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Directors Report of Srinivasa Hatcheries Ltd. Company
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Directors Report of Srinivasa Hatcheries Ltd.

Mar 31, 2014

Dear Members,

The Directors have pleasure in presenting the 36th Annual Report of the Company together with the Audited Financial Accounts for the year ended 31st March, 2014.

FINANCIAL RESULTS (Rs. in Lakhs)

PARTICULARS 2013-14 2012-13

Revenue from Operations 14381.90 13901.14

Other Income 359.97 429.65

Total Income 14741.87 14330.79

Operating Expenses 13955.44 14305.21

Profit beforeTax and Exceptional Items 786.43 25.58

Exceptional Items 0.00 197.34

Profit before Tax 786.43 222.92

Add /(Less): Provision for Tax

For the year (237.76) (81.89)

Deferred Tax - Release (6.34) (46.85)

Provision for tax for earlier years (1.60) (3.95)

MAT Credit Entitlement 0.00 59.72

Profit after Tax 540.73 149.95 APPROPRIATIONS:

a) Proposed Dividend 145.43 145.43

b) Corporate Dividend Tax 23.59 23.59

c) Transfer to General Reserve 54.10 15.00

d) Transfer to Contingency 50.00 50.00

Reserve

e) Profit Carried Forward 4490.64 4223.03

REVIEW OF OPERATIONS

The turnover for the year under review witnessed a slight increase from Rs. 139 crores in the corresponding previous year to Rs. 144 crores. However the Profit Before Tax for the year under review witnessed a rise to Rs. 7.86 crores from Rs. 2.23 crores in the previous year.

The performance of the Poultry Division which accounts for a substantial part in the total turnover of the Company has been impacted positively by increase in price realisations both in layers and broilers and however decrease in volumes and increase in feed cost have had an adverse impact.

As regards the Wind Mill Division, the turnover for the year under review was Rs. 2.23 crores as compared to Rs. 2.45 crores in the corresponding previous year. However the loss in this Division has been substantially reduced to Rs. 0.90 lakhs in the year under review from that of Rs. 8.50 lakhs in the previous year.

TRANSFER TO RESERVES

The Company proposes to transfer Rs. 54.10 lakhs for the year ending 31st March, 2014, to the General Reserve out of the amount available for appropriations. Further an amount of Rs. 4490.64 lakhs is proposed to be retained in the Statement of Profit & Loss for the year ending 31st March, 2014.

DIVIDEND

Your Directors recommend a dividend of Rs. 1.50 per equity share (@ 15%) of the face value of Rs. 10/- each for the year 2013-14 which becomes payable after obtaining the approval from the shareholders at the ensuing 36th Annual General Meeting.

DEMATERIALISATION OF SHARES:

Of the total shares, 6.97% 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

Dr.K.Somi Reddy, Joint Managing Director retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment.

The Company had pursuant to the provisions of Clause 49 of the Listing Agreement entered into with the Bombay Stock Exchange, appointed Dr.T.Krishna Reddy, Sri. Srikant Jilla, Dr.Y.Sanjay Kumar, Dr.A.Sreenivasa Rao and Sri.Vivek Bhargava as Independent Directors of the Company.

As per Section 149 (4) of the Companies Act, 2013 (Act) which came into effect from April 1, 2014, every listed public company is required to have at least one-third of the total number of Directors as Independent Directors. In accordance with the provisions of Section 149 of the Act, these Directors are being re-appointed as Independent Directors to hold office as per their tenure of appointment mentioned in the Notice of the forthcoming Annual General Meeting (AGM) of the company.

AUDITORS

M/s. S. Daga & Co, Chartered Accountants, Hyderabad, the Company''s Statutory Auditors hold office, in accordance with the provisions of the Companies Act, 2013, upto the conclusion of the forthcoming Annual General Meeting and are eligible for reappointment.

CORPORATE SOCIAL RESPONSIBILITY:

As per the Companies Act, 2013, all companies having net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more or a net profit of Rs. 5 crore or more during any financial year will be required to constitute a Corporate Social Responsibility (CSR) Committee of the Board of Directors comprising three or more directors, at least one of whom will be an independent director Aligning with the guidelines, we have constituted a CSR committee comprising Sri.C.Suresh Rayudu as Chairman, Dr.K.Somi Reddy and Sri. Vivek Bharagava as Members of the Committee and Sri.U.Ganesh & Sri.V.K.Murali Manohar as Special Invitees. The Committee is responsible for formulating and monitoring the CSR policy of the Company.

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 2013-14 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 :

* Recurring : NIL

* Total :

* Total R & D Expenditure as a

percentage of total income : Nil

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 124(5) of the Companies Act, 2013, dividends which remained unclaimed for a period of 7 years have been transferred by the Company to the Investor Education and Protection Fund.

Pursuant to the provisions of Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, the Company has uploaded the details of unclaimed amounts lying with the Company on the website of the Company (www. shgroup.in) as also on the Ministry of Corporate Affairs website. 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 31.03.2014 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., HDFC Bank Limited, ICICI 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 of the Company and all others who continue to assist your Company.

for and on Behalf of the Board of Directors

C.SURESH RAYUDU DR.K.SOMI REDDY Vice-Chairman & Joint Managing Managing Director Director Place : Hyderabad Date : 27.05.2014


Mar 31, 2013

To The Members

The Directors have pleasure in presenting the 35th Annual Report of the Company together with the Audited Financial Accounts for the year ended 31st March, 2013.

FINANCIAL RESULTS

(Rs.in Lakhs)

PARTICULARS 2012-13 2011-12

Revenue from Operations 13901.14 13072.05

Other Income 429.68 643.31

Total Income 14330.82 13715.36

Operating Expenses 14305.24 12291.07

Prof t before Tax and Exceptional 25.58 1424.29

Items

Exceptional Items 197.34

Prof t before Tax 222.92 1424.29

Add /(Less): Provision for Tax

For the year (81.89) (274.82)

Deferred Tax - Release (46.85) (390.87)

Provision for tax for earlier years (3.95) (19.72)

MAT Credit Entitlement 59.72 239.87

Prof t after Tax 149.95 978.75

APPROPRIATIONS:

a) Proposed Dividend 145.43 193.91

b) Corporate Dividend Tax 23.59 31.46

c) Transfer to General Reserve 15.00 97.88

d) Transfer to Contingency 50.00 50.00

Reserve

e) Prof t Carried Forward 4223.03 7.10

REVIEW OF OPERATIONS

During the year under review, the Company witnessed a marginal increase in turnover from Rs.. 131 crores to Rs.. 139 crores as compared to the turnover in the previous year. However, there was a steep fall in Prof t Before Tax from Rs.. 14.20 crores to Rs..2.23 crores. The Poultry Division''s performance has been impacted by adverse market for Broilers and rise in input cost majorly in feed and fuel prices.

With regard to the Wind Farm Division, there was a turnover of Rs..2.45 crores in the year under review as compared to Rs..2.08 crores in the previous year. However there was a Loss to the tune of Rs..8.49 lakhs in the year under review in this Division as compared to a Prof t Before Tax of Rs..45 lakhs in the previous year mainly on account of the payment of Annual Maintenance Fee of Rs..30 lakhs and full year depreciation.

TRANSFER TO RESERVES

The Company proposes to transfer Rs..15 lakhs for the year ending 31st March, 2013, to the General Reserve out of the amount available for appropriations. Further an amount of Rs..4223.03 lakhs is proposed to be retained in the Prof t & Loss Account for the year ending 31st March, 2013.

DIVIDEND

Your Directors recommend a dividend of Rs..1.50 per equity share (@ 15%) of the face value of Rs..10/- each for the year 2012- 13 which becomes payable after obtaining the approval from the shareholders at the ensuing 35th Annual General Meeting.

CREDIT RATING

The Company was accorded Highest SME Rating ‘SE1A'' by the premier Credit Rating Agency i.e., Credit Information Services of India Limited (CRISIL) which indicates the Company''s

‘Highest Performance Capability and Highest Financial Strength''.

DEMATERIALISATION OF SHARES:

Of the total shares, 7.06% 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 certif cates 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 certif cate 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.C.Suresh Rayudu, Dr.T.Krishna Reddy and Sri.C.Yugendhar Rao, Directors retire by rotation at the forthcoming Annual General Meeting and being eligible of er themselves for re- appointment.

AUDITORS

M/s. S. Daga & Co, Chartered Accountants, Hyderabad, the Company''s Statutory Auditors hold of ce, in accordance with the provisions of the 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 2012-13 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

Recurring :

Total : NIL

Total R & D Expenditure as a /¦

percentage of total income :

E. (a) FOREIGN EXCHANGE EARNINGS : J NIL (b) FOREIGN EXCHANGE OUTGO : <. 355.11 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 which remained unclaimed for a period of 7 years have been transferred by the Company to the Investor Education and Protection Fund.

Pursuant to the provisions of Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, the Company has uploaded the details of unclaimed amounts lying with the Company as on 27.07.2011 (date of Annual General

Meeting) on the website of the Company (www.shgroup.in) as also on the Ministry of Corporate Af airs website.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 2000, the Directors conf rm that:

1. In preparation of the Annual Accounts for the year ended 31.03.2013 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 af airs of the Company as at the end of the Financial Year and of the prof t of the Company for the period.

3. Proper and suf cient 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., HDFC Bank Limited, ICICI 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: 30.05.2013 Executive Chairman


Mar 31, 2012

The Directors have pleasure in presenting the 34th Annual Report of the Company together with the Audited Financial Accounts for the year ended 31st March, 2012.

FINANCIAL RESULTS

(Rs in Lakhs)

PARTICULARS 2011-12 2010-11

Revenue from Operations 13072.05 14330.37

Other Income 643.31 433.26

Total Income 13715.36 14763.63

Operating Expenses 12291.07 11889.78

Profit before Tax 1424.29 2873.85

Add /(Less): Provision for Tax For the year (274.82) (938.96)

Deferred Tax - Release (390.87) 18.55

(Add) /Less : Provision for tax for 19.72 2.60 earlier years

MAT Credit Entitlement 239.87 -

Profit after Tax 978.75 1950.84

APPROPRIATIONS:

a) Proposed Dividend 193.91 242.39

b) Corporate Dividend Tax 31.46 39.32

c) Transfer to General Reserve 97.88 195.35

d) Transfer to Contingency Reserve 50.00 50.00

e) Profit Carried Forward 4307.10 3701.60

REVIEW OF OPERATIONS

The Company registered a turnover of Rs 137.15 crores during the year under review as against a turnover of Rs 147.64 crores during the corresponding Previous Year. The Company's performance in Poultry Division during the FinancialYear under review is characterized by lower turnover and profitability mainly due to subdued prices of Broiler chicks even though the sale volumes were higher. Further the Profit Before Tax and the Profit After Tax during the year under review were Rs 14.24 crores and Rs 9.79 crores respectively as compared to those of the Previous Year ie., Rs 28.74 crores and Rs.19.51 crores.

As regards the Wind Mill Division, the Company has operationalized the two Wind Mills of 1.5 MW each in Karnataka and generated 56.29 lakh units of power and earned Profit Before Tax of Rs 44.48 lakhs for the year under review.

TRANSFER TO RESERVES

The Company proposes to transfer Rs 97.88 lakhs for the year ending 31st March, 2012, to the General Reserve out of the amount available for appropriations. Further an amount of Rs 4307.10 lakhs is proposed to be retained in the Profit & Loss Account for the year ending 31st March, 2012.

DIVIDEND

Your Directors recommend a dividend of Rs 2.00 per equity share (@ 20%) of the face value of Rs 10/- each for the year 2011- 12 which becomes payable after obtaining the approval from the shareholders at the ensuing 34th Annual General Meeting.

CREDIT RATING

The Company was accorded Highest SME Rating 'SE1A' by the premier Credit Rating Agency Credit Information Services of India Limited (CRISIL) which indicates the Company's 'Highest Performance Capability and Highest Financial Strength'

DEMATERIALISATION OF SHARES:

Of the total shares, 7.80% 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.Srikant Jilla, Sri.Vivek Bhargava and Dr.A.Sreenivasa Rao, 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 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 2011-12 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

- Recurring

- Total NIL

- Total R & D Expenditure as a percentage of total income ,

E (a) FOREIGN EXCHANGE EARNINGS NIL

(b) FOREIGN EXCHANGE OUTGO Rs 26.94 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 31.03.2012 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 : 26.05.2012 EXECUTIVE CHAIRMAN


Mar 31, 2011

The Directors have pleasure in presenting the 33rd Annual Report ot 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 Companys 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 Companys 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 31 st 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 Companys 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 Companys Statutory Auditors hold office, in accordance with the provisions of the 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 Companys 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










Mar 31, 2010

The Directors have pleasure in presenting the 32nd Annual Report of the Company together with the Audited Financial Accounts for the year ended 31st March, 2010.

FINANCIAL RESULTS

(Rupees in Lakhs)

PARTICULARS 2009-10 2008-09

Profit Before Tax 1877.69 153.77 (Add)/Less: Provision for Tax

For the year 687.40 99.03

DeferreO Tax -

(Release) (46.84) (44.07)

Fringe Benefit Tax - 7.00 Profit After Tax 1237.l3 91.81 (Add):

Provision for tax for

earlier years (1.94) (17.84)

Balance of Profit

brought forward (1495.10) (1533,08)

Profit Available for

Appropriation 2734.17 1642.73

APPROPRIATIONS:

a) Proposed Dividend 242.39 96.96

b) Corporate

Dividend Tax 40.26 16.48

c) Transfer to General

Reserve 123.72 9.20

d) Transfer to Contingency

Reserve 50.00 25.00

e) Profit Carried

Forward 2277.80 1495,09 2734.17 1642.73

OPERATIONS & OUTLOOK FOR POULTRY INDUSTRY

It is very heartening to mention that the year 2009- 10 is a very good year in the annals of poultry industry and also for your Company. The performance of the Company, in the wake of prevailing positive trend in the poultry markets, has been spectacular which has resulted in significant growth both in top-line and bottom-line. The contributory factors for this splendid performance are majorly higher price realization for poultry products and to some extent on account of higher sales volumes. However, the performance of the Company tor the year under review is notcomparable with that of the previous year since in the previous year,the poultry industry was in turmoil on account of exorbitant feedprices ana bird flu scare.

The near outlook for the poultry industry is expected to be good in as much as the positive trend still continues in the early part of the current financial year and which is likely to continue in the rest of the financial year too.

BONUS ISSUE:

The Directors are happy to inform you that bonus shares were allotted on 24.05.2010 to the shareholders in the ratio of 1:1, by capitalizing an amount of Rs,4,84,77,500/- from Share Premium Account, after obtaining the shareholders approval through postal ballot, The paid-up capital after the bonus issue stands at Rs, 9,69,55,000/-

The authorized share capital of the Company has been increased from Rs,5,00,00,000/- to Rs. 10,00,00,000/- to accommodate the additional shares arising out of the bonus issue as above. The shareholders approval for increase in authorized share capital has also been obtained through postal ballot.

The Company has been given the Trading Approval for the bonus shares by Bombay Stock Exchange Limited w.e.f.27.05.2010.

DIVIDEND

Your Directors recommend a Oividend of Rs.2.50/- per equity share (@ 25%) of the face value of Rs.10/- each for the year 2009-10 which becomes payable on the expanded capital as a result of bonus issue after obtaining the approval from the shareholders at the ensuing 32nd Annual General Meeting.

DEMATERIALISATION OF SHARES:

Of the total shares, 21.34% shares have not been demaferialized 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 liquiaity for shares.

TRANSFER TO RESERVES

The Company proposes to transfer Rs.123.72 lakhs to the General Reserve out of the amount available for appropriations, Further an amount of Rs. 2277.80 lakhs is proposeO to be retained in the Profit & Loss Account.

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 ot Clause 49 of the Listing Agreement a separate report on Corporate Governance along with the certificate issued by the Companys Statutory Auditors M/s. S.Daga & Co., Chartered Accountants thereupon is given as Annexure-2 to the Directors Report.

DIRECTORS

Sri.C.Suresh Rayudu, Dr.T.Krishna Reddy and Dr.Y.Sanjay Kumar 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 Companys Statutory Auditors hold office, in accordance with the provisions of the 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 2009-10 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 reauirea to be furnished under the Companies (Disclosures of particulars in the Report of BoarO 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. (a) FOREIGN EXCHANGE

EARNINGS : NIL

(b) FOREIGN EXCHANGE

OUTGO : Rs. 15.76 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.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 21 7(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 31.03.2010 the applicable accounting standards have been followed.

2. Appropriate accounting policies have been applied consistently. Judgement and estimates, which are reasonable ana 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 ana 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 ana preventing ana 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 ana co-operation extended to your company by the Companys 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) ana Bharat Egg Producers Association (BEPA), shareholders, customers, dedicatea employees, Share Transfer Agents ana Auditors of the Company and all others who continue to assist your Company.

for and on Behalf of the Board of Directors

C.JAGAPATI RAO

Executive Chairman

Place : Hyderabad Date : 27.05.2010



 
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