Notes to Financial Statements for the year ended March 31, 2018

43. FIRST TIME ADOPTION OF IND AS-DISCLOSURES, RECONCILIATION ETC.

a) Reconciliation in terms of Ind AS 101 "First time adoption of Indian Accounting Standards"

i) Reconciliation of Equity as at March 31, 2017 and April 1, 2016

ii) Reconciliation of Total Equity as given above:

iii) Reconciliation of Statement of Profit and Loss for the year ended March 31, 201 7

iv) There is no significant reconciliation items between cash flow prepared under previous GAAP and prepared under Ind AS.

b) FIRST-TIME ADOPTION -

Mandatory Exceptions and optional Exemptions

These financial statements are covered by Ind AS 101, "First Time Adoption of Indian Accounting Standards", as they are the Company's first Ind AS financial statements for the year ended March 31, 2018.

i) Overall principle:

a) The Company has prepared the opening balance sheet as per Ind AS as at April 1, 2016 (the transition date) by recognizing all assets and liabilities

whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arising from events and transactions occuring before the date of transition to Ind-AS has been recognized directly in retained earnings at the date of transition.

However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below. ii) Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).

iii) Fair Value as deemed cost for Property, Plant and Equipment

Property, plant and equipment has been carried in accordance with previous GAAP carrying value as deemed cost at the date of transition excepting freehold land land valued at Fair value at the date of transition, which has been considered as deemed cost.

iv) Impairment of financial assets

Ind AS 109 "Financial Instruments" requires the impairment to be carried out retrospectively; however, as permitted by Ind AS 101, the Company, has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

v) Determining whether an arrangement contains a lease

The Company as on the date of transition complied with Ind AS 17 "Leases" to determine whether an arrangement contains a Lease on the basis of facts and circumstances existing at the date of transition to Ind AS.

ix) Business Combination

In terms of Ind AS 101 "First Time Adoption of Indian Accounting Standards", the Company has elected to not to apply Ind AS 103 "Business Combination" for past combinations.

c) Explanatory Notes to reconciliation between Previous GAAP and Ind AS (i) Property, Plant and Equipment

The company has used previous GAAP carrying value as deemed cost excepting fair value of certain Property, Plant and Equipment (PPE) ie. freehold land as carried out by an external valuer in its opening Ind AS financial statement as deemed cost.

i) the aggregate of those fair values is Rs. 32,145.82 lakhs.

ii) the aggregate adjustment to the carrying amount of land reported under previous GAAP is Rs.32,1 24.84 lakhs.

The fair value of PPE has been determined based on the valuation carried out by External Independent Valuer. The fair value of the properties was determined based on market value of similar assets, significantly adjusted for differences in the nature, location or condition of the specific items of PPE. The fair valuation involves higher degree of uncertainty and subjectivity."

(ii) Fair Valuation of financial assets and liabilities

Under previous GAAP, receivables and payables were measured at transaction cost less allowances for recoverability, if any.

Under Ind AS, financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less allowances for impairment, if any. The resulting changes are recognised either under finance income or expenses in the Statement of profit and loss.

On transition, the company has fair valued certain financial assets including Security deposits. This has resulted in decrease in total equity by Rs. 0.13 lakhs and Rs. nil lakhs as on March 31, 2017 and April 1, 2016 respectively.

(iii) Investment in Equity Instruments

Under previous GAAP, Non-current Investments were stated at cost less provision, if any, for diminuation in value other than temporary.

Under Ind AS, the Company has made an irrevocable decision to consider equity instruments not held for trading to be recognized at FVTOCI.

On transition, the Company has recognized a loss of Rs. 1,847.04 lakhs as on March 31, 2017 and Rs. 1,944.81 lakhs as on April 1, 2016 in OCI with the corresponding decrease in the carrying value of such investments.

(iv) Fair valuation of Current Investment

Under previous GAAP, Current investments were measured at lower of cost or market price.

Under Ind AS, these investment are measured at fair value through profit or loss and accordingly, difference between the fair value and carrying value is recognised in Statement of profit or loss.

On transition, the Company has recognised a gain of Rs. 53.43 lakhs as on March 31, 2017 and Rs. nil lakhs as on April 1, 2016 in respect of mutual funds with corresponding increase in total equity.

(v) Borrowings

Under previous GAAP, transaction costs incurred in connection with borrowings are accounted upfront and charged to Statement of profit and loss in the year in which such costs were incurred.

Under Ind AS, Finance Liabilities consisting of Long Term Borrowings are to be fair valued and designated and measured at amortised cost based on Effective Interest Rate (EIR) method. The transaction costs so incurred are required to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in Statement of profit and loss over the tenure of the borrowing as part of the interest expense by applying EIR.

On transition, the Company did not have any unamortised portion of oustanding borrowings. (vi) Taxation

Deferred tax has been recognized in respect of on accounting differences between previous GAAP and Ind AS. Moreover, carryforward of unused tax credits are to be treated as deffered tax assets which was earlier considered as Other non-current non-financial assets.

These adjustments have resulted increase in deferred tax liability and decrease in equity by Rs. 7,432.16 lakhs and Rs. 7,430.85 lakhs as on March 31, 2017 and April 1, 2016 respectively.

(vii) Remeasurement of Defined Benefit Plan

Under previous GAAP and Ind AS, the Company recognizes cost related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including re-measurement, are charged to Statement of profit and loss.

Under Ind AS, the actuarial gain and losses from part of remeasurements net defined benefit liability/asset which is recognised in OCI. Consequently, the tax effect on the same has also been recognised in OCI instead of statement of profit and loss.

Under Ind AS, the entity is permitted to transfer amounts recognized in the Other Comprehensive Income within equity. The Company has taken recourse of the said provision and has transferred all re-measurement costs recognized relating prior to the transition date from Retained earnings as on the date of transition as permitted under Ind AS.

On transition, this has resulted in reclassification of re-measurement losses on defined benefit plans of Rs. 18.72 lakhs for the year ended March 31, 2017 from Statement of profit and loss to OCI.

(viii) Fair Value measurements for biological assets other than bearer plants

Under previous GAAP, biological assets were not required to be recognised. Under Ind AS, these have been recognised at fair value less costs to sell and change in fair value has been recognised in profit or loss.

(ix) Previous GAAP figures have been reclassifed/regrouped wherever necessary to confirm with financial statements prepared under Ind AS.

44. FAIR VALUE MEASUREMENTS FOR BIOLOGICAL ASSETS OTHER THAN BEARER PLANTS

The following table gives the information about how the fair value of the biological assets were determined:

45. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases. Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plants largely through the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost of production because of labour intensive nature of the business operations.

Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the management to mitigate the risks.

46. Figures have been given in Rupee lakhs and have been rounded off to two decimal places.

47. Previous year's figures have been regrouped/reclassified to confirm with current year presentation wherever considered necessary.