Provisions are recognized, when there is a present legal or constructive obligation as a result of past events, where it is probable that there willbeoutflow of resources tosettle theobligation andwhen a reliable estimate of the amount of the obligation can be made. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. Where the effect is material,the provisionisdiscounted tonet present valueusing an appropriate current market-based pre-tax discount rateandtheunwinding ofthe discountisincluded in finance costs.
Contingent liabilities are recognized only when thereis apossibleobligation arising from past events, due to occurrence or non-occurrence of one ormoreuncertain future events,not wholly within the control of the Company, or where any present obligationcannot bemeasured in termsoffuture outflowofresources, or where a reliable estimate of the obligationcannotbemade. Obligationsare assessedonan ongoingbasis and only those having a largely probableoutflowof resources areprovidedfor.
Contingentassetsare not disclosed in thefinancialstatements unlessaninflow ofeconomicbenefitsisprobable.
Basic EPS iscomputedbydividing theprofitor lossattributableto theequity shareholdersoftheCompany bytheweightedaveragenumber of Ordinary shares outstandingduring theyear. DilutedEPS iscomputed byadjusting the profit or loss attributabletotheordinary equity shareholders andtheweightedaverage numberofordinary equityshares, for the effects of all dilutive potential Ordinaryshares.
The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affectthe reportedamounts of revenues,expenses, assetsand liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.Uncertaintyabout these assumptions and estimates could result inoutcomes that requireamaterial adjustment to thecarrying amount of assets or liabilities affectedinfutureperiods.
In the process of applying the Company's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the financial statements:
Theextenttowhichdeferred tax assetscanberecognized is basedonan assessmentof theprobabilitythat future taxable income will be available against which the deductible temporary differencesand tax loss carry- forwards can be utilized. In addition, significant judgment is required in assessing the impactof any legal or economic limits or uncertainties invarioustaxjurisdictions.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
In assessing impairment, management estimates the recoverable amount of each asset or cash- generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
Management estimates the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices.
Management's estimate of the DBO is based on a number of critical underlying assumptions such as attrition rate, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analyzed in Note 28).
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain assets.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability
Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non- financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.
Current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature
The Company is involved in a number of judicial, appellate and arbitration proceedings (including those described below) concerning matters arising in the course of conduct of the Company's businesses. A summary of claims asserted on the Company in respect of these cases have been summarized below.
Amounts in respect of claims assertedbyvarious revenue authoritieson the Company, in respect of taxes, which are in dispute, have been tabulatedbelow:
The Company's only Business is Integrated Aqua Culture and related activities and hence there is no separate reportable segment as per Indian Accounting Standard 108 on "Operating Segment" prescribed in Companies (Indian Accounting Standards) Rules, 2015.
The Company's principal financial liabilities comprise of loans and borrowings, trade and other payables, and other current liabilities. The main purpose of these financial liabilities is to raise finance for the Company's operations. The Company has loans and receivables, trade and other receivables, and cash and short-term deposits that arise directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk.
The Company's senior management oversees the management of these risks. The Company's senior management advises on financial risks and the appropriate financial risk governance framework.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below:
Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, currency risk and other price risk, such as equity risk. Financial instruments affected by market risk include loans and borrowings, deposits, available-for-sale investments.
The sensitivity analyses in the following sections relate to the position as at March 31,2024 and March 31,2023 The following assumptions have been made in calculating the sensitivity analyses:
The sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on the net interest income for one year, based on the average rate of borrowings held during the year ended March 31,2024, all other variables being held constant. These changes are reasonably possible based on observation of current market conditions.
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the long-term debt obligations with average interest rates.
The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant. If interest rates increase or decrease by 100 basis points with all other variables being constant, the Company's profit after tax for the year ended March 31, 2024 would decrease or increase by Rs. Nil. (March 31,2023 : Rs. Nil).
In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.
The credit risk for cash and cash equivalents, fixed deposits and mutual funds are considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
Other financial assets mainly comprise of tender deposits and security deposits which are given to customers or other governmental agencies in relation to contracts executed and are assessed by the Company for credit risk on a continuous basis.
The following is an analysis of the Company's contractual undiscounted cash flows payable under financial liabilities as at March 31,2024 and March 31,2023.
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholders' value. The Company's overall strategy remains unchanged from previous year. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and borrowed funds. The Company's policy is to use short term and long-term borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. The Company is not subject to any externally imposed capital requirements. Net debt is long term and short-term debts as reduced by cash and cash equivalents (including restricted cash and cash equivalents) and short-term investments. Equity comprises share capital and free reserves (total reserves including capital reserve). The following table summarizes the capital of the Company:
TThequarterlyreturnsorstatements filedbythe Company for working capital limits with such banks and financial institutions are in agreement with the books of account of the Company
Previous year's figures have been restated, rearranged and regrouped, wherever necessary to enable comparability of the current year's positionof accountswiththatofthe relative previousyear's position.
The financial statements were approved forissue bytheBoardofDirectorson28th May2024.
Chartered Accountants FRN No: 009805S
Partner ManagingDirector ExecutiveDirector
M.No.209122 (DIN :00069094) (DIN:02929724)
Place: Nellore N. Thyagarajan M. Balamurugan
Date:28th May2024 Chieffinancial officer Company Secretary