2.20 Provision, Contingent Liabilities and Contingent
Assets:

A provision is recognized when the company has a present
obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation
in respect of which reliable estimate can be made. If the

effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects when
appropriate the risks specific to the liability. When discounting
is used the increase in the provision due to the passage of
time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence
of one or more uncertain future events not wholly within the
control of the company or a present obligation that arises
from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate of amount cannot be made.

Contingent Liabilities and Contingent Assets are not
recognized in the financial statements.

2.21 Critical accounting estimates and judgements:

In preparing these financial statements, Management has
made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts
of assets, liabilities, 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 recognised prospectively.

Information about significant areas of estimation uncertainty
and judgements in applying accounting policies that have the
most significant effect on standalone financial statements
are as follows.

a) Provision for doubtful debts - Refer note no.13

b) Provision for schemes - Refer note no.28

c) Provision for returns - Refer note no.28

d) Biological assets - Refer note no.12

e) Measurement of useful life and residual values of
property, plant and equipments and useful life of
intangible assets - Refer note no.3

f) Provisions and Contingent Liabilities - Refer note.37

g) Fair value measurements of financial instruments
- Refer note.43

h) Retirement benefits & obligations - Refer note.46

2B Recent Accounting Pronouncements

The Ministry of Corporate Affairs (MCA) notifies new standards
or amendments to existing standards under the Companies
(IndianAccounting Standards) Rules,asissued fromtime to time.
In May 2025, MCA notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. April 1,2025.

The amendment introduces a framework to assess whether
a currency is exchangeable and, if not, how to estimate
the applicable spot rate. The Company has reviewed the
amendment and determined that it does not have any
significant impact on its financial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements —

The amendment relates to classification of liabilities as
current or non-current and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence of a
right to defer settlement for at least 12 months after the
reporting date and instead requires that the said right
should exist on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The Company
has no impact of these amendments in its classification
criteria of current and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable w.e.f.
April 1,2025 - The amendment in Ind AS 7 requires to
inform users of financial statements of the existence of
supplier finance arrangements and explain the nature
of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has
been amended to add supplier finance arrangements
as a factor that may cause concentration of liquidity
risk. The Company does not have any supplier finance
arrangements. Accordingly, these amendments do not
have any impact on its financial statements.

3. Ind AS 12, Income Taxes — International Tax Reform:

Pillar Two Model Rules — The amendment provides
a mandatory exception from recognising deferred tax
assets or liabilities arising from Pillar Two income taxes
and requires related disclosures. The Company has
applied this mandatory exception.

Investments in Mutual Funds

Under Ind AS, the Company has designated these investments at fair value through Other Comprehensive Income (OCI) or Profit & loss
. Accordingly Fair value changes are recognised in the Statement of Other Comprehensive Income (OCI) or Statement of Profit & loss
for the year ended as the case may be.

Investments in Subsidiaries

The Company has designated these investments at cost .

Investments in Equity Instruments of Other Entities (Quoted and Unquoted)

Under Ind AS, the Company has designated these investments at fair value through Other Comprehensive Income (OCI). Accordingly,
these investments are required to be measured at fair value. Fair value changes are recognised in the Statement of Other
Comprehensive Income (OCI).

18. Equity Share Capital (Contd..)

d) Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of H2 per share. Each shareholder is
eligible for one vote per share held and carry a right to dividend. 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.

f) Employee Stock Option Scheme

As per Kaveri ESOP 2024 Scheme during the current period the company has granted 142,352 (YE March 2025: NIL) options
though Kaveri Employee Trust (ESOP Trust).The options issued under the Kaveri ESOP 2024 Scheme vest in periods ranging
between the end of one and five years, and generally have a maximum contractual term of five years. Liability recognised at 31
March 2026 and cost recognised is disclosed in notes ( Refer Note 47). The ESOP 2018 scheme is closed.

Consequent to the search proceedings on the Company , during the year 2017-18, the Company had submitted returns for the block
assessment years from FY 2011-12 to FY 2017-18 in response to notice u/s 153A disclosing the same income as was disclosed in the
returns filed earlier. Assessments upto the date of search have been completed by the Income Tax Department.

Aggrieved by the department’s basis for initiating search proceedings, the Company filed a writ petition before the Hon’ble High Court
of Telangana, Hyderabad, challenging the validity of the search proceedings. The Hon’ble High Court granted interim stay against
assessment proceedings pending disposal of the writ. The assessment of income as per returns submitted in response to notice u/s
153A, for said block period is kept in abeyance by the Income Tax Department in view of the interim stay granted by the Hon’ble High
Court. The Company withdrawn the writ petition and accordingly the Hon'ble High Court Vacated the stay. Assessment proceedings for
the aforesaid years are presently pending before the Income Tax Department. Additional tax liability, if any, is dependent on the outcome
of the assessment proceedings.

During the year The Company received favourable order from the Income Tax appellate authority for Assessment Years 2020-21 allowing
the company claim of Agricultural income pursuant to which the respective income tax demand amounting to H7137.35 Lakhs was set
aside and accordingly the contingent liability is also reduced.

Further during April 2026 the Company received favourable orders from the Income Tax appellate authority for Assessment Years 2022-23
& 2023-24 allowing the company claim of Agricultural income pursuant to which the respective income tax demand amounting to H5621.18
Lakhs and H6958.75 Lakhs were set aside but same were recognised in the contingent liability as on 31.03.2026.

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company manages its
capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of
the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain
investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level
of dividends to shareholders. The Company may take appropriate steps in order to maintain or if necessary adjust its capital structure.

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation
technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1 : Quoted Prices for identical Instruments in an active Market

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs, and

Level 3: Inputs which are not based on observable market data

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by
category is summarized below:

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date.

Financial assets and liabilities measured at fair value as at Balance Sheet date:

1. The fair values of investment quoted investment in equity shares is based on the current bid price of respective investment as
at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue
further units of mutual fund and the price at which issuers will redeem such units from the investors.

Other financial assets and liabilities

Cash and cash equivalents (except for investments in mutual funds), trade receivables, investments in term deposits, other financial
assets , trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their
short-term nature.

Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future
cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

44. Financial Risk Management

The Company’s business activities are exposed to a variety of financial risks namely liquidity risk, market risks and credit risk. The
Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly.

A. Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this management considers both normal and stressed conditions.

The Company maintained a cautious liquidity strategy with a positive cash balance throughout the year ended 31 March, 2026 and
31 March, 2025. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

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

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:
Currency Risk
Price Risk
Interest Rate Risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure
to and management of these risks are explained below.

a Currency Risk

Potential Impact of Risk

The impact of risk due to change in foreign currency value is very minimum on the company as the company's exposure to
foreign currency is very low.

As at 31 March, 2026, the net unhedged exposure to the Company on holding financial assets (trade receivables and capital
advances) and liabilities (trade payables and capital creditors) other than in their functional currency amounted to H6.15 Lakhs
(31 March, 2025 H287.28 Lakhs).

The Company is not majorly exposed to foreign currency exchange risk because of its low volume foreign currency transactions,
even though management exercises proper precautions to minute the currency risk in foreign exchange transactions. The
company deals with US Dollar and Euro for its foreign currency transactions.

The Company makes its exports against advance irrevocable LC to mitigate the risk of currency exchange due to delay in
remittances. The company does not opt for forward exchange contracts. Foreign exchange transactions are closely monitored
to reduce the risk.

The aim of the Company’s approach to management of currency risk is to leave the Company with no material residual risk.
Sensitivity to Risk

A 5% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to
approximately an additional H0.31 Lakhs gain in the Statement of Profit and Loss (2024-25: H14.36 Lakhs ). A 5% weakening
of the INR against these currencies would have led to an equal but opposite effect.

b Price Risk

Potential Impact of Risk

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

At 31st March 2026, the investments in debt mutual funds amounts to H15,053.28 Lakhs (31st March, 2025 H 28,598.77 Lakhs).
These are exposed to price risk.

Management Policy

The Company takes all the precautions to minimise price risk arising from investments in debt mutual funds. The company is
investing mainly in debt mutual funds through leading mutual fund companies and in best mutual funds where price risk is very
low. The company examine fund performance, rating, liquidity and risk aspects before investing.

Sensitivity to Risk

A 0.5% increase in prices would have led to approximately an additional gain of H75.27 Lakhs in the Statement of Profit and
Loss or Other Comprehensive Income (2024-25: gain of H 143.00 Lakhs). A 0.5 % decrease in prices would have led to an
equal but opposite effect.

C Interest Rate Risk

Potential Impact of Risk

The impact of interest rate risk is very minute on the company as the company does not have exposure to any interest rate
sensitive investments or securities.

The company does not have any investment in interest sensitive securities/bonds as on 31st March 2026 and 2025
Management Policy

The Company makes maximum of the investments in non interest sensitive sectors to mitigate interest rate risk.

Sensitivity to Risk

A 0.25% or 0.50% increase/decrease in interest rates will not make any difference to the company profit or loss as there are no
interest rate sensitive investments.

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade receivables

Concentration of credit risk with respect to trade receivables is moderate due to the Company’s customer base being large
and diverse and also company receives good amount of receipts towards advances. All trade receivables are reviewed and
assessed for default on a quarterly basis based on collections and ageing.

Our historical experience of collecting receivables is that credit risk is moderate . Hence trade receivables are considered to be
a single class of financial assets.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments money market liquid
mutual funds and derivative instrument with financial institutions. The Company has set counter-parties limits based on multiple
factors including financial position, credit rating, etc.

The Company’s maximum exposure to credit risk as at 31st March, 2026 and 2025 is the carrying value of each class of
financial assets.

46. Employee Benefit plans

46.1 Defined Contribution Plan:

The company has certain defined contribution plans. Contributions are made to provident fund in India for qualifying employees
at the specified percentage of salary as per regulations. The contributions are made to registered provident fund administered
by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any
constructive obligation. The expense recognized during the period towards defined contribution plan is h 775.84 Lakhs (31 March
2025 : H725.80 Lakhs)

46.2 Compensated Absences:

The company provides for accumulation of compensated absences. These employees can carry forward portion of unutilised
compensated absences and utilise it in future period or receive cash in lieu thereof as per the company's policy. The company
records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement.
The total liability recorded by the company towards its obligation was H860.42 Lakhs (31 March 2025 : H780.23 Lakhs)

46.3 Gratuity:

The gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by way of
retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service
and paid as lump sum at exit. The plan design mitigate the risks commonly affecting the liabilities and the financial results.

46. Employee Benefit plans (Contd..)

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

b) Salary inflation risk : Higher than expected increases in salary will increase the defined benefit obligation

c) Demographic risk : For example, as plan is open to new entrants an increase in membership will increase the defined benefit
obligation. Also the plan only provides benefits upon completion of a vesting criteria. Therefore if turnover rates increase then
the liability will tend to fall as fewer employees reach vesting period.

47. Share Based Payments
A ESOP Scheme 2018:

a) The Company implemented the Kaveri ESOP 2018 Scheme for all eligible employees pursuant to the special resolution
approved by the shareholders through postal ballot on 19th July 2018 The Kaveri ESOP 2018 Scheme covers all employees
and directors (excluding independent and promoter directors, promoter group) of the parent company and its subsidiaries
(collectively, “eligible employees”). All the options granted under the scheme are exercised or forfeited and the scheme is closed.

d) The effect of expenses arising from share-based payment transactions on the entity's profit or loss for the period is H Nil Lakhs
(2024-25: H 958.09 Lakhs).

e) Fair value of Options granted

The fair value of options granted during the year 2020-21 as at 31 March 2026 is. H Nil (31 March 2025: H 519.10). The fair
value of the options as at reporting date is determined using the Black Scholes Model which takes into account the exercise
price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk-free interest rate for the term of the option. The options granted during the year 2019-20 & 2020-21
are either exercised or forfeited and hence no valuation is required.

B ESOP Scheme 2024:

a) The Company implemented the Kaveri ESOP 2024 Scheme for all eligible employees pursuant to the special resolution
approved by the shareholders at the 37th Annual General Meeting of the Company held on 30th September 2024. The Kaveri
ESOP 2024 Scheme covers all employees and directors (excluding independent and promoter directors, promoter group) of
the parent company and its subsidiaries (collectively, “eligible employees”). Upon the exercise of options granted under the
Kaveri ESOP 2024 Scheme, the applicable equity shares will be transferred from the Kaveri Employees Trust (“ESOP Trust”)
to the eligible employee. The ESOP Trust will acquire such equity shares by way of secondary market acquisitions funded
through loans from the Company. The Nomination and Remuneration Committee of the Board of the parent company (the
“Compensation Committee”) administers the Kaveri ESOP 2024 Scheme and grants stock options to eligible employees, it
has delegated functions and powers relating to the administration of the Kaveri ESOP 2024 Scheme to the ESOP Trust. The
Compensation Committee determines which eligible employees will receive the options, the number of options to be granted,
the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the
date of grant. The options issued under the Kaveri ESOP 2024 Scheme vest in periods ranging between the end of one and
five years, and generally have a maximum contractual term of five years.

e) Fair value of Options granted

The fair value of options granted during the year 2025-26 as at 31 March 2026 is. H 158.46 (31 March 2025: H Nil). The fair
value options as at reporting date is determined using the Black Scholes Model which takes into account the exercise price,
the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option. No granted options are exercised or forfeited during the year.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.

49. Operating Leases

The Company’s significant leasing arrangements are in respect of operating leases for lands and premises (Agricultural lands, office,
stores, godown etc.). These leasing arrangements which are cancellable range between 11 months and 10 years generally, or longer,
and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in
the Statement of Profit and Loss in respect of short term and low value leases where company has availed exemption under IndAS 116.

50. Contract Liabilities

Contract liabilities resulting from advance payments by customers for delivery of goods and schemes/discounts are predominantly
recognized as sales within one year. The aggregate amount of transaction price allocated to the performance obligations that are
unsatisfied as on 31 March 2026 is h32,142.40 lakhs (31 March 2025 is H 42,185.79 lakhs) resulting from advance payments and shown
under other current liabilities.

51. Note on Reconciliation of Cash flow activities

Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 "Statement of Cash Flows": (contd.)
Amounts reported in statements of cash flows under financing activities

52. Segment Information

a) The Company has only one business segment i.e, Sale of Seeds and there are no other reportable segments under Ind AS 108
"Operating Segments".

b) Geographical information

The Company operates in single principal geographical area i.e., India. Though the Company has operations across various
geographies within India, the same are considered as a single operating segment considering the following factors

- These operating segments have similar long term gross profit margins.

- The nature of the products and production processes are similar and the methods used to distribute the products to the
customers are the same.

c) In view of the above mentioned classification of business and geographical segments the particulars relating to Segment revenue
and results, Segment assets and liabilities, Other segment information, revenue from major products and services, geographical
information are not required to be furnished.

53. Additional Regulatory and Other Information

a) The Company has not revalued its Property, Plant and Equipment (including the Right of use assets) and intangible assets during
the year under review.

b) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPS and the related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person that are repayable on demand; or without
specifying any terms or period of repayment

c) No Proceeding has been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988 and the
rules made thereunder

d) The Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender.

e) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the

Companies Act, 1956.

f) The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies
(Restriction on number of layers) Rules 2017.

g) During the year, no scheme of arrangements has been approved by the competent authority in terms of Sec.230 to 237 of the Act,
in which the company is a party.

h) A). The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources

or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding (whether
recorded in writing or otherwise) that the intermediary shall (i) directly or Indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries); or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

B). The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii)
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

i) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
tax act, 1961 that has not been recorded in the books of account.

j) The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

55 Note on Labour Codes:

On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating
29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the
financial impact due to changes in regulations. The Company has evaluated its existing employee compensation structures in light of
these Codes and relevant draft rules. Based on this assessment, the current compensation framework is compliant with the amended
regulations, and no additional financial impact arises in these financial statements. The Company continues to monitor the finalisation
of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate
accounting effect on the basis of such developments as needed.