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Notes to Accounts of Avanti Feeds Ltd.

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, 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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