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Avanti Feeds Ltd.

BSE: 512573 Sector: Agri and agri inputs
NSE: AVANTIFEED ISIN Code: INE871C01038
BSE 00:00 | 06 Oct 498.20 7.80
(1.59%)
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490.65

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501.00

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488.50

NSE 00:00 | 06 Oct 498.65 8.10
(1.65%)
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494.00

HIGH

501.00

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488.30

OPEN 490.65
PREVIOUS CLOSE 490.40
VOLUME 19484
52-Week high 638.00
52-Week low 384.90
P/E 36.34
Mkt Cap.(Rs cr) 6,785
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 490.65
CLOSE 490.40
VOLUME 19484
52-Week high 638.00
52-Week low 384.90
P/E 36.34
Mkt Cap.(Rs cr) 6,785
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Avanti Feeds Ltd. (AVANTIFEED) - Auditors Report

Company auditors report

TO THE MEMBERS OF AVANTI FEEDS LIMITED

Report on the Audit of the standalone financial statements Opinion

We have audited the accompanying Standalone Financial Statements of Avanti FeedsLimited ("the Company") which comprise the Balance Sheet as at 31st March 2022the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (herein after referred to as the "standalonefinancial statements"). In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid Standalone Financial Statementsgive the information required by the Companies Act 2013 ("the Act") in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India of the state of affairs of the Company as at 31st March 2022 itsprofit including other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under Section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Companies Act 2013 and the Rules made there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.

key Audit matters

key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

key Audit matters Auditor's Response
1. Accuracy of recognition measurement presentation and disclosures of reve- nues and other related balances in view of Ind AS 115 "Revenue from Contracts with Customers" (revenue accounting standard) We assessed the Company's process to identify the impact of the revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: We assessed the appropriateness of the revenue recog- nition accounting policies by comparing with applicable accounting standards.
The application of the accounting stan- dard involves certain key judgements relating to identification of the con- tract with a customer identification of distinct performance obligations de- termination of transaction price of the identified performance obligations the Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obli- gations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
appropriateness of the basis used to measure revenue recognized when a performance obligation is satisfied. Ad- ditionally revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obli- gations will be satisfied subsequent to the balance sheet date. Tested the relevant information technology systems' access and change management controls relating to con- tracts and related information used in recording and dis- closing revenue in accordance with the relevant account- ing standard.
Selected a sample of continuing and new contracts and performed the following procedures:
Read analyzed and identified the distinct performance ob- ligations in these contracts.
Refer notes 2.4.c and 21 to the Stand- alone Financial Statements Compared these performance obligations with that identi- fied and recorded by the Company.
Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consider- ation.
Samples in respect of revenue recorded upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Com- pany expects to receive in exchange for those products or services were tested using a combination of DCs Sales orders weighment slips and non-returnable gate passes including customer acceptances subsequent invoicing and historical trend of collections and disputes.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. We reviewed the collation of information and the logic of the report generated from the IT system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
key Audit matters Auditor's Response
2. The Company enters into various Our procedures included but were not limited to:
financial instruments such as investments in quoted and unquoted equity instruments quoted mutual funds and quoted non-convertible debentures. As at 31st March 2022 Obtaining an understanding of the internal risk management procedures and the systems and controls associated with the origination and maintenance of complete and accurate information relating to financial instruments;
financial instruments carried at fair value through profit and loss totaled Rs67097.43 Lakhs (current investments of Rs67095.27 Lakhs and non-current investments of Rs2.16 Lakhs) as disclosed in note 6 to the Standalone Financial Statements. These financial instruments are recorded at fair value as required by the relevant accounting standard. We have focused on this area due to the complexities associated with the valuation and accounting for these financial instruments. We also tested on a sample basis the existence and valuation of such financial instruments as at 31st March 2022. Our audit procedures focused on the integrity of the valuation models and the incorporation of the contract terms and the key assumptions including future price assumptions and discount rates; and
Obtaining an understanding of key financial instrument contract terms to assess the appropriateness of accounting reflected in the financial report. We have also assessed the appropriateness of the disclosures included in note 37 to the Standalone Financial Statements.
3. Inventory valuation and existence
At the balance sheet date the value of inventory amounted to Rs71467.25 Lakhs representing 36.85% of total assets. Inventories were considered as key audit matter due to the size of the balance and because inventory valuation involves management judgment. To address the risk for material error on inventories our audit procedures included amongst others:
Assessing the compliance of Company's accounting policies over inventory with applicable accounting standards.
Observed the stock take process at Factory locations during the year and at the end of the year and undertook our test counts where ever necessary.
As described in note 2.4.j of the financial statements inventories are carried at the lower of cost and net realizable value on a weighted average basis. Compared the Quantities we counted with Quantities recorded.
Analyzing the Inventory Ageing reports and net realizable value of inventories
The Company has segment specific procedures for identifying risk for obsolescence and measuring inventories at the lower of cost and net realizable value. Tested that inventory on hand at the end of the period was recorded at the lower of cost and net realizable value by testing a sample of inventory items to the most recent selling price.

nformation Other than the standalone financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report and Shareholder's Information but does not include the StandaloneFinancial Statements and our auditor's report thereon. Our opinion on the StandaloneFinancial Statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the Standalone FinancialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information; we are required to report thatfact. We have nothing to report in this regard.

management's Responsibility for the standalone financial statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the Standalone Financial Statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so. Those Board ofDirectors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether these StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also: Identify and assess the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error designand perform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control. Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls. Evaluate the appropriateness ofaccounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management. Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern. Evaluate the overallpresentation structure and content of the Standalone Financial Statements including thedisclosures and whether the Standalone Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit. We also provide those charged withgovernance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Standalone FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the "Annexure-A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The balance sheet the statement of profit and lossincluding other comprehensive income the statement of changes in equity and the statementof cash flows dealt with by this Report are in agreement with the books of account. d) Inour opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of the written representations receivedfrom the directors as on 31st March 2022 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed as adirector in terms of Section 164(2) of the Act. f) With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in "Annexure-B".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's Report in accordance with the requirementsof Section 197(16) of the Act as amended: In our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by theCompany to its directors during the year is in accordance with the provisions of Section197 of the Act. h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its Standalone Financial Statements- Refer note 30 to thefinancial statements ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company. iv. a) The management has represented thatto the best of its knowledge and belief no funds have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by thecompany to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediaries shall whether directly or indirectly lend or investin other person or entity identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; b) The management has represented that tothe best of its knowledge and belief no funds have been received by the company from anyperson or entity including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other person or entity identified in any mannerwhatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries; andc) Based on the audit procedures that were considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement. v. a) Thefinal dividend paid by the Company during the year in respect of the same declared for theprevious year is in accordance with Section 123 of the Act to the extent it applies topayment of dividend. b) The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The dividend declared is in accordance with Section 123 of the Act to the extentit applies to declaration of dividend

For TUKARAM & CO LLP
Chartered Accountants
ICAI Firm Registration no: 004436S / S200135
(K. Rajender Reddy)
Partner
Membership no: 231834
UDIn: 22231834AIYFWQ7464
Place : Hyderabad
Date : 12th May 2022

"Annexure – A" to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Standalone Financial Statements for the year ended 31st March 2022 we reportthat: Re: Avanti Feeds Limited (‘the Company') i. In respect of the Company'sProperty Plant and Equipment (including right-of-use assets) and Intangible Assets: (a)(A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right-of-use assets.

(B) The Company has maintained proper records showing full particulars of intangibleassets. (b) As explained to us the management has physically verified a substantialportion of the Property Plant and Equipment during the year and in our opinion frequencyof verification is reasonable having regard to the size of the Company and the nature ofits assets. The discrepancies noticed on physical verification of Property Plant andEquipment as compared to the books of account were not material and have been properlydealt with in the books of accounts. (c) In our opinion and according to the informationand explanations given to us all the title deeds of immovable properties are held in thename of the Company. In respect of immovable properties of land and buildings that havebeen taken on lease and disclosed as asset in the financial statements the leaseagreements are in the name of the Company where the Company is the lessee in theagreement. (d) The Company has not revalued any of its Property Plant and Equipment(including right-of-use assets) and intangible assets during the year.

(e) no proceedings have been initiated during the year or are pending against theCompany as at 31st March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder. ii.(a) According to the information and explanations given to us the inventories have beenphysically verified by the management during the year. In our opinion the frequency ofverification is reasonable and the coverage and procedure of such verification by themanagement is appropriate. The discrepancies identified during such verification were notmore than 10% in the aggregate for each class of inventory as compared to the books ofaccount. (b) The Company has been sanctioned working capital limits in excess of fivecrore rupees from banks on the basis of security of current assets. The quarterly returnsor statements filed by the Company with such banks are in agreement with the books ofaccount of the Company. iii. According to the information and explanations given to us inour opinion the investments made by the Company are prima facie not prejudicial to theinterest of the Company.

The Company has not provided any guarantee or security or granted any loans or advancesin the nature of loans secured or unsecured to companies firms Limited LiabilityPartnerships or any other parties. Accordingly reporting under clause 3(iii)(a) to3(iii)(f) are not applicable. iv. There are no loans guarantees and security in respectof which provisions of Sections 185 of the Act are applicable. Investments in respect ofwhich provisions of Section 186 of the Act are applicable have been complied with by theCompany. v. According to the information and explanations given to us the Company hasneither accepted any deposits from the public nor accepted any amount which are deemed tobe deposits within the meaning of Section 73 and 76 or any other relevant provisions ofthe Act and the rules framed there under. Hence reporting under clause 3(v) of the Orderis not applicable.

vi. We have broadly reviewed the books of account and records maintained by the Companypursuant to the Rules made by the Central Government of India for the maintenance of costrecords prescribed under sub-section (1) of Section 148 of the Act related to generationof electricity and are of the opinion that prima facie the prescribed accounts andrecords have been maintained. We have however not made a detailed examination of therecords with a view to determine whether they are accurate or complete. vii. In respect ofStatutory dues: (a) The Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees state insurance income-taxgoods and service tax value added tax duty of customs cess and other statutory duesapplicable to it. According to the information and explanations given to us no undisputedamounts payable in respect of such statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofprovident fund employees state insurance goods and service tax cess and other statutorydues which have not been deposited on account of any dispute. The details of dues of valueadded tax duty of customs and Income Tax that have not been deposited on account of anydispute are as follows:

Name of the statute Nature of the dues Amount ‘Rs' in Lakhs Period to which the amount relates forum where dispute is pending
Madhya Pradesh VAT Act 2002 Sales tax (MP VAT demand for soya transactions in 2005-06) 29.22 2005-2006 High Court of Madhya Pradesh
Customs Act 1962 Customs duty 60.82 2009 -2010 to 2011-2012 CESTAT Chennai Commissioner
Income Tax Act 1961 Income Tax 12.23 2013-2014 Appeals Income Tax Hyderabad

viii. According to information and explanation given to us there were no transactionsrelating to previously unrecorded income that have been surrendered or disclosed as incomeduring the year in the tax assessments under the Income Tax Act 1961 (43 of 1961). ix.(a) Based on our audit procedures and as per the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of loansor other borrowings or in the payment of interest thereon to banks. There are no dues tofinancial institutions or government.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) The Company has not taken any term loan during the year and there are nooutstanding term loans at the beginning of the year and hence reporting under clause3(ix)(c) of the Order is not applicable. (d) On an overall examination of the financialstatements of the Company funds raised on short-term basis have prima facie not beenused during the year for long-term purposes by the Company. (e) On an overall examinationof the financial statements of the Company the Company has not taken any funds from anyentity or person on account of or to meet the obligations of its subsidiaries orassociates. The Company does not have any joint venture.

(f) The Company has not raised any loans during the year on the pledge of securitiesheld in its subsidiaries or associates and hence reporting under clause 3(ix)(f) of theOrder is not applicable.

x. (a) According to the information and explanations given to us the Company has notraised any money during the year by way of public offer (including debt instruments) andhence reporting under clause 3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable. xi. (a) Based upon theaudit procedures performed for the purpose of reporting the true and fair view of thefinancial statements and as per the information and explanations given by the managementwe report that no fraud by the Company and no material fraud on the Company has beennoticed or reported during the year. (b) During the year no report under sub-section (12)of Section 143 of the Act has been filed by secretarial auditor or by us in Form ADT 4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year (and up to the date of this report) while determining the naturetiming and extent of our audit procedures. xii. In our opinion and according to theinformation and explanations given to us the Company is not a nidhi Company and hencereporting under clause (xii) of the Order is not applicable. xiii. According to theinformation and explanations given to us and based on our examination of the records ofthe Company transactions with the related parties are in compliance with Sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards. xiv. (a) Inour opinion the Company has an adequate internal audit system commensurate with the sizeand the nature of its business. (b) We have considered the internal audit reports for theyear under audit issued to the Company during the year and till date in determining thenature timing and extent of our audit procedures. xv. According to the information andexplanations given to us and based on our examination of the records of the Company theCompany has not entered into any non-cash transactions with its directors or personsconnected with its directors and hence provisions of Section 192 of the Companies Act2013 are not applicable to the Company. xvi. (a) In our opinion the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order is not applicable. (b)In our opinion there is no Core Investment Company within the Group (as defined in theCore Investment Companies (Reserve Bank) Directions 2016) and accordingly reporting underclause 3(xvi)(d) of the Order is not applicable. xvii. The Company has not incurred cashlosses during the financial year covered by our audit and the immediately precedingfinancial year. xviii. There has been no resignation of the statutory auditors of theCompany during the year. xix. On the basis of the financial ratios disclosed in note 41 tothe Standalone financial statements ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due. xx. In ouropinion and according to the information and explanations given to us there is no unspentamount towards Corporate Social Responsibility under sub-section (5) of Section 135 of thesaid Act pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Orderare not applicable. xxi. There have been no qualifications or adverse remarks by therespective auditors in the Companies (Auditor's Report) Order (CARO) reports of thecompanies included in the consolidated financial statements. Accordingly reporting underclause 3(xxi) of the Order is not applicable for the year.

For TUKARAM & CO LLP
Chartered Accountants
ICAI Firm Registration no: 004436S / S200135
(K. Rajender Reddy)
Partner
Membership no: 231834
UDIn: 22231834AIYFWQ7464
Place : Hyderabad
Date : 12th May 2022

Annexure - B to the independent Auditors' Report

Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") We haveaudited the internal financial controls over financial reporting of Avanti Feeds Limited("the Company") as of 31st March 2022 in conjunction with our audit of theStandalone Financial Statements of the Company for the year ended on that date.

management's Responsibility for internal financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

meaning of internal financial Controls over financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the StandaloneFinancial Statements.

inherent Limitations of internal financial Controls over financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For TUKARAM & CO LLP
Chartered Accountants
ICAI Firm Registration no: 004436S / S200135
(K. Rajender Reddy)
Partner
Membership no: 231834
UDIn: 22231834AIYFWQ7464
Place : Hyderabad
Date : 12th May 2022

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