We have audited the accompanying Standalone Financial Statements of Avanti Feeds Limited (“the
Company”) which comprise the Balance Sheet as at March 31st, 2026, the Statement of Profit and
Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement
of Cash Flows for the year ended on that date and notes to the financial statements, including a
summary of material accounting policies and other explanatory information (herein after referred to as
the “Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013
(“the Act”) in the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31st, 2026, its profit including other
comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the
ethical requirements that are relevant to our audit of the Standalone Financial Statements under the
provisions of the Companies Act, 2013 and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe
that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit
opinion on the Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the Standalone Financial Statements of the current period. These matters were addressed in
the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
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S. No
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Key Audit Matters
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Auditor’s Response
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1
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Accuracy of recognition, measurement,
presentation and disclosures of revenues
and other related balances in view of Ind
AS 115 “Revenue from Contracts with
Customers” (revenue accounting standard)
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Principal Audit Procedures
We assessed the Company’s process to identify the impact
of revenue accounting standard. Our audit approach
consisted testing of the design and operating effectiveness
of the internal controls and substantive testing as follows:
• We assessed the appropriateness of the revenue
recognition accounting policies by comparing with
applicable accounting standards.
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S. No
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Key Audit Matters
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Auditor’s Response
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The application of the revenue accounting
standard involves certain key judgements
relating to identification of the contract
with a customer, identification of
distinct performance obligations,
determination of transaction price of
the identified performance obligations,
the appropriateness of the basis used
to measure revenue recognized when
a performance obligation is satisfied.
Additionally, revenue accounting standard
contains disclosures which involves
collation of information in respect of
disaggregated revenue and periods
over which the remaining performance
obligations will be satisfied subsequent to
the balance sheet date. We have focused on
this area due to the complexities associated
with the determining the transaction price,
i.e., Contracted price net off trade and
other discounts.
Refer Note 2.4c and 21 to the Financial
Statements
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• Selected a sample of continuing and new contracts, and
tested the operating effectiveness of the internal control,
relating to identification of the distinct performance
obligations and determination of transaction price. We
carried out a combination of procedures involving enquiry
and observation, performance and inspection of evidence
in respect of operation of these controls.
• Tested the relevant information technology systems'
access and change management controls relating to
contracts and related information used in recording
and disclosing revenue in accordance with the revenue
accounting standard.
• Selected a sample of continuing and new contracts and
performed the following procedures:
• Read, analysed and identified the distinct performance
obligations in these contracts.
• Compared these performance obligations with that
identified and recorded by the Company.
• Considered the terms of the contracts to determine the
transaction price including any variable consideration to
verify the transaction price used to compute revenue and
to test the basis of estimation of the variable consideration.
• Samples in respect of revenue recorded upon transfer of
control of promised products or services to customers
in an amount that reflects the consideration which
the Company expects to receive in exchange for those
products or services, were tested using a combination of
sales orders, gate-in and gate-out passes, shipping bills
including packing lists, subsequent customs invoicing,
bills of lading, customer acceptances and historical trend
of collections and disputes.
• Performed analytical procedures for reasonableness of
revenues disclosed by type and service offerings.
• We reviewed the collation of information and the logic
of the report generated from the IT system used to
prepare the disclosure relating to the periods over which
the remaining performance obligations will be satisfied
subsequent to the balance sheet date.
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2.
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The Company enters into various financial
instruments such as investments in quoted
and unquoted equity instruments, quoted
mutual funds and quoted non-convertible
debentures. As at March 31st, 2026, financial
instruments carried at amortised cost and
fair value through profit and loss totalled
Rs. 1,14,380.32 lakhs (current investments
of Rs. 1,14,376.80 lakhs and non-current
investments of Rs.
3.52 lakhs) as disclosed in Note 6 to the
Standalone Financial Statements. These
financial instruments are recorded at
amortised cost and fair
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Our procedures included but were not limited to:
• Obtaining an understanding of the internal risk
management procedures and the systems and controls
associated with the origination and maintenance of
complete and accurate information relating to financial
instruments;
• Utilizing our treasury experts, we also tested on a sample
basis the existence and valuation of derivative contracts
as at March 31st, 2026. Our audit procedures focused on
the integrity of the valuation models and the incorporation
of the contract terms and the key assumptions, including
future price assumptions and discount rates; and
• Obtaining an understanding of key financial instrument
contract terms to assess the appropriateness of
accounting reflected in the financial report.
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S. No
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Key Audit Matters
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Auditor’s Response
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value as required by the relevant
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We have also assessed the appropriateness of the
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accounting standard. We have focused
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disclosures included in Note 38 to the Standalone Financial
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on this area due to the complexities
associated with the valuation and
accounting for these financial instruments.
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Statements
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3.
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Inventory valuation and existence:
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To address the risk for material error on inventories, our
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At the balance sheet date, the value of
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audit procedures included amongst other:
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inventory amounted to Rs. 56,322.08
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• Assessing the compliance of Company's accounting
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lakhs representing 17.36 % of total assets.
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policies over inventory with applicable accounting
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Inventories were considered as key audit
matter due to the size of the balance
and because inventory valuation involves
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standards.
• Observed the stock take process at Factory locations
during the year and at the end of the year and
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management judgment.
As described in Note 2.4i to the
Standalone Financial Statements,
inventories are carried at the lower of cost
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undertook our test counts wherever necessary.
• Compared the Quantities we counted with Quantities
recorded.
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and net realizable value on a weighted
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• Analysing the Inventory Ageing reports and Net
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average basis.
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realizable value of inventories
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The Company has segment specific
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• Tested that inventory on hand at the end of the period
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procedures for identifying risk for
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was recorded at the lower of cost and net realizable
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obsolescence and measuring inventories at
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value by testing a sample of inventory items to the
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the lower of cost and net realizable value.
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most recent retail price.
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4
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Purchase of Raw material:
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Following are some of the substantive tests that were
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Purchase of Raw material is being
considered as a key audit matter as the
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part of our auditing procedures in addition to testing the
internal controls' design and effectiveness:
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Company procures its principal raw
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• Internal controls relating to the purchase of raw
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materials from the suppliers and the price
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materials and payments made to the suppliers of the
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of the same is highly volatile to the market
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raw materials on the basis of source documentation
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conditions.
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have been assessed in terms of their design and
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Based upon the production requirements
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tested in terms of their implementation.
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and after considering the tentative
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• We have performed test of controls over procurement
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prices, the management decides the raw
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procedures to assess the operating effectiveness
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materials which have to be procured.
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of the controls placed in recognition of the cost of
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The total cost of raw material (including
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material consumption.
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packing material) purchased by the
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• We have conducted test of details through correlating
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entity for the financial year 2025-26 is Rs.
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the raw materials procured and the raw material
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3,44,191.42 lakhs as included in Note 23 to
the Standalone Financial Statements.
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consumed as per the production and stock reports.
• Understood the credit terms for payments to
suppliers and assessed whether the same have been
complied with.
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Information Other than the Standalone Financial Statements and Auditor’s Report
Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's
Report including Annexures to Board's Report, Business Responsibility Report and Shareholder's
Information, but does not include the Standalone Financial Statements and our auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the Standalone Financial Statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this regard.
Management’s Responsibility and Those charged with Governance for the Standalone Financial
Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these Standalone Financial Statements that give a true and fair view of
the financial position, financial performance including other comprehensive income, changes in equity
and cash flows of the Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the Standalone Financial
Statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing
the Company's ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether these Standalone Financial
Statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether the Company has adequate internal
financial controls with reference to Standalone Financial Statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor's report to the related disclosures in the Standalone Financial Statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user
of the Standalone Financial Statements may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the Standalone Financial Statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the
“Annexure-A”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company
so far as it appears from our examination of those books, except for the matters stated in
paragraph 2h(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014.
c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income), the Standalone Statement of Changes in Equity and the
Standalone Statement of Cash Flows dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors as on March 31st,
2026, taken on record by the Board of Directors, none of the directors is disqualified as on
March 31st, 2026, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to Standalone
Financial Statements of the Company and the operating effectiveness of such controls, refer
to our separate report in “Annexure-B”. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Company's internal financial controls with
reference to Standalone Financial Statements.
g) With respect to the other matters to be included in the Auditor's Report in accordance with
the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to
us, the remuneration paid by the Company to its directors during the year is in accordance
with the provisions of section 197, read with Schedule V of the Act.
h) With respect to the other matters to be included in the Auditor's Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and
to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position
in its Standalone Financial Statements - Refer Note 31 to the Standalone Financial
Statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the best of its knowledge and belief, no funds
have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person or entity,
including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediaries shall, whether, directly or indirectly lend or
invest in other person or entity identified in any manner whatsoever by or on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds
have been received by the Company from any person or entity, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, whether, directly or indirectly, lend or invest in other person or entity
identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c) Based on the audit procedures that were considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. a) The final dividend paid by the Company during the year in respect of the same declared
for the previous year is in accordance with section 123 of the Act to the extent it applies to
payment of dividend.
b) The Board of Directors of the Company have proposed final dividend for the year which is
subject to the approval of the members at the ensuing Annual General Meeting. The dividend
declared is in accordance with section 123 of the Act to the extent it applies to declaration
of dividend.
vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable
from April 1, 2023.
Based on our examination which included test checks, the Company has used accounting software
for maintaining its books of account for the financial year ended March 31st, 2026 which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software except in the case of records of property, plant
and equipment, payroll and inventory of finished goods which are being maintained manually.
Further, the feature of recording audit trail (edit log) facility was not available at the database
level to log any direct data changes for the accounting software used for maintaining the books
of account of the Company.
During the course of our audit we did not come across any instance of the audit trail feature
being tampered with and the audit trail has been preserved by the Company as per the statutory
requirements for record retention.
For TUKARAM & CO LLP
Chartered Accountants
ICAI Firm Registration No: 004436S / S200135
PACHARI MURALI
Partner
Place: Hyderabad Membership No: 221625
Date: 28-05-2026 UDIN: 26221625WZWTAY8688
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