1.  We have audited the attached Balance Sheet of SRINIVASA HATCHERIES
 LTD. as at 31st March 2012 and also the Statement of Profit and Loss
 and the Cash Flow Statement for the year ended on that date annexed
 thereto. These financial statements are the responsibility 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, Statement of Profit and Loss and Cash Flow
 Statement referred to in this report are in agreement with the books of
 account;
 
 d.  In our opinion, the Balance Sheet, Statement of Profit and Loss 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 2012, 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 notes thereon 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 2012;
 
 (ii) in the case of the Statement of Profit and Loss, 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.
 
 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 inventory as compared to book records, have been
 properly dealt with in the books of account.
 
 3.  (a) The company has granted loans to two parties covered in the
 register maintained under section 301 of the Companies Act, 1956. In
 respect of said loans, the maximum amount outstanding at any time
 during the year was Rs 23.53 crores and the year end balance of loan
 granted is Rs 17.14 crores.
 
 (b) In our opinion, the rate of interest and other terms and conditions
 on which loans have been granted to parties 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 generally regular in paying the principal amounts as
 stipulated and has also been regular in the payment of interest to the
 company.
 
 (d) There is no overdue amount, on the date of reporting, in respect of
 loans granted to parties listed in the register maintained under
 section 301 of the Companies Act, 1956.
 
 (e) The company had not taken any loan from companies, firms and other
 parties covered in the register maintained under section 301 of the
 Companies Act, 1956.
 
 4.  In our opinion and according to the information and explanation
 given to us, there are generally adequate internal control procedures
 commensurate with the size of the Company and the nature of its
 business with regard to purchase of inventory and fixed assets and for
 sale of goods and services.
 
 5.  a) On the basis of the audit procedures performed by us, and
 according to the information, explanations and representations given to
 us, the particulars of all transactions in which directors were
 interested, as contemplated under Section 297 and Section 299 of the
 Companies Act, 1956, and which were required to be entered in the
 register maintained under Section 301 of the said Act, have been so
 entered;
 
 b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements entered in the register maintained under Section 301 of
 the Companies Act, 1956 in respect of any party during the year, have
 been made at prices which are reasonable having regard to the
 prevailing market prices at the relevant time.
 
 6.  In our opinion and according to the information and explanations
 given to us, the company has not accepted any deposits from the public
 within the meaning of Section 58A, 58AA of the Companies Act, 1956 or
 any other relevant provisions of the Act and the Rules made there
 under.
 
 7.  In our opinion, the company has the internal audit system
 commensurate with its size and nature of business.
 
 8.  We have broadly reviewed the books of accounts maintained by the
 Company pursuant to the rules made by the Central Government for the
 maintenance of cost records u/s 209 (1) (d) of the Companies Act, 1956
 and we are of the opinion that prima facie the prescribed accounts and
 records have been made and maintained. We have not however made a
 detailed examination of the records with a view to determine whether
 they are accurate or complete.
 
 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 statutory 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 2012 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.
 
 20.  According to the information and explanations given to us, the
 Company has not raised money by public issues during the year.
 
 21.  According to the information and explanations 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.,
 
                                              Chartered Accountants,
 
                                                      (F.No.000669S)
 
                                                    (SHANTILAL DAGA)
 
 Place : Hyderabad                              Membership No.11617
 
 Date : 26 05 2012                                          Partner