Dear Shareholders

FY22 has been a challenging year for us as an organisation. At start of the year wesaw the deadly second wave of covid hitting us right at the beginning of the crucialKharif season. We also saw massive headwinds on account of illegal BT cotton in thecountry. Despite a challenging macro environment we have been able maintain ourperformance on various parameters.

Our strategy to de-risk and diversify our product

portfolio is showing satisfactory results. The combined revenue contribution from Paddyand Cotton is declining and for FY22 it reduced to 59%. Similarly our efforts to reduceand rationalise working capital is also yielding satisfactory results. Despite achallenging operating environment we have been able to reduce our working capital cycleand rationalize our receivable days. Overall inventory has decreased and we expect theinventory levels to normalize further over the next two seasons.

This year we have clocked reduced sales and profit pursuant to the reduction in paddysales due to change in product mix. As a matter of prudent accounting policy we havecreated provisions against the advances which had been given to the farmers. We have beenworking with over fifty thousand contract farmers over the last three to four years andhave had a natural cycle of production. However the situation had been on a decline overthe last two-three years primarily on an account of COVID. Our farming community has beenfacing undue stress either on an account of climate vagaries or due to loss of lives ofthe key family member on account of COVID. While we are working on an amicable solutionwith the farmers and growers to recover our advances as a matter of abundant precautionwe have made a provision for the potential bad advances to the farmers. The company wouldcontinue to make all the necessary efforts to recover these payments through recovery orthrough future production. However we would ensure that our farmers are not aggrievedand all viable option are worked out with them.

We are confident of a good FY23 and the outlook looks good. The entire farm sector andfarming community is buoyant with unprecedented farm produce prices currently hovering inthe country. The news of bountiful monsoon has also added the cheer. With all theseaspects we expect a good Kharif season this year.

The seed industry has been pursuing with the government for approval of themuch-awaited HTBT technology. We will continue to harness genomics and modern technologyto develop superior seeds. We plan to launch several products in different crops andsegments. Our focus as we go forward will be with the field crops like Maize BajraMustard and Wheat.

Along with this we are also working on current portfolio of Cotton and Paddy. We expectto register a rapid growth in vegetable and Plant Nutrient verticals given that our teambuilding efforts in these segments are now complete. Things are also looking bright forexports. We will expand our presence offshore and are excited about introducing ourproducts in many countries once all the approvals come through.

We are confident of overcoming all the short-term challenges and delivering a strongoperational and financial performance next year. Our teams on the ground are quite excitedabout the new products that we are planning.