�1Avanti

a 1 Feeds Limited
Aiding Sustainability &
Reliability to Aquaculture

Ref: AFL/BSE&NSE/2019-20 13th July,2019

The Deputy General Manager National Stock Exchange India Limited

The Stock Exchange, Mumbai Exchange Plaza
Corporate Relations Department Sandra (East)
1st Floor, New Trading Ring Mumbai - 400 051.
Rotunda Building Fax: 022-26598237/38
Phiroze Jeejeeboy Towers,
Dalal Street, MUMBAI - 400 001
Fax: 022-2272 2041 / 22723121

BSE Code: 512573 NSE Code: AVANTIFEED

Dear Sir,

Sub: Avanti Feeds Limited - Notice of the Annual General Meeting to be held on
09.08.2019 - Reg.
Ref: Our letter No. AFL/BSE&NSE/2019-20 dated 25. 05.2019.

We are to inform you that the 261h Annual General Meeting (AGM) of the Company will be
held on Friday, the 91h August, 2019 at 11.00 A.M., at Vedika Hall, Hotel Dasapalla,
Jagadamba Junction, Visakhapatnam-530 020, Andhra Pradesh.

Pursuant to Regulation 34 (1) of SEBI (Listing Obligations and Disclosure Requirements)

Regulations 2015, we enclose herewith the Annual Report for the year 2018-19 (including
Notice of the AGM to be held on 09.08.2019 and Business Responsibility Report).

We are to inform that 26th Annual Report (including Notice of the AGM ) has been sent,
through (i) email to the members who have registered email ids with RTA of the Company i.e.
Karvy Fintech Private Limited, Hyderabad and (ii) by courier to the members who do not
have registered email id with RTA, on 13.07.2019.

Thanking you,

Yours faithfully,
FOR AVANT! FEEDS LIMITED

�-RQ��w
C. RAMACHANDRA RAO
JOINT MANAGING DIRECTOR &
COMPANY SECRETARY

Encl: As above.

Corporate Office: G-2. Concorde Apartments, 6-3-658. Registered Office: Flat No.103, Ground Floor, R Square,
Somajiguda. Hyderabad-500082. Telangana Stale, India. Pandur·angapuram. Visakhapatnam - 530003,
\. +91 (401 23310260 /61 !I +91 (401 23311604 Andhra Pradesh. India.
t www.avantifeeds.com CIN: L16001AP1993PLC095778
avantihoraavantifeeds.com
26 th
ANNUAL REPORT 2018-19

STAYING ON
COURSE
 Consolidated
Financial highlights of
FY 2018-19

Gross sales
Contents
Corporate Overview
`3,487.78 crores
About us 4
EBITDA
Our milestones 6
How we create value
Our financial progress 10
8
`461.07 crores
The Chairman’s Statement 12
Journey towards Excellence 14 Profit after tax

`306.62 crores
Our customers’ speak 18
Managing business risks 20
Social Responsibility 22
Awards and Recognition 25 Net worth

Statutory Reports `1,375.29 crores

Corporate Information 26
Board’s Report 27
Management’s Discussion and Analysis 56
Business Responsibility Report 59
Report on Corporate Governance 68

Financial Statements
Standalone Financial statements 98
Consolidated Financial statements 156

Notice 215

Equity share information

512573 AVANTIFEED `4 `5,558.61 400%

crore
BSE code NSE code Total Dividend Market Dividend
per share capitalisation pay-out ratio
 OUR INSPIRATION

Late Sri. Alluri Venkateshwara Rao

Founder Chairman
7th July 1933 - 25th June 2002

“Vision, Truth, Hard Work and Prosperity of all

Stakeholders were his four guiding principles”
We, at Avanti Feeds, continue to carry on his legacy on these principles.

AVANTI FEEDS LIMITED 1

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Company Overview Statutory Reports Financial Statements

Success is more
of a marathon
than a sprint. It’s
the persistent
moving along
the path,
focusing on
In the last few years, we had
one step after embarked upon improvement
programs, which were
another, and implemented across the
organisation. It was the strategic
refusing to be blueprint of working our way
towards a more strengthened
swayed by any future, patiently and with
purpose.
external factor We adhered to our journey then,
that often with disciplined determination.
And, we have managed to stay
makes all the firm on this path in the present
year as well!
difference.
In other words, we have
stayed on course with
unwavering resolve to see
through this phase and
attain what we had set out
for. This resolve has made all
the difference!

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About us

Avanti Feeds: The largest

manufacturer of shrimp feed in
India.
Based in Andhra Pradesh, India, the Spearheaded by Mr. Alluri Indra Kumar,
Company is the dominant player in India’s the Company’s day-to-day operations are
aquaculture sector. The Company has five managed by an experienced and energetic
shrimp feed manufacturing units and two team. Its shares are listed on The Bombay
shrimp processing and export units – all ISO Stock Exchange Limited and the National
certified. Stock Exchange of India Limited.

The Company enjoys strong and long-term The Company also operates 4 windmills
technical and financial collaborations with with a capacity of 3.2 MW at Chitradurga,
Thai Union Group of Thailand, a multinational Karnataka.
conglomerate in global sea food industry.

43.76 % 16.45 %
5558.61
Market
Promoters’ Institutional capitalisation,
holding holding March 31, 2019
(Rs crore)

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About our business verticals

Avanti Feeds: The Company

is into shrimp feed and shrimp
processing and exports

Shrimp feed Shrimp processing & exports

Plants 5 operating units 2 operating units
Kovvur, Vemuluru and Gopalapuram near Ravulapalem and at
Bandapuram in West Yerravaram in East Godavari District of
Godavari District, Andhra Pradesh, India.
Andhra Pradesh
Pardi in Valsad District,
Gujarat
Capacity 600,000 TPA 22,000 TPA
Certification ISO 9000:2015 ISO 22000:2005
Hazard Analysis and Critical Control
Points (HACCP)
US Food and Drug Administration (US-
FDA)
EU and British Retail Consortium (BRC)
Global Standards.
Aquaculture Certification Council (ACC)
for Best Aquaculture Practices (BAP).
Brands Profeed
Titan
Manamei
Products Shrimp feed Raw shrimps
Cooked shrimps
Skewers
Marinated products
Markets India USA
Bangladesh Europe
Japan
Korea
China
Australia
Middle East
Contribution to 78% 22%
the revenue

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Milestones along our

course this far
1) Commissioned our 1) Unit-I, Kovvur
shrimp feed plant Unit- capacity enhanced
II in Vemuluru with a from 20,000 MT per
capacity of 22,000 MT annum to 60,000 MT
per annum. per annum.
Began our journey Introduced cost-
with shrimp feed 2) Installed Individually 2) Unit-II, Kovvur effective P. Vannamei
manufacturing Unit-I Quick-Frozen (IQF) capacity enhanced shrimp culture
having 20,000 MT facility in shrimp from 22,000 MT per to make Indian
capacity per annum processing unit at annum to 60,000 MT aquaculture globally
at Kovvur. Gopalapuram. per annum. competitive.

1994 2002 2004 2009

1999 2003 2006

Commenced Block Entered into Commissioned four

Freezing shrimp a technical wind mills with
processing and collaboration 3.2 MW capacity
export unit with agreement with Thai in Karnataka.
3,000 MT per Union Feed Mill Co.
annum capacity at Ltd. for upgradation
Gopalapuram. and development of
feed for L.Vannamei
species.

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1) Commissioned
3rd shrimp feed
manufacturing plant 1) Doubled the feed
at Pardi in Valsad manufacturing
district of Gujarat capacity at Unit-IV
with a capacity Bandapuram with a
of 60,000 MT per capacity of 1,75,000
annum to cater to the MT per annum.
demands of India’s Divested shrimp 2) Commissioned
west coast. processing and state-of-the-art
2) Enhanced our export division to shrimp processing
shrimp processing subsidiary AFFPL and export plant
capacity from 3,000 to secure global at Yerravaram in
MT per annum to recognition for the subsidiary AFFPL
7,000 MT per annum shrimp processing with 15,000 MT
at Gopalapuram. and export division. capacity per annum.

2012 2016 2018

2014 2017 2019

Commissioned Commissioned We have stayed on

Unit-III shrimp feed Unit-IV shrimp feed course with unwavering
manufacturing plant, manufacturing plant resolve to see through
adjacent to Unit-I at Bandapuram with this phase and attain
at Kovvur with a a capacity of 1,75,000 what we had set out
capacity of 70,000 MT per annum. for. And this resolve has
MT per annum made all the difference!
adjacent to the Unit-I.

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STAYING ON COURSE

Creating value while staying

on course

What we do How we do it

We are India’s largest manufacturer

of shrimp feed.

419,472MT
Shrimp feed produced in 2018-19
Experience
We have 26 years of rich
experience in the shrimp culture
industry.

11,065MT
Shrimp processed and exported in
2018-19, by Avanti Frozen Foods Pvt.
Feed Formulation
Ltd. Our subsidiary
We have ideal feed formulation
which gives best feed conversion
ratio (FCR) to the farmer

Capacity buffer
We have the expertise for quick
capacity upscale to cater to
market demand.

Reach
We have a strong sales force and
wide dealer network, covering all
shrimp culture areas

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What value we create

Investors
Prudent financial management
with internal accruals for funding
expansions and not resorting
Support to high-cost borrowing Regular
We have a robust technical team to dividend payouts Sound corporate
advise farmers on culture and disease governance
management
Customers
Best quality feed with lowest Feed
Conversion Ratio (FCR) Timely
technical support to farmers
during culture
Management
We have put in place prudent Employees
inventory management system,
Supportive people policies,
thereby reducing overstocking of
almost zero staff turnover
finished products and raw materials.
Highly motivated team with
experience Continuous learning
and upgradation of technical and
commercial knowhow

Capability Suppliers
We have the state-of-the-art shrimp Timely payment to raw-material
processing plant in India with facility suppliers and investing in long-
to process advanced, value-added term relationships with them
and cooked products to cater to the
global demand. Communities (CSR)
Reaching out to communities
through various programmes on
health, education, environment and
infrastructure.

AVANTI FEEDS LIMITED 9

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STAYING ON COURSE

ANNUAL REPORT 2018-19

us this far
FY 2014-15 1,704.24
Staying on
FY 2015-16 1,935.31

FY 2016-17 2,615.74

(Rs crore)
Revenue
FY 2017-18 3,392.90
course has got
FY 2018-19 3,487.78

FY 2014-15 180.32

FY 2015-16 229.30

FY 2016-17 353.62

EBIDTA
(Rs crore)
FY 2017-18 730.89

FY 2018-19 461.07

FY 2014-15 116.57

FY 2015-16 158.98

FY 2016-17 226.30
(Rs crore)

FY 2017-18 466.48
Profit after tax

FY 2018-19 306.62
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Key ratios
2014-15 2015-16 2016-17 2017-18 2018-19
ROCE (%) 69 57 54 76 34
ROE (%) 44 38 35 49 23
Net debt to Equity 0.03 0.01 0.02 0.00 0.00
Inventory days 48 51 51 68 60
Receivable days 8 6 4 5 5

Earning Per EBIDTA margin ROCE

share (Rs) (%) (%)
32.77

22

14
20.08

14

9
13

8
15.83

11

7
10
11.56
8.51

FY 2018-19

FY 2018-19

FY 2018-19
FY 2014-15

FY 2014-15

FY 2014-15
FY 2015-16

FY 2015-16

FY 2015-16
FY 2016-17

FY 2016-17

FY 2016-17
FY 2017-18

FY 2017-18

FY 2017-18

AVANTI FEEDS LIMITED 11

STAYING ON COURSE

Building a sustainable
growth paradigm
“Fiscal 2018-19 has been a period in which your
Company maintained a stable performance on all fronts
while the shrimp industry was faced with the challenge
of sustainability and our success without a doubt is
owed largely to the unstinted patronage by the farmers
and committed employees across the board.”
with an increase in production and supply by other
shrimp exporting countries.

Moreover, prolonged summer this year resulted in

occurrence of diseases more than normal. As a result, the
shrimp culture in India declined by about 15-20%.

For us at Avanti, it was a double whammy. While

consumption of shrimp feed declined, the price of
key inputs used in manufacturing shrimp feed surged.
We had two options – increasing the feed price with
increasing cost of production or stick to our customers
retaining the same price level. We decided on the latter
despite realising that this decision would dent business
profitability. For it was the right thing to do. It helped us
gain farmer trust. This yielded interesting positives - we
added farmers to our client list and we expanded our
market share.
Dear shareholders,
The other important highlight of the year was that we
The fiscal that drew to a close was started exporting shrimp feed to neighbouring countries
one of the extreme challenges that which was well received by our international customers.
truly tested the robustness of the
business model and the resilience Shrimp processing: The global demand-supply
of the organisation to withstand the imbalance, took its toll in the first half of the year during
disruptive headwinds that derailed which declining global shrimp prices cast an ominous
sectoral growth. I am happy to state shadow on our business profits. But global shrimp prices
that we successfully overcame these stabilized thereafter. With it, revenue and profits from this
challenging times only to emerge vertical grew by 28.24% and 24.23% respectively over the
as a more robust and resilient previous year.
organisation.
Beyond the performance, I consider 2018-19 as an
2018-19 in retrospect inflection point in our shrimp processing and export
journey. For important reasons:
Having completed the most exciting
and successful periods (2017-18) in We strengthened our foothold in other shrimp
our corporate journey, where our importing nations namely China, Japan, Europe and
growth and profitability exceeded Korea.
our estimates, we expected that the We expanded our portfolio of value-added products,
good tidings would continue. But adding shrimp rings, marinated products, skewers,
that was not to be – for sectoral and vacuum-packed products to our export offering;
headwinds thwarted our progress. we have received a positive response from our
customers to our new products
Shrimp feed: The extended winter in
the US, resulted in slow movement of Prospects over the horizon
stocks which had a negative impact We are hopeful for improved performance in the current
on shrimp export prices coupled fiscal. My optimism stems from important factors:

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Shrimp feed: With farm gate prices having It is equally important that we acknowledge
regained normalcy, we expect the main culture the resolute faith and support of our extended
period, which started towards the close of family of customers, dealers, suppliers, financial
2018-19, will see normal stockings. We expect institutions and strategic partners who travel
shrimp feed demand in 2019 (calendar year) to with us in our journey.
be at the same level as in 2018 (between 10-11
I would like to extend my deepest appreciation
lakh tonnes). Having said that, we will focus
to them and hope to see this bond grow even
our energy on further strengthening technical
stronger over the coming years. Moreover, I
support to farmers to achieve higher yields,
would like to express my sincere gratitude to
while maintaining high-quality standards of the
my fellow Directors for their commitment and
feed. We will also endeavour to further improve
professionalism in paving Avanti’s long-term
the Feed Conversion Ratio (FCR) further. This
path.
should result in growing our volumes and
market share. Mr. Alluri Indra Kumar
Chairman and Managing Director
Shrimp processing: Globally there is an
increasing preference for white meat compared
to red meat – which supports an increase
in demand for shrimp consumption on a
sustainable basis. Furthermore, there is more
value being demanded by the market. So,
companies with a wider range of value-added
products and a strong and transparent supply
chain in India will be preferred by global
importers. In these aspects, I believe, we score How Avanti became a leader?
significantly higher than the competition.
In 2009, the Government made a
We will work on increasing the offtake of our decisive move to change the course
value-added products which have been well of shrimp farming in the country. It
received by the markets. We will work towards allowed commercial cultivation of the
adding new accounts in the new geographies whiteleg shrimp, also known as Litope-
even as we will endeavour to scale up sales naeus vannamei. For this variant grew
faster, was more resistant to disease
to existing customers. We will also look at
than the black tiger shrimp and was
expanding our global footprint into newer
more lucrative to cultivate.
markets which should open new growth
opportunities over the horizon. These efforts On the ground, Avanti spearheaded
should facilitate in improving the capacity this change
utilisation of our processing facility and It convinced the farming community
improve business profitability going forward. to get into the cultivation of van-
namei shrimps.
Shrimp hatchery: This new investment should
be operational in the current year. While It partnered Thai Union Group,
sticking to our core ethic of ‘quality at all cost’ one of the largest global seafood
we remain hopeful of making a decent head companies to manufacture feed for
start in this new revenue vertical. white leg shrimp
By 2017, the production of white leg
Acknowledgment shrimp touched 4.5 lakh tonnes in 2017,
Fiscal 2018-19 has been a period in which your from 10,000 tonnes in 2010. While
Company maintained a stable performance on the production of black tiger shrimps,
all fronts while the shrimp industry was faced which was at 50,000 tonnes in 2009,
with the challenge of sustainability and our was eventually stopped by 2015. Avanti
success without a doubt is owed largely to emerged as the largest producer of
the unstinted patronage by the farmers and shrimp feed in India.
committed employees across the board.

AVANTI FEEDS LIMITED 13

STAYING ON COURSE

At Avanti…. we
took small but
steady steps
in incremental
improvement.
This strategy
yielded interesting
returns.
So… even when the
shrimp feed market
declined by 15-20%, our
market share increased
from 43% in 2017-18 to
47% in 2018-19.

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This is what we did…

Kept the prices of our shrimp
feed unchanged despite an
increase in costs to ensure
sustainability of shrimp
culture by farmers.
Strengthened our technical
support and monitoring of
farms to ensure remunerative
yields to farmers.
Added about 1400 new
farmers to our customer
base.

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STAYING ON COURSE

At Avanti….
we gradually
extended our
footprint into the
new and growing
global markets.
This effort paid
off.
So.. even when shrimp
exports from India
reduced compared
to previous year level,
our sales volumes
and value jumped by
40.83% and 29.48%
respectively over 2017-18.
Moreover, the Company enlarged its
global customer base to reduce its
dependence on US market. In this
direction, exports to the US was 74%
in March 2019 as compared to 85% in
March 2018.
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This is what we did…

• Increased volumes with
existing customers; added
new customers.
• Established a meaningful
footprint; in other non-US
geographies.
• Increased the sales volumes
of value-added products by
347% over the previous year.

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Our aqua farmers are our

ambassadors

I am so grateful to Avanti I am shrimp farmer since 13 I took up shrimp farming as

Feed for its intensive farming years. I started with 4 acres. my core business in 2000.
system. While this system is Since then, I am associated I have witnessed and been
proven in other areas, it was with Avanti Feeds. Now am through many up and downs.
not accepted in our area. doing shrimp farming on In 2008, I started using Avanti
With their help and valuable 80 acres. This is all because feed. It is better in terms of
knowledge from Avanti feeds of Avanti’s technicians. growth, FCR and the health
technical team, I was able They have good practical condition of my shrimps has
to significantly improve my knowledge on shrimp farming improved greatly. Since then
overall production and profits. and trouble-shooting for I am using only Avanti Feeds.
We look forward to a long and disease management. Their All the best Team Avanti.
lasting partnership with Avanti timely suggestion made me
feeds company. succeed in farming. Y Ravindrababu
Vetapalem
Harsha Mr. K Sudheer Reddy
Om Aqua Gangapatnam

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I have been using Avanti I am using Avanti feeds in 52 I am doing shrimp farming
feeds from the past 10 years. acres. Recently, I got a total in 80 acres. I started using
I am highly satisfied with the crop biomass 180 MT’s yield Manamei only three years
feed quality and FCR. The in 40 count. I am using Avanti ago. But since then I have
quality and timely service for 11 years and getting the never lost a crop. I am getting
of helps us a lot. Their lab best FCR. In my view everyone consistent profit. I also like the
facility for farmers is also very must use Manamei for feed quality and their timely
good which help me a lot for successful vannamei farming. after sales service. Thank you
success in culture. Avanti!
Nadimpalli Veeravenkata
Sridhar Reddy Surya Varma Srihari
Kota Muramalla Munipalle

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Risk management

If you don’t
invest in risk
management, it
doesn’t matter
what business
you’re in, it’s a risky
business.
-- Gary Cohn

Risk management at Avanti is an integral

part of the business model, focusing
on making the business model emerge
stronger and ensuring that profitable
business growth becomes sustainable.
The risk management framework
encompasses strategy and operations
and seeks to proactively identify, address
and mitigate existing and emerging risks.

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Growth risk exports of the Company’s processed

products in 2018-19 bear testimony to its
Maintaining consistent growth is one of the
superior quality and disciplined adherence to
formidable risks for the shrimp industry.
regulatory compliances.
Mitigation: This augurs well for the
Geographic concentration risk
shrimp cultivation sector in general
and for the Company in particular. Over-dependence on any particular market
On the one hand, this would for its revenue could impact the Company’s
increase the demand for shrimp growth prospects.
feed, while on the other, it
strengthens the demand for Mitigation:
the Company’s processed 1) Shrimp feed: Presently, the Company
products. Furthermore, has almost 48% of the shrimp feed market
the commencement of in India and further significant increase in
the hatchery unit in the the domestic market share is a formidable
current year should also challenge. While keeping its efforts as to
generate interesting have a larger domestic market, the Company
volumes for the has started exporting to neighbouring
Company. These factors countries to increase the volumes.
should lead to healthy
business growth in the 2) Shrimp exports: The prospects of shrimp
current fiscal. exports by the Company have improved
considerably, especially for value-added
Regulatory risk products due to global standard quality of
products, prompt delivery and competitive
Disciplined alignment
prices.
with the stringent
regulatory norms is The Company has established a presence
necessary for sustaining in China, Japan, Europe, and Korea, among
business operations. other nations for its processed shrimp –
reducing its dependence on the US for these
Mitigation: Avanti’s team products.
has always been a step
ahead in mapping and Cost risk
aligning with global regulatory An increase in costs, especially of inputs
policies and guidelines. could impact business profitability.

The US customs department Mitigation: An increase in the input costs will

recently enacted the SIMP guidelines impact the entire shrimp feed sector. And
(January 1, 2019). Under this enactment, Avanti will be no exception to this trend. But
the exporting country is required to provide the impact on profitability could be reduced.
documentation to the US NOAA about This is because superior feed, enduring
the credibility and quality of the products farmer trust and an industry beating FCR
which are entering the US. Avanti has been would continue to drive volumes. This would
submitting the required documents to the help in absorbing costs better.
US agencies from October 2018. Increasing

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A socially
responsible
Indian Corporate
Avanti’s business extends beyond the scope of its plant walls to include the well-being of the
society at large with focus on resident in the vicinity. This is because the Company nurtures the
belief that an island of prosperity cannot sustain in a landmass of misery.

As a good corporate citizen, Avanti has been making enduring impact through its Social
Responsibility programs that promote social and economic inclusion.

The Company’s social upliftment initiatives focus around education, healthcare, sports, livelihood,
infrastructure development and environmental conservation, which facilitates in bettering lives
and improving livelihood, amongst others.

Education communities near us. We provided school

furniture, books and uniforms for the
Education has been one of our key areas children.
of focus for we believe that an educated
individual is one who will, over a period of Repaired the buildings and constructed
time, contribute to nation building. In keeping toilets in government-run schools.
with this belief we have implemented the
During 2018-19, we implemented the following
following initiatives
initiatives
Established a college with graduation and Contributed to a Trust for providing quality
post-graduation courses in commerce education to disadvantaged girl children
and science streams. The college has a from marginalized and economically poor
strength of 1,750 students, 60% of whom families.
are women.
Provided infrastructure facilities to
Contributed towards the construction government schools for promoting
of new buildings in ABN & PRR College, education in rural areas.
Kovvur and JKC College, Guntur in Andhra
Pradesh to accommodate the increasing o Donated desks to Burugupalem ZPH
number of students. School.
o Provided computer at ABGZPP High
Upgraded the infrastructure in Panchayat-
School pasivedala, Kovvuru.
run primary and secondary schools in rural

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Infrastructure Odisha, Tamil Nadu and West Bengal

under Agricultural Extension project.
Basic amenities are essential for comfortable
living. In keeping with this belief, the Company Provided training and educational tour to
made meaningful contributions for providing shrimp farmers.
basic utilities to the rural masses.
During the year under review, the Company
continued its efforts towards strengthening
Established an old age home in
infrastructure facilities around the periphery
Kannapuram near Kovvur in Andhra
of its operating units
Pradesh, which has 100 residents.
Deployed water treatment RO plants in a Contributed to Sowbhagya Durga Old
number of villages in the coastal areas of Age Home Corpus fund to take care of
Gujarat and Andhra Pradesh for providing inmates.
safe drinking water. Donated a tractor Bandapuram
Provided equipment aerators, sludge Municipality for furthering agriculture in
removing pumps and weighing scales to the area.
shrimp farmers in Andhra Pradesh, Gujarat, Deepened ponds at villages Balda.

Environment Conducted extensive plantation on both

sides of village roads and highway roads
Even as we worked on multiple areas to as part of the development of green belt
improve the quality of life of the rural Indian, and environment protection.
we maintained our focus on reducing our
burden on mother Earth by undertaking Extended help to other organisations to
positive environment measures. intensify urban forestry initiatives.

Developed and maintain a Goshala

(shelter for cows) with 50 cows at Kovvur
for protecting and promoting local breed
cows.

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STAYING ON COURSE

Health Transfusion Centre at Eluru, Andhra

Pradesh.
We believe in the time-tested adage ‘health
is wealth’. This is true especially for the Committed to ‘Hrudaya Cure - A Little
rural masses for health issues can and do Heart Foundation’, which provides
completely demolish families and thrust the complete medical care to infants with heart
household into abject poverty. We make problems from economically weak families
out little contribution to strengthen the in Andhra Pradesh and Telangana.
rural infrastructure and facilities for our rural
Assisted in improving the infrastructure at
brethren.
the maternity ward of Kovvur Government
Conducted free medical camps for Hospital and the Government Veterinary
economically backward population in Hospital in Kovvur, Andhra Pradesh.
communities near our factories at regular
intervals and medicines are distributed free
of cost to patients.
Organised free eye check-up camp at
Kovvur
Contributed to Indian Red Cross Society
for upgradation and establishment of
Thalassemia, sicklecell and haemophilia

Encouraging sports indoor court at Kovvur, Andhra Pradesh

A fit and active body leads to a healthy and during the reporting period.
stable mind. In keeping with this philosophy, During 2018-19, we organised a Volley ball
the Company made significant efforts to summer coaching camp for children which
promote sports for the children and youth of was followed by a tournament at Kovvur in
rural areas surrounding its operating facilities which 6 district teams participated.
Sponsored World Ranking Snooker
Tournament at Visakhapatnam and
Federation Cup Volleyball Championship at
Bhimavaram, Andhra Pradesh and village
cricket tournament at Kossamba in Gujarat.
Organised coaching camps for children
for sports like volleyball and badminton,
while conducting volleyball, badminton and
cricket tournaments.
Upgraded infrastructure at badminton

Others
We distributed relief material to Titli cyclone effected people in Srikakulam district, Andhra
Pradesh. Besides, we made donations to National Defence Fund & Chief Minister’s Relief Fund.

24 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Awards and recognition

1. Business Today, Best CEO Award (Small Companies) – February 2019

2. Dun & Bradstreet – Corporate Award 2019

Best Growth Performance – Food Products held on 29th May 2019

AVANTI FEEDS LIMITED 25

STAYING ON COURSE

CORPORATE
INFORMATION
Board of Directors Bankers
A. Indra Kumar State Bank of India
Chairman & Managing Director Rabo Bank International
C. Ramachandra Rao
Joint Managing Director, Company Secretary & Registrars & Share Transfer Agents
CFO Karvy Fintech Private Limited
N. Ram Prasad Karvy Selenium Towers B, Plot No. 31-32,
Bunluesak Sorajjakit Gachibowli, Financial District, Nanakramguda,
Wai Yat Paco Lee Hyderabad – 500032
A.V. Achar
K. Ramamohana Rao Registered Office
B.V. Kumar Flat No.103, Ground Floor
M.S.P. Rao “R” Square, Pandurangapuram
N.V.D.S. Raju Visakhapatnam-530003
Mrs. K. Kiranmayee Andhra Pradesh, India
J.V. Ramudu (from 10.11.2018)
Solomon Arokia Raj IAS,Nominee-APIDC
A. Venkata Sanjeev (from 07.06.2019) Corporate Office
G-2,Concorde Apartments
Auditors #6-3-658, Somajiguda
Hyderabad-500082.
Tukaram & Co LLP Website:www.avantifeeds.com
Chartered Accountants CIN:L16001AP1993PLC095778
# 3-6-69, Flat No.209, Venkatarama Towers
Opp: Talwalkars, Basheerbagh
Hyderabad – 500029.

26 ANNUAL REPORT 2018-19

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Company Overview Statutory Report Financial Statements

BOARD’S
REPORT
Dear Members,,,

Your Directors have pleasure in presenting their 26th Annual Report together with the Audited Financial
Statements of your Company and its subsidiaries for the year ended 31st March, 2019.

1. Financial summary or highlights:

The summarized standalone and consolidated financial results of your Company and its subsidiaries are
given in the table below: (` in Lakhs)
Financial Year ended
Standalone Consolidated
Particulars
31 March
st
31 March
st
31 March
st
31st March
2019 2018 2019 2018
Total Revenue 2,73,842.34 2,81,532.89 3,48,777.95 3,39,290.31
Profit/(loss) Before Interest,
35,720.09 64,506.42 46,651.92 73,122.45
Depreciation & Tax (PBITDA)
Finance Charges 124.58 124.43 262.67 296.40
Depreciation 2028.31 1,466.82 3,583.87 2,375.75
Provision for Income Tax
11,217.72 21,421.33 12,143.39 23,802.36
(including for earlier years)
Net Profit/(Loss) After Tax 22,349.48 41,493.84 30,661.99 46,647.94
Profit/(Loss) brought forward from
79,360.55 46,902.76 88,658.54 53,053.09
previous year
Profit/(Loss) carried to Balance Sheet 87,800.23 79,360.55 1,04,107.24 88,658.54

2. Summary of Operations & State of Company’s preceding financial year 2017-18, a decrease of 2%
affairs: volume.

The profit for the year under consideration i.e. FY The Four Windmills of your Company located
2018-19, before depreciation, finance charges and in Karnataka State with a total capacity of 3.2
tax is `35,720.09 Lakh as compared to a profit MW have generated 40.06 Lakh units as against
of `64,506.42 Lakh in the previous financial year. 49.13 Lakh units in the previous year. The power
The profit for the year after tax is `22,349.45 Lakh generated during the year was sold to Karnataka
as against a profit of `41,493.84 Lakh during the Power Transmission Corporation Limited under
previous financial year. the Power Purchase Agreement.

Your Company reported 4,21,691 MT sales of No material changes and commitments have
shrimp feed during 2018-19 as compared to occurred after the close of the financial year till
4,30,314 MT shrimp feed sales in the immediate the date of this Report.

AVANTI FEEDS LIMITED 27

STAYING ON COURSE

During the year under review, there is no change in Distribution, which is disseminated on the
nature of the business of the Company. The affairs Company’s website at www.avantifeeds.com
of the Company are conducted in accordance
5. Reserves:
with the accepted business practices and within
the purview of the applicable legislations. The Company proposes to transfer `2,000 lakhs
to the General Reserve out of the Profits available
3. Share Capital: for appropriation.
During the year under review, the Company (i)
6. Composition of the Board and details of
sub-divided One (1) equity share of `2/-each,
Board meetings:
into Two(2) equity shares of `1/- each, and (ii)
issued Bonus equity shares in the ratio 1(One) new Sl.
Name Designation
No
fully paid-up equity share of `1/- each for every
1 Sri A. Indra Kumar Chairman & Managing
2 (Two) fully paid-up equity shares of `1/- each
Director
(i.e. Adjusted for Sub-Division of equity Shares),
2 Sri C. Ramachandra Joint Managing
with the approval of the members, with requisite Rao Director, Company
majority at the Extraordinary General Meeting Secretary & Chief
held on 14.06.2018. Financial Officer
3 Sri N. Ram Prasad Director
The record date for (i) sub-division of One equity 4 Mr. Bunluesak
Director
share of `2/- each into Two equity shares of `1/- Sorajjakit
each and (ii) Bonus equity shares of `1/- each in 5 Mr. Wai Yat Paco
Director
the ratio of 1:2, was 27th June, 2018. The Bonus Lee
equity shares were allotted on 30th June, 2018. 6 Sri A.V. Achar Independent Director
7 Sri B.V. Kumar Independent Director
The Company obtained listing and trading 8 Sri M.S.P. Rao Independent Director
approval from Bombay Stock Exchange and 9 Sri K. Ramamohana
Independent Director
National Stock Exchange for the 4,54,15,210 Bonus Rao
equity shares of `1/- each on 5th July, 2018. 10 Sri N.V. D.S. Raju Independent Director
11 Smt. K. Kiranmayee Independent Woman
As on 31st March, 2019 the authorized capital Director
of the Company is `15,85,00,000 divided into 12 Sri J. V. Ramudu
Independent Director
15.85,00,000 equity shares of `1/-each and (from 10.11.2018)
paid-up capital is `13,62,45,630 divided into 13 Sri Solmon Arokia Nominee Director
13,62,45,630 equity shares of `1/- each. Raj IAS (Nominee of Andhra
Pradesh Industrial
4. Dividend: Corporation Limited –
represented as equity
Your Directors have recommended a dividend investor)
of `4 per equity share of `1/- each fully paid up, 14 Sri A. Venkata
for FY 2018-19. The dividend, if declared by the Sanjeev (from Additional Director
Members at the 26th Annual General Meeting to be 07.06.2019)
held on Friday, the 9th August, 2019, will be paid 6.1 Number of Board Meetings:
on or before 31st August, 2019. During the year 2018-19, 5 (Five) Board meetings
were held. The details are as under:
The dividend, if approved, would result in a cash
Date of Board No of Directors
outflow of approximately `6,570.05 lakhs , which Sl.No.
Meeting Attended
includes corporate dividend distribution tax of 1 09.05.2018 10
`1,120.23 lakhs, resulting in a dividend payout of 2 26.05.2018 9
29.40% of the standalone profits of the Company.
3 06.08.2018 11
Pursuant to Reg.43A of SEBI (LODR) Regulations, 4 10.11.2018 12
the Company has formulated a Policy on Dividend 5 08.02.2019 12

28 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

7. Committees of the Board: Resolutions were approved by the members with

The details of the Committees of the Board viz., requisite majority.
Audit Committee, Nomination and Remuneration
11. Changes in Directors :
Committee, Corporate Social Responsibility
During the year under review, Sri J.V. Ramudu
Committee and Stakeholders Relationship
was appointed as an Additional Director (Non-
Committee are reported in the Report on
Executive & Independent) with effect from
Corporate Governance which forms part of the
10.11.2018 to hold office upto the date of ensuing
Board’s Report.
Annual General Meeting and subject to approval
8. Meeting of Independent Directors: of the members at the ensuing Annual General
The details of the separate meeting of the Meeting for appointment as Independent Director
Independent Directors are reported in the Report to hold office for a period of 5 years w.e.f. 10.11.2018.
on Corporate Governance which forms part of the
The Board at its meeting held on 07.06.2019
Board’s Report.
appointed Sri A Venkata Sanjeev as an Additional
9. Familiarization Programme for Independent Director (Non-Executive) with effect from
Directors: 07.06.2019 to hold office upto office upto the date
of ensuing Annual General Meeting.
The details of the familiarization programme
for the Independent Directors is reported in the 12. Appointment/Re-appointment of Directors:
Report on Corporate Governance attached to the
a) Re-appointment of retiring Directors;
Board’s Report.
In terms of Article 105 and 106 of the Articles of
10. Independent Directors: Association of the Company, Sri N. Ram Prasad
10.1 Declaration by Independent Directors: and Mr. Wai Yat Paco Lee retire by rotation at
the ensuing Annual General Meeting and being
Sri A.V. Achar, Sri B.V. Kumar, Sri M.S.P. Rao, Sri
eligible offer themselves for re-appointment.
K. Ramamohana Rao, Sri N.V.D.S. Raju, Smt. K.
Kiranmayee and Sri J V Ramudu, are Independent b) Re-appointment of Independent Directors:
Directors on the Board of your Company. In the
The term of appointment of Sri A.V.Achar, Sri B.V.
opinion of the Board and as confirmed by these
Kumar, Sri M.S.P. Rao and Sri K. Ramamohana
Directors, they fulfil the conditions specified
Rao, Independent Directors expires on 01.08.2019
in Sec. 149(6) of the Act and the Rules made
or date of ensuing Annual General Meeting
thereunder and under Regulation 16 (1) (b)
whichever is earlier. It is proposed to re-appoint
of SEBI (Listing Obligations and Disclosure
Sri A.V. Achar, Sri B.V.Kumar, Sri M.S.P. Rao, and
Requirements) Regulations, 2015 about their
Sri K. Ramamohana Rao as Independent Directors
status as Independent Directors of the Company.
for a further period of 2 years with effect from
10.2 Continuation of Independent Directors 02.08.2019.
beyond the age of 75 years: The term of appointment of Sri N.V.D.S. Raju and
As per Reg.17(1A) of SEBI (Listing Obligations Smt. K. Kiranmayee, as Independent Directors
and Disclosure Requirements) Regulations 2015, expires on conclusion of the ensuing Annual
with effect from April 1, 2019, continuation of General Meeting. It is proposed to re-appoint
directorships of any person as Non-Executive Sri N.V.D.S. Raju and Smt. K. Kiranmayee as
Director who has attained the age of Seventy- Independent Directors, for a further period of 5
Five (75) years requires Special Resolution. The years with effect from 09.08.2019.
Company has obtained the approval of the
The Company has received a Notice from a
members, by way of Special Resolutions, through
member proposing the above re-appointments
Postal Ballot during January, 2019 for continuation
of Directorships of Sri B.V. Kumar [DIN:00521139] of Independent Directors, along with requisite
and Sri A.V. Achar [DIN:00325886]. The Special deposit.

AVANTI FEEDS LIMITED 29

 c) Appointment of Additional Director as (` in Lakhs)
Independent Director: Details Sri A Indra Sri C
The term of Sri J.V. Ramudu who was appointed as Kumar CMD Ramachandra
Additional Director (Non-Executive & Independent Rao, JMD, CS &
CFO
Director) by the Board on 10.11.2018 expires at the
Salary 296.25 150.82
ensuing Annual General Meeting. The Company
Ex-gratia 33.84 17.40
received a Notice from a member proposing his
Superannuation 25.77 12.54
appointment for a period of 5 years w.e.f. 10.11.2018
Commission on 1,322.45
along with requisite deposit. It is proposed to 1,028.14
Profits
appoint Sri J.V Ramudu as Independent Director
Total : 1,678.31 1,208.90
for a period of 5 years w.e.f. 10.11.2018.
Further, the information about the elements of
d) Appointment of Additional Director and
remuneration package of individual directors is
Executive Director
provided in the extract of the Annual Return in
The term of Sri A.Venkata Sanjeev who was Form MGT-9 enclosed to Board’s Report.
appointed as Additional Director by the Board
on 07.06.2019, expires at the ensuing Annual 14. Change of Registered Office:
General Meeting. The Company received a Notice During the year under review, the Registered Office
from a member proposing his appointment with of the Company was changed from H.No.37, Plot
effect from 07.06.2019, as Director along with No.37, Baymount, Rushikonda, Visakhapatnam –
requisite deposit. The Board at its meeting held 530 045, to Flat No: 103, Ground Floor, “R” Square,
on 07.06.2019 appointed Sri A. Venkata Sanjeev Pandurangapuram, Vishakhapatnam-530003
as Whole-time Director designated as Executive with effect from 01.09.2018.
Director for a period of 5 years w.e.f. 09.08.2019,
subject to approval of shareholders on the 15. Transfer of Unpaid/unclaimed dividend to
remuneration set out at Item No.6 of the Notice IEPF:
of the ensuing Annual General Meeting. Pursuant to the provisions of Sec. 124(5) of
the Companies Act, 2013, as amended, read
Nomination & Remuneration Committee and
with Investor Education and Protection Fund
the Board recommended the appointment/re-
(awareness and Protection of Investors) Rules,
appointment of the above Directors. The details
dividend which remain unpaid or unclaimed for
of the above Directors is disclosed in the Notice
a period of 7 years will be transferred to the
of the Annual General Meeting.
Investor Education and Protection Fund of the
13. Policy on Directors appointment and Central Government.
Remuneration:
Shareholders / Investors who have not en-
The details of Policy on Directors appointment and cashed their dividend warrant(s) within 7 years
Remuneration (i.e. Nomination and Remuneration from the date of the declaration of dividend, are
Policy), criteria for determining qualifications, requested to make their claim to the Registrars &
positive attributes, independence of directors Transfer Agents i.e. Karvy Fintech Private Limited,
are included in Report on Corporate Governance Hyderabad or to the Company at its Corporate
forming part of the Board’s Report. Office. The unpaid dividend for the financial year
2011-12 will be transferred to IEPF within the time
The details of the remuneration paid to Sri A. Indra
limit prescribed under the provisions of the Act.
Kumar, Chairman and Managing Director and Sri
C. Ramachandra Rao, Joint Managing Director, The following table provides a list of years for which
Company Secretary & CFO are as under: unclaimed dividends and their corresponding

30 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

shares would become eligible to be transferred to the IEPF on the dates mentioned below:
Dividend Amount of unpaid
Sl Date of Face Value of Due date for
Year per share dividend as on
No declaration the share (`) transfer
(`) 31.03.2019 (in `)
1 2011-12 18.08.2012 6.50 10.00 22.09.2019 10,60,386
2 2012-13 27.07.2013 6.50 10.00 30.08.2020 10,44,868
3 2013-14 02.08.2014 15.00 10.00 05.09.2021 16,31,895
4 2014-15 08.08.2015 27.50 10.00 11.09.2022 22,72,662
5 2015-16 13.08.2016 7.00 2.00 17.09.2023 27,92,909
6 2016-17 12.08.2017 9.00 2.00 15.09.2024 34,74,261
7 2017-18 07.08.2018 6.00 1.00 10.09.2025 53,85,522

16. Transfer of shares to IEPF: Requirements) Regulations, 2015, the Board has
As per Sec.124(6) of the Companies Act 2013 all carried out evaluation of (i) its own performance,
shares in respect of which dividend has not been (ii) the directors individually and (iii) working
paid or claimed for seven (7) consecutive years of its Committees. The manner in which the
or more shall be transferred by the Company to evaluation was carried out is reported in the
Investor Education and Protection Fund of the Report on Corporate Governance forming part of
Central Government. During the year under review, this Report.
591,915 equity shares of `1/- each were transferred
20. Corporate Social Responsibility Committee:
to IEPF which pertains to unclaimed dividend by
Composition:
the shareholders for 7 years consecutively from
2010-11. Sl. Chairman/
Name Designation
No. Members
17. Loans, Guarantees or Investments: 1 Sri A. Indra Chairman &
The details of the Loans, Guarantees and Kumar Managing Chairman
Investments as on 31.03.2019 are as under : Director
2 Sri N. Ram
a) Guarantees : `15,000.00 Lakh Director Member
Prasad
b) Investments : `17,949.58 Lakh
------------------- 3 Sri A.V. Achar Independent
Member
`32,949.58 Lakh Director
4 Sri B.V. Kumar Independent
Member
18. Contracts or arrangements with Related Director
Parties: 5 Smt. K Independent
Member
Kiranmayee Director
The particulars of contracts or arrangements
with related parties referred to in Sec.188(1) in 6 Sri C. Joint
Form No. AOC-2 pursuant to Sec.134(3)(h) of the Ramachandra Managing
Member &
Rao Director,
Companies Act and Rule 8(2) of the Companies Compliance
Company
(Accounts) Rules, 2014 are enclosed as Annexure Officer
Secretary &
-2 to this Report. CFO

The Company formulated the Policy on dealing Terms of Reference:

with Related Party Transactions. The details of the The Committee is primarily responsible for
policy may be seen at the Company’s website : formulating and recommending to the Board of
www.avantifeeds.com Directors a Corporate Social Responsibility (CSR)
Policy and monitoring the same from time to
19. Board Evaluation:
time, amount of expenditure to be incurred on the
Pursuant to the provisions of the Companies Act activities pertaining to CSR and monitoring CSR
2013 and SEBI (Listing Obligations and Disclosure activities.

AVANTI FEEDS LIMITED 31

 CSR Policy fraud or violation of the Company’s code of
The Company’s CSR Policy is disseminated at conduct or ethics policy and Code of Conduct to
www.avantifeeds.com. regulate, monitor and report trading by Insiders.
The practice of Whistle Blower Policy is overseen
During the year 2018-19, One (1) meeting of the by the Audit Committee and no employee has
Corporate Social Responsibility Committee was been denied access to the Committee. The Whistle
held on 11th March, 2019. Blower Policy is available at the Company’s
website: www.avantifeeds.com.
CSR Expenditure during the year 2018-19:
26. Maintenance of cost records:
As per the Sec.135(5) of Companies Act 2013, an
amount of 2% of the average Net Profits of the The Company has maintained the Cost records
Company made during the three immediately required to be maintained under Sec.148(1) of the
preceding financial years which works out to Companies Act, 2013.
`757.15 lakhs, is to be spent towards Corporate
27. Subsidiaries and Associate Companies:
Social Responsibility activities. The Company has
27.1 Report on the performance of Subsidiaries
spent `496.80 lakhs towards the CSR activities
and associates:
in the financial year 2018-19, balance unspent
The report on the business of the Subsidiaries
amount is `260.35 Lakhs. The detailed Report,
and Associate companies as on 31.03.2019 is as
on the CSR Activities (including the reasons for
follows:
not spending the required amount) is annexed to
Board’s Report at Annexure - 3. 27.2 Subsidiaries:
(a) Avanti Frozen Foods Private Limited(AFFPL):
21. Management Discussion & Analysis:
During the year AFFPL reported turnover of
Management Discussion and Analysis Report is `75,251.99 lakhs and profit before tax is `9,173.10
annexed which forms part of this Report. lakhs. The Profit after tax reported by AFFPL is
`8,247.45 lakhs for the year 2018-19.
22. Business Responsibility Report:

The Business Responsibility Report is annexed (b) SVIMSAN Exports and Imports Private
which forms part of this Report. Limited: No business activity.
The consolidated financial statements of the
23. Corporate Governance: Company and its subsidiaries prepared in
As a listed Company, necessary measures are accordance with the accounting principles
taken to comply with the SEBI (Listing Obligations generally accepted in India, including the
and Disclosure Requirements) Regulations. Accounting Standards specified under Sec.133 of
Report on the Corporate Governance together the Companies Act, 2013 read with relevant Rules,
with a Certificate on compliance of Corporate form part of the Annual Report and are reflected
Governance by Independent Auditors forms part in the Consolidated Financial Statements of the
of this Report. Company.

24. Risk Management Policy: The Annual financial statements of the subsidiaries
and related detailed information will be kept at
In terms of the requirement of Section 134(3)
the Registered Office and Corporate Office of the
(n) of the Companies Act 2013, the Company
Company and also at the Registered Offices of
has developed and implemented the Risk
the respective subsidiaries and will be available to
Management Policy.
the investors seeking information at any time.
25. Whistle Blower Policy:
The Company has adopted a Policy for determining
The Company established Whistle Blower Policy Material subsidiaries in terms of Regulation 16(1)
for directors and employees to report concerns (c) of the SEBI (Listing Obligations and Disclosure
about unethical behavior, actual or suspected

32 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

requirements) Regulations, 2015. The Policy statements of Company’s subsidiary and associate
approved by the Board is available on the website companies is enclosed at Annexure-4 of Board’s
of the Company at www.avantifeeds.com. Report.

27.3 Joint Ventures: 28. Internal Controls Systems and Adequacy:

During the year under review there were no Joint The Company has in place an adequate system
Ventures. of internal controls. The details of the internal
controls system are given in the Management
27.4 Associate Companies: Discussion and Analysis Report which forms of
1. Srivathsa Power Projects Private Limited: the Board’s Report.
Srivathsa Power Projects Private Limited, is a
The internal financial controls with reference to
17.02 MW gas based independent power project
the Financial Statements for the year ended 31st
situated in Andhra Pradesh in which company
March, 2019 commensurate with the size and
holds 49.99% of equity shares.
nature of business of the Company.
During the year 2018-19, the gas supplied by GAIL
The measures implemented for internal financial
was only 20,422 SCMD as against the nominated
controls include multiple authority levels for
quota of 65,000 SCMD stated to be due to non-
approval of expenditures, budgetary controls,
availability of APM-Gas As a result, the power
concurrent internal audit etc.
generation was limited to 308.20 lakhs units as
against generation capacity of 1,100.00 lakhs units. 29. Internal audit:
During the year 2018-19, the Company reported a
In terms of Sec.138 of the Companies Act, 2013 and
turnover of `1,138.80 lakhs and a loss of `210.97
the relevant Rules, the Company appointed Smt.
lakhs after charging interest and depreciation, as
Santhilatha, Chartered Accountant, an employee
per audited financials.
of the Company, as Internal Auditor. The Internal
2 Patikari Power Private Limited: Auditor directly reports to the Audit Committee
The Company holds 25.88% equity shares in
30. Independent Auditors, their Report and
Patikari Power Private Limited which has a 16 MW
Notes to Financial Statements:
Hydel Power Project in Himachal Pradesh. During
the year 2018-19 as per audited financials the At the 24th Annual General Meeting held on
Company generated 52.80 lakhs saleable energy 12.08.2017 Tukaram & Company, Chartered
units, yielding a gross sales income of `1,188.05 Accountants, Hyderabad have been appointed as
lakhs which resulted in a net profit of `530.94 Independent Auditors of the Company for a period
lakhs after charging interest, depreciation and tax. of 5 years, to hold the office from the conclusion
The term loan of `7506.00 lakhs availed by the of 24th Annual General Meeting till the conclusion
Company has been repaid fully on 9th April, 2019 of 29th Annual General Meeting to be held in the
and it is debt free company. year 2022. The ratification of the appointment of
M/S Tukaram & Company, Chartered Accountants
27.5 Names of companies which have become as Independent Auditors for the year 2019-20 is
or ceased to be subsidiaries, joint ventures or
not required as per Companies (Amendment)
Associate companies:
Act, 2017 Notified on 07.05.2018.
There were no companies which have become
During the year under review, M/s Tukaram & Co.,
or ceased to be Joint Ventures or associate
Chartered Accountants, Independent Auditors of
companies.
the Company has been converted in to LLP i.e.
27.6 Statement containing subsidiaries salient Tukaram & Co LLP with effect from 18.09.2018.
features of financial statements of subsidiaries: Further, the report of the Independent Auditors
Pursuant to Sec.129(3) of the Act, the statement along with notes to Schedules are annexed to this
containing the salient features of the financial Report.

AVANTI FEEDS LIMITED 33

 There were no qualifications, reservations assets of the Company and for preventing
or adverse remarks or disclaimers made by and detecting fraud and other irregularities;
Independent Auditors i.e. Tukaram & Co., LLP,
(d) the directors had prepared the annual
Chartered Accountants, Hyderabad, in their
accounts on a going concern basis;
report.
(e) the directors, had laid down internal financial
31. Compliance with Secretarial Standards:
controls to be followed by the Company
The Company complies with the applicable
and that such internal financial controls are
Secretarial Standards issued by the Institute of
adequate and were operating effectively; and
Company Secretaries of India.
(f) the directors had devised proper systems to
32. Secretarial audit:
ensure compliance with the provisions of all
In terms of Sec. 204 of the Companies Act 2013 applicable laws and that such systems were
and the Rules made thereunder, M/s.V. Bhaskara adequate and operating effectively.
Rao & Co., Hyderabad Practicing Company
Secretary has been appointed as Secretarial 34. Extract of Annual Return:
Auditor of the Company for the year 2018-19, Pursuant to Sec. 92(3) of the Companies Act, 2013
on a remuneration of `1,00,000/- plus taxes as and Rule 12(1) of the Companies (Management
applicable and reimbursement of actual travel and Administration) Rules, 2014, extract of Annual
and out of pocket expenses. The report of the Return (Form MGT-9) is enclosed to the Board’s
Secretarial Auditor is annexed to this Report. Report.
Sri V Bhaskara Rao & Co., Secretarial Auditor 35. Details of Conservation of Energy,
observed that the Company has not spent the Technology Absorption, Foreign Exchange
required amount of CSR expenditure during the Earnings and Outgo:
year 2018-19. The reasons for not spending the
required amount of CSR expenditure is given in (a) Conservation of Energy:
the detailed report on CSR Expenditure annexed
to the Board’s Report. (i) The steps taken Installing new IE3/IE4
or impact on high efficient motors for
33. Directors’ Responsibility Statement: conservation of energy conservation.
Pursuant to the requirement Sec.134(3)(c)of the energy Company enhanced the
Companies Act, 2013, your Directors confirm that: Solar Energy Capacity
(a) in the preparation of the annual accounts, from 10KW to 30 KW at
the applicable accounting standards had Gujarat Plant.
been followed along with proper explanation Replaced all Traditional
relating to material departures; Lights with LED Lights.
(b) the directors had selected such accounting (ii) The steps taken Company studying
policies and applied them consistently and by the Company feasibility of installing
made judgments and estimates that are for utilizing solar panels on roof top
reasonable and prudent so as to give a true alternate sources of its factory godowns
and fair view of the state of affairs of the of energy to harness solar power.
Company at the end of the financial year and
(iii) The capital
of the Profit and Loss of the Company for
investment on
that period; Solar Energy at Gujarat
energy
for `12.33 Lakhs
(c) the directors had taken proper and sufficient conservation
care for the maintenance of adequate equipments
accounting records in accordance with the
provisions of this Act for safeguarding the (b) Technology absorption: Not applicable.

34 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

(c) Foreign Exchange Earnings and Outgo: are in receipt of remuneration of `102 Lakhs or
During the year under review, the total Foreign more are enclosed at Annexure-5 of this report.
Exchange
40. Policy under the Sexual Harassment
Inflow - ` 156.17 lakhs. of Women at Workplace (Prevention,
Outflow – ` 14,857.67 lakhs. Prohibition and Redressal) Act, 2013:
The Company has in place an Anti-Sexual
36. Public Deposits:
Harassment Policy in line with the requirements
The Company has not accepted any Public of The Sexual Harassment of Women at the
Deposit and as such no principal or interest or any Workplace (Prevention, Prohibition & Redressal)
claim is outstanding as on the date of the Balance Act, 2013. Internal Complaints Committee (ICC)
Sheet. has been set up to redress complaints received
36.1 Details of Deposits which are not in regarding sexual harassment. All employees
compliance with the requirements of Chapter V (permanent, contractual, temporary, trainees) are
of Companies Act, 2013: covered under this policy.
During the year ended 31.03.2019 the Company
The Company has not accepted any deposits
has not received any complaints pertaining to
from the public and as such there were no
sexual harassment of employees. The company
deposits which are not in compliance with the
has complied with provisions relating to the
requirements of Chapter V of the Companies Act
constitution of Internal Complaints Committee
2013.
under the Sexual Harassment of Women at
37. Significant and material orders passed by Workplace (Prevention, Prohibition and Redressal)
the regulators: Act, 2013.

None of the orders passed by Court or Tribunal Acknowledgments:

has any impact on the going concern status of
Your Directors take this opportunity to express
the Company or significant impact on Company’s
their deep and sincere gratitude and appreciation
operations.
for co-operation extended by the Governmental
Agencies, Shareholders and Banks from time to
38. Human Resources:
time. Your Directors also place on record their
Your Company treats its human resources as
appreciation for the contributions made by the
one of its most important assets. Your Company
employees through their dedication, hard work
continuously invests in attracting, retaining and
and commitment. Your Directors also convey
development of talent on an ongoing basis.
thanks and appreciation to the valued customers
Your Company’s thrust is on the promotion of
and dealers for their continued patronage.
talent internally through job rotation and job
enlargement.

39. Particulars of Employees:

The statement containing particulars of employees
as required under Sec. 197(12) of Companies For and on behalf of the Board
Act, 2013 read with Rule 5 of the Companies Avanti Feeds Limited
(Appointment and Remuneration of Managerial
A. Indra Kumar
Personnel) Rules, 2014 indicating (i) the ratio
DIN – 00190168
of remuneration of each director to the median Chairman & Managing Director
employees remuneration and other details and (ii) Place: Hyderabad
statement showing the details of employees who Date : 07.06.2019

AVANTI FEEDS LIMITED 35

 Annexure - 1
Form No. MGT-9
(Extract of Annual Return as on the Financial year ended on 31st March, 2019)

I. REGISTRATION AND OTHER DETAILS:

i. CIN L16001AP1993PLC095778
ii. Registration Date 06.01.1993
iii. Name of the Company: Avanti Feeds Limited
iv. Category/Sub-Category of the Company Public Limited Company
v. Address and Contact Details
Flat No. 103, Ground Floor, "R" Square,
a. Registered Office:
Pandurangapuram,
Visakhapatnam-530 003, Andhra Pradesh

b. Corporate Office: G-2, Concorde Apartments, Somajiguda

Hyderabad-500 082, Telangana State
Phone Nos: 040-23310260/61 Fax: 040-23311604
Email Id: avantiho@avantifeeds.com
Website: www. avantifeeds.com

vi. Whether Listed Company Yes

vii. Name, Address and Contact deails of Karvy Fintech Private Limited (Formely Karvy
Registrars & Transfer Agents: Computershare Private Limited)
Karvy Selenium Tower-B, Plot No.31 & 32,
Financial District, Gachibowli, Nanakramguda
Serilingampally, Hyderabad-500 008
Telangana State, India.
Phone No: 040-6716222 Fax: 040-23001153
E mail Id: einward.ris@karvy.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

Sl Name an description of main NIC Code of the % of total turnover of the

No Products/Services Product/Service Company
1 Shrimp Feed 15339 100

III. PARTICULARS OF HOLDING, SUBSISIDIARY AND ASSOCIATE COMPANIES:

Sl Name and Address of the CIN Holding/ % of Applicable

No. Company Subsidiary/ shares Section
associate held under
Companies
Act, 2013
1 Avanti Frozen Foods Pvt. Ltd. U05000AP2015PTC096509 Subsidiary 60.00% Sec.2(87)(ii)
2 Svimsan Exports & Imports Ltd U24239TG1998PTC030063 Subsidiary 100.00% Sec.2(87)(ii)
3 Srivathsa Power Projects Pvt. Ltd. U40109TG1995PTC020411 Associate 49.99% Sec.2(6)
4 Patikari Power Pvt. Ltd. U40103HP2000PTC024074 Associate 25.89% Sec.2(6)

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IV. SHARE HOLDING PATERN BETWEEN 01-04-2018 AND 31-03-2019

(i) Category-wise Shareholding

CATEGORY OF NO. OF SHARES OF `2/- EACH HELD AT NO. OF SHARES OF `1/- EACH HELD AT THE END OF % CHANGE
CATEGORY

SHAREHOLDER THE BEGINNING OF THE YEAR 01-04-2018 THE YEAR 31-03-2019 DURING
CODE

THE YEAR
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF
TOTAL TOTAL
SHARES SHARES
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(A) PROMOTER AND
PROMOTER GROUP
(1) INDIAN
(a) Individual /HUF 6347956 25000 6372956 14.03% 19051469 37500 19088969 14.01% -0.02%
(b) Central Government/ 0 0 0 0.00% 0 0 0 0.00% 0.00%
State Government(s)
(c) Bodies Corporate 13511460 0 13511460 29.75% 40534380 0 40534380 29.75% 0.00%
(d) Financial Institutions 0 0 0 0.00% 0 0 0 0.00% 0.00%
/ Banks
(e) Others 0 0 0 0.00% 0 0 0 0.00% 0.00%

Sub-Total A(1) : 19859416 25000 19884416 43.78% 59585849 37500 59623349 43.76% -0.02%

(2) FOREIGN
(a) Individuals (NRIs/ 0 0 0 0.00% 0 0 0 0.00% 0.00%
Foreign Individuals)
(b) Bodies Corporate 0 0 0 0.00% 0 0 0 0.00% 0.00%
(c) Institutions 0 0 0 0.00% 0 0 0 0.00% 0.00%
(d) Qualified Foreign 0 0 0 0.00% 0 0 0 0.00% 0.00%
Investor
(e) Others 0 0 0 0.00% 0 0 0 0.00% 0.00%
Sub-Total A(2) : 0 0 0 0.00% 0 0 0 0.00% 0.00%
Total A=A(1)+A(2) 19859416 25000 19884416 43.78% 59585849 37500 59623349 43.76% -0.02%

(B) PUBLIC
SHAREHOLDING
(1) INSTITUTIONS
(a) Mutual Funds /UTI 694520 20500 715020 1.57% 3908052 61500 3969552 2.91% 1.34%
(b) Financial Institutions / 18158 4500 22658 0.05% 149462 13500 162962 0.12% 0.07%
Banks
(c) Central Government / 1236515 0 1236515 2.72% 3709545 0 3709545 2.72% 0.00%
State Government(s)
(d) Venture Capital Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%
(e) Insurance Companies 0 0 0 0.00% 0 0 0 0.00% 0.00%
(f) Foreign Institutional 6422229 500 6422729 14.14% 18282847 1500 18284347 13.42% -0.72%
Investors
(g) Foreign Venture 0 0 0 0.00% 0 0 0 0.00% 0.00%
Capital Investors
(h) Qualified Foreign 0 0 0 0.00% 0 0 0 0.00% 0.00%
Investor
(i) Others 0 0 0 0.00% 0 0 0 0.00% 0.00%
Sub-Total B(1) : 8371422 25500 8396922 18.49% 26049906 76500 26126406 19.18% 0.69%

(2) NON-INSTITUTIONS
(a) Bodies Corporate 1285991 39030 1325021 2.92% 2951423 75090 3026513 2.22% -0.70%
(b) Individuals
(i) Individuals holding 6590071 714600 7304671 16.08% 19435343 1243266 20678609 15.18% -0.91%
nominal share capital
upto `1 lakh

AVANTI FEEDS LIMITED 37

 CATEGORY OF NO. OF SHARES OF `2/- EACH HELD AT THE NO. OF SHARES OF `1/- EACH HELD AT THE END OF %
CATEGORY

SHAREHOLDER BEGINNING OF THE YEAR 01-04-2018 THE YEAR 31-03-2019 CHANGE

CODE

DURING
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF
THE
TOTAL TOTAL
YEAR
SHARES SHARES
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(ii) Individuals holding 816765 0 816765 1.80% 2922820 0 2922820 2.15% 0.35
nominal share capital
in excess of `1 lakh
(c) Others
CLEARING MEMBERS 60699 0 60699 0.13% 348190 0 348190 0.26% 0.12%
FOREIGN BODIES 7010210 0 7010210 15.44% 21030630 0 21030630 15.44% 0.00%
IEPF 0 0 0 0.00% 591915 0 591915 0.43% 0.43%
NON RESIDENT 364448 95000 459448 1.01% 1191411 259500 1450911 1.06% 0.05%
INDIANS
NRI NON-REPATRI 144271 0 144271 0.32% 444893 0 444893 0.33% 0.01%
ATION
TRUSTS 12787 0 12787 0.03% 1394 0 1394 0.00% -0.03%
(d) Qualified Foreign 0 0 0 0.00% 0 0 0 0.00% 0.00%
Investor
Sub-Total B(2) : 16285242 848630 17133872 37.73% 48918019 1577856 50495875 37.06% -0.66%

Total B=B(1)+B(2) : 24656664 874130 25530794 56.22% 74967925 1654356 76622281 56.24% 0.02%

Total (A+B) : 44516080 899130 45415210 100.00% 134553774 1691856 136245630 100.00% 0.00%

(C) Shares held by

custodians, against
which Depository
Receipts have been
issued
(1) Promoter and 0 0 0 0.00% 0 0 0 0.00% 0.00%
Promoter Group
(2) Public 0 0 0 0.00% 0 0 0 0.00% 0.00%

GRAND TOTAL 44516080 899130 45415210 100.00% 134553774 1691856 136245630 100.00 0.00%
(A+B+C) :

(ii) Shareholding of Promoters:

S Shareholder’s Name Shareholding as on 01-04-2018 Shareholding as on 31-03-2019 % change

No. in share
No. of Shares % of total % of Shares No. of Shares % of total % of Shares
holding
(equity shares Shares of the Pledged/ (equity shares Shares Pledged /
during the
of `2/- each) company encumbered of `1/- each) of the encumbered to
year
to total shares company total shares
1 Sri Indra Kumar Alluri 2729750 6.01% 0 8189250 6.01% 0 0.00%
2 Sri Alluri Indra Kumar - HUF 2776900 6.11% 0 8330700 6.11% 0 0.00%
3 Srinivasa Cystine Pvt. Ltd. 12099705 26.64% 0 36299115 26.64% 0 0.00%
4 Sanjeeva Agro-Vet Pvt. Ltd. 1411755 3.11% 0 4235265 3.11% 0 0.00%
5 Sri Nuthakki Ram Prasad 103000 0.23% 0 279701 0.21% 0 -0.02%
6 Sri Venkata Sanjeev Alluri 236900 0.52% 0 710700 0.52% 0 0.00%
7 Sri Alluri Nikhilesh Chowdary 230550 0.51% 0 691650 0.51% 0 0.00%
8 Smt. N Naga Ratna 31674 0.07% 0 95022 0.07% 0 0.00%
9 Sri G Venkatesh 170732 0.38% 0 512196 0.38% 0 0.00%
10 Sri Pitchaiah Chukkapalli 12500 0.03% 0 0 0.00% 0 -0.03%
11 Sri CH Arun Kumar 0 0.00% 0 37500 0.03% 0 0.03%

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Sl Shareholder’s Name Shareholding as on 01-04-2018 Shareholding as on 31-03-2019 % change

No. in share
No. of Shares % of total % of Shares No. of Shares % of total % of Shares
holding
(equity shares Shares of the Pledged/ (equity shares Shares Pledged /
during the
of `2/- each) company encumbered of `1/- each) of the encumbered to
year
to total shares company total shares
12 Smt. Geda Sai Padmini 14550 0.03% 0 43650 0.03% 0 0.00%
13 Smt. Ratna Manikyamba Katneni 12500 0.03% 0 37500 0.03% 0 0.00%
14 Sri Amar Kumar Chukkapalli 12500 0.03% 0 37500 0.03% 0 0.00%
15 Sri Katneni Jagan Mohan Rao 12500 0.03% 0 37500 0.03% 0 0.00%
16 Smt. Sudha Vadlamudi 12500 0.03% 0 37500 0.03% 0 0.00%
17 Smt. Rayapaneni Raveena 12500 0.03% 0 37500 0.03% 0 0.00%
18 Sri Bommidala Srimannarayana 3400 0.01% 0 9600 0.01% 0 0.00%
19 Smt. P Gayathri 500 0.00% 0 1500 0.00% 0 0.00%
Total: 19884416 43.78% 0 59623349 43.76% 0 -0.02%

(iii) Change in Promoters’ Shareholding:

Sl Shareholder’s Name Shareholding as on Date Increase/ Reason Cumulative

No 01-04-2018 Decrease shareholding during the
in Share year (from 01-04-2018
holding to 31-03-2019)
No. of shares % of total No. of No. of % of total
of `2/- shares shares of shares of shares of the
each at the of the `1/- each `1/- each company
beginning company
1 Sri Indra Kumar Alluri 2729750 6.01% 29-06-2018 2729750 Sub-division 5459500 6.01%
30-06-2018 2729750 Bonus issue 8189250 6.01%
31-03-2019 8189250 6.01%

2 Sri Alluri Indra Kumar - HUF 2776900 6.11% 29-06-2018 2776900 Sub-division 5553800 6.11%
30-06-2018 2776900 Bonus issue 8330700 6.11%
31-03-2019 8330700 6.11%

3 Srinivasa Cystine Pvt. Ltd. 12099705 26.64% 29-06-2018 12099705 Sub-division 24199410 26.64%
30-06-2018 12099705 Bonus issue 36299115 26.64%
31-03-2019 36299115 26.64%

4 Sanjeeva Agro-Vet Pvt. Ltd. 1411755 3.11% 29-06-2018 1411755 Sub-division 2823510 3.11%
30-06-2018 1411755 Bonus issue 4235265 3.11%
31-03-2019 4235265 3.11%

5 Sri Nuthakki Ram Prasad 103000 0.23% 29-06-2018 103000 Sub-division 206000 0.23%
30-06-2018 103000 Bonus issue 309000 0.23%
02-07-2018 -29299 Transfer 279701 0.21%
31-03-2019 279701 0.21%

6 Sri Venkata Sanjeev Alluri 236900 0.52% 29-06-2018 236900 Sub-division 473800 0.52%
30-06-2018 236900 Bonus issue 710700 0.52%
31-03-2019 710700 0.52%

7 Sri Alluri Nikhilesh Chowdary 230550 0.51% 29-06-2018 230550 Sub-division 461100 0.51%
30-06-2018 230550 Bonus issue 691650 0.51%
31-03-2019 691650 0.51%

AVANTI FEEDS LIMITED 39

 Sl Shareholder’s Name Shareholding as on Date Increase/ Reason Cumulative
No 01-04-2018 Decrease shareholding during the
in Share year (from 01-04-2018
holding to 31-03-2019)
No. of shares % of total No. of No. of % of total
of `2/- shares shares of shares of shares of the
each at the of the `1/- each `1/- each company
beginning company
8 Smt. N Naga Ratna 31674 0.07% 29-06-2018 31674 Sub-division 63348 0.07%
30-06-2018 31674 Bonus issue 95022 0.07%
31-03-2019 95022 0.07%

9 Sri G Venkatesh 170732 0.38% 29-06-2018 170732 Sub-division 341464 0.38%

30-06-2018 170732 Bonus issue 512196 0.38%
31-03-2019 512196 0.38%

10 Sri Pitchaiah Chukkapalli 12500 0.03% 29-06-2018 12500 Sub-division 25,000 0.03%
30-06-2018 12500 Bonus issue 37,500 0.03%
07-09-2018 37500 Transmission 0 0.00%
31-03-2019 0 0.00%

11 Sri CH Arun Kumar 0 0.00% 07-09-2018 37,500 Transmission 37,500 0.03%

31-03-2019 37,500 0.03%

12 Smt. Geda Sai Padmini 14550 0.03% 29-06-2018 14550 Sub-division 29100 0.03%
30-06-2018 14550 Bonus issue 43650 0.03%
31-03-2019 43650 0.03%

13 Smt. Ratna Manikyamba 12500 0.03% 29-06-2018 12500 Sub-division 25000 0.03%
Katneni
30-06-2018 12500 Bonus issue 37500 0.03%
31-03-2019 37500 0.03%

14 Sri Amar Kumar Chukkapalli 12500 0.03% 29-06-2018 12500 Sub-division 25000 0.03%
30-06-2018 12500 Bonus issue 37500 0.03%
31-03-2019 37500 0.03%

15 Sri Katneni Jagan Mohan Rao 12500 0.03% 29-06-2018 12500 Sub-division 25000 0.03%
30-06-2018 12500 Bonus issue 37500 0.03%
31-03-2019 37500 0.03%

16 Smt. Sudha Vadlamudi 12500 0.03% 29-06-2018 12500 Sub-division 25000 0.03%
30-06-2018 12500 Bonus issue 37500 0.03%
31-03-2019 37500 0.03%

17 Smt. Rayapaneni Raveena 12500 0.03% 29-06-2018 12500 Sub-division 25000 0.03%
30-06-2018 12500 Bonus issue 37500 0.03%
31-03-2019 37500 0.03%

18 Sri Bommidala 3400 0.01% 20-04-2018 -200 Transfer 3200 0.00%

Srimannarayana
29-06-2018 3200 Sub-division 6400 0.01%
30-06-2018 3200 Bonus issue 9600 0.01%
31-03-2019 9600 0.01%

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Sl Change in Promoters Shareholding as on 01-04- Date Increase/ Reason Cumulative

No Shareholding 2018 Decrease shareholding during the
in Share year (from 01-04-2018
holding to 31-03-2019)
No. of shares % of total No. of No. of % of total
of `2/- shares shares of shares of shares of the
each at the of the `1/- each `1/- each company
beginning company
(01.04.18)
19 Smt. P Gayathri 500 0.00% 29-06-2018 500 Sub-division 1000 0.00%
30-06-2018 500 Bonus issue 1500 0.00%
31-03-2019 1500 0.00%

Note: The One (1) Equity Share of ` 2/- each were sub-divided into Two (2) Equity Shares of `1/- each with the
approval of the members at the Extraordinary General Meeting (EGM) held on 14-06-2018. The record date for sub-
division is 27-06-2018.
The Company issued Bonus Equity Shares of `1/- each in the ratio of 1:2 (i.e after sub-divison of shares) with the
approval of the members at the EGM held on 14.06.2018.The Bonus Equity shares were alloted on 30-06-2018.

iv) Shareholding pattern of top ten shareholders (other than Directors and Promoters ):
Sl. Name of the Share Shareholding as on Date Increase/ Reason Cumulative
No. Holder 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares shares
of the of the
company company
1 THAI UNION GROUP 7010210 15.44% 01-04-2018 7010210 15.44%
PUBLIC COMPANY 29-06-2018 7010210 Transfer 14020420 15.44%
LIMITED
06-07-2018 7010210 Transfer 21030630 15.44%
31-03-2019 21030630 15.44%

2 THAI UNION ASIA 4274675 9.41% 01-04-2018 4274675 9.41%

INVESTMENT HOLDING 29-06-2018 4184675 Transfer 8459350 9.31%
LIMITED
06-07-2018 4195499 Transfer 12654849 9.29%
2 1 -1 2 - 2 0 1 8 -85043 Transfer 12569806 9.23%
28-12-2018 -10999 Transfer 12558807 9.22%
15-03-2019 -498447 Transfer 12060360 8.85%
22-03-2019 -105534 Transfer 11954826 8.77%
31-03-2019 11954826 8.77%

3 ANDHRA PRADESH 1236515 2.72% 01-04-2018 1236515 2.72%

INDUSTRIAL 29-06-2018 1236515 Transfer 2473030 2.72%
DEVELOPMENT
CORPORATION 06-07-2018 1236515 Transfer 3709545 2.72%
31-03-2019 3709545 2.72%

4 ADITYA BIRLA SUN 0 0.00% 01-04-2018 0 0.00%

LIFE TRUSTEE PRIVATE 2 1 -1 2 - 2 0 1 8 68600 Transfer 68600 0.05%
LIMITED A/C
28-12-2018 138100 Transfer 206700 0.15%
04-01-2019 1900 Transfer 208600 0.15%
11-01-2019 87690 Transfer 296290 0.22%
1 8 - 01 - 2 01 9 28200 Transfer 324490 0.24%
01-02-2019 6200 Transfer 330690 0.24%
08-02-2019 3743 Transfer 334433 0.25%
15-02-2019 64000 Transfer 398433 0.29%

AVANTI FEEDS LIMITED 41

 Sl. Name of the Share Shareholding as on Date Increase/ Reason Cumulative
No. Holder 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares shares
of the of the
company company
08-03-2019 91600 Transfer 490033 0.36%
15-03-2019 584400 Transfer 1074433 0.79%
31-03-2019 1074433 0.79%

5 MOTILAL OSWAL 157000 0.35% 01-04-2018 157000 0.35%

FOCUSED BUSINESS 29-06-2018 157000 Transfer 314000 0.35%
ADVANTAGE FUND
06-07-2018 157000 Transfer 471000 0.35%
20-07-2018 18700 Transfer 489700 0.36%
17-08-2018 24294 Transfer 513994 0.38%
24-08-2018 6 Transfer 514000 0.38%
31-03-2019 514000 0.38%

6 SBI SMALL AND 70000 0.15% 01-04-2018 70000 0.15%

MIDCAP FUND 29-06-2018 120000 Transfer 240000 0.26%
06-07-2018 120000 Transfer 360000 0.26%
22-02-2019 46825 Transfer 406825 0.30%
01-03-2019 19769 Transfer 426594 0.31%
31-03-2019 426594 0.31%

7 MOTILAL 52192 0.11% 01-04-2018 52192 0.11%

OSWAL SELECT 06-04-2018 2003 Transfer 54195 0.12%
OPPORTUNITIES FUND
29-06-2018 55897 Transfer 110092 0.12%
06-07-2018 55046 Transfer 165138 0.12%
20-07-2018 6480 Transfer 171618 0.13%
03-08-2018 24500 Transfer 196118 0.14%
17-08-2018 7245 Transfer 203363 0.15%
3 0 -1 1 - 2 0 1 8 12027 Transfer 215390 0.16%
07-12-2018 82962 Transfer 298352 0.22%
2 1 -1 2 - 2 0 1 8 52000 Transfer 350352 0.26%
04-01-2019 25500 Transfer 375852 0.28%
31-03-2019 375852 0.28%

8 DOLLY KHANNA 371847 0.82% 01-04-2018 371847 0.82%

06-04-2018 7150 Transfer 378997 0.83%
13-04-2018 3000 Transfer 381997 0.84%
25-05-2018 -2121 Transfer 369813 0.81%
01-06-2018 -6232 Transfer 363581 0.80%
08-06-2018 -2180 Transfer 361401 0.80%
15-06-2018 -825 Transfer 360576 0.79%
22-06-2018 -7828 Transfer 352748 0.78%
29-06-2018 346404 Transfer 699152 0.77%
06-07-2018 339516 Transfer 1038668 0.76%
13-07-2018 -13578 Transfer 1025090 0.75%
20-07-2018 -3000 Transfer 1022090 0.75%

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Sl. Name of the Share Shareholding as on Date Increase/ Reason Cumulative

No. Holder 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares shares
of the of the
company company
27-07-2018 -9000 Transfer 1013090 0.74%
03-08-2018 -3000 Transfer 1010090 0.74%
10-08-2018 -132449 Transfer 877641 0.64%
17-08-2018 -15000 Transfer 862641 0.63%
24-08-2018 -23000 Transfer 839641 0.62%
31-08-2018 -25000 Transfer 814641 0.60%
07-09-2018 -6000 Transfer 808641 0.59%
14-09-2018 -6230 Transfer 802411 0.59%
21-09-2018 -6000 Transfer 796411 0.58%
28-09-2018 -17000 Transfer 779411 0.57%
05-10-2018 -19000 Transfer 760411 0.56%
1 2 -1 0 - 2 0 1 8 -1000 Transfer 759411 0.56%
1 9 -1 0 - 2 0 1 8 34000 Transfer 793411 0.58%
26-10-2018 -47000 Transfer 746411 0.55%
0 2 -1 1 - 2 0 1 8 -4500 Transfer 741911 0.54%
0 9 -1 1 - 2 0 1 8 -8000 Transfer 733911 0.54%
16-11-2018 -133000 Transfer 600911 0.44%
2 3 -1 1 - 2 0 1 8 -44000 Transfer 556911 0.41%
3 0 -1 1 - 2 0 1 8 -30000 Transfer 526911 0.39%
07-12-2018 -11000 Transfer 515911 0.38%
1 4 -1 2 - 2 0 1 8 -14000 Transfer 501911 0.37%
2 1 -1 2 - 2 0 1 8 -7000 Transfer 494911 0.36%
28-12-2018 -32000 Transfer 462911 0.34%
3 1 -1 2 - 2 0 1 8 -2000 Transfer 460911 0.34%
04-01-2019 -3000 Transfer 457911 0.34%
11-01-2019 -4000 Transfer 453911 0.33%
1 8 - 01 - 2 01 9 -8000 Transfer 445911 0.33%
25-01-2019 -10000 Transfer 435911 0.32%
01-02-2019 -61500 Transfer 374411 0.27%
08-02-2019 -54000 Transfer 320411 0.24%
15-02-2019 -17500 Transfer 302911 0.22%
22-02-2019 -9000 Transfer 293911 0.22%
01-03-2019 -3000 Transfer 290911 0.21%
08-03-2019 -4000 Transfer 286911 0.21%
15-03-2019 -14000 Transfer 272911 0.20%
22-03-2019 -19000 Transfer 253911 0.19%
29-03-2019 -14000 Transfer 239911 0.18%
30-03-2019 -6000 Transfer 233911 0.17%
31-03-2019 233911 0.17%

9 RELIANCE CAPITAL 0 0.00% 01-04-2018 0 0.00%

TRUSTEE CO. LTD- 1 2 -1 0 - 2 0 1 8 249759 Transfer 249759 0.18%
A/C RELIANCE SMALL
FUND 26-10-2018 61000 Transfer 310759 0.23%

AVANTI FEEDS LIMITED 43

 Sl. Name of the Share Shareholding as on Date Increase/ Reason Cumulative
No. Holder 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares shares
of the of the
company company
0 2 -1 1 - 2 0 1 8 39000 Transfer 349759 0.26%
16-11-2018 14160 Transfer 363919 0.27%
31-03-2019 363919 0.27%

10 MALABAR INDIA FUND 331872 0.73% 01-04-2018 331872 0.73%

LIMITED 27-04-2018 -104086 Transfer 227786 0.50%
04-05-2018 -30756 Transfer 197030 0.43%
11-05-2018 -69686 Transfer 127344 0.28%
29-06-2018 45312 Transfer 172656 0.19%
06-07-2018 127344 Transfer 300000 0.22%
15-03-2019 -52457 Transfer 247543 0.18%
31-03-2019 247543 0.18%

11 L&T MUTUAL FUND 310252 0.68% 01-04-2018 310252 0.68%

TRUSTEE LTD-L&T 13-04-2018 -22680 Transfer 287572 0.63%
EQUITY SAVINGS FUND
20-04-2018 -42731 Transfer 244841 0.54%
27-04-2018 -64311 Transfer 180530 0.40%
11-05-2018 -223 Transfer 180307 0.40%
18-05-2018 -34166 Transfer 146141 0.32%
25-05-2018 -15967 Transfer 130174 0.29%
01-06-2018 -37422 Transfer 92752 0.20%
22-06-2018 -66261 Transfer 26491 0.06%
29-06-2018 3800 Transfer 30291 0.03%
06-07-2018 26491 Transfer 56782 0.04%
26-10-2018 -45382 Transfer 11400 0.01%
31-03-2019 11400 0.01%

12 PINEBRIDGE GLOBAL 256570 0.56% 01-04-2018 256570 0.56%

FUNDS - PINEBRIDGE 01-06-2018 15142 Transfer 271712 0.60%
ASIA EX JAPAN
08-06-2018 7598 Transfer 279310 0.62%
15-06-2018 63024 Transfer 342334 0.75%
22-06-2018 -74410 Transfer 267924 0.59%
29-06-2018 -126833 Transfer 141091 0.16%
06-07-2018 141091 Transfer 282182 0.21%
13-07-2018 -18491 Transfer 263691 0.19%
20-07-2018 49423 Transfer 313114 0.23%
27-07-2018 54946 Transfer 368060 0.27%
03-08-2018 2191 Transfer 370251 0.27%
10-08-2018 150587 Transfer 520838 0.38%
15-03-2019 192387 Transfer 713225 0.52%
29-03-2019 150000 Transfer 863225 0.63%
31-03-2019 863225 0.63%

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Sl. Name of the Share Shareholding as on Date Increase/ Reason Cumulative

No. Holder 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares shares
of the of the
company company
13 VIVOG COMMERCIAL 207636 0.46% 01-04-2018 207636 0.46%
LIMITED 27-04-2018 -9500 Transfer 198136 0.44%
04-05-2018 -768 Transfer 197368 0.43%
08-06-2018 -17000 Transfer 180368 0.40%
22-06-2018 -20000 Transfer 160368 0.35%
29-06-2018 125368 Transfer 285736 0.31%
06-07-2018 160368 Transfer 446104 0.33%
31-03-2019 446104 0.33%

14 VIJAYSINGH B PADODE 169918 0.37% 01-04-2018 169918 0.37%

06-04-2018 596 Transfer 170514 0.38%
01-06-2018 -3000 Transfer 167514 0.37%
29-06-2018 107852 Transfer 275366 0.30%
06-07-2018 137683 Transfer 413049 0.30%
28-09-2018 5000 Transfer 418049 0.31%
16-11-2018 -5000 Transfer 413049 0.30%
08-02-2019 413049 Transfer 826098 0.61%
08-02-2019 -413049 Transfer 413049 0.30%
15-03-2019 3000 Transfer 416049 0.31%
31-03-2019 416049 0.31%

Note: The above information is based on the weekly beneficiary position received from Depositories.
v) Shareholding of Directors and Key Managerial Personnel:

Sl. Name of the Director Shareholding ason Date Increase/ Reason Cumulative
No. / KMP 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares of shares
of `2/- of the `1/- each of the
each company company
1 Srii Indra Kumar Alluri 2729750 6.01% 29-06-2018 2729750 Sub-division 5459500 6.01%
Chairman & Managing 30-06-2018 2729750 Bonus issue 8189250 6.01%
Director
31-03-2019 8189250 6.01%

2 Sri C. Ramachandra Rao 1000 0.00% 29-06-2018 1000 Sub-division 2000 0.00%
Joint Managing Director, 30-06-2018 1000 Bonus issue 3000 0.00%
CS & CFO
31-03-2019 0.00%

3 Sri N. Ram Prasad 103000 0.23% 29-06-2018 103000 Sub-division 206000 0.23%
Director 30-06-2018 103000 Bonus issue 309000 0.23%
02-07-2018 -29299 Transfer 279701 0.21%
31-03-2019 279701 0.21%

AVANTI FEEDS LIMITED 45

 Sl. Name of the Director Shareholding ason Date Increase/ Reason Cumulative
No. / KMP 01-04-2018 Decrease shareholding during
in share the year (from 01-04-
holding 2018 to 31-03-2019)
No of % of total No of % of total
Shares shares Shares of shares
of `2/- of the `1/- each of the
each company company
4 Sri A. V. Achar 1000 0.00% 29-06-2018 1000 Sub-division 2000 0.00%
Director 30-06-2018 1000 Bonus issue 3000 0.00%
31-03-2019 3000 0.00%
5 Sri K. Ramamohana Rao 0 0.00% 31-03-2019 0 0 0.00%
Director
6 Sri B.V. Kumar 0 0.00% 31-03-2019 0 0 0.00%
Director
7 Sri M.S.P. Rao 60 0.00% 20-07-2018 10 Transfer 70 0.00%
Director 17-08-2018 50 Transfer 120 0.00%
05-10-2018 15 Transfer 135 0.00%
25-01-2019 70 Transfer 205 0.00%
01-02-2019 35 Transfer 240 0.00%
15-02-2019 50 Transfer 290 0.00%
22-02-2019 150 Transfer 440 0.00%
31-03-2019 440 0.00%
8 Sri N.V. D.S. Raju 0 0.00% 31-03-2019 0 0 0.00%
Director
9 Smt. K. Kiranmayee 1850 0.00% 29-06-2018 1850 Sub-division 3700 0.00%
Director 30-06-2018 1850 Bonus issue 5550 0.00%
31-03-2019 5550 0.00%
10 Mr. Bunlesak Sorajjakit 0 0.00% 31-03-2019 0 0 0.00%
Director
11 Mr. Wai Yat Paco Lee 0 0.00% 31-03-2019 0 0 0.00%
Director
12 Sri Solomon Arokia Raj, 0 0.00% 31-03-2019 0 0 0.00%
IAS
Director- APIDC
Nominee
13 Sri J V Ramudu 0 0.00% 31-03-2019 0 0 0.00%
Director

VI INDEBTEDNESS:
indebtedness of the Company including interest outstanding / accrued but not due payment
(` In Lakhs)
Details Secured Unsecured Deposits Total
loans loans indebtedness
excluding
deposits
Indebtedness at the beginning of the
financial year
I) Principal amount 0 0 0 0
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 0 0 0 0
Total (i + ii + iii) 0 0 0 0

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Details Secured Unsecured Deposits Total

loans loans indebtedness
excluding
deposits
Change in Indebtedness during the
financial year
- Addition 0 0 0 0.00
- Reduction 0 0 0 0.00
Net Increase /(Decrease) 0 0 0 0
Indebtedness at the end of the
financial year
I) Principal amount 0 0.00 0 0
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i + ii + iii) 0 0.00 0 0

VII REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Joint Managing Director.
Sl Particulars of Remuneration Name of CMD/JMD Total Amount
No. A. Indra Kumar C . R. Rao
1 Gross Salary
(a) Salary as per provisions contained in
Section 17(1) of the Income-Tax Act, 1961 352.94 180.76 533.7
(b) Value of Prerequisite u/s 17(2) Income Tax Act, 1961 2.92 0 2.92
(c) Profit in lieu of salary under 0 0
2 Stock option 0 0 0
3 Sweat Equity 0 0 0
4 Commission
As % of profit 1322.45 1028.14 2350.59
others, specif 0 0 0
5 Others, please specify
Total (A) 1678.31 1208.90 2887.21
Ceiling as per the ACT 1678.36 1678.36 3356.72

VIII REMUNERATION OF OTHER DIRECTORS

Sl Particulars of Name of the Directors Total
No. Remuneration Amount
1 Independent AV B V Kumar MSP Rao K R Rao NVDS K. J.V.
Directors Achar Raju Kiranmayee Ramudu
Fee for Attending 3.70 3.70 2.60 3.00 1.65 2.05 0.40 17.10
Board/Committee
Meetings
Commission - - - - - - - -
Others, please - - - - - - - -
specify
Total (1) 3.70 3.70 2.60 3.00 1.65 2.05 0.40 17.10
2 Other Non- N Ram Bunlusak. Paco Lee APIDC
Executive Prasad S (Nominee)
Directors
Fee for Attending 1.75 1.35 1.35 0.40 4.85
Board/Committee
Meetings
Commission - - - -
others, specify… - - - -
Total (2) 1.75 1.35 1.35 0.40 - - 4.85
Total (B) = 1+ 2 5.45 5.05 3.95 3.40 1.65 2.05 21.95

Overall Ceiling as per the Act, Sitting Fees payable to a director for attanding Board / Committee Meeting shall
not exceed `1,00,000/- per meeting

AVANTI FEEDS LIMITED 47

 C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD / MANAGER/WTD :

Sl. Particulars of Remuneration Key Managerial Personnel Total

No. CEO Company CFO
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-tax
Act, 1961
2 Stock Optio NIL NIL
3 Sweat Equity
4 Commission
- as % of Profit
- others, specify…
5 Others, please specify
Total

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES :

Type Section of the Brief Details of Authority Appeal

Companies Act Description Penalty / [RD/ NCLT / made,
Punishment/ COURT] if any (give
Compounding details)
fees imposed
A.COMPANY
Penalty
Punishment NIL
Compounding
B. DIRECTORS
Penalty
Punishment NIL
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment NIL
Compounding

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Annexure - 2
FORM AOC – 2

Disclosure of particulars of contracts/ arrangements entered into by the Company with related
parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including arms length
transactions under fourth (4th) proviso thereto:

1. During the year 2018-19 there are no arrangements or transactions with related parties which were
not at arm’s length basis.

2. Details of material contracts or arrangement or transactions at arm’s length basis :

Nature & Tenure Of Justification for entering in to Salient Date of

Name Relationship
Contract contracts Conditions Approvals
Shri A.Indra Key EASE of Flat No: G2, Since the inception the Corporate `2.16 lakh per 12.08.2016
Kumar Managerial Concorde Apartments for Office of the Company is operating annum
Personnel 5yrs ending 31st March’16 from this premises which is
for Corporate Office. centrally located and rent of the
premises is very reasonable and is
at arm’s length .
Srinivasa Associate LEASE of Flat No.104, Since the inception the Corporate `2.55 lakh per 12.08.2016
Cystine (P) Company Concorde Apartments for Office of the Company is operating annum
Ltd 5yrs ending 31st March’16 from this premises which is
centrally located and rent of the
premises is very reasonable and is
at arm’s length
Shri A.Indra Key LEASE of H.No.37, Company’s Registered Office is `0.91 lakh per 16.03.2016
Kumar Managerial Baymount, Rushikonda, situated at Visakhapatnam and annum
Personnel Visakhapatnam for 5 w.e.f 1.4.2016 operating its office
years for Registered from this premises. rent of the
Office starting from 11th premises is very reasonable and is
February,2016 and paid up at arm’s length.
to 31st August, 2018.
Mr.A. Son of Mr. A. Manager- Operations Appointment and remuneration `24.90 11.08.2017
Venkata Indra Kumar is commensurate with the lakhs annual
Sanjeev Chairman & qualification and experience of the compensation
Managing Appointee.
Director
Avanti Subsidiary Purchase of MEIS licence MEIS licenses accrue to AFFPL Purchases 26.05.2018
Frozen on its exports and are purchased amounted to
Foods (P) for payment of customs duties `1522.13 lakhs
Limited on import of raw material and
spares. The purchases are made at
prevailing market prices at the time
of purchase.
Avanti Subsidiary Commission from AFFPL AFL extended corporate guarantee `32.07 lakhs 10.11.2018
Frozen for extending Corporate to the working capital limits
Foods (P) Guarantee to SBI for sanctioned by the SBI to AFFPL.
Limited sanction of working capital Commission @ 0.25% PA on
limits by SBI to AFFPL. corporate guarantee amount is
charged to AFFPL.
Avanti Subsidiary Sale of Shrimp feed. Company sold Shrimp Feed for `316.81 lakhs 26.05.2018
Frozen shrimp culture under taken by
Foods (P) AFFPL. Shrimp feed is sold at the
Limited same price as sold to other dealers.
Avanti Subsidiary Corporate Guarantee Corporate Guarantee `15,000.00 10.11.2018
Frozen provided to AFFPL for lakhs
Foods (P) working capital limits
Limited sanctioned by SBI
Thai Union Entity having Royalty payment Royalty payment on sale of `1,271.10 lakhs 26.05.2018
Feed Mill Co. significant shrimp feed
Ltd. influence on
the Company

AVANTI FEEDS LIMITED 49

 Annexure - 3
REPORT ON CSR ACTIVITIES/ INITIATIVES
[Pursuant to Section 135 of the Act & Rules made thereunder]

1. The Company has its CSR Policy within broad scope laid down in Schedule VI to the Act, as projects/
programmes/activities, excluding activities in its normal course of business.

2. The composition of the CSR Committee :

Name Designation Chairman/ Members

Mr. A. Indra Kumar Chairman & Managing Director Chairman
Mr. N. Ram Prasad Non-Executive Non-Independent Director Member
Mr. A.V. Achar Independent Director Member
Mr. B.V. Kumar Independent Director Member
Mrs..K.Kiranmayee Independent Director Member

Mr. C. Ramachandra Rao Joint Managing Director, Company Secretary & Member & Compliance
CFO Officer

3. Average Net Profit of the company for last 3 financial years : `378.58 crs

4. Prescribed CSR expenditure (2% of amount) : `7.57 crs

5. Details of CSR activities/projects undertaken during the year:

a) Total amount spent in the financial year: `4.97 crs

b) Amount un-spent: `2.60 crs

c) Manner in which the amount spent during the financial year ended 31-03-2019 is detailed below:
(` In Lakhs)
Cumulative
Sector(s) Amount Amount Direct/
Geographical areas spend
covered outlay spent through
CSR project/ where project was upto to the
within for on the implementing
implemented reporting
schedule VII Project project/ agency*
period
1 2 3 4 5 6 7
Promoting Promoting AVR Trust - ABN & PRR
Education Education collage for constructing
among among a new block to cater to 150.00 150.00 Direct
Children Children increasing strength of
students, Andhra Pradesh
Merit scholarships to
students and Scholarship
of Fee reimbursement for
top 3 rank holders among
0.71 0.71 Direct
Rural students and
economically backward
of each discipline of
ABN&PRR College
Class room construction
and providing computer
at ABGZPP High School 1.94 1.94 Direct
Pasivedala, Kovvur
Mandal

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Cumulative
Sector(s) Amount Amount Direct/
Geographical areas spend
covered outlay spent through
CSR project/ where project was upto to the
within for on the implementing
implemented reporting
schedule VII Project project/ agency*
period
K C Mahindra Educational
Trust. This trust provides
quality education
to disadvantaged
9.00 9.00 Direct
girl children from
marginalised and
economically poor
families.
Provided desks for
students of (i) ZPH
school at Burugupalem
Village, Visakhapatnam 6.05 6.05 Direct
Dist., and (ii)Govt. Degree
College at Narsipatnam
in Visakhapatnam Dist.
Donation to Alluri
Bapineedu Trust towards
5.00 5.00 Direct
Medical and health
activities
Eradicating Eradicating Supporting Mid Day
hunger, hunger, Meal to students from
Poverty and Poverty and economically backward 5.00 5.00 Direct
malnutrition malnutrition families in Denduluru,
and Providing and West Godavari District
Health care Providing Contribution to
Health care Akshyapatra supporting
Med Day Meal Scheme
111.47 111.47 Direct
for construction of
Kitchen, at Podagatlapalli,
Ravulapalem, E.G. District
Donation to Hrudaya
Cure (A Little Heart
Foundation which
provides free medical
25.00 25.00 Direct
treatment to the children
with heart problems
from economically poor
families)
Environmental Environmental Plants Purchased and
Sustainability Sustainability distributed at Mamledar 0.10 0.10 Direct
Office at Valsad
Deepening of ponds
at Villages Balda,
Dhagamdal and Sukesh 2.00 2.00 Direct
by removing silt and
strengthening the bonds
1400 Nos of Jute bags
to YSR Horticutural 2.45 2.45 Direct
University
Tractor to Bandapuram
7.10 7.10 Direct
Muncipality

AVANTI FEEDS LIMITED 51

 Cumulative
Sector(s) Amount Amount Direct/
Geographical areas spend
covered outlay spent through
CSR project/ where project was upto to the
within for on the implementing
implemented reporting
schedule VII Project project/ agency*
period
Support Support Relief material distributed
to Cyclone to Cyclone to Titli Cyclone effected
11.27 11.27 Direct
effected effected people in Mr.kakulam
people people District
Construction of sheds
for farmers whose
infrastructure washed 24.35 24.35 Direct
out in Ghaja Cyclone in
Tamilnadu
Promoting Promoting Contribution to Ms.
Sports Sports Bolineni Chandrika
for participating in 0.50 0.50 Direct
Asian Power Lifting
Championship
Organising cricket
1.26 1.26 Direct
tournament in rural areas
Organising Volleyball
Summer Coaching to
children and held a
3.60 3.60 Direct
Tournament at Kovvur
in which 6 district teams
participated
Lake View Sports
Association for creating
5.00 5.00 Direct
infrastructure and train
young children in Tennis
Care of aged & Old age Contribution to
Disabled home Sowbhagya Durga Old
Age Home to corpus
25.00 25.00 Direct
fund to take care of
inmates who are old and
deserted.
Donations Donations Donation to National
50.00 50.00 Defence Fund
Defence Fund
Chief
Donation to Chief
50.00 50.00 Ministers
Ministers' Relief Fund
Relief Fund
Total 496.80 496.80

6. Reasons for not spending the amount during financial year ended 31-03-2019.
The CSR committee has identified certain specific area as envisaged under the Act for
implementation of CSR activities during the latter part of the year. The Committee is in the
process of finalizing the Budget of CSR activities in 2019-20 in which the un- spent amount of
2018-19 will also be included.
7. The CSR Committee confirms that the implementation and monitoring of the CSR Policy is in
compliance with the CSR objectives and Policy of the Company.

For and on behalf of the Board

Avanti Feeds Limited

A. Indra Kumar
DIN – 00190168
Chairman & Managing Director
Place: Hyderabad & Chairman of the CSR Committee
Date : 07.06.2019

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Annexure - 4
Statement containing salient features of the financial statement of
subsidiaries/ associate companies/ joint ventures

Part “A”: Subsidiary

Avanti Frozen Svimsan Exports
Name of the subsidiary Foods Private and Imports
Limited Private Limited
1. Reporting period for the subsidiary concerned, if different -Not applicable – -Not applicable –
from the holding Company’s reporting period
2. Reporting currency and Exchange rate as on the last -Not applicable – -Not applicable –
date of the relevant Financial year in the case of foreign
subsidiaries.
3. Share capital `1001.67 Lakhs `100 Lakhs
4. Reserves & surplus `36,967.46 Lakhs `(192.13) Lakhs
5. Total assets `42,999.27 Lakhs `0.01 Lakhs
6. Total Liabilities `5,030.14 Lakhs `92.14 Lakhs
7. Investments NIL NIL
8. Turnover `75,251.99 Lakhs NIL
9. Profit before taxation `9,254.56 Lakhs `(0.44) Lakhs
10. Provision for taxation `871.20 Lakhs NIL
11. Profit after taxation `8383.36 Lakhs `(0.44) Lakhs
12. Proposed Dividend NIL NIL
13. % of shareholding 60% 100%

Part “B”: Associates and Joint Ventures

Srivathsa Power Patikari Power
Name of Associates/Joint Ventures
Projects Limited Private Limited
1. Latest audited Balance Sheet Date 31.03.2019 31.03.2019
2. Shares of Associate/Joint Ventures held by the Company
1,66,93,630 1,06,45,200
on the year end No.
Amount of Investment in Associates/Joint Venture `1670.54 Lakhs `1002.24 Lakhs
Extent of Holding % 49.99% 25.89%
Description of how there is significant influence Two directors Two directors
nominated nominated
3. Reason why the associate/joint venture is not consolidated Not Applicable Not Applicable
4. Net worth attributable to Shareholding as per latest
`2129.84 Lakhs `1,016.92 Lakhs
audited Balance Sheet
7. Profit / (Loss) for the year `(104.45) Lakhs `138.28 Lakhs
i. Considered in Consolidation
ii. Not Considered in Consolidation NIL NIL

AVANTI FEEDS LIMITED 53

 Annexure - 5
RATIO OF REMUNERATION TO EACH DIRECTOR :
Details / Disclosures of Ratio of Remuneration to each Director to the median employee’s
remuneration :
(i) the ratio of the remuneration of each director to the A. Indra Kumar : 600 : 1
median remuneration of the employees of the Company for
the financial year; C. Ramachandra Rao : 433 : 1
(ii) the percentage decrease in remuneration of each director, A. Indra Kumar : -42%
Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year; C. Ramachandra Rao : -43%
(iii) the percentage increase in the median remuneration of
5.14%
employees in the financial year;
(iv) the number of permanent employees on the rolls of
1008 employees
Company;
(v) the explanation on the relationship between average
Normal yearly increments to staff.
increase in remuneration and Company performance;
(vi) comparison of the remuneration of the Key Managerial 1. Turnover decreased by 2.73% from
Personnel against the performance of the Company; `2815.33 crs in 2017-18 to `2738.42
crs in 2018-19.
2. PBT decreased by 46.65% from
`629.15 crs in 2017-18 to `335.67 crs
in 2018-19.
(vii) (a) variations in the market capitalisation of the As on As on
Company, 31.03.2019 31.03.2018
(b) price earnings ratio as at the closing date of the current Market
financial year and previous financial year 5558.61 crs 10140 crs
Capitalisation
(c) percentage increase over decrease in the market PE Ratio 25.11 24.42
quotations of the shares of the Company in comparison
Company had came out with IPO in
to the rate at which the Company came out with the last
1994, An amount of `1000/- invested
public offer in case of listed companies, and in case of
in IPO in 1994 would be worth
unlisted companies, the variations in the net worth of the
`611,775/- indicating compounded
Company as at the close of the current financial year and
annual growth rate of 24.34%. This is
previous financial year;
excluding the dividend accrued there
on in all these years.
(viii) (a) average percentile increase already made in the 12.33%
salaries of employees other than the managerial personnel
in the last financial year
Managerial Remuneration decreased
(b) its comparison with the percentile decrease in the by 42.61% due to -
managerial remuneration
(i) a part of managerial remuneration
(c) justification thereof and point out if there are any is based on Profits of the Company
exceptional circumstances for decrease in the managerial and
remuneration;
(ii) The PBT of the Company
Decreased by 46.65% as compared to
previous year.
(ix) comparison of the each remuneration of the Key Decrease in Remuneration :
Managerial Personnel against the performance of the A. Indra Kumar : 42%
Company C. Ramachandra Rao : 43%
Performance of the Company :
1. Turnover decreased by 2.73% from
`2815.33 crs in 2017-18 to `2738.42
crs in 2018-19.
2. PBT decreased by 46.65% from
`629.15 crs in 2017-18 to `335.67 crs
in 2018-19.

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(x) the key parameters for any variable component of A.Indra Kumar : 4% of PBT is paid as
remuneration availed by the directors; variable component in the form of
commission.
C.Ramachandra Rao : 3% of PBT is
paid as variable component in the
form of commission.
(xi) the ratio of the remuneration of the highest paid director
to that of the employees who are not directors but receive NA
remuneration in excess of the highest paid director during
the year;
(xii) affirmation that the remuneration is as per the
YES
remuneration policy of the Company.

STATEMENT SHOWING DETAILS OF EMPLOYEES OF THE COMPANY :

(Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)

Name of the Employee : Paresh Kumar Shetty

(i) designation of the employee; General Manager –
Marketing
(ii) remuneration received; `129.01 Lakhs
(iii) nature of employment, whether contractual or otherwise; Regular
(iv) qualifications and experience of the employee; MBA – Marketing with 23
years of experience
(v) date of commencement of employment; 08.05.2012
(vi) the age of such employee; 48 years
(vii) the last employment held by such employee before joining the General Manager –
Company; Marketing in Suguna Foods
Private Limited
(viii) the percentage of equity shares held by the employee in the
NA
Company within the meaning of clause (iii) of sub-rule (2) above; and
(ix) whether any such employee is a relative of any director or manager
NA
of the Company and if so, name of such director or manager:
The employee, if employed throughout the financial year, was in
receipt of remuneration for that year which, in the aggregate, was not NA
less than sixty lakh rupees;
The employee, if employed for a part of the financial year, was in
receipt of remuneration for any part of that year, at a rate which, in the NA
aggregate, was not less than five lakh rupees per month;
The employee, if employed throughout the financial year or part
thereof, was in receipt of remuneration in that year which, in the
aggregate, or as the case may be, at a rate which, in the aggregate,
is in excess of that drawn by the managing director or whole-time NA
director or manager and holds by himself or along with his spouse and
dependent children, not less than two percent of the equity shares of
the Company.

AVANTI FEEDS LIMITED 55

 MANAGEMENT’S DISCUSSION
AND ANALYSIS
CAVEAT: in 2017 with a growth of about 13.64%. However,
This section of Annual Report has been included considering the present shrimp industry situation,
in adherence to the spirit enunciated in the a growth of about 5 % over 2018 is considered
code of Corporate Governance approved by the possible with a global shrimp production and
Securities and Exchange Board of India. Though, supply at about 4 Mn MT.
utmost care has been taken to ensure that the
After registering growth for successive five years
opinions expressed by the Management herein
from 2012-13 to 2017-18, the shrimp production in
contain its perceptions on most of the important
2017-18 and 2018-19 the growth was flat. It was
trends having a material impact on the Company’s
mainly due to extended winter in US, growth in
operations, no representation is made that the
shrimp production globally, resulting in decrease
following presents an exhaustive coverage on
in export prices of shrimp. However, the export
and of all issues related to the same. Further,
prices are in the process of stabilization and with
the discussion following herein reflects the
positive forecast of growth in shrimp consumption,
perceptions on major issues as on date and the
the industry is anticipating to pick up the growth
opinions expressed here are subject to change
trajectory in future.
without notice. The Company undertakes no
obligation to publicly update or revise any of the STRENGTHS, WEAKNESS, OPPORTUNITIES
opinions or statements expressed in this report, AND THREATS:
consequent to new information, future event, or
STRENGTHS:
otherwise.
The Company is a pioneer in Indian Shrimp industry
INDUSTRY OVERVIEW: having over 25 years of proven track record. The
Global Aquaculture Production: Company has technical expertise in developing
Aqua culture production is projected to grow need based feed formulation to suit the shrimp
from 47.2 Mn MT in 2006 to 93.6 Mn MT by 2030, culture condition of different regions in India.
while fishery production is expected to decline This flexibility ensures consistent performance
from 64.5 Mn MT to 58.2 Mn MT during the same of Company’s feed in varying climatic and other
time. To feed world growing population, the conditions of shrimp culture with assured yield to
aquaculture has to deliver an additional 46.4 Mn the farmer.
MT to meet the world’s sea food needs (source:
GOAL). The Company provides the technical assistance to
the farmer in shrimp culture by trained technical
Shrimp aquaculture production constitute team and also provides the farmer with the
significant part of fish and fisheries production. developments in the techniques of shrimp culture
During 2016-2019 the global shrimp aquaculture for improved yields.
production was projected CAGR 4.8% as
compared to CAGR 3.6 % during 2006-2012. The The Company has a strong dealership network
farmed shrimp is estimated as 3.5 Mn MT in 2018. as channel partners Pan-India catering to the
requirements of the farmers. The Company
The shrimp production in the country during 2018 engages, on continuous basis, research and
was 6,20,000 MTs. The shrimp production in 2019 developments in collaboration with technical
is likely to be down by 10%-15% compared to 2018 experts of Thai Union Group in adopting to the
with an estimated production of about 5,75,00 changed needs of the shrimp culture activity.
MTs, with corresponding feed consumption
estimated to around 10,50,00 MTs. The Company, with its technical expertise is
capable of scaling up the production at short
As per GOAL data, global shrimp production and notice with competitive CAPEX.
supply is 3.75 Mn MT in 2018 as against 3.30 Mn MT

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Company Overview Statutory Reports Financial Statements

WEAKNESS: of traceability, scientific pond management,

Although shrimp production has tripled in the a judicious approach on prices and forex
recent years, the shrimp culture industry is management is expected to reduce the impact of
continued to be concerned about inadequate threats to a great extent.
infrastructure facilities, particularly inadequate
OUTLOOK:
power supply to aquaculture farms and
inadequate cold store chain available for farmers With sustained growth of sea food consumption
to store their product. globally year after year, the demand for shrimp
is estimated to grow at about 3.6% CAGR. India
Though, the aquaculture is similar to agriculture being one of the major source of supply of
in many aspects, the recognition of aquaculture processed shrimp the growth Year-on-Year is
on par with agriculture is still awaited from the estimated at 5% with an estimated sustainable
Government in order to avail the benefits that are margin of about 10%.
available to agriculture.
POWER:
OPPORTUNITIES: The Company has investment in the following
power projects :
The global sea food consumption is increasing as
Sea food is rich in nutrition and is a healthy food (a) The 3.2 MW Wind Mill Project in Chitradurg,
compared of other forms of meat. As per GOAL Karnataka State is operational and has
report the wild caught sea food is declining year generated 40.06 lac units during the year.
after year necessitating the increase in farmed sea
food. (b) Srivathsa Power Projects Private Limited:
Srivathsa Power Projects Private Limited, is a
With long coast line, India is ideally suited
17.2 MW gas based independent power project
for development of seafood industry. A
situated in Andhra Pradesh in which company
planned development would provide abundant
holds 49.99%of equity shares.
opportunities for seafood industry. The successful
adoption of Vannamei Specie shrimp culture has During the year 2018-19, the gas supplied by
to be replicated for other species of exportable GAIL was only 20,422 SCMD as against the
fishes for broad basing the export basket and nominated quota of 65,000 SCMD stated to
gain recognition in international market. be due to non-availability of APM-Gas. As
a result, the power generation was limited
THREATS:
to 308.20 lakhs units as against generation
The aqua culture activity is dependent on climatic capacity of 1,100 lakhs units. During the year
conditions prevailing during season to season, 2018-19, the Company reported a turnover of
which is unpredictable. Natural calamities like `1,138.80 lakhs and a loss of `210.97 lakhs after
floods, cyclones, during the culture season can charging interest and depreciation, as per
have serious impact on the prospects of successful audited financials.
culture. Inspite of technical advancement and
development of Specific Pathogen Free (SPF) (c) Patikari Power Private Limited:
seed, the possibilities of the shrimps getting The Company holds 25.88% equity shares of
affected by virus and diseases cannot be ruled Patikari Power Private Limited which has a 16
out. MW Hydel Power Project in Himachal Pradesh.
During the year 2018-19 as per audited
Volatility of international prices of shrimps and
financials the Company generated 52.80 lakhs
fluctuating foreign exchange rates, US Anti-
saleable energy units, yielding a gross sales
Dumping Duty and US Countervailing Duty
income of `1,188.05 lakhs which resulted in
continues to be the major areas of threat for the
a net profit of `530.94 lakhs after charging
industry.
interest, depreciation and tax. The term loan
However, development of potential domestic of `7506 lakhs availed by the Company has
market to support exports, strict adherence been repaid fully on 9th April, 2019 and it is
debt free company.

AVANTI FEEDS LIMITED 57

 INTERNAL CONTROL SYSTEMS AND THEIR • Debtors Turnover ratio has been computed
ADEQUACY: for both years on the basis of Gross Sales Value
(net of rebates and discounts) instead of Gross
The company has a proper and adequate system Revenue, and
of internal controls to ensure that all assets are
safeguarded and protected against loss from 2019 2018
unauthorized use or disposition and that all
transactions are properly authorized recorded (i) Operating Profit 10.49% 21.16%
and reported correctly. Further, the internal Margin (%)
control system is designed to ensure that all (ii) Net Profit Margin1 (%) 7.66% 14.61%
the financial and other records are reliable for
preparing financial statements and for maintaining (iii) Debtors Turnover – 155.47 181.11
accountability of the assets. Based on Gross Sales
Value (no of times)
In addition, Company has an internal Risk &
(iv) Inventory Turnover 7.76 6.25
Compliance Department headed by a Chartered
Accountant having 20 years of experience in (v) Current Ratio 4.80 3.17
the relevant field. The Department is responsible
(vi) Return on Net worth1 20.06% 44.41%
to ensure compliance of all the statutory
(%)
requirements by the Company. This Department is
Notes
also responsible for Internal Audit and periodical
risk appraisal, internal as well as external, of all 1. Net Profit Margin and Return on Net worth
the functional departments in the organization. ratios have been computed based on Profit
On the basis of the appraisal, potential risks are After Tax (before exceptional items).
identified and preventive measures are initiated
2. Return on Net Worth is higher for the year
depending on the perceived gravity of the risk.
ended 31st March, 2018 due to higher rate of
DISCUSSION ON FINANCIAL PERFORMANCE growth in Profit After Tax.
WITH RESPECT TO OPERATIONAL 3. Interest Coverage Ratio and Debt Equity ratio
PERFORMANCE: are not relevant for the Company as it has
(i) Operational Performance: negligible debt.

The financial statements have been prepared Human Resources / Industrial Relations:
in compliance with the requirement of the The process of shrimp feed production involves
Companies Act, 2013 and Indian Accounting specialization in procurement of suitable raw
Standards in India. During the year under materials, feed formulation, production to suit the
review, your company reported profit of needs of shrimp culture, which needs qualified and
`33,567.18 lakhs before tax adjustments as trained staff for these operations. The marketing
compared to profit of `62,915.17 lakhs in the staff has to be well trained in techniques of shrimp
previous year. culture to assist to the farmers. In this direction,
the Company imparts expert training in the
(ii) Segment-wise Performance: respective field and develops Human Resource
capabilities. The periodical trainings, incentives,
The segment-wise performance of the
increments and other welfare measures ensure
Company during the year 2018-19 is disclosed
healthy industrial relations. During the year under
in the Notes to Accounts at Schedule No. 37
review the Company employed 90 persons and
KEY FINANCIAL RATIOS: the total number of employees as on 31.03.2019 is
1008 employees.
[Pursuant to Schedule V(B) to the Securities and
Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015]

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BUSINESS RESPONSIBILITY
REPORT
Section A: General Information about the Company
1. Corporate Identity Number (CIN) of the (a) Shrimp feed
Company: L16001AP1993PLC095778
(b) Power from Wind mills
2. Name of the Company: Avanti Feeds Limited
9. Total number of locations where business
3. Registered address: Flat No.103, Ground activity is undertaken by the Company
Floor, R Square, Pandruangapuram,
i. Number of International Locations : NIL
Visakhapatnam-530003, Andhra Pradesh
ii. Number of National Locations: Five (5)
Corporate Office Address: G-2, Concorde
Shrimp Feed manufacturing plants and One
Apartments, 6-3-658, Somajiguda,
(1) Wind Power Generation farm having 3.2
Hyderabad-500082.
MW capacity and two (2) offices.
4. Website: www.avantifeeds.com
10. Markets served by the Company : Local/State/
5. E-mail id : avantiho@avantifeeds.com National/International:

6. Financial Year reported: 2018-19 National: Company’s Shrimp feed is marketed

in the states of Andhra Pradesh, Tamilnadu,
7. Sector(s) that the Company is engaged Gujarat, West Bengal, Odisha, Maharashtra,
in(industrial activity code-wise) Karnataka and Goa through its extensive
(a) 2309.90.00 Shrimp Feed dealer network.

(b) 8502.31.00 Power from wind mills International: During the year under review the
Company exported shrimp feed to Bangladesh,
8. List three key products/services that the by appointing a dealer.
Company manufactures/provides (as in
balance sheet)

AVANTI FEEDS LIMITED 59

 Section B:Financial Details of the Company
1. Paid up Capital(INR) : 1362.46 Lakhs c. Donation to trust towards medical and
health activities.
2. Total Turnover (INR) : 2,73,842.34 Lakhs
d. Promoting Environmental Sustainability.
3. Total profit after taxes(INR) : 22,349.45 Lakhs
e. Promoting sports among youth.
4.
Total Spending on Corporate Social
Responsibility (CSR) as percentage of profit f. Contribution to Sowbhagya Durga Old age
after tax (%) : Company has spent D496.80 Home Corpus fund to take care of inmates
Lakhs on CSR in the year 2018-19 and this is who are old and deserved.
2.22% of profit after tax for the year 2018-19.
g. Relief to Cyclone effected people.
5. List of activities in which expenditure in 4
h. Donation to National Defence Fund & Chief
above has been incurred:
Minister’s Relief Fund.
a.
Promoting education by improving
infrastructure in schools in rural areas.

b. Contribution to trust for providing quality

education to disadvantaged girl children
from marginalized and economically poor
families.

Section C: Other Details

1. Does the Company have any Subsidiary 3. Do any other entity/entities (e.g. suppliers,
Company/Companies? distributors etc.) that the Company does
business with, participate in the BR initiatives
Yes. Company has two subsidiaries. of the Company?
1) Avanti Frozen Foods (P) Ltd.,
2) SVIMSAN Exports & Imports (P) Ltd A large number of Company’s raw material
suppliers for shrimp feed are established
2. Do the Subsidiary Company/Companies entities in the organized sector. They don’t
participate in the BR Initiatives of the parent participate directly in the BR initiatives of the
company? Company. Company’s shrimp feed distributors
No. M/s. SVIMSAN Exports & Imports (P) Ltd., / dealers are mostly proprietors or partnership
has discontinued business operations since firms catering to the shrimp feed demand of
2002. The other subsidiary M/s. Avanti Frozen farmers engaged in shrimp culture and are not
Foods Pvt. Ltd., takes up CSR activities on its part of BR initiatives.
own.

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Section D: BR Information
1. Details of Director/Directors responsible for BR
a) Details of the Director/Directors responsible for implementation of the BR policy/policies
• DIN Number : 00190168
• Name : Sri A. Indra Kumar
• Designation : Chairman & Managing Director.

b) Details of the BR head

S.No. Particulars Details

1. DIN Number 0026010
2. Name Sri C Ramachandra Rao
3. Designation Joint Managing Director, Company Secretary & CFO
4. Telephone number 040-23310260
5. e-mail id avantiho@avantifeeds.com

2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)

a) Details of Compliance:

P P P P P P P P P
S.No. Questions
1 2 3 4 5 6 7 8 9
1. Do you have a policy / policies for.... Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in Y Y Y Y Y Y Y Y Y
3. Does the policy conform to any national Policy conform to National Voluntary
/international standards? If yes, specify? Guidelines on Social Environmental and
Economic Responsibilities of Business issued
by Ministry of Corporate Affairs.
4. Has the policy being approved by the Y Y Y Y Y Y Y Y Y
Board?
If yes, has it been signed by MD/owner/
CEO/appropriate Board Director?

5. Does the company have a specified Y Y Y Y Y Y Y Y Y

committee of the Board/Director/Official
to oversee the implementation of the
policy?
6. Indicate the link for the policy to be www.avantifeeds.com
viewed online?
7. Has the policy been formally Y Y Y Y Y Y Y Y Y
communicated to all relevant internal
and external stakeholders?
8. Does the company have in-house Y Y Y Y Y Y Y Y Y
structure to implement the policy/
policies.
9. Does the Company have a grievance Y Y Y Y Y Y Y Y Y
Redressal mechanism related to the
policy/policies to address stakeholders’
grievances related to the policy/policies?
10. Has the company carried out N N N N N N N N N
independent Audit /evaluation of the
working of this policy by an internal or
external agency?

AVANTI FEEDS LIMITED 61

 b) If answer to S.No.1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)

P P P P P P P P P
S.No. Questions
1 2 3 4 5 6 7 8 9
1. The company has not understood the NA NA NA NA NA NA NA NA NA
Principles
2. The company is not at a stage where NA NA NA NA NA NA NA NA NA
it finds itself in a position to formulate
and Implement the policies on specified
principles
3. The company does not have financial or NA NA NA NA NA NA NA NA NA
manpower resources available for the
task
Does the company have a specified NA NA NA NA NA NA NA NA NA
committee of the Board/Director/Official
to oversee the implementation of the
policy?
4. It is planned to be done within next 6 NA NA NA NA NA NA NA NA NA
Months
Has the policy been formally NA NA NA NA NA NA NA NA NA
communicated to all relevant internal
and external stakeholders?
5. Itisplannedtobedonewithinthenext1 year NA NA NA NA NA NA NA NA NA
6. Any other reason(please specify) NA NA NA NA NA NA NA NA NA

3. Governance related to BR

• Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess
the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year:
Yearly once.

• Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this
report? How frequently it is published? : The Business Responsibility Report is published along
with Annual Report.

Section E: Principle-wise performance

Principle 1 percentage was satisfactorily resolved by the
1. Does the policy relating to ethics, bribery and management?
corruption cover only the company? Yes/No. As specified in Corporate Governance Report,
Does it extend to the Group/Joint Ventures/ 295 investor complaints received during the
Suppliers/Contractors/NGOs/Others? FY 2018-19. No complaint was outstanding as
The Company’s Code of Conduct for Directors on 31st March 2019.
and Senior Managers covers the policy and it
In addition to this there are no complaints
includes all individuals working with it and its
received during the year relating to ethics,
subsidiaries.
bribery or corruption from any stakeholders.
2. How many stakeholder complaints have been
received in the past financial year and what

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Principle 2 Fish Meal is produced by steam drying the

1. List up to 3 of your products or services sea caught fish. This being a natural resource,
whose design has incorporated social Ministry of Agriculture of Government of India
or environmental concerns, risks and/or have taken stringent steps to avoid catching
opportunities. juvenile fish. Also, fishing is banned during
breeding season so as to allow replenishment
i) Shrimp Feed: Company manufactures
of fish in sea. Our suppliers follow the
shrimp feed by using natural ingredients
guidelines issued by Ministry of Agriculture
like, Soya Bean Meal, wheat flour, sterilized
there by making it sustainable.
fish meal, phospholipids, minerals &
vitamins . In our production process we do 4. Has the company taken any steps to procure
not use any chemicals or antibiotic. Our goods and services from local & Small
feed manufacturing process or design does producers, including communities surrounding
not create environmental concerns. their place of work? If yes, what steps have
been taken to improve their capacity and
ii) Power generation from wind mills: Company
capability of local and small vendors?
owns 3.2 MW wind mills in Chitradurga in
Karnataka. This is non-conventional and The Company encourages and develops local
renewable source of energy produced and manufacturers and small enterprises for supply
sold to BESCOM. of various locally available goods. Regular
technical inputs are given by the Company
2. For each such product, provide the following to upgrade and maintain the quality of the
details in respect of resource use (energy, water, products manufactured by such enterprises.
raw material etc.) per unit of product(optional): The Company also gives priority to local
i. Reduction during sourcing/production/ service providers from obtaining various
distribution achieved since the previous support services in its offices and plants.
year throughout the value chain?
5. Does the company have a mechanism to
ii. Reduction during usage by consumers recycle products and waste? If yes what is the
(energy, water) has been achieved since percentage of recycling of products and waste
the previous year? (separately as<5%, 5-10%,>10%).
The Company has a mechanism of recycling
No change in the trend of sourcing /production
products and waste which is less than 5%.
or distribution of the shrimp feed as compared
to previous year. Principle 3:

1. Please indicate the Total number of employees:

3. Does the company have procedures in
1008 employees. (PY 918)
place for sustainable sourcing (including
transportation)? 2. Please indicate the Total number of employees
hired on temporary/contractual/casual basis :
i. If yes ,what percentage of your inputs was
160 employees (PY 103)
sourced sustainably?
3. Please indicate the number of permanent
The major raw material for production of women employees : 18 employees (PY 20).
shrimp feed is Soya DOC, Wheat Flour and
sterilized fish meal. 4. Please indicate the Number of permanent
employees with disabilities: Nil
The raw materials like wheat flour and soya
5. Do you have an employee association that is
DOC is processed from wheat and soya which
recognized by management. : No.
are cultivated and available locally and does
not pose any challenge to environment or 6.
What percentage of your permanent
future sustainability. employees is members of this recognized
employee association? Not applicable.

AVANTI FEEDS LIMITED 63

 7. Please indicate the number of complaints a timely feed back and response to ensure that
relating to child labour, forced labour, stakeholders remains informed .
involuntary labour, sexual harassment in the
2. Out of the above, has the company identified
last financial year and pending, as on the end
the disadvantaged, vulnerable & Marginalized
of the financial year.
stakeholders.
No of
No of The Company engages with stakeholders
complaints
complaints
pending and is sensitive towards their needs and
S. filed
Category as on end
No. during the
of the
expectations. The Company focuses on being
financial responsive, proactive and transparent.
financial
year
year
1. Child labour / NIL NIL The Company is in the process of identifying
forced labour disadvantaged, vulnerable and marginalized
/involuntary
stakeholders and proposes to take initiative
labour
2. Sexual NIL NIL
based on the need of such stakeholders.
harassment
3. Are there any special initiatives taken by the
3. Discriminatory NIL NIL
employment company to engage with the dis-advantaged,
vulnerable and marginalized stakeholders.
8. What percentage of your under mentioned
employees were given safety & skill up- Company undertakes various social initiatives
gradation training in the last year? in the villages in the vicinity of factories. These
activities vary from time to time and are often
a) Permanent Employees : 75% implemented in consultation with the local
community elders.
b) Permanent Women Employees : 100%
Principle 5
c) Casual/Temporary/Contractual Employees:
65% 1. Does the policy of the company on human
rights cover only the company or extend
d) Employees with Disabilities: Not Applicable
to the Group /Joint Ventures /Suppliers /
Principle 4: Contractors/NGOs/Others?
1. Has the company mapped its internal and
The Company’s policy on human rights
external stake holders? Yes
presently covers the Company and its
The Company mapped its internal and subsidiaries.
external stake holders as follows:
Employees 2. How many stakeholder complaints have been
received in the past financial year and what
Customers
percent was satisfactorily resolved by the
Dealers
management?
Suppliers
Shareholders There are no complaints regarding human
Bankers rights violation from any quarter during the
Regulatory Authorities financial year 2018-19.
Members of the Society
Principle 6
The Company strives to be transparent in its
1. Does the policy related to Principle 6 cover
communications and continual improvement.
only the company or extends to the Group /
Company engages with the identified
Joint Ventures/Suppliers/Contractors/NGOs/
stakeholders on an ongoing basis through
others.
constructive consultation process and follows

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The Company’s policy on environment covers All the factories of the Company comply
the Company and its subsidiaries. with the prescribed emission norms of State
Pollution Control Boards and during the
2. Does the company have strategies/ initiatives
financial year 2018-19 the emissions and waste
to address global environmental issues such
generated by the Company are with in the
as climate change, global warming, etc? Y/N.
permissible limits given by SPCB.
If yes, please give hyperlink for web page etc.
7. Number of show cause/ legal notices received
Company has a well laid down energy policy
from CPCB/SPCB which are pending (i.e. not
and is always striving to implement measures
resolved to satisfaction) as on end of Financial
to reduce carbon emissions. In the process
Year.
Company has installed wind mills for power
generation at Chitradurga in Karnataka and No show-cause or legal notices from the
installed solar lights in its feed plants. Further, pollution control authorities are pending as at
to conserve and recharge ground water, all the the end of financial year 2018-19.
manufacturing units are equipped with rain
water harvesting systems. To increase greenery, Principle 7
company has done extensive plantation in its 1. Is your company a member of any trade and
factories and also planted trees in the nearby chamber or association? If Yes, Name only
vicinity and villages. Company was also those major ones that your business deals
encouraging nearby villages to plant trees by with:
providing saplings and tree guards for all such
Company is member of Federation of Indian
initiatives.
Chambers of Commerce and Industry, The
3. Does the company identify and assess Federation of Telangana and Andhra Pradesh
potential environmental risks ?Y/N Chambers of Commerce and Industry, the
Andhra Pradesh Chambers of Commerce
As far as the Company’s operations are
& Industry Federation, Indian Wind Power
concerned there are no potential environmental
Association, Compound Livestock Feed
risks.
Manufacturers Association of India and
4. Does the company have any project related to Federation of Indian Export Organization.
Clean Development Mechanism?
2.
Have you advocated/lobbied through
Company does not have project related to above associations for the advancement or
Clean Development Mechanism. improvement of public good? Yes/ No; if yes
specify the broad areas (drop box: Governance
5. Has the company undertaken any other and Administration, Economic Reforms,
initiatives on – clean technology, energy Inclusive Development Policies, Energy
efficiency, renewable energy etc.Y/N. security, Water, Food Security, Sustainable
Business Principles, Others)
Company enhanced the Solar Energy capacity
from 10KW to 30 KW at Gujarat Plant. Sustainable Business Principles: lobbied with
MPEDA for effective monitoring mechanism
Installing New IE3/IE4 high efficient motors
for stopping usage of antibiotics in shrimp
for energy conservation.
culture and to check the menace of illegal
Replaced all Traditional Lights with LED Lights. hatcheries.

6. Are the Emissions/Waste generated by the Company lobbying along with associations for
company within the permissible limits given continuous power supply to farmers at rates
by CPCB/SPCB for the financial year being applicable to agricultural sector with State and
reported? Central Governments.

AVANTI FEEDS LIMITED 65

 Principle 8 f. Company spent `11.27 Lakhs towards relief
1. Does the company have specified programmes material distributed to Titli cyclone affected
/initiatives/projects in pursuit of the policy people in Mr.kakulam District.
related to Principle 8? g. Company spent `24.35 Lakhs for
construction of sheds for farmers whose
Company promotes girl child education and
infrastructure washed out in Ghaja Cyclone
women education as it believes education will
in Tamilnadu.
empower women.
h. Company has given contribution of `25
2. Are the programmes/ projects undertaken Lakhs to Sowbhagya durga old age home
through in-house team/own foundation/ to take care of inmates who are old and
external NGO/government structures/any deserved.
other organization?
i. Company has given Donation of `100 Lakhs
Some of the projects are implemented to National Defence Fund & Chief Minister’s
through its educational trust AVR Trust and Relief Fund.
some are implemented through in house team 5. Have you taken steps to ensure that this
by supporting the educational institutes under community development initiative is
CSR programme. successfully adopted by the community?

3. Have you done any impact assessment of your The above stated community activities are
initiative? taken after discussion with the village elders
and residents and are utilized extensively by
Yes, the projects have been analyzed informally
the communities.
for their impact on the target beneficiary.
Principle 9
4. What is your company’s direct contribution to
community development projects- Amount in 1. What percentage of customer complaints/
INR and the details of the projects undertaken. consumer cases are pending as on the end of
financial year.
a. Company contributed `150 Lakhs to ABN
The Company has a robust system to track
& PRR College for construction of a new
customer feed back by an on field technical
block to cater to the increasing student
audit team “Technical After Sales Service”.
strength.
During the year Company received 106
Company also spent `22.70 Lakhs
b. customer complaints, out which none are
towards merit scholarships to students, pending for resolution as at the year end.
class room construction and providing 2. Does the Company display product information
computer at high school, providing on the product label, over and above what
education to disadvantaged girl children is mandated as per local laws? Yes/No/N.A./
from marginalized and economically poor Remarks (additional information)
families, providing desks for student of ZPH
school, Medical and health activities. The Company has displayed all the mandatory
information on the product labels as per the
c. Company contributed `141.47 Lakhs local laws. Over and above the same the
towards eradicating hunger, poverty and product labels are designed to make customers
mainutrition and providing health care. aware of the feed requirement of the shrimps
at different stages of cultivation and storage
d. Company contributed `11.65 Lakhs towards
practices to be adopted for greater efficacy of
environmental sustainability.
the feed.
e. Company spent `10.36 Lakhs for promoting 3. Is there any case filed by any stakeholder
the sports. against the company regarding unfair trade

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practices, irresponsible advertising and/ or 4. Did your company carry out any consumer
anti-competitive behavior during the last five survey/ consumer satisfaction trends?
years and pending as on end of financial year.
Every year at the end of shrimp crop season,
There are no cases filed by any stakeholder customer satisfaction survey is conducted
against the company regarding unfair trade in many of the key market areas and steps
practices, irresponsible advertising and/ or are taken to improve the quality of feed and
anti-competitive behavior during the last five technical services based on the findings of
years and pending as at the end of financial these surveys.
year 2018-19.

AVANTI FEEDS LIMITED 67

 REPORT ON CORPORATE
GOVERNANCE
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, a Report on
Corporate Governance is given below:

1. Company’s Philosophy on Code of The functions, responsibility, role and

Governance: accountability of the Board are well defined.
The detailed reports of the Company
The Company believes that good Corporate activities and performances are periodically
Governance is an intrinsic part of its fiduciary placed before the Board for effective
responsibility as a responsible corporate decision making.
citizen. Corporate Governance is about
commitment to values and ethical business The day-to-day management of the
conduct. The Company’s philosophy Company is conducted by the Chairman &
on Corporate Governance envisages Managing Director and the Joint Managing
achievement of highest level of transparency, Director, subject to the overall supervision
accountability and equity, in all facets of its and control of the Board of Directors.
operations, and in all its interactions with
2.01 The names and categories of the Directors
its stakeholders, including shareholders,
on the Board, their attendance at Board
lenders and the Government. Timely and
Meetings held during the year and at the
accurate disclosure of information regarding
last Annual General Meeting (AGM) and the
the financial performance, ownership
number of Directorships and Committee
and governance of the Company is an
Chairmanships/Memberships held by
important part of Corporate Governance.
them in other public limited companies as
The Company’s Board extends its fiduciary
on March 31, 2019 are given below. Other
responsibilities in the widest sense of the term
directorships do not include directorships
and also endeavors to enhance long term
of private limited companies, foreign
shareholder value by serving and protecting
companies and companies under Sec. 8 of
the interests of all the stakeholders.
the Act. For the purpose of determination of
2. Board of Directors: limit of the Board Committees, chairmanship
and membership of the Audit Committee
The Company’s policy is to have optimum and Stakeholders’ Relationship Committee
combination of Executive and Non- has been considered as per Regulation 26(1)
Executive Directors, to ensure independent (b) of the Listing Regulations.
functioning of the Board. The Board consists
of both promoters, external and Independent
Directors and include a Woman Director.

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Name of
Number Number Attendance Directorship Number of
Director /
Sl of Board of Board in Last in other Committee positions
Director Category**
No Meetings Meetings AGM on 7th Public held in other Public
Identification
held Attended August 2018 Companies Companies
Number (DIN)
Member Chairman
1 Sri A. Indra Chairman & 5 5 Yes 4 6 3
Kumar, Managing
DIN:00190168 Director -
Promoter
2 Sri C. Joint 5 5 Yes 2 1 -
Ramachandra Managing
Rao, Director,
DIN:00026010 Company
Secretary &
Chief Financial
Officer
3 Sri N. Ram NED 5 4 Yes 1 - -
Prasad
DIN:00145558
4 Mr. Bunluesak NED 5 4 Yes - - -
Sorajjakit
DIN:02822828
5 Mr. Wai Yat Paco NED 5 4 Yes - - -
Lee
DIN:02931372
6 Sri A. V. Achar NED/ID 5 5 Yes 1 - -
DIN:00325886
7 Sri K. NED/ID 5 5 Yes - - -
Ramamohana
Rao
DIN:02384687
8 Sri B.V. Kumar NED/ID 5 5 Yes - - -
DIN:00521139
9 Sri M.S.P. Rao NED/ID 5 5 Yes 3 - -
DIN:00482071
10 Sri N.V.D.S. Raju NED/ID 5 5 Yes - - -
DIN:05183133
11 Smt. K. NEWD/ID 5 5 Yes - - -
Kiranmayee
DIN:07117423
12 Sri J.V. Ramudu NED/ID 2 1 NA - - -
DIN:03055480,
(From 10.11.2018)
13 Sri Solomon ND 5 1 No 6 - -
Arokia Raj IAS
DIN:06802660
Nominee of
A.P.I.D.C –
represented as
Equity Investor,
14 Sri A Venkata NED/AD NA NA NA - - -
Sanjeev (From
07.06.2019)
DIN:07717691

** Executive Director (ED) Non-Executive Director (NED), Non-Executive Women Director (NEWD),
Independent Director (ID), Nominee Director (ND), and Additional Director (AD)

AVANTI FEEDS LIMITED 69

 2.02 Name of other listed entities where Directors of the company are Directors and the category
of Directorship:

Sl No Name Name of the Listed entities Category

1 Sri A. Indra Kumar Nava Bharat Ventures Non – Executive and
Limited Independent Director
2 Sri C. Ramachandra Rao - -
3 Sri N. Ram Prasad - -
4 Mr. Bunluesak Sorajjakit - -
5 Mr. Wai Yat Paco Lee - -
6 Sri A.V.Achar - -
7 Sri K. Ramamohana Rao - -
8 Sri B.V. Kumar - -
9 Sri M S P Rao - -
10 Sri N.V. D.S. Raju - -
11 Smt. K. Kiranmayee - -
12 Sri J.V. Ramudu (from 10.11.2018) - -
13 Sri Solmon Arokia Raj IAS - -
14 Sri A Venkata Sanjeev (from:07.06.2019) - -

2.03 The details of Meetings of Board of Directors held during the financial year 2018-19:

Five (5) Meetings of Board of Directors were held during the year 2018-19. The time gap between
any two Board Meetings did not exceed by more than one hundred and twenty days.

The dates on which the said Board Meetings were held during 2018-19 are as follows:

Sl. No. Date of Board Meeting

1 09.05.2018
2 26.05.2018
3 06.08.2018
4 1 0.1 1 . 2 0 1 8
5 08.02.2019

2.04 Disclosure of relationship between Directors inter-se: Sri N. Ram Prasad, Director is spouse of
Sri A. Indra Kumar’s sister. Sri A Venkata Sanjeev is son of Sri A. Indra Kumar Chairman & Managing
Director. None of the other Directors are related to any other Director on the Board.

2.05 Statement showing number of Equity Shares held by the Non-Executive Directors as on 31.03.2019.

The details of the equity shares held by the Non-Executive Directors as on 31.03.2019 are as under:

Number of equity shares of

Sl No Name of the Non-Executive Director S/Sri
`1/- each held as on 31.03.2019
1 N. Ram Prasad 279701
2 Bunluesak Sorajjakit --
3 Wai Yat Paco Lee --
4 A. V. Achar 3000
5 K. Ramamohana Rao --
6 B.V. Kumar --
7 M.S.P. Rao 440
8 N.V.D.S. Raju --
9 K. Kiranmayee 5550
10 J.V. Ramudu --
11 Solomon Arokia Raj IAS Nominee of APIDC --

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2.06 Sri B.V. Kumar, Sri A.V. Achar, Sri M.S.P. Rao, Sri K. Ramamohana Rao, Sri N.V.D.S. Raju,
Smt K. Kiranmayee and Sri J.V. Ramudu are Non-Executive Independent Directors of the Company.

All Independent Directors possess the requisite qualifications and are very experienced in their own
fields. None of the Directors are members of more than ten committees or Chairman of more than
five committees in public limited companies in which they are Directors. Necessary disclosures have
been obtained from the Directors regarding their Directorship(s) and have been taken on record by
the Board.

The letter(s) of appointment of the above Independent Directors were issued by the Company
after their appointment and the same are disseminated on the website of the Company i.e.
www.avantifeeds.com.

2.07 Criteria of Independence of Independent Directors:

Sri A.V. Achar, Sri B.V. Kumar, Sri M.S.P. Rao, Sri K. Ramamohana Rao, Sri N.V.D.S. Raju, Smt. K.
Kiranmayee and Sri J.V. Ramudu Independent Directors, have furnished a declaration that they
meet the criteria of independence as laid down under Sec. 149(6) of the Companies Act 2013 and
Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In the opinion of the Board, the Independent Directors fulfill conditions laid down under Sec.149(6)
of the Companies Act 2013 and Regulation 16(1)(b) and other applicable Regulations and that they
are independent of the management.

2.08 Continuation of Independent Directors beyond the age of 75 years:

As per Reg.17(1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, with
effect from 01.04.2019, continuation of directorships of any person as Non-Executive Director who
has attained the age of 75 years requires Special Resolution, with requisite majority. The Company
has obtained the approval of the members, by way of Special Resolutions, through Postal Ballot
during January, 2019 for continuation of Directorships of Sri B.V. Kumar [DIN:00521139] and Sri A.V.
Achar [DIN:00325886].

2.09 Familiarization Programme for Independent Directors:

The Company familiarizes the independent Directors of the Company on their roles, rights,
responsibilities in the Company, nature of the industry in which the Company operates, business model
of the Company etc., through various programmes. The details of the familiarization programme
conducted on 30.03.2019 is disseminated on the website of the Company at www.avantifeeds.com.

2.10 A matrix setting out the skills/expertise/competence of the Board of Directors is as under:

Skills/Expertise/Competence of the Directors.

Sl Name of the
Category Administrative
No Director Technical Financial Legal Aquaculture
/HR
Chairman &
Sri A. Indra
1 Managing   
Kumar
Director
Joint Managing
Sri C.
Director,
2 Ramachandra   
Company
Rao
Secretary & CFO
Sri N. Ram Non-Executive
3   
Prasad Director

AVANTI FEEDS LIMITED 71

 Skills/Expertise/Competence of the Directors.
Sl Name of the
Category Administrative
No Director Technical Financial Legal Aquaculture
/HR
Sri Bunluesak Non-Executive
4   
Sorajjakit Director
Sri Wai Yat Non-Executive
5  
Paco Lee Director
Non-Executive
6 Sri A. V. Achar Independent   
Director
Sri K. Non-Executive
7 Ramamohana Independent  
Rao Director
Non-Executive
8 Sri B.V. Kumar Independent   
Director
Non-Executive
9 Sri M. S. P. Rao Independent  
Director
Non-Executive
10 Sri N.V.D.S. Raju Independent   
Director
Non-Executive
Smt. K.
11 Independent 
Kiranmayee
Women Director
Sri J.V. Ramudu Non-Executive
12 (From Independent   
10.11.2018) Director
Sri Solomon
Arokia Raj IAS
Nominee of Nominee
13  
A.P.I.D.C – Director
represented as
Equity Investor
Sri A Venkata
Sanjeev Non-Executive
14 Additional  
(From: Director
07.06.2019)

3. Changes in Directors:

The changes in the Directors during the year under review are disclosed in the Board’s Report.

4. AUDIT COMMITTEE:

4.01 Brief description and terms of reference:

In addition to the matters provided in SEBI (Listing Obligations and Disclosure Requirements)
Regulations 2015 and Sec. 177 of Companies Act, 2013, the Audit Committee reviews reports of the
Internal Auditor, meets Independent Auditors i.e. Tukaram & Company LLP, Chartered Accountants,
Hyderabad as and when required and discuss their findings, suggestions, observations and other
related matters. It also reviews major accounting policies followed by the Company.

4.02 Composition & Attendance at the Meeting:

The composition of the Audit Committee and details of meetings attended by the Members of the

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Audit Committee during the financial year ended 31.03.2019 are as under:

Meetings
Meetings held
Name Category Designation attended during
during the year
the year
Non-Executive
Sri A.V.Achar Chairman 5 5
Independent Director
Non-Executive
Sri K.Ramamohana Rao Member 5 5
Independent Director
Non-Executive
Sri M.S.P.Rao Member 5 5
Independent Director
Non-Executive
Sri B.V.Kumar Member 5 5
Independent Director
Joint Managing
Compliance
Sri C.Ramachandra Rao Director, Company 5 5
Officer
Secretary & CFO

4.03 Details of the Audit Committee Meetings held during the financial year 2018-19:

Five (5) Meetings of the Audit Committee were held during the year 2018-19. The dates on which
the said Meetings were held during 2018-19 are as follows:

Sl.No. Date of Meeting

01 09.05.2018
02 19.05.2018
03 28.07.2018
04 03.11.2018
05 02.02.2019

4.04 General:
The Minutes of the Audit Committee meetings were circulated to the Board, where it was
discussed and taken note. The Audit Committee considered and reviewed the accounts for the
year 2018-19, before it was placed before the Board. The Committee periodically interacts with
the independent auditors, reviews the Company’s financial and risk management policies and
adequacy of internal controls with the management and is responsible for effective supervision
of the financial reporting process and compliance with financial policies.

The Internal Auditor reports directly to the Audit Committee. The Chairman of the Audit
Committee was present at the last Annual General Meeting of the Company held on 7th August
2018.

5. Nomination & Remuneration Committee:

5.01 Brief Description and Terms of Reference of Nomination & Remuneration Committee:

• Formulation of the criteria for determining qualifications, positive attributes and independence
of a Director and recommend to the Board a policy, relating to the remuneration of the
Directors, key managerial personnel and other employees;

• Formulation of criteria for evaluation of Independent Directors and the Board;

• Devising a policy on diversity of Board of Directors;

• Identifying persons who are qualified to become Directors and who may be appointed in
senior management in accordance with the criteria laid down, and recommend to the Board
their appointment and removal.

AVANTI FEEDS LIMITED 73

 5.02 Composition & Attendance at the Meeting:
The composition of the Nomination and Remuneration Committee and details of the Committee
Meetings held on 14.05.2018 and 10.11.2018 are given below:

Sl No. of No. of Meetings

Name Category Designation
meetings held attended
No
Non-Executive Independent
1 Sri B.V. Kumar Chairman 2 2
Director
2 Sri A. Indra Kumar Chairman& Managing Director Member 2 2
Non-Executive Independent
3 Sri A.V. Achar Member 2 2
Director
Non-Executive Independent
4 Sri K. Ramamohana Rao Member 2 2
Director
Joint Managing Director, Compliance
5 Sri C. Ramachandra Rao 2 2
Company Secretary & CFO Officer

5.03 Performance Evaluation Criteria for Directors:

The Nomination and Remuneration Committee at its meeting held on 25.03.2017 decided to
implement internal assessment method of evaluation and formulated criteria for evaluation
of Directors, Committees and Board taking in to account the criteria indicated by SEBI, in its
Guidance Note circulated on 05.01.2017.

6. Evaluation:

6.01 Nomination & Remuneration Committee:

Pursuant to the provisions of the Companies Act, 2013 and of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 the Nomination and Remuneration Committee
evaluated, on 11.05.2019, every Director on the basis of criteria for evaluation of Directors
formulated by it. The evaluation was made on the basis of structured questionnaire taking into
account the indicative criteria prescribed by SEBI in its Guidance Note. The criteria inter alia include
Qualification, experience, knowledge and competency, ability to function as a team, availability
and attendance etc. The Members of the Committee evaluated all the individual Directors. The
Director being evaluated did not participate in the evaluation process.

6.02 Separate Meeting of Independent Directors:

A separate Meeting of the Independent Directors without the attendance of Non-Independent

Directors and members of the management, was held on 11.05.2019. The Independent Directors
(a) reviewed the performance of the Non-Independent Directors and Board, (b) reviewed the
performance of the Chairperson of the Company and (c) assessed the quality, quantity and
timeliness of flow of information between the Company management and the Board.

The evaluation was made on the basis of structured questionnaire taking into account the
indicative criteria prescribed by SEBI in its Guidance Note. The criteria inter alia include
Qualification, experience, knowledge and competency, ability to function as a team, availability
and attendance etc. The Independent Directors evaluated the performance of non-Independent
Directors, Chairman and the Board.

6.03 Evaluation by Board:

The Board has carried out the annual performance evaluation of its own performance, the
Directors individually as well as the evaluation of the working of its Committees. The evaluation

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was made on the basis of structured questionnaire taking into account the indicative criteria
prescribed by SEBI in its Guidance Note. The criteria inter alia include Qualification, experience,
knowledge and competency, ability to function as a team, availability and attendance etc.

6.04 The Feedback on the evaluation was given by the Chairman and Managing Director/Chairman of
the Committee to each Director and the Committee concerned.

7. REMUNERATION OF DIRECTORS:

7.01 Criteria for making payments to Non-Executive Directors:

The Company has laid down the criteria for making payments to the Non-Executive Directors.
The details of such criteria are available in the Nomination &Remuneration Policy disseminated on
website of the Company at www.avantifeeds.com.

7.02 Non-Executive Directors’ Compensation & disclosures:

The Non-Executive Directors are entitled for (i) a Sitting fee of `40,000/- (Rupees Forty thousand
only) and (ii) reimbursement of travel and hotel accommodation and other expenses incurred by
them, for attending Board/Committee Meetings. Pursuant to Reg.34(3) and Sch. V of the SEBI
(LODR) Regulations, 2015 the details of the remuneration paid to Chairman & Managing Director,
Joint Managing Director, Company Secretary & CFO and Non-Executive Directors (including
Independent Directors) are indicated in the Extract of MGT-9 enclosed to the Board’s Report.

7.03 Nomination & Remuneration Policy & Policy on Board Diversity:

The Remuneration policy of the Company is performance driven and is structured to motivate
employees, recognize their merits and achievements and promote excellence in their performance.
The Nomination and Remuneration Policy of the Company is disseminated on the website of
the Company at www.avantifeeds.com. The Policy on Board diversity of the Company was
reviewed by the Nomination and Remuneration Committee and disseminated on the website of
the Company at www.avantifeeds.com.

7.04 The remuneration paid/payable to the Managing Director, Joint Managing Director, Company
Secretary & CFO of the Company for the year ended 31.03.2019 is as under :
(Din Lakhs)
Stock option with
All elements of
Fixed Component Service details, if any, and
remuneration
and performance Contact whether issued at
package i.e.,
Name and linked incentives Notice discount as well
salary benefits,
Designation along with the Period and as the period over
pension,
performance Severance which accrued
Commission on
criteria Fees and over which
profits etc.
exercisable
Sri A. Indra Kumar
Chairman &
1678.31 - - -
Managing Director

Sri C. Ramachandra
Rao
Joint Managing
1208.90 - - -
Director, Companay
Secretary and CFO

AVANTI FEEDS LIMITED 75

 8. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:

8.01 Composition:

Sl.
No.
Name Designation Chairman/ Members
1 Sri A. Indra Kumar Chairman & Managing Director Chairman
Member & Compliance
2 Sri C. Ramachandra Rao Joint Managing Director, Company Secretary & CFO
Officer
3 Sri N. Ram Prasad Non-Executive Non-Independent Director Member
4 Sri A.V. Achar Non-Executive Independent Director Member
5 Sri B.V. Kumar Non-Executive Independent Director Member
6. Smt. K Kiranmayee Non-Executive Independent Director Member

8.02 Terms of Reference:

The Committee is primarily responsible for formulating and recommending to the Board of
Directors a Corporate Social Responsibility (CSR) Policy and monitoring the same from time to
time, amount of expenditure to be incurred on the activities pertaining to CSR and monitoring
CSR activities.

8.03 CSR Policy:

The Company’s CSR Policy is disseminated at www.avantifeeds.com.

During the year under review, one (1) meeting of the Corporate Social Responsibility Committee
was held on 11.03.2019. The detailed report on CSR activities along with the reasons for not
spending the balance CSR expenditure is disclosed in the Annexure to the Board’s Report.

9. STAKEHOLDERS RELATIONSHIP COMMITTEE:

9.01 Composition:

The Stakeholders Relationship Committee was constituted with Sri N. Ram Prasad (Non-Executive
Director) as the Chairman and Sri K. Ramamohana Rao (Non-Executive Independent Director)
and Sri A.V.Achar (Non-Executive Independent Director) as members. All the three members of
the Committee are Non-Executive Directors. Sri C. Ramachandra Rao, Joint Managing Director,
Company Secretary and CFO, is the Compliance Officer.

9.02 Terms of Reference:

The Committee considers and resolves the grievances of shareholders, including the complaints
related to transfer/transmission of shares, non-receipt of Balance Sheet and non-receipt of
declared dividends.

9.03 Details of shareholders’ requests/complaints received and resolved during the year ended
31.03.2019 are as under:

a. No. of requests/complaints Received : 295

b. No. of requests/complaints Resolved: : 295
c. No. of requests/complaints : NIL
not solved to the satisfaction of the Shareholders.
d. No. of pending requests/complaints : NIL

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10. General Body Meetings:

10.01 The details of location and time of the last three Annual General Meetings held are as follows:

Year Location Date Time

Vedika Hall, Hotel Daspalla, Jagdamba Junction,
2017-18 07.08.2018 11.00 A.M.
Visakhapatnam – 530 020, Andhra Pradesh.
Vedika Hall, Hotel Daspalla, Jagdamba Junction,
2016-17 12.08.2017 11.00 AM
Visakhapatnam – 530 020, Andhra Pradesh.
Vedika Hall, Hotel Daspalla, Jagdamba Junction,
2015-16 13.08.2016 11.00 A.M.
Visakhapatnam – 530 020, Andhra Pradesh.

10.02 Extraordinary General Meeting:

The details of the Extraordinary General Meeting held on 14.06.2018 to approve (i)Sub-division of
nominal value of the equity share from `2/- each to `1/- each (ii) Alteration of Capital Clause of
Memorandum of Association, (iii) Alteration of Article 4 of Articles of association and (iv) issue
of Bonus equity shares in the ratio of 1:2 (i.e. One equity share of `1/- each for every Two equity
shares of `2/- each), are as under:

Type of General Meeting Location Date Time

Extraordinary General Vedika Hall, Hotel Daspalla, Jagdamba Junction,
14.06.2018 11.30 A.M.
Meeting Visakhapatnam – 530 020, Andhra Pradesh.

10.03 Details of the Special Resolutions passed with requisite majority, in the previous three Annual
General Meetings/Extraordinary General Meetings are as under:
Sl Date of the
AGM/EGM Details of Special Resolutions passed
No Meeting
(a) Sub-Division of equity shares of the Company from `2/- each to `1/- each,
(b) Alteration of Capital Clause of Articles of Association, (c) issue of Bonus
1 EGM 14.06.2018 equity shares of `1/- each in the ratio of 1:2 i.e. One Bonus equity share of
`1/- each for every Two equity shares of `1/- each as on the Record date
i.e.27.06.2018.
2 AGM 07.08.2018 NIL
Appointment of Sri C. Ramachandra Rao, as Joint Managing Director,
3 AGM 12.08.2017
Company Secretary & CFO for a further period of 5 years.
Appointment of Sri A Indra Kumar as Chairman & Managing Director for a
4 AGM 13.08.2016
further period of 5 years.
11. Postal Ballot Resolutions:
11.01 Details of Postal Ballot Resolutions passed during the year 2018-19.
During the year, the Company has successfully completed the Postal Ballot process to seek the
approval of the members for the following Special Business:

Resolution Location Type of

Description
No. Resolution
To continue the appointment of Sri B V Kumar, Independent Director, beyond
1. Special
the age of 75 years, for the remaining period of his term.
To continue the appointment of Sri A V Achar, Independent Director, beyond
2. Special
the age of 75 years, for the remaining period of his term.

The Company had appointed Sri V.Bhaskara Rao, Practicing Company Secretary, Hyderabad as
Scrutinizer for conducting the process of Postal Ballot in a fair and transparent manner. M/s Karvy
Fintech Private Limited was engaged to provide remote e-Voting platform for the Resolutions
proposed in the Postal Ballot Notice dated 10.11.2018. The voting through Postal Ballot (including
remote e-voting) commenced on 11.12.2018 at 09.00 A. M. and ended on 10.01.2019 at 05.00
P. M. The Scrutinizer submitted his Combined Report on remote e-voting and Postal Ballot on
11.01.2019 to the Company and the same was accepted. As per the Report, the following Results
were announced by the Chairman & Managing Director:

AVANTI FEEDS LIMITED 77

 Resolution No.1:
Special Resolution to continue the appointment of Sri B V Kumar, Independent Director for the
remaining period of his term:

“RESOLVED that pursuant to the provisions of Regulation 17(1A) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations 2015, as amended and other applicable provisions
if any, consent of the members of the Company be and is hereby accorded for continuation
of Directorship of Sri Bolloju Vasanth Kumar (DIN:00521139), as an Independent Director, for
remaining tenure of his present term i.e. till 01.08.2019 or conclusion of the 26th Annual General
Meeting of the Company whichever is earlier.”

The details of the Postal Ballot Voting in respect of the above Resolution (Item No.1) are as under:

(i) Voted in favour of the Resolution:

% of total number of valid

Particulars Number of members voted Number of votes cast by them
votes cast
Remote E-voting 149 4788850 4.84
Ballot 42 93797513 94.68
Total 191 98586363 99.52

(ii) Voted against the Resolution:

% of total number of valid

Particulars Number of members voted Number of votes
votes cast
Remote E-voting 18 478459 0.48
Ballot 0 0 0.00
Total 18 478459 0.48

(iii) Abstained votes:

Particulars Number of members voted Number of votes cast by them
Remote E-voting 3 115
Ballot 0 0
Total 3 115

Resolution
required: SPECIAL - To continue the appointment of Sri B.V. Kumar, Independent Director for the remaining period of
(Ordinary/ his term.
Special)
Whether promoter/ promoter group are interested in the agenda/resolution? No
% of Votes % of Votes
% of Votes
Polled on No. of No. of in favour
No. of No. of votes against on
Mode of outstanding Votes – in Votes – on votes
Category shares held polled votes polled
Voting shares favour against polled
(1) (2) (7)=[(5)/
(3)=[(2)/ (4) (5) (6)=[(4)/
(2)]*100
(1)]* 100 (2)]*100
Promoter E-Voting 59623349 0 0.0000 0 0 0.0000 0.0000
and Poll 59623349 0 0.0000 0 0 0.0000 0.0000
Promoter Postal Ballot
Group 59623349 59509349 99.8088 59509349 0 100.0000 0.0000
(if applicable)
E-Voting 24619220 5251608 21.3313 4773479 478129 90.8955 9.1044
Public- Poll 24619220 0 0.0000 0 0 0.0000 0.0000
Institutions Postal Ballot
24619220 12654849 51.4023 12654849 0 100.0000 0.0000
(if applicable)
E-Voting 52003061 15701 0.0302 15371 330 97.8982 2.1017
Public- Non
Poll 52003061 0 0.0000 0 0 0.0000 0.0000
Institutions
52003061 21633315 41.6001 21633315 0 100.0000 0.0000
Total 136245630 99064822 72.7105 98586363 478459 99.5170 0.4830
Accordingly, the Resolution was passed with requisite majority.

78 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Resolution No.2:
Special Resolution to continue the appointment of Sri A V Achar, Independent Director for the
remaining period of the term.
“RESOLVED that pursuant to the provisions of Regulation 17(1A) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations 2015, as amended and other applicable provisions
if any, consent of the members of the Company be and is hereby accorded for continuation
of Directorship of Sri Alevoor Vedavyas Achar (DIN:00325886), as an Independent Director for
remaining tenure of his present term i.e. till 01.08.2019 or conclusion of the 26th Annual General
Meeting of the Company whichever is earlier.”

The details of the Postal Ballot Voting in respect of the above Resolution (Item No.2) are as under:
(i) Voted in favour of the Resolution:
% of total number of valid
Particulars Number of members voted Number of votes cast by them
votes cast
Remote E-voting 151 4788614 4.84
Ballot 41 93794513 94.68
Total 192 98583127 99.52

(ii) Voted against the Resolution:

% of total number of valid

Particulars Number of members voted Number of votes
votes cast
Remote E-voting 16 478695 0.48
Ballot 0 0 0.00
Total 16 478695 0.48

(iii) Abstained votes:

Particulars Number of members voted Number of votes cast by them
Remote E-voting 3 115
Ballot 1 3000
Total 4 3115

Resolution
required: SPECIAL - To continue the appointment of Sri A.V. Achar, Independent Director for the remaining period of
(Ordinary/ the term.
Special)
Whether promoter/ promoter group are interested in the agenda/resolution? No
% of Votes % of Votes
% of Votes
Polled on No. of No. of in favour
No. of No. of votes against on
Mode of outstanding Votes – in Votes – on votes
Category shares held polled votes polled
Voting shares favour against polled
(1) (2) (7)=[(5)/
(3)=[(2)/ (4) (5) (6)=[(4)/
(2)]*100
(1)]* 100 (2)]*100
Promoter E-Voting 59623349 0 0.0000 0 0 0.0000 0.0000
and Poll 59623349 0 0.0000 0 0 0.0000 0.0000
Promoter Postal Ballot
Group 59623349 59509349 99.8088 59509349 0 100.0000 0.0000
(if applicable)
E-Voting 24619220 5251608 21.3313 4773479 478129 90.8955 9.1044
Public- Poll 24619220 0 0.0000 0 0 0.0000 0.0000
Institutions Postal Ballot
24619220 12654849 51.4023 12654849 0 100.0000 0.0000
(if applicable)
E-Voting 52003061 15701 0.0302 15135 566 96.3951 3.6048
Public- Non Poll 52003061 0 0.0000 0 0 0.0000 0.0000
Institutions Postal Ballot
52003061 21630315 41.5943 21630315 0 100.0000 0.0000
(if applicable)
Total 136245630 99061822 72.7083 98583127 478695 99.5168 0.4832
Accordingly, the Resolution was passed with requisite majority.

AVANTI FEEDS LIMITED 79

 The Results of the Postal Ballot were announced by the Chairman & Managing Director on
11.01.2019 at the Registered Office.

12. Means of Communication:

Sl No Description Remarks
The quarterly and half-yearly unaudited/audited financial results are
1 Quarterly results informed to Bombay Stock Exchange and National Stock Exchange as
prescribed under SEBI(LODR) Regulations.
Newspapers wherein
2 results are normally Financial Express (in English) and Andhra Prabha (in Telugu).
published
Website where the
3 www. avantifeeds.com
results are displayed
Whether the website
4 also display official news Yes.
releases
Presentations made to
5 institutional investors or Yes.
to analysts.

13. General Shareholders’ Information:

Sl. Description Remarks

Annual General Meeting Friday, the 9th Augsut, 2019 at 11.00 A.M. at Vedika Hall, Hotel Daspalla,
(i)
Date, Time and Venue Jagadamba Junciton, Visakhpatnam-530020, Andhra Pradesh.

(ii) Financial Year 2018-19

Board of Directors has recommended a dividend of `4/-Per Equity share

of Re1/- each fully paid, for the financial year 2018-19. On approval of
(iii ) Dividend payment date:
the shareholders, the dividend warrants will be dispatched on or before
31.08.2019.

(iv) Dates of book closure 01.08.2019 to 09.08.2019 (Both days inclusive).

(v) Name and address of The Company’s Shares are listed on Bombay Stock Exchange and National
Stock Exchange(s) at Stock Exchanges The Address of these Exchanges is as under:
which the equity shares 1. BSE Limited,
are listed and confirmation
about payment of annual Phiroze Jeejeebhoy Towers
listing fee to each of such Dalal Street, Mumbai – 400 001.
Stock Exchanges. 2. National Stock Exchange of India Limited
Exchange Plaza, Bandra Kurla Complex
Bandra (East), Mumbai-400 051
The Company has duly paid the Listing fees for the year 2019-20 to BSE
Limited (Bombay Stock Exchange) and National Stock Exchange where the
shares of the Company are Listed.

(vi) Stock Code: BSE : 512573

NSE : AVANTIFEED
NSDL/CSDL ISIN No. : INE871C01038

(vii) Whether the securities are

The equity shares of the Company were not suspended at any point of time
suspended from trading
during the year 2018-19 and 2019-20 (till the date of this Report).
during the year 2018-19

(viii) Financial Calendar • First Quarter Results – By 15th August, 2019

for the year 2019-20 • Second Quarter / Half Year Results – By 15th November, 2019
(tentative) • Third Quarter / Nine Months Results – By 15th February, 2020
• Fourth Quarter / Year end Results – By 30th May, 2020

80 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

14. Market Price Data*

(i) The Market price details month wise (from 01.04.2018 to 31.03.2019) movement of equity
shares of `1/- each fully paid at Bombay Stock Exchange are as under: (in D)
Month & Year Open Price High Price Low Price Close Price
Apr-18 2249 2525 2148 2486
May-18 2510 2511 1546 1627
Jun-18 1610 1980 536 539
Jul-18 539 541 390 484
Aug-18 489 547 388 422
Sep-18 423 495 350 388
Oct-18 390 444 354 398
Nov-18 403 451 333 340
Dec-18 345 419 339 386
Jan-19 386 399 306 357
Feb-19 362 377 312 333
Mar-19 339 487 337 408
Performance comparison to BSE Sensex.*
Sl. No Name of the month and year BSE Sensex Avanti Feeds Market Price – Closing (`)
1 Apr-18 35160 2486
2 May-18 35322 1627
3 Jun-18** 35423 539
4 Jul-18 37607 484
5 Aug-18 38645 422
6 Sep-18 36227 388
7 Oct-18 34442 398
8 Nov-18 36194 340
9 Dec-18 36068 386
10 Jan-19 36257 357
11 Feb-19 35867 333
12 Mar-19 38673 408
* One equity share of `2/- each is subdivided into Two equity shares of `1/- each with the approval
of the members w.e.f. on 14.06.2018
**25.06.2018- BSE Sensex: 35470 & AFL: 1565

AVANTI FEEDS LIMITED 81

 Price Movement Graph(BSE)

April to June 25, (Equity share of `2/-each)

June 26th 2018 to 31st March 2019 (Equity shares of `1/- each)

82 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

(ii) The Market price details month wise (from 01.04.2018 to 31.03.2019) movement of equity shares
of `1/- each fully paid at National Stock Exchange are as under: (in D)

Month & Year Open Price High Price Low Price Close Price
Apr-18 2235 2525 2146 2483
May-18 2520 2520 1545 1633
Jun-18 1610 1980 535 538
Jul-18 542 543 390 484
Aug-18 487 547 417 422
Sep-18 423 494 383 387
Oct-18 389 444 355 399
Nov-18 401 452 334 342
Dec-18 344 419 338 386
Jan-19 386 391 306 357
Feb-19 360 377 312 335
Mar-19 335 488 335 409
Performance comparison to NSE Nifty.*

Sl. NoName of the NIFTY 50 Avanti Feeds

month and year Market Price – Closing(`)
1 Apr-18 10739 2483
2 May-18 10736 1633
3 Jun-18** 10762 536
4 Jul-18 11357 456
5 Aug-18 11681 421
6 Sep-18 10930 383
7 Oct-18 10387 390
8 Nov-18 10877 334
9 Dec-18 10863 384
10 Jan-19 10831 315
11 Feb-19 10793 330
12 Mar-19 11624 407
* One equity share of `2/- each is subdivided into Two equity shares of `1/- each with the approval
of the members on 14.06.2018

**25.06.2018- NSE Nifty: 10762 & AFL: 1563

AVANTI FEEDS LIMITED 83

 Price Movement Graph(NSE)

April to June 25, (Equity share of `2/-each)

June 26th 2018 to 31st March 2019 (Equity shares of `1/- each

12000 600

500
11500

400
11000
300
NIFTY 50
10500
200 AFL (LHS)
10000 100

9500 0
18

18

18

18

18

9
l-1

t-1

-1

-1
n-

g-

p-

v-

c-

n-
Ju

Oc

ar
De
No
Ju

Ja
Au

Se

Fe

84 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

15. Registrars and Transfer Agents: Depository. This was communicated to the
members who hold the shares in physical form
During the year, pursuant to the order of
vide our letters dated 05.09.2018, 16.11.2018 and
the National Company Law Tribunal, the
30.11.2018. The shareholders need to convert
operations of our Registrars and Transfer
the shares to demat form compulsorily, if
Agents i.e. Karvy Computershare Private
they wish to effect any transfer. However, the
Limited (KCPL) have been transferred to
restriction is not applicable to the requests
Karvy Fintech Private Limited (KFPL) w.e.f.
received for transmission or transposition of
07.11.2018. Pursuant to the NCLT order, all the
physical shares. All the shareholders, who
existing arrangemnts which KCPL is a party
(including the agreements entred by our hold the shares in physical form are requested
Company) shall be in full force and vest with to dematerialize the shares at the earliest to
Karvy Fintech Private Limited. The address of avoid inconvenience in future, for transferring
Karvy Finteh Private Limited, Registrars and the shares.
transfer Agents of the Company is as under:
17. SCORES:
Karvy Fintech Private Limited
SEBI vide Circular No. CIR/OIAE/2/2011
Karvy Selenium Tower B, Plot No.31-32,
Gachibowli Financial District, Nanakramguda, dt.03.06.2011 informed the Company that
Hyderabad: 500 032. they had commenced processing of investor
Phone: 040-67162222 Fax No.040-23001153 complaints in a web based complaints,
Email Id: einward.ris@karvy.com redressal system, “SCORES”. Under this system,
Website: www.karvyfintech.com all complaints pertaining to companies are
electronically sent through SCORES and the
16. Share Transfer System:
Companies are required to view the complaints
All transfers received are electronically pending against them and submit Action
processed and approved by the Share Transfer Taken Report (ATRs) along with supporting
Committee which normally meets once in documents electronically in SCORES.
a fortnight or more depending upon the
volume of transfers. The summary of transfers, All the requests and complaints under SCORES
transmissions etc., are placed before every are passed directly to Registrars and Transfer
Board Meeting and Stakeholders Relationship Agents of the Company i.e. Karvy Fintech
Committee Meeting. The Company obtains Private Limited, Gachibowli, Hyderabad. For
from Sri V. Bhaskara Rao, Practicing Company any clarification/complaint, shareholders may
Secretary, Hyderabad half-yearly Certificate contact:
of Compliance with share transfer formalities
as required under Regulation 40(9) of the Name : Mr. Rajeev Kumar
SEBI (Listing Obligations and Disclosure
Requirements) Regulations, and files a copy
Designation : Manager, Karvy Fintech
of the said Certificate with Bombay Stock
Private Limited
Exchange and National Stock Exchange.

As per recently amended SEBI (Listing Email id : scores@karvy.com

Obligations and Disclosure Requirements)
Regulations requests for effecting transfer Tele. No. : 040-67161524
of equity shares in physical form shall not be
accepted by Karvy Fintech Private Limited, 18. DISTRIBUTION SCHEDULE AS ON 31.03.2019:
Registrars and Transfer Agents/Company,
w.e.f. 01.04.2019 unless the equity shares The details of Distribution Schedule as on
are held in the dematerialized form with a 31.03.2019 are as under:

AVANTI FEEDS LIMITED 85

 Sl. Category (Equity No. of Holders % To Holders No. of Shares % To Equity
No. shares of D1/- each)
1 1 - 500 84899 91.96 6892481 5.06
2 501 - 1000 3260 3.53 2345868 1.72
3 1001 - 2000 2169 2.35 3112406 2.28
4 2001 - 3000 817 0.88 2201130 1.62
5 3001 - 4000 239 0.26 842544 0.62
6 4001 - 5000 237 0.26 1074197 0.79
7 5001 - 10000 316 0.34 2244577 1.65
8 10001 - 20000 191 0.21 2628207 1.93
9 20001 and above 198 0.21 114904220 84.34
TOTAL: 92326 100 136245630 100

19. DEMATERAILISATION OF SHARES:

The details of dematerialization of shares as on 31.03.2019 is as under:

Sl. No. Description No of Holders Shares % To Equity

1 PHYSICAL 515 16,91,856 1.24
2 NSDL 44799 12,53,49,783 92.00
3 CDSL 47012 9203991 6.76
Total: 92326 13,62,45,630 100.00

The Company has entered into a tripartite agreements with NSDL and CDSL to establish electronic
connectivity through Company’s Electronic Registrar i.e. Karvy Fintech Private Limited, Hyderabad
and facilitate scrip less trading. Trading in the equity shares of the Company is compulsory in
dematerialized form for all investors. Investors are therefore advised to open a demat account with
the Depositary participant of their choice, if not already done, to trade in demat form. The list of
depositary participants is available with NSDL and CDSL. The ISIN allotted Company’s scrip after
sub-division and issue of Bonus equity shares is INE871C01038.

20. Reconciliation of Share Capital and Dematerialization of Shares:

A quarterly audit was conducted by Sri V. Bhaskara Rao, Practicing Company Secretary, Hyderabad
reconciling the issued and listed capital of the Company with the aggregate of the number of shares
held by Investors in physical form and in the depositories and the said certificates were submitted
to the stock exchanges within the prescribed time limit. As on 31.03.2019, there was no difference
between the issued and listed capital and the aggregate of shares held by investors in both physical
form and in electronic form with the depositories. 13,45,53,774 equity shares of `1/- (Rupees One
only) representing 98.76% (Previous year 44516080 equity shares of `2/- each representing 98.02%)
of the paid-up equity capital of the Company have been dematerialized as on 31.03.2019. Pursuant
to Reg.40(9) of SEBI(LODR) Regulations, 2015, certificates have been issued on a half-yearly basis
by Sri V. Bhaskara Rao, Practicing Company Secretary certifying due compliance of share transfer
formalities by the Company and the Certificates filed with the Bombay Stock Exchange and National
Stock Exchange.

21. Outstanding GDRs or ADRs or warrants or convertible instruments:

There were no outstanding Global Depository Receipts or American Depository Receipts or Warrants
or any convertible instruments during the year 2018-19.

86 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

22. Commodity Price Risk or Foreign Exchange Shrimp Feed Plant - V

Risk and hedging activities: Block No.498/1 & 501, Pardi-Nashik Road,
Balda Village, Pardi Taluk, Valsad Dist.,
The major raw materials for shrimp feed
Gujarat – 396 125.
manufacturing are fish meal, soya DOC (De-
oiled Cake) and wheat flour. Company has a
Wheat Flour Plant
policy of planning for raw material requirement
H. No.15-11-24, Kovvur – 534 350,
for coming 3 months based on estimated
sales. Accordingly, raw materials like fish meal West Godavari District, Andhra Pradesh.
and soya DOC are procured after considering
the availability of these raw materials as both Wind Mill:
the raw materials are seasonal products. Lakkihalli Village, Hiriyur Taluk,
Wheat Flour having very low shelf life being Chitradurga District., Karnataka State.
perishable is purchased regularly. However, as
a policy Company does not to keep more than 24. Registered Office and Corporate Office:
90 days of stock of any indigenously available
raw materials. This ensures availability of raw During the year under review, the Registered
material for the culture season and ensures Office of the Company was changed from
price stability during negative raw material H.No.37, Plot No.37, Baymount, Rushikonda,
price movements. Visakhapatnam – 530 045, to Flat No. 103,
Ground Floor, “R” Square, Pandurangapuram,
23.Plant locations: Vishakhapatnam - 530003 with effect from
The Shrimp Feed production Plants at Kovvur, 01.09.2018. The address of the Registered
Vemuluru and Bandapuram West Godavari Office and Corporate office are as under:
District of Andhra Pradesh and Plant at Registered Office:
Valsad, Balda Village, Pardi Tq., Gujarat are ISO Flat No: 103, Ground Floor,
9001:2008 (for Quality Management Systems) “R” Square, Pandurangapuram,
and certified for implementing Best Aqua Vishakhapatnam—530003,
Culture Practices (BAP) by Global Aquaculture Andhra Pradesh, India.
Alliance, USA.

Shrimp Feed Plant – I Corporate Office & address for

H. No.15-11-24, Kovvur – 534 350. correspondence:
West Godavari District. Andhra Pradesh. Avanti Feeds Limited
G-2, Concorde Apartments
Shrimp Feed Plant – II 6-3-658, Somajiguda, Hyderabad – 500 082,
Vemuluru, Kovvur – 534 350. Telangana State, India.
West Godavari District, Andhra Pradesh.

Shrimp Feed Plant – III

H. No.15-11-24, Kovvur – 534 350.
West Godavari District. Andhra Pradesh

Shrimp Feed Plant – IV

Bandapuram Village,
West Godavari District, Andhra Pradesh.

AVANTI FEEDS LIMITED 87

 25. OTHER DISCLOSURES:

Sl
Details Remarks
No.
1 Disclosure on materially NIL
significant Related Party
Transactions.
2 Details of non-compliance by the NIL
listed entity, penalties, strictures
imposed on the company by
Stock Exchange(s) or the SEBI
or any Statutory Authority on
any matter related to Capital
markets during last 3 years.
3 Details of establishment of Vigil
The Company established a mechanism for employees to
Mechanism, Whistle Blower
report concerns about unethical behavior, actual or suspected
Policy and affirmation. fraud or violation of code of conduct or ethics policy and code
of conduct to regulate, monitor and report trading by Insiders.
The mechanism also provides for adequate safeguards against
victimization of employees who avail the mechanism and
also provide for direct access to the Chairman of the Audit
Committee in exceptional cases. The Company affirms that
no personnel has been denied access to the Audit Committee.
The details of the whistle blower policy is disseminated on the
website of the Company at www.avantifeeds.com.
4 Interse relationships between Sri N. Ram Prasad, Director is the spouse of Sri A. Indra
Directors and Key Managerial Kumar’s (Chairman& Managing Director) Sister.
personnel of the Company. Sri A Venkata Sanjeev is the son of Sri A. Indra Kumar,
Chairman & Managing Director.
5 Compliance of SEBI(LODR) a) Mandatory Requirements.
Regulations,2015. It is confirmed that the Company has complied with the
requirements under Regulation 17 to 27 and Reg. 46(2) (b)
to (i) of the SEBI (LODR) Regulations.
b) Non-Mandatory Requirements:
The Company has adopted the following non-mandatory
(i.e. Discretionary) Requirements of Part-E of Schedule-II
of SEBI (LODR) Regulations:
1. Audit Qualifications: The Company is in the regime of
unqualified financial statements.
2. Reporting of Internal Auditor: The Internal Auditor
directly reports to the Audit Committee.
6 Web-link where details of
familiarization programme
www.avantifeeds.com
imparted to Independent
Director’s is disclosed.
7 Web-link where policy
determining the material www.avantifeeds.com
subsidiaries is disclosed.
8 Web-link where policy on dealing
with Related Party Transactions www.avantifeeds.com
is disclosed.
9 Disclosure of commodity price
risks and commodity hedging Nil
activities.

88 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Sl
Details Remarks
No.
10. Web-link where the dividend
distribution policy of the www.avantifeeds.com
Company is disseminated.
11 Disclosure of utilization of funds
raised through preferential
allotment or qualified institutions Not Applicable
placement as specified under
Reg.32(7A)
12 Where the Board had not The Board has accepted the recommendations of all the
accepted any recommendation Committees during the year 2018-19.
of any Committee of the Board
is mandatorily required, in the
relevant financial year, details
and the reasons for such non-
acceptance.
13 Total fee for all services paid M/s Tukaram & Co., LLP are the Independent Auditors only for
by the listed entity and its Avanti Feeds Limited. The remuneration paid to Tukarm & Co
subsidiaries to the Statutory LLP for the company is as under:
Auditor. Audit Fee `20.00 lakhs plus applicable taxes and out of
pocket expenses.
14 Credit Ratings obtained during The company has not mobilized any funds during the year
the year under review for all under review.
debt instruments or any fixed
programme or any scheme or
proposal involving mobilization
of funds whether in India or
abroad.
15 Disclosures in relation to a. No. of complaints filed during the Year 2018-19 .. NIL
Sexual Harassment of Women b. No. of complaints disposed of during the year .. NIL
at Workplace (Prevention,
Prohibition and Redressal) Act 2018-19
2013 c. No. of complaints pending as on 31.03.2019 .. NIL
16 Certificate from a Company Sri V . Bhaskara Rao, Practicing Company Secretary Hyderabad
Secretary in practice that none has issued a Certificate confirming that none of the Directors
of Directors on the Board on the Board of the Company have been debarred or
of the Company have been disqualified from being appointed or continuing as Directors
debarred or disqualified from of the Company by SEBI, Ministry of Corporate Affairs or any
being appointed or continuing such statutory authority.
as Directors of the Company by
the Board/ Ministry of Corporate
Affairs or any such statutory
authority.

26. Disclosure in respect of demat suspense account/unclaimed suspense account as on 31.03.2019.

Aggregate number of shareholders and the outstanding shares in the suspense

a) ... NIL
account lying at the beginning of the year.
Number of shareholders who approached the Company for transfer of shares from
b) ... NIL
suspense account during the year.
Number of shareholders to whom shares were transferred from suspense account
c) ... NIL
during the year.
Aggregate number of shareholders and the outstanding shares in the suspense
d) ... NIL
account lying at the end of the Year.
That voting rights on these shares shall remain frozen till the rightful owner of such
e) ... NIL
shares claims the shares

AVANTI FEEDS LIMITED 89

 27. Risk Management: business exigencies or urgency of maters,
resolutions are passed by circulation.
In terms of the Companies Act 2013 and
SEBI (Listing Obligations and Disclosure 32.02 The minimum information placed before the
Requirements) Regulations 2015, the Board is as per the schedule II (Part-A) of
Company has developed and implemented SEBI (Listing Obligations and Disclosure
a Risk Management Policy. Requirements) Regulations, 2015 and inter
alia include:-
28. Code for prohibition of Insider Trading:
• Quarterly results of the Company and
Pursuant to SEBI (Prohibition of Insider
its operating divisions or business
Trading) Regulations, the Company has
segments.
adopted code of Practices and Procedures
for Fair Disclosure of Unpublished Price • Minutes of the meetings of Audit
Sensitive Information. Further the Company Committee and other Committees of
has also adopted Code of conduct to the Board.
Regulate, Monitor and Report Trading by
• The information on recruitment and
Insiders.
remuneration of senior personnel
29. Disclosure of Accounting Treatment: just below the Board Level, including
appointment of Chief Financial Officer
The Company in the preparation of financial
and the Company Secretary.
statements has followed the treatment
laid down in the Accounting standards • Non-compliance of any regulatory,
prescribed by the Institute of Chartered statutory nature or listing requirements
Accountants of India. There are no audit and shareholders’ services such as delay
qualifications on the Company’s financial in share transfer etc.
statements for the year under review.
• Show cause, demand prosecution
30. Management Discussion and Analysis notices and penalty notices which are
Report: materially important.

The Management Discussion and Analysis • General notice of interest of Directors.

Report is included elsewhere in this Annual • Terms of reference of Board Committees.
Report.
• Any material default in financial
31. Business Responsibility Report: obligations to and by the Company etc.

The Business Responsibility Report in terms 33. Orderly Succession for appointments to
of SEBI (Listing Obligations and Disclosure the Board and to Senior Management:
Requirement) Regulations, 2015 is included
elsewhere in this Annual Report. The Company has laid down an orderly
succession Plan for appointments to the
32. Scheduling and Selection of Agenda Board and to Senior Management.
items for Board Meetings:
34. Compliance Certificate from the
32.01 Minimum four Board Meetings are held in Independent Auditors:
each year, which are pre-scheduled after
the end of each financial quarter. Apart The Compliance certificate from Tukaram
from the pre-scheduled Board Meetings, & Co., LLP, Chartered Accountants,
additional Board Meetings are convened Hyderabad, Independent Auditors of the
by giving appropriate notice to address Company on Compliance of conditions of
specific needs of the Company. In case of Corporate Governance is annexed.

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35. SUBSIDIARY COMPANIES: the policy is disseminated on the website

of the Company at www.avantifeeds.com.
The Company has two unlisted subsidiary
companies viz., Avanti Frozen Foods Pvt. 36. DECLARATION ON CODE OF CONDUCT:
Ltd. (subsidiary company) and SVIMSAN
This is to confirm that the Board has laid
Exports & Imports Pvt. Ltd. (wholly owned
down a Code of Conduct for all Board
subsidiary). Avanti Frozen Foods Pvt. Ltd.,
members and senior management
is a material subsidiary of the Company
personnel of the Company which has
in terms of SEBI (Listing Obligations and
been disseminated on the web site of the
Disclosure Requirements) Regulations,
Company at www.avantifeeds.com. It is
2015.
further confirmed that all Directors and
In terms of Reg.24(1) of SEBI (Listing Senior Management personnel of the
Obligations and Disclosure Requirements) Company have affirmed compliance with
Regulations, 2015 the Company appointed the Code of Conduct of the Company for
Sri K. Ramamohana Rao, Independent the financial year ended on 31.03.2019, as
Director of the Company, as Director on envisaged in Reg.26(3) of SEBI (Listing
the Board of Avanti Frozen Foods Pvt. Ltd., Obligations and Disclosure Requirements)
material subsidiary of the Company. Regulations, 2015.

The minutes of the meetings of the Board

of Directors of Subsidiaries along with a For and on behalf of the Board
report on the significant transactions of the Avanti Feeds Limited
above subsidiaries during the year 2018-
19 are placed before the meetings of the A. Indra Kumar
DIN – 00190168
Board of the Company once in a quarter.
Chairman & Managing Director
The Company has formulated a policy for Place: Hyderabad
determining the material subsidiary and Date : 07.06.2019

AVANTI FEEDS LIMITED 91

 COMPLIANCE CERTIFICATE
MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER CERTIFICATION

We, A. Indra Kumar, Chairman & Managing Director and C. Ramachandra Rao, Joint Managing Director,
Company Secretary and Chief Financial Officer of Avanti Feeds Limited certify that:

a. We have reviewed the financial statements and the cash flow statements for the year and that to the
best of our knowledge and belief:

i. these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;

ii. these statements together present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards, applicable laws and regulations.

b. There are, to the best of our knowledge and belief, no transactions entered into by the Company
during the year which are fraudulent, illegal or violative of Company’s code of conduct.

c. We accept responsibility for establishing and maintaining internal controls for financial reporting
and we have evaluated the effectiveness of the internal control systems of the Company pertaining
to financial reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies
in the design or operation of internal controls, if any, of which we are aware and the steps we have
taken or propose to take to rectify these deficiencies.

d. We have indicated to the auditors and the Audit Committee:

i. Significant changes in internal controls over financial reporting during the year.

ii. Significant changes in accounting policies during the year and that the same have been disclosed
in the notes to the financial statements and

iii. That there have been no instances of significant fraud of which we have become aware, involving
the management or an employee having a significant role in the Company’s internal control
system over financial reporting.

A. Indra Kumar C. Ramachandra Rao

DIN:00190168 DIN:00026010
Chairman & Managing Director Joint Managing Director,
Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Independent Auditor’s Certificate on Corporate Governance

To the Members of
Avanti Feeds Limited

1. We, M/s.TUKARAM & CO. LLP, Chartered Accountants, the Independent Auditors of Avanti Feeds
Limited (“the Company”), have examined the compliance of conditions of Corporate Governance
by the Company, for the year ended on March 31, 2019, as stipulated in regulations 17 to 27 and
clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (”SEBI Listing Regulations”).
Managements’ Responsibility
2. The compliance of conditions of Corporate Governance is the responsibility of the Management.
This responsibility includes the design, implementation and maintenance of internal controls and
procedures to ensure the compliance with the conditions of the Corporate Governance stipulated in
the SEBI Listing Regulations.
Auditors’ Responsibility
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the
Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an
audit nor an expression of opinion on the financial statements of the Company.
4. We have examined the books of account and other relevant records and documents maintained by
the Company for the purpose of providing reasonable assurance on the compliance with Corporate
Governance requirements by the Company.
5. We have carried out an examination of the relevant records of the Company in accordance with
the Guidance Note on Certification of Corporate Governance issued by the Institute of Chartered
Accountants of India ( the ICAI), the Standards on Auditing specified under Sec. 143(10) of the
Companies Act, 2013, in so far as applicable for the purpose of this certificate and as per the
Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires
that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control
(SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services Engagements.
Opinion
7. Based on our examination of the relevant records and according to the information and explanations
provided to us and the representations provided by the Management, we certify that the Company
has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27
and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI Listing
Regulations during the year ended March 31, 2019.
8. We state that such compliance is neither an assurance as to the future viability of the Company nor
of the efficiency or effectiveness with which the Management has conducted the affairs of the
Company.
For TUKARAM & CO. LLP
Chartered Accountants
ICAI Firm Registration No: 004436S

(B. LOKANATH)
Place: Hyderabad PARTNER
Date: 07.06.2019 Membership No. 024927

AVANTI FEEDS LIMITED 93

 Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

SECRETARIAL AUDIT REPORT

To,
The Members of
Avanti Feeds Limited
CIN: L16001AP1993PLC095778
Flat No. 103, Ground Floor,
“R” Square Pandurangapuram
Vishakhapatnam-530003, AP.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by Avanti Feeds Limited (hereinafter called the Company).
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed
and other records maintained by the Company and also the information provided by the Company,
its officers, agents and authorized representatives during the conduct of secretarial audit, We hereby
report that in our opinion, the Company has, during the audit period covering the financial year ended
on 31.03.2019 complied with the statutory provisions listed hereunder and also that the Company has
proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject
to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained
by Avanti Feeds Limited (“the Company”) for the financial year ended on 31.03.2019, according to the
provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to
the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial
Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (‘SEBI Act’): -viz

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;

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b. SEBI (Listing Obligations and Disclosure (i) The Contract Labour (Regulation &
Requirements) Regulations, 2015 Abolition) Act, 1970
amended from time to time:
(j) The Maternity Benefit Act, 1961
c. The Securities and Exchange Board of
(k) The Child Labour (Prohibition &
India (Prohibition of Insider Trading)
Regulation) Act, 1986
Regulations, 2015;
(l) The Industrial Employment (Standing
d. The Securities and Exchange Board of
Order) Act, 1946
India (Issue of Capital and Disclosure
Requirements) Regulations, 2018 (m) The Employee Compensation Act, 1923

e. The Securities and Exchange Board of (n) The Apprentices Act, 1961
India (Employee Stock Option Scheme
(o) Equal Remuneration Act, 1976
and Employee Stock Purchase Scheme)
Guidelines, 1999; Not Applicable (p) The Employment Exchange (Compulsory
Notification of Vacancies) Act, 1956
f. The Securities and Exchange Board
of India (Issue and Listing of Debt (q) Trade Marks Act, 1999
Securities) Regulations, 2008: Not
Applicable (r) Customs Act, 1962

g. The Securities and Exchange Board (s) Shops and Establishment Act, 1988
of India (Registrars to an Issue and (t) The water (Prevention and control of
Share Transfer Agents) Regulations, pollution) Act 1974
1993 regarding the Companies Act and
dealing with client; (u) The Air (Prevention and control of
pollution) Act 1981
h. The Securities and Exchange Board
of India (Delisting of Equity Shares) (v) The Environment Protection Act, 1986 and
Regulations, 2009; Not Applicable and rules made there under

i. The Securities and Exchange Board (w) Explosive Act, 1884

of India (Buyback of Securities)
(x) Indian Boilers Act, 1923
Regulations, 1998; Not Applicable
(y) The Sexual Harassment of Women at
(vi) Other applicable Acts Work Place (Prevention, Prohibition and
Redressal) Act, 2013
(a) Factories Act, 1948
(z) Hazardous Waste (Management and
(b) Industrial Disputes Act, 1947
Handling and transboundary Movement)
(c) The Payment of Wages Act, 1936 Rules, 2008

(d) The Minimum Wages Act, 1948 (aa) Food Safety and Standards Act, 2006

(e) Employee State Insurance Act, 1948 (bb) Biological Diversity Act, 2002

(f) Employees Provident Funds and (cc) The Indian Stamp Act, 1899
Miscellaneous Provisions Act, 1952
(dd) Registration Act, 1908
(g) The Payment of Bonus Act, 1965
(ee) AP Fire Safety Act, 1999 and Rules 2006
(h) The Payment of Gratuity Act, 1972
(ff) Legal Metrology Act 2009

AVANTI FEEDS LIMITED 95

 We have relied on the representations made by monitor and ensure compliance with applicable
the Company, its officers and reports of Internal laws, rules, regulations and guidelines.
Auditors for systems and mechanism framed by
We further report that during the audit period
the Company for compliances under other acts,
the company has taken following major actions
Laws and regulations applicable to the Company
bearing on the company’s affairs in pursuance of
as mentioned above.
above referred acts, rules and regulations etc.:
We have also examined compliance with the
a) Sub-division of nominal value of the equity
applicable clauses of the following:
share from `2/- each to `1/- each after obtaining
(i) Secretarial Standards issued by The Institute necessary approvals from the members in the
of Company Secretaries of India Extraordinary General Meeting held on 14.06.2018.

(ii)
The Listing Agreements entered by the b) Issue of Bonus equity shares in the ratio of 1:2
Company with BSE Ltd and National Stock (i.e. one equity share of `1/- each for every two
Exchange of India Ltd; equity shares held of `2/- each) after obtaining
necessary approvals from the members in the
During the period under review the Company Extraordinary General Meeting held on 14.06.2018.
has complied with the provisions of the Act, The approvals for listing and trading of the Bonus
Rules, Regulations, Guidelines, Standards, etc. equity shares was obtained from Bombay Stock
mentioned above. However, the company has Exchange and National Stock Exchange.
spent an amount of D4.97 Crores against the
amount D7.57 Crores to be spent during the c) The Company obtained its members approval by
year towards Corporate Social Responsibility way of Postal Ballot to continue the appointment
for which an explanation has been provided in of Independent Directors namely Sri B V Kumar
the Board’s Report. and Sri A V Achar, beyond the age 75 years, for
the remaining period of their existing term.
We further report that the Board of Directors
of the Company is duly constituted with proper We further report that, the compliance by the
balance of Executive Directors, Non-Executive Company of applicable financial laws like direct
Directors and Independent Directors. The changes and indirect tax laws and maintenance of financial
in the composition of the Board of Directors that records and books of accounts has not been
took place during the period under review were reviewed in this audit since the same have been
carried out in compliance with the provisions of subject to review by statutory financial audit and
the Act. other designated professionals.

Adequate notice is given to all directors to

schedule the Board Meetings, agenda and detailed
notes on agenda were sent at least seven days V.Bhaskara Rao and Co
in advance, and a system exists for seeking and Company Secretaries
obtaining further information and clarifications
on the agenda items before the meeting and for V.Bhaskara Rao
meaningful participation at the meeting. Proprietor
FCS No.5939, CP No.4182
The decisions at the Board Meetings are carried
out unanimously and there were no members
Place: Hyderabad
dissenting the resolution(s) during the year under
Date: 07.06.2019
review.

We further report that there are adequate systems This Report is to be read with our letter of even
and processes in the Company Commensurate date which is given as Annexure-A and forms an
with the size and operations of the Company to integral part of this report. 

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‘ANNEXURE A’

To,
The Members of
Avanti Feeds Limited
CIN: L16001AP1993PLC095778
Flat No. 103, Ground Floor,
“R” Square Pandurangapuram
Vishakhapatnam-530003, AP.

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. Our
responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable
assurance about the correctness of the contents of the Secretarial records. The verification was
done on test basis to ensure that correct facts are reflected in secretarial records. We believe that
the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts
of the Company.

4. Where ever required, we have obtained the Management representation about the compliance of
laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards
is the responsibility of management. Our examination was limited to the verification of procedures
on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of
the efficacy or effectiveness with which the management has conducted the affairs of the Company.

V.Bhaskara Rao and Co

Company Secretaries

V.Bhaskara Rao
Proprietor
FCS No.5939, CP No.4182

Place: Hyderabad
Date: 07.06.2019

AVANTI FEEDS LIMITED 97

 INDEPENDENT
AUDITORS` REPORT
To the Members of Avanti Feeds Limited
Report on the Standalone Financial Statements

Opinion Basis for Opinion

We have audited the accompanying standalone We conducted our audit of the standalone
financial statements of Avanti Feeds Limited (‘the financial statements in accordance with the
Company’) which comprise the Balance Sheet Standards on Auditing (SAs) specified under
as at 31st March 2019, the Statement of Profit and section 143(10) of the Companies Act, 2013. Our
Loss (including Other Comprehensive Income), responsibilities under those Standards are further
the Statement of Changes in Equity and the described in the Auditor’s Responsibilities for
Statement of Cash Flows for the year ended on the Audit of the standalone Financial Statements
that date and notes to the financial statements, section of our report. We are independent of
including a summary of significant accounting the Company in accordance with the Code
policies and other explanatory information of Ethics issued by the Institute of Chartered
(herein after referred to as “stanalone financial Accountants of India (ICAI) together with the
statements”). ethical requirements that are relevant to our audit
of the standalone financial statements under the
In our opinion and to the best of our information provisions of the Companies Act, 2013 and the
and according to the explanations given to us, the Rules made thereunder, and we have fulfilled our
aforesaid standalone financial statements give the other ethical responsibilities in accordance with
information required by the Companies Act, 2013 these requirements and the ICAI’s Code of Ethics.
(“the Act”) in the manner so required and give a We believe that the audit evidence we have
true and fair view in conformity with the Indian obtained is sufficient and appropriate to provide
Accounting Standards prescribed under section a basis for our audit opinion on the standalone
133 of the Act read with the Companies (Indian financial statements.
Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles Key Audit Matters
generally accepted in India, of the state of affairs Key audit matters are those matters that, in our
of the Company as at 31st March 2019, the profit professional judgment, were of most significance
and total comprehensive income, changes in in our audit of the standalone financial statements
equity and its cash flows for the year ended on of the current period. These matters were
that date. addressed in the context of our audit of the

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standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicated in our report.

S. No Key Audit Matters Auditor’s Response

1 Accuracy of recognition, Principal Audit Procedures
measurement, presentation and We assessed the Company’s process to identify the impact
disclosures of revenues and of adoption of the new revenue accounting standard.
other related balances in view of Our audit approach consisted testing of the design
adoption of Ind AS 115 “Revenue and operating effectiveness of the internal controls and
from Contracts with Customers” substantive testing as follows:
(new revenue accounting
• Evaluated the design of internal controls relating to
standard)
implementation of the new revenue accounting
The application of the new revenue standard.
accounting standard involves
• Selected a sample of continuing and new contracts,
certain key judgements relating
and tested the operating effectiveness of the
to identification of the contract
internal control, relating to identification of the
with a customer, identification
distinct performance obligations and determination
of distinct performance
of transaction price. We carried out a combination
obligations, determination of
of procedures involving enquiry and observation,
transaction price of the identified
reperformance and inspection of evidence in respect
performance obligations, the
of operation of these controls.
appropriateness of the basis used
to measure revenue recognized • Tested the relevant information technology systems’
when a performance obligation access and change management controls relating to
is satisfied. Additionally, new contracts and related information used in recording
revenue accounting standard and disclosing revenue in accordance with the new
contains disclosures which revenue accounting standard.
involves collation of information • Selected a sample of continuing and new contracts
in respect of disaggregated and performed the following procedures:
revenue and periods over which - Read, analyzed and identified the distinct
the remaining performance performance obligations in these contracts.
obligations will be satisfied
- Compared these performance obligations with that
subsequent to the balance sheet
identified and recorded by the Company.
date.
- Considered the terms of the contracts to determine
Refer Notes 2.4c and 21 to the
the transaction price including any variable
Standalone Financial Statements
consideration to verify the transaction price used to
compute revenue and to test the basis of estimation
of the variable consideration.
- Samples in respect of revenue recorded upon
transfer of control of promised products or
services to customers in an amount that reflects
the consideration which the Company expects
to receive in exchange for those products or
services, were tested using a combination of DCs,
Sales orders, weighment slips and non-returnable
gate passes including customer acceptances,
subsequent invoicing and historical trend of
collections and disputes.
- Performed analytical procedures for reasonableness
of revenues disclosed by type and service offerings.
- We reviewed the collation of information and the
logic of the report generated from the IT system
used to prepare the disclosure relating to the
periods over which the remaining performance
obligations will be satisfied subsequent to the
balance sheet date.

AVANTI FEEDS LIMITED 99

 S. No Key Audit Matters Auditor’s Response
2. Availment of Section 80 IA Principal Audit Procedures
benefit under the Income tax We have reviewed the status of the availment of Section
Act, 1961. 80 IA benefit under the Income tax Act, 1961 by the
Refer Note 20 to the Standalone Company for its Windmill division from AY 2012-13
Financial Statements onwards for 10 years as a tax holiday period, which will
end in AY 2021-22.
The current tax benefit availed for FY 18-19 is `27.74
Lakhs (Previous year- ` 37.60 Lakhs).
3. The Company enters into various Our procedures included but were not limited to:
financial instruments such as • Obtaining an understanding of the internal risk
derivative financial instruments management procedures and the systems and
to hedge the Company’s controls associated with the origination and
exposure to variability in foreign maintenance of complete and accurate information
exchange movements, including relating to financial instruments;
investments in quoted and
• Utilizing our treasury experts, we also tested on a
unquoted equity instruments,
sample basis the existence and valuation of such
quoted mutual funds and quoted
financial instruments as at 31st March 2019. Our audit
non-convertible debentures.
procedures focused on the integrity of the valuation
As at 31st March 2019, financial
models and the incorporation of the contract terms
instruments carried at fair value
and the key assumptions, including future price
through profit and loss totaled
assumptions and discount rates; and
`53,812.05 Lakhs (current
investments of `47,167.71 Lakhs • Obtaining an understanding of key financial instrument
and non-current investments of contract terms to assess the appropriateness of
`6,644.34 Lakhs) as disclosed accounting reflected in the financial report.
in Note 5 to the Standalone We have also assessed the appropriateness of the
Financial Statements and disclosures included in Note 30 to the Standalone
derivative financial liabilities Financial Statements.
totaled `10.12 Lakhs (current
liabilities) as disclosed in Note
15 to the Standalone Financial
Statements. These financial
instruments are recorded at fair
value as required by the relevant
accounting standard. We have
focused on this area due to the
complexities associated with
the valuation and accounting for
these financial instruments.

Information Other than the Standalone Financial Our opinion on the standalone financial statements
Statements and Auditor’s Report Thereon does not cover the other information and we do
The Company’s Board of Directors is responsible not express any form of assurance conclusion
for the preparation of the other information. The thereon.
other information comprises the information
In connection with our audit of the standalone  
included in the Management Discussion and
financial statements, our responsibility is to read
Analysis, Board’s Report including Annexures to
the other information and, in doing so, consider
Board’s Report, Business Responsibility Report,
whether the other information is materially
Corporate Governance and Shareholder’s
inconsistent with the standalone financial
Information, but does not include the standalone 
statements or our knowledge obtained during the
financial statements and our auditor’s report
course of our audit or otherwise appears to be
thereon.
materially misstated.

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If, based on the work we have performed, we about whether these standalone financial
conclude that there is a material misstatement of statements as a whole are free from material
this other information, we are required to report misstatement, whether due to fraud or error,
that fact. We have nothing to report in this regard. and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of
Management’s Responsibility for the Standalone  assurance, but is not a guarantee that an audit
Financial Statements conducted in accordance with SAs will always
The Company’s Board of Directors is responsible detect a material misstatement when it exists.
for the matters stated in section 134(5) of the Misstatements can arise from fraud or error and
Companies Act, 2013 (“the Act”) with respect are considered material if, individually or in the
to the preparation of these standalone financial aggregate, they could reasonably be expected
statements that give a true and fair view of the to influence the economic decisions of users
financial position, financial performance including taken on the basis of these standalone financial
other comprehensive income, changes in equity statements.
and cash flows of the Company in accordance
with the Ind AS and other accounting principles As part of an audit in accordance with SAs, we
generally accepted in India. exercise professional judgment and maintain
professional skepticism throughout the audit. We
This responsibility also includes maintenance of also:
adequate accounting records in accordance with
the provisions of the Act for safeguarding of the • Identify and assess the risks of material
assets of the Company and for preventing and misstatement of the standalone financial
detecting frauds and other irregularities; selection statements, whether due to fraud or error,
and application of appropriate implementation design and perform audit procedures
and maintenance of accounting policies; making responsive to those risks, and obtain audit
judgments and estimates that are reasonable evidence that is sufficient and appropriate to
and prudent; and design, implementation and provide a basis for our opinion. The risk of not
maintenance of adequate internal financial detecting a material misstatement resulting
controls, that were operating effectively for from fraud is higher than for one resulting from
ensuring the accuracy and completeness of the error, as fraud may involve collusion, forgery,
accounting records, relevant to the preparation intentional omissions, misrepresentations, or
and presentation of the standalone financial the override of internal control.
statements that give a true and fair view and are
• Obtain an understanding of internal financial
free from material misstatement, whether due to
controls relevant to the audit in order to design
fraud or error.
audit procedures that are appropriate in the
In preparing the standalone financial statements, circumstances. Under section 143(3)(i) of the
management is responsible for assessing the Act, we are also responsible for expressing
Company’s ability to continue as a going concern, our opinion on whether the Company has
disclosing, as applicable, matters related to going adequate internal financial controls system in
concern and using the going concern basis of place and the operating effectiveness of such
accounting unless management either intends to controls.
liquidate the Company or to cease operations, or
• Evaluate the appropriateness of accounting
has no realistic alternative but to do so.
policies used and the reasonableness of
Those Board of Directors are responsible for accounting estimates and related disclosures
overseeing the company’s financial reporting made by management.
process.
• Conclude on the appropriateness of
Auditor’s Responsibility for the Audit of the management’s use of the going concern basis
Standalone Financial Statements of accounting and, based on the audit evidence
obtained, whether a material uncertainty
Our objectives are to obtain reasonable assurance

AVANTI FEEDS LIMITED 101

 exists related to events or conditions that of the current period and are therefore the key
may cast significant doubt on the Company’s audit matters. We describe these matters in our
ability to continue as a going concern. If we auditor’s report unless law or regulation precludes
conclude that a material uncertainty exists, public disclosure about the matter or when, in
we are required to draw attention in our extremely rare circumstances, we determine that a
auditor’s report to the related disclosures matter should not be communicated in our report
in the standalone financial statements or, if because the adverse consequences of doing so
such disclosures are inadequate, to modify would reasonably be expected to outweigh the
our opinion. Our conclusions are based on public interest benefits of such communication.
the audit evidence obtained up to the date of
Report on Other Legal and Regulatory
our auditor’s report. However, future events or
Requirements
conditions may cause the Company to cease
to continue as a going concern. As required by the Companies (Auditor’s
Report) Order, 2016 (“the Order”), issued by the
• Evaluate the overall presentation, structure and Central Government of India in terms of sub-
content of the standalone financial statements, section (11) of section 143 of the Act, we give in
including the disclosures, and whether the the “Annexure-A”, a statement on the matters
standalone financial statements represent specified in paragraphs 3 and 4 of the Order, to
the underlying transactions and events in a the extent applicable.
manner that achieves fair presentation.
As required by section 143 (3) of the Act, we
Materiality is the magnitude of misstatements report that:
in the standalone financial statements that,
individually or in aggregate, makes it probable a) We have sought and obtained all the
that the economic decisions of a reasonably information and explanations which to the best
knowledgeable user of the standalone financial of our knowledge and belief were necessary
statements may be influenced. We consider for the purposes of our audit.
quantitative materiality and qualitative factors
b) In our opinion, proper books of account
in (i) planning the scope of our audit work and
as required by law have been kept by the
in evaluating the results of our work; and (ii) to
Company so far as it appears from our
evaluate the effect of any identified misstatements
examination of those books.
in the standalone financial statements.
c) The balance Sheet, the statement of profit and
We communicate with those charged with
loss including other comprehensive income,
governance regarding, among other matters,
the statement of changes in equity and the
the planned scope and timing of the audit and
statement of cash flows dealt with by this
significant audit findings, including any significant
Report are in agreement with the books of
deficiencies in internal control that we identify
account.
during our audit. We also provide those charged
with governance with a statement that we have d) In our opinion, the aforesaid standalone financial
complied with relevant ethical requirements statements comply with the Accounting
regarding independence, and to communicate Standards specified under Section 133 of
with them all relationships and other matters the Act, read with Rule 7 of the Companies
that may reasonably be thought to bear on our (Accounts) Rules, 2014.
independence, and where applicable, related
safeguards. e) On the basis of the written representations
received from the directors as on 31st March
From the matters communicated with those 2019, taken on record by the Board of
charged with governance, we determine those Directors, none of the directors is disqualified
matters that were of most significance in the as on 31st March 2019, from being appointed as
audit of the standalone financial statements a director in terms of Section 164(2) of the Act.

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f) With respect to the adequacy of the internal i. The Company has disclosed the impact of
financial controls over financial reporting of pending litigations on its financial position
the Company and the operating effectiveness in its standalone financial statements- Refer
of such controls, refer to our separate report Note 33 to the financial statements
in “Annexure-B”. Our report expresses an
ii. The Company did not have any long-term
unmodified opinion on the adequacy and
contracts including derivative contracts for
operating effectiveness of the Company’s
which there were any material foreseeable
internal financial controls over financial
losses.
reporting.
iii. There has been no delay in transferring
g) With respect to the other matters to be
amounts, required to be transferred, to the
included in the Auditor’s Report in accordance
Investor Education and Protection Fund by the
with the requirements of section 197(16) of the
Company.
Act, as amended:

In our opinion and to the best of our information

and according to the explanations given to us, For TUKARAM & CO LLP.
the remuneration paid by the Company to its Chartered Accountants
directors during the year is in accordance with ICAI Firm Regn. 004436S
the provisions of section 197 of the Act.
B. Lokanath
h) With respect to the other matters to be
PARTNER
included in the Auditor’s Report in accordance
Membership No.024927
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our
opinion and to the best of our information and Place: Hyderabad
according to the explanations given to us: Date: 07.06.2019

AVANTI FEEDS LIMITED 103

 “Annexure – A” to the Auditors’ Report
The Annexure referred to in Independent Auditors’ Report to the members of the Company on the
standalone financial statements for the year ended 31st March 2019, we report that:

Re: Avanti Feeds Limited (‘the Company’) loans and investments made.

i. In respect of the Company’s fixed assets: v. According to the information and explanations
given to us, the Company has not accepted
(a)
The Company has maintained proper deposits from the public within the meaning
records showing full particulars, including of Section 73 and 76 or any other relevant
quantitative details and situation of fixed provisions of the Act and the rules framed
assets. there under.
(b) As explained to us, the management has vi. We have broadly reviewed the books of account
physically verified a substantial portion and records maintained by the Company
of the fixed assets during the year and in pursuant to the Rules made by the Central
our opinion frequency of verification is Government of India for the maintenance of
reasonable having regard to the size of cost records prescribed under sub-section
the Company and the nature of its assets. (1) of section 148 of the Act in respect of
The discrepancies noticed on physical production and processing activities of the
verification of fixed assets as compared to Company and are of the opinion that prima
the books of account were not material and facie, the prescribed accounts and records
have been properly dealt with in the books have been maintained. We have however, not
of accounts. made a detailed examination of the records
(c)
In our opinion and according to the with a view to determine whether they are
information and explanations given to us, accurate or complete.
all the title deeds of immovable properties vii. In respect of Statutory dues:
are held in the name of the Company.
(a)
The Company is regular in depositing
ii. According to the information and explanations with appropriate authorities, undisputed
given to us, the inventories have been physically statutory dues including provident fund,
verified by the management during the year. employees state insurance, income-tax,
In our opinion, the frequency of verification goods and service tax, duty of customs,
is reasonable. The discrepancies noticed on cess and other material statutory
physical verification of inventory as compared dues applicable to it. According to the
to the books of account were not material and information and explanations given to us,
have been properly dealt with in the books of no undisputed amounts payable in respect
accounts. of such statutory dues were outstanding,
iii. According to the information and explanations at the year end, for a period of more than
given to us, the Company has not granted any six months from the date they became
loans, secured or unsecured to companies, payable.
firms or other parties covered in the register (b)
According to the information and
maintained under section 189 of the Act. explanations given to us, the details of dues
iv. In our opinion and according to the information of value added tax and duty of customs on
and explanations given to us, the Company account of any dispute are given below:
has complied with the provisions of section
185 and 186 of the Act, with respect to the

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Company Overview Statutory Reports Financial Statements

Name of the Nature of the Dues Amount ‘`’ in Period to which the Forum where
Statute Lakhs amount relates dispute is pending
Madhya Sales tax (MP VAT 29.22 2005-2006 High Court of
Pradesh VAT demand for soya Madhya
Act, 2002 transactions in 2005-06) Pradesh
Customs Act, Customs duty 60.82 2009 -2010 to 2011- CESTAT, Chennai
1962 2012

viii. Based on our audit procedures and as per the xiii. According to the information and explanations
information and explanations given by the given to us and based on our examination of
management, we are of the opinion that the the records of the Company, transactions
Company has not defaulted in the repayment with the related parties are in compliance
of dues to banks, governments and financial with sections 177 and 188 of the Act where
institutions. The Company did not have any applicable and details of such transactions
debentures outstanding as at the year end. have been disclosed in the standalone financial
statements as required by the applicable
ix. Based on the information and explanations accounting standards.
given to us by the management, the Company
has not raised any moneys by way of initial xiv. According to the information and explanations
public offer or further public offer of equity given to us and based on our examination of
shares, convertible securities and debt the records of the Company, the Company
securities. No term loans were taken during has not made any preferential allotment or
the year by the Company. private placement of shares or fully or partly
convertible debentures during the year.
x. Based upon the audit procedures performed
for the purpose of reporting the true and fair xv. According to the information and explanations
view of the standalone financial statements given to us and based on our examination of
and as per the information and explanations the records of the Company, the Company
given by the management, we report that has not entered into non-cash transactions
no material fraud, by the Company or on the with directors or persons connected with him.
Company by its officers or employees, has Accordingly, paragraph 3(xv) of the Order is
been noticed or reported during the course of not applicable.
our audit.
xvi. The Company is not required to be registered
xi. According to the information and explanations under section 45-IA of the Reserve Bank of
give to us and based on our examination of India Act 1934.
the records of the Company, the Company has
paid/provided for managerial remuneration
For TUKARAM & CO LLP.
in accordance with the requisite approvals
Chartered Accountants
mandated by the provisions of section 197
read with Schedule V to the Act. ICAI Firm Regn. 004436S

xii. In our opinion and according to the information B. Lokanath

and explanations given to us, the Company is PARTNER
not a Nidhi Company. Accordingly, paragraph Membership No.024927
3(xii) of the Order is not applicable. Place: Hyderabad
Date : 07.06.2019

AVANTI FEEDS LIMITED 105

 Annexure - B to the Independent Auditors’ Report
Report on the Internal Financial Controls over financial reporting under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls Controls and, both issued by the Institute of
over financial reporting of Avanti Feeds Limited Chartered Accountants of India. Those Standards
(“the Company”) as of 31st March 2019 in and the Guidance Note require that we comply
conjunction with our audit of the standalone with ethical requirements and plan and perform
financial statements of the Company for the year the audit to obtain reasonable assurance about
ended on that date. whether adequate internal financial controls over
financial reporting was established and maintained
Management’s Responsibility for Internal and if such controls operated effectively in all
Financial Controls material respects.
The Company’s management is responsible for Our audit involves performing procedures to
establishing and maintaining internal financial obtain audit evidence about the adequacy of the
controls based on the internal control over internal financial controls system over financial
financial reporting criteria established by the reporting and their operating effectiveness. Our
Company considering the essential components audit of internal financial controls over financial
of internal control stated in the Guidance Note reporting included obtaining an understanding of
on Audit of Internal Financial Controls over internal financial controls over financial reporting,
Financial Reporting issued by the Institute assessing the risk that a material weakness
of Chartered Accountants of India (‘ICAI’). exists, and testing and evaluating the design and
These responsibilities include the design, operating effectiveness of internal control based
implementation and maintenance of adequate on the assessed risk. The procedures selected
internal financial controls that were operating depend on the auditor’s judgment, including the
effectively for ensuring the orderly and efficient assessment of the risks of material misstatement
conduct of its business, including adherence of the standalone financial statements, whether
to Company’s policies, the safeguarding of its due to fraud or error.
assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the We believe that the audit evidence we have
accounting records, and the timely preparation of obtained is sufficient and appropriate to provide
reliable financial information, as required under a basis for our audit opinion on the Company’s
the Companies Act, 2013. internal financial controls system over financial
reporting.
Auditors’ Responsibility
Meaning of Internal Financial Controls over
Our responsibility is to express an opinion on Financial Reporting
the Company’s internal financial controls over
financial reporting based on our audit. We A Company’s internal financial control over
conducted our audit in accordance with the financial reporting is a process designed
Guidance Note on Audit of Internal Financial to provide reasonable assurance regarding
Controls over Financial Reporting (the “Guidance the reliability of financial reporting and the
Note”) and the Standards on Auditing, issued by preparation of standalone financial statements for
ICAI and deemed to be prescribed under section external purposes in accordance with generally
143(10) of the Companies Act, 2013, to the extent accepted accounting principles. A Company’s
applicable to an audit of internal financial controls, internal financial control over financial reporting
both applicable to an audit of Internal Financial includes those policies and procedures that (1)

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pertain to the maintenance of records that, in financial reporting may become inadequate
reasonable detail, accurately and fairly reflect the because of changes in conditions, or that the
transactions and dispositions of the assets of the degree of compliance with the policies or
Company; (2) provide reasonable assurance that procedures may deteriorate.
transactions are recorded as necessary to permit
Opinion
preparation of standalone financial statements in
accordance with generally accepted accounting In our opinion, the Company has, in all material
principles, and that receipts and expenditures of respects, an adequate internal financial controls
the Company are being made only in accordance system over financial reporting and such internal
with authorisations of management and directors financial controls over financial reporting were
of the Company; and (3) provide reasonable operating effectively as at 31st March 2019, based
assurance regarding prevention or timely on the internal control over financial reporting
detection of unauthorised acquisition, use, or criteria established by the Company considering
disposition of the Company’s assets that could the essential components of internal control
have a material effect on the standalone financial stated in the Guidance Note on Audit of Internal
statements. Financial Controls Over Financial Reporting issued
Inherent Limitations of Internal Financial by the Institute of Chartered Accountants of India.
Controls over Financial Reporting

Because of the inherent limitations of internal For TUKARAM & CO LLP.

financial controls over financial reporting, Chartered Accountants
including the possibility of collusion or improper ICAI Firm Regn. 004436S
management override of controls, material
misstatements due to error or fraud may occur B. Lokanath
and not be detected. Also, projections of any PARTNER
evaluation of the internal financial controls over Membership No.024927
financial reporting to future periods are subject Place: Hyderabad
to the risk that the internal financial control over Date : 07.06.2019

AVANTI FEEDS LIMITED 107

 Balance sheet as at 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
Note
31st March 2019 31st March 2018
ASSETS
Non-current Assets
Property, plant, and equipment 3 15,585.40 17,126.24
Capital work-in-progress 3 792.44 12.58
Intangible assets 4 17.96 5.84
Financial assets
Investments 5 17,949.58 11,211.82
Loans 6(a) 91.86 58.60
Other financial assets 7 479.05 456.06
Non-current tax assets (net) 20(b) 1,819.91 620.38
Other non-current assets 8(a) 263.60 137.01
Total Non-current Assets 36,999.80 29,628.53

Current Assets
Inventories 9 22,483.05 38,792.84
Financial assets
Investments 5 51,898.10 54,215.33
Trade receivables 10 1,609.41 1,913.31
Cash and cash equivalents 11 1,205.94 580.59
Other bank balances 12 12,864.39 763.97
Loans 6(b) 88.27 90.03
Other current assets 8(b) 548.51 836.94
Total Current Assets 90,697.67 97,193.01
Total Assets 1,27,697.47 1,26,821.54
EQUITY AND LIABILITIES
Equity
Equity share capital 13 1,362.46 908.30
Other equity 14 1,04,865.95 92,880.42
Total Equity 1,06,228.41 93,788.72

Liabilities
Non-current Liabilities
Financial liabilities
Other financial liabilities 15(a) 374.50 374.50
Provisions 16(a) 104.76 156.42
Deferred tax liabilities (net) 20(a) 2,107.02 1,873.04
Total non-current liabilities 2,586.28 2,403.96
Current liabilities
Financial liabilities
Borrowings 18 - -
Trade payables:
i) Total outstanding dues of Micro enterprises and small 19 787.26 1,464.56
enterprises
ii) Total outstanding dues of creditors other than Micro 19 15,134.52 25,780.77
enterprises and small enterprises
Other financial liabilities 15(b) 199.30 129.94
Other current liabilities 17 2,644.02 3,089.55
Provisions 16(b) 117.68 164.04
Total Current Liabilities 18,882.78 30,628.86
Notes forming part of the Financial Statements 1-40
Total Equity and Liabilities 1,27,697.47 1,26,821.54
The accompanying notes are an integral part of the financial statements
As per our Report of even date
For and on behalf of the Board of Directors
For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Statement of profit & loss for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

Note
31st March 2019 31st March 2018
Income
Revenue from operations 21 2,73,842.34 2,81,532.89
Other Income (net) 22 4,459.15 3,554.92
Total Income 2,78,301.49 2,85,087.81

Expenses
Cost of materials consumed 23 2,22,068.34 2,00,425.62
Purchases of stock in trade 23 - 271.85
Changes in inventories of Finished Goods & Work 24 1,280.32 (583.25)
In Progress
Employee benefits expense 25 8,283.55 9,757.90
Finance costs 26 124.58 124.43
Depreciation and amortisation expense 27 2,028.31 1,466.82
Other expenses 28 11,467.45 10,629.96
Total expenses 2,45,252.55 2,22,093.34
Profit before exceptional items & tax 33,048.94 62,994.47

Exceptional Items 29 518.26 (79.30)

Profit before tax 33,567.20 62,915.17

Tax Expense
Current tax 20(c) 10,983.74 20,707.55
Deferred tax 20(c) 233.98 713.78
Total tax expenses 11,217.72 21,421.33
Profit for the year 22,349.48 41,493.84
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of the defined benefit plans (54.72) (116.60)
Total comprehensive income for the 22,294.76 41,377.24
period (Comprising Profit/(Loss) and other
Comprehensive Income for the period)
Earnings per equity share (EPS) 35
(Equity shares, par value of `1/- each)
Basic and diluted EPS (in `)
Basic 16.40 30.46
Diluted 16.40 30.46
The accompanying notes are an integral part of the financial statements
As per our Report of even date
For and on behalf of the Board of Directors
For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

AVANTI FEEDS LIMITED 109

 Statement of Changes in Equity for the year ended 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

a. Equity Share Capital

Particulars Number of Shares Amount

Balance at 1 April 2017
st
4,54,15,210 908.30
Changes in equity share capital during the year - -
Balance at 31 March 2018
st
4,54,15,210 908.30
Changes in equity share capital during the year 9,08,30,420 454.16
Balance at 31 March 2019
st
13,62,45,630 1,362.46

b. Other Equity

Reserves and Surplus

Particulars General Securities Retained
Total
reserve premium earnings
Balance at 1st April 2017 9,081.87 438.00 46,902.76 56,422.63

Profit for the year 41,493.84 41,493.84

Other comprehensive income (116.60) (116.60)
Dividends (including corporate dividend tax) (4,919.46) (4,919.46)
Transfer from Statement of Profit and Loss 4,000.00 (4,000.00) -

Balance at 31st March 2018 13,081.87 438.00 79,360.55 92,880.42

Profit for the year 22,349.48 22,349.48

Utilised for Bonus (16.15) (438.00) - (454.15)
Other comprehensive income (54.72) (54.72)
Dividends (including corporate dividend tax) (9,855.07) (9,855.07)
Transfer from Statement of Profit and Loss 2,000 (2,000) -
Balance at 31 March 2019
st
15,065.72 - 89,800.23 1,04,865.95

The accompanying notes are an integral part of the financial statements

As per our Report of even date

For and on behalf of the Board of Directors

For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Statement of Cash Flows for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

Particulars
31st March 2019 31st March 2018
A. CASH FLOW FROM/(USED IN) OPERATING
ACTIVITIES
Profit before tax 33,567.20 62,915.17
Adjustments for :
Depreciation and amortisation expense 2,028.31 1,466.82
Finance costs 124.58 124.43
Loss on sale of property, plant and equipment 29.01 21.41
Interest income (519.03) (65.34)
Dividend income (1,492.18) (1,010.01)
Gain/loss from sale of financial assets (1,686.20) (668.65)
measured at fair value through profit and loss
Fair valuation of financial assets measured at (537.24) (1,528.66)
fair value through profit and loss
Provision for employee benefits 222.44 320.46
Exchange differences (net) 295.00 (19.33)
Operating profit before working capital 32,031.89 61,556.30
changes
Changes in working capital:
Adjustments for (increase) / decrease in
operating assets:
Trade receivables 303.90 (717.57)
Loans (31.50) (65.30)
Other financial assets 265.44 (1.69)
Inventories 16,309.79 (9,550.90)
Other bank balances (12,050.08) (269.57)
Other assets (126.59) (634.22)
Adjustments for increase / (decrease) in
operating liabilities:
Trade payables (11,323.55) 3,642.17
Provisions (375.18) (228.93)
Other financial liabilities 69.36 (176.76)
Other current liabilities (445.53) 553.72
Cash generated from operations 24,627.94 54,107.25
Income taxes paid, net (12,183.27) (21,338.26)
Net cash from operating activities (A) 12,444.67 32,768.99

AVANTI FEEDS LIMITED 111

 Statement of Cash Flows for the year ended 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

Particulars
31st March 2019 31st March 2018
B. CASH FLOW FROM/(USED IN)
INVESTING ACTIVITIES
Capital expenditure on Property plant and (1,378.13) (5,271.38)
equipment, including capital advances
Proceeds from sale of fixed assets 69.68 10.17
Investment in mutual funds (2,197.09) (25,959.45)
Interest received 519.03 65.34
Dividend income received 1,492.18 1,010.01
Net cash from /(used in) investing activities (1,494.33) (30,145.31)
(B)
C. CASH FLOW FROM/(USED IN)
FINANCING ACTIVITIES
Finance costs (124.58) (124.43)
Proceeds from Borrowings - (131.16)
Dividends paid (9,905.41) (4,952.78)
Exchange differences (295.00) 19.33
Net cash from/(used in) financing activities (10,324.99) (5,189.04)
(C)

Net increase/(decrease) in Cash and cash 625.35 (2,565.36)

equivalents (A+B+C)
Cash and cash equivalents at the beginning 580.59 3,145.95
of the year
Cash and cash equivalents at the end of the 1,205.94 580.59
year (Refer Note (i) below)
Note (i):
Cash in hand 10.13 21.82
Balances with Banks 1,195.81 558.77
1,205.94 580.59

The above Statement of Cash Flows has been prepared under the “Indirect Method” set out in Ind AS -
7, ‘Statement of Cash Flows’ specified under section 133 of the Companies Act, 2013
Purchase of property, plant and equipment includes movements of capital work-in-progress during
the year.
For and on behalf of the Board of Directors
For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Notes to Financial Statements for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

1. Corporate information 2.2 Measurement of fair values

Avanti Feeds Limited, (the Company) is a The Company’s accounting policies and
listed public Company under “The Companies disclosures require financial instruments to
Act, 1956”, with its registered office in be measured at fair values. The Company
Visakhapatnam. Avanti Feeds Limited has has an established control framework with
started its commercial operations in 1993 and respect to the measurement of fair values.
now stands as the leading manufacturer of The Company uses valuation techniques that
Shrimp Feed. are appropriate in the circumstances and for
which sufficient data are available to measure
The financial statements are approved for fair value, maximizing the use of relevant
issue by the Company’s Board of Directors on observable inputs and minimizing the use
May 25, 2019. of unobservable inputs. The management
2. Basis of preparation of financial statements regularly reviews significant unobservable
and significant accounting policies: inputs and valuation adjustments. If third
party information, such as broker quotes
2.1 Basis of preparation and measurement or pricing services, is used to measure fair
(i) Basis of preparation values, then the management assesses the
evidence obtained from the third parties to
These financial statements are prepared in support the conclusion that such valuations
accordance with Indian Accounting Standard meet the requirements of Ind AS, including the
(Ind AS), the provisions of the Companies level in the fair value hierarchy in which such
Act, 2013 (‘the Act’) (to the extent notified) valuations should be classified.
and guidelines issued by the Securities and
Exchange Board of India (SEBI). The Ind AS Fair values are categorised into different levels
are prescribed under Section 133 of the Act in a fair value hierarchy based on the inputs
read with Rule 3 of the Companies (Indian used in the valuation techniques as follows.
Accounting Standards) Rules, 2015 and Level 1: quoted prices (unadjusted) in active
relevant amendment rules issued there after. markets for identical assets or liabilities.
Level 2: inputs other than quoted prices
Accounting policies have been consistently included in Level 1 that are observable for
applied except where a newly issued the asset or liability, either directly (i.e. as
accounting standard is initially adopted or a prices) or indirectly (i.e. derived from prices).
revision to an existing accounting standard Level 3: inputs for the asset or liability that
requires a change in the accounting policy are not based on observable market data
hitherto in use (unobservable inputs).
(ii) Basis of measurement If the inputs used to measure the fair value of
The financial statements have been prepared an asset or a liability fall into different levels
under the historical cost convention on the of the fair value hierarchy, then the fair value
accrual basis except for the following financial measurement is categorised in its entirety in
instruments which are measured at fair values: the same level of the fair value hierarchy as
the lowest level input that is significant to the
- certain financial assets and liabilities that are entire measurement. The Company recognises
measured at fair value transfers between levels of the fair value
hierarchy at the end of the reporting period
- defined benefit plans- plan assets measured
during which the change has occurred.
at fair value

AVANTI FEEDS LIMITED 113

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

2.3 Use of estimates and judgements Indian rupees (INR), which is the Company’s
functional and presentation currency.
The preparation of the financial statements
in conformity with Ind AS requires the (ii) Transactions and translations
management to make estimates, judgments Foreign-currency denominated monetary
and assumptions. These estimates, judgments assets and liabilities are translated into the
and assumptions affect the application of relevant functional currency at exchange rates
accounting policies and the reported amounts in effect at the Balance Sheet date. The gains
of assets and liabilities, the disclosures of or losses resulting from such translations are
contingent assets and liabilities at the date of included in net profit in the Statement of Profit
the financial statements and reported amounts and Loss. Non-monetary assets and non-
of revenues and expenses during the period. monetary liabilities denominated in a foreign
Accounting estimates could change from currency and measured at fair value are
period to period. Actual results could differ translated at the exchange rate prevalent at
from those estimates. Appropriate changes in the date when the fair value was determined.
estimates are made as management becomes Non-monetary assets and nonmonetary
aware of changes in circumstances surrounding liabilities denominated in a foreign currency
the estimates. Changes in estimates are and measured at historical cost are translated
reflected in the financial statements in the at the exchange rate prevalent at the date of
period in which changes are made and, if the transaction.
material, their effects are disclosed in the notes
to the financial statements. The areas involving Transaction gains or losses realized upon
critical estimates or judgements are; settlement of foreign currency transactions are
included in determining net profit for the period
- Estimation of defined benefit obligation, in which the transaction is settled. Revenue,
refer note 39 expense and cash-flow items denominated
- Useful life of fixed assets, refer note 2.4 (n) in foreign currencies are translated into the
relevant functional currencies using the
2.4 Significant accounting policies
exchange rate in effect on the date of the
a. Segment reporting
transaction
Operating segments are reported in a manner
consistent with the internal reporting provided c. Revenue recognition
to the chief operating decision maker.
The Company earns revenue primarily from
The Chairman and Managing Director (CMD) sale of Shrimp Feed.
of the Company has been identified as the
Revenue is recognized upon transfer of control
chief operating decision maker. Refer Note 37
of promised products or services to customers
for the segment information presented.
in an amount that reflects the consideration
b. Foreign currency translation the Company expects to receive in exchange
for those products or services. To recognize
(i) Functional and presentation currency revenues, we apply the following five step
Items included in the financial statements of the approach:
Company are measured using the currency of
its primary economic environment in which the (1) identify the contract with a customer,
Company operates (‘the functional currency’). (2) identify the performance obligations in the
The financial statements are presented in contract,

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(3) determine the transaction price, application and the comparative information in
(4) allocate the transaction price to the the statement of profit and loss is not restated
performance obligations in the contract, – i.e. the comparative information continues to
and be reported under Ind AS 18.

(5) recognize revenues when a performance Refer note 2.4 (C) – Significant accounting
obligation is satisfied. policies – Revenue recognition in the Annual
At contract inception, the Company assesses report of the Company for the year ended 31st
its promise to transfer products or services to March 2018, for the revenue recognition policy
a customer to identify separate performance as per Ind AS 18. The impact of the adoption of
obligations. The Company applies judgement the standard on the financial statements of the
to determine whether each product or services Company is insignificant.
promised to a customer are capable of being
distinct, and are distinct in the context of d. Government grant
the contract, if not, the promised product or Grants from the government are recognised
services are combined and accounted as a at their fair value where there is a reasonable
single performance obligation. The Company assurance that the grant will be received and
allocates the arrangement consideration to the Company will comply with all attached
separately identifiable performance obligation conditions.
based on their relative stand-alone selling
price or residual method. Stand-alone selling Government grants relating to income are
prices are determined based on sale prices deferred and recognised in the Statement
for the components when it is regularly sold of Profit and Loss over the period necessary
separately, in cases where the Company is to match them with the costs that they are
unable to determine the stand-alone selling intended to compensate and presented within
price, the Company uses third-party prices other income.
for similar deliverables or the company
Government grants relating to the purchase of
uses expected cost plus margin approach in
property, plant and equipment are included in
estimating the stand-alone selling price.
non-current liabilities as deferred income and
Revenue is recognised upon transfer of control are credited to Statement of Profit and Loss on
of promised products or services to customers a straight-line basis over the expected lives of
in an amount that reflects the consideration the related assets and presented within other
which the Company expects to receive in income.
exchange for those products or services.
Loans received from government in the nature
Effective 1 April 2018, the Company has applied
st of interest free deferred taxes are treated
Ind AS 115 which establishes a comprehensive in the nature of government grant. The
framework for determining whether, how much difference between the fair value of the loan
and when revenue is to be recognised. Ind AS and the amount of loan received is accounted
115 replaces Ind AS 18 Revenue. The Company as government grant. The government grant is
has adopted Ind AS 115 using the cumulative recognised in the Statement of Profit and Loss
effect method. The effect of initially applying over the period of loan.
this standard is recognised at the date of initial
e. Income Tax
application (i.e. 1st April 2018). The standard
is applied retrospectively only to contracts The income tax expense or credit for the period
that are not completed as at the date of initial is the tax payable on the current period’s

AVANTI FEEDS LIMITED 115

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

taxable income based on the applicable same taxation authority. Current tax assets and
income tax rate for each jurisdiction adjusted tax liabilities are offset where the entity has a
by changes in deferred tax assets and liabilities legally enforceable right to offset and intends
attributable to temporary differences and to either to settle on a net basis, or to realise the
unused tax losses. asset and settle the liability simultaneously.

The current income tax charge is calculated Current and deferred tax is recognised in
on the basis of the tax laws enacted or Statement of Profit and Loss, except to the
substantively enacted at the end of the extent that it relates to items recognised in
reporting period in the countries where the other comprehensive income or directly in
Company operates and generates taxable equity. In this case, the tax is also recognised
income. Management periodically evaluates in other comprehensive income or directly in
positions taken in tax returns with respect to equity, respectively.
situations in which applicable tax regulation
f. Leases
is subject to interpretation. It establishes
provisions, where appropriate, on the basis As a lessee
of amounts expected to be paid to the tax Leases in which a significant portion of the risks
authorities. and rewards of ownership are not transferred
to the Company as lessee are classified as
Deferred income tax is provided in full, using
operating leases. Payments made under
the liability method, on temporary differences
operating leases are charged to Statement of
arising between the tax bases of assets and
Profit and Loss on a straight-line basis over
liabilities and their carrying amounts in the
the period of the lease unless the payments
financial statements. Deferred income tax
are structured to increase in line with expected
is also not accounted for if it arises from
general inflation to compensate for the lessor’s
initial recognition of an asset or liability in a
expected inflationary cost increases.
transaction other than a business combination
that at the time of the transaction affects g. Impairment of assets
neither accounting profit nor taxable profit
(tax loss). Deferred income tax is determined Intangible assets that have an indefinite
using tax rates (and laws) that have been useful life are not subject to amortisation and
enacted or substantially enacted by the end are tested annually for impairment, or more
of the reporting period and are expected to frequently if events or changes in circumstances
apply when the related deferred income tax indicate that they might be impaired. Other
asset is realised or the deferred income tax assets are tested for impairment whenever
liability is settled. events or changes in circumstances indicate
that the carrying amount may not be
Deferred tax assets are recognised for all recoverable. An impairment loss is recognised
deductible temporary differences and unused for the amount by which the asset’s carrying
tax losses only if it is probable that future amount exceeds its recoverable amount. The
taxable amounts will be available to utilise recoverable amount is higher of an asset’s
those temporary differences and losses. fair value less costs of disposal and value in
use. For the purpose of assessing impairment,
Deferred tax assets and liabilities are offset
assets are grouped at the lowest levels for
when there is a legally enforceable right to
which there are separately identifiable cash
offset current tax assets and liabilities and
inflows which are largely independent of the
when the deferred tax balances relate to the
cash flows from other assets or group of

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

assets (cash-generating units). Non-financial the estimated costs of completion and the
assets other than goodwill that suffered an estimated costs necessary to make the sale.
impairment are reviewed for possible reversal
k. Investments and other financial assets
of the impairment at the end of each reporting
period. (i) Classification
The Company classifies its financial assets in
h. Cash and cash equivalents
the following measurement categories:
Cash and cash equivalents in the balance - those to be measured subsequently at fair
sheet includes cash at bank and cash on hand, value (either through other comprehensive
deposits held at call with financial institutions, income, or through profit or loss), and
other short-term, highly liquid investments - those measured at amortised cost.
with original maturities of three months or
The classification depends on the entity’s
less that are readily convertible to known
business model for managing the financial
amounts of cash and which are subject to an
assets and the contractual terms of the cash
insignificant risk of changes in value. Bank
flows.
overdrafts are shown within borrowings in
For assets measured at fair value, gains and
current liabilities in the balance sheet. For the
losses will either be recorded in profit or
purpose of statement of cash flows, cash and
loss or other comprehensive income. For
cash equivalents cash an short term deposits
investments in debt instruments, this will
as defined above is net of outstanding bank
depend on the business model in which the
overdrafts as they are considered an integral
investment is held. For investments in equity
part of the Company’s cash management.
instruments, this will depend on whether the
i. Trade receivables Company has made an irrevocable election at
the time of initial recognition to account for
Trade receivables are recognised initially at the equity investment at fair value through
fair value and subsequently measured at other comprehensive income.
amortised cost using the effective interest
The Company reclassifies debt investments
method, less provision for impairment.
when and only when its business model for
j. Inventories managing those assets changes.

Inventories are valued at lower of cost and (ii) Measurement

net realizable value. Cost of raw materials, At initial recognition,the Company measures a
components and stores and spares is financial asset at its fair value plus, in the case
determined on a weighted average basis. of a financial asset not at fair value through
Cost of raw materials comprise of cost of profit or loss, transaction costs that are directly
purchase. Cost of work-in-progress and attributable to the acquisition of the financial
finished goods comprises direct materials asset. Transaction costs of financial assets
and labour and a proportion of manufacturing carried at fair value through profit or loss are
overheads based on normal operating capacity. expensed in Statement of Profit and Loss.
Cost is determined on a weighted average
basis. Cost of inventories also include all other Debt instruments
costs incurred in bringing the inventories Subsequent measurement of debt instruments
to their present location and condition. depends on the Company’s business model
Net realisable value is the estimated selling for managing the asset and the cash flow
price in the ordinary course of business less characteristics of the asset. There are three

AVANTI FEEDS LIMITED 117

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

measurement categories into which the within other gains/(losses) in the period in
Company classifies its debt instruments: which it arises. Interest income from these
financial assets is included in other income.
- Amortised cost: Assets that are held for
collection of contractual cash flows where Equity instruments
those cash flows represent solely payments The Company subsequently measures all
of principal and interest are measured at equity investments at fair value. Where the
amortised cost. A gain or loss on a debt Company elected to present fair value gains
investment that is subsequently measured and losses on equity investments in other
at amortised cost and is not part of a comprehensive income, there is no subsequent
hedging relationship is recognised in profit reclassification of fair value gains and losses to
or loss when the asset is derecognised profit or loss. Dividends from such investments
or impaired. Interest income from these are recognised in Statement of Profit and Loss
financial assets is included in finance as other income when the Company right to
income using the effective interest rate receive payments is established.
method.
Changes in the fair value of financial assets at
- Fair value through other comprehensive fair value through profit or loss are recognised
income (FVOCI): Assets that are held for in other gain/(losses) in the Statement of Profit
collection of contractual cash flows and for and Loss. Impairment losses (and reversal of
selling the financial assets, where the assets impairment losses) on equity investments
cash flows represent solely payments of measured at FVOCI are not reported separately
principal and interest, are measured at from other changes in fair value.
fair value through other comprehensive
income (FVOCI). Movements in the (iii) Impairment of financial assets
carrying amount are taken through OCI, The Company assesses on a forward looking
except for the recognition of impairment basis the expected credit losses associated
gains or losses, interest revenue and foreign with its assets carried at amortised cost and
exchange gains and losses which are FVOCI debt instruments. The impairment
recognised in Statement of Profit and Loss. methodology applied depends on whether
When the financial asset is derecognised, there has been a significant increase in
the cumulative gain or loss previously credit risk. Note 31 details how the Company
recognised in OCI is reclassified from equity determines whether there has been a
to profit or loss and recognised in other significant increase in credit risk.
gains/(losses). Interest income from these
financial assets is included in other income For trade receivables only, the Company
using the effective interest rate method. applies the simplified approach permitted
by Ind AS 109 Financial Instruments, which
- Fair value through profit or loss: Assets requires expected life time losses to be
that do not meet the criteria for amortised recognised from initial recognition of the
cost or FVOCI are measured at fair value receivables.
through profit or loss. A gain or loss on
a debt investment that is subsequently (iv) Derecognition of financial assets
measured at fair value through profit or loss A financial asset is derecognised only when
and is not part of a hedging relationship is - the Company has transferred the rights to
recognised in profit or loss and presented receive cash flows from the financial asset or
net in the Statement of Profit and Loss - retains the contractual rights to receive

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

the cash flows of the financial asset, but and are subsequently re-measured to their fair
assumes a contractual obligation to pay value at the end of each reporting period and
the cash flows to one or more recipients. are included in other gains/(losses).
Where the entity has transferred an asset, the
Company evaluates whether it has transferred m. Offsetting financial instruments
substantially all risks and rewards of ownership
Financial assets and liabilities are offset and
of the financial asset. In such cases, the
the net amount is reported in the balance
financial asset is derecognised. Where the
sheet where there is a legally enforceable
entity has not transferred substantially all
risks and rewards of ownership of the financial right to offset the recognised amounts and
asset, the financial asset is not derecognised. there is an intention to settle on a net basis
Where the entity has neither transferred a or realise the asset and settle the liability
financial asset nor retains substantially all simultaneously. The legally enforceable right
risks and rewards of ownership of the financial must not be contingent on future events and
asset, the financial asset is derecognised if must be enforceable in the normal course
the Company has not retained control of the of business and in the event of default,
financial asset. Where the Company retains insolvency or bankruptcy of the Company or
control of the financial asset, the asset is the counterparty.
continued to be recognised to the extent of
continuing involvement in the financial asset. n. Property, plant and equipment

(v) Income recognition Freehold land is carried at historical

cost. All other items of property, plant
Interest income:
and equipment are stated at historical
Interest income from debt instruments is
cost less depreciation. Historical cost
recognised using the effective interest rate
includes expenditure that is directly
method. The effective interest rate is the rate
attributable to the acquisition of the items.
that exactly discounts estimated future cash
Subsequent costs are included in the asset’s
receipts through the expected life of the
carrying amount or recognised as a separate
financial asset to the gross carrying amount
asset, as appropriate, only when it is probable
of a financial asset. When calculating the
that future economic benefits associated with
effective interest rate, the Company estimates
the expected cash flows by considering all the the item will flow to the Company and the
contractual terms of the financial instrument cost of the item can be measured reliably. The
(for example, prepayment, extension, call and carrying amount of any component accounted
similar options) but does not consider the for as a separate asset is derecognised when
expected credit losses. replaced. All other repairs and maintenance are
charged to profit or loss during the reporting
Dividends: period in which they are incurred.
Dividends are recognised in profit or loss
only when the right to receive payment is Depreciation methods, estimated useful lives
established, it is probable that the economic and residual value
benefits associated with the dividend will
Depreciation on tangible assets is calculated
flow to the Company, and the amount of the
on a straight-line basis so as to expense the
dividend can be measured reliably.
cost less residual value over the estimated
l. Derivatives useful lifes prescribed and in the manner laid
Derivatives are initially recognised at fair value down under Schedule II to the Companies Act,
on the date a derivative contract is entered into 2013. The useful lives have been determined

AVANTI FEEDS LIMITED 119

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

based on technical evaluation done by the prior to the year end which are unpaid . The
management’s expert which are higher amounts are unsecured and are usually paid
than those specified by Schedule II to the as per mutually agreed terms. Trade and other
Companies Act; 2013, in order to reflect the payables are presented as current liabilities
actual usage of the assets. The estimated useful unless payment is not due within 12months
lives and residual values are reviewed at the after the reporting period. They are recognised
end of each reporting period, with the effect initially at their fair value and subsequently
of any change in estimate accounted for on a measured at amortised cost using the effective
prospective basis. Assets costing individually interest method.
rupee equivalent of INR 5,000 or less are fully
q. Borrowings
charged off on purchase. Depreciation for
assets purchased / sold during the period is Borrowings are initially recognised at fair
proportionately charged. value, net of transaction costs incurred.
An asset’s carrying amount is written down Borrowings are subsequently measured at
immediately to its recoverable amount if the amortised cost. Any difference between the
asset’s carrying amount is greater than its proceeds (net of transaction costs) and the
estimated recoverable amount. Gains or losses redemption amount is recognised in profit or
arising from disposal of fixed assets which are loss over the period of the borrowings using
carried at cost are recognised in the Statement the effective interest method. Fees paid on the
of Profit and Loss. establishment of loan facilities are recognised
as transaction costs of the loan to the extent
o. Intangible assets that it is probable that some or all of the
facility will be drawn down. In this case, the fee
Intangible assets that are acquired are
is deferred until the draw down occurs. To the
recognized at cost initially and carried at
extent there is no evidence that it is probable
cost less accumulated amortization and
that some or all of the facility will be drawn
accumulated impairment loss, if any.
down, the fee is capitalised as a prepayment
(i) Computer software for liquidity services and amortised over the
period of the facility to which it relates.
Computer software are stated at cost, less
accumulated amortisation and impairment Borrowings are removed from the balance
losses, if any. Cost comprises the purchase sheet when the obligation specified in
price and any attributable cost of bringing the the contract is discharged, cancelled or
asset to its working condition for its intended expired. The difference between the carrying
use. amount of a financial liability that has been
extinguished or transferred to another party
(ii) Amortisation methods and periods and the consideration paid, including any non-
cash assets transferred or liabilities assumed,
Intangible assets with finite useful live are
is recognised in profit or loss as other gains/
amortized over their respective individual
(losses).
estimated useful lives (6 years in case of
computer softwares) on a straight line basis. Borrowings are classified as current liabilities
unless the Company has an unconditional right
p. Trade and other payables
to defer settlement of the liability for at least
These amounts represent liabilities for goods 12 months after the reporting period. Where
and services provided to the Company there is a breach of a material provision of a

120 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

long-term loan arrangement on or before the Provisions are measured at the present
end of the reporting period with the effect that value of management’s best estimate of the
the liability becomes payable on demand on expenditure required to settle the present
the reporting date, the entity does not classify obligation at the end of the reporting period.
the liability as current, if the lender agreed, The discount rate used to determine the
after the reporting period and before the present value is a pre-tax rate that reflects
approval of the financial statements for issue, current market assessments of the time
not to demand payment as a consequence of value of money and the risks specific to the
the breach. liability. The increase in the provisions due to
the passage of time is recognized as interest
r. Borrowing Cost expense.
General and specific borrowing costs that t. Employee benefits
are directly attributable to the acquisition,
construction or production of a qualifying asset (i) Short-term obligations
are capitalised during the period of time that Liabilities for wages and salaries, including
is required to complete and prepare the asset non-monetary benefits that are expected to
for its intended use or sale. Qualifying assets be settled wholly within 12 months after the
are assets that necessarily take a substantial end of the period in which the employees
period of time to get ready for their intended render the related service are recognised in
use or sale. respect of employees’ services upto the end
of the reporting period and are measured
Investment income earned on the temporary
at the amounts expected to be paid when
investment of specific borrowings pending
the liabilities are settled. The liabilities are
their expenditure on qualifying assets is
presented as current employee benefit
deducted from the borrowing costs eligible for
obligations in the balance sheet.
capitalisation.
(ii) Other long-term employee benefit
Other borrowing costs are expensed in the
obligations
period in which they are incurred.
The liabilities for earned leave and sick leave
s. Provisions are not expected to be settled wholly within
12 months after the end of the period in which
Provisions are recognised when the Company
the employees render the related service. They
has a present legal or constructive obligation
are therefore measured as the present value
as a result of past events, it is probable that an
of expected future payments to be made in
outflow of resources will be required to settle
respect of services provided by employees up
the obligation and the amount can be reliably
to the end of the reporting period using the
estimated. Provisions are not recognised for
projected unit credit method. The benefits
future operating losses.
are discounted using the market yields at the
Where there are a number of similar obligations, end of the reporting period that have terms
the likelihood that an outflow will be required approximating to the terms of the related
in settlement is determined by considering the obligation. Remeasurements as a result of
class of obligations as a whole. A provisions is experience adjustments and changes in
recognized even if the likelihood of an outflow actuarial assumptions are recognised in profit
with respect to any one item included in the or loss.
same class of obligations may be small.
The obligations are presented as current

AVANTI FEEDS LIMITED 121

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

liabilities in the balance sheet if the entity benefit obligation resulting from plan
does not have an unconditional right to defer amendments or curtailments are recognised
settlement for at least twelve months after immediately in profit or loss as past service
the reporting period, regardless of when the cost.
actual settlement is expected to occur.
Defined contribution plans
(iii) Post- employment obligations
The Company pays provident fund
The Company operates the following post-
contributions to publicly administered
employment schemes:
Provident funds and Employee State Insurance
(a) defined benefit plans such as gratuity; and funds as per local regulations. The Company
(b) defined contribution plans such as has no further payment obligations once the
Provident fund, Employee State Insurance and contributions have been paid. The contributions
Superannuation fund are accounted for as defined contribution
plans and the contributions are recognised
Gratuity obligations as employee benefits expense when they are
due. Prepaid contributions are recognised as
The liability or asset recognised in the balance
an asset to the extent that a cash refund or a
sheet in respect of defined benefit gratuity
reduction in the future payments is available.
plans is the present value of the defined
Superannuation Scheme (administered
benefit obligation at the end of the reporting
through a ‘Superannuation Trust’ formed by
period less the fair value of plan assets. The
the Company) is a defined contribution plans,
defined benefit obligation is calculated
where the Company has no further obligations
annually by actuaries using the projected unit
under the plan beyond its monthly/ quarterly
credit method.
contributions.
The present value of the defined benefit
(iv) Bonus plans
obligation denominated by discounting the
estimated future cash outflows by reference The Company recognises a liability and an
to market yields at the end of the reporting expense for bonuses. The Company recognises
period on government bonds that have terms a provision where contractually obliged or
approximating to the terms of the related where there is a past practice that has created
obligation. a constructive obligation.

The net interest cost is calculated by applying u. Contributed Equity

the discount rate to the net balance of the Equity shares are classified as equity.
defined benefit obligation and the fair value of Incremental costs directly attributable to the
plan assets. This cost is included in employee issue of new shares are shown in equity as a
benefits expense in the Statement of Profit deduction, net of tax, from the proceeds.
and Loss.
v. Dividends
Remeasurement gains and losses arising
from experience adjustments and changes in Provision is made for the amount of any
actuarial assumptions are recognised in the dividend declared, being appropriately
period in which they occur, directly in other authorized and no longer at the discretion of
comprehensive income. They are included in the entity, on or before the end of the reporting
retained earnings in the statement of changes period but not distributed at the end of the
in equity and in the balance sheet. reporting period.

Changes in the present value of the defined w. Earnings per share

122 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(i) Basic earnings per share statement of Profit & Loss. The Standard also
Basic earnings per share is calculated by contains enhanced disclosure requirements for
dividing the profit attributable to owners of the lessees. Ind AS 116 substantially carries forward
Company by the weighted average number of the lessor accounting requirements in Ind AS 17.
equity shares outstanding during the financial
The effective date for adoption of Ind AS 116 is
year.
annual periods beginning on or after 1st April 2019.
(ii) Diluted earnings per share The standard permits two possible methods of
Diluted earnings per share adjusts the figures transition:
used in the determination of basic earnings • Full retrospective – Retrospectively to each
per share to take into account: prior period presented applying Ind AS 8
- the after income tax effect of interest Accounting Policies, Changes in Accounting
and other financing costs associated with Estimates and Errors
dilutive potential equity shares, and • Modified retrospective – Retrospectively, with
- the weighted average number of additional the cumulative effect of initially applying the
equity shares that would have been Standard recognized at the date of initial
outstanding assuming the conversion of all application
dilutive potential equity shares. Under modified retrospective approach, the
lessee records the lease liability as the present
x. Rounding of amounts
value of the remaining lease payments,
All amounts disclosed in the financial discounted at the incremental borrowing rate
statements and notes have been rounded off and the right of use asset either as:
to the nearest Lakhs as per the requirement of • Its carrying amount as if the standard had been
Schedule III, unless otherwise stated. applied since the commencement date, but
discounted at lessee’s incremental borrowing
2.1 Recent accounting pronouncements
rate at the date of initial application or
Effective date for application of the following • An amount equal to the lease liability, adjusted
amendments is annual period beginning on or by the amount of any prepaid or accrued lease
after 1st April 2019. The Company is currently payments related to that lease recognized
evaluating the effect of these amendments on under Ind AS 17 immediately before the date
the financial statements. of initial application.
Certain practical expedients are available
Ind AS 116 - Leases :
under both the methods.
On 30th March 2019, Ministry of Corporate Affairs
Ind AS 12 Appendix C, Uncertainty over Income
has notified Ind AS 116, Leases. Ind AS 116 will
Tax Treatments :
replace the existing leases Standard, Ind AS 17
Leases, and related Interpretations. The Standard On 30th March 2019, Ministry of Corporate Affairs
sets out the principles for the recognition, has notified Ind AS 12 Appendix C, Uncertainty
measurement, presentation and disclosure of over Income Tax Treatments which is to be applied
leases for both parties to a contract i.e., the lessee while performing the determination of taxable
and the lessor. Ind AS 116 introduces a single profit (or loss), tax bases, unused tax losses,
lessee accounting model and requires a lessee unused tax credits and tax rates, when there is
to recognize assets and liabilities for all leases uncertainty over income tax treatments under
with a term of more than twelve months, unless Ind AS 12. According to the appendix, companies
the underlying asset is of low value. Currently, need to determine the probability of the relevant
operating lease expenses are charged to the tax authority accepting each tax treatment, or

AVANTI FEEDS LIMITED 123

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

group of tax treatments, that the companies issued amendments to Ind AS 19, ‘Employee
have used or plan to use in their income tax filing Benefits’, in connection with accounting for plan
which has to be considered to compute the most amendments, curtailments and settlements.
likely amount or the expected value of the tax
treatment when determining taxable profit (tax The amendments require an entity:
loss), tax bases, unused tax losses, unused tax
• to use updated assumptions to determine
credits and tax rates.
current service cost and net interest for
The standard permits two possible methods of the remainder of the period after a plan
transition - amendment, curtailment or settlement; and

i) Full retrospective approach – Under this approach, • to recognise in profit or loss as part of past
Appendix C will be applied retrospectively to each service cost, or a gain or loss on settlement,
prior reporting period presented in accordance any reduction in a surplus, even if that surplus
with Ind AS 8 – Accounting Policies, Changes in was not previously recognised because of the
Accounting Estimates and Errors, without using impact of the asset ceiling
hindsight and
Ind AS 23 – Borrowing Costs :
ii) Retrospectively with cumulative effect of
The amendments clarify that if any specific
initially applying Appendix C recognized by
borrowing remains outstanding after the related
adjusting equity on initial application, without
asset is ready for its intended use or sale, that
adjusting comparatives.
borrowing becomes part of the funds that an
Ind AS 12 – Income taxes : entity borrows generally when calculating the
capitalisation rate on general borrowings.
On 30th March 2019, Ministry of Corporate Affairs
issued amendments to the guidance in Ind AS 12, Ind AS 28 – Long-term Interests in Associates
‘Income Taxes’, in connection with accounting for and Joint Ventures :
dividend distribution taxes.
The amendments clarify that an entity applies
The amendment clarifies that an entity shall Ind AS 109 Financial Instruments, to long-term
recognise the income tax consequences of interests in an associate or joint venture that form
dividends in profit or loss, other comprehensive part of the net investment in the associate or joint
income or equity according to where the entity venture but to which the equity method is not
originally recognised those past transactions or applied.
events.
Ind AS 103 – Business Combinations and Ind AS
Ind AS 109- Prepayment features with Negative 111 – Joint Arrangements :
compensation :
The amendments to Ind AS 103 relating to re-
The amendments relate to the existing measurement clarify that when an entity obtains
requirements in Ind AS 109 regarding termination control of a business that is a joint operation, it
rights in order to allow measurement at amortised
re-measures previously held interests in that
cost (or, depending on the business model, at fair
business. The amendments to Ind AS 111 clarify
value through other comprehensive income) even
that when an entity obtains joint control of a
in the case of negative compensation payments.
business that is a joint operation, the entity does
Ind AS 19 – Plan amendment, curtailment or not re-measure previously held interests in that
settlement : business.

On 30th March 2019, Ministry of Corporate Affairs

124 ANNUAL REPORT 2018-19

 3. Property, plant and equipment and capital work -in-progress
1-25

Capital
Land Lab Furniture Total
Build- Plant & Wind Electrical Office Comput- Motor work - in
- Free Roads equip- and fix- tangible
ings machinery mills Installation equipment ers vehicles - pro-
hold ments tures assets
gress
As at 31st 1,338.13 3,306.15 221.18 6,541.28 649.31 1,317.79 240.74 92.08 50.03 116.14 634.86 14,507.26 -
Company Overview

March, 2017
Additions 517.49 22.38 9.15 3,789.58 - 679.29 36.60 27.22 66.77 5.69 98.96 5,253.12 4,442.14
Disposals - - - 16.08 - 0.76 3.08 0.85 14.08 0.01 17.71 52.57 4,429.56
26-97

As at 31st 1,855.62 3,328.53 230.33 10,314.78 649.31 1,996.32 274.26 118.45 102.72 121.82 716.11 19,707.81 12.58
March, 2018
Additions 63.88 - - 134.27 - 11.21 27.93 51.18 23.41 23.64 247.39 582.92 779.86
Disposals 12.74 4.00 - 6.55 - 1.42 0.74 0.70 2.21 0.02 117.79 146.16 -
Statutory Reports

As at 31st 1,906.76 3,324.53 230.33 10,442.50 649.31 2,006.11 301.45 168.93 123.92 145.44 845.71 20,144.58 792.44
March, 2019
Depreciation
98-214

Upto 31st - 80.06 17.44 703.92 54.12 133.61 22.17 21.22 19.97 15.01 70.33 1,137.85 -
March , 2017
Charge for - 109.88 27.64 940.80 54.12 157.41 27.95 22.15 21.08 14.20 89.47 1,464.71 -
the year
Disposals - - - 5.06 - 0.30 0.82 0.19 9.45 0.01 5.16 20.99 -
Financial Statements

Upto 31st - 189.94 45.08 1,639.66 108.24 290.72 49.30 43.18 31.60 29.20 154.64 2,581.57 -
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

March 2018
Charge for - 108.30 28.38 1,403.88 54.12 222.37 32.55 25.87 34.57 15.22 99.82 2,025.09 -
the year
Disposals - 0.43 - 2.20 - 0.51 0.34 0.66 2.11 0.02 41.20 47.47 -
Upto 31st - 297.81 73.46 3,041.34 162.36 512.58 81.51 68.39 64.06 44.40 213.26 4,559.18 -
March 2019

Net block
As at 31st 1,855.62 3,138.58 185.25 8,675.12 541.07 1,705.59 224.95 75.27 71.12 92.62 561.47 17,126.24 12.58
March 2018
As at 31st 1,906.76 3,026.71 156.87 7,401.16 486.95 1,493.53 219.93 100.54 59.86 101.04 632.45 15,585.40 792.44
Notes to Financial Statements for the year ended 31st March 2019

March 2019

Notes:
i) Refer to note 18 for information on property, plant and equipment pledged as security by the company.

AVANTI FEEDS LIMITED

ii) Refer to note 34 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

125
 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

4. Intangible assets
Description of Assets Computer software
Gross carrying amount as at 31 March 2017
st
4.72
Additions 5.71
Disposals -
Gross carrying amount as at 31st March 2018 10.43
Additions 15.34
Disposals -
Gross carrying amount as at 31st March 2019 25.77
Depreciation
Balance as at 31st March 2017 2.48
Amortisation expense for the year 2.11
Disposals -
Balance as at 31st March 2018 4.59
Amortisation expense for the year 3.22
Disposals -
Balance as at 31st March 2019 7.81
Net Carrying amount
Balance as at 31st March 2018 5.84
Balance as at 31st March 2019 17.96

5. Investments:
As at As at
31st March 31st March
2019 2018
a) Non - Current investments (Refer note (i) below)
Investments carried at cost
(i) Equity instruments of subsidiaries (unquoted) 8,461.00 8,461.00
(ii) Equity instruments of associated companies (unquoted) 2,735.06 2,735.06
(iii) Equity instruments of other entities (unquoted) 109.18 12.00
Investment carried at fair value through profit and loss
(i) Equity instruments of other entities (quoted) 2.81 3.76
(ii) Investments in Non Convertible Debentures (quoted) 6,641.53 -
Total 17,949.58 11,211.82
b) Current investments
Investment carried at fair value through profit and loss
(Refer note (ii) below)
(i) Investments in Mutual Funds (quoted) 47,167.71 54,215.33
Investment carried at amortised cost
(i) Investments in Secured Bonds - quoted
LIC Housing Finance Ltd 2019 (secured) bonds 2,609.27 -
(ii) Investments in Non Convertible Debentures- quoted
HDFC Ltd SR-M 015 9.45 NCD 2,121.12 -
Total 51,898.10 54,215.33

126 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 31st March
2019 2018
Note (i): Details of non-current investments
Equity instruments of subsidiaries (unquoted)
Svimsan Exports & Imports Private Limited
10,00,000 (31st March 2018: 10,00,000) equity shares of `.10/- each fully paid 100.00 100.00
up
Less: Provision for diminution in the value of investment (refer note 29) (100.00) (100.00)
Avanti Frozen Foods Private Limited
60,10,000 (31st March 2018 : 60,10,000) equity shares of ` 10/- each fully 8,461.00 8,461.00
paid up )
Total (A) 8,461.00 8,461.00
Equity instruments of associate companies (unquoted)
Srivathsa Power Projects Limited
1,66,93,630 (31st March 2018: 1,66,93,630) equity shares of `10/- each fully 1,670.54 1,670.54
paid up
Patikari Power Private Limited *
1,06,45,200 (31st March 2018: 1,06,45,200) equity shares of `10/- each fully 1,064.52 1,064.52
paid up
*Out of 1,06,45,200 equity shares, 42,50,000 shares have been pledged
with respect to loan taken by Patikari Power Private Limited from
consortium of banks led by State Bank of India.
Total (B) 2,735.06 2,735.06
Equity instruments of other entities (quoted)
IDBI Bank Limited
2,880 (31st March 2018: 2,880) equity shares of `10/- each fully paid up 1.34 2.08
UCO Bank Limited
7,800 (31st March 2018: 7,800) equity shares of `10/- each fully paid up 1.47 1.68
Total (C) 2.81 3.76
Equity instruments of other entities (unquoted)
Bhimavaram Hospitals Limited
1,20,000 (31st March 2018: 1,20,000) equity shares of `10/- each fully paid up 12.00 12.00
PT Thai Union Kharisma Lestari
1,99,920 (31st March 2018: NIL) equity shares of IDR 10,000/- each fully paid 97.18 -
up
Total (D) 109.18 12.00
Investments in Non Convertable Debentures (quoted)
HDB Financial Services Ltd Sr A/O(Ml)/1 Br NCD 1,011.40 -
Mahindra And Mahindra Financial Services Ltd As2018 BR NCD 3,106.94 -
Tata Capital Financial Services Ltd Sr Tr A 2018-19 Tr I BR NCD 2,523.19 -
Total (E) 6,641.53 -
Total (A+B+C+D+E) 17,949.58 11,211.82

AVANTI FEEDS LIMITED 127

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 31st March
2019 2018
Aggregate amount of quoted investments and market value thereof 6,644.34 3.76
Aggregate amount of unquoted investments 11,405.24 11,308.06
Aggregate amount of impairment in the value of investments in unquoted 100.00 100.00
equity shares

Note (ii) : Current investments

Investment in quoted mutual funds
SBI - Premier Liquid Fund - NIL (31st March 2018: 757,170.04 units of - 7,596.31
`1,003.25 each)
HDFC Floating Rate Income Fund - STP - Wholesale Growth - 5,152,012 units 1,674.56 1,558.15
of `32.5031 each (31st March 2018: 5,152,012 units of `30.2436 each)
ICICI - Pru - Flexible Income Plan Growth - NIL (31st March 2018: - 5,176.81
1,989,086.936 units of `260.2065 each)
Kotak Low Duration Fund Standard Growth (Regular Plan) - NIL (31st March - 5,473.91
2018: 257840.784 units of `2,122.9824 each)
Birla Sunlife Savings Fund - Growth Regular Plan - 1,486.60 units of ` 5.49 5.08
368.9824 each (31st March 2018: 1,486.60 units of `341.9069 each)
Aditya Birla Sunlife Savings Cash Manager - NIL (31st March 2018: 617,775.12 - 2,579.55
units of ` 417.5546 of each)
Franklin Ultra Short Term Fund - SIP - Growth - 21,636,685.43 units of 5,683.70 5,204.29
`26.2888 each (31st March 2018: 21,636,685.43 units of `24.0531 each)
Baroda Pioneer Treasure Advantage - NIL (31st March 2018: 255,109.993 units - 5,186.75
of `2,033.1430 each)
IDFC Ultra Short Term Fund - 6,305,779.878 units of `26.4976 each (31st 1,670.88 1,552.82
March 2018: 6,305,779 units of `24.6253 each)
IDFC Credit Opportunities Fund - Regular Plan - NIL (31st March 2018: - 2,056.27
19,183,578.17 units of `10.7189 each)
Franklin India Low Duration Fund - Growth - NIL (31st March 2018; - 5,197.00
26,016,733.96 units of `19.9756 each)
Reliance Regular Savings Fund - Debt Plan - G -Option - NIL (31st March - 2,061.69
2018: 8,516,690.584 units of `24.2077 each)
Reliance Corporate Bond Fund - Growth Plan - NIL (31st March 2018: - 2,045.48
14,596,941.94 units of `14.0131 each)
L & T Income Opportunities Fund - NIL (31st March 2018: 10,339,176.19 units - 2,058.26
of `19.9074 each)
Kotak Income Opportunities Fund - Growth Regular - NIL (31st March 2018: - 2,061.47
10,778,765.83 units of `19.1253 each)
Kotak Low Duration Fund - Standard Plan (G)- 343,284.732 units of 7,849.05 1,814.07
`2,286.4203 each (31st March 2018: 85,448.948 units of `2,122.9824 each)

128 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 31st March
2019 2018
Reliance Money Manager - Growth Plan Growth Option - NIL (31st March - 2,587.41
2018: 108053.089 units of `2,394.5731 each)
IDFC Arbitrage Fund-Monthly Dividend (R.P.) - 28,465,906.623 units of 3,625.76 -
`12.7372 each (31st March 2018: NIL)
Kotak Equity Arbitrage Fund - Regular (DRI) - 20,754,414.483 units of 4,787.34 -
`23.0666 each (31st March 2018: NIL)
Reliance Arbitrage Advantage Fund - Regular (DIR) - 86,216,525.637 units 9,161.63 -
of `10.6263 each (31st March 2018: NIL)
Reliance Liquid Fund-Treasury plan (G) - growth option(LFIGG) - 2,163.75 -
47,688.022 units of `4,539.2103 each (31st March 2018: NIL)
SBI Magnum Low Duration Fund - 243,093.077 units of `1,010.54 each (31st 2,456.56 -
March 2018: NIL)
SBI Magnum Ultra Short Duration Fund - 482,917.040 units of `1,675.03 8,089.01 -
each (31st March 2018: NIL)
47,167.71 54,215.33

Total current investments

Aggregate amount of quoted investments and market value thereof 51,898.10 54,215.33
Aggregate amount of unquoted investments - -
Aggregate amount of impairment in the value of investments - -

6. Loans :
As at As at
Description of Assets
31st March 2019 31st March 2018
a.) Non Current
Unsecured, considered good
Loans to employees 91.86 58.60
91.86 58.60
As at As at
31st March 2019 31st March 2018
b.) Current
Unsecured, considered good
Loans to employees 88.27 90.03
Unsecured, considered doubtful
Loans to wholly owned subsidiary 91.84 91.40
Less: Allowance for doubtful loans (91.84) (91.40)
88.27 90.03

AVANTI FEEDS LIMITED 129

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

7. Other Financial Assets :

As at As at
31st March 2019 31st March 2018
Non Current
Unsecured, considered good
Margin Money Accounts* 1.50 26.17
Security deposits 468.04 429.89
Share application money pending allotment 9.51 -
479.05 456.06
*Margin Money deposits with bank of a carrying amount of `1.50 Lakhs (31st March 2018: 26.17 Lakhs) are lien
marked for import L.C.s .

8. Other Assets :
As at As at
31st March 2019 31st March 2018
a.) Non Current
Unsecured, considered good
Capital Advances 142.59 16.00
Taxes paid under protest 121.01 121.01
263.60 137.01
b.) Current
Unsecured, considered good
Prepaid expenses 186.63 176.72
Advance for expenses 38.05 16.71
Export Incentives Receivables 5.03 -
MEIS Licenses on hand 79.32 289.87
Advance to supplier 215.89 333.80
Interest accrued on electricity deposits 23.59 19.84
548.51 836.94

9. Inventories (valued at lower of cost or net realizable value)

As at As at
31st March 2019 31st March 2018
Raw materials (includes goods in transit)
-in godown 16,159.71 31,762.68
-in goods in transit 212.91 183.50
Packing materials 537.92 266.79
Work-in-progress 515.12 678.65
Finished goods 3,215.80 4,332.59
Stores and spares 1,841.59 1,568.63
22,483.05 38,792.84

130 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

10. Trade receivables

As at As at
31st March 2019 31st March 2018
Secured, considered good 1,141.10 1,723.73
Unsecured, considered good 468.31 189.58
1,609.41 1,913.31

11. Cash and cash equivalents

As at As at
31st March 2019 31st March 2018
Balances with banks:
- in current accounts 1,195.81 558.77
Cash in hand 10.13 21.82
1,205.94 580.59

12. Other bank balances

As at As at
31 March 2019
st
31 March 2018
st

- Deposit Accounts 12,114.23 0.77

- Unpaid dividend accounts 180.28 129.94
- Margin money accounts * 569.88 633.26
12,864.39 763.97

*Margin money deposits given as security

Margin Money deposits with bank of a carrying amount of `569.88 Lakhs (31st March 2018: 633.26
Lakhs) are lien marked for import L.C.s and for issuance of SBLC for Anti Dumping Duty purpose to
US Customs Authorities.

13. Equity share capital

As at As at
31st March 2019 31st March 2018
Authorised share capital:
15,85,00,000 equity shares of `1/- each (31st March 2018: 1,585.00 1,585.00
7,92,50,000 equity shares of `2/- each)
Issued, subscribed and fully paid up capital:
13,62,45,630 equity shares of `1/- each (31st March 2018: 1,362.46 908.30
4,54,15,210 equity shares of `2/- each)*
Total 1,362.46 908.30

*The Board of Directors of the Company at its meeting held on 09.05.2018, recommended a proposal
for sub division of each equity share of `2/- into two (2) equity shares of ` 1/- each and issue of bonus
equity shares in the ratio of 1:2 (after sub division of shares). The split and issue of bonus equity shares
resulted in increase in number of shares from 4,54,15,210 equity shares of `2/- each to 13,62,45,630
equity shares of `1/- each. The Company allotted 4,54,15,210 equity shares as fully paid up bonus shares
by capitalisation of profits transferred from securities premium reserve amounting to `438 Lakhs and
general reserve amounting to `16.15 Lakhs. which was approved by the shareholders by means of a
special resolution through E.G.M. held on 14.06.2018.

AVANTI FEEDS LIMITED 131

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Notes:
(a) Reconciliation of the number of shares outstanding:
Number of shares Amount
Balance at 1st April 2017 4,54,15,210 908.30
Shares issued during the year - -
Balance at 31st March 2018 4,54,15,210 908.30
Shares issued during the year 9,08,30,420 454.16
Balance at 31st March 2019 13,62,45,630 1,362.46

(b) Details of shareholders holding more than 5% shares in the Company

As at 31st March 2019 As at 31st March 2018
% holding % holding
Name of the shareholder Number of Number of
of equity of equity
shares held shares held
shares shares
Equity shares of `1/- each fully paid up
(31st March 2018: `2/- each)
1. Srinivasa Cystine Private Limited 3,62,99,115 26.64 1,20,99,705 26.64
2. Thai Union Group Public Company Limited 2,10,30,630 15.44 70,10,210 15.44
3. Thai Union Asia Investment Holding Limited 1,19,54,826 8.77 42,74,675 9.41
4. Alluri Indra Kumar 83,30,700 6.11 27,76,900 6.11
5. Alluri Indra Kumar (HUF) 81,89,250 6.01 27,29,750 6.01

As per records of the Company, including its register of shareholders/ members and other declaration
received from shareholders regarding beneficial interest, the above shareholding represent both legal
and beneficial ownerships of shares.

(c) Rights attached to equity shares:

The Company has only one class of equity shares having par value of `1/- per share (31st March 2018:
`2/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares
and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.

(d) Equity shares movement during the 5 years preceding 31st March 2019 on account of Equity
shares issued as bonus
The Company allotted 4,54,15,210 equity shares as fully paid up bonus shares by capitalisation of profits
transferred from securities premium reserve amounting to `438 Lakhs and general reserve amounting
to `16.15 Lakhs, which was approved by the shareholders by means of a special resolution through E.G.M.
held on 14.06.2018.

14. Other equity

As at As at
31st March 2019 31st March 2018
General reserve 15,065.72 13,081.87
Securities premium account - 438.00

132 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
Retained earnings 89,800.23 79,360.55
Total other equity 1,04,865.95 92,880.42
General Reserve
Balance at beginning of year 13,081.87 9,081.87
Less: Utilised for bonus (16.15) -
Transferred from surplus in statement of profit and loss 2,000 4,000.00
Balance at end of year 15,065.72 13,081.87
Securities premium
Balance at beginning of year 438.00 438.00
Less: Utilised for Bonus (438.00)
Balance at end of year - 438.00
Retained earnings
Balance at beginning of year 79,360.55 46,902.76
Profit attributable to owners of the Company 22,349.48 41,493.85
Other comprehensive income (54.72) (116.60)
Transfer to general reserve (2,000) (4,000.00)
Dividend (including dividend distribution tax) (9,855.07) (4,919.46)
Balance at end of year 89,800.23 79,360.55

General Reserve:
The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another and is
not an item of other comprehensive income, items included in the general reserve will not be reclassified
subsequently to statement of profit and loss. The reserve is utilised for Bonus issue in accordance with
the provisions of Companies Act 2013.

Securities premium:
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised for
Bonus issue in accordance with the provisions of Companies Act 2013.

15. Other financial liabilities

As at As at
31st March 2019 31st March 2018
a.) Non - Current
Security deposits* 374.50 374.50
Total 374.50 374.50
b.) Current
Unpaid dividend 180.28 129.94
Creditors for capital works 8.91 -
Derivative financial liabilities 10.12 -
Total 199.30 129.94
*Security Deposits taken from dealers for supplying them shrimp feed on credit term. These deposits
carry an interest of @ 9% per annum (31st March 2018: 9% p.a.)

AVANTI FEEDS LIMITED 133

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

16. Provisions
As at As at
31st March 2019 31st March 2018
Provisions (refer note 39)
Provision for gratuity 142.55 218.16
Provision for leave encashment 79.89 102.30
222.44 320.46
a. Non - Current portion 104.76 156.42
b. Current portion 117.68 164.04
Total 222.44 320.46

17. Other Liabilities :

As at As at
31 March 2019
st
31 March 2018
st

Current
Advance from customers 2,503.11 2,873.14
Statutory dues 140.91 216.41
Total 2,644.02 3,089.55

18. Current borrowings :

As at As at
31st March 2019 31st March 2018
Secured:
Working capital loan - -
Total - -

(a) Working Capital loans of `NIL (31st March 2018 `NIL) was availed from State Bank of India, Industrial
Finance Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge
on fixed assets of the Company and personal guarantee of Mr.A.Indra Kumar, Chairman and Managing
Director of the Company. The loan is repayable on demand and carries interest @8.70% p.a.
(b) Working capital loans of Rs.Nil (31st March 2018 Rs.Nil) was availed from Cooperative Rabobank
U.A., Mumbai. The loan is secured by first charge on all current assets and second charge on fixed assets
of the Company. The loan is repayable on demand and carries interest @8.50% p.a
Note: Debit balance in cash credit accounts as at 31st March 2019 have been grouped under the head
”Cash and Cash equivalents”
The Company has unutilised cash credit limits of Rs.5500.00 lakhs and Rs. 2000 lakhs as of 31st March
2019 from State bank of India, Industrial Branch, Hyderabad and Rabobank U.A., Mumbai, respectively
for working capital requirements. The company has the right to draw upon this line of credit based on
its working capital requirements.
19. Trade payable
As at As at
31st March 2019 31st March 2018
Dues to micro enterprises and small enterprises (Refer Note 787.26 1,464.56
below)
Dues to creditors other than micro enterprises and small 15,134.52 25,780.77
enterprises
15,921.78 27,245.33

Dues to micro and small enterprises:

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company

134 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the
specified period irrespective of the terms with the suppliers. The Company has circulated letter to all
suppliers seeking their status. Response from few suppliers has been received and is still awaited from
other suppliers. In view of this, the liability of interest calculated and the required disclosures made, in
the below table, to the extent of information available with the Company.

As at As at
31st March 2019 31st March 2018
Principal amount remaining unpaid to any supplier as at the end 786.37 1,464.56
of the accounting year
Interest due thereon remaining unpaid to any supplier as at the 0.89 -
end of the accounting year
The amount of interest paid along with the amounts of the - -
payment made to the supplier beyond the appointed day
The amount of interest due and payable for the period of delay - -
in making payment (which have been paid but beyond the
appointed day during the year) but without adding the interest
specified under this Act
The amount of interest accrued and remaining unpaid at the end 0.89 -
of the accounting year
The amount of further interest due and payable even in the 0.89 -
succeeding year, until such date when the interest dues as above
are actually paid
20. Income Taxes :
20 (a) Deferred taxes
For the year ended 31st March 2019
Recognised
Recognised
Opening in Other Closing
in profit or
Balance comprehensive balance
loss
income
Deferred tax liabilities/(assets) in relation to
Depreciation and amortisation 1,214.38 43.39 - 1,257.77
Fair valuation of Investments 657.87 194.45 - 852.32
Fair valuation of derivative instruments - (3.54) - (3.54)
Others 0.79 (0.32) 0.47
Total : 1,873.04 233.98 - 2,107.02

For the year ended 31 March 2018

st

Recognised
Recognised
Opening in Other Closing
in profit or
Balance comprehensive balance
loss
income
Deferred tax liabilities/(assets) in relation to
Depreciation and amortisation 1,000.53 213.85 - 1,214.38
Fair valuation of Investments 129.62 528.25 - 657.87
Fair valuation of derivative instruments 31.18 (31.18) - -
Others (2.07) 2.86 0.79
Total 1,159.26 713.78 - 1,873.04

AVANTI FEEDS LIMITED 135

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

20 (b) Non-current Tax Assets

As at As at
Particulars
31st March 2019 31st March 2018
Non-current tax assets (net of provision for tax) 1,819.91 620.38
Total 1,819.91 620.38

20 (c) Tax expense recognised in Statement of Profit and Loss

For the year ended For the year ended
Particulars
31st March 2019 31st March 2018
Current tax
In respect of the current year 11,171.46 20,707.55
In respect of the earlier years (187.72)
10,983.74 20,707.55
Deferred tax
In respect of the current year 233.98 713.78
233.98 713.78
Total tax expense 11,217.72 21,421.33

20 (d) - Tax Expense recognised in Other comprehensive income

For the year ended For the year ended
Particulars
31st March 2019 31st March 2018
Deferred tax
In respect of the current year - -
- -

20(e) - Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
Year ended For the year ended
31st March 2019 31st March 2018
Profit before tax 33,567.20 62,915.18
Income tax expense calculated at 34.944% (2017-2018; 11,729.72 21,773.68
34.608%)
Impact of expenses that are not deductible (taxable) in
determining taxable profit
Weighted average deduction under u/s 35CCC - (85.50)
Exempt income (521.43) (349.54)
Deduction u/s 80IA of Income Tax Act, 1961* (27.74) (37.60)
Interest on Income tax 8.93
Corporate Social Responsibility & Donations 82.51 -
Earlier taxes (187.72) -
Interest on MSMED 0.31
Opening DTL on impact of rate change 18.18 -
14A disallowance 106.26 85.24
Others 8.70 35.05
Income tax expense recognised in profit or loss 11,217.72 21,421.33

* The Company has been availing deduction under Section 80IA of the Income Tax Act 1961 for setting
up of Wind mills for power generation at Lakkihalli, Chitradurga district, Karnataka, from the financial
year 2011-2012. The tax benefit on account of deduction under Section 80IA for the year ended
31st March 2019 is `27.74 Lakhs (year ended 31st March 2018: `37.60 Lakhs)

136 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

21 Revenue from operations

For the year ended For the year ended

31st March 2019 31st March 2018
Sale of Products
Finished goods - Shrimp Feed - Domestic 2,73,669.38 2,81,264.15
Finished goods - Shrimp Feed - Exports 167.93 -
Export Incentives 5.03 -
Trading goods - 268.74
Total 2,73,842.34 2,81,532.89

22 Other income (net)

For the year ended For the year ended

31st March 2019 31st March 2018
Interest income on
Bank deposits 292.04 27.32
Bonds & Debentures 201.98 -
Others 25.01 38.02
Dividend income from investments mandatorily measured 1,492.18 1,010.01
at fair value through profit or loss
Profit on sale of mutual funds 1,686.20 668.65
Exchange differences (net) - 19.33
Other non-operating income 234.62 239.80
Fair Value gain/(Loss)on derivative instruments (10.12) -
Fair value gain/(loss) on financial instruments measured at 537.24 1,528.66
fair value through profit and loss
Amortization of government grant - 23.13
Total 4,459.15 3,554.92

23 Cost of materials consumed

For the year ended For the year ended
31st March 2019 31st March 2018
Inventory at the beginning of the year 32,212.97 22,855.09
Add: Purchases 2,06,765.90 2,09,783.50
2,38,978.87 2,32,638.59
Less: Inventory at the end of the year 16,910.53 32,212.97
Cost of materials consumed 2,22,068.34 2,00,425.62

Details of purchase of traded goods:

For the year ended For the year ended
31st March 2019 31st March 2018
Qty in MT Value Qty in MT Value
Inventory at the beginning of the year
Packing material - - - 4.97
Stores & Spares - - - 266.88
- - - 271.85

AVANTI FEEDS LIMITED 137

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

24 Changes in inventories of finished goods and work-in-progress

For the year ended For the year ended

31st March 2019 31st March 2018
Closing Stock:
Finished goods 3,215.80 4,332.59
Work-in-progress 515.14 678.66
3,730.94 5,011.25
Opening Stock:
Finished goods 4,332.60 4,147.20
Work-in-progress 678.66 280.80
5,011.26 4,428.00
Net(increase) /decrease 1,280.32 (583.25)

25 Employee benefits expense

For the year ended For the year ended

31st March 2019 31st March 2018
Salaries, wages and bonus 7,710.15 9,222.46
Contribution to provident and other funds 363.75 316.50
Gratuity expense 87.82 101.56
Staff welfare expenses 121.83 117.38
8,283.55 9,757.90

26 Finance costs
For the year ended For the year ended
31st March 2019 31st March 2018
Interest expense
- Interest on bank overdrafts and loans 15.64 12.51
- Interest on income tax 25.55 -
Other borrowing costs 83.39 111.92
Total 124.58 124.43

27 Depreciation and amortisation expense

For the year ended For the year ended
31st March 2019 31st March 2018
Depreciation of property, plant and equipment 2,025.09 1,464.71
Amortisation of intangible assets 3.22 2.11
2,028.31 1,466.82

28 Other expenses
For the year ended For the year ended
31st March 2019 31st March 2018
Rent [refer note (i)] 198.39 146.01
Power & fuel 3,544.95 3,518.44
Repairs & maintenance
- Buildings 187.02 76.36

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
- Plant & machinery 124.44 81.19
- Others 19.82 7.62
Consumable stores 1,346.80 1,280.99
Other manufacturing expenses 1,852.85 1,541.63
Rates & taxes 168.70 225.14
Insurance 155.96 152.57
Electricity charges 8.59 8.65
Vehicle maintenance 72.41 56.30
Travelling & conveyance 533.46 450.81
Communication costs 56.57 42.33
Printing & stationery 34.46 31.16
Directors' sitting fees 22.74 8.70
Auditors remuneration [refer note (ii)] 35.92 27.40
Professional charges 149.70 160.92
Corporate social responsibility [refer note (iii)] 496.80 605.03
Donations 17.00 5.02
Bank charges 48.70 48.52
Assets written off 6.04 18.37
Advertisement charges 15.24 14.44
Carriage outward 130.49 285.99
Marketing expenses 548.75 301.15
Royalty 1,049.29 1,271.10
Loss on sale of fixed assets 22.97 3.04
Exchange Fluctuation (Net) 295.00 -
Bad debts written off - 19.14
General expenses 324.39 241.94
Total 11,467.45 10,629.96

Notes:
i) Operating leases:
Lease payments made under operating leases aggregating to `198.39 Lakhs (31st March 2018:`146.01
Lakhs) have been recognized as an expense in the Statement of Profit and Loss. The future minimum
lease commitments under non-cancellable operating leases are Nil .
For the year ended For the year ended
31st March 2019 31st March 2018
ii) Auditors' remuneration comprises of:
As Auditors 23.60 18.88
Tax matters - -
Other services 6.80 4.72
Reimbursement of expenses 5.52 3.80
Total 35.92 27.40

AVANTI FEEDS LIMITED 139

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
iii) Corporate Social Responsibility
Agricultural extension projects - 494.08
Others 496.80 110.95
Total 496.80 605.03

29 Exceptional items :
For the year ended For the year ended
31st March 2019 31st March 2018
Income :
Anti Dumping duty refund 518.70 -
518.70 -
Less : Expenditure
Provision for doubtful loan 0.44 0.42
Anti Dumping duty - 78.88
0.44 79.30
518.26 (79.30)

The exceptional item of `518.26 Lakhs for the year ended 31st March 2019 includes refund of differential
anti dumping duty of `518.70 Lakhs paid (net of expenses) on final determination by the Department of
Commerce, USA on the exports made by the company during the financial years from 2015-2016 & 2016-
2017 and provision for doubtful advance `0.44 Lakhs given to wholly owned subsidiary Svimsan Exports
& Imports Private Limited (SEIPL). (Previous Year `79.30 Lakhs includes differential anti dumping duty
`78.88 Lakhs and provision for doubtful advances given to SEIPL `0.42 Lakhs.)

30 Fair value measurements

As at 31st March 2019 As at 31st March 2018

Financial instruments by category Amortised Amortised
FVPL FVPL
Cost Cost
Financial assets
Investments
- in equity instruments
- Quoted - 2.81 - 3.76
- Unquoted 109.18 - 12.00 -
- in mutual funds - 47,167.71 - 54,215.32
- in Secured Bonds 2,609.27 - - -
- Non Convertible debentures 2,121.12 6,641.53 - -
Trade receivables 1,609.41 - 1,913.31 -
Cash and cash equivalents 1,205.94 - 580.59 -
Other bank balances 12,865.89 - 790.14 -
Loans 180.13 - 148.63 -
Security deposits 468.04 - 429.89 -
Total financial assets 21,168.98 53,812.05 3,874.56 54,219.08

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

31st March 2019 31st March 2018

Amortised Amortised
FVPL FVPL
Cost Cost
Financial Liabilities
Borrowings - - - -
Current maturities of long term debt from banks - - - -
Interest accrued but not due on borrowings - - - -
Security deposits 374.50 374.50 -
Trade payables 15,921.78 - 27,245.33 -
Derivative financial instrument - 10.12 - -
Capital creditors 8.91 - - -
Total Financial Liabilities 16,305.19 10.12 27,619.83 -

(i) Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered to be
same as their fair values, due to their short term nature. In absence of specified maturity period, the
carrying amount of the non-current financial assets and non-current financial liabilities such as security
deposits, are considered to be same as their fair values.

With respect to Corporate Guarantees, the management has determined the fair value of such guarantee
contracts as ‘Nil’ as the subsidiary company is not being benefited significantly from such guarantees.

The fair value of quoted equity investments, has been classified as Level 1 in the fair value hierarchy
as the fair value has been determined on the basis of market value. The fair value of unquoted equity
instruments has been classified as Level 2 in the fair value hierarchy as the fair value has been determined
on the basis of discounted cash flows. The fair value of mutual funds is classified as Level 2 in the fair
value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared
by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the
fair value hierarchy as the fair value has been determined on the basis of mark-to-market provided
by the Bank from which the contract has been entered. The corresponding changes in fair value of
investment is disclosed as ‘Other Income’.

31 Financial Risk Management

The Company activities expose it to market risk, liquidity risk and credit risk. This note explains the
sources of risk which the Company is exposed to and how the Company manages the risk

Exposure arising
Risk Measurement Management
from
Credit Risk Cash and cash Ageing analysis Credit monitoring for customers.
equivalents, trade credit ratings of Diversification of bank deposits.
receivables, security customers and
deposits, other bank subsidiaries
deposits and loans
Liquidity Risk Borrowings Cash flow forecasts Working capital management by Deputy
managed by Joint General Manager in under the guidance
Managing Director of Joint Managing Director.
(JMD). The excess liquidity is channelised
through mutual funds and bank deposits.

AVANTI FEEDS LIMITED 141

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Exposure arising
Risk Measurement Management
from
Market Risk - Long term Sensitivity analysis Capital is managed by Joint Managing
interest rate borrowings at Director.
variable rate The capital requirements are managed
by analyzing the funds requirement and
budgets in conjunction with the strategic
plan.
Market Risk - From investment in Market and price The portfolio is not large and the risk is
Price risk equity shares sensitivity analysis. not significant.
Market Risk Future commercial Cash flow Forward foreign exchange contracts
- foreign transactions forecasting
exchange rate (receivable/ Sensitivity analysis
payables)

The Company’s risk management is carried out by asset as at the reporting date with the risk of
the JMD under policies approved by the Board of default as at the date of initial recognition. It
Directors. The Board provides guiding principles considers available reasonable and supportive
for overall risk management, as well as policies forwarding-looking information. The below
covering specific areas such as interest rate risk, factors are considered:
credit risk and investment of excess liquidity. - external credit rating (as far as available)

Credit Risk - actual or expected significant adverse

changes in business, financial or economic
(i) Credit Risk Management
conditions that are expected to cause a
Credit risk arises from cash and cash significant change to the borrower’s ability
equivalents, loans, security deposits and to meet its obligations.
deposits with banks and financial institutions,
- actual or expected significant changes in
as well as credit exposures to customers
the operating results of the borrower.
including outstanding receivables.
- significant increase in credit risk on other
Credit risk is managed by the Marketing
financial instruments of the same borrower.
General Manager of the Avanti Feeds Limited.
The Company has few customer with most of - Significant changes in the expected
them being foreign customers. The Company performance and behaviour of the borrower,
provides a credit period of 60-90 days which including changes in the payment status of
is in line with the normal industry practice. the borrower in the Company and changes
The Marketing GM undertakes the credit in operating results of the borrower.
analysis of each customer before transacting. Macro economic information (such as regulatory
The finance team under the guidance of changes, market interest rate or growth rates) is
Marketing GM also periodically review the incorporated as part of the internal rating model.
credit rating of the customers and follow up In general, it is presumed that credit risk has
on long outstanding invoices. significantly increased since initial recognition if
The Company considers the probability of the payments are more than 180 days past due.
default upon initial recognition of asset and
A default on a financial asset is when the
whether there has been a significant increase
counterparty fails to make contractual payments
in credit risk on going basis through out each
within 365 days of when they fall due. This
reporting period. To assess whether there is a
definition of default is determined by considering
significant increase in credit risk the Company
the business environment in which the entity
compares the risk of a default occurring on the
operates and other macro-economic factors.

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(ii) Provision for expected credit losses

The Company provides for expected credit loss based on the following:
Basis for recognition of expected credit loss
provision
Category Description of category
Loans and Trade
Investments
deposits receivables
High quality Assets where there is low risk of 12-month 12-month Life time
assets, low default and where the counter party expected credit expected credit expected
credit risk has sufficient capacity to meet the losses losses credit losses
obligations and where there has
been low frequency of defaults in
the past
Medium risk, Assets where the probability of 12-month 12-month Life time
moderate default is considered moderate, expected credit expected credit expected
credit risk counter party where the capacity to losses losses credit losses
meet the obligation is not strong
Doubtful Assets are written off when there Asset is written off
assets, credit is no reasonable expectation
impaired of recovery, such as a debt or
declaring bankruptcy or failing to
engage in are payment plan with
the Company. Where loans or
receivables have been written off,
the Company continues to engage
in enforcement activity to attempt
to recover the receivable due.
Where recoveries are made, these
are recognised in profit or loss

Year Ended 31st March 2019

Expected credit losses for loans, investments, deposits and other receivables from related parties,
excluding trade receivables

Estimated Carrying
Expected Expected
gross carrying amount net of
Particulars Asset Group probability credit
amount at impairment
of default losses
default provision
Loss allowance measured Other bank 12,865.89 0% - 12,865.89
at 12 month expected balances
credit losses - Loans and 271.97 34% 91.84 180.13
Financial assets for advances
which credit risk has not
Security 468.04 0% - 468.04
increased significantly
deposits
since initial recognition

AVANTI FEEDS LIMITED 143

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Year Ended 31st March 2018

Expected credit losses for loans, investments, deposits and other receivables from related parties,
excluding trade receivables

Estimated Carrying
Expected Expected
gross carrying amount net of
Particulars Asset Group probability credit
amount at impairment
of default losses
default provision
Loss allowance measured Other bank 790.14 0% - 790.14
at 12 month expected balances
credit losses - Loans and 240.03 38% 91.40 148.63
Financial assets for advances
which credit risk has not
Security 429.89 0% - 429.89
increased significantly
deposits
since initial recognition

Expected credit loss for trade receivables under simplified approach

Year ended 31st March 2019

181 - 365 More than

Ageing Not due 1-90 days 91-180 days Total
days 365 days
Gross carrying amount 1,574.40 - 25.66 9.35 0 1,609.41
Expected loss rate 0% 0% 0% 0% 0%
Expected credit loss - - - - - -
Carrying amount of 1,574.40 0.00 25.66 9.35 0 1,609.41
trade receivables (net of
impairment)

Year ended 31st March 2018

181 - 365 More than

Ageing Not due 1-90 days 91-180 days Total
days 365 days
Gross carrying amount 1,913.17 0.12 0.02 - - 1,913.31
Expected loss rate 0% 0% 0% 0% 0%
Expected credit loss - - - - - -
Carrying amount of 1,913.17 0.12 0.02 - - 1,913.31
trade receivables (net of
impairment)

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Joint Managing Director monitors rolling forecasts of the Company’s liquidity position and cash and
cash equivalents on the basis of expected cash flows and any excess/short liquidity is managed in the
form of current borrowings, bank deposits and investment in mutual funds.

144 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(i) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments and exclude the impact
of netting agreements.

Contractual cash flows

Carrying More than 5
31st March 2019 Total 0-1 year 1-2 years 2-5 years
amount years
Borrowings - - - - - -
Trade payables 15,921.78 15,921.78 15,921.78 - - -
Derivative financial 10.12 10.12 10.12 - - -
instrument
Capital creditors 8.91 8.91 8.91 - - -
Security deposits 374.50 - - - - -
Total 16,315.31 15,940.81 15,940.81 - - -

Contractual cash flows

Carrying More than 5
31st March 2018 Total 0-1 year 1-2 years 2-5 years
amount years
Borrowings - - - - - -
Trade payables 27,245.33 27,245.33 27,245.33 - - -
Security deposits 374.50 - -
27,619.83 27,245.33 27,245.33 - - -

Market Risk - Interest Risk

The Company’s main interest rate risk arises from long term and short term borrowings with variable
rates, which exposes the Company to cash flow interest rate risk.

The exposure of the Company to interest rate changes at the end of the reporting period are as
follows:

31st March 2019 31st March 2018

Variable rate borrowings - -
Total - -

At the end of the reporting period, the Company had the following variable rate borrowings and
receivables:

31st March 2019 31st March 2018

% of total % of total
Weighted Weighted
outstanding outstanding
Average Balance Average Balance
payable/ payable/
Interest rate % Interest rate %
receivable receivable
Financial Liabilities
Current borrowings - - -
- - -

AVANTI FEEDS LIMITED 145

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Sensitivity

The profit or loss is sensitive to higher/lower interest expense as a result of changes in interest rates.

Impact on profit after tax

31st March 2019 31st March 2018
Interest rate - Increases by 100 basis points - -
Interest rate - Decreases by 100 basis points - -

Market risk - Price risk

The Company’s investments in quoted equity securities is very minimal, hence there is limited exposure
to price risk.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, mainly in
the nature of sales denominated in foreign currencies and other expenditures. As a policy, the Company
does not hedge any of its exposure to foreign currency. The Company’s exposure to foreign currency
risk at the end of the reporting period are as follows:

As at 31st March 2019 As at 31st March 2018

Amount in Amount in Amount in Amount in
Foreign Currency ` (Lakhs) Foreign Currency ` (Lakhs)
Trade and other payables
USD 19,45,337.00 1,345.61 48,83,710.00 3,196.67
Euro - - - -

Advance to suppliers
USD 1,17,625.00 81.36 1,77,116.00 114.27
Euro - - 50,840.00 40.62

Trade Receivables
USD 24,413.00 16.89 - -
Euro - - - -
Balance in EEFC A/c-USD 592960.17 410.16 53,717.26 34.94
Derivatives outstanding Forward
contracts
To buy USD 12,59,750.00 882.88 - -
To sell USD 5,86,445.00 405.56 - -

Share application money

pending allotment
IDR 19,56,18,482.00 9.51 - -

Net exposure (Receivable/ 19,50,81,488.17 (350.53) (46,02,037.00) (3,006.84)

(Payable))
NET Exposure in USD 5,37,033.83 (359.88) (46,52,876.74) (3047.46)

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency
denominated financial instruments, as detailed below

31st March 2019 31st March 2018

Increase in USD rate by 1% (3.60) (30.47)
Decrease in USD rate by 1% 3.60 30.47

32
Capital management

(a) Risk Management

The Company’s objectives when managing capital are to

> safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and

> Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company has been maintaining a steady dividend.

The Company’s capital structure is largely equity based. It monitors capital on the basis of the
following gearing ratio: Net debt divided by Total ‘equity’ (as shown in the balance sheet).

The gearing ratios were as follows:

As at 31st March 2019 As at 31st March 2019
Net debt - -
Total equity 1,06,228.41 93,788.72
Net debt to equity ratio - -

(i)
Debt covenants
Under the terms of the major borrowing facilities, the Company is required to comply with the
following financial covenants:
(b) Dividends
31st March 2019 31st March 2018
Equity shares
i) Final dividend for the year ended 31st March 2018 of `6/- per 8,174.74 4,087.37
equity share of D1/- each (31 March 2017 `9/-per equity share
of D2/- each) per fully paid share.
ii) Dividends not recognised at the end of the reporting period
iii) In addition to the above dividends, since year end the directors 5,449.83 8,174.74
have recommended the payment of a final dividend of `4/- per
fully paid equity share (31st March 2018 – `6/-). This proposed
dividend is subject to the approval of shareholders in the
ensuing annual general meeting.

AVANTI FEEDS LIMITED 147

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

33 Contingent Liabilities

31st March 2019 31st March 2018

Demands raised by customs, service tax, sales tax, income tax 90.04 3,093.59
and other authorities, being disputed by the Company *
Corporate guarantee given under a Multiple Banking 15,000.00 11,506.00
Arrangement to SBI and Axis Bank in favour of loan taken by
Avanti Frozen Foods Private Limited

* Details of demands raised by customs, service tax, sales tax, income tax and other authorities :

Period to which the Forum where

Name of the Statute Nature of the Dues Amount
amount relates dispute is pending
Madhya Pradesh VAT Sales tax (MP VAT 29.22 2005-2006 High Court of
Act, 2002 demand for soya Madhya Pradesh
transactions in 2005-06)
Customs Act, 1962 Customs duty 60.82 2009 -2010 to CESTAT, Chennai
2011-2012
Total 90.04

(i) The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-
06 and used some part for own consumption in manufacturing of shrimp feed and some part
was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya
bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax
department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old
rates and a demand to `29.22 Lakhs was raised. This is being contested by the Company in the High
Court of Madhya Pradesh.

(ii) Company is importing Squid Liver Powder (SLP) which was one of the raw materials for
manufacturing of shrimp feed. SLP was imported by the Company under raw material classification.
However, Customs has disputed our claim and demanding duty applicable for import of complete
feed. Company appealed against the order of Commissioner of Customs (Appeals), Chennai before
CESTAT, Chennai.

The Company is contesting the demands and the management, including its tax advisors, believe
that its position will likely be upheld in the appellate process. No tax expense has been accrued in the
financial statements for the tax demand raised. The management believes that the ultimate outcome
of this proceeding will not have a material adverse effect on the Company’s financial position and
results of operations.

2) The Company has given corporate guarantee of `15000 Lakhs as on 31.03.2019 (`11506 Lakhs as
on 31.03.2018) to State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad and Axis
Bank Limited, Begumpet, Hyderabad for loan facilities availed by Avanti Frozen Foods Private
Limited.

34 Commitments

Estimated amount of contracts remaining to be executed to the extent not provided for (net of
advances) `207.54 Lakhs (31st March 2018: Nil).

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Company Overview Statutory Reports Financial Statements

Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

35 Earnings per share

31st March 2019 31st March 2018

Profit after Tax (PAT)(A) 22,349.48 41,493.84
Weighted average number of equity shares for Basic EPS (B) 13,62,45,630 13,62,45,630
Basic earnings per share (A/B) 16.40 30.46

Note:

There is no dilution to the Basic Earnings per Share as there are no dilutive potential equity shares.

* during the year ended 31st March 2019 the (I) Each equity share of `2/- was split (sub divided) to
two (2) equity shares of `1/- each and (II) bonus equity shares in the ratio of 1:2 (after sub division of
shares) were alloted. The split and issue of bonus equity shares resulted in increase in number of shares
from 4,54,15,210 equity shares of `2/- each to 13,62,45,630 equity shares of `1/- each. Pursuant to sub
division and issue of bonus shares, the weighted average number of shares and earnings per share of
the previous periods have been accordingly re-stated.

36 Corporate social responsibility expenditure

a)  Expenditure related to CSR as per section 135 of companies act, 2013 read with schedule VII thereof,
against the mandatory spend of `757.15 Lakhs.

b) Amount spent during the year on:

As at As at
Particulars
31st March 2019 31st March 2018
Revenue expenditure on CSR activities 496.80 605.03
Total 496.80 605.03

37
Segment reporting

The Company is predominantly engaged in the business of Shrimp feeds and power generation. The
Chairman and Managing Director (CMD) has been identified as the Chief Operating Decision maker
(CODM). There is only one segment in the Company which is Shrimp Feed.

As the Company does not have revenue from any significant external customer amounting to 10% or
more of the Company’s total revenue, the related information as required under paragraph 34 of Ind
AS 108 has not been disclosed.

Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow
shrimp.

Company had installed four wind mills of 3.2MW at Chitradurga, Karnataka. Power generated from
wind mills is sold to BESCOM under Power Purchase agreement.

Segment Revenue and Results

All segment revenues & expenses that are directly attributable to the segments are reported under
the respective segment. The revenues and expenses that are not directly attributable to any segments
are shown as unallocated expenses.

AVANTI FEEDS LIMITED 149

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally
Fixed Assets, Debtors and Inventories. Segment liabilities primarily include creditors and other
liabilities. Assets and Liabilities that cannot be allocated between the segments are shown as a part
of unallocated assets and liabilities respectively.

Shrimp Feed Wind Mills Unallocated Total

Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year
Revenue
External Sales 2,73,706.27 2,81,369.04 136.07 163.85 - - 2,73,842.34 2,81,532.89
Inter-segment - - - - - - - -
sales
Total 2,73,706.27 2,81,369.04 136.07 163.85 - - 2,73,842.34 2,81,532.89
Revenue

Segment
Result
Operating 28,699.37 59,510.56 15.00 53.41 - - 28,714.37 59,563.99
Profit
Other Income 231.37 281.44 9.00 - 4,218.78 3,273.48 4,459.15 3,554.92
Interest 124.58 124.43 - 124.58 124.43
Expense
Exceptional - - - - 518.26 (79.30) 518.26 (79.30)
item
Income tax - - - - - 10,983.74 20,707.55 10,983.74 20,707.55
Current year &
previous year
- Deferred Tax - - - - 233.98 713.78 233.98 713.78

Net Profit 28,806.15 59,667.58 24.00 53.41 (6,480.68) (18,227.13) 22,349.47 41,493.84

Other
Information
Segment 58,412.79 55,812.64 576.41 633.86 68,708.27 70,375.04 1,27,697.47 1,26,821.54
Assets

Segment 15,638.86 25,504.40 - 10.74 5,830.20 7,517.68 21,469.06 33,032.82

Liabilities

Capital 42,773.93 30,308.24 576.41 623.12 62,878.07 62,857.36 1,06,228.41 93,788.72

Employed

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Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

38 Related party disclosures

1. Names of related parties and related party relationship:

Related parties where control exists

Subsidiary Companies Svimsan Exports & Imports Private Limited

Avanti Frozen Foods Private Limited (AFFPL)

Related parties with whom transactions have taken place during the year
Key Managerial Personnel (KMP) Sri A. Indra Kumar, Chairman and Managing Director
Sri C. Ramachandra Rao, Joint Managing Director,
Company Secretary and CFO

Relatives of Key Managerial Personnel Sri A. Venkata Sanjeev, Manager Operations, AFL
Sri A. Nikhilesh Chowdary, Executive Director, AFFPL

Associate Companies Srivathsa Power Projects Limited

Patikari Power Private Limited

Companies in which KMP are interested Srinivasa Cystine Private Limited

SCL Trading Private Limited
Sanjeev Agro Vet Private Limited
Sri Sai Srinivasa Agro Farms & Developers Private Limited

Entities having significant Influence Thai Union Feed Mill Co Ltd, Thailand
over the Company

2. Related party transactions

The following table provides the total amount of transactions that have been entered into with
related parties:
Entities having
Entities where
Key Management significant Associate
Subsidiary KMP are
Personnel Influence over Companies
interested
the Company
Particulars For the year For the year For the year For the year
For the year ended
ended ended ended ended
31st 31st 31st 31st 31st 31st 31st 31st
31st March 31st March
March March March March March March March March
2019 2018
2019 2018 2019 2018 2019 2018 2019 2018
Remuneration 2,887.21 5,098.56 - - - - - - - -
Rent paid 3.07 4.30 - - - - 2.55 2.53
Rent Received - - - - 1.20 1.20 0.49 0.49

AVANTI FEEDS LIMITED 151

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Entities having
Entities where
Key Management significant Associate
Subsidiary KMP are
Personnel Influence over Companies
interested
the Company
Particulars For the year For the year For the year For the year
For the year ended
ended ended ended ended
31st 31st 31st 31st 31st 31st 31st 31st
31st March 31st March
March March March March March March March March
2019 2018
2019 2018 2019 2018 2019 2018 2019 2018
Royalty paid 1,049.29 1,271.10 - - - - - -
Loan given - - - - 0.44 0.42 - - - -
Purchase of
- - - - 1,522.13 1,206.61 - - - -
MEIS
Anti Dumping
- - - - 421.45 - - - - -
Duty refund
Sale of Goods - - - - 316.81 364.68 - - - -
Commission
on corporate - - - - 32.07 8.56 - - - -
guarantee
Corporate
- - - - 15,000.00 11,506.00 - - - -
guarantee given

Year end Balances

Entities having
Key Management significant
Associate Companies Subsidiary
Personnel Influence over the
Particulars Company
As at As at As at As at
31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March
2019 2018 2019 2018 2019 2018 2019 2018
Investment - - - - 2,735.06 2,735.06 8,561.00 8,561.00
Remuneration 2,350.59 4,604.73 - - - - - -
Royalty 180.46 260.52
Loans and advances - - - - - - 420.62 8.56
outstanding
Corporate - - - - - - 15,000.00 11,506.00
guarantee given

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Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

39 Employee Benefits

(i) Leave obligations

The leave obligations cover the Company’s liability earned leave.
Based on past experience, the Company does not expect all employees to take the full amount of
accrued leave or require payment within the next 12 months. The following amounts reflect leave that
is expected to be taken or paid within the next 12 months:
31st March 2019 31st March 2018
Current leave obligations expected to be settled within the next 65.19 -
12 months

(ii) Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund
(at the rate of 12% of basic salary); Employee State Insurance and Superannuation Fund in India
for employees as per regulations. The contributions are made to registered funds administered by
the government. The obligation of the Company is limited to the amount contributed and it has
no further contractual nor any constructive obligation. The expense recognised during the period
towards defined contribution plan is `345.43 Lakhs (31st March 2018 - `316.50 Lakhs)

(iii) 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 15 days salary multiplied for the number of years of service. The
gratuity plan is a funded plan. The Company does not fully fund the liability and maintains a target
level of funding to be maintained over a period of time based on estimations of expected gratuity
payments.

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

31st March 2019 31st March 2018

Particulars Present Fair value Present Fair value
Net Net
value of of plan value of of plan
amount amount
obligation assets obligation assets
Opening balance 502.19 284.03 218.16 273.01 236.50 36.51
Current Service Cost 71.04 - 71.04 54.23 35.32
Past Service Cost - - 44.41 44.41
Interest expense 38.64 38.64 21.83 21.83
Interest income - 21.85 (21.85) 18.91
Contributions - - - -
Total amount recognised in 109.68 21.85 87.83 120.47 18.91 101.56
profit or loss
Remeasurements
Return on plan assets, - 6.04 (6.04) 0.64 (0.64)
excluding amounts included in
interest expense/(income)

AVANTI FEEDS LIMITED 153

 Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

31st March 2019 31st March 2018

Particulars Present Fair value Present Fair value
Net Net
value of of plan value of of plan
amount amount
obligation assets obligation assets
(Gain)/loss from change in 39.32 39.32 -
demographic assumptions
(Gain)/loss from change in - - 9.78 9.78
financial assumptions
Experience (gains)/losses 21.44 21.44 107.45 107.45
Total amount recognised in 60.76 6.04 54.72 117.23 0.64 116.59
other comprehensive income
Employer contributions 218.16 (218.16) 36.50 (36.50)
Benefit payments (9.39) (9.39) - (8.53) (8.53) -
Closing Balance 663.24 520.69 142.55 502.18 284.03 218.16

The net liability disclosed above relates to funded and unfunded plans are as follows:

31st March 2019 31st March 2018

Present value of funded obligations 663.24 502.19
Fair value of plan assets 520.69 284.03
Deficit of funded plan 142.55 218.16
Unfunded plans - -
Deficit of gratuity plan 142.55 218.16

(ii) Significant estimates: actuarial assumptions

The significant actuarial assumptions for defined benefit obligation are as follows:

31st March 2019 31st March 2018

Discount rate 7.70% 7.70%
Salary escalation rate 10.00% 10.00%
Employee attrition rate 5.00% 10.00%
Assumptions regarding mortality rate are set based on actuarial IALM (2006-08) IALM (2006-08)
advice in accordance with published statistics. Ult. Ult.

(iii) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

Decrease in
Change in assumption Increase in assumption
assumption
31st 31st 31 st
31 st
31st 31st
March March March March March March
2019 2018 2019 2018 2019 2018
Discount rate 1.00% 1.00% Decrease by 61.77 31.36 Increase by 72.84 35.40
Attrition rate 1.00% 1.00% Decrease by 22.38 19.12 Increase by 31.41 31.23
Salary 1.00% 1.00% Increase by 64.07 32.21 Decrease by 56.52 29.32
escalation rate

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Notes to Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit
liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared to the prior period.

(iv) The major categories of plan assets are as follows

31st March 2019 31st March 2018
Funds managed by Life Insurance Corporation of India 520.69 284.03
Total 520.69 284.03

(v) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of
which are detailed below:

Asset volatily: The plan liabilities are calculated using a discount rate set with reference to bond yields;
if plan assets underperform this yield, this will create a deficit. The Company’s plan assets are insurer
managed funds and are subject to less material risk.

Changes in bond yields: A decrease in bond yields will increase plan liabilities and the Company ensures
that it has enough reserves to fund the liability

(vi) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans for the year ending ‘31 March 2020 is `226.68
Lakhs

Less than a year Between 2-5 years Between 6-10 years More than 10 years
31-March-20
Gratuity 52.50 193.04 311.43 1,263.47
Total 52.50 193.04 311.43 1,263.47

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

AVANTI FEEDS LIMITED 155

 INDEPENDENT
AUDITORS` REPORT
To the Members of Avanti Feeds Limited
Report on the Consolidated Financial Statements

Opinion Basis for Opinion

We have audited the accompanying consolidated
We conducted our audit of the consolidated
financial statements of Avanti Feeds Limited
financial statements in accordance with the
(‘the Company’) and its subsidiaries (collectively
Standards on Auditing (SAs) specified under
referred to as “the Group”), and its associates,
section 143(10) of the Companies Act, 2013. Our
which comprise the Consolidated Balance Sheet
responsibilities under those Standards are further
as at 31st March 2019, the Consolidated Statement
described in the Auditor’s Responsibilities for the
of Profit and Loss (including Other Comprehensive
Audit of the Consolidated Financial Statements
Income), the Consolidated Statement of Changes
section of our report. We are independent of
in Equity and the Consolidated Statement of
the Company in accordance with the Code
Cash Flows for the year ended on that date and
of Ethics issued by the Institute of Chartered
notes to the consolidated financial statements,
Accountants of India (ICAI) together with the
including a summary of significant accounting
ethical requirements that are relevant to our audit
policies and other explanatory information (herein
of the consolidated financial statements under
after referred to as “the consolidated financial
the provisions of the Companies Act, 2013 and the
statements”).
Rules made thereunder, and we have fulfilled our
In our opinion and to the best of our information other ethical responsibilities in accordance with
and according to the explanations given to us, the these requirements and the ICAI’s Code of Ethics.
aforesaid consolidated financial statements give We believe that the audit evidence we have
the information required by the Act in the manner obtained is sufficient and appropriate to provide
so required and give a true and fair view in a basis for our audit opinion on the consolidated
conformity with the Indian Accounting Standards financial statements.
prescribed under section 133 of the Act read with
Key Audit Matters
the Companies (Indian Accounting Standards)
Key audit matters are those matters that, in our
Rules, 2015, as amended (“Ind AS”) and other
professional judgment, were of most significance
accounting principles generally accepted in
in our audit of the consolidated financial
India, of the consolidated state of affairs of the
statements of the current period. These matters
Group as at 31st March 2019, the consolidated
were addressed in the context of our audit of the
profit , consolidated total comprehensive income,
consolidated financial statements as a whole, and
consolidated statement of changes in equity and
in forming our opinion thereon, and we do not
the consolidated statement of cash flows for the
provide a separate opinion on these matters. We
year ended on that date.

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Company Overview Statutory Reports Financial Statements

have determined the matters described below to be the key audit matters to be communicated in our
report.

S. No Key Audit Matters Auditor’s Response

1 Accuracy of recognition, Principal Audit Procedures
measurement, presentation and We assessed the Group’s process to identify the impact
disclosures of revenues and of adoption of the new revenue accounting standard.
other related balances in view of Our audit approach consisted testing of the design
adoption of Ind AS 115 “Revenue and operating effectiveness of the internal controls and
from Contracts with Customers” substantive testing as follows:
(new revenue accounting
• Evaluated the design of internal controls relating
standard)
to implementation of the new revenue accounting
The application of the new revenue standard.
accounting standard involves
• Selected a sample of continuing and new contracts,
certain key judgements relating
and tested the operating effectiveness of the
to identification of the contract
internal control, relating to identification of the
with a customer, identification
distinct performance obligations and determination
of distinct performance
of transaction price. We carried out a combination
obligations, determination of
of procedures involving enquiry and observation,
transaction price of the identified
reperformance and inspection of evidence in respect
performance obligations, the
of operation of these controls.
appropriateness of the basis used
to measure revenue recognized • Tested the relevant information technology systems’
when a performance obligation access and change management controls relating to
is satisfied. Additionally, new contracts and related information used in recording
revenue accounting standard and disclosing revenue in accordance with the new
contains disclosures which revenue accounting standard.
involves collation of information • Selected a sample of continuing and new contracts
in respect of disaggregated and performed the following procedures:
revenue and periods over which - Read, analyzed and identified the distinct
the remaining performance performance obligations in these contracts.
obligations will be satisfied
- Compared these performance obligations with that
subsequent to the balance sheet
identified and recorded by the Group.
date.
- Considered the terms of the contracts to determine
Refer Notes 2.4e and 23 to
the transaction price including any variable
the Consolidated Financial
consideration to verify the transaction price used to
Statements
compute revenue and to test the basis of estimation
of the variable consideration.
- Samples in respect of revenue recorded upon
transfer of control of promised products or services
to customers in an amount that reflects the
consideration which the Group expects to receive
in exchange for those products or services, were
tested using a combination of DCs, Sales orders,
weighment slips, non-returnable gate passes,
shipping bills including packing lists, subsequent
invoicing, bills of lading, customer acceptances and
historical trend of collections and disputes.
- Performed analytical procedures for reasonableness
of revenues disclosed by type and service offerings.
- We reviewed the collation of information and the
logic of the report generated from the IT system
used to prepare the disclosure relating to the
periods over which the remaining performance
obligations will be satisfied subsequent to the
balance sheet date.

AVANTI FEEDS LIMITED 157

 S. No Key Audit Matters Auditor’s Response
2. Availment of Section 80 IA and Principal Audit Procedures
Section 80IB benefits under the
Income tax Act, 1961. We have reviewed the status of the availment of Sections
80 IA and Section 80 IB benefits under the Income tax
Refer Note 22 to the Consolidated
Act, 1961 by the Group for its;
Financial Statements
i. Windmill division from AY 2012-13 onwards for 10 years
as a tax holiday period, which will end in AY 2021-22.

ii. New Shrimp processing plant at Yerravaram, East

Godavari, AP, from AY 2018-19 onwards for 10 years as
a tax holiday period, which will end in AY 2027-28.

The current tax benefit availed for FY 18-19 is `1,646.50

Lakhs (Previous year- `189.82 Lakhs).
3. The Group enters into various Our procedures included but were not limited to:
financial instruments such as
derivative financial instruments • Obtaining an understanding of the internal risk
to hedge the Group’s exposure management procedures and the systems and controls
to variability in foreign associated with the origination and maintenance of
exchange movements, including complete and accurate information relating to financial
investments in quoted and instruments;
unquoted equity instruments,
• Utilizing our treasury experts, we also tested on a
quoted and unquoted mutual
sample basis the existence and valuation of such
funds and quoted non-convertible
financial instruments as at 31st March 2019. Our audit
debentures. As at 31 March 2019,
st
procedures focused on the integrity of the valuation
financial instruments carried at
models and the incorporation of the contract terms
fair value through profit and loss
and the key assumptions, including future price
totaled `55,031.10 Lakhs (current
assumptions and discount rates; and
investments of `48,386.77 Lakhs
and non-current investments of • Obtaining an understanding of key financial instrument
`6,644.34 Lakhs) as disclosed contract terms to assess the appropriateness of
in Note 6 to the Consolidated accounting reflected in the financial report.
Financial Statements and
derivative financial liabilities We have also assessed the appropriateness of the
totaled `26.04 Lakhs (current disclosures included in Note 32 to the Consolidated
liabilities) as disclosed in Note Financial Statements.
17 to the Consolidated Financial
Statements. These financial
instruments are recorded at fair
value as required by the relevant
accounting standard. We have
focused on this area due to the
complexities associated with
the valuation and accounting for
these financial instruments.

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S. No Key Audit Matters Auditor’s Response

4. Antidumping duty levy (ADD) on Principal Audit Procedures
the exports to U.S.A. by the Group
We assessed the Group’s process to identify the impact of
Under the Tariff Act of 1930,
the differential between the preliminary and final rates of
U.S. industries may petition
ADD levy. Our audit approach consisted of:
the government for relief from
imports that are sold in the • Verifying the latest ADD levy rates applicable to
United States at less than fair the Company as published by US Department of
value (“dumped”) or which Commerce in the U.S. Federal Register.
benefit from subsidies provided
through foreign government • Selecting a sample of shipments exported, and testing
programs. Under the law, the U.S. the ADD provided for in respect of each. We carried
Department of Commerce (DOC) out a combination of procedures involving enquiry
determines whether the dumping and observation, reperformance and inspection of
or subsidizing exists and, if so, the evidence in respect of operation of these transactions.
margin of dumping or amount of
the subsidy; the DOC determines • Selected a sample of continuing and new shipments
whether there is material injury and performed the following procedures:
or threat of material injury to
the domestic industry by reason • Read, analyzed and identified the rate of ADD levy.
of the dumped or subsidized
• Compared these rates with those as per the latest
imports.
rates published in the Federal Register.
Antidumping duty investigations
are conducted under title VII of • Performed analytical procedures for reasonableness of
the law. The DOC conducts the ADD provided for over the years.
injury investigations in preliminary
and final phases. • We have verified that the Group provides for the
ADD in a financial year based on the preliminary
The provision of this duty
rates applicable at the time of export of each of its
payable involves an element
shipments to the US.
of contingency as its based
on the judgement of a foreign Upon final determination of rates for the particular review
governing body which might period, the differential amount between the preliminary
result in a probable outflow/ and final rates is either refunded to or paid by the Group,
inflow of resources in the future, as verified by us.
the amount of which cannot be
reliably estimated.
Refer Notes 24 and 31 to
the Consolidated Financial
Statements

Information Other than the Consolidated Our opinion on the consolidated financial
Financial Statements and Auditor’s Report statements does not cover the other information
Thereon and we do not express any form of assurance
The Holding Company’s Board of Directors is conclusion thereon.
responsible for the preparation of the other
In connection with our audit of the consolidated
information. The other information comprises
financial statements, our responsibility is to read
the information included in the Management
the other information and, in doing so, consider
Discussion and Analysis, Board’s Report
whether the other information is materially
including Annexures to Board’s Report, Business
inconsistent with the consolidated financial
Responsibility Report, Corporate Governance and
statements or our knowledge obtained during the
Shareholder’s Information, but does not include
course of our audit or otherwise appears to be
the consolidated financial statements and our
materially misstated.
auditor’s report thereon.

AVANTI FEEDS LIMITED 159

 If, based on the work we have performed, we The respective Board of Directors of the companies
conclude that there is a material misstatement of included in the Group and of its associates are
this other information, we are required to report responsible for overseeing the financial reporting
that fact. We have nothing to report in this regard. process of the Group and of its associates.

Management’s Responsibility for the Auditor’s Responsibility for the Audit of the
Consolidated Financial Statements Consolidated Financial Statements
Our objectives are to obtain reasonable assurance
The Holding Company’s Board of Directors is
about whether these consolidated financial
responsible for the matters stated in section
statements as a whole are free from material
134(5) of the Companies Act, 2013 (“the Act”) with
misstatement, whether due to fraud or error,
respect to the preparation of these consolidated
and to issue an auditor’s report that includes our
financial statements that give a true and fair view
opinion. Reasonable assurance is a high level of
of the consolidated financial position, consolidated
assurance, but is not a guarantee that an audit
financial performance, consolidated total
conducted in accordance with SAs will always
comprehensive income, consolidated changes in
detect a material misstatement when it exists.
equity and consolidated cash flows of the Group
Misstatements can arise from fraud or error and
including its associates in accordance with the and
are considered material if, individually or in the
other accounting principles generally accepted in
aggregate, they could reasonably be expected
India. The respective Board of Directors of the
to influence the economic decisions of users
companies included in the Group are responsible
taken on the basis of these consolidated financial
for maintenance of the adequate accounting
statements.
records in accordance with the provisions of the
Act for safeguarding the assets of the Group As part of an audit in accordance with SAs, we
and for preventing and detecting frauds and exercise professional judgment and maintain
other irregularities; selection and application professional skepticism throughout the audit. We
of appropriate accounting policies; making also:
judgments and estimates that are reasonable
and prudent; and the design, implementation • Identify and assess the risks of material
and maintenance of adequate internal financial misstatement of the consolidated financial
controls, that were operating effectively for statements, whether due to fraud or error,
ensuring the accuracy and completeness of the design and perform audit procedures
accounting records, relevant to the preparation responsive to those risks, and obtain audit
and presentation of the consolidated financial evidence that is sufficient and appropriate to
statements that give a true and fair view and are provide a basis for our opinion. The risk of not
free from material misstatement, whether due to detecting a material misstatement resulting
fraud or error. from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery,
In preparing the consolidated financial intentional omissions, misrepresentations, or
statements, the respective Board of Directors of the override of internal control.
the companies included in the Group and of its
associates are responsible for assessing the ability • Obtain an understanding of internal financial
of the Group and of its associates to continue as controls relevant to the audit in order to design
a going concern, disclosing, as applicable, matters audit procedures that are appropriate in the
related to going concern and using the going circumstances. Under section 143(3)(i) of the
concern basis of accounting unless management Act, we are also responsible for expressing
either intends to liquidate the Group or to cease our opinion on whether the Holding Company,
operations, or has no realistic alternative but to its subsidiary companies and associate
do so. companies which are companies incorporated
in India, have adequate internal financial

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controls system in place and the operating materiality and qualitative factors in (i) planning
effectiveness of such controls. the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect
• Evaluate the appropriateness of accounting of any identified misstatements in the financial
policies used and the reasonableness of statements.
accounting estimates and related disclosures
made by management. We communicate with those charged with
governance regarding, among other matters,
• Conclude on the appropriateness of the planned scope and timing of the audit and
management’s use of the going concern basis significant audit findings, including any significant
of accounting and, based on the audit evidence deficiencies in internal control that we identify
obtained, whether a material uncertainty exists during our audit.
related to events or conditions that may cast
significant doubt on the ability of the Group and We also provide those charged with governance
its associates to continue as a going concern. with a statement that we have complied
If we conclude that a material uncertainty with relevant ethical requirements regarding
exists, we are required to draw attention in independence, and to communicate with
our auditor’s report to the related disclosures them all relationships and other matters that
in the consolidated financial statements or, if may reasonably be thought to bear on our
such disclosures are inadequate, to modify independence, and where applicable, related
our opinion. Our conclusions are based on safeguards.
the audit evidence obtained up to the date of
From the matters communicated with those
our auditor’s report. However, future events
charged with governance, we determine those
or conditions may cause the Group and its
matters that were of most significance in the
associates to cease to continue as a going
audit of the consolidated financial statements
concern.
of the current period and are therefore the key
• Evaluate the overall presentation, structure audit matters. We describe these matters in our
and content of the consolidated financial auditor’s report unless law or regulation precludes
statements, including the disclosures, and public disclosure about the matter or when, in
whether the consolidated financial statements extremely rare circumstances, we determine that a
represent the underlying transactions matter should not be communicated in our report
and events in a manner that achieves fair because the adverse consequences of doing so
presentation. would reasonably be expected to outweigh the
public interest benefits of such communication.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the Other Matters
entities or business activities within the Group
We did not audit the financial statements /
and its associates to express an opinion on
financial information of Avanti Frozen Foods
the consolidated financial statements. We
Private Limited, Svimsan Exports and Imports
are responsible for the direction, supervision
Private Limited, subsidiaries, whose financial
and performance of the audit of the financial
statements / financial information reflect total
statements of such entities included in the
assets of `42,869.25 Lakhs as at 31st March
consolidated financial statements.
2019, total revenues of `76,207.64 Lakhs and
Materiality is the magnitude of misstatements net cash flows amounting to `4,509.26 Lakhs
in the consolidated financial statements that, for the year ended on that date, as considered
individually or in aggregate, makes it probable in the consolidated financial statements. The
that the economic decisions of a reasonably consolidated financial statements also include
knowledgeable user of the financial statements the Group’s share of net profit of `25.71 Lakhs for
may be influenced. We consider quantitative the year ended 31st March 2019, as considered in

AVANTI FEEDS LIMITED 161

 the consolidated financial statements, in respect purpose of preparation of the consolidated
of Srivathsa Power Projects Limited and Patikari financials statements.
Power Private Limited, associates, whose financial
d) In our opinion, the aforesaid consolidated
statements / financial information have not
financial statements comply with the Indian
been audited by us. These financial statements /
Accounting Standards specified under
financial information have been audited by other
Section 133 of the Act, read with Rule 7 of the
auditors whose reports have been furnished to
Companies (Accounts) Rules, 2014.
us by the Management and our opinion on the
consolidated financial statements, in so far as it e) On the basis of the written representations
relates to the amounts and disclosures included received from the directors of the Holding
in respect of these subsidiaries and its associates, Company as on 31st March 2019 taken on
and our report in terms of sub-sections (3) and record by the Board of Directors of the Holding
(11) of Section 143 of the Act, in so far as it relates Company and the reports of the statutory
to the aforesaid subsidiaries and its associates, is auditors of its subsidiary companies and
based solely on the reports of the other auditors. associate companies incorporated in India,
none of the Directors of the Group companies
Our opinion on the consolidated financial and associate companies incorporated in India
statements, and our report on Other Legal and is disqualified as on 31st March 2019 from being
Regulatory Requirements below, is not modified appointed as a Director of that company in
in respect of the above matters with respect to terms of Section 164(2) of the Act.
our reliance on the work done and the reports of
f) With respect to the adequacy of the internal
the other auditors and the financial statements /
financial controls over financial reporting of
financial information certified by the Management.
the Group and the operating effectiveness of
Report on Other Legal and Regulatory such controls, refer to our separate report in
“Annexure-A” which is based on the auditor’s
Requirements
reports of the Holding Company, its subsidiary
As required by section 143 (3) of the Act, we companies and associate companies
report that: incorporated in India. Our report expresses
an unmodified opinion on the adequacy
a) We have sought and obtained all the
and operating effectiveness of the internal
information and explanations which to the best
financial control over financial reporting of
of our knowledge and belief were necessary
those companies, for reasons stated therein.
for the purposes of our audit of the aforesaid
consolidated financial Statements. g) With respect to the other matters to be
included in the Auditor’s Report in accordance
b) In our opinion, proper books of account as with the requirements of section 197(16) of the
required by law relating to preparation of the Act, as amended:
aforesaid consolidated financial statements
have been kept so far as it appears from our In our opinion and to the best of our information
examination of those books. and according to the explanations given to
us, the remuneration paid by the Holding
c)
The Consolidated Balance Sheet, the Company, its subsidiary companies and
Consolidated Statement of Profit and Loss associate companies to its directors during
(including Other Comprehensive Income), the the year is in accordance with the provisions
Consolidated Statement of Changes in Equity of section 197 of the Act.
and the Consolidated Statement of Cash flows
h) With respect to the other matters to be
dealt with by this Report are in agreement
included in the Auditor’s Report in accordance
with the books of account maintained for the
with Rule 11 of the Companies (Audit and

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Auditors) Rules, 2014, as amended, in our amounts, required to be transferred, to the

opinion and to the best of our information and Investor Education and Protection Fund by the
according to the explanations given to us: Group and its associates incorporated in India.

i. the consolidated financial statements disclose

For TUKARAM & CO LLP.
the impact of pending litigations on the
Chartered Accountants
consolidated financial position of the Group
ICAI Firm Regn. 004436S
and its associates. Refer Note 35 to the
consolidated financial statements;
B. Lokanath
ii. The Group and its associates did not have PARTNER
any material foreseeable losses on long-term Membership No.024927
contracts including derivative contracts.
Place: Hyderabad
iii. There has been no delay in transferring Date: 07.06.2019

AVANTI FEEDS LIMITED 163

 “Annexure – A” to the Auditors’ Report
Report of even date on the Consolidated Financial Statements of Avanti Feeds Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated Controls over Financial Reporting (the “Guidance
financial statements of Avanti Feeds Limited Note”) and the Standards on Auditing, issued by
as of and for the year ended 31st March, 2019, ICAI and deemed to be prescribed under section
we have audited the internal financial controls 143(10) of the Companies Act, 2013, to the extent
over financial reporting of Avanti Feeds Limited applicable to an audit of internal financial controls.
(hereinafter referred to as the “Holding Company”, Those Standards and the Guidance Note require
its subsidiary companies and associate companies that we comply with ethical requirements and
which are companies incorporated in India, as of plan and perform the audit to obtain reasonable
that date. assurance about whether adequate internal
financial controls over financial reporting was
Management’s Responsibility for Internal established and maintained and if such controls
Financial Controls operated effectively in all material respects.
The Board of Directors of the Holding Company, its
subsidiary companies and associate companies, Our audit involves performing procedures to
which are companies incorporated in India are obtain audit evidence about the adequacy of the
responsible for establishing and maintaining internal financial controls system over financial
internal financial controls based on the internal reporting and their operating effectiveness. Our
control over financial reporting criteria established audit of internal financial controls over financial
by the respective companies considering the reporting included obtaining an understanding of
essential components of internal control stated in internal financial controls over financial reporting,
the Guidance Note on Audit of Internal Financial assessing the risk that a material weakness
Controls over Financial Reporting issued by exists, and testing and evaluating the design and
the Institute of Chartered Accountants of India operating effectiveness of internal control based
(‘ICAI’). These responsibilities include the design, on the assessed risk. The procedures selected
implementation and maintenance of adequate depend on the auditor’s judgment, including the
internal financial controls that were operating assessment of the risks of material misstatement
effectively for ensuring the orderly and efficient of the consolidated financial statements, whether
conduct of its business, including adherence to the due to fraud or error.
respective company’s policies, the safeguarding of
We believe that the audit evidence we have
its assets, the prevention and detection of frauds
obtained is sufficient and appropriate to provide
and errors, the accuracy and completeness of the
a basis for our audit opinion on the on the internal
accounting records, and the timely preparation of
financial controls system over financial reporting
reliable financial information, as required under
of the Holding Company, its subsidiary companies
the Companies Act, 2013.
and associate companies, which are companies
Auditors’ Responsibility incorporated in India.

Our responsibility is to express an opinion on Meaning of Internal Financial Controls over

the internal financial controls over financial Financial Reporting
reporting of the Holding Company, its subsidiary
A company’s internal financial control over
companies and associate companies, which are
financial reporting is a process designed to provide
companies incorporated in India, based on our
reasonable assurance regarding the reliability of
audit. We conducted our audit in accordance with
financial reporting and the preparation of financial
the Guidance Note on Audit of Internal Financial
statements for external purposes in accordance

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with generally accepted accounting principles. A because of changes in conditions, or that the
company’s internal financial control over financial degree of compliance with the policies or
reporting includes those policies and procedures procedures may deteriorate.
that (1) pertain to the maintenance of records that,
Opinion
in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of In our opinion, the Holding Company, its subsidiary
the company; (2) provide reasonable assurance companies and associate companies, which
that transactions are recorded as necessary to are companies incorporated in India, have, in all
permit preparation of financial statements in material respects, an adequate internal financial
accordance with generally accepted accounting controls system over financial reporting and such
principles, and that receipts and expenditures of internal financial controls over financial reporting
the company are being made only in accordance were operating effectively as at 31st March 2019,
with authorisations of management and directors based on the internal control over financial
of the company; and (3) provide reasonable reporting criteria established by the respective
assurance regarding prevention or timely companies considering the essential components
detection of unauthorised acquisition, use, or of internal control stated in the Guidance Note on
disposition of the company’s assets that could Audit of Internal Financial Controls Over Financial
have a material effect on the financial statements. Reporting issued by the Institute of Chartered
Accountants of India.
Inherent Limitations of Internal Financial
Controls over Financial Reporting
Because of the inherent limitations of internal
For TUKARAM & CO LLP.
financial controls over financial reporting,
Chartered Accountants
including the possibility of collusion or improper
management override of controls, material ICAI Firm Regn. 004436S
misstatements due to error or fraud may occur
and not be detected. Also, projections of any B. Lokanath
evaluation of the internal financial controls over PARTNER
financial reporting to future periods are subject Membership No.024927
to the risk that the internal financial control over Place: Hyderabad
financial reporting may become inadequate Date: 07.06.2019

AVANTI FEEDS LIMITED 165

 Consolidated Balance sheet as at 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
Note
31st March 2019 31st March 2018
ASSETS
Non-current Assets
Property, plant, and equipment 3 29,226.70 31,197.65
Capital work-in-progress 3 900.93 197.29
Intangible assets 4 26.19 16.64
Investments accounted for using the equity method 5 3,146.47 3,120.76
Financial assets
Investments 6 6,753.52 15.77
Loans 7(a) 95.67 61.69
Other financial assets 8 744.52 620.64
Non-current tax assets (net) 22(b) 2,297.56 864.43
Other non-current assets 9(a) 338.41 298.33
Total Non-current Assets 43,529.97 36,393.20
Current Assets
Inventories 10 37,906.21 52,481.44
Financial assets
Investments 6 53,117.16 55,308.56
Trade receivables 11 4,863.69 5,003.45
Cash and cash equivalents 12 5,806.21 671.57
Other Bank balances 13 12,885.06 763.97
Loans 7(b) 97.96 95.53
Other current assets 9(b) 3,275.59 1,908.57
Total Current Assets 1,17,951.88 1,16,233.09
Total Assets 1,61,481.85 1,52,626.29
EQUITY AND LIABILITIES
Equity
Equity share capital 14 1,362.46 908.30
Other equity 15 1,19,234.22 1,02,239.67
Equity attributable to owners 1,20,596.68 1,03,147.97
Non-controlling interest 15,133.28 11,837.32
Total equity 1,35,729.96 1,14,985.29
Liabilities
Financial liabilities
Borrowings 16 105.64 183.68
Other financial liabilities 17(a) 374.50 374.50
Provisions 18(a) 167.74 197.28
Deferred tax liabilities (net) 22(a) 1,774.10 2,611.36
Other non-current liabilities 19(a) 1,335.34 1,486.32
Total Non-current Liabilities 3,757.32 4,853.14
Current liabilities
Financial liabilities
Borrowings 20 667.14 364.25
Trade payables
i) Total outstanding dues of Micro enterprises and small 21 886.87 1,511.91
enterprises
ii) Total outstanding dues of creditors other than Micro 21 17,104.02 27,142.92
enterprises aaa and small enterprises
Other financial liabilities 17(b) 543.06 494.16
Other current liabilties 19(b) 2,675.80 3,110.58
Provisions 18(b) 117.68 164.04
Total Current Liabilities 21,994.57 32,787.86
Notes forming part of the Financial Statements 1-43
Total Equity and Liabilities 1,61,481.85 1,52,626.29
The accompanying notes are an integral part of the financial statements
As per our Report of even date For and on behalf of the Board of Directors
For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Company Overview Statutory Reports Financial Statements

Consolidated Statement of profit & loss for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

Note
31st March 2019 31st March 2018
Income
Revenue from operations 23 3,48,777.95 3,39,290.31
Other Income (net) 24 5,382.73 4,824.82
Total Income 3,54,160.68 3,44,115.13
Expenditure :
Cost of materials consumed 25 2,74,018.03 2,48,518.12
Changes in inventories of finished goods and work-in- 26 (324.56) (7,550.09)
progress
Employee benefits expense 27 10,032.29 11,087.00
Finance costs 29 262.67 296.40
Depreciation and amortisation expense 28 3,583.87 2,375.75
Other expenses 30 24,327.41 18,970.65
Total expenses 3,11,899.71 2,73,697.83
Profit before tax, exceptional items & share in profit of 42,260.97 70,417.30
Associates
Add: Share of net profit/(loss) of associates accounted 25.71 111.88
for using the equity method
Profit before exceptional items and tax for the year 42,286.68 70,529.18
Exceptional items 31 518.70 (78.88)
Profit before tax 42,805.38 70,450.30
Tax expenses
Current tax 22c 13,170.44 22,456.01
Earlier year taxes 22c (189.79) -
Deferred tax 22c (837.26) 1,346.35
Total tax expense 12,143.39 23,802.36
Profit for the year 30,661.99 46,647.94
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans (62.25) (125.44)
Total comprehensive income for the year 30,599.74 46,522.50
Attributable to :
Owners of AFL 27,303.77 44,524.91
Non-controlling interests 3,295.97 1,997.59
Profit is attributable to:
Owners of AFL 27,363.01 44,646.81
Non-controlling interests 3,298.98 2,001.13
Other comprehensive income is attributable to:
Owners of AFL (59.24) (121.90)
Non-controlling interests (3.01) (3.54)
Earnings per equity share
(Equity shares, par value of ` 1/- each)
Basic and diluted EPS (in `)
Basic 20.08 32.77
Diluted 20.08 32.77
Notes forming part of the Financial Statements

The accompanying notes are an integral part of the financial statements

As per our Report of even date
For TUKARAM & CO. LLP. For and on behalf of the Board of Directors
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

AVANTI FEEDS LIMITED 167

 Consolidated Statement of Changes in Equity for the year ended 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

a. Equity Share Capital

Particulars Number of Shares Amount

Balance at 1st April 2017 4,54,15,210 908.30
Changes in equity share capital during the year - -
Balance at 31st March 2018 4,54,15,210 908.30
Changes in equity share capital during the year 9,08,30,420 454.16
Balance at 31st March 2019 13,62,45,630 1,362.46

b. Other Equity

Reserves and Surplus

Capital Securities General Retained
Total
Reserve premium reserve earnings
Balance at 1st April 2017 - 456.85 9,124.28 53,053.09 62,634.22
Profit for the year - - - 44,646.81 44,646.81
Remeasurements of the defined - - - (121.90) (121.90)
benefit plans
Dividends (including corporate - - - (4,919.46) (4,919.46)
dividend tax)
Transfer of retained earnings to - - 4,000.00 (4,000.00) -
general reserve
Balance at 31st March 2018 - 456.85 13,124.28 88,658.54 1,02,239.67

Balance at 1st April 2018 - 456.85 13,124.28 88,658.54 1,02,239.67

Profit for the year - - - 27,363.01 27,363.01
Utilised for bonus issue - (438.00) (16.15) (454.15)
Remeasurements of the defined - - - (59.24) (59.24)
benefit plans
Dividends (including corporate - - - (9,855.07) (9,855.07)
dividend tax)
Transfer of retained earnings to - - 2,000 (2,000) -
general reserve
Balance at 31st March 2019 - 18.85 15,108.13 1,04,107.24 1,19,234.22

The accompanying notes are an integral part of the financial statements

As per our Report of even date

For TUKARAM & CO. LLP. For and on behalf of the Board of Directors
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Statement of Consolidated Cash Flows for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
A. CASH FLOW FROM/(USED IN) OPERATING 42,805.38 70,450.30
ACTIVITIES
Profit before tax
Adjustments for :
Depreciation and amortisation expense 3,583.87 2,375.75
Finance costs 262.67 296.40
Loss/ (Profit) on sale of property, plant and 31.57 19.27
equipment
Interest income (534.44) (74.46)
Dividend income (1,537.27) (1,100.21)
Exchange gains/ losses 634.01 (1,359.07)
Gain/loss from sale of financial assets measured at (1,686.20) (668.65)
fair value through profit and loss
Fair valuation of financial assets measured at fair (537.82) (1,528.66)
value through profit and loss
Fair valuation of derivatives 26.05 369.36
Share of profit/(loss) from Associates (25.71) (111.88)
Amortisation of government grant (187.19) (131.12)
Operating profit before working capital 42,834.93 68,537.03
changes
Changes in working capital:
Adjustments for (increase) / decrease in operating
assets:
Trade receivables 139.76 (2,662.25)
Loans (36.41) (60.84)
Other financial assets 97.83 (227.95)
Inventories 14,575.23 (16,911.67)
Other bank balances (12,121.09) (302.90)
Other assets (1,367.02) (461.90)
Adjustments for increase / (decrease) in operating
liabilities:
Trade payables (10,663.92) 3,687.77
Provisions (133.49) 98.04
Other financial liabilities 48.90 (405.69)
Other current liabilities (394.70) 580.71
Cash generated from operations 32,980.02 51,870.35
Net income tax paid (14,603.57) (23,777.40)
Net cash flow from operating activities (A) 18,376.45 28,092.95
B. CASH FLOW FROM/(USED IN)
INVESTING ACTIVITIES
Capital expenditure on fixed assets, including (2,500.15) (7,961.20)
capital advances
Proceeds from sale of Property, Plant and 81.63 12.87
Equipment
Investment in Mutual funds (2,322.34) (20,176.53)
Interest received 525.19 97.86
Dividend income received 1,537.27 1,100.21
Net cash (used in) / flow from investing (2,678.41) (26,926.78)
activities (B)

AVANTI FEEDS LIMITED 169

 Statement of Cash Flows for the year ended 31 st
March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
C. CASH FLOW FROM/(USED IN)
FINANCING ACTIVITIES
Finance costs (262.67) (309.75)
Repayment of borrowings 224.85 (800.14)
Dividends paid (9,905.41) (4,919.46)
Profit on exchange fluctuations & forward contracts (634.01) 1,359.07
Funds infused by minority interest resulting in - -
dilution of stake of Holding company
Government grant subsidary - 125.00
Net cash flow (used in) financing activities (10,577.24) (4,545.28)
(C)
Net Increase/(decrease) in Cash and cash 5,120.80 (3,379.11)
equivalents (A+B+C)
Cash and cash equivalents at the beginning 685.41 4,064.52
of the year
Cash and cash equivalents at the end of the 5,806.21 685.41
year (Refer Note (i) below)
Note (i): Cash and cash equivalents comprises of:
Balances with Banks 5,780.55 658.98
Cash in hand 25.66 26.43
5,806.21 685.41

The above consolidated statement of cash flows should be read in conjunction with the accompanying
notes.

As per our Report of even date For and on behalf of the Board of Directors
For TUKARAM & CO. LLP.
Chartered Accountants A. Indra Kumar
Firm Registration No. 004436S Chairman & Managing Director

B. LOKANATH C. Ramachandra Rao N. Ram Prasad

Partner Jt. Managing Director Director
Membership No. 024927 Company Secretary & CFO

Place: Hyderabad
Date: 07.06.2019

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Notes to Consolidated Financial Statements for the year ended 31 st

March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Background - defined benefit plans- plan assets measured at

Avanti Feeds Limited (‘AFL or the Company’) is a fair value
listed public Company under “The Companies Act,
(iii) Amended standards adopted by the group
1956”, with its registered office in Visakhapatnam.
The amendments to Ind AS 7 require disclosure
The company started its commercial operations in
of changes in liabilities arising from financing
1993 and now stands as the leading manufacturer
activities.
of Shrimp Feed. AFL has two subsidiaries
(incorporated in India) named Avanti Frozen b. Principles of consolidation and equity
Foods Private Limited (AFFPL) and Svimsan accounting
Exports & Imports Private Limited (SEIPL), AFFPL
is engaged in the business of exporting Shrimp. (i) Subsidiaries
AFL, AFFPL and SEIPL are hereinafter referred to Subsidiaries are all entities (including structured
as the ‘Group’. entities) over which the group has control. The
group controls an entity when the group is
The Group’s consolidated financial statements are
exposed to, or has rights to, variable returns from
approved for issue by the Company’s Board of
its involvement with the entity and has the ability
Directors on May 25, 2019.
to affect those returns through its power to direct
1: Significant accounting policies the relevant activities of the entity. Subsidiaries
are fully consolidated from the date on which
This note provides a list of the significant
control is transferred to the group. They are
accounting policies adopted in the preparation
deconsolidated from the date that control ceases.
of these financial statements. These policies
have been consistently applied to all the years The acquisition method of accounting is used to
presented, unless otherwise stated. account for business combinations by the group.
a. Basis of preparation The group combines the financial statements of
the parent and its subsidiaries line by line adding
(i) Compliance with Ind AS
together like items of assets, liabilities, equity,
The financial statements comply in all material
income and expenses. Intercompany transactions,
aspects with Indian Accounting Standards (Ind
balances and unrealised gains on transactions
AS) notified under Section 133 of the Companies
between group companies are eliminated.
Act, 2013 (the Act) [Companies (Indian
Unrealised losses are also eliminated unless the
Accounting Standards) Rules, 2015] and other
transaction provides evidence of an impairment
relevant provisions of the Act.
of the transferred asset. Accounting policies of
The financial statements up to year ended 31st subsidiaries have been changed where necessary
March 2019 were prepared in accordance with the to ensure consistency with the policies adopted
accounting standards notified under Companies by the group.
(Accounting Standard) Rules, 2006 (as amended)
Non-controlling interests in the results and
and other relevant provisions of the Act.
equity of subsidiaries are shown separately in
(ii) Historical cost convention the consolidated statement of profit and loss,
consolidated statement of changes in equity and
The financial statements have been prepared on a
balance sheet respectively.
historical cost basis, except for the following:
(ii) Associates
- certain financial assets and liabilities that are
measured at fair value Associates are all entities over which the group
has significant influence but not control. This

AVANTI FEEDS LIMITED 171

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

is generally the case where the group holds their relative interests in the subsidiary. Any
between 20% and 50% of the voting rights. difference between the amount of the adjustment
Investments in associates are accounted for using to non-controlling interests and any consideration
the equity method of accounting, after initially paid or received is recognised within equity.
being recognised at cost.
When the group ceases to consolidate or equity
(iii) Equity method account for an investment because of a loss of
Under the equity method of accounting, the control, joint control or significant influence, any
investments are initially recognised at cost and retained interest in the entity is remeasured to
adjusted thereafter to recognise the group’s share its fair value with the change in carrying amount
of the post-acquisition profits or losses of the recognised in profit or loss. This fair value becomes
investee in profit and loss, and the group’s share the initial carrying amount for the purposes of
of other comprehensive income of the investee in subsequently accounting for the retained interest
other comprehensive income. Dividends received as an associate, joint venture or financial asset.
or receivable from associates and joint ventures In addition, any amounts previously recognised
are recognised as a reduction in the carrying in other comprehensive income in respect of
amount of the investment. that entity are accounted for as if the group
had directly disposed of the related assets or
When the group’s share of losses in an equity- liabilities. This may mean that amounts previously
accounted investment equals or exceeds recognised in other comprehensive income are
its interest in the entity, including any other reclassified to profit or loss.
unsecured long-term receivables, the group does
not recognise further losses, unless it has incurred If the ownership interest in a joint venture or an
obligations or made payments on behalf of the associate is reduced but joint control or significant
other entity. influence is retained, only a proportionate share
of the amounts previously recognised in other
Unrealised gains on transactions between the comprehensive income are reclassified to profit
group and its associates and joint ventures are or loss where appropriate.
eliminated to the extent of the group’s interest in
these entities. Unrealised losses are also eliminated c. Segment reporting
unless the transaction provides evidence of an
Operating segments are reported in a manner
impairment of the asset transferred. Accounting
consistent with the internal reporting provided to
policies of equity accounted investees have been
the chief operating decision maker.
changed where necessary to ensure consistency
with the policies adopted by the group. The Chief Financial Officer (CFO) of the Holding
Company has been identified as the chief
The carrying amount of equity accounted
operating decision maker. Refer Note 39 for the
investments are tested for impairment in
segment information presented.
accordance with the impairment policy.
d. Foreign currency translation
iv) Changes in Ownership Interest
The group treats transactions with non-controlling (i) Functional and presentation currency
interests that do not result in a loss of control as Items included in the financial statements of
transactions with equity owners of the group. the Group are measured using the currency of
A change in ownership interest results in an its primary economic environment in which the
adjustment between the carrying amounts of the company operates (‘the functional currency’). The
controlling and non-controlling interests to reflect consolidated financial statements are presented

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

in Indian rupees (INR), which is the Group’s At contract inception, the Company assesses
functional and presentation currency. its promise to transfer products or services to
a customer to identify separate performance
(ii) Transactions and balances obligations. The Company applies judgement
Foreign currency transactions are translated into to determine whether each product or services
the functional currency using the exchange rates promised to a customer are capable of being
at the dates of the transactions. Foreign exchange distinct, and are distinct in the context of
gains and losses resulting from the settlement the contract, if not, the promised product or
of such transactions and from the translation of services are combined and accounted as a single
monetary assets and liabilities denominated in performance obligation. The Company allocates
foreign currencies at year end exchange rates the arrangement consideration to separately
are generally recognised in profit or loss. Foreign identifiable performance obligation based on
exchange difference regarded as an adjustment to their relative stand-alone selling price or residual
borrowing costs are presented in the Statement method. Stand-alone selling prices are determined
of Profit and Loss, within finance costs. All other based on sale prices for the components when it
foreign exchange gains and losses are presented is regularly sold separately, in cases where the
in the Statement of Profit and Loss on a net basis Company is unable to determine the stand-alone
within other gains/(losses). selling price the Company uses third-party prices
for similar deliverables or the company uses
Non-monetary items that are measured at fair
expected cost plus margin approach in estimating
value in a foreign currency are translated using
the stand-alone selling price.
the exchange rates at the date when the fair value
was determined. Translation differences on assets Revenue is recognised upon transfer of control
and liabilities carried at fair value are reported as of promised products or services to customers in
part of the fair value gain or loss. an amount that reflects the consideration which
the Company expects to receive in exchange for
e. Revenue recognition
those products or services.
The Company earns revenue primarily from
Effective 1st April 2018, the Company has applied
sale of Shrimp Feed and Shrimp Exports
Ind AS 115 which establishes a comprehensive
Revenue is recognized upon transfer of control
framework for determining whether, how much
of promised products or services to customers
and when revenue is to be recognised. Ind AS
in an amount that reflects the consideration the
115 replaces Ind AS 18 Revenue. The Company
Company expects to receive in exchange for those
has adopted Ind AS 115 using the cumulative
products or services. To recognize revenues, we
effect method. The effect of initially applying
apply the following five step approach:
this standard is recognised at the date of initial
(1) identify the contract with a customer, application (i.e. 1st April 2018). The standard
is applied retrospectively only to contracts
(2) identify the performance obligations in the that are not completed as at the date of initial
contract, application and the comparative information in
the statement of profit and loss is not restated –
(3) determine the transaction price,
i.e. the comparative information continues to be
(4)
allocate the transaction price to the reported under Ind AS 18.
performance obligations in the contract, and
Refer note 2.4 (C) – Significant accounting policies
(5)
recognize revenues when a performance – Revenue recognition in the Annual report of
obligation is satisfied. the Company for the year ended 31st March 2018,

AVANTI FEEDS LIMITED 173

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

for the revenue recognition policy as per Ind AS establishes provisions, where appropriate, on the
18. The impact of the adoption of the standard basis of amounts expected to be paid to the tax
on the financial statements of the Company is authorities.
insignificant.
Deferred income tax is provided in full, using the
f. Government grant liability method, on temporary differences arising
Grants from the government are recognised between the tax bases of assets and liabilities
at their fair value where there is a reasonable and their carrying amounts in the financial
assurance that the grant will be received and the statements. Deferred income tax is also not
Group will comply with all attached conditions. accounted for if it arises from initial recognition
of an asset or liability in a transaction other than
Government grants relating to income are a business combination that at the time of the
deferred and recognised in the profit or loss over transaction affects neither accounting profit nor
the period necessary to match them with the taxable profit (tax loss). Deferred income tax is
costs that they are intended to compensate and determined using tax rates (and laws) that have
presented within other income. been enacted or substantially enacted by the
end of the reporting period and are expected to
Government grants relating to the purchase of
apply when the related deferred income tax asset
property, plant and equipment are included in
is realised or the deferred income tax liability is
non-current liabilities as deferred income and are
settled.
credited to profit or loss on a straight-line basis
over the expected lives of the related assets and Deferred tax assets are recognised for all
presented within other income. deductible temporary differences and unused
tax losses only if it is probable that future
Loans received from government in the nature
taxable amounts will be available to utilise those
of interest free deferred taxes are treated in
temporary differences and losses.
the nature of government grant. The difference
between the fair value of the loan and the amount Deferred tax assets and liabilities are offset
of loan received is accounted as government when there is a legally enforceable right to offset
grant. The government grant is recognised in the current tax assets and liabilities and when the
statement profit and loss over the period of loan. deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are
g. Income Tax
offset where the entity has a legally enforceable
The income tax expense or credit for the period right to offset and intends either to settle on a net
is the tax payable on the current period’s taxable basis, or to realise the asset and settle the liability
income based on the applicable income tax simultaneously.
rate for each jurisdiction adjusted by changes in
deferred tax assets and liabilities attributable to Current and deferred tax is recognised in profit
temporary differences and to unused tax losses. or loss, except to the extent that it relates to
items recognised in other comprehensive income
The current income tax charge is calculated on or directly in equity. In this case, the tax is also
the basis of the tax laws enacted or substantively recognised in other comprehensive income or
enacted at the end of the reporting period directly in equity, respectively.
in the countries where the Group operates
and generates taxable income. Management h. Leases
periodically evaluates positions taken in tax returns As a lessee
with respect to situations in which applicable Leases in which a significant portion of the risks
tax regulation is subject to interpretation. It

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

and rewards of ownership are not transferred to k. Trade receivables

the Group as lessee are classified as operating
Trade receivables are recognised initially at fair
leases. Payments made under operating leases
value and subsequently measured at amortised
are charged to profit or loss on a straight-line
cost using the effective interest method, less
basis over the period of the lease unless the
provision for impairment.
payments are structured to increase in line with
expected general inflation to compensate for the l. Inventories
lessor’s expected inflationary cost increases.
Inventories are valued at lower of cost and
i. Impairment of assets net realizable value. Cost of raw materials,
components and stores and spares is
Intangible assets that have an indefinite useful
determined on a weighted average basis.
life are not subject to amortisation and are tested
Cost includes direct materials and labour and a
annually for impairment, or more frequently if
proportion of manufacturing overheads based on
events or changes in circumstances indicate that
normal operating capacity. Cost is determined on
they might be impaired. Other assets are tested
a weighted average basis. Cost of inventories also
for impairment whenever events or changes in
include all other costs incurred in bringing the
circumstances indicate that the carrying amount
inventories to their present location and condition.
may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s Net realisable value is the estimated selling
carrying amount exceeds its recoverable amount. price in the ordinary course of business less the
The recoverable amount is higher of an asset’s estimated costs of completion and the estimated
fair value less costs of disposal and value in use. costs necessary to make the sale.
For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there m. Investments and other financial assets
are separately identifiable cash inflows which are
(i) Classification
largely independent of the cash flows from other
assets or group of assets (cash-generating units). The Group classifies its financial assets in the
Non-financial assets other than goodwill that following measurement categories:
suffered an impairment are reviewed for possible
- those to be measured subsequently at fair
reversal of the impairment at the end of each
value (either through other comprehensive
reporting period.
income, or through profit or loss), and
j. Cash and cash equivalents
- those measured at amortised cost.
For the purpose of presentation in the statement
The classification depends on the entity’s business
of cash flows, cash and cash equivalents includes
model for managing the financial assets and the
cash on hand, deposits held at call with financial
contractual terms of the cash flows.
institutions, other short-term, highly liquid
investments with original maturities of three For assets measured at fair value, gains and losses
months or less that are readily convertible to will either be recorded in profit or loss or other
known amounts of cash and which are subject to comprehensive income. For investments in debt
an insignificant risk of changes in value and bank instruments, this will depend on the business model
overdrafts. Bank overdrafts are shown within in which the investment is held. For investments in
borrowings in current liabilities in the balance equity instruments, this will depend on whether
sheet. the Group has made an irrevocable election at
the time of initial recognition to account for the

AVANTI FEEDS LIMITED 175

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

equity investment at fair value through other impairment gains or losses, interest revenue
comprehensive income. and foreign exchange gains and losses which
are recognised in profit and loss. When the
The Group reclassifies debt investments when financial asset is derecognised, the cumulative
and only when its business model for managing gain or loss previously recognised in OCI is
those assets changes. reclassified from equity to profit or loss and
(ii) Measurement recognised in other gains/(losses). Interest
income from these financial assets is included
At initial recognition,the Group measures a
in other income using the effective interest
financial asset at its fair value plus, in the case
rate method.
of a financial asset not at fair value through
profit or loss, transaction costs that are directly - Fair value through profit or loss: Assets that
attributable to the acquisition of the financial do not meet the criteria for amortised cost
asset. Transaction costs of financial assets carried or FVOCI are measured at fair value through
at fair value through profit or loss are expensed in profit or loss. A gain or loss on a debt
profit or loss. investment that is subsequently measured at
fair value through profit or loss and is not part
Debt instruments
of a hedging relationship is recognised in profit
Subsequent measurement of debt instruments or loss and presented net in the Statement of
depends on the Group’s business model Profit and Loss within other gains/(losses) in
for managing the asset and the cash flow the period in which it arises. Interest income
characteristics of the asset. There are three from these financial assets is included in other
measurement categories into which the Group income.
classifies its debt instruments:
Equity instruments
- Amortised cost: Assets that are held for
The Group subsequently measures all equity
collection of contractual cash flows where
investments at fair value. Where the Group elected
those cash flows represent solely payments
to present fair value gains and losses on equity
of principal and interest are measured at
investments in other comprehensive income,
amortised cost. A gain or loss on a debt
there is no subsequent reclassification of fair
investment that is subsequently measured at
value gains and losses to profit or loss. Dividends
amortised cost and is not part of a hedging
from such investments are recognised in profit or
relationship is recognised in profit or loss when
loss as other income when the group’s right to
the asset is derecognised or impaired. Interest
receive payments is established.
income from these financial assets is included
in finance income using the effective interest Changes in the fair value of financial assets at fair
rate method. value through profit or loss are recognised in other
gain/(losses) in the Statement of Profit and Loss.
- Fair value through other comprehensive income
Impairment losses (and reversal of impairment
(FVOCI): Assets that are held for collection
losses) on equity investments measured at FVOCI
of contractual cash flows and for selling the
are not reported separately from other changes
financial assets, where the assets cash flows
in fair value.
represent solely payments of principal and
interest, are measured at fair value through (iii) Impairment of financial assets
other comprehensive income (FVOCI). The Group assesses on a forward looking basis
Movements in the carrying amount are taken the expected credit losses associated with its
through OCI, except for the recognition of

176 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

assets carried at amortised cost and FVOCI through the expected life of the financial asset
debt instruments. The impairment methodology to the gross carrying amount of a financial asset.
applied depends on whether there has been a When calculating the effective interest rate, the
significant increase in credit risk. Note 32 details Group estimates the expected cash flowsby
how the Group determines whether there has considering all the contractual terms of the
been a significant increase in credit risk. financial instrument (for example, prepayment,
extension, call and similar options) but does not
For trade receivables only, the Group applies the consider the expected credit losses.
simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected Dividends:
life time losses to be recognised from initial
Dividends are recognised in profit or loss only
recognition of the receivables.
when the right to receive payment is established, it
(iv) Derecognition of financial assets is probable that the economic benefits associated
A financial asset is derecognised only when with the dividend will flow to the Group, and the
- the Group has transferred the rights to receive amount of the dividend can be measured reliably.
cash flows from the financial asset or
n. Derivatives
- retains the contractual rights to receive the
Derivatives are initially recognised at fair value
cash flows of the financial asset, but assumes a
on the date a derivative contract is entered into
contractual obligation to pay the cash flows to
and are subsequently re-measured to their fair
one or more recipients.
value at the end of each reporting period and are
Where the entity has transferred an asset, the included in other gains/(losses).
Group evaluates whether it has transferred
o. Offsetting financial instruments
substantially all risks and rewards of ownership
of the financial asset. In such cases, the Financial assets and liabilities are offset and the
financial asset is derecognised. Where the net amount is reported in the balance sheet where
entity has not transferred substantially all there is a legally enforceable right to offset the
risks and rewards of ownership of the financial recognised amounts and there is an intention to
asset, the financial asset is not derecognised. settle on a net basis or realise the asset and settle
Where the entity has neither transferred a the liability simultaneously. The legally enforceable
financial asset nor retains substantially all risks right must not be contingent on future events
and rewards of ownership of the financial asset, and must be enforceable in the normal course of
the financial asset is derecognised if the Group business and in the event of default, insolvency
has not retained control of the financial asset. or bankruptcy of the Group or the counterparty.
Where the Group retains control of the financial
asset, the asset is continued to be recognised p. Property, plant and equipment
to the extent of continuing involvement in the
Freehold land is carried at historical cost. All
financial asset.
other items of property, plant and equipment
(v) Income recognition are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly
Interest income:
attributable to the acquisition of the items.
Interest income from debt instruments is Subsequent costs are included in the asset’s
recognised using the effective interest rate carrying amount or recognised as a separate
method. The effective interest rate is the rate that asset, as appropriate, only when it is probable
exactly discounts estimated future cash receipts that future economic benefits associated with

AVANTI FEEDS LIMITED 177

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

the item will flow to the Group and the cost of (ii) Amortisation methods and periods
the item can be measured reliably. The carrying Intangible assets are amortized over their
amount of any component accounted for as a respective individual estimated useful lives of 6
separate asset is derecognised when replaced. years on a straight line basis.
All other repairs and maintenance are charged to
profit or loss during the reporting period in which r. Trade and other payables
they are incurred.
These amounts represent liabilities for goods
Depreciation / amortisation on tangible assets and services provided to the Group prior to the
is calculated on a straight-line basis as per the year end which are unpaid . The amounts are
useful life prescribed and in the manner laid down unsecured and are usually paid as per mutually
under Schedule II to the Companies Act, 2013. agreed terms. Trade and other payables are
The useful lives have been determined based on presented as current liabilities unless payment
technical evaluation done by the management’s is not due within 12months after the reporting
expert which are higher than those specified by period. They are recognised initially at their fair
Schedule II to the Companies Act; 2013, in order value and subsequently measured at amortised
to reflect the actual usage of the assets. Assets cost using the effective interest method.
costing individually rupee equivalent of INR
s. Borrowings
5,000 or less are fully charged off on purchase.
Depreciation for assets purchased / sold during Borrowings are initially recognised at fair value,
the period is proportionately charged. net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
An asset’s carrying amount is written down
Any difference between the proceeds (net of
immediately to its recoverable amount if the
transaction costs) and the redemption amount is
asset’s carrying amount is greater than its
recognised in profit or loss over the period of the
estimated recoverable amount. Gains or losses
borrowings using the effective interest method.
arising from disposal of fixed assets which are
Fees paid on the establishment of loan facilities
carried at cost are recognised in the Statement of
are recognised as transaction costs of the loan to
Profit and Loss.
the extent that it is probable that some or all of
q. Intangible assets the facility will be drawn down. In this case, the
fee is deferred until the draw down occurs. To the
Intangible assets that are acquired are recognized extent there is no evidence that it is probable that
at cost initially and carried at cost less accumulated some or all of the facility will be drawn down,
amortization and accumulated impairment loss, if the fee is capitalised as a prepayment for liquidity
any. services and amortised over the period of the
facility to which it relates.
(i) Computer software
Computer software are stated at cost, less Borrowings are removed from the balance sheet
accumulated amortisation and impairment losses, when the obligation specified in the contract is
if any. Cost comprises the purchase price and discharged, cancelled or expired. The difference
any attributable cost of bringing the asset to its between the carrying amount of a financial
working condition for its intended use. Following liability that has been extinguished or transferred
initial recognition, intangible assets are carried to another party and the consideration paid,
at cost less accumulated amortization and including any non-cash assets transferred or
accumulated impairment losses, if any. liabilities assumed, is recognised in profit or loss
as other gains/(losses).

178 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Borrowings are classified as current liabilities with respect to any one item included in the same
unless the Group has an unconditional right to class of obligations may be small.
defer settlement of the liability for at least 12
Provisions are measured at the present value of
months after the reporting period. Where there
management’s best estimate of the expenditure
is a breach of a material provision of a long-term
required to settle the present obligation at the
loan arrangement on or before the end of the
end of the reporting period. The discount rate
reporting period with the effect that the liability
used to determine the present value is a pre-tax
becomes payable on demand on the reporting
rate that reflects current market assessments of
date, the entity does not classify the liability as
the time value of money and the risks specific
current, if the lender agreed, after the reporting
to the liability. The increase in the provisions due
period and before the approval of the financial
to the passage of time is recognized as interest
statements for issue, not to demand payment as
expense.
a consequence of the breach.
v. Employee benefits
t. Borrowing Cost
(i) Short-term obligations
General and specific borrowing costs that
are directly attributable to the acquisition, Liabilities for wages and salaries, including non-
construction or production of a qualifying asset monetary benefits that are expected to be settled
are capitalised during the period of time that is wholly within 12 months after the end of the
required to complete and prepare the asset for its period in which the employees render the related
intended use or sale. Qualifying assets are assets service are recognised in respect of employees’
that necessarily take a substantial period of time services upto the end of the reporting period and
to get ready for their intended use or sale. are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
Investment income earned on the temporary presented as current employee benefit obligations
investment of specific borrowings pending their in the balance sheet.
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalisation. (ii) Other long-term employee benefit
obligations
Other borrowing costs are expensed in the period
The liabilities for earned leave and sick leave
in which they are incurred.
are not expected to be settled wholly within
u. Provisions 12 months after the end of the period in which
the employees render the related service. They
Provisions are recognised when the Group has a are therefore measured as the present value of
present legal or constructive obligation as a result expected future payments to be made in respect
of past events, it is probable that an outflow of of services provided by employees up to the end
resources will be required to settle the obligation of the reporting period using the projected unit
and the amount can be reliably estimated. credit method. The benefits are discounted using
Provisions are not recognised for future operating the market yields at the end of the reporting period
losses. that have terms approximating to the terms of the
related obligation. Remeasurements as a result of
Where there are a number of similar obligations,
experience adjustments and changes in actuarial
the likelihood that an outflow will be required
assumptions are recognised in profit or loss.
in settlement is determined by considering the
class of obligations as a whole. A provisions is The obligations are presented as current liabilities
recognized even if the likelihood of an outflow in the balance sheet if the entity does not have

AVANTI FEEDS LIMITED 179

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

an unconditional right to defer settlement for at Defined contribution plans

least twelve months after the reporting period,
The Group pays provident fund contributions
regardless of when the actual settlement is
to publicly administered provident funds and
expected to occur.
Employee State Insurance funds as per local
(iii) Post- employment obligations regulations. The Group has no further payment
The Group operates the following post- obligations once the contributions have been
employment schemes: paid. The contributions are accounted for as
defined contribution plans and the contributions
(a) defined benefit plans such as gratuity; and
are recognised as employee benefit expense
(b) defined contribution plans such as provident when they are due. Prepaid contributions are
fund, Employee State Insurance and recognised as an asset to the extent that a cash
superannuation fund refund or a reduction in the future payments is
Gratuity obligations available. Superannuation Scheme (administered
through a ‘Superannuation Trust’ formed by the
The liability or asset recognised in the balance
Group) is a defined contribution plans, where the
sheet in respect of defined benefit gratuity
Group has no further obligations under the plan
plans is the present value of the defined benefit
beyond its monthly/ quarterly contributions.
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit (iv) Bonus plans
obligation is calculated annually by actuaries The Group recognises a liability and an expense
using the projected unit credit method. for bonuses. The Group recognises a provision
The present value of the defined benefit where contractually obliged or where there is
obligation denominated in INR is determined by a past practice that has created a constructive
discounting the estimated future cash outflows obligation.
by reference to market yields at the end of the
w. Contributed Equity
reporting period on government bonds that have
terms approximating to the terms of the related Equity shares are classified as equity.
obligation.
Incremental costs directly attributable to the issue
The net interest cost is calculated by applying the of new shares are shown in equity as a deduction,
discount rate to the net balance of the defined net of tax, from the proceeds.
benefit obligation and the fair value of plan assets.
x. Dividends
This cost is included in employee benefit expense
in the Statement of Profit and Loss. Provision is made for the amount of any dividend
declared, being appropriately authorized and no
Remeasurement gains and losses arising from
longer at the discretion of the entity, on or before
experience adjustments and changes in actuarial
the end of the reporting period but not distributed
assumptions are recognised in the period in
at the end of the reporting period.
which they occur, directly in other comprehensive
income. They are included in retained earnings y. Earnings per share
in the statement of changes in equity and in the
balance sheet. (i) Basic earnings per share

Changes in the present value of the defined benefit Basic earnings per share is calculated by dividing:
obligation resulting from plan amendments or - the profit attributable to owners of the Group;
curtailments are recognised immediately in profit - by the weighted average number of equity
or loss as past service cost. shares outstanding during the financial year.

180 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(ii) Diluted earnings per share The standard permits two possible methods of
Diluted earnings per share adjusts the figures transition:
used in the determination of basic earnings per
• Full retrospective – Retrospectively to each
share to take into account:
prior period presented applying Ind AS 8
- the after income tax effect of interest and Accounting Policies, Changes in Accounting
other financing costs associated with dilutive Estimates and Errors
potential equity shares, and
• Modified retrospective – Retrospectively, with
- the weighted average number of additional the cumulative effect of initially applying the
equity shares that would have been Standard recognized at the date of initial
outstanding assuming the conversion of all application
dilutive potential equity shares.
Under modified retrospective approach, the
z. Rounding of amounts
lessee records the lease liability as the present
All amounts disclosed in the financial statements value of the remaining lease payments,
and notes have been rounded off to the nearest discounted at the incremental borrowing rate
Lakhs as per the requirement of Schedule III, and the right of use asset either as:
unless otherwise stated.
• Its carrying amount as if the standard had been
2 Recent accounting pronouncements applied since the commencement date, but
Effective date for application of the following discounted at lessee’s incremental borrowing
amendments is annual period beginning on or rate at the date of initial application or
after 1st April 2019. The Company is currently
• An amount equal to the lease liability, adjusted
evaluating the effect of these amendments on the
by the amount of any prepaid or accrued lease
financial statements.
payments related to that lease recognized
Ind AS 116 - Leases : under Ind AS 17 immediately before the date
On 30th March 2019, Ministry of Corporate Affairs of initial application.
has notified Ind AS 116, Leases. Ind AS 116 will
Certain practical expedients are available under
replace the existing leases Standard, Ind AS 17
both the methods.
Leases, and related Interpretations. The Standard
sets out the principles for the recognition, Ind AS 12 Appendix C, Uncertainty over Income
measurement, presentation and disclosure of Tax Treatments :
leases for both parties to a contract i.e., the lessee On 30th March 2019, Ministry of Corporate Affairs
and the lessor. Ind AS 116 introduces a single has notified Ind AS 12 Appendix C, Uncertainty
lessee accounting model and requires a lessee over Income Tax Treatments which is to be applied
to recognize assets and liabilities for all leases while performing the determination of taxable
with a term of more than twelve months, unless profit (or loss), tax bases, unused tax losses,
the underlying asset is of low value. Currently, unused tax credits and tax rates, when there is
operating lease expenses are charged to the uncertainty over income tax treatments under
statement of Profit & Loss. The Standard also Ind AS 12. According to the appendix, companies
contains enhanced disclosure requirements for need to determine the probability of the relevant
lessees. Ind AS 116 substantially carries forward tax authority accepting each tax treatment, or
the lessor accounting requirements in Ind AS 17. group of tax treatments, that the companies
The effective date for adoption of Ind AS 116 is have used or plan to use in their income tax filing
annual periods beginning on or after 1st April 2019. which has to be considered to compute the most

AVANTI FEEDS LIMITED 181

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

likely amount or the expected value of the tax The amendments require an entity:
treatment when determining taxable profit (tax • to use updated assumptions to determine
loss), tax bases, unused tax losses, unused tax current service cost and net interest for
credits and tax rates. the remainder of the period after a plan
The standard permits two possible methods of amendment, curtailment or settlement; and
transition - • to recognise in profit or loss as part of past
i) Full retrospective approach – Under this service cost, or a gain or loss on settlement,
approach, Appendix C will be applied any reduction in a surplus, even if that surplus
retrospectively to each prior reporting period was not previously recognised because of the
presented in accordance with Ind AS 8 – impact of the asset ceiling
Accounting Policies, Changes in Accounting Ind AS 23 – Borrowing Costs :
Estimates and Errors, without using hindsight
The amendments clarify that if any specific
and
borrowing remains outstanding after the related
ii) Retrospectively with cumulative effect of asset is ready for its intended use or sale, that
initially applying Appendix C recognized by borrowing becomes part of the funds that an
adjusting equity on initial application, without entity borrows generally when calculating the
adjusting comparatives. capitalisation rate on general borrowings.
Ind AS 12 – Income taxes :
Ind AS 28 – Long-term Interests in Associates
On 30th March 2019, Ministry of Corporate Affairs
and Joint Ventures :
issued amendments to the guidance in Ind AS 12,
The amendments clarify that an entity applies
‘Income Taxes’, in connection with accounting for
Ind AS 109 Financial Instruments, to long-term
dividend distribution taxes.
interests in an associate or joint venture that form
The amendment clarifies that an entity shall part of the net investment in the associate or joint
recognise the income tax consequences of venture but to which the equity method is not
dividends in profit or loss, other comprehensive applied.
income or equity according to where the entity
Ind AS 103 – Business Combinations and Ind AS
originally recognised those past transactions or
111 – Joint Arrangements :
events.
The amendments to Ind AS 103 relating to re-
Ind AS 109- Prepayment features with Negative measurement clarify that when an entity obtains
compensation : control of a business that is a joint operation, it
The amendments relate to the existing re-measures previously held interests in that
requirements in Ind AS 109 regarding termination business. The amendments to Ind AS 111 clarify
rights in order to allow measurement at amortised that when an entity obtains joint control of a
cost (or, depending on the business model, at fair business that is a joint operation, the entity does
value through other comprehensive income) even not re-measure previously held interests in that
in the case of negative compensation payments. business.

Ind AS 19 – Plan amendment, curtailment or 3: Critical estimates and judgements

settlement : Areas involving critical estimates.
On 30 March 2019, Ministry of Corporate Affairs
th

Estimation of defined benefit obligation , Refer

issued amendments to Ind AS 19, ‘Employee
note: 41
Benefits’, in connection with accounting for plan
amendments, curtailments and settlements.

182 ANNUAL REPORT 2018-19

 3. Property, plant and equipment and capital work -in-progress
1-25

Capital
Land Lab Office Furni- Total
Plant & Wind Electrical Com- Motor work - in
- Free Buildings Roads equip- equip- ture and tangible
machinery mills Installation pu-ters vehicles - pro-
hold ments ment fixtures assets
gress
Gross Carrying
amount
Company Overview

As at 31st 2,592.70 3,599.06 221.18 7,310.22 649.31 1,454.91 253.15 109.06 56.90 135.19 1,009.47 17,391.15 9,721.66
March, 2017
26-97

Additions 870.12 2,720.72 142.21 11,602.50 - 1,443.96 121.31 53.63 82.75 103.34 423.11 17,878.67 4,442.14
Disposals - - - 16.08 - 0.76 3.08 0.85 14.08 0.01 18.27 53.13 13,966.51
As at 31st 3,462.82 6,319.78 363.39 18,896.64 649.31 2,898.11 371.38 161.84 125.57 238.52 1,414.31 34,901.65 197.29
March, 2018
Statutory Reports

Additions 188.07 181.72 2.92 603.00 - 138.98 67.07 72.95 35.12 36.88 393.59 1,720.31 779.86
Disposals 21.64 4.00 - 6.55 - 1.42 0.74 0.70 2.21 0.02 139.32 176.59 76.22
As at 31st 3,629.25 6,497.50 366.31 19,493.09 649.31 3,035.67 437.71 234.09 158.48 275.38 1,668.58 36,445.38 900.93
March, 2019
98-214

Depreciation
Upto 31st March, - 94.48 17.43 827.20 54.12 152.59 23.60 25.48 22.47 16.68 118.98 1,353.03 -
2017
Charge for the - 189.45 35.40 1,599.62 54.12 216.85 33.65 26.35 26.55 21.48 168.43 2,371.91 -
year
Financial Statements

(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Disposals - - - 5.06 - 0.30 0.82 0.19 9.45 0.01 5.16 21.00 -

Upto 31st March, - 283.93 52.83 2,421.76 108.24 369.14 56.43 51.64 39.57 38.15 282.25 3,703.95 -
2018
Charge for the - 267.26 41.83 2,526.37 54.12 329.60 45.34 36.87 43.69 28.59 204.41 3,578.09 -
year
Disposals - 0.43 - 2.20 - 0.51 0.34 0.66 2.11 0.02 57.08 63.35 -
Upto 31st March, - 550.76 94.66 4,945.93 162.36 698.23 101.43 87.85 81.15 66.72 429.58 7,218.68 -
2019
Net Carrying
amount
As at 31st 3,462.82 6,035.84 310.56 16,474.88 541.07 2,528.93 314.94 110.20 86.00 200.35 1,132.06 31,197.65 197.29
March, 2018
As at 31st 3,629.25 5,946.73 271.65 14,547.16 486.95 2,337.44 336.27 146.24 77.33 208.66 1,239.00 29,226.70 900.93
March, 2019

Notes:
i) Refer to note 20 for information on property, plant and equipment pledged as security by the company.
ii) Gross value of assets as at 31st March 2019 includes `1,130.52 Lakhs of government grant availed under the scheme of
Notes to Consolidated Financial Statements for the year ended 31st March 2019

Export Promotion Capital Goods Scheme (31st March 2018: `1,094.34 Lakhs). (refer Note 19)

AVANTI FEEDS LIMITED

ii) Refer to note 35 for disclosure of contractual commitments for the acquisition of property, plant and equipment

183
 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

4. Intangible assets
Computer software
Gross Carrying amount
As at 31st March 2017 12.26
Additions 12.01
Disposals -
As at 31st March 2018 24.27
Additions 15.34
Disposals -
As at 31st March 2019 39.61
Depreciation
Upto 31st March 2017 3.79
Charge for the year 3.84
Disposals -
Upto 31st March 2018 7.63
Charge for the year 5.79
Disposals -
Upto 31st March 2019 13.42
Net Carrying amount
As at 31st March 2018 16.64
As at 31st March 2019 26.19

5. Investments accounted for using the equity method

As at As at
31 March 2019
st
31 March 2018
st

Equity instruments of associate Company (unquoted)

Srivathsa Power Projects Limited
1,66,93,630 (31st March 2018: 1,66,93,630) equity shares of `10/- 2,129.64 2,241.38
each fully paid up
Patikari Power Private Limited *
1,06,45,200 (31st March 2018: 1,06,45,200) equity shares of `10/- 1,016.83 879.38
each fully paid up
* Out of 1,06,45,200 equity shares, 42,50,000 shares have been
pledged with respect to loan taken by Patikari Power Private
Limited from consortium of banks led by State Bank of India.
Total (A) 3,146.47 3,120.76

6. Investments:

As at As at
31st March 2019 31st March 2018
a) Non - Current Investments (Refer Note i below)
Investments carried at cost
Equity instruments of other entities (unquoted) 109.18 12.00
Investment carried at fair value through profit and loss
(i) Equity instruments (quoted) 2.81 3.77
(ii) Investments in Non Convertible Debentures - Quoted 6,641.53 -
6,753.52 15.77

184 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
b) Current investments (Refer Note ii below)
Investment carried at fair value through profit and loss
Investments in Mutual Funds (quoted) 48,386.77 55,308.56
Investment carried at amortised cost
(i) Investments in Secured Bonds - Quoted
LIC Housing Finance Ltd 2019 (secured) bonds 2,609.27 -
(ii) Investments in Non Convertible Debentures- Quoted
HDFC Ltd SR-M 015 9.45 2,121.12 -
53,117.16 55,308.56
Note (i)
Equity instruments (quoted)
IDBI Bank Limited
2,880 (31st March 2018: 2,880) equity shares of `10/- each fully 1.34 2.09
paid up
UCO Bank Limited
7,800 (31st March 2018: 7,800) equity shares of `10/- each fully 1.47 1.68
paid up
Total (A) 2.81 3.77
Equity instruments other entity (unquoted)
Bhimavaram Hospitals Limited
1,20,000 (31st March 2018: 1,20,000) equity shares of `10/- each 12.00 12.00
fully paid up
PT Thai Union Kharisma Lestari 97.18 -
1,99,920 (31st March 2018: NIL) equity shares of IDR 10,000/- each
fully paid up
Total (B) 109.18 12.00
Investments in Non Convertible Debentures- Quoted
HDB Financial Services Ltd Sr A/O(Ml)/1 Br NCD 3,106.94 -
Mahindra And Mahindra Financial Services Ltd As2018 BR NCD 1,011.40 -
Tata Capital Financial Services Ltd Sr Tr A 2018-19 Tr I BR NCD 2,523.19 -
6,641.53 -

Aggregate amount of quoted investments and market value 6,644.34 3.77

thereof
Aggregate amount of unquoted investments 3,255.65 3,132.76
Aggregate amount of impairment in the value of investments - -

Note (ii)
Current investments
Investment in quoted mutual funds
SBI - Premier Liquid Fund - 96373.907 units of `1003.25 each (31st 966.87 8,689.54
March 2018; 866138.75units of `1003.25 each)
HDFC Floating Rate Income Fund - STP - Wholesale Growth - 1,674.56 1,558.15
5152012 units of `32.5031 each (31st March 2018 ; 5152012 units of
`30.2436 each)

AVANTI FEEDS LIMITED 185

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
ICICI - Pru - Flexible Income Plan Growth - NIL (31st March 2018 : - 5,176.81
1989086.936 units of `260.2065each)
Kotak Low duration Fund Standard Growth (Regular Plan) - NIL - 5,473.91
(31st March 2018; 257840.784 units of `2122.9824 each)
Birla Sunlife Savings Fund - Growth Regular Plan - 1486.60 units 5.49 5.08
of `368.9824 each (31st March 2018: 1486.60 units of `341.9069
each)
Aditya Birla Sunlife Savings Cash Manager - NIL (31st March 2018 - 2,579.55
617775.12 units of `417.5546 of each)
Franklin Ultra Short Term Fund - SIP - Growth - 21636685.43 units 5,683.70 5,204.29
of `26.2888 each (31st March 2018; 21636685.43 units of `24.0531
each)
Baroda Pioneer Treasure Advantage - NIL (31st March 2018 ; - 5,186.75
255109.993 units of `2033.1430 each)
IDFC Ultra Short Term Fund - 6305779.878 units of `26.4976 each 1,670.88 1,552.83
(31st March 2018; 6305779 units of `24.6253 each)
IDFC Credit Opprtunities Fund - Reular Plan - NIL (31st March 2018; - 2,056.27
19183578.17 units of `10.7189 each)
Franklin India Low Duration Fund - Growth - NIL (31st March 2018; - 5,197.00
26016733.96 units of `19.9756 each)
Reliance Regular Savings Fund - Debt Plan - G - G. Option - NIL - 2,061.69
(31st March 2018 ; 8516690.584 units of `24.2077 each)
Reliance Corporate Bond Fund - Growth Plan - NIL (31st March - 2,045.48
2018; 14596941.94 units of `14.0131 each)
L & T Income Opportunities Fund - NIL (31st March 2018; 10339176.19 - 2,058.26
units of `19.9074 each)
Kotak Income Opportunities Fund - Growth Regular - NIL (31st - 2,061.47
March 2018; 10778765.83 units of `19.1253 each)
Kotak Low duraiton Fund - Standard Plan (G)- 343284.732 units of 7,849.05 1,814.07
`2286.4203 each (31st March 2018; 85448.948 units of `2122.9824
each)
Reliance Money Manager - Growth plan growth option - NIL (31st - 2,587.41
March 2018; 108053.089 units of `2,394.5731 each)
IDFC arbitrage fund-monthly dividend (R.P.) - 28465906.623 3,625.76 -
units of `12.7372 each (31st March 2018 NIL)
Kotak equity arbitrage fund - regular (DRI) - 20754414.483 units 4,787.34 -
of `23.0666 each (31st March 2018 NIL)
Reliance arbitrage advantage fund - regular (DIR) - 86216525.637 9,161.63 -
units of `10.6263 each (31st March 2018 NIL)
Reliance liquid fund-treasury plan(G) - growth option(LFIGG) - 2,163.75 -
47688.022 units of 4539.2103 each (31st March 2018: NIL)
SBI Magnum low duration fund - 243093.077 units of `1010.54 2,456.56 -
each (31st March 2018 NIL)
SBI Magnum ultra short duration fund - 482917.040 units of 8,089.01
`1675.03 each (31st March 2018 NIL)

186 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
Franklin Templeton India Savings Fund - 25,16,496.925 units of 252.19 -
`10.0215 each (31st March 2018: NIL units)
48,386.77 55,308.56

Aggregate amount of quoted investments and market value 53,117.16 55,308.56

thereof
Aggregate amount of unquoted investments - -
Aggregate amount of impairment in the value of investments - -

7. Loans :
As at As at
Description of Assets
31st March 2019 31st March 2018
a.) Non Current
Unsecured, considered good
Loans to employees 95.67 61.69
95.67 61.69
b.) Current
Unsecured, considered good
Loans to employees 97.96 95.53
Total 97.96 95.53

8. Other Financial Assets :

As at As at
31st March 2019 31st March 2018
Non Current
Unsecured, considered good
Margin Money Accounts* 39.22 67.06
Security deposits 695.79 553.58
Share application money pending allotment 9.51 -
744.52 620.64
* Margin Money deposits with bank of a carrying amount of `39.22 Lakhs (31st March 2018: 67.06 Lakhs) are lien
marked for import L.C.s and for issuance of SBLC for Anti Dumping Duty purpose to US Customs Authorities.

9. Other Assets :
As at As at
31 March 2019
st
31 March 2018
st

a.) Non Current

Unsecured, considered good
Capital advances 217.40 177.32
Taxes paid under protest 121.01 121.01
Total 338.41 298.33

AVANTI FEEDS LIMITED 187

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
b.) Current
Unsecured, considered good
Prepaid expenses 263.29 370.24
Advance for purchases 73.53 66.24
Export incentives receivable 1,604.37 954.78
MEIS Licenses on hand 1,076.28 289.87
Advance to suppliers 220.70 199.27
Interest accrued on electricity deposits 37.42 28.17
Total 3,275.59 1,908.57

10. Inventories (valued at lower of cost or net realizable value)

As at As at
31 March 2019
st
31 March 2018
st

Raw materials (includes good in transit)

In godown 16,159.71 31,762.68
In goods in transit 212.91 183.50
Packing materials 732.77 418.55
Work-in-process 723.08 860.90
Finished goods
Finished goods 10,021.45 13,187.02
Stock-in-transit 7,690.41 4,062.46
Stores and spares 2,365.88 2,006.33
Total 37,906.21 52,481.44

11. Trade receivables

As at As at
31 March 2019
st
31 March 2018
st

Secured & Considered Good : 4,395.37 1,723.73

Unsecured, considered good 624.33 3,279.72
Less: Allowance for bad & doubtful debts (156.01) -
Total 4,863.69 5,003.45

12. Cash and cash equivalents

As at As at
31st March 2019 31st March 2018
Balances with banks :
-In current accounts 5,780.55 645.14
Cash in hand 25.66 26.43
Total 5,806.21 671.57

188 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

13. Other bank balances

As at As at
31st March 2019 31st March 2018
Unpaid dividend accounts 180.28 129.94
Deposit Accounts 12,114.23 0.77
Margin money accounts* 590.55 633.26
Total 12,885.06 763.97

* Margin Money deposits with bank of a carrying amount of `590.55 Lakhs (31st March 2018: 633.26
Lakhs) are lien marked for import L.C.s and for issuance of SBLC for Anti Dumping Duty purpose to
US Customs Authorities.

14. Equity share capital

As at As at
31st March 2019 31st March 2018
Authorised share capital:
15,85,00,000 equity shares of `1/- each (31st March 2018: 1,585.00 1,585.00
7,92,50,000 equity shares of `2/- each)
Issued, subscribed and fully paid up capital:
13,62,45,630 equity shares of `1/- each (31st March 2018: 1,362.46 908.30
4,54,15,210 equity shares of `2/- each)*
Total 1,362.46 908.30

*The Board of Directors of the Company at its meeting held on 09.05.2018, recommended a proposal for sub division
of each equity share of `2/- into two (2) equity shares of ` 1/- each and issue of bonus equity shares in the ratio of 1:2
(after sub division of shares). The split and issue of bonus equity shares resulted in increase in number of shares from
4,54,15,210 equity shares of `2/- each to 13,62,45,630 equity shares of `1/- each. The Company allotted 4,54,15,210
equity shares as fully paid up bonus shares by capitalisation of profits transferred from securities premium reserve
amounting to `438 Lakhs and general reserve amounting to `16.15 Lakhs. which was approved by the shareholders
by means of a special resolution through E.G.M. held on 14.06.2018.

Notes:
(a) Reconciliation of the number of shares outstanding:
Number of shares Amount
Balance at April 1, 2017 4,54,15,210 908.30
Shares issued during the year - -
Balance at 31st March 2018 4,54,15,210 908.30
Shares issued during the year 9,08,30,420 454.16
Balance at 31st March 2019 13,62,45,630 1,362.46

(b) Details of shareholders holding more than 5% shares in the Company

As at 31st March 2019 As at 31st March 2018
% holding % holding
Name of the shareholder Number of Number of
of equity of equity
shares held shares held
shares shares
Equity shares of `1/- each fully paid up
(31st March 2018: `2/- each)
1. Srinivasa Cystine Private Limited 3,62,99,115 26.64 1,20,99,705 26.64

AVANTI FEEDS LIMITED 189

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at 31st March 2019 As at 31st March 2018

% holding % holding
Name of the shareholder Number of Number of
of equity of equity
shares held shares held
shares shares
2. Thai Union Group Public Company Limited 2,10,30,630 15.44 70,10,210 15.44
3. Thai Union Asia Investment Holding Limited 1,19,54,826 8.77 42,74,675 9.41
4. Alluri Indra Kumar 83,30,700 6.11 27,76,900 6.11
5. Alluri Indra Kumar (HUF) 81,89,250 6.01 27,29,750 6.01

As per records of the Company, including its register of shareholders/ members and other declaration
received from shareholders regarding beneficial interest, the above shareholding represent both legal
and beneficial ownerships of shares.

(c) Rights attached to equity shares:

The Company has only one class of equity shares having par value of `1/- per share (previous year
`2/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares
and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive
remaining assets of the company, after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.

(d) Equity shares movement during the 5 years preceding 31st March 2019 on account of Equity
shares issued as bonus
The Company allotted 4,54,15,210 equity shares as fully paid up bonus shares by capitalisation of profits
transferred from securities premium reserve amounting to `438 Lakhs and general reserve amounting
to `16.15 Lakhs, which was approved by the shareholders by means of a special resolution through E.G.M.
held on 14.06.2018.

15. Other equity

As at As at
31st March 2019 31st March 2018
Securities premium 18.85 456.85
General reserve 15,108.13 13,124.28
Retained earnings 1,04,107.24 88,658.54
Total Other Equity 1,19,234.22 1,02,239.67

Securities premium
Balance at beginning of year 456.85 456.85
Less: Utilised for bonus issue (438.00) -
Balance at end of year 18.85 456.85

General Reserve
Balance at beginning of year 13,124.28 9,124.28
Less: Utilised for bonus issue (16.15)
Transferred from Surplus in Statement of Profit and Loss 2,000 4,000.00

190 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at As at
31st March 2019 31st March 2018
Balance at end of year 15,108.13 13,124.28
Retained earnings
Balance at beginning of year 88,658.54 53,053.09
Profit attributable to owners of the Company 27,363.01 44,646.81
Remeasurements of the defined benefit plans (59.24) (121.90)
Profits transferred to General Reserve (2,000.00) (4,000.00)
Dividend declared during the year (including tax thereon) (9,855.07) (4,919.46)
Balance at end of year 1,04,107.24 88,658.54

General Reserve:
The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another and is
not an item of other comprehensive income, items included in the general reserve will not be reclassified
subsequently to statement of profit and loss. The reserve is utilised for Bonus issue in accordance with
the provisions of Companies Act 2013.

Securities premium:
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised for
bonus issue in accordance with the provisions of Companies Act 2013.

16. Non-current borrowings

As at As at
31st March 2019 31st March 2018
Secured
Vehicle loans 105.64 183.68
Total non-current borrowings 105.64 183.68
* Current maturities on long-term borrowings have been disclosed under the head Other current
financial liabilities
Summary of borrowing arrangements
Vehicle loans:
Nature of Security & Terms of Repayment :
Vehicle loans are secured by hypothecation of respective vehicles. The loans are repayable in equal
monthly installments as stipulated in the agreements with the lenders.

17. Other financial liabilities

As at As at
31st March 2019 31st March 2018
a.) Non - Current
Security deposits* 374.50 374.50
Total 374.50 374.50
b.) Current
Current maturities of Long term borrowings (refer note 16)
vehicles loan 160.92 139.06
Unpaid dividend 180.28 129.94
Derivative financial instrument 26.04 65.39
Creditors for capital works 175.82 159.77
Total 543.06 494.16
*Security Deposits taken from dealers for supplying them shrimp feed on credit term. These deposits
carry an interest of @ 9% per annum (31st March 2018: 9% p.a.).

AVANTI FEEDS LIMITED 191

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

18. Provisions
As at As at
31st March 2019 31st March 2018
Provisions (refer note 41)
Provision for gratuity 171.73 246.99
Provision for leave encashment 113.69 114.33
285.42 361.32
a. Non - Current portion 167.74 197.28
b. Current portion 117.68 164.04
Total 285.42 361.32
19. Other Liabilities :
As at As at
31 March 2019
st
31 March 2018
st

a) Non-Current
Unamortised government grants (refer note (i) and (ii) below) 1,335.34 1,486.32
1,335.34 1,486.32

b) Current
Advance from customers 2,503.11 2,873.14
Statutory dues 172.69 237.44
Total 2,675.80 3,110.58

Unamortised government grants includes

(i) Investment subsidy of `500.00 Lakhs received from Andhra Pradesh Food Processing Society,
Government of Andhra Pradesh for setting up of new shrimp processing unit at Yerravaram, East
Godavari District, Andhra Pradesh. There are no unfulfilled conditions or other contingencies attaching
to these grants. As these grants are in relation to property, plant and equipment and buildings, the
same has been capitalised and amortised on a systematic basis over the useful life of respect assets.
The carrying value of the grant as at 31st March 2019 is `421.01 Lakhs (31st March 2018: `470.98 Lakhs).
(ii) Waiver of duties of `1,130.52 Lakhs on import of or domestically sourced property, plant and
equipment, availed under Export Promotion Capital Goods Scheme. There are no unfulfilled conditions
or other contingencies attaching to these grants. As these grants are in relation to property, plant and
equipment, the same has been capitalised and amortised over the useful life of respect assets. The
carrying value of the grant as at 31st March 2019 is `914.32 Lakhs (31st March 2018: `1,015.34 Lakhs).

20. Current borrowings :

As at As at
31 March 2019
st
31 March 2018
st

Secured:
Working capital loan from State Bank India - 364.25
Working capital loan from Axis Bank 667.14 -
Total 667.14 364.25

Notes:
Working capital loan:
Avanti Frozen Foods Private Limited
"The working capital limits, sanctioned by State Bank of India and Axis Bank as at March 31, 2019, are
D8,000.00 lakhs and D4,000.00 lakhs, respectively (March 31, 2018: D7,000.00 lakhs and D2,000.00
lakhs, respectively).

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

The loans are secured by way of first charge on all chargeable current assets of the Company, fixed
assets of shrimp processing Plants at Yerravaram and Gopalapuram, Andhra Pradesh and corporate
guarantee of Avanti Feeds Limited. The working capital loans are repayable on demand and carries
interest rate of LIBOR+55bps p.a. and LIBOR+50bps p.a. on pre-shipment credit in foreign currency
from State Bank of India and Axis Bank, respectively. In case of cash credit facility the interest rates are
8.70% p.a. and 8.65% p.a.from State Bank of India and Axis Bank, respectively.
Note: Debit balance in cash credit accounts as at March 31, 2019 have been grouped under the head
""Cash and cash equivalents"""
Avanti Feeds Limited
(a) Working Capital loans of Rs. NIL ( P.Y. Rs.NIL) was availed from State Bank of India, Industrial Finance
Branch, Hyderabad. The loan is secured by first charge on all current assets, second charge on fixed
assets of the company and personal guarantee of Mr.A.Indra Kumar, Chairman and Managing Director
of the Company. The loan is repayable on demand and carries interest @ 8.70% p.a.
(b) Working capital loans of Rs.Nil (31st March 2018 Rs.Nil) was availed from Cooperative Rabobank
U.A., Mumbai. The loan is secured by first charge on all current assets and second charge on fixed assets
of the Company. The loan is repayable on demand and carries interest @8.50% p.a
Note: Debit balance in cash credit accounts as at March 31, 2019 have been grouped under the head
"Cash and Cash equivalents"
The Company has unutilised cash credit limits of Rs.5500.00 lakhs and Rs. 2000 lakhs as of 31st March
2019 from State bank of India, Industrial Branch, Hyderabad and Rabobank U.A., Mumbai, respectively
for working capital requirements. The company has the right to draw upon this line of credit based on
its working capital requirements.
21. Trade payable
As at As at
31st March 2019 31st March 2018
Dues to micro enterprises and small enterprises (Refer Note below) 886.87 1,511.91
Dues to creditors other than micro enterprises and small 17,104.02 27,142.92
enterprises
17,990.89 28,654.83
Dues to micro and small enterprises:
With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company
is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the
specified period irrespective of the terms with the suppliers. The Company has circulated letter to all
suppliers seeking their status. Response from few suppliers has been received and is still awaited from
other suppliers. In view of this, the liability of interest calculated and the required disclosures made, in
the below table, to the extent of information available with the Company.
As at 31st March 2019 As at 31st March 2018
Principal amount remaining unpaid to any supplier as at 885.87 1,511.91
the end of the accounting year
Interest due thereon remaining unpaid to any supplier 1.00 -
as at the end of the accounting year
The amount of interest paid along with the amounts - -
of the payment made to the supplier beyond the
appointed day
The amount of interest due and payable for the period - -
of delay in making payment (which have been paid but
beyond the appointed day during the year) but without
adding the interest specified under this Act
The amount of interest accrued and remaining unpaid 1.00 -
at the end of the accounting year
The amount of further interest due and payable even in 1.00 -
the succeeding year, until such date when the interest
dues as above are actually paid

AVANTI FEEDS LIMITED 193

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

22. Income Taxes :

(a) Deferred taxes
For the year ended 31st March 2018
Recognised
Recognised
Opening in Other Closing
in profit or
Balance comprehensive balance
loss
income
Deferred tax liabilities/ (assets) in relation to
Depreciation & Amortization 1,001.11 974.22 - 1,975.33
Fair valuation of Investments 129.62 528.25 - 657.87
Fair valuation of derivative instruments 136.35 (158.98) - (22.63)
Others (2.07) 2.86 0.79
Total 1,265.01 1,346.35 - 2,611.36

For the year ended 31 March 2019

st

Recognised
Recognised
Opening in Other Closing
in profit or
Balance comprehensive balance
loss
income
Deferred tax liabilities/ (assets) in relation to
Depreciation & Amortization 1,975.33 (80.12) - 1,895.21
Fair valuation of Investments 657.87 194.45 - 852.32
Fair valuation of derivative instruments (22.63) 14.46 - (8.17)
Provision for doubtful debts - (45.43) (45.43)
MAT Credit Entitlement under Section 115JAA - (920.46) (920.46)
Others 0.79 (0.15) 0.64
Total 2,611.36 (837.26) - 1,774.10

(b) Tax Assets

As at As at
Particulars
31st March 2019 31st March 2018
Non - current tax assets (net of provision for tax) 2,297.56 864.43
Total 2,297.56 864.43

c. Tax Expense recognised in Profit and Loss

For the year ended For the year ended
Particulars
31st March 2019 31st March 2018
Current tax
In respect of the current year 13,170.44 22,456.01
In respect of the earlier years (189.79) -
12,980.65 22,456.01
Deferred tax
In respect of the current year (837.26) 1,346.35
(837.26) 1,346.35
Total tax expense 12,143.39 23,802.36

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(d) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:

Year ended For the year ended

31st March 2019 31st March 2018
Profit before tax 42,805.38 70,450.30
Income tax expense 14,957.91 24,381.00
Weighted average deduction under u/s 35CCC - (85.50)
Deduction u/s 80IB of Income Tax Act (Refer note:1 below) (1,618.76) (152.22)
Exempt income (534.56) (380.76)
Deduction u/s 80IA (Refer note: 2 below) (27.74) (37.60)
14A disallowance 109.15 85.24
Expenses not deductible (11.44) (8.84)
Impact of opening deferred tax liability due to change in (98.90) -
effective tax rate
Tax expense of earlier years (189.79) -
Interest on Income tax 8.91 -
Corporate Social Responcibilty & Donations 82.51 -
Tax impact on subidiary profit subject to lower tax rate (534.24)
Others 0.35 1.04
12,143.39 23,802.36

Note:
1. Avanti Frozen Foods Private Limited has been availing deduction under section 80IB of the Income
Tax Act, 1961 for the new shrimp processing Plant at Yerravaram, East Godavari, Andhra Pradesh,
from the financial year 2017-18. The tax benefit on account of deduction 80IB for the year ended 31st
March 2019 is `1,618.76 Lakhs (year ended 31st March 2018: `152.22 Lakhs).
2. Avanti Feeds Limited has been availing deduction under section 80IA of the Income Tax Act 1961 for
setting up of Wind mills for power generation at Lakkihalli, Chitradurga district, Karnataka, from the
financial year 2011-2012. The tax benefit on account of deduction 80IA for the year ended 31st March
2019 is `27.74 Lakhs (year ended 31st March 2018: `37.60 Lakhs)

23 Revenue from operations

For the year ended For the year ended

31st March 2019 31st March 2018
Sale of Products
Finished goods 3,42,457.73 3,34,650.84
Other operating revenue
Government grant - Export incentives 6,320.22 4,639.47
Total 3,48,777.95 3,39,290.31

24 Other income (net)

For the year ended For the year ended

31st March 2019 31st March 2018
Interest on :
Bank deposits 294.82 36.44
Bonds & Debentures 201.98 -
Others 37.64 38.02
Gain/ (loss) on sale of mutual Fund 1,686.20 668.65
Profit on sale of property, plant and equipment - 2.14

AVANTI FEEDS LIMITED 195

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
Other non-operating income 925.86 329.87
Fair value gain/(loss) on financial instruments measured at 537.82 1,528.66
fair value through profit and loss
Exchange differences (net) - 1,359.07
Fair value gain/(loss) on derivatives measured at fair value (26.05) (369.36)
through profit and loss
Dividend income from investments mandatorily measured 1,537.27 1,100.21
at fair value through profit or loss
Amortisation of government grant 187.19 131.12
Total 5,382.73 4,824.82

25 Cost of materials consumed

For the year ended For the year ended
31st March 2019 31st March 2018
Inventory at the beginning of the year 32,364.73 22,917.44
Add: Purchases 2,58,758.69 2,57,965.40
2,91,123.42 2,80,882.84
Less: Inventory at the end of the year 17,105.39 32,364.72
Cost of materials consumed 2,74,018.03 2,48,518.12

26 Changes in inventories of finished goods and work-in-progress

For the year ended For the year ended

31st March 2019 31st March 2018
Closing Stock:
Finished goods 17,711.86 17,249.48
Work-in-progress 723.08 860.90
18,434.94 18,110.38
Opening Stock:
Finished goods 17,249.48 10,221.35
Work-in-progress 860.90 338.94
18,110.38 10,560.29

Net(increase) /decrease (324.56) (7,550.09)

27 Employee benefits expense

For the year ended For the year ended

31st March 2019 31st March 2018
Salaries, wages and bonus 9,232.24 10,411.49
Contribution to provident and other funds 501.90 399.98
Gratuity expense 109.64 121.65
Staff welfare expenses 188.51 153.88
Total 10,032.29 11,087.00

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

28 Depreciation and amortisation expense

For the year ended For the year ended
31st March 2019 31st March 2018
Depreciation of property, plant and equipment 3,578.08 2,371.91
Amortisation of intangible assets 5.79 3.84
Total 3,583.87 2,375.75

29 Finance costs
For the year ended For the year ended
31st March 2019 31st March 2018
Interest expense
- Interest on bank overdrafts and loans 104.99 160.76
- Interest on income tax 37.47 -
Other borrowing costs 120.21 135.64
Total 262.67 296.40

30 Other expenses
For the year ended For the year ended
31st March 2019 31st March 2018
Rent (Refer Note i) 319.02 185.69
Power and fuel 5,352.01 4,926.33
Repairs and maintenance;
- Buildings 286.87 174.49
- Plant and machinery 380.88 270.69
- Others 22.49 9.77
Consumable stores 2,206.75 2,073.73
Other manufacturing expenses 5,111.29 3,623.52
Rates and taxes 198.42 248.27
Insurance 420.51 272.73
Electricity Charges 8.59 8.65
Vehicle maintenance 154.74 91.82
Travelling and conveyance 618.00 518.96
Communication expenses 74.27 58.78
Printing and stationery 51.85 44.15
Directors' Sitting Fee 24.64 9.60
Auditors Remuneration (refer note (ii)) 58.64 37.82
Professional charges 196.24 222.78
Corporate Social Responsibility (refer note iii) 498.70 605.03
Corporate Social Responsibility (refer note iii)
Donations 17.00 5.02
Bank charges 228.80 183.09
Assets written off 6.04 18.37
Advertisement 15.75 24.10
Carriage outward 431.94 477.37
Ocean freight and export expenses 3,075.40 2,066.59
Marketing expenses 2,155.96 1,100.16
Royalty 1,049.29 1,271.10
Loss on sale of fixed assets 25.53 3.04
Bad debts written off - 19.14

AVANTI FEEDS LIMITED 197

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

For the year ended For the year ended

31st March 2019 31st March 2018
Allowance for bad and doubtful debts 156.01 -
Exchange fluctuation (Net) 634.01 -
General expenses 547.77 419.86
Total: 24,327.41 18,970.65

Notes:
i) Operating leases:
Lease payments made under operating leases aggregating to `319.02 Lakhs (31st March 2018: `185.69
Lakhs) have been recognized as an expense in the Statement of Profit and Loss. The future minimum
lease commitments under non-cancellable operating leases are Nil.
For the year ended For the year ended
31st March 2019 31st March 2018
ii) Auditors' remuneration comprises of:
As Auditors 35.70 28.03
Tax Matters 10.03 1.18
Other Services 6.80 4.72
Reimbursement of expenses 6.11 3.89
Total 58.64 37.82
iii) Corporate Social Responsibility
Others 498.70 110.95
Agricultural extension projects - 494.08
Total 498.70 605.03

31 Exceptional items :
For the year ended For the year ended
31st March 2019 31st March 2018
Income
Anti Dumping duty refund 518.70 -
Total 518.70 -
Expenditure
Anti Dumping duty - 78.88
Total 518.70 (78.88)

The exceptional item of `518.70 Lakhs for the year ended 31st March 2019 is refund of differential anti
dumping duty (net of expenses) on final determination by the Department of Commerce, USA on the
exports made by the company during the financial years from 2015-16 to 2016-17 and provision (Previous
Year `78.88 Lakhs is differential anti dumping duty)

32 Fair value measurements

As at 31st March 2019 As at 31st March 2018

Financial instruments by category Amortised Amortised
FVPL FVPL
Cost Cost
Financial Assets
Investments
- in equity instruments (quoted) - 2.81 - 3.77

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at 31st March 2019 As at 31st March 2018

Financial instruments by category Amortised Amortised
FVPL FVPL
Cost Cost
- in equity instruments (unquoted) 109.18 - 12.00 -
- in mutual funds - 48,386.77 - 55,308.56
- in Secured Bonds 2,609.27
- Non Convertible debentures 2,121.12 6,641.53
Trade receivables 4,863.69 - 5,003.45 -
Cash and cash equivalents 5,806.21 - 671.57 -
Other bank Balances 12,924.28 - 831.03 -
Loans 193.63 - 157.22 -
Security deposits 695.79 - 553.58 -
Total Financial Assets 29,323.17 55,031.11 7,228.85 55,312.33

31st March 2019 31st March 2018

Amortised Amortised
FVPL FVPL
Cost Cost
Financial Liabilities
Borrowings 772.78 - 547.93 -
Current maturities of long term debt from banks 160.92 - 139.06 -
Security deposits 374.50 374.50 -
Trade payables 17,990.89 - 28,654.83 -
Derivative financial instrument - 26.04 - 65.39
Capital creditors 175.82 - 159.77 -
Total Financial Liabilities 19,474.91 26.04 29,876.09 65.39

(i) Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered to be
same as their fair values, due to their short term nature. In absence of specified maturity period, the
carrying amount of the non-current financial assets and non-current financial liabilities such as security
deposits given, are considered to be same as their fair values.

The fair value of quoted equity investments, has been classified as Level 1 in the fair value hierarchy
as the fair value has been determined on the basis of market value. The fair value of unquoted equity
instruments has been classified as Level 2 in the fair value hierarchy as the fair value has been determined
on the basis of discounted cash flows. The fair value of mutual funds is classified as Level 2 in the fair
value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared
by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the
fair value hierarchy as the fair value has been determined on the basis of mark-to-market provided
by the Bank from which the contract has been entered. The corresponding changes in fair value of
investment is disclosed as ‘Other Income’.

AVANTI FEEDS LIMITED 199

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

33 Financial Risk Management

The Group’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk.

Exposure arising
Risk Measurement Management
from
Credit Risk Cash and cash Ageing analysis Credit monitoring for customers.
equivalents, trade Credit ratings of Diversification of bank deposits.
receivables, security customers and
deposits, other bank fellow subsidiaries
deposits and loans
Liquidity Risk Borrowings Cash flow forecasts Working capital management by Deputy
managed by Joint General Manager in under the guidance
Managing Director of Joint Managing Director.
(JMD). The excess liquidity is channelised
through mutual funds and bank deposits.
Market Risk - Long term Sensitivity analysis Capital is managed by Managing Director.
interest rate borrowings at The capital requirements are managed
variable rate by analyzing the funds requirement and
budgets in conjunction with the strategic
plan.
Market Risk - From investment in Market and price The portfolio is not large and the risk is
Price risk equity shares sensitivity analysis. not significant.
Market Risk Future commercial Cash flow Forward foreign exchange contracts
- foreign transactions forecasting
exchange rate (receivable/ Sensitivity analysis
payables)

The Group’s risk management is carried out by The Marketing GM undertakes the credit
the JMD under policies approved by the Board of analysis of each customer before transacting.
Directors. The Board provides guiding principles The finance team under the guidance of
for overall risk management, as well as policies Marketing GM also periodically review the
covering specific areas such as interest rate risk, credit rating of the customers and follow up
credit risk and investment of excess liquidity on long outstanding invoices.

Credit Risk The Group considers the probability of default

(i) Credit Risk Management upon initial recognition of asset and whether
there has been a significant increase in credit
Credit risk arises from cash and cash
risk on an on going basis through out each
equivalents, loans to related parties, security
reporting period. To assess whether there is
deposits and deposits with banks and financial
a significant increase in credit risk the Group
institutions, as well as credit exposures to
compares the risk of a default occurring on the
customers including outstanding receivables.
asset as at the reporting date with the risk of
Credit risk is managed by the Marketing General default as at the date of initial recognition. It
Manager of AFL. The Group has few customer considers available reasonable and supportive
with most of them being foreign customers. The forwarding-looking information. The below
Group provides a credit period of 60-90 days factors are considered:
which is in line with the normal industry practice.

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are
expected to cause a significant change to the borrower’s ability to meet its obligations.
- actual or expected significant changes in the operating results of the borrower.
- significant increase in credit risk on other financial instruments of the same borrower.
- Significant changes in the expected performance and behaviour of the borrower, including
changes in the payment status of the borrower in the Company and changes in operating results
of the borrower.
Macro economic information (such as regulatory changes, market interest rate or growth rates)
is incorporated as part of the internal rating model. In general, it is presumed that credit risk has
significantly increased since initial recognition if the payments are more than 180 days past due.
A default on a financial asset is when the counterparty fails to make contractual payments within
365 days of when they fall due. This definition of default is determined by considering the business
environment in which the entity operates and other macro-economic factors.

(ii) Provision for expected credit losses

The Group provides for expected credit loss based on the following:
Basis for recognition of expected credit loss
provision
Category Description of category Deposits and
Trade
Investments other financial
receivables
assets
High quality Assets where there is low risk of 12-month 12-month Life time
assets, low default and where the counter party expected credit expected credit expected
credit risk has sufficient capacity to meet the losses losses credit losses
obligations and where there has
been low frequency of defaults in
the past
Medium risk, Assets where the probability of 12-month 12-month Life time
moderate default is considered moderate, expected credit expected credit expected
credit risk counter party where the capacity to losses losses credit losses
meet the obligation is not strong
Doubtful Assets are written off when there Asset is written off
assets, credit is no reasonable expectation
impaired of recovery, such as a debt or
declaring bankruptcy or failing
to engage in are payment plan
with the Group. Where loans or
receivables have been written off,
the Group continues to engage in
enforcement activity to attempt to
recover the receivable due. Where
recoveries are made, these are
recognised in profit or loss.

AVANTI FEEDS LIMITED 201

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Year Ended 31st March 2019

Expected credit losses for loans, deposits and other receivables , excluding trade receivables
Carrying
Estimated gross Expected Expected
Asset amount net of
Particulars carrying amount probability of credit
Group impairment
at default default losses
provision
Loss allowance Loans & 285.47 32% 91.84 193.63
measured at 12 month Advances
expected credit losses - Security 695.79 0% - 695.79
Financial assets for deposits
which credit risk has not
-
increased significantly
since initial recognition Other bank 12,924.28 0% - 12,924.28
balances

Year Ended 31st March 2018

Expected credit losses for loans, deposits and other receivables , excluding trade receivables
Estimated Carrying
Expected Expected
gross carrying amount net of
Particulars Asset Group probability credit
amount at impairment
of default losses
default provision
Loss allowance measured Other bank 831.03 0% - 831.03
at 12 month expected balances
credit losses - Loans & 248.62 37% 91.40 157.22
Financial assets for Advances
which credit risk has not
Security 553.58 0% - 553.58
increased significantly
deposits
since initial recognition

Expected credit loss for trade receivables under simplified approach

Year ended 31st March 2019
181 - 365 More than
Ageing Not due 1-90 days 91-180 days Total
days 365 days
Gross carrying amount 3,126.66 1,669.96 34.61 23.03 165 5,019.71
Expected loss rate 0% 0% 0% 25% 91% 3.10%
Expected credit loss - - - 5.68 150.34 156.02
Carrying amount of 3,126.66 1,669.96 34.61 17.35 15.11 4,863.69
trade receivables (net of
impairment)

Year ended 31st March 2018

181 - 365 More than
Ageing Not due 1-90 days 91-180 days Total
days 365 days
Gross carrying amount 2,613.50 2,146.49 243.47 - - 5,003.45
Expected loss rate 0% 0% 0% 0% 0% 0%
Expected credit loss - - - - - -
Carrying amount of 2,613.50 2,146.49 243.47 - - 5,003.45
trade receivables (net of
impairment)

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Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Reconciliation of expected credit loss - Trade receivables

Expected credit loss on April 01, 2017 -
Changes in loss allowance -
Expected credit loss on March 31, 2018 -
Changes in loss allowance 156.01
Expected credit loss on March 31, 2019 156.01
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.

The finance team monitors rolling forecasts of the Group’s liquidity position and cash and cash
equivalents on the basis of expected cash flows and any excess/short liquidity is managed in the form
of current borrowings, bank deposits and investment in mutual funds.

(i) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments and exclude the impact
of netting agreements.

Contractual cash flows

Carrying More than 5
31st March 2019 Total 0-1 year 1-2 years 2-5 years
amount years
Borrowings 933.70 933.70 828.05 89.47 16.17 -
Trade payables 17,990.89 17,991 17,991 - - -
Derivative financial 26.04 26.04 26.04 - - -
instrument
Security deposits 374.50 - - - - -
Capital creditors 175.82 176 176 - - -
19,501 19,126 19,126 - - -

Contractual cash flows

Carrying More than 5
31st March 2018 Total 0-1 year 1-2 years 2-5 years
amount years
Borrowings 686.99 686.99 686.99
Trade payables 28,654.83 28,654.83 28,654.83 - - -
Derivative financial 65.39 65.39 65.39 - - -
instrument
Security deposits 374.50 -
Capital creditors 159.77 159.77 159.77
29,941.48 29,566.98 29,566.98 - - -

Market Risk - Interest Risk

The Group’s main interest rate risk arises from long term and short term borrowings with variable rates,
which exposes the Group to cash flow interest rate risk.
The exposure of the Group to interest rate changes at the end of the reporting period are as follows:

AVANTI FEEDS LIMITED 203

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

31st March 2019 31st March 2018

Variable rate borrowings - -
Total - -

At the end of the reporting period, the Company had the following variable rate borrowings and
receivables:

31st March 2019 31st March 2018

% of total % of total
Weighted Weighted
outstanding outstanding
Average Balance Average Balance
payable/ payable/
Interest rate % Interest rate %
receivable receivable
Financial Liabilities
Long term borrowings - - - - - -
Current borrowings - - - - - -

Sensitivity
The profit or loss is sensitive to higher/lower interest expense as a result of changes in interest rates.

Impact on profit after tax

31st March 2019 31st March 2018
Interest rate - Increases by 100 basis points - -
Interest rate - Decreases by 100 basis points - -

Market risk - Price risk

The Group’s investments in quoted equity securities is limited , there is no exposure to price risk.
Foreign currency risk
The Group is exposed to foreign exchange risk arising from foreign currency transactions, mainly in the
nature of sales denominated in foreign currencies and other expenditures. As a policy, the Group does
not hedge any of its exposure to foreign currency. The Group’s exposure to foreign currency risk at the
end of the reporting period are as follows:

As at 31st March 2019 As at 31st March 2018

Amount in Amount in Amount in Amount in
Foreign Currency ` (Lakhs) Foreign Currency ` (Lakhs)
Trade and other payables
USD 24,89,450 1,721.61 51,05,110 3,340.68
EURO - - - -
Working Capital loans
USD 9,58,797 663.21 5,60,000 364.25
Balance in EEFC account
USD 67,60,942 4,676.63 54715.26 35.59
Advance to suppliers
USD 1,17,625 81.36 1,77,116 114.27
EURO - - 50,840 40.62
Trade Receivables
USD 50,80,133 3,470.99 47,03,526 3,090.14
EURO 1,57,818 122.63 - -

204 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

As at 31st March 2019 As at 31st March 2018

Amount in Amount in Amount in Amount in
Foreign Currency ` (Lakhs) Foreign Currency ` (Lakhs)
Derivatives outstanding Forward
contracts
To buy USD 12,59,750 882.88 - -
To sell USD 83,90,553 5,779.44 1,85,54,500 12,007.44

Share application money

pending allotment
IDR 19,56,18,482 9.51 - -
19,71,55,950 1,079.74 (1,92,33,412.74) (12,431.75)
Net Exposure Receivable/ 13,79,650 947.60 (1,92,84,252.74) (12,472.37)
(Payable) in USD

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency
denominated financial instruments, as detailed below

Impact on profit after tax and

equity
As at 31st March 2019 As at 31st March 2018
Increase in USD rate by 1% 9.48 (124.72)
Decrease in USD rate by 1% (9.48) 124.72

34
Capital management

(a) Risk Management

The Group’s objectives when managing capital are to

> safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and

> Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group has been maintaining a steady dividend.

The Group’s capital structure is largely equity based. It monitors capital on the basis of the following
gearing ratio: Net debt divided by Total ‘equity’ (as shown in the balance sheet).

The gearing ratios were as follows:

As at 31st March 2019 As at 31st March 2019

Net debt 933.70 686.99
Total equity 1,35,729.96 1,14,985.29
Net debt to equity ratio 1% 1%

AVANTI FEEDS LIMITED 205

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(b) Dividends
31st March 2019 31st March 2018
Equity shares
i) Final dividend for the year ended 31st March 2018 of `6/- 8,174.74 4,087.37
(31 March 2017 `9/-) per fully paid share.
ii) Dividends not recognised at the end of the reporting period
iii) In addition to the above dividends, since year end the directors 5,449.83 8,174.74
have recommended the payment of a final dividend of `4/- per
fully paid equity share (31st March 2018 – `6/-). This proposed
dividend is subject to the approval of shareholders in the ensuing
annual general meeting.

35 Contingent Liabilities

31st March 2019 31st March 2018

Demands raised by customs, service tax, sales tax, income tax 90.04 3,093.59
and other authorities, being disputed by the Company *
Corporate guarantee given under a Multiple Banking 15,000.00 11,506.00
Arrangement to SBI and Axis Bank in favour of loan taken by
Avanti Frozen Foods Private Limited

* Details of demands raised by customs, service tax, sales tax, income tax and other authorities :

Period to which the Forum where

Name of the Statute Nature of the Dues Amount
amount relates dispute is pending
Madhya Pradesh Sales tax (MP VAT 29.22 2005-2006 High Court of
VAT Act, 2002 demand for soya Madhya Pradesh
transactions in 2005-06)
Customs Act, 1962 Customs duty 60.82 2009 -2010 to 2011- CESTAT, Chennai
2012
Total 90.04

i) The Company purchased soya bean in the year 2004-05, converted the same in to DOC in 2005-
06 and used some part for own consumption in manufacturing of shrimp feed and some part
was exported. The resultant soya oil was sold locally. The Commercial Tax Act pertaining to soya
bean processing and soya oil sale was amended with effect from 13.12.2004 and Commercial Tax
department took the view that the soya bean purchased prior to 13.12.2004 will attract tax at old
rates and a demand to `29.22 Lakhs was raised. This is being contested by the Company in the High
Court of Madhya Pradesh.
ii) Company is importing Squid Liver Powder (SLP) which is one of the raw materials for manufacturing
of shrimp feed. SLP is imported by the Company under raw material classification. However, Customs
has disputed our claim and demanding duty applicable for import of complete feed. Company
appealed against the order of Commissioner of Customs (Appeals), Chennai before CESTAT,
Chennai.
The Company is contesting the demands and the management, including its tax advisors, believe
that its position will likely be upheld in the appellate process. No tax expense has been accrued in the
financial statements for the tax demand raised. The management believes that the ultimate outcome
of this proceeding will not have a material adverse effect on the company’s financial position and
results of operations.
2) The Company has given corporate guarantee of `15000.00 Lakhs as on 31.03.2019 (`11506.00 Lakhs

206 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

as on 31.03.2018) to State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad and
Axis Bank Limited, Begumpet, Hyderabad for loan facilities availed by Avanti Frozen Foods Private
Limited.

36 Commitments
Estimated amount of contracts remaining to be executed to the extent not provided for (net of
advances) `327.87 Lakhs (31st March 2018 `392.68 Lakhs)

37 Earnings per share

31st March 2019 31st March 2018

Profit attributable to equity holders of parent entity 27,363.01 44,646.81
Net Profit for calculation of Basic and Diluted EPS (A) 27,363.01 44,646.81
Weighted average number of equity shares for Basic EPS (B) 13,62,45,630 13,62,45,630
(nos.)
(a) Basic earnings per share (in INR) (A/B) 20.08 32.77

Note:
There is no dilution to the Basic Earnings per Share as there are no dilutive potential equity shares.
* during the year ended 31st March 2019 the (I) Each equity share of `2/- was split to two (2) equity shares
of `1/- each and (II) bonus equity shares in the ratio of 1:2 (after sub division of shares) were alloted. The
split and issue of bonus equity shares resulted in increase in number of shares from 4,54,15,210 equity
shares of `2/- each to 13,62,45,630 equity shares of `1/- each. Accordingly, as per requirement of Ind as
33, earning per share has been computed by taking the increased number of shares for all the periods
reported.

38 Corporate social responsibility expenditure

a) Expenditure related to CSR as per section 135 of companies act, 2013 red with schedule VII thereof,
against the manditory spend of `833.91 Lakhs
b) Amount spent during the year on:
As at As at
Particulars
31st March 2019 31st March 2018
Revenue expenditure on CSR activities 496.80 605.03
Total 496.80 605.03

39
Segment reporting
The Company’s Chairman and Managing Director (CMD) examines the group’s performance both
from a product and geographic perspective and has identified the following segments of its business:
Shrimp Feed is manufactured & marketed to the farmers, which is used in Aqua culture to grow
shrimp.
Shrimp are purchased from the farmers and are further processed and exported to various countries.
The Group had installed four wind mills of 3.2MW at Chitradurga, Karnataka. Power generated from
wind mills is sold to BESCOM under Power Purchase agreement.

AVANTI FEEDS LIMITED 207

208
Shrimp Feed Shrimp Processing Power Unallocated Total
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Revenue
External Sales 2,73,706.27 2,81,008.51 75,251.99 58,117.95 136.07 163.85 - - 3,49,094.33 3,39,290.31
Inter-segment (316.38) (316.38) -
sales

ANNUAL REPORT 2018-19

Total 2,73,389.89 2,81,008.51 75,251.99 58,117.95 136.07 163.85 - - 3,48,777.95 3,39,290.31
Revenue

Segment
Result
Operating 28,698.93 59,577.93 8,426.99 6,257.56 15.00 53.40 37,140.92 65,888.89
Profit
Share of Profit - - 25.71 111.88 25.71 111.88
/ (Loss) from
Associates
Minority - - - - -
interest
Other Income 209.42 227.36 955.65 1,306.82 9.00 4,208.66 3,290.63 5,382.73 4,824.81
Interest 124.58 107.27 138.09 171.98 - 0.00 17.15 262.67 296.40
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Expense
Exeptional - - - - - 518.70 (78.88) 518.70 (78.88)
item
Income Tax - - - 1,996.90 1,748.46 - 10,983.75 20,707.55 12,980.65 22,456.01
Current Tax
- Deferred - - (1,071.25) 632.57 - 233.98 713.78 (837.26) 1,346.35
Tax
Net Profit 28,783.77 59,698.02 8,318.89 5,011.37 49.71 165.28 (6,490.37) (18,226.72) 30,662.00 46,647.94
after tax

Other
Information
Segment 58,412.79 55,812.64 35,856.79 32,504.86 3,722.88 3,754.62 63,489.39 60,554.17 1,61,481.85 1,52,626.29
Assets
Segment 15,638.86 25,504.40 4,055.11 4,007.54 - 10.74 6,057.92 8,118.32 25,751.89 37,641.00
Liabilities
Notes to Consolidated Financial Statements for the year ended 31st March 2019

Capital 42,773.93 30,308.24 31,801.68 28,497.32 3,722.88 3,743.88 57,431.47 52,435.85 1,35,729.96 1,14,985.29
Employed
1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Based on the Revenue attributable to the individual customers located in various parts of the world,
the company’s business is organized into three key geographic segments, viz., India, USA and Rest of
World.

India USA Rest of the world

For the Year Ended For the Year Ended For the Year Ended
31st March 31st March 31st March 31st March 31st March 31st March
2019 2018 2019 2018 2019 2018
Revenue 2,80,932.35 2,85,851.68 52,723.24 45,921.23 15,438.75 7,517.40
Location of 1,57,896.73 1,50,062.20 2,122.90 1,753.86 1,462.22 810.23
assets
Additions to 2,439.27 8,366.29 - - - -
fixed assets

The Group does not have any individual customer that attributes to more than 10% of the revenue.

40 Related party disclosures

1. Names of related parties and related party relationship:

Related parties with whom transactions have taken place during the year
Key Managerial Personnel (KMP) Sri A. Indra Kumar, Chairman and Managing Director
Sri C. Ramachandra Rao, Joint Managing Director,
Company Secretary and CFO
A.Nikhilesh Chowdary, Executive Director (with effect from
June 01, 2018)

Relatives of Key Managerial Personnel Sri A. Venkata Sanjeev, Manager Operation, AFL
Sri A. Nikhilesh Chowdary, Executive Director,AFFPL

Entities having significant influence Thai Union Group PCL, Thailand ("TUG")
over the Company
Tri-union Frozen Products Inc.
(Chicken of the Sea Frozen Foods) (a subsidiary of TUG)
Thai Union China Co. Ltd. (a subsidiary of TUG)
Thai Union Feed Mill Co. Ltd. (a Subsidiary of TUG)

Associate Companies Srivathsa Power Projects Limited

Patikari Power Private Limited

Companies in which KMP are interested Srinivasa Cystine Private Limited

SCL Trading Private Limited
Sanjeev Agro Vet Private Limited
Sri Sai Srinivasa Agro Farms & Developers Private Limited

AVANTI FEEDS LIMITED 209

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

2. Related party transactions

The following table provides the total amount of transactions that have been entered into with
related parties for the relevant financial year:
Entities having
Key Management Entities where KMP
Associate Companies significant Influence
Personnel are interested
over the Company
Particulars
For the year ended For the year ended For the year ended For the year ended
31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March
2019 2018 2019 2018 2019 2018 2019 2018
Remuneration 2,939.30 5,113.58 - - - - - -
Rent paid 3.37 5.00 - - - - 2.55 2.53
Rent Received - - 1.20 1.20 - - 0.49 0.49
Royalty paid 1,049.29 1,271.10
Dividend paid 1,075.34 537.67 - - 2,031.29 1,026.19 2,432.06 1,216.03
Sale of 29,444.89 8,299.56
products
Purchase of 34.73 -
goods

Year end Balances

Entities having
Key Management
Associate Companies significant Influence
Personnel
over the Company
Particulars
As at As at As at
31 March
st
31 March
st
31 March
st
31 March
st
31 March 31 March
st st

2019 2018 2019 2018 2019 2018

Remuneration payable 2,343.15 4,604.73 - - - -
Royalty 180.46 260.52
Investment - - 3,146.47 3,120.76 - -
Trade Receivables 1,605.12 311.36

41 Employee Benefits
(i) Leave obligations
The leave obligations cover the group’s liability earned leave.
Based on past experience, the Group does not expect all employees to take the full amount of
accrued leave or require payment within the next 12 months. The following amounts reflect leave that
is expected to be taken or paid within the next 12 months:
31st March 2019 31st March 2018
Current leave obligations expected to be settled within the next 65.19 -
12 months

(ii) Defined Contribution Plans

The Group also has certain defined contribution plans. Contributions are made to provident fund
(at the rate of 12% of basic salary), Employee State Insurance and Super Annuation fund in India for
employees as per regulations. The contributions are made to registered funds administered by the
government. The obligation of the Group is limited to the amount contributed and it has no further
contractual nor any constructive obligation. The expense recognised during the period towards
defined contribution plan is `450.73 Lakhs (31 March 2018 `387.96 Lakhs)

210 ANNUAL REPORT 2018-19

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Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(iii) Post employment benefit obligation Gratuity

The Group 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 15 days salary multiplied for the number of years of service. The
gratuity plan is a funded plan. The Group does not fully fund the liability and maintains a target
level of funding to be maintained over a period of time based on estimations of expected gratuity
payments.
Balance sheet amounts- Gratuity
The amounts recognised in the balance sheet and the movements in the defined benefit obligation over
the year are as follows:
31st March 2019 31st March 2018
Particulars Present Fair value Present Fair value
Net Net
value of of plan value of of plan
amount amount
obligation assets obligation assets
Opening balance 605.72 358.79 246.93 343.54 294.88 48.66
Current Service Cost 90.64 - 90.64 54.23 18.91 35.32
Past Service Cost - - - 50.11 50.11
Interest expense/(income) 46.61 - 46.61 21.83 0.64 21.19
Interest income - 27.60 (27.60) - - -
Contributions - - - -
Total amount recognised in 137.25 27.60 109.65 126.17 19.55 106.62
profit or loss
Remeasurements
Return on plan assets, - 6.82 (6.82) - - -
excluding amounts included in
interest expense/(income)
(Gain)/loss from change in 40.64 - 40.64 -
demographic assumptions
(Gain)/loss from change in 1.48 - 1.48 12.10 12.10
financial assumptions
Experience (gains)/losses 26.94 - 26.94 114.04 114.04
Total amount recognised in 69.06 6.82 62.24 126.14 - 126.14
other comprehensive income
Employer contributions - 247.09 (247.09) 48.80 (48.80)
Benefit payments (10.86) (10.86) - (9.19) (9.19) -
Closing Balance 801.17 629.44 171.73 586.66 354.04 232.62

The net liability disclosed above relates to funded and unfunded plans are as follows:

31st March 2019 31st March 2018

Present value of funded obligations 801.17 586.66
Fair value of plan assets 629.44 354.04
Deficit of funded plan 171.73 232.62
Unfunded plans - -
Deficit of gratuity plan 171.73 232.62

AVANTI FEEDS LIMITED 211

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

(ii) Significant estimates: actuarial assumptions

The significant actuarial assumptions for defined benefit obligation are as follows:

31st March 2019 31st March 2018

Discount rate 7.70% 8.00%
Salary escalation rate 10.00% 10.00%
Employee attrition rate 10.00% 10.00%
Assumptions regarding mortality rate are set based on actuarial IALM (2006-08) Ult.
advice in accordance with published statistics.

(iii) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

Decrease in
Change in assumption Increase in assumption
assumption
31st 31st 31st 31st 31st 31st
March March March March March March
2019 2018 2019 2018 2019 2018
(`in (`in (`in (`in (`in (`in
Lakhs) Lakhs) Lakhs) Lakhs) Lakhs) Lakhs)
Discount rate 1.00% 1.00% Decrease by 71.66 38.76 Increase by 84.20 43.82
Attrition rate 1.00% 1.00% Decrease by 29.02 23.66 Increase by 42.62 38.82
Salary 1.00% 1.00% Increase by 74.35 39.84 Decrease by 65.70 36.14
escalation rate

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the
same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit
liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared to the prior period.

(iv) The major categories of plan assets are as follows

31st March 2019 31st March 2018
Funds managed by Life Insurance Corporation of India 629.44 354.04
Total 629.44 354.04

(v) Risk exposure

Through its defined benefit plan, the Group is exposed to a number of risks, the most significant of
which are detailed below:

Asset volatily: The plan liabilities are calculated using a discount rate set with reference to bond yields;
if plan assets underperform this yield, this will create a deficit. The Group’s plan assets are insurer
managed funds and are subject to less material risk.

212 ANNUAL REPORT 2018-19

1-25 26-97 98-214
Company Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Changes in bond yields: A decrease in bond yields will increase plan liabilities and the Group ensures
that it has enough reserves to fund the liability

(vi) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans for the year ending 31st March 2020 is D277.69
lakhs.
Less than a year Between 2-5 years Between 6-10 years More than 10 years
31-March-20
Gratuity 75.97 241.83 368.13 1,423.31
Total 75.97 241.83 368.13 1,423.31

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

43 Additional information, as required under Schedule III to the Companies Act, 2013, of enterprises
consolidated as subsidiary/Associates
(`In Lakhs)
As at 31st March 2019
Net Assets, i.e., total Share in other Share in total
Share in profit or
assets minus total comprehensive comprehensive
loss
liabilities income income

Parent
Avanti Feeds Limited 81.25% 97,988.88 72.89% 22,349.48 87.91% (54.72) 72.86% 22,294.76

Subsidiaries:
Indian
1 Svimsan Exports -0.08% (92.13) 0.00% (0.44) 0.00% 0 0.00% (0.44)
and Imports Private
Limited
2 Avanti Frozen 18.82% 22,699.93 16.14% 4,948.47 7.26% (4.52) 16.16% 4,943.95
Foods Private Limited
Total 1,20,596.68 27,297.51 (59.24) 27,238.27

Minority Interests in
all subsidiaries
1 Avanti Frozen Foods 15,133.28 3,298.98 (3.01) 3,295.97
Private Limited
Consolidated 1,35,729.96 30,596.48 (62.25) 30,534.23

Associates
(Investment as per
the equity method);
Indian
1 Srivathsa Power 1.77% 2,129.64 -0.36% (111.74) 0.00% (0.72) -0.37% (112.46)
Projects Limited
2 Patikari Power 0.84% 1,016.84 0.45% 137.45 1.30% (0.81) 0.45% 136.64
Private Limited

AVANTI FEEDS LIMITED 213

 Notes to Consolidated Financial Statements for the year ended 31st March 2019
(All amounts in Lakhs in Indian Rupees, unless otherwise stated)

Part A : Subsidiaries:

Salient features of financial statements of subsidiaries as per the Companies Act, 2013.

Name
Profit/ Profit/ Propo- % of
of the Turnover Provision
S. Reporting Share Reserves Total Total Invest- (loss) (loss) sed share
subsidiary / Total for
No currency capital & surplus assets liabilities ments before after divi- holdi-
/ Income Taxation
taxation taxation dend ng
associates
1 Svimsan INR 100.00 (192.13) 0.01 92.14 - - (0.44) - (0.44) - 100%
Exports
and
Imports
Private
Limited
2 Avanti INR 1,001.67 36,831.54 42,869.24 5,036.03 1,219.06 75,251.99 9,173.10 925.66 8,247.44 - 60%
Frozen
Foods
Private
Limited

Part B: Associates

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies.

(`In Lakhs)

Srivathsa Power Patikari Power

Projects Limited Private Limited
1. Latest audited Balance Sheet Date 31-03-2019 31-03-2019
2. Shares of associates held by the company on the year end
Number of shares 1,66,93,630 1,06,45,200
Amount of investment in Associates
Extent of holding % 49.99% 25.89%
3. Description of how there is significant influence Voting Power Voting Power
4. Reason why the associate/ joint venture is not consolidated Not applicable Not applicable
5. Networth attributable to Shareholding as per latest Audited 2,129.64 1,016.84
Balance Sheet
6. Profit/ (Loss) for the year
i. Considered in Consolidation (111.74) 137.45
ii. Not Considered in Consolidation - -

214 ANNUAL REPORT 2018-19

NOTICE
Notice is hereby given that the Twenty Sixth (26th ) Additional Director by the Board of Directors
Annual General Meeting of the members of Avanti of the Company on 07.06.2019 and who holds
Feeds Limited (CIN: L16001AP1993PLC095778) office as such upto the date of this 26th Annual
will be held on Friday, the 9th August, 2019 at 11.00 General Meeting, under Sec.161(1) of the
A.M. at Vedika Hall, Hotel Daspalla, Jagadamba Companies Act, 2013 and in respect of whom
Junction, Visakhapatnam – 530 020 to transact the Company received a Notice in writing
the following business: under Sec.160 of the Act, from a member
proposing his candidature for the office of
ORDINARY BUSINESS:
a director of the Company, be and is hereby
1. To receive, consider and adopt :
appointed as Director of the Company.”
a. the audited Financial Statements of the
6. To appoint Sri A. Venkata Sanjeev as Whole-
Company for the financial year ended
time Director designated as Executive
31st March, 2019, the Board’s Report and the
Director:
Report of the Auditors thereon.
To consider and, if thought fit, to pass with
b.
the audited Consolidated Financial
or without modification(s), the following
Statements of the Company for the
Resolution as a Special Resolution:
financial year ended 31st March, 2019 and
the Report of the Auditors thereon. “RESOLVED that pursuant to Sec. 196, 197,
198, 203, Schedule V and other applicable
2. To declare dividend of `4/- per equity share of
`1/- each fully paid, for the Financial Year 2018- provisions and relevant Rules, if any, of the
19. Companies Act, 2013 and Reg.17 and Reg.17(6)
(e) of SEBI (Listing Obligations and Disclosure
3. To appoint a Director in place of Sri N. Ram Requirements) Regulations, 2015 as amended
Prasad (DIN:00145558), who retires by from time to time, and subject to necessary
rotation and being eligible, offers himself for approvals of financial institutions / authorities
re-appointment. if any, Sri A. Venkata Sanjeev (DIN: 07717691),
be and is hereby appointed as Whole-time
4. To appoint a Director in place of Mr. Wai Yat
Director, designated as Executive Director for
Paco Lee, (DIN:02931372) who retires by
rotation and being eligible, offers himself for a period of 5 years with effect from 09.08.2019
re-appointment. on the remuneration as detailed below.

SPECIAL BUSINESS: I. Salary and allowances per month:

5. To appoint Sri A. Venkata Sanjeev as A. Salary `2,50,000

Director :
B. House Rent Allowance `1,50,000
To consider and, if thought fit, to pass with Total: `4,00,000
or without modification(s), the following
Resolution as an Ordinary Resolution: Sri A. Venkata Sanjeev, Executive Director be
paid an annual increment at 15% of the salary
“RESOLVED that Sri A. Venkata Sanjeev and allowances during his tenure as Executive
(DIN: 07717691) who was appointed as an Director.

AVANTI FEEDS LIMITED 215

 II. Perquisites: In addition to the salary as above, 7. To approve continuation of payment of
perquisites payable are as under: remuneration to Executive Directors who
are Promoters or members of the Promoter
a) Company’s Contribution towards Provident
Group in excess of the limits prescribed under
Fund subject to a ceiling of 12% of salary.
SEBI (Listing Obligations and Disclosure
b) Company’s contribution towards pension/ Requirements) (Amendment) Regulations,
superannuation funds which shall not 2018.
together with the company’s contribution To consider and, if thought fit, to pass with
towards provident fund exceed 25% of the
or without modification(s), the following
salary or such other higher percentage
Resolution as a Special Resolution:
thereof as may be laid down from time to
time under the Income Tax Rules. “RESOLVED that pursuant to Regulation 17(6)
(e) of SEBI (Listing Obligations and Disclosure
c)
Contribution to provident funds, Requirements) (Amendment) Regulations,
superannuation fund and annuity will not 2018 and other applicable provisions, if any, and
be included in the computation of ceiling as per the recommendation of the Nomination
on perquisites to the extent these either
and Remuneration Committee and the Board
singly or put together are not taxable under
of Directors of the Company, the consent of
Income Tax Act.
members of the Company be and is hereby
d) Gratuity not exceeding half month’s salary accorded to-
for each completed year of service subject (i) continuation of payment of remuneration as
to a ceiling of `10,00,000 or such higher per existing terms and conditions approved
ceiling as may be fixed from time to time by the shareholders to Sri A. Indra Kumar,
by the Central Government. Chairman and Managing Director at the
Annual General Meeting held on 13.08.2016
III. Ex-gratia:
who is a Promoter of the company; and
Yearly Ex-gratia subject to a limit of 20% of the (ii) payment of remuneration, on the terms set
annual salary.” out in the Resolution at Item No.6 of this
Notice, to Sri A. Venkata Sanjeev, member
MINIMUM REMUNERATION:
of Promoter Group being appointed
“RESOLVED FURTHER that in pursuance of the
as Whole-time Director designated as
provisions of Sec. 197 (11) read with Schedule V
Executive Director with effect from
and other applicable provisions of the Companies
09.08.2019,
Act, 2013, where in any financial year the Company
incurs loss or its profits are inadequate, the salary, notwithstanding that such payment(s) exceed
allowances and perquisites, as specified above be the limits prescribed under Reg.17(6)(e) of
paid to Sri. A. Venkata Sanjeev (DIN: 07717691), SEBI (Listing Obligations and Disclosure
Executive Director, as Minimum Remuneration.” Requirements) Regulations.

“RESOLVED FURTHER that the Board of Directors RESOLVED FURTHER that the above approval
of the Company be and is hereby authorized to for payment of remuneration be valid till the
do all such acts, deeds, matters and things at its expiry of term of the Chairman & Managing
absolute discretion, it may consider necessary, Director and Executive Director.
expedient or desirable, and to settle any question,
RESOLVED FURTHER that the Board be and
or doubt that may arise in relation thereto in order
is hereby authorized to take all steps as may
to give effect to the foregoing resolution, or as
may be otherwise considered by it, to be in the be necessary, proper and expedient to give
best interests of the Company”. effect to above Resolution.

216 ANNUAL REPORT 2018-19

8. To re-appoint Sri A.V. Achar as Independent as amended from time to time and other
Director : applicable provisions if any, Sri Bolloju Vasanth
Kumar (DIN:00521139), who was appointed as
To consider and approve the following
Independent Director of the Company and
Resolution, with or without modification(s) as
who holds office as Independent Director
Special Resolution:
upto 01.08.2019, and who is eligible for re-
“RESOLVED that pursuant to Sec.149, 152 appointment for a second term and in respect
read with Schedule IV and all other applicable of whom the Company has received a Notice
provisions of the Companies Act, 2013 and the in writing under Sec.160 of the Companies Act,
Companies (Appointment and Qualifications 2013 from a member proposing his candidature
of Directors) Rules, 2014 (including any for the office of Independent Director, be
statutory modification(s) or re-enactment and is hereby appointed as an Independent
thereof for the time being in force) and Director of the Company not liable to retire by
Reg.17(1) and 17(1A) of the SEBI (Listing rotation, to hold office for a further period of
Obligations and Disclosure Requirements) 2 (Two) years (second term) with effect from
Regulations, 2015 as amended from time to 02.08.2019.”
time, and other applicable provisions if any,
10. To re-appoint Sri M.S.P. Rao as Independent
Sri Alevoor Vedavyas Achar (DIN:00325886),
Director:
who was appointed as Independent Director
of the Company and who holds office as To consider and approve the following
Independent Director upto 01.08.2019, and Resolution, with or without modification(s) as
who is eligible for re-appointment for a second Special Resolution:
term, and in respect of whom the Company “RESOLVED that pursuant to Sec.149, 152
has received a Notice in writing under Sec.160 read with Schedule IV and all other applicable
of the Companies Act, 2013 from a member provisions of the Companies Act, 2013 and the
proposing his candidature for the office Companies (Appointment and Qualifications of
of Independent Director, be and is hereby Directors) Rules, 2014 (including any statutory
appointed as an Independent Director of the modification(s) or re-enactment thereof for
Company, not liable to retire by rotation, to the time being in force) and Reg.17(1) of the
hold office for a further period of 2 (Two) years SEBI (Listing Obligations and Disclosure
(second term) with effect from 02.08.2019.” Requirements) Regulations, 2015 as amended
from time to time and other applicable
9. To re-appoint Sri B.V. Kumar as Independent
provisions if any, Sri Mulakala Surya Prakasa
Director:
Rao (DIN:00482071) who was appointed as
To consider and approve the following Independent Director of the Company and
Resolution, with or without modification(s) as who holds office as Independent Director
Special Resolution: upto 01.08.2019, and who is eligible for re-
appointment for a second term and in respect
“RESOLVED that pursuant to Sec.149, 152 of whom the Company has received a Notice
read with Schedule IV and all other applicable in writing under Sec.160 of the Companies Act,
provisions of the Companies Act, 2013 and the 2013 from a member proposing his candidature
Companies (Appointment and Qualifications of for the office of Independent Director, be
Directors) Rules, 2014 (including any statutory and is hereby appointed as an Independent
modification(s) or re-enactment thereof for Director of the Company not liable to retire by
the time being in force) and Reg.17(1) and rotation, to hold office for a further period of
17(1A) of the SEBI (Listing Obligations and 2 (Two) years (second term) with effect from
Disclosure Requirements) Regulations, 2015 02.08.2019.”

AVANTI FEEDS LIMITED 217

 11. To re-appoint Sri K. Ramamohana Rao as Sri Nanduri Venkata Divakara Somaraju (DIN:
Independent Director: 05183133) who was appointed as Independent
Director of the Company and who holds office
To consider and approve the following
as Independent Director upto the conclusion
Resolution, with or without modification(s) as
of this (26th) Annual General Meeting, and
Special Resolution:
who is eligible for re-appointment for a second
“RESOLVED that pursuant to Sec.149, 152 term and in respect of whom the Company
read with Schedule IV and all other applicable has received a Notice in writing under Sec.160
provisions of the Companies Act, 2013 and the of the Companies Act, 2013 from a member
Companies (Appointment and Qualifications of proposing his candidature for the office
Directors) Rules, 2014 (including any statutory of Independent Director, be and is hereby
modification(s) or re-enactment thereof for appointed as an Independent director of the
the time being in force) and Reg.17(1) of the Company not liable to retire by rotation, to
SEBI (Listing Obligations and Disclosure hold office for a further period of 5 (Five) years
Requirements) Regulations, 2015 as amended (second term) with effect from 09.08.2019.”
from time to time and other applicable
13. To re-appoint Smt. K. Kiranmayee as
provisions if any, Sri Kamireddy Ramamohana
Independent Director:
Rao (DIN:02384687) who was appointed as
Independent Director of the Company and To consider and approve the following
who holds office as Independent Director Resolution, with or without modification(s) as
upto 01.08.2019, and who is eligible for re- Special Resolution:
appointment for a second term and in respect
of whom the Company has received a Notice “RESOLVED that pursuant to Sec.149, 152
in writing under Sec.160 of the Companies Act, read with Schedule IV and all other applicable
2013 from a member proposing his candidature provisions of the Companies Act, 2013 and the
for the office of Independent Director, be Companies (Appointment and Qualifications
and is hereby appointed as an Independent of Directors) Rules, 2014 (including any
Director of the Company not liable to retire by statutory modification(s) or re-enactment
rotation, to hold office for a further period of thereof for the time being in force) and Reg.17
2 (Two) years (second term) with effect form of the SEBI (Listing Obligations and Disclosure
02.08.2019.” Requirements) Regulations, 2015 as amended
from time to time and other applicable
12. To re-appoint Sri N.V.D.S. Raju as provisions if any, Smt. Kaza Kiranmanyee
Independent Director: (DIN:07117423) who was appointed as
Independent Director of the Company and
To consider and approve the following
who holds office as Independent Director
Resolution, with or without modification(s) as
upto the conclusion of this (26th) Annual
Special Resolution:
General Meeting, and who is eligible for re-
“RESOLVED that pursuant to Sec.149, 152 appointment for a second term and in respect
read with Schedule IV and all other applicable of whom the Company has received a Notice
provisions of the Companies Act, 2013 and the in writing under Sec.160 of the Companies
Companies (Appointment and Qualifications Act, 2013 from a member proposing her
of Directors) Rules, 2014 (including any candidature for the office of Independent
statutory modification(s) or re-enactment Director, be and is hereby appointed as an
thereof for the time being in force) and Independent Director of the Company not
Reg.17(1) and 17(1A) of the SEBI (Listing liable to retire by rotation, to hold office for a
Obligations and Disclosure Requirements) further period of 5 (Five) years (second term)
Regulations, 2015 as amended from time to with effect from 09.08.2019.”
time and other applicable provisions if any,

218 ANNUAL REPORT 2018-19

14. To appoint Sri J.V.Ramudu as Independent other applicable provisions of the Companies
Director: Act, 2013 and the Companies (Appointment
and Qualifications of Directors) Rules, 2014
To consider and approve the following
(including any statutory modification(s) or re-
Resolution with or without modification(s) as
enactment thereof for the time being in force)
an Ordinary Resolution:
and Reg. 17 of the SEBI (Listing Obligations
“RESOLVED that Sri Jasthi Venkata Ramudu, and Disclosure Requirements) Regulations,
(DIN: 03055480) who was appointed as an 2015 as amended from time to time and
Additional Director of the Company by the other applicable provisions, if any, Sri Jasthi
Board of Directors on 10.11.2018 and who holds Venkata Ramudu (DIN: 03055480), who has
office upto the date of this 26th Annual General submitted a declaration that he meets the
Meeting of the Company under Sec.161(1) criteria of independence as prescribed in
of the Companies Act, 2013 and in respect Sec.149(6) of the Act and Regulation 16(1)(b)
of whom the Company received a Notice of SEBI (Listing Obligations and Disclosure
in writing under Sec.160 of the Act from a
Requirements) Regulations, 2015, and who is
member proposing his candidature for the
eligible for appointment as an Independent
office of Director be and is hereby appointed
Director of the Company, not liable to retire
as Director of the Company.”
by rotation, be and is hereby appointed as an
"RESOLVED FURTHER that pursuant to Independent Director for a period of 5 years
Sec.149, 152 read with Schedule IV and all (first term) with effect from 10.11.2018."

By Order of the Board

For Avanti Feeds Limited

Place: Hyderabad A. Indra Kumar

Date : 07.06.2019 DIN: 00190168
Chairman & Managing Director

AVANTI FEEDS LIMITED 219

 NOTES

1. A member entitled to attend and vote at the 7. The dividend on equity shares, if declared at
Annual General Meeting (AGM) is entitled to the Annual General Meeting, will be credited /
appoint a Proxy to attend and vote instead of dispatched before 31.08.2019 as under:
himself and such Proxy need not be a member
a) To all those beneficial owners holding
of the Company. Proxy holder may vote either
shares in electronic form, as per the
for or against each resolution set out in this
beneficial ownership data as may be made
Notice.
available to the Company by National
2. The instrument of Proxy in order to be effective Securities Depository Ltd. (NSDL) and
must be deposited at the Registered Office of Central Depository Services (India) Ltd.
the Company, duly completed and signed not (CDSL) as of the close of the business
less than 48 hours before the commencement hours on 31.07.2019 and
of the Meeting. Proxies submitted on behalf
b) To all those members holding shares in
of the companies, societies etc., must be
physical form on or before the close of
supported by an appropriate resolution /
business hours on 31.07.2019.
authority, as applicable.
8. To ensure timely delivery of shareholders’
3. A person can act as a Proxy on behalf of
communications and also credit of dividend
members not exceeding 50 (fifty) and holding
through NECS or dividend warrants/payment
in the aggregate not more than 10% of the total
instruments, members are requested to notify
share capital of the Company, carrying voting
change of address, or particulars of their bank
rights. A member holding more than 10% (ten
account, if changed, along with the 9 digit
percent) of the share capital of the Company
MICR/NECS details, (i) in case of shares held
carrying voting rights may appoint a single
in demat form, to the respective Depository
person as Proxy and such person shall not act
Participant and (ii) in case of shares held
as Proxy for any other person or member.
in physical form to Registrars and Transfer
4. Pursuant to Sec. 108 of the Companies Act, Agents of the Company i.e. Karvy Fintech
2013 read with relevant Rules under the Act, Private Limited, Hyderabad, so as to reach
the business set out in the Notice will be them on or before 31.07.2019.
transacted through electronic voting system
9. To avoid fraudulent transactions, the identity/
and the company is providing facility for voting
signature of the members holding shares in
by electronic means (i.e. remote e-voting).
electronic/demat form is verified with the
Instructions and other information relating to
specimen signatures furnished by NSDL/
remote e-voting forms part of this Notice.
CDSL and that of members holding shares in
5. The Explanatory Statement pursuant to physical form is verified as per the records of
Sec.102 of the Companies Act, 2013 which sets the share transfer agent of the Company i.e.
out details relating to Special Business to be Karvy Fintech Private Limited. Members are
transacted at the meeting is annexed hereto. requested to keep the same updated.

6. Register of Members and Share Transfer 10. The Notice of Annual General Meeting will be
Books of the Company shall remain closed sent to the members, whose name appears in
from 01.08.2019 to 09.08.2019 (both days the Register of members / depositories as at
inclusive) for annual closing and determining closing hours of business on 05.07.2019.
the entitlement of the shareholders for the
11. Members desiring to seek any information on
dividend for the year 2018-19, if declared, at
the annual accounts are requested to write
the Annual General Meeting.

220 ANNUAL REPORT 2018-19

 to the Company at an early date to enable This restriction shall not be applicable to
compilation of information. the requests received for transmission or
transposition of physical shares. Therefore,
12. All communications relating to shares are to shareholders holding shares in physical form
be addressed to the Company’s Registrars are requested to get their shares dematerialized
and Transfer Agents i.e. Karvy Fintech Private at the earliest, to avoid any inconvenience
Limited, Karvy Selenium Tower-B, Plot in future for transferring those shares. For
No. 31 & 32, Financial District, Gachibowli, any clarification(s) on the dematerialization
Nanakramguda, Serilingampally, Hyderabad of shares the shareholders are requested to
500 032, Phone No.+91 040 67161524 e-Mail contact Registrars and Transfer Agents of the
id: einward.ris@karvy.com, website: www. Company i.e. Karvy Fintech Private Limited, or
karvyfintech.com the Company at its Corporate Office.
13. Members wishing to claim dividends that 15. The members whose names appear on the
remain unclaimed are requested to correspond Register of Members/list of beneficial owners
with the Registrars and Transfer Agents of the as on 02.08.2019 are eligible to participate in
Company i.e. Karvy Fintech Private Limited, remote e-voting on the resolutions set out in
as mentioned above, or at the Company’s this notice.
Corporate Office at G2, Concorde Apartments,
H.No.6-3-658, Somajiguda, Hyderabad.500 16.
The Companies (Management and
082. Members are requested to note that Administration) Rules, 2015 Stipulate that
dividends that are not claimed within Seven(7) the electronic voting period shall close at 5
years from the date of transfer to the Company’s P.M. on the date preceding the date of AGM.
Unpaid Dividend account will be transferred Accordingly, the remote e-voting period will
to the Investor Education and Protection commence at 9.00 A.M. (IST) on 05.08.2019
Fund (IEPF), as per Sec.124 of the Companies and will end at 5.00 P.M. (IST) on 08.08.2019.
Act, 2013. Shares on which dividend remains
17. The remote e-voting will not be allowed
unclaimed for Seven(7) consecutive years will
beyond the aforesaid period and time, and
be transferred to the IEPF as per Sec.124 of the
the remote e-voting module shall be disabled
Act and the applicable rules.
by Karvy Fintech Private Limited, the agency
14. The Securities and Exchange Board of India engaged by the company to provide e-voting
(SEBI) has mandated the submission of facility.
Permanent Account Number (PAN) by every
18. The member(s) who have cast their vote by
participant in the securities market. Members
remote e-voting may also attend the meeting
holding shares in Electronic Form are therefore
but shall not be entitled to cast their vote
requested to submit the PAN details to their
again.
Depository Participants with whom they are
maintaining their demat account(s). Members 19. Once the vote on a resolution is cast by a
holding shares in physical form can submit member, the member shall not be allowed to
their PAN details to the Registrars and Transfer change it subsequently.
Agents of the Company.
20. The Company has appointed Sri V. Bhaskara
Further, pursuant to SEBI (Listing Obligations Rao, Practising Company Secretary, Hyderabad
and Disclosure Requirements) Regulations, to act as Scrutinizer to scrutinize the poll at the
2015 effective from 1st April 2019, requests Annual General Meeting and remote e-voting
for effecting transfer of equity shares of process in a fair and transparent manner. The
the Company in physical form shall not be members desiring to vote through remote
processed unless the equity shares are held e-voting are requested to refer to the detailed
in dematerialized form with a Depository. procedure given hereinafter.

AVANTI FEEDS LIMITED 221

 21. The Scrutinizer after scrutinizing the votes cast (iii) After entering the above details click on
at the meeting and through remote e-voting - Login.
will not later than 48 hours of the conclusion of
(iv) Password change menu will appear.
the meeting, make a consolidated Scrutinizer’s
Change the Password with a new
Report and submit the same to Chairman.
Password of your choice. The new
The results declared along with Scrutinizer’s
password shall comprise minimum
Report shall be placed on the website of the
8 characters with at least one upper
Company. The results shall simultaneously be
case (A-Z), one lower case (a-z), one
communicated to stock exchanges where the
numeric (0-9) and a special character
shares of the Company are listed i.e. Bombay
(@,#,$,etc.) The system will also prompt
Stock Exchange and National Stock Exchange.
you to update your contact details
22. A route map giving directions to reach the like mobile number, email ID, etc., on
venue of the 26th Annual General Meeting is first login. You may also enter a secret
given at the end of this Notice. question and answer of your choice
to retrieve your password in case you
23. Subject to approval of the requisite number of forget it. It is strongly recommended
votes, the Resolutions set out in this Notice for that you do not share your password
the AGM shall be deemed to be passed on the with any other person and that you take
date of the meeting i.e. 9th August 2019. utmost care to keep your password
confidential. You need to login again
24.
To support the ‘Green initiative’, (i) the
with the new credentials.
Members who hold the shares in demat form
and who have not registered their e-mail (v) On successful login, the system will
addresses, are requested to register the same prompt you to select the E-Voting
with their Depository Participant(s) and (ii) Event.
the members who hold the shares in physical (vi) Select the EVENT of Avanti Feeds
form and who have not registered their e-mail Limited and click on - Submit.
addresses, are requested to register the same
with Registrars and Transfer Agents i.e. Karvy (vii) Now you are ready for e-voting as ‘Cast
Fintech Private Limited, Hyderabad. Vote’ page opens.

(viii) Cast your vote by selecting appropriate

Procedure for remote e-voting:
option and click on ‘Submit’. Click on
I. The Company has engaged the services of ‘OK’ when prompted.
Karvy Fintech Private Limited (Karvy) as
agency to provide e-voting facility for AGM. (ix) Upon confirmation, the message ‘Vote
The instructions for remote e-voting are as cast successfully’ will be displayed.
under: (x) Once you have voted on the resolution,
(a) In case of Members receiving an e-mail you will not be allowed to modify your
from Karvy: vote.

(i) Launch an internet browser and open (xi) Institutional shareholders (i.e. other
https://evoting.karvy.com than individuals, HUF, NRI, etc.) are
required to send scanned copy (PDF/
(ii) Enter the login credentials (i.e. User ID JPG Format) of the relevant Board
and password). The Event No. + Folio Resolution/ Authority Letter, along
No. or DP ID-Client ID will be your User with attested specimen signature of the
ID. However, if you are already registered duly authorised signatory(ies) who are
with Karvy for e-voting, you can use authorised to vote, to the Scrutinizer by
your existing User ID and password for an e-mail at bhaskararaoandco@gmail.
casting your vote. com. They may also upload the same in

222 ANNUAL REPORT 2018-19

 the e-voting module in their login. The a. If the mobile number of the member is
scanned image of the above mentioned registered against Folio No. / DP ID Client
documents should be in the naming ID, the member may send SMS : MYEPWD
format “Corporate Name_EVENT NO.” <space> Event number+Folio No. or DP ID
Client ID to 9212993399
(b) In case of Shareholders receiving
physical copy of the Notice of AGM and Example for NSDL : MYEPWD <SPACE>
Attendance Slip: IN12345612345678
Example for CDSL : MYEPWD <SPACE>
(i) Initial password is provided, as follows, at 1402345612345678
the bottom of the Attendance Slip.
Example for Physical shares : MYEPWD
EVEN USER ID PASSWORD <SPACE> XXX1234567
(E-Voting Event b. If e-mail or mobile number of the member
Number)
is not registered against Folio No. / DP ID
- - - Client ID, then on the home page of https://
(ii) Please follow all steps from Sl. No. (i) to Sl. evoting.karvy.com, the member may click
No. (xi) above, to cast vote. “forgot password” and enter Folio No. or
DP ID Client ID and PAN to generate a
II. In case of any queries, you may refer to password.
the ‘Frequently Asked Questions’ (FAQs)
and ‘e-voting user manual’ available in the c. Member may call Karvy’s toll free number
downloads section of Karvy’s e-voting website 1-800-3454-001 .
https://evoting.karvy.com.
d. Member may send an e-mail request to
III. If you are already registered with Karvy for evoting@karvy.com.
e-voting then you can use your existing User
ID and Password for casting vote. By Order of the Board
For Avanti Feeds Limited
IV. Members who have acquired shares after the
dispatch of the Annual Report may approach
Karvy for issuance of the User ID and Password Place: Hyderabad A. Indra Kumar
for exercising their right to vote by electronic Date : 07.06.2019 DIN: 00190168
means. Chairman & Managing Director

AVANTI FEEDS LIMITED 223

 Explanatory Statement:
(Pursuant to Sec.102 of the Companies Act)

Item No.5: (i) Setting up new shrimp feed manufacturing

To appoint Sri A. Venkata Sanjeev as Director : facility at Bandapuram and subsequent further
expansion in a record time.
The Board at its meeting held on 07.06.2019,
appointed Sri A.Venkata Sanjeev as an Additional (ii) Modernisation of shrimp feed Plant at Kovvur.
Director. As per Sec.160 of the Companies Act,
(iii) Ensuring production of shrimp feed with
2013 Sri A Venkata Sanjeev will hold the office of
consistent quality maintenance in all the feed
Additional Director upto the date of this Annual
Plants.
General Meeting i.e. 9th August, 2019.
During the period of 5 years of service with the
Nomination and Remuneration Committee
Company, he acquired knowledge and experience
recommended the appointment of Sri A Venkata
in the operations of the Company. His innovative
Sanjeev as Director.
thinking, hard work and strong commitment to
The Company has received a Notice in writing achieve higher performance levels will be an asset
from a member along with the deposit of requisite to the Company for further growth. Hence, the
amount under Sec. 160 of the Act, proposing the appointment of Sri A Venkata Sanjeev as Executive
candidature of Sri A. Venkata Sanjeev, as Director. Director is proposed. As Executive Director he
will be responsible for efficient management of
Sri A Venkata Sanjeev is interested in the operations of shrimp feed plants at all locations.
Resolution set out at Item No. 5 of the Notice. Sri
A Indra Kumar, Chairman & Managing Director The Nomination and Remuneration Committee
being related to Sri A. Venkata Sanjeev may be and Audit Committee recommended his
deemed to be interested in the Resolution set appointment as Whole-time Director designated
out at Item No.5 of the Notice. The relatives of as Executive Director as set out in the Resolution.
Sri A Venkata Sanjeev may be deemed to be
The Board at its meeting held on 07.06.2019
interested in the Resolution, to the extent of their
appointed Sri A. Venkata Sanjeev as a Whole-Time
shareholding interest, if any, in the Company. Save
Director, designated as Executive Director, for a
and except the above, none of the other Directors
period of 5 (Five) years, w.e.f. from 09.08.2019,
/ Key Managerial Personnel of the Company / their
subject to approval of shareholders, on the terms
relatives are, in any way, concerned or interested,
set out in the Resolution No.6.
financially or otherwise, in the Resolution set out
at Item No.5. It is proposed to seek members’ approval for the
appointment of and remuneration payable to
The Board recommends the Resolution set out
Sri A Venkata Sanjeev as a Whole-Time Director,
at Item No. 5 of the Notice for approval by the
designated as Executive Director of the Company,
members.
in terms of the applicable provisions of the
Item No.6: Companies Act, 2013 and SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
To appoint Sri A. Venkata Sanjeev as Whole-
time Director designated as Executive Director: Duties:

Sri A. Venkata Sanjeev has graduated in a. The Whole-time Director will perform his
Engineering (Mechanical). He worked, as duties as such with regard to all works of
Manager-Operations, in the Company for about the Company and carry out the orders and
5 years. His major achievements during his tenure directions given by the Board / Managing
are- Director from time to time in all respects
and conform to and comply with all such

224 ANNUAL REPORT 2018-19

 directions and regulations as may from time to time be given and made by the Board / Managing
Director and the functions of the Whole-time Director will be under the overall authority of the
Managing Director.

b. The Whole-time Director shall act in accordance with the Articles of Association of the Company
and shall abide by the provisions contained in Sec. 166 of the Act with regard to duties of Directors.

c. The Whole-time Director shall adhere to the Company’s Code of Conduct.

I. General Information:

(1) Nature of Industry: Manufacture of Shrimp Feed.

(2) Date of commencement of commercial production of Shrimp Feed:

Date of Commercial
Sl No Details Location
Production
1 Plant – I Kovvur, West Godavari District, Andhra Pradesh 01.11.1994
2 Plant – II Vemuluru, West Godavari District, Andhra Pradesh 08.06.2001
3 Plant - III Kovvur, West Godavari District, Andhra Pradesh 15.03.2014
4 Plant - IV Bandapuram, West Godavari District, Andhra Pradesh 04.08.2016
5 Plant - V Balda Village, Valsad District, Gujarat 12.08.2011

(3) In case of new companies expected date of commencement of activities as per project approved by
financial institutions appearing in the prospectus: Not applicable.

(4) Financial performance:

(` In Lakhs)
Financial Parameters 2018-19 2017-18 2016-17
Turnover 273842.34 281532.89 223085.10
Net Profit as computed under Sec. 198 of Companies Act, 2013 31383.98 60683.33 29388.33
Net profit as per Statement of Profit and Loss. 22349.48 41493.84 19634.93
Amount of dividend paid - 8174.74 4087.37
Rate of dividend declared per equity share - `6.00 per `9.00 per
share of share of
`1/- each `2/- each.

(5) Foreign Investments or collaborations, if any:

The shareholding details of FIIs, FPIs, NRIs as on 31.03.2019 are as under:

Sl. Number of equity Percentage of

Category
No. shares of `1/- each paid-up capital
1 Foreign Portfolio Investors, Foreign Portfolio – Corp,
Foreign Institutional Investors
a) Thai Union Group 3,29,85,456 24.21%
b) Others 63,29,521 4.65%
Sub-Total 3,93,14,977 28.86%
2 Non-resident Indians and Foreign Nationals 18,96,695 1.39%

Grand Total 4,1 2,1 1 , 672 30.25%

AVANTI FEEDS LIMITED 225

 The Company has technical collaboration from operations.
Thai Union Group PCL who is also a shareholder
Suitability:
in the Company.
During the period of 5 years of service with the
II. Information about the appointee:
Company, he acquired knowledge and experience
(1) Background details: in the operations of the Company. In view of
his innovative thinking, hard work and strong
Sri A Venkata Sanjeev has graduated in commitment to achieve higher performance
Engineering (Mechanical). He worked, as levels, he is considered suitable for the position of
Manager-Operations, in the Company for Executive Director.
about 5 years. His major achievements during
his tenure are- (5)
Remuneration Proposed: As set out in the
Resolution at Item No. 6.
(i) Setting up new shrimp feed manufacturing
facility at Bandapuram and subsequent (6) Comparative remuneration profile with respect
further expansion in a record time. to industry, size of the company, profile of the
position and person:
(ii) Modernisation of shrimp feed Plant at
Kovvur. Taking into consideration, the profile of Sri A.
Venkata Sanjeev, his hands on experience, that
(iii) Ensuring production of shrimp feed with he has in the operations of shrimp Feed Plants
consistent quality maintenance in all the and the responsibilities assigned to him, the
feed Plants. aforesaid remuneration package is considered
(2) Past Remuneration: commensurate with his qualifications and
experience.
The remuneration drawn by Sri A Venkata Sanjeev
during lastThree (3) years as Manager-Operations (7)
Pecuniary relationship directly or indirectly
are as under: with the company or relationship with the
managerial personnel, if any:
Sl Remuneration paid
Financial Year Sri A. Venkata Sanjeev does not have any
No (D in lakhs)
1 2015-16 1.87 pecuniary relationship directly or indirectly with
2 2016-17 13.92 the Company. He is son of Sri A Indra Kumar,
3 2017-18 24.90 Chairman & Managing Director, except this,
he does not have any relationship with any
4 2018-19
3.35 managerial personnel in the company.
(Upto May, 2019)

(3) Recognition or Awards: NIL III. Other information:

(4) Job Profile and suitability: 1. Reasons of loss or inadequate profits:

Job Profile include- The nature of shrimp culture activity on which

shrimp feed consumption depends is highly
1. Planning production, raw material procurement,
volatile. The shrimp culture success depends
quality control and dispatches at all Feed
on many factors such as climatic conditions,
Plants and implementation of the same.
availability of good quality seed, free from attack of
2. Assist the Board in strategic planning for any disease, good culture practices etc. Moreover,
expansion and establishing new units. the international export price of the shrimp also
3. Ensure achievement of corporate objectives influences shrimp culture to a great extent. India
under the guidance of the Board. has seen in earlier years drastic fall in shrimp
culture activity due to wide spread deceases,
4. Responsible for efficient management of the steep fall in international prices of shrimp etc.,

226 ANNUAL REPORT 2018-19

due to which the profitability of feed declined who are Promoters or members of Promoter
significantly leading to loss or inadequacy of Group shall be, subject to approval of shareholders
profits. In order to assure remuneration for the by Special Resolution.
services rendered by Sri A. Venkata Sanjeev,
Accordingly, approval of the members is sought
minimum remuneration set out in Resolution at
for passing a Special Resolution for appointment
item No. 6 is considered necessary.
of Sri A Venkata Sanjeev as a Whole-time Director
2. Steps taken or proposed to be taken for designated as Executive Director, as set out in
improvement: Resolution at Item No. 6.

In order to mitigate the hardships caused by the Sri A. Venkata Sanjeev satisfies all the conditions
reasons mentioned above, the Company initiates set out in Part-I of Schedule V to the Act as also
the following steps: conditions set out under Sec.196(3) of the Act for
being eligible for his appointment as Executive
a. Educate the farmers to follow good culture Director. He is not disqualified from being
practices to prevent any spread of diseases. appointed as Director in terms of Sec. 164 of the
b.
Extend technical support to the farmers Act.
during culture period rendering timely advice Details of Sri A. Venkata Sanjeev are provided
to enable the farmer to reap good harvest. in the Annexure to this Notice pursuant to
c. Assist the farmer in selection of good quality provisions of (i) the SEBI (Listing Obligations
seed. and Disclosure Requirements) Regulations, 2015
and (ii) Secretarial Standard on General Meetings
d. To take such initiatives to maintain price (“SS-2”), issued by the Institute of Company
mechanism in association with Seafood Secretaries of India. This statement may also be
Exporters Association and other Governmental regarded as an appropriate disclosure under the
Agencies, in the best interest of the Act and the Listing Regulations.
stakeholders.
Sri A. Venkata Sanjeev is interested in the
e. Expansion of activities to different States to Resolution set out at Item No. 6 of the Notice. Sri
balance reduction/calamity in one region. A. Indra Kumar, Chairman & Managing Director
being related to Sri A. Venkata Sanjeev may be
3. Expected increase in productivity and profits
deemed to be interested in the Resolution set
in measurable terms:
out at Item No.6 of the Notice. The relatives of
With sustained growth of sea food consumption Sri A. Venkata Sanjeev may be deemed to be
globally year after year, the demand for shrimp interested in the Resolution, to the extent of their
is estimated to grow at about 3.6% CAGR. India shareholding interest, if any, in the Company. Save
being one of the major source of supply of and except the above, none of the other Directors
processed shrimp, the growth Year-on-Year is / Key Managerial Personnel of the Company / their
estimated at 5% with an estimated sustainable relatives are, in any way, concerned or interested,
margin of about 10%. financially or otherwise, in the Resolution at Item
No.6.
The combined remuneration paid to Sri A. Indra
Kumar, Chairman & Managing Director and Sri A. The Board recommends the Special Resolution
Venkata Sanjeev exceeds the limits prescribed set out at Item No. 6 of the Notice for approval by
under Reg.17(6)(e ) of the SEBI (Listing Obligations the members.
and Disclosure Requirements) Regulations.
Item No: 7
As per Reg.17(6)(e ) w.e.f 01.04.2019, remuneration To approve continuation of payment of
payable in excess of prescribed limits under SEBI remuneration to Executive Directors who are
(LODR) Regulations, 2015 to Executive Directors Promoters or members of the Promoter Group

AVANTI FEEDS LIMITED 227

 in excess of the limits prescribed under SEBI by way of Special Resolution for -
(LODR) (Amendment) Regulations, 2018.
(i) continuation payment of remuneration as per
As per newly introduced Regulation 17(6)(e) of existing terms and conditions approved by the
SEBI (LODR) (Amendment) Regulations, 2018, shareholders to Sri A. Indra Kumar, Chairman
the Payment of fees or compensation payable and Managing Director at the Annual General
to executive directors who are Promoters or Meeting held on 13.08.2016 and
members of the Promoter Group, shall be subject
(ii) payment of remuneration to Sri A. Venkata
to approval of the shareholders by Special
Sanjeev, being appointed as Whole-time
Resolution in general meeting, if-
Director designated as Executive Director with
(i) the annual remuneration payable to such
effect from 09.08.2019, at this meeting, as set
executive director exceeds `5 Crore or 2.5
out in the Resolution at Item No.6,
per cent of the net profits of the listed entity
calculated as per the provisions of Sec 198 of notwithstanding the limits prescribed under
the Companies Act, 2013, whichever is higher; Reg.17(6)(e) of SEBI (LODR) Regulations.
or
Sri A. Indra Kumar and Sri A. Venkata Sanjeev are
(ii) where there is more than one such director,
interested in the Resolution set out at Item No. 7
the aggregate annual remuneration to such
of the Notice. The relatives of Sri A. Indra Kumar
directors exceeds 5 per cent of the net profits
and Sri A. Venkata Sanjeev may be deemed to be
of the Company.
interested in the Resolution, to the extent of their
Sri A. Indra Kumar, Chairman & Managing shareholding interest, if any, in the Company. Save
Director and Sri A. Venkata Sanjeev, proposed and except the above, none of the other Directors
for appointment as Executive Director as set out / Key Managerial Personnel of the Company / their
at Item No.6 of this Notice, are Promoter and relatives are, in any way, concerned or interested,
member of Promoter Group of the Company, financially or otherwise, in the Resolution at Item
respectively. No.7.
The appointment of Sri A. Indra Kumar, as Chairman The Board recommends the Special Resolution
& Managing Director has been approved by the set out at Item No. 7 of the Notice for approval by
shareholders at the Annual General Meeting held the members.
on 13.08.2016 for a period of 5 years. He is drawing
remuneration upto 5% of the Net Profits of the Item Nos. 8 & 9:
Company, which is approved by the shareholders. To re-appoint Sri A.V. Achar and Sri B.V. Kumar
as Independent Directors:
As already mentioned at Item No.6, the Board
approved the appointment and remuneration of Sri A. V. Achar (DIN: 00325886) and Sri B.V.
Sri A .Venkata Sanjeev as Whole-time Director, Kumar (DIN: 00521139) have been appointed
designated as Executive Director for a period as Independent Directors of the Company and
of 5 years with effect from 09.08.2019, subject they hold office as Independent Directors of the
to approval of Shareholders as set out in the Company up to 01.08.2019 (first term).
Resolution at Item No.6.
The Nomination and Remuneration Committee
Since the remuneration drawn by (i) Sri A. (NRC), on the basis of the report of performance
Indra Kumar, Chairman and Managing Director evaluation, recommended re-appointment of Sri
and Promoter, and (ii) Sri A. Venkata Sanjeev, A. V. Achar and Sri B.V. Kumar as Independent
proposed to be appointed as Executive Director Directors for a further period of 2 years (second
and member of promoter group, put together term) with effect from 02.08.2019.
will be in excess of the limits prescribed under
Reg.17(6)(e) of the SEBI (LODR) Regulations, In the opinion of the Board, Sri A. V. Achar and Sri
2015, it requires the approval of the shareholders B.V. Kumar, fulfils the conditions for appointment

228 ANNUAL REPORT 2018-19

as Independent Directors as specified in the Act or for any other purpose whatsoever as may be
and the Listing Regulations. decided by the Board, reimbursement of expenses
for participating in the Board and Committee
The Board, based on the performance evaluation meetings .
and as per the recommendation of the NRC,
considers that, in view of their background, Details of Sri A. V. Achar and Sri B.V. Kumar are
experience and contribution made by them provided in the Annexure to this Notice pursuant
during their tenure of the first term, continued to provisions of (i) SEBI (Listing Obligations and
association of Sri A. V. Achar and Sri B.V. Disclosure Requirements) Regulations, 2015 and
Kumar, as Independent Directors would be (ii) Secretarial Standard on General Meetings
beneficial to the Company and it is desirable to (“SS-2”), issued by the Institute of Company
continue to avail their services as Independent Secretaries of India. This statement may also be
Directors. Accordingly, Board recommended re- regarded as an appropriate disclosure under the
appointment of Sri A. V. Achar and Sri B.V. Kumar, Act and the Listing Regulations.
as Non-Executive Independent Directors of the
Copy of draft letters of appointment of Sri A.
Company, not liable to retire by rotation, for a
V. Achar and Sri B.V. Kumar, as Independent
further period of 2 years (second term), with
Directors setting out the terms and conditions
effect from 02.08.2019.
of appointment are available for inspection by
Sri A. V. Achar and Sri B.V. Kumar, are not the members at the Registered Office of the
disqualified from being appointed as Directors in Company.
terms of Sec. 164 of the Act and they have given
Sri A. V. Achar and Sri B.V. Kumar, are interested
their consent to act as Director.
in the Resolutions set out at Item No. 8 & 9,
The Company has also received declarations respectively of this Notice with regard to their
from Sri A. V. Achar and Sri B.V. Kumar, stating re-appointment. Relatives of Sri A. V. Achar and
that they meet the criteria of independence as Sri B.V. Kumar, respectively may be deemed to
prescribed under Sec 149(6) of the Act and SEBI be interested in the Resolution(s) to the extent
(Listing Obligations and Disclosure Requirements) of their shareholding interest, if any, in the
Regulations, 2015 (“Listing Regulations”). Company. Save and except the above, none of
the other Directors / Key Managerial Personnel
The Company has received Notice in writing from of the Company / their relatives are, in any way,
a member along with the deposit of requisite concerned or interested, financially or otherwise,
amount under Sec. 160 of the Act, proposing the in the Resolutions.
candidatures of each of Sri A.V. Achar and Sri B. V.
Kumar as Independent Directors of the Company. The Board recommends the Special Resolutions
set out at Item Nos. 8 & 9 of the Notice for
In terms of Reg.17(1A) of SEBI (LODR) Regulations approval by the members.
(Amendment) 2018, appointment of a Non-
Executive Director beyond the age of 75 years, Item Nos. 10 & 11:
requires consent of the members by way of Special To re-appoint Sri M.S.P. Rao and Sri K.
Resolution. In view of the vast experience of Sri Ramamohana Rao as Independent Directors:
A.V. Achar (Aged 79 years) and Sri B.V. Kumar
(Aged 85 years) the Board recommends passing Sri M.S.P. Rao (DIN: 00482071) and Sri K.
Special resolution for their re-appointment as Ramamohana Rao (DIN: 02384687) have been
Non-Executive Independent Directors beyond the appointed as Independent Directors of the
age of 75 years pursuant to aforesaid Regulation. Company and they hold office as Independent
Directors of the Company upto 01.08.2019 (first
Sri A. V. Achar and Sri B.V. Kumar shall be paid term).
remuneration by way of sitting fee for attending
The Nomination and Remuneration Committee
meetings of the Board or Committees thereof
(NRC), on the basis of the report of performance

AVANTI FEEDS LIMITED 229

 evaluation, recommended re-appointment of Details of Sri M.S.P. Rao and Sri K. Ramamohana
Sri M.S.P. Rao and Sri K. Ramamohana Rao as Rao are provided in the Annexure to this Notice
Independent Directors for a further period of 2 pursuant to provisions of (i) SEBI (Listing
years (second term) with effect from 02.08.2019. Obligations and Disclosure Requirements)
Regulations, 2015 and (ii) Secretarial Standard on
In the opinion of the Board, Sri M.S.P. Rao and
General Meetings (“SS-2”), issued by the Institute
Sri K. Ramamohana Rao fulfils the conditions
of Company Secretaries of India. This statement
for appointment as Independent Directors as
may also be regarded as an appropriate disclosure
specified in the Act and the Listing Regulations.
under the Act and the Listing Regulations.
The Board, based on the performance evaluation
Copy of draft letters of appointment of Sri M.S.P.
and as per the recommendation of the NRC,
considers that, in view of their background, Rao and Sri K. Ramamohana Rao setting out the
experience and contribution made by them during terms and conditions of appointment are available
their tenure of the first term, continued association for inspection by the members at the Registered
of Sri M.S.P. Rao and Sri K. Ramamohana Rao Office of the Company.
would be beneficial to the Company and it is
Sri M.S.P. Rao and Sri K. Ramamohana Rao are
desirable to continue to avail their services
interested in the Resolutions set out at Item No.
as Independent Directors. Accordingly, Board
10 & 11 respectively of this Notice with regard to
recommended re-appointment of Sri M.S.P. Rao
their re-appointment. Relatives of Sri M.S.P. Rao
and Sri K. Ramamohana Rao as Non-Executive
and Sri K. Ramamohana Rao respectively may be
Independent Directors of the Company, not liable
deemed to be interested in the Resolution(s) to
to retire by rotation , for a further period of 2
years (second term) with effect from 02.08.2019. the extent of their shareholding interest, if any, in
the Company. Save and except the above, none
Sri M.S.P. Rao and Sri K. Ramamohana Rao are not of the other Directors / Key Managerial Personnel
disqualified from being appointed as Directors in of the Company / their relatives are, in any way,
terms of Sec. 164 of the Act and have given their concerned or interested, financially or otherwise,
consent to act as a Director. in the Resolutions.

The Company has also received declarations from The Board recommends the Special Resolutions
Sri M.S.P. Rao and Sri K. Ramamohana Rao, stating set out at Item Nos. 10 & 11 of the Notice for
that they meet the criteria of independence as approval by the members.
prescribed under Sec 149(6) of the Act and SEBI
(Listing Obligations and Disclosure Requirements) Item No: 12:
Regulations, 2015 (“Listing Regulations”). To re-appoint Sri N.V.D.S. Raju as Independent
Director:
The Company has received Notice in writing from
a member along with the deposit of requisite Sri N.V.D.S. Raju (DIN: 05183133) has been
amount under Sec. 160 of the Act, proposing the
appointed as an Independent Director of the
candidatures of each of Sri M.S.P. Rao and Sri K.
Company and he holds office as an Independent
Ramamohana Rao as Independent Directors of
Director of the Company up to the conclusion of
the Company.
this (26th ) Annual General Meeting (first term).
Sri M.S.P. Rao and Sri K. Ramamohana Rao shall
The Nomination and Remuneration Committee
be paid remuneration by way of fee for attending
(NRC) on the basis of the report of performance
meetings of the Board or Committees thereof
evaluation, has recommended re-appointment of
or for any other purpose whatsoever as may be
Sri N.V.D.S. Raju as Non-Executive Independent
decided by the Board, reimbursement of expenses
Director for a further period of 5 years (second
for participating in the Board and Committee
meetings. term) with effect from 09.08.2019.

230 ANNUAL REPORT 2018-19

In the opinion of the Board, Sri N.V.D.S. Raju fulfils reimbursement of expenses for participating in
the conditions for appointment as an Independent the Board and Committee meetings.
Director as specified in the Act and the Listing
Details of Sri N.V.D.S. Raju are provided in the
Regulations.
Annexure to this Notice pursuant to provisions
The Board, based on the performance evaluation of (i) SEBI (Listing Obligations and Disclosure
and as per the recommendation of the NRC, Requirements) Regulations, 2015 and (ii)
considers that, in view of his background, Secretarial Standard on General Meetings (“SS-
experience and contribution made by him during 2”), issued by the Institute of Company Secretaries
his tenure of the first term, continued association of India. This statement may also be regarded as
of Sri N.V.D.S. Raju as Independent Director would an appropriate disclosure under the Act and the
be beneficial to the Company and it is desirable to Listing Regulations.
continue to avail his services as an Independent
Copy of draft letter of appointment of Sri N.V.D.S.
Director. Accordingly, Board recommended re-
Raju setting out the terms and conditions of
appointment of Sri N.V.D.S. Raju as Non-Executive
appointment is available for inspection by the
Independent Director of the Company, not liable
members at the Registered Office of the Company.
to retire by rotation for a further period of 5
years (second term) with effect from 09.08.2019. Sri N.V.D.S. Raju is interested in the resolution set
out at Item No.12 of the Notice with regard to his
Sri N.V.D.S. Raju is not disqualified from being
re-appointment. Relatives of Sri N.V.D.S. Raju may
appointed as a Director in terms of Sec 164 of the
be deemed to be interested in the Resolution to
Act and has given his consent to act as a Director.
the extent of their shareholding interest, if any, in
The Company has also received declaration the Company. Save and except the above, none
from Sri N.V.D.S. Raju stating that he meets the of the other Directors / Key Managerial Personnel
criteria of independence as prescribed under Sec of the Company / their relatives are, in any way,
149(6) of the Act and SEBI (Listing Obligations concerned or interested, financially or otherwise,
and Disclosure Requirements) Regulations, 2015 in the Resolution.
(“Listing Regulations”).
The Board recommends the Special Resolution
The Company has received Notice in writing from set out at Item No. 12 of the Notice for approval
a member along with the deposit of requisite by the members.
amount under Sec 160 of the Act, proposing the
Item No: 13
candidature of Sri N.V.D.S. Raju as Independent
Director of the Company. To re-appoint Smt. K. Kiranmayee as
Independent Director:
In terms of Reg.17(1A) of SEBI (LODR) Regulations
(Amendment) 2018, appointment of a Non- Smt. K. Kiranmayee (DIN: 07117423) has been
Executive Director beyond the age of 75 years, appointed as an Independent Director of the
requires consent of the members by way of Special Company and she holds office as an Independent
Resolution. Sri N.V.D.S. Raju, shall attain age of 75 Director of the Company up to the conclusion of
years during the proposed second term. In view of this (26th) Annual General Meeting (first term).
the vast experience of Sri N.V. D.S. Raju the Board
The Nomination and Remuneration Committee
recommends passing Special Resolution for his
(NRC) on the basis of the report of performance
re-appointment as Non-Executive Independent
evaluation, has recommended re-appointment of
Director pursuant to aforesaid SEBI Regulation.
Smt. K. Kiranmayee as an Independent Director
Sri N.V.D.S. Raju shall be paid remuneration by for a further period of 5 years (second term) with
way of fee for attending meetings of the Board effect from 09.08.2019.
or Committees thereof or for any other purpose
In the opinion of the Board, Smt K. Kiranmayee
whatsoever as may be decided by the Board,
fulfils the conditions for appointment as an

AVANTI FEEDS LIMITED 231

 Independent Director as specified in the Act and Kiranmayee setting out the terms and conditions
the Listing Regulations. of appointment is available for inspection by the
members at the Registered Office of the Company.
The Board, based on the performance evaluation
and as per the recommendation of the NRC, Smt K. Kiranmayee is interested in the Resolution
considers that, in view of her background, set out at Item No.13 of the Notice with regard
experience and contribution made by her during to her re-appointment. Relatives of Smt K.
her tenure of the first term, continued association Kiranmayee may be deemed to be interested in
of Smt K. Kiranmayee would be beneficial to the the Resolution to the extent of their shareholding
Company and it is desirable to continue to avail her interest, if any, in the Company. Save and except
services as an Independent Director. Accordingly, the above, none of the other Directors / Key
Board recommended re-appointment of Smt Managerial Personnel of the Company / their
K. Kiranmayee as Non-Executive Independent relatives are, in any way, concerned or interested,
Director of the Company, not liable to retire by financially or otherwise, in the Resolution.
rotation, for a further period of 5 years (second
The Board recommends the Special Resolution
term) with effect from 09.08.2019.
set out at Item No.13 of the Notice for approval by
Smt K. Kiranmayee is not disqualified from being the members.
appointed as a Director in terms of Sec 164 of the
Item No: 14
Act and has given her consent to act as a Director.
To appoint Sri J.V. Ramudu as Independent
The Company has also received declaration from Director:
Smt K. Kiranmayee stating that she meets the
criteria of independence as prescribed under Sec. Sri J. V. Ramudu was appointed as an Additional
149(6) of the Act and SEBI (Listing Obligations Director (Non-Executive & Independent), by
and Disclosure Requirements) Regulations, 2015 the Board of the Company at its meeting held
(“Listing Regulations”). on 10.11.2018. His appointment as Independent
Director for a period of 5 years with effect from
The Company has received Notice in writing from 10.11.2018 (first term) is subject to approval of the
a member along with the deposit of requisite members.
amount under Sec. 160 of the Act, proposing
the candidature of Smt. K. Kiranmayee, as As per Sec. 161 of the Companies Act, 2013 the
Independent Director of the Company. Additional Director appointed by the Board will
hold office upto the date of this Annual General
Smt. K. Kiranmayee shall be paid remuneration by Meeting.
way of fee for attending meetings of the Board
or Committees thereof or for any other purpose The Company has received Notice in writing from
whatsoever as may be decided by the Board, a member along with the deposit of requisite
reimbursement of expenses for participating in amount under Sec.160 of the Companies Act 2013,
the Board and other Committee meetings. proposing the candidature of Sri. J.V. Ramudu as
Independent Director of the Company.
Details of Smt. K. Kiranmayee are provided in the
Annexure to this Notice pursuant to provisions Sri J.V. Ramudu is not disqualified from being
of (i) SEBI (Listing Obligations and Disclosure appointed as a Director in terms of Sec. 164 of the
Requirements) Regulations, 2015 and (ii) Act and has given his consent to act as a Director.
Secretarial Standard on General Meetings (“SS-
The Company has also received declaration from
2”), issued by the Institute of Company Secretaries
Sri J.V. Ramudu stating that he meets the criteria
of India. This statement may also be regarded as
of independence as prescribed both under Sec.
an appropriate disclosure under the Act and the
149(6) of the Act and under the SEBI (Listing
Listing Regulations.
Obligations and Disclosure Requirements)
Copy of draft letter of appointment of Smt K. Regulations, 2015 (“Listing Regulations”).

232 ANNUAL REPORT 2018-19

The Nomination and Remuneration Committee Copy of draft letter of appointment of Sri J.V.
(NRC) recommended appointment of Sri J.V. Ramudu setting out the terms and conditions
Ramudu as an Independent Director for a period of appointment is available for inspection by
of 5 years (first term) with effect from 10.11.2018. the members at the Registered Office of the
Company.
In the opinion of the Board, Sri J.V. Ramudu fulfils
the conditions for appointment as an Independent Sri J.V. Ramudu is interested in the Resolution set
Director as specified in the Act and the Listing out at Item No.14 of the Notice with regard to his
Regulations. appointment. Relatives of Sri J.V. Ramudu may
be deemed to be interested in the Resolution to
The Board recommends the appointment of Sri the extent of their shareholding interest, if any, in
JV. Ramudu as Independent Director with effect the Company. Save and except the above, none
from 10.11.2018 for a period of 5 (Five ) years as set of the other Directors / Key Managerial Personnel
out in the Resolution at Item No 14. of the Company / their relatives are, in any way,
Sri J.V. Ramudu shall be paid remuneration by concerned or interested, financially or otherwise,
way of fee for attending meetings of the Board in the Resolution.
or Committees thereof or for any other purpose The Board recommends the Resolution set out
whatsoever as may be decided by the Board, at Item No.14 of the Notice for approval by the
reimbursement of expenses for participating in members.
the Board and other Committee meetings.
By Order of the Board
Details of Sri J.V. Ramudu are provided in the For Avanti Feeds Limited
Annexure to this Notice pursuant to provisions
of (i) SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and (ii) A. Indra Kumar
Secretarial Standard on General Meetings (“SS- DIN: 00190168
2”), issued by the Institute of Company Secretaries Chairman & Managing Director
of India. This statement may also be regarded as
an appropriate disclosure under the Act and the Place: Hyderabad
Listing Regulations. Date : 07.06.2019

AVANTI FEEDS LIMITED 233

 Annexure
Details of the Directors seeking re-appointment/appointment at the Annual General Meeting pursuant
to (i) Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 and (ii) Secretarial Standard on General Meetings (“SS-2”), issued by the Institute of Company
Secretaries of India are as under:
A. Details of Directors retiring by rotation and seeking re-appointment :
(i) Sri N. Ramprasad and (ii) Mr. Wai Yat Paco Lee
Name of the Director Sri N. Ram Prasad Mr. Wai Yat Paco Lee
Director Identification No. 00145558 02931372
Date of Birth 02.03.1956 17.01.1966
Age (years) 63 53
Qualification MS (Chemical Graduated in Business Management from
Engineering) from Purdue University, USA and post-graduation
United States of from Sasin Graduate Institute of Business
America. Administration, Bangkok which is a joint
programme of Kellogg School of Management,
USA and The Wharton School of University,
USA.
Experience (including He is MS (Chemical Mr.Wai Yat Paco Lee is a financial professional
expertise in specific Engineering) from and presently holding the position of General
functional area) / Brief United States of America Manager, Business Development, Global Frozen
Resume with vast industrial and Related Business of Thai Union Group PCL.
and management He joined TU in 2003 as Financial Controller and
experience. was part of core team in transforming TUF to
one of the largest sea food exporter company.
Terms and Conditions of Non-Executive, Non- Non-Executive, Non-Independent Director, liable
Re-appointment Independent Director, to retire by rotation.
liable to retire by
rotation.
Remuneration proposed Sitting fees as disclosed Sitting fees as disclosed in report on corporate
to be paid (including in report on corporate governance forming part of the Annual Report
sitting fees if any) governance forming part for the FY 2018-19.
of the Annual Report for
the FY 2018-19.
Date of first appointment 07.04.1993 14.07.2012
on the Board
Shareholding in the 279701 equity shares of Nil
Company as on `1/- each.
31st March 2019
Relationship with other He is the spouse of Sri Not related to any Director/Key Managerial
Directors / Key Managerial A. Indra Kumar’s sister. Personnel.
Personnel
Number of meetings 4 4
of the Board attended
during the financial year
2018-19
Directorships of other a) SE Gases Private a) D & G Technology Holding Company Ltd.
Boards as on Limited. b) Pakfood Public Company Ltd.
31st March 2019 b) Srinivasa Cystine c) Avanti Frozen Foods Private Ltd.
Private Limited. d) PT Thai Union Karisma Lestari (member of
c) Pumps India Private Board of Commissioners)
Limited. e) Information Technology Group Company
d) Southern Electrodes Limited
Limited.
Membership / NIL NIL
Chairmanship of
Committees of other
Boards as on
31st March 2019

234 ANNUAL REPORT 2018-19

B. Details of Independent Directors proposed to be re-appointed at the ensuing Annual General
Meeting.
(i) Sri A.V. Achar, (ii) Sri B.V. Kumar (iii) Sri M.S.P. Rao, (iv) Sri K. Ramamohana Rao, (v) Sri N.V.D.S.
Raju and (vi) Smt. K. Kiranmayee
Name of the Director Sri A.V. Achar Sri B.V. Kumar
Director Identification No. 00325886 00521139
Date of Birth 22.03.1940 29.05.1934
Age (Years) 79 85
Qualification B.A., B.Com., B.L., C.A.I.I.B. M.A., LL.B., IRS
Experience (including Sri A.V. Achar, is a Retired Sri B.V. Kumar is an IRS (Retired)
expertise in specific General Manager of a scheduled Officer having held senior positions
functional area) / Brief Commercial Bank and now including Member Customs, Central
Resume he is working as lead Auditor Board of Excise and Customs (CBEC),
and Lead Tutor for ISO Government of India. At present, he
Management Systems. He has is a Practicing Advocate specialised
vast experience in Banking in Customs, Central Excise, Service
Sector/ Administration Sector/ Tax and GST for over two and half
Management System Sector. decades.
Terms and Conditions of Re- Non-Executive Independent Non-Executive Independent Director-
appointment Director- as per existing terms as per existing terms and conditions.
and conditions.
Remuneration proposed to Sitting fees as disclosed in Sitting fees as disclosed in report on
be paid report on corporate governance corporate governance forming part of
forming part of the Annual the Annual Report for the FY 2018-19.
Report for the FY 2018-19.
Date of first appointment 07.04.1993 26.09.2002
on the Board
Shareholding in the 3000 equity shares of `1/- each. Nil
Company as on
31st March 2019
Relationship with other Not related to any Director/Key Not related to any Director/Key
Directors / Key Managerial Managerial Personnel Managerial Personnel
Personnel
Number of meetings of the 5 5
Board attended during the
financial year 2018-19
Directorships of other Golkonda Hospitality Services Nil
Boards as on and Resorts Limited
31st March 2019
Membership / Chairmanship Nil Nil
of Committees of other
Boards as on
31st March 2019

Name of the Director Sri M.S.P. Rao Sri K Ramamohana Rao

Director Identification No. 00482071 02384687
Date of Birth 15.06.1953 03.04.1950
Age (Years) 65 69
Qualification B.E (Chemical Engg.) from IIT, B.Com.
Mumbai

AVANTI FEEDS LIMITED 235

 Name of the Director Sri M.S.P. Rao Sri K Ramamohana Rao
Experience (including Technical & Industrial experience in Agriculturist and his Experience
expertise in specific various industries. in aquaculture will be helpful to
functional area) / Brief the company for formulating
Resume marketing policies.
Terms and Conditions of Non-Executive Independent Non-Executive Independent
Re-appointment Director- as per existing terms and Director- as per existing terms and
conditions. conditions.
Remuneration proposed to Sitting fees as disclosed in report Sitting fees as disclosed in report
be paid on corporate governance forming on corporate governance forming
part of the Annual Report for the FY part of the Annual Report for the
2018-19. FY 2018-19.
Date of first appointment 27.04.2005 26.09.1998
on the Board
Shareholding in the 440 equity shares of `1/- each. Nil
Company as on
31st March 2019
Relationship with other Not related to any Director/Key Not related to any Director/Key
Directors / Key Managerial Managerial Personnel. Managerial Personnel.
Personnel
Number of meetings of the 5 5
Board attended during the
financial year 2018-19
Directorships of other a) Athena Kynshi Power Private a) Avanti Frozen Foods Private
Boards as on Limited Limited
31st March 2019 b) Athena Emra Power Private b) Srinivasa Cystine Private
Limited Limited
c) APPL Power Private Limited c) SCL Trading Private Limited
d) Teesta Urja Limited d) SVIMSAN Exports & Imports
e) Teesta Valley Power Transmission Private Limited
Limited
f) East India Petroleum Private
Limited
g) Countrywide Power Transmission
Limited
Membership / Member of (i) Corporate Social NIL
Chairmanship of Responsibility Committee and (ii)
Committees of other Management Committee, in Teesta
Boards as on Urja Limited.
31st March 2019

Name of the Director Sri N.V.D.S. Raju Smt. K Kiranmayee

Director Identification No. 05183133 07117423
Date of Birth 10.03.1948 30.01.1968
Age (Years) 71 51
Qualification B.Com., M.A., CAIIB, MBA, M.Phil, B.Sc., B.Ed.
P.G. Dip. in International Trade FRM
(Financial Risk Management), New
York University.

236 ANNUAL REPORT 2018-19

Name of the Director Sri N.V.D.S. Raju Smt. K Kiranmayee
Experience (including He is a Faculty at Institute of She has experience in various
expertise in specific Insurance and Risk Management- capacities in the field of education for
functional area) / Brief an initiative of IRDA. He has more than 27 years. She is also Head
Resume experience for more than 35 years of Indus International Junior School,
as a professional banker in India Hyderabad.
and 5 years at New York (USA)
with State Bank of India and
also as faculty at ICAI School of
Financial studies, Visiting faculty
at NALSAR and Faculty and Head
Distance Learning, IIRM.
Terms and Conditions of Non-Executive,Independent Non-Executive Independent women
Re-appointment Director- as per existing terms and Director- as per existing terms and
conditions. conditions.
Remuneration proposed Sitting fees as disclosed in report Sitting fees as disclosed in report on
to be paid on corporate governance forming corporate governance forming part of
part of the Annual Report for the the Annual Report for the FY 2018-19.
FY 2018-19.
Date of first appointment 11.03.2015 11.03.2015
on the Board
Shareholding in the Nil 5550 equity shares of D1/- each.
Company as on 31st March
2019
Relationship with Not related to any Director/Key Not related to any Director/Key
other Directors / Key Managerial Personnel Managerial Personnel
Managerial Personnel
Number of meetings 5 5
of the Board attended
during the financial year
2018-19
Directorships of other Sivananda Supatha Foundation Nil
Boards as on 31st March (Sec.8 Company) - Chairman
2019
Membership / NIL Nil
Chairmanship of
Committees of other
Boards as on
31st March 2019

C. Details (i) Sri J.V. Ramudu, proposed to be appointed as Non-Executive Independent Director for a
period of 5 years w.e.f. 10.11.2018 and (ii) Sri A. Venkata Sanjeev, proposed to be appointed as Director
w.e.f. 07.06.2019 and as Executive Director for a period of of 5 years w.e.f 09.08.2019.

Name of the Director Sri J.V. Ramudu Sri A.Venkata Sanjeev

Director Identification No. 03055480 07717691
Date of Birth 01.08.1954 18.06.1991
Age (Years) 64 27
Qualification Post Graduate in Economics, Post Graduated in Mechanical
Graduate in Law, and Post Graduate Engineering
Certificate in Criminal Justice and Police
Management from the University of
Leicester, U.K

AVANTI FEEDS LIMITED 237

 Name of the Director Sri J.V. Ramudu Sri A.Venkata Sanjeev
Experience (including He retired as Director General of Police of Sri A Venkata Sanjeev
expertise in specific Andhra Pradesh in July, 2016. He was the worked, as Manager-
functional area) / Brief First DGP of newly formed State of Andhra Operations, in the
Resume Pradesh. He held various senior positions Company for about
in the Government. He was Vice-Chairman 5 years. His major
& Managing Director, A.P. Police Housing achievements during his
Corporation from 2010 to 2012. He was tenure are-
awarded (i) Indian Police Medal in 1997, (i) Setting up new shrimp
(ii) Antrik Suraksha Seva Pathak in 2004 feed manufacturing
and (iii) President Police Medal in 2007. facility at Bandapuram
He worked as an IRS officer in Income Tax and subsequent
Department for 2 years before he was further expansion in a
selected for IPS. He also had a stint in record time.
Orissa PHC to pull it out of red, as Director
Specially appointed by Orissa Governor. (ii) Modernisation of
He is a Philanthropist. He is running a shrimp feed Plant at
school for around 600 students in his Kovvur.
native village Narsimpally in Anantapur
District. He developed his village as a (iii) Ensuring production
Model Village by providing Drinking Water of shrimp feed with
Facilities, Primary Health Care Centre, consistent quality
Roads, Temples, Grameena Bank, Rural maintenance in all the
Skilled Development etc. He is vigorously feed Plants.
working for getting Irrigation Canals to the
neighbouring villages. He has very rich and
varied experience in Community Services.
Terms and Conditions of As per terms and conditions mentioned in
appointment appointment letter. As set out in the
Remuneration proposed to Sitting fees as disclosed in report on Resolution at Item No.6 of
be paid Corporate Governance forming part of the this Notice.
Annual Report for the FY 2018-19.
Date of first appointment on 10.11.2018 Appointed as an
the Board Additional Director by the
Board on 07.06.2019. The
Board also appointed him
as Whole-time Director
designated as Executive
Director for a period of
5 years w.e.f. 09.08.2019,
subject to approval of
shareholders.
Shareholding in the Company Nil 7,10,100 equity shares of
as on 31st March 2019 D1/- each.
Relationship with other Not related to any Director/Key Managerial Son of Sri A Indra Kumar,
Directors / Key Managerial Personnel Chairman & Managing
Personnel Director
Number of meetings of the 1 Not applicable.
Board attended during the
financial year 2018-19
Directorships of other Boards Endiya Trustee Private Limited Srinivasa Cystine Private
as on 31st March 2019 Limited
Membership / Chairmanship NIL NIL
of Committees of other
Boards as on 31st March 2019
By Order of the Board
For Avanti Feeds Limited

Place: Hyderabad A. Indra Kumar

Date : 07.06.2019 DIN: 00190168
Chairman & Managing Director

238 ANNUAL REPORT 2018-19

 AVANTI FEEDS LIMITED
CIN: L16001AP1993PLC095778
Regd. Office: Flat No.103, Ground Floor,”R”Square, Pandurangapuram,
Visakhapantam-530003, Andhra Pradesh
Email: avantiho@avantifeeds.com.
Website: www.avantifeeds.com

ATTENDANCE SLIP
ANNUAL GENERAL MEETING
DATE: 9th August 2019

DP ID – Client ID No. / Folio No :

No. of shares held :

Name of the Member / Proxy :

Address of the Member :

I/We, hereby record my/our presence at the 26th Annual General Meeting of Avanti Feeds Limited
on Friday, the 9th August 2019 at 11.00 A.M., at Vedika Hall, Hotel Daspalla, Jagadamba Junction,
Visakhatpnatam.

Signature of Member/Proxy

Note:
1. Please complete this attendance slip and hand it over at the entrance of the meeting hall.

2. Members are informed that no duplicate slips will be issued at the venue of the meeting and are
requested to bring this slip.
 Route Map for venue of the Annual General Meeting
Vedika Hall, Hotel Daspalla, Jagadamba Junction, Visakhapatham

Diamond Park Jn Dwaraka Bus

Station - 3 kms

Railway Station
3 kms

Judge Court Road

Dabagardens
Road

Sudha Narsingh
Home

Jagadamba Jn

Hotel Daspalla
 Form No.MGT-11

PROXY FORM
Pursuant to Section 105(6) of the Companies Act, 2013 and
Rule 19(3) of the Companies (Management and Administration) Rules, 2014

Company Identification Number : L16001AP1993PLC095778

Name of the entity : Avanti Feeds Limited
Registered Office : Flat No.103, Ground Floor, “R” Square,
Pandurangapuram, Visakhapatnam-530003
Andhra Pradesh.
Name of the member(s) :
Registered Address :
Email Id :
Folio No./DPId/Client ID No :

I/We, being the member(s) holding___________________________ equity shares of `1/- each of the
above named Company, herby appoint-
1. Name: ___________________ Address____________________________________________

Email ID. _________________ Signature_______________________________ or failing him

2. Name: ___________________ Address____________________________________________

Email ID. _________________ Signature_______________________________ or failing him

3. Name: ___________________ Address____________________________________________

Email ID. _________________ Signature___________________________________________

as my/our Proxy to attend and vote for me/us and on my/our behalf at the 26th Annual General Meeting
of the Company, to be held on 9th August 2019 at 11.00 A.M., at Vedika Hall, Hotel Daspalla, Jagadamba
Junction, Visakhapatnam-530020 and at any adjournment thereof in respect of the Resolutions as
indicated below:
Sl Resolutions Type of Vote (Optional see
No Resolution Note 2)
(Please mention
number of shares)
For Against
Ordinary Business:
1 To receive, consider and adopt : Ordinary
a. the audited Financial Statements of the Company
for the financial year ended 31st March 2019, the Board’s
Report and the Report of the Auditors thereon.
b. the audited Consolidated Financial Statements of the
Company for the financial year ended 31st March 2019 and
the Report of the Auditors thereon.
2 To declare dividend of `4/- per equity share of `1/- each Ordinary
fully paid, for the Financial Year 2018-19.
 Sl Resolutions Type of Vote (Optional see
No Resolution Note 2)
(Please mention
number of shares)
For Against
3 To appoint a Director in place of Sri N. Ram Prasad (DIN: Ordinary
00145558), who retires by rotation and being eligible,
offers himself for re-appointment.
4 To appoint a Director in place of Mr. Wai Yat Paco Lee Ordinary
(DIN: 02931372) who retires by rotation and being eligible,
offers himself for re-appointment.
Special Business:
5 Appointment of Sri A. Venkata Sanjeev (DIN: 07717691) as Ordinary
Director.
6 Appointment of Sri A. Venkata Sanjeev (DIN: 07717691) as Special
Whole-time Director designated as Executive Director.
7 Payment of remuneration to Executive Directors who Special
are Promoters or members of the Promoter Group in
excess of the limits prescribed under SEBI (Listing
Obligations and Disclosure Requirements) (Amendment)
Regulations, 2018.
8 Re-appointment of Sri A.V. Achar (DIN:00325886) as Special
Independent Director.
9 Re-appointment of Sri B.V. Kumar (DIN:00521139) as Special
Independent Director.
10 Re-appointment of Sri M.S.P. Rao (DIN:00482071) as Special
Independent Director.
11 Re-appointment of Sri K. Ramamohana Rao (DIN: Special
02384687) as Independent Director.
12 Re-appointment of Sri N.V.D.S. Raju (DIN: 05183133)as Special
Independent Director.
13 Re-appointment of Smt. K. Kiranmayee (DIN: 07117423) as Special
Independent Director.
14 Appointment of Sri J.V.Ramudu (DIN: 03055480) as Ordinary
Independent Director.

Affix
Signed this__________________ day of __________ 2019 Revenue
Stamp

Signature of Proxy Shareholder Signature of Shareholder

Note:
1. This form of Proxy in order to be effective should be duly completed and deposited at the Registered
Office of the Company, not less than 48 hours before the commencement of the Annual General
Meeting.
2. Proxy may vote either For or Against each resolution indicated in the Notice for the AGM. It is
optional to the shareholder to indicate his preference. If you leave the “For” or “Against” column
blank against any or all of the Resolutions your Proxy will be entitled to vote in the manner as he/she
may deem appropriate.
NOTES
NOTES
Registered Office
H.No.37, Plot No.37,
Baymount, Rushikonda,
Visakhapatnam - 530045,
Andhra Pradesh, India

Corporate Office
G-2, Concorde Apartments,
6-3-658, Somajiguda,
Hyderabad - 500082, Telangana, India
Ph: 040-23310260, 23310261
Fax: 040-23311604
Email:avantiho@avantifeeds.com