Notes to Accounts of Best Agrolife Ltd.

Mar 31, 2025

2.13 Provisions, contingent liabilities and
contingent assets

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made
of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed,
the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.
Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimate.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate

that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly with in the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle, or reliable estimate
of the amount cannot be made. Therefore, in order to
determine the amount to be recognised as a liability or
to be disclosed as a contingent liability, in each case, is
inherently subjective, and needs careful evaluation and
judgement to be applied by the management. In case of
provision for litigations, the judgements involved are with
respect to the potential exposure of each litigation and
the likelihood and/or timing of cash outflows from the
Company and requires interpretation of laws and past
legal rulings.

Possible inflows of economic benefits to the Company
that do not yet meet the recognition criteria of an asset
are considered contingent assets.

2.14 Revenue recognition

Revenue is recognised upon transfer of control of
promised goods to customers in an amount that reflects
the consideration which the Company expects to
receive in exchange for those goods.

To determine whether to recognize revenue, the
Company follows a 5-step process:

1. Identifying the contract with a customer.

2. Identifying the performance obligations.

3. Determining the transaction price.

4. Allocating the transaction price to the performance
obligations.

5. Recognising revenue when/as performance obligation(s)
are satisfied.

The Company recognised revenue from sale of goods
measured upon satisfaction of performance obligation
which is at a point in time when control is transferred to
the customer which is usually on shipment / dispatch.
Depending on the terms of the contract, which differs

from contract to contract, the goods are sold on a
reasonable credit term.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for discount,
scheme allowances and returns, if any, as specified in the
contracts with the customers. Revenue excludes taxes
collected from customers on behalf of the government.

A receivable is recognised where the Company''s right
to consideration is unconditional. When either party
to a contract has performed, an entity shall present
the contract in the balance sheet as contract asset or
contract liability, depending on the relationship between
the entity''s performance and the customer''s payment.

Other income
Interest income

Interest income from a financial asset is recognized when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest is accrued on time proportion basis, by
reference to the principle outstanding at the effective
interest rate.

All other income is recognized on accrual basis when no
significant uncertainty exists on their receipt.

2.15 Foreign currency conversions/transactions

Foreign currency transactions are recorded at
the exchange rates prevailing on the date of the
transactions. Gains and losses arising out of subsequent
fluctuations are accounted for on actual payments or
realisations, as the case may be. Monetary assets and
liabilities denominated in foreign currency as on balance
sheet date are translated into functional currency at the
exchange rates prevailing on that date and exchange
differences arising out of such conversion are recognised
in the statement of profit and loss.

2.16 Taxes

Income tax expense for the year comprises of current
tax and deferred tax. It is recognised in the Statement
of Profit and Loss except to the extent it relates to any
business combination or to an item which is recognised
directly in equity or in other comprehensive income.

i) Current tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the tax authorities in accordance with the Indian Income
Tax Act, 1961. The tax rates and tax laws used to compute

the amount are those that are enacted or substantively
enacted at the reporting date in the countries where the
Company operates and generates taxable income.

Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity) are recognised
in correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate. The Company offsets current tax
assets and current tax liabilities, where it has a legally
enforceable right to set off the recognised amounts and
where it intends either to settle on a net basis, or to realise
the asset and liability simultaneously.

ii) Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable
profit will be available against which the deductible
temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilized. Unrecognized deferred tax assets are reÂ¬
assessed at each reporting date and are recognized
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized outside
statement of profit or loss is recognized outside statement
of profit or loss. Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or
directly in equity.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

2.17 Employee benefits

i) Short-term employee benefits

Short-term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised for
the amount expected to be paid e.g., under short-term
cash bonus, if the Company has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee, and the amount
of obligation can be estimated reliably.

ii) Post-employment benefits

Employee benefit in the form of provident fund is a
defined contribution scheme. The Company has no
obligation, other than the contribution payable to the
provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense,
when an employee renders the related service. If the
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds
the contribution due for services received before the
balance sheet date, then excess is recognized as an
asset to the extent that the pre-payment will lead to, for
example, a reduction in future payment or a cash refund.

The Company operates a defined benefit gratuity plan.

The cost of providing benefits under the defined benefit
plan is determined using the projected unit credit
method.

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, are
recognised in OCI. The Company determines the net
interest expense/(income) on the net defined benefit
liability or the period by applying the discount rate
used to measure the defined benefit obligation at the
beginning of the annual period to the then net defined
benefit liability, taking into account any changes in the
net defined benefit liability during the period as a result
of benefit payments.

Past service costs are recognised in profit or loss on the
earlier of:

â¢ The date of the plan amendment or curtailment, and

â¢ The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount
rate to the net defined benefit liability. The Company
recognises the following changes in the net defined
benefit obligation as an expense in the standalone
statement of profit and loss:

â¢ Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and nonÂ¬
routine settlements; and

â¢ Net interest expense or income.

iii) Compensated absences

Entitlements to annual leave are recognised when they
accrue to employees. Leave entitlements may be availed
while in service or encashed at the time of retirement/
termination of employment, subject to a restriction on
the maximum number of accumulation.

2.18 Earnings per share (EPS)

Basic earnings per share is calculated by dividing
the profit or loss for the period attributable to equity
shareholders of the Company by the weighted average
number of equity shares outstanding during the year.

Diluted earnings per share are computed and disclosed
after adjusting the effects of all dilutive potential equity
shares, if any, except when the results will be anti-d ilutive.

2.19 Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets

Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made
at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the lease term
and the estimated useful lives of the assets.

Lease liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The
lease payments include fixed payments (including in
substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment
occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.

Short-term leases

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases

that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). Lease payments on short-term leases are
recognised as expense on a straight-line basis over the
lease term.

2.20 Statement of cash flows

Statement of cash flows is prepared in accordance with
the indirect method prescribed in Ind AS-7 ''Statement of
Cash Flows''.

2.21 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief
operating decision maker. The Company''s Managing
Director assesses the financial performance and position
of the Company and makes strategic decision and has
been identified as the chief operating decision maker.
The Company''s primary business segment is reflected
based on principal business activities carried on by the
Company. As per Indian Accounting Standard 108,
Operating Segments, as notified under the Companies
(Indian Accounting Standards) Rules, 2015, the Company
operates in one reportable business segment i.e., trading
of agro based products. The geographical information
analyses the Company''s revenue and trade receivables
from such revenue in India and other countries. The
Company primarily sells its products in India.

2.22 Amended accounting standards (IND AS)
and interpretations effective during the year

The Ministry of Corporate Affairs notified new standards
or amendment to existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. The Company applied following amendments for
the first-time during the current year which are effective
from 1 April 2024:

1. Lease liability in a sale and leaseback (amendments to Ind
AS 116): The amendments require an entity to recognise
lease liability including variable lease payments which are
not linked to index or a rate in a way it does not result into
gain on Right-of-use assets it retains.

2. Introduction of Ind AS 117 MCA notified Ind AS 117,
a comprehensive standard that prescribe, recognition,
measurement and disclosure requirements, to avoid
diversities in practice for accounting insurance contracts
and it applies to all companies i.e., to all âinsurance
contracts'' regardless of the issuer. However, Ind AS 117
is not applicable to the entities which are insurance
companies registered with IRDAI.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have impact on these standalone
financial statements.

2.23 Recent accounting pronouncements which
are not yet effective

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as amended from time to time. During the year ended 31
March 2025, MCA has notified following new standards
or amendments to the existing standards applicable to
the Company:

Lack of exchangeability - Amendments to Ind AS 21:

The amendments to Ind AS 21 The Effects of Changes

in Foreign Exchange Rates specify how an entity
should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also
require disclosure of information that enables users of its
financial statements to understand how the currency not
being exchangeable into the other currency affects, or
is expected to affect, the entity''s financial performance,
financial position and cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When
applying the amendments, an entity cannot restate
comparative information. The amendments will not
have a material impact on the Company''s standalone
financial statements.

Nature and purpose of reserve

Capital reserve

Capital reserve was created on account of loss on business combinations.

Securities premium

Securities premium comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provision
of the Companies Act, 2013.

Retained earnings

Retained earnings refer to the net profit/(loss) retained by the Company for its core business activities. It also includes the gain/
(loss) on remeasurement of defined employee benefit obligations.

Revaluation reserve

This represents the cumulative gains and losses arising on the revaluation of land and building. It is not available for distribution as
dividend.

Notes:

a. Cash credit facilities have been obtained from banks which has been secured by first pari passu charge on present and
future current assets and movable property except vehicles. Cash credit facility obtained from one of the bank have been
secured by charge on property on Mahagun, Noida. Also the facilities taken from banks are secured by personal guarantee
of promoter Mr. Vimal Kumar, Mrs Vandana Alawadhi and director Mr. Shuvendu Satpathy. These loans carry interest rate of
9.00% to 11.10% per annum (previous year: 7.80% to 12.50% per annum).

b. Working capital loan facility was obtained from banks and financial institution during the year which has been secured by
first pari passu charge on present and future current assets and movable property, plant and equipment except vehicles. The
facilities taken from banks and financial institution are secured by personal guarantee of promoter Mr. Vimal Kumar and
Mrs Vandana Alawadhi and director M. Shuvendu Satpathy on behalf of the Company. These loan carry interest rate of
9.00% to 10.45% per annum (previous year: 9.00% to 11.50% per annum).

c. Refer note 43 for disclosure of fair values in respect of financial liabilities measured at fair value and amortised cost.

d. The quarterly statements of current assets filed by the Company with banks and financial statements are in agreement with
the books of accounts. The auditors have relied on the information provided by the management of the Company.

e. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

f. The Company has not defaulted in repayment of dues during the current financial year.Also terms of the loans were not
renegotiated.

g. The Company is required to comply with certain debt covenants as mentioned in the loan agreement for working capital
loans and cash credit facilities, failure of which makes the loan to be repaid on demand at the discretion of the bank. During
the year, there has been no breach in the financial covenants of current borrowings obtained from two bank.

38. EMPLOYEE BENEFIT OBLIGATIONS
a. Defined contribution plan

An amount of ? 1.15 Crores [31 March 2024: ? 1.13 crorers] for the year has been recognised as an expense in respect of the
Company''s contributions towards Provident Fund and an amount of ? 0.01 crorers [31 March 2024: ? 0.03 crores] for the year
has been recognised as an expense in respect of Company''s contributions towards Employee State Insurance which are deposited
with the government authorities and have been included under employee benefit expenses in the Statement of Profit and Loss.

A. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company has a defined
benefit gratuity plan. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on
departure at 15 days of last drawn salary for each completed year of service or part thereof in excess of six months subject to a
maximum of ? 0.02 crores. The scheme is unfunded.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit
obligation will tend to increase.

Salary inflation risk:

Expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability
and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the
combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the
financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service
employee.

(G) (i) The transactions with related parties are made in the ordinary course of business and on terms equivalent to those

that prevail in arm''s length transactions.

(ii) Unless otherwise stated, Outstanding balances at the year-end are unsecured and interest free and settlement occurs
in cash.

40. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise
the shareholder value.

The Company seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and
the advantages and security afforded by a sound capital position. The primary objective of the Company''s capital management
is to maximise the shareholder value.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and
31 March 2024.

41. FINANCIAL INSTRUMENTS: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, comprises of loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments in
equity shares, loans to related party, trade and other receivables, security deposits, cash and short-term deposits that are derived
directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company''s senior management oversees the management
of these risks and advises on financial risks and the appropriate financial risk governance framework for the Company. The board
provides assurance to the shareholders that the Company''s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk
objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(i) 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 not exposed to any significant credit risk from its operating activities (except trade receivables),
including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation
decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to
enforce repayment. Recoveries made are recognised in the statement of profit and loss.

Trade receivables:

Trade receivables are generally unsecured and non-interest
bearing. There is no significant concentration of credit risk.
The Company''s credit risk management policy in relation to
trade receivables involves periodically assessing the financial
reliability of customers, taking into account their financial
position, past experience and other factors. The utilization of
credit limit is regularly monitored and a significant element
of credit risk is covered by credit insurance. The Company''s
credit risk is mainly confined to the risk of customers defaulting
against credit sales made. Outstanding trade receivables are
regularly monitored by credit monitoring Company. In respect
of trade receivables, the Company recognises a provision for
lifetime expected credit losses after evaluating the individual
probabilities of default of its customers which are duly based on
the inputs received from the marketing teams of the Company.

Cash and cash equivalents and other bank balances:

Credit risk on cash and cash equivalents is limited as the
Company generally invest in deposits with banks and financial
institutions with high credit ratings assigned by international
and domestic credit rating agencies. The Company limits its
exposure to credit risk by generally investing in liquid securities
and only with counterparties that have a good credit rating. In
respect of above, the Company has not recognized any loss in
current year and in previous year on account of credit risk. The
Company does not expect any losses from non-performance
by these counterparties, and does not have any significant
concentration of exposures to specific industry sectors or
specific country risk.

Loans:

Loans are measured at amortised cost includes loans given
to subsidiaries. Credit risk related to these financial assets is

managed by monitoring the recoverability of such amounts
continuously, while at the same time internal control system are
in place to ensure the amounts are within defined limits. Credit
risk is considered low because the Company is in possession of
the underlying asset and these are given to related parties. In
respect of above, the Company has not recognized any loss in
current year and in previous year on account of credit risk. The
Company does not expect any loss.

Other financial assets:

Other financial assets measured at amortized cost includes
security deposits and other receivables. Credit risk related
to these financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the
same time internal control system are in place to ensure the
amounts are within defined limits. Credit risk is considered
low because the Company is in possession of the underlying
asset (in case of security deposit) or as per trade experience. In
respect of above, the Company has not recognized any loss in
current year and in previous year on account of credit risk. The
Company does not expect any loss.

The expected loss rates are based on the payment profiles of
sales over a period of 36 months before the reporting date and
the corresponding historical credit losses experienced within
this period. The historical loss rates are adjusted to reflect current
and forward-looking information on macroeconomic factors
affecting the ability of the customers to settle the receivables.
Trade receivables are written off where there is no reasonable
expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of
a debtor to engage in a repayment plan with the Company,
and a failure to make contractual payments for a period of
greater than 180 days past due.

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or
less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does
not have any liability to make variable lease payments for the right-to-use the underlying asset recognised in the financials.

Total cash outflow for short term-leases and leases of low value for the year ended 31 March 2025 was ? 2.45 crores (31 March
2024: ? 2.09 crores.).

The Company has leases for office premises, residential properties and storage facilities. With the exception of short-term leases
and low value leases, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company
classifies its right-of-use assets to its property, plant and equipment.

The following assumptions/methods were used to estimate the fair values:

i) The fair values of loan, trade receivables, cash and cash equivalents, Bank balances other than cash and cash equivalents,
other financial assets, trade payables, borrowings, lease liabilities and other financial liabilities are considered to be same as
their carrying values due to their short term nature.

ii) The carrying amount of other items carried at amortized cost are reasonable approximation of their fair value.

iii) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

Note:

There are no financial assets/liabilities which are measured at fair value and accordingly disclosure for fair value measurement

hierarchy is not required.

Note:

(i) The Company in its board meeting dated 04 September
2024 had approved the payment of USD 10,000 Best
Agrolife Global, Mauritius, a wholly-owned subsidiary
of the Company for subscription of 10,000 shares @
of USD 1 each. Details of investments made are given in
note 8.

(ii) Details of corporate guarantees issued for the loan
taken by the subsidiary companies and outstanding in
accordance with Section 186 of the Act read with rules
issued thereunder are given in note 39(f).

50. (i) The Company had made further investment
in M/s Kashmir Chemicals, a partnership firm,
having its premises at Industrial Growth Centre,
Phase-I, Samba, Jammu and Kashmir, in order
to further expand its manufacturing capacity.
The investment has been completed during the
quarter ended 30 September 2024.

(ii) Pursuant to approval in the board meeting
held on 8 November 2023, the Company

has incorporated wholly owned subsidiary in
Mauritius by the name Best Agrolife Global on
19 January 2024.

(iii) The Board of Director of Company in its
meeting held on 28 March 2024 has approved
acquisition of 100% stake in Sudarshan Farm
Chemical India Private Limited. The definitive
agreements in the connection with the acquisition
transaction were executed on 30 March 2024
and the control was acquired on the same date
and accordingly Sudarshan Farm Chemical
Inida Private Limited became wholly owned
subsidiary of the Company. The acquisition have
been accounted for as per Ind AS 103- Business
Combinations.

51. During the quarter ended 30 September 2023, the Income
Tax Department (âthe Departmentâ) has conducted a search
and seizure operation at the head office of the Company,
along with other premises of the Company, its Wholly Owned
Subsidiaries Company and residence of certain KMPs from
26 September 2023 to 30 September 2023 under Section
132 of the Income Tax Act, 1961. List of assets seized by the

authorities included of loose documents, hardrives, laptops etc.
The Company has provided necessary support, co-operation
and documents as requested by the Department during the
search and seizure operation. During the quarter ended 31
March 2025, the Company has received an order u/s 143(3)
of the Income Tax Act with respect to assessment year 2023Â¬
24, where no addition has been made to the income submitted
by the Company on account of the aforementioned search
conducted. Further, the Company has not received any order/
notice/communication on the findings of such investigation by
the Income tax department till date for any other assessment
years other than mentioned above. While the uncertainty exists
regarding the outcome of the search and seizure carried out by
the Department, after considering all available information and
facts as of date, the management has not identified the need
for any adjustments in the standalone financial statements.

52. OTHER STATUTORY INFORMATION

(a) The Company do not have any Benami property, where
any proceeding has been initiated or pending against the
Company for holding any Benami property.

(b) The Company do not have any transactions with struck
off companies.

(c) The Company do not have any charges or satisfaction
which is yet to be registered with Registrar of Companies
beyond the statutory period.

(d) The Company have not traded or invested in Crypto
currency or Virtual Currency during the financial year.

(e) The Company have 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:

(i) 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

(ii) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.

(f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

(g) The Company have not any such transaction which
is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the
Income Tax Act, 1961

(h) The Company is not declared wilful defaulter by any bank
or financial institution or government or any government
authority.

53. The Board of Directors of the Company have recommended
a dividend of ? 3 (30%) per equity share of ? 10 each for the
financial year ended 31 March 2025 subject to the approval
of shareholders. The Board of Directors of the Company had
recommended a dividend of ? 3 (30%) per equity share of ?
10 each for the financial year ended 31 March 2024 which
was subsequently approved by the shareholders in the Annual
General Meeting held on 30 September 2024 and paid
thereof.

54. The Ministry of Corporate Affairs (MCA) has prescribed
a new requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014, inserted by
the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining
its books of accounts, shall only use such accounting software
which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the
books of account along with the date when such changes were
made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining
its books of account which has a feature of audit trail (edit log)
facility and the same was enabled at the application level.
During the year ended 31 March 2025, the Company has
not enabled the feature of recording audit trail (edit log) at
the database level for the said accounting software to log any
direct data changes on account of recommendation in the
accounting software administration guide which states that
enabling the same all the time consume storage space on the
disk and can impact database performance significantly.

Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention from the
date the audit trail was enabled for the accounting softwares.

55 The standalone financial statements were approved for issue by the Board of Directors of the Company on 24 May 2025.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of

Chartered Accountants Best Agrolife Limited

Firm Registration No.: 001076N/N500013

Rahul Kool Vimal Kumar Isha Luthra

Partner Managing Director Director

Membership No. 425393 DIN: 01260082 DIN: 07283137

Vikas Sohanlal Jain Astha Wahi

Chief Financial Officer Company Secretary

Place: New Delhi Place: New Delhi Place: New Delhi

Date: 24 May 2025 Date: 24 May 2025 Date: 24 May 2025

Mar 31, 2024

Fair value of the buildings was determined by using the market comparable method and the same falls within level 3 of fair value measurement hierarchy. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific building. As at the date of revaluation of March 31, 2024, the buildings are measured at fair value which has been determined basis report from a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017. Gain on revaluation is recognised in other comprehensive income in the statement of profit and loss. Further, loss on revaluation to the extent revaluation gain is available is recognised in other comprehensive income.

Fair value of the land and building was determined by using the market comparable method and the same falls witing level 3 of fair value measurement hierarchy. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific land and building. As at the date of revaluation of March 31, 2024, the land and building are measured at fair value which has been determined basis report from a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 Gain on revaluation is recognised in other comprehensive income in the statement of profit and loss. Further, loss on revaluation to the extent revaluation gain is available is recognised in other comprehensive income.

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. 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.

a. Cash credit facilities have been obtained from banks which has been secured by first pari passu charge on present and future current assets and movable property except vehicles. Cash credit facility obtained from one of the bank have been secured by charge on property on Mahagun, Noida. Also the facilities taken from banks are secured by personal guarantee of promoter Mr. Vimal Kumar, Mrs Vandana Alawadhi and director Mr. Shuvendu Satpathy. These loans carry interest rate of 7.80% to 12.50% per annum (previous year: 7.60% to 10.50% per annum).

b. Working capital loan facility was obtained from banks and financial institution during the year which has been secured by first pari passu charge on present and future current assets and movable property, plant and equipment except vehicles. The facilities taken from banks and financial institution are secured by personal guarantee of promoter Mr. Vimal Kumar and Mrs Vandana Alawadhi and director M. Shuvendu Satpathy on behalf of the Company. These loan carry interest rate of 9.00% to 11.50% per annum (previous year: 6.75% to 9.10% per annum). Further, working capital facility have been obtained from one bank which has been secured against assigned trade receivables. This facility carry interest rate of 9.75% per annum (previous year: 9%).

c. Refer note 43 for disclosure of fair values in respect of financial liabilities measured at fair value and amortised cost.

d. The quarterly statements of current assets filed by the Company with banks and financial statements are in agreement with the books of accounts. The auditors have relied on the information provided by the management of the Company.

f. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

g. The Company has not defaulted in repayment of dues during the current financial year.Also terms of the loans were not renegotiated.

h. The Company is required to comply with certain debt covenants as mentioned in the loan agreement for working capital loans and cash credit facilities, failure of which makes the loan to be repaid on demand at the discretion of the bank. During the year, there has been four breach in the financial covenants of current borrowings obtained from two bank. The same has already been classified under current borrowings and there have been no change in the terms of the borrowings obtained from banks.

35. CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities (i) Claims against the Company not acknowledged as debts
	For the year ended March 31, 2024	For the year ended March 31, 2023
Claims made by direct tax authorities:
Income tax (refer note a, b, c and d)	562.53	4.98
Total	562.53	4.98

Notes:

a. In respect of Assessment Year 2012-2013, demand was raised due to disallowance of certain expenses under Section 14A of the Income Tax Act and also certain other disallowances. The amount involved is '' 1.44 Millions (March 31, 2023: '' 1.44 Millions).

b. In respect of Assessment Year 2017-2018, demand was raised due to addition of income under Section 56(2)(viib) of the Income Tax Act and also certain other additions. The amount involved is '' 3.55 Millions (March 31, 2023: '' 3.55 Millions).

c. In respect of Assessment Year 2021-2022, demand was raised due to non grant of credit for TDS, TCS, Advance Tax and self assessment tax.The amount involved is '' 208.27 Millions.

d. In respect of Assessment Year 2022-2023, demand was raised due to non grant of credit for TDS, TCS, Advance Tax and self assessment tax.The amount involved is '' 349.27 Millions.

e. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company also believes that the above issues, when finally settled, are not likely to have any significant impact on the financial position of the Company. The Company does not expect any reimbursements in respect of the above contingent liabilities.

38. EMPLOYEE BENEFIT OBLIGATIONS a. Defined contribution plan

An amount of '' 11.31 Millions [March 31, 2023 : '' 6.16 Millions] for the year has been recognised as an expense in respect of the Company''s contributions towards Provident Fund and an amount of '' 0.26 Millions [March 31, 2023 : '' 0.12 Millions] for the year has been recognised as an expense in respect of Company''s contributions towards Employee State Insurance which are deposited with the government authorities and have been included under employee benefit expenses in the Statement of Profit and Loss.

A. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company has a defined benefit gratuity plan. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service or part thereof in excess of six months subject to a maximum of '' 2.00 Millions. The scheme is unfunded.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.

The Expected contribution to the defined benefit plan in future year i.e March 31, 2025 is '' 2.68 Millions (March 31, 2024: 2.10 Millions).

The weighted average duration of the defined benefit obligation of current year is 4.37 years (March 31, 2023 : 4.70 years).

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

B. Other long-term employee benefits

An amount of 29.79 Millions (March 31, 2023 : 4.88 Millions) pertains to expense towards compensated absences and is included in âemployee benefits expense".

(G) The transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail in arm''s length transactions.

40.CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company measures underlying net debt as total liabilities, comprising interest bearing loans and borrowings, excluding any dues to subsidiaries or group companies less cash and cash equivalents. For the purpose of capital management, total capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company, as applicable.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31, 2023.

41. FINANCIAL INSTRUMENTS:- FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, comprises of loans and borrowings, trade and other payables . The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments in equity shares, loans to related party, trade and other receivables, security deposits, cash and shortterm deposits that are derived directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company''s senior management oversees the management of these risks and advises on financial risks and the appropriate financial risk governance framework for the Company. The board provides assurance to the shareholders that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(i) 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 not exposed to any significant credit risk from its operating activities (except trade receivables), including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and bank loans. The Company''s approach to managing liquidity to ensure , as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company closely monitors its liquidity position and deploys a robust cash management system. The Company manages liquidity risk by maintaining adequate reserves, borrowing liabilities, by continuously monitoring forecast and actual cash flows, profile of financial assets and liabilities. It maintain adequate sources of financing including loans from banks at an optimised cost. The table below provides the details regarding contractual maturities of financial liabilities.

(iii) 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. Market prices comprise three types of risk: interest rate risk, foreign currency rate risk and other price risk.

(a) Interest rate 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. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with variable interest rates.

U.OO/O

(b) Foreign currency rate risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in exchange rates of any currency. The Company''s exposure to the risks of changes in foreign exchange rates relates primarily to the Company''s trade payables and trade receivables in the foreign countries.

Commodity price risk arises due to fluctuation in prices of agro chemical products. The Company has risk management framework aimed at prudently managing the risk arising from volatility in the commodity prices. The Company''s commodity risk is managed centrally through well established control processes. Further the selling price of finished goods fluctuates due to fluctuation in price of agro chemical products and the Company expects that the net impact of such fluctuation would not be material.

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does not have any liability to make variable lease payments for the right-to-use the underlying asset recognised in the financials.

Total cash outflow for short term-leases and leases of low value for the year ended March 31, 2024 was '' 20.78 Millions (March 31, 2023: '' 11.18 Millions).

The Company has leases for office premises, residential properties and storage facilities. With the exception of short-term leases and low value leases, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets to its property, plant and equipment.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Note:

The aggregate amortisation on ROU assets has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

The following assumptions/methods were used to estimate the fair values:

i) The fair values of loan, trade receivables, cash and cash equivalents, other financial assets, trade payables, borrowings, lease liabilities and other financial liabilities are considered to be same as their carrying values due to their short term nature.

ii) The carrying amount of other items carried at amortized cost are reasonable approximation of their fair value.

iii) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Note:

There are no financial assets/liabilities which are measured at fair value and accordingly disclosure for fair value

measurement hierarchy is not required.

45. SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company''s Managing Director assesses the financial performance and position of the Company and makes strategic decision and has been identified as the chief operating decision maker. The Company''s primary business segment is reflected based on principal business activities carried on by the Company. As per Indian Accounting Standard 108, Operating Segments, as notified under the Companies (Indian Accounting Standards) Rules, 2015, the Company operates in one reportable business segment i.e., trading of agro based products. The geographical information analyses the Company''s revenue and trade receivables from such revenue in India and other countries. The Company primarily sells its products in India.

Information about major customers:

Revenue from two customers accounts amounting to '' 7,862.34 Millions contributes for more than 10% of revenue for the year ended March 31, 2024 (March 31, 2023: two customers amounting to '' 6,192.54 Millions).

(i) The Company in its board meeting dated September 2, 2023 had approved acquisition of M/s Kashmir Chemicals, a partnership firm, having its premises at Industrial Growth Centre, Phase-I, Samba, Jammu and Kashmir, in order to further expand its manufacturing capacity. The acquisition has been completed during the quarter ended December 31, 2023.

(ii) Pursuant to approval in the board meeting held on November 8, 2023, the Company has incorporated wholly owned subsidiary in Mauritius by the name Best Agrolife Global on January 19, 2024.

(iii) The Board of Director of Company in its meeting held on March 28, 2024 has approved acquisition of 100% stake in Sudarshan Farm Chemical India Private Limited. The definitive agreements in the connection with the acquisition transaction were executed on March 30, 2024 and the control was acquired on the same date and accordingly Sudarshan Farm Chemical Inida Private Limited became wholly owned subsidiary of the Company. The acquisition have been accounted for as per Ind AS 103- Business Combinations.

51. During the quarter ended September 30, 2023, the Income Tax Department (âthe Department") had conducted a search and seizure operation at the head office of the Company, along with other premises of the Company, subsidiaries and residence of certain KMPs from September 26, 2023 to September 30, 2023 under Section 132 of the Income Tax Act, 1961. List of assets seized by the authorities included of loose documents, hardrives, laptops etc.The Company had provided necessary support, cooperation and documents as requested by the Department during the search and seizure operation. As on date, the Company has not received any notices or summon from the department in this regard. While the uncertainty exists regarding the outcome of the search and seizure carried out by the Department, after considering all available information and facts as of date, the management has not identified the need for any adjustments in the standalone financial statements.

52.OTHER STATUTORY INFORMATION

(a) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company do not have any transactions with struck off companies.

(c) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(d) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company have 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(f) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(g) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(h) The Company is not declared wilful defaulter by any bank or financial institution or government or any government authority.

53. The Board of Directors of the Company have recommended a dividend of '' 3 (30%) per equity share of '' 10 each for the financial year ended March 31, 2024 subject to the approval of shareholders. The Board of Directors of the Company had recommended a dividend of '' 3 (30%) per equity share of '' 10 each for the financial year ended March 31, 2023 which was subsequently approved by the shareholders in the Annual General Meeting held on September 27, 2023 and paid thereof.

54. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The new requirement is applicable with effect from the financial year beginning

on April 1, 2023.The Company has used the accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log), but the same was not enabled from April 1, 2023 to August 7, 2023. Subsequently, the Company migrated to a new version, which includes audit trail (edit log) feature for recording all relevant transactions.

55. The standalone financial statements were approved for issue by the Board of Directors of the Company on May 24, 2024.

Mar 31, 2023

Nature and purpose of reserve Capital reserve

Capital reserve was created on account of loss on business combinations.

Securities premium

Securities premium comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

Retained earnings

Retained earnings refer to the net profit/(loss) retained by the Company for its core business activities. It also includes the gain/(loss) on remeasurement of defined employee benefit obligations.

Revaluation reserve

This represents the cumulative gains and losses arising on the revaluation of land and building. It is not available for distribution as dividend.

a. Cash credit facilities have been obtained from banks which has been secured by first pari passu charge on present and future current assets and movable property, plant and equipment except vehicles. The facilities taken from banks are secured by personal guarantee of promoter Mr. Vimal Kumar, Mrs Vandana Alawadhi and Mr Kamal Kumar and director Mr. Shuvendu Satpathy. These loans carry interest rate of 7.60% to 10.50% per annum (previous year: 7.60% to 11.70% per annum).

b. Working capital loan facility was obtained from banks and financial institution during the year which has been secured by first pari passu charge on present and future current assets and movable property, plant and equipment except vehicles. The facilities taken from banks and financial institution are secured by personal guarantee of promoter Mr. Vimal Kumar and Mrs Vandana Alawadhi and director M. Shuvendu Satpathy on behalf of the Company. These loan carry interest rate of 6.75% to 9.10% per annum (previous year: 6.75% to 8.80% per annum). Further, working capital facility have been obtained from one bank which has been secured against assigned trade receivables. This facility carry interest rate of 9% per annum (previous year: Nil).

c. Refer note 43 for disclosure of fair values in respect of financial liabilities measured at fair value and amortised cost.

Performance obligation

Information about the Company''s performance obligations are summarised below:

Traded goods

The performance obligation is satisfied once the goods are dispatched to the customer.

* The significant increase in contract balances in FY 2022-2023 is mainly due to increase in advance from customers is on account of additional advances against sales to be made during the subsequent period. The year end balances are on account of advances received in the normal course of business.

a In respect of Assessment Year 2012-2013, demand was raised due to disallowance of certain expenses under section 14A of the Income Tax Act and also certain other disallowances. The amount involved is ? 14.42 lakhs (March 31,2022: ? 14.42 lakhs).

b In respect of Assessment Year 2017-2018, demand was raised due to addition of income under section 56(2)(viib) of the Income Tax Act and also certain other additions. The amount involved is ? 35.47 lakhs (March 31, 2022: ? 35.47 lakhs).

c The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its Standalone Financial Statements. The Company also believes that the above issues, when finally settled, are not likely to have any significant impact on the financial position of the Company. The Company does not expect any reimbursements in respect of the above contingent liabilities.

38. Employee benefit obligations

a. Defined contribution plan

An amount of ? 61.64 lakhs [March 31, 2022: ? 35.18 lakhs] for the year has been recognised as an expense in respect of the Company''s contributions towards Provident Fund and an amount of ? 1.24 lakhs [March 31, 2021: ? 1.28 lakhs] for the year has been recognised as an expense in respect of Company''s contributions towards Employee State Insurance which are deposited with the government authorities and have been included under employee benefit expenses in the Statement of Profit and Loss.

A. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The Company has a defined benefit gratuity plan. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service or part thereof in excess of six months subject to a maximum of ? 20.00 lakhs. The scheme is unfunded.

The Expected contribution to the defined benefit plan in future year i.e March 31, 2024 is ? 21.05 lakhs.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

40. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The primary objective of the Company''s capital management is to maximise the shareholder value.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

41. Financial Instruments: Financial risk management objectives and policies

The Company''s principal financial liabilities, comprises of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments in equity shares, loans to related party, trade and other receivables, security deposits, cash and short-term deposits that are derived directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company''s senior management oversees the management of these risks and advises on financial risks and the appropriate financial risk governance framework for the Company. The board provides assurance to the shareholders that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors'' reviews and agrees policies for managing each of these risks, which are summarised below.

(i) 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 not exposed to any significant credit risk from its operating activities (except trade receivables), including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and bank loans. The Company''s approach to managing liquidity to ensure, as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company closely monitors its liquidity position and deploys a robust cash management system. The Company manages liquidity risk by maintaining adequate reserves, borrowing liabilities, by continuously monitoring forecast and actual cash flows, profile of financial assets and liabilities. It maintain adequate sources of financing including loans from banks at an optimised cost. The table below provides the details regarding contractual maturities of financial liabilities.

(iii) Market risk

(a) Interest rate risk:

(b) Foreign currency rate risk:

(c) Other price risk

The Company''s investments are susceptible to market price risk arising from uncertainties about future values of the investment securities. The investment in unlisted equity securities (other than investment in subsidiaries) is not significant.

Commodity Price Risk

Total cash outflow for short term-leases and leases of low value for the year ended March 31, 2023 was ? 111.78 lakhs (March 31,2022: ? 90.55 lakhs).

The Company has leases for office premises, residential properties and storage facilities. With the exception of short-term leases and low value leases, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets to its property, plant and equipment.

Note:

The aggregate amortisation on ROU assets has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

The following assumptions/methods were used to estimate the fair values:

ii) The carrying amount of other items carried at amortized cost are reasonable approximation of their fair value.

iii) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

45. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company''s Managing Director assesses the financial performance and position of the Company and makes strategic decision and has been identified as the chief operating decision maker. The Company''s primary business segment is reflected based on principal business activities carried on by the Company. As per Indian Accounting Standard 108, Operating Segments, as notified under the Companies (Indian Accounting Standards) Rules, 2015, the Company operates in one reportable business segment i.e., trading of agro based products. The geographical information analyses the Company''s revenue and trade receivables from such revenue in India and other countries. The Company primarily sells its products in India.

(i) Details of investments made are given in note 7.

(ii) Details of corporate guarantees issued for the loan taken by the subsidiary companies and outstanding in accordance with Section 186 of the Act read with rules issued thereunder are given in note 40.

50. During the previous year, the Company has acquired 100% controlling interest in Best Crop Science Private Limited on October 13, 2021 through issue of equity shares. Pursuant to approval of shareholders in the annual general meeting held on September 28, 2021, the Company had allotted 16,12,674 fully paid-up equity shares of ? 10 each on a preferential allotment basis at an issue price of ? 630 per share which includes a premium of ? 620 per share for an aggregate consideration of ? 10,159.85 lakhs.

The aforementioned transaction is a non-cash transactions which has been entered with 1 of its director and persons connected with its director during the previous year and hence was covered under the provisions of section 192 of the Act. The Company has complied with the provisions of aforesaid section of the Act, by way of obtaining prior approval of shareholders in the general meeting of the Company.

51. During the previous year, the Company had acquired the business of Agrico Chemicals on February 15, 2022 pursuant to approval of board in the board meeting held on January 25, 2022 to expand the agro chemical business. The purchase consideration amounted to ? 1,777.94 lakhs was to be settled in cash. ? 808.06 lakhs is outstanding as at March 31, 2023 (previous year: ? 1,777.94 lakhs).

a) Business combination

The above transaction qualified as a business combination as per Ind AS 103 - "Business Combinations" and had been accounted by applying the acquisition method wherein identifiable assets acquired and liabilities assumed are fair valued against the fair value of the consideration transferred.

52. Other statutory information