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Notes to Accounts of Rallis India Ltd.

Mar 31, 2023

1. Cost of buildings includes cost of10 shares (March 31,2022 - 10 shares) of '' 50 each fully paid in respect of ownership flats in 2 (March 31,2022- 2 flats) Co-operative Societies.

2. Buildings include assets carried at '' 0.57 lakhs (March 31,2022''0.63 lakhs) where the conveyance in favor of the Company has not been completed.

3. Plant and equipment includes general plant and machinery, electrical installations and equipments, laboratory equipments and computers and data processing units.

4. Leasehold land include assets carried at '' 1,384.43 lakhs (as at March 31,2022''1,401.14 lakhs) for which the Company is in process of obtaining an extension for the fulfilment of pre-conditions of lease upon expiry of timeline.

5. Plant and equipment includes a unit having carrying cost of '' Nil (March 31,2022''1,002.63 lakhs ) and land and building with a carrying cost of '' Nil (March 31,2022''715.71 lakhs) are subject to first charge to secure two of the Company''s bank loans and other corporate body.

6. The Company has not capitalised any borrowing cost during the current year (March 31,2022 - Nil).

7. The Company has recognised an impairment loss of '' Nil during the current year (March 31,2022 - '' Nil).

8. The figures in italics are for the previous year.

9. Also refer Note no.44 for Title Deeds of Immovable Properties not held in the name of the Company, under the head Plant, Property and Equipment.

1. The aggregate depreciation expense on Right-of-use asset is included under depreciation and amortisation expense in the Statement of Profit and Loss Note 31.

2. Refer Note no. 35 "Leasesâ for Right-of-use Assets movement.

3. The figures in italics are for the previous year.

4. Refer Note no. 44 for Title deeds of Immovable Property not held in the name of the Company, under the head Right-of-use asset for the previous year.

1. Buildings include 2 flats (March 31, 2022 - 2 flats) which are classified as Investment Property by the Company in accordance with IND AS-40 "Investment Propertyâ

2. Cost of buildings includes cost of 2 shares (March 31,2022- 2 shares) of '' 100 each fully paid in respect of ownership flats in 2 (March 31,2022- 2 flats) Co-operative Societies.

3. Rental income recognised by the Company during the year ended March 31,2023 was '' 14.30 lakhs (March 31,2022: '' 21.00 lakhs) and was included in ''Other income'' (refer Note 25).

4. The Company has not capitalised any borrowing cost during the current year (March 31,2022 - Nil).

5. Total fair value of Investment Property is '' 724.39 lakhs (March 31,2022''664.03 lakhs). Refer footnote (a) and (b).

6. The Company has not recognised any impairment loss during the year (March 31,2022 Nil).

7. The figures in italics are for the previous year.

(a) Fair Value Heirarchy

The fair value of investment property has been determined by external independent property valuers as defined under Rule(2) of Companies (Registered Valuers and Valuation) Rules 2017, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categoried as a level 3 fair value based on the inputs to the valuation techniques used.

(b) Description of Valuation Technique used:

The Company obtains Independent Valuations of its investment property as per requirement of Ind AS 40. The fair value of the investment property have been derived using the Direct Comparison Method.The direct comparison approach involves a comparison of the investment property to similar properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located in close proximity to the investment property; these instances have been assessed for their locational comparative advantages and disadvantages while arriving at the indicative price assessment for investment property.

Goodwill includes amount of ? 16,522.26 lakhs (March 31, 2022 ? 16,522.26 lakhs) allocated to Seeds business of Rallis India Limited (earlier named as Metahelix Life Sciences Ltd). The estimated value-in-use of this Cash Generating Unit "CGU" is based on the future cash flows using a 2.00 % (March 31,2022 3.00%) annual growth rate for periods subsequent to the forecast period of 5 years and discount rate of 12.2 % (March 31,2022 8.7%).

Goodwill of ? 3,060.05 lakhs (March 31, 2022 ? 3,060.05 lakhs) has been allocated to Geogreen business of Rallis India Limited (earlier named as Zero Waste Agro Organics Ltd).The estimated value-in-use of this Cash Generating Unit "CGU" is based on the future cash flows using a 5.00 % (March 31,2022 5.00%) annual growth rate for periods subsequent to the forecast period of 5 years and discount rate of 12.2% (March 31,2022 8.7%).

An analysis of the sensitivity of the computation to a combined change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonably probable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount.

During the year ended March 31, 2023, the company reviewed the carrying value of individual Intangible Assets under Development (IAUD) and determined their future economic benefits in accordance with IND AS 36 "Impairment of Assets" and the Company''s Accounting Policy. As a result of which the Company has determined that the carrying value of technical know-how related to seed development technology for some of the IAUDs was impaired. The impairment was primarily driven by changes in market conditions and significant changes in market segmental requirements. As a result of the impairment, the Company has recognized an expense of T 3,040.96 lakhs for the year ended March 31,2023.

1. The Company has not capitalised any borrowing cost during the current year (March 31,2022- Nil).

2. The Company has recognised impairment loss during the current year '' NIL (March 31,2022 - '' 20.37 lakhs).

3. The Company has internally developed Seed development technology for producing hybrid seeds, which is Technical Knowhow. The Carrying amount of Seed development technology of '' 463.01 lakhs (March 31,2022''425.50 lakhs) will be fully amortized in next 3 years.

4. The figures in italics are for the previous year.

Technical Knowhow project plans are assessed on annual basis and all the projects are executed as per rolling annual plan.

*Other projects consists of projects which have been grouped together as the individual project value is less than 10% of the total amount of intangible asset under development.

Also refer Note 32 : Other Expenses

(a) There is no amount due from director, other officer of the Company or firms in which any director is a partner or private companies in which any director is a director or member at anytime during the reporting period.

(b) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

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

(i) The cost of inventories recognised as an expense during the year was '' 1,94,001.42 lakhs (March 31,2022''1,62,487.22 lakhs).

(ii) The cost of inventories recognised as an expense includes '' 5,699.26 lakhs (March 31,2022''2,763.13 lakhs) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced by '' 121.57 lakhs (March 31,2022''419.27 lakhs) in respect of reversal of such writedowns. Out of the total expense of '' 5,699.26 lakhs, the company has recognised '' 5,281.43 lakhs as provision for slow-moving seeds inventory arising due to re-assessment of future sales potential and changing market conditions.

(iii) The mode of valuation of inventories has been stated in note 3.15

(iv) Bank overdrafts, cash credit facility are secured by first paripassu charge on inventories (including raw material, finished goods and work-inprogress) and book debts (refer note 11 and 18).

(i) The credit period ranges from 7 days to 180 days.

(ii) Before accepting any new customer, the Company assesses the potential customer''s credit quality and defines credit limits by customer. Limits attributed to customers are reviewed periodically. Of the trade receivable balance as at March 31, 2023, Customers with outstanding receivables greater than 5% amount to '' Nil (as at March 31,2022''6,312.57 lakhs are due from two customers for which the credit risk is mitigated by export credit guarantee). There are no other customer who represent more than 5% of the total balance of trade receivable.

(iii) Neither trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

Summary of borrowing arrangements

(i) Sales tax deferral scheme:

The loan is repayable in annual installments which ranges from a maximum of T 113.11 lakhs to a minimum of T 24.12 lakhs over the period stretching from April 1,2023 to March 31,2027. The amount outstanding is free of interest.

The balance outstanding as at March 31,2023 is T379.28 lakhs (March 31,2022 T 478.34 lakhs) of which T 113.11 lakhs (March 31, 2022 T 89.06 lakhs) has been grouped under note 18 Current Borrowings which are payable in next 12 months.

(iii) Utilisation of borrowed funds and share premium

The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

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

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(i) These bank overdrafts and cash credit facility are secured by first paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 10 and 11).

(ii) The weighted average effective interest rate on the bank loans is 8.06% p.a.(for March 31,2022 7.15 % p.a.).

(iii) Total amount of working capital credit limits is T 23,550 lakhs (March 31,2022: T 23,550 lakhs) from Consortium of Banks led by State Bank of India. These facilities are secured against trade receivables and inventories. As on March 31, 2023, amount utilised by the Company is T 15,824.00 lakhs (As at March 31,2022 : T 10,260.37 lakhs).

(iv) Total amount of Unsecured working capital credit limits is T 47,550 lakhs (March 31,2022: T 44,150 lakhs) from multiple banks. As on March 31,2023, amount utilised by the Company is T 12,451.70 lakhs (As at March 31,2022 : T 29,430.13 lakhs).

(v) During the year, the Company raised & repaid T 7,500.00 lakhs commercial papers borrowed for 85 days @ 7.05% p.a

Due to the numerous uncertainties and variables associated with certain assumptions and judgments, and the effects of changes in the regulatory and legal environment, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. The Company regularly monitors its estimated exposure to such loss contingencies and, as additional information becomes known, may change its estimates significantly. However, no estimate of the range of any such change can be made at this time.

Note 2:

The provision for employee benefits includes gratuity, supplemental pay on retirement for certain employees, ex-director pension liability and compensated absences. The increase/decrease in the carrying amount of the provision for the current year is mainly on account of net impact of incremental charge for current year and benefits paid in the current year due to retirement and resignation of employees. For other disclosures, refer note 36.

34: Segment information

Products and services from which reportable segments derive their revenue

Information reported to the chief operating decision maker (CODM) for the purpose of resources allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. No operating segments have been aggregated in arriving at the reportable segments of the Company.

The Company has determined its business segment as "Agri -Inputs" comprising of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds. The other segment includes "Polymer" and other non reportable elements.

(i) Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (March 31,2022 ?Nil). The accounting policies of the reportable segments are the same as described in note 3.21.

(ii) Segment profit represents the profit before tax earned by each segment without allocation of central administration, director remuneration, director fees and commission, other income, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

For the purpose of monitoring segment performance and allocation resources between segments:

- All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, fixed deposits and interest accrued thereon.

- All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, interest accrued on loans, provision for supplemental pay, ex-director pension scheme, unpaid dividend, current and deferred tax liabilities.

36: Employee benefit plans Defined contribution plans

Contribution to provident fund and Employees'' State Insurance Corporation (ESIC)

Amount recognised as expense and included in the Note 29 â in the head "Contribution to Provident and other funds" for March 31, 2023: T932.42 lakhs (March 31,2022: T882.28 lakhs).

Defined benefit plans

The Company offers its employees, defined-benefit plans in the form of a gratuity scheme (a lump sum amount), a supplemental pay scheme (a life long pension) and ex-Director pension liability. The gratuity scheme covers substantially all regular employees, Director pension liability covers ex-Director and supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable. Ex-director pension liability and supplemental pay scheme are not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method.

These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

Information about major customers

No single customer contributed more than 10% to the Company''s revenue in FY 2022-23 and 2021-22.

35: Leases

The Company incurred T 1,893.32 lakhs for the year ended March 31,2023 (March 31,2022 T 1,183.22 lakhs) towards expenses relating to short-term leases. Lease rent incurred and recoverable from employees and not falling under the scope of IND AS 116 amounted to T 110.73 lakhs (March 31,2022 T 114.59 lakhs), refer Note 32. The total cash outflow for leases is T 3,934.29 lakhs for the year ended March 31,2023 (March 31,2022 T 3,045.08 lakhs), including cash outflow of short-term leases and lease rent recoverable from employees.

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 plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets. Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

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

Defined contribution plans

The Company makes provident fund contributions to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company in case of certain locations. The Company is liable for contributions and any deficiency compared to interest computed based on the rate of interest declared by the Central Government under the Employees'' Provident Fund Scheme, 1952 and recognises, if any, as an expense in the year it is determined.

The Company operates Provident Fund Scheme and the contributions are made to recognised fund. The Company is required to offer a defined benefit interest rate guarantee on provident fund balances of employees. The exempted funds guarantees the interest rate on provident fund investments which is equal to or higher than the rate declared by the Regional Provident Fund Commissioner (RPFC) on the provident fund corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as on March 31, 2023 and March 31,2022.

Amount recognised as expense and included in the Note 29 â in the head "Contribution to Provident and other funds" for the year ended March 31,2023 41,076.49 lakhs (for March 31,2022 41,025.92 lakhs).

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

1. If the discounting rate is 100 basis point higher (lower), the defined benefit obligation would decrease by 4483.84 lakhs (increase by 4554.99 lakhs) (as at March 31,2022: decrease by 4469.38 lakhs (increase by 4538.98 lakhs)).

2. If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by 4346.21 lakhs (decrease by 4306.88 lakhs) (as at March 31,2022: increase by 4331.96 lakhs (decrease by 4293.18 lakhs)).

3. If the life expectancy increases (decreases) by 1 year, the defined benefit obligation would increase by 470.98 lakhs (decrease by 471.82 lakhs) (as at March 31,2022: increase by 469.32 lakhs (decrease by 470.15 lakhs)).

The sensitivity analysis presented above 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 one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of 4 320.27 lakhs (as at March 31,2022 4 307.17 lakhs) to the defined benefit plans during the next financial year.

As at March 31, 2023, the fair value of the assets of the fund and the accumulated members'' corpus is 412,881.24 lakhs and 412,586.46 lakhs respectively. In accordance with an assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.

Compensatory absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of 4413.05 lakhs (March 31,2022 4323.72 lakhs) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.

37: Financial instruments Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 17.1 and 18, lease liabilities as per note 17.2, offset by cash and bank balances) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

Financial risk management objectives

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivatives financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade financial instrument, including derivative financial instruments, for speculative purposes.

The corporate treasury function reports quarterly to the Company''s audit committee that monitors risks and policies implemented to mitigate risk exposures.

Market risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk including forward foreign exchange contracts to hedge the exchange rate risk arising on imports and exports.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR, JPY, GBP, AED and CHF.

The following table details the Company''s sensitivity to a 5% increase and decrease in the T against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit or equity where the T strengthens 5% against the relevant currency. For a 5% weakening of the '' against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Derivative instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to accounts receivable and accounts payable. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

The line item in the Balance Sheet that includes the above hedging instruments are "other financial assets and other financial liabilities". Equity risk

There is no material equity risk relating to the Company''s equity investments which are detailed in note 7 "Other investments". The Company''s equity investments majorly comprises of strategic investments rather than trading purposes.

Interest risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument that will fluctuate because of changes in market rates. The Company''s exposure to the risk of changes in market rates relates primarily to the Company''s non-current debt obligation with floating interest rates. The Company''s policy is generally to undertake non-current borrowing using facilities that carry floating interest rate.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non-current liabilities are disclosed in note no. 18.

Cash flow sensitivity analysis for variable rate instrument

Current variable interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by 735.27 lakhs (increased by 735.27 lakhs) and as at March 31,2022: decreased by 737.29 lakhs (increased by 737.29 lakhs).

Current fixed interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by 7 Nil (increased by 7 Nil) and as at March 31,2022 : decreased by 7 0.20 lakhs (increased by 7 0.20 lakhs).

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers.The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 11- Trade receivable).

b. Tax contingencies Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, which are in dispute, have been tabulated below:
Nature of tax	As at March 31, 2023	As at March 31, 2022
Sales tax	925.66	1,240.14
Excise duty	30.11	30.11
C ustoms duly	814.71	799.71
Income tax''*	17.0ii.06	173 38.04
Service tax	i.167.4i	3,124.70
Goods and Service tax	95.66	95.66

* Excludes '' 1,686.56 lakhs (March 31,2022''1,509.70 lakhs) deposits paid under protest.

The management believes that the claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of above matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period. Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.

c. Amount in respect of other claims
Nature of claim	As at March 31, 2023	As at March 31, 2022
Matters relating to employee benefits	27.95	15.95
Others (claims related to contractual disputes)	5,221.08	463.28

39: Contingent liabilities

The Company is involved in a number of appellate, judicial and arbitration proceedings (including those described below) concerning matters arising in the course of conduct of the Company''s businesses. Some of these proceedings in respect of matters under litigation are in early stages, and in some other cases, the claims are indeterminate. A summary of claims asserted on the Company in respect of these cases have been summarised below.

a. Guarantees

Guarantees issued by bank on behalf of the Company as on March 31,2023 is T 1,979.47 lakhs (March 31, 2022 T 715.81 lakhs) these are covered by the charge created in favour of the said Company''s bankers by way of hypothecation of stock and debtors.

Other claims include demand notices received from Mumbai Port Authority (MBPA) on four godowns taken on lease by the company from MBPA towards differential arrears of rentals for the years 2012 upto 2022 for these godowns. Based on the legal advice received by the Company, the demand raised by MBPA is being contested and Company is also in process of filing the writ petition

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:

(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount;

(ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations;

(iv) there are significant factual issues to be resolved; and/or

(v) there are novel legal issues presented.

However, in respect of the above matters, management does not believe, based on currently available information, that the outcomes of the litigation, will have a material adverse effect on the Company''s financial condition, though the outcomes could be material to the Company''s operating results for any particular period, depending, in part, upon the operating results for such period.

40: Commitments

(i) Estimated amount of contract with minimum commitment for plant activity 2 2,278.50 lakhs (March 31,2022 2 3,256.50 lakhs).

(ii) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is 2 3,052.37 lakhs as at March 31,2023 (March 31,2022 2 9,095.55 lakhs) and Intangible assets is 2 225.27 lakhs as at March 31,2023 (March 31,2022 2 502.95 lakhs) against which advances paid aggregate 2 140.50 lakhs as at March 31,2023 (March 31,2022 2 1,232.86 lakhs).

The Company has entered into above mentioned transactions in ordinary course of business and the Company does not have any relationship with these struck off Companies.

50: Exceptional item as disclosed in Statement of Profit and Loss for the year ended March 31, 2023, comprises profit on sale of land (net of costs) of T 62.41 lakhs (March 31,2022 T Nil)

51: Subsequent event

The Board of Directors at its meeting held on April 25, 2023 has recommended a dividend of T 2.50 per equity share (March 31,2022 T 3 per equity share), subject to shareholders approval at annual general meeting.

52: The MCA wide notification dated March 24, 2021 has amended Schedule lll to the Companies Act, 2013 in respect of certain disclosures. The Company has incorporated appropriate changes in the financial statements of March 31,2023 and March 31,2022.

Mar 31, 2022

Footnotes:

1. Buildings include 2 flats (March 31, 2021 - 2 flats) which are reclassified as Investment Property by the Company in accordance with IND AS-40 "Investment Propertyâ.

2. Cost of buildings includes cost of 2 shares (March 31,2021- 2 shares) of T 100 each fully paid in respect of ownership flats in 2 (March 31,2021- 2 flats) Co-operative Societies.

3. The Company has not capitalised any borrowing cost during the current year (March 31,2021 - Nil).

4. Total fair value of Investment Property is T 664.03 lakhs (March 31,2021 T 635.22 lakhs).Refer footnote (a) and (b).

5. The Company has not recognised any impairment loss during the year (March 31,2021 Nil) .

6. The figures in italics are for the previous year.

(a) Fair Value Heirarchy

The fair value of investment property has been determined by external independent property valuers, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the valuation techniques used.

(b) Description of Valuation Technique used:

The Company obtains Independent Valuations of its investment property as per requirement of Ind AS 40. The fair value of the investment property has been derived using the Direct Comparison Method.The direct comparison approach involves a comparison of the investment property to similar properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located in close proximity to the investment property; these instances have been assessed for their locational comparative advantages and disadvantages while arriving at the indicative price assessment for investment property.

The Company has not earned any material rental income on the above properties.

Goodwill includes amount of 2 16,522.26 lakhs (March 31, 2021 2 16,522.26 lakhs) allocated to Seeds division of Rallis India Limited (earlier named as Metahelix Life Sciences Ltd). The estimated value-in-use of this Cash Generating Unit "CGU" is based on the future cash flows using a 3.00 % (March 31, 2021 5.00%) annual growth rate for periods subsequent to the forecast period of 4 years and discount rate of 8.7 % ( March 31,2021 14.64%).

Goodwill of 2 3,060.05 lakhs (March 31, 2021 2 3,060.05 lakhs) has been allocated to Geogreen division of Rallis India Limited (earlier named as Zero Waste Agro Organics Ltd).The estimated value-in-use of this Cash Generating Unit "CGU'''' is based on the future cash flows using a 5.00 % (March 31, 2021 5.00%) annual growth rate for periods subsequent to the forecast period of 4 years and discount rate of 8.7% ( March 31,2021 14.64%).

(i) The cost of inventories recognised as an expense during the year was T 1,62,487.22 lakhs ( March 31,2021 T 1,48,770.88 lakhs).

(ii) The cost of inventories recognised as an expense includes T 2,763.13 lakhs (March 31,2021 T 1,259.81 lakhs) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced by T 419.27 lakhs (March 31,2021 T 248.17 lakhs) in respect of reversal of such writedowns.

(iii) The mode of valuation of inventories has been stated in note 3.15

(iv) Bank overdrafts, cash credit facility and short-term loan from bank are secured by first paripassu charge on inventories (including raw material, finished goods and work-in-progress) and book debts (refer note 11 and 18).

(i) The credit period ranges from 15 days to 180 days.

(ii) Before accepting any new customer, the Company assesses the potential customer''s credit quality and defines credit limits by customer. Limits attributed to customers are reviewed annually. Of the trade receivable balance as at March 31, 2022, receivables amounting to T 6,312.57 lakhs are due from two customers (as at March 31,2021 T 8,810.62 lakhs are due from three customers) for which the credit risk is mitigated by export credit guarantee. There are no other customer who represent more than 5% of the total balance of trade receivable.

(iii) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

The Company intends to dispose off Freehold land and Buildings which it no longer utilises in the next 12 months. The Company is currently in negotiation with some potential buyers. No impairment loss was recognised on reclassification of the assets as held for sale nor as at reporting date as the management of the Company expect that the fair value (estimated based on the recent market prices of similar assets in similar locations) less costs to sell is higher than the carrying amount.

The Company has issued one class of equity shares having a par value of T 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Summary of borrowing arrangements

(i) Sales tax deferral scheme:

The loan is repayable in annual installments which ranges from a maximum of T 113.11 lakhs to a minimum of T 24.12 lakhs over the period stretching from April 1,2022 to March 31,2027. The amount outstanding is free of interest.

The balance outstanding as at March 31, 2022 is T 478.34 lakhs (March 31, 2021 T 522.64 lakhs) of which T 89.06 lakhs (March 31, 2021 T 54.30 lakhs) has been grouped under note 18 Current Borrowings which are payable in next 12 months.

(iii) Utilisation of borrowed funds and share premium

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

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(i) These bank overdrafts and cash credit facility are secured by first paripassu charge on inventories (including raw material, finished goods and work-in-progress) and book debts (refer note 10 and 11).

(ii) The weighted average effective interest rate on the bank loans is 7.15% p.a.(for March 31,2021 7.12 % p.a.).

(iii) Total amount of working capital credit limits is T 23,550 lakhs (March 31,2021 T 23,550 lakhs) from Consortium of Banks led by State Bank of India. These facilities are secured against trade receivables and inventories. As on March 31,2022, amount utilised by the Company is T 10,260.37 lakhs (As at March 31,2021 : T 8,680.27 lakhs).

(iv) Refer Note 45 for Note on Borrowing based on security of inventory & bad debts.

Note 2:

The provision for employee benefits includes gratuity, supplemental pay on retirement, director pension liability and compensated absences. The increase/decrease in the carrying amount of the provision for the current year is mainly on account of net impact of incremental charge for current year and benefits paid in the current year due to retirement and resignation of employees . For other disclosures, refer note 36.

34. Segment information

Products and services from which reportable segments derive their revenues

The Company has determined its business segment as "Agri -Inputs" comprising of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds .The other segment includes "Polymer" and other non reportable elements.

(i) Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (March 31,2021 ? Nil). The accounting policies of the reportable segments are the same as described in note 3.21.

(ii) Segment profit represents the profit before tax earned by each segment without allocation of central administration cost, director remuneration, director fees and commission, other income, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

For the purpose of monitoring segment performance and allocation of resources between segments:

- All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, fixed deposits and interest accrued thereon.

- All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, interest accrued on loans, provision for supplemental pay, Director pension scheme, unpaid dividend, current and deferred tax liabilities.

Information about major customers

No single customer contributed more than 10% to the Company''s revenue in FY 2021-22 and 2020-21.

35. Leases

The Company incurred T 1,183.22 lakhs for the year ended March 31,2022 (March 31,2021 T 1,172.48 lakhs) towards expenses relating to short-term leases. Lease rent incurred and recoverable from employees and not falling under the scope of IND AS 116 amounted to T 114.59 lakhs (March 31, 2021 T 105.85 lakhs), (refer Note 32). The total cash outflow for leases is T 3,045.08 lakhs for the year ended March 31,2022 (March 31,2021 T 2,966.03 lakhs), including cash outflow of short-term leases and lease rent recoverable from employees.

36. Employee benefit plans Defined contribution plans

Contribution to provident fund and ESIC

Amount recognised as expense and included in the Note 29 - in the head "Contribution to Provident and other funds" for March 31,2022 T 882.28 lakhs ( March 31,2021 T 781.10 lakhs).

Defined benefit plans

The Company offers its employees, defined-benefit plans in the form of a gratuity scheme (a lump sum amount), a supplemental pay scheme (a life long pension) and Director pension liability. The gratuity scheme covers substantially all regular employees, Director pension liability covers Managing Director and supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, director pension liability and supplemental pay scheme are not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method.

These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk:

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets. Longevity risk:

Salary risk

1. If the discounting rate is 100 basis point higher (lower), the defined benefit obligation would decrease by 2 469.38 lakhs (increase by 2 538.98 lakhs) (as at March 31,2021: decrease by 2 462.16 lakhs (increase by 2 532.02 lakhs)).

2. If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by 2 331.96 lakhs (decrease by 2 293.18 lakhs) (as at March 31,2021: increase by 2 313.88 lakhs (decrease by 2 279.04 lakhs)).

3. If the life expectancy increases (decreases) by 1 year, the defined benefit obligation would increase by 2 69.32 lakhs (decrease by 2 70.15 lakhs) (as at March 31,2021: increase by 2 73.02 lakhs (decrease by 2 73.82 lakhs)).

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of 2 307.17 lakhs (as at March 31,2021 2 33.26 lakhs) to the defined benefit plans during the next financial year.

The Company operates Provident Fund Scheme and the contributions are made to recognised fund. The Company is required to offer a defined benefit interest rate guarantee on provident fund balances of employees. The interest rate guarantee is payable to the employees for the year when the exempted fund declares a return on provident fund investments which is less than the rate declared by the Regional Provident Fund Commissioner (RPFC) on the provident fund corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as on March 31,2022 and March 31,2021.

Amount recognised as expense and included in the Note 29 - in the head "Contribution to Provident and other funds" for March 31,2022 T 1,025.92 lakhs ( for March 31,2021 T 930.96 lakhs).

As at March 31,2022, the fair value of the assets of the fund and the accumulated members'' corpus is T 11,674.85 lakhs and T 11,386.70 lakhs respectively. In accordance with an assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.

Compensatory absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of T 323.72 lakhs (March 31, 2021 T 370.63 lakhs) has been recognised in the Standalone Statement of Profit and Loss on account of provision for long-term employment benefit.

37. Financial instruments Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The Company is not subject to any externally imposed capital requirements.

(i) Debt is defined as long-term borrowings, short-term borrowings and current maturities of long term borrowings (excluding financial guarantee contracts), as described in notes 17.1 and 18.

Fair value hierarchy

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Financial risk management objectives

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The corporate treasury function reports quarterly to the Company''s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

Market risk

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR, JPY and GBP

The following table details the Company''s sensitivity to a 5% increase and decrease in the T against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit or equity where the T strengthens 5% against the relevant currency. For a 5% weakening of the T against the relevant currency, there would be a comparable impact on the profit or equity and the balances below would be negative.

Derivative instruments:

The Company, basis their assessment, believes that the probability of the occurrence of their forecasted transactions is not impacted by COVID-19 pandemic.

Equity risk

Interest risk

At the end of reporting period, the Company had the following fixed and variable interest rate borrowings and fixed interest rate financial assets:

Cash flow sensitivity analysis for variable rate instrument

Current variable interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by 2 37.29 lakhs (increased by 2 37.29 lakhs) (as at March 31,2021: decreased by 2 5.96 lakhs (increased by 2 5.96 lakhs)).

Current fixed interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by 2 0.20 lakhs (increased by 2 0.20 lakhs) (as at March 31,2021 decreased by 2 14.55 lakhs (increased by 2 14.55 lakhs)).

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposures are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 11- Trade receivable).

The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.

Liquidity risk management

All current financial liabilities are repayable within one year. The contractual maturities of non-current liabilities are disclosed in note no. 18.

Liquidity risk table

The following tables detail the Company''s remaining contractual maturity for its non-derivative and derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

39. Contingent liabilities

a. Guarantees

Guarantees issued by bank on behalf of the Company as on March 31,2022 is T 715.81 lakhs (March 31,2021 T 142.96 lakhs) these are covered by the charge created in favour of the said Company''s bankers by way of hypothication of stock and debtors.

b. Tax contingencies

Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, which are in dispute, have been tabulated below:

Nature of tax	As at March 31, 2022	As at March 31, 2021
Sales lax	1,240.14	1,204.5 7
Ixcise duty	30.11	30.11
C ustoms duty	799.71	799.71
Income tax*	17,3 38.04	15,05 1.88
Service tax	3,124.70	3,138.41
Goods and Service tax	95.66	2 7.87

40 Commitments

(i) Estimated amount of contract with minimum commitment for plant activity 2 3,256.50 lakhs (March 31,2021 2 1,184.50 lakhs).

(ii) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is 2 9,095.55 lakhs as at March 31,2022 (March 31,2021 2 9,178.70 lakhs) and Intangible assets is 2 502.95 lakhs as at March 31,2022 (March 31,2021 2 890.84 lakhs) against which advances paid aggregate 2 1232.86 lakhs as at March 31,2022 ( March 31,2021 2 781.37 lakhs).

During the year, the Company has also incurred 2 142.91 lakhs (March 31,2021 2 207.91 lakhs) towards capital research and development expenditure which is included under capital work-in-progress.

The total amount included in intangible assets under development (net of provision) as at March 31, 2022 is 2 7,432.73 lakhs (as at March 31,2021 2 5,877.18 lakhs).

Footnote:

The above figures include the amounts based on separate accounts for the Research and Developments ("R&Dâ) Centre recognised by the Department of Scientific & Industrial Research ("DSIRâ), Ministry of Science and Technology for in-house research (consonance with the DSIR guidelines for in-house R & D Centre will be evaluated at the time of filing the return with DSIR).

49. Exceptional item as disclosed in Profit and Loss Statement for the year ended March 31,2021, comprises profit on sale of flats (net of costs).

50. The Company does not have any transactions with any defunct companies.

51. Subsequent event

The Board of Directors at its meeting held on April 21,2022 has recommended a dividend of ? 3 per equity share (March 31,2021 ? 3 per equity share), subject to shareholders approval at annual general meeting.

52. The MCA wide notification dated March 24, 2021 has amended Schedule lll to the Companies Act, 2013 in respect of certain disclosures. The Company has incorporated appropriate changes in the above results.

Mar 31, 2019

1. Corporate Information

Rallis India Limited (the ''''Company'''') is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company''s shares are listed on National Stock Exchange and Bombay Stock Exchange. It has been engaged primarily in the business of manufacture and marketing of Agri Inputs. The Company has its manufacturing facilities in India and sells both in India and across the globe. The Company''s registered office is at 156/157, 15th Floor, Nariman Bhavan, 227 Nariman Point, Mumbai 400 021.

Tata Chemicals Limited ("Tata Chemicals") owns 50.06% of the Company''s equity share capital as at 31 March 2019.

The financial statements for the year ended 31 March, 2019 were approved by the Board of Directors and authorised for issue on 25 April, 2019.

2. Recent accounting pronouncement

Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2019 has notified the following new Ind AS which the Company has not applied as they are effective for annual periods beginning on or after April 1, 2019:

IND AS 116-Leases:

The new standard on leases sets out the principles for the recognition, measurement, presentation and disclosure of the leases. The core objective of this standard is to ensure that lessees and lessors provide relevant information in a manner that faithfully represent those transactions.

The Company is required to adopt Ind AS 116, Leases from 1 April, 2019. Ind AS 116 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard - i.e. lessors continue to classify leases as finance or operating leases. It replaces existing leases guidance, Ind AS 17, Leases.

The Company has completed an initial assessment of the potential impact on its standalone financial statements but has not yet completed its detailed assessment. The quantitative impact of adoption of Ind AS 116 on the standalone financial statements in the period of initial application is not reasonably estimable as at present.

- the total assets and liabilities on the balance sheet will increase with a decrease in net total assets, due to the depreciation of right of use assets being on a straight-line basis whilst the lease liability reduces by the principal amount of repayments;

- Interest expense will increase due to the unwinding of the effective interest rate implicit in the lease liability. Interest expense will be greater earlier in a lease''s life, due to the higher principal value, causing profit variability over the term of lease. This effect may be partially mitigated due to the number of leases held by the Company at various stages of their terms; and

- operating cash flows will be higher and financing cash flows will be lower, as repayment of the principal portion of all lease liabilities will be classified as financing activities.

The Company plans to apply Ind AS 116 initially on 1 April 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting Ind AS 116 will be recognised as an adjustment to the opening balance of retained earnings at 1 April 2019, with no restatement of comparative information.

The Company plans to apply the practical expedient to grandfather the definition of a lease on transition. This means that it will apply Ind AS 116 to all contracts entered into before 1 April 2019 and identified as leases in accordance with Ind AS 17.

In addition to the above, the following amendments to existing standards have been issued, are not yet effective and are not expected to have a significant impact on the Company''s standalone financial statements:

- Amendments to Ind AS 103, Business Combinations, and Ind AS 111, Joint Arrangements: This interpretation clarifies how an entity accounts for increasing its interest in a joint operation that meets the definition of a business.

- Amendments to Ind AS 109, Financial Instruments: amendments relating to the classification of particular pre payable financial assets.

- Amendments to Ind AS 12, Income Taxes, clarify that all income tax consequences of dividends (including payments on financial instruments classified as equity) are recognized consistently with the transactions that generated the distributable profits - i.e. in profit or loss, other comprehensive income or equity. Further Appendix C, uncertainty over income tax treatments has been added to clarify how entities should reflect uncertainties over income tax treatments, in particular when assessing the outcome a tax authority might reach with full knowledge and information if it were to make an examination.

- Amendment to Ind AS 19, Employee Benefits - The amendment to Ind AS 19 clarifies that on amendment, curtailment or settlement of a defined benefit plan, the current service cost and net interest for the remainder of the annual reporting period are calculated using updated actuarial assumptions - i.e. consistent with the calculation of a gain or loss on the plan amendment, curtailment or settlement. This amendment also clarifies that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognized in profit or loss. The entity then determines the effect of the asset ceiling after plan amendment, curtailment or settlement. Any change in that effect is recognized in other comprehensive income (except for amounts included in net interest).

- Amendments to Ind AS 23, Borrowing Costs, clarify that the general borrowings pool used to calculate eligible borrowing costs excludes only borrowings that specifically finance qualifying assets that are still under development or construction.

Impact on adoption of above changes in standards is not material.

Footnotes:

1. Cost of buildings includes cost of 30 shares (31 March, 2018 - 30 shares) of Rs. 50 each fully paid in respect of ownership flats in 3 (31 March, 2018- 3 flats) Co-operative Societies.

2. Buildings include assets carried at Rs. 0.82 lakhs (31 March, 2018 Rs. 0.88 lakhs) where the conveyance in favor of the Company has not been completed.

3. Plant and equipment includes general plant and machinery, electrical installations and equipments, laboratory equipments and computers and data processing units. In addition, the Company''s obligations under finance leases are secured by the lessor''s title to the leased assets.

4. Leasehold land include assets carried at Rs. 1,451.28 lakhs (as at 31 March, 2018 Rs. 209.56 lakhs) for which the Company is in process of obtaining an extension for the fulfilment of pre-conditions of lease upon expiry of timeline.

5. The Company has not capitalised any borrowing cost during the current year (31 March, 2018 - Nil).

6. The Company has not recognised any impairment loss during the current year (31 March, 2018 - Nil).

7. The figures in italics are for the previous year.

Footnotes:

1. Buildings includes 10 flats (31 March, 2018 - 10 flats)which are classified as Investment property by the Company in accordance with IND AS-40 âInvestment Property".

2. Cost of buildings includes cost of 35 shares (31 March, 2018 - 35 shares) of Rs. 50 each fully paid and cost of 7 shares (31 March, 2018- 7 shares) of Rs. 100 each fully paid in respect of ownership flats in 7 (31 March, 2018- 7 flats) Co-operative Societies.

3. The Company has not capitalised any borrowing cost during the current year (31 March, 2018 - Nil).

4. The Company has not recognised any impairment loss during the current year (31 March, 2018 - Nil).

5. Total fair value of Investment Property is Rs. 31,356.16 lakhs (31 March, 2018 Rs. 31,356.16 lakhs).

6. The figures in italics are for the previous year.

Fair Value Heirarchy

The fair value measurement for all of the investment property has been categoried as a level 3 fair value based on the inputs to the valuation techniques used.

Description of Valuation Technique used:

Note:

(i) During the year ended 31 March, 2018, the Board of Directors of the Company had approved the Scheme of Amalgamation ("Scheme") under the provisions of Section 234 read with Sections 230 to 232 of the Companies Act, 2013 for the merger of Zero Waste Agro Organics Limited, a wholly owned subsidiary of the Company, with the Company, subject to necessary statutory and regulatory approvals, including the National Company Law Tribunal (''NCLT'').

(ii) During the year ended 31 March, 2019, the Board of Directors of the Company have approved the Scheme of Amalgamation (âScheme") under the provisions of Section 234 read with Sections 230 to 232 of the Companies Act, 2013 for the merger of Metahelix Life Sciences Ltd, a wholly owned subsidiary of the Company, with the Company, subject to necessary statutory and regulatory approvals, including the National Company Law Tribunal (''NCLT'').

(iii) During the year ended 31 March, 2019, Rallis Chemistry Exports Ltd. has made an application to the Registrar of Companies for removal of its name from the Register of Companies, hence investment has been written off from books of accounts.

(i) The cost of inventories recognised as an expense during the year was Rs. 1,02,282.21 lakhs (31 March, 2018 Rs. 87,603.11 lakhs).

(ii) The cost of inventories recognised as an expense includes Rs. 224.72 lakhs (31 March, 2018 Rs. 591.17 lakhs) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced by Rs. 263.17 lakhs (31 March, 2018 Rs. 309.44 lakhs) in respect of reversal of such write-downs.

(iii) The mode of valuation of inventories has been stated in note 3.13.

footnotes:

(i) The credit period ranges from 15 days to 180 days.

(ii) Before accepting any new customer, the Company assesses the potential customer''s credit quality and defines credit limits by customer. Limits attributed to customers are reviewed annually. Of the trade receivable balance as at 31 March, 2019 Rs. 9,284.47 lakhs is due from one customer (as at 31 March, 2018 Rs. 6,126.72 lakhs is due from one customer). The credit risk in respect of these customers is mitigated by export credit guarantee. There are no other customer who represent more than 5% of the total balance of trade receivable.

(iv) Movement in the expected credit loss allowance

b. The Company has issued one class of equity shares having a par value of Rs. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income , items included in the general reserve will not be reclassified subsequently to profit or loss.

Summary of borrowing arrangements

(i) Sales tax deferral scheme:

The loan is repayable in annual installments which ranges from a maximum of Rs. 113.11 lakhs to a minimum of Rs. 14.73 lakhs over the period stretching from 1 April, 2019 to 31 March, 2027. The amount outstanding is free of interest.

The balance outstanding as at 31 March, 2019 is Rs. 569.51 lakhs (as at 31 March, 2018 Rs. 578.00 lakhs) of which Rs. 14.73 lakhs (as at 31 March, 2018 Rs. 7.78 lakhs) has been grouped under note 22- other current financial liabilities, which are payable in next 12 months

(iii) Finance lease obligation:

Secured by the assets leased. The borrowing is fixed interest rate debt (8.85%) with repayment periods not exceeding 4 years.

The balance outstanding as at 31 March, 2019 is Rs. 21.04 lakhs (as at 31 March, 2018 Rs. 28.82 lakhs) of which Rs. 9.32 lakhs (as at 31 March, 2018 Rs. 8.48 lakhs) has been grouped under note 22- other current financial liabilities, which are payable in next 12 months.

3: Segment information

Products and services from which reportable segments derive their revenues

The Company has determined its business segment as "Agri -Inputs" comprising of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds .The other segment includes "Polymer" and other non reportable elements.

For the purpose of monitoring segment performance and allocation resources between segments:

- All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, fixed deposits and interest accrued thereon.

- All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, interest accrued on loans, provision for supplemental pay, Director pension liability, unpaid dividend, current and deferred tax liabilities.

Geographical information

The Company operates in two principal geographical areas - India and outside India

The Company''s revenue from continuing operations from external customers by location of operations and information about its non-current assets* by location of assets are detailed below:

Information about major customers

One customer contributed to the Company''s revenue in year 2018-19 more than 10% (Rs. 22,149.40 Lakhs) and no single customer contributed 10% or more to the Company''s revenue in year 2017-18.

4: Lease arrangements Operating lease arrangements Company as Lessee

The Company has procured motor vehicles and computer network under non-cancellable operating leases. Lease rent charged to the Standalone Statement of Profit and Loss during the year is Rs. 840.87 lakhs (31 March, 2018 Rs. 762.04 lakhs) net of amount recovered from employees Rs. 5.69 lakhs (31 March, 2018 Rs. 5.11 lakhs). Disclosures in respect of non-cancellable leases are given below:

5: Employee benefit plans Defined contribution plans Contribution to provident fund and ESIC

Amount recognised as expense and included in the Note 30 - in the head "Contribution to Provident and other funds" for 31 March, 2019 Rs. 294.46 lakhs ( for 31 March, 2018 Rs. 256.62 lakhs).

Defined benefit plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount), a supplemental pay scheme (a life long pension) and Director pension liability. The gratuity scheme covers substantially all regular employees, Director pension liability covers retired Managing Director and supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, director pension liability and supplemental pay scheme are not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method.

These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk

Investment risk:

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.

Longevity risk:

Salary risk

1. If the discounting rate is 100 basis point higher (lower), the defined benefit obligation would decrease by Rs. 332.96 lakhs (increase by Rs. 392.43 lakhs) (as at 31 March, 2018: decrease by Rs. 299.58 lakhs (increase by Rs. 342.70 lakhs)).

2. If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs. 217.41 lakhs (decrease by Rs. 184.25 lakhs) (as at 31 March, 2018: increase by Rs. 224.91 lakhs (decrease by Rs. 200.03 lakhs)).

3. I f the life expectancy increases (decreases) by 1 year, the defined benefit obligation would increase by Rs. 37.43 lakhs (decrease by Rs. 37.91 lakhs) (as at 31 March, 2018: increase byRs. 38.40 lakhs (decrease by''38.90 lakhs)).

The sensitivity analysis presented above may not representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of Rs. 176.59 lakhs (as at 31 March, 2018 Rs. 124.50 lakhs) to the defined benefit plans during the next financial year.

The Company operates Provident Fund Scheme and the contributions are made to recognised fund. The Company is required to offer a defined benefit interest rate guarantee on provident fund balances of employees. The interest rate guarantee is payable to the employees for the year when the exempted fund declares a return on provident fund investments which is less than the rate declared by the Regional Provident Fund Commissioner (RPFC) on the provident fund corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as on March 31, 2019 and March 31, 2018.

Amount recognised as expense and included in the Note 30 - in the head "Contribution to Provident and other funds" for 31 March, 2019 Rs. 233.18 lakhs ( for 31 March, 2018 Rs. 213.29 lakhs).

As at 31 March, 2019, the fair value of the assets of the fund and the accumulated members'' corpus is Rs. 8,142.68 lakhs and Rs. 7,771.78 lakhs respectively. In accordance with an assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.

Compensatory absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of Rs. 142.47 lakhs (31 March, 2018 Rs. 195.52 lakhs) has been recognised in the Standalone Statement of profit and loss on account of provision for long-term employment benefit.

6: Financial instruments Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 18,19 and 22 offset by cash and bank balances) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

Fair value hierarchy

Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used

Financial risk management objectives

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The corporate treasury function reports quarterly to the Company''s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

Market risk

Forward foreign exchange contracts to hedge the exchange rate risk arising on imports and exports.

Foreign currency risk management

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR, JPY and GBP.

The following table details the Company''s sensitivity to a 5% increase and decrease in the '' against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the '' strengthens 5% against the relevant currency. For a 5% weakening of the '' against the relevant currency, there would be a comparable impact on the profit or equity , and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largly mitigate the risk.

Derivative instruments:

The line item in the Balance Sheet that includes the above hedging instruments are "other financial assets and other financial liabilities.

Equity risk

Interest risk

Cash flow sensitivity analysis for variable rate instrument Non-current variable interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by Rs. 23.86 lakhs (increased by Rs. 23.86 lakhs) (as at 31 March, 2018: decreased by Rs. 37.42 lakhs (increased by Rs. 37.42 lakhs)).

Current variable interest rate borrowings

If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by Rs. 1.16 lakhs (increased by Rs. 1.16 lakhs) (as at 31 March, 2018: decreased by '' Nil (increased by '' Nil)).

Credit risk management

The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.

Liquidity risk management

All current financial liabilities are repayable within one year. The contractual maturities of non-current liabilities are disclosed in note no. 18.

3. Other related parties

Rallis India Limited Provident Fund

Rallis India Limited Management Staff Gratuity Fund

Rallis India Limited Senior Assistants Super Annuation Scheme

Rallis Executive Staff Super Annuation Fund

Rallis India Limited Non-Management Staff Gratuity Fund

4. Key Management Personnel

Mr. V. Shankar, Managing Director and CEO (upto 31 March, 2019)

Mr. R. Mukundan, Managing Director and CEO (w.e.f. 3 December, 2018 till 31 March, 2019)

5. Promoter Group

Tata Sons Private Limited

6. List of subsidiaries of Tata Sons Private Limited

Tata Africa Services (Nigeria) Ltd Infiniti Retail Ltd.

Tata AIG General Insurance Co. Ltd.

Tata Consultancy Services Ltd.

Ecofirst Services Ltd.

Advinus Therapeutics Ltd.

TC Travels & Services Ltd.

Tata Teleservices Ltd.

Tata Chemicals Society for Rural Development Tata Africa Services (Nigeria) Ltd.

Tata Capital Financial Services Ltd.

TASEC Limited

Tata Strategic Management Group (Division of Tata Industries Limited) Impetis Biosciences Ltd.

Ewart Investments Ltd.

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or taken during the year except as below. No expense has been recognised in the current or prior years for bad & doubtful debts in respect of the amounts owed by related parties.

It does not include balances which were provided in earlier years (refer note 9).

The Company had issued a corporate guarantee to debenture trustee in respect of issuance of debentures of Rs. 27,000.00 lakhs by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The guarantee had been released during the previous year on 5 October, 2017. The Company''s maximum exposure in this respect is Rs. Nil as at 31 March, 2019 ( as at 31 March, 2018: Rs. Nil).

The remuneration of key management personnel is determined by the remuneration committee having regard to the performance of individuals and market trends. It is exclusive of gratuity and compensated absence.

7: Contingent liabilities

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:

(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount;

(ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations;

(iv) there are significant factual issues to be resolved; and/or

(v) there are novel legal issues presented.

c. "The Hon''ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshani Limited & others v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the SC for disposal.

In view of the management, the liability for the period from date of the SC order to 31 March 2019 is not significant and has been provided in the books of account. Further, pending decision on the subject review petition and directions from the EPFO, the impact for the past period, if any, is not ascertainable and consequently no effect has been given in the accounts.

8: Commitments

(i) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is Rs. 1,454.11 lakhs as at 31 March, 2019 (as at 31 March, 2018: Rs. 483.46 lakhs) and Other intangible assets is Rs. 6.41 lakhs as at 31 March, 2019 (as at 31 March, 2018: Rs. 89.05 lakhs) against which advances paid aggregate Rs. 84.07 lakhs as at 31 March, 2019 (as at 31 March, 2018: Rs. 53.50 lakhs).

(ii) For lease commitments refer note no 36.

9: The Company made a contribution to an electoral trust of Rs. 500 lakhs (31 March, 2018 Rs. Nil) which is included in other expenses.

10: Subsequent event

The Board of Directors at its meeting held on 25 April, 2019 has recommended a dividend of Rs. 2.50 per equity share (31 March, 2018 Rs. 2.50 per equity share), subject to shareholders approval at annual general meeting.

11: The MCA wide notification dated 11 October, 2018 has amended Schedule Ill to the Companies Act, 2013 in respect of certain disclosures. The Company has incorporated appropriate changes in the above results.

Mar 31, 2018

1. Corporate Information

Rallis India Limited (the ââCompanyââ) is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Companyâs shares are listed on National Stock Exchange and Bombay Stock Exchange. It has been engaged primarily in the business of manufacture and marketing of Agri Inputs. The Company has its manufacturing facilities in India and sells both in India and across the globe. The Companyâs registered office is at 156/157, 15th Floor, Nariman Bhavan, 227 Nariman Point, Mumbai 400 021.

Tata Chemicals Limited (âTata Chemicalsâ) owns 50.06% of the Companyâs equity share capital as at 31 March 2018.

The financial statements for the year ended 31 March, 2018 were approved by the Board of Directors and authorised for issue on 26 April, 2018.

2. Recent accounting pronouncement Standards issued but not yet effective

Ministry of Corporate Affairs (âMCAâ) through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new and amendments to Ind ASs which the Company has not applied as they are effective for annual periods beginning on or after April 1, 2018:

Ind AS 115 Revenue from Contracts with Customers

Ind AS 21 The effect of changes in Foreign Exchange rates

Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction Contracts when it becomes effective.

The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

- Step 1: Identify the contract(s) with a customer

- Step 2: Identify the performance obligation in contract

- Step 3: Determine the transaction price

- Step 4: Allocate the transaction price to the performance obligations in the contract

- Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when âcontrolâ of the goods or services underlying the particular performance obligation is transferred to the customer.

The company is currently evaluating the effect of this standard.

Ind AS 21 - The effect of changes in Foreign Exchange rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The Company is evaluating the impact of this amendment on its financial statements.

3 A. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

(i) Critical Judgements

In the process of applying the Companyâs accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognisd in the financial statements:

Discount rate used to determine the carrying amount of the Companyâs defined benefit obligation

In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

Contingences and commitments

In the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where the potential liabilities have a low probability of crystallising or are very difficult to quantify reliably, we treat them as contingent liabilities. Such liabilities are disclosed in the notes but are not provided for in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings, we do not expect them to have a materially adverse impact on our financial position or profitability.

(ii) Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Useful lives of property, plant and equipment

As described in Note 3.5, the Company reviews the estimated useful lives and residual values of property, plant and equipment at the end of each reporting period. During the current financial year, the management determined that there were no changes to the useful lives and residual values of the property, plant and equipment.

Allowances for doubtful debts

The Company makes allowances for doubtful debts based on an assessment of the recoverability of trade and other receivables. The identification of doubtful debts requires use of judgments and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

Allowances for inventories

Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying value of the aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required to be made in the financial statements for any obsolete and slow-moving items. Management is satisfied that adequate allowance for obsolete and slow-moving inventories has been made in the financial statements.

Liability for sales return

In making judgment for liability for sales return, the management considered the detailed criteria for the recognition of revenue from the sale of goods set out in Ind AS 18 and in particular, whether the Company had transferred to the buyer the significant risk and rewards of ownership of the goods. Following the detailed quantification of the Companyâs liability towards sales return, the management is satisfied that significant risk and rewards have been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of an appropriate liability for sales return.

Accruals for estimated product returns, which are based on historical experience of actual sales returns and adjustment on account of current market scenario is considered by Company to be reliable estimate of future sales returns.

1. Cost of buildings includes cost of 30 shares (31 March,2017-30shares) of Rs.50 each fully paid in respect of ownership flats in 3 (31 March, 2017- 3 flats) Co-operative Societies.

2. Buildings include assets carried at Rs.0.88 lakhs (31 March, 2017Rs.0.94 lakhs) where the conveyance in favor of the Company has not been completed.

3. Plant and equipment includes general plant and machinery, electrical installations and equipments, laboratory equipments and computers and data processing units. In addition, the Companyâs obligations under finance leases are secured by the lessorâs title to the leased assets.

4. Leasehold land include assets carried at Rs.209.56 lakhs (as at 31 March, 2017 Rs.990.49 lakhs) for which the Company is in process of obtaining an extension for the fulfilment of pre-conditions of lease upon expiry of timeline.

5. The Company has not capitalised any borrowing cost during the current year (31 March, 2017 - Nil).

6. The Company has not recognised any impairment loss during the current year (31 March, 2017 - Nil).

7. The figures in italics are for the previous year.

footnotes:

1. Buildings includes 10 flats which are classified as Investment property by the Company in accordance with IND AS-40 âInvestment Propertyââ.

2. Cost of buildings includes cost of 35 shares (31 March, 2017 - 35 shares) of Rs.50 each fully paid and cost of 7 shares (31 March, 2017- 7 shares) of Rs.100 each fully paid in respect of ownership flats in 7 (31 March, 2017- 7 flats) Co-operative Societies.

3. The Company has not capitalised any borrowing cost during the current year (31 March, 2017 - Nil).

4. The Company has not recognised any impairment loss during the current year (31 March, 2017 - Nil).

5. Total fair value of Investment Property is Rs.31,356.16 lakhs (31 March, 2017 Rs.31,311.63 lakhs).

6. The figures in italics are for the previous year.

Fair Value Heirarchy

The fair value measurement for all of the investment property has been categoried as a level 3 fair value based on the inputs to the valuation techniques used.

Description of Valuation Technique used:

The Company obtains Independent Valuations of its investment property as at the year end. The fair value of the investment property have been derived using the Direct Comparison Method.The direct comparison approach involves a comparison of the investment property to similar properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located in close proximity to the investment property; these instances have been assessed for their locational comparative advantages and disadvantages while arriving at the indicative price assessment for investment property.

footnotes:

1. The Company has not capitalised any borrowing cost during the current year (31 March, 2017- Nil).

2. The Company has not recognised any impairment loss during the current year (31 March, 2017- Nil).

3. The figures in italics are for the previous year.

# Amount is less than Rs.0.01 lakh.

Note: During the year ended 31 March, 2018, the Board of Directors of the Company has approved the Scheme of Amalgamation (âSchemeâ) under the provisions of Section 234 read with Sections 230 to 232 of the Companies Act, 2013 for the merger of Zero Waste Agro Organics Limited, a wholly owned subsidiary of the Company, with the Company, subject to necessary statutory and regulatory approvals, including approval of the National Company Law Tribunal.

*There is no amount due from director, other officer of the Company or firms in which any director is a partner or private companies in which any director is a director or member at anytime during the reporting period.

Note 1:

Includes a sum of Rs.18.61 lakhs (asat31 March,2017Rs.18.61 lakhs) being amount due from Rallis Chemistry Exports Ltd., a wholly owned subsidiary. The maximum amount outstanding during the year was Rs.18.61 lakhs (as at 31 March, 2017 Rs.18.61 lakhs).

(i) The cost of inventories recognised as an expense during the year was Rs.87,603.11 lakhs (31 March,2017:Rs.79,246.93 lakhs)

(ii) The cost of inventories recognised as an expense includes Rs.591.17 lakhs (31 March, 2017:Rs.733.68 lakhs) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced by Rs.309.44 lakhs (31 March, 2017: Rs.381.49 lakhs) in respect of reversal of such write-downs.

(iii) The mode of valuation of inventories has been stated in note 3.13

(iv) Loans are secured by first paripassu charge on stock (including raw material, finished goods and work-in-progress) and book debts (refer note 12 and 19).

(i) The credit period ranges from 15 days to 180 days.

(ii) Before accepting any new customer, the Company assesses the potential customerâs credit quality and defines credit limits by customer. Limits attributed to customers are reviewed annually. Of the trade receivable balance as at 31 March, 2018 Rs.6,126.72 lakhs is due from one customer (as at31 March, 2017Rs.3,819.27lakhs is due from one customer). The credit risk in respect of these customers is mitigated by export credit guarantee. There are no other customer who represent more than 5% of the total balance of trade receivable.

(iv) Movement in the expected credit loss allowance

(v) Loans are secured by first paripassu charge on stock (including raw material, finished goods and work-in-progress) and book debts (refer note 11 and 19).

The company intends to surrender the leasehold land which it no longer intends to utilise in the next 12 months. The Company is currently in discussion with appropriate authorities in this direction. No impairment loss was recognised on reclassification of the assets as held for sale nor as at reporting date, as the management expects that the fair value (estimated based on the surrender value) less cost to surrender is higher than the carrying amount.

b. The Company has issued one class of equity shares having a par value of â1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income , items included in the general reserve will not be reclassified subsequently to profit or loss.

The Company has elected to recognise changes in the fair value of investments in equity instruments in other comprehensive income. These changes are accumulated within the FVTOCI equity investments within equity.

Summary of borrowing arrangements

(i) Sales tax deferral scheme:

The loan is repayable in annual installments which ranges from a maximum of Rs.113.11 lakhs to a minimum of Rs.7.78 lakhs over the period stretching from 1 April, 2018 to 31 March, 2027. The amount outstanding is free of interest.

The balance outstanding as at 31 March, 2018 is Rs.578.00 lakhs (as at31 March, 2017Rs.588.18lakhs) of which Rs.7.78 lakhs (as at31 March, 2017Rs.9.47lakhs) has been grouped under note 22- other current financial liabilities, which are payable in next 12 months.

(ii) The terms of repayment of term loan is stated below As at 31 March, 2018

The balance outstanding as at 31 March, 2018 is Rs.1,500 lakhs (as at 31 March, 2017 Rs.1,500 lakhs) of which Rs.300 lakhs (as at 31 March, 2017 Rs. Nil) has been grouped under note 22- other current financial liabilities, which are payable in next 12 months.

(iii) Finance lease obligation:

Secured by the assets leased. The borrowing is fixed interest rate debt (8.40%) with repayment periods not exceeding 4 years.

The balance outstanding as at 31 March, 2018 is Rs.28.82 lakhs (as at 31 March, 2017Rs.38.55 lakhs) of which Rs.8.48 lakhs (as at31 March, 2017Rs. Nil) has been grouped under note 22- other current financial liabilities, which are payable in next 12 months.

(i) These loans are secured by first paripassu charge on stock (including raw material, finished goods and work-in-progress) and book debts (refer note 11 and 12).

(ii) The weighted average effective interest rate on the bank loans is 8.56% p.a. (for 31 March, 2017 9.86% p.a.).

4: Deferred tax balances

The following is the analysis of deferred tax liabilities/(assets) presented in the Balance sheet

All amounts required to be transferred to the Investor Education and Protection Fund by the Company have been transferred within the time prescribed for the same, except in cases of disputes relating to the ownership of the underlying shares that have remained unresolved amounting to Rs.0.19 lakhs (as at31 March, 2017Rs.0.19lakhs).

Note 1: Provision held in respect of indirect tax matters in dispute

On an evaluation of each of its disputed claims, the Company holds an overall provision for contingency in respect of certain indirect tax matters in dispute which, as at the year-end, aggregates Rs. 227.32 lakhs (as at 31 March, 2017 Rs. 193.82 lakhs). The movement during the year is as under:

Note 2:

The provision for employee benefits includes gratuity, supplemental pay on retirement and compensated absences. The increase/decrease in the carrying amount of the provision for the current year is mainly on account of net impact of incremental charge for current year and benefits paid in the current year. For other disclosures, refer note 37.

5: Segment information

Products and services from which reportable segments derive their revenues

The Company has determined its business segment as âAgri -Inputsâ comprising of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds .The other segment includes âPolymerâ and other non reportable elements.

Segment revenue and results

The following is an analysis of the Companyâs revenue and results from operations by reportable segment

Notes:

(i) Segment revenue consist of sales of products including excise duty.

(ii) Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (31 March, 2017 â Nil). The accounting policies of the reportable segments are the same as described in note 3.18.

(iii) Segment profit represents the profit before tax earned by each segment without allocation of central administration cost and director fees and commission, other income, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

For the purpose of monitoring segment performance and allocation resources between segments:

- All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, fixed deposits and interest accrued thereon.

- All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, interest accrued on loans, provision for supplemental pay, unpaid dividend, current and deferred tax liabilities.

Geographical information

The Company operates in two principal geographical areas - India and outside India

The Companyâs revenue from continuing operations from external customers by location of operations and information about its non-current assets¹ by location of assets are detailed below:

6: Lease arrangements Operating lease arrangements Company as Lessee

The Company has procured motor vehicles and computer network under non-cancellable operating leases. Lease rent charged to the Statement of Profit and Loss during the year is Rs.762.04 lakhs (31 March,2017â620.61 lakhs) net of amount recovered from employees Rs.5.11 lakhs (31 March, 2017Rs.16.73 lakhs). Disclosures in respect of non-cancellable leases are given below:

Finance lease arrangements Company as Lessee

The Company has finance lease for office equipments. The Companyâs obligation under finance lease are secured by lessors title to the leased assets. Future minimum lease payment under finance lease with the present value of the net minimum lease payments are as follows:-

7: Employee benefit plans Defined contribution plans Contribution to provident fund and ESIC

Amount recognised as expense and included in the Note 30 â in the head âContribution to Provident and other fundsâ for 31 March, 2018 Rs.256.62 lakhs ( for 31 March, 2017 Rs.237.02 lakhs).

Defined benefit plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on âProjected Unit Creditâ method.

The Company makes provident fund contributions to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company in case of certain locations. The Company is liable for contributions and any deficiency compared to interest computed based on the rate of interest declared by the Central Government under the Employeesâ Provident Fund Scheme, 1952 and recognises, if any, as an expense in the year it is determined.

These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk Investment risk:

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.

Longevity risk:

Salary risk:

The principal assumptions used for the purpose of actuarial valuation were as follows.

The current service cost and the net interest expenses for the year are included in the Employee benefits expense line item in the Statement of Profit and Loss. The remeasurement of the net defined benefit liability/asset is included in Other Comprehensive Income.

The amount included in the Balance Sheet arising from the entityâs obligation in respect of its defined benefit plans is as follows:

The plan assets are managed by the Gratuity Trust formed by the Company. The management of funds is entrusted with the Life Insurance Corporation of India (âLICâ) and HDFC Standard Life Insurance Company Limited (âHSLICâ).

The fair value of the plan assets at the end of the reporting period for each category, are as follow:

1. If the discounting rate is 100 basis point higher (lower), the defined benefit obligation would decrease by Rs.299.58 lakhs (increase by Rs.342.70 lakhs) (as at31 March, 2017: decrease by Rs.315.12 lakhs (increase by Rs.362.08 lakhs)).

2. If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by Rs.224.91 lakhs (decrease by Rs.200.03 lakhs) (as at31 March, 2017: increase by Rs.235.13 lakhs (decrease by Rs.207.85 lakhs)).

3. If the life expectancy increases (decreases) by 1 year, the defined benefit obligation would increase by Rs.38.40 lakhs (decrease by Rs.38.90 lakhs) (as at31 March, 2017: increase by Rs.41.03 lakhs (decrease by Rs.41.55 lakhs)).

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using âProjected Unit Creditâ method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of Rs.124.50 lakhs (as at 31 March, 2017Rs.222.05 lakhs) to the defined benefit plans during the next financial year.

The defined benefit obligations shall mature after year ended 31 March, 2018 as follows:

The Company operates Provident Fund Scheme and the contributions are made to recognised fund. The Company is required to offer a defined benefit interest rate guarantee on provident fund balances of employees. The interest rate guarantee is payable to the employees for the year when the exempted fund declares a return on provident fund investments which is less than the rate declared by the Regional Provident Fund Commissioner (RPFC) on the provident fund corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as on March 31, 2018 and March 31, 2017.

Amount recognised as expense and included in the Note 30 â in the head âContribution to Provident and other fundsâ for 31 March, 2018 Rs.213.29 lakhs ( for31 March,2017Rs.202.21 lakhs).

The details of provident fund and plan asset position are given below:

As at 31 March, 2018, the fair value of the assets of the fund and the accumulated membersâ corpus is Rs.7,112.52 lakhs and Rs.6,764.91 lakhs respectively. In accordance with an assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.

Compensatory absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of Rs.195.52 lakhs (31 March 2017 Rs.173.30 lakhs) has been recognised in the statement of profit and loss on account of provision for long-term employment benefit

8: Financial instruments Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 18,19 and 22 offset by cash and bank balances) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

Gearing Ratio

The gearing ratio at the end of the reporting period was as follows

(i) Debt is defined as long-term borrowings, short-term borrowings and current maturities of long term borrowings (excluding financial guarantee contracts), as described in notes 18,19 and 22.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Companyâs financial assets that are measured at fair value or where fair value disclosure is required as at 31 March, 2018:

Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used

The Company determined the fair value measurements of investments -unquoted categorised in Level 2 based on price agreed in a sale transaction between unrelated parties.

Financial risk management objectives

The Companyâs corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The use of financial derivatives is governed by the Companyâs policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivatives financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade financial instrument, including derivative financial instruments, for speculative purposes.

The corporate treasury function reports quarterly to the Companyâs risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

Market risk

The Companyâs activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk including:

Forward foreign exchange contracts to hedge the exchange rate risk arising on imports and exports.

Foreign currency risk management

The carrying amounts of the Companyâs foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR, JPY and GBP.

The following table details the Companyâs sensitivity to a 5% increase and decrease in the â against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit or equity where the â strengthens 5% against the relevant currency. For a 5% weakening of the â against the relevant currency, there would be a comparable impact on the profit or equity , and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years. The above sensitivity does not include the impact of foreign currency forward contracts which largly mitigate the risk.

Derivative instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to accounts receivable and accounts payable. The use of foreign currency forward contracts is governed by the Companyâs strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Companyâs Risk Management Policy. The Company does not use forward contracts for speculative purposes.

The following forward exchange contracts are outstanding as at balance sheet date:

Note: USD= US Dollar; JPY = Japanese Yen.

The line item in the Balance Sheet that includes the above hedging instruments are âother financial assets and other financial liabilitiesâ.

Equity risk

There is no material equity risk relating to the Companyâs equity investments which are detailed in note 8 âOther investmentsâ. The Companyâs equity investments majorly comprises of strategic investments rather than trading purposes.

Interest risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument that will fluctuate because of changes in market rates. The Companyâs exposure to the risk of changes in market rates relates primarily to the Companyâs non-current debt obligation with floating interest rates. The Companyâs policy is generally to undertake non-current borrowing using facilities that carry floating interest rate.

Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.

At the end of reporting period, the Company had the following long-term variable interest rate borrowing:

No sensitivity analysis is prepared as the Company does not expect any material effect on the Companyâs results arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the reporting period as mentioned in note 18,19 and 22.

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers.The Companyâs exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 12- Trade receivable).

The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.

In addition, during the previous year, the Company had issued a corporate guarantee to debenture trustee in respect of issuance of debentures of Rs.27,000.00 lakhs by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The guarantee has been released during the current year on 5 October, 2017. The Companyâs maximum exposure in this respect is â Nil as at 31 March, 2018 (as at31 March, 2017:Rs.4,560.30lakhs) as disclosed in contingent liabilities (refer note 40).

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in note no. 18.

Liquidity risk table

The following table detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or taken other than guarantee disclosed below. No expense has been recognised in the current or prior years for bad & doubtful debts in respect of the amounts owed by related parties.

It does not include balances which were provided in earlier years (refer note 9).

During the previous year, the Company had issued a corporate guarantee to debenture trustee in respect of issuance of debentures of Rs.27,000.00 lakhs by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus.The guarantee has been released during the current year on 5 October, 2017. The Companyâs maximum exposure in this respect is â Nil as at 31 March, 2018 (as at 31 March, 2017:Rs.4,560.30 lakhs) as disclosed in contingent liabilities (refer note 40).

The remuneration of key management personnel is determined by the remuneration committee having regard to the performance of individuals and market trends. The same excludes gratuity and compensated absence.

9: Contingent liabilities

The Company is involved in a number of appellate, judicial and arbitration proceedings (including those described below) concerning matters arising in the course of conduct of the Companyâs businesses. Some of these proceedings in respect of matters under litigation are in early stages, and in some other cases, the claims are indeterminate. A summary of claims asserted on the Company in respect of these cases have been summarised below.

Guarantees

During the previous year, the Company had issued a corporate guarantee to debenture trustee in respect of issuance of debentures of Rs.27,000.00 lakhs by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The guarantee has been released during the current year on 5 October, 2017. The Companyâs maximum exposure in this respect is â Nil as at 31 March, 2018 (as at 31 March, 2017Rs.4,560.30 lakhs).

Tax contingencies

Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, which are in dispute, have been tabulated below:

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:

(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount;

(ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations;

(iv) there are significant factual issues to be resolved; and/or

(v) there are novel legal issues presented.

However, in respect of the above matters, management does not believe, based on currently available information, that the outcomes of the litigation, will have a material adverse effect on the Companyâs financial condition, though the outcomes could be material to the Companyâs operating results for any particular period, depending, in part, upon the operating results for such period.

10: Commitments

(i) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is Rs.483.46 lakhs as at 31 March, 2018 (as at 31 March, 2017:Rs.301.15 lakhs) and Intangible assets is Rs.89.05 lakhs as at 31 March, 2018 (as at31 March, 2017:Rs.48.28 lakhs) against which advances paid aggregate Rs.53.50 lakhs as at 31 March, 2018 (as at31 March, 2017:Rs.84.59 lakhs).

(ii) During the year 2016-17, the Company exercised its call option on 19,421 equity shares of Zero Waste Agro Organics Limited (âZWAOLâ) on 23 November, 2016 at an aggregate cost of Rs.1,948.84 lakhs. The commitments in the form of put option granted to the erstwhile owners of 73,645 equity shares in ZWAOL stand extinguished.

(iii) During the year 2015-16, the Company had agreed to assign its leasehold rights in a property at Turbhe Navi Mumbai, for a gross consideration of Rs.21,393.00 lakhs to Ikea India Private Limited. The arrangement was subject to the Company obtaining necessary approvals under various regulations in respect of which the Company was liable to make payment aggregating to Rs.9,778.19 lakhs against which the Company was entitled for reimbursement of Rs.4,400.19 lakhs.

(iv) For lease commitments refer note no 36.

11: Research and development expenditure

The Company has incurred the following expenses on research and development activity:

During the year the Company has also incurred Rs. 43.58 lakhs (31 March, 2017 Rs. Nil) towards capital research and development expenditure which is included under capital work-in-progress. The total amount included in capital work-in-progress as at 31 March 2018 is Rs. 1,206.45 lakhs (as at 31 March, 2017 Rs. 1,195.86 lakhs).

footnote:

The above figures include the amounts based on separate accounts for the Research and Developments (ââR&Dââ) Centre recognised by the Department of Scientific & Industrial Research (ââDSIRââ), Ministry of Science and Technology for in-house research (consonance with the DSIR guidelines for in-house R & D Centre will be evaluated at the time of filing the return with DSIR).

Recoverable taxes which is being claimed for set-off as input credit has not been included in the expenditure above. Auditorsâ Remuneration for the previous year represents for erstwhile auditors.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

12: The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to Rs. 388.00 lakhs (31 March, 2017Rs. 391.00 lakhs). Amount spent during the year on CSR activities (included in Note 30 and Note 33 of the Statement of Profit and Loss) as under

13: During the previous year, the Company had Specified Bank Notes (SBN) or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 30 March, 2017 on the details of SBN held and transacted during the period from 8 November, 2016 to 30 December, 2016, the denomination wise SBNs and other notes as per the notification is given below:

Explanation: For the purpose of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.O. 3407 (E), dated the 8 November, 2016.

*The above balance includes cash in hand of Rs.2.25 lakhs relates to SBN, held by employees as at 8 November, 2016 which was accounted and deposited on 19 November, 2016.

14: During the previous year, exceptional item comprises profit on assignment of leasehold rights to a plot of land in the MIDC Area, Turbhe, Navi Mumbai. The profit is net of costs including a premium levied, under the repealed Urban Land (Ceiling and Regulation) Act, 1976 which has been paid under protest.

15: Subsequent event

The Board of Directors at its meeting held on 26 April, 2018 has recommended a dividend of Rs.2.50 per equity share (31 March 2017 Rs.3.75 per equity share) , subject to shareholders approval at annual general meeting

16: Prior period figures have been audited by a firm of Chartered Accountants other than B S R & Co. LLP.

17: Consequent to the issuance of âGuidance Note on Division II -Ind AS Schedule III to the Companies Act ,2013 â, certain items of financial statements have been regrouped/reclassified.

Mar 31, 2017

1. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions.

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Discount rate used to determine the carrying amount of the Company''s defined benefit obligation

Contingences and commitments

I n the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where the potential liabilities have a low probability of crystallizing or are very difficult to quantify reliably, we treat them as contingent liabilities. Such liabilities are disclosed in the notes but are not provided for in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings, we do not expect them to have a materially adverse impact on our financial position or profitability.

Key sources of estimation uncertainty

Useful lives of property, plant and equipment

As described in Note 3, the Company reviews the estimated useful lives and residual values of property, plant and equipment at the end of each reporting period. During the current financial year, the management determined that there were no changes to the useful lives and residual values of the property, plant and equipment.

Allowances for doubtful debts

The Company makes allowances for doubtful debts based on an assessment of the recoverability of trade and other receivables. The identification of doubtful debts requires use of judgement and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

Allowances for inventories

Liability for sales return

I n making judgment for liability for sales return, the management considered the detailed criteria for the recognition of revenue from the sale of goods set out in Ind AS 18 and in particular, whether the Company had transferred to the buyer the significant risk and rewards of ownership of the goods. Following the detailed quantification of the Company''s liability towards sales return, the management is satisfied that significant risk and rewards have been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of an appropriate liability for sales return.

2. Explanation of transition to Ind AS

As stated in Note 2, the Company''s financial statements for the year ended 31 March, 2017 are the first annual financial statements prepared by the Company in order to comply with Ind AS. The adoption of Ind AS was carried out in accordance with Ind AS 101, using 1 April, 2015 as the transition date. The transition was carried out from Previous GAAP (based on the AS framework) to Ind AS. The effect of adopting Ind AS has been summarized in the reconciliations provided below.

Ind AS 101 generally requires full retrospective application of the Standards in force at the first reporting date. However, Ind AS 101 allows certain exemptions in the application of particular Standards to prior periods in order to assist companies with the transition process.

Reconciliations

The accounting policies as stated above in Note 3 have been applied in preparing the financial statements for the year ended 31 March, 2017, the financial statements for the year ending 31 March, 2016 and the preparation of an opening Ind AS statement of financial position as at 1 April, 2015. In preparing its opening Ind AS Balance Sheet and Statement of Profit and Loss for the year ended 31 March, 2016, the Company has adjusted amounts reported in financial statements prepared in accordance with Previous GAAP

An explanation of how the transition from Previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flow is set out in the following tables.

iii. Explanation of material adjustments to Statement of Cash Flows for the year ended 31 March, 2016:

The transition from Previous GAAP to Ind AS has no material impact on the Statement of Cash Flows except bank overdraft which has been considered as part of cash & cash equivalent.

footnotes:

(i) The cost of inventories recognized as an expense during the year wasRs,80,660.81 lac (Previous year:''Rs,73,445.50 lac)

(ii) The cost of inventories recognized as an expense includesRs,733.68 lac (Previous year:'' 583.84 lac) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced byRs,381.49 lac ( Previous year:Rs, 326.34 lac) in respect of reversal of such write-downs.

(iii) The mode of valuation of inventories has been stated in note 3.11

(iv) Loans are secured by first paripassu charge on stock (including raw material, finished goods and work in progress) and book debts (refer note 11 and 18).

footnotes:

(i) The credit period ranges from 15 days to 180 days.

(ii) Before accepting any new customer, the Company assesses the potential customer''s credit quality and defines credit limits by customer. Limits attributed to customers are reviewed annually. Of the trade receivable balance as at 31 March, 2017Rs,3,819.27 lac is due from one customer (as at 31 March, 2016Rs,3,543.14 lac are due from two customers, as at 1 April, 2015Rs,4,917.10 lac is due from one customer). The credit risk in respect of these customers is mitigated by export credit guarantee. There are no other customer who represent more than 5% of the total balance of trade receivable.

(v) Loans are secured by first paripassu charge on stock (including raw material, finished goods and work in progress) and book debts (refer note 10 and 18).

footnote:

The Company intends to dispose of assets relating to a non current asset it no longer utilizes in the next 12 months. The Company is currently in negotiation with some potential buyers. No impairment loss was recognized on reclassification of the assets as held for sale nor as at reporting date as the management of the Company expect that the fair value (estimated based on the recent market prices of similar assets in similar locations) less costs to sell is higher than the carrying amount.

b. The Company has issued one class of equity shares having a par value ofRs,1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Summary of borrowing arrangements

(i) Sales tax deferral scheme:

The loan is repayable in annual installments which range from a maximum ofRs,113.37 lac to a minimum ofRs,7.78 lac over the period stretching from 1 April, 2016 to 31 March, 2027. The amount outstanding is free of interest.

The balance outstanding as at 31 March, 2017 isRs,588.18 lac (as at31 March, 2016Rs,598.94 lac, as at 1 April, 2015Rs,704.35lac) of whichRs,9.47 lac (as at31 March, 2016Rs,10.64 lac, as at 1 April, 2015Rs,47.44 lac) has been grouped under note 21- other current financial liabilities.

Notes to the financial statements for the year ended 31 March, 2017 All amounts are inRs,lac unless otherwise stated 33 Segment information

Products and services from which reportable segments derive their revenues

The Company has determined its business segment as "Agri -Inputs" comprising of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds. The other segment comprises "Polymer" and other non reportable elements.

Notes:

(i) Segment revenue consist of sales of products including excise duty.

(ii) Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (2015-16Rs,Nil) The accounting policies of the reportable segments are the same as described in note 3.18.

(iii) Segment profit represents the profit before tax earned by each segment without allocation of central administration cost and directors fees and commission, other income, as well as finance cost. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

For the purpose of monitoring segment performance and allocation resources between segments:

- All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, fixed deposits and interest accrued thereon.

Geographical information

The company operates in two principal geographical areas - India and outside India

* Non-current assets exclude those relating to financial assets.

Information about major customers

No single customer contributed 10% or more to the Company''s revenue for both 2016-17 and 2015-16.

3 Lease arrangements

Operating lease arrangements:

Company as Lessee

The Company has procured motor vehicles and computer network under non-cancellable operating leases. Lease rent charged to the Statement of Profit and Loss during the year isRs,620.61 lac (Previous Year ''605.09lac) net of amount recovered from employeesRs,16.73 lac (Previous Year Rs,26.73 lac). Disclosures in respect of non-cancellable leases are given below:

36 Employee benefit plans Defined contribution plans

The Company makes provident fund contributions to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company in case of certain locations and government authorities (PF commissioner) at other locations. The Company is liable for contributions and any deficiency compared to interest computed based on the rate of interest declared by the Central Government under the Employees'' Provident Fund Scheme, 1952 and recognizes, if any, as an expense in the year it is determined.

As at 31 March, 2017, the fair value of the assets of the fund and the accumulated members'' corpus isRs,6,306.63 lac andRs,5,849.88 lac respectively. In accordance with an assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.

Amount recognized as expense and included in the Note 29 - in the head "Contribution to provident and other funds" for 31 March, 2017Rs,563.27 lac (for31 March, 2016Rs,541.52 lac).

Defined benefit plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a lifelong pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method.

These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk Investment risk:

Notes to the financial statements for the year ended 31 March, 2017 All amounts are in Rs,lac unless otherwise stated

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.

Longevity risk:

Salary risk:

The principal assumptions used for the purpose of actuarial valuation were as follows.

4. If the discounting rate is 100 basis point higher (lower), the defined benefit obligation would decrease byRs,315.12 lac (increase byRs,362.08 lac) (as at31 March, 2016: decrease byRs,280.31 lac (increase byRs,321.27 lac)) (as at 1 April, 2015: decrease byRs,274.46 lac (increase byRs,315.14 lac)).

5. If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase byRs,235.13 lac (decrease byRs,207.85 lac) (as at 31 March, 2016: increaseRs,201.94 lac (decrease byRs,178.76 lac)) (as at 1 April, 2015: increase byRs,189.64 lac (decrease byRs,167.62 lac)).

6. If the life expectancy increases (decreases) by 1 year, the defined benefit obligation would increase byRs,41.03 lac (decrease byRs,41.55 lac) (as at31 March, 2016: increaseRs,36.96 lac (decrease byRs,37.58 lac)) (as at 1 April, 2015: increase byRs,36.95 lac (decrease byRs,37.68 lac)).

Notes to the financial statements for the year ended 31 March, 2017 All amounts are in Rs,lac unless otherwise stated

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution ofRs,222.05 lac (as at31 March, 2016Rs,168.50 lac, as at 1 April, 2015Rs,280.01 lac) to the defined benefit plans during the next financial year.

7 Financial instruments Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 17, 18 and 21 offset by cash and bank balances) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

(i) Debt is defined as long-term borrowings, short-term borrowings and current maturities of long term borrowings (excluding financial guarantee contracts and contingent consideration), as described in notes 17,18 and 21.

Financial risk management objectives

The Company''s corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The corporate treasury function reports quarterly to the Company''s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

Market risk

Forward foreign exchange contracts to hedge the exchange rate risk arising on imports and exports.

Foreign currency risk management

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR, JPY and GBP.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years. The above sensitivity does not include the impact of foreign currency forward contracts which largly mitigate the risk.

Derivative instruments:

Note: JPY = Japanese Yen.

The line item in the Balance Sheet that includes the above hedging instruments are "other financial assets and other financial liabilities".

Equity risk

Interest risk

There is no material interest risk relating to the Company''s financial liabilities which are detailed in note 17, 18 and 21.

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 11 - Trade receivable).

The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.

In addition, during the year, the Company has issued a corporate guarantee to debenture trustee in respect of issuance of debentures ofRs,27,000.00 lac by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The Company''s maximum exposure in this respect is ofRs,4,560.30 lac at 31 March, 2017 (31 March, 2016:'' Nil, 1 April, 2015:'' Nil) as disclosed in contingent liabilities (refer note 39).

Liquidity risk management

All current financial liabilities are repayable within one year. The contractual maturities of noncurrent liabilities are disclosed in note no. 17.

Liquidity risk table

The following table detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

Sale of goods to related parties were made at the Company''s usual list prices, less average discounts. Purchases were made at market price discounted to reflect the quantity of goods purchased and the relationship between the parties.

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or taken other than guarantee disclosed below. No expense has been recognized in the current or prior years for bad & doubtful debts in respect of the amounts owed by related parties.

During the year, the Company has issued a corporate guarantee to debenture trustee in respect of issuance of debentures ofRs,27,000.00 lac by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The Company''s maximum exposure in this respect is ofRs,4,560.30 lac as at 31 March, 2017 (as at 31 March, 2016:Rs,Nil, as at 1 April, 2015:'' Nil) as disclosed in contingent liabilities (refer note 39).

8 Contingent liabilities

Guarantees

During the year, the Company has issued a corporate guarantee to debenture trustee in respect of issuance of debentures ofRs,27,000.00 lac by Advinus Therapeutics Ltd. (Advinus), to the extent of 16.89% of the total subscription of debentures issued by Advinus. The Company''s maximum exposure in this respect is ofRs,4,560.30 lac as at 31 March, 2017 (as at31 March, 2016:'' Nil, as at 1 April, 2015:'' Nil).

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:

(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount;

(ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations;

(iv) there are significant factual issues to be resolved; and/or

(v) there are novel legal issues presented.

9 Commitments

i) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment isRs,301.15 lac as at 31 March, 2017 (asat31 March,2016:'' 298.55lac,asat1 April,2015:'' 774.96lac) and Intangible assets isRs,48.28 lac as at 31 March, 2017 (as at31 March, 2016:'' 105.00 lac, as at 1 April, 2015:'' 274.27lac) against which advances paid aggregateRs,84.59 lac as at 31 March, 2017 (as at31 March, 2016:Rs,232.32 lac, as at 1 April, 2015:Rs,200.02 lac).

ii) During the year, the Company exercised its call option on 19,421 equity shares of Zero Waste Agro Organics Limited ("ZWAOL") on 23 November, 2016, at an aggregate cost ofRs,1,948.84 lac. The commitments in the form of put option granted to the erstwhile owners of 73,645 equity shares in ZWAOL stand extinguished.

iii) During the year 2015-16, the Company exercised its call option on 20,953 equity shares of Metahelix Life Sciences Limited ("Metahelix") on 15 February, 2016 at an aggregate cost ofRs,7,332.95 lac. The commitments in the form of put option granted to the erstwhile owners of 6,895 equity shares in Metahelix stand extinguished.

iv) During the year 2015-16, the Company had agreed to assign its leasehold rights in a property at Turbhe Navi Mumbai, for a gross consideration ofRs,21,393.00 lac to Ikea India Private Limited. The arrangement was subject to the Company obtaining necessary approvals under various regulations in respect of which the Company was liable to make payment aggregating toRs,9,778.19 lac against which the Company was entitled to be reimbursed ofRs,4,400.19 lac.

v) For lease commitments refer note no 35.

During the year the Company has also incurred Rs, 102.92 lac (Previous Year Rs, 543.73 lac) towards capital development expenditure which is included under intangible assets under development. The total amount included in Intangible assets under development as at 31 March, 2017 is Rs, 1,113.77 lac (asat31 March,2016 Rs, 1,092.25lac, asat1 April,2015Rs, 665.86 lac). footnote:

The above figures include the amounts based on separate accounts for the Research and Developments ("R&D") Centre recognized by the Department of Scientific & Industrial Research ("DSIR"), Ministry of Science and Technology for in-house research (consonance with the DSIR guidelines for in-house R & D Centre will be evaluated at the time of filing the return with DSIR).

Notes to the financial statements for the year ended 31 March, 2017 All amounts are inRs,lac unless otherwise stated

10 Other current liabilities include provision held in respect of indirect tax matters in dispute : (refer note 23)

While denying liabilities, on an evaluation of each of its disputed claims, the Company holds an overall provision for contingency in respect of certain indirect tax matters in dispute which, as at the year-end, aggregates Rs, 193.82 lac (as at 31 March, 2016 Rs, 193.82 lac, as at Rs, 1 April, 2015 193.82 lac). The movement during the year is as under:

* out of above amount overdue is Rs, Nil (Previous year: Rs, Nil)

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

Notes to the financial statements for the year ended 31 March, 2017 All amounts are inRs,lac unless otherwise stated

11 The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility (CSR) as per the provision of section 135 of the Companies Act, 2013 amounts to Rs, 391.00 lac (Previous Year Rs,388.40 lac). Amount spent during the year on CSR activities (included in Note 29 and Note 32 of the Statement of Profit and Loss) as under.

12 During the year, the Company had Specified Bank Notes (SBN) or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March, 2017 on the details of SBN held and transacted during the period from 8 November, 2016 to 30

Explanation: For the purpose of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India,in the Ministry of Finance, Department of Economics Affairs number S.O. 3407 (E), dated the 8 November, 2016.

*The above balance includes cash in hand ofRs,2.25 lac relates to SBN, held by employees as at 8 November, 2016 which was accounted and deposited on 19 November, 2016.

13 Exceptional item comprises profit on assignment of leasehold rights to a plot of land in the MIDC Area, Turbhe, Navi Mumbai. The profit is net of costs including a premium levied, under the repealed Urban Land (Ceiling and Regulation) Act, 1976 which has been paid under protest.

14 Subsequent event

The Board of Directors at its meeting held on 24 April, 2017 has recommended a dividend ofRs,2.50 per equity share. The Board has also recommended a one-time special dividend ofRs,1.25 per equity share, out of the profit on assignment of leasehold rights in the Turbhe land.

Mar 31, 2015

Corporate Information:

Rallis India Limited (the "Company") is an Indian public limited company, incorporated on 23 August, 1948, which is a subsidiary of Tata Chemicals Limited. It has been engaged primarily in the business of manufacture and marketing of Agri Inputs. The Company has its manufacturing facilities in India and sells both in India and across the globe. The Company is listed on the Bombay Stock Exchange ("BSE") and the National Stock Exchange ("NSE").

2. contingent liabilities and commitments (to the extent not provided for) (Refer Note 30):

The Company is involved in a number of appellate, judicial and arbitration proceedings (including those described below) concerning matters arising in the course of conduct of the Company''s businesses. Some of these proceedings in respect of matters under litigation are in early stages, and in some other cases, the claims are indeterminate. A summary of claims asserted on the Company in respect of these cases have been summarised below.

Tax contingencies

Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, which are in dispute, have been tabulated below:

rs lac Nature of Tax As at As at 31 March, 2015 31 March, 2014

Sales Tax 1,836.30 1,808.34

Excise Duty 360.84 401.56

Customs Duty 144.10 144.10

Income Tax 6,904.98 6,900.28

Service Tax 113.06 93.74

Property Cases 47.36 47.36

The management believes that the claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of above matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:

(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount; " (ii) the proceedings are in early stages;

(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations; (iv) there are significant factual issues to be resolved; and/or (v) there are novel legal issues presented.

However, in respect of the above matters, management does not believe, based on currently available information, that the outcomes of the litigation, will have a material adverse effect on the Company''s financial condition, though the outcomes could be material to the Company''s operating results for any particular period, depending, in part, upon the operating results for such period.

(ii) commitments

(A) During the financial year 2010-11, the Company had acquired a majority of the equity shares of Metahelix Life Sciences Limited ("Metahelix"). Besides, the shares already acquired, it has allowed the founder shareholders, a put option exercisable over a period of 1 years (Previous Year: 2 years), 6,895 shares held by them for an amount aggregating Rs. 1,348.59 lac (Previous Year: 6,895 shares for an amount aggregating Rs. 1,348.59 lac). At the end of 3 years, the Company has a call option to acquire the balance shares held by the founder shareholders, at the fair market value as at the date of exercise.

(B) Estimated amount of contracts remaining to be executed on capital account of tangible assets is Rs. 774.96 lac (Previous YearX 826.79 lac) and Intangible assets is Rs. 274.27 lac (Previous YearX 144.01 lac) against which advances paid aggregate X 200.02 lac (Previous YearX 303.93 lac).

(C) For lease commitments and derivatives, refer note no 26 and 37 respectively.

During the year the Company has also incurred Rs. 234.83 lac (Previous Year Rs. 242.20 lac) towards capital research and development expenditure which is included under Intangible Assets under Development. The total amount included in Intangible Assets under Development as at 31st March 2015 is Rs. 665.86 lac (Previous YearRs.693.42 lac).

The above figures include the amounts based on separate accounts for the Research and Developments ("R&D") Centre recognised by the Department of Scientific & Industrial Research ("DSIR"), Ministry of Science and Technology for in- house research (consonance with the DSIR guidelines for in-house R & D Centre will be evaluated at the time of filing the return with DSIR).

Due to the numerous uncertainties and variables associated with certain assumptions and judgments, and the effects of changes in the regulatory and legal environment, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. The Company regularly monitors its estimated exposure to such loss contingencies and, as additional information becomes known, may change its estimates significantly. However, no estimate of the range of any such change can be made at this time.

4 SEGMENT REPORTING

The Company has determined its business segment as "Agri - Inputs" comprising of Pesticides, Plant Growth Nutrients and Seeds. The other business segment comprises "Polymer" and is non reportable.

(i) Segment Revenue includes Sales of Products less Excise Duty.

(ii) Unallocable assets include Investments, Advance Income Tax, Advance Fringe Benefit Tax, Interest Accrued on Investments and Fixed Deposits.

(iii) Unallocable liabilities includes Long Term Borrowings (includes current maturities on long-term debt), Short Term Borrowings, Provisions for Equity Dividend and tax thereon, Provision for Supplemental Payments, Provision for Income and Fringe Benefit Tax and Deferred Tax Liabilities.

(iv) Unallocable income includes income from investment activities.

(v) Unallocable expenditure includes charge in respect of Supplemental Payments on retirement valued on actuarial basis.

5 FOREIGN cURRENcY EXPOSURES :-

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

(a) Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

6 EMPLOYEE BENEFIT OBLIGATIONS:

Defined-Benefits Plans:

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers former certain executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of profit and loss.

The estimates of future salary increases, considered in the actuarial valuation, take into account inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

Defined-contribution Plans:

The Company makes Provident Fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company in case of certain locations. The Company is generally liable for annual contributions and any deficiency compared to interest computed based on the rate of interest declared by the Central Government under the Employees'' Provident Fund Scheme, 1952 and recognises, if any, as an expense in the year it is determined.

As of 31 March, 2015, the fair value of the assets of the fund and the accumulated members'' corpus is Rs. 4,277.07 lac and Rs. 4,086.86 lac respectively. In accordance with an actuarial valuation, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest of 8.75%. The actuarial assumptions include discount rate of 7.74% and an average expected future period of 6 years.

Amount recognised as expense and included in the Note 22 Â "Contribution to Provident and Other Funds" Â Rs. 495.10 lac (Previous Year Rs. 440.65 lac).

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on 1 April, 2014, and has adjusted an amount ofRs. 236.63 lac (net of deferred tax ofRs. 121.92 lac) against the opening surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 557.99 lac consequent to the change in the useful life of the assets.

7 The Company had invested Rs. 880.00 lac in Non-Convertible Debentures ("NCDs") of Advinus Therapeutics Ltd. having a coupon rate of 4.25%. The NCDs were redeemable between December 2010 and May 2013 at a premium of 25%.

Income recognised during the year includes Nil (Previous YearRs. 0.38 lac) in respect of redemption premium determined on the basis of the internal rate of return. During the year debentures amounting to Nil (Previous YearRs. 103.84 lac) were redeemed at a 25% premium which aggregated Nil (Previous YearRs.25.96 lac).

8 Previous years'' figures have been regrouped / restated wherever necessary to conform to the classification of the current year.

Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

(i) Contingent Liabilities:

Rs. lacs

Particulars As at As at 31st March, 31st March, 2014 2013

a. Claims against the Company not acknowledged as debts:

- Sales Tax 2,032.72 2,000.40 - Excise Duty 401.56 360.84

- Customs Duty 144.10 144.10

- Income Tax 6,900.28 6,838.48

- Service Tax 93.74 65.21

- Property Cases 47.36 47.36

- Labour Cases 98.79 109.00

- Other cases 89.98 109.56

- Number of cases where amount is not quantifiable 41 Nos. (Previous Year 41 Nos.)

b. Other money for which the company is contingently liable:

- Bills Discounted (fully covered by buyer''s letters of credit) 458.01 1,547.36

10,266.54 11,222.31

Note :

The Company does not expect any liability in respect of items (a) and (b ) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

(ii) Commitments

(A) During the financial year 2010-11, the Company had acquired a majority of the equity shares of Metahelix Life Sciences Limited ("Metahelix"). Besides, the shares already acquired, it has allowed the founder shareholders, a put option exercisable over a period of 2 years (Previous Year: 3 years), 6,895 shares held by them for an amount aggregating Rs.1,348.59 lacs (Previous Year: 8,433 shares for an amount aggregating Rs.1,649.11 lacs). The Commitment made in the previous year to acquire 2,591 equity shares from certain shareholder (other than founder shareholder) for an amount aggregating Rs.506.77 lacs has been fulfilled during the year.

At the end of 3 years, the Company has a call option to acquire the balance shares held by the founder shareholders, at the fair market value as at the date of exercise.

(B) Estimated amount of contracts remaining to be executed on capital account of tangible assets isRs.826.79 lacs (Previous Year Z934.83 lacs) and Intangible assets is Rs.144.01 lacs (Previous Year Z12.80 lacs) against which advances paid aggregate Rs.303.93 lacs (Previous Yeart144.54 lacs).

(C) For lease commitments and derivatives, refer note no 28 and 39 respectively.

2. FOREIGN CURRENCY EXPOSURES :-

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

(a) Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

3. RELATED PARTY DISCLOSURES :

Disclosure as required by Accounting Standard (AS) - 18 "Related Party Disclosures" as prescribed under section 211 (3C) of the Companies Act, 1956.

(a) Names of the related parties and description of relationship:

(i) Holding / Ultimate Holding Company : Tata Chemicals Limited

(ii) Subsidiary Companies: Rallis Chemistry Exports Ltd

Metahelix Life Sciences Ltd

Dhaanya Seeds Ltd (Merged with Metahelix Life Sciences Ltd. w.e.f 1st April, 2013)

Zero Waste Agro Organics Ltd. w.e.f 18th October,2012

(iii) Key Management Personnel : Mr.V.Shankar - Managing Director & CEO

4. EMPLOYEE BENEFIT OBLIGATIONS: Defined-Benefits Plans:

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of profit and loss.

Defined-Contribution Plans:

Amount recognised as expense and included in the Note 24 - "Contribution to Provident and Other Funds" - Rs. 440.65 lacs (Previous Year Z408.53 lacs).

5. Trade Payable includes amount payable to Micro, Small and Medium Enterprises as follows:

a The total amount of delayed payments during the year aggregate Rs. 58.48 lacs in respect of 28 parties with amounts ranging from Rs. 0.02 lacs to Rs.20.96 lacs. (Previous Year Rs. *14.94 lacs in respect of 7 parties with amounts ranging from Rs. 0.03 lacs to T4.01 lacs).

b The amount of principal outstanding in respect of the above as at Balance Sheet date is Rs. 843.45 lacs in respect of 45 parties (Previous Year T596.34 lacs in respect of 31 parties with amounts ranging from f0.13 lacs to 144.29 lacs) with amounts ranging from Rs. 0.15 lacs to Rs. 152.90 lacs.

c The total interest payable on account of delayed payment during the year is Rs. 0.15 lacs. The Company has made payment of Rs. 0.15 lacs during the year. The total interest payable aggregates Rs. NIL (Previous Year Rs. NIL) and outstanding balance as at the year end is Rs. NIL (Previous Year Rs. NIL).

6. The Company had invested Rs. 880.00 lacs in Non-Convertible Debentures ("NCDs") of Advinus Therapeutics Ltd. having a coupon rate of 4.25%. The NCDs is redeemed between December 2010 and May 2013 at a premium of 25%. Income recognised during the year includes Rs. 0.38 lacs (Previous Year T28.49 lacs) in respect of redemption premium determined on the basis of the internal rate of return. During the year debentures amounting to Rs. 103.84 lacs (Previous Year T296.15 lacs) were redeemed at a 25% premium which aggregated Rs. 25.96 lacs (Previous Year T74.04 lacs).

7. Previous yearsÂ figures have been regrouped / restated wherever necessary to conform to the classification of the current year.

Mar 31, 2013

A. The Equity Shares of the Company have voting rights and are subject to the preferential rights as prescribed under law or those of the preference shareholders, if any. The Equity Shares are also subject to restrictions as prescribed under the Companies Act, 1956.

b. As per records of the company, no calls remain unpaid by the directors and officers of the Company as on 31st March, 2013.

a. 750 (Previous Year: 750) 9.05% Secured Redeemable Non-Convertible Debentures (2010-11 Series 1) having a face value of Rs. 10 lacs each redeemable at par on 29th October, 2013.

b. These Non Convertible Debentures are secured by a first pari-passu mortgage over factory building and certain plant and machinery of Ankleshwar and Lote units.

c. The Company can repurchase some or all of the debentures at any time prior to date of redemption. The Company has the right to re-issue debentures bought back subject to provisions of the Companies Act, 1956.

Notes :

(i) # Other guarantees issued by Bank for which the Company is contingently liable. These are covered by the charge created in favour of Company''s bankers by way of hypothecation of stock and debtors.

(ii) The Company does not expect any liability in respect of items (a), (b) and (c ) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

(ii) Other Commitments :

(A) During the financial year 2010-11, the Company had acquired a majority of the equity shares of Metahelix Life Sciences Limited (Metahelix). Besides, the shares already acquired, it has made the following Commitmets:

(a) to acquire shares from certain shareholders (other than founder shareholders) 2,591 equity shares for an amount aggregating Rs. 506.77 lacs. (previous year 2,591 equity shares held by them for an amount aggregating Rs. 506.77 lacs.)

(b) to allow the founder shareholders, a put option exercisable over a period of 3 years (Previous Year: 4 years), 8,433 shares held by them for an amount aggregating Rs. 1,649.11 lacs (Previous Year: 11,244 shares for an amount aggregating Rs. 2,199.21 lacs).

At the end of 3 years, the Company has a call option to acquire the balance shares held by the founder shareholders, at the fair market value as at the date of exercise.

(B) During the financial year 2012-13, the Company has acquired 12,956 equity shares of Zero Waste Agro Organics Private Limited (ZWAOPL) for an amount aggregating to Rs. 1,000.07 lacs. Besides, the shares already acquired, it has made the following commitments:

(a) Investment of Rs. 1,900.03 lacs in respect to ZWAOPL effectively taking the shareholding of Rallis to 50.06%.

(C) Estimated amount of contracts remaining to be executed on capital account of tangible assets is Rs. 934.83 lacs (Previous Year Rs. 1,848.66 lacs) against which advances paid aggregate Rs. 144.54 Lacs (Previous Year Rs. 150.21 lacs) and Intangible assets is Rs. 12.80 lacs (Previous Year Rs. 95.79 lacs).

(D) For derivatives and lease commitments, refer note no 42 and 28 respectively.

1 The Company has procured motor vehicles under non-cancellable operating leases. Lease rent charged to the Statement of Profit and Loss during the year is Rs. 427.84 lacs (Previous Year Rs. 203.53 lacs) net of amount recovered from employees Rs. 3.59 lacs (Previous Year Rs. 2.34 lacs). Disclosures in respect of non-cancellable leases are given below:

During the year the Company has also incurred Rs. 919.94 lacs (Previous Year Rs.471.14 lacs) towards development expenditure which is included under Intangible Assets under Development/Capital work in progress. The total amount included in Intangible Assets under Development/Capital work in progress as at 31st March 2013 is Rs. 1,094.17 lacs (Previous Year Rs. 1,638.98 lacs).

Included in the foregoing is an amount of Rs. 422.69 lacs (Previous Year Rs. 582.94 lacs) paid to an external agency.

2 SEGMENT REPORTING:

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standard (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.

3 FOREIGN CURRENCY EXPOSURES

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

The net loss on the derivative instrument of Rs. 63.40 lacs (net of Deferred Tax Asset of Rs. 30.45 lacs) recognised in 2011-2012 in the Hedging Reserve Account has been recycled in the Statement of Profit and Loss in 2012-2013.

4 RELATED PARTY DISCLOSURES :

Disclosure as required by Accounting Standard (AS) - 18 "Related Party Disclosures" as prescribed under section 211 (3C) of the Companies Act, 1956.

(a) Names of the related parties and description of relationship:

(i) Holding / Ultimate Holding Company : Tata Chemicals Limited

(ii) Subsidiary Companies: Rallis Chemistry Exports Ltd

Metahelix Life Sciences Ltd Dhaanya Seeds Ltd

Zero Waste Agro Organics Pvt. Ltd. w.e.f 18th October,2012 Rallis Australasia Pty Ltd.(Liquidated on 25th January, 2012)

(iii) Key Management Personnel : Mr.V.Shankar - Managing Director & CEO

5 EMPLOYEE BENEFIT OBLIGATIONS:

Defined-Benefits Plans:

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of profit and loss.

Defined-Contribution Plans:

Amount recognised as expense and included in the Note 24 Â "Contribution to Provident and Other Funds" Â Rs.408.53 lacs (Previous Year Rs.413.78 lacs).

6 TRADE PAYABLE INCLUDES AMOUNT PAYABLE TO MICRO, SMALL AND MEDIUM ENTERPRISES AS FOLLOWS:

a The total amount of delayed payments during the year aggregate Rs. 14.94 lacs in respect of 7 parties with amounts ranging from Rs. 0.03 lacs to Rs. 4.01 lacs. (Previous Year Rs.37.62 lacs in respect of 7 parties with amounts ranging from Rs.0.57 lacs to Rs.17.11 lacs).

b The amount of principal outstanding in respect of the above as at Balance Sheet date is Rs. 596.34 lacs in respect of 31 parties (Previous Year Rs.379.67 lacs in respect of 28 parties with amounts ranging from Rs.0.02 lacs to Rs.166.60 lacs) with amounts ranging from Rs. 0.13 lacs to Rs. 144.29 lacs.

c The total interest payable on account of delayed payment during the year is Rs. 0.03 lacs. The Company has made payment of Rs. 0.14 lacs during the year. The total interest payable aggregates Rs. Nil (Previous Year Rs.0.12 lacs) and this entire amount was paid, outstanding balance as at the year end is Nil.

7 The Company has invested Rs. 880.00 lacs in Non-Convertible Debentures ("NCDs") of Advinus Therapeutics Ltd. having a coupon rate of 4.25%. The NCDs will be redeemed between December 2010 and May 2013 at a premium of 25%. Income recognised during the year includes Rs. 28.49 lacs (Previous Year Rs. 22.72 lacs) in respect of redemption premium determined on the basis of the internal rate of return. During the year debentures amounting to Rs. 296.15 lacs (Previous Year Rs. 290.40 lacs) were redeemed at a 25% premium which aggregated Rs. 74.04 lacs (Previous Year Rs. 72.60 lacs).

8 During the year, the Company has acquired / subscribed to equity shares comprising 22.81% of the equity shares of Zero Waste Agro Organics Private Limited (ZWAOPL).

9 During the previous year, Rallis Australasia Pty. Ltd. a subsidiary of the Company has been liquidated. The Company has received an amount of Rs. 107.69 lacs as a surplus over its investment on account of liquidation.

10 Previous years''s figures have been regrouped / restated wherever necessary to conform to the classification of the current year.

Mar 31, 2012

A. The Equity Shares of the Company have voting rights and are subject to the preferential rights as prescribed under law or those of the preference shareholders, if any. The Equity Shares are also subject to restrictions as prescribed under the Companies Act, 1956.

b. Shares held by Holding /Ultimate Holding Company and /or its subsidiaries /associates:

Out of total equity shares issued by the Company, shares held by its holding company, ultimate holding company and its subsidiaries/associates are as below:

Footnotes:

a. A sum of Rs Nil (Previous Year Rs437.83 lacs) representing amount received by the Company in earlier years on surrender of tenancy rights has been transferred to the General Reserve.

b. An amount of Rs Nil (Previous Year Rs648.23 lacs) out of the Capital Redemption Reserve was utilised for the issue of Nil (Previous Year 6,482,295) fully paid up Bonus Shares of Rs 10 each.

c. An amount of Rs Nil (Previous Year Rs17.80 lacs)appropriated to Investment Allowance Reserve has been fully utilized for acquisition of new plant and machinery, the balance has been transferred to General Reserve.

d. As the entity is not engaged in non banking finance activities the amount appropriated to Reserve under section 45IC of the Reserve Bank of India Act, 1934, a balance of Rs Nil (Previous Year Rs10.39 lacs) has been transferred to General Reserve.

e. The amount appropriated/transferred to General Reserve during the year comprises

(a) Rs Nil (Previous Year Rs466.02 lacs) transferred as per footnotes a,c and d.

(b) Rs 1,013.90 lacs (Previous YearRs 1,262.13 lacs) has been appropriated out of the Statement of Profit and Loss to the General Reserve during the year.

a. 750 (Previous Year: 750) 9.05% Secured Redeemable Non-Convertible Debentures (2010-11 Series 1) having a face value of Rs 10 lacs each redeemable at par on 29th October, 2013.

b. These Non Convertible Debentures are secured by a first pari-passu mortgage over factory building and certain plant and machinery of Ankleshwar and Lote units.

c. The Company can repurchase some or all of the Debentures at any time prior to date of redemption. The Company has the right to re-issue debentures bought back subject to provisions of The Companies Act, 1956.

Footnotes:

1. Cost of buildings includes cost of 50 shares (Previous Year 50 shares) of Rs 50 each fully paid and cost of 5 shares (Previous Year 5 shares) of Rs 100 each fully paid in respect of ownership flats in 7 (Previous Year 7) Co-operative Societies.

2. Buildings include an asset having gross block of Rs 169.29 lacs (Previous Year Rs 181.63 lacs) and net block of Rs 116.06 lacs (Previous Year Rs127.10 lacs) where the conveyance in favour of the Company is not completed.

3. Fixed assets include Rs 434.98 lacs (Previous Year Rs449.45 lacs) representing the book value of assets held for disposal. The Management expects to recover amounts higher than the carrying value of these assets.

1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) :

(i) Contingent Liabilities: lacs

Particulars 2011-12 2010-11

a. Claims against the Company not acknowledged as debts:

- Sales Tax 2,158.63 1,916.59

- Excise Duty 360.84 360.84

- Customs Duty 149.50 149.50

- Income Tax 6,655.04 6,583.76

- Service Tax 42.14 35.03

- Property Cases 47.36 47.36

- Labour Cases 109.00 103.75

- Other cases 472.01 453.79

- Number of cases where amount is not quantifiable 41 Nos.

(Previous Year 29 Nos.)

b. Guarantees # 3.10 1.10

c. Other money for which the company is contingently liable:

- Bills Discounted 104.10 338.56

10,101.72 9,990.28

(ii) Other Commitments:

(A) During the financial year 2010-11, the Company had acquired a majority of the equity shares of Metahelix Life Sciences Limited (Metahelix). Besides, the shares already acquired, it has made the following commitments:

(a) to acquire shares from certain shareholders (other than founder shareholders) 2,591 equity shares amount aggregating Rs 506.77 lacs. (previous year 16,099 equity shares held by them for an amount aggregating Rs3,148.80 lacs.)

(b) to allow the founder shareholders, a put option exercisable over a period of 4 years (Previous Year: 5 years), 11,244 shares held by them for an amount aggregating Rs 2,199.21 lacs (Previous Year: 14,055 shares for an amount aggregating Rs2,749.02 lacs).

At the end of 4 years, the Company has a call option to acquire the balance shares held by the founder shareholders, at the fair market value as at the date of exercise.

(B) Estimated amount of contracts remaining to be executed on capital account is Rs 1,944.45 lacs ( Previous Year Rs 2,451.22 lacs) against which advances paid aggregate to Rs 144.15 Lacs (Previous Year Rs 1,676.34 lacs).

Notes :

(i) # Other guarantees issued by Bank for which the Company is contingently liable. These are covered by the charge created in favour of Company's bankers by way of hypothecation of stock and debtors.

(ii) The Company does not expect any liability in respect of items (a), (b) and (c ) of item (i) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

2 The Company has procured 126 motor vehicles (Previous Year 44 Nos) under non-cancellable operating leases. Lease rent charged to the Statement of Profit and Loss during the year is Rs 203.53 lacs (Previous Year Rs 23.81 lacs) net of amount recovered from employees Rs 2.34 lacs (Previous Year Rs8.22 lacs). Disclosures in respect of non-cancellable leases are given below:

During the year the Company has also incurred Rs 471.14 lacs (Previous Year Rs 445.98 lacs) towards capital research and development expenditure which is included under Intangible Assets under Development/Capital work in progress. The total amount included in Intangible Assets under Development/Capital work in progress as at 31st March 2012 is Rs 1,638.98 lacs (Previous Year Rs 1,167.84 lacs).

Included in the foregoing is an amount of Rs 582.94 lacs (Previous Year Rs364.14 lacs) paid to an external agency.

Footnotes:

(i) Licensed Capacity - Delicensed vide Gazette Notification No. S.O.477 (E) dated 25.07.1991.

(ii) Figures in italics are in respect of the previous year.

(iii) Production figures are net of captive consumption and exclude by-products.

(iv) Production includes quantities manufactured at sub-contracting plants. Installed capacity represents capacity installed at the Company's facilities.

(v) N.A. = Not Applicable.

# During the year ended 31st March, 2012, the Company's Equity Shares of face value of Rs 10 each were sub-divided into ten Equity Shares of face value of Rs 1 each. Hence Basic and Diluted Earning Per Share for previous year presented has been adjusted as required by Accounting Standard 20 "Earning Per Share'.

3 FOREIGN CURRENCY EXPOSURES :

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

(a) The following derivative instruments are outstanding as at balance sheet date:

4 EMPLOYEE BENEFIT OBLIGATIONS:

Defined-Benefits Plans:

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Statement of profit and loss.

*The figures in respect of previous one period is not available.

The contributions expected to be made by the Company during the financial year 2012-13 amount to Rs 230.18 lacs. Defined-Contribution Plans:

Amount recognised as expense and included in the Note 23 Ã "Contribution to Provident and Other Funds" Ã Rs 413.78 lacs (Previous Year Rs450.21 lacs).

5 TRADE PAYABLE INCLUDES AMOUNT PAYABLE TO MICRO, SMALL AND MEDIUM ENTERPRISES AS FOLLOWS:

a The total amount of delayed payments during the year aggregate Rs 37.62 lacs in respect of 7 parties with amounts ranging from Rs 0.57 lacs to Rs 17.11 lacs. (Previous Year Rs 1,552.36 lacs in respect of 61 parties with amounts ranging from Rs 0.01 lacs to Rs 47.48 lacs). b The amount of principal outstanding in respect of the above as at Balance Sheet date is Rs 379.67 lacs in respect of 28 parties (Previous Year Rs 339.06 lacs in respect of 35 parties with amounts ranging from Rs 0.06 lacs to Rs 83.39 lacs) with amounts ranging from Rs 0.02 lacs to Rs 166.60 lacs.

c The total interest payable on account of delayed payment during the year is Rs 0.12 lacs. The Company has made payment of Rs 34.37 lacs during the year. The total interest payable aggregates Rs 0.12 lacs (Previous Year Rs 40.78 lacs) and this entire amount was outstanding as at the year end.

6 The Company has invested Rs 880.00 lacs in Non-Convertible Debentures ("NCDs") of Advinus Therapeutics Pvt. Ltd. having a coupon rate of 4.25%. The NCDs will be redeemed between December 2010 and May 2013 at a premium of 25%. Income recognised during the year includes Rs 22.72 lacs (Previous Year Rs30.44 lacs) in respect of redemption premium determined on the basis of the internal rate of return. During the year debentures amounting to Rs 290.40 lacs (Previous Year Rs 189.62 lacs) were redeemed at a 25% premium which aggregated Rs 72.60 lacs (Previous Year Rs47.96 lacs).

7 During the year, Rallis Australasia Pty. Ltd. a subsidiary of the Company has been liquidated. The Company has received an amount of Rs 107.69 lacs as a surplus over its investment on account of liquidation.

8 Previous years's figures have been regrouped / restated wherever necessary to conform to the classification of the current year.

Mar 31, 2011

1. Contingent Liabilities: -

(a) Demands contested by the Company Rs. lacs

As at 31st March 2011 2010

- Sales Tax* 1,916.59 1,917.82

- Excise Duty 360.84 378.77

- Customs Duty 149.50 144.10

- Income Tax 6,583.76 3,754.60

- Service Tax 35.03 1.85

- Property Cases 47.36 47.36

- Labour Cases 103.75 156.71

- Other Cases 453.79 449.82

- Number of cases where amount is not quantifiable 29 Nos; (Previous year 31 Nos)

(b) Bills discounted 338.56 Nil

(c) Uncalled partly paid shares held as Investments Nil 4.34

(d) Other guarantees issued by Bank for which the Company is contingently liable to Rs. 1.10 lacs (Previous Year Rs.2.00 lacs). These are covered by the charge created in favour of Companys bankers by way of hypothecation of stock and debtors.

The Company does not expect any liability in respect of item (a), (b) and (d) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

2. Estimated amount of contracts remaining to be executed on capital account is Rs. 2,451.22 lacs (Previous Year Rs. 8,550.75 lacs) against which advances paid aggregate to Rs. 1,676.34 lacs (Previous Year Rs.3,145.49 lacs).

3. During the year, the Company acquired a majority of the equity shares of Metahelix Life Sciences Limited (Metahelix). Besides, the shares already acquired, it has made the following commitments:

(a) to acquire from certain shareholders (other than founder shareholders) 16,099 equity shares held by them for an amount aggregating Rs. 3,148.80 lacs;

(b) to allow the founder shareholders, a put option exercisable over a period of 5 years, 14,055 shares held by them for an amount aggregating Rs. 2,749.02 lacs;

At the end of 5 years, the Company has a call option to acquire the balance shares held by founder shareholders, at the fair market value as at the date of exercise.

4. The shareholders approved the issue of 6,482,296 fully paid up Equity Shares of Rs. 10 each as bonus share in the proportion of one bonus share for every two equity shares held by postal ballot on May 29, 2010. Accordingly, a sum of Rs. 648.23 lacs has been transferred to Equity Share Capital Account from Capital Redemption Reserve Account. Consequently, the earnings per share have been adjusted for all the periods presented. As no cash flows were involved, the same has not been disclosed under financing activity.

5. Fixed assets include Rs. 449.45 lacs (Previous Year Rs. 720.14 lacs) representing the book value of assets held for disposal. The Management expects to recover amounts higher than the carrying value of these assets.

6. Amount payable to Micro, Small and Medium Enterprises are as follows:

(a) The total amount of delayed payments during the year aggregates Rs. 1,552.36 lacs in respect of 61 parties (Previous Year Rs. 1174.14 lacs in respect of 106 parties with amounts ranging from Rs. 0.01 lacs to Rs. 34.61 lacs) with amounts ranging from Rs. 0.01 lacs to Rs. 47.48 lacs.

(b) The amount of principal outstanding in respect of the above as at Balance Sheet date is Rs. 339.06 lacs in respect of 35 parties (Previous Year Rs. 387.20 lacs in respect of 90 parties with amounts ranging from Rs. 0.01 lacs to Rs. 171.41 lacs) with amounts ranging from Rs. 0.06 lacs to Rs. 83.39 lacs.

(c) The total interest payable on account of delayed payment during the year is Rs. 17.09 lacs. The Company has made payments of Rs. 1.20 lacs during the year. The total interest payable aggregates to Rs. 40.78 lacs (Previous Year Rs. 28.49 lacs) and this entire amount was outstanding as at the year end.

7. Secured Loans :-

(a) Bank overdrafts and temporary loans have been secured by a first charge by way of hypothecation of stocks and receivables. The hypothecation also extends to guarantees issued by the Companys Bankers in the ordinary course of business.

(b) Loans from others on account of purchase of vehicles have been secured by way of hypothecation of vehicles.

(c) 750 Secured, Redeemable, Non Convertible Debentures 2010-11 Series I (Non Convertible Debentures) of face value of Rs. 10 lacs each were issued on 29.10.2010 amounting to Rs. 7,500.00 lacs with redemption period of 3 years at 9.05% rate of interest. These Non Convertible Debentures are secured by a first pari-passu mortgage over factory building and certain plant and machinery of Ankleshwar and Lote units.

The terms of operating lease do not contain any exceptional / restrictive covenants. Premises are taken by the Company on operating leases that are cancellable.

8. ÃSundry DebtorsÃ include Rs. Nil (Previous Year Rs. Nil), being amount receivable from Rallis Australasia Pty. Ltd. (RAPL), a wholly owned subsidiary. The maximum amount outstanding during the year was Rs. 5.85 lacs (Previous Year Rs.1,101.46 lacs).

Also, included in ÃLoans and AdvancesÃ is a sum of Rs. 18.61 lacs (Previous Year Rs.18.61) being amount due from Rallis Chemistry Exports Ltd., a wholly owned subsidiary. The maximum amount outstanding during the year was Rs. 18.61 lacs (Previous Year Rs. 18.61 lacs).

* includes amount of Rs. 364.14 lacs (Previous Year Rs. 129.37 lacs) paid to an external agency.

# Recast

During the year the Company has also incurred Rs. 445.98 lacs (Previous Year Rs. 271.31 lacs) towards product development and registration which is included under Capital Work in Progress (ÃCWIPÃ). The total amount included in CWIP as at 31st March 2011 Rs. 1,161.53 lacs (Previous Year Rs. 715.57 lacs). Out of the CWIP a sum of Rs. Nil lacs (Previous Year Rs. 398.44 lacs) was written off during the year.

* Commission payable to Managing Director for the year 2010-11 includes Rs. 40 lacs relating to the previous year (Previous Year Rs. 5 lacs).

# Commission payable to Non Whole Time Directors for the year 2009-10 includes Rs. 5 lacs relating to the corresponding previous year.

(b) Directors Remuneration

The remuneration reported above excludes contributions to gratuity fund and provision for leave encashment since the same are ascertained on an aggregated basis for the Company as a whole by way of actuarial valuation and separate values attributable to the Managing Director are not available.

9. ÃOther IncomeÃ includes net gain of Rs. 177.14 lacs (Previous Year net gain of Rs. 134.34 lacs grouped under ÃOther IncomeÃ) on account of foreign currency translation differences.

10. Segment Reporting

The Company has determined its business segment as ÃAgri - InputsÃ comprising of Pesticides, Plant Growth Nutrients and Seeds. The other business segment comprises ÃPolymerÃ and is non reportable.

b. Secondary Segment Information

Figures in italics relate to the previous year.

All tangible and intangible fixed assets of the Company are situated in India and therefore cost incurred during the year for acquisition of such assets under different geographic segments is not furnished.

Footnotes:

(i) Unallocable assets include Deferred Tax Assets, Investments, Advance Income Tax, Advance Fringe Benefits Tax and Interest Accrued on Investments.

(ii) Unallocable liabilities includes Secured Loans, Unsecured Loans, Provisions for Equity Dividend and tax thereon, Provisions for Preference Dividend and tax thereon, Provision for Supplemental Payments on Retirement, Provision for Pension under Voluntary Retirement Schemes and Provision for Income and Fringe Benefit Tax.

(iii) Unallocable income includes income from investment activities.

(iv) Unallocable expenditure includes charge in respect of Supplemental Payments on retirement valued on actuarial basis.

11. Related Party Disclosures

Disclosure as required by Accounting Standard (AS) - 18 ÃRelated Party DisclosuresÃ as prescribed under section 211 (3C) of the Companies Act, 1956.

(a) Names of the related parties and description of relationship:

(i) Promoters: Tata Chemicals Limited

Tata Tea Limited - up to 18.08.2009

Tata Sons Limited - up to 18.08.2009

Tata Investment Corporation

Ewart Investments Limited

Tata AIG Life Insurance Co. Limited (w.e.f.- 21.05.2010)

(ii) Holding Company: Tata Chemicals Limited on and from 09.11.2009

(iii) Subsidiary Companies: Rallis Australasia Pty. Ltd. (Under liquidation from-31.03.2011) Rallis Chemistry Exports Ltd. as and from 07.07.2009 Metahelix Life Sciences Ltd (w.e.f -30.12.2010) Dhaanya Seeds Ltd. (w.e.f -30.12.2010)

(iv) Key Management Personnel: Mr.V.Shankar - Managing Director & CEO

Footnotes: -

(i) Licensed Capacity - Delicensed vide Gazette Notification No. S.O.477 (E) dated 25.07.1991.

(ii) Figures in italics are in respect of the previous year.

(iii) Production figures are net of captive consumption and exclude by-products (Previous Year Recast).

(iv) Production includes quantities manufactured at sub-contracting plants. Installed capacity represents capacity installed at Companys facilities.

(v) N.A. = Not Applicable.

Footnote: -

Figures in italics are in respect of the previous year.

Out of investments made during the year disclosed above, Rs. 31,736.06 lacs (Previous Year Rs. 67,914.74 lacs) were on account of switches not requiring the use of Cash and Cash Equivalents. Therefore, these amounts are not included under ÃInvesting ActivitiesÃ in the Cash Flow Statement.

12. The Company has invested Rs. 880.00 lacs in Non - Convertible Debentures (ÃNCDsÃ) of Advinus Therapeutics Pvt. Ltd. having a coupon rate of 4.25%. The NCDs will be redeemed between December 2010 and May 2013 at a premium of 25%. Income recognised during the year includes Rs. 30.44 lacs (Previous Year Rs. 33.32 lacs) in respect of redemption premium determined on the basis of the internal rate of return. During the year debentures amounting to Rs. 189.62 lacs were redeemed at a 25% premium which aggregated Rs. 47.96 lacs.

13. Foreign Currency Exposures :-

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Companys strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Companys Risk Management Policy. The Company does not use forward contracts for speculative purposes.

The net gain on the derivative instrument of Rs. 73.66 lacs (net of Deferred Tax Liability of Rs. 35.38 lacs) is recognised in the Hedging Reserve Account as at 31st March, 2011 of which Rs. 62.02 lacs (Previous Year Rs. 64.49 lacs) is expected to be reclassified in the Profit and Loss Account by 31st March 2012.

14. Employee Benefit Obligations

Defined-Contribution Plans

The Company makes contributions towards provident fund, family pension fund and superannuation fund to defined contribution retirement benefit plans for qualifying employees. The provident fund is administered by the Trustees of Rallis India Limited Provident Fund Trust, the family pension fund is administered by the Government of India and the superannuation fund is administered by the Life Insurance Corporation of India and HDFC Standard Life Insurance Company Ltd. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit. The rules of the Companys Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared by the Employees Provident Fund by the Government under paragraph 60 of the Employees Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

A sum of Rs. 450.21 lacs (Previous Year Rs. 383.96 lacs) has been charged to the revenue account in this respect.

Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). Benefits under the defined benefit plans are typically based either on years of service and the employees compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on ÃProjected Unit CreditÃ method. Gains and losses of changed actuarial assumptions are charged to the profit and loss account.

The plan assets are managed by the Gratuity Trust formed by the Company. The management of funds is entrusted with the Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited.

15. Rallis Australasia Pty. Ltd., a subsidiary of the Company, has applied for voluntary liquidation as of 31st March, 2011. The Company expects to recover an amount higher than the carrying value of the investment.

16. Previous years figures have been regrouped / restated wherever necessary to conform to the classification of the current year.

Mar 31, 2010

Rs. lacs

As at As at 31st March, 31st March, 2010 2009

1. Contingent Liabilities :-

(a) Demand contested by the Company

Sales tax 1,917.82 1,651.18

Excise duty 378.77 378.77

Customs Duty 144.10 144.10

Income Tax 3,754.60 1,455.55

Service tax 1.85 1.85

Property cases 47.36 63.56

Labour cases 156.71 197.86

Other Cases 449.82 536.87

Number of cases where amount is not quantifiable 31 Nos.; (Previous Year 26 Nos.)

(b) Bills discounted Nil 987.36

(c) Uncalled partly paid shares held as Investments 4.34 4.34

(d) The Company has given a guarantee to a bank against the borrowings of its subsidiary. As at 31st March, 2010, the amount outstanding in respect of the borrowing in the financial statements of the subsidiary amounts to Rs. Nil (AUD Nil) (Previous Year Rs. 192.38 lacs) (AUD 0.55 million).

(e) Other guarantees given to Government authorities for which the Company is contingently liable to Rs. 2.00 lacs (Previous Year Rs. 41.60 lacs).

The Company does not expect any liability in respect of item (a), (b), (d) and (e) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

2. Estimated amount of contracts remaining to be executed on capital account is Rs. 8,550.75 lacs (Previous Year Rs. 1,703.28 lacs) including advances paid aggregating Rs. 3,145.49 lacs (Previous Year Rs. 1,083.94 lacs).

3. Fixed assets include Rs. 720.14 lacs (Previous Year Rs. 769.52 lacs) representing the book value of assets held for disposal. The Management expects to recover amounts higher than the carrying value of these assets.

4. Amount payable to Micro, Small and Medium Enterprises are as follows:

a. The total amount of delayed payments during the year aggregated to Rs. 1,174.14 lacs in respect of 106 parties (Previous Year Rs. 514.02 lacs in respect of 117 parties with amounts ranging from Rs. 0.01 lac to Rs. 61.74 lacs) with amounts ranging from Rs. 0.01 lac to Rs. 34.61 lacs.

b. The amount of principal outstanding in respect of the above as at Balance Sheet date is Rs.387.20 lacs in respect of 90 parties (Previous Year Rs. 100.89 lacs in respect of 30 parties with amounts ranging from Rs. 0.06 lacs to Rs. 17.66 lacs) with amounts ranging from Rs. 0.01 lac to Rs. 171.41 lacs.

c. The total interest payable on account of delayed payment aggregates to Rs. 28.49 lacs (Previous Year Rs. 26.96 lacs) and this entire amount was outstanding as at the year end.

5. The charge in favour of the CompanyÃs bankers by way of hypothecation of stocks and receivables has been created to secure facilities granted by the bankers in the normal course of business including guarantees executed, bank overdrafts and temporary loans.

6. Secured Loans :-

a. Bank overdrafts and temporary loans have been secured by a first charge by way of hypothecation of stocks and receivables.

b. Loans from others on account of purchase of vehicles have been secured by way of hypothecation of vehicles.

7. The Company has procured certain equipments under a non-cancellable operating lease which has expired last year. There are no future lease rentals payable by the Company against the operating lease arrangements as at the year end. Lease rent charged to Profit and Loss Account during the year is Rs. Nil (Previous Year Rs. 234.47 lacs).

8. ÃSundry DebtorsÃ include Rs. Nil (Previous Year Rs. 1,062.87 lacs), being amount receivable from a company under the same management, Rallis Australasia Pty. Ltd. (RAPL) (wholly owned subsidiary). The maximum amount outstanding during the year was Rs. 1,101.46 lacs (Previous Year Rs. 1,062.87 lacs). Also, included in ÃLoans and AdvancesÃ is a sum of Rs. 18.61 lacs (Previous Year Rs. Nil) being amount due from Rallis Chemistry Exports Ltd. The maximum amount outstanding during the year was Rs. 18.61 lacs (Previous Year Rs. Nil).

9. Consumption of raw materials, packing materials and stores and spare parts includes provisions of Rs. 340.92 lacs (Previous Year Rs. 280.95 lacs) for slow, non-moving and damaged stocks.

10. ÃOther IncomeÃ includes net gain of Rs. 134.34 lacs (Previous Year net loss Rs. 452.87 lacs grouped under ÃOther ExpensesÃ) on account of foreign currency translation differences.

11. Segment Reporting :-

The Company has determined its business segment as ÃAgri - InputsÃ comprising of Pesticides, Plant Growth Nutrients and Seeds. The other business segment comprises ÃFine ChemicalsÃ and is non-reportable.

12. Related Party Disclosures :-

Disclosure as required by Accounting Standard (AS) - 18 ÃRelated Party DisclosuresÃ as prescribed under Section 211(3C) of the Companies Act, 1956.

(a) Names of the related parties and description of relationship :

(i) Promoters:

Tata Tea Limited - up to 18/08/2009 Tata Sons Limited - up to 18/08/2009 Tata Chemicals Limited Tata Investment Corporation Limited Ewart Investments Limited

(ii) Holding Company: Tata Chemicals Limited on and from 09/11/2009

(iii) Subsidiary Companies: Rallis Australasia Pty. Ltd.

Rallis Chemistry Exports Ltd. as and from 07/07/2009 (iv) Key Management Personnel: Mr. V. Shankar - Managing Director & CEO

13. The Company has invested Rs. 880.00 lacs in Non-Convertible Debentures (NCDs) of Advinus Therapeutics Pvt. Ltd. having a coupon rate of 4.25% and will be redeemed in three equal instalments in the years 2011, 2012 and 2013 at a premium of 25%. Income recognised during the year includes Rs. 33.32 lacs (Previous Year Rs. 33.32 lacs) in respect of redemption premium determined on the basis of the internal rate of return.

14. Foreign Currency Exposures :-

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and four years.

Derivative Instruments:

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the CompanyÃs strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the CompanyÃs Risk Management Policy. The Company does not use forward contracts for speculative purposes.

15. Employee Benefit Obligations :-

Defined-Contribution Plans

The Company makes contributions towards provident fund, family pension fund and superannuation fund to defined- contribution retirement benefit plans for qualifying employees. The provident fund is administered by the Trustees of Rallis India Limited Provident Fund Trust, the family pension fund is administered by the Government of India and the superannuation fund is administered by the Life Insurance Corporation of India and HDFC Standard Life Insurance Company Ltd. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefit. The rules of the CompanyÃs Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared by the EmployeesÃ Provident Fund by the Government under paragraph 60 of the EmployeesÃ Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

A sum of Rs. 383.96 lacs (Previous Year Rs. 382.31 lacs) has been charged to the revenue account in this respect.

Defined-Benefits Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum amount) and a supplemental pay scheme (a life long pension). Benefits under the defined-benefit plans are typically based either on years of service and the employeeÃs compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees, while supplemental pay plan covers certain executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable, while the supplemental pay scheme is not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on ÃProjected Unit CreditÃ method. Gains and losses of changed actuarial assumptions are charged to the Profit and Loss Account.

16. Previous yearÃs figures have been regrouped/restated wherever necessary to conform to the classification of the current year.

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