xvi) Provisions :

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at theend of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

xvii) Contingent liabilities acquired in a business combination

Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date. At the endof subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognised in accordance with Ind AS 37 and the amount initially recognised less cumulative amortisation recognised in accordance with Ind AS 18 - Revenue. _______

xviii) Earnings per equity share:

Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xix) Dividend:

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends arerecorded as a liability on the date of declaration by the company's Board of Directors.

xx) Cenvat, Service Tax, Vat & GST:

GST credit on materials purchased for production / service availed for production / input service are taken into account at the time of purchase and GST credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired. _

xxi) Segment reporting

The Company's business activities which were primarily manufacturing and dealing in pesticides and Agro Chemicals falls within a single reportable segment but from the financial year 2023-24, the company has entered into a secondary reportable segment which is trading of Agro Products there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108. Further, the operations of the Company are domiciled in India and therefore there are no reportable geographical segment. (Refer Note 40 for detailed bifurcation of Segment Revenue, results, assets and liabilities.

xxii) Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. _

xxiii) Operating cycle

The Operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in Ind AS 1- 'Presentation of Financial Statements' and Schedule III to the Companies Act,2013.

(i) Securities Premium Account : ^

Securities Premium reserve is used to record the premium on issue of shares. The reserve will be utilised accordance with the provision of companies act, 2013.

(ii) Retained Earinings :

Profit & Loss can be utilised by the company for distribution to its equity shareholders of the company. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the requirements of the Companies Act,

2013. Thus, the amounts reported above are not distributable in entirety.

(iii) FVOCI of Acturial Gain/(Loss) :

The company has elected to recognise the acturial gain/(loss) on gratuity valuation in the other comprehensive income. These changes are accumulated within the FVOCI of Acturial Gain/(Loss)

a. Actuarial Risk: It is a risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase isObligation at a rate that is higher than expected.

Variability in mortality rates : If actual mortality rate are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will leadto an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates : If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

b. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during theinter-valuation period.

c. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

d. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial — assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on theyields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation.

The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees.

This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately inthe year when any such amendment is effective.

40. Segment Reporting

Segment reporting Based on "management approach" as defined in Ind As 108- Operating Segments the chief operating decisionmaker regularly monitors and reviews the operating results of the whole company into two business segments. These segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:

a) Agro Chemicals:- This is the main area of the Operation and includes the manufacturing and dealing in pesticides , insecticides, herbicide, fertilizers and allied products related to research and technical formulations

b) Agro Trade:-This includes the Trading of Agro Products.

Based On the " Management approach" defined in IND as 108-Operating segments, Chief Operation Decision Maker evaluates the Company's Performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along this segments.

The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either directly (i.e. as '

prices ) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)

There were no transfers between the levels during the year

Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted pricies in the open market and rates available in secondary market respectively.

The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their short-term nature.

42 Financial risk management

The Company's activities expose it to a variety of financial risks, including credit risk, market risk and liquidity risk. The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

The Company's risk management is governed by policies and approved by the board of directors. Company's identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non- derivative financial instruments.

The audit committee oversees how management monitors compliance with the company's risk management policies and procedures, a nd reviews . the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its ' oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,the results of which are reported to the audit committee.

I Credit Risk —

Credit 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, and arises principally from the Company's receivables from customers. Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of ^ business. The history of trade receivables shows a negligible provision for bad and doubtful debts. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments. The company has adopted simplified approach of ECL model for impairment.

i) Trade Receivables:

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographi cs of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company with various activities as mentioned above manages credit risk. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. Ageing of trade receivables is as under. The

ii) Financial assets that are neither past due nor impaired

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's assessment of credit risk about particular financial institution. None of the Company's cash equivalents, including term deposits (i.e., certificates of deposit) with banks, were past due or impaired as at each balance sheet date.

II Liquid 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 liquidity risk by maintaining adequate reserves, banking facilities including approved borrowing facilities sanctioned by the Parent Company, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Long-term borrowings generally mature between One to Ten years. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company's policy is to manage its borrowings centrally using mixture of .

long-term and short-term borrowing facilities to meet anticipated funding requirements.

The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lender.

As of March 31, 2024 & March 31, 2023; the Company had unutilized credit limits from banks of Rs. 1,15,71,661/- and Rs. 28,26,838/- respectively.

a) Interest Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates related primarily to the Company's short-term borrowings with floating interest rates.

Long-term borrowings expose the company to risk of changes in interest rates as the Company had External Commercial Borrowings (ECB) carrying a variable interest rate. In order to hedge interest rate risk arising out of variable interest rate ECBs, company has entered into Interest Rate swaps.

For other borrowings, Company's treasury department monitors the interest rate movement and manages the interest rate risk based on its The exposure of the company's borrowing to interest rate changes at the end of the reporting period are as follows: _

43 Capital Management: ^

The Company's capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance.

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

49. Additional Regulatory Information (Non Ind AS) ^

The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the extentapplicable:

i. Title deeds of immovable property other than proper taken on lease by duly executed lease agreement are held in the name of the -

company. ^

ii. During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation in respectof ^ '

Property, Plant & Equipment and intangible assets.

iii. There are no intangible assets under development in the Company during the current reporting period.

iv. No proceedings have been initiated or pending against the company for holding any benami property under the Benami -"

transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.

v. The company does have borrowings from banks against the security of current assets.

vi. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in accordance withthe guidelines on wilful defaulters issued by the Reserve Bank of India.

vii. The company has not entered in to any transaction with companies struck off under section 248 of the Companies Act,2013.

viii. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

ix. The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at the balancesheet date.

x. There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act, 1961 which have not been recorded in the books of account.

50. The company made appropriate provision for the CSR expenditure according to Section 135 of the Companies Act, 2013

51. Subsequent Events:

Subsequent to Balance Sheet Date, there are no events occurred which require disclosure or adjustments in the financialstatements.

52. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss have been provided for the year ended 31st March, 2024 (For the year ended 31 March, 2023 is Rs. Nil)

53. Previous Periods' / Years' figures have been re-grouped / re-classified where necessary to make it comparable with the currentperiod. Ý ( Signature contains for the Note No. 1 to 53 )

As per our report of even date attached For and on the behalf of the Board of Directors of

Crop Life Science Limited

For Shah & Shah

Chartered Accountants

Rajesh V Lunagariya Managing Director DIN : 01580748

Per Tejas C. Shah Partner

ICAI Membership Number: 135639

Ashvin R Lunagaria Sunita S Gonsalves

Place .: . Whole-time Director Chief Financial Officer

Place: Ahmedabad

Date:27/0»4 ^{DIN : 02731913}