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Notes to Accounts of Avanti Feeds Ltd.

Mar 31, 2023

As per records of the Company, including its register of shareholders / members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownerships of shares.

(c) Rights attached to equity shares

The Company has only one class of equity shares having par value of '' 1/- per share (31^st March, 2022: ''1/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Equity shares movement during the 5 years preceding 31^st March, 2023 on account of Equity shares issued as bonus

The Company allotted 4,54,15,210 equity shares as fully paid up bonus shares by capitalisation of profits transferred from securities premium reserve amounting to '' 438.00 Lakhs and general reserve amounting to '' 16.15 Lakhs, which was approved by the shareholders by means of a special resolution through E.G.M. held on 14.06.2018.

General Reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss. The reserve is utilised for Bonus issue in accordance with the provisions of Companies Act 2013.

The working capital limits, sanctioned by State Bank of India (SBI) and HDFC Bank as at 31^st March, 2023, are '' 3,000.00 Lakhs and '' 2,000.00 Lakhs, respectively (31^st March, 2022: '' 3,000.00 Lakhs and ''2,000.00 Lakhs respectively).

The working capital limits from SBI is secured by first charge on all current assets, Collateral First charge on Property, Plant and Equipment of the company. The same is repayable on demand and carries interest @ 8.20% p.a.

The working capital limits from HDFC Bank is secured by first charge on all current assets, Collateral First charge on Property, Plant and Equipment of the company. The same is repayable on demand and carries interest @ 8.00% p.a.

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts

Note: Debit balance in cash credit accounts as at 31^st March, 2023 (and 31^st March, 2022) have been grouped under the head "Cash and Cash equivalents".

Dues to micro and small enterprises

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from few suppliers has been received and is still awaited from other suppliers. In view of this, the liability of interest calculated and the required disclosures made, in the below table, to the extent of information available with the Company.

(i) The Company purchased soya bean in the year 2004-05, converted the same into DOC in 2005-06 and used some part for own consumption in manufacturing of shrimp feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand to '' 29.22 Lakhs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

(ii) Company is importing Squid Liver Powder (SLP) which was one of the raw materials for manufacturing of shrimp feed. SLP was imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT, Chennai.

outcome of this proceeding will not have a material adverse effect on the Company''s financial position and results of operations.

iii) The Income Tax Department has completed the assessment for the assessment year 2013-14 and has raised an additional demand of '' 12.23 Lakhs which the Company has contested and filed an appeal with the Commissioner of Appeals, Income Tax.

31. Capital Commitments

Estimated amount of capital contracts remaining to be executed to the extent not provided for (net of advances) '' 1,673.96 Lakhs (31^st March, 2022: '' 3,504.80 Lakhs).

34 Segment Reporting

"The Company is engaged in the business of Shrimp feed, Shrimp Hatchery and power generation. The Chairman and Managing Director (CMD) has been identified as the Chief Operating Decision maker (CODM). There are three segments in the Company i.e. Shrimp Feed, Shrimp Hatchery, Wind Mills.

As the Company does not have revenue from any significant external customer amounting to 10% or more of the Company''s total revenue, the related information as required under paragraph 34 of Ind AS 108 has not been disclosed."

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp.

Company had installed four wind mills of 3.2 MW at Chitradurga, Karnataka. Power generated from wind mills is sold to BESCOM under Power Purchase agreement.

Shrimp Hatchery produces shrimp seed and sold to aqua farmers.

Segment Revenue and Results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

(ii) Defined Contribution Plans

"The Company also has certain defined contribution plans. Contributions are made to provident fund (at the rate of 12% of basic salary); Employee State Insurance and Superannuation Fund in India for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is '' 371.88 Lakhs (31^st March, 2022 - '' 309.76 Lakhs).â

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(v) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. The Company''s plan assets are insurer managed funds and are subject to less material risk.

Changes in bond yields: A decrease in bond yields will increase plan liabilities and the Company ensures that it has enough reserves to fund the liability

(vi) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans for the year ending 31^st March, 2024 is '' 300.45 Lakhs

(i) Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered to be same as their fair values, due to their short term nature. In absence of specified maturity period, the carrying amount of the non-current financial assets and non-current financial liabilities such as security deposits, are considered to be same as their fair values. With respect to Corporate Guarantees, the management has determined the fair value of such guarantee contracts as ''Nil'' as the subsidiary company is not being benefited significantly from such guarantees. The fair value of quoted equity investments, has been classified as Level 1 in the fair value hierarchy as the fair value has been determined on the basis of market value. The fair value of unquoted equity instruments has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of discounted cash flows. The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of mark-to-market provided by the Bank from which the contract has been entered. The corresponding changes in fair value of investment is disclosed as ''Other Income''."

The Company''s risk management is carried out by the JMD under policies approved by the Risk Management Committee a sub-committee of the Board of Directors. The Committee provides guiding principles for overall risk management, as well as policies covering specific areas such as interest rate risk, credit risk and investment of excess liquidity.

Credit Risk

(i) Credit Risk Management

Credit risk arises from cash and cash equivalents, loans, security deposits and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

"Credit risk is managed by the Marketing General Manager of the Avanti Feeds Limited. The Company has few customer with most of them being foreign customers. The Company provides a credit period of 60-90 days which is in line with the normal industry practice. The Marketing GM undertakes the credit analysis of each customer before transacting. The finance team under the guidance of Marketing GM also periodically review the credit rating of the customers and follow up on long outstanding invoices."

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on going basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. The below factors are considered:

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower''s ability to meet its obligations.

- actual or expected significant changes in the operating results of the borrower.

- significant increase in credit risk on other financial instruments of the same borrower.

- significant changes in the expected performance and behaviour of the borrower, including changes in the payment status of the borrower in the Company and changes in operating results of the borrower.

Macro economic information (such as regulatory changes, market interest rate or growth rates) is incorporated as part of the internal rating model. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 180 days past due.

A default on a financial asset is when the counter party fails to make contractual payments within 365 days of when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

(ii) Provision for Expected Credit Losses

The Company provides for expected credit loss based on the following:

Liquidity Risk

"Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Joint Managing Director monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows and any excess/short liquidity is managed in the form of current borrowings, bank deposits and investment in mutual funds.â

38. Capital management

(a) Risk Management

"The Company''s objectives when managing capital are to:

> Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

> Maintain an optimal capital structure to reduce the cost of capital.

I n order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company has been maintaining a steady dividend."

The Company''s capital structure is largely equity based. It monitors capital on the basis of the following gearing ratio: Net debt divided by Total ''equity'' (as shown in the balance sheet).

40. Other Statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company does not have any such transactions which was not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

41. Previous year figures have been regrouped/reclassified, where necessary, to conform to this year''s classification.

Mar 31, 2022

The Company has invested an amount of ''50 crores in âFranklin India Ultra Short Bond Fund" (FT) in September, 2017 purchasing 2,16,36,685 units at an NAV of ''23.11 per unit.During the financial year 2019-20, CRISIL downgraded its rating of one of the portfolio investment of the FT. As per SEBI Regulations, any investment by a MF rated below investment grade (i.e. below BBB), can be segregated at the option of the AMC.

Accordingly in January, 2020 FT has reduced NAV of the above fund held by the Company and allotted equal quantity of units (i.e. 2,16,36,685 units) of âFranklin India Ultra Short Bond Fund - Super Institutional Plan -Segregated Portfolio -1 GROWTH, with NAV value of ''Nil on 24^th January, 2020 with a different account number. Hence, the same is recorded in the books of accounts of the company as at 31^st March, 2020.

During the Financial Year 2020-21, we have received a total of ''34.59 crores and during the Financial Year 2021-22, we have received a total of ''31.52 crores.

As at 31^st March, 2022 the balance units of 5,34,000.713 are carrying at NAV of ''34.2623.

As per records of the Company, including its register of shareholders/ members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownerships of shares.

The Company has only one class of equity shares having par value of ''1/- per share (31^st March, 2021: ''1/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(d) Equity shares movement during the 5 years preceding 31^st March, 2022 on account of Equity shares issued as bonus:

The Company allotted 4,54,15,210 equity shares as fully paid up bonus shares by capitalisation of profits transferred from securities premium reserve amounting to ''438.00 Lakhs and general reserve amounting to ''16.15 Lakhs, which was approved by the shareholders by means of a special resolution through EGM held on 14^th June, 2018.

General Reserve:

Securities premium:

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised for Bonus issue in accordance with the provisions of the Companies Act, 2013.

The working capital limits, sanctioned by State Bank of India (SBI) and HDFC Bank as at 31^st March, 2022, are ''3,000.00 Lakhs and ''2,000.00 Lakhs, respectively (31^st March, 2021: ''3,000.00 Lakhs and ''2,000.00 Lakhs respectively).

The working capital limts from SBI is secured by first charge on all current assets, Collateral First charge on plant, property and equipment of the company. The same is repayable on demand and carries interest @ 7.10% p.a. The working capital limits from HDFC Bank is secured by first charge on all current assets, Collateral First charge on property, plant & equipment of the company . The same is repayable on demand and carries interest @ 7.50% p.a.

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

Note: Debit balance in cash credit accounts as at 31^st March, 2022 (and 31^st March, 2021) have been grouped under the head âCash and Cash equivalents".

Dues to micro and small enterprises:

(i) The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used some part for own consumption in manufacturing of Shrimp Feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13^th, December, 2004 and Commercial Tax department took the view that the soya bean purchased prior to 13^th December, 2004 will attract tax at old rates and a demand to ''29.22 Lakhs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

(ii) Company is importing Squid Liver Powder (SLP) which was one of the raw materials for manufacturing of Shrimp Feed. SLP was imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT, Chennai.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statementsforthetaxdemandraised.Themanagement believes that theultimateoutcomeofthisproceeding will not have a material adverse effect on the Company''s financial position and results of operations.

iii) The Income Tax Department has completed the assessment for the Assessment year 2013-14 and has raised an additional demand of ''12.23 Lakhs which the Company has contested and filed an appeal with the Commissioner of Appeals, Income Tax.

31. Capital Commitments

Estimated amount of capital contracts remaining to be executed to the extent not provided for (net of advances) ''3,504.80 Lakhs (31^st March, 2021: NIL).

32. Corporate Social Responsibility Expenditure

During the year, the amount required to be spent on corporate social responsibility activities amounted to ''683.31 Lakhs (31^st March, 2021 : ''850.92 Lakhs) in accordance with Section 135 of the Act. The following amounts were actually spent during the current & previous year:

34. Segment reporting

âThe Company is engaged in the business of Shrimp Feed, Shrimp Hatchery and power generation. The Chairman and Managing Director (CMD) has been identified as the Chief Operating Decision maker (CODM). There are three segments in the Company i.e. Shrimp Feed, Shrimp Hatchery, Wind Mills.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp.

Company had installed four wind mills of 3.2 MW at Chitradurga, Karnataka. Power generated from wind mills is sold to BESCOM under Power Purchase agreement.

Shrimp Hatchery produces Shrimp seed and marketing to the aqua farmers.

Segment Revenue and Results

Segment assets and liabilities

Segment assets includes all operating assets used by the business segment and consist principally property, plant & equipment, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

35. Employee Benefits

(i) Leave obligations

âThe leave obligations cover the Company''s liability towards earned leave. Based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is expected to be taken or paid within the next 12 months:"

(ii) Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund (at the rate of 12% of basic Salary); Employee State Insurance and Superannuation Fund in India for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is ''371.88 Lakhs (31^st March, 2021 - ''309.76 Lakhs).

(iii) Post employment benefit obligation Gratuity

of gratuity payable on retirement / termination is the employee''s last drawn basic Salary per month computed proportionately for 15 days Salary multiplied for the number of years of service. The gratuity plan is a funded plan. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(v) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. The Company''s plan assets are insurer managed funds and are subject to less material risk.

Changes in bond yields: A decrease in bond yields will increase plan liabilities and the Company ensures that it has enough reserves to fund the liability

(i) Fair value hierarchy

With respect to Corporate Guarantees, the management has determined the fair value of such guarantee contracts as ''Nil'' as the subsidiary company is not being benefited significantly from such guarantees.

instruments has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of discounted cash flows. The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of mark-to-market provided by the Bank from which the contract has been entered. The corresponding changes in fair value of investment is disclosed as ''Other Income''.

The Company''s risk management is carried out by the JMD under policies approved by the Risk Management Committe a sub-committe of the Board of Directors. The Committe provides guiding principles for overall risk management, as well as policies covering specific areas such as interest rate risk, credit risk and investment of excess liquidity.

Credit Risk

(i) Credit Risk Management

The Marketing GM undertakes the credit analysis of each customer before transacting. The finance team under the guidance of Marketing GM also periodically review the credit rating of the customers and follow up on long outstanding invoices.

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower''s ability to meet its obligations.

- actual or expected significant changes in the operating results of the borrower.

- significant increase in credit risk on other financial instruments of the same borrower.

- Significant changes in the expected performance and behaviour of the borrower, including changes in the payment status of the borrower in the Company and changes in operating results of the borrower.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Market Risk - Interest Risk

The Company''s main interest rate risk arises from long term and short term borrowings with variable rates, which exposes the Company to cash flow interest rate risk.

The exposure of the Company to interest rate changes at the end of the reporting period are as follows:

38. Capital management

(a) Risk Management

The Company''s objectives when managing capital are to

> safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

> Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company has been maintaining a steady dividend.

The Company''s capital structure is largely equity based. It monitors capital on the basis of the following gearing ratio: Net debt divided by Total ''equity'' (as shown in the balance sheet).

39. In November''19, The Income Tax Department., Hyderabad conducted Search / Survey, on the premises of the Company and its subsidiary (i.e., Avanti Frozen Foods Private Limited). Consequent to search & seizure, during the year, the Income Tax Department has completed the assessment for the entire block period consisting from the assessment year 2014-15 to 2019-2020 by accepting the Income as per the returns filed u/s 153A of the Income Tax Act,1961.

40. The Company has taken into account the possible impact of COVID-19 in preparation of the audited financial statements including its assessment of recoverable value of its assets based on internal and external information for the year ended 31^st March, 2022. Based on the assessment done by the. management of the Company, there is not much impact of COVID-19 on the results for the year ended 31^st March, 2022. The Company will be closely monitoring any material changes to future economic conditions.

42. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities indentified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the

(a) directly or indirectly lend or invest in other persons or entities indentified in any manner whatsoever by or on behalf of the company Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company has not any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Taxt Act, 1961).

43. Previous year figures have been regrouped/reclassified, where necessary, to conform to this year''s classification.

The accompanying notes are an integral part of the financial statements

Mar 31, 2018

1. Corporate information

Avanti Feeds Limited, (the Company) is a listed public Company under âThe Companies Act, 1956â, with its registered office in Visakhapatnam. Avanti Feeds Limited has started its commercial operations in 1993 and now stands as the leading manufacturer of Shrimp Feed.

2. Basis of preparation and significant accounting policies

2.1 Basis of preparation and measurement

(i) Basis of preparation

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act,2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

The financial statements up to year ended 31st March,

2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

These financial statements are the first financial statements of the Company under Ind AS. Refer Note 42 for an explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.

(ii) Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following:

- certain financial assets and liabilities that are measured at fair value

- defined benefit plans- plan assets measured at fair value

2.2 Measurement of fair values

The Companyâs accounting policies and disclosures require financial instruments to be measured at fair values. The Company has an established control framework with respect to the measurement of fair values. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assess the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

I f the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

2.3 Critical estimates and judgements

I n preparing these financial statements, management has made judgements, estimates and assumptions that effect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The areas involving critical estimates or judgements are;

- Estimation of defined benefit obligation, refer note 41

- Useful life of fixed assets, refer note 2.4(p)

- Expected credit loss of financial assets, refer note 33

- Determination of principal and agent relationship -refer note 31

- Identification of government grant - refer note 23

3.1 Margin money deposits given as security

Margin Money deposits with bank of a carrying amount of Rs.646.37 Lakh (31st March, 2017: 366.48 Lakh) are lien marked for import L.C.s and for issuance of SBLC for Anti Dumping Duty purpose to US Customs Authorities.

Thai Union Group Public Company Limited which is formerly know as Thai Union Frozen Products PCL. Company.

As per records of the Company, including its register of shareholders/ members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownerships of shares.

(c) Rights attached to equity shares:

The Company has only one class of equity shares having par value of Rs.2/- per share (31st March, 2017: Rs.2; 1st April, 2016: Rs.2 per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

General Reserve:

General reserve represents the amount transferred from profit and loss account to General reserve on account of dividend distributed.

Securities premium reserve:

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of Companies Act 2013.

* Current maturities on long-term borrowings have been disclosed under the head Other current financial liabilities

i. Vehicle loans:

Nature of Security & Terms of Repayment :

Vehicle loans are secured by hypothecation of respective vehicles. The loans are repayable in 36 months.

ii. Other Loans

The Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers for the financial years from 2001-02 to 2004-05 was converted in to interest free loan which is repayable in 14 years. The balance amount outstanding as on 31.03.2017 Rs.163.32 is repaid in March, 2018.

Working Capital loans of Rs. NIL (P. Y. Rs.131.16 Lakh) was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets of the company and personal guarantee of Mr. A. Indra Kumar, Chairman and Managing Director of the Company. The loan is repayable on demand and carries interest @ 10.70% p.a.

Dues to micro and small enterprises:

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from the suppliers is still awaited. In view of this, the liability of interest cannot be reliably estimated nor the required disclosures could be made. Accounting in this regard will be carried out after the process is completed and reliable estimate made in this regard. However management is of the opinion that liability in any case will be insignificant having regard to the supplierâs profile of the Company.

Note: The Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers for the financial years from 2001-02 to 2004-05 was converted in to interest free loan which is repayable in 14 years. The balance amount outstanding of as on 31.03.2017 Rs.180.47 is repaid in March, 2018. There are no unfulfilled conditions or other contingencies attaching to these grants. The Company did not benefit directly from any other forms of government assistance.

The exceptional item of Rs.79.30 Lakh for the year ended 31st March, 2018 includes differential anti dumping duty of Rs.78.88 Lakh paid (net of refunds) on final determination by the Department of Commerce, USA on the exports made by the company during the financial years from 2010-11 to 2014-15 and provision for doubtful advance Rs.0.42 Lakh given to wholly owned subsidiary Svimsan Exports & Imports Private Limited (SEIPL). (Previous Year Rs.5.75 Lakh includes CVD refund income of Rs.6.17 Lakh and provision for doubtful advances given to SEIPL Rs.0.42 Lakh.)

4 Discontinued operations

With effect from 1st November, 2015, the company transferred the Shrimp Processing & Export Division (âExport Businessâ) to Avanti Frozen Foods Pvt. Ltd (AFFPL), pursuant to a Business Transfer Agreement (BTA). This was done in order to improve business efficacy and to bring global recognition to Shrimp Processing Business. As AFFPL was in the process of obtaining requisite statutory and regulatory approvals to carry on the Export business, AFL carried the aforesaid business on behalf of AFFPL for the period of 1st November, 2015 to 30th June, 2016 in the capacity of an agent. Accordingly, no sales and related expenditure of the Export business for the aforesaid period, have been recognised in the Statement of Profit and Loss.

A profit (after tax) only to the extend of Rs.7.43 attributable to AFL in relation to the business transferred, have been included in the Statement of Profit and Loss. A detailed statement of the operations of Shrimp Processing & Export Division for the period from 1st April, 2016 to 22nd November, 2016 is given here under.

(i) Fair value hierarchy

With respect to Corporate Guarantees, the management has determined the fair value of such guarantee contracts as âNilâ as the subsidiary company is not being benefited significantly from such guarantees.

The fair value of quoted equity investments, has been classified as Level 1 in the fair value hierarchy as the fair value has been determined on the basis of market value. The fair value of unqoted equity instruments has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of discounted cash flows. The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of mark-to-market provided by the Bank from which the contract has been entered. The corresponding changes in fair value of investment is disclosed as âOther Incomeâ.

5 Financial Risk Management

The Company activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk.

The Companyâs risk management is carried out by the JMD under policies approved by the Board of Directors. The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as interest rate risk, credit risk and investment of excess liquidity.

Credit Risk

(i) Credit Risk Management

Credit risk is managed by the Marketing General Manager of the Avanti Feeds Limited. The Company has few customer with most of them being foreign customers. The Company provides a credit period of 60-90 days which is in line with the normal industry practice. The Marketing GM undertakes the credit analysis of each customer before transacting. The finance team under the guidance of Marketing GM also periodically review the credit rating of the customers and follow up on long outstanding invoices.

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrowerâs ability to meet its obligations.

- actual or expected significant changes in the operating results of the borrower.

- significant increase in credit risk on other financial instruments of the same borrower.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

(ii) Provision for expected credit losses

The Company provides for expected credit loss based on the following:

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

The Joint Managing Director monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows and any excess/short liquidity is managed in the form of current borrowings, bank deposits and investment in mutual funds.

(i) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Market Risk - Interest Risk

The Companyâs main interest rate risk arises from long term and short term borrowings with variable rates, which exposes the Company to cash flow interest rate risk.

The exposure of the Company to interest rate changes at the end of the reporting period are as follows:

Market risk - Price risk

The Companyâs investments in quoted equity securities is very minimal, hence there is limited exposure to price risk.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, mainly in the nature of sales denominated in foreign currencies and other expenditures. As a policy, the Company does not hedge any of its exposure to foreign currency. The Companyâs exposure to foreign currency risk at the end of the reporting period are as follows:

6 Capital management

(a) Risk Management

The Companyâs objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company has been maintaining a steady dividend.â

The Companyâs capital structure is largely equity based. It monitors capital on the basis of the following gearing ratio:

Net debt divided by Total âequityâ (as shown in the balance sheet).

(1) The Customs and Central Excise Department raised demand for Rs.1494.59 Lakh and levied penalty of Rs.1504.59 Lakh for customs duty forgone on duty free imports of raw materials and non-fulfilment of export obligation for the period 1999-2000 to 2001-2002 when the Company was operating as a 100% EOU. Company had achieved Net Foreign Exchange Earning in 2003-04 and the Development Commissioner of Visakhapatnam Export Procession Zone allowed Company to de-bond upon being satisfied with the fulfilment of exports made by the Company and foreign exchange earning obligations. Further, Company had paid Rs.1655.03 Lakh excise duty in lieu of the duty free import of raw materials and spares. However, the Customs and Central Excise Department raised the demand without considering the amounts paid. This demand and levy of penalty was contested by the Company before CESTAT, Bangalore and Honâble CESTAT remanded the case back to The Commissioner for fresh adjudication after considering all the aspects raised by the Company. The Commissioner gave his order confirming the demand and Company again approached CESTAT against this order. The matter is pending before CESTAT, Hyderabad.

(ii) The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used some part for own consumption in manufacturing of shrimp feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand to Rs.29.22 Lakh was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

(iii) Company approached Supreme Court against the order of High Court of Andhra Pradesh confirming the levy and collection of Electricity Duty on self generated power from DG sets.

(iv) Company is importing Squid Liver Powder (SLP) which was one of the raw materials for manufacturing of shrimp feed. SLP was imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT, Chennai.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Companyâs financial position and results of operations.

(2) The Company has given corporate guarantee of Rs.11506 Lakh as on 31.03.2018 (Rs.7590 Lakh as on 31.03.2017 and Rs.6225 as on 31.03.2016) to State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad for loans facilities availed by Avanti Frozen Foods Private Limited.

7 Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL (31st March, 2107: Nil; 1st April, 2016: Rs.1075.22 Lakh).

8 Corporate social responsibility expenditure

a) Expenditure related to CSR as per section 135 of companies act, 2013 read with schedule VII thereof, against the mandatory spend of Rs.515.40 Lakh (previous year Rs.378.00 Lakh)

b) Amount spent during the year on:

9 Segment reporting

The Company is predominantly engaged in the business of Shrimp feeds and power generation The Chairman and Managing Director (CMD) has been identified as the Chief Operating Decision maker (CODM). There is only one segment in the Company which is Shrimp Feed.

As the Company does not have revenue from any significant external customer amounting to 10% or more of the Companyâs total revenue, the related information as required under paragraph 34 of Ind AS 108 has not been disclosed.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp.

Company had installed four wind mills of 3.2MW at Chitradurga, Karnataka. Power generated from wind mills is sold to BESCOM under Power Purchase agreement.

Segment Revenue and Results

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

10 Employee Benefits

(i) Leave obligations

The leave obligations cover the Companyâs liability earned leave. Based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is expected to be taken or paid within the next 12 months:

(ii) Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund (at the rate of 12% of basic salary); Employee State Insurance and Superannuation Fund in India for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.316.50 Lakh (31st March, 2017 - Rs.312.93 Lakh)

(iii) Post employment benefit obligation Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employeeâs last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(v) Risk exposure

Through its defined benefit plan, the Group is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. The Companyâs plan assets are insurer managed funds and are subject to less material risk.

Changes in bond yields: A decrease in bond yields will increase plan liabilities and the Company ensures that it has enough reserves to fund the liability

(vi) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans for the year ending Rs.31st March 2018 are Rs.279.76 Lakh

11 First-time Ind AS adoption reconciliations:

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31st March 2017, the comparative information presented in these financial statements in the preparation of an opening Ind AS balance sheet at 1st April, 2016 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to IndAS.

A.1 Ind AS optional exemptions A.1.1 Deemed cost

I nd AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities, if any. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the company has elected to measure all of its property, plant and equipment, intangible assets at their previous GAAP carrying value.â

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS as at the date of transition as these were not required under previous GAAP:

- Fair valuation of financial guarantee contract

- Security deposits carried at amortised cost

A.2.2 De-recognition of financial assets and liabilities

I nd AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the derecognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

B: Reconciliations between previous GAAP and Ind AS

I nd AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Reconciliation of total equity as at 31st March, 2017 and 1st April, 2016

C: Notes to first-time adoption Note 1: Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2016. This increased the retained earnings by Rs.375.00 Lakh as at 31st March 2017 (1st April, 2016 - Rs.4/- Lakh).

Note 2: Derivative financial instruments

Under the previous GAAP, the Company applied the requirements of Accounting Standard 11 The effects of changes in foreign exchange rates to account for foreign currency forward contracts. At the inception of the contract, the forward premium or discount was separated and amortised as income or expense over the period of contract. The underlying receivables and payables were restated at the closing spot exchange rate.

Under Ind AS, derivatives which are not designated as hedging instruments are fair valued with resulting changes being recognised in profit or loss. The fair valuation of forward contracts resulted in a loss of Rs.117 (April 01, 2015: Rs.11). Consequent to the above, the profit for the year and total equity as at 31st March, 2016 has decreased by Rs.106 as a result of the fair value change on the forward contracts.

Note 3: Deferred sales tax loan

Under the previous GAAP, the interest-free government loan and goverment loans at below market rate interest were carried at its cost. Under Ind AS, such loans are in the nature of financial liability, carried at amortised cost, with corresponding benefit of below the market rate of interest being recognised as a government grant. Difference between the fair value of the loan and the transaction cost has been recognised as government grant. Consequent to this change, the amount of loan decreased by Rs.17 as at 31st March, 2017 (April 01, 2016: Rs.46). The government grant liability increased by Rs.23 as at 31st March, 2017 (April 01, 2016: Rs.46.00 Lakh). The profit for the year and total equity as at 31st March, 2017 decrease by Rs.6 due to amortisation of government grant of Rs.26.00 Lakh, which is partially off-set by the unwinding of interest amounting to Rs.23.00 Lakh.

Note 4: Deferred tax

Under previous GAAP, deferred tax expense/credit were recognised on timing differences between book profits and taxable profits. Under Ind AS, deferred tax is required to be recognised on all temporary differences.

Accordingly, The management has recognised deferred tax liability of Rs.159 as at 31st March, 2017 (1st April, 2016- deferred tax asset of Rs.12.00 Lakh) on the above transition adjustments with a corresponding impact on retained earnings. Further, the deferred tax expense for the year ended 31st March, 2017 have decreased by Rs.170.00 Lakh

Note 5: Rebates and discounts

Under the previous GAAP, rebates and discounts (not in the nature of trade discount) were recognised as other expense and the revenue was recorded on gross amounts. Under Ind AS, revenue is recognised net of rebates and discounts. Accordingly the Revenue has decreased by Rs.11,692.00 Lakh for the period ended 31st March 2017 with a corresponding decrease in other expenses. There is no impact on the total equity or profit as result of this adjustment.

Note 6: Re-measurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2017 increased by Rs.21 Lakh. There is no impact on the total equity as at 31st March 2017.

Note 7: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

Note 8: Retained earnings

Retained earnings as at 1st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 9: Reclassifications

The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements.

The Previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements

12 Previous year figures have been regrouped / reclassified, where necessary, to conform to this yearâs classification.

Mar 31, 2017

1. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 2/- per share ( previous year Rs. 2/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

The Board, in its meeting on 13th May 2017 has recommended final dividend Rs.9/- per Equity Share for the financial year ended 31.03.2017 (31.03.2016: Rs.7/-). The proposal is subject the approval of Shareholders in the ensuing Annual General Meeting and, if approved, would result in a cash outflow of approximately Rs 4919.46 Lacs (including dividend distribution tax of Rs 832.09 lacs).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Vehicle loans are secured by hypothecation of respective vehicles. The loans are repayable in 36 months.

3. Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers from 2001-02 to 2004-05 was converted in to interest free loan for period of 14 years in the final installment of loan Rs. 180.47 lakhs is due for payment in March 2018.

4. Security Deposits taken from dealers for supplying them shrimp feed on credit terms. Interest is paid on these deposits @ 9% per annum (31st March, 2016: 9% p.a.).

5. Working Capital loans of Rs.131.16 lacs was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets of the company and personal guarantee of Mr. A. Indra Kumar, Chairman and Managing Director of the Company. The loan is repayable on demand and carries interest @ 10.70% p.a.

6. Exceptional income of Rs. 6.17 lacs for the year ending 31.03.2017 (PY Rs. 493.68) is Countervailing Duty (CVD) paid to U.S. Customs department in the year 2013-2014, now refunded by U.S. Customs.

7. An amount of Rs. 45.51 lacs exceptional income raised in the year 2015-16 on account of Slump Sale of Processing & Export Division to company''s subsidiary Avanti Frozen Foods Private Limited and an amount of Rs. 102.57 lacs expenditure incurred towards slump sale stamp duty expenditure.

8. During the year 31.03.2017 the company made 100% provision for the advance of Rs.0.42 lakhs given to its wholly owned subsidiary Svimsan Exports & Imports Private Limited (SEIPL), whereas for the year ending 31.03.2016 company provided diminution of Rs. 100.00 lacs in the value of investment and also 100% provision for the advance of Rs. 90.56 lacs given to it. SEIPL was incorporated in the year 1998 and it incurred losses which resulted in erosion of its net worth and there are no operations in SEIPL from financial year 2002-2003. The net worth of the subsidiary company is negative and there is no scope for future operations in the Company.

9. Discontinuing operations :

During the financial year 2015-16 the company (AFL) has divested its Shrimp Processing & Export Division to its subsidiary M/s. Avanti Frozen Foods Private Limited (AFFPL) by way of slump sale, under Business Transfer Agreement. This was done in order to improve business efficacy and to bring global recognition to Shrimp Processing Business. The effective date of transfer of the Shrimp Processing & Export Division to AFFPL was 01.11.2015. However, transfer of statutory licenses from AFL to AFFPL was received in June''16 and transfer of name from US DOC was received on 22.11.2016. From 01.04.2016 to 30.06.2016 AFL operated the Processing & Export unit on behalf of AFFPL and from 01.07.2016 till 22.11.2016, AFFPL did the processing and AFL exported as a merchant exporter. With effect from 23.11.2016, AFFPL is carrying on operations in its own name.

The revenue and related expenditures for the period from 01.04.2016 to 22.11.2016 reflecting processing and export of shrimps made on behalf of AFFPL and as a merchant exporter of shrimps processed by AFFPL are included in statement of profit & loss of AFL. However, the profit from operation for the period starting from 01.04.2016 to 22.11.2016 amounting to Rs. 1864.80 lakhs is

10. Discontinuing operations (Contd.....):

transferred to AFFPL which is reflected in the standalone results of the Company as Extra Ordinary Expense. A detailed statement of the operations of Shrimp Processing & Export Division for the period from 01.04.2016 to 22.11.2016 is given here under.

* During the period from 23.11.2016 to 31.03.2017 no shrimp processing or exports or merchant exports are done by AFL.

11. Gratuity (post-employment benefit plan)

The company operates a defined plans, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

12. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil (31st March,2016: Rs.1075.22 lakhs) which is net of capital advances of Rs. Nil (31st March,2016: Rs. 658.94 lakhs).

13. The Customs and Central Excise Department raised demand for Rs.1494.59 lacs and levied penalty of Rs.1504.59 lacs for customs duty forgone on duty free imports of raw materials and non-fulfillment of export obligation for the period 1999-2000 to 2001-2002 when the Company was operating as a 100% EOU. Company had achieved Net Foreign Exchange Earnings in 2003-04 and the Development Commissioner of Visakhapatnam Export Procession Zone allowed Company to de-bond upon being satisfied with the fulfillment of exports made by the Company and foreign exchange earning obligations. Further, Company had paid Rs.1655.03 lacs excise duty in lieu of the duty free import of raw materials and spares. However, the Customs and Central Excise Department raised the demand without considering the amounts paid. This demand and levy of penalty was contested by the Company before CESTAT, Bangalore and Hon''ble CESTAT remanded the case back to The Commissioner for fresh adjudication after considering all the aspects raised by the Company. The Commissioner gave his order confirming the demand and Company again approached CESTAT against this order. The matter is pending before CESTAT, Hyderabad.

14. The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used some part for own consumption in manufacturing of shrimp feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand to Rs.29.22 lacs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

15. For the Assessment Year 2011-2012 Assessing officer disallowed an amount of Rs. 17.95 lacs U/s. 14A for the Investments made by the Company and raised demand for Rs. 5.13 lacs. Company is contesting the same before Commissioner Appeals.

16. Company approached Supreme Court against the order of High Court of Andhra Pradesh confirming the levy and collection of Electricity Duty on self generated power from DG sets.

17.Company is importing Squid Liver Powder (SLP) which was one of the raw materials for manufacturing of shrimp feed. SLP was imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT, Chennai.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of operations.

B. The company has given guarantee of Rs. 7590.00 Lakhs to State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad for loans facilities sanctioned to Avanti Frozen Foods Private Limited.

18. Derivative instruments and unhedged foreign currency exposures Derivatives outstanding as at the reporting date Particulars Purpose

Forward contract to sell US$

US$ 2,97,030 (US$ 1,21,14,669 as at 31st March, 2016) Hedge of export debtors and Rs.205.14 lacs (Rs.8,188.40 lacs as at 31st March 2016)) for confirmed export orders

Forward contract to buy US$

US$ 23,84,250 (US$ 25,62,897 as at 31st March, 2016) Hedge for import liabilities

Rs. 1590.39 lacs (Rs. 700.04 lacs as at 31st March, 2016))

Closing rate as at 31st March, 2017 - 1 USD = Rs 64.8386 (31st March, 2016: 1 USD = Rs 66.3329)

19.Details of dues to micro and small enterprises as defined under MSMED Act 2006.

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from the suppliers is still awaited. In view of this, the liability of interest cannot be reliably estimated nor the required disclosures could be made, Accounting in this regard will be carried out after the process is completed and reliable estimate made in this regard. However management is of the opinion that liability in any case will be insignificant having regard to the supplier''s profile of the company.

20. Segmental Information

I. Primary Segment

The Company''s business is organized into three main business segments mainly Shrimp Feed, Processing & Shrimp Exports (discontinued operations) and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system ( refer note no. 37).

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp. Shrimp are purchased from the farmers and are further processed and exported to various countries. Company had installed four wind mills of 3.2MW at Chitradurga, Karnataka. Power generated from wind mills is sold to BESCOM under Power Purchase agreement.

Segment Revenue and Results

Segment assets and liabilities

II. Secondary Segment: Geographical Segment:

Based on the Revenue attributable to the individual customers located in various parts of the world, the company''s business is organized into three key geographic segments, viz., India, USA and Rest of World.

21. Related party dislcosures 38.1 Names of related parties and related party relationship: Related parties where control exists

Subsidiary Svimsan Exports & Imports Private Limited

Avanti Frozen Foods Private Limited

Related parties with whom transactions have taken place during the year

Key Managerial Personnel Sri A. Indra Kumar, Chairman and Managing Director

Sri C. Ramachandra Rao, Joint Managing Director, Company Secretary and CFO

Relatives of Key Managerial Peronnel Sri A. Venkata Sanjeev

Associate Companies Srivathsa Power Projects Limited

Patikari Power Private Limited

Companies over which Significant

Influence is exercised Srinivasa Cystine Private Limited

SCL Trading Private Limited

Sanjeev Agro Vet Private Limited

Laxai-Avanti Life Sciences Private Limited

Sri Sai Srinivasa Agro Farms & Developers Private Limited

22. Related party transactions

The following table provides the total amount of transactions that have been entered into with related

parties for the relevant financial year:

Mar 31, 2016

1. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 2/- per share (previous year Rs. 10/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2016, the amount of dividend recognized as distribution to equity shareholders was Rs. 7/- per share (31st March, 2015 Rs. 27.50).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownerships of shares.

The Members of the Company approved the Sub-Division of equity share of face value of Rs. 10/-(Rupees ten only) each into 5 (Five) equity shares of Rs. 2/- (Rupees two only) each fully paid up by way of Postal Ballot. Consequent upon this, the holders of the equity shares of the Company has received 5 (Five) equity shares of face value of Rs. 2/- each for every equity share of Rs. 10/- each, which resulted in increase in number of shares from 90,83,042 equity shares of Rs. 10/- each to4,54,15,120 equity shares of Rs. 2/- each.

2. The long term loan of Rs.935.00 Lakhs (Present outstanding is Nil) was taken from State Bank of India, Industrial Finance Branch, Hyderabad for the implementation of shrimp feed manufacturing project at Gujarat. The loan is secured by first charge on fixed assets of the Company and personal guarantee of Mr. A. Indra Kumar, Chairman & Managing Director of the Company.

3. Vehicle loans are secured by hypothecation of respective vehicles. The loans are repayable in 6 months to 36 months.

4. Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers from 2001-02 to 2004-05 was converted in to interest free loan for period of 14 years repayable in yearly installments of Rs.142.98 lakhs and Rs.180.47 lakhs for March 2017 and March 2018 respectively.

5. Working Capital loans of Rs.651.56 Lakhs was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets of the company and personal guarantee of Mr.A.Indra Kumar, Chairman and Managing Director of the Company. The loan is repayable on demand and carries interest @ 10.55% p.a..

6. As at end of current year and previous year, working capital loan from Rabo Bank International, Mumbai is NIL. The loan is secured by first charge on all current assets and second charge on fixed assets of thye Company. The loan is repayable on demand and carries interest @ 9.15% p.a.

7. Margin money deposits given as security

Margin Money deposits with bank of a carrying amount of Rs. 243.57 Lakhs (31st March, 2015: 228.04 Lakhs) are lien marked for import L.C.s and for issuance of SBLC for Anti Dumping Duty purpose to US Customs Authorities.

* During the year the Shrimp Processing & Export Division has been transferred to Avanti Frozen Foods Private Limited (AFFPL) under a slump sale arrangement w.e.f 01.11.2015. As AFFPL is in the process of obtaining requisite statutory and regulatory approvals to carry on the processing and export business in its name, Company is carrying on the business on behalf of AFFPL. As such the closing inventory i.e. Finished Goods amounting to Rs.5,768.25 lakhs and WIP of Rs.90.86 lakhs of current year belonging to Shrimp processing & Export Division being assets of AFFPL, are not considered in the Balance Sheet of Company.

8. Svimsan Exports and Imports Private Limited (SEIPL) is wholly owned subsidiary of the Company was incorporated during the Year 1998. As there are no operations in SEIPL from financial year 2002-2003

the SEIPL has incurred huge losses which has resulted in erosion of networth of SEIPL. As the net worth of the subsidiary company is negative and there is no scope for future operation in SEIPL, the company has decided to provide diminution of Rs. 100.00 Lakhs in the value of investment and also 100% provision against the advance of Rs. 90.56 Lakhs, given to the said subsidiary.

9. The Exceptional income is Countervailing Duty (CVD) of Rs. 493.68 Lakhs paid to U.S. Customs department in the year 2013-2014, now refunded by U.S. Customs.

10. An amount of Rs. 45.51 Lakhs exceptional income raised on account of Slump Sale of Processing &

Export Division to company''s wholly owned subsidiary Avanti Frozen Foods Private Limited and an amount of Rs. 102.57 Lakhs expenditure incurred towards stamp duty slump sale.

For the previous year, the equity shares and basic and diluted earning per share has been presented to reflect the adjustment for split (sub division) in accordance with accounting standard 20 earnings per share.

11. Discontinuing operations:

During the year the Company divested its Shrimp Processing & Export Division to its subsidiary M/S Avanti Frozen Foods Private Limited (AFFPL) under slump sale. The effective date of transfer of the Shrimp Processing & Export Division to AFFPL was 01.11.2015. Being a food products exporting company, Company has to transfer the statutory and regulatory licenses with in India and in USA to AFFPL so as to enable AFFPL to carry on the business in its name. The process of obtaining the approvals from all departments in India is a lengthy process. Once the inland approvals are obtained, Company has to approach US Department of Commerce for ''Changed Circumstances Review'' to allow AFFPL to export to US at Anti Dumping Duty of 2.96% which is presently applicable to Company. In the absence of this, all exports to USA by AFFPL will attract 10.17% ADD. In order to maintain the continuity of the business during these statutory approvals period, your Company is continuing the Shrimp processing & Export business in its own name on behalf of AFFPL.

As such, the revenue and related expenditures for the period from 01.11.2015 to 31.03.2016 of the transferred division i.e. Shrimp Processing & Export Division are shown in Statement of Profit & Loss of Company. However, the profit from operation for this 5 months period starting from 01.11.2015 to 31.03.2016 amounting to Rs.696.73 lakhs is transferred to AFFPL which is reflected in the standalone results as Extra Ordinary Expense. A detailed statement of the operations of Shrimp Processing & Export Division for the 7 months period from 01.04.2015 to 31.10.2015 and for 5 months period from 01.11.2015 to 31.03.2016 is given here under:

12. Gratuity (post-employment benefit plan)

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario

On account of divestment of shrimp processing division, the employee benefit obligation amounting to Rs. 89.98 Lakhs and plan assets of Rs.74.15 Lakhs as on 31st March, 2016 included in the above statement has been transferred to Avanti Frozen Foods Private Limited in accordance with Business Transfer Agreement (refer note no. 31).

13. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.1075.22 Lakhs (31st March,2015: Rs.17.59 Lakhs) which is net of capital advances of Rs.658.94 Lakhs (31stMarch,2015: Rs. 13.79 Lakhs).

14. The Customs and Central Excise Department raised demand for Rs. 1494.59 Lakhs and levied penalty of Rs.1504.59 Lakhs for customs duty forgone on duty-free imports of raw materials and non-fulfillment of export obligation for the period 1999-2000 to 2001-2002 when the Company was operating as a 100% EOU. Company had achieved Net Foreign Exchange Earnings in 2003-04 and the Development Commissioner of Visakhapatnam Export Procession Zone allowed Company to de-bond upon being satisfied with the fulfillment of exports made by the Company and foreign exchange earning obligations. Further, Company had paid Rs.1655.03 Lakhs excise duty on domestic sale of Shrimp feed in lieu of the duty free import of raw materials and spares. However, the Customs and Central Excise Department raised the demand without considering the amounts paid. This demand and levy of penalty was contested by the Company before CESTAT, Bangalore and Hon''ble CESTAT remanded the case back to The Commissioner for fresh adjudication after considering all the aspects raised by the Company. The Commissioner gave his order confirming the demand and Company again approached CESTAT against this order. The matter is pending before CESTAT, Hyderabad.

15. The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used some part for own consumption in manufacturing of shrimp feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand to Rs.29.22 Lakhs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

16. For the Assessment Year 2011-2012 Assessing officer disallowed an amount of Rs. 17.95 Lakhs U/s. 14A for the Investments made by the Company and raised demand for Rs. 5.13 Lakhs. Company is contesting the same before Commissioner Appeals.

17. Company approached High Court of Andhra Pradesh against levy and collection of Electricity Duty on self generated power from DG sets. Honble High Court granted stay on recovery of the same and the matter is pending for final hearing.

18. Company is importing Squid Liver Powder (SLP) which is one of the raw materials for manufacturing of shrimp feed. SLP is imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT, Chennai.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of operations.

19. For the Assessment year 2012-2013 assessing officer disallowed an amount of Rs. 6.07 Lakhs U/s. 14A read with rule 8D of Income tax act and an amount of Rs.159.85 Lakhs U/s. 80 IA for the profits from wind mill division which has resulted in a demand of Rs. 57.33 lakhs, the company being aggrieved with the said demand, filed an appeal before Commissioner Income Tax (Appeals).

(B) The Company has given guarantee of Rs. 6225.00 Lakhs to State Bank of India, Industrial Finance Branch, Sonmajiguda, Hyderabad for loans taken by the Avanti Frozen Foods Private Limited (a wholly owned subsidiary of the Company).

20. Details of dues to micro and small enterprises as defined under MSMED Act 2006.

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from the suppliers is still awaited. In view of this, the liability of interest cannot be reliably estimated nor the required disclosures could be made, Accounting in this regard will be carried out after the process is completed and reliable estimate made in this regard. However management is of the opinion that liability in any case will be insignificant having regard to the supplier''s profile of the company.

21. Segmental information I. Primary segment

Segment revenue and results

Segment assets and liabilities

22. Related party disclosures

23. Names of related parties and related party relationship:

Subsidiary Avanti Frozen Foods Private Limited

Svimsan Exports and Imports Private Limited

KeyManagerial Personnel Sri A. Indra Kumar, Chairman and Managing Director

Sri C. Ramachandra Rao, Joint Managing Director, Company Secretary and CFO

Relatives of KeyManagerial Personnel Sri N.V. Bhanu Prasad

Sri A. Venkata Sanjeev

Associate Companies Srivathsa Power Projects Private Limited

Patikari Power Private Limited

Companies overwhich Significant Srinivasa Cystine Private Limited

Influence is exercised SCL Trading Private Limited

Sanjeev Agro Vet Private Limited

Laxai-Avanti Life Sciences Private Limited

Sri Sai Srinivasa Agro Farms and Developers Private Limited

Mar 31, 2015

1. Corporate information

Avanti Feeds Limited, (the Company) is a listed public company under "The Companies Act, 1956", with its registered office in Visakhapatnam. Avanti Feeds Limited had started its commercial operations in 1993 and now stands as the leading manufacturer of Prawn Feed, Shrimp Processor and exporter from India catering to the quality standards of global shrimp customers and in providing best technical support to the farmer.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting standards specified Under Section 133 of the Companies Act, read with rule 7 of Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

3. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2015, the amount of dividend recognised as distributions to equity shareholders was Rs. 27.50 per share (31st March, 2014: Rs.15.00)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

4. The term loan of Rs.935.00 lacs (Present outstanding Rs. 85.40 lacs) was taken from State Bank of India, Industrial Finance Branch, Hyderabad for the implementation of shrimp feed manufacturing project at Gujarat. The loan is secured by first charge on fixed assets of the Company, pledge of 4.74 lacs equity shares of the Company held by Mr. A. Indra Kumar, pledge of 2.62 lacs equity shares of the Company held by Sanjeeva Agro-vet (P) Limited, Corporate Guarantee of Sanjeeva Agro-vet (P) Limited and personal guarantee of Mr. A. Indra Kumar, Chairman & Managing Director of the Company.

6. Vehicle loans are secured by hypothecation of respective vehicles. The loans are repayable in 6 months to 36 months.

7. Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers from 2001-02 to 2004-05 was converted in to interest free loan for period of 14 years repayable in yearly installments of Rs.146.45 lacs, Rs.142.98 lacs and Rs.180.47 lacs in March month of 2016, 2017 and 2018 respectively.

8. Security deposits taken from dealers for supplying them shrimp feed on credit terms. Interest is paid on these deposits @ 9% per annum (31st March, 2014: 9% p.a.).

9. Working capital loans of Rs.5,058.59 lacs was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets of the Company, pledge of 4.74 lacs equity shares of the Company held by Mr. A. Indra Kumar, pledge of 2.62 lacs equity shares of the Company held by Sanjeeva Agro-vet (P) Limited, Corporate Guarantee of Sanjeeva Agro-vet (P) Limited and personal guarantee of Mr. A. Indra Kumar, Chairman and Managing Director of the Company. The loan is repayable on demand and carries interest of 11.50% p.a..

10. As at end of current year, working capital loan from Robo Bank International, Mumbai is NIL and at end of previous year was Rs.50.31 lacs. The loan is secured by first charge on all current assets, second charge on fixed assets of the Company. The loan is repayable on demand and carries interest of 10.80% p.a.

11. Margin money deposits given as security

Margin money deposits with bank amounting to Rs. 228.04 lacs (31st Mar, 2014: 297.90 lacs) are lien marked for import LCs and for issuance of SBLC for Anti Dumping Duty purpose to US Customs Authorities.

12. Gratuity (post-employment benefit plan)

The Company operates a defined benefit plans, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

13. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.17.59 lacs (31st March, 2014: Rs.771.50 lacs) which is net of capital advances of Rs.13.79 lacs (31st March, 2014: Rs. 182.00 lacs).

14. Contingent liabilities (Rs. in Lacs)

For the year ended For the year ended 31st March, 2015 31st March, 2014

Demands raised by customs, service tax, sales tax, income tax and other authorities, being disputed by the Company* 3,102.96 3,045.43

a) The Customs and Central Excise Department raised demand for Rs.1494.59 lacs and levied penalty of Rs.1,504.59 lacs for customs duty forgone on duty free imports of raw materials and non-fulfilment of export obligation for the period 1999-2000 to 2001-2002 when the Company was operating as a 100% EOU. Company had achieved Net Foreign Exchange Earning in 2003-04 and the Development Commissioner of Visakhapatnam Export Procession Zone allowed Company to de-bond upon being satisfied with the fulfilment of exports made by the Company and foreign exchange earning obligations. Further, Company had paid Rs.1,655.03 lacs excise duty in lieu of the duty free import of raw materials and spares. However, the Customs and Central Excise Department raised the demand without considering the amounts paid. This demand and levy of penalty was contested by the Company before CESTAT, Bangalore and Hon'ble CESTAT remanded the case back to The Commissioner for fresh adjudication after considering all the aspects raised by the Company. The Commissioner gave his order confirming the demand and Company again approached CESTAT against this order. The matter is pending before CESTAT, Bangalore.

b) The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used some part for own consumption in manufacturing of shrimp feed and some part was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand of Rs.29.22 lacs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

c) For the Assessment Year 2011-2012 Assessing officer disallowed expenditure of Rs.17.95 lacs U/s. 14A, of Income Tax Act, 1961 and raised demand for Rs. 5.13 lacs. Company is contesting the same before Commissioner Appeals.

d) Company approached High Court of Andhra Pradesh against levy and collection of Electricity Duty on self generated power from DG sets. Honble High Court granted stay on recovery of the same and the matter is pending for final hearing.

e) Company is importing Squid Liver Powder (SLP) which is one of the raw materials for manufacturing of shrimp feed. SLP is imported by the Company under raw material classification. However, Customs has disputed our claim and demanding duty applicable for import of complete feed. The demand is being contested by the Company before CESTAT, Channai.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company's financial position and results of operations.

15. Details of dues to micro and small enterprises as defined under MSMED Act 2006.

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

16. Segmental information

I. Primary segment

The Company's business is organized into three main business segments mainly Shrimp Feed, Processing & Export of Shrimp and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system.

Shrimp feed is manufactured & marketed to the farmers, which is used in aqua culture to grow shrimp. Shrimp are purchased from the farmers and are further processed and exported to various countries.

Company had installed four wind mills of total 3.2MW at Chitradurga, Karnataka. Power generated from wind mills is sold to BESCOM under Power Purchase Agreement.

Segment revenue and results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

17. Related party disclosures

a) Names of related parties and related party relationship:

Related parties where control exists

Subsidiary Svimsan Exports and Imports Private Limited

Related parties with whom transactions have taken place during the year

Key Managerial Personnel

Sri A. Indra Kumar, Chairman and Managing Director

Sri C. Ramachandra Rao, Joint Managing Director, Company Secretary and CFO

Relatives of Key Managerial Personnel

Sri N.V Bhanu Prasad

Sri A. Venkata Sanjeev

Associate Companies

Srivathsa Power Projects Limited

Patikari Power Private Limited

Companies over which Significant Influence is exercised

Srinivasa Cystine Private Limited

SCL Trading Private Limited

Sanjeev Agro Vet Private Limited

Laxai-Avanti Life Sciences Private Limited

Sri Sai Srinivasa Agro Farms and Developers Private Limited

18. Previous year figures

Previous year figures have been regrouped / reclassified, where necessary, to conform to this year's classification.

Mar 31, 2013

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy as discussed in para 2.1(a) below.

1.1 Working Capital loans of Rs.4,628.42 lacs was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets, pledge of 4.74 lac equity shares of the Company held by Mr.A. Indra Kumar, Pledge of 2.67 lac equity shares of the Company held by Sanjeeva Agro-vet Private Limited and personal guarantee of Mr.A.Indra Kumar, Managing Director of the Company.

2.1 During the previous year Company imported 1500 MT of shrimp feed from Thai Union Feed Mill Co Ltd, Thailand and sold to its dealers to cater to the temporary increase in demand due to peak season.

3.1 Department of Commerce of USA carried out review and determined Anti-Dumping Duty (ADD) at 3.23% on shrimp exports made to USA during the period from 01.02.2011 to 31.01.2012. Company had paid ADD @ 1.69% at the time of export. The differential duty payable is Rs.111.53 lacs.

3.2 Company had set up Shrimp Shell Manufacturing plant in the year 2000 to process the waste generated from shrimp processing unit. Shrimp Shell Meal was used as a raw material for manufacturing shrimp feed. However, with the high cost of Furnace Oil, the processing of shrimp waste became unviable. The plant is idle since 2007 and there is no possibility of reviving it in future. The initial investment in Plant & Machinery was Rs.180.56 lacs in the year 2000 and the depreciated value was Rs.52.71 lacs in the year 2011-12 and was written off as impairment in the year 2011-12.

4.1 The Customs and Central Excise Department levied penalty of Rs.8.26 lacs for delay in payment of Service Tax on royalty for the period April 1, 2006 to September 30, 2008 paid to Thai Union Feed Mill Co. Ltd. This levy of penalty is being contested by the Company at CESTAT, Bangalore.

4.2 Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-06 and used part for own consumption in manufacturing of shrimp feed and rest was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old rates and a demand for Rs.29.22 lacs was raised. This is being contested by the Company in the High Court of Madhya Pradesh.

4.3 Company approached High Court of Andhra Pradesh against levy and collection of Electricity Duty on self generated power from DG sets. Honble High Court granted stay on recovery of the same and the matter is pending for final hearing.

5. Dues To Micro And Small Enterprises

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Segmental Information

I. Primary Segment

The Company''s business is organized into three main business segments mainly Shrimp Feed, Shrimp Exports and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp.

In Shrimp processing division, shrimp are purchased from the farmers and are processed and exported to various countries.

Company had installed four windmills of 3.2MW at Chitradurga, Karnataka Power generated from windmills is sold to BESCOM under Power Purchase agreement.

Segment Revenue & Results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

Segment Assets and Liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

II. Secondary Segment:

Geographical Segment:

Based on the Revenue attributable to the individual customers located in various parts of the world, the company''s business is organized into three key geographic segments, viz., India, USA and Rest of World.

7. Related Parties

7.1 Name of the related parties and description of their relationship:

1. Subsidiary : Svimsan Exports & Imports Limited

2. Key Managerial Personnel : Sri A. Indra Kumar, Managing Director

: Sri C. Ramachandra Rao, Joint Managing Director

3. Associate Companies : Srinivasa Cystine Private Limited

: SCL Trading Private Limited

: Thai Union Frozen Products PCL

: Thai Union Feed Mill Co. Ltd.

: Rama Sea Foods Private Limited

: Sanjeeva Agro Vet Private Limited

: Laxai-Avanti Life Sciences Private Limited

: Sri Sai Srinivasa Agro Farms & Developers Private Limited

4. Companies over which : Srivathsa Power Projects Limited Significant Influence is exercised : Patikari Power Private Limited

Mar 31, 2012

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy as discussed in para 2.1(a) below.

1.1 Amalgamation of Avanti Thai Aqua Feeds Private Limited with the company

a. In terms of the scheme of Amalgamation & Arrangement (Scheme) approved by orders dated 18th April, 2012 of Hon'ble High Court of Andhra Pradesh, M/s. Avanti Thai Aqua Feeds Private Limited (ATAF) whose core business is to manufacture and sell shrimp feed has been amalgamated with the Company with effect from April 1, 2011.

b. The amalgamation has been accounted for under the "Pooling Interest Method" as prescribed by Accounting Standard (AS-14) "Accounting for Amalgamation" issued by the Institute of Chartered Accountants of India.

c. In accordance with the said scheme:

1. All the assets, debts, liabilities, duties and obligations of "Avanti Thai Aqua Feeds Private Limited" have been vested in the Company with effect from April 1, 2011 and have been recorded at their respective book values under pooling interest method of accounting for amalgamation. There were no differences in the accounting policies of "Avanti Thai Aqua Feeds Private Limited" and the Company.

2. 10,83,042 equity shares of Rs. 10/- each have to be allotted to the shareholders of "Avanti Thai Aqua Feeds Private Limited" in the ratio of 20 equity shares of Rs. 10/- of the company for every 71 equity shares of Rs. 10/- each of "Avanti Thai Aqua Feeds Private Limited".

3. In accordance with the said scheme, any excess/shortfall of the Net Assets Value taken over by the Company over the paid-up value of equity shares to be issued and allotted has been transferred to Capital Reserve.

1.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders at Rs. 6.50 (March 31, 2011: Re. 1.00).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the Company, including its register of shareholders / members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.

2.1 The term loan of Rs. 935.98 (Rs.854.98 lacs is long term debt and Rs.81 lacs is classified as current maturities of the long term debt) was availed from State Bank of India, Industrial Finance Branch, Hyderabad for the implementation of shrimp feed manufacturing project at Gujarat by Avanti Thai Aqua Feeds Private Limited (ATAF). The loan is secured by first charge on fixed assets of Avanti Thai Aqua Feeds Private Limited, Corporate Guarantee of the Company & Srinivasa Cystine Private Limited, an associate company and personal guarantee of Mr. A.Indra Kumar, Managing Director of the Company.

2.2 Other loans stated above are vehicle loans and are secured by hypothecation of respective vehicles.

2.3 Company had availed sales tax deferment scheme in 2001-02. Under the scheme, the sales tax collected from the customers from 2001-02 to 2004-05 was converted in to interest free loan for a period of 14 years. The first installment of the loan is due for payment in June, 2015.

3.1 Security Deposits taken from dealers for supplying them shrimp feed on credit terms. These deposits are interest free.

4.1 Working Capital loans of Rs.3278.44 lacs was availed from State Bank of India, Industrial Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed assets, pledge of 7.36 lac equity shares of the Company held by promoters and personal guarantee of Mr.A.Indra Kumar, Managing Director of the Company.

5.1 Consequent to the amalgamation of Avanti Thai Aqua Feeds Private Limited (ATAF) with the Company, the shares held by the Company in Avanti Thai Aqua Feeds Private Limited got cancelled.

6.1 During the year Company imported 1500 MT of shrimp feed from Thai Union Feed Mill Co Limited, Thailand and sold to its dealers to cater to the temporary increase in demand due to peak season.

II. Defined benefit plans:

Provision for Gratuity and Leave Encashment has been provided in accordance with AS-15. Actuarial valuation was performed in respect of the Gratuity and Leave Encashment based on the following assumptions:

All actuarial gains and losses arising during the year are recognized in the Profit & Loss Account for the year.

The following table sets out the status of the leave encashment and gratuity plans as required under AS-15 (Revised)

Reconciliation of opening and closing balances of the present value of the defined benefit obligation

7.1 The amount of Rs.12.92 lacs represents furniture and fixtures that are discarded while renovating the office and also some of the computer systems and LAN were discarded as they are not compatible to the up graded IT environment.

7.2 Company had set up Shrimp Shell Manufacturing plant in the year 2000 to process the waste generated from shrimp processing unit. Shrimp Shell Meal was used as a raw material for manufacturing shrimp feed. However, with the high cost of Furnace Oil, the processing of shrimp waste became unviable. The plant is idle since 2007 and there is no possibility of reviving it in future. The initial investment in Plant & Machinery was Rs.180.56 lacs in the year 2000 and the depreciated value now is Rs.52.71 lacs, which is written off as impairment.

8.1 Number of equity shares of 90,83,042 includes 10,83,042 equity share to be issued to shareholders of Avanti Thai Aqua Feeds Private Limited (ATAF) as a consequence of amalgaments of Avanti Thai Aqua Feeds Private Limited (ATAF) with the Company. As per the Scheme of Amalgamation, the effective date of amalgamation is 1st April, 2011.

9. Commitments

Capital commitments not provided for on account of pending execution (net of Rs.101.88 lacs advance) - Rs. 79.06 lacs (Previous Year Rs. NIL).

10. Contingent Liabilities Not Provided For

(Rs. in Lacs)

As on As on

Particulars 31st March, 2012 31st March, 2011

Service Tax Demand 8.26 8.26

MP VAT demand for soya transactions in 2005-06 29.22 29.22

11. Dues To Micro, Small & Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

12. Segmental Information

I. Primary Segment

The Company's business is organized into three main business segments mainly Shrimp Feed, Shrimp Exports and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp. Shrimp are purchased from the farmers and are further processed and exported to various countries.

Company had installed four windmills of 3.2 MW at Chitradurga, Karnataka. Power generated from windmills is sold to BESCO under Power Purchase agreement.

Segment Revenue & Results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

Segment Assets and Liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

13.1. Consequent to amalgamation of Avanti Thai Aqua Feeds Private Limited (ATAF) with the Company, Thai Union Frozen Products PCL, Thailand, which had 48% equity in Avanti Thai Aqua Feeds Private Limited against which Thai Union Frozen Products PCL is to be issued 10,83,042 equity shares fully paid of Company, which is shown as Share Suspense Account. With the entitlement of 10,83,042 equity shares of the Company, the total holding of Thai Union Frozen Products PCL is at 25.12% and considered as Associate Company.

Mar 31, 2011

1. Contingent liabilities not provided for

Particulars As on As on 31.03.2011 31.03.2010 Rs. in Lacs Rs. in Lacs

On Account of Bank Guarantees 826.02 1120.32

On account of Inland Letters of Credit 22.69 -

On account of Foreign Letters of Credit 235.90 500.64

Service Tax Demand 8.26 8.26

MP VAT demand for soya transactions in 2005-06 29.22 29.22

2. Capital commitments not provided for on account of pending execution (net of advance) Ã Rs. NIL (Previous Year Rs. NIL).

3. a) Working Capital Loans from SBI, Industrial Finance Branch, Hyderabad is secured by the hypothecation of stocks of raw materials, finished goods, work-in-process, receivables and first charge on fixed assets of the company and guaranteed by Managing Director of the company in his personal capacity.

b) The term loan of Rs.1020.00 lacs was taken from SBI, Industrial Finance Branch, Hyderabad for the purpose of finance of windmills for power generation is obtained by first charge on the fixed assets of the company covering plant and machinery and other immovable assets both present and future and a second charge on all the current assets of the company and guaranteed by Managing Director of the company in his personal capacity. During the year an amount of Rs. 182.49 lacs was repaid. An amount of Rs.146.00 lacs is payable with in next 12 months period.

c) Vehicle loans availed from ICICI Bank Ltd., Magma Finance and Tata Capital Limited are secured by hypothecation of vehicles.

4. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2011.This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Un-claimed dividend pertinent to the year 2002-03 amounting to Rs.2,52,995/- was credited to the Investor Education and Protection Fund during the year.

6. Managerial remuneration:

Due to the inadequacy of Profits, the company has paid remuneration in accordance with the provisions of Table B of Part II of Schedule XIII of the Companies act, 1956.

The above remuneration excludes provision for gratuity, since the liability is determined for all the employees on an independent actuarial valuation basis. The specific amount of gratuity of directors cannot be ascertained separately.

7. Employee Benefits:

The company has classified the various benefits prescribed to employees as under:

I Defined Contribution Plans:

a) Provident Fund

b) State Defined contribution plans

- Employers contribution to Employee's Pension Scheme 1995.

- Employers contribution to Employees State Insurance

During the year the company has recognized the following amounts in the Profit and Loss Account:

- Employer's Contribution to Provident Fund Rs. 3,419,907/-

- Employers contribution to Employees State Insurance Rs.6,99,442/-

II. Defined benefit plans:

Provision for Gratuity and Leave Encashment has been provided in accordance with AS-15. Actuarial valuation was performed in respect of the Gratuity and Leave Encashment based on the following assumptions:

All actuarial gains and losses arising during the year are recognized in the Profit & Loss Account for the year.

III. Other Benefit Plans:

The Liability for leave encashment as at the year end is Rs.63,93,635/-

8. Segmental information

I. Primary Segment

The Company's business is organized into three main business segments mainly Shrimp Feed, Shrimp Exports and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp. Shrimp are purchased from the farmers and are further processed and exported to various countries.

Company had installed four windmills of 3.2 MW at Chitradurga, Karnataka. Power generated from windmills is sold to BESCO under Power Purchase agreement.

Segment Revenue & Results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

Segment Assets and Liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

II. Secondary Segment:

Geographical Segment

Based on the Revenue attributable to the individual customers located in various parts of the world, the company's business is organized into three key geographic segments, viz., India, USA and Rest of World.

9. Related Parties

Name of the related parties and description of their relationship:

1 Subsidiary : Svimsan Exports & Imports Limited

: Avanti Thai Aqua Feeds Private Limited

2. Key Managerial Personnel : Sri A. Indra Kumar, Managing Director

: Sri C. Ramachandra Rao, Joint Managing Director

3. Associate Companies : Srinivasa Cystine Private Limited

: SCL Trading Private Limited

: Srivathsa Power Projects Limited

: Patikari Power Private Limited

: Bounty Hatcheries Private Limited

4. Companies over which Significant Influence is exercised :

: Rama Sea Foods Private Limited

: Avanti Thai Bio Proteins Private Limited

: Sanjeeva Agro Vat Private Limited

10. The Hire Purchase Loans of Rs.121.85 Lacs are secured by the hypothecation of respective Vehicles.

The Company has entered into any financial lease contracts during the year. The Fixed Assets includes 'Vehicles' which were acquired under Hire Purchase arrangements and are in the nature of Finance Lease as defined in AS 19. The total carrying cost of the same and the installments payable in future and the finance charges debited to the profit and loss account are as under:

i) Carrying Cost as on 31st March, 2011 is Rs.96,42,152/- ( previous year Rs.42,15,273/-)

ii) Amount debited to the profit & loss account during the year is Rs.571,087/- ( previous year Rs. 65,969/-)

Wind Power division of the company enjoys 100% tax benefit for a period of 10 years under Section 80IA of the Income Tax Act, 1961. Therefore, amount of depreciation which will be adjusted during the initial period of 10 years aggregating to Rs.1109.56 lacs is not considered for providing the deferred tax liability.

12. Deferred Tax Assets/Liabilities:

Wind Power division of the company enjoys 100% tax benefit for a period of 10 years under Section 80IA of the Income Tax Act, 1961. Therefore, amount of depreciation which will be adjusted during the initial period of 10 years aggregating to Rs.1109.56 lacs is not considered for providing the deferred tax liability.

14. Other particulars as required under part II of schedule VI is either 'NIL' or 'NOT APPLICABLE' in case of this company.

15. Previous year figures have been regrouped / reclassified wherever considered necessary to conform to this year's classification.

Mar 31, 2010

1. Contingent liabilities not provided for

Particulars As on As on 31.03.2010 31.03.2009 Rs. in Lakhs Rs. in Lakhs

On Account of Bank Guarantees 1120.32 1,092.53

On account of Foreign Letters of Credit 500.64 631.36

MP VAT demand for soya transaction in 2005-06 29.22 --

2. Capital commitments not provided for on account of pending execution (net of advance) - Rs. NIL (Previous Year Rs. NIL).

3. a) Working Capital Loans from SBI, Industrial Finance Branch, Hyderabad is secured by the hypothecation of stocks of raw materials, finished goods, work-in-process, receivables and first charge on fixed assets of the company and guaranteed by Managing Director of the company in his personal capacity.

b) The term loan from SBI, Industrial Finance Branch, Hyderabad for the purpose of finance of windmills for power generation is obtained by first charge on the fixed assets of the company covering plant and machinery and other immovable assets both present and future and a second charge on all the current assets of the company and guaranteed by Managing Director of the company in his personal capacity.

c) The term loan of Rs.2000 lacs from ICICI Bank, Punjagutta, Hyderabad is obtained by first charge on the fixed assets of Srivatsa Power Projects Limited. During the year an amount of Rs.444.44 lacs has been repaid towards this loan.

d) Vehicle loans availed from ICICI Bank Ltd and HDFC Bank Limited are secured by hypothecation of vehicles.

4. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Un-claimed dividend pertinent to the year 2001-02 amounting to Rs.5,24,150/- was credited to the Investor Education and Protection Fund during the year.

6. Employee Benefits:

The company has classified the various benefits prescribed to employees as under: I. Defined Contribution Plans:

a) Provident Fund

b) State Defined contribution plans

- Employers contribution to Employees Pension Scheme 1995.

- Employers contribution to Employees State Insurance

During the year the company has recognized the following amounts in the Profit and Loss Account:

- Employers Contribution to Provident Fund Rs.29,40,807/-

- Employers contribution to Employees State Insurance Rs.4,97,331/-

II. Defined benefit plans:

Provision for Gratuity and Leave Encashment has been provided in accordance with AS-15. Actuarial valuation was performed in respect of the Gratuity and Leave Encashment based on the following assumptions:

All actuarial gains and losses arising during the year are recognized in the Profit & Loss Account for the year.

The following table sets out the status of the leave encashment and gratuity plans as required under AS-1 5 (Revised) Reconciliation of opening and closing balances of the present value of the defined benefit obligation

III. Other Benefit Plans:

The Liability for leave encashment as at the year end is Rs.55,84,960/-

1. Segmental information

I. Primary Segment

The Companys business is organized into three main business segments mainly Shrimp Feed, Shrimp Exports and Wind Mills. Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organization structure, and the internal financial reporting system.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow shrimp.

Shrimp are purchased from the farmers and are further processed and exported to various countries.

Company had installed four windmills of 3.2 MW at Chitradurga, Karnataka. Power generated from windmills is sold to BESCO under Power Purchase agreement.

Segment Revenue & Results

All segment revenues & expenses that are directly attributable to the segments are reported under the respective segment. The revenues and expenses that are not directly attributable to any segments are shown as unallocated expenses.

Segment Assets and Liabilities

Segment assets include all operating assets used by the business segment and consist principally Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated assets and liabilities respectively.

7. Related Parties

Name of the related parties and description of their relationship:

1. Subsidiary : Svimsan Exports & Imports Limited

2. Key Managerial Personnel

Sri A. Indra Kumar, Managing Director

Sri C. Ramachandra Rao, Joint Managing Director

3. Associate Companies

Srinivasa Cystine Private Limited Srivathsa Power Projects Limited Patikari Power Private Limited

4. Companies over which

Significant Influence is exercised

Rama Sea Foods Private Limited

Avanti Power Infrastructure Private Limited

Avanti Thai Aqua Feeds Private Limited

8. The Hire Purchase Loans of Rs. 42.15 Lakhs are secured by the hypothecation of respective Vehicles. The Company has entered into any financial lease contracts during the year. The Fixed Assets includes Vehicles which were acquired under Hire Purchase arrangements and are in the nature of Finance Lease as defined in AS 19. The total carrying cost of the same and the installments payable in future and the finance charges debited to the profit and loss account are as under:

i) Carrying Cost as on 31st March, 2010 is Rs.42,15,273/- ( previous year Rs. 7,92,306/-)

ii) Amount debited to the profit & loss account during the year is Rs.65,969/- (previous year Rs. 1,1 3,254/-)

9. Other particulars as required under part II of schedule VI is either NIL or NOT APPLICABLE in case of this company.

10. Previous year figures have been regrouped / reclassified wherever considered necessary to conform to this years classification.

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