Sharat Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

2.15 Accounting of provisions, contingent liabilities and contingent assets

Provisions are recognized, when there is a present legal or constructive obligation as a result of past
events, where it is probable that there will be outflow of resources to settle the obligation and when
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 provision is discounted to net present
value using an appropriate current market-based pre-tax discount rate and the unwinding of the
discount is included in finance costs.

Contingent liabilities are recognized only when there is a possible obligation arising from past events,
due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the
control of the Company, or where any present obligation cannot be measured in terms of future outflow
of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed
on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is
probable.

2.16 Earnings per share (EPS)

Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders of the Company
by the weighted average number of Ordinary shares outstanding during the year. Diluted EPS is computed
by adjusting the profit or loss attributable to the ordinary equity shareholders and the weighted average
number of ordinary equity shares, for the effects of all dilutive potential Ordinary shares.

27 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in future periods.

Judgements

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:

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability
that future taxable income will be available against which the deductible temporary differences and
tax loss carry- forwards can be utilized. In addition, significant judgment is required in assessing the
impact of any legal or economic limits or uncertainties in various tax jurisdictions.

Estimates and assumptions

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.

Impairment of non- financial assets

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.

Inventories

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.

Defined Benefit Obligation (DBO)

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).

Useful lives of depreciable assets

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 measurement of financial instruments

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 of products and time between the acquisition of assets for processing and their realization
in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the
purpose of current or noncurrent classification of assets and liabilities.

financial condition, though the outcomes could be material to the Company''s operating results for any
particular period, depending, in part, upon the operating results for such period.

31 Operating Segment Reporting

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 (IND AS-108) on “Operating Segment”
prescribed in Companies (Indian Accounting Standards) Rules, 2015.

32 Financial risk management objectives and policies

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 31,2025 and March 31, 2024

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, 2025, all other variables being held constant. These changes are
reasonably possible based on observation of current market conditions.

Interest rate risk

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, 2025 would
decrease or increase by Rs. Nil. (March 31,2024 : Rs. Nil).

The Company continuously monitors defaults of customers and other counterparties, identified
either individually or by the Company, and incorporate this information into its credit risk controls.
The Company''s policy is to transact only with counterparties who are highly creditworthy which are
assessed based on internal due diligence parameters.

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.

Liquidity risk

The following is an analysis of the Company''s contractual undiscounted cash flows payable under
financial liabilities as at March 31, 2025 and March 31,2024.

33 Capital Management

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 excluding capital reserve). The following table summarizes
the capital of the Company:

Loans availed from banks/financial institutions against current assets:

TThe quarterly returns or statements filed by the Company for working capital limits with such banks
and financial institutions are in agreement with the books of account of the Company

34 Previous year figures

Previous year''s figures have been restated, rearranged and regrouped, wherever necessary to enable
comparability of the current year''s position of accounts with that of the relative previous year''s
position.

35 Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 29^th May 2025.

For and on behalf of the Board of Directors

For A.R. KRISHNAN & ASSOCIATES

Chartered Accountants
FRN No: 009805S

B. Anandaramakrishnan S. PRASAD REDDY S. SHARAT REDDY

Partner Managing Director Executive Director

M.No. 209122 (DIN : 00069094) (DIN : 02929724)

Place: Nellore Balasubramanian R Ganesan N

Date: 29^th May 2025 Chief financial officer Company Secretary

---

Mar 31, 2024

2.15 Accounting of provisions, contingent liabilities and contingent assets

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.

2.16 Earnings per share (EPS)

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.

27 Significant accounting judgements, estimates and assumptions

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.

Judgements

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:

Recognition of deferred tax assets

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.

Estimates and assumptions

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.

Impairment of non- financial assets

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.

Inventories

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.

Defined Benefit Obligation (DBO)

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).

Useful lives of depreciable assets

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 measurement of financial instruments

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

30 Commitments and contingencies Contingent Liabilities

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.

Tax contingencies

Amounts in respect of claims assertedbyvarious revenue authoritieson the Company, in respect of taxes, which are in dispute, have been tabulatedbelow:

31 Operating Segment Reporting

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.

32 Financial risk management objectives and policies

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

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.

Liquidity risk

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.

33 Capital Management

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:

Loans availed from banks/financial institutions against current assets:

TThequarterlyreturnsorstatements filedbythe Company for working capital limits with such banks and financial institutions are in agreement with the books of account of the Company

34 Previous year figures

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.

35 Approval of Financial Statements

The financial statements were approved forissue bytheBoardofDirectorson28^th May2024.

For andon behalfoftheBoard ofDirectors

For A.R. KRISHNAN & ASSOCIATES

Chartered Accountants FRN No: 009805S

B. Anandaramakrishnan S.PRASAD REDDY S.SHARATREDDY

Partner ManagingDirector ExecutiveDirector

M.No.209122 (DIN :00069094) (DIN:02929724)

Place: Nellore N. Thyagarajan M. Balamurugan

Date:28^th May2024 Chieffinancial officer Company Secretary

---

Mar 31, 2023

2.15 Accounting of provisions, contingent liabilities and contingent assets

Provisions are recognized, when there is a present legal or constructive obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when 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 provision is discounted to net present value using an appropriate current market-based pre-tax discount rate and the unwinding of the discount is included in finance costs.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable.

2.16 Earnings per share (EPS)

Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders of the Company by the weighted average number of Ordinary shares outstanding during the year. Diluted EPS is computed by adjusting the profit or loss attributable to the ordinary equity shareholders and the weighted average number of ordinary equity shares, for the effects of all dilutive potential Ordinary shares.

27 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

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:

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry- forwards can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.

Estimates and assumptions

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.

Impairment of non- financial assets

In assessing impairment, management estimates therecoverable amountofeachasset or cash- generating units based on expected future cashflows and uses aninterestrate to discount them. Estimation uncertainty relates to assumptions about future operatingresults and thedeterminationofasuitable discount rate.

Inventories

Management estimates the net realizable values of inventories, taking into account the most reliable evidence available at each reportingdate. Thefuture realization ofthese inventoriesmay beaffected by future technology or other market-drivenchangesthat mayreduce futuresellingprices.

Defined Benefit Obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as attrition rate, mortality, discount rate andanticipationof future salary increases. Variation intheseassumptions may significantly impact the DBO amountandthe annualdefined benefit expenses (asanalyzedinNote 28).

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expectedutility ofthe assets.Uncertainties in these estimates relatetotechnological obsolescence that maychange the utilityofcertainassets.

Fair value measurement of financial instruments

Fair valueis the price thatwould be received to sell an asset or paidto transfera liability in an orderly transaction between market participantsatthemeasurement date. Thefairvalue measurement is based on the presumptionthatthetransaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for theassetorliability,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- financialassets. Thisinvolves developing estimates and assumptions consistent with howmarketparticipantswould price the instrument. Management bases its assumptions on observable data asfaras possiblebutthisisnotalwaysavailable. In thatcase management uses the best information available. Estimated fair valuesmayvaryfromtheactualpricesthatwould be achievedin anarm''slength transactionatthe reportingdate.

Current and non-current classificatio n

All assets and liabilities have been classified as current or non-current as per the Company''s normal operatingcycle and other criteriaset outintheScheduleIIItotheCompaniesAct,2013.Basedonthenature ofproducts andtimebetween theacquisition of assets forprocessingandtheir realizationin cashand cash equivalents, the company has ascertainedits operating cycleas 12months for the purposeof current or noncurrent classification of assetsand liabilities.

30 Commitments and contingencies Contingent Liabilities

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.

Tax contingencies

Amounts in respect of claims asserted by various revenue authorities on the Company, in respect of taxes, which are in dispute, have been tabulated below:

31 Operating Segment Reporting

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(IndianAccountingStandards)Rules,2015.

32 Financial risk managementobjectivesand p olicies

The Company''s principal financialliabilities compriseof loansandborrowings,tradeand other payables, and other current liabilities. The mainpurposeof thesefinancialliabilities is to raise finance for the Company''s operations. The Company has loans andreceivables,tradeandother receivables,and cash and short-term deposits that arise directly fromits operations.

The Company is exposed to marketrisk, creditriskandliquidity risk.

The Company''s senior management oversees the management of these risks. The Company''s senior management advises on financialrisks andtheappropriatefinancialriskgovernance framework.

The Board of Directors reviews andagrees policiesformanagingeachofthese riskswhich aresummarized below:

Market risk

Market risk is the risk that the fairvaluesoffuture cashflows ofafinancialinstrument will fluctuatebecause of changesin market prices. Market prices comprisethreetypes of risk:interest raterisk,currency risk andother price risk, suchas equityrisk.Financial instruments affectedbymarketrisk include loans and borrowings,deposits,available-for-saleinvestments.

Thesensitivity analyses in the following sections relatetotheposition asatMarch 31,2023 andMarch31,2022 Thefollowingassumptionshave been made in calculating the sensitivityanalyses:

Thesensitivity of the statementofcomprehensiveincome isthe effect of the assumedchangesininterest rates on the net interest incomefor one year,basedon theaverage rate ofborrowings heldduring the year ended March 31,2023, all other variablesbeingheldconstant.These changesarereasonablypossiblebased on observation of current marketconditions.

Interest rate risk

Interest rate risk is the risk thatthefair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to theriskofchanges in market interest rates relates primarily tothelong-term debtobligationswithaverageinterest rates.

Thecalculationsare based on a change intheaverage marketinterestrateforeachperiod,andthefinancial instruments held at each reportingdate thataresensitive tochanges ininterest rates.All other variables are held constant. If interest rates increaseor decreaseby100basis points with allother variables being constant, theCompany''s profit aftertaxfortheyearendedMarch 31, 2023 would decrease orincrease by Rs.Nil.(March 31,2022: 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.

Liquidity risk

The following is an analysis of theCompany''s contractualundiscounted cashflows payable under financial liabilities as at March 31,2023 andMarch 31,2022.

33 Capital Management

The Company''s objectives whenmanaging capitalistosafeguard continuity,maintain astrong creditrating and healthy capital ratios in orderto support its business andprovideadequatereturn toshareholders through continuing growth andmaximizethe shareholders''value. TheCompany''soverallstrategyremains unchanged from previous year. TheCompanysetstheamountof 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 shorttermandlong-termborrowingsto meetanticipatedfundingrequirements. The Company monitors capital on thebasis of thenet debtto equityratio. TheCompanyis notsubject to any externally imposed capital requirements.Net debt islongtermand short-term debts as reduced by cash and cash equivalents (including restricted cashandcashequivalents) andshort-term investments. Equity comprises share capital and freereserves(total reserves including capital reserve). The following tablesummarizesthecapital of the Company:

Loans availed from banks/financial institutions against current assets:

The quarterly returns or statements filed by the Company for working capital limits with such banks and financial institutions are in agreement with the books of account of the Company

34 Previous year figures

Previous year''s figures have been restated, rearranged and regrouped, wherever necessary to enable comparability of the current year''s position of accounts with that of the relative previous year''s position.

35 Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 30^th May 2023.

For and on behalf of the Board of Directors

For A.R. KRISHNAN & ASSOCIATES

Chartered Accountants FRN No: 009805S

A. SENTHIL KUMAR S. PRASAD REDDY S. SHARAT REDDY

Partner Managing Director Executive Director

M.No:214611 (DIN :00069094) (DIN :02929724)

Place: Nellore N. Thyagarajan M. Balamurugan

Date: 30^th May 2023 Chief financial officer Company Secretary

---

Mar 31, 2014

Note No. 1: Accounting Year:

The current accounting year consists of 12 months from April 1, 2013 to 31st March, 2014. Note No. 25: Taxes & Duties:

a) Income Tax: The assessments for and up to the assessment year 2011-2012 have been completed.

Note No. 2: Secured Loans;

The Company has obtained and extended the same Working Capital Limit of Rs.15,00,00,000/

- from THE FEDERAL BANK LIMITED, 61, Anna Salai, Chennai, against the hypothecation of Company''s Fixed Assets and Current Assets including Stock.

Note No. 3: Excise Duty on Closing Inventory of Feed:

The Company has opted out of 100% EOU, under the EPCG Scheme. All the Customs and Excise Duties resulting after the debonding have been paid in full. Henceforth, there is no liability on feed manufactured by the Company and hence no provision is made for Excise Duty on Inventory of Shrimp Feed.

Note No. 4: Auditors'' Remuneration:

Note No. 5: Foreign Currency Inflow:

Foreign Exchange Inflow on account of Export of Sales US $ 99,00,210 equivalent to Rs.59,93,14,675/- (P.Y: US $ 18,17,802 and Euros 1,04,164 equivalent toRs. 10,55,37,755/-)

Outflow:

Foreign Exchange Outflow on account of import of Capital Goods & Raw Materials US $ 2,65,932.87 equivalent to .1,61,98,73- (P.Y: US $ 5,43,196 and Euros 3,638.57 equivalent toRs. 2,78,94,310/-)

Note No. 6: The quantitative information required to be disclosed as per paragraphs 3 & 4 of Part II of Schedule - VI to the Companies Act, 1956 have not been furnished, as they have been exempted vide Notification f. No. 51/12/2007 - CL.III date 8th February, 2011, issued by the Ministry of Corporate Affairs, Govern- ment of India.

Note No. 7 : Contingent Liabilities :

Claims against the Company not acknowledged as debts

Current Year Previous Year Sl. No. Particulars (RS.In Lakhs) (RS.In Lakhs)

i) Claims on account of Contractual Obligations in connection with Construction at Site. 179.56 179.56

ii) Customs Duty and Excise Duty 76.31 76.31

iii) Service Tax 14.04 14.04

In earlier years, the Company has received adverse Judgement in a lower court in respect of a claim made by a Contractor at construction site. The Company has appealed against the judgement to the A.P. High Court and the case is pending disposal.

Note No. 8: Segment Reporting:

The Company''s only Business is Integrated Aqua Culture and related activities and hence disclosure of segment wise information is not applicable as required as per Accounting Standard-17 notified by the Company''s (Accounting Standards) Rules, 2006. There is no geographical segment to be reported since all the operations are in India.

Note No. 9: Related Party Disclosures:

Information relating to related party transactions as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below:

Note No. 10: Micro, Small and Medium Enterprises:

The Company has not received any information from the suppliers as regards their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclo- sure requirements in this regard as per Schedule - VI of the Companies Act, 1956 could not be provided. However, no interest accrued / paid during the year to any of the suppliers.

Note No.11: Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification disclosure.