1.1 CORPORATE INFORMATION
Venky’s (India) Limited (“the Company”) is a listed public company domiciled in India and is incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two recognised stock exchanges in India. The registered office of the company is located at Venkateshwara House, S. No. 114/A/2, Pune-Sinhagad Road, Pune 411030.
The Company has diversified its activities in poultry sector that includes production of SPF eggs, chicken and eggs processing, broiler and layer breeding, animal health products, Poultry feed & equipment, soya bean extract and many more. The Company has its growing and other manufacturing facilities across India and sells primarily in India.
1.2 BASIS OF PREPARATION Compliance with Ind AS
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) as notified by Ministry of Corporate affairs pursuant to section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments through Companies (Indian Accounting Standards) Amendment Rules thereafter.
The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements.
Current / non-current classification
All assets and liabilities have been classified and disclosed as current or non-current as per the Company’s normal operating cycle and other criteria set out in division II of Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as up to twelve months for the purpose of current or non-current classification of assets and liabilities.
Basis of measurement
The financial statements have been prepared on a historical cost basis, except for the assets and liabilities that require measurement at fair value in accordance with Ind AS. These assets and liabilities mainly consist of biological assets and certain financial instruments (including derivative instruments).In addition, the carrying values of recognised liabilities that are designated as hedged items in fair value hedges that would otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships.
The financial statements are presented in Indian Rupees and all values are rounded to the nearest lakhs (INR 00,000) except otherwise indicated.
1.3 RECENT ACCOUNTING PRONOUNCEMENT
On 28 March, 2018, the Ministry of Corporate Affairs(“MCA”), through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new amendments to Ind ASs effective for annual periods beginning on or after April 01 2018:
Ind AS 115- Revenue from Contract with Customers
Ind AS 21-The effect of changes in Foreign Exchange rates
The Company has evaluated the requirements of the amendment and the effect on the financial statements is not expected to be material.
Notes:
4 The Company test Goodwill impairment at the end of each reporting period annually.
Goodwill relates to the acquisition of North based poultry and packaging division from Venkateshwara Hatcheries Private Limited in March 2014 situated at Naraingarh - Haryana, Nalagarh - Himachal Pradesh and Ludhiyana - Punjab. These divisions are engaged in the production of commercial layer chicks and packing boxes for day old chicks and eggs respectively.
The recoverable amount of each CGU is determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved by management, which include assumptions on profit before interest and tax, depreciation, working capital movements and capital maintenance expenditure. Cash flows have been forecasted to grow at 8%. Cash flows beyond a five-year period are extrapolated using the estimated growth rates stated below.
(f) The Company has allotted fully paid up 4,695,779 bonus shares during the year 2015-16 ranking paripassu with the existing shares in the company without payment being received in cash.
(g) The Company has neither allotted any shares as fully paid up pursuant to contracts without payments being received in cash nor bought back any shares for the period of five years immediately preceding 31 March 2018 and 31 March 2017.
(h) The Company does not have any securities convertible into equity or preference shares as at 31 March 2018 and 31 March, 2017.
(i) The Board of Directors, in it’s meeting on 03 May 2018, proposed final dividend of Rs. 8/- per equity share. The total dividend appropriation for the year ended 31 March 2018 amounts to Rs. 1,358.65 Lakhs including dividend distribution tax of Rs. 231.66 Lakhs. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
(j) For the year ended 31 March 2017, the amount of per share dividend recognized as distribution to equity shareholders was Rs. 6/- towards final dividend. The total dividend appropriation for the year ended 31 March 2017 amounted to Rs. 1,017.31 Lakhs including dividend distribution tax of Rs. 172.07 Lakhs.
(k) The Company does not have any unpaid calls as at 31 March 2018 and 31 March 2017.
5 Details of securities and terms of repayments:
(i) Rupee loan-I (Secured) :
Rupee term loan from IDBI Bank Limited amounting to Rs. 555.56 Lakhs outstanding as at 31 March 2018 (previous year Rs. 1,666.67 Lakhs) carries an interest rate of sum of bank borrowing rate (BBR) as increased by 150 basis points per annum. Present applicable rate is 11.00% per annum. The loan is repayable in 54 equal monthly instalments commencing from 1 April 2014. The loan is secured by way of second charge on movable fixed assets of the Company in form of plant & machinery, electrical installations, vehicles, furniture & fixtures, office equipment, etc. and on the entire current assets of the Company.
(ii) Rupee loan- II (Secured) :
Rupee term loan from State Bank of India amounting to Rs. 3,745.36 Lakhs outstanding as at 31 March, 2018 (previous year Rs. 4,370.36 Lakhs) carries an interest rate of 2% above Base Rate. Present applicable rate is 9.75% per annum. The loan is repayable in 19 quarterly instalments commencing from June, 2015. The loan is secured by way of hypothecation on moveable assets of the Company situated at Packaging Division, Gadapur, PO Jodhewal, Basti and hypothecation on moveable assets and mortgage of immovable properties situated at (a) Morwadi, Kikwi, Bhor, Pune. (b) AHP and Feed Mill, Osade, Velhe, Pune. (c) Sountli, PO Shahzadpur, Tehsil Naraingarh, District Ambala, State Haryana, (d) Patvi, Tehsil Naraingarh, District Ambala, State Haryana. (e) Dhamouli/Patheri, Tehsil Naraingarh,District Ambala, State Haryana. (f) Dikadala and Jorasi, Tehsil Samalakha, District Panipat,Haryana. (g) Larsauli, Tehsil Ganapur, District Sonepat, State Haryana. (h) Srini, Naugaon, Pargana Pachwa doon, District Dehradun, State Uttaranchal.
(iii) Rupee loan - III (Secured) :
Rupee term loan from IFCI Ltd amounting to Rs. 3,116.07 Lakhs outstanding as at 31 March 2018 (previous year Rs. 4,362.50 Lakhs) carries an interest rate of 0.8% above Base Rate. Present applicable rate is 11.25% per annum.The loan is repayable in 7 equal half yearly instalments starting from end of 24th month. The loan is secured by way of an exclusive first charge by way of hypothecation of borrower’s all movable assets and mortgage over immovable properties situated at following locations:(a) IID centre, Govindnagar,Distt Kathua (b)Village Lohagaon,Taluka Haveli,Pune (c)Village Khopodi, Taluka Daund, District Pune (d) Village Mogar and Village Vadod, Tal Anand, Gujarat. (e) Village Bhandgaon, Taluka Daund, District Pune. (f) Village Salumbre, Taluka Maval, District Pune. The loan is backed by continuing corporate guarantee provided by Venkateshwara Hatcheries Private Limited - the Holding Company.
(iv) Rupee loan - IV (Secured) :
Rupee Term Loan from Mahindra and Mahindra Financial Services Limited amounting to Rs. 864.82 Lakhs outstanding as at 31 March 2018 (previous year Rs. 1,152.75 Lakhs) carries an interest rate of 3.20% over and above SBI Base rate. Present applicable rate is 12.15% per annum. The loan is repayable in 48 equated monthly instalments starting from date of disbursement. The loan is secured by way of an exclusive first charge by way of mortgage of land and building and hypothecation of machinery, including machinery spares, tools and accessories, electrical installation and fixtures situated at (a) Plot no. E-256,Phase 8-B, Sector74, SAS Nagar Mohali, Punjab, (b) Commercial Shop no.15, Ground Floor white square S.No.42/1,49/3,48/4, Vill. Wakad, Hinjewadi Road, Tal: Mulshi, Dist: Pune. (c) Commercial Shop No.13,14,15, Ground Floor, Girme Heights, S.No. 62, Hissa no. 12, Salunkhe Vihar Road, Wanawadi, Pune. (d) S.No. 320/3, 321/3, 321/4, off- Indore-Ujjain Highway, Vill Rajoda,Teh - Sanwer,Dist. Indore. The loan is backed by continuing corporate guarantee provided by Venkateshwara Hatcheries Private Limited - the Holding Company.
(v) Rupee loan - V (Secured) :
Rupee term loan from State Bank of India amounting to Rupees 820.25 lakhs outstanding as at 31 March 2018 (previous year Rupees NIL) carries an interest rate of 1.75% above 1Y MCLR. Present applicable rate is 9.75% per annum. The loan is repayable in 20 quarterly instalments commencing from April 2019. The loan is secured by way of an exclusive charge by way of hypothecation on moveable assets i.e. plant and machinery and equitable mortgage on land and building situated at GAT No. 23,24/1, 24/2,24/3,24/4,26 of Village Bondri, Gat No. 20,21/ 1 of Village Pimploshi, Gat No. 77,79/1,80,84 of Village Ker, Taluka Patan Dist. Satara.
(vi) External commercial borrowings - I (Secured):
The Company has availed external commercial borrowings (ECB -I) from ICICI Bank Limited amounting to Rs. 4,247.75 Lakhs outstanding as at 31 March, 2018 (previous year Rs. 7,183.32 Lakhs) into two tranches for financing its expansion plans. ECB-I is repayable in 11 half yearly predetermined instalments commencing from 03 April, 2013 and is denominated in US$. It carries an interest rate of 6 month USD LIBOR plus 4.5 percent per annum. Taking the currency risks in the cash flows arising out of fluctuations of USD LIBOR rates and also the currency fluctuations, the Company has entered into hedge agreements with its bankers. Further, the repayment of said liability in respect of the said loan is also fixed at predetermined exchange rate pursuant to the hedge agreements. The said loan is secured by an exclusive mortgage of land, building and immovable plant and machinery at processing plant situated at Baur Kamshet, Pune, Feed Mill and Oilseed plant at Solapur, poultry farm at Village Bhigwan and SPF Plant at Pasure Bhor.
(vii) External commercial borrowings - II (Secured):
The Company has availed external commercial borrowings (ECB - II) from ICICI Bank Limited amounting to Rs. 4,472.43 Lakhs outstanding as at 31 March, 2018 (previous year Rs. 5,697.04 Lakhs) for financing it’s expansion plans. ECB-II is repayable in 11 half yearly predetermined instalments commencing from 5th August, 2015 and is denominated in US$.
It carries an interest rate of 6 month USD LIBOR plus 4.25 percent per annum. Taking the currency risks in the cash flows arising out of fluctuations of USD LIBOR rates and also the currency fluctuations, the Company has entered into hedge agreements with its bankers. Further, the repayment of said liability in respect of the ECB - II is also fixed at predetermined exchange rate pursuant to the hedge agreements subject to caps. ECB - II is secured by an exclusive charge on the properties of the Company situated at Village Tondal, Taluka Purandar, District Pune, Nanded property and at Village Kouthadi, Taluka Daund, District Pune and extension of charge on land and buildings at Khadki and processing plant situated at Village Baur, Kamshet already charged to ICICI Bank Limited. Further, ECB- II is secured by an exclusive hypothecation of all future moveable assets of the company acquired/to be acquired from the loan facilities extended by the bank.
(viii) Deferred payment liabilities (Unsecured):
The deferred sales tax liabilities are interest free and shall be repaid in equal annual instalments not exceeding five such instalments at the expiry of 10th year. Deferment scheme started from 30 April 2002 and instalments started from 30 April 2012.
There is no amount in respect of default of repayment of borrowings and interest as at 31 March 2018 and 31 March 2017.
6 Details of securities and guarantees
(i) Loan repayable on demand - Cash Credit facilities:
The cash credit facilities except cash credit taken from ICICI Bank are secured by way of first charge on the entire current assets of the Company on pari passu basis.
(ii) Short term loans :
a. The short-term loan from State Bank of India amounting to Rs. 4,800.00 Lakhs outstanding as at 31 March 2018 (Previous year Rs. 6,300.00 Lakhs) is secured by way of hypothecation of first charge on the entire current assets of the company on pari passu basis.
b. The short-term loan from IDBI Limited amounting to Rs. 1,000.00 Lakhs outstanding as at 31 March 2018 (Previous year Rs. 850.00 Lakhs) is secured by way of hypothecation of first charge on the entire current assets of the company on pari passu basis.
c. The short-term loan from HDFC Limited amounting to Rs. 2,500.00 Lakhs outstanding as at 31 March 2018 (Previous year Rs. 2,500.00 Lakhs) is secured by way of hypothecation of first charge on the entire current assets of the company on pari passu basis.
d. The short-term loan from ICICI Bank Limited amounting to Rs. 4,500.00 Lakhs outstanding as at 31 March, 2018 (previous year Rs. 7,000.00 Lakhs) is secured by an extension of charge on land and buildings located at (a) Village Dikadla, Tehsil Samalkha, Dist. Panipat, State Haryana, (b) Plot No.55, Sansarpur terrace, Dist. Kangra, State Himachal Pradesh, (c) Village Laider, Tehsil Bara,District Allahabad, State Uttar Pradesh, (d) Processing Plant at Baur Kamshet, Pune, (e) Feed Mill and Oilseed Plant at Solapur, (f) Poultry farm at Village Bhigwan and (g) SPF Plant at Pasure Bhor and by way of hypothecation of movable fixed assets acquired/ to be acquired out of Rupee term loan and external commercial borrowings obtained from ICICI Bank Limited at these locations.
e. The short-term loan from Axis Bank Limited amounting to Rs. 626.32 Lakhs outstanding as at 31 March 2018 (previous year Rs. 1,347.59 Lakhs) is secured by an exclusive charge by way of hypothecation of plant and machinery and mortgage of land and buildings of the Mouje Kondiwade Taluka Maval Dist Pune and Mouje Bori Aindi Taluka Daund, Distt. Pune.
There is no amount in respect of default of repayment of borrowings and interest as at 31 March 2018 and 31 March 2017.
7 The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act are ‘NIL’ as given below. This information has been relied upon by the auditor.
Notes:
The Company is subject to legal proceedings and claims, which have arisen during the ordinary course of business. The Company’s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the Company’s results of operations or financial conditions.
Against the aforesaid contingent liabilities, the Company has paid an amount of Rs. 1,640.47 Lakhs (Previous year Rs. 967.22) under protest. The payment under protest is shown under other non current assets. (Refer Note No. 2.7)
Fair value estimation
Ind AS 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
The following table presents the Company’s assets and liabilities that are measured at fair value as at:
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the company is the current bid price. These instruments are included in Level 1.
Instruments included in Level 1 comprise of investments in mutual funds.
The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 comprise of derivative assets taken for hedging purpose.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The following valuation techniques and significant inputs were used to measure the level 3 inputs.
In measuring the fair value of biological assets, management estimates and judgements are required for the determination of fair value.
These estimates and judgements relate to the market prices, average weight and quality of animals and mortality rates.
8.1 FINANCIAL RISK MANAGEMENT Financial risk factors
This note presents information about the Company’s exposure to financial risks, the Company’s objectives, policies and processes for measuring and managing these risks and the Company’s management of capital.
The Company’s financial instruments consist primarily of cash and cash equivalents, investment in mutual funds, derivatives taken for hedge purpose, loans receivable, trade and other receivables and payables and long term and short borrowings. In the normal course of business, the Company is exposed to credit, liquidity and market risk. In order to manage certain of these risks, the Company may enter into transactions which make use of derivatives. They include forward exchange contracts, interest rate swaps, cross currency swaps and options. A separate committee is used to manage the risks and the hedging activities of the Company. The Company does not speculate in derivative instruments. Certain of the Company’s forward exchange contracts qualify as designated hedges for accounting purposes. Their fair values are disclosed in note 3.5.
The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework.
The Board has established the Risk Committee which is responsible for developing and monitoring the Company’s risk management policies. The Risk Committee reports regularly to the Board on its activities.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training, management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk primarily relates to trade and other receivables, long-term loans, cash and cash equivalents, the investment in mutual fund and derivative financial instruments.
The Company’s exposure to credit risk with regards to trade and other receivables is influenced mainly by the individual characteristics of each customer and there is no significant concentration of risk related to industry segments. The granting of credit is controlled by well-established criteria that are reviewed on a regular basis. The terms granted to trade debtors are determined by the respective credit policies of each operating segment. The maximum exposure to credit risk at the reporting date is the carrying amount of each trade receivable (refer to note 4.4).
The credit risk surrounding trade receivables is assessed as low as the counterparties represent large, well established trading companies within India.
The credit policy requires each new customer to be analysed individually for credit worthiness before delivery and payment terms are offered.
The Company’s review includes external ratings where available and in some cases bank references. Limits are established for each customer which represents the maximum trading amount without requiring
further approval. These limits are reviewed on an ongoing basis. Customers that fail to meet the Company’s benchmark creditworthiness may transact with the Company on a cash basis. Customers that default on payments are closely monitored and put on “stop supply” if required.
The Company has various credit terms with its trade debtors specific to each operating segment. Other receivables consist primarily of security deposits, loans to employees and other receivables. The risk of default is assessed as low.
Security deposits include amounts due in respect of certain distribution and lease contracts.
The risk of default is considered low as the counterparties represent large, well established trading companies within India.
The credit risk surrounding loans receivable is assessed as low risk.
Credit risk on cash and cash equivalents is assessed as low risk as the Company deposits cash surpluses with financial institutions of high quality and standing with high credit ratings assigned by international and domestic credit rating agencies.
Derivative instruments are limited to transactions with financial institutions with an acceptable credit rating.
Liquidity risk
The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its working capital requirements. Due to the dynamic nature of the underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s cash and cash equivalents on the basis of expected cash flow.
The Company’s current trade and other payables are all due within one year.
The table below summarises the maturity profile of the Company’s financial liabilities as at 31stMarch 2018 based on contractual undiscounted payments:
Market risk Interest rate risk
The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest rate risk is managed through the Company’s Board by using counterparties that offer the best rates which enables the Company to maximise returns whilst minimising risk.
In response to interest rate risk on the variable rate portion of the external borrowings, the Company has entered into hedge derivatives which are effective till the maturity of external borrowings.
Foreign currency risk
In the normal course of business the Company enters into transactions denominated in Indian Rupees and few transactions in foreign currencies. The Company has also taken external commercial borrowings denominated in US$. As a result, the Company is subject to exposure from fluctuations in foreign currency exchange rates. The Company utilises forward exchange contracts and currency options to minimise foreign currency exchange risk on external commercial borrowings in terms of its risk management policy. All forward exchange contracts and currency options are supported by underlying transactions.
The hedges in respect of currency risk are expected to mature in line with the maturity of external commercial borrowings.
There was no ineffectiveness to be recorded from the cash flow hedges.
Commodity price and procurement risk
Commodity price risk arises from the risk of an adverse effect on current or future earnings from fluctuations in the prices of commodities.
The principal directive is to procure commodities at the lowest cost to meet forecast requirements, both internally and for external sales. The overall procurement strategy and net positions are reported monthly to the Board and the oversight committees. The oversight committees are responsible for the setting of the monthly company view with regard to future price movements. The daily trading by the procurement teams are restricted in terms of this company view, unless prior approval is obtained from the Procurement Committees.
Capital risk management
The Board’s policy is to maintain a strong capital base so as to maintain shareholder, creditor and market confidence and to sustain the future development needs of the business. The Board monitors both the spread of shareholders return on equity (which is defined as profit for the year expressed as a percentage of average total equity) and the level of dividends paid to shareholders. There were no changes to the Company’s approach to capital management during the year.
(i) Gratuity (Funded)
The Company makes annual contributions to the gratuity fund managed by ICICI Prudential Life Insurance Company Ltd., a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months. Vesting occurs only upon completion of 5 years of service, except in case of death or permanent disability. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at balance sheet date by an independent actuary appointed by the Company.
(ii) Compensated absences (Non Funded)
The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at balance sheet date by an independent actuary appointed by the Company.
9.1 SEGMENT REPORTING
Business segment
The Company’s management examines the Company’s performance both from a product and geographic perspective and has identified three reportable segments of its business. The ‘Poultry and Poultry Products’ segment produces and sells chicks, grownup commercial broiler and layer, processed chicken, S.P.F. eggs, poultry feed and other miscellaneous poultry products. The ‘Animal Health Products’ segment produces and sells medicines and other health products for birds. The ‘Oilseed Segment’ produces and sells edible refined soya oil and soya de-oiled cake.
The operating businesses are organised and managed separately according to the nature of the products, with each segment representing a strategic business unit that offers different products and serves different markets. Transfer price between segments are measured on the basis of price charged for inter segment transfers. Segment revenue includes transfer between inter segments. Those transfers are eliminated in total revenue. Corporate expenses are allocated to other segments at cost. Geographical segment
Revenue and receivables are specified by location of customers while other geographic information is specified by location of the assets.
10 RELATED PARTIES DISCLOSURES
I NAMES OF RELATED PARTIES AND DESCRIPTION OF RELATIONSHIP
a. Key Management Personnel and their relatives
1 Mrs. Anuradha J. Desai
2 Mr. B. Venkatesh Rao
3 Mr. B. Balaji Rao
4 Mr. Jitendra M. Desai
b. Members of same group
(i) Party that exercises control
Venkateshwara Hatcheries Private Limited - Holding Company
(ii) Fellow subsidiaries
Bala Industries and Entertainment Private Limited Note:
Pursuant to the Scheme of Amalgamation, Eastern Hatcheries Private Limited, an erstwhile fellow subsidiary company has been merged with the Holding Company M/s Venkateshwara Hatcheries Private Limited w.e.f. 1st April 2015. Accordingly, the transactions and balances of previous year ended on 31st March 2017 are regrouped with the transactions and balances of Venkateshwara Hatcheries Private Limited.
c. Entity which is a post-employment benefit plan
1 Venky’s (India) Limited Employees Group Gratuity Scheme with ICICI Prudential Life Insurance Company Limited
2 Venky’s (India) Limited Officers Superannuation Scheme with ICICI Prudential Life Insurance Company Limited
3 Venky’s (India) Limited Officers Superannuation Scheme / Trust with Life Insurance Corporation.
d. Entity which is controlled or jointly controlled by a person identified in (a)
1 Venkateshwara Foods & Feeds (Firm)
2 Uttara Foods and Feeds Private Limited
3 All India Poultry Development And Services Private Limited
4 Uttara Impex Private Limited
5 B.V. Bio Corp Private Limited
6 Venkateshwara Biofeed Private Limited
7 Srivenk Investments and Finance Private Limited
e. A person identified in (a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity)
1 Venco Research and Breeding Farms Private Limited
2 Venkateshwara Research And Breeding Farm Private Limited
3 Wayward Acres, Inc.
# Outstanding receivables from related parties arise mainly from sales transactions and are due within 60 days following the date of transaction. These receivables are unsecured in nature and are interest free. No provision for impairment was made against receivable from related parties in current as well as previous year.
Outstanding payables to related parties arise mainly from purchase transactions and are due within 60 days following the date of transaction. These payables are interest free.
11 During the current financial year, a notice was issued to the Company under provisions of section 148 and 153A of the Income Tax Act, 1961, directing the Company to furnish return of its income for the financial years 2010-11 to 2016-17. Consequently, the additional income tax liability of Rs. 1,396.80 Lakhs pursuant to such revision / re-computation of the tax liability for the aforesaid financial years has been paid and provided by the Company during the year. The additional tax liability is included and disclosed under the "tax adjustments in respect of earlier period" in the statement of Profit and Loss.
The Company has prepared and presented its first set of IND AS compliant financial statements for the year ended 31 March 2017 with comparative financial year ended 31 March 2016. The financial statements for the year ended 31 March 2016 have been accordingly restated from then Indian GAAP to IND AS. Accordingly as per the requirements of IND AS, the Company valued certain biological assets at its fair market value less cost to sales as at 31 March 2017 as well as 31 March 2016 in accordance with IND AS 41 on Agriculture and IND AS 113 on Fair Value Measurement. The matter on taxability of the difference of fair value over the cost as at 31st March 2016 being the transitional adjustment had been referred to an independent tax consultant. Based on the professional advice received from the tax consultant, the excess of such fair value of biological assets as at 31 March 2016 over the corresponding value of inventories as reported under financial statements for the year ended 31 March 2016, of Rs. 1,732.69 Lakhs have been offered to income tax voluntarily by the Company for the financial year 201617 and income tax of Rs. 599.65 Lakhs has been paid as well as provided during the year and is disclosed under "tax adjustments in respect of earlier period" in the statement of Profit and Loss.
Interest on above payments of Rs. 287.03 Lakhs has been paid during the year and is disclosed under “finance cost” in the statement of Profit and Loss.
12 Previous year’s figures have been regrouped/recast/rearranged wherever necessary in order to conform to current year’s presentation. Previous year’s figures have been audited by a firm of chartered accountants other than B. D. Jokhakar & Co.
13 The Board of Directors, in it’s board meeting held on 03 May 2018, approved the financial statements for issue and the financial statements does not include any events after this date.
|