SRINIVASA HATCHERIES LIMITED - moneycontrol.com · 2008-2009 FD 27.08.2009 02.10.2016 Members who...

SRINIVSRINIVSRINIVSRINIVSRINIVAAAAASA HASA HASA HASA HASA HATTTTTCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITED

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BOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTORSORSORSORSORS

Sri C. Jagapati Rao : Executive ChairmanSri C. Suresh Rayudu : Vice-Chairman & Managing DirectorDr. K. Somi Reddy : Joint Managing DirectorSri K. Ashok Reddy : Whole - Time DirectorDr. T. Krishna Reddy : DirectorSmt E. Padmaja : DirectorSmt P. Usha Lakshmi : DirectorSri. Srikant Jilla : DirectorDr. Y. Sanjay Kumar : DirectorDr. A. Sreenivasa Rao : DirectorSri Vivek Bhargava : DirectorSri Ch. Yugendhar Rao : Director

AUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEE

Sri.Srikant Jilla : ChairmanDr. T. Krishna Reddy : MemberSmt E. Padmaja : Member

BANKERSBANKERSBANKERSBANKERSBANKERS : ICICI Bank LimitedHDFC Bank Limited andAndhra Bank

AUDITAUDITAUDITAUDITAUDITORSORSORSORSORS : S. DAGA & COChartered Accountants403, Paigah PlazaBasheerbaghHyderabad - 500 029 (A.P.)

DGM (Corporate Affairs) &DGM (Corporate Affairs) &DGM (Corporate Affairs) &DGM (Corporate Affairs) &DGM (Corporate Affairs) & : V.K. Murali MANOHARCOMPCOMPCOMPCOMPCOMPANY SECRETANY SECRETANY SECRETANY SECRETANY SECRETARYARYARYARYARY

REGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICEREGISTERED OFFICE : 'SRINIVASA HOUSE'Plot No. 1028, Road No. 45,Jubilee Hills, Hyderabad - 500 033 (A.P.)

ADMINISTRAADMINISTRAADMINISTRAADMINISTRAADMINISTRATIVE OFFICETIVE OFFICETIVE OFFICETIVE OFFICETIVE OFFICE : 'SRINIVASA HOUSE'Door No. 59-13-3, Ramachandranagar,Vijayawada - 520 008 (A.P.)

SHARE TRANSFER AGENTSSHARE TRANSFER AGENTSSHARE TRANSFER AGENTSSHARE TRANSFER AGENTSSHARE TRANSFER AGENTS : CIL Securities Limited214, Raghava Ratna TowersChirag Ali Lane, Abids,Hyderabad - 500 001 (A.P.)

PLEASE LOOK

FOR ECS /

NECS DETAILS

INSIDE

IN PAGE

NOs. 51&52

THIRTY SECOND ANNUAL REPORT 2009-2010THIRTY SECOND ANNUAL REPORT 2009-2010THIRTY SECOND ANNUAL REPORT 2009-2010THIRTY SECOND ANNUAL REPORT 2009-2010THIRTY SECOND ANNUAL REPORT 2009-2010

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NONONONONOTICETICETICETICETICE

NOTICE IS HEREBY GIVEN THAT THE THIRTY SECONDANNUAL GENERAL MEETING OF THE MEMBERS OF THECOMPANY WILL BE HELD AT COUNTRY CLCOUNTRY CLCOUNTRY CLCOUNTRY CLCOUNTRY CLUBUBUBUBUB, 6-3-1219,, 6-3-1219,, 6-3-1219,, 6-3-1219,, 6-3-1219,BEGUMPETBEGUMPETBEGUMPETBEGUMPETBEGUMPET, HYDERABAD, HYDERABAD, HYDERABAD, HYDERABAD, HYDERABAD-500 016, -500 016, -500 016, -500 016, -500 016, AT 3.30 P.M ONSATURDAY, THE 17TH DAY OF JULY, 2010 TO TRANSACTTHE FOLLOWING BUSINESS:

ORDINARY BUSINESSORDINARY BUSINESSORDINARY BUSINESSORDINARY BUSINESSORDINARY BUSINESS:::::

1. To receive, consider and adopt the BalanceSheet as at 31st March, 2010 and the Profit &Loss Account for the year ended as on thatdate, together with the Auditor's Report andDirectors' Report thereon.

2. To declare dividend for the year 2009-10.

3. To appoint a Director in place of Sri.C.SureshRayudu, who retires by rotation and beingeligible offers himself for re-appointment.

4. To appoint a Director in place of Dr.T.KrishnaReddy, who retires by rotation and being eligibleoffers himself for re-appointment.

5. To appoint a Director in place of Dr.Y.SanjayKumar, who retires by rotation and being eligibleoffers himself for re-appointment.

6. To appoint Statutory Auditors and to fix theirremuneration and for this purpose to considerand, if thought fit, to pass with or withoutmodification(s), the following resolution as anOrdinary Resolution :

"RESOLVED THAT M/s. S Daga & Company,Chartered Accountants, Hyderabad be and arehereby re-appointed as the Auditors of theCompany to hold office from the conclusion

of Thirty Second Annual General Meeting tillthe conclusion of Thirty Third Annual GeneralMeeting at a remuneration as may be fixed bythe Board of Directors of the Company".

SPECIAL BUSINESS :SPECIAL BUSINESS :SPECIAL BUSINESS :SPECIAL BUSINESS :SPECIAL BUSINESS :

7.7.7.7.7. TTTTTo consider ando consider ando consider ando consider ando consider and, if thought fit, to pass with or, if thought fit, to pass with or, if thought fit, to pass with or, if thought fit, to pass with or, if thought fit, to pass with orwithout modifications, the following resolutionwithout modifications, the following resolutionwithout modifications, the following resolutionwithout modifications, the following resolutionwithout modifications, the following resolutionas an Ordinary Ras an Ordinary Ras an Ordinary Ras an Ordinary Ras an Ordinary Resolution:esolution:esolution:esolution:esolution:

"RESOL"RESOL"RESOL"RESOL"RESOLVED THAVED THAVED THAVED THAVED THATTTTT in supersession of the earlierResolution passed and pursuant to Section293(1)(d) and all other applicable provisions, ifany, of the Companies Act, 1956, as amendedfrom time to time, the consent of the Companybe and is hereby accorded to the Board ofDirectors of the Company for borrowing fromtime to time any such sum or sums of monieswhich, together with the monies alreadyborrowed by the Company (apart fromtemporary loans obtained or to be obtainedfrom the Company's bankers in the ordinarycourse of business), may exceed theaggregate of the paid-up capital of theCompany and its free reserves, that is to say,reserves not set apart for any specific purpose,provided that the total amount upto which themonies so borrowed by the Board shall not atany time exceed the limit of Rs.50 crores(Rupees Fifty Crores Only)."

By Order of the Board

Place : Hyderabad VVVVV. K. K. K. K. K. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHARDate : 27.05.2010 DGM (Corporate Affairs) &

Company Secretary


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NONONONONOTESTESTESTESTES:::::

1. A MEMBER ENTITLED TO ATTEND AND VOTE ATTHE MEETING IS ENTITLED TO APPOINT A PROXYTO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF. THE PROXY, SO APPOINTED, NEED NOTBE A MEMBER OF THE COMPANY. THE PROXY INORDER TO BE EFFECTIVE MUST BE DEPOSITED ATTHE REGISTERED OFFICE OF THE COMPANY NOTLESS THAN 48 HOURS BEFORE THECOMMENCEMENT OF THE MEETING.

2. The Explanatory Statement pursuant to Section173 (2) of the Companies Act, 1956 in respectof the Special Business as above is annexedhereunder and the same forms part of thisnotice convening the Annual General Meeting.

3. The Register of Members will remain closedfrom 15.07.2010 to 17.07.2010 (both daysinclusive). The transfer books of the Companywill also remain closed during the aforesaidperiod.

4. ECS / NECS FECS / NECS FECS / NECS FECS / NECS FECS / NECS Facility:acility:acility:acility:acility:

Shareholders holding shares in Physical FShareholders holding shares in Physical FShareholders holding shares in Physical FShareholders holding shares in Physical FShareholders holding shares in Physical Formormormormormand desirous of avaling the facility areand desirous of avaling the facility areand desirous of avaling the facility areand desirous of avaling the facility areand desirous of avaling the facility arerequested to complete ECS / NECS formrequested to complete ECS / NECS formrequested to complete ECS / NECS formrequested to complete ECS / NECS formrequested to complete ECS / NECS formattached to this Annual Rattached to this Annual Rattached to this Annual Rattached to this Annual Rattached to this Annual Report and forwardeport and forwardeport and forwardeport and forwardeport and forwardthe same to the Company's Rthe same to the Company's Rthe same to the Company's Rthe same to the Company's Rthe same to the Company's Registrars andegistrars andegistrars andegistrars andegistrars andShare TShare TShare TShare TShare Transfer Agent.ransfer Agent.ransfer Agent.ransfer Agent.ransfer Agent.

Shareholders holding shares inShareholders holding shares inShareholders holding shares inShareholders holding shares inShareholders holding shares inDematerial ised FDematerial ised FDematerial ised FDematerial ised FDematerial ised Form are requested toorm are requested toorm are requested toorm are requested toorm are requested toprovidprovidprovidprovidprovide the Bank Details to their respectivee the Bank Details to their respectivee the Bank Details to their respectivee the Bank Details to their respectivee the Bank Details to their respectiveDepository PDepository PDepository PDepository PDepository Participants for incorporation inarticipants for incorporation inarticipants for incorporation inarticipants for incorporation inarticipants for incorporation intheir records. The Depository in turn wouldtheir records. The Depository in turn wouldtheir records. The Depository in turn wouldtheir records. The Depository in turn wouldtheir records. The Depository in turn wouldforward the required information to theforward the required information to theforward the required information to theforward the required information to theforward the required information to theCompany.Company.Company.Company.Company.

5. Members desiring to seek any information/clarifications on the annual accounts arerequested to write to the Company at least 7(seven) days before the Annual GeneralMeeting to enable the management to keepthe information ready.

6. Shareholders / Proxies are requested to bringtheir copies of Annual Report and theattendance slip duly filled in for attending themeeting. Copies of Annual Reports will not beprovided at the meeting.

7. Pursuant to Section 205A of the CompaniesAct, 1956, as amended, the unclaimeddividend upto the financial year 2001-2002 wastransferred to the Investor Education &Protection Fund (IEPF) of the CentralGovernment. The Members may kindly notethat the dividend remaining unclaimed for a

period of seven years shall be transferred bythe Company to the Investor Education &Protection Fund established by the CentralGovernment and no claim will be entertainedby the Central Government after such transfer.The Members who have not encashed theirdividends may kindly note that the dividend forthe following years will be transferred to IEPF onthe dates mentioned against each year:

Dividend Interim Date of Due Datefor the Dividend Declaration Foryear (ID)/Final Transfer

Dividend(FD) To IEPF

2002-2003 FD 31.07.2003 05.09.2010

2003-2004 FD 18.08.2004 24.09.2011

2004-2005 FD 27.08.2005 03.10.2012

2005-2006 FD 16.09.2006 22.10.2013

2006-2007 ID 16.03.2007 22.04.2014

2007-2008 FD 31.07.2008 05.09.2015

2008-2009 FD 27.08.2009 02.10.2016

Members who have not encashed theirdividend warrants pertaining to these years mayhave their warrants revalidated by sending themto the Registered Office of the Companyimmediately and in case the members lost theirDividend Warrants, they are requested to writeto the Company informing the same andrequest for arranging Duplicate DividendWarrants.

8. The Company's equity shares are listed onBombay Stock Exchange. The Company haspromptly paid annual listing fees to the StockExchange for the year 2010-11.

9. Members who hold shares in demat form arerequested to write their Client ID and DP IDNos. and those who hold shares in physicalform are requested to write their Folio numberin the attendance slip before attending themeeting.

10. Corporate Members intending to send theirAuthorised Representatives to attend themeeting are requested to send a duly certifiedcopy of the Board Resolution authorising theirrepresentatives to attend and vote at theAnnual General Meeting.

11. The equity shares of the company have beenactivated for dematerialisation with NSDL and


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CDSL w.e.f 26.11.2002 and 05.10.2002respectively. The International SecuritiesIdentification Number (ISIN) allotted to theCompany's equity shares is INE312E01013.Trading in the equity shares of the Companythrough Stock Exchanges was madecompulsory in dematerialised form.Shareholders are advised to open demataccounts with any of the Depository Participants(DPs) of their choice registered with NSDL andCDSL and convert their physical holding intoelectronic holding.

12. Members holding shares in physical form arerequested to notify immediately any changein their address along with their Folio No. to theRegistrars and Share Transfer Agents of theCompany M/s. CIL Securities Limited, RaghavaRatna Towers, Chirag Ali Lane, Abids Hyderabad- 500 001 (A.P.) or to the Company's Registeredoffice at 'SRINIVASA HOUSE' Plot No. 1028, RoadNo. 45, Jubilee Hills, Hyderabad - 500 033. Incase the shares are held in dematerialisedform, the information should be passed on totheir respective Depository Participants withoutany delay.

13. RRRRRe-appointment of Directors:e-appointment of Directors:e-appointment of Directors:e-appointment of Directors:e-appointment of Directors:At the ensuing Annual General Meeting,Sri.C.Suresh Rayudu, Dr.T.Krishna Reddy andDr.Y.Sanjay Kumar, Directors retire by rotationand being eligible offer themselves for re-appointment. The information pertaining to

these Directors to be provided in terms ofClause 49 of the Listing Agreement with theStock Exchange is furnished in CorporateGovernance Report.

14. Physical Share TPhysical Share TPhysical Share TPhysical Share TPhysical Share Transfers - Pransfers - Pransfers - Pransfers - Pransfers - PAN CopyAN CopyAN CopyAN CopyAN Copy

Investors are requested to note that in termsInvestors are requested to note that in termsInvestors are requested to note that in termsInvestors are requested to note that in termsInvestors are requested to note that in termsof SEBI Di rect ives, in case of pr ivateof SEBI Di rect ives, in case of pr ivateof SEBI Di rect ives, in case of pr ivateof SEBI Di rect ives, in case of pr ivateof SEBI Di rect ives, in case of pr ivatetransactions involving transfer of shares intransactions involving transfer of shares intransactions involving transfer of shares intransactions involving transfer of shares intransactions involving transfer of shares inphysical form of listed companies, it shallphysical form of listed companies, it shallphysical form of listed companies, it shallphysical form of listed companies, it shallphysical form of listed companies, it shallbe mandatory for the transferee(s) to furnishbe mandatory for the transferee(s) to furnishbe mandatory for the transferee(s) to furnishbe mandatory for the transferee(s) to furnishbe mandatory for the transferee(s) to furnishcopy of self-attested Pcopy of self-attested Pcopy of self-attested Pcopy of self-attested Pcopy of self-attested PAN Card to theAN Card to theAN Card to theAN Card to theAN Card to theCompany/RTCompany/RTCompany/RTCompany/RTCompany/RTAs for registration of such transferAs for registration of such transferAs for registration of such transferAs for registration of such transferAs for registration of such transferof shares. Without Pof shares. Without Pof shares. Without Pof shares. Without Pof shares. Without PAN CardAN CardAN CardAN CardAN Card, the transfer of, the transfer of, the transfer of, the transfer of, the transfer ofshares shall not be entertainedshares shall not be entertainedshares shall not be entertainedshares shall not be entertainedshares shall not be entertained.....

15. PPPPPostal Ballot Rostal Ballot Rostal Ballot Rostal Ballot Rostal Ballot Resolutionsesolutionsesolutionsesolutionsesolutions

The members may be aware that your approvalhas been obtained through postal ballot forincrease in the authorised share capital of theCompany from Rs.5 crores to Rs.10 crores byway of Special Resolution and further for issueof bonus shares in the ratio of 1:1 by way ofOrdinary Resolution and both the resolutionshave been passed with 99.996% majority. Theresults of the same have been declared bythe Executive Chairman on12.05.2010.Subsequently the Board of Directorshave allotted the shares on 24.05.2010 andthe same have been listed on BSE eligible fortrading with effect from 27.05.2010. Themembers may kindly make note of the same.

EXPLANAEXPLANAEXPLANAEXPLANAEXPLANATTTTTORY STORY STORY STORY STORY STAAAAATEMENT PURSUANT TTEMENT PURSUANT TTEMENT PURSUANT TTEMENT PURSUANT TTEMENT PURSUANT TO SECTION 173(2) OF THE COMPO SECTION 173(2) OF THE COMPO SECTION 173(2) OF THE COMPO SECTION 173(2) OF THE COMPO SECTION 173(2) OF THE COMPANIES ACTANIES ACTANIES ACTANIES ACTANIES ACT, 1956, 1956, 1956, 1956, 1956WHICH FORMS PWHICH FORMS PWHICH FORMS PWHICH FORMS PWHICH FORMS PART OF THE NOART OF THE NOART OF THE NOART OF THE NOART OF THE NOTICE CONVENING THE ANNUAL GENERAL MEETINGTICE CONVENING THE ANNUAL GENERAL MEETINGTICE CONVENING THE ANNUAL GENERAL MEETINGTICE CONVENING THE ANNUAL GENERAL MEETINGTICE CONVENING THE ANNUAL GENERAL MEETING:::::

In pursuance of Section 293(1)(d) of theCompanies Act, 1956, it is required to obtain theapproval of shareholders to borrow monies, apartfrom temporary loans obtained from Company'sBankers in the ordinary course of business, in excessof the paid-up capital and free reserves. TheCompany has earlier taken the approval from theshareholders to borrow upto an aggregate amountof Rs.20 crores.

In order to meet any capital expenditurerequirements or any other requirement of funds forthe expansion purposes that may be planned bythe Management, it is proposed to have theauthorisation by way of shareholders approval toborrow in excess of the paid-up capital and free

reserves of the Company subject however to anamount not exceeding Rs.50 crores.

None of the Directors is interested or concerned inthe resolution.The Directors commend the resolution to be passedas an ordinary resolution.

By Order of the Board

Place : Hyderabad VVVVV. K. K. K. K. K. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHARDate : 27.05.2010 DGM (Corporate Affairs) &

Company Secretary


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DIRECTDIRECTDIRECTDIRECTDIRECTORS' REPORTORS' REPORTORS' REPORTORS' REPORTORS' REPORT

ToThe Members

Your Directors have pleasure in presenting the 32ndAnnual Report of the Company together with theAudited Financial Accounts for the year ended 31stMarch, 2010.

FINANCIAL RESULFINANCIAL RESULFINANCIAL RESULFINANCIAL RESULFINANCIAL RESULTSTSTSTSTS(Rupees in Lakhs)

PPPPPARTICULARSARTICULARSARTICULARSARTICULARSARTICULARS 2009-102009-102009-102009-102009-10 2008-09

PPPPProfirofirofirofirofit Before Tt Before Tt Before Tt Before Tt Before Taxaxaxaxax 1877.691877.691877.691877.691877.69 153.77(Add)/L(Add)/L(Add)/L(Add)/L(Add)/Less:ess:ess:ess:ess: Provision for Tax

For the year 687.40687.40687.40687.40687.40 99.03Deferred Tax -(Release) (46.84)(46.84)(46.84)(46.84)(46.84) (44.07)Fringe Benefit Tax ––––– 7.00

PPPPProfit After Trofit After Trofit After Trofit After Trofit After Taxaxaxaxax 1237.131237.131237.131237.131237.13 91.81(Add):

Provision for tax forearlier years (1.94)(1.94)(1.94)(1.94)(1.94) (17.84)Balance of Profitbrought forward (1495.10)495.10)495.10)495.10)495.10) (1533.08)

PPPPProfit Arofit Arofit Arofit Arofit Available forvailable forvailable forvailable forvailable forAppropriationAppropriationAppropriationAppropriationAppropriation 2734.172734.172734.172734.172734.17 1642.73APPROPRIAAPPROPRIAAPPROPRIAAPPROPRIAAPPROPRIATIONSTIONSTIONSTIONSTIONS:::::

a) Proposed Dividend 242.39242.39242.39242.39242.39 96.96b) Corporate

Dividend Tax 40.2640.2640.2640.2640.26 16.48c) Transfer to General

Reserve 123.72123.72123.72123.72123.72 9.20d) Transfer to

ContingencyReserve 50.0050.0050.0050.0050.00 25.00

e) Profit CarriedForward 2277.802277.802277.802277.802277.80 1495.09

2734.172734.172734.172734.172734.17 1642.73

OPERAOPERAOPERAOPERAOPERATIONS & OUTLTIONS & OUTLTIONS & OUTLTIONS & OUTLTIONS & OUTLOOK FOR POULOOK FOR POULOOK FOR POULOOK FOR POULOOK FOR POULTRY INDUSTRYTRY INDUSTRYTRY INDUSTRYTRY INDUSTRYTRY INDUSTRY

It is very heartening to mention that the year 2009-10 is a very good year in the annals of poultryindustry and also for your Company. Theperformance of the Company, in the wake ofprevailing positive trend in the poultry markets, hasbeen spectacular which has resulted in significantgrowth both in top-line and bottom-line. Thecontributory factors for this splendid performanceare majorly higher price realization for poultryproducts and to some extent on account of highersales volumes. However, the performance of theCompany for the year under review is not

comparable with that of the previous year since inthe previous year, the poultry industry was in turmoilon account of exorbitant feed prices and bird fluscare.The near outlook for the poultry industry is expectedto be good in as much as the positive trend stillcontinues in the early part of the current financialyear and which is likely to continue in the rest of thefinancial year too.

BONUS ISSUEBONUS ISSUEBONUS ISSUEBONUS ISSUEBONUS ISSUE:::::The Directors are happy to inform you that bonusshares were allotted on 24.05.2010 to theshareholders in the ratio of 1:1, by capitalizing anamount of Rs.4,84,77,500/- from Share PremiumAccount, after obtaining the shareholders approvalthrough postal ballot. The paid-up capital after thebonus issue stands at Rs. 9,69,55,000/-The authorized share capital of the Company hasbeen increased from Rs.5,00,00,000/- toRs.10,00,00,000/- to accommodate the additionalshares arising out of the bonus issue as above. Theshareholders approval for increase in authorized sharecapital has also been obtained through postal ballot.The Company has been given the Trading Approvalfor the bonus shares by Bombay Stock ExchangeLimited w.e.f.27.05.2010.

DIVIDENDDIVIDENDDIVIDENDDIVIDENDDIVIDENDYour Directors recommend a dividend of Rs.2.50/-per equity share (@ 25%) of the face value ofRs.10/- each for the year 2009-10 which becomespayable on the expanded capital as a result ofbonus issue after obtaining the approval from theshareholders at the ensuing 32nd Annual GeneralMeeting.

DEMADEMADEMADEMADEMATERIALISATERIALISATERIALISATERIALISATERIALISATION OF SHARESTION OF SHARESTION OF SHARESTION OF SHARESTION OF SHARES:::::Of the total shares, 21.34% shares have not beendematerialized as of now. Shareholders holdingshares in physical form are once again advised todematerialize their shares to avoid the risk associatedwith the physical holding of share certificates andalso for facilitating easy liquidity for shares.

TRANSFER TTRANSFER TTRANSFER TTRANSFER TTRANSFER TO RESERVESO RESERVESO RESERVESO RESERVESO RESERVESThe Company proposes to transfer Rs.123.72 lakhsto the General Reserve out of the amount availablefor appropriations. Further an amount of Rs. 2277.80lakhs is proposed to be retained in the Profit & LossAccount.

MANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALYSIS REPORTYSIS REPORTYSIS REPORTYSIS REPORTYSIS REPORTA separate Management Discussion and AnalysisReport is enclosed as Annexure-1 to the Directors'Report.


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CORPORACORPORACORPORACORPORACORPORATE GOVERNANCE CODETE GOVERNANCE CODETE GOVERNANCE CODETE GOVERNANCE CODETE GOVERNANCE CODEAs per the requirements of Clause 49 of the ListingAgreement a separate report on CorporateGovernance along with the certificate issued bythe Company's Statutory Auditors M/s. S.Daga & Co.,Chartered Accountants thereupon is given asAnnexure-2 to the Directors Report.

DIRECTDIRECTDIRECTDIRECTDIRECTORSORSORSORSORSSri.C.Suresh Rayudu, Dr.T.Krishna Reddy andDr.Y.Sanjay Kumar retire by rotation at theforthcoming Annual General Meeting and beingeligible, offer themselves for re-appointment.AUDITAUDITAUDITAUDITAUDITORSORSORSORSORSM/s. S. Daga & Co, Chartered Accountants,Hyderabad, the Company's Statutory Auditors holdoffice, in accordance with the provisions of theCompanies Act, 1956, upto the conclusion of theforthcoming Annual General Meeting and areeligible for reappointment.

INSURANCEINSURANCEINSURANCEINSURANCEINSURANCEThe assets of the Company are adequately insuredagainst all types of risks. However, in order to meetany unforeseen risk in respect of the stock of poultrybirds, the Company has created a ContingencyReserve in lieu of insurance, in line with the decisiontaken by the management earlier.

DEPOSITSDEPOSITSDEPOSITSDEPOSITSDEPOSITSYour Company has not invited or accepted anypublic deposits during the year 2009-10 and assuch no amount on account of principal or intereston deposits was outstanding on the date of theBalance Sheet.

PPPPPARTICULARS OF CONSERVARTICULARS OF CONSERVARTICULARS OF CONSERVARTICULARS OF CONSERVARTICULARS OF CONSERVAAAAATION OF ENERGYTION OF ENERGYTION OF ENERGYTION OF ENERGYTION OF ENERGY,,,,,TECHNOLTECHNOLTECHNOLTECHNOLTECHNOLOGY ABSORPTION AND FOREIGNOGY ABSORPTION AND FOREIGNOGY ABSORPTION AND FOREIGNOGY ABSORPTION AND FOREIGNOGY ABSORPTION AND FOREIGNEXEXEXEXEXCHANGE EARNINGS / OUTGOCHANGE EARNINGS / OUTGOCHANGE EARNINGS / OUTGOCHANGE EARNINGS / OUTGOCHANGE EARNINGS / OUTGOInformation required to be furnished under theCompanies (Disclosures of particulars in the Reportof Board of Directors) Rules, 1988, is furnished below:

AAAAA..... CONSERVCONSERVCONSERVCONSERVCONSERVAAAAATION OF ENERGYTION OF ENERGYTION OF ENERGYTION OF ENERGYTION OF ENERGYThe operations of your company involve lowenergy consumption. Adequate measureshave, however, been taken to conserve theenergy wherever practicable.

B. TECHNOLOGY ABSORPTION : NIL

CCCCC..... (a) FOREIGN EXCHANGEEARNINGS : NIL

(b) FOREIGN EXCHANGEOUTGO : Rs. 15.76 lakhs

PPPPPARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLARTICULARS OF EMPLOYEESOYEESOYEESOYEESOYEESAs per the provisions of Section 217(2A) of theCompanies Act, 1956 read with the Companies(Particulars of Employees) Rules, 1975 as amendedfrom time to time, there were no particulars to befurnished since no employee of your company isdrawing remuneration in excess of the prescribedlimits as laid down in the rules.

DIRECTDIRECTDIRECTDIRECTDIRECTORS' RESPONSIBILITY STORS' RESPONSIBILITY STORS' RESPONSIBILITY STORS' RESPONSIBILITY STORS' RESPONSIBILITY STAAAAATEMENTTEMENTTEMENTTEMENTTEMENTPursuant to Section 217(2AA) of the Companies Act,1956 as amended by the Companies (Amendment)Act, 2000, the Directors confirm that:

1. In preparation of the Annual Accounts for theyear ended 31.03.2010 the applicableaccounting standards have been followed.

2. Appropriate accounting policies have beenapplied consistently. Judgement and estimates,which are reasonable and prudent, have beenmade so far as to give a true and fair view ofthe state of affairs of the Company as at theend of the Financial Year and of the profit ofthe Company for the period.

3. Proper and sufficient care has been taken forthe maintenance of adequate accountingrecords in accordance with the provisions ofthe Companies Act, 1956 for safeguarding theassets of your company and preventing anddetecting fraud and other irregularities.

4. The Annual Accounts have been prepared ona going concern basis.

ACKNOWLEDGEMENTSACKNOWLEDGEMENTSACKNOWLEDGEMENTSACKNOWLEDGEMENTSACKNOWLEDGEMENTS

Your Directors place on record their appreciation ofthe continued assistance and co-operationextended to your company by the Company'sBankers viz. ICICI Bank Limited, HDFC Bank Limitedand Andhra Bank, Government & Semi GovernmentAuthorities, Venkateshwara Hatcheries Group,National Egg Coordination Committee (NECC), AllIndia Poultry Development and Services Pvt. Ltd.,Andhra Pradesh Poultry Federation (APPF) and BharatEgg Producers' Association (BEPA), shareholders,customers, dedicated employees, Share TransferAgents and Auditors of the Company and all otherswho continue to assist your Company.

for and on Behalf of the Board of Directors

Place : Hyderabad CCCCC.JAGAP.JAGAP.JAGAP.JAGAP.JAGAPAAAAATI RAOTI RAOTI RAOTI RAOTI RAODate : 27.05.2010 Executive Chairman


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MANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALMANAGEMENT DISCUSSION AND ANALYSISYSISYSISYSISYSISREPORT 2009-10REPORT 2009-10REPORT 2009-10REPORT 2009-10REPORT 2009-10

POULPOULPOULPOULPOULTRY INDUSTRY - STRUCTURE AND DEVELTRY INDUSTRY - STRUCTURE AND DEVELTRY INDUSTRY - STRUCTURE AND DEVELTRY INDUSTRY - STRUCTURE AND DEVELTRY INDUSTRY - STRUCTURE AND DEVELOPMENTOPMENTOPMENTOPMENTOPMENT:::::

India is one among the prominent players in the worldmarket for poultry products. The Indian Poultry Industrycontinues to occupy its pre-eminent position in theIndian economy. Our country stands second in theworld in terms of poultry production.

Poultry industry including breeders of broilers andlayers and commercial broiler and layer farms, hasperformed well in the year 2009-10.

The fortunes of the poultry industry are intricately linkedto the weather conditions comprising timely andadequate rain fall, a sine qua non for a good harvestof the main ingredients i.e. Maize, Soya and Oil Seeds.These are essential for poultry feed production andhence are a vital determinant in the cost matrix ofpoultry. The general levels of prosperity and over allgrowth in the economy are also important for theindustry, since the demand for the poultry productsis a function of the purchasing power of thepopulation. The industry has been able to successfullymanage the threat emanating from epidemics suchas Bird Flu. It is hoped that a viable preventivemedicine to such diseases would soon become areality.

OPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIES:::::

The poultry industry in India is fortunately insulated fromvagaries, witnessed in the other sectors of theeconomy and is poised for healthy growth in theensuing period. This is reflected in the increase in percapita consumption of poultry products. Notwithstanding this, there lies a vast untapped marketpotential especially in the rural India which needs tobe tapped. The Industry is quite resilient and is ableto successfully take on any adverse conditions eitherat the macro or at the micro level and it is a hallmark of its strength.

Feed prices are likely to remain stable in financialyear 2010-2011 as Maize and Soya productions aregood. The export of Maize is negligible during thecurrent year. Export of Soybean Meal is reduced toabout 40% of last year quantities. Therefore Maizeand Soybean Meal prices are likely to remain stable

and at reasonable prices during the current financialyear. Egg prices and live bird prices have been stableand reasonably good during the financial year 2009-10 and the situation is likely to continue in the presentfinancial year also.

RISKSRISKSRISKSRISKSRISKS, CONCERNS & THREA, CONCERNS & THREA, CONCERNS & THREA, CONCERNS & THREA, CONCERNS & THREATS FOR POULTS FOR POULTS FOR POULTS FOR POULTS FOR POULTRY INDUSTRYTRY INDUSTRYTRY INDUSTRYTRY INDUSTRYTRY INDUSTRY:::::

The main area of concern for the poultry industry isthe rather incessant price increase in the cost ofprincipal feed ingredients viz., maize, soya meal andde oiled cakes during the year. This is coupled withthe inflationary trends of other inputs which leads toconsiderable cost push pressures against the staticlevels of selling prices of layer chicks.

SEGMENT WISE PERFORMANCESEGMENT WISE PERFORMANCESEGMENT WISE PERFORMANCESEGMENT WISE PERFORMANCESEGMENT WISE PERFORMANCE:::::

The Company has been engaged in the productionof One Day Old Commercial Layer and Broiler Chicksand the entire operations comes under one segmentonly i.e., poultry breeding. Due to excellent geneticpackage provided by Venkateshwara HatcheriesGroup and the high standards of the Company inmaintaining the quality both in layer and broiler chicksproduced, the Company is expected to continue todo well in the market.

OUTLOUTLOUTLOUTLOUTLOOKOOKOOKOOKOOK:::::

The poultry industry in general has witnessed healthyturn around during the year leading to consequentincrease in the volumes of layer eggs and broilerchicken sale. The Company too had the benefits ofaccrued advance on this count leading to volumetricincrease in sales of layer and broiler divisions. Thebroilers in particular have done exceptionally wellduring the year helped by a strong and growingmarket for chicken.

The much awaited upward price revision for layerchicks will take effect from April, 2010. The revisedprices are expected to correct the imbalance thathas crept into the cost price equation.

Due to the increase in income levels and consequentchange in food habits, more and more chicken andeggs will be consumed. Younger generation inparticular is likely to eat more of eggs and chickenmeat. This tendency is good for the poultry farmersin the short term as well as long term.

Annexure – 1Annexure – 1Annexure – 1Annexure – 1Annexure – 1


8

With the forecast for current monsoon being positiveresulting in good prospects of growing maize andsoya, the supply of the same is expected to easewhich is a relief to the poultry industry.

INTERNAL CONTROL SYSTEMS :INTERNAL CONTROL SYSTEMS :INTERNAL CONTROL SYSTEMS :INTERNAL CONTROL SYSTEMS :INTERNAL CONTROL SYSTEMS :

The Company has established reasonably soundsystem of checks and controls in all operational areasand at all levels - material procurement, production,marketing and distribution, finance, administrationand personnel departments. Internal controls havebeen evolved in line with the size of the operationsand organisational requirements are adequate toprotect the enterprise resources. The Companycontinues its drive to improve on the information andcontrol systems. The Audit Committee reviews theinternal audit reports and the adequacy of internalcontrols from time to time.

DISCUSSION ON FINANCIAL PERFORMANCE WITHDISCUSSION ON FINANCIAL PERFORMANCE WITHDISCUSSION ON FINANCIAL PERFORMANCE WITHDISCUSSION ON FINANCIAL PERFORMANCE WITHDISCUSSION ON FINANCIAL PERFORMANCE WITHRESPECT TRESPECT TRESPECT TRESPECT TRESPECT TO OPERAO OPERAO OPERAO OPERAO OPERATIONAL PERFORMANCE :TIONAL PERFORMANCE :TIONAL PERFORMANCE :TIONAL PERFORMANCE :TIONAL PERFORMANCE :

The Company has registered a turnover of Rs.124.97crores as compared to Rs 83.97 crores in the previousyear. The net profit during the year, after provision fortax amounts to Rs.12.37 crores as compared to thenet profit of Rs.0.92 crores during the previous year.

MAMAMAMAMATERIAL DEVELTERIAL DEVELTERIAL DEVELTERIAL DEVELTERIAL DEVELOPMENTS IN HUMAN RESOURCES /OPMENTS IN HUMAN RESOURCES /OPMENTS IN HUMAN RESOURCES /OPMENTS IN HUMAN RESOURCES /OPMENTS IN HUMAN RESOURCES /INDUSTRIAL RELAINDUSTRIAL RELAINDUSTRIAL RELAINDUSTRIAL RELAINDUSTRIAL RELATIONS FRONT :TIONS FRONT :TIONS FRONT :TIONS FRONT :TIONS FRONT :

The Company has been maintaining cordial relationswith all its employees since inception. The Companystrives to provide congenial atmosphere to theemployees and sets high standards of efficiency andperformance. The Company has 513 employees ason 31.03.2010.


9

REPORT ON CORPORAREPORT ON CORPORAREPORT ON CORPORAREPORT ON CORPORAREPORT ON CORPORATE GOVERNANCETE GOVERNANCETE GOVERNANCETE GOVERNANCETE GOVERNANCE(P(P(P(P(Pursuant to Clause 49 of the Listing Agreement executed with Bombay Stock Exchange)ursuant to Clause 49 of the Listing Agreement executed with Bombay Stock Exchange)ursuant to Clause 49 of the Listing Agreement executed with Bombay Stock Exchange)ursuant to Clause 49 of the Listing Agreement executed with Bombay Stock Exchange)ursuant to Clause 49 of the Listing Agreement executed with Bombay Stock Exchange)

The Company has reviewed its governance practices so as to implement the provisions of the RevisedClause-49 of the Listing Agreement as amended by the Stock Exchanges on the direction of Securities andExchange Board of India (SEBI). The report on compliance of Corporate Governance specified in RevisedClause-49 is presented hereunder:

1.1.1.1.1. COMPCOMPCOMPCOMPCOMPANY'S PHILANY'S PHILANY'S PHILANY'S PHILANY'S PHILOSOPHY ON CODE OF GOVERNANCEOSOPHY ON CODE OF GOVERNANCEOSOPHY ON CODE OF GOVERNANCEOSOPHY ON CODE OF GOVERNANCEOSOPHY ON CODE OF GOVERNANCE

The Company's philosophy on Corporate Governance is concerned with how the Company is run andthe manner in which the Board of Directors discharges its mission and responsibilities to ensure propermanagement with accountability in the best interests of shareholders and other stakeholders. In addition,the issue of transparency and disclosure of information about the affairs of the Company assumesgreater importance.

2.2.2.2.2. BOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTBOARD OF DIRECTORSORSORSORSORS

(i)(i)(i)(i)(i) Composition of the Board and Category of Directors:Composition of the Board and Category of Directors:Composition of the Board and Category of Directors:Composition of the Board and Category of Directors:Composition of the Board and Category of Directors:

As on 27.05.2010, the Board consisted of twelve members. The Composition of and the categoryof Directors on the Board of the Company are as under:

Category Category Category Category Category Details of DirectorDetails of DirectorDetails of DirectorDetails of DirectorDetails of Director

Promoter Directors 1. Sri C. Jagapati Rao, Executive Chairman (Executive)2. Sri C. Suresh Rayudu, Vice-Chairman & Managing Director (Executive)3. Dr. K. Somi Reddy, Joint Managing Director (Executive)4. Sri K. Ashok Reddy, Whole-Time Director (Executive)5. Smt. E. Padmaja, Director (Non - Executive)6. Smt. P. Usha Lakshmi, Director (Non - Executive)

Independent 7. Dr. T. Krishna Reddy, DirectorNon-Executive 8. Sri.Srikant Jilla, DirectorDirectors 9. Dr. Y. Sanjay Kumar, Director

10. Dr. A. Sreenivasa Rao, Director11. Sri. Vivek Bhargava, Director12. Sri. C. Yugendhar Rao, Director

Conduct of Board Meetings:Conduct of Board Meetings:Conduct of Board Meetings:Conduct of Board Meetings:Conduct of Board Meetings:

The day-to-day business is conducted by the Senior Managers of the Company under the directionof the Executive Chairman and Vice-Chairman & Managing Director under the overall supervisionof the Board. The Board holds meetings periodically to review and discuss the performance of theCompany, strategies and other pertinent issues relating to the Company. The Board performs thefollowing functions in addition to the overseeing of the business and management:

Review, monitor and approve major financial and business strategies and corporate actions.

Assess critical risks faced by the Company and review options for their mitigation.

Provide counsel on the selection, evaluation, progression and compensation of the SeniorManagement.

Ensure that processes are in place for maintaining the integrity of the Company, the financialstatements, compliance with the law and relationship with customers, suppliers and otherstakeholders.

Delegation of appropriate authority to the Senior Executives of the Company for effectivemanagement of operations.

(ii & iii) Details of Attendance of each Director at the Board Meetings and the last AGM and details ofDetails of Attendance of each Director at the Board Meetings and the last AGM and details ofDetails of Attendance of each Director at the Board Meetings and the last AGM and details ofDetails of Attendance of each Director at the Board Meetings and the last AGM and details ofDetails of Attendance of each Director at the Board Meetings and the last AGM and details ofother Directorships and Committee Membership:other Directorships and Committee Membership:other Directorships and Committee Membership:other Directorships and Committee Membership:other Directorships and Committee Membership:

Annexure – 2Annexure – 2Annexure – 2Annexure – 2Annexure – 2


10

The attendance of Directors at the Board Meetings and Annual General Meeting (AGM) heldduring the year 2009-10 and the details of Directorships and Committee Memberships held bythem are furnished below:

Name ofName ofName ofName ofName of DesignationDesignationDesignationDesignationDesignation Executive/Executive/Executive/Executive/Executive/ No. of the otherNo. of the otherNo. of the otherNo. of the otherNo. of the other Member-Member-Member-Member-Member- No. ofNo. ofNo. ofNo. ofNo. of AttendanceAttendanceAttendanceAttendanceAttendancethe Directorthe Directorthe Directorthe Directorthe Director Non-Executive/Non-Executive/Non-Executive/Non-Executive/Non-Executive/ DirectorshipsDirectorshipsDirectorshipsDirectorshipsDirectorships ship inship inship inship inship in BoardBoardBoardBoardBoard at lastat lastat lastat lastat last

IndependentIndependentIndependentIndependentIndependent in other Pin other Pin other Pin other Pin other Publicublicublicublicublic CommitteesCommitteesCommitteesCommitteesCommittees MeetingsMeetingsMeetingsMeetingsMeetings AGMAGMAGMAGMAGMCompaniesCompaniesCompaniesCompaniesCompanies of otherof otherof otherof otherof other attendedattendedattendedattendedattended heldheldheldheldheld

CompaniesCompaniesCompaniesCompaniesCompanies YES(Y)/NO(N)YES(Y)/NO(N)YES(Y)/NO(N)YES(Y)/NO(N)YES(Y)/NO(N)

Sri C. Jagapati Rao ExecutiveChairman Executive 2 – 6 N

Sri C.Suresh Rayudu VC & MD Executive – – 6 Y

Dr. K.Somi Reddy JMD Executive – – 6 Y

Sri K.Ashok Reddy WTD Executive – – 6 Y

Smt E. Padmaja Director Non-Executive – – 5 Y

Smt P.Usha Lakshmi Director Non-Executive – – 5 Y

Dr. T. Krishna Reddy Director Non-Executive& Independent – – 6 Y

*Sri.Sudit K.Parekh Director Non-Executive& Independent – – 1 N

**Sri Srikant Jilla Director Non-Executive& Independent – – 2 -

Dr. Y. Sanjay Kumar Director Non-Executive& Independent – – 6 Y

Dr. A. Sreenivasa Rao Director Non-Executive& Independent – – 5 Y

Sri Vivek Bhargava Director Non-Executive& Independent – – 4 Y

Sri C. Yugendhar Rao Director Non-Executive& Independent – – 2 Y

* Resigned as Director w.e.f.27.06.2009** Appointed as Director w.e.f.27.06.2009

Details of Equity shares held by Non-Executive DirectorsDetails of Equity shares held by Non-Executive DirectorsDetails of Equity shares held by Non-Executive DirectorsDetails of Equity shares held by Non-Executive DirectorsDetails of Equity shares held by Non-Executive Directors

Name of the DirectorName of the DirectorName of the DirectorName of the DirectorName of the Director No. of Equity Shares held as on 31.03.2010No. of Equity Shares held as on 31.03.2010No. of Equity Shares held as on 31.03.2010No. of Equity Shares held as on 31.03.2010No. of Equity Shares held as on 31.03.2010

Smt E.Padmaja 46,140Smt P.Usha Lakshmi 37,935Dr. T.Krishna Reddy NilSri Srikant Jilla NilDr. Y.Sanjay Kumar NilDr. A.Sreenivasa Rao NilSri Vivek Bhargava NilSri C.Yugendhar Rao Nil


11

ADDITIONAL INFORMAADDITIONAL INFORMAADDITIONAL INFORMAADDITIONAL INFORMAADDITIONAL INFORMATION ON DIRECTTION ON DIRECTTION ON DIRECTTION ON DIRECTTION ON DIRECTORS RETIRING BY ROORS RETIRING BY ROORS RETIRING BY ROORS RETIRING BY ROORS RETIRING BY ROTTTTTAAAAATION AND BEING RETION AND BEING RETION AND BEING RETION AND BEING RETION AND BEING RE-----APPOINTEDAPPOINTEDAPPOINTEDAPPOINTEDAPPOINTED:::::

1)1)1)1)1) Brief profile of Sri CBrief profile of Sri CBrief profile of Sri CBrief profile of Sri CBrief profile of Sri C. Suresh R. Suresh R. Suresh R. Suresh R. Suresh Rayudu, Vice-Chairman and Managing Director, who retires by rotationayudu, Vice-Chairman and Managing Director, who retires by rotationayudu, Vice-Chairman and Managing Director, who retires by rotationayudu, Vice-Chairman and Managing Director, who retires by rotationayudu, Vice-Chairman and Managing Director, who retires by rotationand is eligible for re-appointment.and is eligible for re-appointment.and is eligible for re-appointment.and is eligible for re-appointment.and is eligible for re-appointment.

Sri. C. Suresh Rayudu who is aged about 40 years has been on the Board of the Company sinceMarch, 1993. He is a graduate in Computer Engineering and holds a Masters Degree in BusinessAdministration from Emory University, Atlanta, U.S.A. He is presently the Vice-Chairman & ManagingDirector of the Company and is responsible for the day to day operations of the Company.

He holds Directorship in Varuna Hatcheries Private Limited, Srinivasa Foods and Feeds Private Limited,Corporate Leasing Private Limited, Jagapati Finance Private Limited, Chitturi Enterprises Private Limited,Sri Chitturi Agencies Private Limited, Jagapati Investments Private Limited, Srinivasa Agri Tech PrivateLimited, Jaagruthi Foundations Private Limited, Harsha Hospitalities Private Limited, Rhapsody Foodsand Beverages Private Limited, Forefront Management Services Private Limited, Boss ConsultingPrivate Limited, Sri Srinivasa Aqua Feeds Private Limited, Kansas Feeds Private Limited, MojasaEnterprises Private Limited, PUL Enterprises Private Limited, AARC Constructions Private Limited, SHLFoods Private Limited and SH Infra Projects Private Limited.

2)2)2)2)2) Brief profile of Dr. TBrief profile of Dr. TBrief profile of Dr. TBrief profile of Dr. TBrief profile of Dr. T. Krishna R. Krishna R. Krishna R. Krishna R. Krishna Reddy, Director who retires by rotation and is eligible for re-appointment.eddy, Director who retires by rotation and is eligible for re-appointment.eddy, Director who retires by rotation and is eligible for re-appointment.eddy, Director who retires by rotation and is eligible for re-appointment.eddy, Director who retires by rotation and is eligible for re-appointment.

Dr. T. Krishna Reddy who is aged about 64 years has been on the Board of the Company sinceMay, 1993. He holds a Masters Degree in Veterinary Science from A.P.Agricultural University and aDoctorate from Kansas State University, USA. He advises the Company in the areas of Poultry Feed,Nutrition and Technical Services.

He holds Directorship in Srinivasa Foods and Feeds Private Limited, Sri Srinivasa Aqua Feeds PrivateLimited, Kansas Feeds Private Limited, Varuna Hatcheries Private Limited, Sri Krishna DevarayaHatcheries Private Limited and Srinivasa Agri-Tech Private Limited.

3)3)3)3)3) Brief profile of Dr.YBrief profile of Dr.YBrief profile of Dr.YBrief profile of Dr.YBrief profile of Dr.Y.Sanjay K.Sanjay K.Sanjay K.Sanjay K.Sanjay Kumar, Director who retires by rotation and is eligible for re-appointment.umar, Director who retires by rotation and is eligible for re-appointment.umar, Director who retires by rotation and is eligible for re-appointment.umar, Director who retires by rotation and is eligible for re-appointment.umar, Director who retires by rotation and is eligible for re-appointment.

Dr. Y. Sanjay Kumar, aged 39 years was appointed as Director of the Company w.e.f. 31.12.2005.He holds a Masters Degree in Surgery (MS) and is working as Surgical Registrar in the Department ofSurgical Oncology in the Indo American Cancer Institute, Hyderabad. He has experience in medicalfield for more than a decade.

(iv) The details of Board Meetings held during the financial year 2009-2010:

Seven Board Meetings were held during the financial year 2009-2010. The time gap betweenany two Board Meetings did not exceed four months. The dates on which the said BoardMeetings were held during 2009-10 are as follows:

1. 06.04.2009 2. 27.06.2009

3. 27.07.2009 4. 27.10.2009

5. 23.01.2010 6. 18.03.2010

7. 31.03.2010

3.3.3.3.3. AUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEEAUDIT COMMITTEE

(i) The terms of reference of Audit Committee is as contained in the Corporate Governance Code asper the Listing Agreement.

(ii) The Audit Committee comprises only of Non-Executive Directors i.e, Sri Srikant Jilla, a CharteredAccountant as Chairman and Dr. T. Krishna Reddy and Smt E. Padmaja as the members. TheStatutory Auditors, General Manager (Finance) and the Internal Auditor are the permanent inviteesto the Meetings of the Audit Committee. The Company Secretary acts as Secretary to the AuditCommittee.


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(iii) The Audit Committee met four times in the Financial Year 2009-10 on the following dates:

Sl.No.Sl.No.Sl.No.Sl.No.Sl.No. Date of MeetingDate of MeetingDate of MeetingDate of MeetingDate of Meeting Directors PDirectors PDirectors PDirectors PDirectors Presentresentresentresentresent

1 27.06.2009 Sri Sudit K Parekh and Dr. T. Krishna Reddy

2 27.07.2009 Sri.Srikant Jilla and Dr. T. Krishna Reddy

3 27.10.2009 Dr. T. Krishna Reddy and Smt E. Padmaja

4 23.01.2010 Sri.Srikant Jilla, Dr.T.Krishna Reddy and Smt E. Padmaja

4.4.4.4.4. REMUNERAREMUNERAREMUNERAREMUNERAREMUNERATION OF DIRECTTION OF DIRECTTION OF DIRECTTION OF DIRECTTION OF DIRECTORSORSORSORSORS

Presently the Non-Executive Directors do not receive any remuneration from the Company apart fromcommission on net profits, if any, and are further paid sitting fees for attending the meetings of theBoard and Committee. The remuneration of Directors is decided by the Board and approved by theShareholders.

The details of remuneration paid to the Executive Directors during the financial year 2009-2010 aregiven below:

Name of the DirectorName of the DirectorName of the DirectorName of the DirectorName of the Director R R R R Remuneration in Rs.emuneration in Rs.emuneration in Rs.emuneration in Rs.emuneration in Rs. CommissionCommissionCommissionCommissionCommission

*Sri C. Jagapati Rao 75,000 P.M Plus Perks 4% Commission on net profits inclusive ofsalary and perks

*Sri C. Suresh Rayudu 75,000 P.M Plus Perks 3% Commission on net profits inclusive ofsalary and perks

*Dr. K. Somi Reddy 75,000 P.M Plus Perks 2% Commission on net profits inclusive ofsalary and perks

*Sri K. Ashok Reddy 60,000 P.M Plus Perks 1% Commission on net profits inclusive ofsalary and perks

**Sri Sudit K Parekh NIL 1% Commission on net profits shared withother Non-Executive Directors, till the dateof resignation

***Sri.Srikant Jilla NIL 1% Commission on net profits shared withother Non-Executive Directors, from thedate of appointment

Dr. T. Krishna Reddy NIL 1% Commission on net profits shared withother Non-Executive Directors

Smt E. Padmaja NIL 1% Commission on net profits shared withother Non-Executive Directors

Smt P. Usha Lakshmi NIL 1% Commission on net profits shared withother Non-Executive Directors

Dr. Y. Sanjay Kumar NIL 1% Commission on net profits shared withother Non-Executive Directors

Dr. A. Sreenivasa Rao NIL 1% Commission on net profits shared withother Non-Executive Directors

Sri Vivek Bhargava NIL 1% Commission on net profits shared withother Non-Executive Directors

Sri C. Yugendhar Rao NIL 1% Commission on net profits shared withother Non-Executive Directors

* The tenure of appointment of each of the above Executive Directors is for a period of 5 years.

** Resigned as Director w.e.f.27.06.2009 *** Appointed as Director w.e.f.27.06.2009

Notice period, severance fee and stock options are not applicable.

Except for the above, there are no pecuniary transactions between the Company and the Non-Executive Directors.


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55555 SHAREHOLDERS AND INVESTSHAREHOLDERS AND INVESTSHAREHOLDERS AND INVESTSHAREHOLDERS AND INVESTSHAREHOLDERS AND INVESTOR GRIEVOR GRIEVOR GRIEVOR GRIEVOR GRIEVANCE COMMITTEEANCE COMMITTEEANCE COMMITTEEANCE COMMITTEEANCE COMMITTEEMr. C. Jagapati Rao is the Chairman of this committee and Smt. E. Padmaja, Director and Mr. V. K.Murali Manohar, DGM (Corporate Affairs) & Company Secretary are the other members. Mr. V. K. MuraliManohar is the Compliance Officer.During the year under review, 9 complaints and 41 requests were received from the shareholders andothers as per the details given below and all of them have been duly addressed to and redressed.

The status of shareholder's complaints / requests during the financial year 2009-2010 is as under:

Sl.NoSl.NoSl.NoSl.NoSl.No Nature of Complaint / requestNature of Complaint / requestNature of Complaint / requestNature of Complaint / requestNature of Complaint / request RRRRReceivedeceivedeceivedeceivedeceived RRRRResolvedesolvedesolvedesolvedesolved

1 Change / Correction of Address (Request) 7 72 No. of Transfers (Request) 10 103 Non-Receipt of Dividend Warrants /

Bonus Share Certificate (Complaint) 9 94 Revalidation of Dividend Warrants (Request) 16 165 Others (Request for Annual Report / Change

in Bank Account Details, issue of splitcertificates, duplicate share certificates etc.) 9 9

TTTTTotalotalotalotalotal 5151515151 5151515151

The Complaints received from the shareholders are given top priority and have been attended to onday-to-day basis.

6.6.6.6.6. CODE OF CONDUCTCODE OF CONDUCTCODE OF CONDUCTCODE OF CONDUCTCODE OF CONDUCT:::::The Company has a Code of Conduct applicable to the Board Members as well as the SeniorManagement. All the Board Members and the Senior Management Personnel have affirmed compliancewith the Code of Conduct as on 31st March, 2010.

7.7.7.7.7. CEO / CFO CERTIFICACEO / CFO CERTIFICACEO / CFO CERTIFICACEO / CFO CERTIFICACEO / CFO CERTIFICATIONTIONTIONTIONTION:::::The Managing Director & Chief Executive Officer and Chief Financial Officer have certified to the Boardof Directors, inter alia, the accuracy of financial statements and adequacy of Internal Controls for thefinancial reporting purpose.

8.8.8.8.8. GENERAL BODY MEETINGSGENERAL BODY MEETINGSGENERAL BODY MEETINGSGENERAL BODY MEETINGSGENERAL BODY MEETINGS(i) The details of last three Annual General Meetings (AGM) are as follows:

YYYYYearearearearear VVVVVenueenueenueenueenue DateDateDateDateDate TimeTimeTimeTimeTime

2008-2009 Country Club, 6-3-1219, Begumpet, 27.08.2009 3.00 P.M.Hyderabad -500 016.

2007-2008 Country Club, 6-3-1219, Begumpet, 31.07.2008 3.30 P.MHyderabad -500 016.

2006-2007 Country Club, 6-3-1219, Begumpet, 18.08.2007 12.00 P.M.Hyderabad -500 016.

(ii) In some of the AGMs during the years as above, certain special resolutions set out in the respectivenotices were passed by the shareholders.

(iii) No postal ballots have been conducted during the previous three years. However on 24th May,2010, postal ballot resolutions have been passed for increasing the authorised share capital andfor issue of bonus shares.

9.9.9.9.9. DISCLDISCLDISCLDISCLDISCLOSURESOSURESOSURESOSURESOSURES(i) There are certain related party transactions entered into by the Company with its Promoters, Directors,

Management or their Relatives but they do not have any potential conflict with the interests of theCompany at large. The Related Party Transactions have been disclosed elsewhere in this AnnualReport.


14

(ii) The track record of the Company in handling shareholders' grievances has been very good. Therewere no non-compliances by the Company, penalties, strictures imposed on the Company byStock Exchange or SEBI or any statutory authority on any matter related to Capital Markets duringthe last three financial years.

10.10.10.10.10. MEANS OF COMMUNICAMEANS OF COMMUNICAMEANS OF COMMUNICAMEANS OF COMMUNICAMEANS OF COMMUNICATIONTIONTIONTIONTION

The Company's shares are listed on the Bombay Stock Exchange and the Financial Results on quarterlybasis are being submitted to the Stock Exchange and are published in the following newspapers:

Business Line (English Daily)

Business Standard (English Daily)

Andhra Prabha (Telugu Daily)

There has been no display of official news releases and there have been no presentations made toInstitutional Investors or to the analysts.

The Management Discussion and Analysis Report is included as annexure to the Director's Report.

11.11.11.11.11. GENERAL SHAREHOLDER INFORMAGENERAL SHAREHOLDER INFORMAGENERAL SHAREHOLDER INFORMAGENERAL SHAREHOLDER INFORMAGENERAL SHAREHOLDER INFORMATIONTIONTIONTIONTION

Sl.No.Sl.No.Sl.No.Sl.No.Sl.No. ItemItemItemItemItem DetailsDetailsDetailsDetailsDetails

(i) Annual General Meeting - 17.07.2010 (Saturday)Date, Time and Venue 3.30 P.M

Country Club, 6-3-1219, Begumpet,Hyderabad-500016, A.P.

(ii) Financial Calendar 2009-2010 (tentative) � Financial Reporting for the First Quarterending 30th June, 2010: Last week of July,2010.

� Financial Reporting for the Second Quarter /Half year ending 30th September, 2010: Lastweek of October, 2010.

� Financial Reporting for the Third Quarter / Ninemonths ending 31st December, 2010: Lastweek of January, 2011.

� Financial Reporting for the Fourth Quarter /Year ending 31st March, 2011: Last week ofMay, 2011.

(iii) Dates of Book Closure 15.07.2010 to 17.07.2010 (both days inclusive)

(iv) Dividend Payment Within 30 days after the AGM

(v) Listing on Stock Exchanges & Bombay Stock Exchange Limited (BSE)Stock Code 526893 SRHATCH (BSE)

The Annual Listing Fee for 2010-11 to theExchange has been paid in time.

(The Company is no more listed on HyderabadStock Exchange consequent on withdrawal of itsrecognition by SEBI)

(vi) Demat ISIN No. for NSDL & CDSL INE312E01013


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(vii) Market Price Data (BSE)

MONTHMONTHMONTHMONTHMONTH LLLLLOW (IN RS)OW (IN RS)OW (IN RS)OW (IN RS)OW (IN RS) HIGH (IN RS)HIGH (IN RS)HIGH (IN RS)HIGH (IN RS)HIGH (IN RS)April 2009 50.40 61.95May 2009 45.50 58.65June 2009 52.55 64.90July 2009 49.10 59.35August 2009 55.35 68.75September 2009 60.25 71.40October 2009 65.25 75.90November 2009 68.25 86.10December 2009 80.50 99.00January 2010 84.00 100.00February 2010 89.25 114.00March 2010 96.00 173.00

(viii) Registrar and Share Transfer Agents CIL Securities Limited,(for both physical and electronic) 214, Raghava Ratna Towers, Chirag Ali Lane,

Abids, Hyderabad-500 001.Phone Nos:040-23203155, 23202465Fax No: 040-55661267E-mail : [email protected],[email protected]

(ix) Share Transfer System Shares lodged for Physical Transfer would beregistered within a period of 30 days if thedocuments are in order in all respects by theShare Transfer Agents.

(x) Distribution of Holdings as on 31.03.2010

No. of SharesNo. of SharesNo. of SharesNo. of SharesNo. of Shares No. ofNo. ofNo. ofNo. ofNo. of % of% of% of% of% of No ofNo ofNo ofNo ofNo of % of% of% of% of% of

FFFFFromromromromrom Upto Upto Upto Upto Upto HoldersHoldersHoldersHoldersHolders HoldersHoldersHoldersHoldersHolders SharesSharesSharesSharesShares SharesSharesSharesSharesShares

1 500 2186 89.59 315263 6.50501 1000 105 4.30 71625 1.50

1001 2000 58 2.38 79703 1.602001 3000 23 0.94 60060 1.203001 4000 9 0.37 30197 0.604001 5000 9 0.37 41299 0.905001 10000 12 0.49 90681 1.90

10001 Above 38 1.56 4158922 85.80

24402440244024402440 100.00100.00100.00100.00100.00 48477504847750484775048477504847750 100.00100.00100.00100.00100.00

Shareholding Pattern as on 31.03.2010

CategoryCategoryCategoryCategoryCategory No of SharesNo of SharesNo of SharesNo of SharesNo of Shares % of Capital% of Capital% of Capital% of Capital% of Capital

Promoters (Individuals) 1438995 29.69Private Bodies Corporate 2196600 45.31Non Resident Indians 14070 0.29Public 1198085 24.71

TTTTTotalotalotalotalotal 48477504847750484775048477504847750 100.00100.00100.00100.00100.00


16

(xi) Dematerialisation of shares and Liquidity The Company has entered into tripartiteagreements with NSDL and CDSL to establishElectronic connectivity through Company'sElectronic Registrar i.e., CIL Securities Limited,Hyderabad and facilitates scripless trading.Trading in the equity shares of the Company iscompulsorily in dematerialised form for allinvestors.

Investors are therefore advised to open demataccounts with the depository participant of theirchoice to trade in demat form. The list ofdepository participants is available with NSDL andCDSL. The ISIN allotted to the Company's Scrip isINE312E01013.

78.66% of the Company's shares are now heldin electronic form as on 31.03.2010. TheCompany's shares are currently traded inIndonext Segment on the BSE.

(xii) Oustanding ADRs/GDRs The Company has not issued any GDRs / ADRs/ Warrants or any convertible instruments.

(xiii) Location of Units The Company has its Units and facilities locatedat multiple locations in and around Vijayawada,Visakhapatnam and Hyderabad.

(xiv) Address for Correspondence / SRINIVSRINIVSRINIVSRINIVSRINIVAAAAASA HASA HASA HASA HASA HATTTTTCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDRegistered Office: 'SRINIVASA HOUSE', Plot No. 1028,

Road No. 45, Jubilee Hills,Hyderabad - 500 033.Phone No. +91-40-23555388Fax No.+91-40-23555377E-mail: [email protected]

(xv) Dedicated email ID for [email protected] grievances

Shareholders holding shares in Electronic Form should address all their correspondence to theirrespective Depository Participants except for dividend related queries.

NON - MANDANON - MANDANON - MANDANON - MANDANON - MANDATTTTTORY REQUIREMENTSORY REQUIREMENTSORY REQUIREMENTSORY REQUIREMENTSORY REQUIREMENTS:::::

a)a)a)a)a) Chairman of the Board:Chairman of the Board:Chairman of the Board:Chairman of the Board:Chairman of the Board:

Whether Chairman of the Board is Expenses incurred in performanceentitled to maintain a Chairman's of duties by the Chairman are reimbursed.office at the Company's expensesand also allowed reimbursement ofexpenses incurred in performance ofhis duties.

b)b)b)b)b) RRRRRemuneration Committeeemuneration Committeeemuneration Committeeemuneration Committeeemuneration Committee:::::

It is not mandatory to set-up Remuneration Committee of Directors and the Company hasnot set-up Remuneration Committee.


17

c)c)c)c)c) Shareholders' Rights:Shareholders' Rights:Shareholders' Rights:Shareholders' Rights:Shareholders' Rights:

The half yearly declaration of financial The Company's quarterly / half-yearly resultsperformance including summary of the are published in English and Telugusignificant events in last six months newspapers. Hence they are not sent to theshould be sent to each household shareholders.of shareholders.

d)d)d)d)d) Audit Qualifications:Audit Qualifications:Audit Qualifications:Audit Qualifications:Audit Qualifications:

There are no qualifications or adverse remarks by the Auditors.

AUDITAUDITAUDITAUDITAUDITOR'S REPORTOR'S REPORTOR'S REPORTOR'S REPORTOR'S REPORTON COMPLIANCE OF CONDITIONS OF CORPORAON COMPLIANCE OF CONDITIONS OF CORPORAON COMPLIANCE OF CONDITIONS OF CORPORAON COMPLIANCE OF CONDITIONS OF CORPORAON COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCETE GOVERNANCETE GOVERNANCETE GOVERNANCETE GOVERNANCE

To the shareholders ofSRINIVSRINIVSRINIVSRINIVSRINIVAAAAASA HASA HASA HASA HASA HATTTTTCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITED

We have examined the compliance of conditionsof corporate governance by M/s Srinivasa HatcheriesM/s Srinivasa HatcheriesM/s Srinivasa HatcheriesM/s Srinivasa HatcheriesM/s Srinivasa HatcheriesLimitedLimitedLimitedLimitedLimited, for the year ended on 31st March, 2010, for the year ended on 31st March, 2010, for the year ended on 31st March, 2010, for the year ended on 31st March, 2010, for the year ended on 31st March, 2010as stipulated in clause 49 of the Listing Agreementof the said Company with stock exchanges.

The compliance of conditions of CorporateGovernance is the responsibility of themanagement. Our examination was limited toprocedures and implementation thereof, adoptedby the Company for ensuring the compliance ofthe conditions of the corporate governance. It isneither an audit nor an expression of opinion onthe financial statements of the Company.

In our opinion and to the best of our informationand according to the explanations given to us, wecertify that the Company has complied in allmaterial respects with the conditions of corporate

governance as stipulated in the above-mentionedListing Agreement.

We state that no investor grievances are pendingfor a period exceeding one month against theCompany as per the records maintained by theShareholders Grievance Committee.

We further state that such compliance is neither anassurance as to the future viability of the Companynor the efficiency or effectiveness with which themanagement has conducted the affairs of theCompany.

For SSSSS.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & CO.,.,.,.,.,Chartered Accountants

Place : Hyderabad Shantilal Daga Shantilal Daga Shantilal Daga Shantilal Daga Shantilal DagaDate : 27.05.2010 Partner

M.No. 11617


18

DECLARADECLARADECLARADECLARADECLARATION ON CODE OF CONDUCTTION ON CODE OF CONDUCTTION ON CODE OF CONDUCTTION ON CODE OF CONDUCTTION ON CODE OF CONDUCT

This is to confirm that the Board has laid down aCode of Conduct, in terms of the Revised Clause-49 of the Listing Agreement executed with the StockExchanges, for all the Board Members and SeniorManagement Personnel of the Company. It is furtherconfirmed that all the Directors and Senior

Management Personnel have affirmed theircompliance with the Code of Conduct of theCompany for the financial year ended 31.03.2010.

CCCCC.Suresh R.Suresh R.Suresh R.Suresh R.Suresh RayuduayuduayuduayuduayuduPlace : Hyderabad Vice-Chairman andDate : 27.05.2010 Managing Director

CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICACHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICACHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICACHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICACHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATETETETETE

ToThe Board of DirectorsSrinivasa Hatcheries LimitedPlot No.1028, 'Srinivasa House'Road No.45, Jubilee HillsHyderabad -500 033, A.P.

We, C.Suresh Rayudu, Vice-Chairman andManaging Director (CEO) and U.Ganesh, GM(Finance) (CFO), to the best of our knowledge andbelief, certify that:

1. we have reviewed the balance sheet and profitand loss account and all its schedules andnotes on accounts, as well as the cash flowstatements and the Directors' Report for the yearending 31st March, 2010

2. these statements do not contain any materiallyuntrue statement or omit any material fact orcontain statements that might be misleading.

3. these statements together present a true andfair view of the Company's affairs and are incompliance with the existing accountingstandards, applicable laws and regulations.

4. there are to the best of our knowledge andbelief, no transactions entered into by theCompany during the financial year 2009-10which are fraudulent, illegal or violative of theCompany's Code of Conduct.

5. we accept responsibility for establishing andmaintaining internal controls for financialreporting and have evaluated the effectiveness

of the internal control systems of the Companypertaining to financial reporting and we havedisclosed to the Auditors and the AuditCommittee, deficiencies in the design oroperation of such internal controls, if any, ofwhich we are aware and the steps we havetaken or propose to take to rectify thesedeficiencies.

6. We have indicated to the Auditors and the AuditCommittee:

i) that there has not been any significantchanges in internal control over financialreporting during the year;

ii) significant changes in accounting policiesduring the year and the same have beendisclosed in the notes to the financialstatements; and

iii) that there has not been any instance ofsignificant fraud of which we have becomeaware and the involvement therein, if any,of the management or an employeehaving a significant role in the Company'sinternal control system.

CCCCC. Suresh R. Suresh R. Suresh R. Suresh R. Suresh Rayuduayuduayuduayuduayudu UUUUU.Ganesh.Ganesh.Ganesh.Ganesh.GaneshVice-Chairman & GM (Finance)Managing Director (CEO) (CFO)

Place : HyderabadDate : 27.05.2010


19

AUDITAUDITAUDITAUDITAUDITORS' REPORTORS' REPORTORS' REPORTORS' REPORTORS' REPORT

To the Members ofSRINIVSRINIVSRINIVSRINIVSRINIVAAAAASA HASA HASA HASA HASA HATTTTTCHERIES CHERIES CHERIES CHERIES CHERIES LIMITEDLIMITEDLIMITEDLIMITEDLIMITED

1. We have audited the attached Balance Sheetof SRINIVASA HATCHERIES LTD. as at 31st March2010 and also the Profit and Loss Account andthe Cash Flow Statement for the year ended onthat date annexed thereto. These financialstatements are the responsibility of thecompany's management. Our responsibility isto express an opinion on these financialstatements based on our audit.

2. We conducted our audit in accordance withauditing standards generally accepted in India.Those Standards require that we plan andperform the audit to obtain reasonableassurance about whether the financialstatements are free of material misstatement.An audit includes examining, on a test basis,evidence supporting the amounts anddisclosures in the financial statements. An auditalso includes assessing the accounting principlesused and significant estimates made bymanagement, as well as evaluating the overallfinancial statement presentation. We believethat our audit provides a reasonable basis forour opinion.

3. As required by the Companies (Auditor's Report)Order, 2003 (and amended by The Companies(Auditor's Report) (Amendment) Order, 2004)issued by the Central Government of India interms of sub-section (4A) of Section 227 of theCompanies Act, 1956, we annex hereto astatement on the matters specified inparagraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referredto above, we report that:

a. We have obtained all the information andexplanations, which to the best of ourknowledge and belief were necessary forthe purposes of our audit;

b. In our opinion, proper books of account asrequired by law have been kept by theCompany so far as appears from ourexamination of those books;

c. The Balance Sheet, Profit and Loss Accountand Cash Flow Statement referred to in thisreport are in agreement with the books ofaccount;

d. In our opinion, the Balance Sheet, Profit andLoss Account and Cash Flow Statementdealt with by this report comply with theaccounting standards as referred to in sub-section (3C) of Section 211 of theCompanies Act, 1956;

e. On the basis of written representationsreceived from the directors, as on 31stMarch 2010, and taken on record by theBoard of Directors, we report that none ofthe directors of the company is disqualifiedas referred to in terms of clause (g) of sub-section (1) of Section 274 of the CompaniesAct, 1956.

5. In our opinion and to the best of our informationand according to the explanations given to us,the said accounts, read together with theSignificant Accounting Policies and other notesappearing in Schedule '15'; give the informationrequired by the Companies Act, 1956, in themanner so required and give a true and fair viewin conformity with the accounting principlesgenerally accepted in India:-

(i) in the case of the Balance Sheet, of the stateof affairs of the Company as at 31st March2010;

(ii) in the case of the Profit and Loss Account,of the profit of the company for the yearended on that date; and

(iii) in the case of Cash Flow Statement, of thecash flows for the year ended on that date.

For SSSSS.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & COChartered Accountants

(F.No.000669S)

SHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGAPlace : Hyderabad PartnerDate : 27.05.2010 Membership No.11617


20

ANNEXURE TANNEXURE TANNEXURE TANNEXURE TANNEXURE TO AUDITO AUDITO AUDITO AUDITO AUDITORS' REPORTORS' REPORTORS' REPORTORS' REPORTORS' REPORTReferred to in Paragraph 3 of our Report of even date:

1. a) The company has generally maintainedproper records showing particulars,including quantitative details and situationof fixed assets;

b) As explained to us, the fixed assets havebeen physically verified by themanagement at reasonable intervals, in aphased verification programme, which, inour opinion, is reasonable, looking to the sizeof the Company and the nature of itsbusiness. According to the information andexplanations given to us, discrepanciesnoticed on physical verification have beenproperly dealt with in the books of account;

c) During the year, the Company has notdisposed off any substantial part of its fixedassets so as to affect its going concern.

2. a) As explained to us, inventories have beenphysically verified during the year by themanagement. Inventories lying with outsideparties have been confirmed by them atthe close of the year;

b) The procedures explained to us, which arefollowed by the management for physicalverification of inventories, are, in our opinion,reasonable and adequate in relation to thesize of the Company and the nature of itsbusiness;

c) On the basis of our examination of theinventory records of the Company, we areof the opinion that, the Company ismaintaining proper records of its inventory.Discrepancies, which were noticed onphysical verification of inventory ascompared to book records, have beenproperly dealt with in the books of account.

3. According to the information and explanationsgiven to us, the Company has neither grantednor taken any loans, secured or unsecured, to/from companies, firms and other parties coveredin the register maintained under Section 301 ofthe Companies Act, 1956. Accordinglyparagraphs 4(iii) (b), (c), (d), (f) and (g) of theOrder are not applicable.

4. In our opinion and according to the informationand explanation given to us, there are generallyadequate internal control procedurescommensurate with the size of the Company

and the nature of its business with regard topurchase of inventory and fixed assets and forsale of goods and services.

5. a) On the basis of the audit proceduresperformed by us, and according to theinformation, explanations andrepresentations given to us, the particularsof all transactions in which directors wereinterested, as contemplated under Section297 and Section 299 of the Companies Act,1956, and which were required to beentered in the register maintained underSection 301 of the said Act, have been soentered;

b) In our opinion and according to theinformation and explanations given to us,the transactions made in pursuance ofcontracts or arrangements entered in theregister maintained under Section 301 of theCompanies Act, 1956 in respect of anyparty during the year, have been made atprices which are reasonable having regardto the prevailing market prices at therelevant time.

6. In our opinion and according to the informationand explanations given to us, the company hasnot accepted any deposits from the public withinthe meaning of Section 58A, 58AA of theCompanies Act, 1956 or any other relevantprovisions of the Act and the Rules made thereunder.

7. In our opinion, the company has to furtherstrengthen the internal audit systemcommensurate with its size and nature ofbusiness.

8. The Central Government has not prescribed anycost records pursuant to the Rules made for themaintenance of cost records under section209(1)(d) of the Companies Act, 1956 in relationto the Company's business activities.

9. a) The company is regular in depositing withappropriate authorities undisputed statutorydues including Provident Fund, InvestorEducation Protection Fund, Employee's StateInsurance, Income-tax, Sales-tax, Wealthtax, Service tax, Custom duty, Excise duty,cess and other material statutory duesapplicable to it.


21

b) According to the information and explanations given to us, no undisputed amounts payable inrespect of income-tax, wealth tax, service tax, sales tax, custom duty, excise duty and cess werein arrears, as at 31st March 2010 for a period of more than six months from the date they becamepayable;

c) According to the information and explanations given to us, the following are the details of disputedstatutory dues as at the year end:

Sl.Sl.Sl.Sl.Sl. Name of theName of theName of theName of theName of the Nature of DuesNature of DuesNature of DuesNature of DuesNature of Dues AmountAmountAmountAmountAmount PPPPPeriod to whicheriod to whicheriod to whicheriod to whicheriod to which FFFFForum whereorum whereorum whereorum whereorum whereNo.No.No.No.No. StatuteStatuteStatuteStatuteStatute Rs.Rs.Rs.Rs.Rs. the amount relatesthe amount relatesthe amount relatesthe amount relatesthe amount relates dispute is pendingdispute is pendingdispute is pendingdispute is pendingdispute is pending

(i) A.P.State Electricity Dues 85,107 2001-02 Addl.DivisionalElectricity Act Engineer,

APCPDCL,Narsapur,Medak Dist.

10. The company does not have any accumulatedlosses at the end of the financial year and hasnot incurred cash losses in the current financialyear and in the immediately precedingfinancial year.

11. In our opinion and according to the informationand explanations given to us, the companyhas not defaulted in repayment of dues tofinancial institution, bank or debenture holders.

12. As per the information and explanation givento us the company has not granted loans andadvances on the basis of security by way ofpledge of shares, debentures and othersecurities.

13. In our opinion, the company is not a chit fundor a nidhi mutual benefit fund/ society.Therefore, the provisions of clause 4(xiii) of theCompanies (Auditor's Report) Order, 2003 arenot applicable to the company.

14. In our opinion and according to the informationand explanations given to us, the company isnot dealing in or trading in shares, securities,debentures and other investments. Therefore,the provisions of clause 4(xiv) of the Companies(Auditor's Report) Order, 2003 are not applicableto the Company.

15. According to the information and explanationsgiven to us, the company has not given anyguarantee for loans taken by others from banksor financial institutions.

16. The company has not raised any term loanduring the year.

17. Based on information and explanations givento us and on an overall examination of thefinancial statements of the Company, we are

of the opinion that prima facie short term fundshave not been used for long term purpose.

18. The company has not made any preferentialallotment of shares to parties or companiescovered in the register maintained undersection 301 of the Companies Act, 1956.

19. The company has not issued any debenturesand hence the provisions of clause 4(xix) of theCompanies (Auditor's Report) Order, 2003 arenot applicable to the Company.

20. According to the information and explanationsgiven to us, the Company has not raisedmoney by public issues during the year.

21. According to the information and explanationgiven to us, during the year, no fraud by thecompany has been noticed or reported;However an instance of fraud on the companyhas been noticed and reported, amounting toRs.19.43 lakhs through misappropriation bycertain employees. A sum of Rs. 4.29 lakhs hassince been recovered and steps are beingtaken for recovery of the balance amount. Theinvestigations are in progress and theconcerned employees have been dismissed/suspended.

For SSSSS.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & CO.DAGA & COChartered Accountants

(F.No.000669S)

SHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGAPlace : Hyderabad Membership No.11617Date : 27.05.2010 Partner


22

BALANCE SHEET ABALANCE SHEET ABALANCE SHEET ABALANCE SHEET ABALANCE SHEET AS AS AS AS AS AT 31ST MARCHT 31ST MARCHT 31ST MARCHT 31ST MARCHT 31ST MARCH, 2010, 2010, 2010, 2010, 2010

As at As atParticulars Schedule 31.03.2010 31.03.2009

SOSOSOSOSOURCES OF FUNDSURCES OF FUNDSURCES OF FUNDSURCES OF FUNDSURCES OF FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDSSHAREHOLDERS' FUNDS

Share Capital 1 48,534,500 48,534,500Reserves and surplus 2 621,221,776 525,578,809

669,756,276 574,113,309DEFERRED TDEFERRED TDEFERRED TDEFERRED TDEFERRED TAXAXAXAXAX

Deferred Tax Liability (Net) 23,362,000 28,046,000

T O T A LT O T A LT O T A LT O T A LT O T A L 693,118,276 602,159,309

APPLICAAPPLICAAPPLICAAPPLICAAPPLICATION OF FUNDSTION OF FUNDSTION OF FUNDSTION OF FUNDSTION OF FUNDSFIXED AFIXED AFIXED AFIXED AFIXED ASSETSSSETSSSETSSSETSSSETS 3Gross block 657,738,315 570,359,050Less: Depreciation 249,342,784 218,580,874

Net block 408,395,531 351,778,176Capital Work In Progress & Advances 30,463,124 23,302,070

438,858,655 375,080,246

INVESTMENTSINVESTMENTSINVESTMENTSINVESTMENTSINVESTMENTS 4 230,992,086 115,418,366

CURRENT ACURRENT ACURRENT ACURRENT ACURRENT ASSETSSSETSSSETSSSETSSSETS, L, L, L, L, LOANSOANSOANSOANSOANSAND ADVAND ADVAND ADVAND ADVAND ADVANCESANCESANCESANCESANCES

Inventories 5 169,365,999 126,721,943Sundry debtors 6 2,861,203 4,383,347Cash and bank balances 7 37,265,679 19,657,285Other current assets 8 9,236,051 8,756,703Loans and advances 9 59,421,138 94,469,534

278,150,070 253,988,812LESSLESSLESSLESSLESS::::: CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIES

AND PROVISIONSAND PROVISIONSAND PROVISIONSAND PROVISIONSAND PROVISIONSCurrent Liabilities 10 208,861,340 117,933,092Provisions 11 46,021,195 24,395,023

254,882,535 142,328,115

NET CURRENT ANET CURRENT ANET CURRENT ANET CURRENT ANET CURRENT ASSETSSSETSSSETSSSETSSSETS 23,267,535 111,660,697


Notes to the Accounts 15

The Schedules referred to the above and notes to accounts form an integral part of Balance Sheet.

As per our attached report of even date

For SSSSS. DAGA AND CO. DAGA AND CO. DAGA AND CO. DAGA AND CO. DAGA AND CO.,.,.,.,., FFFFFor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of DirectorsChartered Accountants(F. No.000669S)

SHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGASHANTILAL DAGA C JAGAPC JAGAPC JAGAPC JAGAPC JAGAPAAAAATI RAOTI RAOTI RAOTI RAOTI RAO C SURESH RAC SURESH RAC SURESH RAC SURESH RAC SURESH RAYUDUYUDUYUDUYUDUYUDUMembership No:11617 EXECUTIVE CHAIRMAN VICE-CHAIRMAN &(PARTNER) MANAGING DIRECTOR

Place : Hyderabad Dr K SOMI REDDYDr K SOMI REDDYDr K SOMI REDDYDr K SOMI REDDYDr K SOMI REDDY V K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARDated : 27-05-2010 JOINT MANAGING DIRECTOR COMPANY SECRETARY

In Rupees


23

PROFIT AND LPROFIT AND LPROFIT AND LPROFIT AND LPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCHOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCHOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCHOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCHOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010, 2010, 2010, 2010, 2010

For the For theParticulars Schedule year ended year ended

31.03.2010 31.03.2009

INCOINCOINCOINCOINCOMEMEMEMEMESales and Operational Income 1,233,674,437 838,338,544Other income 12 16,059,608 1,446,902

T O T A LT O T A LT O T A LT O T A LT O T A L 1,249,734,045 839,785,446

EXPENDITUREEXPENDITUREEXPENDITUREEXPENDITUREEXPENDITUREManufacturing, farm and other expenses 13 888,120,330 670,255,543Goods purchased for Trading 181,041,044 128,050,266Depreciation / Amortisation 33,129,379 25,421,797Interest 112,465 0Decrease / (Increase) in stocks 14 (40,438,549) 680,805

T O T A LT O T A LT O T A LT O T A LT O T A L 1,061,964,669 824,408,411

PROFIT BEFORE TPROFIT BEFORE TPROFIT BEFORE TPROFIT BEFORE TPROFIT BEFORE TAXAXAXAXAX 187,769,376 15,377,035

PROVISION FOR TPROVISION FOR TPROVISION FOR TPROVISION FOR TPROVISION FOR TAXAXAXAXAXCurrent Tax (68,740,000) (9,903,000)Deferred Tax Release 4,684,000 4,407,000Fringe Benefit Tax – (700,000)

Tax Expense (64,056,000) (6,196,000)

PROFIT AFTER TPROFIT AFTER TPROFIT AFTER TPROFIT AFTER TPROFIT AFTER TAXAXAXAXAX 123,713,376 9,181,035Provision for tax for earlier years (Net) (194,094) (1,783,393)Balance of profit brought forward 149,509,517 153,308,339

PROFIT APROFIT APROFIT APROFIT APROFIT AVVVVVAILABLE FOR APPROPRIAAILABLE FOR APPROPRIAAILABLE FOR APPROPRIAAILABLE FOR APPROPRIAAILABLE FOR APPROPRIATIONTIONTIONTIONTION 273,416,987 164,272,767

APPROPRIAAPPROPRIAAPPROPRIAAPPROPRIAAPPROPRIATIONSTIONSTIONSTIONSTIONSTransfer to General Reserve 12,372,000 920,000Transfer to Contingency Reserve 5,000,000 2,500,000Proposed Dividend 24,238,750 9,695,500Tax on Distributed Profits 4,025,753 1,647,750Balance carried to Balance Sheet 227,780,484 149,509,517


EARNINGS PER EQUITY SHAREEARNINGS PER EQUITY SHAREEARNINGS PER EQUITY SHAREEARNINGS PER EQUITY SHAREEARNINGS PER EQUITY SHAREBasic earnings per share 25.52 1.89Diluted earnings per share 12.76 0.95Face value of each share 10.00 10.00

Notes to the Accounts 15The Schedules referred to the above and notes to accounts form an integral part of Profit and Loss Account.





In Rupees


24

CACACACACASH FLSH FLSH FLSH FLSH FLOW STOW STOW STOW STOW STAAAAATEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010

PARTICULARS For the For theYear ended Year ended31.03.2010 31.03.2009

AAAAA..... CACACACACASH FLSH FLSH FLSH FLSH FLOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERATING ACTIVITIESTING ACTIVITIESTING ACTIVITIESTING ACTIVITIESTING ACTIVITIES

Net Profit Before Tax and Extraordinary items 187,769,376 15,377,035

Adjustments for

Depreciation / Amortisation 33,129,379 25,421,797

Provisions no longer required written back (880,229) (2,153,220)

Provision for doubtful loans 1,100,000 0

Loss on discarded assets 160,433 272,969

(Profit) / Loss on sale of assets (Net) (798,951) 83,702

(Profit) / Loss on sale of investments (Net) (3,902,906) 13,244,257

Income from Partnership Firm (382,896) (616,126)

Interest Income (3,472,638) (3,839,976)

Interest Expense 112,465 0

Dividend Income (311,451) (1,939,638)

Provision for diminution in value of investments 0 901,483

Baddebts written off 0 71,096

Provision for doubtful debts 0 193,972

Operating POperating POperating POperating POperating Profit before Wrofit before Wrofit before Wrofit before Wrofit before Working Capital Changesorking Capital Changesorking Capital Changesorking Capital Changesorking Capital Changes 212,522,582 47,017,351

Adjustments for

Trade and Other Receivables 36,210,605 (55,061,472)

Inventories (42,644,056) 415,932

Trade Payables 94,400,182 17,735,089

Cash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from OperationsCash Generated from Operations 300,489,313 10,106,900

Direct Taxes Paid (Net) (67,097,615) (7,596,665)

NET CANET CANET CANET CANET CASH FLSH FLSH FLSH FLSH FLOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERAOW FROM OPERATING ACTIVITIESTING ACTIVITIESTING ACTIVITIESTING ACTIVITIESTING ACTIVITIES 233,391,698 2,510,235

BBBBB..... CACACACACASH FLSH FLSH FLSH FLSH FLOW FROM INVESTING ACTIVITIESOW FROM INVESTING ACTIVITIESOW FROM INVESTING ACTIVITIESOW FROM INVESTING ACTIVITIESOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (98,459,948) (38,717,805)

Sale of Fixed Assets 2,190,675 983,170

Sale / (Purchase) of Investments (Net) (110,807,689) 8,288,405

Loans (Given) / Realised (Net) (1,262,529) 34,588,383

Interest Received 3,072,798 4,924,200

Dividend Received 754,407 3,729,631

NET CANET CANET CANET CANET CASH USED IN INVESTING ACTIVITIESSH USED IN INVESTING ACTIVITIESSH USED IN INVESTING ACTIVITIESSH USED IN INVESTING ACTIVITIESSH USED IN INVESTING ACTIVITIES (204,512,286) 13,795,984

Contd..

In Rupees


25

CACACACACASH FLSH FLSH FLSH FLSH FLOW STOW STOW STOW STOW STAAAAATEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010TEMENT FOR THE YEAR ENDED 31ST MARCH 2010

PARTICULARS For the For theYear ended Year ended31.03.2010 31.03.2009

CCCCC..... CACACACACASH FLSH FLSH FLSH FLSH FLOW FROM FINANCING ACTIVITIESOW FROM FINANCING ACTIVITIESOW FROM FINANCING ACTIVITIESOW FROM FINANCING ACTIVITIESOW FROM FINANCING ACTIVITIES

Interest Paid (112,465) 0

Dividend and Dividend Tax paid (11,343,250) (14,179,063)

NET CANET CANET CANET CANET CASH USED IN FINANCING ACTIVITIESSH USED IN FINANCING ACTIVITIESSH USED IN FINANCING ACTIVITIESSH USED IN FINANCING ACTIVITIESSH USED IN FINANCING ACTIVITIES (11,455,715) (14,179,063)

Net increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalentsNet increase in cash and cash equivalents 17,423,697 2,127,156

Cash and cash equivalents at the beginning of the year 18,417,919 16,290,763

Cash and cash equivalents at the end of the year 35,841,616 18,417,919

Notes:Notes:Notes:Notes:Notes:

Cash and cash equivalents include:

Cash and Cheqes in hand and

remitances in transit 2,872,490 986,139

With banks in :

Current accounts 20,357,762 12,320,316

Deposit accounts 12,611,364 5,111,464


In Rupees






26

SCHEDULES FORMING PSCHEDULES FORMING PSCHEDULES FORMING PSCHEDULES FORMING PSCHEDULES FORMING PART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEET

ParticularsAs at As at

31.03.2010 31.03.2009

SCHEDULE - 1SCHEDULE - 1SCHEDULE - 1SCHEDULE - 1SCHEDULE - 1

SHARE CAPITSHARE CAPITSHARE CAPITSHARE CAPITSHARE CAPITALALALALAL

AUTHORISEDAUTHORISEDAUTHORISEDAUTHORISEDAUTHORISED50,00,000 Equity Shares of Rs.10 each 50,000,000 50,000,000

ISSUED AND SUBSCRIBEDISSUED AND SUBSCRIBEDISSUED AND SUBSCRIBEDISSUED AND SUBSCRIBEDISSUED AND SUBSCRIBED48,58,850 Equity Shares of Rs.10 each 48,588,500 48,588,500

PPPPPAID UPAID UPAID UPAID UPAID UP48,47,750 Equity shares of Rs.10 each 48,477,500 48,477,500

Add: 11,100 Shares of Rs.10 eachForfeited 57,000 57,000


Of the above subscribed and paid-up capital, 23,27,850 Shares of Rs.10 each were allotted as fullypaid up by way of issue of bonus shares by capitalisation of General Reserve and Share PremiumAccount.

ParticularsAs at As at

31.03.2010 31.03.2009


RESERVES RESERVES RESERVES RESERVES RESERVES AND SURPLAND SURPLAND SURPLAND SURPLAND SURPLUSUSUSUSUSShare Premium Account 49,324,492 49,324,492

Share Forfeiture Account 624,800 624,800

General ReserveBalance as per last balance sheet 294,020,000 293,100,000Add : Transferred from Profit and

Loss Account 12,372,000 920,000

306,392,000 294,020,000

Contingency ReserveBalance as per last balance sheet 32,100,000 29,600,000Add : Transferred from Profit and

Loss Account 5,000,000 2,500,000

37,100,000 32,100,000

Balance in Profit and Loss Account 227,780,484 149,509,517


In Rupees


27

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28

SCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEETART OF THE BALANCE SHEET

No. of PARTICULARS Face As at As atShares / Units Value 31.03.2010 31.03.2009

SSSSSCHEDCHEDCHEDCHEDCHEDULE 4ULE 4ULE 4ULE 4ULE 4INVESTMENTS - At CostINVESTMENTS - At CostINVESTMENTS - At CostINVESTMENTS - At CostINVESTMENTS - At CostLLLLLONG TERM - QUOONG TERM - QUOONG TERM - QUOONG TERM - QUOONG TERM - QUOTEDTEDTEDTEDTED

In FIn FIn FIn FIn Fully paid Equity Sharesully paid Equity Sharesully paid Equity Sharesully paid Equity Sharesully paid Equity SharesTTTTTraderaderaderaderade

84,381 (Previous Year 84,381) Venky's (India) Ltd 10 1,612,481 1,612,481

TTTTTotal of Lotal of Lotal of Lotal of Lotal of Long Tong Tong Tong Tong Term Shares - Quotederm Shares - Quotederm Shares - Quotederm Shares - Quotederm Shares - Quoted 1,612,481 1,612,481

LLLLLONG TERM - UNQUOONG TERM - UNQUOONG TERM - UNQUOONG TERM - UNQUOONG TERM - UNQUOTEDTEDTEDTEDTEDIn Equity Shares - Other than TIn Equity Shares - Other than TIn Equity Shares - Other than TIn Equity Shares - Other than TIn Equity Shares - Other than Trade - Frade - Frade - Frade - Frade - Fully Pully Pully Pully Pully Paidaidaidaidaid

250,000 (Previous Year 250,000) Srinivasa AgritechPrivate Ltd 10 2,500,000 2,500,000

294,500 (Previous Year 294,500) Rhapsody Foodsand Beverages Pvt Ltd 10 2,945,000 2,945,000

10,000 (Previous Year 10,000) Heritage FinleasePrivate Ltd 10 100,000 100,000

750,000 (Previous Year 750,000) SHL FoodsPrivate Ltd 10 7,500,000 7,500,000

In PIn PIn PIn PIn Preference Shares - Treference Shares - Treference Shares - Treference Shares - Treference Shares - Trade - Frade - Frade - Frade - Frade - Fully Pully Pully Pully Pully Paidaidaidaidaid10,000 (Previous Year 10,000) 8% Non-Cumulative

Redeemable Preference Shares-Kansas 100 1,000,000 1,000,000Feeds Private Ltd

13,000 (Previous Year 13,000) 8% Non-CumulativeRedeemable Preference Shares - 100 1,300,000 1,300,000Sri Srinivasa Aqua Feeds Private Ltd

In Debentures - Other than TIn Debentures - Other than TIn Debentures - Other than TIn Debentures - Other than TIn Debentures - Other than Trade - Frade - Frade - Frade - Frade - Fully Pully Pully Pully Pully Paidaidaidaidaid20 (Previous Year Nil) 12.75% Secured

Redeemable Non-Convertible 1,000,000 20,000,000 0Debentures of Prakausali Investments(India) Private Ltd

3 (Previous Year Nil) 11.25% SecuredRedeemable Non-Convertible 5,000,000 15,000,000 0and Taxable Debentures of Churu TradingCompany Private Ltd

- (Previous Year 3) Non-ConvertibleRedeemable Debentures 1,000,000 0 3,000,000of Citicorp Finance (India) Ltd

In PIn PIn PIn PIn Partnership Fartnership Fartnership Fartnership Fartnership Firm - Other than Tirm - Other than Tirm - Other than Tirm - Other than Tirm - Other than TraderaderaderaderadeSHL Ventures 51,018,366 50,635,470

TTTTTotal of Lotal of Lotal of Lotal of Lotal of Long Tong Tong Tong Tong Term - Unquoted Shares and Otherserm - Unquoted Shares and Otherserm - Unquoted Shares and Otherserm - Unquoted Shares and Otherserm - Unquoted Shares and Others 101,363,366 68,980,470

Contd..

In Rupees


29



In Mutual FIn Mutual FIn Mutual FIn Mutual FIn Mutual Funds - Other than Tunds - Other than Tunds - Other than Tunds - Other than Tunds - Other than Traderaderaderaderade

250,000 (Previous Year Nil) Birla Sun Life FixedTerm Plan - Growth Option 10 2,500,000 0

622,583 (Previous Year Nil) Reliance RegularSavings Fund - Growth Option 10 7,501,738 0

300,000 (Previous Year Nil) Templeton IndiaIncome Opportunities Fund 10 3,000,000 0- Growth Option

500,000 (Previous Year Nil) Reliance FixedHorizon Fund - Growth Option 10 5,000,000 0

500,000 (Previous Year Nil) Sundaram BNPParibas FTP 367 days - Growth Option 10 5,000,000 0

500,000 (Previous Year Nil) HDFC FMP 18MOctober 2009 - Growth Option 10 5,000,000 0

500,000 (Previous Year Nil) HDFC FMP 14MMarch 2010 - Growth Option 10 5,000,000 0

500,000 (Previous Year Nil) HDFC FMP 13MMarch 2010 - Growth Option 10 5,000,000 0

- (Previous Year 250,000) Franklin IndiaSmaller Companies Fund-Dividend Option 10 0 2,500,000

- (Previous Year 250,000) Kotak FlexiFund Of Fund - Dividend Option 10 0 2,500,000

TTTTTotal of Lotal of Lotal of Lotal of Lotal of Long Tong Tong Tong Tong Term Mutual Ferm Mutual Ferm Mutual Ferm Mutual Ferm Mutual Fundsundsundsundsunds 38,001,738 5,000,000

TTTTTotal of Lotal of Lotal of Lotal of Lotal of Long Tong Tong Tong Tong Term - Unquoted Investmentserm - Unquoted Investmentserm - Unquoted Investmentserm - Unquoted Investmentserm - Unquoted Investments 139,365,104 73,980,470

TTTTTotal of Lotal of Lotal of Lotal of Lotal of Long Tong Tong Tong Tong Term Investmentserm Investmentserm Investmentserm Investmentserm Investments 140,977,585 75,592,951

CURRENT INVESTMENTS - QUOCURRENT INVESTMENTS - QUOCURRENT INVESTMENTS - QUOCURRENT INVESTMENTS - QUOCURRENT INVESTMENTS - QUOTEDTEDTEDTEDTEDIn FIn FIn FIn FIn Fully paid Equity Shares - Other than Tully paid Equity Shares - Other than Tully paid Equity Shares - Other than Tully paid Equity Shares - Other than Tully paid Equity Shares - Other than Traderaderaderaderade

411 (Previous Year Nil) Areva T&D India Ltd 2 124,308 0

420 (Previous Year 54) Bharti Airtel Ltd 5 176,636 29,967

293 (Previous Year Nil) Bilcare Ltd 10 128,405 0

1,030 (Previous Year 1,250) CholamandalamDBS Finance Ltd 10 143,136 177,390

5,087 (Previous Year Nil) DCW Ltd 2 100,297 0

100 (Previous Year Nil) DQ Entertainment(International) Ltd 10 8,000 0

546 (Previous Year Nil) Escorts India Ltd 10 42,464 0

482 (Previous Year Nil) Federal Bank Ltd 10 130,391 0

Contd..

In Rupees


30



101 (Previous Year Nil) Greaves Cotton Ltd 10 20,773 0

841 (Previous Year Nil) Harrisons Malayalam Ltd 10 93,207 0

634 (Previous Year Nil) Hindustan OilExploration Company Ltd 10 178,850 0

907 (Previous Year 1,355) IRB InfrastructureDevelopers Ltd 10 107,717 196,561

652 (Previous Year Nil) Max India Ltd 2 124,954 0

946 (Previous Year Nil) Motherson Sumi Systems Ltd 1 75,728 03,966 (Previous Year Nil) Nagarjuna Fertilizers &

Chemicals Ltd 10 131,552 0

1,317 (Previous Year 1,047) Network 18 Media &Investments Ltd 5 342,526 314,507

2,238 (Previous Year Nil) NHPC Ltd 10 80,568 0

227 (Previous Year Nil) NTPC Ltd 10 48,151 0

239 (Previous Year 257) OnMobile Global Ltd 10 126,420 135,006

146 (Previous Year Nil) Solar Industries India Ltd 10 58,284 0

2,887 (Previous Year 4,100) Suven Life Sciences Ltd 1 115,012 164,760163 (Previous Year 163) United Breweries Limited 1 42,400 42,400

- (Previous Year 524) Cairn India Ltd 10 0 82,723

- (Previous Year 11) GMR Infrastructure Ltd 2 0 503

- (Previous Year 37) Housing Development &Infrastructure Ltd 10 0 29,695

- (Previous Year 263) ICICI Bank Ltd 10 0 71,849

- (Previous Year 1,307) Infrastructure

Development Finance Company Ltd 10 0 66,636

- (Previous Year 805) MIC Electronics Ltd 10 0 62,474

- (Previous Year 97) Power Grid Corporation

of India Ltd 10 0 5,120

- (Previous Year 908) Punj Lloyd Ltd 2 0 93,333

- (Previous Year 322) SimplexInfrastructures Ltd 2 0 215,309

TTTTTotal of Current Investment in Sharesotal of Current Investment in Sharesotal of Current Investment in Sharesotal of Current Investment in Sharesotal of Current Investment in Shares 2,399,778 1,688,234

Less: Provision for diminution in value of investments 421,254 901,483

1,978,524 786,751

CURRENT INVESCURRENT INVESCURRENT INVESCURRENT INVESCURRENT INVESTTTTTMENTS - UNQUOMENTS - UNQUOMENTS - UNQUOMENTS - UNQUOMENTS - UNQUOTEDTEDTEDTEDTED

In Shares - Other than TIn Shares - Other than TIn Shares - Other than TIn Shares - Other than TIn Shares - Other than Traderaderaderaderade

18,810 (Previous Year 18,810) Sai RayalaseemaPaper Mills Ltd 10 228,541 228,541

Contd..

In Rupees


31



In Mutual FIn Mutual FIn Mutual FIn Mutual FIn Mutual Funds - Other than Tunds - Other than Tunds - Other than Tunds - Other than Tunds - Other than Traderaderaderaderade

1,575,178 (Previous Year 588,270) LICMFIncome Plus Fund - Growth Option 10 19,446,514 6,900,000

335,838 (Previous Year 506,697) Birla Sun LifeShort Term Fund - Growth Option 10 5,528,064 8,000,000

843,378 (Previous Year 362,628) Kotak FloaterLong Term - Growth Option 10 12,307,070 5,010,123

171,028 (Previous Year Nil) Kotak Bond (Short Term)- Growth Option 10 3,000,000 0

415,842 (Previous Year Nil) Kotak QuarterlyInterval Plan - Series 1 - Growth Option 10 5,000,000 0

425,499 (Previous Year Nil) Kotak QuarterlyInterval Plan - Series 3 - Growth Option 10 5,000,000 0

465,751 (Previous Year Nil) Birla Sun Life DynamicBond Fund - Growth Option 10 7,000,000 0

481,162 (Previous Year Nil) Birla Sun Life MediumTerm Plan - Growth Option 10 5,000,000 0

317,856 (Previous Year Nil) Birla Sun Life FloatingRate Fund - Growth Option 10 5,000,000 0

4,503 (Previous Year Nil) Templeton India ShortTerm Income - Growth Option 1,000 8,000,000 0

730,902 (Previous Year Nil) TATA Floater Fund- Growth Option 10 10,025,788 0

157,765 (Previous Year Nil) SBI - Magnum InstaCash Fund Liquid Floater Plan-Growth Option 10 2,500,000 0

- (Previous Year 323,590) LIC Liquid Fund- Growth Option -

(Previous Year 220,336) HDFC Cash 10 0 5,200,000Management Fund-Treasury Advantage Plan 10 0 4,200,000- Growth Option

- (Previous Year 565,656) HDFC HighInterest Fund - Growth Option 10 0 9,500,000

TTTTTotal of Current Investments Unquotedotal of Current Investments Unquotedotal of Current Investments Unquotedotal of Current Investments Unquotedotal of Current Investments Unquoted 88,035,977 39,038,664

TTTTTotal of Current Investmentsotal of Current Investmentsotal of Current Investmentsotal of Current Investmentsotal of Current Investments 90,014,501 39,825,415

TTTTTotal Investmentsotal Investmentsotal Investmentsotal Investmentsotal Investments 230,992,086 115,418,366

Contd..

In Rupees


32



In Rupees

Quoted InvestmentsQuoted InvestmentsQuoted InvestmentsQuoted InvestmentsQuoted InvestmentsAggregate Amount - At Cost 4,012,259 3,300,715Market Value 30,707,701 6,931,465Unquoted Investments - Mutual FUnquoted Investments - Mutual FUnquoted Investments - Mutual FUnquoted Investments - Mutual FUnquoted Investments - Mutual Fundsundsundsundsunds

Aggregate Amount 125,809,174 43,810,123Repurchase Value 127,776,721 43,148,009

Unquoted Investments - Other than Mutual FUnquoted Investments - Other than Mutual FUnquoted Investments - Other than Mutual FUnquoted Investments - Other than Mutual FUnquoted Investments - Other than Mutual FundsundsundsundsundsAggregate Amount - at carrying value 101,591,907 69,209,011

In Rupees

Movements during the yearMovements during the yearMovements during the yearMovements during the yearMovements during the year

PPPPPurchase and sale of Sharesurchase and sale of Sharesurchase and sale of Sharesurchase and sale of Sharesurchase and sale of SharesCairn India Ltd 10 43 10,199Escorts India Ltd 10 965 70,143ICICI Bank Ltd 10 366 274,069Infrastructure Development Finance Company Ltd 10 562 80,945ITC Ltd 1 857 171,779Motherson Sumi Systems Ltd 1 114 8,971Reliance Capital Ltd 10 62 62,334Reliance Industries Ltd 10 65 149,824Suzlon Energy Ltd 2 1017 121,268Tata Steel Ltd 10 41 18,781

PARTICULARS Face No. of CostValue Shares


33


Particulars As at As at31.03.2010 31.03.2009


INVEINVEINVEINVEINVENTNTNTNTNTORIESORIESORIESORIESORIESPoultry for Live Stock Breeding 114,078,134 90,871,079Work-in-process 41,269,022 23,845,053Raw material and packing material 10,274,281 9,153,749By products 3,545 9,157Trading goods 56,558 243,421Consumables, Stores and spares 3,684,459 2,599,484




SUNDSUNDSUNDSUNDSUNDRY DEBTRY DEBTRY DEBTRY DEBTRY DEBTORS (Unsecured)ORS (Unsecured)ORS (Unsecured)ORS (Unsecured)ORS (Unsecured)Debts outstanding for a periodexceeding six months

Considered good 66,741 55,242Considered doubtful 1,645,013 1,645,013

Other debtsConsidered good 2,794,462 4,328,105

4,506,216 6,028,360Less : Provision for doubtful debts 1,645,013 1,645,013




CACACACACASH AND BANK BALANCESSH AND BANK BALANCESSH AND BANK BALANCESSH AND BANK BALANCESSH AND BANK BALANCESCash on Hand (includes Cheques on hand and 2,872,490 986,139

Remittances in Transit Rs.16,89,682;Previous Year Rs.4,88,540)

Balances with scheduled banksin current accounts 20,357,762 12,320,316in dividend accounts 1,424,063 1,239,366in deposit accounts 12,611,364 5,111,464


In Rupees


34




OOOOOTHER CURRENT ATHER CURRENT ATHER CURRENT ATHER CURRENT ATHER CURRENT ASSETSSSETSSSETSSSETSSSETSDeposits 6,315,062 6,135,051Interest accrued 2,263,803 1,863,963Other receivables 657,186 757,689




LLLLLOANS AOANS AOANS AOANS AOANS AND ADVND ADVND ADVND ADVND ADVANCESANCESANCESANCESANCES(Unsecured, Considered good unless

otherwise stated)Loans

SecuredConsidered Good 6,829,265 5,844,961Considered Doubtful 2,778,237 3,278,237

UnsecuredConsidered Good 6,850,411 6,072,186Considered Doubtful 5,121,152 5,121,152

21,579,065 20,316,536Less: Provision for doubtful loans 7,900,000 6,800,000

13,679,065 13,516,536Advances recoverable in cash or in kind

or for value to be received 19,562,073 9,886,998

Advances for Capital Items 11,000,000 56,386,000

Share Application Money 15,180,000 14,680,000


In Rupees


35




CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESSundry Creditors

Others (other than Micro and Small Enterprises) 54,454,364 45,218,662Advances from Customers 151,301,837 70,119,371Unclaimed Dividend* 1,424,063 1,239,365Other Liabilities 1,681,076 1,355,694


* These figures do not include any amounts, due and outstanding, to be credited to InvestorEducation and Protection Fund.



PROPROPROPROPROVISVISVISVISVISIONSIONSIONSIONSIONSProvision for Income Tax (net of taxes paid) 3,572,485 1,829,259Provision for Corporate Dividend Tax 4,025,753 1,647,750Provision for Gratuity 11,166,808 8,634,659Provision for Leave Encashment 3,017,399 2,187,855Provision for diminution in value of Investments 0 400,000Proposed Dividend 24,238,750 9,695,500


In Rupees


36

SCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PSCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTART OF THE PROFIT AND LOSS ACCOUNTART OF THE PROFIT AND LOSS ACCOUNTART OF THE PROFIT AND LOSS ACCOUNTART OF THE PROFIT AND LOSS ACCOUNT

For the For theParticulars Year Ended Year Ended

31.03.2010 31.03.2009


OOOOOTHER INCOMETHER INCOMETHER INCOMETHER INCOMETHER INCOME

DividendDividendDividendDividendDividendFrom current non trade investments 9,117 715,895From long term trade investments 295,334 295,334From long term non trade investments 7,000 928,409

Interest on:Interest on:Interest on:Interest on:Interest on:Loans 2,152,134 2,687,617(Tax deducted at source Rs.1,15,311Previous year Rs.3,00,418)

Deposits 53,194 69,605(Tax deducted at source Rs.3,272Previous year Rs.5,669)

On Non Convertible Debentures 1,024,298 0(Tax deducted at source Rs.1,02,430Previous year Rs.Nil)

Others 1,019,154 1,082,754(Tax deducted at source Rs.2,304Previous year Rs.'NIL')

4,248,780 3,839,976Income from Partnership Firm 382,896 616,126

Profit / (Loss) on Sale/Redemption ofInvestments (Net)- Current Investments 3,835,801 (5,597,332)- Long Term Investments 67,105 (7,646,925)

3,902,906 (13,244,257)

Commission 3,516,233 3,050,225Profit on sale of Fixed Assets 823,109 195,168Provision for Investments no longer required

written back 880,229 2,100,000Miscellaneous income 1,994,004 2,950,026


In Rupees


37



31.03.2010 31.03.2009


MANUFMANUFMANUFMANUFMANUFACTURINGACTURINGACTURINGACTURINGACTURING, F, F, F, F, FARM ANDARM ANDARM ANDARM ANDARM ANDOOOOOTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSESTHER EXPENSES

Chicks purchased 57,755,339 54,576,277Raw material and packing material consumed 569,626,279 428,642,675Bird rearing and egg hatching charges 2,333,995 2,376,163Stores and spares consumed 19,701,694 15,577,509Payments to and provision for employees:

Salaries, wages and other benefits 94,297,619 66,380,415Contribution to provident and other funds 3,133,834 2,589,221Staff welfare expenses 1,917,818 1,415,925

99,349,271 70,385,561

Heat, light and power 35,352,180 27,301,587Repairs to:

Buildings 1,733,343 1,113,887Machinery 15,112,200 6,139,103Others 4,037,764 2,062,064

20,883,307 9,315,054Rent 1,110,124 1,071,828Rates and taxes 10,234,998 2,795,826Insurance 1,315,594 1,276,520Freight and handling 16,922,447 12,829,179Professional Charges 4,443,844 4,009,564Business Promotion expenses 2,855,000 18,136Travelling and conveyance 3,689,403 4,017,307Vehicle expenses 8,956,550 7,820,720Contribution to trade associations 20,595,800 15,820,897Bad Debts written off 0 71,096Provision for bad and doubtful debts 0 193,972Provision for bad and doubtful loans 1,100,000 0Provision for diminution in value ofCurrent Investments 0 901,483Loss on sale / discarded assets 184,591 551,839Miscellaneous expenses 11,709,914 10,702,350


In Rupees


38



31.03.2010 31.03.2009


DECREADECREADECREADECREADECREASE / (INCREASE / (INCREASE / (INCREASE / (INCREASE / (INCREASE) IN STSE) IN STSE) IN STSE) IN STSE) IN STOCKOCKOCKOCKOCKOpening Stock

Poultry for Live Stock Breeding 90,871,079 89,850,144Work-in-process 23,845,053 25,138,015By products 9,157 12,242Trading Goods 243,421 649,114


Closing StockPoultry for Live Stock Breeding 114,078,134 90,871,079Work-in-process 41,269,022 23,845,053By products 3,545 9,157Trading Goods 56,558 243,421


DECREADECREADECREADECREADECREASE/(INCREASE/(INCREASE/(INCREASE/(INCREASE/(INCREASE) IN STSE) IN STSE) IN STSE) IN STSE) IN STOCKOCKOCKOCKOCK (40,438,549) 680,805

In Rupees


39

NONONONONOTES FORMING PTES FORMING PTES FORMING PTES FORMING PTES FORMING PART OF THE ACCOUNTSART OF THE ACCOUNTSART OF THE ACCOUNTSART OF THE ACCOUNTSART OF THE ACCOUNTS

SCHEDULE - 15 : SCHEDULE - 15 : SCHEDULE - 15 : SCHEDULE - 15 : SCHEDULE - 15 : NONONONONOTES TTES TTES TTES TTES TO THE ACCOUNTSO THE ACCOUNTSO THE ACCOUNTSO THE ACCOUNTSO THE ACCOUNTS

11111 SIGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIESSIGNIFICANT ACCOUNTING POLICIES

iiiii Basis for PBasis for PBasis for PBasis for PBasis for Preparation of Accountsreparation of Accountsreparation of Accountsreparation of Accountsreparation of Accounts

The financial statements have been prepared under the historical cost convention on accrualbasis to comply in all material aspects and inaccordance with generally accepted accountingprinciples in India and the relevant provisions of the Companies Act, 1956. The accountingpolicies have been consistently applied by the Company unless otherwise stated.

iiiiiiiiii RRRRRecognition of Recognition of Recognition of Recognition of Recognition of Revenue and Expenditureevenue and Expenditureevenue and Expenditureevenue and Expenditureevenue and Expenditurea Revenues/Incomes and Costs/Expenditures are generally accounted on accrual, as they are

earned or incurred.b Revenue from sale of goods is recognised when significant risks and rewards of

ownership are transferred to the customer.c Income from services rendered is accounted as per contractual terms with the parties

concerned.d Interest income is recognised on a time proportion basis taking into account the amount

outstanding and the applicable rate of interest.e Dividend Income is accounted for in the year in which it is declared.

iiiiiiiiiiiiiii Use of EstimatesUse of EstimatesUse of EstimatesUse of EstimatesUse of EstimatesThe preparation of financial statements requires estimates and assumptions to be made thataffect the reporting amount of assets and liabilities on the date of the financial statements andthe reported amount of revenues and expenses during the reporting period. Difference betweenactual results and estimates are recongnised in the period in which the results are known/materialised.

iviviviviv FFFFFixed Assetsixed Assetsixed Assetsixed Assetsixed AssetsTangible Assetsa Fixed assets have been stated at cost less accumulated depreciation.b Depreciation has been provided on assets acquired upto 31st March, 1993 on Written

Down Value method and on assets acquired thereafter on Straight Line method at the ratesand in the manner specified in Schedule XIV of the Companies Act, 1956.

Intangible Assetsa Intangible Assets are stated at cost less accumulated amortisation. These are amortised

over a period based on the expected future economic benefits flowing from such assets.b ERP Software is being amortised on a straight line basis over a period of five years.

vvvvv InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestments are classified into current and long-term investments. Current Investments arestated at the lower of cost and fair value. Long term investments are stated at cost. However,provision for diminution is made to recognise a decline, other than temporary, in the value oflong-term investments.

vivivivivi InventoriesInventoriesInventoriesInventoriesInventories

Inventories are valued as follows:Poultry for Live Stock Breeding At CostWork-in-process At lower of cost and net realisable valueRaw and packing material At lower of cost and net realisable valueTrading goods At lower of cost and net realisable valueBy products At lower of cost and net realisable valueStores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined onFirst-in First-out basis.


40

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing theinventories to their present location and condition.

viiviiviiviivii Employee BenefitsEmployee BenefitsEmployee BenefitsEmployee BenefitsEmployee Benefits

aaaaa Short term employee benefits:Short term employee benefits:Short term employee benefits:Short term employee benefits:Short term employee benefits:

Undiscounted value of short term employee benefits such as salaries, wages, short termcompensated absences, bonus, exgratia and performance incentives are recognised asexpense in the period in which the employees render the related service.

bbbbb PPPPPost Employment Benefitsost Employment Benefitsost Employment Benefitsost Employment Benefitsost Employment Benefits

Defined Contribution plans:Defined Contribution plans:Defined Contribution plans:Defined Contribution plans:Defined Contribution plans:

Contribution to defined contribution plans being Employee Provident Fund, Employee StateInsurance, Employee Pension Schemes and Labour Welfare Fund are recognised in theprofit and loss account during the period in which the employees render the related services.

Defined Benefit Plans:Defined Benefit Plans:Defined Benefit Plans:Defined Benefit Plans:Defined Benefit Plans:

Liabilities in respect of defined benefit plans being Gratuity and Leave encashment aredetermined based on an actuarial valuation using the projected unit credit method. Actuarialgains or losses are recognised immediately in the Profit and Loss account.

viiiviiiviiiviiiviii FFFFForeign Exchange Toreign Exchange Toreign Exchange Toreign Exchange Toreign Exchange Transactionsransactionsransactionsransactionsransactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date ofthe transaction. All monetary assets and liabilities relating to foreign currency transactions remainingunsettled at the end of the year are translated at the year-end rate and the difference intranslation and realised gains and losses on foreign exchange ransactions are recognised in theProfit & Loss Account.

ixixixixix TTTTTaxes on Incomeaxes on Incomeaxes on Incomeaxes on Incomeaxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulationsapplicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxableincome and accounting income, originating in one period and expected to reverse in subsequentperiods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that havebeen enacted or substantively enacted as on the Balance Sheet date.

xxxxx Segment RSegment RSegment RSegment RSegment Reportingeportingeportingeportingeporting

The Company's operations mainly comprises breeding of layers and broilers and trading inpoultry and poultry related products. These activities constitute the primary segment i.e.,Poultry Operations.

xixixixixi LLLLLeaseseaseseaseseaseseases

The Company's significant leasing arrangements are in respect of operating leases for premiseslike operational units, offices, residences etc. These leases which are not non-cancellableare generally for more than 11 months, or for longer periods and are usually renewable bymutual consent on mutually agreeable terms. The aggregate lease rentals payable are chargedas Rent to Profit and Loss Account.

xiixiixiixiixii Earnings PEarnings PEarnings PEarnings PEarnings Per Shareer Shareer Shareer Shareer ShareBasic Earnings Per Share is calculated by dividing the net profit or loss for the period attributableto equity share holders by the weighted average number of equity shares outstanding during theperiod.For the purpose of calculating the diluted earnings per share, the net profit or loss for the periodattributable to equity share holders and the weighted average number of shares outstandingduring the period are adjusted for the effects of all dilutive potential equity shares.


41

xiiixiiixiiixiiixiii Impairment of AssetsImpairment of AssetsImpairment of AssetsImpairment of AssetsImpairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whetherthere is any indication of impairment. If any such an indication exists, then the carrying valueis reduced to the higher of the net selling price or the value in use. The value in use is thepresent value of estimated future net income expected from use of the asset.

xivxivxivxivxiv PPPPProvisions / Contingent Liabilitiesrovisions / Contingent Liabilitiesrovisions / Contingent Liabilitiesrovisions / Contingent Liabilitiesrovisions / Contingent Liabilities

Provisions are recognised, when the Company has a present legal or constructive obligation, asa result of past events, for which it is probable that an out flow of economic benefits will berequired to settle the obligation and a reliable estimate can be made for the amount of theobligation. The disclosure is made for all present or possible obligations that may but probablywill not require outflow as contingent liability in the finanical statements.

As atAs atAs atAs atAs at As at31.03.201031.03.201031.03.201031.03.201031.03.2010 31.03.2009in Rupeesin Rupeesin Rupeesin Rupeesin Rupees in Rupees

22222 Contingent LiabilitiesContingent LiabilitiesContingent LiabilitiesContingent LiabilitiesContingent Liabilities

a. In respect of Income Tax matters 623,485623,485623,485623,485623,485 2,118,397

b. In respect of Electricity Demands 85,10785,10785,10785,10785,107 85,107

c. Claims against Company not acknowledged as debts 00000 1,522,000

33333 Estimated amount of contracts remaining to be executedon capital account and not provided for (net of advances). 14,448,54014,448,54014,448,54014,448,54014,448,540 9,949,475

44444 Bonus SharesBonus SharesBonus SharesBonus SharesBonus Shares

On 24th May 2010, the Board of Directors, in pursuance of approval granted by the shareholdersthrough postal ballot dated 12th May 2010, alloted 48,47,750 equity shares of Rs.10 each as bonusshares in the ratio of 1:1 by capitalizing an amount of Rs.4,84,77,500 from share premium account.

55555 Earnings per ShareEarnings per ShareEarnings per ShareEarnings per ShareEarnings per Share

Net Profit attributable to equity shareholdersProfit after tax (Rs.) 123,713,376 123,713,376 123,713,376 123,713,376 123,713,376 9,181,035Weighted average of Number of Shares 4,847,750 4,847,750 4,847,750 4,847,750 4,847,750 4,847,750

Basic Earnings per share (Rs.)Basic Earnings per share (Rs.)Basic Earnings per share (Rs.)Basic Earnings per share (Rs.)Basic Earnings per share (Rs.) 25.52 25.52 25.52 25.52 25.52 1.89Face Value per share (Rs.) 10.00 10.00 10.00 10.00 10.00 10.00Weighted average of Number of Shares asadjusted for bonus issue 4,847,750 4,847,750 4,847,750 4,847,750 4,847,750 4,847,750Total Shares outstanding including bonus shares 9,695,500 9,695,500 9,695,500 9,695,500 9,695,500 9,695,500

Diluted Earnings per share (Rs.)Diluted Earnings per share (Rs.)Diluted Earnings per share (Rs.)Diluted Earnings per share (Rs.)Diluted Earnings per share (Rs.) 12.76 12.76 12.76 12.76 12.76 0.95Face Value per share (Rs.) 10.0010.0010.0010.0010.00 10.00

For the purpose calculating diluted earnings per share the net profit or loss for the period attributableto equity shareholders and weighted average number of shares outstanding during the period(including previous years' figures) are adjusted for the effects of all dilutive potential equity shareswhich include the subsequent issue of bonus shares as mentioned above.

66666 Employee BenefitsEmployee BenefitsEmployee BenefitsEmployee BenefitsEmployee BenefitsAs per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as definedin the Accounting Standard are given below:1.1.1.1.1. Defined ContributionsDefined ContributionsDefined ContributionsDefined ContributionsDefined Contributions

Payments and provisions for employees include Rs.32,17,221 (previous year Rs.27,14,145)recognised as expense in respect of defined contribution plans.


42

2.2.2.2.2. Defined Benefit PlansDefined Benefit PlansDefined Benefit PlansDefined Benefit PlansDefined Benefit PlansThe assumptions and other disclosures relating to the Actuarial Valuation of Gratuity and Leaveencashment are as under:

In RupeesPPPPParticularsarticularsarticularsarticularsarticulars GratuityGratuityGratuityGratuityGratuity LLLLLeave Encashmenteave Encashmenteave Encashmenteave Encashmenteave Encashment

As At 31.03.10As At 31.03.10As At 31.03.10As At 31.03.10As At 31.03.10 As at 31.03.09 As at 31.03.10As at 31.03.10As at 31.03.10As at 31.03.10As at 31.03.10 As at 31.03.09

aaaaa Change in present value ofChange in present value ofChange in present value ofChange in present value ofChange in present value ofobligationobligationobligationobligationobligationPresent Value of Obligation atbeginning of period 8,634,6598,634,6598,634,6598,634,6598,634,659 7,917,409 1,804,9811,804,9811,804,9811,804,9811,804,981 1,852,239Interest cost 592,789592,789592,789592,789592,789 611,571 124,394124,394124,394124,394124,394 145,843Current Service Cost 1,480,2071,480,2071,480,2071,480,2071,480,207 791,734 770,497770,497770,497770,497770,497 692,757Past Service Cost - (Vested Benefits) 1,922,5501,922,5501,922,5501,922,5501,922,550 – ––––– –Benefits Paid (332,477)(332,477)(332,477)(332,477)(332,477) (545,546) (55,846)(55,846)(55,846)(55,846)(55,846) (58,404)Actuarial (gain)/loss on obligation (1,130,920)(1,130,920)(1,130,920)(1,130,920)(1,130,920) (140,509) (319,003)(319,003)(319,003)(319,003)(319,003) (827,454)Present Value of Obligation atend of period 11,166,8081,166,8081,166,8081,166,8081,166,808 8,634,659 2,325,0232,325,0232,325,0232,325,0232,325,023 1,804,981

bbbbb Changes in fair value of plan assetsChanges in fair value of plan assetsChanges in fair value of plan assetsChanges in fair value of plan assetsChanges in fair value of plan assetsFair Value of Plan Assets atbeginning of period - ––––– – ––––– –Expected Return on Plan Assets ––––– – ––––– –Contributions 332,477332,477332,477332,477332,477 545,546 55,84655,84655,84655,84655,846 58,404Benefit Paid (332,477)(332,477)(332,477)(332,477)(332,477) (545,546) (55,846)(55,846)(55,846)(55,846)(55,846) (58,404)Actuarial gain/(loss) on plan assets ––––– – ––––– –Fair Value of Plan Assets at endof period ––––– – ––––– –

ccccc FFFFFair Vair Vair Vair Vair Value of Plan Assetsalue of Plan Assetsalue of Plan Assetsalue of Plan Assetsalue of Plan AssetsFair Value of Plan Assets atbeginning of period ––––– – ––––– –Actual Return on Plan Assets ––––– – ––––– –Contributions 332,477332,477332,477332,477332,477 545,546 55,84655,84655,84655,84655,846 58,404Benefit Paid (332,477)(332,477)(332,477)(332,477)(332,477) (545,546) (55,846)(55,846)(55,846)(55,846)(55,846) (58,404)Fair Value of Plan Assets at endof period ––––– – ––––– –Funded Status (includingunrecognised past service cost) (11,166,808)(11,166,808)(11,166,808)(11,166,808)(11,166,808) (8,634,659) (2,325,023)(2,325,023)(2,325,023)(2,325,023)(2,325,023) (1,804,981)Excess of actual over estimatedreturn on Plan Assets ––––– – ––––– –

ddddd Past Service Cost RecognisedPast Service Cost -(non vested benefits) ––––– – ––––– –Past Service Cost -(vested benefits) 1,922,5501,922,5501,922,5501,922,5501,922,550 – ––––– –Average remaining future servicetill vesting of the benefit ––––– – ––––– –Recognised Past Service Cost -non vested benefits ––––– – ––––– –Recognised Past Service Cost -vested benefits ––––– – ––––– –Unrecognised Past Service Cost -non vested benefits – – ––––– –


43

eeeee Amounts to be recognized in thebalance sheet and statement ofprofit & loss accountPresent Value of Obligation atend of period 11,166,80811,166,80811,166,80811,166,80811,166,808 8,634,659 2,325,0232,325,0232,325,0232,325,0232,325,023 1,804,981Fair Value of Plan Assets atend of period ––––– – ––––– –Funded Status (11,166,808)(11,166,808)(11,166,808)(11,166,808)(11,166,808) (8,634,659) (2,325,023)(2,325,023)(2,325,023)(2,325,023)(2,325,023) (1,804,981)Unrecognized ActuarialGain/(Loss) ––––– – ––––– –Net Asset/(Liability) recognized inthe balance sheet (11,166,808)(11,166,808)(11,166,808)(11,166,808)(11,166,808) (8,634,659) (2,325,023)(2,325,023)(2,325,023)(2,325,023)(2,325,023) (1,804,981)

fffff Expense recognised in the statementof P & L A/c.Current Service Cost 1,480,2071,480,2071,480,2071,480,2071,480,207 791,734 770,497770,497770,497770,497770,497 692,757Interest Cost 592,789592,789592,789592,789592,789 611,571 124,394124,394124,394124,394124,394 145,843Past Service Cost -(non vested benefits) ––––– – ––––– –Past Service Cost - (vested benefits) 1,922,5501,922,5501,922,5501,922,5501,922,550 – ––––– –Expected Return on Plan Assets ––––– – ––––– –Net Actuarial (Gain) / Lossrecognised for the period (1,130,920)(1,130,920)(1,130,920)(1,130,920)(1,130,920) (140,509) (319,003)(319,003)(319,003)(319,003)(319,003) (827,454)Expense recognised in thestatement of P & L A/c. 2,864,6262,864,6262,864,6262,864,6262,864,626 1,262,796 575,888575,888575,888575,888575,888 11,146

ggggg Movements in the Liabilityrecognised in Balance SheetOpening Net Liability 8,634,6598,634,6598,634,6598,634,6598,634,659 7,917,409 1,804,9811,804,9811,804,9811,804,9811,804,981 1,852,239Expenses as above 2,864,6262,864,6262,864,6262,864,6262,864,626 1,262,796 575,888575,888575,888575,888575,888 11,146Contribution paid (332,477)(332,477)(332,477)(332,477)(332,477) (545,546) (55,846)(55,846)(55,846)(55,846)(55,846) (58,404)Closing Net Liability 11,166,80811,166,80811,166,80811,166,80811,166,808 8,634,659 2,325,0232,325,0232,325,0232,325,0232,325,023 1,804,981

Assumptions Mortality LIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) Ult LIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) UltLIC(1994-96) UltDiscount Rate 8.20%8.20%8.20%8.20%8.20% 7.00% 8.20%8.20%8.20%8.20%8.20% 7.00%Rate of increase incompensation 8.00%8.00%8.00%8.00%8.00% 8.00% 8.00%8.00%8.00%8.00%8.00% 8.00%Rate of return (expected) onplan assets NNNNN.A.A.A.A.A N.A NNNNN.A.A.A.A.A N.AAttrition rate 6.00%6.00%6.00%6.00%6.00% 8.00% 6.00%6.00%6.00%6.00%6.00% 8.00%Maximum Limit for Gratuity (Rs. Lakhs) 10.0010.0010.0010.0010.00 3.50 ––––– –

Note: The estimate of future salary increases, considered in actuarial valuation, takes into accountinflation, seniority, promotion and other relevant factors, such as supply and demand in theemployment market.

In Rupees

PPPPParticularsarticularsarticularsarticularsarticulars GratuityGratuityGratuityGratuityGratuity LLLLLeave Encashmenteave Encashmenteave Encashmenteave Encashmenteave Encashment

As At 31.03.10As At 31.03.10As At 31.03.10As At 31.03.10As At 31.03.10 As at 31.03.09 As at 31.03.10As at 31.03.10As at 31.03.10As at 31.03.10As at 31.03.10 As at 31.03.09


44

TTTTTax effectax effectax effectax effectax effect As at As at As at As at As at As at2009-20102009-20102009-20102009-20102009-2010 31.03.201031.03.201031.03.201031.03.201031.03.2010 31.03.2009

77777 Deferred TDeferred TDeferred TDeferred TDeferred TaxaxaxaxaxDeferred Tax LiabilityDepreciation 3,026,0003,026,0003,026,0003,026,0003,026,000 (33,423,000) (33,423,000) (33,423,000) (33,423,000) (33,423,000) (36,449,000)

3,026,0003,026,0003,026,0003,026,0003,026,000 (33,423,000) (33,423,000) (33,423,000) (33,423,000) (33,423,000) (36,449,000)Deferred Tax AssetEmployees' Retirement Benefits 1,016,0001,016,0001,016,0001,016,0001,016,000 4,838,000 4,838,000 4,838,000 4,838,000 4,838,000 3,822,000Provision for doubtful loans / debts 300,000300,000300,000300,000300,000 3,170,0003,170,0003,170,0003,170,0003,170,000 2,870,000Unabsorbed Losses (682,000)(682,000)(682,000)(682,000)(682,000) 473,000473,000473,000473,000473,000 1,155,000Other Items 1,024,0001,024,0001,024,0001,024,0001,024,000 1,580,0001,580,0001,580,0001,580,0001,580,000 556,000

1,658,0001,658,0001,658,0001,658,0001,658,000 10,061,00010,061,00010,061,00010,061,00010,061,000 8,403,000Release / Net Deferred Tax Liability 4,684,000 4,684,000 4,684,000 4,684,000 4,684,000 (23,362,000) (23,362,000) (23,362,000) (23,362,000) (23,362,000) (28,046,000)

88888 RELARELARELARELARELATED PTED PTED PTED PTED PARTY TRANSACTIONSARTY TRANSACTIONSARTY TRANSACTIONSARTY TRANSACTIONSARTY TRANSACTIONSNAMES OF ANAMES OF ANAMES OF ANAMES OF ANAMES OF ASSOCIASSOCIASSOCIASSOCIASSOCIATED COMPTED COMPTED COMPTED COMPTED COMPANIESANIESANIESANIESANIES

Srinivasa Foods and Feeds Private Limited, Varuna Hatcheries Private Limited, SHL Foods PrivateLimited and Srikrishnadeveraya Hatcheries Private Limited.

NAMES OF ANAMES OF ANAMES OF ANAMES OF ANAMES OF ASSOCIASSOCIASSOCIASSOCIASSOCIATED FIRMSTED FIRMSTED FIRMSTED FIRMSTED FIRMSM/s SHL Ventures

NAMES OF KEY MANAGEMENT PERSONNELNAMES OF KEY MANAGEMENT PERSONNELNAMES OF KEY MANAGEMENT PERSONNELNAMES OF KEY MANAGEMENT PERSONNELNAMES OF KEY MANAGEMENT PERSONNELSri C.Jagapati Rao, Sri C.Suresh Rayudu, Dr.K.Somi Reddy and Sri K.Ashok Reddy

NAMES OF RELANAMES OF RELANAMES OF RELANAMES OF RELANAMES OF RELATIVES OF KEY MANAGEMENT PERSONNELTIVES OF KEY MANAGEMENT PERSONNELTIVES OF KEY MANAGEMENT PERSONNELTIVES OF KEY MANAGEMENT PERSONNELTIVES OF KEY MANAGEMENT PERSONNELMrs.C.Mangayamma, Mrs.E.Padmaja, Mrs.P.Usha Lakshmi and Mrs.C.Anuradha

In Rupees

Nature of TNature of TNature of TNature of TNature of Transactionransactionransactionransactionransaction AssociatesAssociatesAssociatesAssociatesAssociates KKKKKeyeyeyeyey RRRRRelativeselativeselativeselativeselatives TTTTTotalotalotalotalotalManagementManagementManagementManagementManagement

PPPPPersonnelersonnelersonnelersonnelersonnel

Purchase of Goods 334,859,248 0 0 334,859,248(268,131,204) (0) (0) (268,131,204)

Purchase of Fixed Assets 0 0 0 0(35,000) (0) (0) (35,000)

Sale of Goods 8,647,032 0 0 8,647,032(14,815,158) (0) (0) (14,815,158)

Sale of Fixed Assets 0 0 0 0(300,000) (0) (0) (300,000)

Services Rendered 1,593,776 0 0 1,593,776(701,370) (0) (0) (701,370)

Services Utilised 1,587,719 0 0 1,587,719(2,056,002) (0) (0) (2,056,002)

Rents paid 72,000 111,600 418,500 602,100(72,000) (93,000) (406,800) (571,800)

Rents received 31,500 0 0 31,500(31,500) (0) (0) (31,500)

Remuneration paid to Directors 0 21,068,641 576,456 21,645,0970 (4,097,175) (124,564) (4,221,739)

In Rupees


45

Investment 0 0 0 0(7,500,000) (0) (0) (7,500,000)

Profit earned in a Partnership Firm 382,896 0 0 382,896(616,126) (0) (0) (616,126)

Balances as at 31.03.2010:- Creditors 8,756,637 0 0 8,756,637

(3,513,395) (0) (0) (3,513,395)- Advances 2,841,224 0 0 2,841,224

(0) (0) (0) (0)- Investment 58,518,366 0 0 58,518,366

(58,135,470) (0) (0) (58,135,470)

Note: Previous year figures are given in bracketsAs atAs atAs atAs atAs at As at

31.03.201031.03.201031.03.201031.03.201031.03.2010 31.03.2009RupeesRupeesRupeesRupeesRupees Rupees

99999 Details of investment in PDetails of investment in PDetails of investment in PDetails of investment in PDetails of investment in Partnership Fartnership Fartnership Fartnership Fartnership Firm:irm:irm:irm:irm:Name of the Firm - SHL Venturesa Total capital of the firm 138,949,801138,949,801138,949,801138,949,801138,949,801 134,363,330b Names and profit sharing ratio of each

partner are as under:Srinivasa Hatcheries Limited 10%10%10%10%10% 10%Sri C Jagapati Rao 15%15%15%15%15% 15%Sri C Suresh Rayudu 15%15%15%15%15% 15%Smt C Mangayamma 10%10%10%10%10% 10%Smt E Padmaja 15%15%15%15%15% 15%Smt P Usha Lakshmi 15%15%15%15%15% 15%Chitturi Enterprises Private Limited 5%5%5%5%5% 5%Jagapati Finance Private Limited 10%10%10%10%10% 10%Corporate Leasing Private Limited 5%5%5%5%5% 5%

1010101010 Advances to Companies under the same management :Advances to Companies under the same management :Advances to Companies under the same management :Advances to Companies under the same management :Advances to Companies under the same management :Srinivasa Foods and Feeds Private Limited 00000 0Maximum amount outstanding at any time during the year 9,748,4599,748,4599,748,4599,748,4599,748,459 0

Varuna Hatcheries Private Limited 2,841,224 2,841,224 2,841,224 2,841,224 2,841,224 0Maximum amount outstanding at any time during the year 2,841,224 2,841,224 2,841,224 2,841,224 2,841,224 1,466,202

1111111111 Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and MediumEnterprises. Accordingly, information relating to disclosure under the Act has been given only to theextent such information is readily available with the Company. This information has been relied uponby the auditors.

1212121212 The Company has a standing cash credit facility of Rs.10 crores from ICICI Bank Ltd, with pari passucharge on the Company's books debts, stocks and on the movable fixed assets as security. Furthera cash credit facilty of Rs.10 crores from HDFC Bank was sanctioned during the year secured by paripassu charge on all the Stocks, Book Debts and movable Plant & Machinery of the Company. Thereare no outstanding balances of the above cash credit facilities as on 31.03.2010.

Nature of TNature of TNature of TNature of TNature of Transactionransactionransactionransactionransaction AssociatesAssociatesAssociatesAssociatesAssociates KKKKKeyeyeyeyey RRRRRelativeselativeselativeselativeselatives TTTTTotalotalotalotalotalManagementManagementManagementManagementManagement

PPPPPersonnelersonnelersonnelersonnelersonnel

In Rupees


46

2009-20102009-20102009-20102009-20102009-2010 2008-2009RupeesRupeesRupeesRupeesRupees Rupees

1313131313 Managerial remuneration included inManagerial remuneration included inManagerial remuneration included inManagerial remuneration included inManagerial remuneration included inSalaries, WSalaries, WSalaries, WSalaries, WSalaries, Wages and other benefits *ages and other benefits *ages and other benefits *ages and other benefits *ages and other benefits *i)i)i)i)i) Salary 3,830,4003,830,4003,830,4003,830,4003,830,400 2,150,400

Commission 18,644,10318,644,10318,644,10318,644,10318,644,103 1,612,677Sitting Fees 220,000220,000220,000220,000220,000 180,000Perquisites 659,961659,961659,961659,961659,961 632,349

TTTTTOOOOOTTTTTALALALALAL 23,354,46423,354,46423,354,46423,354,46423,354,464 4,575,426

* Exclusive of Provision in respect of retirement benefits which are based on acturial valuation doneon overall company basis.

ii)ii)ii)ii)ii) Computation of Commission to DirectorsProfit before tax 187,769,376187,769,376187,769,376187,769,376187,769,376 15,377,035Add: Managerial remuneration 23,354,46423,354,46423,354,46423,354,46423,354,464 4,575,426

Loss on assets sold 24,15824,15824,15824,15824,158 278,870 Loss on Lost/discarded assets 160,433160,433160,433160,433160,433 272,969

211,308,431211,308,431211,308,431211,308,431211,308,431 20,504,300

Less: Profit on sale of assets 823,109823,109823,109823,109823,109 195,168 Profit/ (Loss) on sale / redemption of Investments (Net) 3,902,906 3,902,906 3,902,906 3,902,906 3,902,906 (13,244,257)

Net profit as per Sec.349 of the Companies Act,1956 206,582,416206,582,416206,582,416206,582,416206,582,416 33,553,389Commission to :

Whole time Directors 16,578,28016,578,28016,578,28016,578,28016,578,280 1,277,143 Other Directors 2,065,8242,065,8242,065,8242,065,8242,065,824 335,534

1414141414 Miscellaneous expenses include paymentsMiscellaneous expenses include paymentsMiscellaneous expenses include paymentsMiscellaneous expenses include paymentsMiscellaneous expenses include paymentsmade to Auditors towards:made to Auditors towards:made to Auditors towards:made to Auditors towards:made to Auditors towards:

Audit Fee 248,175248,175248,175248,175248,175 248,175Fee for Audit under the Income-Tax Act, 1961 110,300110,300110,300110,300110,300 110,300Fee for Certification and other services 82,72582,72582,72582,72582,725 82,725Reimbursement of expenses 35,97935,97935,97935,97935,979 53,291(Fee is inclusive of Service Tax)

TTTTTOOOOOTTTTTALALALALAL 477,179477,179477,179477,179477,179 494,491

1515151515 Interest includes:Interest includes:Interest includes:Interest includes:Interest includes:Interest paid other than on fixed period loans 112,465112,465112,465112,465112,465 0

2009-102009-102009-102009-102009-10 2008-09Unit QuantityQuantityQuantityQuantityQuantity RupeesRupeesRupeesRupeesRupees Quantity Rupees

1616161616 i) Licensed capacityChicks Nos.Nos.Nos.Nos.Nos. -N A-N A-N A-N A-N A----- -N A-

ii) Installed capacityChicks Nos.Nos.Nos.Nos.Nos. 70,162,20070,162,20070,162,20070,162,20070,162,200 70,162,200(As certified by themanagement and notverified by the Auditors,being a technical matter)

iii) Actual production**Chicks Nos.Nos.Nos.Nos.Nos. 64,939,73964,939,73964,939,73964,939,73964,939,739 61,077,789

** Includes chicks hatched for others and excludes chicks produced at other hatcheries.


47


1717171717 Break-up of TBreak-up of TBreak-up of TBreak-up of TBreak-up of TurnoverurnoverurnoverurnoverurnoverManufacturing & Trading items :Chicks Nos.Nos.Nos.Nos.Nos. 52,713,54252,713,54252,713,54252,713,54252,713,542 759,256,098759,256,098759,256,098759,256,098759,256,098 44,876,791 569,898,028Hatching Eggs Nos.Nos.Nos.Nos.Nos. 22,190,59822,190,59822,190,59822,190,59822,190,598 328,406,462328,406,462328,406,462328,406,462328,406,462 15,425,578 123,457,535Commercial Eggs Nos.Nos.Nos.Nos.Nos. 6,263,0846,263,0846,263,0846,263,0846,263,084 7,771,1197,771,1197,771,1197,771,1197,771,119 5,813,318 5,742,936Culls Nos.Nos.Nos.Nos.Nos. 1,121,9621,121,9621,121,9621,121,9621,121,962 130,374,828130,374,828130,374,828130,374,828130,374,828 1,301,425 127,319,712Vaccines DosesDosesDosesDosesDoses 3,840,5003,840,5003,840,5003,840,5003,840,500 840,787840,787840,787840,787840,787 14,595,500 3,741,448Miscellaneous NumerousNumerousNumerousNumerousNumerous – – – – – 5,431,3675,431,3675,431,3675,431,3675,431,367 – 7,477,515Bird rearing and Egg

hatching charges ––––– 1,593,7761,593,7761,593,7761,593,7761,593,776 – – – – – 701,370

TTTTTOOOOOTTTTTALALALALAL 1,233,674,4371,233,674,4371,233,674,4371,233,674,4371,233,674,437 838,338,544

1818181818 PPPPParticulars of opening stockarticulars of opening stockarticulars of opening stockarticulars of opening stockarticulars of opening stock

Manufacturing & Trading items :Hatching eggs Nos.Nos.Nos.Nos.Nos. 3,857,4693,857,4693,857,4693,857,4693,857,469 23,845,05323,845,05323,845,05323,845,05323,845,053 4,404,079 22,498,788Commercial Broilers Nos.Nos.Nos.Nos.Nos. 00000 00000 68,483 2,790,860Culls Nos.Nos.Nos.Nos.Nos. 139139139139139 13,77213,77213,77213,77213,772 1,235 104,487Commercial Eggs Nos.Nos.Nos.Nos.Nos. 24,79724,79724,79724,79724,797 10,16010,16010,16010,16010,160 35,774 13,100Vaccines DosesDosesDosesDosesDoses 1,479,5001,479,5001,479,5001,479,5001,479,500 228,646228,646228,646228,646228,646 1,273,500 392,136


1919191919 PPPPParticulars of closing stockarticulars of closing stockarticulars of closing stockarticulars of closing stockarticulars of closing stock

Manufacturing & Trading items :Hatching eggs Nos.Nos.Nos.Nos.Nos. 6,236,4886,236,4886,236,4886,236,4886,236,488 41,269,02241,269,02241,269,02241,269,02241,269,022 3,857,469 23,845,053Culls Nos.Nos.Nos.Nos.Nos. 395395395395395 44,74744,74744,74744,74744,747 139 13,772Commercial Eggs Nos.Nos.Nos.Nos.Nos. 20,82020,82020,82020,82020,820 4,4984,4984,4984,4984,498 24,797 10,160Vaccines DosesDosesDosesDosesDoses 36,00036,00036,00036,00036,000 10,85810,85810,85810,85810,858 1,479,500 228,646


2020202020 PPPPParticulars in respect of goods purchased for Tarticulars in respect of goods purchased for Tarticulars in respect of goods purchased for Tarticulars in respect of goods purchased for Tarticulars in respect of goods purchased for Trading:rading:rading:rading:rading:

Chicks Nos.Nos.Nos.Nos.Nos. 5,727,1695,727,1695,727,1695,727,1695,727,169 89,736,59089,736,59089,736,59089,736,59089,736,590 3,623,147 53,499,333Hatching Eggs Nos.Nos.Nos.Nos.Nos. 112,980112,980112,980112,980112,980 1,672,4331,672,4331,672,4331,672,4331,672,433 0 0Commercial Eggs Nos.Nos.Nos.Nos.Nos. 763,564763,564763,564763,564763,564 300,737300,737300,737300,737300,737 689,835 289,825Culls Nos.Nos.Nos.Nos.Nos. 862,969862,969862,969862,969862,969 88,420,66388,420,66388,420,66388,420,66388,420,663 822,218 70,888,083Vaccines DosesDosesDosesDosesDoses 2,434,0002,434,0002,434,0002,434,0002,434,000 562,845562,845562,845562,845562,845 14,843,000 3,373,025Miscellaneous NumerousNumerousNumerousNumerousNumerous ––––– 347,776347,776347,776347,776347,776 – 0



48


2121212121 PPPPParticulars in respect ofarticulars in respect ofarticulars in respect ofarticulars in respect ofarticulars in respect ofConsumption of RConsumption of RConsumption of RConsumption of RConsumption of Raw materialsaw materialsaw materialsaw materialsaw materialsand packing materials:and packing materials:and packing materials:and packing materials:and packing materials:Feed & Feed Ingredients MMMMM.T.T.T.T.Tonsonsonsonsons 18,48018,48018,48018,48018,480 282,100,529282,100,529282,100,529282,100,529282,100,529 17,226 223,443,857Hatching eggs Nos.Nos.Nos.Nos.Nos. 29,799,78429,799,78429,799,78429,799,78429,799,784 232,110,274232,110,274232,110,274232,110,274232,110,274 27,124,435 153,646,603Vaccines and medicines NumerousNumerousNumerousNumerousNumerous 42,218,20742,218,20742,218,20742,218,20742,218,207 39,583,669Packing material NumerousNumerousNumerousNumerousNumerous 12,723,44912,723,44912,723,44912,723,44912,723,449 11,451,838Miscellaneous NumerousNumerousNumerousNumerousNumerous 473,820473,820473,820473,820473,820 516,708


2222222222 VVVVValue of Indigenous goods,alue of Indigenous goods,alue of Indigenous goods,alue of Indigenous goods,alue of Indigenous goods,stores & spares consumedstores & spares consumedstores & spares consumedstores & spares consumedstores & spares consumed

Imported goods 18.41%18.41%18.41%18.41%18.41% 3,627,1153,627,1153,627,1153,627,1153,627,115 9.42% 1,467,804Indigenous goods 81.59%81.59%81.59%81.59%81.59% 16,074,57916,074,57916,074,57916,074,57916,074,579 90.58% 14,109,705

TTTTTOOOOOTTTTTALALALALAL 19,701,69419,701,69419,701,69419,701,69419,701,694 15,577,50915,577,50915,577,50915,577,50915,577,509

2323232323 i)i)i)i)i) CIFCIFCIFCIFCIF V V V V Value of Importsalue of Importsalue of Importsalue of Importsalue of ImportsCapital Goods 1,800,1731,800,1731,800,1731,800,1731,800,173 3,721,990

ii)ii)ii)ii)ii) Expenditure in FExpenditure in FExpenditure in FExpenditure in FExpenditure in Foreign Currencyoreign Currencyoreign Currencyoreign Currencyoreign CurrencyTravelling Expenses 911,099911,099911,099911,099911,099 1,310,865Others 665,414665,414665,414665,414665,414 898,206


2424242424 Earnings in FEarnings in FEarnings in FEarnings in FEarnings in Foreign Exchangeoreign Exchangeoreign Exchangeoreign Exchangeoreign Exchange NILNILNILNILNIL NIL

2525252525 Previous year's figures have been regrouped /reclassified, wherever necessary to conform to thecurrent year's classification.


For SSSSS. DAGA AND CO. DAGA AND CO. DAGA AND CO. DAGA AND CO. DAGA AND CO FFFFFor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of DirectorsChartered Accountants(F. No.000669S)


Place : Hyderabad DR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDY V K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARDated : 27-05-2010 JOINT MANAGING DIRECTOR COMPANY SECRETARY


49

BALANCE SHEET ABSTRACT AND COMPBALANCE SHEET ABSTRACT AND COMPBALANCE SHEET ABSTRACT AND COMPBALANCE SHEET ABSTRACT AND COMPBALANCE SHEET ABSTRACT AND COMPANYANYANYANYANY’S GENERAL BUSINESS PROFILE’S GENERAL BUSINESS PROFILE’S GENERAL BUSINESS PROFILE’S GENERAL BUSINESS PROFILE’S GENERAL BUSINESS PROFILEPART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956IIIII RRRRRegistration Detailsegistration Detailsegistration Detailsegistration Detailsegistration Details

Registration No. L 0 1 2 2 2 A P 1 9 7 8 P L C 0 0 2 2 9 7

Balance Sheet 3 1 0 3 2 0 1 0

Date Month Year

State Code 0 1

IIIIIIIIII Capital RCapital RCapital RCapital RCapital Raised during the year (Amount in Rs. Thousands)aised during the year (Amount in Rs. Thousands)aised during the year (Amount in Rs. Thousands)aised during the year (Amount in Rs. Thousands)aised during the year (Amount in Rs. Thousands)

Public Issue N I L Rights Issue N I L

Bonus Issue N I L Private N I LPlacements

IIIIIIIIIIIIIII PPPPPosition of Mobilisation and Deployment of Fosition of Mobilisation and Deployment of Fosition of Mobilisation and Deployment of Fosition of Mobilisation and Deployment of Fosition of Mobilisation and Deployment of Funds ( Amount in Rs. Thousands )unds ( Amount in Rs. Thousands )unds ( Amount in Rs. Thousands )unds ( Amount in Rs. Thousands )unds ( Amount in Rs. Thousands )

TTTTTotal Liabilitiesotal Liabilitiesotal Liabilitiesotal Liabilitiesotal Liabilities 9 4 8 0 0 1 TTTTTotal Assetsotal Assetsotal Assetsotal Assetsotal Assets 9 4 8 0 0 1Source of fundsSource of fundsSource of fundsSource of fundsSource of funds

Paid up Capital 4 8 5 3 5 Reserves and 6 2 1 2 2 2Surplus

Secured Loans N I L Unsecured N I L Loans

Application of FApplication of FApplication of FApplication of FApplication of Fundsundsundsundsunds

Net Fixed 4 0 8 3 9 5 Investments 2 3 0 9 9 2Assets

Net Current 2 3 2 6 8 Misc. N I LAssets Expenditure

Accumulated N I L Deferred Tax - 2 3 3 6 2Losses

IVIVIVIVIV PPPPPerformance of the Company(Amount in Rs.Thousands)erformance of the Company(Amount in Rs.Thousands)erformance of the Company(Amount in Rs.Thousands)erformance of the Company(Amount in Rs.Thousands)erformance of the Company(Amount in Rs.Thousands)

Turnover 1 2 4 9 7 3 4 Total 1 0 6 1 9 6 4(Total Income) Expenditure

Profit / Loss + 1 8 7 7 6 9 Profit / Loss + 1 2 3 7 1 3before Tax after tax

(Please tick Appropriate box +for profit , - for Loss)

Earning 2 5 . 5 2 Dividend % * 2 5 %per share in Rs. *Recommended

VVVVV Generic name of Three PGeneric name of Three PGeneric name of Three PGeneric name of Three PGeneric name of Three Principal Principal Principal Principal Principal Products/Services of the Company (as per monetary terms)roducts/Services of the Company (as per monetary terms)roducts/Services of the Company (as per monetary terms)roducts/Services of the Company (as per monetary terms)roducts/Services of the Company (as per monetary terms)

Item Code 1 0 5 9 1 0 0(ITC Code)

Product O N E D A Y O L D

Description C O M M E R C I A L C H I C K S

FFFFFor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directorsor and on behalf of the Board of Directors

C JAGAPC JAGAPC JAGAPC JAGAPC JAGAPAAAAATI RAOTI RAOTI RAOTI RAOTI RAO C SURESH RAC SURESH RAC SURESH RAC SURESH RAC SURESH RAYUDUYUDUYUDUYUDUYUDUEXECUTIVE CHAIRMAN VICE-CHAIRMAN &

MANAGING DIRECTOR

Place : Hyderabad DR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDYDR K SOMI REDDY V K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARV K MURALI MANOHARDated : 27.05.2010 JOINT MANAGING DIRECTOR COMPANY SECRETARY


50

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51

SRINIVASA HATCHERIES LIMITED

Registered Office: "Srinivasa House", Plot No. 1028,Road No. 45, Jubilee Hills, Hyderabad-500033 A.P., India.

Tel: 23555388, Fax:+9140-23555377 email: [email protected] Shareholder(s), Date: 27.05.2010

RRRRReeeee: P: P: P: P: Payment of Dividend through Electronic Clearing Service (ECS) / National Electronic Clearing Service (NECS)ayment of Dividend through Electronic Clearing Service (ECS) / National Electronic Clearing Service (NECS)ayment of Dividend through Electronic Clearing Service (ECS) / National Electronic Clearing Service (NECS)ayment of Dividend through Electronic Clearing Service (ECS) / National Electronic Clearing Service (NECS)ayment of Dividend through Electronic Clearing Service (ECS) / National Electronic Clearing Service (NECS)

It has always been our endeavour to extend the best possible services to our shareholders. As an aid for the same,we would strongly recommend that you avail the Electronic Clearing Service (ECS) / National Electronic ClearingService (NECS) which had been introduced by the Reserve Bank of India (RBI), initially in the Metro Cities and whichhas now been extended to other cities where RBI and SBI has clearing centres. Under this system dividend payableto you, is directly credited to a bank account designated by you. No physical instruments are issued and informationis electronically passed on to the RBI through our bankers. Upon receiving this information your bank would directlycredit your account and indicate credit entry as "ECS / NECS" in your passbook / bank statement and intimation of"ECS / NECS" would also be sent to you separately. Therefore, with this facility, problems faced due to loss in transit,frauds, postal delays etc. would be avoided.

We would like to draw your attention to Circular No. DCC/FITTCIR-3/2001 issued by SEBI, vide which the Companiesare advised to mandatorily use ECS / NECS facility for distributing dividends, or other cash benefits etc. to the investorsin areas where ECS / NECS facility is available. In the absence of availability of ECS / NECS facility, the Companiesmay use warrant for distributing the dividends.

In case if ECS / NECS facility is not made available to you by the Company at a particular centre, the dividendamount payable to you would be remitted by means of dividend warrant which will be posted to your address withthe particulars of bank viz. name of the bank, Account No. etc. furnished by you, duly incorporated on it.

Shareholders holding shares in dematerialised form are hereby informed that as per the above referred SEBI'scircular, the Company will send dividend amount for credit into Shareholders' bank account through "ECS / NECS"wherever Bank particulars and MICR details are made available to them in the Beneficial Ownership Position providedby NSDL and CDSL for the purpose of dividend payment.

Further, such Shareholders i.e. who are holding their shares in dematerialised mode are requested to provide theBank details/changes, if any, only to the Depository Participant (D.P.) with whom demat account is maintained. In thisIn thisIn thisIn thisIn thiscase details / changes intimated to the Company or our Share Tcase details / changes intimated to the Company or our Share Tcase details / changes intimated to the Company or our Share Tcase details / changes intimated to the Company or our Share Tcase details / changes intimated to the Company or our Share Transfer Agent namely M/s. CIL Securitiesransfer Agent namely M/s. CIL Securitiesransfer Agent namely M/s. CIL Securitiesransfer Agent namely M/s. CIL Securitiesransfer Agent namely M/s. CIL SecuritiesLimited will not be consideredLimited will not be consideredLimited will not be consideredLimited will not be consideredLimited will not be considered.....

Shareholders holding shares in physical form and who wish to avail of this facility are requested to fill in the formgiven overleaf and return the same along with a photocopy of the cheque pertaining to the Bank Account wherethey would like the amount to be credited. Such form should be received by M/s. CIL Securities Limited, 214,Raghava Ratna Towers, Chirag Ali Lane, Abids, Hyderabad-500001., A.P. Registrar and Share Transfer Agent of theCompany on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010 so as to enable them to arrange to credit the future dividend entitlementto Shareholders Account through ECS / NECS. This arrangement is subject to RBI guidelines issued from time to time.

Bank PBank PBank PBank PBank Particularsarticularsarticularsarticularsarticulars

Shareholders holding shares in physical form and who do not wish to opt for ECS / NECS facility or located in aplace where such facility is not available are requested to inform to our Registrars M/s. CIL Securities Limited, 214,Raghava Ratna Towers, Chirag Ali Lane, Abids, Hyderabad-500001., A.P. only the name and a/c. no. of their bank,on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010on or before 7th July, 2010 in the format provided overleaf.

Such particulars will be incorporated on the dividend warrant to avoid any fraudulent encashment.

Please note that these ECS / NECS instructions will supersede the mandate instructions given earlier by you andnoted in our records.

Yours faithfully,

FOR SRINIVFOR SRINIVFOR SRINIVFOR SRINIVFOR SRINIVAAAAASA HASA HASA HASA HASA HATTTTTCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITEDCHERIES LIMITED

VVVVV.K.K.K.K.K. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHAR. MURALI MANOHARDGM (CORPORATE AFFAIRS) & COMPANY SECRETARY

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52

ELECTRONIC CLEARING SERVICE (ECS) / NATIONAL ELECTRONICCLEARING SERVICE (NECS) / BANK DETAILS MANDATE FORM

ToM/s. CIL Securities LimitedUnit: Srinivasa Hatcheries Limited214, Raghava Ratna Towers,Chirag Ali Lane, Abids,Hyderabad-500 001., A.P.

Dear Sirs,Re: Payment of Dividend

I/We have read the letter dated 27.05.2010 from the Company giving the details of ECS / NECS schemeprinted overleaf.

# I/We wish to participate in the ECS / NECS introduced by Reserve Bank of India.

# I/We do not wish to participate in the ECS / NECS. However, kindly print the bank particulars given belowon the dividend warrant being issued to me.

1. Reg. Folio No. : ____________________________________________________

2. Particulars of Bank : ____________________________________________________

a) Name of the Bank : ____________________________________________________

b) Branch Address : ____________________________________________________

: ____________________________________________________

c) * 9 Digit Code number of theBank & Branch as appearing onthe MICR Cheque issued by the Bank.(Please attach a cancelled cheque / photocopy of cheque)

d) Account Type (Please tick) : Saving Current Cash Credit

e) Ledger Folio No. (if any) : ____________________________________________________of your Bank account.

f) Account No. : ____________________________________________________

I/We hereby declare that the particulars above given are correct and complete. I/We undertake to inform anysubsequent changes in the above particulars before the relevant book closure date(s). If the payment isdelayed or not effected at all for any reason (s), beyond the control of the Company, I/We would not hold theCompany or its Registrar & Share Transfer Agent responsible.

Date : _________________ __________________________________

Signature of the First HolderNote:1. Currently ECS / NECS facility is available at all RBI Locations and Vijayawada and Vizag.2. Please ensure that the details submitted by you are correct as any error therein could result in the

dividend amount being credited to a wrong account.* The nine digit Code number of your Bank & Branch is mentioned on the MICR band next to the Cheque

number.# Delete whichever is not applicable.


53


Registered Office, ‘Srinivasa House’, Plot No : 1028,Road No.45, Jubilee Hills, Hyderabad - 500 033, Andhra Pradesh.

PROXY FORM

Regd.Folio No. *DP ID

No.of Shares held *Client ID

I/We …………………………………………………………………………of………………………...........................

being member/members of SRINIVASA HATCHERIES LIMITED hereby appoint..........………………………….

of.........................................................................or failing him / her ………….........………………………………

of…………………………………………… as my / our proxy to attend and vote for me/us and on my/our

behalf at the 32nd Annual General Meeting of the Members of the Company to be held on Saturday,the 17th day of July, 2010 at 3.30 P.M. at The Country Club, 6-3-1219, Begumpet, Hyderabad-500016.

Signed this ……………………….. Day of…...…………….. 2010

Note: (1) The Proxy need not be a member of the Company(2) The Proxy in order to be effective should be duly stamped, completed and signed and must

be deposited at the Registered Office of the Company not less than 48 hours before the timefor holding the aforesaid meeting.

* Applicable for investors holding shares in electronic form.


Registered Office, ‘Srinivasa House’, Plot No : 1028,Road No.45, Jubilee Hills, Hyderabad - 500 033, Andhra Pradesh.

ATTENDANCE SLIP

32nd Annual General Meeting, 17th July, 2010 at 3.30 pm

Regd.Folio No. *DP ID

No.of Shares held *Client ID

Name of the Member

Name of Proxy

I/We hereby record my/our presence at the 32nd Annual General Meeting of the members of theCompany held on Saturday, the 17th day of July, 2010 at 3.30 P.M. at The Country Club, 6-3-1219,Begumpet, Hyderabad-500016.

SIGNASIGNASIGNASIGNASIGNATURE OF THE MEMBER OR THE PROTURE OF THE MEMBER OR THE PROTURE OF THE MEMBER OR THE PROTURE OF THE MEMBER OR THE PROTURE OF THE MEMBER OR THE PROXY AXY AXY AXY AXY ATTENDING THE MEETINGTTENDING THE MEETINGTTENDING THE MEETINGTTENDING THE MEETINGTTENDING THE MEETING

If Member, please sign here If Proxy, please sign here

Note: This form should be signed and handed over at the Meeting Venue.

*Applicable for investors holding shares in electronic form.

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SRINIVASA HATCHERIES LIMITED - moneycontrol.com · 2008-2009 FD 27.08.2009 02.10.2016 Members who...

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