Apex Frozen Foods Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

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. During the year
ended March 31, 2025, MCA has notified Ind AS
117 - Insurance Contracts and amendments to Ind
As 116 - Leases, relating to sale and lease back
transactions, applicable from April 1, 2024. The
Company has assessed that there is no significant
impact on its financial statements.

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 on
its financial statements.

20(i) The Borrowing from bank is secured by :

Primary Security:

Exclusive charge on current assets of the Company by way of hypothecation of stock, receivables and Plant &
Machinery purchased out of bank finance.

Collateral Securities:

Equitable mortgage of 17762.80 sq. yds and 56047.2 sq. yds unit land and building at G. Ragampeta at R S No
209/2 and R S no 210/4 G at the factory location in the name of the company.

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 that are taken as principal security for
the earlier term loans which were closed but continued as collateral security for the working capital limit.

Personally guaranteed by two directors.

20(ii) Six Charges (PY Four) amounting to C 9,338.25 Lakhs (PY C9,191.45 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.

ii) Post-employment benefit obligation - 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 lumpsum payment after retirement/ super annuation 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.

The following tables set out the funded status and the amounts recognized in the company''s financial
statements as at March 31, 2025 and March 31, 2024:

The Present value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed
assumption is given below:

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase. The sensitivity analysis below, have been determined based on reasonably
possible changes of the assumptions occurring at end of the reporting period, while holding all other
assumptions constant. For presenting the sensitivities, the present value of the Defined Benefit Obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same as that applied in calculating the Defined Benefit Obligation presented above. There was no change
in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

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.

*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, 2024 is in excess by C63.57 lakhs, C51.17 Lakhs and C30.07 Lakhs
respectively vis-a-vis the limits specified in section 197 of Companies Act, 2013 (''the Act'') read with Schedule V thereto as the
Company does not have adequate profits. The excess remuneration was ratified and approved by the members at the 12^th AGM.

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

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 1 year and 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 is procuring 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 hence, 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 EPCG grant waived during the year is C Nil (PY: 20.62 Lakhs)
and unamortized capital grant amount as on March 31, 2025 is C Nil lakhs (PY: 251.87 ). The company
has satisfied the export obligation to an extent of C251.87 lakhs (PY: 5.09 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 has satisfied the performance obligation in respect of the same and
awaiting redemption of the licence.

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 Scripts 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.

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 ensure 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 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.

iii) Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date.
The company maintains sufficient stock of cash and committed credit facilities. Treasury monitors rolling
forecasts of the company''s cash flow position and ensures that the company is able to meet its financial
obligation at all times including contingencies.

The company''s liquidity is managed centrally with operating units forecasting their cash and liquidity
requirements. Treasury pools the cash surpluses from across the different operating units and then

48. Distributions proposed

Final dividend on equity shares( FV of C10 each) of C2 (PY C2.) Per share amounting to C625 Lakhs (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 31 March 2025.

49. The financial statements were approved for issue in accordance with a resolution of the board of directors on
29^th May 2025.

As per our report of even date attached For and on behalf of the Board of directors
For Padmanabhan Ramani & Ramanujam

Chartered Accountants
Registration No.002510S

Sd/- Sd/- Sd/-

P. Ranga Ramanujam K. S. Chowdary K. Neelima Devi

Partner Managing Director and Chief financial officer Whole time Director

Membership No. 22201 DIN No: 03619259 DIN No: 06765515

Sd/-

Kakinada B. Swathi Reddy

Dated : 29^th May, 2025 Company Secretary

---

Mar 31, 2024

3 (iii). There are no capital work in progress whose completion is overdue or has exceeded its cost compared to its original plan.

3 (iv). The title deeds of the properties are in the name of the company except for the title deed of the factory land at Panasapadu, East Godavari, Andhra Pradesh continued to be in the name of the erstwhile Partnership Firm M/s. Apex Exports which is converted as company under Part IX of the Companies act, 1956 in March, 2012.

3 (v). No proceedings have been initiated or pending against the company, for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) and the rules made thereunder. 3(vi). The company has not revalued its Property, plant & equipment (including Right of Use assets) and intangible assets during the year under report

3(vii). There are no intangible assets under development as at 31st March 2024. (Previous year - Nil)

(b) Terms/ rights attached to equity shares

The Company has issued one class of ordinary shares at par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts if any, in proportion to their shareholding.

Collateral Securities:

Equitable mortgage of 17762.80 sq. yds and 56047.2 sq. yds unit land and building at G. Ragampeta at R S No 209/2 and R S no 210/4 G at the factory location in the name of the company.

Factory land and building and plant and machinery situated vide Survey No.214, 271/5, 271/4 at Panasapadu village, Acham-peta Panchayat, Samalkota Mandal and at Tallarevu vide Survey No.389/1 that are taken as principal security for the earlier term loans which were closed but continued as collateral security for the working capital limit.

Personally guaranteed by two directors.

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

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

16 (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.

ii. Post-employment benefit obligation - 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 lumpsum payment after retirement/ super annuation 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.

The following tables set out the funded status and the amounts recognized in the company''s financial statements as at March 31, 2024 and March 31, 2023:

The Present value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed assumption is given below:

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

33 (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.

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

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

33 (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.

*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, 2024 is in excess by Rs.63.57 lakhs, Rs.51.17 Lakhs and Rs.30.07 Lakhs respectively vis-a-vis the limits specified in section 197 of Companies Act, 2013 (‘the Act'') read with Schedule V thereto as the Company does not have adequate profits. The Company is in the process of complying with the prescribed statutory requirements to regularize such excess payments, including seeking approval of shareholders, as necessary. Until then, the said excess amount is held in trust by said Key managerial personnel.

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

36. 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.

38. Disclosure relating to leases As a lessor:

The Company has leased out its property under operating lease for period of 6 years. There are no variable lease payments. The details of income from such leases are disclosed under and 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.

39. Dislcosure on Government GrantsA. 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 EPCG grant waived during the year is Rs. 20.62 lakhs (PY: 236.34) and unamortized capital grant amount as on March 31, 2024 is Rs.251.87 lakhs (PY: 236.34 ). The company has satisfied the export obligation to an extent of Rs. 5.09 lakhs (PY: NIL) 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 Grants1. 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 Scripts 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.

41. 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. The Company uses derivative instruments to manage the volatility of financial markets and minimize the adverse impact on its financial performance.

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.

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 ensure 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 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 management.

iii) Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The company maintains sufficient stock of cash and committed credit facilities. Treasury monitors rolling forecasts of the company''s cash flow position and ensures that the company is able to meet its financial obligation at all times including contingencies.

The company''s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in a range of short-dated, secure and liquid instruments.

43. Distributions proposed

Final dividend on equity shares( FV of Rs. 10 each) of Rs.2 (PY Rs.2.5 ) Per share amounting to Rs.625.00 Lakhs (PY Rs. 781.25 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 31 March 2024.

44. The financial statements were approved for issue in accordance with a resolution of the board of directors on 24 th May 2024.

---

Mar 31, 2023

1 (iii). There are no capital work in progress whose completion is overdue or has exceeded its cost compared to its original plan.

2 (iv). The title deeds of the properties are in the name of the company except for the title deed of the factory land at Panasa-padu, East Godavari, Andhra Pradesh continued to be in the name of the erstwhile Partnership Firm M/s. Apex Exports which is converted as company under Part IX of the Companies act, 1956 in March,2012.

3 (v). No proceedings have been initiated or pending against the company, for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) and the rules made thereunder.

3(vi). The company has not revalued its Property, plant & equipment (including Right of Use assets) and intangible assets during the year under report

4(vii). There are no intangible assets under development as at 31st March 2023. (Previous year - Nil)

(b) Terms/ rights attached to equity shares

The Company has issued one class of ordinary shares at par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts if any, in proportion to their shareholding.

13(1). The loan from Bank is guaranteed/secured by :-

(i) The loans from banks comprises of vehicle loans which are primarily secured by the respective vehicles financed.

(ii) Loans from LIC were secured by Employer-employee LIC policies and was without stipulation for the date of repayment.

13(2). Term of repayment of loans

From banks:

(ii) Maturity profile - Vehicle loan from banks

16(i)The Borrowing from bank is secured by :

Primary Security

Exclusive charge on Current assets of the Company by way of hypothecation of stocks of raw material, work in process, finished goods.

Collateral Securities:

Equitable mortgage of 17762.80 sq. yds and 56047.2 sq. yds unit land and building at G. Ragampeta at R S No 209/2 and R

S no 210/4 G at the factory location in the name of the company.

Factory land and building and plant and machinery situated vide Survey No.214, 271/5, 271/4 at Panasapadu village, Acham-peta Panchayat, Samalkota Mandal and at Tallarevu vide Survey No.389/1 that are taken as principal security for the earlier term loans which were closed but continued as collateral security for the working capital limit.

Personally guaranteed by two directors.

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

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

16(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.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

ii. Post-employment benefit obligation - 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 lumpsum payment after retirement/ super annuation 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.

The following tables set out the funded status and the amounts recognized in the company''s financial statements as at March 31, 2023 and March 31, 2022:

The Present value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed assumption is given below:

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

Note:

1. Reduction in loans and higher efficiency on working capital has resulted in improvement of the ratio.

2. Revenue growth along with higher efficiency on working capital management has resulted in an improvement in the ratio.

33 (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.

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

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

33 (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.

Note 33(f): The Company, with a view to avoid protracted tax litigation and for expeditious resolution preferred an settlement application on 26.12.2019 under Section 245C of the Income Tax Act for the earlier 7 financial years (2011-12 to 201718) on 26.12.2019. During the previous year ended March 31, 2023, the Interim Board for Settlement (Formerly Income Tax Settlement Commission passed an order determining the additional income of Rs.1308.78 Lakhs, comprising disallowance of expenditure of Rs.1182.89 Lakhs and unrecorded income of Rs.125.89 Lakhs. The corresponding tax liabilities have been provided/remitted in the current and the earlier years. The Company has not recorded the transactions of the said income in the books of account during the year.

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

36. 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.

38. Disclosure relating to leases As a lessor:

The Company has leased out its property under operating lease for period of 6 years. There are no variable lease payments. The details of income from such leases are disclosed under and 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:

39. Dislcosure on Government Grants A. Revenue 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 unamortized capital grant amount as on March 31, 2023 is Rs.236.34 lakhs (PY: NIL ). As the entire export obligation is wholly unperformed as at the year end, the amount recognised in the current year in the statement of profit & loss account as amortisation of revenue grant is Nil(PY: NIL). The company expects to meet the export obligations in line with the scheme.

2. Export incentives received

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.

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 Scripts 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.

41. 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. The Company uses derivative instruments to manage the volatility of financial markets and minimize the adverse impact on its financial performance.

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

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 derivatives and receivables from customers. The Company ensure 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 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 responsible management.

Exposure to credit risk

The allowance for impairment in respect of trade receivables during the year was Rs Nil (31 March 2022: Rs Nil) The gross carrying amount of financial assets for which 12 months expected credit loss recognised.

iii) Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The company maintains sufficient stock of cash and committed credit facilities. Treasury monitors rolling forecasts of the company''s cash flow position and ensures that the company is able to meet its financial obligation at all times including contingencies.

The company''s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in a range of short-dated, secure and liquid instruments.

42. Contingent liabilities and Capital Commitments
Particulars	As at March
	2023	2022
Contingent liabilities	676.42	NIL
Capital Commitments	74.66

*The Agriculture and Cooperation (MKTG-II) Department of Govt of Andhra Pradesh of G.O.Ms.No.27 dated 22.04.2022 has notified an increase in the market fee to 1% with effect from the date of Notification which was 22-04-2022 and Gazette

on 26.04.2022. This notification was challenged before the High Court of AP at Amaravati vide Wp No:15437 of 2022. The Honourable high court of Andhra Pradesh vide interim order dated suspended the operation of the above GO.

The company is contingently liable depending on the final order of the high court in the writ.

43. Adjustment of prior period errors

The company has provided lower deferred tax liability to an extent of Rs.699.68 Lakhs as on 31st March 2021 and Rs. 0.62 Lakhs for the year ended 31st March 2022 totalling to Rs 700.30 Lakhs up to 31st March 2022. This is an error relating to the prior period discovered during the year.

As required under Ind As 8 “Accounting policies, Changes in accounting estimates and errors”, the company has restated:

a) the retained earnings as at 1st April 2021 by reducing it by Rs. 699.68 Lakhs and

b) the provision of deferred tax liability in the statement of profit and loss for the year ended 31st March 2022 from Rs. 98.22 Lakhs to Rs. 98.84 Lakhs , by increasing the said liability / provision by Rs.0.62 Lakhs.

The consequential cumulative impact of the restatement in the balance sheet is that the Deferred tax asset as at 1st April 2021 and 31st March 2022 is restated from Rs. 231.04 Lakhs and Rs.132.82 Lakhs to Deferred tax liability of Rs. 468.64 Lakhs and 567.48 Lakhs and respectively.

The restatement of the provision for deferred tax liability for the year ended 31st March 2022 has the impact of reducing the reported figures of the profit for the year, Total comprehensive income by 0.62 lakhs (from Rs.4108.07 lakhs and 4777.09 lakhs to Rs.4107.45 lakhs and Rs. 4776.47 lakhs respectively) and reduction in the basic and diluted EPS of Rs 10/- per equity shares from Rs.13.15 to Rs. 13.14.

The adjustment of the deferred tax liability and the consequential restatement at the beginning of the 1st April 2021 and for the year ended 31st March 2022 does not have any current tax implications nor has any impact on the reported figures of any other assets or liabilities except as indicated above.

44. Distributions proposed

Final dividend on equity shares( FV of Rs. 10 each) of Rs.2.5 (PY Rs.2.5 ) Per share amounting to Rs.781.25 Lakhs (PY Rs. 781.25 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 31 March 2023.

45. The financial statements were approved for issue in accordance with a resolution of the board of directors on 30th May 2023.

---

Mar 31, 2018

Secured borrowings

i. Term Loans from Banks: As at the end of the period, the Company has a secured term borrowings of Rs. 585.49 Lakhs from Bank of India & HDFC Bank excluding Vehicle Loans. The same has been classified under Non-current Financial Liabilities (Rs. 309.67 lakhs) and Other Current Financial Liabilities (Rs. 275.82 lakhs).

ii. Primary Securities:

a. Term Loan-I from Bank of India, Kakinada Branch has an outstanding balance of Rs. 57.70 lakhs as on 31st March, 2018, which is secured by way of first charge of Company''s Land, Buildings and Plant & machineries.

b. Term loan - II from Bank of India, Kakinada Branch has an outstanding balance of Rs. 8.05 lakhs as on 31st March, 2018, which is secured by way of first charge on Company''s Land, Building and Plant & machineries.

c. Term loan - III from Bank of India, Kakinada Branch has an outstanding balance of Rs. 94.37 lakhs as on 31st March, 2018, which is secured by way of first charge on Machinery of the Company.

d. Term loan - IV from HDFC Bank, Kakinada Branch Rs. 425.37 lakhs is outstanding as on 31st March, 2018, which is secured by Property situated near D.No. 2-56, R.S.No. 389/1, Korangi Village, Tallarevu Mandal comprising of Land, Building and Plant & Machinery.

iii. Vehicle Loans

a. The Company has availed term loans for Vehicles from Banks and financial Institutions with tenor ranging from 36 to 38 Installments. As on 31st March, 2018, the Company has total such loans of Rs. 508.14 lakhs of which Rs. 216.93 lakhs has been classified under Other Financial liabilities under Financial Liabilities and Rs. 291.21 lakhs has been classified under Non-current Financial Liabilities.

EPC- Export Packing Credit

SWC- Standby Working Capital

FBP - Foreign Bill Purchase

PCFC - Packing Credit Foreign Currency

PCFC limit @ 50% of the EPC limits and SWC Limit

Working Capital facilities from the Banks are secured by hypothecation by way of first charge on the following assets of the company:

Primary security

Exclusive charge on Current assets of the Company by way of hypothecation of stocks of raw material, work in process, finished goods.

Collateral securities:

Equitable mortgage of residential land & building owned by Mr. K.S.Murthy, Managing Director of the company situated at D.No.2.23.14/1, Ward no.2, Block No.2, Sarada Street, Srinagar, Kakinada.

Equitable mortgage of residential land and building owned by Mr. K.S.Murthy, Managing Director of the company extent of 477.20 sq.yards situated at D.No.7-30, Seetharamapuram Sivaru, Tallarevu Mandal, East Godavari District.

Equitable mortgage of agricultural land owned by Mrs. K.Padmavathi, Share Holder of the Company extent of 12 acres situated at Survey No.273, 274 & 275, S.Yanam Village, Uppalaguptham Mandal, East Godavari District.

Factory land and building and plant and machinery situated vide Survey No.214, 271/5, 271/4 at Panasapadu village, Achampeta Panchayat, Samalkota Mandal and at Tallarevu vide Survey No.389/1 that are shown as principal security for the Term loans have been obtained as collateral security for the working capital limit

Guarantors:

1. Mr. K.S.Murthy

2. Mr. K.S.Choudary

3. Mrs. K. Padmavathi

Revenue from operations Sale of products

a. Export Sales are accounted for as and when Sale Invoices are raised as per RBI reference rate on the date of invoice. The difference if any between negotiation / realization rate and exchange rate of invoice is accounted as foreign exchange difference on receipt of particulars from negotiating bank.

b. The company during the year, besides processing and exporting of Shrimp has developed Hatcheries and the sales above include seed sales. Sales also includes sale of scrap arising out of processing of Shrimp.

Export benefits:

a. Company is entitled for Duty Draw Back @ Rs. 21.60 p. per Kg (Previously Rs.32.00 per Kg.) Or 2.70% (previously 4%) on FOB (whichever is lower) of Exports done. Accordingly, income on account of Duty Draw Back is recognized for Sale Invoices raised up to 31-032018 at the applicable rate.

b. Company is also entitled for Merchandise Exports from India Scheme (MEIS) from D.G.F.T. As per the scheme, company is eligible for grant of Duty Credit Scrip from D.G.F.T. The said Scripts are in turn, encashed by way of sale to importers at agreed rate. The Company during the year has changed the accounting policy of recognizing the Income on MEIS from Cash basis to accrual basis.

1. Employee benefits

i. Post-employment benefit obligation gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee''s last drawn basic salary per month computed proportionately for 15days salary multiplied for the number of years of service.

The amounts recognised in the balance sheet and the movements in the defined benefit obligation over the year are as follows.

2. Contingent liabilities

Bank Guarantees:

The Company has provided Bank guarantees to the tune of Rs. 21.64 Lakh

Stand-by-Letter of Credit: Rs. 695.97 Lakh

Letter of Credit: Rs. 1,064.38 Lakh

Export obligations:

Export Obligations on FOB Value of sales amounting to Rs. 24.32 Lakhs under E.P.C.G. Scheme is pending as on 31st March, 2018.

3. First-time IND AS adoption reconciliations

These are the Company''s first financial statements prepared in accordance with IND AS.

The accounting policies set out in Note No. 2 have been applied in preparing the financial statements for the year ended31st March 2017, the comparative information presented in these financial statements in the preparation of an opening IND AS balance sheet at 1st April, 2016 (the Company''s date of transition). In preparing its Opening IND AS Balance Sheet, the Company has adjusted the amounts reported previously in the financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP). An explanation of how the transition from previous GAAP to IND AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

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

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

IND AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to IND AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments. Accordingly, the company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

A.2 IND AS mandatory exceptions A.2.1 Estimates

An entity''s estimates in accordance with IND ASs at the date of transition to IND AS shall be consistent with estimates made for the same date in accordance with previous GAAP.(after necessary adjustments to reflect any difference in accounting policies)

B. Reconciliations between previous GAAP and IND AS

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

C. Notes to first-time adoption Note: 4 - Deferred tax

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

Accordingly, the management has recognized deferred tax liability of Rs. 634.50 Lakhs as at 31st March, 2017 (1st April, 2016 -deferred tax Liability of Rs. 701.36 Lakhs) on the above transition adjustments with a corresponding impact on retained earnings. Further, the deferred tax expense for the year ended 31st March, 2017 has decreased by Rs. 66.85 Lakhs.

Note: 5 - Re-measurements of post-employment benefit obligations

Under IND AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2017 decreased by Rs. 0.09 Lakh. There is no impact on the total equity as at 31st March 2017.

Note 6: Other comprehensive income

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

Note 7: Retained earnings

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

Note 8: Reclassifications

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

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

---

Mar 31, 2017

The previous period’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. However, the previous year financials are true and fair and are free from material misstatements. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

The amounts shown under the column “Current Maturities”, above, Rs 443.67 Lakhs pertains to the repayment commitments of the Company during the next 12 months.

Secured Loans

Term Loans from Bank:

As at the period end the company has a total secured term borrowings of Rs. 978.02 Lakhs from Bank of India and HDFC bank excluding vehicle loans. The same have been classified under non-current liabilities (Rs.595.60 Lakhs) and current liabilities (Rs.382.42 Lakhs).

Primary Securities

Term Loan-I from Bank of India, Kakinada Branch has an outstanding balance of Rs. 171.45 lakhs as on 31^st March, 2017, which is secured by way of first charge on Company’s Land, Building and Plant & machineries.

Term Loan- II from Bank of India, Kakinada Branch has an outstanding balance of Rs. 62.44 lakhs as on 31^st March, 2017’ which is secured by way of first charge on Company’s Land, Building and Plant & machineries.

Term Loan -III from Bank of India, Kakinada Branch Rs. 150.51 is outstanding as on 31^st March, 2017, which is secured by way of first charge on Machinery of Company.

Term Loan- IV from HDFC bank , Kakinada Branch Rs. 593.62 is outstanding as on 31^st March, 2017, which is secured by Property situated near D.No. 2-56, R.S.No. 389/1, Korangi Village, Tallarevu Mandal comprising of Land, Building, and Plant & Machinery.

Hire Purchase Loans:

The Company has availed purchase loans for Vehicles from Banks and financial institutions with a tenor of 36 Instalments. As on 31.03.2017, the Company has total such Loans of Rs. 128 Lakhs of which Rs. 61.25 Lakhs have been classified under current liabilities and Rs. 66.75 Lakhs have been classified under Non-current liabilities.

Other Long term Liabilities

Other long term liabilities includes loan from Life Insurance Corporation of India.

DEFERRED TAX LIABILITY (NET)

The cumulative deferred tax liability as on 31^st March, 2017 stands at Rs.156.44 Lakhs, including the current year provision of Rs.47.41 Lakhs (Deferred tax Liability).

The company has been availing its working capital requirements from Bank of India and HDFC Bank. Working Capital limits utilised as at the year end are as per the above table, while the total working capital limits sanctioned by the bank are in the table given below.

EPC - Export Packing Credit

SWC- Stand by Working Capital

FBP - Foreign Bill Purchase

PCFC - Packing Credit Foreign Currency

PCFC limit @50% of the EPC limits and SWC Limit i.e., at Rs. 2250 Lakhs rate of interest at 250 basis points over LIBOR.

Working Capital facilities from the Banks are secured by hypothecation by way of first charge on the following assets of the company:

Primary Security

Exclusive charge on Current assets of the Company by way of hypothecation of stocks of shrimps which inter-alia include stocks of raw material, work in process, finished goods.

Collateral Securities:

Equitable mortgage of residential Land &Building owned by Mr. K.S. Murthy, Managing Director of the company situated at D.No.2.23.14/1, Ward no.2, Block No.2, Sarada Street, Srinagar, Kakinada.

Equitable mortgage of residential Land and building owned by Mr. K.S. Murthy, Managing Director of the company extent of 477.20 sq.yards situated at D.No.7-30, Seetharamapuram Sivaru, Tallarevu Mandal, East Godavari District.

Equitable mortgage of Agricultural Land owned by Mrs. KPadmavathi, Share Holder of the Company extent of 12 acres situated at Survey No.273, 274 & 275, S.Yanam Village, Uppalaguptham Mandal, East Godavari District.

Factory land and building and plant and machinery situated at Survey No.214, 271/5 and 271/4 , Panasapadu village, Achampeta Panchayat, Samalkota Mandal, East Godavari District are shown as principal security for the Term loans have been obtained as collateral security for the working capital limit.

Guarantees:

1. Mr. K.S. Murthy

2. Mr. K.S. Choudary

3. Mrs. K. Padmavathi

Creditor balances are subject to confirmation and Reconciliation.

In the absence of necessary information relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

Short term provisions include an amount of Rs. 352.84 Lakhs of income tax payable (net off advance tax), managerial remuneration and payments to employee welfare schemes including insurance commitments to the tune of Rs. 367.73 Lakhs

Margin money of Rs.348.23 Lakhs is deposited with Bank of India against security for Nonfund based limits of Rs.750 Lakhs. (Letter of Credit DP/DA - 90 days: Limit of Rs. 150 Lakhs & Stand - by - Letter of Credit: Limit of Rs. 600 lakhs).

Deposits include deposits paid to Electricity department on own and lease hold lands which are refundable / adjustable at the time of termination of the lease as per the Lease Deed. Advances to Farms Rs.768.38 Lakhs represents amount advanced to various persons incharge of shrimp farms & Hatcheries.

Advances to Others Rs.566.29 Lakhs represents amount given as advances towards supply of material & services.

Revenue from Operations:

Sale of Products:

a. Export Sales are accounted for as and when Sale Invoices are raised as per RBI reference rate on the date of invoice. The difference if any between negotiation rate and exchange rate of invoice is accounted as foreign exchange difference on receipt of particulars from negotiating bank.

b. The company during the year, besides processing and exporting of Shrimp has developed Hatcheries and the sales above include seed sales. Sales also includes sale of scrap arising out of processing of Shrimp.

Export benefits (net)

a. Duty Draw Back:

Company is entitled for Duty Draw Back @ Rs. 32.00 p. per Kg (Previously Rs.28 per Kg.) Or 4% (previously 3.80%) on FOB (whichever is lower) of Exports done. Accordingly, income on account of Duty Draw Back is recognized for Sale Invoices raised up to 31/03/2017 at the applicable rate.

b. M.E.I.S:

Company is also entitled for Merchandise Exports from India Scheme (MEIS) from D.G.F.T. As per the scheme, company is eligible for grant of Duty Credit Scrip from D.G.F.T. @ 5% of realizations. The said Scripts are in turn, encashed by way of sale to importers at agreed rate. The company during the year has recognized such income to the extent realized and is disclosed under Export benefits.

Inventories include the finished goods at both the production locations Kakinada and Bapatla and work in progress includes the cost incurred on un-harvested shrimp farms and Hatcheries while stores and spares included chemicals and packing material.

Processing charges pertains to the amounts incurred on additional production facility at Bapatla which is leased in by the company to cater to its increased production requirements.

1. PRIOR PERIOD ADJUSTMENTS - EXTRAORDINARY ITEM

Corporate Social Responsibility:

During the year company has provided an amount of Rs. 52.06 Lakhs as CSR as per the requirements of Section 135 of the Companies Act, 2013. The said amount is yet to be spent. A detail of unspent amount which includes earlier years is reported as under:

2. CONTINGENT LIABILITIES

Bank guarantees:

The Company has provided bank guarantees to the tune of Rs. 5 Lakhs to AP Pollution Control Board.

Standby Letter of Credit: Rs 693.77 Lakhs

Letter of Credit: Rs 56.61 Lakhs

Export Obligations:

Export obligation on FOB value of sales amounting to INR 5.89 Crores under E.P.C.G. scheme is yet to be fulfilled by 31.03.2017.

3. Related Party Disclosures

Related Parties and Nature of Relationship :

NIL

NIL

Kev Management Personnel:

K. Satyanarayana Murthy Chairman & Managing Director

K.S ubrahmanya Chowdary Executive Director

Smt. K.Neelima Devi Director.

4. Disclosure on Specified Bank Notes (SBNs)

Information as required in the MCA notification G.S.R. 308 (E) dated 31st March, 2017, on the details of Specified Bank Notes (SBN) held and transacted during the period from 8^th November, 2016 to 30^thDecember, 2016,is furnished as under: