SIGNIFICANT ACCOUNTING POLICIES: 31st March 2015

1.1 General:

The Accounts of the company are brpared under Mercantile System of Accounting on Historical Cost and in accordance with the general accepted accounting principles, applicable Accounting Standards and requirement of the Companies Act, 2013 unless otherwise referred herein. Claims/Refunds not ascertainable with reasonable certainty are accounted for on settlement.

1.2 Revenue Recognisation:

Revenue is recognized based on the nature of activity when consideration can be reasonable measured and there exists reasonable certainty of its recovery. Revenues from sale of goods are recognized on dispatch which coincides with transfer of significant risks & rewards to customer and is net of sales returns and sales tax, wherever applicable.

1.3 Fixed Assets:

Fixed Assets are stated at their Original Cost, Net of Cenvat, Less Accumulated Debrciation. Addition includes Purchase Cost, Freight, Duties and other expenses including borrowing cost wherever incurred for acquisition and installation.

1.4 Method of Debrciation:

A) Debrciation on fixed assets is calculated on straight line method and as per the useful life as brscribed in Schedule II of The Companies Act 2013. B) Buildings on lease hold brmises are charged over the lease period or as per the useful life as brscribed in Schedule II of the Companies Act, 2013, whichever period is lower. C) Leasehold Land is being amortized over the lease period. D) The intangible assets are amortized over the expected duration of benefit from those assets.

1.5 Investments:

Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if, such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and quoted / fair value computed category-wise.

1.6 Foreign Currency Transactions

Assets & Liabilities related to foreign currency transactions are translated at exchange rate brvailing at the end of the year. Exchange difference on revenue account is charged to Profit & Loss Account.

1.7 R&D Expenditure:

Revenue Expenditure on Research and Development is charged to Profit & Loss Statement and Capital Expenditure is added to Fixed Assets.

1.8 Inventories

Inventories are valued at the lower of cost and net realisable value. The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition.

1.9 Impairment:

The carrying amount of Assets are reviewed at each Balance Sheet date to assess impairment, if any based on internal/external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and net selling price. An impairment loss is recognized as an expense in the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

1.10 Intangible Assets:

Intangible assets are recognized if future economic benefits are likely and cost of the asset can be measured reliably.

1.11 Employee Benefits:

a. Defined Contribution Plan

Employee benefits in the form of Superannuation Fund, Provident Fund (PF) and ESI considered as defined contribution plan and the contributions are charged to the Profit and Loss Account of the year when the contribution to the respective funds are due.

b. Defined Benefit Plan

Retirement benefits in the form of Gratuity, Leave Encashment and PF (funded) are considered as defined benefit obligations and are provided for on the basis of an Actuarial Valuation, using the projected unit credit method, as at the date of the Balance Sheet.

c. Short term compensated absences are provided based on past experience of the leave availed. Actuarial gain/ Losses, if any, are immediately recognized in the Profit and Loss Account.

1.12 Accounting for Taxes on Income: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable income and accounting income.

1.13 Provisions & Contingent Liabilities: Provision in respect of brsent obligation arising out of past events is made in Accounts when reliable estimates can be made of the amount of the obligation. Contingent Liabilities (if material) are disclosed by way of Notes to Accounts. Contingent Assets are not recognized or disclosed in Financial Statements and are included, if any, in the Directors' Report.

1.14 Use of Estimates and Assumptions: The brsentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

1.15 Government Grants:

Capital Subsidy related to specific fixed assets is reduced from the Gross value of the respective fixed assets. Revenue grants from Government related to revenue expenditure are deducted from the related expenses/Credited to Profit & Loss Account.

1.16 Lease:

Lease which does not transfer substantially all the risks and rewards of ownership is classified as Operating Lease and is recognized as expenses as and when incurred over the lease-terms.

NOTES ON ACCOUNTS:

1. Pursuant to the Scheme of Arrangement and Demerger transfer of authorized Capital of Rs. 4250 lacs divided into 50,00,000 brference share capital of Rs. 85/- each is pending for transfer from Florence Investech Limited to the Company as authorized capital divided into 4,25,00,000 unclassified shares of Rs. 10 each as per the Scheme.

2. Estimated amount of contracts net of advances amounting to Rs. 1.85 lacs (Previous year Rs. 2.74 lacs) remaining to be executed on capital account.

3. (A) Contingent liabilities, not provided for in respect of :

(i) Claims by certain parties against the company not accepted and not provided for Rs. 126.58 lacs (Net of Rs. 99.00 lacs indemnified by another party) (Previous Year Rs. 164.30 lacs (Net of Rs. 99.00 lacs indemnified by another party)).

(ii) Pending export obligation against import of capital goods under EPCG Scheme (Guarantee given Rs. 129.24 lacs): Rs. Nil (Previous year Rs. 0.37 lacs).

(iii) Income Tax (matters in appeals) of Rs. 581.30 lacs (Previous year Rs. 512.89 lacs) & Sales tax (Matters in appeals) of Rs. 6.90 lacs (Previous year Rs. 6.90 lacs).

In respect of certain disallowances and additions made by the Income Tax authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

(B) Company acted as a facilitator and has extended a gurantee to Yes Bank Limited Rs. 3040.44 lacs (Previous year Rs. 1752.94 lacs) and by ICICI Bank Ltd Rs. 130.03 lacs (Previous year Rs. 1,000.38 lacs) for loans that these banks have provided to the farmers.

4. The Company has challenged the notice of the Income Tax assessing officer for reopening of the income tax assessment order for the year ended 31.03.2009 (Assessment year 2009-10), in High Court of Calcutta. Hon'ble High court of Calcutta vide its order dated 26.03.2015 has granted interim stay.

5. (a) In terms of disclosure requirements stated in Accounting Standard on Intangible Assets (AS-26) notified by the Companies (Accounting Standards) Rules, 2006 the management considered it appropriate to amortize "J.K.SEEDS" brand over a period of 20 years (balance 7 years as on Balance Sheet date) from the date of its acquisition, considering nature of business, life cycle of brand, its inherent value and expected future benefits. The carrying amount of "J.K.SEEDS" brand as on 31st March, 2015 is Rs. 945 lacs which is to be amortized in over the balance period of 7 years. (b) Software is amortized over a period of 5 years from the year of installation.

6. (a) Debtors over six months are net of provision made for doubtful Debts of Rs. 101.19 lacs (Previous year Rs. 101.19 Lacs) and are after bad debts of Debtors Rs. Nil (Previous year Rs. 16.14 lacs).

Overdue Receivables exceeding six months includes Rs. 1938.23 lacs from Rajasthan state government along with Security Deposit given amounting to Rs. 121.68 lacs included in the heading "Deposit with Government Authorities and other" in Note no.16. In view of the fact that the materials supplied having met all the quality specifications, and part payments has also been received, the receivable is considered good.

(b) Advance to suppliers are net of provision made for Doubtful advances of Rs. 40.53 lacs (Previous year Rs. 40.53 lacs and are after bad loans of Rs. Nil lacs (Previous year Rs. 7.58 lacs).

(c) Some of the balances of debtors, loans & advances and current liabilities are in the process of confirmation/reconciliation.

7. (a) Income tax calculation has been made considering certain expenses/adjustments available as assessed by the management.

(b) The Company has filed a Writ Petition before the Hon'ble High Court of Calcutta seeking directions for acceptance of revised Income Tax returns by the Income Tax Department, ("the Department") for the Financial years 2005-06 to 2010-11, which had been treated a Nonest by the department vide its Notice dated 17th February, 2014. The above revised returns were filed by the Company with the Department pursuant to the Scheme of Arrangement and Demerger (the Scheme) approved by Hon'ble High court of Calcutta on 17th October, 2012, giving impact of the Scheme from 1st April , 2005, during the financial year 2012-13.

8. Foreign Currency exposure not hedged as at Balance sheet date:

Foreign Currency exposure unhedged net receivable Rs. 4.38 lacs - US $ 7000 (Previous year Rs. 6.61 lacs - US $ 11000) and net payable Rs. 37.63 lacs - US $ 60125 (Previous year Rs. 79.59 lacs - US $ 64032 & EURO 49780)

9. The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to the extent information available with the Company are as under: (i) Principal & Interest amount due and remaining unpaid as at 31.03.2015: Nil (Previous year: Nil) (ii) Payment made beyond and appointed day during the year: Nil (Previous Year: Nil) and (iii) Interest accrued and unpaid as at 31.03.2015: Nil (Previous year: Nil).

10. There is only one business segment - Agri & Allied products.

11. Impairment of Assets:

The Company carries out a periodic review of all its assets with a view to identify any impairment. Impairment of assets, if any, identified on the basis of such review is accounted for in the books as required by the Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India. There is no Impairment of assets which has not been accounted.

12. Leases

Operating Lease

Factory Premises and Vehicles have been obtained on lease. Lease rentals in case of factory brmises on cancellable lease have escalation clause while there is no escalation in case of Vehicles except for change in taxes, if any. There are no significant restrictions imposed by Lease agreements. There are no sub leases.

13. CSR expenses amounting to Rs. 18.07 lacs (Previous Year Nil) have been included in Miscellaneous Expenses under the head “Other Expenses” in note no.24.

14. Previous year’s figures have been re-grouped/re-classified/recast wherever necessary.

15 . Figures less than Rs. 500/- has been shown at actuals in Bracket.

for LODHA & CO.

Chartered Accountants

Firm Registration No.301051E

N.K. Lodha

Partner

Membership No. 85155

AMIT AGARWAL Chief Financial Officer

ANOOP SINGH GUSAIN Company Secretary

BHARAT HARI SINGHANIA Chairman

Dr. RAGHUPATI SINGHANIA Directors

SANJAY KUMAR KHAITAN

SANJEEV KUMAR JHUNJHUNWALA

SWATI SINGHANIA

ABHIMANYU JHAVAR

J.R.C.BHANDARI

SWAROOP CHAND SETHI

VIKRAMPATI SINGHANIA

SANJAY KUMAR GUPTA

New Delhi, the 7 th May, 2015