BOARD OF DIRECTORS · Date : 20.05.2011 DGM (Corporate Affairs) & Company Secretary. THIRTY THIRD ANNUAL REPORT 2010-2011 4 NOTES: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING

SRINIVASA HATCHERIES LIMITED

1

BOARD OF DIRECTORS

Sri C.Jagapati Rao : Executive Chairman

Sri C.Suresh Rayudu : Vice-Chairman & Managing Director

Dr. K.Somi Reddy : Joint Managing Director

Sri K.Ashok Reddy : Whole - Time Director

Dr. T.Krishna Reddy : Director

Smt E.Padmaja : Director

Smt P.Usha Lakshmi : Director

Sri Srikant Jilla : Director

Dr. Y.Sanjay Kumar : Director

Dr. A.Sreenivasa Rao : Director

Sri Vivek Bhargava : Director

Sri Ch.Yugendhar Rao : Director

AUDIT COMMITTEE

Sri.Srikant Jilla : Chairman

Dr. T. Krishna Reddy : Member

Smt E. Padmaja : Member

BANKERS : HDFC Bank Limited,

ICICI Bank Limited and

Andhra Bank

STATUTORY AUDITORS : S. DAGA & CO

Chartered Accountants

403, Paigah Plaza

Basheerbagh

Hyderabad - 500 029 (A.P.)

DGM (Corporate Affairs) & : V.K.Murali MANOHAR

COMPANY SECRETARY

REGISTERED OFFICE : 'SRINIVASA HOUSE'

Plot No. 1028, Road No. 45,

Jubilee Hills, Hyderabad - 500 033 (A.P.)

ADMINISTRATIVE OFFICE : 'SRINIVASA HOUSE'

Door No. 59-13-3, Ramachandranagar,

Vijayawada - 520 008 (A.P.)

REGISTRARS & SHARE : CIL Securities Limited

TRANSFER AGENTS 214, Raghava Ratna Towers

Chirag Ali Lane, Abids,

Hyderabad - 500 001 (A.P.)

Tel.No. 040-23202465

Fax.No. 040-23203028

Email: [email protected]

THIRTY THIRD ANNUAL REPORT 2010-2011

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NOTICE

NOTICE IS HEREBY GIVEN THAT THE THIRTY THIRD

ANNUAL GENERAL MEETING OF THE MEMBERS OF

THE COMPANY WILL BE HELD AT THE COUNTRY CLUB,

BEGUMPET, HYDERABAD-500 016 AT 3.30 P.M ON

WEDNESDAY, THE 27TH DAY OF JULY, 2011 TO

TRANSACT THE FOLLOWING BUSINESS:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Balance

Sheet as at 31st March, 2011 and the Profit &

Loss Account for the year ended as on that

date, together with the Auditor's Report and

Directors' Report thereon.

2. To declare dividend for the year 2010-11.

3. To appoint a Director in place of Sri.K.Ashok

Reddy, who retires by rotation and being eligible

offers himself for re-appointment.

4. To appoint a Director in place of

Smt.E.Padmaja, who retires by rotation and

being eligible offers herself for re-appointment.

5. To appoint a Director in place of Smt.P.Usha

Lakshmi, who retires by rotation and being

eligible offers herself for re-appointment.

6. To appoint Statutory Auditors and to fix their

remuneration and for this purpose to consider

and, if thought fit, to pass with or without

modification(s), the following resolution as an

Ordinary Resolution :

"RESOLVED THAT M/s. S Daga & Company,

Chartered Accountants, Hyderabad be and are

hereby re-appointed as the Auditors of the

Company to hold office from the conclusion

of Thirty Third Annual General Meeting till the

conclusion of Thirty Fourth Annual General

Meeting at a remuneration as may be fixed by

the Board of Directors of the Company".

SPECIAL BUSINESS:

7. REVISION IN REMUNERATION OF SRI.C.SURESH

RAYUDU, VICE-CHAIRMAN & MANAGING

DIRECTOR:

To consider and, if thought fit, to pass with or

without modifications, the following resolution

as an Ordinary Resolution:

"RESOLVED THAT subject to the approval of the

shareholders, permission be and is hereby given

for the increase in remuneration of Sri.C.Suresh

Rayudu, Vice-Chairman & Managing Director

of the Company w.e.f. 01.04.2011, till further

revision, as per the details given hereunder:

1) Monthly Salary : Rs.2,00,000/-

2) Perquisites & Allowances :

i. Medical benefit for self and family:

Any sums paid / payable by the

Managing Director in respect of any

expenditure on the medical treatment

for self, spouse, dependent children

and parents in India.

ii. Medical Insurance Premium:

Payment of medical insurance

premium under the "Mediclaim Plan"



iii. Leave Travel Concession: Full cost of

travel for self, spouse and dependent

parents and children once in a year,

to and from any place in India.

iv. Residential accommodation: Fully

furnished accommodation (in

Company owned premises or leased

premises) in Hyderabad. (hereinafter

referred to as "Company provided

accommodation").

v. Gas, Electricity and Water Charges:

Reimbursement of Gas, Electricity and

Water charges incurred at the

residence.

vi. Telephone: Free use of Company's

telephone installed at the Managing

Director's residence owing to business

needs. However, personal long

distance calls shall be billable by the

Company to the Managing Director.

vii. Club Membership: Payment of Annual

Membership fee of one club including

club attached to Hotels. However,

admission fee and life membership

fee are not covered here.

viii. Car: Provision of car along with

chauffeur.

ix. Others: Such other facilities and

amenities as are applicable to the

Directors / other senior executives of

the Company.


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3) Commission on Profit : 3% (including

monthly salary & perquisites)

8. RE-APPOINTMENT & REVISION IN REMUNERATION

OF DR.K.SOMI REDDY, JOINT MANAGING

DIRECTOR:

To consider and, if thought fit, to pass with or

without modifications, the following resolution

as an Ordinary Resolution:

"RESOLVED THAT subject to the approval of the

shareholders, permission be and is hereby given

for the re-appointment of Dr.K.Somi Reddy as

Joint Managing Director of the Company for a

period of 5 years with retrospective effect from

18.12.2010 and further with increase in

remuneration w.e.f. 01.04.2011 till further

revision".

1) Monthly Salary : Rs.2,00,000/-

2) Perquisites & Allowances

i. Medical benefit for self and family:

Any sums paid / payable by the Joint

Managing Director in respect of any

expenditure on the medical treatment



ii. Medical Insurance Premium:

Payment of medical insurance

premium under the "Mediclaim Plan"



iii. Leave Travel Concession: Full cost of

travel for self, spouse and dependent

children and parents once in a year

to and from any place in India.

iv. Residential accommodation: Fully

furnished accommodation (in

Company owned premises or leased

premises) in Vijayawada. (hereinafter

referred to as "Company provided

accommodation").

v. Gas, Electricity and Water Charges:

Reimbursement of Gas, Electricity and

Water charges incurred at the

residence.

vi. Telephone: Free use of Company's

telephone installed at the Joint

Managing Director's residence owing

to business needs. However, personal

long distance calls shall be billable

by the Company to the JointManaging Director.

vii. Club Membership: Payment of AnnualMembership fee of one club includingclub attached to Hotels. However,admission fee and life membershipfee are not covered here.

viii. Car: Provision of car along withchauffeur.

ix. Others: Such other facilities andamenities as are applicable to theDirectors / other senior executives ofthe Company.

3) Commission on Profit : 2% (includingmonthly salary & perquisites)

9. RE-APPOINTMENT OF SRI.K.ASHOK REDDY,WHOLE-TIME DIRECTOR:

To consider and, if thought fit, to pass with orwithout modifications, the following resolutionas an Ordinary Resolution:

"RESOLVED THAT subject to the approval of theshareholders, permission be and is hereby givenfor the re-appointment of Sri.K.Ashok Reddy asWhole-Time Director of the Company for aperiod of 2 years with retrospective effect from18.12.2010 on the same terms and conditionsas earlier".

10. PAYMENT OF COMMISSION TO NON-EXECUTIVEDIRECTORS:

To consider and, if thought fit, to pass with orwithout modifications, the following resolutionas a Special Resolution:

"RESOLVED THAT in terms of Section 309(4)(b)and other applicable provisions of the

Companies Act, 1956 and in terms of Article

141 of the Articles of Association of the

Company, the Directors of the Company other

than the Executive Directors be paid

remuneration by way of Commission @ 1%

(One Percent) on Net Profits computed in

accordance with the provisions of Section 198

and other applicable provisions of theCompanies Act, 1956 for a period of 5 years

effective from 2010-11.

By Order of the Board

Place : Hyderabad V. K. MURALI MANOHAR

Date : 20.05.2011 DGM (Corporate Affairs) &

Company Secretary


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NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT

THE MEETING IS ENTITLED TO APPOINT A PROXY

TO ATTEND AND VOTE INSTEAD OF HIMSELF/

HERSELF. THE PROXY, SO APPOINTED, NEED NOT

BE A MEMBER OF THE COMPANY. THE PROXY IN

ORDER TO BE EFFECTIVE MUST BE DEPOSITED AT

THE REGISTERED OFFICE OF THE COMPANY NOT

LESS THAN 48 HOURS BEFORE THE

COMMENCEMENT OF THE MEETING.

2. The Explanatory Statement pursuant to Section

173 (2) of the Companies Act, 1956 in respect

of the Special Business as above is annexed

hereunder and the same forms part of this

notice convening the Annual General Meeting.

3. The Register of Members will remain closed from

25.07.2011 to 27.07.2011 (both days inclusive).

The transfer books of the Company will also

remain closed during the aforesaid period.

4. ECS / NECS Facility:

� Shareholders holding shares in Physical

Form and desirous of availing the facility

are requested to complete ECS / NECS

form attached to this Annual Report and

forward the same to the Company's

Registrars and Share Transfer Agent.

� Shareholders holding shares in

Dematerialised Form are requested to

provide the Bank Details to their respective

Depository Participants for incorporation in

their records. The Depository in turn would

forward the required information to the

Company.

5. Members desiring to seek any information/

clarifications on the annual accounts are

requested to write to the Company at least 7

(seven) days before the Annual General

Meeting to enable the management to keep

the information ready.

6. Shareholders / Proxies are requested to bring

their copies of Annual Report and the

attendance slip duly filled in for attending the

meeting. Copies of Annual Reports will not be

provided at the meeting.

7. Pursuant to Section 205A of the Companies

Act, 1956, as amended, the unclaimed

dividend upto the financial year 2002-2003 was

transferred to the Investor Education &

Protection Fund (IEPF) of the Central

Government. The Members may kindly note

that the dividend remaining unclaimed for a

period of seven years shall be transferred by

the Company to the Investor Education &

Protection Fund established by the Central

Government and no claim will be entertained

by the Central Government after such transfer.

The Members who have not encashed their

dividends may kindly note that the dividend for

the following years will be transferred to IEPF on

the dates mentioned against each year:

Period of Dividend % of Last date

dividend for making

declared claim

Dividend for 2003 - 2004 25% 24.09.2011

Dividend for 2004 - 2005 25% 03.10.2012

Dividend for 2005 - 2006 25% 22.10.2013

Interim Dividend 2006 - 2007 25% 22.04.2014

Dividend for 2007 - 2008 25% 05.09.2015

Dividend for 2008-2009 20% 02.10.2016

Dividend for 2009-2010 25% 22.08.2017

Members who have not encashed their

dividend warrants pertaining to these years may

have their warrants revalidated by sending them

to the Registered Office of the Company

immediately and in case the members lost

their Dividend Warrants, they are requested to

write to the Company informing the same and

request for arranging Duplicate Dividend

Warrants.

8. The Company's equity shares are listed on

Bombay Stock Exchange. The Company has

promptly paid annual listing fees to the Stock

Exchange for the year 2011-12.

9. Members who hold shares in demat form are

requested to write their Client ID and DP ID

Nos. and those who hold shares in physical

form are requested to write their Folio number

in the attendance slip before attending the

meeting.

10. Corporate Members intending to send their

Authorised Representatives to attend the

meeting are requested to send a duly certified

copy of the Board Resolution authorising their

representatives to attend and vote at the

Annual General Meeting.


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11. The equity shares of the company have been

activated for dematerialisation with NSDL and

CDSL w.e.f 26.11.2002 and 05.10.2002

respectively. The International Securities

Identification Number (ISIN) allotted to the

Company's equity shares is INE312E01013.

Trading in the equity shares of the Company

through Stock Exchanges was made

compulsory in dematerialised form.

Shareholders are advised to open demat

accounts with any of the Depository Participants

(DPs) of their choice registered with NSDL and

CDSL and convert their physical holding into

electronic holding.

12. Members holding shares in physical form are

requested to notify immediately any change

in their address along with their Folio No. to the

Registrars and Share Transfer Agents of the

Company M/s. CIL Securities Limited, Raghava

Ratna Towers, Chirag Ali Lane, Abids, Hyderabad

- 500 001 (A.P.) or to the Company's Registered

office at 'SRINIVASA HOUSE' Plot No. 1028, Road

No. 45, Jubilee Hills, Hyderabad - 500 033. In

case the shares are held in dematerialised

form, the information should be passed on to

their respective Depository Participants without

any delay.

13. Re-appointment of Directors:

At the ensuing Annual General Meeting,

Sri.K.Ashok Reddy, Smt.E.Padmaja and

Smt.P.Usha Lakshmi, Directors retire by rotation

and being eligible offer themselves for re-

appointment. The information pertaining to

these Directors to be provided in terms of

Clause 49 of the Listing Agreement with the

Stock Exchange is furnished in Corporate

Governance Report.

14. Physical Share Transfers - PAN Copy

Investors are requested to note that in terms of

SEBI Directives, in case of private transactions

involving transfer of shares in physical form of

listed companies, it shall be mandatory for the

transferee(s) to furnish copy of self-attested PAN

Card to the Company/RTAs for registration of

such transfer of shares. Without PAN Card, the

transfer of shares shall not be entertained.

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956

WHICH FORMS PART OF THE NOTICE CONVENING THE ANNUAL GENERAL MEETING:

Item No.7:

Sri C Suresh Rayudu was appointed as the Vice-

Chairman and Managing Director of the company

with effect from 01.04.2009 for a period of Five

years subject to the approval of Shareholders at

the General Meeting. The proposal for increase in

his remuneration w.e.f. 01.04.2011 has been

approved by the Board at its meeting held on

04.02.2011. The details of revision in remuneration

have been given in the resolution hereinabove.

In terms of Section 269 of the Companies Act,

1956, any revision in remuneration in accordance

with Schedule XIII requires the permission of the

Shareholders.

Your Directors recommend the passing of this

resolution as an Ordinary Resolution.

None of the Directors of the Company except Sri

C Jagapati Rao, Executive Chairman, Smt E

Padmaja, Director and Smt P Usha Lakshmi, Director,

being relatives of the proposed appointee, is in

any way interested or concerned in the Resolution.

The proposed resolution as set out in Item No. 7

and this explanatory statement may be treated as

an abstract of the terms and conditions of the

remuneration of Sri.C.Suresh Rayudu, Vice-Chairman

& Managing Director of the Company in terms of

Section 302 of the Companies Act, 1956.

Item No.8:

Dr. K. Somi Reddy was re-appointed as the Joint

Managing Director of the Company at the Board

Meeting held on 4th February, 2011 with revision in

remuneration as given in the resolution hereinabove,

with retrospective effect from 18.12.2010 for a

period of five years subject to the approval of

Shareholders at the General Meeting



6

1956, any appointment or reappointment and

revision in remuneration in accordance with

Schedule XIII requires the permission of the

Shareholders.



None of the Directors of the Company except Sri K.

Ashok Reddy, Whole - Time Director, being relative

of the proposed appointee, is in any way interested

or concerned in the Resolution.



an abstract of the terms and conditions of the

remuneration of Dr. K. Somi Reddy, Joint Managing

Director of the Company in terms of Section 302 of

the Companies Act, 1956.

Item No.9:

Sri K. Ashok Reddy was re-appointed as the Whole

- Time Director of the Company at the Board

Meeting held on 4th February, 2011 with

retrospective effect from 18.12.2010 for a period

of two years subject to the approval of Shareholders

at the General Meeting.


1956, any appointment or reappointment in

accordance with Schedule XIII requires the

permission of the Shareholders.



None of the Directors of the Company except Dr.

K. Somi Reddy, Joint Managing Director, being

relative of the proposed appointee, is in any way

interested or concerned in the Resolution.



an abstract of the terms and conditions of the re-

appointment of Sri K. Ashok Reddy, Whole-Time

Director of the Company in terms of Section 302 of

the Companies Act, 1956.

Item No.10:

It is considered expedient to remunerate the Non-

Executive Directors by way of commission

calculated as a percentage of Net Profits since a

considerable amount of their time, professional

advice will be utilised in the management of the

affairs of the Company.

Section 309 (4) of the Companies Act, 1956

provides for remuneration of Directors other than

Managing / Whole-time Directors by way of

commission on net profits.

All the Directors other than the Executive Directors

are deemed to be interested in passing the Special

Resolution.


resolution as a Special Resolution.

By Order of the Board

Place : Hyderabad V. K. MURALI MANOHAR

Date : 20.05.2011 DGM (Corporate Affairs) &

Company Secretary


7

DIRECTORS' REPORT

To

The Members

Your Directors have pleasure in presenting the 33rd

Annual Report of the Company together with the

Audited Financial Accounts for the year ended 31st

March, 2011.

FINANCIAL RESULTS

(Rupees in Lakhs)

PARTICULARS 2010-11 2009-10

Income from Operations 14310.70 12204.08

Other Income 466.19 160.60

Total Income 14776.89 12364.68

Operating Expenses 11903.03 10486.99

Profit Before Tax 2873.86 1877.69

Add /(Less): Provision for Tax

For the year (938.96) (687.40)

Deferred Tax - Release 18.55 46.84

Profit After Tax 1953.45 1237.13

(Add) /Less:

Provision for tax for

earlier years 2.59 (1.94)

Balance of Profit

brought forward 2277.80 1495.10

Profit Available for

Appropriation 4228.66 2734.17

APPROPRIATIONS:

a) Proposed Dividend 242.39 242.39

b) Corporate

Dividend Tax 39.32 40.26

c) Transfer to General

Reserve 195.35 123.72

d) Transfer to

Contingency

Reserve 50.00 50.00

e) Profit Carried

Forward 3701.60 2277.80

4228.66 2734.17

OPERATIONS & OUTLOOK FOR POULTRY INDUSTRY

The Company's operations witnessed an all round

improvement during the year under review i.e. 2010-

11 in tune with that of the poultry industry. Both the

turnover and profitability have registered significant

growth as compared to that of the previous year.

The improvement in performance during the year

under review is primarily on account of higher price

realization for the Company's products.

The outlook for the current year i.e. 2011-12 may

not witness similar performance as in the previous

year on account of the increased cost of feed

ingredients and low prices for broiler products. It is

hoped that with the expectation of normal monsoon

in the current year, the outlook for the Company is

expected to be stable.

TRANSFER TO RESERVES

The Company proposes to transfer Rs.195.35 lakhs,

for the year ending 31st March, 2011, to the General

Reserve out of the amount available for

appropriations. Further an amount of Rs. 3701.60

lakhs is proposed to be retained in the Profit & Loss

Account for the year ending 31st March, 2011.

DIVIDEND

Your Directors recommend a dividend of Rs. 2.50/-

per equity share (@ 25%) of the face value of

Rs.10/- each for the year 2010-11 which becomes

payable after obtaining the approval from the

shareholders at the ensuing 33rd Annual General

Meeting.

DEMATERIALISATION OF SHARES:

Of the total shares, 16.58% shares have been held

in physical form as of now. Shareholders holding

shares in physical form are once again advised to

dematerialize their shares to avoid the risk

associated with the physical holding of share

certificates and also for facilitating easy liquidity for

shares.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A separate Management Discussion and Analysis

Report is enclosed as Annexure-1 to the Directors'

Report.

CORPORATE GOVERNANCE CODE

As per the requirements of Clause 49 of the Listing

Agreement a separate report on Corporate

Governance along with the certificate issued by

the Company's Statutory Auditors M/s. S.Daga &

Co., Chartered Accountants thereupon is given as

Annexure-2 to the Directors Report.

DIRECTORS

Sri.K.Ashok Reddy, Smt.E.Padmaja and Smt.P.Usha

Lakshmi, Directors retire by rotation at the

forthcoming Annual General Meeting and being

eligible, offer themselves for re-appointment.

AUDITORS

M/s. S. Daga & Co, Chartered Accountants,

Hyderabad, the Company's Statutory Auditors hold

office, in accordance with the provisions of the


8

Companies Act, 1956, upto the conclusion of the

forthcoming Annual General Meeting and are

eligible for reappointment.

INSURANCE

The assets of the Company are adequately insured

against all types of risks. However, in order to meet

any unforeseen risk in respect of the stock of poultry

birds, the Company has created a Contingency

Reserve in lieu of insurance, in line with the decision

taken by the management earlier.

DEPOSITS

Your Company has not invited or accepted any

public deposits during the year 2010-11 and as

such no amount on account of principal or interest

on deposits was outstanding on the date of the

Balance Sheet.

PARTICULARS OF CONSERVATION OF ENERGY,

TECHNOLOGY ABSORPTION AND FOREIGN

EXCHANGE EARNINGS / OUTGO

Information required to be furnished under the

Companies (Disclosures of particulars in the Report

of Board of Directors) Rules, 1988, is furnished below:

A. CONSERVATION OF ENERGY

The operations of your company involve low

energy consumption. Adequate measures

have, however, been taken to conserve the

energy wherever practicable.

B. TECHNOLOGY ABSORPTION : NIL

C. R & D ADOPTION / INNOVATION : NIL

D. R & D EXPENDITURE

� Capital : NIL

� Recurring : NIL

� Total : NIL

� Total R & D Expenditure as a

percentage of total income : NIL

E. (a) FOREIGN EXCHANGE

EARNINGS : NIL

(b) FOREIGN EXCHANGE

OUTGO : Rs.24.42 lakhs

PARTICULARS OF EMPLOYEES

As per the provisions of Section 217(2A) of the

Companies Act, 1956 read with the Companies

(Particulars of Employees) Rules, 1975 as amended

from time to time, there were no particulars to be

furnished since no employee of your company is

drawing remuneration in excess of the prescribed

limits as laid down in the rules.

TRANSFER OF AMOUNTS TO INVESTOR EDUCATION

AND PROTECTION FUND

Pursuant to the provisions of Section 205A(5) of the

Companies Act, 1956, dividends, interest on

debentures and matured debentures which

remained unpaid or unclaimed for a period of 7

years have been transferred by the Company to

the Investor Education and Protection Fund.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant 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 the

year ended 31.03.2011 the applicable

accounting standards have been followed.

2. Appropriate accounting policies have been

applied consistently. Judgment and estimates,

which are reasonable and prudent, have been

made so far as to give a true and fair view of

the state of affairs of the Company as at the

end of the Financial Year and of the profit of

the Company for the period.

3. Proper and sufficient care has been taken for

the maintenance of adequate accounting

records in accordance with the provisions of

the Companies Act, 1956 for safeguarding the

assets of your company and preventing and

detecting fraud and other irregularities.

4. The Annual Accounts have been prepared on

a going concern basis.

ACKNOWLEDGEMENTS

Your Directors place on record their appreciation of

the continued assistance and co-operation

extended to your company by the Company's

Bankers viz. ICICI Bank Limited, HDFC Bank Limited

and Andhra Bank, Government & Semi Government

Authorities, Venkateshwara Hatcheries Group,

National Egg Coordination Committee (NECC), All

India Poultry Development and Services Pvt. Ltd.,

Andhra Pradesh Poultry Federation (APPF) and Bharat

Egg Producers' Association (BEPA), shareholders,

customers, dedicated employees, Share Transfer

Agents and Auditors of the Company and all others

who continue to assist your Company.

for and on Behalf of the Board of Directors

Place : Hyderabad C.JAGAPATI RAO

Date : 20.05.2011 Executive Chairman


9

MANAGEMENT DISCUSSION AND ANALYSIS

REPORT 2010-11

POULTRY INDUSTRY - STRUCTURE AND DEVELOPMENT:

India is one among the prominent players in the world

market for poultry products. It ranks third in egg

production and fourth in broiler production in world

standings. The poultry industry comprising layers and

broilers has recorded a healthy growth during the

year 2010-11.

The Indian economy has been able to sustain its

growth momentum during the year under review at

around 8%, albeit a notch lower than the preceding

year; the poultry industry which forms an important

sector in the economy too has grown, thanks to a

good monsoon, rising income levels and the resultant

impetus to the spending propensity of the consumers.

The industry is labor intensive and employs a large

number of rural workforce and is a potential provider

of gainful employment especially in the rural areas

which form the backbone of the Indian economy.

The poultry operations are reaping the benefits of

innovative practices and technologies. The industry

is now more adaptive and well placed to face

challenges - be it in the form of epidemics or

seasonal vagaries.

OPPORTUNITIES:

The industry looks forward to a phase of exponential

growth in the rural landscape of India where the

consumption levels of poultry products are far lower

than global averages.

Though at a nascent stage, the processed and

packaged applications in poultry products presents

a huge space for value additions.

RISKS, CONCERNS & THREATS:

The major risk area for the industry is on the price

front of major inputs, especially the feed ingredients

that go into the production of feed. While the maize

and soya meal prices were stable during the FY 2011,

the trend is likely to take an adverse turn in the ensuing

year with maize prices bound to escalate by 20%,

notwithstanding the stable outlook for soya meal

prices. The rising exports of maize as witnessed during

the First quarter of FY 2012 is also a cause for concern

for the industry.

This coupled with the spiralling inflationary conditions

is likely to trigger cost push pressures on the

company's margins.

The situation may change for the better depending

on the sufficiency of monsoon for this fiscal.

SEGMENT WISE PERFORMANCE:

The Company has been engaged in the production

of One Day Old Commercial Layer and Broiler Chicks

and the entire operations comes under one segment

only i.e., poultry breeding.

The inherent strengths of the Company in terms of

financial discipline, quality products and responsive

service standards are likely to ensure a reasonable

performance for the ensuing year.

OUTLOOK:

The Company has recorded impressive gains in

volumes and price realizations during the year that

passed by covering layer and broiler markets.

The prospects for Layer market are somewhat stable

while the Broiler market is likely to experience a trough

in volumes and margins due to imbalances in the

demand - supply equation in the current year.

INTERNAL CONTROL SYSTEMS :

The Company has established reasonably sound

system of checks and controls in all operational areas

and at all levels - material procurement, production,

marketing and distribution, finance, administration

and personnel departments. Internal controls have

Annexure – 1


10

been evolved in line with the size of the operations

and organisational requirements are adequate to

protect the enterprise resources. The Company

continues its drive to improve on the information and

control systems. The Audit Committee reviews the

internal audit reports and the adequacy of internal

controls from time to time.

DISCUSSION ON FINANCIAL PERFORMANCE WITH

RESPECT TO OPERATIONAL PERFORMANCE :

The Company has registered a turnover of Rs.147.77

crores as compared to Rs 123.65 crores in the

previous year. The net profit during the year, after

provision for tax amounts to Rs.19.53 crores as

compared to the net profit of Rs.12.37 crores during

the previous year.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES /

INDUSTRIAL RELATIONS FRONT :

The Company has been maintaining cordial relations

with all its employees since inception. The Company

strives to provide congenial atmosphere to the

employees and sets high standards of efficiency and

performance. The Company has 592 employees as

on 31.03.2011.


11

REPORT ON CORPORATE GOVERNANCE FOR THE YEAR 2010-11(Pursuant 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 Revised

Clause-49 of the Listing Agreement as amended by the Stock Exchanges on the direction of Securities and

Exchange Board of India (SEBI). The report on compliance of Corporate Governance specified in Revised

Clause-49 is presented hereunder:

1. COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE

The Company's philosophy on Corporate Governance is concerned with how the Company is run and

the manner in which the Board of Directors discharges its mission and responsibilities to ensure proper

management 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 assumes

greater importance.

2. BOARD OF DIRECTORS

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

As on 31.03.2011, the Board consisted of twelve members. The Composition of and the category

of Directors on the Board of the Company are as under:

Category Details of Director

Promoter 1. Sri C. Jagapati Rao, Executive Chairman (Executive)

Directors 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, Director

Non-Executive 8. Sri.Srikant Jilla, Director

Directors 9. Dr. Y. Sanjay Kumar, Director

10. Dr. A. Sreenivasa Rao, Director

11. Sri Vivek Bhargava, Director

12. Sri C. Yugendhar Rao, Director

Conduct of Board Meetings:

The day-to-day business is conducted by the Senior Managers of the Company under the direction

of the Executive Chairman and Vice-Chairman & Managing Director under the overall supervision

of the Board. The Board holds meetings periodically to review and discuss the performance of the

Company, strategies and other pertinent issues relating to the Company. The Board performs the

following 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 Senior

Management.

Ensure that processes are in place for maintaining the integrity of the Company, the financial

statements, compliance with the law and relationship with customers, suppliers and other

stakeholders.

Delegation of appropriate authority to the Senior Executives of the Company for effective

management of operations.

None of the Directors on the Board are members of more than 10 Committees or Chairman of

more than 5 Committees across all the Companies in which they are Directors.

Annexure – 2


12

(ii & iii) Details of Attendance of each Director at the Board Meetings and the last AGM and details

of other Directorships and Committee Membership:

The attendance of Directors at the Board Meetings and Annual General Meeting (AGM) held

during the year 2010-11 and the details of Directorships and Committee Memberships held by

them are furnished below:

Name of Designation Executive/ No. of the Membership/ No. of Attendance

the Director Non-Executive/ other Chairmanship Board at last

Independent Directorships in Committees Meetings AGM

in other Public of other attended YES(Y)/NO

Companies Companies

Sri C. Jagapati Rao Executive

Chairman Executive 2 – 6 N

Sri C.Suresh Rayudu VC & MD Executive – – 5 Y

Dr. K.Somi Reddy JMD Executive – – 5 Y

Sri K.Ashok Reddy WTD Executive – – 4 Y

Smt E. Padmaja Director Non–Executive – – 6 Y

Smt P.Usha Lakshmi Director Non–Executive – – 3 Y

Dr. T. Krishna Reddy Director Non–Executive &

Independent – – 4 Y

Sri Srikant Jilla Director Non–Executive &


Dr. Y. Sanjay Kumar Director Non–Executive &


Dr. A. Sreenivasa Rao Director Non–Executive &


Sri Vivek Bhargava Director Non–Executive &


Sri C. Yugendhar Rao Director Non–Executive &


Details of Equity shares held by Non-Executive Directors

Name of the Director No. of Equity Shares held as on 31.03.2011

Smt E.Padmaja 92,280

Smt P.Usha Lakshmi 75,870

Dr. T.Krishna Reddy Nil

Sri Srikant Jilla Nil

Dr. Y.Sanjay Kumar Nil

Dr. A.Sreenivasa Rao Nil

Sri Vivek Bhargava Nil

Sri C.Yugendhar Rao Nil


13

ADDITIONAL INFORMATION ON DIRECTORS RETIRING BY ROTATION AND BEING RE-APPOINTED:

1) Brief profile of Sri K. Ashok Reddy, Director who retires by rotation and is eligible for re-appointment.

Sri K. Ashok Reddy who is aged about 37 years has been on the Board of the Company since April,

2000. He is a graduate in Engineering and has completed MS degree in USA. He worked with the

Company as General Manager and was later recruited as Director in the year 2000. He was then

elevated as Whole-Time Director.

He holds Directorship in Srinivasa Foods and Feeds Private Limited, Sri Sauri Agro Private Limited and

Sauri Breeding Farms Private Limited.

2) Brief profile of Smt E Padmaja, Director who retires by rotation and is eligible for re-appointment

Smt E Padmaja who is aged about 46 years has been on the Board of the Company since 1991.

She holds Master's Degree in Business Administration and she has put up over a decade of experience

in Poultry and other businesses.

She also holds Directorship in Jagapati Investments Private Limited, Srinivasa Foods and Feeds

Private Limited, Jagapati Finance Private Limited, Corporate Leasing Private Limited, Chitturi Enterprises

Private Limited, Jaagruthi Foundations Private Limited, Forefront Management Services Private Limited,

Sri Chitturi Agencies Private Limited, Pallavi Perfumes and Cosmetics Private Limited, Sri Srinivasa

Aqua Feeds Private Limited, Varuna Hatcheries Private Limited, Kansas Feeds Private Limited, Sri

krishnadevaraya Hatcheries Private Limited, Sri Jagapati Farms Private Limited, Monisha Sri Durga

Farms Private Limited, Sahiti Farms Private Limited, Mojasa Enterprises Private Limited, PUL Enterprises

Private Limited, Jaagruthi Ventures Private Limited, Edala Infrastructure Private Limited and Edala

Estates Private Limited.

3) Brief profile of Smt P. Usha Lakshmi, Director who retires by rotation and is eligible for re-

appointment

Smt P. Usha Lakshmi who is aged about 35 years has been on the Board of the Company since

1999. She holds Bachelors Degree in Commerce.

She also holds Directorship in Jagapati Investments Private Limited, Jagapati Finance Private Limited,

Corporate Leasing Private Limited, Sri Chitturi Enterprises Private Limited, Jaagruthi Foundations Private

Limited, Forefront Management Services Private Limited, Sugarfield Constructions Private Limited,

PUL Enterprises Private Limited and Mojasa Enterprises Private Limited.

(iv) The details of Board Meetings held during the financial year 2010-2011:

Six Board Meetings were held during the financial year 2010-2011. The time gap between any

two Board Meetings did not exceed four months. The dates on which the said Board Meetings

were held during 2010-11 are as follows:

1. 24.05.2010 2. 27.05.2010

3. 17.07.2010 4. 27.10.2010

5. 15.12.2010 6. 04.02.2011

3. AUDIT COMMITTEE

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

per the Listing Agreement read with Section 292A of the Companies Act, 1956.

(ii) The Audit Committee comprises only of Non-Executive Directors i.e, Sri Srikant Jilla, a Chartered

Accountant as Chairman and Dr. T. Krishna Reddy and Smt E. Padmaja as the members. The

Statutory Auditors, General Manager (Finance) and the Internal Auditor are the permanent invitees

to the Meetings of the Audit Committee. The Company Secretary acts as Secretary to the Audit

Committee.


14

(iii) The Audit Committee met four times in the Financial Year 2010-11 on the following dates:

Sl.No. Date of Meeting Directors Present

1 27.05.2010 Sri Srikant Jilla,Dr. T. Krishna Reddy and Smt.E.Padmaja

2 17.07.2010 Sri.Srikant Jilla, Dr. T. Krishna Reddy and Smt.E.Padmaja

3 27.10.2010 Dr. T. Krishna Reddy and Smt. E. Padmaja

4 04.02.2011 Sri.Srikant Jilla, Dr.T.Krishna Reddy and Smt E. Padmaja

Necessary quorum was present for all the above meetings.

4. REMUNERATION OF DIRECTORS

Presently the Non-Executive Directors do not receive any remuneration from the Company apart from

commission on net profits, if any, and are further paid sitting fees for attending the meetings of the

Board and Committee. The remuneration of Directors is decided by the Board and approved by the

Shareholders.

The details of remuneration paid to the Executive Directors during the financial year 2010-2011 are

given below:

Name of the Director Remuneration in Rs. Commission

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

salary and perks

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

salary and perks

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

salary and perks

Sri K. Ashok Reddy 60,000 P.M Plus Perks 1% Commission on net profits inclusive of

salary and perks

Sri.Srikant Jilla NIL 1% Commission on net profits shared with

other Non-Executive Directors, from the

date of appointment

Dr. T. Krishna Reddy NIL 1% Commission on net profits shared with

other Non-Executive Directors

Smt E. Padmaja NIL 1% Commission on net profits shared with


Smt P. Usha Lakshmi NIL 1% Commission on net profits shared with


Dr. Y. Sanjay Kumar NIL 1% Commission on net profits shared with


Dr. A. Sreenivasa Rao NIL 1% Commission on net profits shared with


Sri Vivek Bhargava NIL 1% Commission on net profits shared with


Sri C. Yugendhar Rao NIL 1% Commission on net profits shared with


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

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.


15

5 SHAREHOLDERS AND INVESTOR GRIEVANCE COMMITTEE

Mr. 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. Murali Manohar is the Compliance Officer. The Committee met 22 times during the year under

review and necessary quorum was present for all the meetings.

During the year under review, 10 complaints and 86 requests were received from the shareholders and

others as per the details given below and all of them have been duly redressed and addressed.

The status of shareholder's complaints / requests during the financial year 2010-2011 is as under:

Sl.No Nature of Complaint / request Received Resolved

1 Change / Correction of Address (Request) 18 18

2 No. of Transfers (Request) 14 14

3 Non-Receipt of Dividend Warrants / Bonus

Share Certificate (Complaint) 10 10

4 Revalidation of Dividend Warrants (Request) 14 14

5 Others (Request for Annual Report /

Change in Bank Account Details, issue of split

certificates, duplicate share certificates etc.) 40 40

Total 96 96

The Complaints received from the shareholders are given top priority and have been attended to on

day-to-day basis.

6. CODE OF CONDUCT:

The Company has a Code of Conduct applicable to the Board Members as well as the Senior

Management. All the Board Members and the Senior Management Personnel have affirmed compliance

with the Code of Conduct as on 31st March, 2011.

7. CEO / CFO CERTIFICATION:

The Managing Director & Chief Executive Officer and Chief Financial Officer have certified to the Board

of Directors, inter alia, the accuracy of financial statements and adequacy of Internal Controls for the

financial reporting purpose.

8. GENERAL BODY MEETINGS

(i) The details of last three Annual General Meetings (AGM) are as follows:

Year Venue Date Time

2009-2010 Country Club, 6-3-1219, Begumpet, 17.07.2010 3.30 P.M.

Hyderabad -500 016.

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.M

Hyderabad -500 016.

(ii) In some of the AGMs during the years as above, certain special resolutions set out in the respective

notices were passed by the shareholders. No EGMs were conducted during the year ending

31.03.2011.

(iii) Postal Ballot has been conducted during the year under review for increasing the authorised share

capital and for issue of bonus shares.

9. DISCLOSURES

(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 the

Company at large. The Related Party Transactions have been disclosed elsewhere in this Annual

Report.


16

(ii) The track record of the Company in handling shareholders' grievances has been very good. There

were no non-compliances by the Company, penalties, strictures imposed on the Company by

Stock Exchange or SEBI or any statutory authority on any matter related to Capital Markets during

the last three financial years.

10. MEANS OF COMMUNICATION

The Company's shares are listed on the Bombay Stock Exchange and the Financial Results on quarterly

/ half-yearly / nine monthly / yearly basis 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 to

Institutional Investors or to the Analysts.

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

11. GENERAL SHAREHOLDER INFORMATION

Sl.No. Item Details

(i) Annual General Meeting - 27.07.2011 (Wednesday)

Date, Time and Venue 3.30 P.M.

Country Club, Begumpet,

Hyderabad-500016, A.P.

(ii) Financial Calendar 2011-2012 (tentative) � Financial Reporting for the First Quarter

ending 30th June, 2011: Last week of July,

2011.

� Financial Reporting for the Second Quarter /

Half year ending 30th September, 2011: Last

week of October, 2011.

� Financial Reporting for the Third Quarter /

Nine months ending 31st December, 2011:

Last week of January, 2012.

� Financial Reporting for the Fourth Quarter /

Year ending 31st March, 2012: Last week of

May, 2012.

(iii) Dates of Book Closure 25.07.2011 to 27.07.2011 (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 2011-12 to BSE has

been paid in time.

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

Corporate Identification Number (CIN) L01222AP1978PLC002297


17

(vii) Market Price Data (BSE)

MONTH LOW (IN RS) HIGH (IN RS)

April, 2010 152.00 187.40

May, 2010 68.10 188.00

June, 2010 70.20 89.00

July, 2010 78.00 142.00

August, 2010 103.60 139.95

September, 2010 101.00 164.90

October, 2010 141.20 170.00

November, 2010 113.00 153.00

December, 2010 113.00 138.90

January, 2011 99.00 129.60

February, 2011 95.00 119.00

March, 2011 90.00 115.00

(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, 23202465

Fax No: 040-55661267

E-mail : [email protected],

(ix) Share Transfer System Shares lodged for Physical Transfer would be

registered within a period of 30 days if the

documents are in order in all respects by the

Share Transfer Agents.

(x) Distribution of Holdings as on 31.03.2011

No. of Shares No. of % of No of % of

From Upto Holders Holders Shares Shares

1 500 2341 79.95 449854 4.64

501 1000 321 10.96 221768 2.29

1001 2000 121 4.13 168815 1.74

2001 3000 47 1.61 121494 1.25

3001 4000 15 0.51 53204 0.55

4001 5000 10 0.34 45338 0.47

5001 10000 23 0.79 162502 1.68

10001 Above 50 1.71 8472525 87.38

2928 100.00% 9695500 100.00%

Shareholding Pattern & Categories of Shareholders as on 31.03.2011

Category No of Shares % of Capital

Promoters

– Individuals 2901090 29.92

– Bodies Corporates 4370100 45.07

Total Promoter Holding (A) 7271190 75.00

Public

– Individuals 2179063 22.47

– Bodies Corporates 245247 2.53

Total Public Holding (B) 2424310 25.00

Total Shareholding (A+B) 9695500 100.00


18

(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.

83.42% of the Company's shares are now heldin electronic form as on 31.03.2011. 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 aroundVijayawada,Visakhapatnam and Hyderabad.

(xiv) Address for Correspondence / SRINIVASA HATCHERIES LIMITEDRegistered Office: 'SRINIVASA HOUSE', Plot No. 1028,

Road No. 45, Jubilee Hills,Hyderabad - 500 033.Phone No. +91-40-67013100/3101/3102Fax No.+91-40-67013104E-mail: [email protected]: www.shgroup.in

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

Shareholders holding shares in Electronic Form should address all their correspondence to their

respective Depository Participants except for dividend related queries.

NON - MANDATORY REQUIREMENTS:

a) Chairman of the Board:

Whether Chairman of the Board is Expenses incurred in performance

entitled to maintain a Chairman's of duties by the Chairman are reimbursed.

office at the Company's expense

and also allowed reimbursement of

expenses incurred in performance of

his duties.

b) Remuneration Committee:

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

not set-up Remuneration Committee.


19

c) Shareholders' Rights:

The half yearly declaration of financial The Company's quarterly / half-yearly / nine

performance including summary of the monthly / yearly results are published in English

significant events in last six months and Telugu newspapers. Hence they are not

should be sent to each household sent to the shareholders.

of shareholders.

d) Audit Qualifications:

There are no qualifications or adverse remarks by the Auditors.

AUDITOR'S REPORT

ON COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

To the shareholders of


We have examined the compliance of conditions

of corporate governance by M/s Srinivasa

Hatcheries Limited, for the year ended on 31st

March, 2011 as stipulated in clause 49 of the Listing

Agreement of the said Company with stock

exchanges.

The compliance of conditions of Corporate

Governance is the responsibil ity of the

management. Our examination was limited to

procedures and implementation thereof, adopted

by the Company for ensuring the compliance of

the conditions of corporate governance. It is neither

an audit nor an expression of opinion on the

financial statements of the Company.

In our opinion and to the best of our information

and according to the explanations given to us, we

certify that the Company has complied in all

material respects with the conditions of corporate

governance as stipulated in the above-mentioned

Listing Agreement.

We state that no investor grievances are pending

for a period exceeding one month against the

Company as per the records maintained by the

Shareholders Grievance Committee.

We further state that such compliance is neither an

assurance as to the future viability of the Company

nor the efficiency or effectiveness with which the

management has conducted the affairs of the

Company.

For S.DAGA & CO.,


(F.No. 000669S)

Place : Hyderabad Shantilal Daga

Date : 20.05.2011 M.No. 11617

Partner


20

DECLARATION ON CODE OF CONDUCT

This is to confirm that the Board has laid down a

Code of Conduct, in terms of the Revised Clause-

49 of the Listing Agreement executed with the Stock

Exchanges, for all the Board Members and Senior

Management Personnel of the Company. It is further

confirmed that all the Directors and Senior

Management Personnel have affirmed their

compliance with the Code of Conduct of the

Company for the financial year ended 31.03.2011.

C.Suresh Rayudu

Place : Hyderabad Vice-Chairman and

Date : 20.05.2011 Managing Director

CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATE

To

The Board of Directors

Srinivasa Hatcheries Limited

Plot No.1028, 'Srinivasa House'

Road No.45, Jubilee Hills

Hyderabad -500 033, A.P.

We, C.Suresh Rayudu, Vice-Chairman and

Managing Director (CEO) and U.Ganesh, GM

(Finance) (CFO), to the best of our knowledge and

belief, certify that:

1. we have reviewed the balance sheet and profit

and loss account and all its schedules and

notes on accounts, as well as the cash flow

statements and the Directors' Report for the

year ending 31st March, 2011

2. these statements do not contain any materially

untrue statement or omit any material fact or

contain statements that might be misleading.

3. these statements together present a true and

fair view of the Company's affairs and are in

compliance with the existing accounting

standards, applicable laws and regulations.

4. there are to the best of our knowledge and

belief, no transactions entered into by the

Company during the financial year 2010-11

which are fraudulent, illegal or violative of the

Company's Code of Conduct.

5. we accept responsibility for establishing and

maintaining internal controls for financial

reporting and have evaluated the effectiveness

of the internal control systems of the Company

pertaining to financial reporting and we have

disclosed to the Auditors and the Audit

Committee, deficiencies in the design or

operation of such internal controls, if any, of

which we are aware and the steps we have

taken or propose to take to rectify these

deficiencies.

6. We have indicated to the Auditors and the

Audit Committee:

i) that there has not been any significant

changes in internal control over financial

reporting during the year;

ii) significant changes in accounting policies

during the year and the same have been

disclosed in the notes to the financial

statements; and

iii) that there has not been any instance of

significant fraud of which we have become

aware and the involvement therein, if any,

of the management or an employee

having significant role in the Company's

internal control system over financial

reporting.

C. Suresh Rayudu U.Ganesh

Vice-Chairman & GM (Finance)

Managing Director (CEO) (CFO)

Place : Hyderabad

Date : 20.05.2011


21

AUDITORS' REPORT

To the Members of


1. We have audited the attached Balance Sheet

of SRINIVASA HATCHERIES LTD. as at 31st March

2011 and also the Profit and Loss Account and

the Cash Flow Statement for the year ended on

that date annexed thereto. These financial

statements are the responsibil ity of the

company's management. Our responsibility is to

express an opinion on these financial statements

based on our audit.

2. We conducted our audit in accordance with

auditing standards generally accepted in India.

Those Standards require that we plan and

perform the audit to obtain reasonable

assurance about whether the financial

statements are free of material misstatement.

An audit includes examining, on a test basis,

evidence supporting the amounts and

disclosures in the financial statements. An audit

also includes assessing the accounting principles

used and significant estimates made by

management, as well as evaluating the overall

financial statement presentation. We believe that

our audit provides a reasonable basis for our

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 in

terms of sub-section (4A) of Section 227 of the

Companies Act, 1956, we annex hereto a

statement on the matters specified in

paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred

to above, we report that:

a. We have obtained all the information and

explanations, which to the best of our

knowledge and belief were necessary for

the purposes of our audit;

b. In our opinion, proper books of account as

required by law have been kept by the

Company so far as appears from our

examination of those books;

c. The Balance Sheet, Profit and Loss Account

and Cash Flow Statement referred to in this

report are in agreement with the books of

account;

d. In our opinion, the Balance Sheet, Profit and

Loss Account and Cash Flow Statement

dealt with by this report comply with the

accounting standards as referred to in sub-

section (3C) of Section 211 of the

Companies Act, 1956;

e. On the basis of written representations

received from the directors, as on 31st

March 2011, and taken on record by the

Board of directors, we report that none of

the directors of the company is disqualified

as referred to in terms of clause (g) of sub-

section (1) of Section 274 of the Companies

Act, 1956.

5. In our opinion and to the best of our information

and according to the explanations given to us,

the said accounts, read together with the

Significant Accounting Policies and other notes

appearing in Schedule '16'; give the information

required by the Companies Act, 1956, in the

manner so required and give a true and fair view

in conformity with the accounting principles

generally accepted in India:-

(i) in the case of the Balance Sheet, of the state

of affairs of the Company as at 31st March

2011;

(ii) in the case of the Profit and Loss Account,

of the profit of the company for the year

ended on that date; and

(iii) in the case of Cash Flow Statement, of the

cash flows for the year ended on that date.

For S.DAGA & CO


(F.No.000669S)

SHANTILAL DAGA

Place : Hyderabad Membership No.11617

Date : 20.05.2011 Partner


22

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

1. a) The company has generally maintained

proper records showing particulars,

including quantitative details and situation

of fixed assets;

b) As explained to us, the fixed assets have

been physically verified by the

management at reasonable intervals, in a

phased verification programme, which, in

our opinion, is reasonable, looking to the size

of the Company and the nature of its

business. According to the information and

explanations given to us, discrepancies

noticed on physical verification have been

properly dealt with in the books of account;

c) During the year, the Company has not

disposed off any substantial part of its fixed

assets so as to affect its going concern.

2. a) As explained to us, inventories have been

physically verified during the year by the

management. Inventories lying with outside

parties have been confirmed by them at

the close of the year;

b) The procedures explained to us, which are

followed by the management for physical

verification of inventories, are, in our opinion,

reasonable and adequate in relation to the

size of the Company and the nature of its

business;

c) On the basis of our examination of the

inventory records of the Company, we are

of the opinion that, the Company is

maintaining proper records of its inventory.

Discrepancies, which were noticed on

physical verification of inventor y as

compared to book records, have been

properly dealt with in the books of account.

3. (a) The company has granted loan to one party

covered in the register maintained under

section 301 of the Companies Act, 1956.

The maximum amount involved during the

year is Rs. 10 crores and the period end

balance of loan granted is Rs. 8.72 crores.

(b) In our opinion, the rate of interest and other

terms and conditions on which loan have

been granted to party listed in the register

maintained under section 301 of the

Companies Act,1956 are not prima facie

prejudicial to the interest of the company.

(c) The party is regular in paying the principalamounts as stipulated and has also beenregular in the payment of interest to thecompany.

(d) There is no overdue amount in respect ofloans granted to party listed in the registermaintained under section 301 of theCompanies Act, 1956.

(e) The company had not taken any loancovered in the register maintained undersection 301 of the Companies Act, 1956.

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

system commensurate with the size and nature

of its business.


23

8. The Central Government has not prescribed any

cost records pursuant to the Rules made for the

maintenance of cost records under section

209(1)(d) of the Companies Act, 1956 in relation

to the Company's business activities.

9. a) The company is regular in depositing with

appropriate authorities undisputed statutory

dues including Provident Fund, Investor

Education Protection Fund, Employee's State

Insurance, Income-tax, Sales-tax, Wealth tax,

Service tax, Custom duty, Excise duty, cess

and other material statutor y dues

applicable to it.

b) According to the information and

explanations given to us, no undisputed

amounts payable in respect of income-tax,

wealth tax, service tax, sales tax, custom

duty, excise duty and cess were in arrears,

as at 31st March 2011 for a period of more

than six months from the date they became

payable;

10. The company does not have any accumulated

losses at the end of the financial year and has

not incurred cash losses in the current financial

year and in the immediately preceding financial

year.

11. In our opinion and according to the information

and explanations given to us, the company has

not defaulted in repayment of dues to financial

institution, bank or debenture holders.

12. As per the information and explanation given to

us the company has not granted loans and

advances on the basis of security by way of

pledge of shares, debentures and other

securities.

13. In our opinion, the company is not a chit fund or

a nidhi mutual benefit fund/ society. Therefore,

the provisions of clause 4(xiii) of the Companies

(Auditor's Report) Order, 2003 are not applicable

to the company.

14. In our opinion and according to the information

and explanations given to us, the company is

not 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 applicable

to the Company.

15. According to the information and explanations

given to us, the company has not given any

guarantee for loans taken by others from banks

or financial institutions.

16. In our opinion, the term loans have been applied

for the purpose for which they were raised.

17. Based on information and explanations given

to us and on an overall examination of the

financial statements of the Company, we are of

the opinion that prima facie short term funds

have not been used for long term purpose.

18. The company has not made any preferential

allotment of shares to parties or companies

covered in the register maintained under section

301 of the Companies Act, 1956.

19. The company has not issued any debentures

and hence the provisions of clause 4(xix) of the

Companies (Auditor's Report) Order, 2003 are not

applicable to the Company.


given to us, the Company has not raised money

by public issues during the year.


given to us, and to the best of our knowledge

and belief, no significant fraud on or by the

company, has been noticed or reported by the

Company during the year.

For S.DAGA & CO


(F.No.000669S)

SHANTILAL DAGA

Place : Hyderabad Membership No.11617

Date : 20.05.2011 Partner


24

BALANCE SHEET AS AT 31ST MARCH, 2011

As at As at

Particulars Schedule 31.03.2011 31.03.2010

SOURCES OF FUNDS

SHAREHOLDERS' FUNDS

Share Capital 1 97,012,000 48,534,500

Reserves and surplus 2 739,658,876 621,221,776

836,670,876 669,756,276

LOAN FUNDS

Secured Loans 3 106,405,559 0

DEFERRED TAX

Deferred Tax Liabilities (Net) 21,507,000 23,362,000

T O T A L 964,583,435 693,118,276

APPLICATION OF FUNDS

FIXED ASSETS 4

Gross block 725,506,973 657,738,315

Less: Depreciation 276,788,439 249,342,784

Net block 448,718,534 408,395,531

Capital Work In Progress & Advances 170,856,259 30,463,124

619,574,793 438,858,655

INVESTMENTS 5 247,989,911 230,992,086

CURRENT ASSETS, LOANS & ADVANCES

Inventories 6 183,110,519 169,365,999

Sundry debtors 7 1,560,586 2,861,203

Cash and bank balances 8 38,574,803 37,265,679

Other current assets 9 15,602,004 9,236,051

Loans and advances 10 163,117,168 59,421,138

401,965,080 278,150,070

LESS: CURRENT LIABILITIES & PROVISIONS

Current Liabilities 11 227,194,726 208,861,340

Provisions 12 77,751,623 46,021,195

304,946,349 254,882,535

NET CURRENT ASSETS 97,018,731 23,267,535

T O T A L 964,583,435 693,118,276

Notes to the Accounts 16

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 S. DAGA & CO., For and on behalf of the Board of Directors

Chartered Accountants(F. No.000669S)

SHANTILAL DAGA C JAGAPATI RAO C SURESH RAYUDU

Membership No:11617 EXECUTIVE CHAIRMAN VICE-CHAIRMAN &(PARTNER) MANAGING DIRECTOR

Place : Hyderabad Dr K SOMI REDDY V K MURALI MANOHAR

Dated : 20-05-2011 JOINT MANAGING DIRECTOR COMPANY SECRETARY

In Rupees


25

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

For the For the

Particulars Schedule year ended year ended

31.03.2011 31.03.2010

INCOME

Sales and Operational Income 1,431,069,645 1,220,408,617

Other income 13 46,619,333 16,059,608

T O T A L 1,477,688,978 1,236,468,225

EXPENDITURE

Manufacturing, farm and other expenses 14 986,065,691 874,854,510

Goods purchased for Trading 175,357,971 181,041,044

Depreciation / Amortisation 37,687,608 33,129,379

Interest 23,973 112,465

Decrease/(Increase) in stocks 15 (8,832,326) (40,438,549)

T O T A L 1,190,302,917 1,048,698,849

PROFIT BEFORE TAX 287,386,061 187,769,376

PROVISION FOR TAX

Current Tax (93,896,000) (68,740,000)

Deferred Tax Release 1,855,000 4,684,000

Tax Expense (92,041,000) (64,056,000)

PROFIT AFTER TAX 195,345,061 123,713,376

Provision for tax for earlier years (Net) 259,579 (194,094)

Balance of profit brought forward 227,780,484 149,509,517

PROFIT AVAILABLE FOR APPROPRIATION 422,865,966 273,416,987

APPROPRIATIONS:

Transfer to General Reserve 19,535,000 12,372,000

Transfer to Contingency Reserve 5,000,000 5,000,000

Proposed Dividend 24,238,750 24,238,750

Tax on Distributed Profits 3,932,132 4,025,753

Balance carried to Balance Sheet 370,160,084 227,780,484

T O T A L 422,865,966 273,416,987

EARNINGS PER EQUITY SHARE

Basic and Diluted earnings per share 20.15 12.76

Face value of each share 10.00 10.00

Notes to the Accounts 16

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



Chartered Accountants(F. No.000669S)


Membership No:11617 EXECUTIVE CHAIRMAN VICE-CHAIRMAN &(PARTNER) MANAGING DIRECTOR



In Rupees


26

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2011

PARTICULARS For the For the

Year ended Year ended

31.03.2011 31.03.2010

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit Before Tax and Extraordinary items 287,386,061 187,769,376

Adjustments for:

Depreciation / Amortisation 37,687,608 33,129,379

Excess Provision written back (990,054) (880,229)

Loss on discarded assets 437,902 160,433

(Profit) / Loss on sale of assets (Net) (4,578,217) (798,951)

(Profit) / Loss on sale of investments (Net) (14,162,973) (3,902,906)

Income from Partnership Firm (669,656) (382,896)

Interest Income (14,362,334) (3,472,638)

Interest Expense 23,973 112,465

Dividend Income (2,907,809) (311,451)

Baddebts written off 56,338 0

Provision for doubtful loans 0 1,100,000

Operating Profit before Working Capital Changes 287,920,839 212,522,582

Adjustments for:

Trade and Other Receivables (29,905,966) 36,210,605

Inventories (13,744,520) (42,644,056)

Trade Payables 20,655,693 94,400,182

Cash Generated from Operations 264,926,046 300,489,313

Direct Taxes Paid (Net) (64,056,722) (67,097,615)

NET CASH FLOW FROM OPERATING ACTIVITIES 200,869,324 233,391,698

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (222,598,189) (98,459,948)

Sale of Fixed Assets 8,334,758 2,190,675

Sale / (Purchase) of Investments (Net) (1,993,942) (110,807,689)

Loans (Given) / Realised (Net) (73,074,417) (1,262,529)

Interest Received 8,565,963 3,072,798

Dividend Received 2,866,859 754,407

NET CASH USED IN INVESTING ACTIVITIES (277,898,968) (204,512,286)

Contd..

In Rupees


27

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2011

PARTICULARS For the For the

Year ended Year ended

31.03.2011 31.03.2010

C. CASH FLOW FROM FINANCING ACTIVITIES

Loan taken 106,405,559 –

Interest Paid (23,973) (112,465)

Dividend and Tax thereon (28,264,503) (11,343,250)

NET CASH USED IN FINANCING ACTIVITIES 78,117,083 (11,455,715)

Net increase in cash and cash equivalents 1,087,439 17,423,697

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

Cash and cash equivalents at the end of the year 36,929,055 35,841,616

Notes:

Cash and cash equivalents include:

Cash and remitances in transit 4,602,688 2,872,490

With banks in :

Current accounts 31,314,772 20,357,762

Deposit accounts 1,011,595 12,611,364

T O T A L 36,929,055 35,841,616

In Rupees




(F. No.000669S)


Membership No:11617 EXECUTIVE CHAIRMAN VICE-CHAIRMAN &

(PARTNER) MANAGING DIRECTOR




28

In Rupees

SCHEDULES FORMING PART OF THE BALANCE SHEET

ParticularsAs at As at

31.03.2011 31.03.2010

SCHEDULE - 1

SHARE CAPITAL

AUTHORISED

1,00,00,000 (Previous year 50,00,000)

Equity Shares of Rs.10 each 100,000,000 50,000,000

ISSUED AND SUBSCRIBED

97,06,600 (Previous year 48,58,850)

Equity Shares of Rs. 10 each 97,066,000 48,588,500

PAID UP

96,95,500 (Previous year 48,47,750)

Equity shares of Rs.10 each 96,955,000 48,477,500

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

T O T A L 97,012,000 48,534,500

Of the above subscribed and paid-up capital, 71,75,600 (Previous Year 23,27,850) Shares of Rs.10

each were allotted as fully paid up by way of issue of bonus shares by capitalisation of General

Reserve and Share Premium Account.


31.03.2011 31.03.2010

SCHEDULE - 2

RESERVES AND SURPLUS

Share Premium AccountBalance as per last balance sheet 49,324,492 49,324,492Less:Capitalisation by way of issue of

48,47,750 Equity Shares of Rs.10each fully paid as Bonus Shares 48,477,500 0

846,992 49,324,492

Share Forfeiture Account 624,800 624,800

General ReserveBalance as per last balance sheet 306,392,000 294,020,000

Add:Transferred from Profit andLoss Account. 19,535,000 12,372,000

325,927,000 306,392,000Contingency ReserveBalance as per last balance sheet 37,100,000 32,100,000

Add: Transferred from Profit andLoss Account. 5,000,000 5,000,000

42,100,000 37,100,000

Balance in Profit and Loss Account 370,160,084 227,780,484

T O T A L 739,658,876 621,221,776


29

In Rupees



31.03.2011 31.03.2010

SCHEDULE - 3

TERM LOANS

FROM BANKS * 106,405,559 0

106,405,559 0

*Term Loan is secured by first charge on the entire fixed assets of the windmill project (Excluding

Equitable Mortgage on the leasehold rights of the subject land) also collaterally secured by receivables

from Karnataka State Electricity Board and certain other freehold land & buildings located in Vijayawada.


30

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31

SCHEDULE FORMING PART OF THE BALANCE SHEET

No. of PARTICULARS Face As at As at

Shares / Units Value 31.03.2011 31.03.2010

SCHEDULE 5

INVESTMENTS - At Cost

LONG TERM - QUOTED

In Fully paid Equity Shares

Trade

74,881 (Previous Year 84,381) Venky's (India) Ltd 10 1,498,481 1,612,481

Total of Long Term Shares - Quoted 1,498,481 1,612,481

LONG TERM - UNQUOTED

In Equity Shares - Other than Trade - Fully Paid

250,000 (Previous Year 250,000) Srinivasa Agritech

Private Ltd 10 2,500,000 2,500,000

294,500 (Previous Year 294,500) Rhapsody Foods

and Beverages Pvt Ltd 10 2,945,000 2,945,000

10,000 (Previous Year 10,000) Heritage Finlease

Private Ltd 10 100,000 100,000

1,910,000 (Previous Year 750,000) SHL Foods Private Ltd 10 19,100,000 7,500,000

In Preference Shares - Trade - Fully Paid

10,000 (Previous Year 10,000) 8% Non-Cumulative

Redeemable Preference Shares - Kansas 100 1,000,000 1,000,000

Feeds Private Ltd

13,000 (Previous Year 13,000) 8% Non-Cumulative

Redeemable Preference Shares - 100 1,300,000 1,300,000

Sri Srinivasa Aqua Feeds Private Ltd

In Debentures - Other than Trade

1 (Previous Year Nil) 16.50% Secured

Redeemable Non - Convertible Debentures 10,000,000 10,000,000 0

of Century Real Estate Holdings Private Ltd

1 (Previous Year Nil) 16.00% Secured

Redeemable Non - Convertible 10,000,000 10,000,000 0

Debentures of Puravankara Projects Limited

- (Previous Year 20) 12.75% Secured

Redeemable Non - Convertible Debentures 1,000,000 0 20,000,000

of Prakausali Investments (India) Private Ltd

- (Previous Year 3) 11.25% Secured

Redeemable Non - Convertible and 5,000,000 0 15,000,000

Taxable Debentures of Churu Trading

Company Private Ltd

In Partnership Firm - Other than Trade

SHL Ventures 51,688,022 51,018,366

Total of Long Term - Unquoted Shares and Others 98,633,022 101,363,366

Contd..

In Rupees


32




In Mutual Funds - Other than Trade

250,000 (Previous Year 250,000) Birla Sun Life Fixed

Term Plan Series CD - Growth Option 10 2,500,000 2,500,000

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

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

500,000 (Previous Year 500,000) HDFC FMP 13MMarch 2010 (3) - Series XII - Growth Option 10 5,000,000 5,000,000

500,000 (Previous Year 500,000) Reliance FixedHorizon Fund - XIII - Series 4 - Growth Option 10 5,000,000 5,000,000

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

456,666 (Previous Year Nil) Birla Sun Life IncomeFund - Dividend Option 10 5,024,949 0

500,412 (Previous Year Nil) DWS Fixed Term Fund -Series 81 - Growth Option 10 5,004,121 0

302,167 (Previous Year Nil) HDFC FMP 370DJune 2010 (2) - Series XV - Dividend Option 10 3,021,670 0

500,000 (Previous Year Nil) HDFC FMP 370DNovember 2010 (1) - Series XVII 10 5,000,000 0- Dividend Option

250,000 (Previous Year Nil) HDFC Debt Fund forCancer Cure - 50% Dividend Donation Option 10 2,500,000 0

500,000 (Previous Year Nil) Kotak FMP Series 35 -Dividend Option 10 5,000,000 0

500,000 (Previous Year Nil) Kotak FMP Series 43 -Dividend Option 10 5,000,000 0

500,000 (Previous Year Nil) Kotak CreditOpportunities Fund - Growth Option 10 5,000,000 0

250,024 (Previous Year Nil) Reliance Fixed HorizonFund - XV - Series 7 - Dividend Option 10 2,500,244 0

500,000 (Previous Year Nil) Reliance Fixed HorizonFund - XVI - Series 1 - Dividend Option 10 5,000,000 0

500,128 (Previous Year Nil) Reliance Fixed HorizonFund - XVI - Series 5 - Dividend Option 10 5,001,285 0

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

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

Total of Long Term Mutual Funds 73,552,269 38,001,738

Total of Long Term - Unquoted Investments 172,185,291 139,365,104

Total of Long Term Investments 173,683,772 140,977,585

Contd..

In Rupees


33




CURRENT INVESTMENTS - QUOTED

In Fully paid Equity Shares - Other than Trade

882 (Previous Year Nil) Coal India Ltd 10 216,090 -

100 (Previous Year 100) DQ Entertainment

(International) Ltd 10 8,000 8,000

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

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

- (Previous Year 420) Bharti Airtel Ltd 5 - 176,636

- (Previous Year 293) Bilcare Ltd 10 - 128,405

- (Previous Year 1,030) Cholamandalam

DBS Finance Ltd 10 - 143,136

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

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

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

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

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

- (Previous Year 634) Hindustan Oil

Exploration Company Ltd 10 - 178,850

- (Previous Year 907) IRB Infrastructure

Developers Ltd 10 - 107,717

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

- (Previous Year 946) Motherson Sumi Systems Ltd 1 - 75,728

- (Previous Year 3,966) Nagarjuna Fertilizers

& Chemicals Ltd 10 - 131,552

- (Previous Year 1,317) Network 18 Media

& Investments Ltd 5 - 342,526

- (Previous Year 227) NTPC Ltd 10 - 48,151

- (Previous Year 239) OnMobile Global Ltd 10 - 126,420

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

- (Previous Year 2,887) Suven Life Sciences Ltd 1 - 115,012

- (Previous Year 163) United Breweries Limited 1 - 42,400

Total of Current Investment Quoted 304,658 2,399,778

CURRENT INVESTMENTS - UNQUOTED

In Shares - Other than Trade

18,810 (Previous Year 18,810) Sai Rayalaseema

Paper Mills Ltd 10 228,541 228,541

In Mutual Funds - Other than Trade

257,801 (Previous Year Nil) Birla Sun Life Interval

Income Fund - Quarterly - Series 1 - 10 2,578,007 -

Dividend Option

Contd..

In Rupees


34




500,000 (Previous Year Nil) Birla Sun Life Short Term

FMP - Series 7 - Dividend Option 10 5,000,000 -

394,349 (Previous Year Nil) HDFC Floating RateIncome Fund - Short Term Plan - Wholesale 10 4,000,000 -Option - Dividend Option

250,000 (Previous Year Nil) Kotak Quarterly IntervalPlan Series 6 Dividend Option 10 2,500,000 -

499,975 (Previous Year Nil) Kotak Quarterly IntervalPlan Series 7 Dividend Option 10 5,000,000 -

495,894 (Previous Year Nil) Kotak Floater LongTerm - Dividend Option 10 5,000,000 -

1,500,000 (Previous Year Nil) LIC Nomura MF IntervalFund - Series 1 - Dividend Option 10 15,000,000 -

500,000 (Previous Year Nil) L&T FMP - II(January 90D A) - Dividend Option 10 5,000,000 -

226,848 (Previous Year Nil) Reliance Liquid Fund -Cash Plan - Dividend Option 10 2,527,429 -

500,000 (Previous Year Nil) Religare FMP - Series IVPlan B (6 Months) - Dividend Option 10 5,000,000 -

500,000 (Previous Year Nil) SBI Debt Fund Series -90 Days - 39 - Dividend Option 10 5,000,000 -

600,099 (Previous Year Nil) SBI Debt Fund Series -90 Days - 40 - Dividend Option 10 6,000,995 -

598,891 (Previous Year Nil) Tata Floater Fund -Dividend Option 10 6,010,232 -

5,169 (Previous Year Nil) UTI Treasury AdvantageFund - Dividend Option 1,000 5,406,276 -

- (Previous Year 335,838) Birla Sun Life ShortTerm Fund - Growth Option 10 - 5,528,064

- (Previous Year 465,751) Birla Sun LifeDynamic Bond Fund - Growth Option 10 - 7,000,000

- (Previous Year 481,162) Birla Sun LifeMedium Term Plan - Growth Option 10 - 5,000,000

- (Previous Year 317,856) Birla Sun LifeFloating Rate Fund - Retail - Long Term - 10 - 5,000,000Growth Option

- (Previous Year 843,378) Kotak Floater LongTerm - Growth Option 10 - 12,307,070

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

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

- (Previous Year 425,499) Kotak Quarterly

Interval Plan Series 3 - Growth Option 10 - 5,000,000

In Rupees

Contd..


35




In Rupees

Movements during the year

Purchase and sale of Shares

Areva T&D India Ltd 2 21 5,290

Atlas Copco (India) Ltd 10 114 145,273

Bharat Electronics Ltd 10 109 205,084

BS Transcomm Ltd 10 800 198,400

DCW Ltd 2 23 476

Federal Bank Ltd 10 19 5,067

Greaves Cotton Ltd 2 230 13,362

Harrisons Malayalam Ltd 10 39 4,613

Hindustan Oil Exploration Company Ltd 10 430 101,048

IFCI Ltd 10 2,447 148,960

Network 18 Media & Investments Ltd 5 110 11,134

Sentinel Tea and Exports Limited 10 39 1,603

Solar Industries India Ltd 10 13 5,927

Sundaram Fasteners 1 2,314 151,888

Vijaya Bank 10 2,450 132,573

Yes Bank Ltd 10 475 143,550

Venky's (India) Ltd 10 259 241,486

PARTICULARS Face No. of CostValue Shares

- (Previous Year 1,575,178) LICMF IncomePlus Fund - Growth Option 10 - 19,446,514

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

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

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

Total of Current Investments Unquoted 74,251,481 88,035,977

Total of Current Investments 74,556,139 90,435,755

Less: Provision for Investments 250,000 421,254

Total of Current Investments 74,306,139 90,014,501

Total Investments 247,989,911 230,992,086

Quoted Investments

Aggregate Amount - At Cost 1,803,139 4,012,259

Market Value 48,071,443 30,707,701

Unquoted Investments - Mutual Funds

Aggregate Amount 147,575,209 125,809,174

Repurchase Value 151,060,039 127,776,721

Unquoted Investments - Other than Mutual Funds

Aggregate Amount - at carrying value 98,861,563 101,591,907


36


Particulars As at As at

31.03.2011 31.03.2010

SCHEDULE - 6

INVENTORIES

Poultry for Live Stock Breeding 116,494,997 114,078,134

Work-in-process 47,678,236 41,269,022

Raw material and packing material 11,312,234 10,274,281

By products 8,788 3,545

Trading goods 57,564 56,558

Consumables, Stores and spares 7,558,700 3,684,459

T O T A L 183,110,519 169,365,999


31.03.2011 31.03.2010

SCHEDULE - 7

SUNDRY DEBTORS (Unsecured)

Debts outstanding for a period exceeding six months

Considered good 4,860 66,741

Considered doubtful 1,645,013 1,645,013

Other debts

Considered good 1,555,726 2,794,462

3,205,599 4,506,216

Less: Provision for doubtful debts 1,645,013 1,645,013

T O T A L 1,560,586 2,861,203


31.03.2011 31.03.2010

SCHEDULE - 8

CASH AND BANK BALANCES

Cash on Hand (includes Cheques on hand and 4,602,688 2,872,490

Remittances in Transit Rs. 27,08,181;

Previous Year Rs.18,27,290)

Balances with scheduled banks

in current accounts 31,314,772 20,357,762

in dividend accounts 1,645,748 1,424,063

in deposit accounts 1,011,595 12,611,364

T O T A L 38,574,803 37,265,679

In Rupees


37



31.03.2011 31.03.2010

SCHEDULE - 9

OTHER CURRENT ASSETS

Deposits 6,487,484 6,315,062

Interest accrued 8,060,174 2,263,803

Other receivables 1,054,346 657,186

T O T A L 15,602,004 9,236,051


31.03.2011 31.03.2010

SCHEDULE - 10

LOANS AND ADVANCES

(Unsecured, Considered good unless

otherwise stated)

Loans

Secured

Considered Good 2,867,069 6,829,265

Considered Doubtful 2,610,017 2,778,237

Unsecured

Considered Good 84,055,244 6,850,411

Considered Doubtful 5,121,152 5,121,152

94,653,482 21,579,065

Less: Provision for doubtful loans 7,900,000 7,900,000

86,753,482 13,679,065

Advances recoverable in cash or in kind

or for value to be received 63,083,686 19,562,073

Advances for Capital Items 8,000,000 11,000,000

Share Application Money 5,280,000 15,180,000

T O T A L 163,117,168 59,421,138

In Rupees


38



31.03.2011 31.03.2010

SCHEDULE - 11

CURRENT LIABILITIES

Sundry Creditors

Others (dues to other than Micro and Small Enterprises) 64,525,536 54,454,364

Advances from Customers 158,172,130 151,301,837

Unclaimed Dividend* 1,645,748 1,424,063

Other Liabilities 2,851,312 1,681,076

T O T A L 227,194,726 208,861,340

* These figures do not include any amounts, due and outstanding, to be credited to Investor

Education and Protection Fund.


31.03.2011 31.03.2010

SCHEDULE - 12

PROVISIONS

Provision for Income Tax (net of taxes paid) 33,204,707 3,572,485

Provision for Corporate Dividend Tax 3,932,132 4,025,753

Provision for Gratuity 12,961,824 11,166,808

Provision for Leave Encashment 3,414,210 3,017,399

Proposed Dividend 24,238,750 24,238,750

T O T A L 77,751,623 46,021,195

In Rupees


39

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNT

For the For the

Particulars Year Ended Year Ended

31.03.2011 31.03.2010

SCHEDULE - 13

OTHER INCOME

Dividend

From current non trade investments 2,332,597 9,117

From long term trade investments 337,524 295,334

From long term non trade investments 237,688 7,000

Interest on:

Loans 9,146,827 2,152,134

(Tax deducted at source Rs. 8,13,455

Previous year Rs.1,15,311)

Deposits 64,577 53,194

(Tax deducted at source Rs. 4,444

Previous year Rs.3,272)

On Non Convertible Debentures 4,908,510 1,024,298

(Tax deducted at source Rs. 4,90,851

Previous year Rs.1,02,430)

Others 301,372 1,019,154

(Tax deducted at source Rs. 4,243 14,421,286 4,248,780

Previous year Rs.2,304)

Income from Partnership Firm 669,656 382,896

Profit on Sale / Redemption of

Investments (Net)

- Current Investments 4,211,948 3,835,801

- Long Term Investments 9,951,025 67,105

14,162,973 3,902,906

Commission 3,644,504 3,516,233

Profit on sale of Fixed Assets 5,280,303 823,109

Excess Provision written back 990,054 880,229

Miscellaneous income 4,542,748 1,994,004

T O T A L 46,619,333 16,059,608

In Rupees


40


For the For the


31.03.2011 31.03.2010

SCHEDULE - 14

MANUFACTURING, FARM AND

OTHER EXPENSES

Chicks purchased 66,746,380 57,755,339

Raw material and packing material consumed 618,175,585 569,626,279

Bird rearing and egg hatching charges 6,792,469 2,333,995

Stores and spares consumed 25,806,698 19,701,694

Payments to and provision for employees:

Salaries, wages and other benefits 120,562,193 94,297,619

Contribution to provident and other funds 4,189,192 3,133,834

Staff welfare expenses 3,392,703 1,917,818

128,144,088 99,349,271

Heat, light and power 40,416,145 35,352,180

Repairs to:

Buildings 6,362,778 1,733,343

Machinery 16,441,800 15,112,200

Others 6,209,149 4,037,764

29,013,727 20,883,307

Rent 1,699,804 1,110,124

Rates and taxes 1,794,263 10,234,998

Insurance 2,285,060 1,268,512

Freight and handling 18,799,858 16,922,447

Professional Charges 6,228,705 4,443,844

Travelling and conveyance 5,744,642 3,689,403

Vehicle expenses 12,660,217 9,003,632

Contribution to trade associations 6,109,470 7,329,980

Bad debts written off 56,338 -

Provision for bad and doubtful loans 0 1,100,000

Loss on sale / discarded assets 1,139,988 184,591

Miscellaneous expenses 14,452,254 14,564,914

T O T A L 986,065,691 874,854,510

In Rupees


41


For the For the


31.03.2011 31.03.2010

SCHEDULE - 15

DECREASE / (INCREASE) IN STOCK

Opening Stock


Work-in-process 41,269,022 23,845,053


Trading Goods 56,558 243,396

T O T A L 155,407,259 114,968,710

Closing Stock


Work-in-process 47,678,236 41,269,022


Trading Goods 57,564 56,558

T O T A L 164,239,585 155,407,259

DECREASE / (INCREASE) IN STOCK (8,832,326) (40,438,549)

In Rupees


42

NOTES FORMING PART OF THE ACCOUNTS

SCHEDULE - 16 : NOTES TO THE ACCOUNTS

1 SIGNIFICANT ACCOUNTING POLICIES

i Basis for Preparation of Accounts

The financial statements have been prepared under the historical cost convention on accrual

basis to comply in all material aspects and inaccordance with generally accepted accounting

principles in India and the relevant provisions of the Companies Act, 1956. The accounting

policies have been consistently applied by the Company unless otherwise stated.

ii Recognition of Revenue and Expenditure

a 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.

iii Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that

affect the reporting amount of assets and liabilities on the date of the financial statements and

the reported amount of revenues and expenses during the reporting period. Difference between

actual results and estimates are recongnised in the period in which the results are known/

materialised.

iv Fixed Assets

Tangible Assets

a 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 rates and

in the manner specified in Schedule XIV of the Companies Act, 1956.

Intangible Assets

a 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.

v Borrowing Costs

Borrowing costs relating to acquisition of fixed assets which takes substantial period of the time

to get ready for its intended use are included to the extent they relate to the period till such

assets are ready to be put to use. All other borrowing costs are charged to revenue. Borrowing

costs consist of interest and other costs that the company incurs in connection with borrowing

of funds.

vi Investments

Investments are classified into current and long-term investments. Current Investments are stated

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 of long-term

investments.


43

vii Inventories

Inventories are valued as follows:

Poultry for Live Stock Breeding At Cost

Work-in-process At lower of cost and net realisable value

Raw and packing material At lower of cost and net realisable value

Trading goods At lower of cost and net realisable value

By products At lower of cost and net realisable value

Stores and spares At lower of cost and net realisable value

Cost of Raw-material, Packing material, Trading goods and Stores & spares is determined on First-

in First-out basis.

Cost of Work-in-process includes costs of conversion and other costs incurred in bringing the

inventories to their present location and condition.

viii Employee Benefits

a Short term employee benefits:

Undiscounted value of short term employee benefits such as salaries, wages, short term

compensated absences, bonus, exgratia and performance incentives are recognised as

expense in the period in which the employees render the related service.

b Post Employment Benefits

Defined Contribution plans:

Contribution to defined contribution plans being Employee Provident Fund, Employee State

Insurance, Employee Pension Schemes, Labour Welfare Fund, Employee Insurance Scheme

and Super Annuation Fund are recognised in the profit and loss account during the period

in which the employees render the related services.

Defined Benefit Plans:

Liabilities in respect of defined benefit plans being Gratuity and Leave encashment are

determined based on an actuarial valuation using the projected unit credit method. Actuarial

gains or losses are recognised immediately in the Profit and Loss account.

ix Foreign Exchange Transactions

Foreign currency transactions are accounted at the exchange rates prevailing at the date of

the transaction. All monetary assets and liabilities relating to foreign currency transactions remaining

unsettled at the end of the year are translated at the year-end rate and the difference in

translation and realised gains and losses on foreign exchange transactions are recognised in the

Profit & Loss Account.

x Taxes on Income

The Current charge for income taxes is calculated in accordance with the relevant tax regulations

applicable to the Company on the estimated total income for the year.

Deferred tax assets and liabilities are recognised on timing differences between taxable income

and accounting income, originating in one period and expected to reverse in subsequent

periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been

enacted or substantively enacted as on the Balance Sheet date.

xi Segment Reporting

The Company's operations mainly comprises breeding of layers and broilers and trading in

poultry and poultry related products. These activities constitute the primary segment i.e., Poultry

Operations.


44

xii Leases

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-cancelable aregenerally for 11 months, or for longer periods and are usually renewable by mutual consent onmutually agreeable terms. The aggregate lease rentals payable are charged as Rent to Profitand Loss Account.

xiii Earnings Per Share

Basic 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.

xiv Impairment 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 the presentvalue of estimated future net income expected from use of the asset.

xv Provisions / 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 financial statements.

As at As at

31.03.2011 31.03.2010

2 Contingent Liabilities

a. In respect of Income Tax matters 623,485 623,485b. In respect of Electricity Demands 85,107 85,107

3 Estimated amount of contracts remaining to be executedon capital account and not provided for (net of advances) 57,802,118 14,448,540

4 Earnings per Share

Net Profit attributable to equity shareholdersProfit after tax (Rs.) 195,345,061 123,713,376

Weighted average of Number of Shares 9,695,500 4,847,750

Weighted average of Number of Shares asadjusted for bonus issue – 4,847,750

Total Shares outstanding 9,695,500 9,695,500

Basic and Diluted Earnings per share (Rs.) 20.15 12.76

Face Value per share (Rs.) 10.00 10.00

For the purpose of calculating diluted earnings per share, the net profit or loss for the periodattributable to equity shareholders and the weighted average number of shares outstanding duringthe period (including previous years' figures) are adjusted for the effects of all dilutive potential equityshares.

5 Employee Benefits

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as definedin the Accounting Standard are given below:

1 Defined Contributions

Payments and provisions for employees include Rs.52,98,897(previous year Rs.32,17,221)recognised as expense in respect of defined contribution plans.

In Rupees


45

2 Defined Benefit Plans

The assumptions and other disclosures relating to the Actuarial Valuation of Gratuity and Leave

encashment are as under:

In Rupees

Particulars Gratuity Leave Encashment

As At 31.03.11 As at 31.03.10 As at 31.03.11 As at 31.03.10

a Change in present value of

obligation

Present Value of Obligation at

beginning of period 11,166,808 8,634,659 2,325,023 1,804,981

Interest cost 891,963 592,789 187,002 124,394

Current Service Cost 1,824,983 1,480,207 974,318 770,497

Past Service Cost – (Vested Benefits) 0 1,922,550 – –

Benefits Paid (578,418) (332,477) (89,021) (55,846)

Actuarial (gain)/loss on obligation (343,512) (1,130,920) (805,339) (319,003)


end of period 12,961,824 11,166,808 2,591,983 2,325,023

b Past Service Cost Recognised

Past Service Cost –

(non vested benefits) – – – –

Past Service Cost –(vested benefits) 0 1,922,550 – –

Average remaining future service till

vesting of the benefit – – – –

Recognised Past Service Cost –

non vested benefits – – – –

Recognised Past Service Cost –

vested benefits – – – –

Unrecognised Past Service Cost –

non vested benefits – – – –

c Amounts to be recognized in the

balance sheet and statement of

profit & loss account


end of period 12,961,824 11,166,808 2,591,983 2,325,023

Fair Value of Plan Assets at end

of period – – – –

Funded Status (12,961,824) (11,166,808) (2,591,983) (2,325,023)

Unrecognized Actuarial Gain/(Loss) – – – –

Net Asset/(Liability) recognized in

the balance sheet (12,961,824) (11,166,808) (2,591,983) (2,325,023)

d Expense recognised in the

statement of P & L A/c.

Current Service Cost 1,824,983 1,480,207 974,318 770,497

Interest Cost 891,963 592,789 187,002 124,394

Past Service Cost –

(non vested benefits) – – – –

Past Service Cost – (vested benefits) 0 1,922,550 – –

Expected Return on Plan Assets – – – –

Net Actuarial (Gain) /

Loss recognised for the period (343,512) (1,130,920) (805,339) (319,003)

Expense recognised in the

statement of P & L A/c. 2,373,434 2,864,626 355,981 575,888


46

e Movements in the Liability

recognised in Balance Sheet

Opening Net Liability 11,166,808 8,634,659 2,325,023 1,804,981

Expenses as above 2,373,434 2,864,626 355,981 575,888

Contribution paid (578,418) (332,477) (89,021) (55,846)

Closing Net Liability 12,961,824 11,166,808 2,591,983 2,325,023

Assumptions

Mortality LIC (1994–96) Ult LIC (1994–96) Ult

Discount Rate 8.17% 8.20% 8.17% 8.20%

Rate of increase in compensation 8.00% 8.00% 8.00% 8.00%

Rate of return (expected)

on plan assets N.A N.A N.A N.A

Attrition rate 6.00% 6.00% 6.00% 6.00%

Maximum Limit for Gratuity (Rs. Lakhs) 10.00 10.00 – –

Note: The estimate of future salary increases, considered in actuarial valuation, takes into account

inflation, seniority, promotion and other relevant factors, such as supply and demand in

the employment market.

Tax effect As at As at

2010-2011 31.03.2011 31.03.2010

6 Deferred Tax

Deferred Tax Liability

Depreciation 2,239,000 (31,184,000) (33,423,000)

T O T A L 2,239,000 (31,184,000) (33,423,000)

Deferred Tax Asset

Employees' Retirement Benefits 637,000 5,475,000 4,838,000

Provision for doubtful loans / debts (73,000) 3,097,000 3,170,000

Unabsorbed Losses (473,000) – 473,000

Other Items (475,000) 1,105,000 1,580,000

T O T A L (384,000) 9,677,000 10,061,000

Release / Net Deferred Tax Liability 1,855,000 (21,507,000) (23,362,000)

7 RELATED PARTY TRANSACTIONS

NAMES OF ASSOCIATED COMPANIES

Srinivasa Foods and Feeds Private Limited, Varuna Hatcheries Private Limited, SHL Foods Private

Limited, Sri Krishnadeveraya Hatcheries Private Limited and Sauri Breeding Farms Private Limited

NAMES OF ASSOCIATED FIRMS

SHL Ventures and Srinivasa Ventures

NAMES OF KEY MANAGEMENT PERSONNEL

Sri C.Jagapati Rao, Sri C.Suresh Rayudu, Dr.K.Somi Reddy and Sri.K.Ashok Reddy

NAMES OF RELATIVES OF KEY MANAGEMENT PERSONNEL

Mrs.C.Mangayamma, Mrs.E.Padmaja, Mrs.P.Usha Lakshmi and Mrs.K.Anuradha

In Rupees

Particulars Gratuity Leave Encashment

As At 31.03.11 As at 31.03.10 As at 31.03.11 As at 31.03.10


47

In Rupees

Nature of Transaction Associates Key Relatives Total

Management

Personnel

Purchase of Goods 404,025,427 0 0 404,025,427

(334,859,248) (0) (0) (334,859,248)

Purchase of Fixed Assets 31,431 0 0 31,431

(0) (0) (0) (0)

Sale of Goods 13,018,982 0 0 13,018,982

(8,647,032) (0) (0) (8,647,032)

Sale of Fixed Assets 20,000 0 0 20,000

(0) (0) (0) (0)

Services Rendered 5,756,671 0 0 5,756,671

(1,593,776) (0) (0) (1,593,776)

Services Utilised 4,601,447 0 0 4,601,447

(1,587,719) (0) (0) (1,587,719)

Rents paid 162,000 111,600 418,500 692,100

(72,000) (111,600) (418,500) (602,100)

Rents received 78,000 0 0 78,000

(31,500) (0) (0) (31,500)

Interest Received 7,232,477 0 0 7,232,477

(0) (0) (0) (0)

Remuneration paid to Directors 0 30,256,465 821,538 31,078,003

(0) (21,068,641) (576,456) (21,645,097)

Loans given 80,000,000 0 0 80,000,000

(0) (0) (0) (0)

Investment 11,600,000 0 0 11,600,000

(0) (0) (0) (0)

Profit earned in a Partnership Firm 669,656 0 0 669,656

(382,896) (0) (0) (382,896)

Balances as at 31.03.2011:

- Creditors 0 0 0 0

(8,756,637) (0) (0) (8,756,637)

- Advances 22,879,958 0 0 22,879,958

(5,182,783) (0) (0) (5,182,783)

- Investment 70,788,022 0 0 70,788,022

(58,518,366) (0) (0) (58,518,366)

- Loans 80,000,000 0 0 80,000,000

(0) (0) (0) (0)

Note: Previous year figures are given in brackets


48

As at As at31.03.2011 31.03.2010

Rupees Rupees

8 Details of investment in Partnership Firm:

Name of the Firm - SHL Ventures

a Total capital of the firm 153,616,363 138,949,801

b Names and profit sharing ratio of each

partner are as under:

Srinivasa Hatcheries Limited 10% 10%

Sri C Jagapati Rao 15% 15%

Sri C Suresh Rayudu 15% 15%

Smt C Mangayamma 10% 10%

Smt E Padmaja 15% 15%

Smt P Usha Lakshmi 15% 15%

Chitturi Enterprises Private Limited 5% 5%

Jagapati Finance Private Limited 10% 10%

Corporate Leasing Private Limited 5% 5%

9 Loans and Advances includes

Advances to Companies under the same management

Srinivasa Foods and Feeds Private Limited 15,920,076 0

Maximum amount outstanding at any time during the year 24,928,673 9,748,459

Varuna Hatcheries Private Limited 1,196,955 2,841,224

Maximum amount outstanding at any time during the year 5,182,783 2,841,224

SHL Foods Private Limited 1,335,070 0

Maximum amount outstanding at any time during the year 1,335,070 0

Loan to Firm/ HUF in which directors are membersSrinivasa Ventures 80,000,000 0

Maximum amount outstanding at any time during the year 100,000,000 0

10 Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from

2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium

Enterprises. Accordingly information relating to disclosure under the Act has been given only to the

extent such information is readily available with the Company. This information has been relied upon

by the auditors.

11 The Company has a standing cash credit facilities of Rs.10 crores each from ICICI Bank Ltd and

HDFC Bank Ltd., with pari passu charge on the Company's books debts, stocks and on the movable

Plant & Machinery of the Company as security. There are no outstanding balances of the above

cash credit facilities as on 31.03.2011.

12 The Company has entered into an agreement during the year with Suzlon Energy Limited and its

affiliate companies for setting up of a 3MW Windmill Project at Karnataka. The work on the Project

has already started and is expected to be operational during the financial year 2011-12. The Term

Loan from bank during the year is taken for this project.


49

2010-2011 2009-2010

Rupees Rupees

13 Managerial remuneration included in

Salaries, Wages and other benefits*

i) Salary 3,830,400 3,830,400

Commission 28,352,672 18,644,103

Sitting Fees 245,000 220,000

Perquisites 1,104,631 659,961

T O T A L 33,532,703 23,354,464

*Exclusive of Provision in respect of retirement benefits which are based on actuarial valuation done

on overall company basis.

ii) Computation of Commission to Directors

Profit before tax 287,386,061 187,769,376

Add: Managerial remuneration 33,532,703 23,354,464

Loss on assets sold 702,086 24,158

Loss on Lost/discarded assets 437,902 160,433

322,058,752 211,308,431

Less: Profit on sale of assets 5,280,303 823,109

Profit/ (Loss) on sale / redemption of Investments (Net) 14,162,973 3,902,906

Net profit as per Sec.349 of the Companies Act,1956 302,615,476 206,582,416

Commission to :

Whole time Directors 25,326,517 16,578,280

Other Directors 3,026,155 2,065,824

14 Miscellaneous expenses include payments

made to Auditors towards:

Audit Fee 358,475 248,175

Fee for Audit under the Income-Tax Act, 1961 137,875 110,300

Fee for Certification and other services 110,300 82,725

(Fee is inclusive of Service Tax)

Reimbursement of expenses 65,284 35,979

T O T A L 671,934 477,179

15 Interest includes:

Interest paid on fixed period loans 448,948 –

- Other than on fixed period loans 23,973 112,465

472,921 112,465

Less: Amount transferred to WIP for Capitalisation on Borrowing cost 448,948 –

Interest Charged to P & L Account. 23,973 112,465


50

2010-11 2009-10

Unit Quantity Rupees Quantity Rupees

16 Particulars in respect of licensed capacity

i) Licensed capacity

Chicks Nos. -N A- -N A-

ii) Installed capacity

Chicks Nos. 80,294,520 70,162,200

(As certified by the

management and not

verified by the Auditors,

being a technical matter)

iii) Actual production**

Chicks Nos. 73,831,189 64,939,739

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

17 Break-up of Turnover

Manufacturing & Trading items :

Chicks Nos. 52,645,022 874,296,577 52,713,542 745,990,278

Hatching Eggs Nos. 22,391,850 379,157,055 22,190,598 328,406,462

Commercial Eggs Nos. 6,174,026 7,988,611 6,263,084 7,771,119

Culls Nos. 1,301,473 158,636,686 1,121,962 130,374,828

Vaccines Doses – 0 3,840,500 840,787

Miscellaneous – 5,234,045 – 5,431,367

Bird rearing and Egg

hatching charges - – 5,756,671 – 1,593,776

TOTAL 1,431,069,645 1,220,408,617

18 Particulars of opening stock


Hatching eggs Nos. 6,236,488 41,269,022 3,857,469 23,845,053

Culls Nos. 395 44,747 139 13,772

Commercial Eggs Nos. 20,820 4,498 24,797 10,160

Vaccines Doses 36,000 10,858 1,479,500 228,646

TOTAL 41,329,125 24,097,631

19 Particulars of closing stock



Culls Nos. 368 55,108 395 44,747


Vaccines Doses – 0 36,000 10,858

TOTAL 47,744,588 41,329,125

20 Particulars in respect of goods purchased for Trading:

Chicks Nos. 4,047,751 70,385,968 5,727,169 89,736,590

Hatching Eggs Nos. 850,750 5,713,359 112,980 1,672,433


Culls Nos. 921,413 97,618,393 862,969 88,420,663

Vaccines Doses – 0 2,434,000 562,845

Miscellaneous – 1,070,826 – 347,776

T O T A L 175,357,971 181,041,044


51


For S. DAGA & CO For and on behalf of the Board of Directors


(F. No.000669S)


Membership No:11617 EXECUTIVE CHAIRMAN VICE-CHAIRMAN &

(PARTNER) MANAGING DIRECTOR

Place : Hyderabad DR K SOMI REDDY V K MURALI MANOHAR


2010-11 2009-10

Unit Quantity Rupees Quantity Rupees

21 Particulars in respect of

Consumption of Raw materials

and packing materials:

Feed & Feed Ingredients M.Tons 21,511 324,177,083 18,480 282,100,529


Vaccines and medicines – 61,002,424 – 42,218,207

Packing material – 8,736,610 – 12,723,449

Miscellaneous – 389,675 – 473,820

TOTAL 618,175,585 569,626,279

22 Value of Indigenous goods,

stores & spares consumed

Imported goods 5.92% 1,527,910 18.41% 3,627,115

Indigenous goods 94.08% 24,278,788 81.59% 16,074,579

TOTAL 25,806,698 19,701,694

23 i) CIF Value of Imports

Store Items 2,104,124 0

Capital Goods 0 1,800,173

ii) Expenditure in Foreign Currency

Travelling Expenses 1,647,751 911,099

Others 794,361 665,414

TOTAL 2,442,112 1,576,513

24 Earnings in Foreign Exchange NIL NIL

25 Previous year's figures have been regrouped /reclassified, wherever necessary to conform to the

current year's classification.


52

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILEPART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956

I Registration 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 1

Date Month Year

State Code 0 1

II Capital Raised during the year (Amount in Rs. Thousands)

Public Issue N I L Rights Issue N I L

Bonus Issue 4 8 4 7 7 Private N I LPlacements

III Position of Mobilisation and Deployment of Funds ( Amount in Rs. Thousands )

Total Liabilities 1 2 6 9 5 3 0 Total Assets 1 2 6 9 5 3 0Source of funds

Paid up Capital 9 7 0 1 2 Reserves and 7 3 9 6 5 9Surplus

Secured Loans 1 0 6 4 0 5 Unsecured N I LLoans

Application of Funds

Net Fixed 4 4 8 7 1 8 Investments 2 4 7 9 9 0Assets

Net Current 9 7 0 1 9 Misc. N I LAssets Expenditure

Accumulated N I L Deferred Tax - 2 1 5 0 7Losses

IV Performance of the Company(Amount in Rs.Thousands)

Turnover 1 4 7 7 6 8 9 Total 1 1 9 0 3 0 3(Total Income) Expenditure

Profit / Loss + 2 8 7 3 8 6 Profit / Loss + 1 9 5 3 4 5Before Tax after tax

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

Earning 2 0 . 1 5 Dividend % * 2 5 %per share in Rs. *Recommended

V Generic name of Three Principal Products/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

For and on behalf of the Board of Directors

C JAGAPATI RAO C SURESH RAYUDU

EXECUTIVE CHAIRMAN VICE-CHAIRMAN &

MANAGING DIRECTOR

Place : Hyderabad DR K SOMI REDDY V K MURALI MANOHAR


Documents

BOARD OF DIRECTORS · Date : 20.05.2011 DGM (Corporate Affairs) & Company Secretary. THIRTY THIRD ANNUAL REPORT 2010-2011 4 NOTES: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING