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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KARNATAKA STATE SEEDS CORPORATION LIMITED, BANGALORE

Report on the Standalone Financial Statements:

We have audited the accompanying standalone financial statements of Karnataka State Seeds Corporation Limited (“the Company”) which comprise of Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements:

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone 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 policies 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 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 judgements 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 to the preparation and fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these standalone 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 there under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.

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An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.

Basis of Qualified Opinion:

Attention of the members is invited to the following:

a) Foot note a) to note 8 of the financial statements regarding provision for research and development amounting to Rs.29,416,615/- not in accordance with Accounting Standard (“AS”) – 29 Provisions, Contingent Liabilities and Contingent Assets.

b) Foot note ii) b) to note 11 of the financial statements regarding balance in centre accounts amounting to Rs.12,807,061/- carried forward from earlier years, which is under reconciliation.

c) Foot note b) to note 19 of the financial statements regarding stock shortages/ short remittances amounting to Rs.10,890,397/- treated as good of recovery from ex-employees even though in certain cases the Company has initiated the legal action.

d) Foot note d) to note 19 of the financial statements regarding delay in filing subsidy claim with Department of Agriculture amounting to Rs.1,378,469/- treated as good of recovery.

e) Note 31 b) of the financial statements regarding non-disclosure of information as required under AS – 15 Employee Benefits and non-provision for half pay leave to its employees.

f) Note 35 of the financial statements regarding non receipt of confirmation of balances from various vendors and parties with whom the Company has transactions.

In all the above cases we are unable to express any independent opinion and effect on revenue not ascertained.

Qualified Opinion:

In our opinion and to the best of our information and according to the explanations given to us except for the matters described in the Basis of Qualified Opinion, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2015, and its profits and its cash flows for the year ended on that date.

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Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by the section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of account as required by law have been kept by the 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 Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 except for note 31 b) of the financial statements regarding non-disclosure of information as required under AS 15 and non-provision for half pay leave payable to its employees and Provision for Research and Development activities is not as per AS 29.

e. On the basis of the written representations received from the directors as on March 31, 2015 taken on the record by the Board of Directors, none of the directors is disqualified as on that date from being appointed as a director in terms of section 164(2) of the Act.

f. With respect to other matters to be included in the Auditors report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us,

i. The Company has disclosed the impact of pending litigations on its financial statements as referred in foot note 2 to note 10 and note 21. ii) to iv) to the financial statements.

ii) The Company did not have any long-term contracts and has not entered into any derivative contracts as referred in note 39 to the financial statements. Accordingly no provision is required to be recognized in respect of material foreseeable losses under applicable laws or accounting standards.

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iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund during the year by the Company.

3. As required by section 143 (5) of the Act, we have considered the directions issued by the Comptroller and Auditor General of India, the action taken thereon and its impact on the accounts and financial statements of the Company in Annexure – B.

For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021

Sd/- (C R Deepak) Partner Membership No. 215398 Place: Bangalore Date: September 21, 2015

B K RAMADHYANI & CO. LLP Chartered Accountants

No. 68, # 4-B, Chitrapur Bhavan, 8th Main, 15th Cross, Malleswaram,

Bangalore – 560 055.

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ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING “REPORTON OTHER LEGAL AND REGULATORY REQUIREMENTS” OF OUR REPORT TOTHE MEMBERS OF KARNATAKA

STATE SEEDS CORPORATION LIMITED, BANGALORE.

1. a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. However comprehensive description of assets and their current location need to be updated in the asset records.

b. As explained to us, during the year the management has physically verified fixed assets in certain units as per a phased program of physical verification. However, pending reconciliation of assets physically verified with fixed asset register, we are unable to comment on the same.

2. a. Inventories have been physically verified during the year by the management at the end of financial year. However, in our opinion, the frequency of verification is not reasonable or adequate considering the size of the Company.

b. The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stocks and the book records were not material.

3. The company has not granted any loans to the companies covered in the register maintained under section 189 of the Act, hence clause 3(iii) of the Order is not applicable.

4. In our opinion and according to the information and explanations given to us, internal control procedures need to be improved commensurate with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and with regard to sale of goods and services owing to shortage of manpower and non-integration of books of account. During the course of our audit we have noticed that the Company is in process of reconciling the inter unit balances amounting to Rs.12,807,061/- as explained in foot note ii) b) to note 10 of the financial statements which is continued and the Company has failed to correct major weakness in the internal controls.

5. The Company has not accepted any deposits as applicable under the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other provisions of the Act and rules framed there under. Accordingly, the provisions of clause 3(v) of the said Order are not applicable.

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6. To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 148 of the Act for the products of the company. Accordingly, the provisions of clause 3(vi) of the said Order are not applicable.

7. a. According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues applicable to it with the appropriate authorities. In terms of its books of account, no undisputed statutory dues payable in respect of provident fund, employees’ state insurance, income tax, wealth tax, service tax, customs duty, excise duty, value added tax, cess and any other undisputed statutory dues were outstanding, as at March 31, 2015 for a period of more than six months from the date they became payable.

b. According to the records of the Company and according to the information and explanations given to us, there were no dues outstanding on account of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess on account of dispute except income tax which has been furnished as under:

Name of the Statute

Period Amount Involved

Forum where dispute is pending

The Income Tax Act, 1961

2010 – 11 2,563,571 Income Tax Appealate Tribunal

2011 – 12 1,391,513 The Commissioner of Income Tax (Appeals)

c. According to information and other details furnished by the Company, there were no amounts that were required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules have not been made there under.

8. The Company does not have any accumulated losses at the end of financial year and also the Company has not incurred any cash losses in respect of the year under review or in respect of the preceding financial year.

9. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to a bank.

10. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions and hence clause 3 (x) of the Order is not applicable.

11. The Company has not taken any term loans during the year hence provisions of clause 3(ix) of the Order is not applicable.

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12. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us, we report that no material frauds on or by the Company during the year has been noticed or reported.

For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021

Sd/- (C R Deepak) Partner Membership No. 215398 Place: Bangalore Date: September 21, 2015

B K RAMADHYANI & CO. LLP Chartered Accountants

No. 68, # 4-B, Chitrapur Bhavan, 8th Main, 15th Cross, Malleswaram,

Bangalore – 560 055.

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Annexure – B

DIRECTIONS INDICATING THE AREAS TO BE EXAMINED BY STATUTORY AUDITORS DURING THE

COURSE OF AUDIT OF ANNUAL ACCOUNTS OF KARNATAKA STATE SEEDS CORPORATION

LIMITED FOR THE YEAR 2014-2015 ISSUED BY THE COMPTROLLER & AUDITOR GENERAL OF

INDIA UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013

Sl. No.

Areas Examined Observation / Findings

1 If the Company has been selected for

disinvestment, a complete status report in

terms of valuation of Assets (including

intangible assets and land) and Liabilities

(including committed & General Reserve)

may be examined, including the mode and

present stage of disinvestment process.

Based on the information and explanation

furnished to us by the Company, it has not

been selected for disinvestment as at

March 31, 2015.

2 To report whether there are any cases of

waiver / write off of debts / loans interest

etc., if yes, the reason thereof and the

amount involved.


furnished to us by the Company and on our

verification of books of accounts, the

Company has not waived or written off any

debts, loans interest etc. However, during

our audit we had observed that there were

certain old debts outstanding which has

been reported under note 35, foot note b)

of note 19 and foot note d) of the financial

statements for which no provision has been

made and treated as good of recovery. We

are unable to express any independent

opinion on the same.

3 Whether proper records are maintained for

inventories lying with third parties and

assets received as gift from Government or

other authorities.


furnished to us by the Company and on our

verification of books of accounts, there are

no inventories lying with third parties.

However, during the year there are no case

of assets received as gift from Government

or other authorities.

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4 A report on age wise analysis of pending

legal / arbitration cases, including the

reasons of pendency and existence /

effectiveness of a monitoring mechanism

for expenditure on all legal cases (foreign

and local) may be given.

Age-wise analysis of pending legal &

arbitration cases and pending dispute cases

are as under:

Particulars No. of cases

Less than 1 year 24

More than 1 year and less

than 2 years

Nil

More than 2 years and

less than 3 years

4

More than 3 years 81

Total 109

Reasons for their pendency is that the legal

cases entail procedural rules being adhered

to and are finally heard / disposed of by the

Court at their own turn. There exists an

effective monitoring mechanism for

expenditure on all local legal cases. An

amount of Rs.2,41,500/- has been incurred

as legal fees which is 0.02% of turnover.

SPECIFIC SUB DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013

Sl. No.

Areas Examined Observation / Findings

1 Whether the land owned by the Company is encroached, under litigation, not put to use or declared surplus. Details may be provided.

Based on the information and explanation furnished to us by the Company, there are no land owned by the Company which has been encroached, under litigation, not put to use or declared surplus. However, there are certain land used by the Company not been capitalised in the books of account as enumerated in foot note 2 to 6 of note 13 to the financial statements.

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2 Whether the stock of seeds packing /

certification materials and other items has

been taken on the basis of stock records

after adjustment of shortage / excess found

on physical verification and whether due

consideration has been given for

deterioration in the quality of old stock

which may result into overvaluation of

stock ?

The stock of seeds and other items have

been valued based on the stock records

after making necessary adjustment for

excess / shortage of stock. Further,

deteriorated material has been valued

based on realisable value. However, the

Company has not valued 86,846 quintals of

seed which are under process as the

corresponding stock has not been

accounted as enumerated in foot note 1 of

Note 16 of the Financial Statements. The

valuation of inventory of seeds on the

potency / generation of seeds has not been

independently evaluated by as it is

technical in nature.

3 Whether the Company has an effective

mechanism for disbursement for loans /

subsidies / agro inputs and agriculture

machineries to beneficiaries and recovery

thereof (loans) along with interest, if any,

from beneficiaries ?

The Company has a proper mechanism for

disbursement for loans / subsidies etc.,

except for the matter reported in foot note

2 of Note 19 of the financial statements.

4 That grants / subsidies received for

implementing various schemes are

accounted for as per the accounting

standards and utilized for intended

purposes.

The Company as per the policy consistently

followed on the receipt of subsidy is

accounted as Government Grants under

Other current liabilities. On the utilisation

of the same to deferred Government

Grants and accounted as per Accounting

Standards – 13 issued by Ministry of

Corporate affairs.

5 Whether physical verification and valuation

of standing crops / trees was done at the

end of the financial year in accordance with

the standard industry practices ?


received from the Company there are no

standing crops or trees that need to valued

as at March 31, 2015.

Addendum to Director’s Report

Reply to the comments / observation of the Statutory Auditor Report

Dated 21.09.2015

Refer to

Para Nos.

Replies of the Management

a)

In order to provide BT Cotton Seeds to the farmers of the State, the

Board has approved for creating provision for R&D activities for

acquisition of Bt genes for use in Bt Cotton Hybrid development.

Further Government of Karnataka has already concurred and issued

Government consent for acquisition of BT Cotton Technology and trade

in BT Cotton seeds. Accordingly Rs.297.90 Lakhs has been provided in

the accounts for the year 2011-12. Out of this an amount of Rs.3.73

lakhs utilized during the year 2014-15 for evaluation trials of new

varities of Hybrid Cotton. The necessary action is being initiated to

utilize this amount for the purpose for which it is provided.

b)

The Notional accounts of the Centre accounts referred in para, which

are carried forwarded from earlier years are reviewed and Board

approved for reconciliation of these accounts through professional

Chartered Accountants for their finalization and proper incorporation in

the books of accounts. Accordingly this assignment has been entrusted

to professional Chartered Accountants firm and their verification is

under progress.

c) Out of Rs.108.90 Lakhs outstanding from employees towards stock

shortage, short remittances, Rs.95.94 Lakhs pertains to Chintamani

Centre noticed during 2010-11. The Criminal case against Jr. Assistant

who has confessed to the defalcation of funds, civil suit for attachment

Sites and Agricultural land offered as securities, case under Negotiable

Instrument Act for dishonor of cheques are filed at Chintamani and

Bangalore courts. The said cases are under progress at various courts.

The employee has been dismissed from the service on the basis of

departmental enquiry. The incident is also under investigation by the

Criminal Investigation Department and it is under progress. The

balance amount of Rs.11.14 Lakhs is receivable from ex-employees

and Rs.1.82 Lakh is receivable from Employees of the Corporation. The

necessary suits are filed in various courts for recovery of the amount

and action is being initiated to recover the same.

d) During the year 2009-10, subsidy extended to the Seed Growers to the

extent of Rs.54.24 Lakhs at Bijapur Centre. The delayed claims are

filed with the Department of Agriculture and Rs.40.46 lakhs is received.

The necessary actions are initiated to recover balance amount of

Rs.13.78 Lakhs from the concerned official.

e) The employees of the Corporation have a facility of availing of Half Pay

Leave facility with the approval of the Management. The un availed

leave will be lapsed automatically, if it is not granted / sanctioned /

utilized. Since there is no financial committed liability, no provision has

been made in this regard.

f)

The Company has initiated steps to obtain confirmation of balances

from various trade payables, trade receivables and loans & advances.

However, it has not received the same from said parties.

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6)(B) OF

THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF KARNATAKA STATE SEEDS

CORPORATION LTD., BANGALORE FOR THE YEAR ENDED 31 MARCH 2015.

The preparation of financial statements of Karnataka State Seeds Corporation Ltd., Bangalore for the

year ended 31 March 2015 in accordance with the financial reporting frame work prescribed under the

Companies Act, 2013 is the responsibility of the management of the Company. The statutory auditors

appointed by the Comptroller and Auditor General of India under Section 139(5) of the Companies Act,

2013 are responsible for expressing opinion on these financial statements under section 143 of the Act

based on independent audit in accordance with the standards on auditing under section 143(10) of the

Act. This is stated to have been done by them vide their Audit Report dated 21.09.2015.

I, on behalf of the Comptroller and Auditor General of India have decided not to conduct the

supplementary audit of financial statements of Karnataka State Seeds Corporation Ltd., Bangalore for

the year ended 31 March 2015 and as such have no comments to make under section 143(6)(b) of the

Act.

For and on behalf of the

Comptroller & Auditor General of India

Sd/-

(L. ANGAM CHAND SINGH)

PR. ACCOUNTANT GENERAL

(GENERAL & SOCIAL SECTOR AUDIT)

KARNATAKA, BANGALORE

BANGALORE

Date: 30 November 2015

I. EQUITY AND LIABILITIES

FQén ªÀÄvÀÄÛ ºÉÆuÉUÀ¼ÀÄ

(1) Shareholders’ funds: µÉÃgÀÄzÁgÀgÀ ºÀt

(a) Share capital µÉÃgÀÄ §AqÀªÁ¼À 3 361,24,846 360,85,190

(b) Reserves and surplus ªÀÄÄqÀÄ¥ÀÄUÀ¼ÀÄ ªÀÄvÀÄÛ ºÉZÀÑ¼À 4 3274,58,987 3288,04,658

3635,83,833 3648,89,848

(2) Share application money pending allotment

ºÀAaPÉUÉ ¨ÁQ EgÀÄªÀ µÉÃgÀÄ Cfð ªÉÆ§®UÀÄ 15,00,084 84

15,00,084 84

(3) Non-current liabilities: ZÁ°ÛAiÀÄ®èzÀ ºÉÆuÉUÀ¼ÀÄ

(a) Government Grants ¸ÀPÁðgÀzÀ C£ÀÄzÁ£À 5 5173,45,920 5788,23,008

(b) Long term borrowings ¢ÃWÁðªÀ¢ü s¸Á®UÀ¼ÀÄ 6 - -

(c) Deferred Tax Liabilities ªÀÄÄAzÀÆrzÀ vÉjUÉ dªÁ¨ÁÝjUÀ¼ÀÄ 7 - 38,53,222

(d) Long-term provisions ¢ÃWÁðªÀ¢ü ºÀªÀtÂPÉUÀ¼ÀÄ 8 524,56,088 490,51,336

5698,02,008 6317,27,566

(4) Current liabilities: ZÁ°Û ºÉÆuÉUÀ¼ÀÄ

(a) Short-term borrowings C¯ÁàªÀ¢ü ¸Á® 9 - 100,00,000

(b) Trade payables ªÁå¥ÁgÀzÀ ¸ÀAzÁAiÀÄªÁUÀ¨ÉÃPÁzÀ ªÉÆvÀÛs 10 1004,01,954 884,66,605

(c) Other current liabilities EvÀgÉ ZÁ°Û ºÉÆuÉUÀ¼ÀÄ 11 6755,71,592 5236,60,322

(d) Short-term provisions C¯ÁàªÀ¢ü ºÀªÀtÂPÉUÀ¼ÀÄ 12 73,57,015 71,14,969

7833,30,561 6292,41,896

17182,16,486 16258,59,394

II. ASSETS D¹ÛUÀ¼ÀÄ

(1) Non-current assets: ZÁ°ÛAiÀÄ®èzÀ D¹ÛUÀ¼ÀÄ

(a) Fixed assets ¹ÜgÁ¹ÛUÀ¼ÀÄ

(i) Tangible assets UÉÆÃZÀgÀ D¹ÛUÀ¼ÀÄ 13 5839,98,250 6751,61,394

(ii) Intangible assets CUÉÆÃZÀgÀ D¹ÛUÀ¼ÀÄ 13 41,571 1,22,658

(iii) Capital work-in-progress ¥ÀæUÀwAiÀÄ°ègÀÄªÀ §AqÀªÁ¼À 14 2312,35,743 527,85,908

8152,75,564 7280,69,960

(b) Deferred Tax Asset ªÀÄÄAzÀÆrzÀ vÉjUÉ D¹Û 7 151,67,750 -

(c) Long term loans and advances ¢ÃWÁðªÀ¢ü ¸Á®UÀ¼ÀÄ ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼ÀÄ 15 157,00,245 134,26,390

8461,43,559 7414,96,350

(2) Current assets: ZÁ°Û D¹ÛUÀ¼ÀÄ

(a) Inventories zÁ¸ÁÛ£ÀÄUÀ¼ÀÄ 16 2391,83,893 2504,97,495

(b) Trade receivables ªÁå¥ÁgÀzÀ §gÀ¨ÉÃPÁzÀ ªÉÆvÀÛ 17 865,17,726 449,46,547

(c) Cash and bank balances £ÀUÀzÀÄ ªÀÄvÀÄÛ ¨ÁåAPï ²®ÄÌ 18 1771,45,215 4010,02,914

(d) Short-term loans and advances C¯ÁàªÀ¢ü ¸Á®UÀ¼ÀÄ ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼ÀÄ 19 2559,36,730 1864,11,055

(e) Other current assets EvÀgÉ ZÁ°Û D¹ÛUÀ¼ÀÄ 20 1132,89,363 15,05,033

8720,72,927 8843,63,044

17182,16,486 16258,59,394

Summary of significant accounting policies and other explanatory

notes forming part of the financial statemetns ¸ÀAQë¥ÀÛ ªÀÄºÀvÀézÀ ¯ÉPÀÌ ¤ÃwUÀ¼ÀÄªÀÄvÀÄÛ EvÀgÉ DyðPÀ ¥ÀnÖUÉ ¸ÉÃjzÀ C£ÀÄ¸ÀÆaUÀ¼À£ÀÄß £ÉÆÃrj

1,2,31

to 40

For B K Ramadhyani & Co LLP,Chartered AccountantsFirm Number: 0028785/S200021

Sd/-(C.R. Deepak)

Partner

Place: Bangalore

Date: September 21, 2015

(G.L. Kurtakoti)

(Dr. Shivamurthappa)Managing Director

(K. Gopalakrishna)

Figures as at end of Current

Reporting Period

31st March 2014(in Rs.) (gÀÆ.UÀ¼À°è)

Sd/-

In Accordance with our Report attached For and on behalf of the Board of directors of Karnataka State Seeds Corporation Limited

(I.S. Patil)Director

Particulars«ªÀgÀUÀ¼ÀÄ

Note

No.

Company SecretaryGeneral Manager (FA&MIS)

KARNATAKA STATE SEEDS CORPORATION LIMITED

Balance Sheet as at 31st March 2015 31£ÉÃ ªÀiÁZïð 2015 gÀ CAvÀåPÉÌ EzÀÝ ¸ÀAvÀÄ®£À ¥ÀnÖ

PÀ£ÁðlPÀ gÁdå ©Ãd ¤UÀªÀÄ ¤AiÀÄ«ÄvÀ


Reporting Period

31st March 2015(in Rs.) (gÀÆ.UÀ¼À°è)

Sd/- Sd/-

Sd/-

I. Revenue DzÁAiÀÄ

Revenue from operations DyðPÀ ªÀåªÀºÁgÀzÀ DzÁAiÀÄ 22 15329,74,223 16382,85,679

II. Other income EvÀgÉ DzÁAiÀÄ 23 1757,58,724 367,03,697

III. Total Revenue (I+II) MlÄÖ DzÁAiÀÄ 17087,32,947 16749,89,376

IV. Expenses ªÉZÀÑUÀ¼ÀÄ

Purchases of Stock-in-Trade ªÀåªÀºÁgÀzÀ zÁ¸ÁÛ¤£À RjÃ¢UÀ¼ÀÄ 24 12808,35,188 14896,18,534

Changes in inventories of stock in trade zÁ¸ÁÛ¤£À §zÀ¯ÁªÀuÉ ºÉZÀÄÑ / PÀrªÉÄ 25 113,13,602 (1095,84,615)

Employee benefits expense ¹§âA¢UÀ¼À ¸Ë®¨sÀåUÀ¼À ªÉZÀÑ 26 1432,31,244 1333,39,630

Finance costs ºÀtPÁ¹£À ªÉZÀÑUÀ¼ÀÄ 27 1,73,369 3,85,971

Depreciation and amortization expense ¸ÀªÀPÀ½ / zÀwÛ ªÉZÀÑ 28 474,39,293 215,12,822

Other expenses EvÀgÉ ªÉZÀÑUÀ¼ÀÄ 29 2192,02,955 1127,52,544

17021,95,651 16480,24,886

V. Profit before Exceptional items and tax (III-IV)

»A¢£À ªÀµÀðzÀ «±ÉÃµÀ CA±ÀUÀ¼ÀÄ ªÀÄvÀÄÛ vÉjUÉ ¥ÀÆªÀð ¯Á¨sÀ 65,37,296 269,64,490

VI. Exceptional items - «±ÉÃµÀ CA±ÀUÀ¼ÀÄ

Profit on sale of TDR's nrDgï ªÀiÁgÁlzÀ ¯Á¨sÀ - 95,75,000

VII. Profit before tax (V+IV) vÉjUÉ ¥ÀÆªÀð ¯Á¨sÀ 65,37,296 365,39,490

VIII. Tax expense vÉjUÉ ªÉZÀÑ

(1) Current tax ¥Àæ¸ÀÄÛvÀ ªÀµÀðzÀ vÉjUÉ 103,00,000 120,00,000

(2) Prior years »A¢£À ªÀµÀðUÀ¼ÀÄ 1,30,960 44,46,063

(3) Deferred tax Credit ªÀÄÄAzÀÆrzÀ vÉjUÉ PÉærmï (190,20,972) 38,53,222

(85,90,012) 202,99,285

IX. Profit for the year (VII - VIII) ªÁ¶ðPÀ ¯Á¨sÀ 151,27,308 162,40,205

X. Earnings per equity share : ¥Àæw FQén µÉÃj£À UÀ½PÉ 30 41.69 44.76

(a) Basic ªÀÄÆ® 40.10 43.05

(b) Diluted w½UÉÆAqÀ

Summary of significant accounting policies and other explanatory

notes forming part of the financial statemetns ¸ÀAQë¥ÀÛ ªÀÄºÀvÀézÀ ¯ÉPÀÌ ¤ÃwUÀ¼ÀÄªÀÄvÀÄÛ EvÀgÉ DyðPÀ ¥ÀnÖUÉ ¸ÉÃjzÀ C£ÀÄ¸ÀÆaUÀ¼À£ÀÄß £ÉÆÃrj

1,2,31

to 40

For B K Ramadhyani & Co LLP,

Chartered Accountants

Firm Number: 0028785/S200021

Sd/-

(C.R. Deepak)

Partner

Place: Bangalore


Sd/- Sd/-


Reporting Period

31st March 2015

(in Rs.) (gÀÆ.UÀ¼À°è)


Reporting Period

31st March 2014


(Dr. Shivamurthappa)

Sd/- Sd/-

General Manager (FA&MIS)

Managing Director

(K. Gopalakrishna)



Statement of Profit and loss for the year ended 31st March 2015 31£ÉÃ ªÀiÁZïð 2015 PÉÌ PÉÆ£ÉUÉÆAqÀ ªÀµÀðzÀ ¯Á¨sÀ-£ÀµÀÖzÀ vÀSÉÛB

Particulars«ªÀgÀUÀ¼ÀÄ

Note

No.

Company Secretary

In Accordance with our Report attached For and on behalf of the Board of directors of Karnataka State Seeds Corporation Limited

(I.S. Patil)

Director

(G.L. Kurtakoti)

Cash flow from Operating Activities

PÁAiÀiÁðZÀgÀuÉ¬ÄAzÀ §AzÀ £ÀUÀzÀÄ

Profit before tax vÉjUÉ ¥ÀÆªÀð ¯Á¨sÀ 65,37,296 365,39,490

Adjustments for ºÉÆAzÁtÂPÉUÀ¼ÀÄ

a) Depreciation and Amortization Expenses ¸ÀªÀPÀ½ ªÀÄvÀÄÛ zÀwÛ ªÉZÀÑUÀ¼ÀÄ 201,14,935 95,42,697

b) Interest expense §rØAiÀÄ ªÉZÀÑ 1,73,369 3,60,971 c) (Profit) / loss on sale of fixed assets

¹ÜgÁ¹ÛAiÀÄ ªÀiÁgÁlzÀ (¯Á¨sÀ) / £ÀµÀÖ - (93,62,899)

d) Interest income §rØAiÀÄ DzÁAiÀÄ (123,83,114) (115,18,583)

e) Provision (net) ºÀªÀtÂPÉ (¤ªÀé¼À) 36,26,868 (90,66,374)

115,32,058 (200,44,188)

180,69,354 164,95,302

(Increase) / decrease in inventories zÁ¸ÁÛ¤£À°è (ºÉZÀÑ¼À) / PÀrvÀ 113,13,602 (1095,84,615)

(Increase) / decrease in trade receivablesªÁå¥ÁgÀ¢AzÀ §gÀ¨ÉÃPÁzÀ ªÉÆvÀÛ (ºÉZÀÑ¼À) / PÀrvÀ (415,71,179) 277,21,959

(Increase) / decrease in loans and advancesC¯ÁàªÀ¢ü ¸Á® ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼À°è (ºÉZÀÑ¼À) / PÀrvÀ (698,59,825) 423,28,282

(Increase) / decrease in other current assetsEvÀgÉ ZÁ°Û D¹ÛUÀ¼À°è (ºÉZÀÑ¼À) / PÀrvÀ (1094,22,228) 83,24,991

Increase / (decrease) in trade PayableªÁå¥ÁgÀzÀ ¸ÀAzÁAiÀÄªÁUÀ¨ÉÃPÁzÀ ªÉÆvÀÛ (ºÉZÀÑ¼À) / PÀrvÀ 119,35,349 (392,84,467)

Increase / (decrease) in other liabilitiesEvÀgÉ ºÉÆuÉUÀ¼À°è (ºÉZÀÑ¼À) / PÀrvÀ 1533,15,489 1881,76,109

(442,88,792) 1176,82,259

(262,19,438) 1341,77,561

Income tax paid¤ªÀé¼À DzÁAiÀÄ vÉjUÉ ¥ÁªÀw¹zÀÄÝ 104,60,665 284,85,150

Net cash from operating activitiesPÁAiÀiÁðZÀgÀuÉ ZÀlÄªÀnPÉUÀ¼À ¤ªÀé¼À £ÀUÀzÀÄ (366,80,103) 1056,92,411

Cash flow from Investing ActivitiesºÀÆrPÉAiÀÄ ZÀlÄªÀnPÉUÀ¼À £ÀUÀzÀÄ ºÀjªÀÅ

Purchase of Property, Plant & EquipmentRjÃ¢ D¹ÛUÀ¼ÀÄ, AiÀÄAvÉÆæÃ¥ÀPÀgÀtUÀ¼ÀÄ (1862,90,500) (665,89,866)

Proceeds from sale of Property, Plant & Equipment ¯Á¨sÀ D¹ÛUÀ¼À ªÀiÁgÁl, AiÀÄAvÉÆæÃ¥ÀPÀgÀtUÀ¼ÀÄ - 97,27,000

(Increase) / decrease in value of Fixed Deposits exceeding 12 months

maturity 12 wAUÀ¼À CªÀ¢ü «ÄÃjzÀ ¤²ÑvÀ oÉÃªÀtÂAiÀÄ°è (ºÉZÀÑ¼À) / PÀrvÀ (61,80,000) 1314,70,531

Interest received ¥ÀqÉzÀ §rØ 100,21,012 115,18,583

Net cash flow from investing activity¤ªÀé¼À £ÀUÀzÀÄ PÁAiÀiÁðZÀgÀuÉAiÀÄ ZÀlÄªÀnPÉUÀ½AzÀ ºÀjPÉ (1824,49,488) 861,26,248


For the year ended

31st March 2015



Cash Flow Statement for the year ended 31st March 2015

Particulars «ªÀgÀUÀ¼ÀÄ

31£ÉÃ ªÀiÁZïð 2015 PÉÌ PÉÆ£ÉUÉÆAqÀ ªÀµÀðzÀ £ÀUÀzÀÄ ZÀ¯ÁªÀuÁ ¥ÀnÖ


For the year ended

31st March 2014

Cash flow from Financing ActivitiesºÀtPÁ¹£À ZÀlÄªÀnPÉUÀ½AzÀ £ÀUÀzÀÄ ºÀjªÀÅ

Repayment of share application money pending allotment µÉÃgÀÄ ºÀAaPÉAiÀiÁUÀzÀ µÉÃgÀÄ ºÀt »A¢gÀÄV¹gÀÄªÀÅzÀÄ (17,500) -

Calls in arrears received ¨ÁQ µÉÃgÀÄ ºÀt ¥ÀqÉ¢gÀÄªÀÅzÀÄ 39,656 4,00,621

Increase / (decrease) in short term borrowingsC¯ÁàªÀ¢ü ¸Á®UÀ¼À (ºÉZÀÑ¼À) / PÀrvÀ (100,00,000) 100,00,000

Grant for capital project §AqÀªÁ¼À AiÉÆÃd£ÉUÀ½UÁV C£ÀÄzÁ£ÀUÀ¼ÀÄ 34,46,344 424,36,038

Interest paid ¥ÁªÀw¹gÀÄªÀ §rØ (60,088) (3,60,971)

Dividends Paid (Including Dividend Tax)¯Á¨sÁA±ÀzÀ ¥ÁªÀw (r«qÉAqï vÉjUÉ M¼ÀUÉÆAqÀÄ) (43,16,520) (58,27,539)

Net Cash from financing activityºÀtPÁ¹£À ZÀlÄªÀnPÉUÀ½AzÀ ¤ªÀé¼À £ÀUÀzÀÄ (109,08,108) 466,48,149

Net increase / (decrease) in cash and cash equivalents£ÀUÀzÀÄ / £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀ ¤ªÀé¼À ºÉZÀÑ¼À / (PÀrvÀ) (2300,37,699) 2384,66,808

Cash and cash equivalents at the beginning of the yearªÀµÀðzÀ ¥ÁægÀA¨sÀzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 3230,02,914 845,36,106

Cash and cash equivalents at the end of the yearªÀµÀðzÀ CAvÀåzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 929,65,215 3230,02,914

Cash on hand and bank balances £ÀUÀzÀÄ ²®ÄÌ ªÀÄvÀÄÛ ¨ÁåAPÀÄUÀ¼À ²®ÄÌ 1771,45,215 4010,02,914

Less: Deposit accounts exceeding original maturity of 12 monthsPÀ¼É¢zÀÄÝ: 12 wAUÀ¼ÀÄUÀ¼À ªÀÄÆ® CªÀ¢ü ªÀÄÄV¢gÀÄªÀ oÉÃªÀtÂ ¯ÉPÀÌUÀ¼ÀÄ 841,80,000 780,00,000

Cash and cash equivalents at the beginning of the yearªÀµÀðzÀ ¥ÁægÀA¨sÀzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 929,65,215 3230,02,914

Cash and Cash equivalents as restated

¥ÀÄ£ÀB «ªÀj¹gÀÄªÀ £ÀUÀzÀÄ ²®ÄÌ ªÀÄvÀÄÛ ¨ÁåAPÀÄUÀ¼À ²®ÄÌ

For B K Ramadhyani & Co LLP,

Chartered Accountants

Firm Number: 0028785/S200021

Sd/-

(C.R. Deepak)

Partner

Place: Bangalore


Managing Director

(K. Gopalakrishna)

General Manager (FA&MIS)

Director

(G.L. Kurtakoti)

Company Secretary

Sd/- Sd/-

Cash and Cash equivalents consist of Cash on hand and balances with banks. Cash and Cash equivalents included in the statements of cash flow comprise

the folloint amount in the Balance sheet;£ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄªÁVgÀÄªÀÅzÀÄ CAzÀgÉ £ÀUÀzÀÄ ²®ÄÌ ºÁUÀÆ ¨ÁåAPÀÄUÀ¼À°ègÀÄªÀ ²®ÄÌ. £ÀUÀzÀÄ ZÀ¯ÁªÀuÉAiÀÄ°ègÀÄªÀ £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄªÁVgÀÄªÀÅzÀÄ ¸ÀAvÀÄ®£À¥ÀnÖAiÀÄ°è F PÉ¼ÀPÀAqÀAwgÀÄvÀÛªÉ;

(Dr. Shivamurthappa) (I.S. Patil)

In Accordance with our Report attached For and on behalf of the Board of Directors of Karnataka State Seeds Corporation Limited

Sd/- Sd/-

KARNATAKA STATE SEEDS CORPORATION LIMITED "Beej Bhavan", Bellary Road, Hebbal, Bengaluru - 560 024.

NOTES TO FINANCIAL STATEMENTS 1 BACKGROUND:

Karnataka State Seeds Corporation Limited ("the Company") is a Government Company registered under Indian Companies Act, 1956, with the main object of providing the most vital input ‘SEEDS’ required by and for the benefit of the farmers. The Company is aiming to emerge as a leader in the State of Karnataka in the line of activity chosen by it, and is in pursuit of excellence, on a continuing and ongoing basis, for improvement in quality of seeds and in providing effective distribution service to farmers with an eye on the right product, right time, and the right place of supply.

2 SIGNIFICANT ACCOUNTING POLICIES: 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements are prepared under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act") . All income and expenditure, having a material bearing on financial statements are recognized on accrual basis.

2.2 USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect certain reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Accordingly, future results could differ due to changes in these estimates and the difference between the actual result and the estimate are recognized in the period in which the results are known / materialize.

2.3 INVENTORIES: I. Stocks of seeds, packing materials and stores (chemicals) are

valued at cost on First-in-First out Method ("FIFO") or Net Realizable Value ("NRV") whichever is less.

II. Infested Stock/Germination failed stock of seeds is valued at NRV. III. The quantity of chemicals, identified as chemicals validity in

respect of which has expired, is treated as used and the relative cost is recognized as expense in the Statement of Profit and Loss.

2.4 CASHFLOW STATEMENT: Cash flows are reported using the indirect method, whereby profit or loss before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and for 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.

2.5 DEPRECIATION: I. Depreciation on fixed assets are charged on the straight line

method based on the useful life of the asset and manner specified in Schedule II to the Act, except for the following assets:

Sl. No.

Asset Category Useful life

a) Screens in plant & machinery 3 years

b) Sprinklers in plant & machinery

3 years

c) Pallets in plant & machinery 3 years

II. Depreciation on assets bought / sold during the year is charged at

the applicable rates on a prorata basis from the date it is put to use or date it is sold.

III. Assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation.

2.6 REVENUE RECOGNITION: I. Revenue in respect of sales are recognised, net of returns and

trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Revenue does not include sales tax and value added tax.

II. Interest income is recognized on time proportion basis. III. Reimbursement from government for various schemes like seed

village schemes, seed bank scheme, seed risk fund are accounted on receipt basis.

2.7 FIXED ASSETS:

I. Tangible Assets: a. Fixed Assets are capitalized on the date the same are being put to

use b. Fixed Assets are valued at cost inclusive of freight, taxes and

incidental expenses relating to acquisition, installation, erection, commissioning and putting to use.

c. Cost incurred on assets under construction and not ready for use as at balance sheet date are disclosed under capital work in progress.

II. Intangible Assets: Intangible assets are accounted at cost of acquisition less amortisation.

2.8 RESEARCH AND DEVELOPMENT EXPENSES:

Expenditure pertaining to research is recognised as expense and charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product’s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2.9 FOREIGN CURRENCY TRANSACTIONS: I. Foreign currency transactions are translated into rupees at the

exchange rate prevailing on the date of the transaction.

II. Monetary foreign currency assets and liabilities outstanding as at the year-end are restated at the exchange rates prevailing as at the close of the financial year. All exchange differences are accounted for in the statement of profit and loss.

2.10 GOVERNMENT GRANTS:

I. Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received.

II. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire depreciable fixed assets are treated as Deferred Income (Deferred Grant Account). The deferred grant is recognised as income over the useful life of a depreciable asset.

III. Government grants in the nature of promoters' contribution like

investment subsidy, where no repayment is ordinarily expected in respect thereof, are treated as capital reserve. Government grants in the form of non-monetary assets, given at a concessional rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is given free of cost, the grant is recorded at a nominal value.

IV. Other grants and subsidies which are of revenue nature, are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.

2.11 EMPLOYEE BENEFITS: I. Short term Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, leave travel allowance etc. are recognized in the period in which the employee renders the related service.

II. Post Employment Benefits: a. Defined contribution Plans:

The Company has contributed to provident fund and superannuation fund which are defined contribution plans. The contributions paid/ payable under the scheme is recognized during the year in which employee renders the related service.

b. Defined Benefit Plans: Employees’ gratuity and leave encashment are defined benefit plans. The Company has arrangement with Life Insurance Corporation of India ("LIC") and United India Insurance Contribution ("UIIC"), to administer Gratuity Scheme, Earned Leave Encashment Scheme, and personal accident scheme. The Liability is determined by LIC / UIIC based on actuarial valuation and the premium as determined by LIC / UIIC is recognised as employee benefit expense towards Defined Benefit Plans.

2.12 BORROWING COSTS: Interest and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized up to the date such assets are ready for use / intended to use. Other interest and borrowing costs are charged to the Statement of Profit & Loss.

2.13 ACCOUNTING FOR LEASES: Assets subject to operating lease are included in Fixed Assets. Lease income is recognized in Profit and Loss account on a straight line basis over lease term. Costs including depreciation are recognized as an expense in the profit and loss account. Initial direct costs such as legal costs, brokerage costs etc are recognized immediately in the profit and loss account as and when incurred.

2.14 TAXES ON INCOME:

Provision for current tax for the year is after taking cognizance of excess / short provision in prior years. Deferred tax assets/liability is recognized, subject to consideration of prudence, on timing differences.

2.15 IMPAIRMENT OF ASSETS: An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss, in the year in which an asset is identified as impaired.

2.16 PROVISIONS & CONTINGENT LIABILITIES: A provision is recognized when the Company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available upto the date on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.

Particulars

Figures as at end of current reporting period

Figures as at end of previous reporting period

31st March 2015 31st March 2014

Number Rs. Number Rs.

3 Share Capital:

Authorized:

Equity shares of Rs.100/- each

5,00,000

5,00,00,000 5,00,000

5,00,00,000

5,00,00,000

5,00,00,000

Issued:


At the beginning of the year

4,50,000

4,50,00,000 4,50,000

4,50,00,000

At the close of the year

4,50,000

4,50,00,000 4,50,000

4,50,00,000

Subscribed fully paid up:



3,59,710

3,59,71,000 3,59,710

3,59,71,000

Transferred from partly paid shares

570 57,000 - -


3,60,280

3,60,28,000 3,59,710

3,59,71,000

Subscribed but not fully paid up:



3,120 3,12,000 3,120

3,12,000

Transferred to fully paid up shares

570 57,000 - -


2,550 2,55,000 3,120

3,12,000

Less: Calls in arrears

By others

1,58,154

1,97,810

3,62,830

3,61,24,846 3,62,830

3,60,85,190

Total

3,61,24,846

3,60,85,190

Foot Notes:

I. Equity Shares:

a) The Company has only one class of equity shares having a par value of Rs 100/- each.

Each holder of equity shares is entitled to one vote per share. In the event of

liquidation of the Company, the holders of the equity shares will be entitled to receive

the remaining assets of the Company, after distribution of all preferential amounts.

The distribution will be in proportion to the equity shares held by the shareholder.

b) Particulars of equity share

holders holding more than 5%

of the total number of equity

share capital:

Percentage No of

shares

Percentage No of

shares

Government of Karnataka 39.44% 1,43,100 39.44% 1,43,100

National Seeds Corporation

Limited

17.15% 62,230 17.15% 62,230

c) Shares reserved under contracts (MOA)

Particulars As at March 31, 2015

No . of shares

As at March 31, 2014

No . of shares

Government of Karnataka

14,400

14,400

National Seed Corporation Limited

72,770

72,770

(Wholly owned by Government of India)

d) Fully paid up equity shares include 8,100 equity shares allotted during the year

2009 - 2010 to Government of Karnataka without payment being received in

cash.

Particulars Figures as at end of current reporting

period

Figures as at end of previous

reporting period


Rs. Rs.

4 Reserves & Surplus: i) Capital Reserve:

As at the beginning of the year 5,65,99,481

5,65,99,481

As at the end of the year 5,65,99,481

5,65,99,481

ii) General Reserve:

As at the beginning of the year 27,22,05,177 27,22,05,177

Less:

Incremental depreciation in terms of Schedule II to the Act, of assets where remaining useful life is Nil as on April 1, 2014 4,97,35,603 -

Add:

Withdrawn to the extent of depreciation 3,75,99,074


27,22,05,177

vi) Surplus i.e. balance in Statement of Profit & Loss

As at the beginning of the year - -

Add:

Transferred from Statement of Profit & Loss 1,51,27,308 1,62,40,205

1,51,27,308

1,62,40,205

Less:

Transferred to general reserve -

1,19,23,685

Proposed dividend on equity shares 36,02,900

35,97,100

Provision for dividend distribution tax 7,33,550

7,19,420


-

Total 32,74,58,987 32,88,04,658

Particulars

Figures as at end of current reporting

period

Figures as at end of previous reporting

period


Rs. Rs.

5 Government Grants

Deferred Government Grants:

As at the beginning of the year

57,88,23,008 54,83,57,095

Received during the year

34,46,344 4,19,70,125

Withdrawn to the extent of depreciation

6,49,23,432 1,15,04,212

As at the end of the year

51,73,45,920 57,88,23,008

Particulars


period


period


Rs. Rs.

6 Long term Borrowings

Un secured Loans:

Term Loans

- from Government of Karnataka ("GOK")

83,000

15,83,000

- from Department of Horticulture ("DOH")

3,00,000

3,00,000

3,83,000

18,83,000

Less: Current Maturities

3,83,000

18,83,000

-

-

Total long term borrowings

-

-

Additional Information:

a. Terms of repayment of term loans and others:

(i) The Company has defaulted in repaying the loan to GOK from 1993.

However, the Company has submitted the proposal and requested to

convert the principal to equity and waive the accrued interest. However,

during the year the Company has obtained the approval from GOK to

convert Rs.1,500,000/- into equity, which has been shown as share

application money pending allotment as at the end of the year.

(ii) The Company has defaulted in repaying the loan to DOH from 1980.

However, company has requested the Department of Horticulture to setoff

the loan for the losses incurred by the company in Potato seed transactions

during 1979 -80 and 1980-81.

b. Rate of Interest:

(i) The Company has made provision for interest on loan from GOK at the rate of

10.25%

(ii) The Company has made provision for interest on loan from DOH at the rate of

6%

c. The Company has defaulted in making the payment of interest to Government of

Karnataka Rs.1,12,38,430/- (As at March 31, 2014 Rs.1,11,43,149/-) and to

Department of Horticulture Rs.647,260/- (As at March 31, 2014 Rs.6,29,260/-).

Particulars Figures as at end of current

reporting period


reporting period

31st March 2015 31st March 2014 Rs. Rs.

7 Deferred tax liability/(asset) (I) Deferred tax liability:

- on account of depreciation

37,83,732

2,07,51,831

37,83,732

2,07,51,831

(II) Deferred tax asset:

- on account of Provisions

1,73,43,556

1,59,14,706 - on account of timing difference

on recognition of expenses

15,81,077

9,05,160 - on account of disallowance

u/s 40(ia)

26,849

78,743

1,89,51,482

1,68,98,609

Net deferred tax liability/(asset)

(1,51,67,750)

38,53,222

Particulars

Figures as at end of current

reporting period 31st March 2015

Rs.



Rs. 8 Long term Provisions:

a) Research and Development activities

2,94,16,615

2,97,90,300

b) Compensation fund/ warranty

2,30,39,473

1,92,61,036

5,24,56,088 4,90,51,336

Foot Note:

a) The Company has created Provision for Research & Development

activities in order to carry out R & D activities and acquire new variety of

genes. The Provision has been created in year 2011 - 12.

b) The Company is creating 0.25% of turnover of seeds as compensation

fund/ warranty in order to meet the requirement of outflow of funds for

possible claims arising for failure of seeds.


reporting period


period 31st March 2015 31st March 2014

Rs. Rs.

9 Short term borrowings:

Secured loans:

- Loans repayable on demand -

1,00,00,000

-

1,00,00,000

Additional information:

1) Details of security for secured loans:

Secured against stock and book debts of the Company

2) Loan payable on demand was guaranteed by the Government of Karnataka

3) The above loan carries an interest rate of 9.70% p.a.


period


period

31st March 2015 31st March 2014 Rs. Rs.

10 Trade Payables

i) Others

10,04,01,954

8,84,66,605

10,04,01,954

8,84,66,605

Foot Note:

1. The Company has initiated the process of obtaining confirmation from

suppliers regarding their registration under the Micro, Small and Medium

Enterprises Development Act, 2006. The suppliers are not registered wherever

confirmations are received and in other cases, the Company is not aware of

their registration status. Hence, information relating to outstanding balances

or interest due is not disclosed as it is not determinable.

2. During the financial year 2010 - 11, the Company had procured Blackgram TAU

- 1 of 364.60 quintals and Cowpea C - 152 of 267.95 quintals of certified seeds

of Rs.39,76,821/- from M/s. Varada Seeds, Haveri. Since there were filed

complaints from the farmers of Gulbarga & Bidar, at the instance of

Department of Agriculture, the Company has paid Rs.15,13,500 as

compensation to the farmers through Joint Director of Agriculture, Gulbarga &

Bidar. The Company has lodged a police compliant against M/s. Varada Seeds

at Sanjaynagar Police Station at Bangalore and the same has been transferred

to Haveri police station. Further, during the year based on the Order of the

Senior Civil Judge, Haveri who has directed the parties to proceed under the

Arbitration and Conciliation Act, 1996 and accordingly the Company has issued

legal notice to the Party. The accounts of the said party is under reconciliation

and finalisation.


reporting period


reporting period


Rs. Rs.

11 Other current liabilities:

a) Interest accrued and due

1,18,85,690

1,17,72,409

b)

Unpaid dividends

32,55,671 24,72,006

c)

Share application money pending allotment

11,33,632

11,51,132

d)

Current Maturities of Long Term Liabilities

3,83,000

18,83,000

e)

Advance from customers

1,74,36,890

8,79,944

f)

Other Liabilities

15,82,25,197

6,17,24,107

g)

Government Grants

- Grant under National Seed Reserve 1,05,00,000 -

- Grants for Infrastructure development

26,18,94,120 18,86,94,120

- Other Grants

10,63,03,561

14,70,08,697

- Seed Bank Scheme

49,88,900

49,88,900

- NFSM subsidy

2,97,72,970

2,97,03,371

- Other subsidy

2,50,07,944

3,73,84,306

- Other Government funds

1,00,78,654

1,00,78,654 h)

Deposits from dealers and customers

2,94,61,469

2,40,53,831

i)

Statutory liabilities

52,43,894

18,65,845

67,55,71,592

52,36,60,322

Foot note:

I. Unpaid and unclaimed dividends include, dividends payable to grower

shareholders for Financial Year 2007 - 2008 to Financial Year 2013 - 2014. The

Company does not maintain separate bank accounts for unpaid dividend

accounts at centres amounting to Rs.10,35,015/- (as at March 31, 2014

Rs.7,73,420/-) as stipulated in section 124 (1) of the Companies Act, 2013.

However, the separate unpaid bank account maintained at head office.

Further, the said amount is under reconciliation to ascertain share holder wise

and year wise balance. The Company is also in the process of identifying the

specific parties to whom the dividend is payable.

II. Other current liabilities Include:

a) An amount of Rs.18,59,687/-payable to Department of Agriculture

outstanding for more than 5 years.

b) An amount of Rs.1,28,07,061/- being centre account carried forward from

previous year which is under reconciliation. Further, un reconciled

difference of head office account amounting to Rs.1,48,90,848/- has been

written back to statement of profit and loss.

c) An amount of Rs.1,34,60,698/- towards discount coupon for the financial

year 2010 - 11 to financial 2014 - 15. During the year the Company has

written back an amount of Rs.82,23,519/- to statement of profit & loss

pertaining to financial year earlier to 2009 - 10.

III. Other Government Funds include, funds received from Government of Karnataka under old schemes consists of following:

a)

GOK (Cotton Payable)

54,28,507

54,28,507

b) G O K (Share Holders)

22,45,582

22,45,582

c)

G O K ( VLC - I & II )

24,04,565

24,04,565

IV. Grants under infrastructure development schemes

Particulars

Opening balance

Grants received

during the year

Grants utilized

during the year

Closing balance

a. Grants for reduction of ADM and PER

21,91,000

-

-

21,91,000

(50,00,000)

-

(28,09,000)

(21,91,000)

b. Grant under Rashtriya Krishi Vikasa Yojana (RKVY) for construction of godowns

17,25,00,001

8,00,00,000

68,00,000

24,57,00,001

(3,28,62,636)

(17,25,00,000)

(3,28,62,635)

(17,25,00,001)

c. Grant for establishment of godowns under Seed Bank Scheme

1,13,95,595

-

-

1,13,95,595

(21,31,903)

(92,63,692)

-

(1,13,95,595)

d. Grant for construction of Seed Godown for Belgavi centre under ISOPAM

26,07,524

-

-

26,07,524

(50,00,000)

-

(23,92,476)

(26,07,524)


reporting period


reporting period


Rs. Rs.

12 Short term provisions:

a) Employee benefits

30,20,565

27,98,449

b) Proposed dividend (including dividend distribution tax)

43,36,450

43,16,520

73,57,015

71,14,969

13. Fixed Assets:

Particulars GROSS BLOCK (AT COST) DEPRECIATION NET BLOCK As at April 1,

2014 Additions for

the year Deduction

s/ adjustments during the year


As at April 1, 2014

For the period

To be adjusted to

reserves

Deductions

/ adjustme

nts




Tangible Assets – Own Assets

Land (refer foot note 1 to 6

below)

2,67,98,160

2,67,98,160

-

2,67,98,160

2,67,98,160

Buildings

55,62,73,753

4,23,483

55,66,97,236

4,91,90,198

2,82,17,092

4,31,86,398

12,05,93,688

43,61,03,548

50,70,83,555

Plant & Machinery

12,98,27,284

34,18,200

13,32,45,484

4,70,65,872

97,00,929

34,66,281

6,02,33,082

7,30,12,402

8,27,61,412

Electrical installation

3,03,19,114

3,03,19,114

83,34,928

39,69,267

77,740

1,23,81,935

1,79,37,179

2,19,84,186

Office equipment

1,07,39,665

1,32,190

1,08,71,855

66,32,235

12,50,972

18,67,537

97,50,744

11,21,111

41,07,430

Computers

98,00,776

4,81,820

1,02,82,596

86,38,928

3,51,308

7,87,363

97,77,599

5,04,997

11,61,848

Furniture & Fixtures

76,02,840

14,17,642

90,20,482

55,15,391

3,88,581

46,764

59,50,736

30,69,746

20,87,449

Motor Vehicles

1,52,36,832

1,52,36,832

91,81,244

27,27,655

1,19,08,899

33,27,933

60,55,588

Assets taken on finance lease

Land (refer foot note 7 below)

67,36,318

67,36,318

-

-

67,36,318

67,36,318

Buildings

1,69,33,950

1,69,33,950

5,48,502

6,95,087

3,03,505

15,47,094

1,53,86,856

1,63,85,448

81,02,68,692

58,73,335

-

81,61,42,027

13,51,07,298

4,73,00,891

4,97,35,588

-

23,21,43,777

58,39,98,250

67,51,61,394

Intangible assets

-

Computer Software

9,67,728

57,330

10,25,058

8,45,070

1,38,402

15

9,83,487

41,571

1,22,658

9,67,728

57,330

-

10,25,058

8,45,070

1,38,402

15

-

9,83,487

41,571

1,22,658

TOTAL

81,12,36,420

59,30,665

-

81,71,67,085

13,59,52,368

4,74,39,293

4,97,35,603

-

23,31,27,264

58,40,39,821

67,52,84,052

(76,59,97,388)

(4,62,28,151)

(9,89,120)

(81,12,36,419)

(11,50,64,565)

(2,15,12,822) -

(6,25,019)

(13,59,52,368)


1) Freehold land includes Rs.2,00,00,000/- in respect of land acquired from the

University of Agricultural Sciences in the year 2011 - 12, has been recognized as asset

based on the possession, even though the transfer of title deeds and registration is

pending as at the end of the year.

2) Land, Building and certain plant & machinery at Davanagere, Dharwar, Sindanur,

Gulbarga and Bagalkot have been transferred by Department of Agriculture,

Government of Karnataka have been capitalised in the respective asset accounts.

The Company has possession of these assets also, pending registration amounting to

Rs.18,59,687/- (as at March 31, 2014 Rs.18,59,687/-). The Company has charged

depreciation on the said assets.

3) Land at Raichur transferred by University of Agricultural Sciences, and lands at Bhalki

transferred by Department of Agriculture, have been in possession of the Company

for which title deeds are not held in Company's name. These lands have not been

recognised as assets in the books of the Company pending a determination and

payment of consideration.

4) Land and Building at Kolar transferred by Karnataka Agro Industries Corporation

Limited ("KAIC") at an agreed value of Rs.7,00,000 is in the possession of the

Company, pending registration and the Company has not capitalised in the books.

5) Government of Karnataka in its order no.KRU/THOE/136/KRVUE 2006 Dated 19th

June, 2006 has transferred Agricultural Development Centre, Dharwad to the

Company on a 25 Year Operating Lease basis for the establishment of Varietal

Research & Development Centre at Dharwad. The Centre has commenced its R&D

Activities.

6) The Company has acquired 2 acres of land at Chikmagalur from Department of

Agriculture on lease for a period of 25 years, at a lease rent of Rs.40,000/- per year.

The Company is in the possession of land since 25.03.2011. However, this land has

not been capitalised in the books of account.

7) The Company has taken Land on lease from KIADB. On expiry of lease period,

payment of balance consideration if any, and execution of sale deed, the relevant

title will pass to the Company.

8) During the year the Company has changed the useful life of the asset as per Schedule

II to the Companies Act, 2013.

9) Fixed assets have been recasted during the year

Particulars


period


period


Rs. Rs.

14 Capital work in progress:

i) Building under Construction

23,12,35,743

5,27,85,908

23,12,35,743

5,27,85,908

Particulars


period


period


Rs. Rs.

15 Long term loans and advances:

(Unsecured, considered good)

i) Capital advances

19,10,000

-

ii)

Advance payment of Tax (net of Provisions)

1,16,97,053

1,16,67,348

iii) Security Deposit

13,55,413

10,21,263

iv) Court deposit

7,37,779

7,37,779

1,57,00,245

1,34,26,390


period


period


Rs. Rs.

16 Inventories:

i) Seeds

18,17,20,888

22,48,29,655

ii) Chemicals

49,65,527

44,78,095

iii) Packing Materials & Tarpaulins

5,24,97,478

2,11,89,745

23,91,83,893

25,04,97,495

Note:

1. The Company has not valued 86846 quintals (as at March 31, 2014: 65,586 quintals)

of processed stock of seeds held in custody at different processing units, since

purchases are accounted by the Company only on completion of certification process.

2. Under Seed Bank Scheme, the Company has received Rs.12,05,000/- during financial

year 1999 - 2000 and Rs.37,83,900 during financial year 2000 - 2001 from Government

of India as Seed Revolving Fund for maintenance of seeds under Seed Bank Scheme.

These amounts has been reported under Government Grants under other current

liabilities. Closing stock includes 16800 quintals (as at March 31, 2014: 15,850

quintals) of certified seeds and 200 quintals (as at March 31, 2014: 200 quintals) of

foundation seeds held under Seed Bank scheme.

Particulars


period


period


Rs. Rs.

17 Trade receivables:

i) Trade receivables exceeding six months

2,68,33,244 1,35,25,872

ii) others

6,01,06,231 3,18,42,424

8,69,39,475 4,53,68,296

Less: Provision for doubtful debts

4,21,749 4,21,749

8,65,17,726 4,49,46,547


1) Breakup of above:

i) Secured, considered good

- -

ii) Unsecured, considered good

8,65,17,726 4,49,46,547

iii) Doubtful

4,21,749 4,21,749

Total

8,69,39,475 4,53,68,296

Less:

Provision for doubtful debts

4,21,749 4,21,749

8,65,17,726 4,49,46,547

Particulars


period


period


Rs. Rs.

18 Cash and bank balances:

a) Cash and cash equivalents:

i) Balances with banks

- in deposit accounts not exceeding 3 months

-

65,00,000

- in other accounts

9,02,52,598

31,43,35,769

- in unpaid dividend accounts

23,48,651

18,27,676

ii) Cash on hand

3,53,628

3,24,368

iii) Stamps on hand

10,338

15,101

9,29,65,215

32,30,02,914

b) Other bank balances:

Deposit accounts exceeding original maturity of 12 months

8,41,80,000

7,80,00,000

17,71,45,215

40,10,02,914

Particulars


period


reporting period


Rs. Rs.

19

Short term loans and advances:

(Unsecured & considered good)

i) Security deposit 2,60,623

2,30,000

ii) Advance to suppliers 22,75,19,704

16,18,59,343

iii) Employee advances 1,15,18,358

1,11,82,958

iv) Subsidy receivable 1,66,38,045

1,31,38,754

25,59,36,730

18,64,11,055

Foot Note: a) The Company makes advance payments to seed growers against supply of seeds. On

certification of the seeds by the Karnataka State Seed Certification Agency (KSSCA), the advance is adjusted towards the cost of procurement of seeds.

b) Employee advances include stock shortage / short remittances of Rs.1,08,90,397/- (As at March 31, 2014 Rs. 1,07,78,756/-) which are treated as good of recovery from ex- employees and in certain cases the Company has initiated the legal action.

c) During the Financial Year 2010-11, stock shortage, and short remittances amounting to Rs. 105,24,314/- were identified in Chintamani Centre. Of this amount, a sum of Rs. 9,30,000/- has been recovered, and the amount yet to be resolved is Rs. 95,94,314/-. Administrative actions have been initiated to keep the concerned officials under suspension, and filing of a criminal case against a Junior Assistant who has confessed to the defalcation of funds at Chintamani. The Company has filed a civil suit for attachment of Sites and Agricultural land offered as securities by the concerned persons. A separate case has also been filed for dishonouring of cheques under the Negotiable Instruments Act, 1881.

d) Subsidy receivable includes a sum of Rs.13,78,469/- (As at March 31, 2015: Rs.14,78,769/-) being subsidy extended to Seed Growers during the financial year 2009-10 at Bijapur Centre. Administrative action has been initiated to resolve certain connected issues, such as stock shortage, deviation from standard procedures, delays in filing claims, etc., noticed at Bijapur centre. However, the Company has considered this amount as good of recovery.

Particulars


period


period


Rs. Rs.

20 Other Current Assets

(i)

Interest accrued & not due on deposits

31,26,431

7,64,329

(ii) Prepaid expenses

1,44,252

1,12,082

(iii) Other Accrued income

10,88,93,659

6,28,622

(iv) Service tax input credit

11,25,021

-

11,32,89,363

15,05,033

Particulars Figures as at end

of current

reporting period

Figures as at end

of previous

reporting period


Rs. Rs.

21 Contingent liabilities and Commitments:

(to the extent not provided for)

a) Contingent Liabilities:

i) Bank Guarantees

1,43,00,000 50,00,000

ii) Claims against the Company not

acknowledged as debts

representing amounts claimed

by farmers towards failure of

seeds.

1,78,46,442

39,76,511

iii) Demand of PF authorities for the

financial year 2008-09 has not

been acknowledged as debt. The

Company had remitted the PF

contribution to the concerned

authorities regularly. The details

of the remittance, together with

a reconciliation thereof, have

furnished to the PF Authorities.

Since the Company is of the view

that no amount is remittable to

PF authorities, a provision has

not been made.

14,22,858

14,22,858

iv) Income tax under appeal 69,50,142

-

The management believes, based on internal assessment and / or legal

advice, that the probability of an ultimate adverse decision and outflow of

resources of the Company is not probable and accordingly, no provision for

the same is considered necessary.

b) Commitments

i) Estimated amount of contracts

remaining to be executed on

capital account and not provided

for (net of advances)

10,25,32,000

6,14,55,564

Particulars Figures as at end of current reporting period



Rs. Rs. Rs. Rs.

22 Revenue from operations:

i) Sale of products

Sale of seeds

1,48,27,96,270

1,23,40,68,931

Sale of chemicals

-

37,37,05,108

Sale of Packing materials & Tarpaulins

4,41,93,461

57,09,233

1,52,69,89,731

1,61,34,83,272

ii) Other Operating Income

59,84,492

2,48,02,407

-

1,53,29,74,223

1,63,82,85,679




Rs. Rs. Rs. Rs.

23 Other Income:

i) Interest income - bank deposits

1,22,91,881

1,14,32,319

- Others

91,233

86,264

1,23,83,114

1,15,18,583

ii) Rent received

4,09,040

4,33,475

iii) Amortisation of deferred grant

2,73,24,358

1,19,70,125

iv) RSK Manpower charges

10,88,39,659

-

v) Other non operating income

2,68,02,553

1,27,81,514

17,57,58,724

3,67,03,697




Rs. Rs.

24 Purchases of Stock in Trade:

i) Seeds

1,20,30,59,963

1,10,99,00,191

ii) Chemicals

83,58,886

33,72,77,558

iii)

Packing Materials and Tarpaulins 6,94,16,339

4,24,40,785

1,28,08,35,188

1,48,96,18,534




Rs. Rs. Rs. Rs.

25 Changes in inventories of stock in trade:

Stocks at the end of the year

i) Seeds 18,17,20,888

22,48,29,655

ii) Chemicals 49,65,527

44,78,095

iii)

Packing Materials and Tarpaulins 5,24,97,478

2,11,89,745

23,91,83,893

25,04,97,495

Less: Stocks at the beginning of the year

i) Seeds

22,48,29,655

11,07,38,126

ii) Chemicals

44,78,095

32,67,836

iii) Packing Materials and Tarpaulins

2,11,89,745

2,69,06,918

25,04,97,495

14,09,12,880

1,13,13,602

(10,95,84,615)




Rs. Rs.

26 Employee Benefit Expenses:

i) Salaries and wages

12,02,58,478

11,38,33,957

ii)

Contribution to provident & other funds 1,43,56,776

87,05,272

iii) Gratuity & leave encashment

77,16,552

99,31,554

iv) Staff welfare expenses

8,99,438

8,68,847

14,32,31,244

13,33,39,630




Rs. Rs.

27 Finance Costs:

i)

Interest on Cash Credit Account

33,887

1,80,713

ii) Interest on Other borrowings

1,13,281

1,80,258

iii) Guarantee Commission

-

25,000

iv) Interest on delayed payment of tax 26,201

-

1,73,369

3,85,971




Rs. Rs.

28

Depreciation and amortization:

i) Depreciation

4,73,00,891

2,14,78,472

ii)

Amortization of intangible assets 1,38,402

34,350

4,74,39,293

2,15,12,822




Rs. Rs. Rs. Rs.

29 Other expenses:

i) Advertisement

9,48,095

12,23,495

ii) Rent

25,86,713

32,47,373

iii) Electricity & Water

41,69,960

42,50,291

iv) Repairs & Maintenance

67,94,984

1,06,70,112

v) Seed Processing & Testing Charges

2,28,22,126

1,67,64,266

vi) Insurance

8,42,205

7,82,597

vii) Rates and taxes

5,59,086

6,46,588

viii) Payment to auditors

- as auditor 1,79,550

1,68,540

- for taxation matters 91,136

74,158

2,70,686

2,42,698

ix) Selling Expenses

4,30,68,778

3,70,66,553

x) Travelling & Entertainment expenses

50,39,911

33,28,019

xi) Board & AGM Expenses

26,41,082

24,44,660

xii) Communication expenses

19,54,860

20,50,359

xiii) Printing & stationery

18,33,469

21,73,103

xiv) Bad trade receivables written off

-

57,16,945

xv)

Legal and professional charges

19,94,339

39,20,634

xvi) Discount Coupons

38,74,000

38,59,500

xvii) Loss on sale of fixed asset (net)

-

2,12,101

xviii)

Consultant and Contract Employees

86,48,426

88,94,765

xix) RSK Manpower Charges

10,46,53,518 -

xx) Provision for warranty

37,78,437

31,50,697

xxi) Miscellaneous expenses

27,22,280

21,07,788

21,92,02,955

11,27,52,544


period


period


Rs. Rs. Rs. Rs.

30 Earnings per Share:

(a) Basic

Profit for the year after tax expense

1,51,27,308

1,62,40,205

Weighted average number of equity shares

3,62,830

3,62,830

Basic earnings per share

41.69

44.76

(b) Diluted

Profit for the year after tax expense

1,51,27,308

1,62,40,205

Weighted average number of equity shares considered for Basic EPS

3,62,830

3,62,830

Potential dilutive shares in numbers pertaining to Government of Karnataka

14,400

14,400

3,77,230

3,77,230

Dilutive earnings per share

40.10

43.05

31 Disclosures as per Accounting Standard 15 “Employee Benefits”:

a) Defined Contribution Plan:

Contribution to Defined Contribution, recognized as expense for the year are as under:


period


reporting period

Rs. Rs.

Employers contribution to provident and pension funds

1,43,56,776 87,05,272

b) Defined Benefit Plan: Contribution to gratuity fund and Earned Leave Enacashment (defined

benefit plans) are managed by taking a policy with Life Insurance

Corporation of India (“LIC”). Expenditure on this count has been accounted

on the basis of assessment of liability by LIC, which the Company has been

given to understand is on the projected unit credit method. Disclosures as

per AS 15 (revised) have not been furnished, pending receipt of the same

from LIC. The Company has paid an amount of Rs.30,00,000/- (previous

year – Rs.55,32,907/-) to LIC during the year. Further, the Company has also

made a provision towards leave encashment amounting to Rs.40,10,936/-

(previous year - Rs.43,98,647/-) including the amount remitted to LIC. With

respect to half pay leave, the same is accounted as and when the employee

avails the compensated absences and has not provided on accrual basis.

32 The Company is engaged in the business of procuring and selling quality seeds

and related chemicals to farmers. The products (seeds and chemicals) are

related products and there is no significant difference in the risk-return profile

of these products. Hence, company’s operations are confined to one single

business segment. The Company does not have any exports, hence the

Company has not furnished segment reporting.

33 Related Party Transactions:

a)

List of related parties:

Sl. No.

Name of the Related Party Relation Ship

a) Mr. Anandakrishna (Upto 30.08.2014) Key Managerial Person ("KMP)

Dr. Vishakanta (from 05.09.2014)

Mr. I S Patil

Mr. D L Nagaraj

b) National Seeds Corporation Limited Associate Company

(b) Transactions with the related parties:

(Amount in Rupees)

Particulars Relations

hip

Current Year Previous Year

Remuneration Paid:

Mr. Anandakrishna

KMP 5,14,427

11,72,650

Dr. Vishakanta

7,16,804

-

Purchase of seeds:

Mr. I S Patil

KMP 10,28,629

9,54,935

Mr. D L Nagaraj

1,42,450

82,000

34 Rental expenses paid towards operating leases included under the note 29 of

the financial statements for the period are Rs.25,86,713/- (Previous Year

Rs.32,47,373/-).

35 The Company has initiated steps to obtain confirmation of balances from

various trade payables, trade receivables and loans & advances. However, it

has not received the same from said parties. The effect on revenue not

ascertained.

36 OPERATING LEASES:

a. The Company has entered into operating lease with Government of Karnataka

for Varietal Research and Development Centre(VRDC) at Dharwar and with

KIADB at Shimoga. The future minimum lease rentals payable under the non

cancellable operating lease in the aggregate and each of the following periods

are as under:

Amount in Rs.





Not later than one year

41,217 41,217

Later than one year not later than 5 years

1,60,987 1,64,014

Later than 5 years

4,28,460 4,66,650

37 The Company has made provisions towards Contingencies in respect of certain

disputed claims as matter of precaution, expenditure on research and

development and leave encashment the details of the same are as under:

Particulars

Research and

development

Contingencies Leave encashment

Rs. Rs. Rs.

a) Carrying amount at the beginning of the year

2,97,90,300

1,92,61,036

25,54,087

(2,97,90,300)

(1,65,11,980)

(13,09,067)

b)

Provision made during the year

-

37,78,437

30,10,936

-

(31,50,697)

(25,54,087)

c)

Amount utilised during the year

3,73,685

-

25,54,087

-

(4,01,641)

(13,09,067)

d)

Carrying amount at the end of the year

2,94,16,615

2,30,39,473

30,10,936

(2,97,90,300)

(1,92,61,036)

(25,54,087)

38 During the year the Company has entered into an agreement with Department of

Agriculture ("DOA") for supply of manpower to various Raitha Samparka Kendra

("RSK") across the Karnataka state based on which the Company is eligible for 4%

markup on the cost incurred. Based on the said agreement the Company has

entered into an agreement with the vendor at a determined rate based on which

the Company has accounted the expenditure as well as income recoverable from

DOA. However, subsequently DOA is negotiating the rate with the said vendor

and any adjustment for the said income and expenditure will be carried in the

ensuing year.

39 During the year the Company has not executed any long term contracts. There

are no derivative contracts entered by the Company.

40 Previous year’s figures have been regrouped wherever required in conformity

with the presentation for the current year. Figures in brackets represent

previous year figures.

In Accordance with our Report attached

For and on behalf of the Board of Directors of Karnataka State Seeds Corporation Limited

For B K Ramadhyani & Co LLP, Chartered Accountants

Sd/-

Sd/- Firm number: 002878S/ S200021 (Dr. Shivamurthappa)

(I.S. Patil)

Managing Director

Director

(C R Deepak)

Partner

Sd/-

Sd/- Bangalore (K. Gopalakrishna)

(G.L. Kurtakoti)

Date: General Manager (FA & MIS)

Company Secretary

E W E Edh /dKZ[^

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