T. PROVISIONS AND CONTINGENT LIABILITIES
(i) A provision is recognized, if as a result of past event the company has present legal or constructive obligations
that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle
the obligation.
(ii) Contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in
control of the company. Contingent assets are not recognised in the financial statements.
U. FOREIGN CURRENCY TRANSACTIONS
(i) The Company's functional currency is Indian Rupees. Transactions in currency other than Indian Rupees are
recorded at the rate, as declared by the Central Board of Indirect Taxes and Customs department, ruling on
the date of transaction.
(ii) Foreign Currency monetary assets and liabilities remaining unsettled as at the balance sheet date
are translated using the exchange rates as at the balance sheet date. The gain or loss resulting from
the translation is recognized in the statement of profit & loss. Non-monetary assets and liabilities which are
carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date
of the transaction; and non-monetary assets and liabilities which are carried at fair value or other similar
valuation denominated in foreign currency are reported using the exchange rates that existed when the fair
values were determined.
(iii) Exchange differences arises on settlement/translation of Foreign Currency monetary assets and liabilities
are recognised as income/expense through the Exchange Fluctuation Account in the year they arise.
(iv) Transaction gain or losses realized upon settlement of foreign currency transaction are included in
determining the net profit for the period in which transaction is settled.
(v) Exchanges difference arises on settlement / translation of foreign currency monetary assets and liabilities
relating to acquisition of Property, Plant and Equipment till the period they are available for use for commercial
production, are capitalized to the cost of assets acquired and provided for over the useful life of the Property,
Plant and Equipment.
V. GOVERNMENT GRANTS
Capital Subsidy received from Government as contribution towards Capital Outlay for setting up the PPE is
treated as Capital Grants which is recognized as Income in the Statement of Profit & Loss over the period and in
the proportion in which depreciation is charged.
W. PURCHASES
(i) Purchases returns / rebates are adjusted from the purchases of the year in which the returns take place /
rebates allowed.
(ii) Purchases are accounted for “Net of GST Credit availed on eligible inputs”.
X. CLAIMS BY/AGAINST THE COMPANY
Claims by/ against the Company arising on any account are provided for in the accounts on receipts/acceptances.
Y. BORROWING COST
Borrowing cost are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent they are regarded as an adjustment to interest costs) incurred in connection with the
borrowing of funds. Borrowing cost directly attributable to the acquisition or construction of qualifying /eligible
assets, intended for commercial production are capitalised as part of the cost of such assets. All other borrowing
costs are recognized as an expense in the year in which they are incurred.
Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On August 12, 2024, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2025, applicable from August 12, 2024, as
below:
Ind AS 101- First Time adoption of Indian Accounting standards
Ind AS 103 - Business combinations
Ind AS 105 - Non-current assets held for sale and discontinued operations
Ind AS 107 - Financial Instruments -Disclosures
Ind AS 109- Financial Instruments
Ind AS 115 - Revenue from contracts with customers
Ind AS 117- Insurance contracts.
The company does not expect the amendments above to have any significant impact in its financial statements.
@ The charge in respect of the Term Loan from Woori Bank has been satisfied during the year.
(i) These are secured a) by the way of first pari passu charge of movable fixed assets-plant and machinery and other specific
movable fixed assets (excluding vehicle), present and future along with term lenders b) on Second pari passu charge by
way of Hypothecation on entire current assets of the company including stocks of Raw material, WIP, Finished Goods,
Stores and Spares, Book Debts and all other current assets (both present and Future) of the company c) personal
guarantee of one of the Director of the company, First pari passu charge of company's immovable fixed assets-Land and
Building situated at Dehradun (Uttrakhand) and at Devaganapalli, Krishnagiri.
(ii) Vehicle Loans are secured by way of hypothecation of Specific Vehicles of the Company.
# Working capital facilities are secured on first Pari passu charge basis (i) by way of hypothecation of stock and book debts
of the company; and (ii) collaterally secured on second pari passu charge basis; (a) by way of hypothecation of fixed
assets; (b) by mortgage of immovable properties of the company situated at Lal Tappar Industrial Area and Chak Jogiwala
(Chidderewala), Dehradun (Uttarakhand) and at Devaganapalli, Krishnagiri, Tamil Nadu (c) by personal guarantee of one of
the Director of the Company.
The expected benefits increases are based on the same assumptions as are used to measure the Company's defined benefit
plan obligations as at 31st March 2025. The Company is expected to contribute Rs. 106.13 lacs to defined benefits plan
obligation fund for the year ending 31st March 2026.
The significant accounting assumptions are the discount rate and expected salary increase. The sensitivity analysis below
have been determined based on reasonable possible changes of the respective assumptions occurring at the end of the
reporting period while other assumptions are constant.
If the discount rate increases/(decreases by 0.5%), the defined benefit plan obligations would decrease by Rs. 22.05 Lacs
(increase by Rs.23.21 Lacs) as at 31st March 2025.
If the expected salary growth increases/(decreases by 1.0%), the defined benefit plan obligations would Increase by Rs.
46.68 Lacs (Decrease by Rs.42.82 Lacs) as at 31st March 2025.
The sensitivity analysis presented about may not be representative of the actual change in the defined benefit obligations
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
35 In the opinion of the board and to the best of their knowledge, value of realisation of assets, other than property,,plant &
equipment in the ordinary course of the business, would not be less than the amount at which they are stated in the balance
sheet.
36 Balances of some of the parties are subject to reconciliation & confirmations.
37 The Board of Directors of the company has recommended a final dividend of Rs.0.50/- (Previous Year Rs.0.50) per share
aggregating to Rs. 62.25 Lacs (Previous Year Rs.62.25 Lcas) for the Finacial Year ended 31st March 2025 subject to the
approval of the shareholder in their ensuing Annual General Meeting.
38 The Previous year's figures have been regrouped and reclassified wherever necessary.
39 Financial Instruments
Financial Instruments by category:
The carrying value and fair value of financial instruments by categories as of March, 31 2025 & as of March,31 2024 were
as follows:
Fair Value hierarchy disclosures:
Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Input other than quoted price included within Level 1 that are observable for the assets or liability; either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
Financial Risk Management :
In the course of business, amongst others, the Company is exposed to several financial risks such as Credit Risk, Liquidity
Risk, Interest Rate Risk, Exchange Risk & Commodity Price Risk. These risks may be caused by the internal and external
factors resulting into impairment of the assets of the Company causing adverse influence on the achievement of Company's
strategies, operational and financial objectives, earning capacity and financial position.
The Company has formulated an appropriate policy and established a risk management framework which encompass the
following process.
- Identify the major financial risks which may cause financial losses to the company
- Assess the probability of occurrence and severity of financial losses
- Mitigate and control them by formulation of appropriate policies, strategies, structures, systems and procedures
- Monitor and review periodically the adherence, adequacy and efficacy of the financial risk management system.
The Company enterprise risk management system is monitored and reviewed at all levels of management, Internal Auditors,
Statutory Auditors, Audit Committee and the Board of Directors from time to time.
Credit Risk:
Credit Risk refers to the risks that arise on default by the counter party on its contractual obligation resulting into financial
loss to the company. The company may carry this Risk on Trade and other receivables, liquid assets and some of the non
current financial assets.
In case of Trade receivables, the company has framed appropriate policy for extending credits period & limit to each
customer based on their profile, financial position and their external rating etc. The collections of trade dues are strictly
monitored . In case of Export customers, even credit guarantee insurance is also obtained.
Company's exposure to Credit Risk is also influenced by the concentration of risk from top five customers. The details in
respect of the % of sales generated from the top customer and top five customers are given hereunder.
Interest Rate Risk :
Generally market linked financial instruments are subject to interest rate risk. The company does not have any marked
linked financial instrument both on the asset or liability side. Hence no interest rate risk.
However the interest rate in respect major portion of borrowings by the Company from the banks and others are linked with
the Benchmark / Base Prime lending rate of the respective lender and in case of foreign currency borrowings the same is
linked with LIBOR . Every fluctuation in the base rate of the bank either on the higher or lower side will result into financial
loss or gain to the company
The amount which is subject to the change in the interest rate is of Rs.16606.00 Lacs out of the total debt of Rs.27,906.80
Lacs
Based on the structure of debt as at year end, a one percentage point increase in the debt would cause an additional
expense in the net financing cost of Rs. 166.06 Lacs.
Foreign Exchange Risk :
The company is exposed to the foreign currency risk from transactions. Transactional exposures are arising from the
transactions entered into foreign currency. Management keeps a close watch of the maturity of the financial assets in
foreign currency and payment obligations of the financial liabilities.
The company imported goods for insignificant amounts on trade account. Approximately 78.87% of revenue were earned in
foreign currency due to nature of business being exports. In a way, Company is a net foreign exchange earner.
The Company did not undertake hedging to cover exchange risk and kept its foreign exchange exposure open mainly due to
its supplies to customers overseas which were on Credit and it recoursed to discounting of such supply bills with its bankers.
In this situation, the Exchange rate was crystalised on the date of discounting & did not remain open ended till the date of
realization of Export proceeds. This measure also mitigated the Exchange Rate Risk.
The carrying amount of the Group's material foreign currency dominated monetary Assets and Liabilities at the end of the
reporting period is as below
Commodity Price Risk :
Raw materials which company procures from the open market are agricultural products, production of which is directly
effected by weather conditions and pricing is linked to the prevailing demand & supply conditions of the products. Company
mitigate this risk by bulk buying during season for off season use.
The company has been operating in a global competitive environment due to its dependence mainly on Exports. The
competition has been becoming more fierce and it has been subject to major competition from other Asian Countries largely
China which has been causing pressure on the product prices & volumes resulting into drop in the selling prices and profit
margins.
In order to combat this situation, the Company formulated manifold plans and strategies to develop new customers, focus on
newer product developments to increase its product portfolio and also accelerate its efforts to develop domestic market for
its products. In addition to this, it has also been focusing on improvement in products quality and productivity of operations.
With these measures, company expects to counter the commodity price risk.
Risk Management Strategy Related to Biological Assets
Regulatory and Environmental Risks
The Company is subject to laws and regulations in the locations in which it operates. The company has established
environmental policies and procedures aimed at compliance with local environmental and other laws.
Supply and Demand Risk
The Company is exposed to risks arising from fluctuations in the price and sales volume of its product i.e. Fresh Mushroom.
Management performs regular industry trend analysis to project harvest volumes and pricing. Where possible, the company
manages this risk by aligning its harvest volumes to market supply and demand.
Climate and other Risks
The company's biological asset is exposed to the risk of damage from climatic changes, diseases and other natural forces.
The company has extensive processes in place aimed at monitoring and mitigating these risks, including growing under
controlled conditions.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company's
capital management is to maximize the shareholder value. The Company's primary objective when managing capital is
to ensure that it maintains an eff icient capital structure and healthy capital ratios and safeguard the Company's ability to
continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company
also proposes to maintain an optimal capital structure to reduce the cost of capital
Note:
# The significant Change in these ratios are due to the additional borrowings raised by the Company during the year for
stabilization of new Project at Kirishnagiri, Tamilnadu which was completely capitalised on 31.05.2023. Further, as the
capacity was not fully utilized and due to this turnover was also less than the Expected, which resulted in net losses
during the year.
## The significant Change in these ratios is due to reason, the capacity was not fully utilized in the new Project at
Kirishnagiri, Tamilnadu, due to which turnover was also less than the Expected. This has resulted in net losses during
the year.
### Change is due to increase in consumption of raw material on account of increase in sales in Current year as compared
to previous year.
####Change is due to increase in sales in Current year as compared to previous year further increase is due to the
additional borrowings raised by the Company during the year and Input tax credit on Input services transferred from
Other current asset to Property, Plant and Equipment on basis of Order passed for Safari Retreats Private Limited vs.
Chief Commissioner of CGST [TS-350-HC-2019(ORI)-NT] during the year.
(iv) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami
Transaction (Prohibition) Act, 1988 (43 of 1988) and the rules made thereunder.
(v) As per information available with the Management, the Company does not have any transaction with companies
struck off under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
(vi) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding
Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly,
lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) There was no charge or satisfaction, which is yet to be registered with concerned Registrar of Companies, beyond the
period permitted under the Companies Act,2013.
(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(ix) There's no transaction which has not been recorded in the books of accounts and disclosed or surrendered as income
during the year in the tax assessments under the Income Tax Act, 1961.
(x) The Company is in compliance with the regulation as to the number of layers of companies prescribed under clause
(87) of section 2 of the Companies Act, 2013 read with Companies (Restoration on number of Layers) Rules, 2014.
(xi) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(xii) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(xiii) No loans and advances in nature of loans have been granted to Promoter, KMP, Director and related parties during the
year.
Note: Signatories to Note 1 to 41
For and on behalf of the Board of Directors
Ashok Chaturvedi Rahul Razdan For MJMJ & Associates LLP
Chairman Whole -time Director & CEO Chartered Accountants
DIN -00023452 DIN - 09290572 Firm Registration No 027706N/C400013
Himanshu Luthra Shekhar Tiwari Megha Jain
Company Secretary Chief Financial Officer Partner
Place : Noida Membership No. 415389
Dated : 16Th May, 2025
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