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Venkys (India) Ltd.

BSE: 523261 Sector: Others
NSE: VENKEYS ISIN Code: INE398A01010
BSE 00:00 | 24 May 1936.40 -36.70
(-1.86%)
OPEN

1994.95

HIGH

2005.00

LOW

1925.05

NSE 00:00 | 24 May 1936.80 -35.45
(-1.80%)
OPEN

1993.95

HIGH

2012.80

LOW

1925.90

OPEN 1994.95
PREVIOUS CLOSE 1973.10
VOLUME 3698
52-Week high 3950.00
52-Week low 1852.00
P/E 16.55
Mkt Cap.(Rs cr) 2,728
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1994.95
CLOSE 1973.10
VOLUME 3698
52-Week high 3950.00
52-Week low 1852.00
P/E 16.55
Mkt Cap.(Rs cr) 2,728
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Venkys (India) Ltd. (VENKEYS) - Auditors Report

Company auditors report

To

The Members of

Venky’s (India) Limited

Report on the Audit of Financial Statements Opinion

We have audited the accompanying financial statements of Venky’s (India)Limited ("the Company") which comprise the Balance sheet as at 31st March2021and the Statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 and profit(including other comprehensive income) changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

(i) Valuation of Biological Assets- (as described in note 1.3 (j) note 3.2 andnote 7.2 of the financial statements)

Description of Key Audit Matter:

Biological assets include Poultry for live-stock breeding (Broiler and Layer Parents)hatching eggs Specific Pathogen Free Eggs (S.P.F Eggs) Commercial Eggs and livecommercial birds (Broiler and Layer). Biological assets except breeder flock andcommercial layer birds are measured at fair value less cost to sell.

Ind AS 41- Agriculture and Ind AS 113 – Fair Value Measurement deal withrecognition and measurement of fair value of biological assets respectively. The fairvalue measurement requires consideration of market approach cost approach and incomeapproach. Considering the distinctiveness of lifecycle of Biological Assets the marketbenchmarks for valuation are difficult to ascertain / find. Additionally thedetermination of best fit valuation technique using fair value estimates is a complexprocess involving significant judgments and estimates regarding inputs. The value of theCompany’s biological assets as at 31st March 2021 amounts to INR20492.27 Lakhs which is a significant component of the Balance Sheet. Therefore we haveconsidered it to be a key audit matter.

Description of Auditor’s response:

We have gained adequate understanding of the nature of biological assets lifecycle andapplied the prescriptions given in Ind AS 41 and Ind AS 113 in their context. We haveundertaken audit procedures in relation to accounting of biological assets controlsexercised and valuation methods adopted by the management over biological assets with aview to evaluate their appropriateness and compliance with the applicable accountingprinciples.

Identification and classification of biological assets is a key determinant and wasexamined and evaluated. We analyzed the valuation approaches adopted by management foreach class of biological assets for their appropriateness based on the principle ofhighest and best possible use as laid down in Ind AS 41. We also audited the methodologyused by the Company and verified reasonableness of inputs / assumptions used by theCompany including production life cycle feed consumption and mortality rates. Further wehave analytically reviewed the results of valuation and compared the same with the pasttrends. Finally the appropriateness and adequacy of the presentation and disclosure ofbiological assets in the financial statements was audited.

(ii) Transactions with related parties - (as described in note 13 of the financialstatements)

Description of Key Audit Matter:

The Company operates within a conglomerate of group entities. The parent company andassociates operate in the line of business as the Company. The transactions with relatedparties are significant that have effect over both statement of profit and loss andbalance sheet described in detail in Note 13 of financial statements and include salespurchases advances etc.

These group companies operate in the same sector and have significant transactionsamongst themselves during the year. Such transactions with related parties arenecessitated to be at arm’s length they involve significant cash flow betweenparties inter company contracts and common management amongst other things they areconsidered to be a key audit matter.

Description of Auditor’s response:

Audit procedure included identification of related party relationships classificationexamination of transactions from the perspective of arm’s length criteria adopted bythe Board of Directors risks attached to items such as collateral security interest rateand recovery of other receivable ageing and provisioning policies and practices reviewof confirmation and reconciliation process review of controls and analytical review ofvarious account balances and transaction balances amongst other things.

Other Information

The Company’s Board of Directors is responsible for the other information. TheOther information comprises the Management Discussion and Analysis Report Directors’Report including Annexures to Directors’ Report Report on Corporate Governance andBusiness Responsibility Report but does not include the financial statements and ourauditor’s report thereon.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: z Identify and assess therisks of material misstatement of the financial statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. z Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls. zEvaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management. z Conclude on theappropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor’s report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However future events or conditions may cause the Company to cease to continue asa going concern. z Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 7.1 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For B. D. Jokhakar & Co.
Chartered Accountants
Firm Registration No: 104345W
Raman Jokhakar
Partner
Mumbai Membership No.103241
May 10 2021 UDIN: 21103241AAAAFR4063
Address: 8 Ambalal Doshi Marg
Fort Mumbai 400001

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of Independent Auditor’s Report on financial statements ofeven date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to information and explanations provided to us the fixed assets of theCompany have been physically verified during the year by the management in accordance witha phased program of physical verification designed to cover all assets over a period ofthree years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. Based on records made available to us no materialdiscrepancies were identified on such verification.

(c) Based on audit procedures performed by us for the purpose of reporting the true andfair view of the financial statements of the Company and based on records produced to usand according to information and explanations provided by the management the title deedsof immovable properties forming part of property plant and equipment are held in thename of the Company except for the cases mentioned below wherein it is informed to us thatregistration of said property is in process.

(Rupees in Lakhs)

Particulars Location Total number of cases Gross block as at March 31 2021 Net block as at March 31 2021
Freehold Land and Building thereon Nalagarh Larsouli 2 1428.14 1345.56

ii. As explained to us the management has conducted physical verification of itsinventories during the year. In our opinion having regards to size of the Company andnature of its business the frequency of verification is reasonable. Based on recordsproduced to us discrepancies noticed on verification between the physical stocks and thebook records were not material and were properly dealt with in the books of account.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Consequently sub clause (a) (b) and (c) of the paragraph 3 (iii) are not applicableto the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and securities so far as applicable for the year underreport.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public within the meaning of the provisionsof sections 73 to 76 or any relevant provisions of the Act and the rules framed thereunder and therefore the provisions of the clause 3 (v) of the Order are not applicable tothe Company.

vi. We have broadly reviewed the cost accounting records maintained by the Companypursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under section 148(1) of the Act.

However we have not made a detailed examination of the records with a view todetermine its accuracy. Based on our review we are of the opinion that prima facie theprescribed accounts and records have been made and maintained.

vii. In respect of statutory dues:

a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees’ state insurance income-tax goods and services tax duty of customcess and other statutory dues applicable to it. As per the records of the Company as atMarch 31 2021 the Company does not have any undisputed statutory dues which areoutstanding for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us the particulars of duesin respect of income tax (including TDS) sales tax service tax goods and services taxduty of customs duty of excise and value added tax that have not been deposited with theappropriate authorities on account of dispute and the forum where the disputes are pendingas on March 31 2021 are as given below:

Name of the Statute Nature of Dues Amount Involved (Rupees in Lakhs) Amount paid / adjusted under protest (Rupees in Lakhs) Period Forum where dispute is pending
Central Sales Tax Act 1956 and sales tax acts of various states Sales Tax 84.77 63.67 1991 – 1992 1992 - 1993 1993 - 1994 1994 - 1995 1995 – 1996 High Court Mumbai
0.45 0.45 2002 - 2003 Deputy Commissioner Appeal -II Trade Tax Dehradun
40.15 - 2004 - 2005 2006 – 2007 WBCT appellate and Revisional Board West Bengal
29.21 29.21 2008 – 2009 Sales Tax Dep Telangana
Central Sales Tax Act 1956 and sales tax acts of various states Sales Tax 0.36 0.36 2012 – 2013 Kerala Value Added Tax Appellate Tribunal Palakkad
7.68 5.57 2012 - 2013 2013 - 2014 2014 – 2015 Deputy Commissioner (Appeals) Sales Tax Uttar Pradesh
15.00 15.00 2012 – 2013 Maharashtra Sales Tax Tribunal
Central Excise Act 1944 Duty of Excise 535.62 535.62 2011 – 2012 2013 - 2014 2014 – 2015 2015 – 2016 2016 – 2017 2017 – 2018 The Commissioner Central Excise Pune
693.65 1.11 26.01 0.11 2012 – 2017 2012 – 2017 CESTAT Mumbai The Commissioner Central Excise Nagpur
Income Tax Act 1961 Income Tax 141.19 141.19 2017-18 Commissioner of Income Tax Appeals Pune - 11.

viii. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions or banks.

ix. As per the records of the Company and according to the information and explanationsprovided to us the Company has not raised any money by way of initial public offerfurther public offer debt instruments or term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

x. To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees was noticed or reported during the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion the Company is not a Nidhi Company. Accordingly paragraph 3(xii)of the Order is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableAccounting Standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company no preferential allotment or private placementof shares or fully or partly convertible debentures has been made by the Company duringthe year. Therefore paragraph 3(xiv) of the Order is not applicable.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him as specified under section 192of the Act. Therefore paragraph 3(xv) of the Order is not applicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and therefore the provisions of paragraph 3(xvi) of the Order isnot applicable.

For B. D. Jokhakar & Co.
Chartered Accountants
Firm Registration No: 104345W
Raman Jokhakar
Partner
Mumbai Membership No.103241
May 10 2021 UDIN: 21103241AAAAFR4063
Address: 8 Ambalal Doshi Marg
Fort Mumbai 400001

ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of Independent Auditor’s Report on financial statements ofeven date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Venky’s(India) Limited ("the Company") as of March 31 2021 in conjunction with ouraudit of the 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor’s 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 financial statements whether due to fraud or error.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company’s assets that could havea material effect on the financial 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

69 override of controls material misstatements due to error or fraud may occur and notbe detected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For B. D. Jokhakar & Co.
Chartered Accountants
Firm Registration No: 104345W
Raman Jokhakar
Partner
Mumbai Membership No.103241
May 10 2021 UDIN: 21103241AAAAFR4063
Address: 8 Ambalal Doshi Marg
Fort Mumbai 400001

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