EXECUTIVE POST GRADUATE DIPLOMA IN MANAGEMENT

Title: “RATIO ANALYSIS OF ASTEC LIFESCIENCES LTD.”

PROJECT REPORT SUBMITTED TO ALLIANCE UNIVERSITY IN

PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE
COURSE:

Prepared by

NAME: NOORUL HUDHA J

REGISTRATION NO.: 2001016112071

BATCH: DEC 2020

SPECIALIZATION: FINANCE

Under the guidance of

Dr. KAPIL ARORA.

Page 1
 Executive Post Graduate Diploma in Management

Term – IV: Project Work

Declaration

This is to declare that the Report entitled “RATIO ANALYSIS OF ASTEC LIFESCIENCES
LTD” has been made for the partial fulfilment of the Course: Project Work in Term – IV by me at
ALLIANCE UNIVERSITY OF BUSINESS (Organization) under the guidance of Dr. KAPIL
ARORA.

I confirm that this Report truly represents my work undertaken as a part of my Project Work. This
work is not a replication of work done previously by any other person. I also confirm that the
contents of the Report and the views contained therein have been discussed and deliberated with the
Faculty Guide.

Signature of the Student : Noorul Hudha J

Name of the Student (in Capital Letters) : NOORUL HUDHA J

Registration No. : 2001016112071

Specialization : FINANCE

Page 2
 Executive Post Graduate Diploma in Management

Certificate

This is to certify that Ms. NOORUL HUDHA J Registration No. 2001016112071 has completed
the Report entitled “RATIO ANALYSIS OF ASTEC LIFESCIENCES LTD” under my
guidance for the partial fulfillment of the Course: Project Work in Term – IV of the Executive Post
Graduate Diploma in Management.

Signature of Faculty Guide

Name of the Faculty Guide: Dr. KAPIL ARORA.

Page 3
 ACKNOWLEDGEMENTS

It is my privilege to express our sincerest regards to our project coordinator, Dr. Kapil Arora, for his
valuable inputs, able guidance, encouragement, whole-hearted cooperation and constructive criticism
throughout the duration of our project.

I deeply express my sincere thanks to our Head of Department for encouraging and allowing me to
present the project on the topic “RATIO ANALYSIS OF ASTEC LIFESCIENCES LTD.” at our
department premises for the partial fulfillment of the requirements leading to the award of FINANCE
degree.

I take this opportunity to thank all my lecturers who have directly or indirectly helped our project. I
pay my respect and love to my parents and all other family members and friends for their love and
encouragement throughout my career. Last but not the least I express my thanks to my friends for
their cooperation and support.

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 TABLE OF CONTENTS

ACKNOWLEDGEMENTS ...................................................................................................................... 4

TABLE OF CONTENTS ......................................................................................................................... 5

EXECUTIVE SUMMARY ....................................................................................................................... 9

CHAPTER-1 ...................................................................................................................................... 10

INTRODUCTION ............................................................................................................................... 10

1.1 GENERAL ................................................................................................................................... 11

To get useful information about a company, financial ratios are calculated using numerical numbers
from financial statements. The figures on a company's financial statements - the balance sheet,
income statement, and cash flow statement – are used to undertake quantitative analysis and
evaluate a company's liquidity, leverage, growth, margins, profitability, rates of return, and
valuation, among other things. ........................................................................................................ 11

1.2 FINANCIAL RATIO....................................................................................................................... 11

1.3 SOURCES OF DATA ..................................................................................................................... 12

Financial ratios are calculated using data from the balance sheet, income statement, statement of
cash flows, and (sometimes) the statement of changes in equity. These are the "accounting
statements" or financial statements of the company. The data in the financial statements is based on
the organization's accounting technique and accounting standards. ................................................ 12

1.4 PURPOSE AND TYPES ................................................................................................................. 12

1.5 ACCOUNTING AND PRINCIPLES .................................................................................................. 13

Financial ratios across organisations that utilise different accounting systems or implement different
standard accounting procedures may not be immediately comparable. Although most public firms
are compelled by law to apply generally accepted accounting principles in their native countries,
private corporations, partnerships, and sole proprietorships have the option of not using accrual
accounting. Large multinational firms may utilise either International Financial Reporting Standards
or their home country's generally accepted accounting standards to prepare their financial
statements. ..................................................................................................................................... 13

There is no worldwide standard for determining the summary statistics given in all financial
statements, and the language used by firms, industries, nations, and time periods is not necessarily
uniform. .......................................................................................................................................... 13

1.6 ABBREVIATIONS AND TERMINOLOGY ........................................................................................ 13

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 Financial statements, particularly those published on the Internet, may employ a variety of
acronyms. Returns, allowances, and early payment discounts are normally deducted from the
charge on an invoice before net sales are recorded. Unless otherwise indicated, net income is
the amount after taxes, depreciation, amortisation, and interest. Otherwise, EBIT or EBITDA
would be used (see below). ..................................................................................................... 13
Companies that mainly provide labor-intensive services do not often record "Sales" based on
hours. These businesses often report "revenue" based on the monetary worth of the money
generated by their services. ..................................................................................................... 13
Note that Shareholders' Equity and Owners' Equity are not the same thing. Shareholders' Equity
is the total number of shares in the company multiplied by each share's book value; Owners'
Equity is the total number of shares that an individual shareholder owns (usually the controlling
shareholder) multiplied by each share's book value. When computing ratios, it's critical to make
this difference.......................................................................................................................... 13
Abbreviations .......................................................................................................................... 13
1.7 TYPES OF FINANCIAL RATIOS...................................................................................................... 14

Leverage Financial Ratios ......................................................................................................... 15

1.8 USES AND USERS OF FINANCIAL RATIO ANALYSIS....................................................................... 17

1.9 OBJECTIVES OF THE STUDY ........................................................................................................ 18

1.10 PROBLEM STATEMENT ............................................................................................................. 18

As financial ratio analysis depicts a company's performance, the current study depicts
AstecLifescience Limited's financial performance. ........................................................................... 18

1.11 RESEARCH LAYOUT .................................................................................................................. 18

CHAPTER-2 ...................................................................................................................................... 19

COMPANY PROFILE.......................................................................................................................... 19

2.1 ASTEC LIFESCIENCES LTD. (ASTEC) - COMPANY HISTORY ............................................................ 20

For its worldwide clientele, Astec produces a variety of fungicides, insecticides, herbicides, and
intermediates. ................................................................................................................................. 22

2.2 PRODUCT AND INTERMEDIATES ................................................................................................ 22

2.3 MANUFACTURING ..................................................................................................................... 24

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At Mahad, Astec has two multifunctional manufacturing facilities. They are based on glass-lined and
stainless steel reactors with capacities ranging from 3000 to 20,000 litres. The average reactor
volume is 10,000 litres. .................................................................................................................... 24

Glass-lined and stainless-steel tanks with capacities ranging from 50 to 500 litres are used in the pilot
plant. Reactions may be carried out at temperatures ranging from minus 20 to 250 degrees Celsius,
with distillation up to 300 degrees Celsius and vacuum down to 1mm Hg........................................ 24

High melting solids may be handled using distillation systems. ........................................................ 24

Fractionating columns with high efficiency up to 100 theoretical plates are offered. ....................... 24

Every Astec facility is built to handle a variety of caustic and hazardous raw materials. ................... 24

Astec may manufacture amounts ranging from a few kilos to hundreds of tonnes depending on the
situation. ......................................................................................................................................... 24

All manufacturing procedures are underpinned by an ISO 9001:2008 certified Quality Assurance
System. ........................................................................................................................................... 24

2.4 PROJECTS................................................................................................................................... 24

Astec Lifesciences has built up in-house skills to design, develop, build, and commission its own
manufacturing facilities throughout the years. ................................................................................ 24

One of the causes for the fast development of manufacturing capacity across product categories has
been this. ........................................................................................................................................ 24

These facilities fulfil international quality requirements and are assessed on a regular basis by
different agencies and clients from across the globe. ...................................................................... 24

Astec has a specialised Projects team that keeps a laser-like focus on customer requirements. 2.5
MATERIALS HANDLED...................................................................................................................... 24

2.5 QUALITY .................................................................................................................................... 26

2.6 AWARDS .................................................................................................................................... 26

CHAPTER-3 ...................................................................................................................................... 29

LITERATURE REVIEW........................................................................................................................ 29

3.1 LITERATURE REVIEW .................................................................................................................. 30

CHAPTER-4 ...................................................................................................................................... 39

RESEARCH METHODOLOGY ............................................................................................................. 39

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4.1 RESEARCH METHODOLOGY........................................................................................................ 40

A descriptive and qualitative method is used by the researcher. When performing research,
secondary sources are used. Secondary materials such as books, journals, and articles are mostly
used to describe the theoretical framework. The research offers the author's personal viewpoint as
well as the viewpoints of a few well-known writers. The work creates a cross-section to make the
problem more apparent. The research is divided into numerous stages. ......................................... 40

4.2 DATA COLLECTION ..................................................................................................................... 40

In performing research, secondary sources are mostly used. Secondary materials such as books,
journals, and articles are mostly used to describe the theoretical framework. ................................. 40

4.3 INCLUSION CRITERIA (FOR SECONDARY DATA) ........................................................................... 40

4.4 RESEARCH DESIGN ..................................................................................................................... 41

The researcher uses a qualitative and descriptive technique, which allows him to collect, analyse,
and interpret the data set that was utilised to explain the underlying circumstances that led to the
necessity for this study. ................................................................................................................... 41

4.5 NATURE OF DATA ...................................................................................................................... 41

CHAPTER-5 ...................................................................................................................................... 42

DATA ANALYSIS ............................................................................................................................... 42

AND................................................................................................................................................. 42

FINDINGS ........................................................................................................................................ 42

Unclaimed/ Unpaid Dividend ........................................................................................................... 43

5.1 BALANCE SHEET ......................................................................................................................... 44

5.2 FINANCIAL RATIOS ..................................................................................................................... 47

CHAPTER- 6 ..................................................................................................................................... 58

RECOMMENDATION AND CONCLUSION ......................................................................................... 58

6.1 RECOMMENDATIONS ................................................................................................................ 59

REFERENCE: ..................................................................................................................................... 72

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 EXECUTIVE SUMMARY

All internal and external stakeholders of the company need to be able to interpret financial statements
and data. We interpret the statistics from the balance sheet and income statements using ratio analysis.
When it comes to financial results, each stakeholder has various objectives. For example, equity
investors are more interested in the long-term growth of dividend payments and the organization's
earning ability. Creditors want to know that they will be paid on time for their outstanding debts.
Financial ratios are a crucial tool in the world of finance; thus users must have a thorough
understanding of all of its elements. Ratio analysis is important for a company's financial position,
liquidity, profitability, risk, solvency, efficiency, and operations effectiveness, as well as proper fund
utilisation. It also indicates the trend or comparison of financial results, which can be useful for
shareholders making investment decisions. It allows us to compare trends between two or more
companies throughout time. We shall do a ratio analysis of Astec Lifesciences Limited in this study.

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 CHAPTER-1

INTRODUCTION

Page 10
1.1 GENERAL

To get useful information about a company, financial ratios are calculated using numerical numbers
from financial statements. The figures on a company's financial statements - the balance sheet, income
statement, and cash flow statement – are used to undertake quantitative analysis and evaluate a
company's liquidity, leverage, growth, margins, profitability, rates of return, and valuation, among
other things.

1.2 FINANCIAL RATIO

A financial ratio, also known as an accounting ratio, is the magnitude of two numerical values
obtained from a company's financial statements. Many standard ratios are used in accounting to try to
determine a corporation's or other organization's overall financial condition. Financial ratios can be
employed by company executives, current and potential shareholders (owners), and a company's
creditors. Financial ratios are used by financial analysts to compare the strengths and weaknesses of
different businesses. [1] The market price of a company's shares is utilised in some financial ratios if
the company's shares are traded on a financial market.

Ratios can be stated as a decimal value, such as 0.10, or as a percentage figure, such as ten percent.
Some ratios are frequently expressed as percentages, particularly those that are usually or always less
than one, such as earnings yield, whereas others are expressed as decimal numbers, particularly those
that are usually greater than one, such as the P/E ratio; these are also known as multiples. One may
find the reciprocal of any ratio; if the ratio is greater than 1, the reciprocal will be less than 1, and vice
versa. The reciprocal provides the same information but may be easier to comprehend: for example,
the earnings yield can be linked to bond yields, although the P/E ratio cannot: a P/E ratio of 20
corresponds to a 5% earnings yield.

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1.3 SOURCES OF DATA

Financial ratios are calculated using data from the balance sheet, income statement, statement of cash
flows, and (sometimes) the statement of changes in equity. These are the "accounting statements" or
financial statements of the company. The data in the financial statements is based on the
organization's accounting technique and accounting standards.

1.4 PURPOSE AND TYPES

Financial ratios are a crucial component of the financial statement examination since they quantify
numerous characteristics of a corporation. Financial ratios are classified based on the financial
component of the company that they measure. Liquidity ratios are used to determine how much cash
is available to pay off debt. The speed with which a company transforms non-cash assets to cash
assets is measured by activity ratios. Debt ratios are used to determine a company's capacity to repay
long-term debt. Profitability ratios assess how well a company uses its assets and manages its costs in
order to achieve a reasonable rate of return. Investor reaction to holding a company's stock, as well as
the cost of issuing shares, are measured by market ratios. These are concerned with the shareholders'
return on investment and the link between return and the value of an investment in a company's stock.

Financial ratios enable comparisons to be made.

● between companies

● between industries

● between different time periods for one company

● between a single company and its industry average

Ratios are useless unless they are compared to something else, such as prior performance or another
organisation. As a result, it's difficult to compare the ratios of companies in various sectors, which
confront varying risks, capital needs, and competitiveness.

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1.5 ACCOUNTING AND PRINCIPLES

Financial ratios across organisations that utilise different accounting systems or implement different
standard accounting procedures may not be immediately comparable. Although most public firms are
compelled by law to apply generally accepted accounting principles in their native countries, private
corporations, partnerships, and sole proprietorships have the option of not using accrual accounting.
Large multinational firms may utilise either International Financial Reporting Standards or their home
country's generally accepted accounting standards to prepare their financial statements.

There is no worldwide standard for determining the summary statistics given in all financial
statements, and the language used by firms, industries, nations, and time periods is not necessarily
uniform.

1.6 ABBREVIATIONS AND TERMINOLOGY

Financial statements, particularly those published on the Internet, may employ a variety of acronyms.
Returns, allowances, and early payment discounts are normally deducted from the charge on an
invoice before net sales are recorded. Unless otherwise indicated, net income is the amount after
taxes, depreciation, amortisation, and interest. Otherwise, EBIT or EBITDA would be used (see
below).

Companies that mainly provide labor-intensive services do not often record "Sales" based on hours.
These businesses often report "revenue" based on the monetary worth of the money generated by their
services.

Note that Shareholders' Equity and Owners' Equity are not the same thing. Shareholders' Equity is the
total number of shares in the company multiplied by each share's book value; Owners' Equity is the
total number of shares that an individual shareholder owns (usually the controlling shareholder)
multiplied by each share's book value. When computing ratios, it's critical to make this difference.

Abbreviations

(Note: These are not ratios, but values in currency.)

● COGS = Cost of goods sold, or cost of sales.

● EBIT = Earnings before interest and taxes

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● EBITDA = Earnings before interest, taxes, depreciation, and amortization

● EPS = Earnings per share

1.7 TYPES OF FINANCIAL RATIOS

Financial ratios are grouped into the following categories:

● Liquidity ratios

● Leverage ratios

● Efficiency ratios

● Profitability ratios

● Market value ratios

Liquidity Ratios

Liquidity ratios are financial measurements that assess a company's capacity to pay back both
short- and long-term debt. The following are some examples of common liquidity ratios:

A company's capacity to pay down short-term commitments using current assets is measured by
the current ratio:

Current ratio = Current assets / Current liabilities

The acid-test ratio assesses a company's capacity to repay short-term debts with short-term assets:

Acid-test ratio = Current assets – Inventories / Current liabilities

A company's capacity to pay down short-term creditors with cash and cash equivalents is
measured by the cash ratio:

Cash ratio = Cash and Cash equivalents / Current Liabilities

The operational cash flow ratio is a measure of how many times a company's current obligations
can be paid off with cash earned in a particular period:

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 Operating cash flow ratio = Operating cash flow / Current liabilities

Leverage Financial Ratios

The amount of capital that originates from debt is measured by leverage ratios. Leverage financial
ratios, in other words, are used to assess a company's debt levels. The following are some
examples of common leverage ratios:

The debt ratio is a measurement of how much of a company's assets are supplied by debt:

Debt ratio = Total liabilities / Total assets

The debt to equity ratio calculates the weight of total debt and financial liabilities against
shareholders’ equity:

Debt to equity ratio = Total liabilities / Shareholder’s equity

The interest coverage ratio shows how easily a company can pay its interest expenses:

Interest coverage ratio = Operating income / Interest expenses

The debt service coverage ratio reveals how easily a company can pay its debt obligations:

Debt service coverage ratio = Operating income / Total debt service

Efficiency Ratios

Efficiency ratios, also known as activity financial ratios, are used to assess a company's ability to
effectively employ its assets and resources. The following are some examples of efficiency ratios:

The asset turnover ratio assesses a firm's capacity to produce revenue from its assets:

Asset turnover ratio = Net sales / Average total assets

The inventory turnover ratio calculates how often a company's inventory is sold and replaced in a
specific time period:

Inventory turnover ratio = Cost of goods sold / Average inventory

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 The accounts receivable turnover ratio determines how often a corporation can convert
receivables into cash over a specific time period:

Receivables turnover ratio = Net credit sales / Average accounts receivable

The average number of days a corporation keeps inventory before selling it to consumers is
measured by the days sales in inventory ratio:

Days sales in inventory ratio = 365 days / Inventory turnover ratio

Profitability Ratios

Profitability ratios assess a company's capacity to create revenue, balance sheet assets, operating
expenses, and equity in relation to revenue, balance sheet assets, operating costs, and equity. The
following are some examples of common profitability financial ratios:

The gross margin ratio compares a company's gross profit to its net sales to determine how much
profit it generates after deducting its cost of goods sold:

Gross margin ratio = Gross profit / Net sales

The operating margin ratio compares the operating income of a company to its net sales to
determine operating efficiency:

Operating margin ratio = Operating income / Net sales

The return on assets ratio measures how efficiently a company is using its assets to generate
profit:

Return on assets ratio = Net income / Total assets

The return on equity ratio measures how efficiently a company is using its equity to generate
profit:

Return on equity ratio = Net income / Shareholder’s equity

Market Value Ratios

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 Market value ratios are used to determine how much a company's stock is worth. The following
are some examples of market value ratios:

The book value per share ratio determines a company's per-share value based on the amount of
equity accessible to shareholders:

Book value per share ratio = (Shareholder’s equity – Preferred equity) / Total common
shares outstanding

The dividend yield ratio is a calculation that compares the amount of dividends paid to shareholders to
the market value per share:

Dividend yield ratio = Dividend per share / Share price

The earnings per share ratio calculates the amount of net income received per outstanding share:

Earnings per share ratio = Net earnings / Total shares outstanding

The price-earnings ratio compares a company’s share price to its earnings per share:

Price-earnings ratio = Share price / Earnings per share

1.8 USES AND USERS OF FINANCIAL RATIO ANALYSIS

The goal of financial ratio analysis is twofold:

1. Track company performance

Individual financial ratios are calculated for each period and the changes in their values over time are
tracked to detect emerging patterns in a firm. An growing debt-to-asset ratio, for example, may
suggest that a corporation is overwhelmed with debt and is at danger of default.

2. Make comparative judgments regarding company performance

Financial ratios are compared to those of key rivals to see whether a firm is doing better or worse than
the industry average. Comparing the return on assets of several firms, for example, might assist an
analyst or investor figure out which company is making the most effective use of its assets.

Financial ratios are used by parties both within and outside the company:

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 ● External users: Financial analysts, retail investors, creditors, competitors, tax authorities,
regulatory authorities, and industry observers

● Internal users: Management team, employees, and owners

1.9 OBJECTIVES OF THE STUDY

Main objectives of this study are-

1. To understand about the financial ratios.

2. To analyse the financial ration of AstecLifescience Limited.

1.10 PROBLEM STATEMENT

As financial ratio analysis depicts a company's performance, the current study depicts
AstecLifescience Limited's financial performance.

1.11 RESEARCH LAYOUT

The first component of the introduction discusses the issue by offering background information,
research goals, and a problem statement. In the second chapter, the company profile is explored. The
literature review is the foundation of the thesis's third chapter, or empirical section. The fourth chapter
discusses research methods and its different components. In the fifth chapter, the data analysis and
research results are detailed. Finally, the sixth chapter offers the study's recommendations and
conclusion.

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 CHAPTER-2

COMPANY PROFILE

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2.1 ASTEC LIFESCIENCES LTD. (ASTEC) - COMPANY HISTORY

Agrochemicals and pharmaceutical intermediates are produced by AstecLifeSciences Ltd.

Agrochemical active components and medicinal intermediates are produced by the firm. They have
production facilities in two sites in Maharashtra, India, consisting of three units: one in Dombivli,
Maharashtra, and two in Mahad, Maharashtra (Unit 1 and Unit 2). They sell their goods throughout
East Asia, Europe, the Middle East, and the United States. The company's business is divided into two
key segments: agrochemicals and pharmaceuticals. The company's Agrochemical sector produces
active ingredients, intermediates, and formulations. Crop protection formulators buy active
substances. Manufacturers of technical grade products get intermediates. Formulations are supplied in
large amounts to retail marketing businesses. The firm manufactures intermediates for Active Pharma
Ingredients (API) producers within the Pharmaceutical division. AstecLifeSciences Ltd was founded
on January 25, 1994, as Urshila Traders Pvt Ltd, a private limited company. Reena Bagai and
AvitaFernandes were the company's first promoters. On February 11, 1994, Ashok Hiremath and
PratapGarud acquired their ownership. The company's name was changed from Urshila Traders Pvt
Ltd to Astec Chemicals Pvt Ltd on August 19, 1994. In August 1994, the business acquired its first
manufacturing plant in Dombivli, Maharashtra, with a 120 MT installed capacity for the production of
Dicap, a pharmaceutical intermediate. International Standards Certification Pty Limited Australia
gave them ISO 9002 Certification in May 2001. The firm entered into an arrangement with Behram
Chemicals Pvt Ltd on February 18, 2002, with the intention of expanding their activities by utilising
and running their production facilities in Mahad, Maharashtra. Behram Chemicals Pvt Ltd was a
chemical and pesticide manufacturer with a 130 MT installed capacity. The firm increased the total
installed capacity of its plants (Dombivli and Mahad) from 250 to 500 MT in 2003-04. They bought a
block of property in Mahad, Maharashtra, in the year 2004. In May 2005, they opened a new
production facility next to Unit 1 with an installed capacity of 1000 MT as an Export Oriented Unit
(called Unit 2). The company's total installed capacity grew to 1500 MT with the commissioning of
Unit 2. The company's name was changed from Astec Chemicals Pvt Ltd to AstecLifeSciencesPvt Ltd
in March 2006. The firm became a public limited company in April 2006, and its name was changed
to AstecLifeSciences Ltd. During the 2006-07 fiscal year, the firm increased its total capacity to 2000
MT. Astec Europe was founded in Tournai, Belgium, in January 2007. During the 2007-08 fiscal
year, the business boosted its Agro & Pharma Intermediates manufacturing capacity by 500 MT to

Page 20
2500 MT. Behram Chemicals Pvt Ltd became a subsidiary of the firm in April 2007 when the
company purchased 65.63 percent of the company's ownership via a Share Purchase Agreement.
During the fiscal year 2008-09, the business boosted its Agro & Pharma Intermediates manufacturing
capacity by 300 MT to 2800 MT. They formed a partnership with a large corporation to deliver one of
our goods into the worldwide supply chain. During the 2009-10 fiscal year, the business boosted its
Agro & Pharma Intermediates manufacturing capacity by 350 MT to 3150 MT. They also put in place
new EHS performance metrics. In December 2009, the firm received orders worth Rs 7 crore from
Syngenta India and Nufarm, two of the top ten agrochemical manufacturers in the world. In June
2010, the firm signed a long-term, mutually exclusive secret deal with a global agrochemical
company to deliver a herbicide. The firm purchased 40000 sqmtrs of property in the MIDC Mahad
region in August 2010 with the intention of establishing additional production facilities on the new
location. The company's Chairman and Managing Director, Ashok V Hiremath, was honoured with
the prestigious 'Business Excellence' Award by the 'Indo-Thai Entrepreneurs Summit' in Bangkok,
Thailand on August 27, 2010 for his outstanding contribution to the advancement and development of
the Indian Economy and Society. During the fiscal year 2010-11, the firm will launch three new
items. They're also putting money into improving their research and development skills.

The Godrej group has gone a long way since 1897, and now boasts a worldwide customer base of 1.1
billion people who buy consumer goods, real estate, appliances, agriculture, and a variety of other
products.

Godrej Agrovet bought a stake in AstecLifeSciences Limited in August 2015. Astec Lifesciences Ltd
was founded in 1994 and produces a broad variety of agrochemicals and pharmaceutical
intermediates.

With more than two decades of expertise in the research and manufacture of specialty chemicals,
Astec has established long-term partnerships with both major and small businesses throughout the
globe. This is shown by the fact that export sales account for more than half of its revenue, with sales
to more than 25 nations.

Astec is also a member of Nicer Globe and has been awarded the International Council of Chemical
Associations' Responsible Care accreditation (ICCA).

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For its worldwide clientele, Astec produces a variety of fungicides, insecticides, herbicides, and
intermediates.

2.2 PRODUCT AND INTERMEDIATES

● Triazole fungicides ● Heterocyclic sulfonyl chlorides

● Heterocyclic Herbicides ● Heterocyclic sulphonamides

● Sulfonyl urea herbicides ● Heterocyclic carbamates

● Synthetic Pyrethroids ● Thiourium salts

● Alkyl and aryl Magnesium halides ● Alkyl and aryl chloroformates

● Mixed metal halides ● Substituted 1,2- and 1,3- Pyrimidines

● Silane derivatives ● Substituted pyrimidine diones

● Fluorinated aromatic, aliphatic and ● Pyrazolones

heterocyclic intermediates
● Pyrazolyl aromatic ketones
● Fluorinated aromatic amines
● Morpholine derivatives
● Fluorinated pyridine derivatives
● Aromatic azo compounds
● Fluorinated aromatic carboxylic acids
● Substituted triazines
● Fluorinated benzyl alcohols
● Imidate ethers
● Fluorinated ketones and
● Mesylated intermediates
benzophenones
● Substituted Epoxides
● Fluorinated heterocyclic mercaptans
● Ketals and bromo ketals
● Heterocyclic mercaptans
● Aromatic and aliphatic ethers
● Thiopyrimidines
● Cyclopropyl ethers
● Aromatic mercaptans

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 ● Cyclopropyl aldehydes and ketones ● Halo alkanes

● Conjugated ketones ● Aliphatic and aromatic brominated

derivatives
● Acetophenone derivatives
● Aliphatic and aromatic cyanides
● Pinacolone derivatives
● Aliphatic and aromatic esters
● Aliphatic and aromatic carboxylic
acids ● Aliphatic and aromatic carboxamides

● Aliphatic and aromatic acid chlorides ● Aliphatic and aromatic amines

● Halogenated and non-halogenated ● Aliphatic and aromatic alcohols and

anhydrides diols

● Aliphatic alkenes

Page 23
2.3 MANUFACTURING

At Mahad, Astec has two multifunctional manufacturing facilities. They are based on glass-lined and
stainless steel reactors with capacities ranging from 3000 to 20,000 litres. The average reactor volume
is 10,000 litres.

Glass-lined and stainless-steel tanks with capacities ranging from 50 to 500 litres are used in the pilot
plant. Reactions may be carried out at temperatures ranging from minus 20 to 250 degrees Celsius,
with distillation up to 300 degrees Celsius and vacuum down to 1mm Hg.

High melting solids may be handled using distillation systems.

Fractionating columns with high efficiency up to 100 theoretical plates are offered.

Every Astec facility is built to handle a variety of caustic and hazardous raw materials.

Astec may manufacture amounts ranging from a few kilos to hundreds of tonnes depending on the
situation.

All manufacturing procedures are underpinned by an ISO 9001:2008 certified Quality Assurance
System.

2.4 PROJECTS

Astec Lifesciences has built up in-house skills to design, develop, build, and commission its own
manufacturing facilities throughout the years.

One of the causes for the fast development of manufacturing capacity across product categories has
been this.

These facilities fulfil international quality requirements and are assessed on a regular basis by
different agencies and clients from across the globe.

Astec has a specialised Projects team that keeps a laser-like focus on customer requirements. 2.5
MATERIALS HANDLED

● Hydrazine ● Complex hydrides (NaBH4, NaH)

Page 24
 ● Metals (Na, Li, Mg, Zn) ● Catalytic Hydrogenation

● Metal catalysts for hydrogenations ● Prince reaction

● Br2, Cl2, SOCl2,SO2Cl2 , PCl3, PCl5, ● Diels-Alder reaction

POCl3,
● Corey-Chaykovsky Reaction
● Sulphur based reagents
● Epoxidations
(dimethylsulfate, mercaptans,)
● Chlorination
● Sodium methoxide
● Bromination
● Sodium cyanide
● Alkylation and Acylations
● Silane derivatives
● Oxidations
● Amines (Pyridine, TEA)
● Reductions
● Methane sulfonic acids
● Cyanation
● Hydrogen peroxide
● Thermal rearrangements
● Sulphonamide derivatives
● Optical resolution
● Chloroformates
● Specialised technologies
● Carbamates
● Grignard reactions
● Sulfonyl urea
● Cross-coupling technologies (Heck,
● Key technical capabilities
Suzuki, etc.)
● Friedel-Crafts reactions
● Buchwald CN coupling
● Organometallic chemistry
● Asymmetric synthesis
● Heterocyclic chemistry
● Vapour phase chemistry
● C-C bond formation reactions

Page 25
2.5 QUALITY

We are committed to providing high-quality goods that are tailored to meet the needs of our clients.
Furthermore, we make every effort to adhere to all agreed-upon requirements and standards for all
applications.

Astec's analytical laboratories are outfitted with cutting-edge technology to conduct all essential tests
and analyses to assure the highest quality and assist product development.

The firm has created a reputation for dependability and quality, which is supported by a highly
personal and devoted service, thanks to a sustained track record of excellent client satisfaction.

2.6 AWARDS

PMFAI Award for Best Emerging Company (Large Scale) (2019)

The Pesticides Producers & Formulators Association of India (PMFAI) is a trade association that
represents over 250 pesticide manufacturers, formulators, and merchants in India. Almost all crop
protection products with potential in India are manufactured, formulated, sold, and distributed by
PMFAI member businesses.

PMFAI collaborates with a number of scientific and social-justice organisations, as well as a number
of pesticide associations throughout the globe.

ICC Award for Excellence in Human Resource Management (2019)

Senior executives from a broad spectrum of worldwide and local chemical businesses are strongly
represented at the ICC. The ICC's executive committee is made up of chemical industry experts with a
wealth of knowledge and insight into the Indian chemical sector. Their leadership and vision propel
ICC forward in terms of expansion and service.

Page 26
ICC's activities include hosting a variety of seminars and events to disseminate knowledge on the
Indian chemical industry's safety, health, and environmental concerns.

The ICC National Awards, which are granted in a variety of categories, are highly regarded in the
industry and acknowledge remarkable success by a firm or individual among their peers.

ICC Award for Best Practices in Health and Safety (2018)

Senior executives from a variety of international and domestic chemical businesses are strongly
represented at the ICC. The ICC's executive committee is made up of chemical industry experts with a
wealth of knowledge and understanding of the Indian chemical sector. ICC is guided by its leadership
and vision to continue to expand and serve the community.

ICC's activities include hosting a number of seminars and events aimed at disseminating knowledge
about the Indian chemical industry's safety, health, and environmental concerns.

The industry values the ICC National Awards, which are granted in a variety of categories and
acknowledge remarkable success by a firm or individual among their peers.

CII Environmental Best Practices Award (2018)

CII is a non-profit, industry-led and controlled organisation with roughly 9100 members from the
commercial and public sectors, including SMEs and multinational corporations, and an indirect
membership of over 300,000 businesses via 288 national and regional sectoral industry associations.

ICC Award for Social Responsibility (2018)

Astec Lifesciences Ltd was named Safety Professional of the Year (2017-18) throughout Godrej
Agrovet Ltd.

Godrej Agrovet Limited is a diverse, R&D-focused agri-business enterprise committed to increasing

the productivity of Indian farmers by developing goods and services that boost crop and animal yields
in a sustainable manner. Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry, and Processed
Foods are just a few of the industries in which Godrej Agrovet is a market leader.

Godrej Agrovet Ltd owns Astec Lifesciences Ltd, which is a subsidiary of Godrej Agrovet Ltd.

National Safety Council – Certificate of Merit for Performance in Industrial Safety (2017)
Page 27
The National Safety Council was established by the Ministry of Labour and Employment of the
Government of India to originate, develop, and maintain a volunteer movement on safety, health, and
the environment (SHE) at the national level.

Special Recognition by Dow AgroSciences - for contribution in New Project Development

Dow AgroSciences (formerly Corteva) is a multinational corporation at the forefront of global

agrochemical innovation.

ICC – Responsible Care Signatory Companies (2015)

As a signatory to Responsible Care, Astec Lifesciences agrees to improve performance in the areas of
environmental protection, occupational safety and health, plant safety, product stewardship, and
logistics, as well as to improve dialogue with its neighbours and the general public, regardless of legal
requirements.

Page 28
 CHAPTER-3

LITERATURE REVIEW

Page 29
3.1 LITERATURE REVIEW

Fundamental analysis is a conceptualization of the survival of the fittest idea. A fundamental analyst
examines and evaluates a company's many aspects to assess whether it is fundamentally sound enough
to survive and thrive in the business world (Spooner, 1984). In order for any corporation to act
decisively, it is necessary to do a thorough study of the firm. Only a comprehensive and rigorous basic
study can offer the multitude of data that is necessary.

Financial statement analysis is a key component of fundamental analysis, and it entails a number of
complex tasks in order to get the aforementioned information (Bernstein, 1975). Euclid's Book V of
Elements discussed ratios and proportions as a mathematical idea in an abstract way. Horrigan
(Horrigan, 1968). A financial ratio is one in which the numerator and denominator are both obtained
from an organization's financial statements (Horrigan, 1968). Financial ratios show how different
financial variables are related to one another. Ratios have been the primary analytical tool for every
fundamental analyst due to their multi-dimensional information absorption capabilities.

It is impossible to interpret accounting data without converting it into ratios, hence justification of
financial ratios is also a key justification of financial accounting (Horrigan, 1965).

The present significance of financial ratios is due to the large quantity of information included in a set
of financial statements, as well as the need to compare organisations of various sizes. Financial ratios
give information to a business's stakeholders not only about the present but also about the future
situation of the organisation (Faello, 2015; Gallizo& Salvador, 2003).

Financial ratios are widely used in all aspects of financial analysis, but their use requires a thorough
grasp of their capabilities and limits. As a result, it is critical to comprehend the nature and proper use
of financial ratios.

Brief history of financial ratios

Commercial banks began requesting financial information from businesses as loans became available
in the early 1870s. During the 1890s, this became a common practise, resulting in a massive rise in the
availability of financial data. This was the time when financial statement analysis became more
important. Horrigan (Horrigan, 1968). After the 1890s, the practise of classifying items as current or
Page 30
non-current began, leading to the development of the current ratio. As a result, the current ratio was
the first financial ratio adopted. (Horrigan, 1968; Beaver, 1966). Financial ratios give the needed
picture of an entity's financial status for any fundamental analyst (Muresan&Wolitzer, 2004).
Alexander Wall recognised the need for more diverse financial ratios in 1912 and issued a paper titled
"Study of Credit Barometrics" in 1919. (Wall, 1919).

Ratios were utilised to measure management efficiency in the retail industry almost at the same time.
The usage of ratios in the form of profit margins and turnovers had progressed significantly. In 1919,
Du Pont pioneered the most thorough use of three ratios for evaluating operational outcomes
(Horrigan, 1968). The development of financial ratios and the explosion of literature on ratios marked
the next decades. These improvements have been attributed to Wall's 1919 research.

Financial Ratio Analysis & Interpretation offers information to help stakeholders who are interested in
a company's financial status and operational outcomes make better decisions. This research aims to
provide a comprehensive overview of the numerous applications of financial ratios as well as their
limits.

Uses of financial ratios

Financial Evaluation

Financial ratios have shown to be crucial in identifying a company's fundamental qualities, according
to existing research. Financial ratios may be used to demonstrate the basics of any sort of business.
Financial ratios may be used to understand the different elements of any organisation, from
profitability to long-term solvency.

Professionals utilise financial ratios as a primary tool for evaluating financial situations. Financial
ratios, which link essential sections of the financial statements, are among the things of possible
interest to analysts, according to a questionnaire issued to 400 CFAs randomly picked from the
Financial Analysts Federation membership list (Gibson, 1987).

Financial statement ratios can be used to analyse and interpret the financial statements of non-profit
higher education institutions (Woelfel, 1987), shipping companies (Wang & Lee, 2010), airline
companies (Teker, Teker, &Güner, 2016), hospitality companies (Petroska- Angelovska&Ackovska,

Page 31
2016), municipal governments (Drew Joseph &Dollery Brian, 2016), IT companies (Dulababu, 2017),
FMCG companies (Bansal & Singh As a result, their universal application is undeniable.

The F-score is the most current fundamental approach to be established, and it may be used to analyse
a company's fundamentals as well as industry analysis. The F-score demonstrates that accounting-
based fundamental research has the ability to assist investors in increasing their investment returns.
PiotroskiThe F-Score is named after Joseph Piotroski, a professor of accounting at the University of
Chicago. The F-score is a numerical score created by examining the change in nine major financial
parameters of a firm; when the change is positive, a point is granted; so, a company with a score of 9
would be considered the best for investment (Piotroski, 2002; Safdar, 2016). Researchers have
utilised the F-score to assess organisations in various economies (Hyde, 2013; Hyde, 2015; Young
et.al. 2015).

Benchmark & Managerial Control

Benchmarking entails the development of guidelines. Benchmarking assists management in

implementing the necessary controls on the process in order to meet the organization's goals.
Financial ratios have been used in a variety of models to create benchmarks and hence aid in making
informed decisions.

The Du Pont model was created by the Du Pont Company in 1919, although it was not well known
until 1950. The model depicts a structural breakdown of the Return on Equity (ROE) ratio into three
component ratios, allowing management to exert control over those component ratios, resulting in an
increase in ROE (Bhattacharya, 2007). Du Pont Firm commissioned F. Donaldson Brown to examine
the finances of a recently acquired company, General Motors. F. Donaldson Brown, an electrical
engineer who worked for four years in the Treasury Department, saw a mathematical link between
two financial ratios: net profit margin and total assets turnover. The result of multiplying these ratios
was Return on Assets. This was Du Pont's first model. Then, the Du Pont model for ROE was
established with three components, which was later expanded to five components by research in order
to have more effective control (Liesz, 2002). The Du Pont model has been used in a variety of studies
to assess firms of various types. (Almazari, 2012; Little, Little, & Coffee, 2009).

Researchers may also build benchmarks in the form of a composite index built up of ratios. These
indices serve as a standard against which the company's success may be measured. Because of their

Page 32
capacity to reflect the different essential features of a firm, financial ratios are the most ideal to
become the main component of the fundamental index (Arnott, Hsu, & Moore, 2005; Jia& Li, 2015).

Solvency Evaluation Studies

A company's insolvency is a disruptive force that has far-reaching consequences for any economy. As
a result, a number of scholars have attempted to forecast the likelihood of such bankruptcy. Financial
ratios have been used to build models that help in detecting organisations that may become insolvent.
The examination of financial ratios has been especially useful in predicting an entity's operational and
financial troubles. Altman (2000; Altman, 2000; Altman, 2000; Altman, 2000; Altman,

Financial ratios were first used to determine solvency in the early 1940s. Merwin's research, which
identified three ratios as indications, included the first efforts to employ ratios for solvency
examination (Horrigan, 1968).

The application of financial ratio information has been studied by the models Beaver, 1966; Horrigan,
1966; Daniel, 1969; Altman, 1968; Deakin, 1972. These models have given management and
investors insight into the company's future viability. The utility of financial ratios was characterised
by these writers in terms of their forecasting power. The statistical predictive association between
financial ratios and certain specific real-world occurrence, such as Altman: bankruptcy, Beaver,
Daniel, and Deakin: company failure, and Horrigan: long-term credit standing, was determined to
determine predictive ability. Various more models were created in a specific way for a certain
economy or a specific kind of organisation using the models as a foundation (Beaver, 1968; Deakin,
1972; Blum, 1974; Kennedy, 1975; Altman &Eisenbeis, 1978; Ohlson, 1980; Carson, 1994; Shirata,
1998; Edmister O., 2012; Zeytinoglu&Akarim, 2013; Almansour, 2015).

Despite the fact that several studies in the subject of bankruptcy prediction have been undertaken, the
Altman Z-score established by Altman has been the primary model used all over the globe. Thus, the
Z-Score Model has been around for over 45 years, yet it has been subjected to several adjustments and
refinements by researchers. With the introduction of the new multivariate statistical model, the 1968
model has been upgraded (Altman, 1968; Altman & Saunders, 1991; Altman & Hotchkiss, 2005;
Altman &Rijken, 2011). Altman gave an overview of all such researchers in the field of bankruptcy
prediction. The above-mentioned study outlines all of the bankruptcy prediction models that have
been developed, as well as the particular sectors in which they may be used (Altman et. al., 2014).

Page 33
Various extremely stochastic measures, such as fuzzy logic (Korol&Korodi, 2011), hazardous
modelling (Bharath& Shumway, 2008; Shumway, 2001), and survival analysis, were established
using the above-mentioned investigations as a foundation (Lee, 2014; Pereira, 2014; Gepp& Kumar,
2015). All of these models use ratios as their primary input, along with a slew of other interesting
variables.

Technical Analysis

Fundamental analysis and technical analysis are two types of financial analysis. Technical analysis is
the study of market behaviour rather than the items that the market trades in. Financial ratios are a part
of fundamental analysis, but they've also proved useful in technical analysis. Technical analysts use
fundamental research to forecast stock values. Various scholars have attempted to establish a link
between market-created share price and financial ratio fundamentals. These models have also tried to
forecast the share price after the association has been established.

In numerous economies and industries, researchers have been effective in scientifically demonstrating
the stock price prediction potential of financial measures. (Brioschi, Ghezzi, &Mosconi, 1990; Chan,
Hamao, &Lakonishok, 1993; Abarbanell&Bushee, 1997; Mukherji, Dhatt, & Kim, 1997; Abad,
Thore, &Laffarga, 2004; Lewellen, 2004; Babu, Geethanjali, &Satyanarayana, 2012; Rahman &
Hassan, 2013; Iqbal, The F-score has also been used to forecast the price of a stock. (2012, Mohr)

Inter-linkage Studies

Financial ratios allow managers to examine the interconnections that exist between various aspects of
the organisation. Researchers have sought to determine the link between aspects of a company's
capital structure, working capital, leverage, and profitability. Ratios serve as a proxy for the
aforementioned dimensions.

Using financial ratios as a research tool, numerous scholars have uncovered capital structure decisions
and the variables that influence them (Michaelas, Chittenden, &Poutziouris, 1999; Z. Murray & K.
Vidhan, 2009; Edwin O., Robert, & Josef, 2012; G. Philip, Eli, & L. David, 2012; Sheridan
&Wessels, 2012; Michael, Gregg, & Han, 2012).

There have also been studies done to see whether there are any links between capital structure and
profitability. These studies have shown the presence of a capital structure effect on profitability

Page 34
(Hung, Albert, & Eddie, 2002; Marcos & Lara, 2003; Abor, 2005; Gill, Biger, &Mathur, 2011; T. & J
Aloy, 2012).

Working capital dynamics have also been investigated using ratios in research. Researchers can better
examine and extrapolate information using numerous ratios that deal with working capital
components of a corporation. These studies looked at the working management trend and its influence
on profitability (Marc, 2003; Raheman& Nasr, 2007; Gill, Biger, &Mathur, 2010; Sharma, 2016;
Nadar, Navalkha, Nair, &Damani, 2017).

Financial ratios may be used to assess not just interrelations inside a company, but also interrelations
between firms. Researchers have discovered a way to classify businesses into categories based on
similar characteristics. The trend of different financial parameters may also be utilised as a foundation
for industry creation. This allows investors to forecast the impact of every occurrence on the industry
in a complete way (Gupta &Huefner, 1972).

Valuation

Since the 1990s, valuation research has been conducted utilising financial statement-based
information to assess the stock or business value. Researchers have sought to assess a company's
underlying structure by identifying pertinent ratios. (Nissim& Penman, 2001; Lee, 1999).

Financial ratios, in combination with non-financial indicators such as the market price, may help
stakeholders determine an entity's worth. Multiples are ratios in which one of the components is the
share market price. Numerous multiples, such as price to earnings ratios and price to book value
ratios, have played an important role in various studies. These multiples have proved quite helpful in
determining a company's worth. Financial items are valued in their absolute form rather than in ratios
in the Residual Income valuation technique. Relative value, on the other hand, employs multiples.
Fundamental value-based relative valuation has also been shown to be better than future estimate-
based discounted cash flow methodologies in studies. (Barth, Beaver, & Landsman, 1998; Latta,
1999; Campbell & Shiller, 2001; Danielson &Dowdell, 2001; Carlson, Pelz, &Wohar, 2002; David E.
& Mark E., 2005; Coakley & Fuertes, 2006; Reschreiter, 2009; David E. & Mark E., 2005; David E.
& Mark E., 2005; David E. & Mark E., 2005;

The notion of Enterprise, which includes market price as a component, has spawned new multiples
such as Enterprise value to EBIT, Enterprise value to sales, and Enterprise value to assets, among
Page 35
others. These multiples have ushered in a new era of company appraisal. (Fernandez, 2017; Jia& Li,
2015).

Earnings Management

Financial ratios have also recently been used to help in the discovery of Earnings Management. To
determine if a company's financials are prepared with the goal of portraying a desired image, tools are
necessary.

Complex techniques, such as the Beneish M score and the Montier C score, use financial parameters
to help stakeholders assess the likelihood of the company's earnings management. By combining
financial statement data, Beneish (1999) created a model to detect earnings manipulators. Several
research have shown that the Beneish M score can uncover earnings manipulators in a variety of
economies (Herawati, 2015; Kamal et. al., 2016; Ofori, 2016; Rahimian, & Haji, 2019). Montier's
(2008) C score has become a crucial stage in the examination of earnings management. To achieve the
goal, the C score additionally considers unique financial statement-based factors.

Limitations of financial ratios

Proliferation of Ratios

There has been a growth of ratios because they indicate the proportionate relationship between
various financial factors. Initially, a researcher published about 40 ratios in 1925. For numerous
stakeholders, the rise of a variety of financial ratios to indicate links among various financial variables
has proved problematic (Bhattacharya, 2007). It would be naive to believe that all of the ratios will
provide the user with unique information. It would take a lot of time and effort to analyse all of the
financial ratios. Conducting analysis with the premise that all ratios are relevant for all sectors may
result in an incorrect result. The information offered by ratios would change depending on the
industry. Various models, such as the Altman z-score and the F-score, are general in nature and hence
fail to account for ratio redundancy.

As a result, there is a need to minimise the number of ratios to a handful that give the majority of the
information and are sector specific (Gupta &Huefner, 1972; Chen &Shimerda, 1981; Shivaswamy,
Hoban, & Matsumoto, 1993; Karatas et.al., 2005; Wang & Lee, 2008; De, Bandyopadhyay, &
Chakraborty, 2011; Erdogan, 2014).

Page 36
Ratios Patterns

The distributional features of financial ratios have been investigated in a number of studies. They've
shown that financial ratios don't follow a normal distribution. The occurrence of skewness, which is
induced by the existence of limited and unbounded ratios, causes this phenomena. Bounded ratios are
those in which the value of the numerator financial element cannot exceed the value of the
denominator, for example, Current Assets to Total Assets, Net Profit to Sales, and Equity to Total
Funds. As a result, parametric testing cannot be used to financial ratios. Van der Heijden, Van der
Heijden, Van der Heijden, Van der Heijden, Van

Despite this intrinsic constraint of ratios, several studies have utilised statistically flawed parametric
tests on financial ratios. In order to identify correlations between components, multiple regression and
multiple discriminant analysis have been widely used. These tests are parametric in nature, which
means that a normal distribution is required. Multiple Discriminatory Analysis, a parametric test, was
also used to calculate the Altman Z score.

Because of this, the z score has been chastised by other researchers. Joy and Tollefson (Joy
&Tollefson, 1975) As a result of their distributional features, financial ratios have limited the use of
statistical methods (Deakin, 1976; Martikainen et. al., 1995; Trigueiros, 1995; Chong, Yap, &
Mohamed, 2013; Linares, Coenders, &Vives, 2018).

Ratios Comparability

It's a frequent misunderstanding that ratios may be compared without restriction. Ratios are financial
extracts, and as such, they are subject to the limits of financials. The accounting structure in place in
each economy has a significant impact on the financials. Changes in the accounting system have
resulted in a significant disparity in financial comparability. As a result, it's impossible to compare
financials before and after a change in accounting system. Economies that don't share the same
accounting system can't be compared, either. For example, the financial developed in the United
States, which follows US GAAP, and India, which follows Indian GAAP, are quite different in nature,
and so the financial made in those two frameworks cannot be compared (Schipper, 2005; Hung
&Subramanyam, 2007; Jeanjean&Stolowy, 2008).

The influence of such a modification has been shown via research. Financial ratios are significantly
influenced when the accounting system changes during the same accounting period, according to
Page 37
studies (Cinca, Molinero, &Larraz, 2005; Liu et. al., 2013; Faello, 2015). When various accounting
procedures are permitted inside the same accounting framework, the financials' comparability suffers.
When organisations employ various accounting rules for depreciation, such as the Straight line
method or Written down value technique; FIFO or Weighted average for inventory valuation,
comparability suffers, and ratios suffer as a result. By default, financial ratios inherit the inherent
restrictions of the accounting system.

Dealing with limitation

Sector-specific ratios

The issue of many ratios may be solved by using statistical approaches to objectively select
representative ratios. In the past, researchers have used factor analysis or cluster analysis to organise
the ratios and eliminate duplication. Thus, ratios that are smaller in number yet convey the same
features of information develop as a result of the strategies. The representative ratios for various
industries in different economies would be varied. The ratios that capture the most information in that
sector become the sector's representative ratios. As a result, statistically discovered representative
ratios may aid in overcoming the Proliferation of Ratios constraint.

When empirically established representative ratios are applied, the prediction and assessment
capacities of ratios are refined (Gupta &Huefner, 1972; Chen &Shimerda, 1981; Shivaswamy, Hoban,
& Matsumoto, 1993; Karatas et.al., 2005; Wang & Lee, 2008; De, Bandyopadhyay, & Chakraborty,
2011; Erdogan, 2014).

Transformation of values

Value transformations may be used to account for the absence of normal distribution among ratios.
Through the use of log transformations and root transformations, researchers have sought to introduce
the property of normalcy. Both types of transformations have proven effective in bringing normalcy
up to a statistically significant level, despite the fact that neither can totally induce normality. As a
result, in addition to outlier elimination and transformation normalcy, ratio normality may be
accomplished, allowing the researcher to employ parametric tests (Deakin, 1976; Martikainen et. al.,
1995; Trigueiros, 1995; Chong, Yap, & Mohamed, 2013; Linares, Coenders, &Vives, 2018).

Page 38
 CHAPTER-4

RESEARCH METHODOLOGY

Page 39
4.1 RESEARCH METHODOLOGY

A descriptive and qualitative method is used by the researcher. When performing research, secondary
sources are used. Secondary materials such as books, journals, and articles are mostly used to describe
the theoretical framework. The research offers the author's personal viewpoint as well as the
viewpoints of a few well-known writers. The work creates a cross-section to make the problem more
apparent. The research is divided into numerous stages.

4.2 DATA COLLECTION

Major source of data collection is secondary data.

Primary Data:Data created by the researcher, such as surveys, interviews, and experiments, that are
specifically meant to help the researcher understand and solve the study topic at hand.

Secondary Data:As part of organisational record keeping, using existing data created by huge
government institutions, healthcare facilities, and so on. The information is then pulled from a variety
of different data files.

In performing research, secondary sources are mostly used. Secondary materials such as books,
journals, and articles are mostly used to describe the theoretical framework.

4.3 INCLUSION CRITERIA (FOR SECONDARY DATA)

There are no relevant unpublished works on the topic area, such as conference proceedings, that are
considered for inclusion in the systematic literature review. The research will only analyse articles
published in journals with a high impact factor. Articles with significant content highlighting regional
and local customs and cultures, on the other hand, have been examined for inclusion. This study also
took into account thesis studies. Accepted or rejected articles are labelled as such. Rejected papers are
omitted due to a lack of details regarding the study strategy and methods.

Page 40
4.4 RESEARCH DESIGN

The researcher uses a qualitative and descriptive technique, which allows him to collect, analyse, and
interpret the data set that was utilised to explain the underlying circumstances that led to the necessity
for this study.

4.5 NATURE OF DATA

The data for this research was gathered from secondary sources. Annual bank reports, websites, and
journals are among the sources.

4.6 LIMITATIONS OF THE STUDY

 Only Aestec Lifesciences Limited is the subject of this investigation.

 Only five years of financial data were used in the research (2017-2021).
 The research is entirely based on secondary information.

Page 41
 CHAPTER-5

DATA ANALYSIS

AND

FINDINGS

Page 42
Unclaimed/ Unpaid Dividend

HIGHLIGHTS OF FINANCIAL PERFORMANCE:

Page 43
5.1 BALANCE SHEET

Particulars Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

Months 12 12 12 12 12

Source Of Info (AR = Annual Report, PR =

AR AR AR AR AR
Press Release)

FaceValue 10.00 10.00 10.00 10.00 10.00

No. of Equity Shares (in Lacs) 195.88 195.68 195.53 195.28 195.13

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 19.59 19.57 19.55 19.53 19.51

Total Share Capital 19.59 19.57 19.55 19.53 19.51

Reserves and Surplus 289.18 226.33 182.16 150.12 118.51

Total Reserves and Surplus 289.18 226.33 182.16 150.12 118.51

Employees Stock Options 0.42 0.67 0.77 0.00 0.00

Total Shareholders Funds 309.18 246.57 202.49 169.65 138.02

Minority Interest 0.14 0.33 0.31 0.28 0.15

NON-CURRENT LIABILITIES

Page 44
 Long Term Borrowings 40.00 0.00 0.00 0.25 0.40

Deferred Tax Liabilities [Net] 5.47 6.14 9.25 4.45 1.23

Long Term Provisions 0.52 0.32 0.23 0.17 0.07

Total Non-Current Liabilities 45.99 6.46 9.48 4.86 1.70

CURRENT LIABILITIES

Short Term Borrowings 147.03 98.71 175.67 124.17 126.00

Trade Payables 124.81 202.39 63.25 99.93 57.07

Other Current Liabilities 49.80 16.72 9.52 13.84 10.16

Short Term Provisions 0.63 0.54 0.36 0.44 0.50

Total Current Liabilities 322.28 318.36 248.80 238.39 193.72

Total Capital And Liabilities 677.59 571.72 461.08 413.18 333.59

ASSETS

NON-CURRENT ASSETS

Tangible Assets 211.55 192.06 164.88 112.30 99.43

Intangible Assets 1.13 1.57 2.07 2.77 3.51

Capital Work-In-Progress 111.68 22.11 18.63 41.78 7.56

Intangible Assets Under Development 4.04 2.00 0.35 0.09 0.00

Page 45
 Fixed Assets 328.39 217.73 185.93 156.94 110.50

Non-Current Investments 0.01 0.01 0.01 0.01 0.01

Long Term Loans And Advances 3.34 2.54 2.55 2.05 1.44

Other Non-Current Assets 15.42 19.69 24.12 22.51 23.28

Total Non-Current Assets 347.16 239.97 212.60 181.50 135.22

CURRENT ASSETS

Inventories 106.09 121.17 92.85 78.48 65.55

Trade Receivables 187.15 160.84 121.81 123.15 110.66

Cash And Cash Equivalents 1.57 1.49 1.48 1.50 4.23

Short Term Loans And Advances 0.08 28.91 0.05 0.02 0.08

OtherCurrentAssets 35.54 19.34 32.29 28.53 17.85

Total Current Assets 330.43 331.75 248.48 231.68 198.37

Total Assets 677.59 571.72 461.08 413.18 333.59

OTHER INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 233.75 274.87 124.29 121.83 122.32

Page 46
 BONUS DETAILS

Bonus Equity Share Capital 8.57 8.57 8.57 8.57 8.57

NON-CURRENT INVESTMENTS

Non-Current Investments Unquoted Book

0.01 0.01 0.01 0.01 0.01
Value

5.2 FINANCIAL RATIOS

Particulars Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

Months 12 12 12 12 12

Source Of Info (AR = Annual

AR AR AR AR AR
Report, PR = Press Release)

FaceValue 10.00 10.00 10.00 10.00 10.00

PER SHARE RATIOS

Basic EPS (Rs.) 33.23 24.29 18.28 17.88 9.81

Diluted EPS (Rs.) 33.21 24.27 18.26 17.84 9.78

Cash EPS (Rs.) 46.32 36.13 28.19 25.46 16.84

Book
Value[Excl.RevalReserv]/Share 157.91 126.17 103.72 87.02 70.81
(Rs.)

Page 47
 Book
157.91 126.17 103.72 87.02 70.81
Value[Incl.RevalReserv]/Share (Rs.)

Revenue From Operations / Share

283.28 267.07 220.38 188.24 153.07
(Rs.)

PBDIT / Share (Rs.) 61.00 49.63 44.82 39.38 33.45

PBIT / Share (Rs.) 47.90 37.79 34.92 31.86 26.43

PBT / Share (Rs.) 45.47 31.35 28.59 28.53 14.73

Net Profit / Share (Rs.) 33.22 24.29 18.29 17.94 9.83

NP After MI And SOA / Share (Rs.) 33.21 24.28 18.28 17.87 9.80

PROFITABILITY RATIOS

PBDIT Margin (%) 21.53 18.58 20.33 20.92 21.85

PBIT Margin (%) 16.90 14.14 15.84 16.92 17.26

PBT Margin (%) 16.05 11.73 12.97 15.15 9.62

Net Profit Margin (%) 11.72 9.09 8.30 9.53 6.42

NP After MI And SOA Margin (%) 11.72 9.09 8.29 9.49 6.40

Return on Networth / Equity (%) 21.03 19.26 17.64 20.57 13.85

Return on Capital Employeed (%) 26.40 29.18 32.16 35.59 36.87

Return On Assets (%) 9.60 8.31 7.75 8.44 5.73

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 Long Term Debt / Equity (X) 0.12 0.00 0.00 0.00 0.00

Total Debt / Equity (X) 0.60 0.40 0.86 0.73 0.91

Asset Turnover Ratio (%) 0.88 1.01 0.98 0.98 0.89

LIQUIDITY RATIOS

Current Ratio (X) 1.03 1.04 0.99 0.97 1.02

Quick Ratio (X) 0.69 0.66 0.62 0.64 0.68

Inventory Turnover Ratio (X) 3.03 3.12 3.44 3.11 2.62

Dividend Payout Ratio (NP) (%) 4.51 6.17 8.20 8.38 0.00

Dividend Payout Ratio (CP) (%) 3.23 4.15 5.32 5.90 0.00

Earning Retention Ratio (%) 95.49 93.83 91.80 91.62 0.00

Cash Earning Retention Ratio (%) 96.77 95.85 94.68 94.10 0.00

COVERAGE RATIOS

Interest Coverage Ratio (%) 25.15 7.71 7.08 7.21 5.33

Interest Coverage Ratio (Post Tax)

14.69 4.77 3.89 3.90 3.43
(%)

VALUATION RATIOS

Enterprise Value (Cr.) 2144.94 880.19 1227.61 1259.13 1299.83

EV / Net Operating Revenue (X) 3.87 1.68 2.85 3.43 4.35

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 EV / EBITDA (X) 17.95 9.06 14.01 16.37 19.92

MarketCap / Net Operating Revenue

3.53 1.50 2.44 3.09 3.94
(X)

Retention Ratios (%) 95.48 93.82 91.79 91.61 0.00

Price / BV (X) 6.34 3.17 5.20 6.70 8.53

Price / Net Operating Revenue (X) 3.53 1.50 2.44 3.09 3.94

EarningsYield 0.03 0.06 0.03 0.03 0.01

The COVID-19 epidemic has caused major economic disruption in India and other countries. Many
industries' yearly production is likely to be lower than the previous year because to the severe
lockdown implemented at the start of the Financial Year 2020-21. However, since the Company
manufactures agrochemical intermediates that are used in the production of critical commodities, its
manufacturing units were able to operate during the lockdown after getting the appropriate licences
from the relevant authorities.

As a consequence, the effect of COVID-led lockdown on the Company's business performance for the
Financial Year 2020-21 is minimal. At factories, the Company ensured the safety of its employees and
business partners by employing safeguards such as the use of masks/gloves, regular temperature
screening, disinfectant tunnels, social distancing, limiting the workforce, and conducting
comprehensive factory sanitization on a regular basis. The company effectively used technology for
smooth connections and conducted business with numerous stakeholders through virtual meetings.

For the Financial Year 2020-21, the company expects to sustain its good performance. While overall
income from operations increased by 6.17 percent year over year, profit before taxes increased by
45.18 percent. Enterprise sales accounted for the majority of revenue increase by segment. Domestic
company has contributed to revenue development from a geographical standpoint. Going ahead, the
Company will continue to concentrate on improving production capabilities in order to capitalise on

Page 50
new developing possibilities in the agrochemical business, both domestically and internationally. As
of March 31, 2021, Godrej Agrovet Limited, the Holding Company, owned 1,22,04,016 Equity
Shares in the Company, or 62.30 percent.

 Because of improved profitability and a dramatic drop in interest expenditures, the

Consolidated Interest Coverage Ratio is higher than in the preceding Financial Year 2019-20.
Interest expenditures benefit from the Company's considerably reduced interest rates in the
Financial Year 2020-21.
 The Consolidated Debt Equity Ratio has risen as a result of rising short- and long-term
borrowings.
 Because of greater working capital needs, short-term borrowings have grown, while long-
term borrowings have increased to fund capex projects.
 Because of increased net profits as a consequence of the Company's improved performance in
the current Financial Year 2020-21, the Consolidated Net Profit Margin is higher than in the
previous Financial Year 2019-20.

Other major financial ratios have not changed significantly (i.e. by 25% or more) during the preceding
Financial Year.

Opportunities & Threats:

Opportunities

Exports account for 50% of the value of the Indian agrochemical business, hence exports are likely to
increase at a higher rate in the future years than the domestic market. As global firms explore for
alternative production sites outside of China, Indian manufacturers, such as Company, will have a big
potential. This shift/diversification of the industrial base is expected to benefit organisations with
strong expertise in technical or intermediate chemistry. Threats

The erratic and bad South West monsoon might have a negative influence on agrochemical company
demand. Companies in this industry are also at danger from a prolonged El Nino. Because a
substantial portion of the Company's activities rely on exports and need raw materials that may not be
accessible in the local market, there is a risk of non-availability of these products from overseas
markets as well as a risk of foreign currency volatility. If the COVID-19 pandemic lasts longer than
planned, it will have an effect on sales, raw material availability, and labour.
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Risks and Concerns:

Because Indian agriculture is so reliant on the South West monsoon, any variation from the regular
monsoon has a significant influence on domestic agrochemical consumption. Another risk that might
affect the company's ability to reach its production timetables is timely permission from government
authorities for the plant's operations to begin.

Internal Control Systems and their Adequacy:

The company is devoted to improving the efficacy of internal control systems for business processes
in terms of operations, financial reporting, and adherence to relevant laws and regulations.

Internal controls are in place to guarantee that all of the company's assets are secured and protected
against loss due to improper use or disposal, and that all transactions are properly approved,
documented, and reported.

Outlook:

The need for triazole fungicides is robust both globally and domestically, benefiting firms who serve
to this market. The company is also concentrating on expanding its triazole fungicide product range
and building a strong pipeline for contract production. For contract manufacturing, international
corporations are exploring India as an alternative to China. This presents a big potential for local firms
with excellent technological skills, such as Company. In addition, once the new herbicide facility is
operating, the company will attempt to capitalise on prospects in the herbicide industry.

Material Developments in Human Resources / Industrial Relations Front, including Number of

People Employed:

The Company would like to express its heartfelt gratitude for the important contribution and support
of its workers to the Company's success and development. Professionals with a track record make up
the management team. As of the 31st of March 2021, the Company has 473 permanent workers on its
payroll. During the Financial Year 2020-21, there have been no significant changes in human
resources.

The company continues to be focused on and attentive to the importance of human resources in
maximising performance in all areas of operations, and its labour relations remain friendly.

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Review of operations / state of affairs of the company and its subsidiaries:

Review of operations / state of affairs of the company:

The company produces agrochemical active ingredients (technical), bulk and formulations, and
intermediate goods, which it sells in India and exports to around 24 countries.

During the Financial Year 2020-21, the company maintained its great performance, with Revenue
from Operations increasing by 6.2 percent and Profit Before Tax (PBT) increasing by 45.2 percent.

Despite COVID problems during the Financial Year 2020-21, the Company geared up and took care
of the situation from the start of the year, resulting in solid delivery. Going ahead, the Company will
maintain its development trajectory, focusing on expanding current business while continuing to
develop both export and domestic markets, as well as improving its production capabilities to take
advantage of new agrochemical sector prospects. To ensure continued commercial development, the
company will continue to offer new goods for global clients.

During the Financial Year 2020-21, the nature of the Company's business did not alter.

Review of operations / state of affairs of the subsidiaries of the company:

During the Financial Year (F.Y.) 2020-21, the company had the following 3 (three) subsidiaries:

(i) Behram Chemicals Private Limited:

Behram Chemicals Private Limited reported Profit Before Tax of '8.91 Lakh for the Financial Year
ending March 31, 2021, compared to Profit Before Tax of '8.44 Lakh for the preceding Financial Year
2019-20.

(ii) Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia):

Comercializadora Agricola Agroastrachem Cia Ltda reported Profit/(Loss) Before Tax of '(0.10) Lakh
for the year ended 31st March, 2021, compared to Profit/(Loss) Before Tax of'Nil for the preceding
year ended 31st March, 2020.

(iii) Astec Europe Sprl (Belgium, Europe):

Page 53
In accordance with a Share Purchase Agreement made on August 31, 2020, the Company sold its
entire equity investment in Astec Europe Sprl (a 50.10 percent subsidiary of the Company in Belgium,
Europe) during the Financial Year 2020-21. As a result, Astec Europe Sprl ceased to be a subsidiary
of the Company on September 1, 2020.

Astec Europe Sprl reported Profit/ (Loss) Before Tax of'(0.55) Lakh for the period ended 31st August,
2020, compared to Profit/ (Loss) Before Tax of'(1.09) Lakh for the previous year ended 31st March,
2020.

Dividend

The Board of Directors has recommended a Final Dividend of 15% (fifteen percent) on the
Company's Equity Share Capital, i.e., '1.50 (Rupee One and Paise Fifty Only) per Equity Share of
Face Value of '10/- (Rupees Ten Only) each for the Financial Year ended 31st March, 2021, subject to
approval by the Shareholders at the Company's ensuing 27th (twenty-seventh) Annual General

The Dividend will be paid to Shareholders whose names appear in the Company's Register of
Members as of Friday, July 23, 2021, and in the case of shares held in dematerialized form, it will be
paid to Shareholders whose names are listed as beneficial owners by National Securities Depository
Limited (NSDL) and Central Depository Services (India) Limited (CDSL) as of that date.

The Company's Shareholders are reminded that under the Income Tax Act of 1961, as modified by the
Finance Act of 2020, dividends paid or distributed by the Company after April 1, 2020 are taxable in
the hands of the Shareholders. As a result, at the time of payment of the Final Dividend, the Company
will be obligated to deduct Tax at Source (TDS). The Shareholders are urged to read the instructions
provided in the Notes to the Notice convening the 27th (Twenty-Seventh) Annual General Meeting of
the Company, which constitute a part of this Annual Report, in order to allow the Company to assess
and deduct the relevant TDS as applicable.

The delivery of dividends for the current fiscal year is consistent with the company's dividend
distribution policy.

The Company's Dividend Distribution Policy is made accessible on the Company's website in
accordance with Regulation 43A of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015.

Page 54
Transfer to reserves

During the Financial Year ending March 31, 2021, the Board of Directors does not intend to transfer
any funds to reserves.

Particulars of loans, investments and guarantees

The Notes to the Financial Statements in this Annual Report provide information on loans,
investments, and guarantees covered under Section 186 of the Companies Act, 2013.

FINANCE:

The company's treasury operations have remained efficient, and it has been able to borrow cash for its
operations at competitive rates.

ICRA Limited has given Credit Ratings to the Company's 53,400 LOC and 15,000 LOC of
Commercial Paper Program as of March 31, 2021, as follows: -

1. Long-term rating at “[ICRA] AA-” (pronounced “ICRA double A minus”)

2. Short-term rating at “[ICRA] A1+” (pronounced “ICRA A one plus”)

3. Commercial Paper Programme at “[ICRA] A1+” (pronounced “ICRA A one plus”)

Information systems:

To ensure high-level protection to corporate data, the company has developed Information Systems
(IT) security technologies and procedures. It has upgraded its core ERP and network infrastructure to
ensure business continuity and high availability of company data, as well as launching a digital
platform to track and enhance production accuracy and efficiency. In order to ensure corporate
security and continuity, the company has implemented procedures to attain high levels of compliance.

Share capital

As of March 31, 2021, the Company's authorised equity share capital was '25,00,00,000/- (Rupees
Twenty Five Crore Only),' consisting of 2,50,00,000 (Two Crore Fifty Lakh) Equity Shares with a
Face Value of '10/- (Rupees Ten Only) apiece.

Page 55
As of March 31, 2021, the Paid-Up Equity Share Capital was '19,58,75,550/- (Rupees Nineteen Crore
Fifty Eight Lakh Seventy Five Thousand Fifty Only), consisting of 1,95,87,555 (One Crore Ninety
Five Lakh Eighty Seven Thousand Fifty Five) Equity Shares with a Face Value of '10/- (Rupees Ten
Only) each.

During the Financial Year under review, the Company allotted 2,000 (Two Thousand) Equity Shares
of Face Value of '10/- (Rupees Ten Only) each at an exercise price of'34/- (Rupees Thirty Four Only)
each under Employees Stock Option Plan, 2012 (ESOP 2012) and 17,200 (Seventeen Thousand Two
Hundred) Equity Shares of Face Value of '10/- (Rupees Ten Only) each at an exercise

Observation: - On March 19, 2021, the Compensation Committee of the Board of Directors of the
Company issued 9,200 (Nine Thousand Two Hundred) equity shares with a face value of '10/-
(Rupees Ten Only) apiece to specific Company workers.

With the aforementioned allotment, the Company's total Paid-Up Equity Share Capital increased from
1,95,78,355 (One Crore Ninety Five Lakh Seventy-Eight Thousand Three Hundred and Fifty Five)
Equity Shares of Face Value of '10/- (Rupees Ten Only) each to 1,95,87,555 (One Crore Ninety Five
Lakh Eighty Seven Thousand Five Hundred Fifty Five) Equity Shares of Face Value of

The aforesaid allotment's listing applications were filed to BSE Limited and National Stock Exchange
of India Limited ("the Exchanges") on March 30th and March 31st, 2021, respectively, and the
Exchanges' Trading Approvals were obtained on March 31st, 2021. The Company has previously
received BSE Limited's In-Principle Approval dated March 1, 2016 and National Stock Exchange of
India Limited's In-Principle Approval dated February 25, 2016. After March 31, 2021, the
aforementioned 9,200 (nine thousand two hundred) equity shares were credited to the National
Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL)
systems.

Management discussion and analysis report

The Annual Report includes the Management Discussion and Analysis Report for the current financial
year, as required by Regulation 34(2) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.

Holding company

Page 56
Godrej Agrovet Limited is the Holding Company of the Company and is a public company (listed on
the BSE Limited and the National Stock Exchange of India Limited). It is involved in the production
and sale of Animal Feeds, Agricultural Inputs, and Oil Palm, among other things. As of March 31,
2021, Godrej Agrovet Limited owned 62.30 percent of the Paid-up Equity Share Capital of the
Company [i.e., 1,22,04,016 (One Crore Twenty Two Lakh Fourteen) Equity Shares with a Face Value
of '10/- (Rupees Ten Only) apiece].

Godrej Agrovet Limited, in turn, is a subsidiary of the publicly traded Godrej Industries Limited
(listed on BSE Limited and National Stock Exchange of India Limited). Godrej Industries Limited is
hence the Company's Ultimate Holding Company.

Page 57
 CHAPTER- 6

RECOMMENDATION
AND
CONCLUSION

Page 58
6.1 RECOMMENDATIONS

AstecLifeSciences Ltd. (the Company) is a public limited company based in Mumbai, India, with its
registered office at Godrej One, 3rd Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (East),
Mumbai - 400 079. On January 25, 1994, the Company was formed under the Companies Act of
1956. The company produces a variety of agrochemical active chemicals as well as medicinal
intermediates. B. Preparation Methodology (1) Statement of Ind AS Compliance The accompanying
financial statements have been prepared in accordance with generally accepted accounting principles
in India, including the Indian Accounting Standards (Ind AS) as set forth in the Companies (Indian
Accounting Standards) Rules, 2015, as amended and notified under section 133 of the Companies
Act, 2013, (the an ACTaTM), as well as other relevant provisions of the Act. The Audit Committee
evaluated the financial accounts for the year ended March 31, 2021, and the Board of Directors
approved them at its meeting on April 30, 2021. (2) Cost conventions in the past Except for the
following, the financial statements have been compiled on a historical cost basis: - certain financial
assets and liabilities (including derivative instruments) are valued at fair market value (refer to
Accounting policy regarding financial instruments); defined benefit plans - plan assets are valued at
fair market value less the present value of the defined benefit obligation; and share-based payments
are valued at fair market value. (3) The Indian Rupee (INR) is the functional and presentation
currency of the firm. Items included in the financial statements of the company are measured using
the currency of the principal economic environment in which the organisation works (a the functional
currencya). Unless otherwise stated, all figures have been rounded to the nearest lakh. The
management has made various estimates and assumptions in preparing financial statements in
accordance with Ind AS, which need subjective and sophisticated judgements. These decisions have
an impact on the application of accounting policies, as well as the reported amounts of assets,
liabilities, income, and expenses, as well as the disclosure of contingent liabilities at the date of the
statement of financial position and the reported amount of income and expenses for the reporting
period. Future events seldom unfold precisely as predicted, necessitating revisions to the best
forecasts, since actual outcomes may vary from these estimates depending on assumptions or
situations. Estimates and underlying assumptions are constantly scrutinised. Accounting estimates are
revised and recognised prospectively. In particular, judgement, estimations, and assumptions are
necessary for: (1) Calculation of expected usable lifetimes The life stipulated in Schedule II of the
Companies Act, 2013 is used to calculate the useful lives of property, plant, and equipment. When the

Page 59
useful lives of tangible assets differ from those prescribed in Schedule II, they are based on technical
advice, taking into account the nature of the asset, the estimated usage of the asset, the operating
conditions of the asset, previous history of replacement, anticipated technological changes,
manufacturersaTM warranties, and maintenance support. (2) Defined benefit liabilities are recognised
and measured. Actuarial assumptions are used to calculate the liability deriving from a defined benefit
plan. Discount rate, pay escalation patterns, actuarial rates, and life expectancy are all important
actuarial assumptions. The discount rate is calculated using market rates on government bonds at the
conclusion of the reporting period. The underlying bonds' maturity dates match to the expected
maturity of the post-employment benefit liabilities. The defined benefit obligation is susceptible to
changes in these assumptions because to the intricacies involved in the valuation and its long-term
nature. At the end of each reporting period, all assumptions are evaluated. (3) Deferred tax assets are
recognised. For the future tax effects of transitory disparities between the carrying values of assets
and liabilities and their respective tax bases, as well as unutilized business loss and depreciation carry-
forwards and tax credits, deferred tax assets and liabilities are recorded. Deferred tax assets are
recorded to the extent that future taxable income is likely to be available to offset deductible
temporary differences, unused tax losses, depreciation carryforwards, and unused tax credits. (4)
Other provisions' recognition and measurement Other provisions are recognised and measured based
on an evaluation of the likelihood of a resource outflow, as well as historical experience and
conditions known at the balance sheet date. As a result, the actual outflow of resources at a later
period may differ from the amount estimated in other clauses. (5) Long-term financial assets and
obligations are discounted. On first recognition, all financial assets and liabilities must be evaluated at
fair value. The effective interest technique is used to collect interest on financial commitments and
assets that must be assessed at amortised cost later. (6) Employee stock options should be valued
fairly. The Black-Scholes model, which is used to value options, is used to determine the fair value of
employee stock options. Under this option pricing model, key assumptions used with regard to
predicted volatility include share price, estimated dividends, and discount rate. (7) Determining if a
lease is included in a contract The Company evaluates whether or not an agreement is or includes a
lease at the outset. The Company divides payments and other consideration required under the
arrangement into those for the lease and those for other aspects on the basis of their proportionate fair
values at the time of inception or review of an arrangement that involves a lease. If the Company
determines that reliably separating payments from a finance lease is impractical, an asset and a
liability are recorded at the fair value of the underlying asset; the liability is then reduced as payments

Page 60
are made, and an imputed finance cost on the liability is recorded using the Company incremental
borrowing rate. Also, in the event of an operating lease, regard all payments as lease payments. (8)
Financial instrument fair value Derivatives are held at their fair market value. Foreign currency
forward contracts are an example of derivatives. Fair value reports issued by individual bankers are
used to establish the fair value of foreign currency forward contracts. (9) Sales Return Liability
Accruals for expected product returns are deemed by the Company to be a credible projection of
future sales returns since they are based on previous experience of actual sales returns and
adjustments for the present market condition. D. Calculation of fair values Fair value assessment is
required by the Company's accounting rules and disclosures for both financial and non-financial
assets and liabilities. In terms of fair value measurement, the Company has a well-established
management structure. Significant unobservable inputs and value changes are reviewed by
management on a regular basis. If third-party information is used to calculate fair values, such as
broker quotes or pricing services, management evaluates the evidence obtained from the third parties
to support the conclusion that the valuations meet the requirements of Ind AS, including the level in
the fair value hierarchy at which the valuations should be classified. The Company considers
observable market data as much as practicable when determining the fair value of a financial asset or
a financial obligation. The inputs utilised in valuation methodologies are used to categorise fair values
into various levels in a fair value hierarchy, as shown below. - Level 1: quoted pricing (unadjusted)
for equivalent assets or liabilities in active marketplaces. - Level 2: inputs other than stated prices
contained in Level 1 that are directly (i.e. as prices) or indirectly observable for the asset or obligation
(i.e. derived from prices). - Level 3: asset or liability inputs that are not dependent on market data that
may be seen (unobservable inputs). If the inputs used to calculate the fair value of an asset or a
liability fall into various levels of the fair value hierarchy, the overall fair value measurement is
classified at the same level as the lowest level input that is important to the entire calculation. At the
conclusion of the reporting period in which the change occurred, the Company recognises transfers
between levels of the fair value hierarchy. 1 Equity shares have rights, privileges, and limits
associated to them. Shares of Stock: There is just one class of equity shares in the company, each with
a par value of Rs. 10 per share. Each Shareholder is entitled to one vote for each share they own.
Dividends are paid to all Equity Shareholders in proportion to their shareholdings. The Board of
Directors' recommended dividends must be approved by the Shareholders at the next Annual General
Meeting. In the case of a liquidation, Equity Shareholders are entitled to receive the Company's
residual assets in proportion to their ownership, after any preferential payments have been distributed.

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Reserve for capital redemption For the purchase of shares, a capital redemption reserve was
established. The capital redemption reserve may be used to issue fully paid-up bonus shares.
Employee stock options are still available. The grant date fair value of options awarded to employees
under the Company stock option plan is included in the employee stock options outstanding. Premium
on Securities Securities Premium is a term used to describe the premium obtained when shares are
issued. The reserve is put to good use in line with the Companies Act of 2013. Reserve for cash flow
hedges Hedging instruments are used by the Company to control the foreign currency risk associated
with foreign currency borrowings. The Company employed foreign currency forward contracts, which
are categorised as cash flow hedges, to manage foreign currency risk. The change in fair value of the
hedging instrument is recognised in the cash flow hedge reserve to the extent that these hedges are
effective. When the hedged item impacts the profit and loss, amounts recognised in the cash flow
hedge reserve are reclassified to the statement of profit and loss. Note 2.1: Bank cash credit is
repayable on demand and bears a 0.25 percent MCLR interest rate (Previous year MCLR 1.10 percent
). Note 20.2: Banks provide foreign currency loans at a rate of LIBOR 65 basis points (last year's rate
was 75 basis points) with a 180-day repayment period (Previous year - 30 days). Note 2.2: Buyers
credit has a 3 to 6 month LIBOR 40 to 120 bps interest rate and is repayable in 6 months. Note 2.3:
Bank cash credit is repayable on demand and bears interest at the MCLR of 0.55 percent. Note 2.4:
Banks charge 7.45 percent to 8.45 percent interest on working capital loans in rupees (Previous year -
7.50 percent to 7.85 percent ). These loans are due on separate dates throughout the course of three
months. Note 2.5: Commercial Paper has a rate of interest ranging from 6.95 percent to 8.49 percent
and is due in three months (Previous year 7.08 percent to 7.25 percent ). Security specifics: All
secured current borrowings (Note 20 above) have a first paripassu charge on the Company's current
and moveable assets, including inventories and future receivables. As of the Balance Sheet date, the
firm has not defaulted on any loan or interest payments. Note 3.1: The Company recognised micro
and small firms as defined by the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act) based on information available to the Company, and the auditors relied on that
information. As a result, as of March 31, 2020, Rs. 102.64 lakh is owed to Micro, Small, and Medium
Enterprises on account of principal or interest. Note 4.1: Based on previous experience, the Company
makes a provision for a projected sales return. Returns on sales are usually anticipated within a year.
Note 5.1: With effect from April 1, 2018, the amount of Export Incentives has been recognised as
aOtherIncomea as a result of clarifications released by The Institute of Chartered Accountants of India
(ICAI). These export incentives were formerly recorded in the Statement of Profit & Loss as

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aRevenue from Operations - Other Operating Revenuea. This has no bearing on the profit before taxes
stated (PBT). (a) Note 6: Spending on corporate social responsibility The current year's total
spending on corporate social responsibility initiatives is Rs. 57.53 lakh (previous year Rs. 34.44 lakh)
Note 7.1 Diluted earnings per share is calculated using profit allocated to equity shareholders and the
weighted average number of outstanding equity shares after adjusting for the impact of any potentially
dilutive equity shares. Employee perks (Note 8) The following post-employment programmes in India
are supported by the company. Plan with a Defined Contribution: According to local requirements,
the Company makes provident fund contributions to publicly run provident funds, which are recorded
as a cost in the Statement of Profit and Loss for the period in which the employee performs the
corresponding service. Further than the donations to the proper authorities, there are no other
requirements. In the Statement of Profit and Loss for the year ended March 31, 2021 (previous year
Rs. 56.08 lakh), the Company recorded a provision for provident fund contribution of Rs. 68.05 lakh
(previous year Rs. 56.08 lakh). Defined Benefit Plan (DBP): A DBP is a kind of The Company's
gratuity and leave encashment/long-term paid absences programmes are both defined benefit plans.
The anticipated unit credit approach is used to actuarially assess the Company's liabilities for defined
benefit plans. The Company's net obligations in respect of such plans are calculated by estimating the
amount of future benefit that the employees have earned in return for their services, discounting that
benefit to determine its present value in the current and prior periods, and deducting the fair value of
the plan asset. Other Comprehensive Income accounts for actuarial profits and losses. The Company
has a defined benefit plan that allows for gratuity payments in compliance with the terms of the
Payment of Gratuity Act, 1972. Employees who are qualified for the scheme will receive a lump sum
gratuity payout upon retirement or termination of service. The figures are based on the employee's
most recent income and years of service with the company. The Company makes yearly payments to
the Group Gratuity cum Life Assurance Schemes operated by the LIC of India, a funded defined
benefit plan for eligible workers, based on an actuarial estimate of the gratuity plan's liabilities. The
Company's contributions to the gratuity system are managed by Trustees. As of March 31, 2021, the
most current actuarial valuation of the defined benefit obligation, as well as the fair assessment of the
plan assets in respect to the gratuity scheme, had been completed. The Projected Unit Credit Method
was used to calculate the present value of the defined benefit commitments, as well as the current and
previous service costs. The following table shows the specifics of the employee benefit obligation and
plan assets as of the balance sheet date, based on the actuarial valuation produced in this regard: Other
long-term employment advantages include: Employees are paid for accumulated leave at the rate of

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daily wage for each day of accrued leave when they die, quit, or retire. Based on actuarial assessment
using the anticipated accrued benefit approach, the charge for compensated absences for the year
ending March 31, 2021 is Rs. 11.28 lakh (Previous year : Rs. 11.71 lakh). Terminal Benefits: On the
Statement of Profit and Loss, all terminal benefits, including voluntary retirement compensation, are
totally written off. Financial Instruments: Fair Values and Risk Management (Note 9) Accounting
categorization and fair values (Note 36.1). Below are the carrying amounts and fair values of financial
assets and liabilities, as well as their levels in the fair value hierarchy. If the carrying amount is a
reasonable approximation of fair value, it does not contain the fair value information for financial
assets and financial liabilities not valued at fair value. Fair value is determined using a valuation
approach. The fair value of forward foreign exchange contracts is calculated using forward exchange
rates at the balance sheet date. The fair value of the other financial instruments is calculated using
discounted cash flow analysis. All of the resultant fair value estimations are included in level 2, where
fair values are calculated using present values and discount rates are modified for counterparty or own
credit risk. C. Managing financial risks Financial instruments expose the Company to the following
risks: - Credit risk; - Liquidity risk; - Market risk; - Currency risk; i. Risk management framework
The Company's risk management system is established and overseen by the company's board of
directors. The Risk Management Committee was created by the board of directors and is responsible
for formulating and monitoring the Company's risk management policies. The committee's operations
are reported to the board of directors on a regular basis. The Company's risk management policies are
in place to identify and analyse the company's risks, create appropriate risk limits and controls, and
track risks and adherence to those limitations. Risk management policies and processes are evaluated
on a regular basis to account for changes in market circumstances and Company operations. The
Company strives to create a disciplined and constructive control environment in which all workers
understand their roles and responsibilities via its training and management standards and processes.
The audit committee assesses management's compliance with the company's risk management
policies and processes, as well as the risk management framework's sufficiency in respect to the
Company's risks. Internal audit assists the audit committee in its supervisory responsibilities. Internal
audit undertakes both regular and adhoc reviews of risk management controls and procedures, the
results of which are reported to the audit committee. Credit Risk (Note 10.1) Credit risk refers to the
risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
satisfy its contractual commitments, and it is mostly derived from the Company's receivables from
customers, as well as loans and advances. The maximum credit exposure is represented by the

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carrying value of the following financial assets: Loans and advances, as well as trade receivables The
Company's credit risk exposure is primarily impacted by the unique features of each client as well as
the location in which it operates. Credit risk is handled via credit approvals, credit limitations, and
ongoing credit monitoring of clients to whom the Company extends credit terms in the ordinary
course of business. The Company has devised a credit policy in which each new client is assessed for
creditworthiness individually before being issued the Company's normal payment and delivery terms
and conditions. Letters of credit and a commercial general liability insurance policy from Reliance
General Insurance back up the company's sales. Individually, the firm checks the sanctioned credit
limits in relation to outstanding liabilities. As a result, the Company makes appropriate provisions
against such trade receivables as needed, and monitors them on a regular basis. The Company keeps
track of all loans and advances made and makes any necessary adjustments. The following table
shows the maximum credit risk exposure for trade and other receivables by counterparty type. Money
and money equivalents At March 31, 2021, the Company had Rs. 16.44 lakh in cash and cash
equivalents (Rs. 24.37 lakh the previous year). Cash and cash equivalents are stored with creditworthy
bank and financial institution counterparties. Liquidity risk (Note 10.2) The risk that the Company
may have trouble fulfilling its commitments related to its financial liabilities that are resolved by
providing cash or another financial asset is known as liquidity risk. The Company's approach to
managing liquidity is to ensure that it has enough liquidity to satisfy its obligations when they are due,
in both normal and stressed situations, without incurring unacceptable losses or risking harm to the
Company's image. The gross outflows shown in the table above are contractual undiscounted cash
flows pertaining to derivative financial obligations kept for risk management and not typically closed
off before contract maturity. For derivatives that are net cash-settled, the disclosure displays net cash
flow numbers, as well as gross cash intake and outflow amounts for contracts that have simultaneous
gross cash settlement. Currency Risk (Note 10.3) Market danger Market risk refers to the possibility
that changes in market pricing, such as foreign exchange rates, interest rates, and stock prices, may
have an impact on the Company's earnings or the value of its financial instrument holdings. The goal
of market risk management is to keep market risk exposures within acceptable bounds while
maximising return. To mitigate market risks, the company employs derivatives. In general, the
Company hedges financial instruments to manage profit or loss volatility. Currency volatility is a risk.
The firm works globally, and a percentage of its business is conducted in USD, EUR, and GBP. As a
result, the company is exposed to foreign currency risk as a result of its sales in foreign markets and
purchases from foreign suppliers in different foreign currencies. Purchases of products and services in

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the respective currencies, as well as derivative instruments, help to mitigate foreign currency
exchange rate risk. The corporation assesses exchange rate risk posed by foreign currency transactions
and adheres to established risk management rules, which include the use of derivatives such as foreign
exchange forward contracts to mitigate foreign currency risk. Currency risk exposure The following is
a summary of quantitative data concerning the Company's currency risk exposure as provided to
management. The remaining contractual maturities of financial obligations at the reporting date are
listed below. The figures are gross and undiscounted, and they include expected interest payments but
do not take into account the effect of netting agreements. Analysis of Sensitivity At March 31, 2021, a
reasonably conceivable strengthening (weakening) of the Indian Rupee against all other currencies
would have had an impact on the measurement of financial instruments denominated in a foreign
currency, as well as equity and profit or loss, as illustrated below. This study avoids the influence of
predicted sales and purchases by assuming that all other factors, particularly interest rates, stay
constant. Interest rate risk (Note 10.4) Fair value interest rate risk and cash flow interest rate risk are
two types of interest rate risk. If such assets/borrowings are assessed at fair value via profit or loss,
fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets
or borrowings due to interest rate movements. The risk that the future cash flows of floating interest
bearing borrowings would change due to interest rate variations is known as cash flow interest rate
risk. Interest rate risk exposure The following is the interest rate profile of the Company's interest-
bearing financial instruments as reported to management. Variable-rate instrument cash flow
sensitivity analysis A change in interest rates of 100 basis points at the reporting date would have
increased or (decreased) profit or loss by the sums mentioned below. All other factors, including
foreign currency exchange rates, are assumed to be constant in this study. The risk estimates offered
assume a 100 basis point change in the interest rate benchmark as it applies to the borrowings listed
above. This computation also assumes that the change happens at the balance sheet date and is based
on risk exposures that are still outstanding at that time. Year-end balances may not often reflect the
average amount of debt owed during the year. Hedge accounting (Note 11) The Company's risk
management approach is to hedge its foreign currency exposure in line with the exposure limitations
that are periodically recommended. To manage its currency risk, the company employs forward
exchange contracts. These contracts are often referred to as cash flow hedges. The hedging ratio is 1:1
because the forward exchange contracts are priced in the same currency as the very likely future
transaction value. The Company's policy is for the forward exchange contracts' essential terms to
match the hedged item. Based on the currency, quantity, and timing of their respective cash flows, the

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Company decides whether there is an economic link between the hedging instrument and the hedged
item. Using the hypothetical derivative technique, the Company determines whether the derivative
identified in each hedging relationship is projected to be and has been successful in balancing changes
in the cash flows of the hedged item. Changes in the timing of the hedged transactions are the major
cause of hedge ineffectiveness in these hedge arrangements. For the fiscal years ended March 31,
2021 and March 31, 2018, the Company's weighted average tax rates were 36.00 percent and 37.19
percent, respectively. Because of previous year tax adjustments of Rs. 39.63 lakh and non-deductible
tax costs, the effective tax rate for the year ended March 31, 2021 is greater than the company
domestic tax rate. If the firm has a legally enforceable right to set off current tax assets and liabilities,
and the deferred tax assets and liabilities correspond to income taxes assessed by the same tax
authority, the company offsets tax assets and liabilities. In assessing income tax provision, deferred
income tax assets and liabilities, and the recoverability of deferred income tax assets, significant
managerial judgement is needed. The recoverability of deferred income tax assets is determined by
estimating taxable revenue in each country where the relevant business operates, as well as the time
period over which the deferred income tax assets will be recovered. Deferred tax asset on indexation
advantage in respect to such assets has not been recorded since the Company does not intend to
dispose of interests in subsidiaries in the foreseeable future. Capital Management (12th Note) The
Company's policy is to maintain a solid capital basis in order to preserve investor, creditor, and
market confidence, as well as to support the business's future growth. The return on capital and the
amount of dividends paid to ordinary shareholders are both monitored by management. The board of
directors strives to strike a balance between the potential for better profits from increased borrowing
levels and the benefits and security provided by a strong capital position. The Company Capital
Management's main goal is to maximise shareholder value. The Company controls its capital structure
and adjusts it in response to changes in the economic environment and, where applicable, financial
covenant requirements. The Company measures capital using an adjusted net debtaTM to equityaTM
ratio. Adjusted net debt is defined as total borrowings less cash and cash equivalents, excluding
interest-bearing loans and borrowings. All aspects of equity are included in equity. Operating
Segment (Note 13) AstecLifeSciences Limited's consolidated financial statements include segment
information in line with Ind AS 108 aOperatingSegmentsa, hence there is no separate disclosure on
segment information in these financial statements. Note 14: Payments based on a percentage of a
company's stock Employee stock option plan (a) (ESOS,2015) Employees were hired under the
Employee Stock Option Scheme (ESOS, 2015), which was authorised by Shareholders at the

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company's 21st Annual General Meeting. Employee stock option plans are intended to incentivize all
permanent workers to provide long-term profits. Participants in the plan are given options that will
vest in four years (40 percent in the first year, 30 percent in the second year, 20 percent in the third
year, and 10% in the fourth year) from the date of grant. The Compensation Committee / Board of
Directors of the Company has the final say on whether or not to participate in the plan. The options
are exercisable for three years after they have vested. Under ESOS 2015, options are issued at the
market price on which they are offered to workers. Each option is converted into one equity share
when it is exercised. (a) Stock option plan for employees (ESOP,2012) Employee Stock Option Plan
(ESOP 2012), which was authorised by Shareholders at the Company's Extra-Ordinary General
Meeting in the year 2012, has been implemented. The employee stock option plan is intended to
incentivize all permanent workers to provide long-term profits. Participants in the plan are given
options that vest in four years (40 percent in the first year, 30 percent in the second year, 20% in the
third year, and 10% in the fourth year) after the grant date. The Compensation Committee/Board of
Directors of the Company has exclusive discretion over who is eligible to participate in the plan.
Options are exercisable for seven years after they have vested. ESOP 2012 provides for the issuance
of options at a cost of Rs. 34/- per option. Each option becomes one equity share when it is exercised.
I The value of the options that have been granted is reasonable. The table below shows the fair value
of options issued as of grant date for the fiscal year ending March 31, 2021. The Black Scholes model
is used to calculate the fair value at grant date, which takes into consideration the exercise price, term
of the option, share price at grant day, estimated price volatility of the underlying share, expected
dividend yield, and risk free interest rate during the life of the option. The following are some of the
model inputs for the choices available: On July 26, 2016, ESOS was approved. Options vest after one
year, 30 percent after two years, 20% after three years, and 10% after four years, as shown in the chart
below. Options that have vested may be exercised for three years after they have vested. The
following are the model inputs for options given: ESOP, 2012- Option B awarded on May 16, 2015;
ESOP, 2012- Option C granted on May 16, 2015; ESOP, 2012- Option D granted on May 16, Options
vest after one year, 30 percent after two years, 20% after three years, and 10% after four years, as
shown in the chart below. Options that have vested will be exercisable for 7 years after they have
vested. ESOP, 2012- Option A issued on 31 January 2013 is one of the model inputs for options
awarded. Options vest 40 percent after one year, 30 percent after two years, 20% after three years, and
10% after four years for the criteria shown below in the table. Options that have vested will be
exercisable for 7 years after they have vested. 15th observation In the case of Surya Roshani Limited

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& others v/s EPFO, the HonaTMble Supreme Court of India (aSCa) established the principles on
which allowances paid to employees should be identified for inclusion in basic wages for the purposes
of calculating Provident Fund contribution in an order dated February 28, 2021. Following that, a
review petition challenging the verdict was submitted and is now pending before the Supreme Court.
The management believes that the judgment's application is prospective and has consequently
provided the responsibility for March 2021, pending a determination on the subject review petition
and guidance from the EPFO. The effect for the previous period will be determined by the decision of
the subject review petition and EPFO instructions, and will be shown as a Contingent liability in the
financial statements. It's impossible to say what effect it'll have. Note 16: The Company's Lease
Operating Lease: The Company's leasing agreements are for operating leases for premises that the
Company occupies. These leases are non-cancelable and renewed on a regular basis by mutual
agreement on mutually acceptable conditions. a. For each of the following periods, the sum of
anticipated minimum lease payments under non-cancellable operating leases: Note 17 Because the
Government of India implemented the Goods and Services Tax (GST) on July 1, 2017, revenue from
operations for the year ended March 31, 2018 is net of GST, whereas revenue for the quarter ended
June 30, 2017 is inclusive of excise duty, total income from operations for the years ended March 31,
2018 and March 31, 2021 are not comparable. Specified Bank Notes (Note 18) These financial
statements do not include information about holdings and transactions in specific bank notes from
November 8, 2016 to December 30, 2016 since they do not relate to the fiscal year ending March 31,
2021. Related Party Disclosures (Note 19) The mandatory disclosures are listed below in accordance
with Ind AS 24 - aRelated Party Disclosuresa, as announced under Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015, as amended: 1. Personal relationships: I Holding Companies: A
holding company is a company that owns other companies. AstecLifeSciences Limited is owned by
Godrej Agrovet Limited (GAVL), which owns 57.67 percent of the company. GAVL is a Godrej
Industries Limited (GIL) subsidiary, while GIL is a Vora Soaps Limited (VSL) subsidiary (upto
December 23, 2018). As a result, as on December 24, 2018, GIL became the Company's Ultimate
Holding Company. ii) Subsidiary Businesses: 1 Behram Chemicals Private Limited is a private
company based in India. 3 Comercializadora Agricola AgroastrachemCia Ltda 2 Astec Europe Sprl 3
Comercializadora Agricola Agroastrachem CiaLtda (iii) Subsidiaries of Other Companies: Creamline
Dairy Products Limited is a company that produces dairy products. Godrej Tyson Foods Limited is
number two on the list (w.e.f. 27th March, 2021) GodrejMaxximilk Private Limited is the third
company in the Godrej Maxximilk group (w.e.f. 27th March, 2021) 4 Godrej One Premises

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Management Private Limited Godrej One Premises Management Private Limited Godrej One
Premises Management (iv) Godrej Agrovet Limited (GAVL) Associates / Joint Ventures: Godrej
Consumer Products Limited is a company that manufactures consumer goods. Godrej Tyson Foods
Limited is number two on the list (upto 26th March, 2021) Godrej Maxximilk Private Limited is the
third company in the Godrej Maxximilk group (upto 26th March, 2021) Godrej Consumer Products
Limited, Godrej Consumer Products Limited, Godrej Consumer Products Limited, Godrej Consumer
Products Limited, Godrej Consumer Products Limited, Godrej Consumer Products Limited, Godrej
Consumer Products Limited, Godrej Consumer Products Limited, Godrej (vi) AstecLifeSciences
Limited entities that are controlled/jointly controlled/have a strong impact on KMPa: Astec Crop Care
Private Limited is a company that specialises in crop care. (vii) Entities that have considerable
influence over AstecLifeSciences Limited's Board of Directors: Other linked parties (viii) Nichem
Solutions Godrej & Boyce Manufacturing Company Limited is a manufacturing company based in
India.

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CONCLUSION

Financial statements play an important role in providing decision-makers with facts and data.
In the hands of a finance analyst, ratios will serve as an analysis tool. These ratios will assist us in
answering basic questions such as why, how, and what these statements mean.

Financial statements are now taken into account heavily while making decisions. They must examine
the data according to their needs while selecting what to do and what not to do. As a result, in our
project, we attempt to provide a concise overview of ratio analysis (that is, how to examine the facts
and figures in financial statements) from the perspective of all stakeholders.

Throughout my study, I studied the financial state of the organisation, as well as the advantages and
disadvantages of the situation, and we interpreted the data. Despite these limitations, we strive to
accurately examine and interpret the facts and numbers.

Based on the analysis and interpretation, I attempted to present my results and recommendations for
the company to the best of my ability.

Finally, the project assists us in understanding the practical aspects of the corporate world. I had a
great time working on this project in its true spirit.

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