Note : Details and fair valuation of Biological Assets

Biological assets of the Company are in the nature of Consumable Biological Assets. It is bifurcated into Brood Stock, i.e. the Parents and harvested species which undergo biological transformation under different stages as Nauplii, Zoea, Mysis and Post Larvae. The Company sells the biological assets at Nauplii and Post Larvae Stages. The Brood Stock has a maximum useful life of 5 months for laying eggs. and thereafter these are scrapped.

Biological Assets is measured at fair value less costs to sell, with any change recognised in the Statement of Profit and Loss. Costs to sell are the incremental costs directly attributable to the disposal of biological asset, excluding finance costs and income taxes. Costs to sell include all costs that would be necessary to sell the assets, including direct selling costs. The transmission phase from Nauplii to Zoea and Mysis are not considered as significant transformation of biological asset and hence Zoea and Mysis are not valued as per Ind AS - 41, ""Agriculture””.

The fair value of biological assets is based on its market condition as on the reporting date. The quoted price in the market is the appropriate basis for determining the fair value of these biological assets.

In the event that market determined prices or values are not available for biological assets in its present condition we use the present value of the expected net cashflows from the asset discounted at a current market determined rate in determining fair value.

Fair Value Inputs are summarised as follows:

Level 1 Price Inputs - are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date.

Level 2 Price Inputs - are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 Price Inputs - are inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(i) No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person. While the trade receivable due from firms or private companies respectively in which any director is a partner, a director or a member is Rs. Nil (As at Mar 31, 2023 - Rs. Nil).

(ii) There are 4 major customers having significant balances, i.e. exceeding 5% of the total trade receivables as at Mar 31, 2024 and 3 major customers having significant balances as at Mar 31, 2023 amounting to Rs. 1,758.45 Lakhs and Rs. 3,195.63 Lakhs respectively.

(iii) Refer Note 41 for information about credit risk and market risk of trade receivables.

(iv) Trade receivables are generally on terms of 0 to 120 days based upon the credit worthiness of the customers.

(vi) Expected credit loss model

The Company considers the profile of each customers and the credit worthiness in determining the credit losses of Trade receivabes. The provision has been made based upon expected credit loss on the basis of past trend and also based on the provision policy framed by the management after adjusting the market value of the security taken from the customers in the form of mortgage property and bank guarantee.

Terms and rights attached to equity shares:

The Company has only one class of equity shares having par value of Rs.10 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, except in the case of interim dividend.

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 amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

(i) Securities premium account:

Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Indian Companies Act, 2013 (the "Companies Act”).

(ii) Capital reserve

Capital reserve represents a resource created by accumulated capital surplus and remain invested in the business for set off against any capital expenditure. This will not be distributed as dividends. The Company recognizes profit or loss on purchase, sale, issue or cancellation of the Company's own equity instruments to capital reserve.

(iii) General reserve

Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, the requirement to mandatorily transfer a specified percentage of net profit to general reserve has been withdrawn.

(iv) Retained earnings

Retained earnings comprises of the Company's undistributed earnings after taxes. Such appropriations are free in nature.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note No. 34 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 summarised below.

c. In respect of the Contingent Liabilities mentioned in Note 34.a and 34.b above pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any. In respect of matters mentioned in Note 34.c above, the cash outflows, if any, could generally occur during the validity period of the respective guarantees in the event of default, if any, by the concerned beneficiaries. The Company does not expect any reimbursements in respect of the above contingent liabilities.

During the year the company has commenced reporting of segment information as per Ind As-108 "Operating Segments”. The Identification of operating Segments is based on and consistent with performance assessment and resources allocation by the Chief Operating Decision Maker.

The Company principally engaged in the business of Shrimp Feeds, Processed Shrimp, Others (Shrimp Hatchery & FFD). The financial performance relating to these business segments are evaluated regularly by the Chief Executive Officer (Chief Operating Decision Maker). Sale outside India is exceeded the reportable threshold limit, thus geographical segment information is given as follows -

Nature of Segment

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

ii) Processed Shrimps are packed and sold it to the export market customer.

iii) Others includes production and sale of shrimp seeds to aqua farmers & Frozen sea food sold domestically.

Notes

1) Unallocable corporate income includes majorly interest income & Unallocable expenditure majorily includes Finance Cost, secretarial cost, Professional charges & Corporate Social Responsibility not allocated to segments. Un-allocable corporate assets comprises majorly bank balances, deposits & deferred tax assets. Un allocated Liabilities comprises majorly borrowings.

2) It is to be noted that all Non-Currents Assets are situated in India.

Terms and conditions of transactions with related parties

The purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided for any related party payables.

Note No. 40 Employee benefit plans Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the year by them at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior month's contributions that were not

Provident Fund

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary (currently 12% of employees' salary). During the year, the Company has recognised Rs.108.23 lakhs (for the year ended Marc 31, 2023 Rs.103.87 lakhs) as contribution in the Statement of Profit and Loss Account.

Other long term Employee Benefits - Compensated Absence:

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof as per the Company's policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation as at year ended Mar 31, 2024 is Rs. 142.64 Lakhs (Mar 31, 2023: Rs. 132.37 Lakhs). The Company does not have an unconditional right to defer settlement for any of these obligations, however, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next twelve months, hence the amount of the provision is presented as both non current and current.

i. The short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.]

41.3 Financial risk management objectives

The Company's principal financial liabilities comprises of 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 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.

41.4 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 two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits.

41.5 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of reporting period are as follows:

41.6 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

The Company's investments in term deposits with bank are carried at amortised cost and are at fixed interest rates. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates. There are no borrowings outstanding as on Mar 31, 2024 and as on Mar 31, 2023.

41.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (Borrowings) at the end of the reporting period. For floating rate liabilities, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company's:

• profit before tax for the year ended Mar 31, 2024 would decrease/increase by Rs.25.93 Lakhs (For year ended Mar 31, 2023 Rs.37.70 Lakhs). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings.

41.7 Credit risk management

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Comapany is exposed to this risk for various financial instruments, for example trade receivables, placing deposits, investment in mutual funds etc.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates 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 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.

(All amounts are in ' Lakhs)

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company's exposure of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, the Company takes colleteral in the form of mortgaged properties and bank guarantees from the customers.

Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets (i.e. trade receivables) at any time during the year, except for 4 major customers having significant balances, i.e. exceeding 5% of the total trade receivables as at Mar 31, 2024 and 3 major customers having significant balances as at Mar 31, 2023 amounting to Rs. 1,758.45 Lakhs and Rs. 3,195.63 Lakhs respectively. In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks.

The Company's maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at Mar 31, 2024, bank guarantees amounts to Rs.348.27 Lakhs (as at Mar 31, 2023: Rs. 503.84 Lakhs) has been considered in the balance sheet as contingent liabilities [refer note 34(b)].

The Company also adjusts outstanding trade receivables on selective basis against purchase of shrimps from the customers. Trade receivable amounting to Rs.2,622.76 lakhs has been adjusted against trade payable based on the confirmations obtained from the customers during year ended March 2024 (for the March 31, 2023 Rs. 278.65 Lakhs).

As at 31 March 2024, trade receivables to the extent of Rs. 537.94 lakhs {As at 31 March 2023 Rs. 617.02 lakhs) has been realised by the Company from the customers through the financial institution based on a channel financing arrangement. The Company has a first default loss guarantee in respect of such realised receivables which remains outstanding for settlement by the customers to the financial institution to the extent of Rs. 18.68 lakhs (as at 31 March 2023 Rs. 13.06 lakhs). This is included in the allowance for expected credit loss as at the year ended.

41.7.1 Collateral held as security and other credit enhancements

The Company collects Bank Gurantee and Property Mortgage wherever possible as collateral from it's customers for maintaining their risk profile.

41.8 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

As at Mar 31, 2024, total limit of Rs. 9,881 Lakhs includes non-fund based limit of Rs. 500 Lakhs and non-fund based sub-limits aggregating to Rs. 3,981 Lakhs (as at Mar 31, 2023, total limit of Rs. 7,381 Lakhs includes non-fund based limit of Rs. 500 Lakhs and non-fund based sub-limits aggregating to Rs. 4,481 Lakhs)

Note: As at Mar 31, 2024, Rs.10 Lakhs out of the total bank guarantee of Rs. 348.27 Lakhs (as at Mar 31, 2023: Rs. 85 Lakhs out of the total bank guarantee of Rs. 503.84 Lakhs) have been taken against the company's sanctioned limits, the remaining bank guarantee has been taken against the lien on fixed deposits.

Borrowings as at Mar 31, 2024 Rs.2,593.11 lakhs (Rs.3,769.87 lakhs as at Mar 31, 2023) are secured by hypothecation of present and future stock of raw materials, work in progress, finished goods, stores and spares and debtors. Equitable mortgage over the factory land and building of the Company at Nellore and charge over property, plant and equipment of the Company, excluding vehicles.

41.10 Fair value measurements

This note provides information about how the Company determines fair values of various financial assets and financial liabilities.

41.10.1 Fair value of the financial assets and liabilities that are measured at fair value

The management considers the carrying amount of Biological assets at their appropriate fair values (Refer Note-11).

41.10.2 Fair value of the financial assets and liabilities that are not measured at fair value

The management consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

i) The Company does not have any transactions with companies struck off during the fiancial year ended Mar 31, 2024 and Mar 31, 2023.

ii) The Company has made allowance for expected credit loss for the unsecured balances.

Note No. 44 Employee stock option plan

During the previous year ended Mar 31, 2023, the Company had applied to stock exchange with a Employee Stock Option Plan (ESOP) after taking due approval from the share holders. The approval from the stock exchange was in process as at Mar 31, 2023.

During the year ended Mar 31, 2024, the management of the Company have received the approval from the stock exchange, however there was no options granted under the ESOP and the company has postponed the plan for rolling out the ESOP to the employees.

Note No. 45 Additional Regulatory Information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

iii) The Company does not has any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) 1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

2. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) The Company has complied with the requirement with respect to number of layers as prescribed under Section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

vii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

Note No. 46 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

(i) Advances in the nature of loans given to Companies is Rs.Nil (As at Mar 31, 2023: Rs.3.64 Lakhs)

(ii) Details of investments made under Section 186 of the Companies Act, 2013 are disclosed in Note 5. There are no loans/ guarantees issued under Section 186 of the Companies Act, 2013 read with rules issued thereunder.

Note No. 47 Audit trail

The Company has used accounting software for maintaining its books of account, which has a feature of recording audit trail as per the requirement of the Companies (Accounts) Rules, 2014 as amended by Ministry of Corporate Affairs (MCA) notification dated March 24, 2021, except that the audit trail feature was not enabled for transaction and master tables to log any direct data changes throughout the financial year.

Note No. 48 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.

Note No. 49 Approval of Standalone Financial Statements

The Standalone financial statements were approved for issue by the Board of Directors on May 29, 2024.