are likely to be either deleted or substantially reduced and thus no provision thereof has been made in current year.

31/03/2011 31/03/2010

Contingent Assets Nil Nil

15. By virtue of change in accounting standard (AS-11) on "effect of change in foreign exchange rates" notified in the Companies Accounting Standards 2006, the Company has foreign currency loan of Rs. 56.40 crores on fixed assets at the year end. Therefore, effect of change in foreign exchange amounting to Rs. 1.20 crores taken on profit & loss account at the year end.

(i) The business groups comprise of the following:

a) Agri - Agri commodities such as rice, cotton, seed, bran, bran oil, etc.

b) Energy - Power generation from wind turbine and husk based power plant

(ii) The Geographical segments considered for disclosure are:

- Sales within India

- Sales outside India

(a) Middle East

(b) Other than Middle East


Mar 31, 2010

1.The Consolidated Financial Statements of the Company and its subsidiary are enclosed separately in accordance with Accounting Standard 21 (AS-21)"Consolidated Financial Statements ".

2.Previous year figures have been regrouped/recast wherever found necessary

3.Additional information pursuant to Part -II of Schedule VI to the Companies Act,1956

4.(a)The Company has requested all its Sundry Creditors to furnish Small Scale Industries Registration Certificate (SSIRC)but since the creditors,having outstanding balance at the year end,have not furnished the SSIRC,it is deemed that none of them is a Small Scale Industrial Undertaking and no such amount is payable as on the balance sheet date. (b)There are no Micro,Small and Medium Enterprises,(P.Y.NIL)to whom the Company owes dues,which are outstanding for more than 45 days as at 31st March,2010.This information,required to be disclosed under the Micro,Small and Medium Enterprises Development Act,2006,has been determined to the extent such parties have been identified on the basis of information available with the Company.Moreover,the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias (Commission Agents)who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act,2006.

5.Unclaimed dividend amounting to Rs.23,95,663/-(P.Y.Rs.20,73,939/-)pending on account of non presentation of cheques has been deposited in separate accounts with a Scheduled Banks.

6.Insurance charges include payment of Rs.102,81,712/-(P.Y.Rs.122,17,858/-)on account of Keymen Insurance of directors of the Company.

7.A sum of Rs.72.10 Lacs (P.Y.Rs.11.25 Lacs)has been received from Directorate of Marketing and Inspection (Department of Agricluture and Cooperation)through NABARD towards construction of rural godown and a sum of Rs.Nil (P.Y.Rs.72.10 Lacs) receivable towards construction of rural godown.The entire grant so received /receivable has been deducted from the respective cost of the Capital Expenditure.

8.The Company purchased assets (Land,Building &Machineries)of an integrated rice mill at Dhuri,District Sangrur,Punjab in an auction for net consideration of Rs.15.80 crores through Honble High Court of Punjab &Haryana at Chandigarh.Conveyance deed of the said property was registered on 02.05.2005.However,an appeal no.21 of 2003 was filed by the bidders before the Honble High Court of Punjab &Haryana challenging the sale process.While the appeal was pending,in a new judgment,the Honble High Court of Punjab &Haryana remanded the judgment,against which appeal no.21 of 2003 was pending,for review of the decision by another independent Judge.Thus appeal no 21 of 2003 got infructuous and in remand the case was again heard and sale was reconfirmed in favour of KRBL Limited by the independent Judge.Against the reconfirmation of sale the party which had filed earlier appeal,have filed an appeal contesting this judgment.The new appeal number is 4 of 2009,which is lying pending before The Honble High Court of Punjab &Haryana.

9.None of the fixed assets has been revalued during the year.

10.Borrowing Costs

The borrowing costs amounting to Rs.17,33,855/-(P.Y.Rs.Nil)attributable to the acquisition or construction of qualifying assets are capitalized as a part of those assets.

11.Prior Period Items

There is no prior period item,which is considered material for the purpose of disclosure in accordance with the Accounting Standard-5 on "Net Profit or Loss for the period,Prior Period items and changes in Accounting Policies".

12.Research &Development Expenses for the year amount to Rs.162.13 Lacs (P.Y.Rs.130.48 Lacs)including capital expenditure of Rs.0.17 Lacs (P.Y.Rs.0.29 Lacs).

13.Intangible Assets

In accordance with Accounting Standard -26 on Intangible Assets,Rs.117.37 lacs have been capitalized on account of Computer software development charges &Trade Mark Purchase and for miscellaneous expenditure incurred by the company is being charged off to the Profit &Loss Account,unless it qualifies to be an Intangible Asset,in which case it shall be forwarded as permitted by the Standard.

18.Provisions,Contingent Liabilities and Contingent Assets Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation,if

(a)the Company has a present obligation as a result of a past event;

(b)a probable outflow of resources is expected to settle the obligation;and

(c)the amount of the obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received ultimately. Contingent liability is disclosed in case of:

(a)a present obligation arising frompast events,when it is not probable that an outflow of resources will be required to settle the obligation;

(b)a present obligation when no reliable estimate is possible;and

(c)a possible obligation arising from past events where the probability of outflow of resources is not remote. Contingent Assets are neither recognised,nor disclosed.Provisions,Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

Contingent liabilities

(a)Contingent liabilities in respect of Bank guarantees Rs.176.92 Lacs (P.Y.Rs.173.43 Lacs).

(b)Contingent liabilities in respect of Bills discounted with Banks is Rs.1,460.09 Lacs (P.Y.Rs.3,539.46 Lacs).Outstanding amount as on date is Rs.NIL (P.Y.Rs.2,656 lacs).

(c)Disputed Income Tax demand in appeal Rs.3.11 Lacs (P.Y Rs.850.06 Lacs)and disputed Sales Tax demand in appeal Rs.419.03 Lacs (P.Y.Rs.169.45 Lacs),which includes amount paid Rs.Nil Lacs (P.Y.Rs.675.00 Lacs)for Income Tax and Rs.174.28 Lacs (P.Y.Rs.131.79 Lacs)for Sales Tax.Based on pronounced legal ratio and the interpretation of other relevant provisions,the company has been legally advised that the demands are likely to be either deleted or substantially reduced and thus no provision thereof has been made in current year.

2009-10 2008-09

Contingent Assets Nil Nil

19.As per the Accounting standard (AS-11)on "effect of change in foreign exchange rates",the Company has no foreign currency loan on fixed assets at the year end.Therefore,there is no effect in profit &loss account at the year end.

(A)RELATED PARTIES ANDTHEIR RELATIONSHIP

1.Subsidiary Company :KRBL DMCC

2.Key Management Personnel

Mr.Anil Kumar Mittal :Chairman &Managing Director Mr.Arun Kumar Gupta :Joint Managing Director Mr.Anoop Kumar Gupta :Joint Managing Director Mr.Ashok Chand :Whole Time Director Dr.Narpinder Kumar Gupta :Non Executive &Independent Director Ms.Priyanka Mittal :Whole Time Director &Daughter of CMD Mr.Vinod Ahuja :Non Executive &Independent Director Mr.Ashwani Dua :Non Executive &Independent Director Mr.Shyam Arora :Non Executive &Independent Director Mr.Gautam Khaitan :Non Executive &Independent Director

3.Employee benefit plans where there in significant influence

-KRBL LIMITED Employees Group Gratuity Trust.

4.Relatives of Key Management Personnel

Mrs.Preeti Mittal :Wife of Mr.Anil Kumar Mittal Mrs.Anulika Gupta :Wife of Mr.Arun Kumar Gupta Mrs.Binita Gupta :Wife of Mr.Anoop Kumar Gupta Mr.Ashish Mittal :Son of Mr.Anil Kumar Mittal Mrs.Neha Gupta :Daughter of Mr.Arun Kumar Gupta Ms.Rashi Gupta :Daughter of Mr.Anoop Kumar Gupta Mr.Kunal Gupta :Son of Mr.Arun Kumar Gupta Mr.Akshay Gupta :Son of Mr.Anoop Kumar Gupta Mr.Ayush Gupta :Son of Mr.Anoop Kumar Gupta Anil Kumar Mittal HUF :Mr.Anil Kumar Mittal is Karta of HUF Arun Kumar Gupta HUF :Mr.Arun Kumar Gupta is Karta of HUF Anoop Kumar Gupta HUF :Mr.Anoop Kumar Gupta is Karta of HUF Bhagirathi Lal Gupta HUF :Mr.Anil Kumar Mittal is Karta of HUF

5.Enterprises over which significant influence exercised by Key Management Personnel

Khushi Ram Behari Lal :Partnership Firm in which Mr.Anil K.Mittal,Mr.Arun K.Gupta &Mr.Anoop K.Gupta are partners

Anurup Exports Pvt.Limited :Private Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta &Mr.Anoop K.Gupta are directors

Radha Raj Ispat (P)Ltd.:Private Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta,Mr.Anoop K.Gupta &Ms.Priyanka Mittal are directors

Radha Raj Infrastructure (P)Ltd.:Private Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta,Mr.Anoop K.Gupta &Mr.Ashwani Dua are directors

KRBL Infrastructure Ltd.:Public Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta &Mr.Anoop K.Gupta are directors

Aakash Hospitality (P)Ltd.:Private Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta &Mr.Anoop K.Gupta are directors

K.B.Exports (P)Ltd.:Private Limited Company in which Mr.Anil K.Mittal,Mr.Arun K. Gupta &Mr.Anoop K.Gupta are directors

Holistic Farms Pvt.Ltd.:Private Limited Company in which Mr.Anil K.Mittal, Mr.Arun K.Gupta &Mr.Anoop K.Gupta are Directors

Radha Raj IT City &Parks Pvt.Ltd.:Private Limited Company in which Mr.Anil K.Mittal,Arun K. Gupta &Mr.Anoop K.Gupta are Directors

Radha Raj Logistics Pvt.Ltd.:Private Limited Company in which M r.Anoop K .Gupta & Mr.Ashwani Dua are Directors

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