'r Independent Auditors' Report To The Members of Ruchi Hi-Rich Seeds Private Limited Report on the Standalone Financial Statements We have audited the accompanying Standalone Financial Statements of Ruchi Hi-Rich Seeds Private Limited (lithe Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income) and the Cash Flow Statement for the year then ended, Statement of Changes in Equity and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Ind AS Financial Statements"). Management's Responsibility for the Standalone Ind AS Financial Statements The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (lithe Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant '(Q the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about .whetber the financial statements are free from material misstatement. ~ <.-<:" I , .
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Independent Auditors' Report
To
The Members of Ruchi Hi-Rich Seeds Private Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of Ruchi Hi-RichSeeds Private Limited (lithe Company"), which comprise the Balance Sheet as at March31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income) andthe Cash Flow Statement for the year then ended, Statement of Changes in Equity and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "Standalone Ind AS Financial Statements").
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) ofthe Companies Act, 2013 (lithe Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position, financial performance andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Accounting Standards specified under Section 133 of the Act, readwith Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of theaccounting records, relevant '(Q the preparation and presentation of the Standalone Ind ASFinancial Statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act, the accounting and auditing standardsand matters which are required to be included in the audit report under the provisions ofthe Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance about.whetber the financial statements are free from material misstatement.
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An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the StandaloneInd AS Financial Statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the Company'spreparation of the Standalone Ind AS Financial Statements that give a true and fair view, inorder to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operating effectiveness ofsuch controls. An audit also includes evaluating the appropriateness of the accountingpollcles used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind AS FinancialStatements.
We believe that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion, the aforesaid financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India, of the state of affairs of the Company as at March 31,2018, and its loss, Total Comprehensive Income, its Cash Flows and Changes in Equity forthe year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order) issued bythe Central Government in terms of Section 143 (11) of the Act (hereinafter referredto as the "Order"), and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information andexplanations given to us, we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of ouraudit;
(b) In our opinion, proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books ofaccount;
In our opinion, the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014;
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(e) On the basis of the written representations received from the directors as onMarch 31, 2018 taken on record by the Board of Directors, none of thedirectors is disqualified as on March 31, 2018 from being appointed as adirector in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, inour opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigation on itsfinancial position in its financial statement.
ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.
iii. The Company is not required to transfer any amount to the InvestorEducation and Protection Fund during the year ended March 31, 2018.
For PD Kunte & Co. (Regd.)Chartered AccountantsFirm Registration No.: 105479W
Diwakar SaprePartnerMembership No. 040740
Place: MumbaiDate: 24thMay 2018
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Annexure A to Independent Auditors' Report
Referred to in paragraph 1 of the Report on Other Legal and Regulatory Requirements ofeven date to the members of Ruchi Hi-Rich Seeds Private Limited on the financialstatements for the year ended March 31, 2018.
1. In respect of fixed assets:
(a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) As explained to us, all the fixed assets have been physically verified by themanagement during/ at the end of the year, which in our opinion isreasonable having regard to the size of the Company and nature of itsassets. No material discrepancies between book records and physicalinventory were noticed. On our opinion, the frequency of verification isreasonable.
(c) According to the information and explanations provided to us, theCompany does not have any immoveable property at the balance-sheetdate. Therefore, clause (c) of paragraph 1 of the Order is not applicable tothe Company for the year under audit.
2. According to the information and explanations provided to us, the inventory hasbeen physically verified by the Management during / at the end of the year. Inour opinion, the frequency of verification is reasonable. As explained to us, therewere no material discrepancies noticed on physical verification of inventory ascompared to the book records.
3. According to the information and explanations provided to us, the Company hasnot granted any loans, secured or unsecured to companies, firms, limited liabilitypartnerships or other parties covered in register maintained under section 189 ofthe Act. Accordingly, clause (iii) is not applicable to the Company for the yearunder audit.
4. In our opinion and according to the information and explanations given to us, theCompany has complied with the provisions of section 185 and 186 of the Act,with respect to loans and investments made. The Company has not given anyguarantees or security.
5. The Company has not accepted any deposits from the public. Accordingly, clause(v) of the Order is not applicable to the Company for the year under audit.
6. According to the information and explanations given to us, the Company is notrequired to maintain cost records pursuant to the Companies (Cost Records andAudit) Rules, 2014, as amended and prescribed by the Central Government undersub-section (1) of section 148 of the Companies Act 2013.
7. In respect of statutory dues:
According to the information and explanation given to us and the recordsof the Company examined by us, in our opinion, the Company is generallyregular in depositing undisputed statutory dues including provident fund,
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duty of customs and value added tax and other material statutory dues asapplicable with appropriate authorities. There were no undisputedstatutory dues outstanding for a period exceeding six months as on thedate of the balance sheet.
(b) There were no dues pending to be deposited on account of any dispute inrespect of income tax, sales tax, wealth tax, service tax, duty of customs,duty of excise, value added tax or cess as on March 31, 2018.
According to the records of the Company examined by us and the informationand explanations given to us, the Company has not defaulted in repayment ofdues to any bank. The Company has not taken any loan from financial institutionsor government and has not issued any debentures.
Based upon the audit procedures performed and the information and explanationsgiven by the management, the Company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term loans.Accordingly, clause (ix) of the Order is not applicable to the Company for the yearunder audit.
Based upon the audit procedures performed and the information and explanationgiven by the management, no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.
11. No managerial remuneration has been paid/ provided. Hence clause (xi) of thesaid order is not applicable to the Company for the year under audit.
12. The Company is not a Nidhi company and therefore clause (xii) of the said Orderis not applicable to the Company for the year under audit.
13. In our opinion, provision of section 177 relating to Audit Committee are notapplicable to the Company for the year under audit. The transactions with therelated parties are in compliance with sec 188 of Companies Act, 2013 and thedetails of the said transactions have been disclosed in the financial statementsetc. as required by the applicable Accounting Standards.
14. Based upon the audit procedures performed and the information and explanationgiven by the management, the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during theyear under audit. Accordingly, clause (xiv) of the said order is not applicable tothe Company for the year under audit.
15. According to the information and explanations given to us and based on ourexamination of the records, the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly, clause3(xv) of the Order is not applicable to the Company for the year under audit .
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16. In our opinion, the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act, 1934 and accordingly, clause (xvi) of the Orderis not applicable to the Company for the year under audit.
For P D Kunte & Co. (Regd.)Chartered AccountantsFirm Registration No.: 105479W
(b) Other current liabilities 14 4,524,082 249,070(c) Provisions 15 803503 602,860Total Current Liability 11,428,192 14,026,966
TOTAL Equity and Liabilities 149,432,796 135,321,240See accompanying Notes 1 to 33 which form integral partof these financial statements
As per our report of evendate attached Forand on behalf of the Boardof DirectorsFor and on behalf of V/P.O. Kunte & Co. (Regd.)CharteredAccountants UmaTalreja
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~d" umar kaka , ~D.P. Sapre sh SarrafPartner Director DirectorMembershipno, 40740 DIN:- 07939436 DIN:- 01823313PlacJffu~' "- --Dat#. M6Y24)018, /'0 Se~
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Ruchi Hi-Rich Seeds Private Limited,Statement Of Profit And Loss
Particulars For ther periodApril 1, 2017 to April 1, 2016 to
Note March 31, 2018 March 31, 2017
(Amount in ~) (Amount in ~)INCOME
I Revenuefrom operations 16 21,227,838 9,498,161
II Other income 17 389,302 448,509
III Total Income (I + II) 21,617,140 9,946,670
IV EXPENSESCost of materials consumed 18 18,230,939 5,031,062
V Profit/(Ioss} before exceptional items and tax (III-IV) (43,735,441) (32,647,375)
VI Exceptional items -VII Profit/(Ioss} before tax (V-VI) (43,735,441) (32,647,375)
VIII Tax expense:(1) Current tax -(2) Deferred tax 6 (18,486) 37,818(3) Tax for earlier years
(18,486) 37,818IX Profitlflossl after tax for the vear lVII-VIII) (43716955 (32685192
X Other comerehenstve income 24a Items that will not be reclassified to profit or loss (32,395) (74,384)Tax relating to above items 8,342 22,219b Items that will be reclassified to Drofit or loss -Tax relating to above items -
XI Total comDrehensive income for the vear {43741,008 (32,737,357
X Earning per Equity share of face value ~ 10 eachBasic and diluted earnings per share before exceptional itemsa Basic (in ~) 27 (1.81) (2.28)b Diluted (in ~ ) 27 (1.81) (1.71)Basic and diluted earnings per share after exceptional itemsa Basic (in ~) (1.81) (2.28)b Diluted (in ~ ) (1.81) (1.71)
See accompanying Notes 1 to 33 which form integral part of thesefinancial statements
As per our report of even date attachedFor and on behalf of
For and on behalf of the Boardof Directors
P.D. Kunte &. Co. (Regd.)CharteredAccountants Uma Talreia
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R~KU r kakaniDir rDIN:- 7939436
DirectorDIN:- 01823313
D.P. SaprePartner\} :. ,MemberShiP~~M7'0Place: Indore 'nDate: May 24 ,2018
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Ruchi Hi-Rich SeedsPrivate LimitedStatement of cash flows
For the year For the year endedParticulars ended March 31, March 31, 2017
2018
Cashflow from operatina activitiesProfit before tax (43,735,441) (32,647,375)
Adjustments to reconcile profit before tax to net cash used in operatingactivitiesDepreciationamortisation and impairment exoenses 934,085 774,739(Gain)!loss on sale of orooertv. plant and equipment (97,456) (5,272)Share-basedpayment expense (709,162) (305,543)Financecosts 1.349.160 1.005,677Interest Income (286.535) (438,674)Provisionfor Gratuity and comoensatedabsences 168,247 (126,610)
(42377 102 (31743058Workina capital adiustments(Increase)! Decreasein inventories (16,075,491) (24,734,621)(Increase)! Decreasein Trade receivable (2,129,030) -(Increase)! Decreasein other finacial assets (1.154,113) (3,819)(Increase)! Decreasein Other Balancewith Banks - 2,966,008Decrease/(Increase) in other non current assets (387,352) (483)(Increase)! Decreasein loans (704,867) (9,310)(Increase)/ Decreasein other current assets 3,102,220 (2,181.810)Increase! (Decrease) in trade and other navables 221.970 (12,572,212)Increase! (Decrease) in other current & financial liabilities 5,478,561 (3,862,047)Increase! (Decrease) in other non- current liabilities - (13 100
(11648101 (40411394Net cash flows from oeerattne activities (54,025,203 (72,154,451
Cashflow from investina activitiesPaymentfor purchaseand construction of propertv. plant and eouiornent 1.575,999 (2,369,275)Proceedsfrom sale of orooertv. plant and eouloment 2,140,000 34,113Interest received 286,535 438,674Intangible assets under development 82,201.469Intangible assets (80.476,287)
Net cash flows from investina activities 4,002,534 (171306Cashflow from financina activitiesProceedsfrom issueof share caoital 61.160,500 73,874,630Proceedsfrom Shareapplication money - (2,689,300)Intercorporate deposit accepted - 3,500,000Increase!(decrease) in Short Term Borrowinas (8.499,947) 12.499,947Intercorporate deposit Refunded - (3,500,000)Financecosts (1349160) (1005677Net cash flows from financing activities 51311393 82679600
Net increase I (decrease) in cash and cash eauivalents 1.288,724 10,353,843Cashand cashequivalents at the beginning of the year 11.091.433 714.490Effect of exchanaesrate chanaeson cashand casheauivalents - -Cashand cash eauivalents at the end of the vear 12380157 11 068 333
Reconciliation of Cashand Casheauivalents with the BalanceSheetCashand BankBalancesas per BalanceSheet rNote 9 (allCashon hand 12,016 7,826Bankbalances(includina bank deposits) 12368 141 11 083,607
Cashand Casheauivalents as restated as at the year end 12380157 11 091433
Note:(a) The above CashFlow Statement has been prepared under the 'Indirect Method' as set out in the AccountingStandard (IND AS) 7 - "CashFlowStatements".
As per our report of even date attachedFor and on behalf of
BACKGROUNDRuehi Hi-Rich Seeds Private Limited ('the Company) is a Private Umited Company engaged primarily in the business of developing and commercialising sepciality soyabeen seedshavina hiah oralien content and other Hi aualitv seeds. The Comoanv was inconoorated on March 26. 2014.
1 BASIS OF PREPARATION
a Statement of ComplianceSeparate financial statements have been prepared in accordance with and comply in all material aspects with Indian Accounting Standards C'Ind AS,,), including the rules natified under therelevant provisions of the Companies Act, 2013 ('Act').
These financial statements are the Company's Ind AS standalone financial statements. The significant accounting palicies set out in Note 2 have been applied in preparing the financialstatements of the Company. The Board of Directors have approved the issuance of these financial statements on May 24 2018
b Functional and oresentation currencyThese financial statements are presented in Indian rupees (~, which is the Company's functional currency. All amounts have been rounded off to the nearest rupee, unless otherwiseindicated.
c Basis of Measurement
These seoarate financial statements have been oreoared on the historical cost basis exceot :-
ItemsCertain items of Prooertv. olant and EauiomentNet defined benefits (assetsl/liabilities
Measurement BasisFair ValueFair Value of Plan assets less oresent value of defined benefit oblioations
d Use of Estimates and JudaementThe preparation of financial statements in accordance with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policiesand the reported amount of assets, liabil~ies, income and expenses. Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any futureperiods, if affected. The most significant estimates and assumptions are described below:
(j) JudomentsInformation about judgments made in applying accounting policies that have the most significant effect on amounts recognised in the financial statement are as below :- Leases identification - Whether an aareement contains a lease• Classification of Leases - Whether Qoeratina or Finance
(iil AssumDtions and Estimations
Information about assumption and estimation uncertainities that have significant risk of resulting in a material adjustment in the year ended March 31, 2018 are as below:
1 Impairment _ of non financial assetsFor the purpase of assessing recoverability of non-financial assets, assets are grouped at the lower levels for which there are individually identifiable cash flows (cash Generating Units).
2 Recoanition and measurement of Provisions and ContinaenciesThe Company's Management estimates Key assumptions about the likelihood and magn~ude of an outflow of resources based on available information and the assumptions and methodsdeemed appropriate. Wherever required, these estimates are prepared with the assistance of legal counsel. As and when add~nal information becomes available to the Company, estimatesare revised and adjusted periodically.
3 Recoanition of Deferred Tax AssetsThe Management makes estimates as regards to availablity of future taxable profits against which unabsorbed depreciationl tax losses carried forward can be used for set off.
4 Measurements of Defined benefit obliGationsMeasurrnents are based on kev acturial assurnotons
e Measurement of certain items at fair values
The Company's accounting palicies and disclosures require the measurement of Equity settied share based payments, stock in trade inventOries, investments and other financial instrumentsat fair value.The Company has an established control framework with respect to the measurement of fair values. The Management regularly reviews significant observable inputs and valuationadjustments. If third party information such as broker quotes or pricing services is used to measure fair values, then the management assessesthe evidence obtained from the third partiesto suppart the condusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible fair values are categOrised into different levels in a fair value hierarchybased on the inputs used in the valuation techniques as follows.
Lertell: Quoted orices (unadiustedl in active markets for identical assets or liabilities.Lertel2: inputs ather than quoted prices included in Levell that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Lertel3: inouts for the asset or liabilitv that are nat based on observable market data (unobservable inoutsl.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in Its entirety in thesame level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Comoanv recoanises transfers between levels of the fair value hierarchv at the end of the reoortina period durino which the chanoe has occurred.
Further information about the assumolions made in measurina fair values for below mentioned ~erns are in resoective notes- Net defined benefits (assetsliliabilities:- Prooertv. Plant and Eauioment.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
a ProoertY, plant and eauipment:
ei) Recoanition and measurementProperty, Plant and equipment are measured at cost{which includes ca~lised borrowing costs) less accumulated depreciation and accumulated impairment losses, if any.
The cost of an ~em of orooertv. olant and eauioment comorises:
a) Its ourchase once, includina imoort duties and non-refundable ourchase taxes. after deductina trade discounts and rebates.b) any costs directly attributable to bringing the asset to the location and condition necessary for ~ to be capable of operating in the manner intended by the management.
c) the initial estimate of the costs of dismantlina and removina the item and restorina the Site on which it is located.
[f significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major companents) of prope.!~_~nt andequipment and depreciated accordingly. .> i\ S",.Any gain or loss on dispasal of an item of property, plant and equipment is recognised in Statement of proflt or loss. "r. J'",;
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(ii) Transition to Ind ASOn Transition to Ind AS as on April 1, 2015 the Company has elected to measure its Freehold Land, Building and Plant and Equipments are at Fair value, for other property, plant andequipment elected to measure the same at carrying value adjusted for additional impacts as per Ind AS, if any. The same are considered as Deemed cost of such Plant, property andFnllinn¥>nt
(iii) Subseauent exoenditureSubseouent exoenditure is caoitalised onlv if it is orobable that the future economic benefits associated with the exoenditure will flow to the Comoanv.
(lY1 DeoreciationDepreciation is calculated using the Straight Une Method, pro rata to the period of use, taking into account useful lives and residual value of the assets as prescribed under Schedule II tothp f.omnanlPc; Art. lOB.
b Intanaible assetsm Recoanitionand measurement
Self oenerated licenses of research have finite useful lives and are measured at cost less accumulated amortisation and any accumulated imoairrnent losses.
(ii) Subseauent exoenditureSubsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure Is recognised in profit orIoci.c; as iocllrrPd.
(iill AmortisationAmortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is generallyrecognised in proflt or loss. The estimated useful lives for self generated licences of research is considered 10 years.Amortisation methods. useful lives and residual values are reviewed at each reoortina date and adiusted. if reauired.
c FinancialInstrumentsA financial instrument is any contract that aives rise to a financial asset of one entity and a financial liabilitv or eauitv instrument of another entity.
m FinancialassetsClassificationThe Comoanv classifies its financial assets in the followina measurement cateaories:- those to be measured subseouentIY at fair value ( either throuah other comorehensive Income. or throuah orofit and loss): and- those measured at amortised cost.The classification deoends on the entitY's business model for manaaina the financial assets and the contractual terms of the cash flows.
Derecoanitionof financialassetsA financial asset is derecoanised onlv when:- The Comoanv has transfennedthe riohts to receive cash flows from financial asset • or- Retains the contractual rights to receive the cash flows of the financial assets, but assumes a contractual obligation to pay the cash flows to one or more receplents.
Where the entity has transferred an asset and has transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised. Where the entity hasnot transfenned substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.Where the entity has neither transferred the financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is c1erecognised if theCompany has not retained the control of the financial asset. Where the Company retains the control of the financial asset, the asset is continued to be recognised to the extent of continuinginvolvement in the financial asset.
Imoairrnentof financialassets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) mocIel for measurement and recognition of impairment loss on the following financial assets and credit riskpxooc;urp:a1 Financial assets that are debt instruments and are measured at amortised cost e.a.• loans. de~ securities. cIeoosits. and bank balance.bl Trade receivables.
The Comoanv follows 'simolifled aooroach' for recoanition of imoairrnent loss allowance on:- Trade receivables which do not contain a sianificant financina comoonent.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLsat each reportingdiate, right from its initial recognition.- For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initialrecognition. If credit risk has not increased significantly, 12-month ECL is used to provicle for impairment loss. However, if credit risk has increased signifICantly, lifetime ECL is used. If, in asubsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognisingimpairment loss allowance based on 12-month ECL.
(ii) Financialliabilities
Classification
The Comoanv classifies its financial liabilities in the followina measurement cateoories:- those to be measured subseouentIY at fair value throuah orofit and loss: and- those measured at amortised cost.The classification deoends on the entity's business model for manaaina the financial assets and the contractual terms of the cash flows.
Initial recoanitionandmeasurement
Financial liabilities are classified. at initial recoanition. as financial liabilities at fair value throuah orofit or loss or at amortised cost.All financial liabilities are recoanised initiallv at fair value and. in the case of loans and borrowinas and oavables. net of directlv attributable transaction costs.The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.
loans and borrowinasAfter initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate (EIR) method. Gains and lossesare recognised inprofit or loss when the liabilities are derecognised as well as through the EIR amortisation process.Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as financecosts in the statement of profit and loss.
This cateaorv aenerallv aoolies to interest-bearina loans and borrowinas.
DerecoanitionA financial liability is c1erecognisedwhen the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is repiaced by another from the same lenderon substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the clerecognition of the original liability and therecognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
d Inventories
Inventories, are measured at the lower of cost and net realisable value. The cost of inventories is determined using the weighted average method and includes expenditure incurred inacquiring inventories, production or conversion and other costs incunned in bringing them to their present location and condition. In the case of inventories and work in progress, costincludes an appropriate share of production overheads based on normal operating capacity.The comparision of cost and Net Realisable value is made on an item by item basis.
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Net realisable value is estimated selling price in the ordinary course of business, less estimated cost of comptetion and the estimated costs neccasary to make the sale.The net realisaof work in progress is determined with reference to selling prices of finished products. ...."._"'~~ S
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TradeReceivablesTrade receivable are recoanised intiallv at fair value and subseouentlv measured at amortised cost usina the effective interes method less orovision for imoairment.
, ,•
Cash and Cash EauivalentFor the purpose of presentation in the statement of the cash flows, cash and cash equivalent includes the cash on hand, deposits held at call with financial institutions other short term,highly liquid investments with origional maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes inV.::IIhl,::l
a Contributed eauitvEquity shares are classified as equity. Incidential costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(aa1 DividendsProvision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but notrliqrihlltPd r:.t thp pnrt of thP. rPnnrtinn nPriorl.
(abl Eaminas De< share(i) Basic eaminas De< share
Basic earnings per shares is calculated by dividing Profit/(Loss)attributable to equity holders before/after Exceptional Items by Weighted average number of shares , adjusted for bonuselements in equity shares issued during the year and excluding treasury shares.
(iil Diluted eaminas De< shareDilutive earnings per shares is calculated by dividing Profit attributable to equity holders before Exceptional Items divided by Weighted average number of shares considered for basic earningOPt' C;;M~ iochN1ino c1ihrtivp. nntP.nti a1Mllitv sharP.c;.
(ael Roundina of amountsAll amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees as per the requirement of Schedule III, unless otherwise stated.
h BolTOWinasBorrrowings are initially recognised at fair value, net of transaction oosts incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds ( net oftransaction costs) and the redemption amount is recognised in profit or loss over the period of borrowings using the effective interest method. ProcessingJupfront fee is capitalised as prepaidasset and netted off from borrowings.The same is amortised over the period of facility to which it relates.
Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of thefianancial liablity that has been extinguished or transferred to another party and the consideration paid including any non cash assets transferred or liability assumed, is recognsied in profitor loss as other gains or (losses).
Borrowings are classified as current liabilites unless the Company has and unconditional right to defer the settlement of laiblities for aleast twelve months after the reporting period. Wherethere is a breach of a material provision of a long term loan arrangement on or before the end of of the reporting period with the effect that the liablity becomes payable on demand on thereporting date, the entity does not classify the liablity as current, if the lender agreed, after the reporting period and before the approval of financial statements for issue, not to demandpaymerot as a consequence of the breach.
Trade and other oayables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paidwithin 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognisedinitially at their fair value and subsequently measured at amortised cost using the effective interest method.
Foreian currencY
(i) Foreian currencY transactionsTransactions in foreign currencies are translated into the functional currencies of the Company at the exchange rate prevaling at the date of the transactions. Monetary assets (other theninvestments in companies registered outside India) and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined.Non-monetary items that are measured based on historical cost in a foreign currency are not translated.
k Revenue(i) Sale of aoods
Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivables net of returns, trade discount and volume rebates.This inter alia involves discounting of the consideration due to the present value if the payment extends beyond normal credit terms. Revenue is recognised when the significant risk andrewards of the ownership have been transferred to the buyer, recovery of consideration is probable, the associated cost and possible return of goods can be measured reliably, there is nocontinuing effective control/managerial involvement in respect of the goods, and the amount of revenue can be measured reliably.
The timing of the transfer of control varies depending on the individual terms of the sale.
Income from sale of power is recognised on the basis of units wheeled during the period. Income from carbon credits are recognised on credit of carbon Emission Reduction (CER) by theapproving authority in a manner it is unconditionally available to the generating entity.
(iil Sale of ServicesRevenue from services is recoonsed on renderina of services.
(iiil Other Incomea) Dividend income is recoonised when riaht to receive dividend is estaiblished.b) Interest and other income are recoonised on accrual basis on time oroootion basis and measured on effective interest rate.
.. " "
(iilCal
EMPLOYEE BENEFITSDurino Emoloyment benefitsShort term emoloYee benefits .Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructiveobligation to pay this amount as a resutt of past service provided by the employee and the obligation can be estimated reliably.
Post Emoloyment benefitsDefined contribution olansA defined contibution plan is a post employment benefit plan under which an entity pays fixed contribution into a separate entity and will have no legal or constructive obligation to payfuthur amounts. The Company makes specified monthly contributions towards government administered Providend Fund scheme.Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund ora rPrlllrtinn in future MVlTlPnt<i ls i=lvi=lili=lhlP.
J(j)Cal
Cbl Defined benefit DlansThe Company pays gratuity to the employees whoever has completed five years of service with the company at the time of resignation. The gratuity is paid @ 15 days salary for everycompleted year of service as per the payment of Gratuity Act 1972.The gratuity liability amount is contributed to the approved grautuity fund formed exclusively for gratuity payment to the employees.The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the periods during which the benefits is expectedto be derived from employees' services.Re-measurment of defined benefit olans in resoect of oost emoiovment are charoed to Other Comorehensive Income.
Ccl Termination benef'otsTermination benefits are payable when employment is terminated by the Company before the normal retirement date or when an employee accepts voluntary redundancy in exchange forthese benefits. In case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefitsfalling due more than twelve months after the end of reporting period are discounted to the pesent value.
m INCOME TAXIncome tax expense comprises current and deferred tax. Tax is recognised in statement of profrt and loss, except to the extent that it relates to items recognised in the other comprehensiveincome or in equity. In which case, the tax is also recognised in the other comprehensive income or in equity.
(il Current taxCurrent tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or subsequentlyPMrtPrl M tilf' Ro:tli=lflCP c;hPPt rlrJtp.
Current tax assets and liabilities are offset onlv if. the Comoanv:al has a leoallv enforceable riaht to set off the recoanised amounts: andb1 intends either to settle on a net basis. or to realise the asset and settle the liabilitv simultaneouslv.
CiilDeferred taxDeferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in thecomputation of taxable profit.Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws)that have enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reportingperiod. Deferred tax are recognised to the extent that it is probable that future taxable profrt will be available against which they can be used.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carryingamount of its assets and liabilities.Deferred tax assets and liabilities are offset onlv if:a1 the entitY has a Ieoallv enforceable riaht to set off current tax assets aaainst current tax liabilities: andbl the deferred tax assets and the deferred tax liabilities relate to income taxes levied bv the same taxation authority on the same taxable entity.
n BORROWING COSTS
General and specific Borrowing costs that are directiy attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to getready for its intended use are capitalised as part of the cost of that asset till the date it is ready for its intended use or sale. Other borrowing costs are recognised as an expense in the periodin which they are incurred.Investment income eamed on the temporary invetsment of specifIC borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible forcapitalisation. All other borrowing costs are charged to the statement of profit and loss for the period for which they are incurred.
o LEASES(j) Determinlno whether an arran~ement contains a lease
At inceotion of an arranaement. the Comoanv determines whether the arranaennent is or contains a lease.As a lesseeLeases of property plant and equipment where the Company, as lessee, has substantially all the risks and rewards of the ownership are dassified as finance leases. Finance lease arecapitalised at the lease's inception at the fair value of the lease property or, if lower, the present value of minimum lease payments. The corresponding rental obaligations, if any net offinance charges are included in borrowing or other financial liabilities as appropiate. Each lease payment Is allocated between the liability and the finance cost. The finance cost is charged tothe profit or loss over the lease period so as to produce a constant periodiC rate of Interest on the remianing balance of liability for each period.
Leases in which a significant portion of risk and rewards of ownership are not transferred to the Company as a lessee are classified as opearting lease. Payments made under operating leases( net of any incentives received from the lessor) are charged to Profrt and Loss on a straight line basis over the period of lease except where another systematiC basts is more representativeof time pattem in which economic benefits from the leased assets are consumed.
As a lessorLease Income from opearting leases where the Company is a lessor is recognised as income on a straight line basis over the lease term unless the receipts are structured to increase in linewith the expected general inflation to compensate for the expected inflationary cost increases.
Ruchi Hi-Rich Seeds Private LimitedIStatement of Chanqes in Equitv (SOCIE)
a. Equitv share capitalMarch 31, 2018
No. of Shares AmountMarch 31, 2017
No. of Shares AmountBalance at the beqinninq of the reportinq periodChances in equity share capital durinq the year- Shares issued durinq the year
Balance at the beainnina of the reeortme Deriod - (59.428.455) (59.428.455)Addition durina the year 12 87,277,896 87,277,896Profit! ( Loss) after tax for the year 12 - (43,716,954) (43,716,954)Other comorehensive income for the year 24 - (24,054) (24,054)Total ComDrehensive Income for the vear -
Transactions with the owners in their caDacitv as the owners- Issue of Ecultv Shares 12 (61.160,500) (61.160.500)- Excessamount written back 12 (26,117.396) (26.117.396)- Transaction Cost arisina on share issue 12 - nOQ.16)) nOQ.162)Balance at the end of the nerled 12 - (103.878.626) (103.878.6261
Transactions with the owners in their capacity as the owners
Balance at the beginning of the reporting periodAddition durina the yearProfit/( Loss) after tax for the yearOther comorehensive income for the yearTotal Comprehensive Income for the vear
- Issue of Equity Shares- Excessamount written back- Transaction Cost arisina on share issue
(73,874,630)(1.782)
(73,874,630)(1.782)
Note - 3Prooertv. Dlant and eeulement
PARTICULARS GROSSBLOCK DEPRECIATION NET BLOCKAs on April 1, Additions As on March. 31, As on April 1, for the year On Provision for As on March. As on March. 31, As on March 31,
As on April 1, Additions As on March. 31, As on April 1, for the year On Provision for As on March. As on March. 31, As on March 31,2017 Disposal/adju 2018 2017 Disposal/adj impairment 31,2018 2018 2017
Note - 3 (b)CaDital Work in DroaressA As At March 31 2018
PARTICULARS GROSS BLOCK Amortisation NET BLOCKAs on April 1, Additions As on March. 31, As on April 1, for the year On Provision for As on March. As on March. 31, As on March 31,
Note - 4Intanaible Asset Under novetcementA As At March 31 2018
PARTICULARS GROSS BLOCK Amortisation NET BLOCKAs on April 1, Additions As on March. 31, As on April 1, for the year On Provision for As on March. As on March. 31, As on March 31,
Tax expense(A) Amounts recognised in Statement of profit and loss
For the yearended March 31,
2018
(Amount in ~ )For the yearended March31,2017
Current income taxChanges in estimates related to prior period - Tax for earlier years
Deferred taxOrigination and reversal of temporary differences
Deferred tax expenseTax expense for the year
(18,486) 37,818(18,486) 37,818(18,486) 37,818
(8) Amounts recognised in other comDrehensive income r Refer Note 241For the year ended March 31 2018 For the year ended March 31 2017
Before tax Tax (expense) Net of tax Before tax Tax (expense) Net of taxINR INR INR INR INR INR
Items that will not be reclassified to profit or loss [ Refer Note 241(32396\ (24054 (74384) (52165)Remeasurements of the defined benefit plans 8342 22219
(32396 8342 124054 (74384) 22,219 (52165)
(C) Reconciliation of effective tax rateFor the year
INRProfit before tax (43,735,441)Applicable Tax Rate 25.75%Computed Tax Expense (11,261,876)Tax effect of :Exempted income -
Expenses disallowed 2,598,663Additional allowances (4,608,206)Current Tax (13,271,419)Current Tax Provision (A) 0Incremental Deferred Tax Liability on account of Tangible and Intangible Assets (1,322,646)Incremental Deferred Tax Asset on account of Financial Assets and Other Items 1,349,474Deferred tax Provision (B) 26,828Tax Expenses recognised in Statement of Profit and Loss (A+B) 26,828Effective Tax Rate -0.06%
(D) Movement In deferred tax balancesAs at For the F.Y. 2017-18 As at March 31 2018
April 1, 2017 Recognised in Recognised Net (Assets) Deferred tax Deferred taxprofit or loss InDCI /Liabilities (asset) (assets)/
(i) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the defenred tax assets and defenred tax liabilities relateto income taxes levied by the same tax authority.
(ii) Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability ofdeferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which defenred income tax assets will be recovered.
Note - 7Other Non current assets
Other loans and advances (Indirect Tax receivables)
Note-8INVENTORIES
( As valued and certified by the Management)( At lower of cost and net realisable value)
a) Raw materials ( Including packing material)b) Work-in-progressc) Finished goodsd) Stock in Trade ( in respect of goods aquired for trading)
Note - 9(a)TRADE RECEIVABLES
Outstanding for a period exceeding 6 months from the date from theywere due for pavmentSecured, considered good
Other trade receivablesUnsecured, considered good
Note - 9(b)Cash and cash equivalents
Balanceswith Banksi) In Current Accountsii) In Deposit Accounts with less than or equal to 3 months maturity
- OthersCash on hand
Note - 9(c)Bank balances other than cash and cash equivalents above
In Deposit AccountsMore than 3 months but less than or equal to 12 months maturity.
- Against Margin Money r Under lien 1- Others
Note - 9(d)Loans
Unsecured, considered good (unless otherwise stated):- Security and Other Deposits
Note - 9(e)Others
Unsecured, considered good (unless otherwise stated):- Advances recoverable in cash or in kind or for value to be received
Considered goodConsidered doubtful
Interest Accrued on Fixed deposits
Note - 10Other Current assets
Unsecured, considered good (unless otherwise stated):- Other Advances
Considered goodConsidered doubtful
Advance Income-Tax including tax deducted at source (Net)Gratuity [Refer Note 151
As at March 31,2018
(Amount in ~)As at March 31, 2017
(Amount in ~)
5,904,885 5,517,533
5,904,885 5,517,533
1,472,702 192,150
41,041,197 26,246,258
42,513,899 26,438,408
21290302129030
3,368,141 2,083,607
9,000,00012016
9,000,0007826
12,380.157 11,091,433
784,277 79,410784,277 79,410
1,182,637
51993 805171,234,630 80.517
822,454 3,930,128
33,949159,265
54,539133,221
1,015.668 4,117,888
Note - 11Equity Share Capital
As at March 31,2018
(Amount in ~)
As at March 31,2017
(Amount in ~)
A Authorised
Equity Shares2,56,00,000 [March 31,2017 : 186,00,000 March 31, 2016: 1,56,00,000 and April 1, 2015: 64,00,000) of face value of ~101- each 256,000,000 186,000,000
8 Issued, Subscribed and paid-upi) Equity Shares2,41,88,323 [March 31,2017: 1,80,72,273 March 31,2016:1,06,84,810 and April 1, 2015: 60,84,220) offace value on'101- each fully paid-up
256,000,000 186,000,000
241883230 180,722,730
241,883,230 180,722,730
C Rights, Preference and Restrictions attached to sharesEquity Shares: The Company has one class of equity shares having a par value of'!' 10 per share. Each shareholder is eligible for one vote per share held. The dividend if any, proposedby the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receivethe remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
D Details of shares held by shareholders holding more than SOfashares of the Company
Particulars Mard13 2018 March 2017No.of shares % No.of shares %
E For the oeriod of five years immediately Drecedino the date as at which the Balance Sheet is Dreoared:(a) Aoareoate number and class of shares alloted as fully oaid- UDoursuant to contract (s) without oavrnent beino received in cash:(b) Aaareoate number and class of shares alloted as fully oaid- UDbv way of bonus shares:(c) Aoareoate number and class of shares bouaht back:
NilNilNil
F For reconciliation of number of shares outstandino at the beoinnino and at the end of the year - Refer Note (a) of Statement of Chances in Eauitv (SOCIE).
Balance as at the beainnina of the yearAdd :Addition durina the yearLess: Equity shares issued durinq the yearLess: Excess amount written back
2,689,30071.187.112 I
73,874,6301782
(ii) Retained EarningsBalance as at the beainnina of the yearAdd: Net Profit! (Loss) for the yearLess: Items of ocr directly Reconised in Retained Earninos [Refer Note 241Less: Transaction costs arlsmo on share issue, net of taxLess: AppropriationsBalance as at the end of the year
(59,428,456)(43,716,955)
24,053709,162
(26,385,555)(32,685,192)
52,165305,543
(103,878,626) (59,428,456)
" ,
As at March 31, 2018 As at March 31, 2017(Amount in ~) (Amount in ~)
Note - 13ea)Borrowings
A loan Repayable on Demand
- From Other than Banks- Secured
- Buldana Urban Co-Operative Credit Society Limited 4000000 124999474,000,000 12.499,947
B
Maturity Date
Name of the lender Buldana Urban CoOperative Credit SocietyI imitPfiSix months from date of
Buldana Urban CoOperative Credit SocietylimitlOrtSix months from date of
Coupon IRate of Interestdisbursement. rtlsbursernent.cash Credit Loan (13.00% cash Credit Loann.a) (11.S0% n.a)Charge on soyabean stock/ Charge on soyabeaninventory, which is stocked stock/ inventory, which isin the warehouse Situated stocked in the warehouseat Survey no. 354, 355/1, situated at Survey no.355/2, 355/3, 355/4, 354, 355/1, 355/2, 355/3,355/5 & 358, village Dabla 355/4, 355/5 & 358,Rehwari, Tehsil and District village Dabla Rehwari,- Ujjain (M.P.). Tehsil and District - Ujjain
(M.P.).
Nature of Security
Terms of Repayment Repayable within Sixmonths from date ofnichllr<:pmpnt
Repayable within Sixmonths from date of...,.hun ,~~_.
Note - 13(b)Trade Payables
- Due to Micro, Small and Medium Enterprises- Due to Related parties- Due to others 518,385 296,415
518,385 296,415
Note -13(c)Other Financial liabilities
Non-Trade payablesCreditors for capital expenditureOthers
755960826,262 378,674
1,582,222 378,674
(I) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at the yearend.
Note-14Other Current liabilities
a Customers' Advances
b Other liabilities
3,946,371
577,711
23,100
225,970
4,524,082 249,070
Note -15Provisions
i) Provision for Gratuityii) Provision for compensated absences 803,503 602,860
803,503 602,860
The Company contributes to the following post-employment defined benefit plans in India.A Defined Contribution Plans:
The Company has certain defined contribution plans. Contributions are made to provident fund in India for employees at the specified rate as per regulations. Thecontributions are made to registered provident fund administered by the Government of India. The obligation of the Company is limited to the amount contributed andit Company has no further contractual, nor any constructive obligation. The Company has recognised ~ 6,15,193 (Previous year ~ 5,79,604) towards contribution toProvident Fund in the statement of Profit and Loss. , _'.-:'::-'~~';:.~
B Defined Benefit Plan:a) GratuityThe Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous servicefor a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination/resignation is the employees lastdrawn basic salary per month computed proportionately for 15 days salary multiplied for the number completed years of service. The gratuityplan is a funcled plan and Company makes annual contributions to the Group Gratuity cum Ufe Assurance Schemes administered by the UC ofIndia, a funded defined benefit plan for qualifying employees.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratUity were carried out as atMarch 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measuredusing the Projected Unit Credit Method.
b) Leave Obligations
The leave obligations cover the Company's liability for casual, sick & eanned leave. The amount of the provision is presented as current, since the Company does nothave an unconditional right to defer settiement for any of these obligations. However, based on past experience, the Company does not expect all employees to takethe full amount of accrued leave or require payment within the next 12 months.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company'sfinancial statements as at balance sheet date:
March 31, 2018 March 31, 2018 March 31, 2017 March 31, 2017Gratuity GratuityLeave Encashment Leave Encashment
Defined benefit obligation 884351 602,860 679,759 602,860
Fair value of plan assetsNet defined benefit (obligation) Iassets
1043616 812980(602,860) 133,221 (602,860)159,265
Non-current
Current [Refer Note 10 and 15) 159,265 (602,860) (602,860)133,221
B. Movement in net defined benefit (asset) liabilityThe following table shows a reconciliation from the opening
March 31 2018 March 31 2017Gratuity Leave Encashment Leave EncashmenGratuity
Defined benefit obligationOpening balanceIncluded in profit or loss
679759 602860 721,271 533,973
Current service costPast service costInterest cost (income)
125688 27333844551
114,109 336,453
50234 57990 42931855681 920749 893370 913 357
Included in OCIRemeasurement loss (cain):Actuarial loss (cain) due to :Oemooraohk assumotionsFinancial assumotionsExoerience adiustmentReturn on olan assets excludino interest income
Fair value of Dian assetOoeninc balanceExoected return on plan assetsContributions oaid bv the emoloverBenefits oaidIncluded in orofit or iossInterest income
81298060079
174283
600.15848.253
452.564(287.816)
2812.9801.043.616
Included in OCIRemeasurement cain (loss):Actuarial cain (loss) due to :Demoorapbk assumotionsFinancial assumotionsExoerience adjustmentReturn on olan assets excludinc interest income
1043616 812980
OtherContributions oaid bv the emolovern f
1043 filfi 812980
ReDresented bv
Net defined benefit assetNet defined benefit liabilitv
159268 133.221803503 602860
159.268 803.503 133.221 602.860
Exoense recoonised in Statement of Profit and LossCurrent service costNet Interest costActuarial (gain)/Ioss on obligation for the period
125688(9.845)
6104544551
212293
114.1099.737
39.26442.931
297189115843 317889 '23846 379384Exnensp rpcooojsed in Statement Of profit and I ass
Exoense recoonised in Other ComDrehensive Income (OCIlActuarial (cain )floss on oblication for the oeriodReturn on plan assets excluding interest income
286703726
74.205179
32396 74384Net Income/Expense for the period recognized in OCI [Refer Note
" ,
C. Plan assetsPlan assets comorise the followino Gratuity Leave Encashment Gratuity Leave
March 31. 2018 March 31. 2018 March 31. 2017 March 31. 2017Investment in insurance fund
Insurer manaoed fund (100%) 1043616 812,9801 043616 812 980
D. Defined benefit obligations
i. Actuarial assumptions
The followino were the Orincioal actuarial assumptions at the
Particulars March 31. 2018 March 31. 2017Discount ratesatarv escalation rateRate of return on plan assetsRetirement Age
7.78%6,00%7,78%58 years
7,39%6,00%7,39%58 years
Mortality Rate
for service 4 years and below 9,73% p.a & 5years and above 2% p.a
Indian Assured lived mortality (2006-08)
for service 4 years and below 9,73% p.a & 5years and above 2% p.a
Indian Assured lived mortality (2006-08)
Attrition Rate
Assumptions regarding future mortality have been based on published statistics and mortality tables, The current longevities underlying the values of the definedbenefit obligation at the reporting date were as follows:
ii. Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the definedbenefit obligation by the amounts shown below,
March 31, 2018 March 31, 2017
Chanqe in discountinq rate (delta effect of +/- 1%)Chanqe in rate of salarv increase (delta effect of +/- 1%)
Change in rate of employee turnover (delta effect of +/- 1%)
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of theassumptions shown,
iii) Exoected t":nntihutinn" in next vearMarch 31 201R March 31 2017
INR INRGratuitv 33,125 -Provldent F nd 615788 563079
.. ,
For the year ended For the year endedMarch 31, 2018 March 31, 2017
Note - 16Reyenue from operations
A Salesof productsB Sale of ServicesC Other ooeranoc revenue
(Amount In ~) (Amount In f)
21.212.042 9.498,161
1579621.227.838 9.498.161
Note - 17Other Income
A Interest Income (at amortised cost)B Net Gain on Sale/Discard of Fixed assetsC Other Non-Ooeratino Income
286.53597.4565.311
438,6745,2724,563
389.302 448.509
Note - 18Cost of Material Consumed *a) Finished Goods
Ouenine InventorvAdd: Purchases(net)Less: Inventorv at the end of the vear
26,246,258 1.500,72332,566,502 29,776,597
41.041.197 26,246,258
17,771.563 5.031.062
192.150 203,0641.739.928 64,8051.472.702 192,150
75,719459.376
18.230.939 5.031.062
a) Finished Goods
b) Packina MaterialOoenina InventoryAdd: Purchases (net)Less: Inventory at the end of the vearLess: Trfd .to cost of raw material consumed
b) Packina Materials
Note -19Employee benefits expense
Salary, Waaes and BonusContribution to Provident and Other FundsGratuityWorkmen & Staff Welfare expensesLess: Related to Researchexpenses rRefer Note 221Less: Intanaible assets under development rRefer Note 41
18.620.464559.807115.843140.778
(11.393.309)
16,174,445511.890123,846149,323
(9,073,103)(2,628,955)
8.043.583 5.257.446
Note - 20Finance costs
Interest-on Loans-on Others
Other borrowina costsNet loss on foreian currency transactions and translation
1.196.4272.733
150.000
742,010163,667100,000
1.349.160 1.005.677
Note - 21Depreciation and Amortization Expense
Depreciation on Tanaible assetsAmortisation of Intanaible assets
934,0858,724,041
774,7396,764,119
9.658.126 7.538.858
Note - 22Reasearch Expenses
Particulars For the year ended For the year endedMarch 31, 2018 March 31, 2017
Employee benefits expense rRefer Note 191Salarv. Waaes and Bonus 10994677 8,653,107Contribution to Provident and Other Funds 248204 273,854Gratuity 67904 66,256Workmen & Staff Welfare expenses 82524 79886
11393309 9073103
Cost of Material Consumed rRefer Note 181 377368 353921377 368 353921
For the year endedAs at March 31, I As at March 31,
.,nul .,n1'7 I(Amount in ~) I (Amount in ~ 1 1
A. Item that will not be reclassified to profit or loss(i) Remeasurementof the defined benefit plans:
Tax impact on above(32,396)8.342
(74.384)22.219
B. Item that will be reclassified to profit or loss
(24,054) (52,165)
Note - 25 Disclosureof transactions with related parties as required by Indian Accounting Standard 24 (Ind A5-24), relating to Related Party Disclosure has been given below.
(i)Person or a close members has control or joint control, significant influence on the reporting entity oris member of KMPin reporting entity
(ii)Entity and reporting entity are members of the samegroup ( which means that each parent, subsidiaryand fellow subsidiary is related to the others)
Nil
(iii)One entity is an associate or joint venture of the other entity (or an associate or joint ventureof a member of a group of which the other entity is a member)RSIL HoldinasPrivateUm~ed AssociateOJHendrickInternationalInc. AssociateAarimaxventuresate. Ltd. Associate
(iv) Both entities are joint ventures of the same third partyNIL
(v) One entity is a joint venture of a third entity and the other entity is an associate of the thirdNIL
The entity is a post employment benefit plan for the beneFitof employees of either the reporting entity(vi) or an entity related to the reporting entity.
NIL
(vii) The entity is controlled or jointly controlled by a person identified in (a)NIL
... A person controlled or joint controlled by reporting entity, has significant influence over the entity(VIII) or is a member of the key management personnel of the entity (or of a parent of the entity)
NIL
(ix) The entity, or any member of a group of which it is a part, provides key managementpersonnel services to the reporting entity or to the parent of the reporting entity
NIL
Details of Related Party Transactions:
ParticularsAssociate Member of KMP
Entity and reporting in reportingentity are members of entitythe samegroup Total
RSIL Holdings DJ Hendrick Agrimax venturesPrivate Umited International Inc. pte. Ltd.
Remunerationincludingperks -EQUITYSHAREALLOTMENTSOJHendrickInternationalInc. 21,39,870 (Previousyear 21,398,70025,84,B08 of Facevalueof no each) 21,398,700
(25,848,080) (25,848,OBO)Agrimaxventurespte. Ltd.37,64,460 (Previousyear40,63,785 37,644,600of Facevalueof no each) 37,644,600
Ruehl Hi-RichSeeds Private UmitedNotes fonnina Dart of financial statements
Note - 31Finaneiallnstruments - Fair values and risk managementI. Accountina classtfication and fair valuesThe following table shows the carrying amounts and fair values of financial assets and financial liabiUties, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilitiesif the carrying amount is a reasonable approximation of fair value.
(AlFVTPL
_.1... ,,,.
Financial assetsNon--current assets
- Bank BalancesCurrent assets(i) cash and cash eouivalents(ii) Bank balances other than (i)(iii) Loans(ivl Trade receivables(iv)Others
15.00012.380.157 12.380.157
March31, 2018 Total Levell LeYel2 Levell Total
784.277
2.~~.~~~784.277
~:~::~~FinaneialliabilitiesCurrent liabilities
til Borrowinas(ii) Trade oevabes(iii) Other financial liabilities
6 lOO607 6 100HZ
Financial assetsNon-<urrent assets
- Bank BalancesCurrent assets
(ij) cash and cash eouivalents(iii) Bank balances other than (ii),""".(iv) Loans(v) Others
15.000 15.000
_.Ir •• h~
(AlMarch31, 2017 Note~. FVTPL FVTOCI Amortised cost Total LeYell LeYel2 LeYel3 Total
11.091.433 11.091A33
FlnanclalUabil1tiesCurrent liabilities
(i) Borrowinas(iil Trade oavables(iii) Other financial liabilities
'::;;1 :;;113175alA 13175036
II. Measurement of fair valuesThere are no financial instruments measured at fair value.
" \
•
Ruchi Hi-Rich Seeds Private LimitedNotes forminQ Dart of financial statementsNote - 32Financial instruments - Fair values and risk manaeementFinancial risk manacementThe Comoanv has exposure to the followinq risks arlsmq from financial instruments:(i) Market risk(a) Currency risk;(b) Interest rate risk;
(ij) Credit risk ; and(iii) liquidity risk;
Risk manaaement frameworkThe Company's activities expose it to a variety of financial risks including market risk, credit risk and liquidity risk. The Company's primary riskmanagement focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management assessmentpolicies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitorsuch risks and compliance with the same. These policies and processes are reviewed regularly to reflect changes in market conditions and theCompany's activities. The Board of Directors is responsible for overseeing these policies and processes.
en Market riskMarket risk is the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect theCompany's income or the value of its holdings of its financial instruments. The objective of market risk management is to manage and control marketrisk exposure within acceptable parameters, while optimising the returns.
i(a) Currency riskThe fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction has more than onecurrency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.
Company primarily deals in Indian Currency (INR). Hence there is no Significant direct currency risk.
i(b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Company's exposure to market risk for changes in interest rates relates to fixed deposits and borrowings from financial institutions is nil, as interestrates relating to fixed deposit and borrowings are fixed in nature.They are therefore not subject to interest rate risk as defined in Ind AS 107, sinceneither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates.
(in Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, andarises principally from the Company's receivables from customers.
Cash and cash equivalentsThe Company held cash and cash equivalents amounts to ~ 1,23,80,157 as at March 31, 2018 (March 31, 2017 ~ 1,10.91,433 with credit worthybanks. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.
InvestmentsThe Company does not have any investments.
, .,•
Ruchi Hi-Rich Seeds Private LimitedNotes forming part of financial statements
Financial instruments - Fair values and risk management
(iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it willalways have suffiCient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable lossesor risk to the Company's reputation.
The Company has obtained funds from by way of issuing equity shares, working capital loans from financial institutiOn.As of March 31, 2018, the Company has positive working capital of ~ 4,86,29,469 [March 31, 2018 ~ (2.77.80.691) including cash and cash equivalents of ~ 1.23.80.157 [March 31, 2017 ~1.10.91.433 .
Exposure to liquidity riskThe table below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for:* all non derivative financial liabilities* net and gross settled derivative financial instruments for which the contractual maturites are essential for the understanding of the timing of the cash flows.
(Amount r)
B.
C:o~"'1 ""ch~sAs at March 31, 2018 Carrying amount Total 1 year or less 1-2 years 2-5 years Morethan 5
Ruehi Hi-Rich Seeds Private LimitedNotes forming part of financial statements
Note - 33CaDital Manaaement
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of thebusiness. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net debt is defined as total liabilitiescomprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Equity comprises of equity sharecapital and other equity.
A. The Company's policy is to keep the ratio below 2.00. The Company's adjusted net debt to equity ratio at March 31, 2018, March 31, 2017 are as follows.
As at March 31, 2018 As at March 31,
Total liabilitiesLess: cash and cash eauivalentAdiusted net debtTotal eauitvAdiusted eauitvAdiusted net debt to adiusted eauitv ratio
11.428.19212.380.157(951.9651
138.004.604138.004.604
ro.on
14.026,96611.091.4332.935.533121.294.275
121.294,2750.02
B. DividendsThe Comoanv has not declared anv dividend.
As per our report of even date attachedFor and on behalf of
