The Directors have pleasure in presenting you the Nineteenth Annual
 Report together with Audited Accounts for the year ended 31st March,
 2012.
 
 PERFORMANCE OF THE COMPANY
                                                   (Rs. in Lakhs)
                                     For the year   For the year 
                                            ended          ended
                                       31/03/2012     31/03/2011
 
 Sales & Other Income                       64.96          52.97
 
 Profit/(Loss) before interest               6.84       (-) 7.24
 
 and Depreciation 
 
 Depreciation                                6.96           7.55
 
 Net Profit/(Loss) before tax &
 
 Exceptional items                       (-) 0.12      (-) 14.79
           
 Exceptional items                           6.35          14.14
 
 Net Profit/(Loss) after tax &
 
 Exceptional items                           6.23       (-) 0.65
 
 OPERATIONS:
 
 A.  Farm    : During March, 2011, the Aqua Farm situated at
               Isakapalli  is given on lease. The company also
               invested adequately for improving building structures
               like store rooms, administrative office, godowns, 
               canteen etc so that the entire infrastructure is 
               improved substantially for future operations.
 
 B.  Hatchery: No seed is produced during the year 2011-2012.  
               However shrimp is produced about 17.43 tonnes in 
               ponds situated at Hatchery and achieved a shrimp 
               turnover of Rs. 37.59 lakhs.
 
 DIVIDEND:
 
 In view of huge accumulated losses, no dividend is declared.
 
 FUTURE PROSPECTS:
 
 The company has identified a buyer for its Hatchery at Mypadu in March
 2012 in ''as is where is condition'' and completed the formalities of
 selling the total property at a total price of Rs. 150 Lakhs and could
 repay the interest free unsecured loans extended by promoters for more
 than a decade. With this transaction the company has become debt free
 company and the promoters are reviewing the global market conditions to
 venture into commodities and other related business.
 
 PARTICULARS REGARDING ENERGY CONSERVATION etc.:
 
 Information regarding Energy Conservation and Technology Absorption
 required to be disclosed under Section 217 (1) (e) of the Companies
 Act, 1956 read with Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988 is enclosed as Annexure.
 
 BOARD:
 
 As per Article 145 of Articles of Association of the Company, Sri B.
 Kasiviswanadham, director retires by rotation at the Annual General
 Meeting and being eligible offers himself for re-appointment.  As per
 Article 145 of Articles of Association of the Company, Smt. B.Anitha,
 director retires by rotation at the Annual General Meeting and being
 eligible offers herself for re-appointment.
 
 PARTICULARS OF EMPLOYEES:
 
 None of the employees of your company was in receipt of remuneration
 exceeding the limit prescribed under section 217 (2A) of the Companies
 Act, 1956 during the year.
 
 AUDITORS:
 
 M/s. Garlapati & Co, Chartered Accountants, who are the statutory
 auditors of the company retire at the conclusion of the Nineteenth
 Annual General Meeting and being eligible, offer themselves for
 re-appointment as Statutory Auditors of the Company. The company has
 received a letter from them to the effect that appointment, if made,
 would be within the prescribed limits under section 224 (1B) of the
 Companies Act, 1956.
 
 LISTING AGREEMENT WITH STOCK EXCHANGES
 
 As per the requirement of Listing Agreement, the Company declares that
 it''s securities are listed on the Stock Exchanges of Bombay, Delhi,
 Kolkata, Chennai, and Hyderabad. The company confirms that it has paid
 annual listing fees to the Stock Exchanges of Kolkata, Bombay and
 Chennai for the year 2012-2013. The Hyderabad Stock Exchange Ltd had
 stated that no Annual Listing Fees need be paid in view of their
 de-recognition by SEBI. The company has applied for delisting of the
 Company''s shares to the Stock Exchanges of Kolkata, and Delhi which are
 under process. There was no demand from Delhi Stock Exchange and the
 company has not paid any listing fees.
 
 DIRECTOR''S RESPONSIBILITY STATEMENT:
 
 Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
 1956 your Directors confirm:
 
 a) that in the preparation of the annual accounts for the year ended
 31st March, 2012, the applicable accounting standards have been
 followed along with proper explanation relating to material departures,
 if any;
 
 b) that the directors have selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the company at the end of the financial year 2011-2012
 and of the Profit of the Company for that year.
 
 c) that the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities.
 
 d) that the directors have prepared the annual accounts on a going
 concern basis.
 
 CORPORATE GOVERNANCE:
 
 A separate report on Corporate Governance with Auditor''s certificate on
 its compliance is attached as Annexure to this report.
 
 DELISTING OF SHARES:
 
 Company''s Ordinary Equity shares are originally listed in the Stock
 Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
 Kolkata, Chennai and Hyderabad. The shares of the company are
 compulsorily traded in dematerialized form. The Board considered that
 continued listing on all stock exchanges was not necessary and
 therefore decided to de-list from Delhi and Calcutta stock exchanges in
 pursuance of special resolution passed in the 14th Annual General
 Meeting held on 28th September, 2007. The company since made an
 application for delisting of its shares in Delhi and Kolkata stock
 exchanges and the matter is under consideration of these Stock
 Exchanges.
 
 APPRECIATION:
 
 The Board appreciates the valuable co-operation and support extended by
 all the employees and shareholders of the Company.
 
                                By order of the Board of Directors
 
                                                   B. RAMA KRISHNA
                                      Chairman & Managing Director
 
 Place : Guntur
 Date  : 04-08-2012