2.8.13. Provisions:
Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost.
2.8.14. Contingent Liabilities
Disclosure of contingent liability is made when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable
that an outflow of resources embodying economic
benefits will be required to settle or a reliable estimate
of amount cannot be made.
2.8.15. Employee Benefits:
i) Short-Term Employee Benefits
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognised as
an expense during the period when the employees
render the services.
ii) Post-Employment Benefits
a) Defined Contribution Plans
The Company recognises contribution payable to
the provident fund scheme and ESI scheme as an
expense, when an employee renders the related
service. If the contribution payable to the scheme
for service received before the balance sheet date
exceeds the contribution already paid, the deficit
payable to the scheme is recognised as a liability. If
the contribution already paid exceeds the contribution
due for services received before the balance sheet
date, then excess is recognised as an asset to the
extent that the pre-payment will lead to a reduction in
future payment or a cash refund.
b) Defined Benefit Plans
The liability in respect of gratuity and other post¬
employment benefits is calculated using the Projected
Unit Credit Method and spread over the period during
which the benefit is expected to be derived from
employees' services.
Remeasurement gains and losses arising from
adjustments and changes in actuarial assumptions
are recognised in the period in which they occur in
Other Comprehensive Income.
iii) Employee Separation Costs
The Company recognises the employee separation
cost when the scheme is announced, and the
Company is demonstrably committed to it.
2.8.16. Earnings Per Share
a) Basic Earnings Per Share:
Basic Earnings per share is calculated by dividing
the Profit attributable to Owners of the Company
by the weighted average number of equity shares
outstanding during the financial year.
b) Diluted Earnings Per Share:
Diluted Earnings per Share adjusts the figures used
in determination of basic earnings per share to take
into account:
- the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and
- the weighted average number of additional
equity shares that would have been outstanding
assuming conversion of all dilutive potential
equity shares.
2.9. Recent accounting pronouncements
2.9.1. Ministry of Corporate Affairs ("MCA") notified
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
2.9.2. On May 9, 2025, MCA notified the amendments
to Ind AS 21 - Effects of Changes in Foreign
Exchange Rates. These amendments aim to
provide clearer guidance on assessing currency
exchangeability and estimating exchange rates
when currencies are not readily exchangeable.
The amendments are effective for annual
periods beginning on or after April 1, 2025.
The Company has assessed that there is no
significant impact in current and future periods
on its financial statements.
In August 2025, MCA notified the following
amendments applicable w.e.f. April 1,2025 to:
2.9.3. Ind AS 1, Presentation of Financial Statements
- The amendment relates to classification of
liabilities as current or non-current and non¬
current liabilities with covenants:
In the context of classifying a liability as current,
it removes the requirement of existence of a
unconditional right to defer settlement for at
least 12 months after the reporting date and
instead requires that the said right should exist
on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.
2.9.4. Ind AS 7, Statement of Cash Flows and Ind AS
107, Financial Instruments: Disclosures - The
amendment in Ind AS 7 requires to inform
users of financial statements of the existence of
supplier finance arrangements and explain the
nature of the arrangements, the carrying amount
of liabilities and the range of payment due dates.
Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may cause
concentration of liquidity risk. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have
any impact in its financial statements.
2.9.5. Ind AS 12, International Tax Reform - Pillar
Two Model Rules published by OECD. The
amendments provide certain relief in recognition
of deferred tax accounting for minimum top-up
tax but disclose the fact that they have applied
the relief. The company does not operate in
any of the jurisdictions where OECD pillar Two
model rules apply and have no impact on the
financial statements.
20(i) The Borrowing from bank is secured by : Bank of India
Primary Security:
By way of hypothecation of stock and receivables.
Collateral Securities:
1. Equitable mortgage of Factory land and building and plant and machinery situated vide Survey No.214, 271/5,
271/4 at Panasapadu village, Achampeta Panchayat, Samalkota Mandal.
2. Personal guarantee of two of the directors.
3. Lien on fixed deposit to the extent of C 357.22 Lakhs.
Terms of repayment :
The working capital loans are repayable on demand and carries an interest rate of 7% P.A benchmarked at Repo
Based Lending Rate.
Kotak Mahindra Bank ltd:
Primary Security:
Pari-passu charge by way of hypothecation of stock and receivables, current and future
Collateral Securities:
1. Equitable mortgage of factory land and building and plant and machinery situated vide Survey No.389/1, Door
No.2-88/1, Korangi Village and Grama Panchayati, Tallarevu Mandal, East Godavari District, Andhra Pradesh
- 533461.
2. Personal guarantee of two of the directors.
3. Lien on fixed deposit to the extent of C 2,290.70 Lakhs.
Terms of repayment:
The working capital loans are repayable on demand and carries an interest rate of 7.75 % P.A. The funded sanctioned
limit of C 2,500 Lakhs has not been availed at the balance sheet date.
20(ii) One Charge (PY Six Charges) amounting to C 5,517.10 (PY C9,338.25) Lakhs in respect of one lender with
ROC Andhra Pradesh are yet to satisfied, pending NOC from the lender for filing the satisfaction.
20(iii) The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.
20(iv) The Company has obtained borrowings from bank on basis of security of current assets wherein the
quarterly returns/ statements of current assets as filed with bank are in agreement with the books.
26D. Other Disclosures under Ind AS 115
There is no significant financing component as the sales are made with a credit period of 0-60 days, in line with the
customary business practices.
The Company does not have any remaining performance obligation in respect of which revenue is recognised
The company does not incur any cost for obtaining a contract with customer which is expected to be recovered.
There were no changes in the judgements made in applying revenue recognition that significantly affect the
determination of the amount and timing of revenue from contracts with customers.
ii) Post-employmentbenefitobligation- Gratuity
The company provides gratuity, as per defined benefit retirement plan ("the Gratuity plan") covering eligible
employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee's salary and
the tenure of employment with the company. Contributions are invested in a scheme with the Life Insurance
Corporation of India as permitted by Indian law.
The plan provides for lump sum payment after retirement/ superannuation as set out in rules of each fund and
includes death and disability benefits.
Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an
external actuary, at each balance sheet date using the projected unit credit method. These defined benefit plan
expose the company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk
37. (b). Note on Ultimate Beneficiaries
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(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall
directly or indirectly, lend or invest in other persons or entities 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.
37. (c). The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
37. (d). The Company did not have any transactions with companies struck off.
37 (e). The company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and
the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are
repayable on demand or without specifying any terms or period of repayment.
C. Personal guarantee:
The working capital facilities and term loans (excluding vehicle loans) of the company both funded and non - funded are
guaranteed by:
1. Mr. K. Satyanarayana Murthy
2. Mr. K. Subrahmanya Chowdary
*The remuneration paid by the Company to its Executive chairman, Managing Director and Whole time Director (hereinafter refer to “Key
Managerial Personnel”) for the year ended March 31, 2025 was restricted to the limits specified in section 197 of Companies Act, 2013
('the Act') read with Schedule V thereto as the Company did not have adequate profits.
39. Previous year figures have been regrouped wherever necessary to conform to this year's classification and the
changes are not material.
40. Capital Management
The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its
businesses for growth and creation of sustainable stakeholder value. The company sets the amount of capital
required on the basis of annual business and long term operating plans which include capital and other strategic
investments. The funding requirements are met through a mixture of equity, internal fund generation and borrowed
funds. The company tries to maintain an optimal capital structure to reduce cost of capital and monitors capital on
the basis of debt-equity ratio.
42. Disclosure relating to leases
As a lessor:
The Company has leased out its property under operating lease for initial period of 6 years. The remaining expiry
as at the year end is 7 months. There are no variable lease payments. The details of income from such leases are
disclosed under Note 23. The Company does not have any risk relating to recovery of residual value of property at
the end of leases considering the business requirements and other alternatives.
The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual
basis are as follows:
43. Disclosure in accordance with Ind AS- 40 Investment Property
The company has suspended the shrimp aquaculture farming operation in 2021 during the Covid-19 period.
However, to preserve the aquaculture ponds, and to use it effectively in the later years, the company has given these
ponds on lease for shrimp aquaculture. The company has option to procure the shrimp harvest from the lessee. As
this property is held for future use and the lease of the land having aquaculture farm is only to preserve the ponds,
land is not considered as an Investment property though it is leased out.
44. Disclosure on Government Grants
A. Capital Grants
1. EPCG Grant
Grant recognised in respect of duty waiver on procurement of capital goods under EPCG scheme of
Central Government which allows procurement of capital goods including spares for pre production and
post production at zero duty subject to an export obligations of 6 times of the duty saved on capital
goods procured. The amount of duties waived during the year is C 56.94 (PY: Nil) Lakhs and unamortized
capital grant amount as on March 31, 2026 is C56.94 lakhs (PY: Nil ) Lakhs. The company has satisfied
the export obligation to an extent of C Nil (PY: 251.87 ) Lakhs as at the year end. The company is treating
this government grant as capital grant and deducts the grant from the carrying amount of the asset. The
company expects to meet the export obligations in line with the scheme
B. Revenue grant
1. Export incentives received
a. Company is entitled for Duty Draw Back on the FOB value of Exports made. The amount received
under duty drawback is recognized as income under other operating revenue.
b. Company is entitled for Remission of Duties and Taxes on Exported Products scheme (RoDTEP)
which is introduced from January, 2021. The incentive is in the form of grant of Duty Credit Scrip
from D.G.F.T. The said Scrips are in turn, encashed by way of sale to importers. The entitlement of
scrips for the exports made during the year is recognised as income under other operating revenue.
46. Financial Risk Management
The company's activities expose it to variety of financial risks: market risk, credit risk, interest rate risk and liquidity
risk, within the boundaries of approved Risk Management Policy framework.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices.
a) Foreign Currency Risk
Foreign currency risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate
because of changes in foreign currency rates. Exposures can arise on account of the various assets and
liabilities which are denominated in currencies other than Indian Rupee.
The following table shows foreign currency exposures in US Dollar on financial instruments at the end of
the reporting period.
b) Interest Risk
The company does not have any investment except in fixed deposits which carries fixed interest rate. The
borrowings of the company also carry fixed interest rate and therefore, the company does not expect any
interest rate risk in this regard.
ii) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the
amounts due causing financial loss to the company. Credit risk arises from company's activities of dealing in
employee loans and advance and receivables from customers. The Company ensures that sales of products
are made to customers with appropriate creditworthiness. Credit information is regularly monitored by finance
function, with a framework in place to quickly identify and respond to cases of credit deterioration. Credit is
extended in business interest in accordance with guidelines and business-specific credit policies that are
consistent with such guidelines. Exceptions are managed and approved by appropriate authorities, after due
consideration of the counterparty's credentials and financial capacity, trade practices and prevailing business
and economic conditions.
The company has a prudent and conservative process for managing its credit risk arising in the course of its
business activities. Credit risk is actively managed through Letters of Credit, Bank Guarantees and advance
payments to the company to avoid concentration of risk. The Company's exposure to credit risk on employee
loans and advances is considered insignificant, as such loans are extended only to confirmed employees
under approved HR policies, with recoveries structured primarily through salary deductions and adjustments
against final settlement dues in case of resignation or termination; historical experience indicates negligible
defaults given the captive borrower profile, and outstanding balances are periodically monitored by HR and
Finance to ensure compliance with repayment schedules, while provisioning under the expected credit loss
(ECL) framework as per Ind AS 109 is assessed, though no material impairment is anticipated owing to the low
risk nature of these exposures.
The Company's historical experience of collecting receivables and the level of default indicate that credit risk
is low and generally uniform across markets; consequently, trade receivables are considered to be a single
class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues,
specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is
recognized, where considered appropriate by the management.
48. Distributions proposed
Final dividend on equity shares( FV of C10 each) of C2.5 (PY C2.) Per share amounting to C781.25 (PY C 625) Lakhs
has been proposed by the board of directors. Proposed dividend on equity shares is subject to approval at the
ensuing Annual General Meeting and are not recognised as a liability as at 31st March 2026.
49. The financial statements were approved for issue in accordance with a resolution of the board of directors on 30th
May 2026
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