q. Provisions and Contingent Liabilities
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. When the Company expects some or all of a provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
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.
A disclosure for contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an out flow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
r. Trade and other payables
Trade and other payables are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method.
s. Revenue recognition
Revenue from contracts with customers is recognized on satisfaction of performance obligation,
which occurs on transfer of control of promised goods or services to a customer i.e. at a point in
time, at an amount that reflects the consideration to which the Company is expected to be entitled
to in exchange for those goods or services.
The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon
formal customer acceptance depending on customer terms.
Interest Income
Interest income is recognised using effective interest method on time proportion basis taking in to
account the amount outstanding.
Dividend income
Dividend income is recognised when the Company's right to receive is established by the reporting
date, which is generally when shareholders approve the dividend.
t. Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease, if fulfilment
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an
arrangement.
Company as a lessee
The Company's lease asset classes primarily consist of leases for land and buildings. The Company,
at the inception of a contract, assesses whether the contract is, or contains, a lease. A contract is,
or contains, a lease if the contract conveys the right to control the use of an identified asset for a
time in exchange for a consideration. This policy has been applied to contracts existing and entered
into on or after April 1,2019.
The Company recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the Company's incremental borrowing rate. It is
remeasured when there is a change in future lease payments arising from a change in an index or
rate, if there is a change in the Company's estimate of the amount expected to be payable under
a residual value guarantee, or if the Company changes its assessment of whether it will exercise a
purchase, extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded
in the statement of profit or loss if the carrying amount of the right-of-use asset has been reduced
to zero.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets (assets of less
than INR 1 Lakh in value). The Company recognises the lease payments associated with these
leases as an expense over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the leased asset and recognised over the
lease term on the same basis as rental income. Contingent rents are recognised as revenue in the
period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts due from lessees under finance leases are
recorded as receivables at the Company's net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment
outstanding in respect of the lease.
The Company has decided to recognise operating lease as expense/ income on a straight-line
basis since the management believes that straight-line method is more representative of the time
pattern of the user's benefit.
u. Foreign currencies
The Company's financial statements are presented in Indian Rupees, which is also the Company's
functional currency. Items included in the financial statements of the Company are recorded using
the currency of the primary economic environment in which the Company operates (the “functional
currency”).
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company at functional currency
spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at functional currency
spot rates of exchange at the reporting date. Differences arising on settlement or translation of
monetary items are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions.
v. Employee benefits
Short term employee benefits
All employee benefits which are expected to be settled wholly within twelve months after the end of
the period in which employee renders the related service are classified as short-term employee
benefits. Undiscounted value of short term benefits such as salaries, wages, bonus and ex-gratia
are recognized in the period in which the employee renders the related service.
Post-employment benefits
Defined Contribution Plans:
The Company's Employee's Provident Fund scheme, Employee's State Insurance Scheme and
Employee's Superannuation Scheme are defined contribution plans. The Company's contribution
payable under the schemes is recognized as an expense in the statement of profit and loss during
the period in which the employee renders the related service.
Defined benefit plan
Gratuity
The Company operates a defined benefit gratuity plan, which requires contributions to be made to
a separately administered fund. The surplus or deficit arising in the defined benefit plan on the
balance sheet date comprises of the total for each of the fair value of plan assets less the present
value of the defined liabilities.
The cost of providing benefits under the defined benefit plan is determined based on independent
actuarial valuation using the projected unit credit method. The gratuity liability is measured at the
present value of the estimated future cash flows. The discount rates used for determining the
present value of the obligation under defined benefit plan, is based on the market yield on government
securities as at the balance sheet date.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings through
OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.
Past service costs are recognised in profit or loss on the earlier of:
The date of the plan amendment or curtailment, and
The date that the Group recognises related restructuring cost.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an expense
in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
- Net interest expense or income.
Other long term employee benefits:
Entitlement to annual leave is recognized when they accrue to employees. Annual leave can either
be availed or en-cashed subject to a restriction on the maximum number of accumulation of leaves.
The present value of the liability is determined based on independent actuarial valuation using the
Projected Unit credit method. The discount rates used for determining the present value of the
liability is based on the market yields on Government securities as at the balance sheet date.
Actuarial gains and losses are recognized immediately in the statement of profit & loss.
w. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
management of the Company.
Identification of segments
The Company's management examines the Company's performance both from a product and
geographic perspective. The Company's operating businesses are organised and managed
separately according to the nature of products, with each segment representing a strategic unit
that offers different products and serves different markets.
The analysis of the geographical segments is based on the areas in which major operating divisions
of the Company operate. Revenues and receivables are specified by location of customers while
other geographical information is specified by the location of the assets. Since all the assets are
located in India and revenue from customers located out of India is less than 10% of total revenue,
there are no reportable geographical segments.
Intersegment transfers
The Company accounts for intersegment sales on the basis of price charged for inter segments
transfers.
Allocation of common costs
Common allocable costs are allocated to each segment according to the relative contribution of
each segment to the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to
any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the accounting policies adopted
for preparing and presenting the financial statements of the Company as a whole.
x. Earnings per share
Earnings per share (EPS) is calculated by dividing the net profit for the year attributable to the
equity shareholders by weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to
equity shareholders and weighted average number of shares outstanding during the period is adjusted
for the effects of all diluted potential equity shares.
(e) There are no shares reserved for issue under options or contracts/commitments for the sale of
shares/ disinvestment as at 31st March 2025 and 31st March 2024.
(f) The Company has not allotted any bonus shares for the period of five years immediately preceding
31st March 2025 and 31st March 2024.
(g) The Company has neither allotted any shares as fully paid up pursuant to contracts without payments
being received in cash nor bought back any shares for the period of five years immediately preceding
31st March 2025 and 31st March 2024.
(h) The Company does not have any securities convertible into equity or preference shares as at 31st
March 2025 and 31st March, 2024.
(i) The Board of Directors, in it's meeting on 12th May 2025, proposed final dividend of Rs. 10/- per
equity share. The total dividend appropriation for the year ended 31st March 2025 amounts to Rs.
1408.74 Lakhs. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. The dividend proposed is in compliance with
the Companies Act, 2013.
The Board of Directors, in it's meeting on 10th May 2024, had proposed final dividend of Rs. 7/- per
equity share. The dividend was declared in the Annual General Meeting of the Company held on 11th
September 2024 and was paid within a period of 30 days from the date of declaration. The total
dividend appropriation amounted to Rs. 986.11 Lakhs. The dividend proposed, declared and paid
during the year is in compliance with the Companies Act, 2013.
Nature and purpose of reserves
(a) Capital Reserves: Amount received on reissue of forfeited shares and debentures is treated as
capital reserve. During amalgamation, the excess of net assets taken, over the cost of consideration
paid is treated as capital reserve.
(b) General Reserve: The Company has transferred a portion of the net profit of the Company before
declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956.
Mandatory transfer to general reserve is not required under the Companies Act, 2013. However, the
Company has voluntarily transferred an amount of Rs. 5,000.00 Lakhs (Previous year Rs. 5,000.00
Lakhs) to general reserve.
(c) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less
any transfers to general reserve, dividends or other distributions paid to shareholders.
7.3 FINANCIAL RISK MANAGEMENT
Financial risk factors
This note presents information about the Company's exposure to financial risks, the Company's objectives,
policies and processes for measuring and managing these risks and the Company's management of
capital.
The Company's financial instruments consist primarily of cash and cash equivalents, investment in
mutual funds, advances receivable, trade and other receivables and payables and long term and short
term borrowings. In the normal course of business, the Company is exposed to credit, liquidity and
market risk.
The Board has overall responsibility for the establishment and oversight of the Company's risk management
framework.
The Company's risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and
the Company's activities. The Company, through its training, management standards and procedures,
aims to develop a disciplined and constructive control environment in which all employees understand
their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company's risk
management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by
internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls
and procedures, the results of which are reported to the Audit Committee.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company's receivable
from customers. Credit risk primarily relates to trade and other receivables.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of counterparty to which the Company grants credit terms in the normal course of
business.
The Company has used expected credit loss (ECL) model for assessing the impairment loss. For this
purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision
matrix takes into account external and internal risk factors and historical data of credit losses from
various customers.
Other receivables consist primarily of security deposits, advances to employees and other receivables.
The risk of default is assessed as low.
Liquidity risk
The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its
working capital requirements. Due to the dynamic nature of the underlying businesses, the Company
maintains flexibility in funding by maintaining availability under committed credit lines. Management
monitors rolling forecasts of the Company's cash and cash equivalents on the basis of expected cash
flow.
The Company's current trade and other payables are all due within one year.
The table below summarises the maturity profile of the Company's financial liabilities as at 31st March
2025 based on contractual undiscounted payments:
Market risk
Interest rate risk
The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and
borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest
rate risk is managed through the Company's Board by using counterparties that offer the best rates
which enables the Company to maximise returns whilst minimising risk.
Interest is paid on monthly basis based on the actual interest rate prevailing during the month. Hence,
the Company is not significantly exposed to interest rate risk on such borrowings.
Foreign currency risk
In the normal course of business the Company enters into transactions denominated in Indian Rupees
and few transactions in foreign currencies. The Company is subject to exposure from fluctuations in
foreign currency exchange rates. Company's exposure to unhedged foreign currency changes is not
significant.
Commodity price and procurement risk
Commodity price risk arises from the risk of an adverse effect on current or future earnings from fluctuations
in the prices of commodities.
The principal directive is to procure commodities at the lowest cost to meet forecast requirements, both
internally and for external sales. The overall procurement strategy and net positions are reported monthly
to the Board and the oversight committees. The oversight committees are responsible for the setting of
the monthly company view with regard to future price movements. The daily trading by the procurement
teams are restricted in terms of this company view, unless prior approval is obtained from the oversight
Committees.
Capital risk management
The Board's policy is to maintain a strong capital base so as to maintain shareholder, creditor and
market confidence and to sustain the future development needs of the business. The Board monitors
both the spread of shareholders return on equity (which is defined as profit for the year expressed as a
percentage of average total equity) and the level of dividends paid to shareholders. There were no changes
to the Company's approach to capital management during the year.
(h) Expected contribution for future period:
The Company intends to contribute Rs. 588.00 Lakhs towards its gratuity fund during the financial
year 2025-26.
(i) Weighted average duration:
Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal
rate and interest rate) is 13.93 years.
(j) Risk Exposure:
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant
of which are detailed below:
Liability Risks
a. Asset liability mismatch risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities.
By matching duration with the defined benefit liabilities, the company is successfully able to
neutralize valuation swings caused by interest rate movements.
b. Discount Rate Risk
Variations in the discount rate used to compute the present value of the liabilities may seem
small, but in practice can have a significant impact on the defined benefit liabilities.
c. Future Salary Escalation and Inflation Risk -
Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting
in a higher present value of liabilities especially unexpected salary increases provided at
management's discretion may lead to uncertainties in estimating this increasing risk.
Asset Risks
All plan assets are maintained in a trust fund managed by a private sector insurer viz; ICICI Prudential
Life insurance Co. Ltd. The company has opted for a unit-linked fund which is market linked with
options to invest in equity funds. The company has the option to structure the portfolio based on its
risk appetite providing an opportunity to earn market linked returns. But there is an investment risk
here which is borne by the company. A single account is maintained for both investment and claim
settlement and hence 100% liquidity is ensured.
11. SEGMENT REPORTING
Business segment
The Company's management examines the Company's performance both from a product and geographic
perspective and has identified three reportable segments of its business. The ‘Poultry and Poultry
Products' segment produces and sells chicks, grownup commercial broiler, processed chicken, S.P.F.
eggs, poultry feed and other miscellaneous poultry products. The ‘ Animal Health Products' segment
produces and sells medicines and other health products for birds. The ‘Oilseed Segment' produces and
sells edible refined soya oil and soya de-oiled cake.
The operating businesses are organised and managed separately according to the nature of the products,
with each segment representing a strategic business unit that offers different products and serves
different markets. Transfer price between segments are measured on the basis of price charged for inter
segment transfers. Segment revenue includes transfer between inter segments. Those transfers are
eliminated in total revenue. Corporate expenses are allocated to other segments at cost.
Geographical segment
Revenue and receivables are specified by location of customers while other geographic information is
specified by location of the assets.
15 The Company does not have any transaction with the Companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.
16 The Company is not being declared as a wilful defaulter by any bank or financial institution or government
or any government authority.
17 No proceedings have been initiated or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
18 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 beneficiary.
19 The Company have 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 Company
shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
20 The Company has not operated in any crypto currency or Virtual Currency transactions.
21 During the year the Company has not disclosed or surrendered, any income other than the income
recognised in the books of accounts in the tax assessments under Income Tax Act, 1961.
22 Previous year's figures have been re-grouped / re-classified to conform to current year's presentation.
23 The Board of Directors, in it's board meeting held on 12th May 2025, approved the financial statements
for issue and the financial statements does not include any events after this date.
As per our report of even date For and on behalf of the Board of Directors of
VENKY'S (INDIA) LIMITED
For SUDIT K. PAREKH & CO. LLP ANURADHA J. DESAI B. VENKATESH RAO
Chartered Accountants Chairperson Vice Chairman
Firm Registration Number : 110512W/W100378 DIN : 00012212 DIN : 00013614
CH. SOMA RAJU B. BALAJI RAO J. K. HANDA
Partner Managing Director Chief Financial Officer
Membership Number : 200354 DIN : 00013551
ROHAN BHAGWAT
Place: Pune Place: Pune Company Secretary
Date : 12th May 2025 Date :12th May 2025 Membership Number : A26954
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