19th AR2010 11

19
th
Annual Report
2010-2011
HERITAGE FOODS (INDIA) LIMITED

AN ISO 22000 COMPANY
ear Shareholders
The growing economic strength of modern India, along

with the knowledge cultures, vibrance and enduring spirit
of tradition can create wonders when they come together.
In India there is dynamic, fascinating, diverse and a vibrant
market for Milk and Milk products. This is a beginning of
our journey together and I feel good about what we can
do to fulll the dreams of thousands for a better quality of
life. Of Course there will be challenges for the Company
during the year but, I look to the future with condence.
During the year under reference the gross turnover was

grew by 22% to ` 1101.25 crores when compared to
` 903.31 crores of the previous year. The company has
achieved the growth in the Dairy business and a healthy
performance by the value added product segments in
Dairy division. The retail business portfolio now accounts
for 21.08 % of the Companys gross income. The prot
after tax and exceptional item for the year was ` 1.12
During the tough economic environment, we focused
Crores, when compared to ` 5.72 crores prot of the
our efforts on gaining the knowledge and capabilities
previous year.
to build tomorrows enterprises. So, we are working to

minimize waste, the consumption of energy and fresh
water as well as preserve the natural habitat. In recognition
of our efforts, the Ministry of Energy, Govt. of India had
awarded rst prize on conservation of energy in Dairy
We are happy to announce a dividend of ` 1.20 per equity

(12%) on equity shares of ` 10/- each. (The dividends are
payable on the equity shares outstanding as on record date
and are subject to approval by the shareholders.)
sector during the year. This is the second time we have
We respect and value our customers. Our employees
received the prize from Govt. of India in a consecutive
are our value creators whose efforts and bonds, we
period of last three years. Your Company was able to
cherish. We create Best work environment, in which our
demonstrate the full potential of its assets, management
employees are motivated to actualize their full potential.
capability high quality of products and access to Indian
We provide the required support to them.
markets by achieving the turnover, gross and net prots.

This is attributed to volume growth and better margin in
the core business.
Our own retail outlets enable us to interface directly with
I am grateful to the Board of Directors for their unstinted

support and guidance. I also take this opportunity to
express my gratitude to all our stakeholders, who have
reposed trust in us and extended their constant support.
consumers and provide an ideal platform to showcase

our entire range of products. Our outlets have not only
helped brand Heritage to become ubiquitous but also
have managed to provide a very rewarding employment
opportunity to hundreds of entrepreneurs across south
India. During the current year, we have projected a goal
of setting up more number of Heritage parlours.
Thank you
D Seetharamaiah
Chairman
( ` in Crores)
2010-11 2009-10
Turnover
08-09
07-08
06-07
05-06
04-05
03-04
02-03
01-02
165.07
1096.08
900.38
796.03
588.03
346.33
292.07
266.13
234.49
192.83
5.17
2.93
3.23
40.13
1.22
1.27
0.78
1.35
0.86
0.42
1101.25
903.31
799.26
628.16
347.56
293.34
266.91
235.84
193.68
165.49
Interest and Tax (EBDIT)
39.26
47.03
3.43
23.66
12.17
25.23
20.91
31.60
27.86
20.10
Depreciation
19.94
19.64
17.22
10.55
6.78
4.80
4.01
3.94
4.50
2.49
Interest
15.97
16.67
14.58
12.43
1.84
0.40
0.60
0.28
0.13
0.38
1.84
4.98
6.58
(0.26)
1.82
6.39
6.14
9.75
8.33
6.12
Other Income
Total Income
Earnings before Depreciation,
Provision for Taxation

(Including Deferred Tax & FBT)
Prot /(Loss) after Tax
0.94
1.72
13.64
10.16
17.62
14.91
11.11
Cash Prot/ (Loss)
23.29
30.35
(11.15)
11.49
8.51
18.44
14.17
21.57
19.41
13.60
Equity Dividend (%)
12.00
18.00
Nil
18.00
30.00
30.00
30.00
27.50
27.50
20.00
1.61
2.42
Nil
2.13
3.51
3.42
3.42
3.10
3.10
2.00
Dividend Payout
1.12
5.60 ( 35.61)
(Including Tax on Dividend)
Equity Share Capital
11.53
11.53
11.53
11.53
9.99
9.99
9.99
9.99
9.99
10.78
Reserves and Surplus
75.01
75.35
69.24
104.17
59.31
62.50
52.65
45.84
34.53
24.14
Networth
86.53
86.87
80.77
115.70
69.30
72.49
62.64
55.83
44.52
34.92
Gross Fixed Assets
317.50
294.24
264.47
206.45
128.88
80.15
72.69
63.87
53.62
43.77
Net Fixed Assets
221.72
215.24
203.68
162.41
95.38
53.33
50.38
45.49
38.82
32.96
Key Indicators
2010-11 2009-10
Earnings per share - `.
Cash Earnings per share - `.
08-09
07-08
06-07
05-06
04-05
03-04
02-03
01-02
0.97
4.85
(30.89)
0.92
1.73
13.65
10.17
17.64
14.93
10.29
20.20
26.32
(9.67)
9.96
8.51
18.46
14.19
21.59
19.43
12.61
Book Value per share - `.
75.06
75.35
70.05
100.35
69.37
72.57
62.70
55.88
44.56
32.38
Debt* : Equity Ratio
1.15:1
1.34:1
1.50:1
0.96:1
0.79:1
0.00:1
0.00:1
0.01:1
0.01:1
0.14:1
3.58
5.22
0.43
4.02
3.51
8.63
7.86
13.48
14.45
12.18
EBDIT/Turnover %
Net Prot Margin %
0.10
0.62
(4.47)
0.16
0.50
4.65
3.81
7.47
7.70
6.71
Return on Networth %
1.29
6.45
(44.09)
0.81
2.48
18.81
16.22
31.56
33.49
31.82
* Long Term Debt
19th Annual Report 2010-11
Contents
Corporate Information
Notice
Directors Report
Management Discussion and Analysis
12
Report on Corporate Governance
15
Ofce and Plant Locations
21
Corporate Governance Certications
25
Auditors' Report
26
Balance Sheet
29
Prot and Loss Account
30
Schedules forming part of Balance Sheet and Prot and Loss Accounts
31
Signicant Accounting Policies
37
Notes on Accounts
38
Balance Sheet Abstract
52
Cash Flow Statement
53
Secretarial Auditors' Report
54
Consolidated Financial Statements
55
Attendance Slip and Proxy Form
77
Important Communication to Members

The Ministry of Corporate Affairs has taken a Green Initiative in the Corporate
Governance by allowing paperless compliances by the companies and has issued circulars
stating that service of notice/ documents including Annual Report can be send by e-mail to the members.
To support this green initiative of the Government in full measure, members who have not registered their
e-mail addresses, so far, are requested to register their e-mail addresses.
Bring Home Health and Happiness
CORPORATE INFORMATION
Board of Directors:
Sri D Seetharamaiah
Non Executive Independent Chairman
Sri N P Ramakrishna
Independent Director
Dr N R Sivaswamy
Dr A Appa Rao
Dr V Nagaraja Naidu
Non Executive Director
Sri K Kannan
Smt N Bhuvaneswari
Vice Chairperson & Managing Director
Sri N Lokesh
Executive Director
Company Secretary:
CS Umakanta Barik
Senior Management :
Dr M Sambasiva Rao
Board Committees
President
CA A Prabhakara Naidu
Sr.GM- Finance & Accounts
Sri K Durga Prasad Rao
Chief Operating Ofcer-Dairy Division
Sri S Jagdish Krishnan
Chief Operating Ofcer-Retail

& Bakery Divisions
Sri Anil Kumar Srivastava
Chief Operating Ofcer-Agri Division
Audit Committee
Share Transfer & Shareholders/Investors'

Grievance Redressal Committee
Sri D Seetharamaiah, Chairman

Dr N R Sivaswamy
Dr V Nagaraja Naidu
Sri K Kannan

Dr A Appa Rao
Dr V Nagaraja Naidu
Smt N Bhuvaneswari
Remuneration Committee
Dr N R Sivaswamy
Dr A Appa Rao
Sri N Lokesh
Management Committee
Dr A Appa Rao
Smt N Bhuvaneswari
Sri N Lokesh
Registered Ofce
: 6-3-541/C, Panjagutta, Hyderabad - 500 082.
Statutory Auditors
: M/s. Raju & Prasad, Chartered Accountants

401, DIAMOND HOUSEAdj. Amrutha Hills,
Panjagutta, Hyderabad - 500 082.
Bankers
: Bank of Baroda, Andhra Bank,ICICI Bank Limited.
Listed with
: Bombay Stock Exchange Limited, Mumbai,

National Stock Exchange of India Limited, Mumbai.
Registrar and Transfer Agents
: M/s Karvy Computershare Private Limited.

Plot no.17 to 24, Vittal Rao Nagar, Madhapur, Hyderabad - 500 081.
Website
: www.heritagefoods.co.in, www.freshat.in
NOTICE TO SHAREHOLDERS
Members of Heritage Foods (India) Limited are hereby given

notice for the 19th Annual General Meeting of the Company, the
schedule of which and the business to be transacted therein, are
given below:
Day and Date
Thursday 29th September, 2011
Time
11.00 a.m.
Venue
Auditorium Hall, 2nd Floor, Training Block,

National Institute for Micro, Small and Medium
Enterprises (formerly NISIET), Yousufguda,
HYDERABAD 500 045
ORDINARY BUSINESS
1.
To receive, consider and adopt the Audited Balance Sheet

as at 31st March, 2011 and Prot and Loss Account for the
year ended as on that date together with the Reports of the
Directors and the Auditors thereon.
2.
To declare dividend for the year.
3.
To appoint a Director in place of Dr. N.R. Siva Swamy, who

retires by rotation and being eligible, offer himself for reappointment.
4.
To resolve not to ll the vacancy for the time being in the

Board caused by the retirement of Sri K. Kannan who retire
by rotation and doesn't seek for re-appointment.
5.
To appoint Auditors of the Company and to x their

remuneration.
SPECIAL BUSINESS
6.
To consider and if thought t, to pass with or without

modication(s), the following resolution as a Special
Resolution:
RESOLVED THAT pursuant to the provisions of Section
314(1)(b) of the Companies Act, 1956 read with Directors
Relatives (Ofce or Place of Prot) Rules, 2011 as amended
from time to time and other applicable provisions if any of
the Companies Act, 1956, consent of the Company be and is
hereby accorded to Smt. N. Brahmani, W/o of Sri. N. Lokesh,
Executive Director of the Company to hold an ofce or place
of prot as Vice President - Business Development of the
company with effect from 01st June, 2011 on the following
terms and conditions :
a)
Remuneration shall not exceed ` 19,500 per month.
b)
During her tenure, she will be governed by the Rules

and Regulations of the Company as may be applicable
to the employees of the Company from time to time
including change in designation and responsibilities.
c)
The revision of remuneration will be effective only after

obtaining all necessary approvals in this regard.
RESOLVED FURTHER THAT the Board be and is hereby

authorized to do all such acts, deeds and things as may be
necessary to give effect to the resolution and to settle any
questions, difculties or doubts that may arise in this regard.
7.
To consider and if thought t, to pass with or without

modication(s), the following resolution as an Special
Resolution:
RESOLVED THAT pursuant to the provisions of Sections

198, 269, 309, 310, 311, Schedule XIII as amended from
time to time and other applicable provisions, if any, of the
Companies Act, 1956 (including any statutory modications
or re-enactment thereof, for the time being in force) and subject
to such sanctions and approvals as may be necessary, consent
of the members of the Company be and is hereby accorded
for the re-appointment of Sri. N. Lokesh, as a Whole-Time
Director of the Company designated as Executive Director,
for a period of three years commencing from 1st July 2011
on the following terms and conditions as recommended by
the remuneration Committee and approved by the Board of
Director:
Gross Salary : ` 3.35 lakhs (Rupees Three Lakhs Thirty Five
Thousand Only) per month and fully maintained company
car for ofcial purpose.
Commission : 2% of Net Prot of the Company per annum
computed as per the provisions of the Companies Act, 1956
RESOLVED FURTHER THAT Sri. N. Lokesh, Executive
Director shall also be eligible for the following perquisites/
benets, which shall not be included in the minimum
remuneration as specied below:
a)
Companys contribution towards pension scheme or

Superannuation Fund together with provident fund not
exceeding 25% of the salary wherein contribution towards
Provident Fund shall not exceed 12% of the salary;
b)
Gratuity payable as per the rules of the Company;
c)
Re-imbursement of actual Club fees;
d)
Books & Periodicals and outt requirements not

exceeding to `10, 000/- (Rupees Ten Thousand only)
per month;
e)
Personal accident insurance premium & premium on

mediclaim policy as per the policy of the company;
f)
Insurance of House-hold goods: Actual premium to be

paid by the Company;
g)
Free telephone facility at residence and Mobile phone

facility for ofcial purpose;
h)
Leave travel concession shall be reimbursed to the

extent of one months salary for self and family;
i)
Encashment of un-availed leaves as per the rules of the

company at the time of retirement/cessation of service;
j)
All other payments in the nature of perquisites and

allowances agreed by the Board of Directors from time
to time.
RESOLVED FURTHER THAT in case of losses or inadequacy

of prots in any nancial year during his tenure he will be
eligible for a remuneration of ` 3.35 lakhs (Rupees Three
Lakhs Thirty Five Thousand only) per month as minimum
remuneration and fully maintained company car.
RESOLVED FURTHER THAT the Board of Directors of the
Company on the recommendation of the Remuneration
Committee is hereby authorized to revise the said
remuneration during the currency of his tenure and the total
cost to the Company on account of such revision for any year
during the currency of his tenure is subject to the limits set
out under section 198 and 309 of the Companies Act, 1956
read with schedule XIII thereto.
7.
RESOLVED FURTHER THAT Sri. N. Lokesh shall not be

subject to retirement by rotation during his tenure as an
Executive Director.
By Order of the Board
For HERITAGE FOODS (INDIA) LIMITED
Registered Ofce :
6-3-541/C, Punjagutta,
Hyderabad 500 082
Date: 28th July, 2011
Pursuant to provisions of sub-section (5) of Section 205A the

Companies Act, 1956 the dividend, which remain unclaimed
/ unpaid for a period of 7 years shall be transferred by the
Company to the Investor Education and Protection Fund
(IEPF) established by the Central Government pursuant to
Section 205C of the Companies Act, 1956. The Company has
already transferred unclaimed/unpaid amount of dividends
declared upto the nancial year 2002-03 to the Investor
Education and Protection Fund of the Central Government
as required under Section 205A and 205C of the Companies
Act, 1956.
Information in respect of such unclaimed dividend and the
last date for claiming the same are given below:-
UMAKANTA BARIK
Company Secretary
NOTES:
1.
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE

MEETING IS ENTITLED TO APPOINT A PROXY TO
ATTEND AND VOTE ON POLL INSTEAD OF HIMSELF/
HERSELF AND SUCH PROXY NEED NOT BE A MEMBER
OF THE COMPANY. THE PROXIES TO BE EFFECTIVE,
SHOULD BE DULY STAMPED, COMPLETED, SIGNED
AND DEPOSITED AT THE REGISTERED OFFICE OF THE
COMPANY OR ITS REGISTRAR AND SHARE TRANSFER
AGENT NOT LESS THAN FORTY EIGHT HOURS BEFORE
THE COMMENCEMENT OF MEETING.
2.
MEMBERS/PROXIES SHOULD PRODUCE AT THE

ENTRANCE OF THE VENUE DULY FILLED ATTENDANCE
SLIP FOR ATTENDING THE MEETING.
3.
M/s Karvy Computershare Private Limited (Karvy) is the

Registrar and Share Transfer Agent of the Company.
4.
The Register of Members and the Transfer Books of the

Company will remain closed from Monday 26th September,
2011 to Thursday 29th September, 2011 (both days inclusive).
5.
The dividend as recommended by the Board of Directors

for the year ended 31st March, 2011, when declared at the
Annual General Meeting will be paid to the members whose
names appear:
6.
i)
As Benecial Owners as per list to be furnished by the

Depositories in respect of the shares held in demat form;
and
ii)
As members on the Register of Members of the Company

on record date after giving effect to all valid share
transfers in physical form which would be received by
the Company upto end of business hours on record date.
In order to provide protection against fraudulent encashment

of the Dividend Warrants, shareholders holding shares in
physical form are requested to intimate the company under
the signature of the sole / rst & joint holder, the following
information to be incorporated on the Dividend Warrants:
(i)
Name of the sole / rst & joint holder and the Folio
Number.
(ii)
Particulars of Bank Account.
2003-04
Date of
declaration of
Dividend
29-07-2004
Last date for

claiming unpaid
Dividend
28-07-2011
2004-05
15-07-2005
14-07-2012
2005-06
31-07-2006
30-07-2013
2006-07
22-08-2007
21-08-2014
2007-08
26-09-2008
25-09-2015
2009-10
30-07-2010
29-07-2017
Financial year
ended
Shareholders, who have not so far encashed the dividend

warrant(s) are requested to seek issue of duplicate warrant(s)
by writing to the Companys Registrar and Transfer Agents,
M/s Karvy Computershare Private Limited immediately.
Shareholders are requested to note that no claims lie against
the Company or the said fund in respect of any amounts
which were unclaimed and unpaid for a period of seven
years from the date that they rst became due for payment
and no payment shall be made in respect of any such claims.
8.
9.
Non-resident Indian shareholders are requested to inform

M/s Karvy Computershare Private Limited immediately:
i).
The change in the residential status on return to India for

permanent settlement; and
ii).
The particulars of Bank Account maintained in India if

not furnished earlier.
Corporate Members intending to send their authorized

representatives are requested to send a duly certied copy
of the Board Resolution authorizing their representatives to
attend and vote at the Annual General Meeting.
10. Shareholders, holding shares in physical form, are requested

to notify immediately change of address, if any, to the
Companys Registrar & Share Transfer Agent, M/s. Karvy
Computershare Private Limited, Plot No.17 to 24, Vittal Rao
Nagar, Madhapur, Hyderabad - 500 081.
11. The Register of Directors shareholdings shall be open
for inspection to any member of the Company during the
period beginning 14 days before the date of Companys
Annual General Meeting and ending 3 days after the date of
its conclusion. The said register shall also remain open and
accessible during the Annual General Meeting to any person
having right to attend the meeting.
12. Members seeking any information relating to the Accounts

may write to the Company at 6-3-541/C, Punjagutta,
Hyderabad - 500 082, for attention of Company Secretary at
the earliest.
in M/s.Vertex Venture Management Pte. Ltd., Singapore

for a period of two years before joining the Company. The
Board believes that the experience and knowledge of Smt. N.
Brahmani is more useful for the company.
13. All the documents referred to in the Notice will be available

to the members at the registered ofce of the company
between 10.30 A.M to 12.30 P.M on all working days from
the date hereof upto the date of the Meeting.
As per the Provisions of Section 314(1)(b) of the Companies

Act, 1956 read with Directors Relatives (Ofce or Place of
Prot) Rules, 2011 as amended from time to time and other
applicable provisions if any of the Companies Act, 1956, for
appointment of a Relative of a Director needs shareholders
approval by way of Special Resolution. Hence your Directors
recommend the resolution for approval.
14. At the ensuing Annual General Meeting, Dr. N. R. Siva

Swamy and Sri K. Kannan retire by rotation and being eligible
for re-appointment. Dr. N.R. Siva Swamy offers himself for
re-appointment but Sri K. Kannan expressed his intention
not to seek re-appointment. Sri. N. Lokesh re-appointed as
Executive Director of the company for the period of 3 years
with effect from 01-07-2011. The information or details
pertaining to these directors are provided in terms of Clause
49 of the Listing Agreement with the Stock Exchanges.
Explanatory Statement pursuant to Section 173

(2) of the Companies Act, 1956
Item No.6
Smt. N. Brahmani, aged 23 years is working as Vice President
Business Development of the company with effect from 01st
June, 2011, she is W/o Sri. N. Lokesh, Executive Director and
daughter-in-law of Smt. N. Bhuvaneswari, Vice Chairperson
& Managing Director of the company. Smt. N. Brahmani has
completed Bachelor of Science, Electrical Engineering from
the Santa Clara University, Santa Clara, California, USA and
has Bachelor of Engineering, Electronics and Communication
Engineering from Chaitanya Bharathi Institute of Technology,
Hyderabad, India. She worked as an Investment Associate
None of the Directors of the Company, except Smt. N.

Bhuvaneswari, Vice Chairperson & Managing Director and
Sri. N. Lokesh, Executive Director are interested parties in the
resolution.
Item No.7
The term of appointment of Sri. N. Lokesh was completed as
on 30th June 2011. The Board of Directors at their meeting
held on 19th May 2011 has recommended for re-appointment
of Sri. N. Lokesh as the Executive Director of the Company
with effect from 1st July 2011 for a period of three years upon
the recommendation of the Remuneration Committee and
subject to the approval of the Members of the Company.
The said appointment and remuneration are within the
stipulations of Section 198, 269, 309, 310 and Schedule XIII
of the Companies Act, 1956 as amended from time to time.
Members of the Company are requested to pass the above
resolution as a Special Resolution.
None of the Directors of the Company, except
Smt. N. Bhuvaneswari and Sri.N.Lokesh are interested parties
in this resolution.
STATEMENT OF INFORMATION PURSUANT TO SCHEDULE XIII OF THE COMPANIES ACT, 1956:

I.
General Information:
(1) Nature of Industry
a.
b.
c.
d.
(2) Date of commencement of commercial

production
i.
ii.
iii.
iv.
Procurement, processing, packaging and distribution of Milk & Milk Products (Dairy Division)
Food & Grocery Retailing (Retail Division)
Custom Farming (Agri Division)
Manufacturing (Other than Bread) & Trading of Bakery Products (Bakery Division)
Dairy Division 26-04-1993
Retail Division 29-11-2006
Agri Division 10-03-2008
Bakery Division 01-06-2009
(3) In case of new Companies, expected date of commencement of activities as per project approved by Financial Institutions
appearing in the prospectus: Not Applicable
(4) Financial Performance based on given indicators:
Financial parameters
2006-07
2007-08
Turnover (` in lakhs)
2008-09
2009-10
2010-11
34633
58803
79255
90038
109608
Net Prot as per Prot and Loss Account (` in lakhs)
172
94
(3561)
560
112
Amount of Dividend Paid (excluding dividend tax)

(` in lakhs)
299
182
Nil
207
138
Rate of Dividend declared
30%
18%
Nil
18%
12%
(5) Export performance and net foreign exchange
collaborations: During the year company has exported
the milk products of ` 216 lakhs and have a plan to
export more quantity in the coming years.
in consumer packs instead of bulk sales, introduction of

more value added products besides overall increase in
capacity utilization of the existing plants and increase
of sales as well as margins and moreover scaling up of
retail operations with strong support from back-end Agri
division activities, the overall margins of the company
would progress in the coming years.
(6) Foreign investments or collaborators, if any: NIL

II.
Information about the Appointee:
(1)
Background:
IV. Disclosures:
Sri Nara Lokesh, aged 29 years, is a Post-Graduate in

Business Administration and Management from the Stanford
University, USA and worked in World Bank in various
Projects.
(2)
Past Remuneration: ` 40.20 Lakhs per annum.
(3)
Recognition or Awards: NIL
(4)
Job Prole:
Sri Nara Lokesh is responsible to discharge the duties
entrusted by the Board of Directors from time to time, which
may include initiating speedy and stable growth strategies
for the organization in line with the vision and mission of
the Company, diversication to various other potential
businesses, day-to-day management and administration of
the Company.
(5)
All the elements of remuneration package of the Directos

have been given in the Report on Corporate Governance.
Pursuant to Clause 49 of the Listing Agreement with the

Stock Exchanges, following information is furnished about
the directors proposed to be appointed / re appointed
Brief resume of the Directors, nature of their expertise in specic
functional areas, names of companies in which they hold
directorships and chairmanships of Board Committees and their
shareholding in the Company are provided below:
a)
Dr. N. R. Siva Swamy, aged 74 years is LL.B., M.A.

(Economics), M.A. (Public Administration) and Ph.D. in
Economics from University of Wisconsin, Madison, USA
and also a Fellowship holder of the Ford Foundation, U.S.A.,
and has over 46 years of experience in the eld of Taxation,
Finance, Commerce, Management and Administration. He
was retired as the Chairman of Central Board of Direct Taxes.
He is also a Director of Sri Sarvaraya Sugars Limited and
Heritage International Limited. He is a member of the Audit
Committee of the Board of Directors of Sri Sarvaraya Sugars
Limited. He does not hold any shares in the Company as on
31st March 2011.
b)
Sri. Nara Lokesh, aged 29 years, has done his MBA from
Stanford University, USA, and Bachelor of Science with
specialization in Management Information Systems from
Carnegie Mellon University, Pittsburgh. Mr. N. Lokesh
involved in various World Bank Projects including,
Government of Ethiopias e-Governance Capacity Building,
Government of South Sudan and Liberias Public Sector, ICT
and e- Governance Capacity Building, Global Development
Marketplace, Global Support Center and Global Connectivity
Solutions. He is also a Director of Heritage Finlease Limited,
Heritage Foods Retail Limited, Heritage International Limited,
Heritage Conpro Limited and he is also a director of other
private companies. He holds 11,83,200 Equity shares in the
Company as on 31st March 2011.
Remuneration proposed:
As set out in the resolution for the Item No. 07 of the Notice,
the remuneration was recommended by the Remuneration
Committee and approved by the Board of Directors.
(6)
Comparative remuneration prole with respect to industry,

size of the company, prole of the position and person
(in case of expatriates the relevant details would be with
respect to the country of his origin):
Taking into consideration the size of the Company, the
prole of Sri Nara Lokesh, the responsibilities shouldered by
him, the aforesaid remuneration package is commensurate
with the remuneration package paid to managerial position
in other companies.
(7)
Pecuniary relationship directly or indirectly with the

company, or relationship with the managerial personnel, if
any:
Sri Nara Lokesh is son of Smt. N Bhuvaneswari, Vice
Chairperson and Managing Director of the Company and he
is holding 11,83,200 Equity shares of the Company.
III. Other information:

(1)
(2)
Reasons of loss or inadequate prots: The Company

has been expanding the Retail Chain which is yet to
reach the optimum level of operations and start up
expenses of new stores have been charged to revenue
as per the Accounting Standard (AS) 26. The Margin on
the Dairy products are coming down due to increased
cost of milk procured and drop in prices of fat.
By Order of the Board

For HERITAGE FOODS (INDIA) LIMITED
Registered Ofce:
6-3-541/C, Panjagutta,
Hyderabad 500 082
Date: 28th July, 2011
Steps taken or proposed to be taken for improvement:

With proposal of marketing existing dairy products more
UMAKANTA BARIK
Company Secretary
DIRECTORS' REPORT
Dear Members,
DIVIDEND
Your Directors have pleasure in presenting the 19th Annual Report

of the Company together with the audited statement of accounts
for the year ended 31st March, 2011.
The Board of Directors are happy to recommend a dividend of

` 1.20 per Equity Share (12 percent) aggregating to ` 138.35 lakhs
(excluding dividend tax) for the year 2010-11. The dividend, if
approved at the forthcoming Annual General Meeting, will be
paid to all eligible equity shareholders.
Your Directors believe that the Company remained sensitive

to the need for efcient and sustainable utilization of resources
and following its basic approach to business to Create Shared
Value, it continued to inspire happiness to its shareholders and
the communities where it operates. Your Company continued to
invest resources both in terms of talent and capital in the areas
of water, Nutrition and rural development because these are also
the areas where stakeholders interest and the interests of society
strongly intersect and where your company can create signicant
value for both, in an inclusive manner.
FINANCIAL RESULTS
The nancial performance for the Finanacial Year 2010-11 is
summarised in the following table:
(` in lakhs)
Particulars
Net Sales
Operations
Income
2010-11
from
109608.61
2009-10
90038.47
Add: Other Income
516.89
292.59
Total Income
110125.50
90331.06
106199.89
85628.49
3925.61
4702.57
1596.57
1667.47
1993.98
1964.25
335.06
1070.85
Less: Provision for current taxation
64.04
195.52
Less: Provision for deferred taxation
119.73
302.95
Prot/(loss) after tax
151.29
572.38
Less: Prior period expenses &

taxation
39.36
12.79
Less: Total Expenditure

Prot before Interest,
Depreciation and Tax
Less: Interest
Depreciation & Amortisation
Prot before tax
Prot after prior period expenses
111.93
559.59
Balance brought forward
267.59
Amount available for

appropriation
379.52
559.59
Appropriations
General Reserve
Dividend
Tax on Dividend
Balance carried to Balance Sheet
Total
15.00
50.00
138.35
207.53
22.45
34.47
203.72
267.59
379.52
559.59
The above gures are standalone gures, as three subsidiary

companies are yet to commence business; hence consolidated
gures are not given.
OPERATING RESULTS
During the year under review your Company registered a total
income of ` 110125.50 lakhs as compared to previous years
of ` 90331.06 lakhs. Your Company registered a Prot before
interest depreciation and Tax (PBIDT) of ` 3925.61 lakhs as
compared to previous years PBIDT of ` 4702.57 lakhs.
OPERATIONS
Your Company is aware that the emerging and the increasing
competition requires us to be even more efcient, as we go
forward. The process of sales automation that was initiated earlier
is now fully implemented and provides a robust and integrated
distribution management solutions, that support our efciency in
primary and secondary sales.
We strive to improve the availability of our products with a clear
focus on building distribution by going deep & wide across urban
and rural geographies. This has resulted in improving our reach
through more than 1000 franchisee outlets by end of this nancial
year. Your company is committed to continuous excellence in the
operations. During the year the focus was on building additional
capacity through the willing and able distributors who are longterm associates of your Company and provide the front line eld
force the support and know-how to improve their capability.
Your Company has been growing at a healthy rate in recent
years with continuing focus across its businesses. This market
leadership position and Indias positive economic environment
coupled with a progressive population provides opportunities
for growth. Your Company is therefore, accelerating investment
in capacities to provide consumers a wide product range, from
Popularly Positioned Products for low-income consumers to
premium offerings. In the recent past some signicant investments
have already been initiated. Your Directors are hopeful that the
Government continues to support the Food Processing Sector
so that your Company can continue to expand manufacturing,
employment opportunities and to provide consumers with
affordable products. In order to nance this accelerated capital
expenditure trajectory your company would have a judicious mix
of internal Accruals and Debt.
BUSINESS REVIEW
Dairy Business: The Dairy Industry plays a vital role in the
development of Agriculture Sector. Milk is the only agro-based
commodity that offers immediate marketability and consistent
revenue to the farmers. Considering the demand for milk and
milk products, there is still a lot of scope for increasing the milk
production in India by adopting scientic methods of breeding
and nutrition.
DIRECTORS' REPORT
Your Company is well aware of the industrial scenario and being
alert, focuses mainly on long term goals, steady and protable
development. Its strong brand coupled with the varied product
portfolio enables it to meet adverse conditions condently and
overcome it. Your Company therefore remains condent of its
long term business prospects and its ability to provide a fair return
to the shareholders.
During the current nancial year, your Company proposes to
invest over ` 2549 lakhs for setting up of New units like Bulk
coolers in various regions like Ongole, Tirupathi, Vizag, Hyderbad
and Vijayawada and for setting up packing facilities at Kavali and
Guraja in AP and at Nagarcoil, Tirunelveli District in Tamilnadu
and other supporting facilities to improve the performance and
effective utilisation of existing installed capacities of existing
packing and processing plants.
Retail Business: Demand for organic food and processed food
is increasing in conventional food supply stores because of
development of private labels and increasing interest of large
retailers to sell organic products. The organic food and beverages
market is also expected to benet from subsidies, nancial aids
and R&D programs conducted by different government and nongovernment organizations such as FIBL (Switzerland), APEDA
(India) and USDA (U.S.) to support conventional farmers to switch
to organic farming.
Your company's plan to enhance the portfolio of the existing
brands by bringing in more product categories and sub-categories
under Heritage which draws 15% of its turnover from Private
Label. Your Company plans to double the contributions from
private labels in the next nancial year.
FMCG Private Labels comprise about 5% of a stores sale. Your
company had increased the percentage of its own brands in the
stores, it also initiated to local advertising through hoardings and
radio jingles.
Your company entered with the trading & manufacturing (except
Bread) of Bakery products. The business shall be nurtured during
the nancial year. Your Companys Private Label Strategy is
built around providing exceptional value to customers. It was
focused on optimising private Label sales mix, which witnessed
tremendous customer acceptability across categories like instant
food, snacks, beverages and culinary etc.
Agri Division: The Agriculture sector recorded a growth of 0.2%
of GDP inspite of worst ever monsoon. However, last years
drought impacted agricultural production.The agricultural sector
requires consistent monitoring, creating a conducive environment
for farmers to increase their productivity and sell their products at
competitive prices. There is still a lot of scope for increasing the
productivity in India by adopting scientic methods of cultivation
and farming. Your Company has undertaken custom-farming
activity directly with farmers for certain fruits, vegetables and
expanded the cold storage facilities at its pack-houses.
SUBSIDIARY COMPANIES
In accordance with the general circular issued by the Ministry
of Corporate Affairs, Government of India the Balance Sheet,
8
Prot and Loss Account and other documents of the subsidiary

companies are not being attached with the Balance Sheet of the
Company. Financial information of the Subsidiary Companies,
as required by the said exemption, is disclosed in the Annual
Report.The audited annual accounts and related information of
subsidiaries as applicable will be made available upon request.
In our earlier communication we had communicated that the
company had entered in power sector through its Subsidiary
Company. During the year the Company has completed the
project viability report and appointed a consulting Company for
preparing detailed project report. Once the detailed project report
is received by the Company the process for nancial closure will
be commenced. The detailed project report is expected to be
ready in the third quarter of 2011-12.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to Clause 32 of the Listing Agreement with Stock
Exchanges, applicable provisions of the Companies Act, 1956 and
as per Accounting Standard (AS) 21, (AS) 17 and other applicable
accounting standards, Consolidated Financial Statements and the
Segment Reporting for the year ended on 31st March 2011 are
provided in the Annual Report.
ENVIRONMENT
Your Company is sensitive to the fragility of non-renewable
resources and continues to work towards creating and increasing
awareness for environmental sustainability. Emphasis on
conservation of resources is a priority within the factories. There is
a continuous effort to minimise consumption of natural resources
and reduce waste and omission, while maximising production.
At the same time wastewater discharge per tonne of produce is
reduced by almost 60% as a result of the reusing of water and more
efcient processes that reduce water need. The carbon footprint
has been signicantly reducing through focus on technologies that
improve combustion and emphasis on utilising renewable fuels
such as coconut shells and process waste to replace non-renewable
fuels. In recognition of our efforts, the Ministry of Energy, Govt. of
India, had awarded rst prize on conservation of energy in Dairy
Sector during the year under report. This is the second time we
had received the award from Ministry of Energy, Govt. of India in
a period of last three years.
SUPPLY CHAIN
The current volatile and complex economic environment requires
efcient and cost effective processes. During the year 2010-11 your
Company has ensured timely and efcient supply of materials to
run the factories, accelerating the development of local suppliers.
The distribution of nished goods to consumers across the country
continues to be cost effective.
HUMAN RESOURCES
Your Company strongly believes that people are its assets and
they are key to drive competitive advantage. Recognising the
importance of Human Resources, all efforts have been put by
your Company to ensure that best talent is recruited, trained and
DIRECTORS' REPORT
retained. During the year, your Company has put emphasis on
performance driven culture and appropriate HR tools and processes
have been deployed to ensure clear linkage with rewards.
TRADE RELATIONS
Your Company believes in fostering trust and mutual respect in
employee relations. Your Company engaged employees with trust
and respect by continuously transparently sharing information
through various forums, dialogue and other communication
means. These efforts have received excellent reciprocation from
employees and in its Industrial Relations.
Your Company maintained healthy, cordial and harmonious
industrial relations at all levels. Despite severe competition, the
enthusiasm and unstinting efforts of the employees have enabled
the Company to remain at the forefront of the Industry.
Your Company continued to receive co-operation and unstinted
support from the distributors, retailers, suppliers and others
associated with the Company as its trading partners. The Directors
wish to place on record their appreciation for the same and your
Company will continue in its endeavor to build and nurture strong
links with trade, based on mutuality, respect and co-operation
with each other and consistent with consumer interest.
DIRECTORS
In accordance with Article 107 of the Articles of Association of
your Company and provisions of Section 255, 256 and other
applicable provisions, if any, of the Companies Act, 1956, Dr.
N. R. Siva Swamy and Sri K. Kannan retire by rotation and being
eligible for re-appointment. Dr. N.R. Siva Swamy offer himself
for re-appointment but Sri. K. Kannan expressed his intention not
to seek re-appointment. The vacancy in the Board caused by his
resignation will not be lled up for the time being. The members
of the Board place on record their deep sense of appreciation for
services rendered by Sri K. Kannan during his tenure as member
of the Board.
During the year on the recommendation of Remuneration
Committee, the Board of Directors had recommended to the
Shareholders for the re-appointment of Sri. N. Lokesh as Executive
Director of the Company with remuneration payable of ` 3.35
(Rupees Three Lakhs Thirty Five Thousand Only) Lakhs Per month
(Exclusive of all perquisites) for a period of three years w.e.f 1st
July, 2011.
AUDITORS
M/s. Raju & Prasad, Chartered Accountants, Statutory Auditors
of the Company hold ofce until the conclusion of the ensuing
Annual General Meeting and are eligible for re-appointment. The
company has received letters from the Auditors to the effect that
their re-appointment, if made, would be within the prescribed
limits under Section 224 (1B) of the Companies Act, 1956 and
that they are not disqualied for such re-appointment within the
meaning of Section 226 of the said Act.
The notes on accounts referred to in the Auditors Report are self
explanatory and therefore do not call for any further comments.
CORPORATE SOCIAL RESPONSIBILITY

The strong 19-year plus legacy of your Company has seen evolve
with much in Corporate Social Responsibility (CSR) as in business.
The CSR philosophy of your Company is embedded in its
commitment to all stakeholders, farmers, consumers, employees,
the environment and the society. Your Company believes that it
is this commitment, which will deliver competitive, protable and
sustainable growth.
Your Company has started supporting small scale Industry
Producers, through the Private Labels and encouraged them by
marketing the products through Heritage Fresh and Heritage
Parlours. Sanitation, malnutrition, water scarcity and lack of health
facilities are just some of the challenges that are facing the Indian
villages. As a part of Corporate Social Responsibility your Company
has initiated some of the activities such as sanitation, drinking
water supply, health facilities and other community development
activities through the Heritage Farmers Welfare Trust.
INTERNAL CONTROL SYSTEMS
Your Company has implemented SAP based ERP in Dairy business
during the year, which not only adds to the controls, but has led to
faster information, analysis and improved decision making.
Your Company has a well-dened and documented internal control
system, which is adequately monitored. Checks and balances and
control systems have been established to ensure that assets are safe
guarded, utilized with proper authorization and recorded in the
books of account.
There is a proper denition of roles and responsibilities across the
organization to ensure information ow and monitoring. These
are supplemented by internal audit carried out by Chartered
Accountant rms. Your Company has an Audit Committee
consisting of four Directors, all of whom are independent directors.
The Committee reviews the internal audit reports, statutory audit
reports, the quarterly and annual nancial statements.
PERSONNEL
Your directors would like to place on record their deep sense of
appreciation of the devoted services of the executives, staff and
workers of your Company. In terms of 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, the names and particulars of the employees are required to
be set out in the Annexure to the Directors report. Having regard
to the provisions of Section 219 (1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information is being sent to
all the members of the Company and others entitled thereto. Any
member interested in obtaining such particulars may write to the
Company Secretary at the registered ofce of the Company.
DEPOSITORY SYSTEM
As the Shareholders are aware, your Companys Shares are tradable
in electronic form and the Company has established connectivity
with both the Depositories i.e. National Securities Depository
Limited and Central Depository Services (India) Limited. In view of
DIRECTORS' REPORT
the advantages offered by the Depository System, the shareholders
are requested to avail the facility of dematerialization of the
Companys shares.
TRANSFER OF UN-CLAIMED DIVIDEND
Pursuant to Section 205C (2) of the Companies Act, 1956 read
with the Investor Education and Protection Fund (awareness and
protection of Investors) Rules, 2001 as amended from time to time
the unclaimed dividend amount of ` 9,39,728 (Rupees Nine Lakhs
Thirty Nine Thousand Seven Hundred and Twenty Eight Only) for
the year 2002-03 was transferred to the Investor Education and
Protection Fund during the year and the unclaimed dividend for
the year 2003-04 is due for transfer to the fund.
The Secretarial Audit report, given by Ms. Savita Jyoti, Practicing

Company Secretary, forms part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the
Directors conrm that,
In the preparation of the annual accounts, applicable

accounting standards have been followed.
They have selected such accounting policies and applied

them consistently and made judgements 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
nancial year and of the prot for that period;
They have taken Proper and sufcient 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; and
They have prepared the annual accounts of the company on

a going concern basis.
FIXED DEPOSITS
Your Company has not accepted any xed deposits from the
public during the year.
CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Information required under Section 217 (1) (e) of the Companies
Act, 1956 read with Rule 2 of the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 as
amended from time to time is given in the Annexure forming part
of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis on the Industry structure,
developments, opportunities, threats and review of operational
performance and risk as required under Clause 49 of the Listing
Agreement with the Stock Exchanges forms part of the Annual
Report.
CORPORATE GOVERNANCE
In compliance with the requirements of Clause 49 of the Listing
Agreement with Stock Exchanges, a separate report on Corporate
Governance along with Auditors certicate on its compliance are
given in the Annual Report.
APPRECIATION
Your Directors thank the Companys Bankers and the Financial
Institutions for their help and co-operation extended throughout
the year. Your Directors place on record their appreciation for
the support and co-operation that the Company received from its
stakeholders, customers and suppliers. Your Directors also record
their appreciation for the excellent operational performance of the
staff of the Company that contributed to the achievements of the
Company. The Directors also acknowledge with much gratitude,
the continued trust and condence reposed by the franchises of
the Company.
Your Directors look forward to the future with condence.
For and on behalf of
SECRETARIAL AUDIT REPORT

In tune with your Companys belief in transparent Corporate
Governance practices, Your Company has voluntarily subjected
to Audit of all its secretarial records maintained under various
statutes and rules, regulations, bye-laws etc. made there under.
10
Place : Hyderabad
Date : 28th July, 2011
D. SEETHARAMAIAH
Chairman
DIRECTORS' REPORT
ANNEXURE TO THE DIRECTOR'S REPORT :
A.
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF

BOARD OF DIRECTORS) RULES, 1988
CONSERVATION OF ENERGY
(a)
Energy Conservation Measures taken

Improvement in energy efciency is a continuous process at your company and conservation of energy is given a very high
priority in all our plants and ofces.
(b)
Additional Investments and Proposals for Reduction of Consumption of Energy

The company will be implementing various measures to automate the process, recovery of energy, which will result in reduction
of energy consumption. The company erected De Super Heaters at various plants of the company for conservation of energy and
erection works of Ammonia Chillers completed at various plants for the conversation of energy.
(c)
Impact of the above measures

The above measures have resulted in savings on account of consumption of power and fuel. In recognition of our efforts, the
Ministry of Energy, Govt. of India, had awarded rst prize on conservation of energy in Dairy sector during the year. This is the
second time we had received the award from the Ministry of Energy, Govt. of India in last three years.
(d)
Total Energy Consumption and energy Consumption per unit of production as per Form A attached hereto (Dairy Division only)
FORM A
(Form for disclosure of particulars with respect to Conservation of Energy)
2010-11
A.
B.
POWER AND FUEL CONSUMPTION

1.
Electricity
a.
Purchased
Units - KWH
Total Amount
Rate/Unit - `
b.
Own generation
Through Diesel generator
Units - KWH
Unit per liter of diesel oil
Cost/Unit - `.
2.
Furnace Oil
Quantity (Ltr)
Total cost
Average rate - `
22107880
97209198
4.40
19352586
79732654
4.12
1920997
2.63
17.69
1494441
2.65
13.15
2485286
79104956
33.35
2046727
66144328
32.32
0.29
0.16
0.24
0.13
CONSUMPTION PER UNIT OF PRODUCTION STANDARD

Electricity (KWH/Ltr of milk)
Furnace oil (Ltr of milk)
B.
2009-10
TECHNOLOGY ABSORPTION (ENCLOSED IN FORM B)

FORM B
(Form for disclosure of particulars with respect to absorption)
(` in lakhs)
2010-11
Research & Development (R & D)
Technology absorption, adaptation & innovation
Foreign Exchange Earnings
Foreign Exchange Outgo:
Assets Purchases
Term Loan repayment (incl. Interest)
Others
2009-10
Nil
Nil
Nil
Nil
Nil
215.74
22.40
1377.09
Nil
1399.49
22.20
1579.87
3.00
1605.07
11

OVERVIEW
Management Discussion and Analysis detailing the Companys

objectives and expectations is a forward looking statement
within the meaning of applicable securities laws and regulations.
Actual results could differ materially from those expressed
or implied depending upon the demand-supply conditions,
changes in Government regulations, tax regimes and economic
developments.
Weakness:
The nancial statements have been prepared in compliance with

the requirements of the Companies Act, 1956, guidelines issued
by Securities and Exchange Board of India (SEBI) and Generally
Accepted Accounting Principles (GAAP) in India. The estimates
and judgments relating to the nancial statements have been
made on a Prudent and reasonable basis, so that the nancial
statements reect in a true and fair manner the form and substance
of transactions and reasonably present the state of affairs, prots
and cash ows of the Company for the year.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The dairy industry plays an important role in the socio-economic
development in India. The dairy industry in India is instrumental
in providing affordable nutritional food to the vast population and
also generates huge employment opportunities for people in rural
areas.
Your Company is committed to stringent quality assurance
practices at all its factories and units meeting ISO and safety
standards. Your Company offers a diversied product portfolio
with well-differentiated brands, which have become very popular
with the consumers since they offer value at affordable prices.
More importantly, the company is not content to rest on its laurels
and is constantly striving to add more value to the product it offers
to the consumers.
Your Company is committed to manufacture, supply and sell
nutritional and safe products to satisfy customer requirements
by a motivated team using eco-friendly measures with continual
improvement in quality and food safety.
The Company has consistently shown quality improvement with
regard to various processes keeping strict control on deviations.
Customer complaints are resolved using laid down systems of
quality assurance. Several initiatives are being taken to further
improve the customer satisfaction in consonance with the
Companys quality policy.
Capable human resources
Complex supply Chain conguration
Cascading taxes effects
Entry of bigger Companies
Deteriorating microbiological quality of milk.
Opportunities
Great potential for export of milk products.
Established and expanding domestic market for dairy and

FMCG products.
Increasing demand for uid milk, fresh fruits & vegetables,

quality Bakery products as well as value added Products.
By product utilization for import substitution.
Huge Employment generation & opportunities for Selfemployment.
Liberalized Government policies.
Availability of large resources of unconventional feeds and

fodders for Dairy owners.
Integrated structure for marketing of milk and milk products,

Agri, Bakery and FMCG products.
Threats
Price Volatility of key raw material, packaging materials and

fuel
Non-availability of agro based commodities
Food ination
Excessive grazing pressure on marginal and small community

lands resulting in complete degradation of land.
Extinction of the indigenous breeds of cattle due to

indiscriminate use of crossbreeding programme to enhance
milk production.
Likely entry of Multinational companies in retail business
Increasing cost of capital
RISKS AND CONCERNS

All key functions and divisions are independently responsible to
monitor risks associated within their respective areas of operations
such as production, procurement, treasury, insurance, legal and
other issues like health, safety and environment.
SWOT ANALYSIS
INTERNAL CONTROL SYSTEMS
Strengths:
Your Company has a well-dened and documented internal

control system which is being adequately monitored. Checks and
balances and control systems have been established to ensure that
assets are safe guarded, utilized with proper authorization and
recorded in the books of account.
High quality and safe products at affordable prices and trust

in HFIL
Understanding of Nutrition, Health and Wellness
Strong and well differentiated brands
Well diversied product portfolio across categories
Responsive organisation structure and strong management

team
Distribution structure that allows wide reach and coverage in

the target markets
12
There is a proper denition of roles and responsibilities across the

organization to ensure information ow and monitoring. These are
supplemented by internal audit carried out by a leading Chartered
Accountants and rms. The Company has an Audit Committee
consisting of four independent Directors. The Committee reviews
the internal audit reports, statutory audit reports, the quarterly and
annual nancial statements.

STANDALONE FINANCIAL PERFORMANCE REVIEW
A.
FINANCIAL PERFORMANCE
The following information is a Standalone information of your company and it should be read in conjunction with the nancial statements
and related notes for the Financial Year ended March 31, 2011.
Overview of Standalone Financial Results
2010 - 11
Particulars
` In Lakhs
Net Sales
2009 - 10
% of Revenue
` In Lakhs
% of Revenue
108386.77
98.89
89178.01
1221.84
1.11
860.46
0.96
Total Revenue
109608.61
100.00
90038.47
100.00
Less: Total Expenditure
106199.89
96.89
85628.49
95.10
516.89
0.47
292.59
0.32
3925.61
3.58
4702.57
5.22
Other operating income
Add: Other Income

Prot before Interest, Depreciation and Tax
Less: Interest
Depreciation & Amortisation
Prot / (Loss) before tax
99.04
1596.57
1.46
1667.47
1.85
1993.98
1.82
1964.25
2.18
335.06
0.31
1070.85
1.19
Less: Provision for current taxation
64.04
0.06
195.52
0.22
Less: Provision for deferred taxation
119.73
0.11
302.95
0.34
Prot / (Loss) after tax
151.29
0.14
572.38
0.64
Standalone Segment results:

2010 - 11
Particulars
1.
` In Lakhs
` In Lakhs
% of Revenue
Segment Revenue
(Incl other operating income)
a.
Dairy
86059.64
75.90
68830.17
73.63
b.
Retail
23901.31
21.08
21349.22
22.84
c.
Agri
3109.47
2.74
3024.77
3.24
d.
Bakery
312.96
0.28
274.87
0.29
113383.38
100.00
93479.03
100.00
Total Segment Revenue

Less: Inter Segment Revenue
Net Sales / Income from Operations
2.
2009 - 10
% of Revenue
3774.77
3440.55
109608.61
90038.47
Segment Results
(Prot (+) / (Loss) (-) before tax and Interest)
a.
Dairy
4659.24
5.41
6489.23
9.43
b.
Retail
(2313.33)
(9.68)
(3268.07)
(15.31)
c.
Agri
(244.67)
(7.87)
(307.88)
(10.18)
d.
Bakery
(171.28)
(54.73)
(176.40)
(64.18)
Total Segment Results
1929.96
1.76
2736.87
3.04
Less: I. Interest
1596.57
1.46
1667.47
1.85
1.67
0.00
1.45
0.00
335.06
0.31
1070.85
1.19
ii.
Other un-allocable Expenditure net off
Add: iii. Other un-allocable Income

Total Prot before Tax
---
13

B.
CASH FLOW ANALYSIS

i.
Cash inows
Particulars
HUMAN RESOURCES
2010 - 11
` in Lakhs
Operating Cashow
3854.97
45.64
Released from Working

capital
1386.57
16.42
40.11
0.47
Interest & Dividend on

Investments
Subsidy Received
25.00
0.30
Loan Drawals
3139.28
37.17
Total
8445.94
100.00
Your Company believes that people are its assets and they are
key to drive competitive advantage. With the Vision given to
employees to Seek and Peek in all endeavors, the emphasis has
been on alignment of company goals with the individual objectives
and empowering employees to give their best with the mindset of
Dream, Dare, Deliver.
Recognizing the importance of human resources all efforts have
been put by your Company to ensure that best talent is recruited,
trained and retained. During the year, your Company has put
emphasis on performance driven culture and appropriate HR
tools and processes have been deployed to ensure clear linkage
with rewards. Strong recognition platforms have been created to
encourage people to deliver stretched goals. There has been lot
of emphasis on training and development including self learning,
through coaching and career development opportunities.
INDUSTRIAL RELATIONSHIP
Industrial relationship during the year under review between the
employees at various levels and the management continued to be
peaceful.
INFORMATION TECHNOLOGY
ii
Cash Outows
2010 - 11
Particulars
` in
Lakhs
Repayment of borrowings
Taxes paid
Capital Expenditure
Net Investments
Interest Paid
Dividend Paid
Total
2978.38
54.83
2983.81
9.59
1596.57
242.00
7865.18
%
37.86
0.70
37.94
0.12
20.30
3.08
100.00
Your Company migrated from Oracle ERP E Business suite to SAP

ERP ECC 6.0 Application during the year. SAP Application is being
used for all the modules like procurement, materials management,
Production & Planning, Sales & Distribution and Finance and
controlling (FICO) in Dairy business. The Retail business will
also change over to SAP during 2011-12. This facilitates effective
integration across the Company and online MIS Systems within
the schedule time. The Hardware and network infrastructure
is being constantly reviewed to increase the bandwidth and
reduce operational cost by implementing the cluster concept data
updation for effective usage of existing infrastructure 24 X 7 and
reduce the cost. This is an ongoing process and your Company is
committed to leverage the benets of Information Technology to
enhance and optimize benets to it and its all business associates.
FUTURE OUTLOOK
Your Company has a prudent strategy and competent people
with expertise to deliver planned results. The professionals in
the Company have a dening role in signicantly accelerating its
growth and transformation, and enhancing its position as one of
the most valuable Company.
The FMCG categories in which your Company operates have
signicant growth potential given the low per capita consumption
levels, relative to many other economies. This growth opportunity
will attract more competitors and your Company will defend its
market leadership positions in a determined manner. In the long
run the increased competition is good for all players since it will
accelerate the growth of the market.
Your Company will continue to focus on driving underlying
volume growth by improving its market positions in existing
categories while also leading market development efforts to build
categories and segments for the future.
14
REPORT ON CORPORATE GOVERNANCE

Your Company over the years has followed best practices of
Corporate Governance. The business objective of its management
and employees is to manufacture and Market the Companys
product in such a way as to create value that can be sustained
over the long term for farmers, consumers, shareholders, business
partners and the national economy. Your Company is conscious
of the fact that the success of company is a reection of the
professionalism, conduct and ethical values of its management and
employees. In addition to compliance with regulatory requirements
and endeavours to ensure that highest standards of ethical and
responsible conduct are met throughout the organisation.
Companys Philosophy on Code of Corporate Governance:
Your Companys philosophy on Corporate Governance is founded
upon a rich legacy of fair, ethical and transparent governance
practices, many of which were in place even before they were
mandated. Your Company governance philosophy rests on ve
basic tenets, viz., Managements' accountability to the Company
and shareholders, strategic guidance and effective monitoring by
the Board, protection of minority interests and rights, equitable
treatment of all shareholders as well as transparency and timely
disclosure. Clause 49 has set the benchmark compliance rules for
a listed Company and Your Company is in full compliance with
the requirements.
Composition:
Your Companys policy towards the composition of the Board
is to have an appropriate mix of Executive and Non- executive
Independent Directors to maintain the independence of the Board
and to separate its functions of governance and management.
Currently, the company is having a Non-Executive Chairman and
the number of Independent Directors is more than 1/3 rd of the
total number of directors on the Board. The Board consists of 8
members, 2 of whom are Executive/Whole-time Directors and 6
are Non -Executive Directors.
None of the Directors on the Board is a member of more than 10
Committees and Chairman of more than 5 Committees as specied
in Clause 49 of the Listing Agreement, across all the companies in
which he/she is a director. The Directors have made the necessary
disclosures regarding Committee positions.
The names, categories of directors on the Board, their attendance
at the Board Meetings during the year 2010-11 and the last Annual
General Meeting, and also the number of Directorships and
Committee memberships held by them in other companies are
given below:
BOARD OF DIRECTORS
Attendance Particulars
No. of Board
Meetings
attended
Previous AGM
on 30-07-2010
No. of
other
Directorships $
Sri D Seetharamaiah
Non Executive Independent
Yes
Sri N P Ramakrishna
Yes
Dr N R Sivaswamy
Yes
Dr A Appa Rao @
Yes
Smt.N Bhuvaneswari
Executive
Yes
Dr V Nagaraja Naidu
Non Executive
Yes
Sri.K.Kannan*
Yes
Sri N.Lokesh
Executive
Yes
@
$
#
Committee memberships# (Including

Heritage Foods)
Executive/ Non-Executive/
Independent
Name of the
Director
th
Ceased to be a member of the Audit Committee w.e.f. 29 July 2010.

The directorships held by directors as mentioned above, do not include
directorships in Private Limited Companies
In accordance with Clause 49 of the Listing Agreement, Memberships
/ Chairmanships of only Audit Committee, Shareholders/Investors
Grievance Committee and Remuneration Committee of all Public Limited
Companies has been considered.
During the year Sri. K. Kannan joined in the Board as well as the Audit
Committee (member) of M/s. Kesar Terminal & Infrastructure Limited on
January, 2010 and resigned from the Board as well as the Audit Committee
(member) of M/s. Subhalakshmi Polysters Ltd., on May, 2010.
Member
3
Chairman
5
Board Meetings and Procedures:

During the nancial year 2010-11, ve (5) meetings of the Board
of Directors were held on 27th May, 2010, 29th July, 2010, 27th
October, 2010, 27th January, 2011 and 25th March 2011. The
Company has complied with the provisions of Clause 49 of the
Listing Agreement and the requirements under the Companies Act,
1956 for holding a Board Meeting.
The Board Agenda papers are prepared by the Company Secretary
in consultation with the Chairman of the Company. Agenda
papers for Board Meetings containing all necessary documents /
information, as specied in Clause 49 of the Listing Agreement,
whenever applicable and materially signicant, are made available
to the Board well in advance. The Company has established the
procedures to enable the Board to periodically review compliance
report of laws applicable to the Company.
15
Materially signicant related party transactions

Name
There have been no materially signicant related party transactions,
monetary transactions or relationships between the Company and
directors, the Management, subsidiary or relatives, except those
disclosed in the nancial statements for the year ended March 31,
2011.
The Chairman of the Board, in consultation with the Company

Secretary determines the frequency and duration of the committee
meetings. Recommendations of the committees are submitted to
the Board for approval.
The quorum for meetings is either two members or one-third of the
members of the committee, whichever is higher.
Audit Committee
The Powers, role and terms of reference of the Audit Committee
covers the areas contemplated under Clause 49 of the Listing
Agreement and Section 292A of the Companies Act 1956, besides
other terms as may be referred by the Board of Directors from time
to time. The Powers include investigating any activity with in terms
of reference seeking information from any employee; obtaining
outside legal and other professional advice. The role includes
oversight of Companys nancial reporting process and disclosure
of nancial information to ensure that the nancial statement is
correct, sufcient and credible; recommending the appointment
and removal of Statutory and Internal auditors; xation of audit fee
and approval of payment for other services; discussing with internal
auditors any signicant ndings and follow-up thereon; reviewing
annual and quarterly nancial statements with management before
submission to the Board; reviewing the adequacy of internal
control systems with management, Statutory and internal auditors.
Dr V Nagaraja Naidu
Member
Non-Executive
Director
Dr N R Siva Swamy
Non-Executive
Member Independent
Director
Sri K Kannan
Non-Executive
Member Independent
Director
Dr A Appa Rao*
Non-Executive
Member Independent
Director
* Ceased to be a member with effect from 29th July 2010.
The time gap between any two meetings was less than four
months. All members of the Audit Committee are nancially
literate, and Sri. D.Seethramaiah and Sri K.Kannan, having rich
nancial management expertise by virtue of their un-comparable
experience and background. The Statutory Auditors and the lead
Internal Auditors are also invited to the Meetings of the Audit
Committee. The President and Senior General Manager Finance
& Accounts are permanent invitees to the Meetings of the Audit
Committee. The Company Secretary acts as the secretary to the
Audit Committee
Remuneration/ Compensation Committee
The Remuneration / compensation Committee of the Board
comprises of three Non-Executive Independent Directors and the
Executive Director. The Remuneration/ Compensation Committee
has been constituted to recommend / review the remuneration of
Managing Directors / Whole Time Directors/Executive Director
and Executives two level below the Board based on their
performance. While deciding the remuneration, the Committee
takes into account the nancial position of the Company, trend
in the Industry, appointees qualication, experience, past
performance, past remuneration etc. The committee met on 29th
July, 2010 during the year 2010-11.
The Constitution of the Remuneration Committee is as under:
Name
Designation
At Present the Audit Committee of the Board comprises of four

Non- Executive Independent Directors. Audit Committee met Five
(5) times during the year 27th May, 2010, 29th July, 2010, 27th
October, 2010, 27th January, 2011 and 25th March 2011.
Sri D Seetharamaiah
Chairman
Dr N R Siva Swamy
Member
The Constitution of the Audit Committee and the attendance of

each member of the said committee are as under:
Dr A Appa Rao
Member
Sri N Lokesh
Member
16
No. of Meetings attended
Non-Executive
Chairman Independent
Director
BOARD COMMITTEES
Currently, the Board has four (4) committees i.e Audit Committee,
Remuneration/compensation Committee, Share Transfer &
Shareholders/Investors Grievance Committee and Management
Committee.
Category
Sri D Seetharamaiah
Board material distributed in advance

Agenda and Notes on agenda are circulated to the Directors in
advance in the dened Agenda format. All material information
is incorporated in the Notes on Agenda for facilitating meaningful
and focussed discussions at the meeting for taking proper decisions.
Designation
Category
Non-Executive
Non-Executive
Non-Executive
Executive Director
Details of remunerations paid/payable to directors for the year ended 31st March 2011 is as under:
Sri D Seetharamaiah
Executive/ Non-Executive/
Independent
Non Executive Independent Director
Loans from
Company
NIL
Sri N P Ramakrishna
Dr N R Siva Swamy
(` In Rupees)
140000
Salary &
perks
NIL
50000
NIL
Dr A Appa Rao
NIL
Smt N Bhuvaneswari
Executive Director
NIL
NA
Dr V Nagaraja Naidu
Non Executive Director
NIL
80000
80000
Sri K Kannan
NIL
45000
45000
Sri N Lokesh
Executive Director
NIL
NA
4020000
Name
Sitting Fees
Commission
Total
140000
50000
80000
80000
115000
115000
4200000
4200000
4020000
The Company has not granted any stock option to any of its directors and employees. Dr. V. Nagaraja Naidu and Sri N.P Ramakrishna,
Non Executive Directors of the Company are holding 29000 and 49000 equity shares of the Company as on 31st March, 2011 respectively.
Besides dividend on equity shares, if any, held by the Directors and payments as mentioned above no other payments have been made nor
have the Directors of the company entered into any transactions of pecuniary nature.
Status of the references / complaints received and replied /
Share Transfer & Shareholder/Investors Grievance Committee :
resolved during the year are given in the following statement:
The Share transfer and Shareholder/Investors Grievance
Committee is empowered to perform all the functions of the Board
in relation to handling of physical share transfer and Shareholders
Grievances. It primarily focuses on review of:
Split-up/Sub-division and Consolidation of shares,
Investor complaints and their redressal;
Queries received from investors;
Work done by the Share Transfer Agent;
Corporate actions related to shareholder issues.
Any allied matter(s) out of and incidental to these functions

and not here in above specically provided for.
The Share transfer and Shareholder/Investors Grievance Committee

of the Board comprises of three Non-executive Directors and the
Vice Chairperson & Managing Director. The committee met four
(4) times during the year 2010-11 on 7th April 2010, 29th July 2010,
27th October 2010 and 27th January 2011.
The Constitution of Share Transfer and Shareholder/Investors'
Grievance Committee and the attendance of each member of the
said committee is as under:
Name
Sri D Seetharamaiah
Dr V Nagaraja Naidu
Smt N Bhuvaneswari
Dr A Appa Rao
Designation
Category
Non-executive Independent Director

Non-executive
Member
Director
Vice Chairperson &
Member
Managing Director
Non-executive InMember
dependent Director
Chairman
No. of
Meeting
attended
4
4
4
4
Sri Umakanta Barik, Company Secretary acts as the secretary of the

Committee who is designated as Compliance Ofcer pursuant to
Clause 47(a) of the Listing Agreement with the Stock Exchanges.
Nature of Reference/ Com- Received Resolved

plaints
(in nos)
(in nos)
Transfer/ Transmission, Change
65
65
of Address & Dividend
Legal proceedings on Share,
Transfer issues and complaints
2
2
from SEBI, Department of Company Affairs, if any
Others
8
8
Pending
(in nos)
0
0
0
Management Committee
The role of Management Committee is to authorize whole-time
Directors and ofcers of the Company to deal with day-to-day
business operations such as banking, treasury, insurance, taxes,
administrative, dealing with other government / non-government
authorities and any other urgent activities, which are not otherwise
required to be placed at the meeting of the Board of Directors under
any statute or Regulation/Stipulation of any statutory authority and
to review the companies operations from time to time.
The Management Committee of the Board comprises of two
Executive and two Non-Executive Independent Directors. The
Committee met eight times during the year 2010-11 on 7th April,
2010; 10th June, 2010; 16th August, 2010; 20th September, 2010;
18th October, 2010 and 22nd November, 2010; 24th January 2011
and 21st February 2011.
Code of Conduct
The Board has adopted the Code of ethics and business conduct
for Directors and Senior Management. The code is comprehensive
in nature and applicable to all Directors (Executive as well as NonExecutive) and to Senior Management of the company.
The code of conduct is available on the website of the Company
www.heritagefoods.co.in. All Board members and Senior
Management personnel have afrmed compliance with the Code
of Conduct.
17

The Vice Chairperson & Managing Director of the Company has
afrmed that this Code of Conduct has been complied by the
Board members and Senior Management personnel.
The Company has complied with all the mandatory requirements

of Clause 49 of the Listing Agreement entered into with the Stock
Exchanges.
Code for prevention of Insider Trading Practices
The status of adoption of the non-mandatory requirements

of Clause 49 of the Listing Agreement is as under:
In compliance with the SEBI regulation on prevention of insider

trading, the Company has framed a comprehensive code of
conduct for its management and staff. The code lays down
guidelines, which advises them on procedures to be followed and
disclosures to be made, while dealing with shares of the company,
and cautioning them of the consequences of violations.
(a)
Tenure of Independent Director : No specic tenure has

been prescribed for Independent Directors.
(b)
Remuneration Committee
Committee has constituted.
CEO & CFO Certication
(c)
The Vice-Chairperson & Managing Director and Sr. General

Manager-Finance & Accounts have certied to the Board of
Directors, inter alia, the accuracy of nancial statements and
adequacy of internal controls of the nancial reporting purpose
as required under Clause 49 of the Listing Agreement for the year
ended 31st March, 2011.
Shareholders Rights : Quarterly/Half yearly/Annually

nancial statements are published in newspapers and
uploaded on Company website www.heritagefoods.co.in
(d)
Audit Qualication : The Company already has a record of

un-qualied nancial statements. Auditors have raised no
qualication on the nancial statements.
(e)
Whistle blower policy : The Company has put in place an

un-codied system through which employees and business
associates may report unethical business practices at work
place without the fear of reprisal. The Company has set up a
direct contact initiative under which all employees/business
associates have direct access to the Chairman of the Audit
Committee.
(f)
Risk Management : The Company has laid down procedures

to inform Board members about the risk assessment and
minimization procedures, which are periodically reviewed.
Annual General Meetings

a.
The last three Annual General Meetings were held as under.

Year
Date
Location
Time
Auditorium Hall, 2nd Floor,

Training Block, National Institute
2009-10 30-07-10 for Micro, Small and Medium 11.00 a.m
Enterprises,
Yousufguda,
Hyderabad - 500045
Auditorium Hall, 2nd Floor,
Training Block, National Institute
2008-09 29-09-09 for Micro, Small and Medium 11.00 a.m
Enterprises,
Yousufguda,
Hyderabad-500045
Our Place Charan Pahadi
2007-08 26-09-08 Road, Rd. No. 10, Banjara Hills, 11.00 a.m
Hyderabad
b.
All the special resolutions were passed only on show of

hands at the Annual General Meeting held on 29-09-2009,
and 26-09-2008.
c.
No resolutions were passed by the Companys shareholders

through postal ballot during the year ended 31st March 2011.
d.
At the ensuing Annual General Meeting, there is no resolution

proposed to be passed by postal ballot.
Disclosures
Separate
Remuneration
Means of Communication
The Quarterly / Half yearly/Annual Financial Results are published
in the Business Standard (in English) and Andhra Prabha (in
Regional Language) dailies. The shareholders are provided with
the necessary information with notices sent for the Annual General
Meeting / Extraordinary General Meeting. Any other information
sought by shareholders is being provided on request.
News Releases, Presentations etc: The Quarterly results,
Shareholding Patterns, Ofcial News releases, analysis and
information to investors, etc., are displayed on the companys
website: www.heritagefoods.co.in
Website: The Companys website i.e., www.heritagefoods.co.in
contains a separate dedicated section Investor Relations where
shareholders information is available. Full text of Annual Report is
also available on the website in a user friendly and downloadable
format as per the requirement of Clause 47 of the Listing Agreement.
During the year 2010-11, the Company had no materially signicant

related party transaction, which is considered to have potential
conict with the interest of the company at large. Transaction with
related parties are disclosed in the notes on accounts forming part
of the Annual Report.
Annual Report: Annual Report containing inter-alia Audited

Annual Accounts, Financial Statements, Directors Report,
Auditors Report, Management Discussion and Analysis, Report
on Corporate Governance and other important information is
circulated to Members and others entitled thereto.
The Company has complied with the requirements of regulatory

authorities on capital markets and no penalties or strictures have
been imposed or passed on the Company by Stock Exchange,
SEBI or any other statutory authority, on any matter relating to the
capital markets, during the last three years.
The Ministry of Corporate Affairs has taken a Green Initiative in

the Corporate Governance by allowing paperless compliances
by the companies and has issued circulars stating that service of
notice/ documents including Annual Report can be sent by e-mail
to its members. To support this green initiative of the Government
18

in full measure, members who have not registered their e-mail
addresses, so far, are requested to register their e-mail addresses.
Registrar and Share Transfer Agents (RTA)
General Shareholder Information
M/s Karvy Computershare Private Limited, Plot no.17 to 24, Vittal

Rao Nagar, Madhapur, Hyderabad - 500 081.
Annual General Meeting:
Secretarial Audit
(Day, Date, Time and Venue):
Financial Year
April 1, 2011 to March 31, 2012
A qualied practicing Company Secretary has carried out

secretarial audit every quarter to reconcile the total admitted
capital with National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL) and the total
issued and listed capital. The audit conrms that the total issued
/ paid up capital is in agreement with the aggregate total number
of shares in physical form and the total number of dematerialized
shares held with NSDL and CDSL.
1st Quarter results by
Before 2nd week of August, 11
Market Price Data :
2nd Quarter/Half results by
Before 2nd week of November,11
High / Low during each month of the Financial Year 2010-11.
3rd Quarter results by
Before 2nd week of February,12
Thursday, 29th September, 2011 at 11.00 a.m

Auditorium Hall, 2nd Floor, Training building, National Institute
for Micro Small And Medium Enterprises (Formerly NISEIT),
Yousufguda, Hyderabad-45
Financial calendar (tentative)
4th Quarter & Annual result by Before last week of May,12

AGM for the year 2011-12
Month
September, 2012
NSE (in ` per share)
BSE (in ` per share)
HIGH
LOW
HIGH
LOW
Date of Book Closure
April,10
238.70
192.60
225.00
198.35
26th September, 11 to 29th September, 11 (both days inclusive).
May,10
216.95
160.00
215.00
160.00
June,10
179.45
143.10
179.40
141.10
Listing on Stock Exchanges and Stock Code
July,10
208.50
166.45
208.90
166.30
The Equity Shares of the company are listed on Bombay Stock

Exchange Limited (BSE), Mumbai (Stock code: 519552) and
National Stock Exchange of India Limited (NSE) Mumbai (Stock
code: HERITGFOOD). The annual listing fees for the year 2010-11
(as applicable) have been paid.
August,10
190.00
168.00
184.85
165.00
September,10
258.70
178.40
258.45
180.00
October,10
254.00
213.50
255.00
213.25
The ISIN Number of your company on both the NSDL and CDSL
is INE978A01019
November,10
228.00
173.65
228.00
170.20
Dividend payment date

On 20th October, 2011, subject to shareholders approval.
December,10
232.50
160.00
233.00
159.10
Outstanding ADRs/GDRs/Warrants or any convertible

instruments, conversion date and likely impact on equity : NIL
January,11
240.95
190.00
239.80
195.00
Dematerialisation
February,11
196.35
155.40
197.85
156.80
88.92 % of the Companys paid-up Equity share capital has been

dematerialised as on 31st March, 2011. The trading of the Equity
shares of the company is permitted only in dematerialised form as
per the notication issued by SEBI
March,11
183.70
156.20
185.00
155.70
Performance in comparison to broad based indices

NSE NIFTY and BSE
Total Shares in Demat and Physical form as on 31/03/2011

Sl.
No
Category
No. of
Holders
Total
Shares
% Total
Shares
Physical
2491
1276537
11.07
NSDL
3258
9517971
82.55
CDSL
1233
734992
6.37
Total
6982
11529500
100.00
19
Address for Correspondence

Registrar and Share Transfer Agent
M/s Karvy Computershare Private Limited
Plot No. 17 to 24, Vittal Rao Nagar
Madhapur, Hyderabad - 500 081
Phone : 040-23420815-28 Extn - 187
Fax
: 040 - 23420814 / 23420857
E-mail : einward.ris@karvy.com
Compliance Certicate from Auditors
Certicate from Statutory Auditors of the Company M/s Raju &
Prasad, Chartered Accountants conrming compliance with the
conditions of Corporate Governance as stipulated under Clause
49 of the Listing Agreement is forming part of the Annual Report.
This Certicate has been forwarded to the Stock Exchange where
the securities of the company are listed.
Distribution of Shareholding as on 31st March 2011

Category
From
To
5000
5001
No. of
No. of Shares
Shareholders
% of Total
Shares
6886
1687268
14.63
10000
46
340627
2.95
10001 20000
14
194886
1.69
20001 30000
13
332419
2.88
30001 40000
68947
0.60
40001 50000
96306
0.84
50001 100000
418060
3.63
100001 & Above
13
8390987
72.78
6982
11529500
100.00
TOTAL
For and on behalf of Board of Directors

M/s. HERITAGE FOODS (INDIA) LIMITED
Date : 28th July, 2011

Place : Hyderabad
Categories of Shareholding Pattern as on 31/03/2011

Description
Clearing Members
Employees
No. of
Total
Share Number of
Holders
Shares
17
2138
% of
Total
Shares
0.02
10
1900
0.02
1078162
9.35
HUF
102
183266
1.59
Bodies Corporates
200
1769017
15.34
139179
1.21
109
98535
0.85
Foreign Institutional Investor
Mutual Funds
Non Resident Indians
Overseas Corporate Bodies
5600
0.05
Persons Acting In Concert
14
926434
8.04
Promoters Bodies Corporate
494200
4.29
Company Promoters
3848613
33.38
Resident Individuals
6514
2982456
25.87
6982 11529500
100.00
Total:
20
N.Bhuvaneswari
Vice Chairperson &
Managing Director
Processing and Packing

Stations
6. Darsi
Darsi Post, Prakasam Dist., AP
4. Kanigiri
Kanigiri (Md), Prakasam (Dt),
2. Chittoor
Sundarajapuram VIL, E.R Palli Post,
G.D Nellore Mandal, Chittoor Dt- 517125
7. Kandukuru
Katuturu Grampanchayat,
Veletivaripalem(M),Kandukuru,
Prakasam Dist., AP
5. Vinukonda
Guntur (Dt), AP
3. B.Kotha Kota
Bering Village, Sankarapuram (Post)
B. Kotha Kota Mandal, Chittoor Dt-517370
8. Kondepi
Kondepi Village & Mandal,
Prakasam Dist., AP
4. Bhattiprolu
Battiprolu Village & Mandal
Guntur Dist, AP.- 522256
9. Muppavaram
Bytamanjuluru Post, J Pangaluru Mandal,
Prakasam Dist., AP
5. Kalluru
Korlagudem (V), Kalluru (M),
Khammam Dist., AP
10. Santhamaguluru
Puthavaripalem (V),
Santhamaguluru(M), Prakasam Dist., AP
6. Pamarru
Yendagandi (Via), Pamarru
East Godavari Dist, AP
11. Kavali
Gouravaram (V),
Kavali (M), Potti Sree Ramulu,
Nellore Dist, AP-524142
Main Dairy Plant

1. Gokul
Kasipentla Village,Chittoor (Dt) AP.-517112
7. Bayyavaram,
Anakapalli (V), Kasimkota (M),
Vishakhapatnam Dist, AP
6. Kaligiri
Basireddypalem (V), Kaligiri (M)
Potti Sree Ramulu Nellore Dist,
AP-524224
7. Challagundla,
Nakrikal (M), Guntur Dt, AP 522615
8. Kodada
Nalgonda Dist., AP
9. Satyawada
Undrajavaram (M), West Godavari, AP
10. Velvadam
Mylavaram (M), Krishna Dt., AP
11. Veeravalli
Bapulapadu Mandal, Krishna Dt., AP
12. Guraja
Mudinepalli Mandal, Krishna Dist., AP
12. Nandigama
Krishna Dist. AP - 521185
8. Bobbili
Mettavalasa (V), Bobbili (M),
Vizianagaram Dist., AP
13. Madhira
Rayapatnam Village, Madhira (M),
Khammam Dist, AP
13. Ravikamatam
Visakhapatnam Dist. AP
9. Narketpally
Cherugattu Village,
Narketpally, Nalgonda, AP.
14. Gantyada
Gantyada (V&M)
10. Uppal
C-10, Road No: 7, IDA Uppal,
Hyderabad 500 039.
15. L.Kota
C/o Sree Sravani Milk Chilling Center,
L.Kota (V&M), Vizianagaram Dist.
11. Vadamadurai,
Morepatti Village,
Dindigul Dist, Tamilnadu. 624802
16. Somavaram
Kirlampudi Mandalam,
Visakhapatanam, AP
12. Bangalore
Yadavanhalli Village,
Bangalore(South), Karnataka-562107
17. Kotananduru
Indugapalli (V), Kotananduru (M),
East Godavari Dist., AP
13. Sangvi
Vijayanagar Sangvi,
Satara District, Maharastra
18. Namakkal
Navani Vellali Patti Village,
Namakkal Dist., Tamilnadu
PROCUREMENT & PROCESSING

CENTERS
19. Tiruvannamalai
Somasipadi Pudhur,
Tiruvannamalai Dist., Tamilnadu
1. Atmakuru
Atmakuru Post, Nellore Dist., AP
20. Uthangarai
Koorsampatti Village,
Dharmapuri Dist., Tamilnadu
2. Nandyala
Sambavaram (V), Gosapadu (M),
Kurnool Dist., AP
3. Hindupur
Cholasamudram (V), Lepakshi (M),
Hindupur, Anantaput Dist.AP
4. Piler
Yerraguntla (V), Piler (M),
Chittoor Dist., AP
5. Madanapalli
Basinikonda Village, Madanapalli Mandal,
Chittoor Dist., AP
21. Santhipuram
Chittoor (Dt), AP.
Mini Chilling Centers

1. Kalakada
Kalakada Mandal,
Chittoor Dt,
14. Poosapatirega
15. Berigai
Berigai (V) & (P),
Krishnagiri (Dt), Tamil Nadu.
BULK COOLERS
1. Banaganapalli,
Yagantipalli (V) & PO,
Kurnool, AP-518124
2. Venkatagiri
Anjaneya Puram(V), Sri Kalahasti(M),
Chittoor Dist., AP.
3. Sri Kalahasti
PeddaKannali (V) & Post, Chittoor Dist., AP.
4. Sathenapalli
Industrial Estate, Guntur Dist., AP
5. Duttaluru
Nellore Dist., AP
6. Alagadapa
Miryalaguda (M), Nalagonda Dist, AP
7. Vatsavai
Krishna Dist., AP
8. Lingapalem
Singagudem (P) West Godavari Dist.
AP - 534462
9. Wyra
Khammam Dist. AP
2. Podalakuru
Nellore Dist. AP-524345
10. K Venkatapauram,
Kandukuru (V),
Vemsur (M), Khamman Dt.
3. Chagarlamarri
Kallugotlapalli (V), Allagadda (M)
Kurnool Dist. AP
11. Dubacharla
Nachugunta (V), Unguturu (M),
West Godavari Dist. AP
21

12. Modavalasa
Denkada (M), Vijayanagaram District.
13. Samarlakota
E-1 Industrial Estate, East Godavari Dist.
14. Chinnagammuluru
Kota Vuratla (M), Vizag Dist.
15. Mulugu
Medak Dist, AP-502279
16. Narsingi
Chegunta (M), Medak (Dt), AP.
17. Vepanapalli
Thalipalli (V), Krishnagiri (Dist), Tamilnadu
18. Hukkeri
Belguam Dist, Maharastra
19. Mehagaon,
Gadingluj (Taluk), Kolhapur Dt,
Maharastra
20. Bijawadi
Satara (Dt), Maharastra
Bulk Coolers Franchisee

1. Toopran
Medchal (M), Medak Dist: 502334
2. Medchal
Ranga Reddy Dist, AP-501401
3. Gagilapur
Qutbullahpur (M), Ranga Reddy District.
4. Gummadidhala,
Medak District. AP
5. Narsapur
Gummadidhala (V), Narsapur Mandal,
Medak District
6. Kowdipalli
Medak (Dt), AP.
7. Pragnapur
Ibrahimpur (V), Chegunta (M),
Medak (Dt), AP.
8. Masaipeta
Chegunta (M),
Medak (Dt), AP.-02247
9. Yapral
Ranga Reddy Dist. AP. Pin: 501087
10. Kanchanaballa,
V.Kota Mandal, Chittoor (Dt), AP.
11. Patrapalli
V.Kota (M), Chittoor Dist
12. Kothaindlu
P.B.Natham post, Kuppam (M),
Chittoor dist, AP.
13. Settipalli
Gudipalli mandal, Chittoor dist,
14. Solapur
Hukkeri (Taluk), Belguam (Dt),
Karnataka.
15. Saswad
Phaltan(Taluk),
Satara (Dt), Maharastra.
16. Pangire
Kolhapur Dist, Maharastra
22
1. Amalapuram
Batinavilli, Amalapuram,
East Godavari Dist., AP
Rajahmundry Sales Ofce

D.No: 75-8-12, First Floor,
Vimalamma Hospital Junction,
Gandipuram-2, Rajahmundry.
2. Papireddi Patti,
Alamelu Puram (V), Dharmapuri Dist,
Tamilnadu-636905
Tirupati Sales Ofce

D.No: 19-12-154, RC Road,
Bairagipatteda, Tirupati.
Regional Ofces
Vijayawada Sales Ofce

No: 54-18/1-2, ITI Road, Prasanthi Nagar,
Vijayawada 8, Krishna Dist.
MILK CHILLING AT ICE PLANTS
Ongole Regional Ofce

Heritage Foods (India) Limited,
D.No: 5-356, Alluri Seetharamaraju Street,
Opp.Power Ofce, Kurnool Rood, Ongole, AP
Pin: 523 002.
Vijayawada Regional Ofce
Door No: 54-20-6,
Kanaka Durga Gazetted Ofcers Colony,
Opp. Excise Police Station,
Gurunanak Nagar, Vijayawada 520 008
Krishnagiri Regional Ofce
D.No:1/35-4, Wahab Nagar,
Opp.Sandhya College,
RajKottah, Road, Krishnagiri Pin-635 001
Vizag Regional Ofce
Door No: 50-48-15/2, 3rd Floor,
P&T Colony, Near Gurudwara junction,
Seethammadhara, vizag-13.
Tirupati Regional Ofce
D.No: 8-49, Megana Apartments,
Opp. All India Radio,
Tirupati, Pin: 517 501.
Sangvi Regional Ofce
Vijayanagar Sangvi, Phaltan Taluk,
Satara District.
Sales Ofces
Andhra Pradesh
Chittoor Sales Ofce
Sundararaja Puram, E.R Palli Post,
Chittoor - Puttoor Road, Chittoor
Hyderabad Sales Ofce 1
No: C-10, IDA, Uppal,
Hyderabad-500039
No: 8-3-166/5/2, Register Ofce Road,
Behind Bata Show Room,
Erragadda, Hyderabad.
H.No:3-8-113, Shop No:23 & 24,
Road No:5, Chandrapuri colony,
L.B Nagar, Hyderabad
Shop No: 192 Cellar, Mamatha Estates, Allwyn
Indhra Reddy Colony,
Besides Subcourt, Miyapur
Visakhapatnam Sales Ofce

D.No: 50-48-15/2, P&T Colony,
NH-5 Facing, Seethammadhara,
Visakhapatnam 13
Karnataka
Bangalore Sales Ofce 1
No: 42, Survey No: 5&6, Bikasipura,
Banashankari 5th Stage,
Near Saibaba Temple.
Door No: 220, 3 rd Cross, 2nd Floor,
Shivakrupa Complex, Kasturi
Nagar - 560016.
Yadavanahalli Village, Anekal Taluk,
Gudahatti Road, Bangalore (South) 562107
Maharastra
Mumbai Sales Ofce
Plot No: 15, Shop No: 5, Punit Plaza, Sector 30,
Near Sanpada Railway Station,
Sanpada, Vashi,
Navi Mumbai 400705
Pune Sales Ofce
Sai Sadan, Flat No: 16, Survey No.52/10, Behind
Gold Age Ashram,
Near Mumbai Katrej Highway,
Narhe - Post, Haveli - TQ, Pune - 411042.
Sangvi Sales Ofce
Vijayanagar Sangvi, Phaltan Taluk,
Satara District.
Tamil Nadu
Chennai Sales Ofce 1
Survey No: 16/6, Pariwakkam Main Road,
Seneerkuppam Village, Poonamalle,
Chennai 600056
Chennai Sales Ofce 2
Plot No: 219, Ganeshan Street,
Bhuvaneswari Nagar Extension, Vellachery,
Chennai - 600042
Vadamadurai Sales Ofce
Moorpatti Village, Vadamadurai Post, Dindigul
District 624802
RETAIL STORES AT BANGALORE

1
Basaveshwara Nagar
Chamundi Towers, Coporation No.104,
LIC Colony, WOC Road, Sri Siddiah Puranik
Marg, Bhimajyothi Co-operative Housing
Society, Basaveshwara Nagar, Bangalore-79

2
Jayanagar
5th Block, Ground Floor,
BBMP Khatha No.68, Ward No.58. 10th
Main Road, 36th Creoss,5th Block.
Jayanagar, Bangalore-560041.
Indira Nagar
Sai Shakti , Municipal No.2207,
HAL III Stage, Ward No.74,
80 Feet Road, Kodihalli, Bangalore
Rammurthy Nagar
No.7, Khata No.81/89/1, Kowdenahalli,
Rammurthynagar Hobli,
Bangalore South Taluk, Bangalore
Koramangala
Ground Floor on 383, T.V.R Pride, 16th
Main Road, 3rd Block, Koramangala
Extension, Bangalore 560034
Uttarahalli
Corporation No.131,
Subramanyapura Main Road,
Muneshwara Block, Bangalore - 61
Banashankari
Corporation No.1036, 14th C Main,
BSK IInd Stage, Bangalore 560 050
Yelahanka
Corporation No.325, HIG 1st Stage,
Sector A, Yelahanka, Bangalore - 64
Malleshwaram
Corporation No.92, 3rd Main Road,
Margosa Road, Bangalore 560 003
10 Banaswadi
Corporation No.345, New No.51,
10th Main, 100ft Road,
B.V.Reddy Garden, Kalyan Nagar,
Dodda Banaswadi, Bangalore 43
11 White Field
No.6, BBMP Katha No.205/155,
Thubarahalli Village,
Ramagondanahalli Post,
Varthur Main Road, Bangalore - 66
12 Prashanth Nagar
Site No.1, Hari Ram Aildas Layout
(Prashanth Nagar), Govindarajanagara,
Thimmenahalli Main Road,
Kempapura Agrahara,
Bangalore North Taluk, Bangalore
13 Vijaya Bank Colony
Site No.441, Vijaya Bank Employees
Housing Co-Operative Society Limited
Layout Situated at Bilekahali,
Begur Hobli, Bangalore South Taluk,
Bangalore
14 Coffee Board Colony
Site No 3, Village Khata No. 650,
Sy No.10/1,12/1, Kemapaura Village,
Yelahanka Hobli, Bangalore.
RETAIL STORES AT CHENNAI

1
Madipakkam
Baggyam Ceilo, No.1 & 2,
Bazaar Road, Baliah Garden,
Madipakkam Village,Chennai 91
Gopalapuram
No.17&19, Conron smith road,
Gopalapuram, Chennai 86
Kotturpuram
No.1, 3rd Main Road, Kottur Garden,
Kotturpuram, Chennai 85
Alwarpet
No.26, TT Krishnamachari Road,
Alwarpet, Chennai - 18
19 Ayanavaram
No. 9/5, VP Colony South Street
(Next to ESI Hospital),
Ayanavaram, Chennai 600 023
Nanganallur
Old No. 37, New No. 23, First Main Road,
Nanganallur, Chennai - 061
20 T. Nagar
19/3, Bajullah Road, T. Nagar,
Chennai-600017
Mylapore
Rabiya Building, Old 187/1,
New 238, Rayapeta High Road,
Mylapur, Chennai.
21 Venkatnarayana Road
16/5, Venkatanarayana Road,
T. Nagar, Chennai-600017
Kolathur
Door No. 2, Plot No.2, Velavan Nagar,
Paper Mills Road (next to SAI Mahal),
Kolathur, Chennai.
Valasaravakkam
Greens Riviera, Door no.75,
Dr. Radhakrishnan Road,
Valasaravakkam, Chennai - 87
Shenoy Nagar
No.1/2, 7th Cross Street, Tulasi Apartments,
Pulla Reddy Avenue Road,
Shenoy Nagar (west), Chennai-30
18 Pallikaranai
Plot No.36, Natwest Venkatramana
Apartments, Kamokoti Nagar main Road,
(opp. road to Balaji Dental College),
Pallikaranai, Chennai 100
22 Adayar
Ground oor, Old No.6/1,
New No.17/1, Indira Nagar,
1st Avenue, Adyar, Chennai 20
23 KB Dasan Road
New Door No.32, (Old -43),
Kavingnar Bharathi Dasan Road,
Teynampet, Chennai 600 018
24 Anna Nagar
Plot No.3362-V, AE Block,
10th Main Road, Anna Nagar (West),
Chennai - 600 040
RETAIL STORES AT HYDERABAD
10 Adambakkam
New No. 17, Old No. 16A,
Secretariat Colony Main Road,
Adambakkam, Chennai - 88.
Pragati Nagar
Ground Floor, Plot No.159, 160, 161,
178, 179 & 180, Pragati Nagar, Opp: JNTU,
Kukatpally, Quthbullapur, Hyd-90
11 Mogalivakkam
Plot No.10 & 11,
Mugalivakkam Main Road,
Sriram Nagar, Porur, Chennai-16
Banjara Hills
8-2-686/k3/1, P.No. 3,
Kimtee Banjara Heights, Road12,
Banjara Hills, Hyderabad 500 034
12 Perungudi
Plot No.60, 2nd Main Road,
Thirumalai Nagar Annexe,
Perungudi, Chennai 600 096
Film Nagar
Previously UTI Bank,
(Opp. to More Super Market),
Film Nagar, Hyderabad 500 034
13 Mogappair
No.1427, V.O.C. Street,
Thiruvalluvar nagar,
Mogappair, Chennai 600 037
Vengalrao Nagar
Plot No. 63/A, Municipal No. 8-3-191/67,
Vengalrao Nagar Colony, Hyd-38
Ameerpet
Anand Capital,
Municipal No. 7-1-79/5,79/6,7-1-80,
Ameerpet, Hyderabad 500 000
Sindhi Colony
H-No.1-8-142&143, Prendergasth Road,
Secunderabad- 03
West Marredpally
H.No. 10-2-98 & 99, Tejaswini Arcade,
Plot No. 78, Secunderabad 500 080
Srinagar Colony
Door No.8-3-986 & 986/1
Plot No.124, Srinagar Colony, Hyd.
Malkajgiri
22-1-1/1, Radha Krishna Nagar,
Beside Bank of Maharashtra,
Malkajigiri, Hyderabad
14 Tambaram West
No.2, Venkatesan Street,
Tambaram West, Chennai 600 045
15 Mogapiyyar West
No. PC-1, 80 Feet Road
(Poiseon Biotech),
Mogappair west, Chennai 600 037
16 East Tambaram
457/152, Velachery Main Road
(opp. To Air Force station Road,
Next to UCO Bank),
East Tambaram, Chennai 600 059
17 Choolaimedu
Ground Floor Commercial Shop,
Greata Pearl Apartments, No. 174,
Choolaimedu High Road,Chennai-94
23

10 HMT Nagar
Plot No. A 128, A 129,
Bapuji Nagar, Nacharam Road,
(Beside Trinetra Super Market),
Habsi Guda, Hyderabad 500 004
11 AS Rao Nagar
Yasmai Arcade P.No. A-6/1,
A-6/3, SY No. 500, Kapra,
AS Rao Nagar, Hyderabad 500 062
12 D.D Colony
Ashoka Satyam Enclave, P.No. 2-2-7/1,
Durgabai Deshmukh Colony,
Hyderabad 500 007
13 Himayat Nagar
3-6-430, Sri Laxmi Nilayam,
Himayat Nagar, Hyderabad 29
14 Gacchi Bowli
Plot No.2, Survey No.91,
Ground Floor, Telecom Employees
Co-Operative Housing Society Ltd,
Gacchi Bowli, Hyderabad 32
15 PadmaRao Nagar
Plot no 15, H.no. 6-1-289/9,
Opp. Swarajya Printing Press,
Secunderabad 500 025
16 Tirmalagiri
Ground Floor,
Plot No.84, Durga Vihar Colony,
Tirumalagiri, Hyderabad 500 015
17 Nagole
1 to 6, Survey No.128, Part and 129/2,
Nagole (Village), LB Nagar Municipality,
Hyderabad 500 035
18 Santhosh Nagar
Gilbert Plaza, 12-1-210/4, Near 1S-7,
Hyderabad 500 028
19 Vanasthalipuram
Plot No. 1 & 2, Sy. No. 53 & 54,
Saheb Nagar Khund, Vanasthalipuram,
R R District
20 Nizampet
Sy.No.57, MCK Block, No.2,
Hyder nagar Village (Nizampet Rd),
Kukatpally municipal sub Division,
GHMC, Bala nagar Mandal,
Hyderabad 500 072
24
21 Red Hills
11-6-872/1 to 6,872/A&B, 872/A/1,
Lakdikapool, Hyderabad 500 026
22 Moti Nagar
Grood Floor, Plot No.32,
Survey No.19 & 20, Babbuguda Village,
Moosapet Gram Panchayat,
Kukatpalli Municipality, R R District
23 Vivekananda Nagar Colony
Plot no.2, Sy.No.116/A/P,
MCK Block No.22,
(Leading Road to Allwyn colony),
Kukatpally Village & Municipality,
Balanagar Mandal, R.R. District
24 Kompally
Sree Vensai Towers varuna Block,
Shop No.GF2, Sy. No. 128 (P),
Grampanchayath of Kompally,
Qutbullapur mandal, R.R. District
25 Kondapur
Park View, Plot no.5, Sy.No.6, Kondapur
Village, Serilingampally Municipality, R.R.
Dist
26 Yousafguda
Ground Floor, H.No.8-3-224/4 &
8-3- 224/4/1, Plot No.4, Yellareddyguda,
Hyderabad
27 Madinaguda
Rajamma Commercial Complex,
Sy.No.95, 96, Plot No. 5,6,7,8,
Madinaguda, Sherilingampally (M)
Hyderabad
28 Miyapur
Survey No.44/1,50 & 51,
Shop No.2/A, 2/B, 2/C & 2/D,
Miyapur Village, Serilingampally Mandal,
R.R District
29. KPHB 6th Phase
Ground Floor, Plot No.575/HIG
Survey No.1009, KPHB Colony
Phase6, Kukatpally Village,
Kukatpally Municipality, RR Dist.
30. Banjara Hills Road No.2
Ground Floor,
H.No.8-2-120/86/9/A/7 & 8,
Road no.2, Banjara Hills,
Hyderabad 500 034
31. Jubilee Hills Road No. 36

Ground Floor, Plot no.1244,
Jubilee Hills Colony, Road no.36,
Banjara Hills Locality, Hyderabad
32. Nizampet Village
Ground Floor, Shop No.G1/A,
G1/B, G2, G3/A & G3/B
Plot No.34,35,36 & 37, Balaji Nagar,
Nizampet Village, Hyderabad
DISTRIBUTION CENTERS
1. Hyderabad DC
Heritage Foods (India) Limited
Plot no: 9/4, Block No.3.,
Opp-Nandi Foods, IDA,
Uppal Evedence Technology, Hyd-39.
2. Chennai DC (FMCG and F&V)
Heritage Foods (India) Limited.,
Survey No.16/4,
Parivakkam Road, Senneir Village,
Poonamalli Taluq, Chennai-600056
3
Bangalore DC
(FMCG, F&V and Staples)
Heritage Foods (India) Ltd,
Survy No: 178/2, Hullahally,
C K Palya, Sakalavasa Post,
B.G. Road, Bangalore -83.
AGRI DIVISION
Integrated Pack Houses:
1. Mulugu
Masjid Adavi Village, Mulugu Mandal,
Medak Dist. AP-502279
2. Mattam
Mattam Village, Shanthipuram,
Chittoor Dist. 517423
CORPORATE GOVERNANCE CERTIFICATIONS
AUDITORS' CERTIFICATE ON CORPORATE GOVERNANCE

To
The Members of
Hyderabad
We have examined the compliance of conditions of Corporate
Governance by Heritage Foods (India) 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 in India.
The compliance of conditions of Corporate Governance is the
responsibility 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 nancial statements of the Company.
In our opinion and to the best of our information and explanations
given to us, we certify that the company has complied with the
conditions of Corporate Governance as stipulated in the abovementioned Listing Agreement.
We state that in respect of investor grievances received during the

year ended 31st March, 2011, no investor grievances are pending
against the company for a period exceeding one month as per
records maintained by the company which are presented to the
Share Transfer & Share Holders/Investor' Grievance Redressal
Committee.We further state that such compliance is neither an assurance
as to the future viability of the Company nor the efciency or
effectiveness with which the management has conducted the
affairs of the Company.
For RAJU & PRASAD

CHARTERED ACCOUNTANTS
(Firm No. 003475 S)
Place : Hyderabad
Date : 19th May, 2011
S.Ranganathan
PARTNER
Membership No: 22738
CEO AND CFO CERTIFICATION

To
c.
The Board of Directors

Hyderabad
We, N. Bhuvaneswari, Vice-Chairman and Managing Director and
A. Prabhakara Naidu, General Manager (Finance & Accounts) of
Heritage Foods (India) Limited certify that
a.
b.
We have reviewed the nancial statements and the cash ow

statements for the year and that to best of our knowledge and
belief:
i.
These statements do not contain any materially untrue

statement or omit any material fact or contain statements
that might be misleading
ii.
These statements together present a true and fair view

of the Companys affairs and are in compliance with
existing accounting standards, applicable laws and
regulations.
There are, to the best of our knowledge and belief, no

transactions entered into by the Company during the year,
which are fraudulent, illegal or violative of Companys code
of conduct.
d.
We accept responsibility for establishing and maintaining

internal controls and we have evaluated the effectiveness
of the internal control systems of the Company and we
have disclosed to the auditors and the Audit Committee,
deciencies in the design or operation of internal controls, if
any, of which we are aware and the steps we have taken or
propose to take to rectify these deciencies.
We have indicated to the auditors and the Audit Committee
i.
Signicant changes in internal controls during the year;
ii.
Signicant changes in accounting policies during the

year and that the same have been disclosed in the notes
to the nancial statements;
iii.
That there have been no instances of signicant fraud

of which we have become aware, involving the
management or an employee having a signicant role
in the Companys internal control system.
N Bhuvaneswari
Place : Hyderabad
A. Prabhakara Naidu
Sr. General Manager (F&A)
25
AUDITORS' REPORT
To
vi.
The Members of
HERITAGE FOODS (INDIA) LIMITED,
HYDERABAD.
1.
2.
3.
4.
26
vii. In our opinion and to the best of our information

and according to the explanations given to us, the
said accounts 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:
We have audited the attached Balance Sheet of M/s.

HERITAGE FOODS (INDIA) LIMITED, as at 31st March
2011 and also the Prot and Loss Account for the year
ended on that date annexed thereto and cash ow statement
for the year ended on that date. These nancial statements
are the responsibility of the Companys management. Our
responsibility is to express an opinion on these nancial
statements based on our audit.
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 nancial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
nancial statements. An Audit also includes assessing the
accounting principles used and signicant estimates made
by management, as well as evaluating the overall nancial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order 2003,
as amended by the Companies (Auditors Report) Order
2004, issued by the Government of India, in terms of subsection (4A) of Section 227 of the Companies Act 1956, we
enclose in the annexure a statement on the matters specied
in paragraph 4 and 5 of the said order.
We have obtained all the information and explanations,

which to the best of our knowledge and belief were
necessary for the purpose of our audit.
ii.
In our opinion the Company as required by law has kept

proper books of account so far as it appears from our
examination of the books and proper returns adequate
for the purpose of our audit have been received from
the units not visited by us.
a.
In the case of Balance Sheet, of the state of affairs

of the Company, as at 31st March 2011.
b.
In the case of the Prot and Loss account, of the

prot for the year ended on that date and
c.
In the case of Cash Flow statement, of the cash

ows for the year ended on that date.
For RAJU & PRASAD,

Chartered Accountants,
(FRN: 003475S)
Place : Hyderabad
S.Ranganathan
Partner
ANNEXURE TO AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date)
i)
a)
The Company has maintained proper records showing

full particulars including quantitative details and
situation of xed assets.
b)
These xed assets have been physically veried by the

management during the year and discrepancies noticed
on such verication have been properly dealt with in
the books of account. In our opinion, the frequency of
verication is reasonable having regard to the size of the
company and the nature of the assets.
c)
No substantial part of xed assets has been disposed off

during the year.
a)
The inventory has been Physically veried during the

year by the management. In our opinion, the frequency
of verication is reasonable.
Further to our comments in the annexure referred to in

paragraph 3 above, we report that
i.
As per the information and explanation given by the

company there is no cess payable within the meaning
of Sec 441A of the Companies Act as on 31st March,
2011.
iii.
The Balance Sheet and Prot and Loss Account dealt

with by this report are in agreement with the books of
account maintained.
iv.
In our opinion the Balance sheet, Prot and Loss

account and the cash ow statement comply with the
accounting standards referred to in Sec.211 (3C) of the
Companies Act.1956.
b)
The procedures of physical verication of inventories

followed by the management are reasonable and
adequate in relation to the size of the company and the
nature of its business.
v.
On the basis of written representation given to us, no

director of the Company, as at 31st March 2011 and taken
on record by the Board of Directors we report that none
of the Director as on 31st march 2011 is disqualied
from being appointed as a director under clause (g)
of Sub-Section (1) of Section 274 of the Companies
Act, 1956.
c)
The Company is maintaining proper records of

inventory. The discrepancies noticed on verication
between the physical stocks and the book records were
not material.
a)
The Company has not granted any loans, secured or

unsecured, to companies, rms or other parties covered
ii)
iii)
AUDITORS' REPORT
pursuance of contracts or arrangements entered in the

register maintained under Section 301 of the Companies
Act, 1956 and exceeding value of rupees ve lakhs in
respect of any party during the year, have been made at
prices which are reasonable, having regard to prevailing
market prices at the relevant time.
in the register maintained under Section 301 of the

Companies Act 1956 or to companies under the same
management as dened in Section 370(1-B) of the
Companies Act,1956. Consequently, clauses (iii)(b), (iii)
(c) and (iii)(d) are not applicable.
b)
iv)
v)
The Company has not taken any loans secured or

unsecured from companies, rms or other parties
covered in the register maintained under Section 301
of the Companies Act, 1956 or to companies under the
same management as dened in Section 370(1-B) of the
Companies Act,1956. Consequently, clauses (iii) (f) and
(iii) (g) are not applicable.
In our opinion and according to the information and

explanation given to us, Considering the size of the company
and nature of business of various divisions of the company
with regard to purchase of inventory and xed assets and
with regard to sale of goods and services, the internal control
system commensurate with the size of the company and
nature of its business. During the course of our audit, we
have not observed any continuing failure to correct major
weaknesses in internal control system.
a)
b)
According to the information and explanations given to

us, we are of the opinion that the transactions that need
to be entered into the register maintained under Section
301 of the Companies Act, 1956 have been so entered.
vi)
The Company has not accepted deposits from the public

governed by Section 58A and 58AA of the Companies Act,
1956 for the year under reference.
vii) In our opinion, the Company has an adequate internal audit

system commensurate with the size and nature of its business.
viii) As per the information and explanation given by the Company
and in terms of the letter dated 11/09/09 from MCA, Cost
Audit Branch, we report that the maintenance of cost records
is not applicable to the company.
ix)
a)
The Company is regular in depositing undisputed

statutory dues with the appropriate authorities including
Provident Fund, Investor Education and Protections
Fund, Employees State Insurance, Income Tax, Sales
Tax, Wealth Tax and Other Statutory dues applicable to
it. There are no undisputed statutory dues outstanding
for more than six months as on 31.03.2011.
b)
According to the information and explanations given to

us following are the disputed dues relating to income
tax, wealth tax, cess and sales tax, which have not been
deposited as at 31st March, 2011:
In our opinion and according to the information and

explanations given to us, the transactions made in
Name of the
statue
Nature of the
dispute
Amount
(`.in lakhs)
Period to which the

amounts relate (F.Y)
Forum where the disputes is pending
Income Tax
266.50
2004-05 & 2005-06
Departmental appeal before Income Tax

Appellate Tribunal
Income Tax
18.49
2006-07
General Sales Tax
12.80
1999-00 to 2004-05
The A.P.GST
ACT, 1957
General Sales Tax
95.11
2001-02
The C.S.T ACT
Central Sales Tax
18.78
2001-02
114.00
2007-08
A.P.S.T.A.T (Tribunal)
37.34
2002-03
A.P.S.T.A.T. (Tribunal)
0.71
1998-99
Appeal Pending before STAT
Income Tax
Act, 1961
Income Tax
Act, 1961
The A.P.G.S.T
Act, 1957
AP VAT ACT
The C.S.T ACT
The C.S.T ACT
Input Tax Credit

disallowance
FILING OF C
Forms
FILING OF C
Forms
Companys appeal before CIT (Appeals)

Sales Tax Appellate Tribunal, Andhra
Pradesh.
Writ petition led with High Court. G.O has
been issued by the Govt. of A.P removing
rule 6a purchase tax on milk, the G.O will
be given effect to the appeal at the time of
hearing.
Sales Tax Appellate Tribunal, Andhra
Pradesh
27
AUDITORS' REPORT
x)
The Company does not have any accumulated losses as at the

end of the nancial year under reference and the company
has not incurred cash loss in the nancial year under
reference and in the nancial year immediately preceding
such nancial year.
xi)
The Company has not defaulted in the repayment of its dues

to nancial institutions or banks.
xii)
The Company has not granted loans and advances on the

basis of security by way of pledge of shares, debentures and
other securities.
xiii)
xiv)
In our opinion, the Company is not a chit fund or nidhi /

mutual benet fund / society. Therefore the provisions of
Clause 4 (xiii) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
In our opinion and according to explanations and

information given to us, funds raised on short-term basis
have not been used for long term investment.
xviii) According to the information and explanation given

to us, during the year the Company has not made any
preferential allotment of equity shares/warrants to parties
and Companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix)
The Company has not issued any debentures
xx)
The Company, during the year, has not raised money by

public issues.
xxi)
In our opinion and according to explanations and

information given to us no material frauds on or by the
Company has been noticed during the year.
In our opinion, the Company is not dealing in or trading

in shares, securities, debentures and other investments.
Investments have been held by the company in its own
name.
xv)
The Company has not given any guarantee for loans taken
by others from banks or nancial institutions.
xvi)
In our opinion, the term loans taken by the Company were

applied for the purpose for which they were taken.
28
xvii)
For Raju & Prasad,

Chartered Accountants
(FRN:003475 S)
Place : Hyderabad
Date : 19th May 2011
S.Ranganathan
PARTNER

BALANCE SHEET AS AT 31ST MARCH 2011
Schedule
Ref.
Particulars
As at
31.03.2011
`
As at
31.03.2010
`
SOURCES OF FUNDS:
Shareholders Funds:
Share Capital
01
115295000
Reserves & Surplus
02
750054550
Secured Loans
03
1766082368
Unsecured Loans
04
94483665
115295000
865349550
753451125
868746125
Loan Funds:
Deferred Tax Liability

TOTAL
1755261114
1860566033
89214577
1844475691
168011776
156038635
2893927359
2869260451
APPLICATION OF FUNDS:
Fixed Assets:
Gross Block
05
Less: Depreciation and Amortisation
2942381971
3174969597
790023064
957753712
Net Block
Capital Work-in-Progress
06
Investments
2217215885
2152358907
119795972
87130122
10163910
9204910
Current Assets , Loans and Advances:

Inventories
07
660678778
763056913
Sundry Debtors
08
144385638
120762544
Cash and Bank Balances
09
304406926
246330558
Loans and Advances
10
321667611
358681873
1431138953
1488831888
823624045
792314518
Sub-total
11
Less : Current Liabilities and Provisions

A. Current Liabilities
B. Provisions
Net Current Assets
TOTAL
Signicant Accounting policies
19
Notes on Accounts
20
As per our report attached

For Raju & Prasad
(Firm No. 003475S)
75950857
60763316
546751592
620566512
2893927359
2869260451
For and on behalf of the Board
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Sr. General Manager - Finance & Accounts
Umakanta Barik
Company Secretary
29

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
Schedule
Ref.
Particulars
INCOME:
Sales and operting income
Other Income
12
13
10960860649
51688981
11012549630
9003847177
29259221
9033106399
14
6960447646
1720451909
234918756
587455518
159656853
1079478734
37236265
10779645681
232903949
199397717
33506232
5429091170
1552874694
199773459
485097425
166746637
984667124
(88654633)
8729595876
303510522
196425392
107085130
6404279
11973140
15128813
3503230
11625583
432555
11193028
26759079
37952107
19552323
30294795
57238012
(1465908)
58703920
2744911
55959009
55959009
13835400
2244448
1500000
20372259
37952107
0.97
0.97
20753100
3446830
5000000
26759079
55959009
4.85
4.85
TOTAL
EXPENDITURE:
Materials Consumed
Purchase of Tradable Goods
Power and Fuel
Employee Remuneration
Interest
Other expenses
(Increase)/ Decrease in Stocks
15
16
17
18
TOTAL
PROFIT BEFORE DEPRECIATION AND AMORTISATION
PROFIT FOR THE YEAR
Less :Provision for taxation
Current Taxation
Deferred taxation Liability
NET PROFIT/(LOSS) AFTER TAX
Add/ Less: Prior period (income) / Expenses (Net)
Less: Taxation of Earlier Years
NET PROFIT AFTER PRIOR PERIOD ITEMS
Amount available for Appropriation
Appropriations
Proposed Dividend
Provision for Tax on Dividend
Transfer to General Reserve
TOTAL
Basic and diluted earning per share of Rs.10/- each before extraordinary items
Basic and diluted earning per share of Rs.10/- each after extraordinary items
Signicant Accounting policies
Notes on Accounts
For Raju & Prasad
(Firm No. 003475S)
Year Ended
31.03.2010
`
Year Ended
31.03.2011
`
19
20
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
30
SCHEDULES TO BALANCE SHEET
As at
31.03.2011
Particulars
`
SCHEDULE 1: SHARE CAPITAL
Authorised:
1,80,00,000 Equity Shares of ` 10/- each
(Previous year 1,80,00,000 Equity Shares of ` 10/- each)
20,00,000 Convertible cumulative Preference
Shares of ` 10/- each (Previous year
20,00,000 Preference Shares of ` 10/- each)
Issued, Subscribed & paid-up
1,15,29,500 Equity Shares of `10/- each
fully paid-up (Previous year 1,15,29,500 Equity
Shares of ` 10/- each fully paid-up)
SCHEDULE 2: RESERVES AND SURPLUS
Capital Reserve :
1.
Capital Redemption Reserve
2.
Warrants Money appropriated
3.
Securities Premium account
Defered Government Grants :
Opening Balance
Add: Subsidy received during the year
Less: Subsidy transferred to P&L A/c during the year
Closing Balance
General Reserve:
Opening Balance
Add: Transferred during the year
Closing Balance
Surplus in Prot and Loss Account
TOTAL
SCHEDULE 3: SECURED LOANS
Term Loans from Banks
(Includes Interest accrued and due during the year ` 0.07
crores(Previous Year ` Nil)
[Term Loan due and repayable within one year is
` 31.68 Cr (Previous Year: ` 29.81 Cr)]
Working Capital Loans from Banks
(Includes Interest accrued and due during the year ` Nil
(Previous Year ` Nil)
Short Term Loans from Banks
(Includes Interest accrued and due during the year ` Nil
(Previous Year ` Nil)
TOTAL
SCHEDULE 4: UNSECURED LOANS
Sales Tax Deferment
TOTAL
As at
31.03.2010
`
180000000
180000000
20000000
20000000
200000000
200000000
115295000
115295000
8100000
31868800
465975400
8100000
31868800
465975400
9756260
9756260
2578965
7177295
2500000
9677295
1009755
7177295
8667540
208570551
5000000
213570551
1500000
215070551
20372259
750054550
213570551
26759079
753451125
997901824
1165739754
618180544
589521360
150000000
1766082368
1755261114
94483665
94483665
89214577
89214577
31
32
5284277
274011651
176930434
90912553
16874287
2942381971
2644742000
87130122
139808929
OFFICE EQUIPMENT
INTANGIBLE ASSET
VEHICLES
TOTAL
PREVIOUS YEAR
Capital Work-inProgress
Capital Work-inProgress (Previous

Year)

236898446
306677501
330923500
14270997
20849754
15474410
112936202
FURNITURE &
FIXTURES
164776470
13688073
1485752187
125453385
CIVIL WORKS
IN LEASEHOLD
PROPERTY
7670532
31997138
289577253
274011651
33283529
41424026
1077006
5900990
625381
30244461
3422408
153780
Deletions
`
GROSS BLOCK
Additions
`
PLANT &
MACHINERY
142746787
790776135
BUILDINGS
As at
01.04.2010
`
LAND
Particulars
SCHEDULE 5 : FIXED ASSETS
87130122
119795972
2942381971
3174969597
21081559
105183550
191879197
127785232
1620284196
135719051
822773274
150263538
As at
31.03.2011
`
607951733
790023064
5846197
53110324
76956686
20742106
490725382
32095560
110546809
196425392
199397717
2037129
19259991*
24316837
7740718
105501782
13373735
27167525
For the
Year
`
14354061
31667070
809118
4052253
419434
25417919
968346
On
Deletions
`
790023064
957753712
7074208
72370315
97221271
28063390
570809245
44500949
137714334
As at
31.03.2011
`
DEPRECIATION / AMORTISATION *
As at
01.04.2010
`
150263538
2152358907
2217215885
14007351
32813235
94657927
99721841
1049474952
91218102
685058939
2152358907
11028091
37802230
99973748
92194096
995026805
93357825
680229326
142746787
As at
01.04.2010
`
Net Block
As at
31.03.2011
`
Particulars
SCHEDULE 6: INVESTMENTS
I.
Government Securities:
National Savings Certicates
II. Shares
1) Un-quoted: (Non-Trade, Long Term, at cost)
200000 Equity Shares of ` 10/- each fully paid up in Heritage Finlease Ltd.
2) Investments in Subsidiary Companies
Un-quoted: (Non-Trade, Long Term, at cost)
a) 115000 Equity Shares of ` 10/- each fully
paid up in Heritage Foods Retail Ltd., (Previous Year
50000 Equity shares of ` 10/-each fully paid up)
b) 650000 Equity Shares of ` 10/- each fully
paid up in SKIL Raigam Power (India) Ltd .,
c) 26000 Equity Shares of ` 10/- each fully
paid up in HERITAGE CONPRO LTD
3) Quoted: (Non-Trade, Long Term, at cost)
a) 348 Equity Shares of ` 10/- each at a premium of
` 220/- each fully paid up in Bank of Baroda
b) 363 Equity Shares of ` 10/- each at a premium of
` 80/- each fully paid up in Andhra Bank
TOTAL
Note :
1. Aggregate value of quoted investments: ` 112710/(Previous year: ` 112710/-) and market value of
quoted investments: Rs. 387257/- (Previous year: ` 261699/-)
2. Aggregate value of Un-quoted investments: ` 9910000/(Previous Year: ` 9000000/-)
SCHEDULE 7: INVENTORIES
(As veried and certied by Management)
Stores and Spares
Raw Materials
Packing Material
Stocks under Process
Finished Goods
Tradable Goods
TOTAL
SCHEDULE 8: SUNDRY DEBTORS
Outstanding for more than six months:
Unsecured and considered good
Unsecured and considered doubtful
Other Debtors:
Total Debtors
Less: Provision for doubtful debts
TOTAL
As at
31.03.2011
`
As at
31.03.2010
`
141200
92200
2000000
2000000
1150000
500000
6500000
6500000
260000
80040
80040
32670
32670
10163910
9204910
24416398
229739594
67070652
1635695
165773083
172043356
37649938
289014615
59703961
1411800
239859364
135417235
660678778
763056913
15436117
4225944
19662061
11523587
10544689
22068276
128949521
148611582
4225944
144385638
109238956
131307232
10544689
120762544
33
Particulars
SCHEDULE 9: CASH AND BANK BALANCES
A. Cash on hand
B. Cheques on hand
C. Balances with Scheduled Banks in :
Current Accounts
Deposit Accounts
Margin Money
Unclaimed Dividend Accounts
D. Balances with other Banks in Current Accounts:
Prakasam Dist. Co-op. Central Bank Ltd., A.P.
TOTAL
SCHEDULE 10: LOANS AND ADVANCES
a. Advances to Subsidiaries (Heritage Foods Retail Limited)
b. Advances recoverable in cash or kind or for value to be received
Less: Provision for doubtful advances
c.
d.
e.
22600770
238774515
27962616
10624153
4233758
195165845
15885000
7993326
4645892
304406926
39725
246330558
152703302
2214065
618319
191883554
1867036
Net Advances considered good
150489237
190016518
Total Advances (Unsecured and considered good) (a+b)

Deposits
Tax Deducted At Source & Advance Income Tax
TOTAL
150489237
155498177
15680197
321667611
190634837
137864479
30182557
358681873
24282607
448735157
223705460
16276401
431232069
221561321
4233758
35246956
5180798
82239309
4645892
48768468
6550256
63280112
823624045
792314518
6404279
13835400
2244448
38279189
19552323
20753100
3446830
32198604
TOTAL (A)
34
As at
31.03.2010
`
22807174
4710
SCHEDULE 11: CURRENT LIABILITIES AND PROVISIONS

A. Current Liabilities:
Sundry Creditors:
Dues to Micro and Small Enterprises
Dues to Others
Creditors for Expenses
Liability towards Investor Education and Protection Fund :
Un-claimed Dividend
Other Current Liabilities
Interest accrued but not due on Secured Loans
Trade Deposits
B.
As at
31.03.2011
`
PROVISIONS:
Proposed Dividend
Provision for tax on Dividend
Provision for Leave Encashments
TOTAL (B)
60763316
75950857
TOTAL (A+B)
884387361
868265376
SCHEDULES TO PROFIT & LOSS ACCOUNTS
Particulars
SCHEDULE 12: SALES AND OPERATING INCOME
Domestic Sales
Less: Excise Duty
Export Sales
Other Operating Income
TOTAL
SCHEDULE 13: OTHER INCOME
Interest on Bank and Other Deposits
(TDS ` 175200/-(Previous period : ` 189964/-)
Miscellaneous Income
Subsidy transferred from Deferred Govt.Grants
Lease Rental Income
Prot on sale of assets
Income on Investment: Dividend
Provisions no longer required
Foreign Exchange Gains
TOTAL
SCHEDULE 14: MATERIALS CONSUMED & PURCHASE COST OF TRADABLE GOODS
a. Raw Materials :
Opening Stock
Add: Purchases
b.
Less: Closing Stock

Consumption (a)
Packing Materials :
Opening Stock
Add: Purchases
Less: Closing Stock
Consumption (b)
TOTAL (a + b)
c.
Purchase of Tradable Goods

TOTAL ( c )
SCHEDULE 15: EMPLOYEE REMUNERATION

Salaries, Wages, Bonus & allowances
Contribution to Provident and Other funds
Contribution to Gratuity Fund
Staff Welfare
TOTAL
SCHEDULE 16: INTEREST
On Term Loans from Banks
On Working Capital Loans from Banks
On Other Loans
TOTAL
Year Ended
31.03.2011
`
Year Ended
31.03.2010
`
10817949941
961473
10816988468
21688250
122183931
10960860649
8918265281
464290
8917800991
86046186
9003847177
3844320
3792848
10745142
1009755
15589213
3622536
167035
16710981
51688982
10635070
498294
7248071
5767924
144766
1172249
29259221
292379353
6565214900
6857594253
229739594
6627854659
136548272
5310083585
5446631857
292379353
5154252505
59703961
339959679
399663640
67070652
332592988
6960447646
1720451909
1720451909
42816668
291725958
334542626
59703961
274838665
5429091170
1552874694
1552874694
532431259
31626445
8612977
14784837
587455518
447147565
23981543
1422811
12545506
485097425
96256474
60450596
2949783
159656853
119129105
47383285
234247
166746637
35
SCHEDULES TO PROFIT & LOSS ACCOUNTS
Particulars
SCHEDULE 17: OTHER EXPENSES
Stores ,Spares and consumables
Rent
Rates and Taxes
Bank charges
Insurance
Travelling and Conveyance
Ofce Maintenance
House Keeping Expenses
Books and Periodicals
Electricity Charges
Safety and Security
Communication costs
Printing and Stationery
Repairs and Maintenance:
Buildings
Plant and Machinery
Others
Auditors Remuneration:
As Auditors
For tax audit
Certication and Tax Matters
Audit Expenses reimbursed
Legal and professional charges
Freight Outwards
Selling and distribution expenses
Advertisement
Warehouse and Logistics
Directors Remuneration
Directors sitting fees
Bad debts written off
Provision for doubtful debts
Bad and doubtful advances written off
Loss on sale / Written off of Assets
Loss on Impairment of Assets
Recruitment and Training Expenses
Miscellaneous expenses
Foreign Exchange Fluctuation
TOTAL
SCHEDULE 18: (INCREASE) / DECREASE IN STOCKS
Finished Goods, Stocks under Process & Tradable Goods:
Opening Stocks
Stocks under process
Finished Goods
Tradable Goods
TOTAL
Closing Stocks
Finished Goods
Tradable Goods
TOTAL
(INCREASE) / DECREASE IN STOCKS
36
Year Ended
31.03.2011
`
Year Ended
31.03.2010
`
99116676
157537211
15495092
53148121
6354609
28743448
6734912
9130618
184111
55688713
26235523
23930836
8472674
69942159
145724958
14920770
59539792
6144729
25430329
5945124
8004136
633921
49093746
25022395
23921314
10356251
5494220
12973879
22568617
5585675
11673543
21163379
1213300
110300
323193
277438
30115125
397044456
55898865
15797370
18315080
8220000
510000
6731005
1845550
810211
5041705
41655
3200675
1692407
481141
1079478734
1103000
110300
186309
115634
28085644
350916370
55895691
14183027
18456750
7896167
472500
440755
6265423
2523378
11156274
69734
2077671
1610277
984667124
1411800
239859364
135417235
376688399
1330178
163932491
122771097
288033766
1635695
165773083
172043356
339452134
37236265
1411800
239859364
135417235
376688399
(88654633)
SIGNIFICANT ACCOUNTING POLICES
SCHEDULE 19: SIGNIFICANT ACCOUNTING POLICIES

a)
Basis of preparation of nancial statements : The nancial statements have been prepared under historical cost convention and in
conformity with the generally accepted accounting principles, applicable provisions of the Companies Act,1956, and as per the Accounting Standards issued by the Institute of Chartered Accountants of India.
b)
Income and Expenditure : All items of income and expenditure shown in the statement having material bearing on the accounts are
accounted on accrual basis.
c)
Revenue Recognition : Sales are recognised upon delivery of products and are recorded net of trade discounts and applicable taxes.
Sales also includes other operating income. Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable. Dividend income from investment in shares are recognized in the statement of prot and loss
account when the owners right to receive payment is established.
d)
Fixed Assets : Fixed Assets are carried at cost, less accumulated depreciation and impairment losses (if any). Cost includes all expenditure incurred to bring the assets to its present location and condition. Directly attributable cost incurred till the commencement of
commercial operation are capitalized to identiable and qualifying assets after considering the borrowing cost and making necessary
adjustments to taxes and foreign exchange variations as per AS-11 (Revised).
e)
Intangible Assets : Intangible assets are stated at cost of acquisition less accumulated amortization and impairment losses (if any).
The depreciable amount of intangible asset , considering the future economic benet is amortized over the useful life estimated by
management not exceeding ve years.
f)
Leased Assets : Operating leases: Civil works and improvement of enduring nature are capitalized and are being written off over the
period of lease of such properties.
g)
Depreciation / Amortization :
Depreciation on xed assets is provided on the basis of straight line method at the rates and in the manner prescribed in Schedule
XIV of the Companies Act, 1956. Civil works in leasehold properties are depreciated over the operating lease period. Depreciation on
assets which are commissioned during the year is charged on pro rata basis from the date of commissioning. Cost of intangible assets
is amortized over the useful life estimated by management not exceeding ve years
h)
Capital Work-in-progress : Capital work in progress is recognized at cost and includes capital advances, capital assets and capital
stores issued.
i)
Inventories : Inventories are valued as under:

1
Raw Materials
cost or net realizable value whichever is lower.
Finished Goods
Stores ,Spares and Consumables
at cost
Work - in - progress
Tradable Goods
Cost has been

ascertained
on FIFO basis

cost has been ascertained on moving weighted average basis.
j)
Impairment of assets : An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value and the resultant impairment loss is charged to prot and loss account in the year in which impairment is identied. Impairment loss of earlier years
is reversed in the event of the estimated recoverable amount is higher.
k)
Investments : Short term investments are carried at lower of cost or fair value and long term investments are carried at cost. Provision
for diminution is made for the decline in the market value which is not temporary. Provision for diminution is reversed if there is a
rise in the value of investment or if the reasons for the reduction no longer exist.
l)
Government Grants : The Investment Subsidies (non-refundable) received from Government in lieu of promoters contribution are
treated as capital reserve. Subsidies received towards acquisition of assets are treated as deferred Government grants and the amount
in proportion to the depreciation is transferred to Prot and Loss account.
m)
Employee Retirement Benets :

a)
Gratuity : Accrued liability is determined on acturial valuation basis using PUC Method at the end of the year and provided in
accounts as per AS-15.
b)
Leave Encashment: Accrued liability for leave encashment including sick leave is determined on acturial valuation basis using
PUC Method at the end of the year and provided in accounts as per AS-15.
37
NOTES ON ACCOUNTS
c)
Provident Fund : The company makes contribution to Provident Fund administered by the Central Government under the Provident Fund Act ,1952.
n)
Foreign Exchange transactions: Transactions made during the year in foreign currency are recorded at the exchange rate prevailing at
the time of transaction. Foreign currency monetary items remaining unsettled at the year end are translated at the contract rates, when
covered by rm commitment forwardcover contracts and at the year end rates in other cases. Gains and losses on foreign currency
transactions are recognized in the prot and loss account as per AS-11(Revised).
o)
EPS : Earnings per share is calculated on the weighted average number of paid-up equity shares outstanding during the year.
p)
Segment Reporting : The reportable segments are identied on the basis of criteria prescribed in Accounting Standard (AS - 17) on
"Segment Reporting". Revenues and Expenses have been identied to segments on the basis of the operating activities of the segment.
Unallocated revenue, expenses, assets and liabilities are reported distinctly.
q)
Borrowing Costs: Borrowing costs directly attributable to the acquisition/construction of qualifying assets,till the time such assets are
ready for intended use, are capitalised as part of the cost of such assets as dened in Accounting Standard (AS) - 16 on "Borrowing
Costs". Other Borrowing costs are recognised as expense in the year in which they are incurred.
r)
Taxes on Income: Income Taxes are accounted for in accordance with Accounting Standard (AS) 22 on "Accounting for Taxes on
Income". Income tax expense comprises current tax (i.e, amount of tax for the period determined in accordance with the Income Tax
law) and deferred tax charge or credit (reecting the tax effects of timing differences between accounting income and taxable income
for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax
rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax liability/assets are reviewed as at each
balance sheet date and written down or written up to reect the amount that is reasonably/ virtually certain (as the case may be) to
be realised. Taxes on distributed prots payable in accordance with the Guidance note on "Accounting for Corporate Dividend Tax"
regarded as a tax on distribution of prots and is not considered in determiniation of prots for the year.
s)
Cash Flow Statement: The Cash ow statement is prepared by the "Indirect method" set out in Accounting Standard (AS) - 3 on "Cash
Flow Statements" and presents the cash ows by operating, investing and nancing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consists of cash on hand, with Banks in current accounts and demand deposits.
t)
Changes in Accounting policies: Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting policies as applicable.
SCHEDULE 20: NOTES ON ACCOUNTS

1.
Particulars
A.
As at
31.03.2010
`.
Contingent Liabilities not provided for

(a)
B.
As at
31.03.2011
`
Tax matters in appeal :

i)
Income Tax
342.28
342.28
ii)
Sales Tax
165.45
126.69
iii)
The Andhra Pradesh VAT Act
114.00
114.00
363.13
290.99
79.18
104.19
(b)
Bank Guarantees
(c)
' C' Forms under collection
(d)
Others (GHMC Tax)
Estimated amount of Contracts remaining to be executed on
8.88
---
825.42
266.30
15.55
Nil
capital account and not provided for (Net of Advances)

C.
2.
Claims not acknowledged as debts
SECURED LOANS
Term Loan: The term loan includes ` 12.72 crores from Andhra Bank and ` 23.32 crores from Bank of Baroda and ` 38.05 crores
from ICICI Bank Ltd., under Rupee Term Loan and ` 25.70 Crores from Bank of Baroda under FCTL and fully secured by rst Pari Pasu
charge on the present and future xed assets of the Company and second Pari Pasu charge on currrent assets of the Company.
38
NOTES ON ACCOUNTS
Working Capital Loan: The Company has availed working capital facilities from Bank of Baroda, Andhra Bank and ICICI Bank Ltd.,
of ` 61.82 Crores (Previous year : ` 58.95 Crores) secured by hypothecation of stocks and book debts on pari pasu basis .Extension
of 1st pari-passu charge on the xed assets of the Company, to secure the working capital limits of Bank of Baroda, Andhra Bank and
on second charge basis to secure the working capital limits of ICICI Bank Ltd.
Short Term Loan : The Company has availed short term loan of ` 15 Crores from Axis Bank Ltd., for funding current assets. The loan
is secured by xed deposit of ` 2 crores and personal guarantee of Smt N.Bhuvaneswari, Vice Chairperson & Managing Director of
the Company.
3.
UNSECURED LOANS :
Amount shown under the head Unsecured Loans represents sales tax collected under deferment scheme of State Government of
Andhra Pradesh ` 9.45 crores (Previous year ` 8.92 crores) and is being repaid as per the Sales Tax Deferrment Scheme.
4.
MANAGERIAL REMUNERATION PAID / PAYABLE
Particulars
Year Ended
31.03.2011
`
Year Ended
31.03.2010
`
a)
Salaries
8220000
7896167
b)
Commission
c)
Others
COMPUTATION OF NET PROFIT U/S.198 READ WITH SECTION 309(5) OF THE COMPANIES ACT, 1956
Year Ended
31.03.2011
`
Particulars
Prot before Income Tax (as per Prot and Loss account)
Add: Directors' remuneration
Year Ended
31.03.2010
`
Directors' commission
Directors' Sitting fees
Depreciation
Loss on Assets Sold/Impairment/ Written off
Prot on Assets Sold
Provision for doubtful Debts
107085130
33506232
7896167
8220000
510000
472500
199397717
196425392
5083360
11226008
(3622536)
(5767924)
6265423
1845550
216517565
211434092
323602695
244940324
Less: Depreciation as per Section 350 of the
199397717
196425392
8093166
2964133
Companies Act, 1956

Bad and doubtful debts/ advances written off
Net (Prot)/ Loss on Assets sold / written off
Excess of Expendiure over income of earlier years
calculated as per Section 349
Prot as per Section 309(5) of the Companies Act, 1956
501714972
625928142
709205855
825317667
(464265532)
(501714972)
Commission is payable to two Directors at 5 per cent

(In the absence of adequate prots minimum managerial
remuneration specied in schedule XIII based on effective capital is paid)
39
NOTES ON ACCOUNTS
5.
Investor Education and Protection Fund

2010 - 11
`
Particulars
Unclaimed Dividend
Opening Balance
Less Claims during the year
Less: Transfer to IEPF
Add: Current year's unclaimed dividend
Closing Balance
2009 - 10
`
5420540
44406
730242
4645892
4645892
197683
939728
725277
4233758
There is no amount due and outstanding to be credited to the Investor Education and Protection Fund as on 31.03.2011.
6.
As per the Accounting Standards AS-15 -"Employee Benets" the disclosures of the Employee benets as dened in the Accounting
Standard are given below
2010 - 2011
(` in Lakhs)
Dened Contribution Plan

Employers Contribution to Provident Fund
247.95
2009-2010
(` in Lakhs)
197.39
Dened Benet Plan

Gratuity (Funded)
As per Acturial Report dated 29.04.2011

Particulars
1.
2.
3.
40
Assumption
Discount Rate
Salary Escalation
Table showing change in present value of obligation as on 31.03.2011
Present value of obligations as at beginning of year
Interest cost
Current Service Cost
Benet Paid
Acturial (gain)/ loss on obligations
Present value of obligations as at end of year
Table showing changes in the fair value of plan assets as on 31.03.2011
Fair value of plan assets at beginning of year
Expected return on plan assets
Contributions
Benets paid
Acturial gain / (loss) on plan assets
Fair value of plan assets at end of year
Table showing fair value of plan assets
Fair value of plan assets at beginning of year
Actual return on plan assets
Contributions
Benets paid
Fair value of plan assets at the end of year
Funded Status
Excess of Actual over estimated return on plan assets
(Actual rate of return - Estimated reate of return as ARD falls on 31st March)
As on
31.03.2011
As on
31.03.2010
8.00%
5.00%
8.00%
4.00%
`
10956470
876518
5693452
(1010323)
3398038
19914155
`
8939593
715167
2874250
(519942)
(1052598)
10956470
15021305
1379034
3770898
(1010323)
(24003)
19136911
12406966
1114008
2020273
(519942)
NIL
15021305
15021305
1355031
3770898
(1010323)
19136911
(777244)
(24003)
12406966
1114008
2020273
(519942)
15021305
4064835
NOTES ON ACCOUNTS
As on
31.03.2011
Particulars
5.
6.
7.
Acturial Gain / Loss recognised

Acturial (gain)/ loss on obligations
Acturial (gain)/ loss for the year -plan assets
Total (gain) / loss for the year
Acturial (gain)/ loss recognised in the year
The amounts to be recognised in the balance sheet and statement of prot and loss
Present value of obligations as at the end of year
Fair value of plan asets as at the end of the year
Funded Status
Net asset/ (liability) recognised in balance sheet
Expenses Recognised in statement of prot and loss
Interest cost
Expected return on plan assets
Net Acturial (gain) / loss recognised in the year
Expenses recognised in statement of prot and loss
As on
31.03.2010
(3398038)
(24003)
3422041
3422041
1052598
NIL
(1052598)
(1052598)
19914155
19136911
(777244)
(777244)
10956470
15021305
4064835
(4064835)
5693452
876518
(1379034)
3422041
8612977
2874250
715167
(1114008)
(1052598)
1422811
Dened Benet Plan

Leave Encashment & Sick Leave(Unfunded)
1.
As per Acturial Report dated 09.05.2011
Assumptions
Particulars
2.
3.
Discount Rate
Rate of increase in Compensation levels
Rate of Return on Plan Assets
Expected Average remaining working lives
of employees (years)
Reconciliation of Dened benet obligation
Present Value of Obligation as at the
beginning of the year
Acquisition adjustment
Interest Cost
Past Service Cost
Curtailment Cost / (Credit)
Settlement Cost / (Credit)
Benets paid
Actuarial (gain)/ loss on obligations
Present Value of Obligation as at the end
of the year
Acturial Gain / Loss Recognised
Actuarial (gain)/loss for the year - Obligation
Actuarial gain/(loss) for the year - Plan Assets
Total (gain) / loss for the year
Actuarial (gain) / loss recognized in the year
Unrecognized actuarial (gains) / losses at
the end of year
Leave Encashment
31-Mar-2011
31-Mar-2010
8%
8%
5% p.a.
5% p.a.
0%
0%
Sick Leave
31-Mar-2011
31-Mar-2010
8%
8%
5% p.a.
5% p.a.
0%
0%
29 yrs
28 yrs
30 Yrs
26 Yrs
28602728
2288218
4630283
(7084048)
4795830
2,62,30,862
20,98,469
23,71,866
(6702118)
46,03,649
35,95,877
287670
1450302
(469444)
181774
2628417
2,10,273
9,67,460
(4,63,854)
2,53,581
29703971
2,86,02,728
5046179
35,95,877
(4795830)
4795830
4795830
(46,03,649)
46,03,649
46,03,649
(181774)
181774
181774
(2,53,581)
2,53,581
2,53,581
41
NOTES ON ACCOUNTS
Leave Encashment
31-Mar-2011
31-Mar-2010
Particulars
4.
5.
The amounts to be recognised in Balance

Sheet and Statement of Prot and Loss
Present Value of Obligation as at the end of
the year
Value of Plan Provisions as at the end of the
year
Funded Status
Unrecognized Actuarial (gains) / losses
Net Asset / (Liability) Recognized in Balance
Sheet
Expenses Recognized in the statement of
Prot & Loss
Past Service Cost
Interest Cost
Expected Return on Plan Assets
Curtailment Cost / (Credit)
Settlement Cost / (Credit)
Net actuarial (gain)/ loss recognized in the
year
Expenses Recognized in the statement of
Prot & Loss
Sick Leave
31-Mar-2011
31-Mar-2010
33233011
2,86,02,728
5046179
35,95,877
(33233011)
(2,86,02,728)
(5,046,179)
(35,95,877)
(33233011)
(2,86,02,728)
(5,046,179)
(35,95,877)
4630283
2288218
23,71,866
20,98,469
1450302
287670
9,67,460
2,10,273
4795830
46,03,649
181774
2,53,581
11714331
90,73,984
1919746
14,31,314
7.
Borrowing Cost as per AS-16 : During the year an amount of ` 62.53 lacs of borrowing cost on loans obtained from Banks has been
capitalised.
8.
SEGMENT REPORTING:
SEGMENT REPORTING FOR THE YEAR ENDED 31st MARCH, 2011
(` In lakhs)
Particulars
1.
2009 -2010
Segment Revenue
a.
Dairy
86059.64
68830.17
b.
Retail
23901.31
21349.22
3024.77
c.
Agri
3109.47
d.
akery
312.96
274.87
113383.38
93479.03

2.
2010- 2011
3774.77
3440.55
109608.61
90038.47
Segment Results
Prot / (Loss) before Interest and tax
42
a.
Dairy
4659.24
6489.23
b.
Retail
(2313.33)
(3268.07)
c.
Agri
(244.67)
(307.88)
d.
Bakery
(171.28)
(176.40)
1929.96
2736.87
Less: i. Interest
1596.57
1667.47
NOTES ON ACCOUNTS
(` In lakhs)
Particulars
ii.
Net Unallocable Expenditure
1.45
Prot / (Loss) before Tax
335.06
1070.85
Less: Taxation for the year
183.77
498.47
Less: Earlier years Taxation and Expenditure

Net Prot / (Loss)
Total Capital Employed
(Segment Assets - Segment Liabilities)
559.59
As at
31.03.2011
As at
31.03.2010
Dairy
14588.69
15031.47
Retail
5880.81
5496.72
c.
Agri
3699.56
3787.49
d.
Bakery
1220.97
1234.04
25390.03
25549.72
Add: Unallocated Assets
924.00
731.59
Less: Unallocated Liabilities
452.43
8.36
25861.60
26272.95
Capital Expenditure
a.
Dairy
2106.76
2674.61
b.
Retail
522.67
(1583.84)
c.
Agri
90.56
33.45
d.
Bakery
20.13
1325.39
2740.12
2449.61
Total Segment Capital Expenditure

Add: Unallocated Capital Expenditure
Total Capital Expenditure
2740.12
2449.61
Depreciation/Amortisation/Impairment
Segment Depreciation
a.
Dairy
1127.94
1059.92
b.
Retail
599.80
604.76
c.
Agri
212.35
257.88
d.
Bakery
Total Segment Depreciation/Amortisation/Impairment

Add: Unallocated Depreciation
Total Depreciation
6.
12.79
111.93
b.
5.
39.36
a.
Total Segment Capital Employed
4.
2009 -2010
1.67
Add: Net Unallocable Income / (Expenditure)
3.
2010- 2011
Signicant Non Cash Expenditure (excluding depreciation & amortisation)
53.88
41.70
1993.98
1964.26
1993.98
1964.26
163.31
180.68
43
NOTES ON ACCOUNTS
9.
RELATED PARTY DISCLOSURES as per AS-18 :
Name of the
related party
N Bhuvaneswari
Heritage
Finlease Limited
N Lokesh
Description of
the Relationship
between the
parties
Key Management
Peronnel (Vice
Chairperson
& Manging
Director)
A Key Manament
Personnel of
Heritage Foods
(India) Ltd is
a Director of
Heritage Finlease
Ltd.
Description of
the nature of
Transactions
a) Receiving of
Services
b) Rental
agreement
Investment
Volume of the
transactions
either as an
amount or as
appropriate
proportion
a) Managea) Share Capital

rial Remu` 20 lakhs
neration of
b) Dividend
Received `
` 42.00 lakhs
1.60 lakhs
b) Ofce rent
of ` 31.29
lakhs paid
by Company
a) Share Capital a) Share Capital

a) Manage` 11.50 lakhs
` 2.60 lakhs
rial Remuneration of
` 40.20 lakhs
a) Share Capital
` 65 lakhs
Any other
elements of the
related party
transactions in
the nancial
statements
Managerial
Remuneration
was approved by
Shareholders
NIL
Managerial
Remuneration
was approved by
Shareholders
NIL
NIL
NIL
The amounts
or appropriate
proportions of
outstanding
items pertaining
to related parties
at the Balance
Sheet date
NIL
NIL
NIL
NIL
NIL
NIL
Provisions
for doubtful
debts due from
such parties
at that date
and amounts
written off or
written back in
the period in
respect of debts
due from or to
related parties
NIL
NIL
NIL
NIL
NIL
NIL
Provision for
diminution
in value of
Investments
NIL
NIL
NIL
NIL
NIL
NIL
44
Heritage Foods
Retail Ltd
Heritage Conpro
Limited
SKIL Raigam
Power (India)
Ltd
Key Management Subsidiary

Personnel
Executive
Director
Subsidiary
Subsidiary
Receiving of
Services
Investment
Investment
Investment
NOTES ON ACCOUNTS
10.
DEFERRED TAX : In accordance with Accounting Standard ( AS - 22) Accounting for Taxes on Income deferred tax has been
calculated as under
Particulars
a)
As on
31.03.2011
`
As on
31.03.2010
`
Deferred tax liability is as under

Opening Deferred Tax Liability
166684699
134615302
13746760
32069397
Add: Deferred tax liability during the year on

account of :
i)
On Depreciation
ii)
On Foreign Exchange Fluctuation gain / (loss)
Closing Deferred Tax Liability

b)
180431459
166684699
10646064
8871463
Deferred tax asset is as under

Opening Deferred Tax Asset
Add: Deferred Tax Asset during the year
i)
Unabsorbed Business loss / depreciation
ii)
Provision for Leave Encashment

Closing Deferred Tax Asset
Total Closing Deferred Tax liability / (asset)
thereon (a-b)
1773619
1774601
1773619
1774601
12419683
10646064
168011776
156038635
11.
IMPAIRMENT OF ASSETS: In accordance with AS-28 the Company has identied and accounted for loss on assets impaired to
the extent of ` 41655/-
12.
Foreign Currency Transactions:

Particulars
A
B.
Export Sales on FOB Basis
21574419
TOTAL
21574419
2239886
2220018
2239886
2220018
CIF Value of Imports

TOTAL
Expenditure in foregin currency (Excluding Loan
Repayment)
Interest
21076550
35925926
Hedging Premium
1117446
Others
299264
21076550
37342636
TOTAL
D.
As on
31.03.2010
`
Earnings in foreign exchange
Capital Goods
C.
As on
31.03.2011
`
Dividend in foreign currency
45
NOTES ON ACCOUNTS
13.
QUANTITATIVE INFORMATION & CAPACITY (Dairy Division)

2010 - 2011
Quantity
Particulars
2009- 2010
Value
(` In Lakhs)
a)
Licenced Capacity:
b)
Installed Capacity :
(Lakh Litres of Milk)
Quantity
Value
(` In Lakhs)
N.A
N.A
Milk ( Lakh Litres )
4456.46
4489.34
Ghee ( MT )
7519.00
5035.00
Skimmed Milk Powder ( MT )
2920.00
2920.00
810.30
591.30
1478.24
1533.00
33000.00
29403.00
117.00
117.00
6.70
6.70
Doodh Peda (MT)

Panner (MT)
Curd (MT)
Butter Milk (Lakh Litres)
Lassi (Lakh Litres)
Ice Cream (Lakh Litres)
36.50
15.19
Flavoured Milk (Lakh Litres)
39.42
37.00
(As certied by Management)

c)
Actual Production:
Milk (Lakh Litres)
3096.98
2824.50
Cream
1268.68
1288.88
Ghee (MT)
2117.58
2193.86
392.88
324.57
Butter (MT)
4294.66
3949.21
Curd (MT)
12847.27
9933.98
26.42
20.05
Skimmed Milk Powder (MT)

Doodh Peda (MT)
257.94
224.67
2334.50
372.70
18.83
16.71
472.81
293.58
4.19
1.64
15.72
8.51
Dairy Whitener (MT)
75.30
155.45
Khoa ( Kg )
Flavored Milk (Lakh Litres)
Panneer (in MT )
Lassi (Lakh Litres)
Malai Laddu (MT)
19.19
7.26
Milk Cake (MT)
39.05
30.70
1196.86
416.43
Sweetened Condensed Milk (MT)

d)
Production at Third Party
e)
Finished Goods Purchases

Butter (MT)
46
297.70
6.70
65.90
288.41
Dairy Whitener (MT)
2.04
13.35
Cheese (MT)
9.42
19.23
NOTES ON ACCOUNTS
2010 - 2011
Particulars
Quantity
2009- 2010
Value
Quantity
(` In Lakhs)
f)
Turnover (Including exports):

Milk (Lakh Litres)
2697.17
64753.66
2474.98
Cream (MT)
578.14
794.64
944.93
1286.73
Ghee (MT)
2013.03
4427.73
2030.90
4344.30
53583.35
Skimmed Milk Powder -FG (MT)
4.61
6.56
3.50
4.70
Skimmed Milk Powder -RM (MT)
406.38
577.63
106.44
142.87
Butter (MT)
2690.18
4506.59
1584.49
2736.28
Curd (MT)
12457.49
4110.97
9590.35
2615.08
25.46
437.27
19.34
276.68
214.40
319.62
185.59
249.00
2269.70
4.14
372.20
0.69
17.35
873.05
15.19
685.32
392.95
599.16
233.94
301.68
3.60
179.92
1.30
62.77
12.70
1011.78
6.97
556.41

Doodh Peda (MT)
Khoa (KG)
Panneer (in MT )
Lassi ( Lakh Litres)
Dairy Whitener (in MT)
88.59
117.60
149.37
173.90
Cheese (MT)
10.40
27.84
9.42
21.72
Malai Laddu (MT)
14.59
33.73
5.68
10.29
Milk Cake (MT)
29.98
51.53
23.98
38.65
1174.89
975.75
398.83
273.03
Conversion Charges Earned
168.56
163.46
Tradable Goods
554.75
TOTAL
g)
Value
(` In Lakhs)
73.19
67600.10
84532.48
Opening Stock of Finished Goods:

Milk (Lakh Litres)
20.53
414.41
19.71
Cream (MT)
15.71
18.80
64.70
73.76
Ghee (MT)
144.91
304.60
79.20
134.04
Skimmed Milk Powder (Finished Goods) (MT)
340.98
54.06
70.06
42.33
50.18
Butter (MT)
754.75
1382.43
666.43
929.39
Curd (MT)
122.05
26.51
90.49
15.82
0.19
1.88
0.12
1.07
Khoa (KG)
0.50
Doodh Peda (MT)
1.81
2.26
1.21
1.39
49.31
1.32
58.05
1.27
Panneer (MT )
3.29
4.53
1.47
1.25
Lassi (Lakh Litres)
0.05
2.23
0.02
0.43
0.41
23.66
0.09
5.41
47
NOTES ON ACCOUNTS
2010 - 2011
Particulars
2009- 2010
Quantity
Value
(` In Lakhs)
Cheese (MT)
15.65
23.94
5.96
14.14
Malai Laddu (MT)
0.13
0.14
0.25
0.37
9.40
6.77
17.99
0.07
TOTAL
Milk (Lakh Litres)
20.72
466.36
20.53
Cream (MT)
53.62
76.70
15.71
18.80
Ghee (MT)
125.19
296.72
144.91
304.60
414.41
57.11
30.98
54.06
70.06
Butter (MT)
230.80
427.86
754.75
1382.43
Curd (MT)
26.51
170.93
46.28
122.05
0.27
2.95
0.19
1.88
Doodh Peda (MT)
2.63
3.68
1.81
2.26
Khoa (KG)
0.50
1.53
75.87
1.32
58.05
Panneer (in MT )
6.43
9.90
3.29
4.53
Lassi (Lakh Litres)
0.08
3.15
0.05
2.23
1.50
97.16
0.41
23.66
0.57
0.85
15.65
23.94
Cheese (MT)
2.89
8.43
5.96
14.14
Malai Laddu (MT)
0.34
0.55
0.13
0.14
Milk Cake (MT)
0.57
0.94
0.25
0.37
19.40
15.93
9.40
6.77
20.97

Tradable Goods
TOTAL
17.99
2372.80
1585.28
Inter Segment Transfers :

Milk (Lakh Litres)
27.08
713.88
27.92
Cream (MT)
0.21
0.27
0.16
0.14
Ghee (MT)
85.19
189.55
80.06
162.81
Skimmed Milk Powder
654.33
3.00
4.49
1.30
1.89
Butter (MT)
16.98
33.31
20.25
35.80
Curd (MT)
266.21
119.47
260.96
86.08
0.72
15.56
0.50
8.47
41.27
64.49
37.44
49.63

Doodh Peda (MT)
Khoa (KG)
48
1603.08
2372.78
Closing Stock of Finished Goods :
i)
Value
(` In Lakhs)
Milk Cake (MT)

Tradable Goods
h)
Quantity
NOTES ON ACCOUNTS
2010 - 2011
Particulars
Quantity
2009- 2010
Value
Quantity
(` In Lakhs)
Panneer (MT)
1.03
50.42
1.09
49.41
74.03
115.31
55.56
70.28
Lassi (Lakh Litres)
0.49
24.85
0.23
9.74
Ice Cream ( Lakh Litres)
1.59
117.61
0.99
73.00
Dairy Whitener (MT)

Cheese (MT)
0.07
0.10
1.79
6.44
3.67
10.37
Malai Laddu (MT)
4.24
9.75
1.35
2.36
Milk Cake (MT)
8.33
14.89
6.38
9.79
Tradable Goods
11.89
5.86
Others
34.97
1527.15
1230.07
15.99
14.12
372.54
320.79
0.24
0.38
TOTAL
J)
Work-in-Progress
k)
Captive Consumption (Incl. Losses):
Milk (Lakh Litres)

Ghee (MT)
39.08
17.18
Butter (MT)
2177.35
2544.55
74.69
51.12
0.16
0.14
Curd (MT)
Doodh Peda (MT)
Khoa (KG)
Panneer (MT)
1.45
1.04
64.80
0.00
2.69
2.26
0.34
0.22
Cream (MT)
652.42
392.79
Skimmed Milk Powder
388.92
499.30
0.07
0.08
Lassi (Lakh Litres)

Dairy Whitener (MT)
3.83
3.70
Cheese (MT)
0.30
0.18
Malai Laddu (MT)
0.15
0.10
Milk Cake (MT)
0.42
0.09
11.97
8.20
3076.26
63620.13
2803.97
44046.85
6581.89

l)
Value
(` In Lakhs)
Raw Materials consumed: (Dairy)

Milk (Lakh Litres)
Other Products
TOTAL
70202.02
5013.37
49060.22
49
NOTES ON ACCOUNTS
2010 - 2011
Particulars
Quantity
2009- 2010
Value
Quantity
(` In Lakhs)
14.
CONSUMPTION OF MATERIALS
a)
b)
15.
Value
(` In Lakhs)
Raw Materials (Dairy)

i)
Indigenous
ii)
Imported
%
100.00
70202.02
100.00
49060.22
100.00
950.97
100.00
669.59
Spare Parts & Consumables (Dairy)

i)
Indigenous
ii)
Imported
MERCHANDISE DETAILS
(` In lakhs)
Particulars
i)
Opening Value
Sales Value
FMCG- Food
401.97
5919.18
6801.45
493.04
FMCG- Non -Food
548.64
8081.07
9283.15
716.88
Agri in Units & Bulk
403.56
5942.59
6828.35
508.56
988.36
23.74
2548.85
3044.56
39.83
64.92
2.06
187.99
312.96
2.05
Work in Progress
0.37
Trable Goods
1.84
Agri Division
Fruits and Vegetables
iii)
Closing Stock
Value
Retail Division

ii)
Purchases
Value
Bakery Division
Note: The quantitative details of the Retail Division , Bakery Division and Agri Divisions are not provided as per the general exemption given by Ministry of Corporate Affairs vide letter Dt.08.02.2011
16.
EARNINGS PER SHARE:

Particulars
a)
17.
2010 - 2011
Number of Shares at the beginning of the year
11529500
Number of Equity shares outstanding at the end of the year
11529500
11529500
Weighted average number of equity shares outstanding during the year
11529500
11529500
b)
Net Prot / (Loss) after tax
11193027
55959009
c)
Basic and diluted Earnings per share of ` 10 each (`)
0.97
11529500
4.85
MAXIMUM BALANCES HELD DURING THE YEAR WITH NON-SCHEDULED BANKS:

Name of the Bank
During the
Year Ended
31.03.2011
During the
Year Ended
31.03.2010
The Prakasam Dist.Co-Op.Central Bank Ltd.,A.P., India
0.40
The Company is dealing with the above banks for making payments towards milk purchases.
50
2009 - 2010
Calculation of weighted average number of equity shares of Rs.10/-each :
NOTES ON ACCOUNTS
18.
Disclosure under Micro, Small and Medium Enterprises Development Act, 2006
The names of the Micro, Small and Medium scale business enterprises to whom the Company owes money which is outstanding
for more than 45 days and the particulars of the outstanding are given below
A V Thomas & Co Ltd

Abhiruchi Foods
Amit Industries
Anant Products
Arasan Sweets & Snacks
Ari Amman Foods
Ashish Engineers
Ashmit Packaging
Asura Food Products
Atlanta Print Systems (P) Ltd
Avis Press Pvt Ltd
Balaji Foods
Balaji Namkeens
Balaji Poly Plast Pvt Ltd
Barrier Films Pvt Ltd
Beardsell Limited
Best Food Enterprises
Bliss Foods
Brite International
Deccan Crowns & Cans Pvt Ltd

Deejay Multi Packs Pvt Ltd
Delicious Cashew Company
Eesha Packaging
Finecab Wires & Cables Pvt Ltd
Godrej Tyson Foods Ltd
Hi-Tech Printers
India Sweet Company Pvt Ltd
Infragro Industries Ltd
J M Plastic Industries
Jaishree Distributors
Janiya Dairy Products
Lotus Chocolate Company Ltd
Makers Polylms Pvt Ltd
Mars Tech Engineering Services
Micro Packaging works
Om Sri Sai Foods
Paragan Paper Packaging(Pvt)
Ltd
Paran Polymers Pvt Ltd.,

Poly Korp Pvt Ltd
Pragathi Plastoform Pvt Ltd
Prakruthi Health Care
Precission Foils Pvt Ltd
Prince Multiplast Pvt Ltd
Print n Pack
R.N. Enterprises
Rachana Marketing
Raghavendra Offset Printers
Raj Packaging Industries Ltd
Rajaram And Company
Relish Snacks Pvt Ltd
S L Polypack Pvt Ltd
S S Laminates
Sai Hari Teja Multi Poly Films
Sai Krupa Packaging
Sathavahana Packaging PVt Ltd
Shalimar Foods
Sree Designs
Sree Venkatasai Packaging
Industries
Sree Venkateswara Cashew
Chikky
Sree Venkateswara Swamy Saw
Mill
Sri Pumps Manufacturing Co.,
Sri Saibaba Chemical Industries
Srivatsa Enterprises
Stick Lables India Pvt Ltd
Sudhir Pandya
Sudhir Pandya (Gokul Gruh
Udyog)
Sumit Packaging
SVS Polymers
Tasty World
Thai Food Products
Universal Enterprises
Venkateshwara Bitumen
(Amount in `)
Principle
amount outstanding as
at 31/3/2011
Interest
amount outstanding as
at 31/3/2011
interest paid by the company

in terms of section 16 of the
Act, 2006 and the amount of
the payment made beyond the
appointed day during the year;
Interest due and payable on delayed payments made during

the year
The amount of
interest accrued
and
remaining unpaid asat
31/3/2011.
Interest remaining due until scuh

date when the interest dues are
actually paid to the small enterprise (even if paid in succeeding
years)
7057729
187984
Nil
187984
187984
Nil
19. Conrmation of balances from Sundry Debtors/ Creditors, Loans and advances and others have been received from many parties.
Wherever conformation of balanceses have not been received, they are subject to adjustment and reconciliation if any.
20. There are no extra ordinary items incurred by the Company during the year 2010 - 11.
21. Paise is rounded off to the nearest Rupee.
22. The company has presented the nancial results as per schedule VI of Companies Act,1956 and in or form as near as thereto. The
items which are not applicable as per schedule VI are not disclosed.
23. Previous Year gures are regrouped wherever necessary.
Signatures to schedules 1 to 20
For Raju & Prasad
(Firm No. 003475S)
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
51
BALANCE SHEET ABSTRACT
24. Balance Sheet Abstract and Company's General Business Prole

Additional Information Pursuant to Part IV of Schedule VI of Companies Act, 1956 (as amended)
I. Registration Details
Registration No.
Balance Sheet
Date
II.
3 3
0 3
0 1
Month
State Code
Year
Capital Raised during the year (Amount in ` Thousands)

Public Issue
N I
Right Issue
Bonus Issue
N I
Private Placement
III. Position of Mobilisation and Deployment of Funds (Amount in ` Thousands)

Total Liabilities
Sources of Funds
Paid-up Capital
Secured Loans

Application of Funds
Net Fixed Assets
Net Current Assets
8 9
9 2
Total Assets
9 3
1 1
2 9
Reserves & Surplus
5 0
Unsecured Loans
9 4
1 0
7 6
0 8
1 6
0 1
3 3
0 1
Investments
5 4
7 5
Misc. Expenditure
N I
Accumulated Losses
P R O D U C T
IV. Performance of the Company (Amount in ` Thousands)

Turnover*
(*includes other income)

+
0 1
5 5
Total Expenditure
Prot before Tax
5 0
V.
7 9
Prot after Tax
Earnings Per Share in ` (Annualised)

0
1 5
Dividend Rate %
9 7
M I
Generic Name of Three Principal Products / Services of the Company

Item Code No. (ITC Code)
Production Description

For Raju & Prasad
(Firm No. 003475S)
0 2 1
&
0
K
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
52
CASH FLOW STATEMENT
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011
(pursuant to clause 32 of Listing Agreement)
PARTICULARS
Year Ended 31.03.2011

`
`

`
`
A.
CASH FLOW FROM OPERATING ACTIVITIES

Net Prot /(Loss) before tax
33506230
107085130
Adjustment for
Depreciation
199397718
196425392
Interest
159656853
166746637
Prot on sale of Fixed Assets
(3622536)
(5767924)
Loss on sale of Fixed Assets / Impairment of Assets
5083360
11226008
Prior period Income /(expenses)
(3503230)
1465908
Subsidy transferred to P&L
(1009755)
(2578965)
Interest received
(3844320)
(3792848)
Dividend received
(167035)
(144766)
Operating Prot before Working Capital Changes
385497285
470664572
Adjustment for :
Inventories
102378135
(269190453)
Trade and Other Receivables
(1111191)
(1894880)
Trade Payables
37390112
143512207
Cash Generated from operations
524154341
343091446
Direct taxes paid (incl.taxation of earlier years) (net of refund)
(5482518)
(21630875)
Net Cash (used) / generated for / from Operations
518671823
321460571
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets
(306677501)
(278244694)
Proceeds from sale of Fixed Assets
8296132
13471385
Investment in Subsidiary
(910000)
(6500000)
Purchase of Investments
(49000)
(22200)
Subsidy received
2500000
0
Interest received
3844320
3792848
Dividend received
167035
144766
Net Cash used in Investing Activities
(292829015)
(267357896)
C. CASH FLOW FROM FINANCING ACTIVITIES
Borrowings from Banks and others( Net )
16090342
48526541
Interest paid
(159656853)
(166746637)
Dividend paid
(24199930)
Net Cash (Used)/ generated for/ from Financing Activities

(167766440)
(118220096)
Net increase /(decrease) in cash and cash equivalents
58076368
(64117421)
Cash and Cash equivalents as at 1st Apr, 2010
246330558
310447979
Cash and Cash equivalents as at 31st March,2011
304406926
246330558
Notes: 1. Previous years gures have been regrouped / reclassied wherever necessary to conform to the current years classication.
2. Cash and Cash equivalents as at 31st March, 2011 include restricted cash and bank balance amounting to ` 32136374/- (Previous year ` 11520892/-)
For Raju & Prasad
(Firm No. 003475S)
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
53
SECRETARIAL AUDITORS' REPORT
Adequate notice is given to all directors to schedule the Board

Meetings, agenda and detailed notes on agenda are sent at least
seven days in advance, a system exists for seeking and obtaining
further information and clarications on the agenda items before the
meeting and for meaningful participation at the meeting. Majority
decision is carried.
To
The Members,
I have conducted, the Secretarial Audit of the compliance of applicable
statutory provisions and the adherence to good corporate practices by
the company. Secretarial Audit was conducted in a manner that provided
me a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing my opinion thereon.
Based on my verication of the M/s. HERITAGE FOODS (INDIA) LIMITED
books, papers, minute books, forms and returns led and other records
maintained by the company and also the information provided by the
Company, its ofcers and authorized representatives during the conduct
of Secretarial Audit, I hereby report that in my opinion, the Company has,
during the audit period covering the nancial year ended on 31/03/2011
complied with the statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance-mechanism in place
to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns led
and other records maintained by M/s. HERITAGE FOODS (INDIA) LIMITED
for the nancial year ended on 31/03/2011 according to the provisions of:
4.
The Directors have complied with the disclosure requirements

in respect of their eligibility of appointment, independence and
compliance with the code of Business Conduct & Ethics for Directors
and Management Personnel.
5.
The Directors have complied with the requirements as to disclosure of

interests and concerns in contracts and arrangements, shareholdings
and directorships in other companies and interests in other entities.
6.
The company has not advanced loans, given guarantees and

provided securities amounting to directors and/or persons or rms
or companies in which directors were interested, and has complied
with the provisions of the Companies Act, 1956.
7.
The Company has not made loans and investments; or given

guarantees or provided securities to other business entities other than
Subsidiary Companies and has complied with the provisions of the
Companies Act, 1956 and any other statutes as may be applicable.
8.
The amount borrowed by the Company from bank(s)/ nancial

institution(s) and others were within the borrowing limits of the
Company. Such borrowings were made by the Company in
compliance with applicable laws.
(i)
The Companies Act, 1956 and the Rules made there under ;
(ii)
The Securities Contracts (Regulation) Act, 1956 (SCRA) and the Rules
made there under;
(iii)
The Depositories Act, 1996 and the Regulations and Byelaws framed
there under;
9.
(iv)
Foreign Exchange Management Act, 1999 and the rules and regulations
made thereunder to the extent of Foreign Direct Investment, Overseas
Direct Investment and External Commercial Borrowings;
The Company has not defaulted in the repayment of unsecured

loans, facilities granted by bank(s) / nancial institution(s).
10.
The Company has created & modied charges on the assets of the
company and complied with the applicable laws.
The following Regulations and Guidelines prescribed under the

Securities and Exchange Board of India Act, 1992 (SEBI Act) :
11.
All registrations under the various state and local laws as applicable
to the company are valid as on the date of report.
(a)
The Securities and Exchange Board of India (Substantial

Acquisition of Shares and Takeovers) Regulations, 1997;
12.
(b)
The Securities and Exchange Board of India (Prohibition of

Insider Trading) Regulations, 1992;
The Company has declared and paid dividends to its shareholders

as per the provisions of the Companies Act, 1956 and other relevant
statutes.
13.
(c)
The Securities and Exchange Board of India (Issue of Capital

and Disclosure Requirements) Regulations, 2009;
The Company has credited and paid to the Investor Education and
Protection Fund within the stipulated time, all the unpaid dividends
as required to be so credited to the Fund.
The Listing Agreements entered into by the Company with Bombay

Stock Exchange and National Stock Exchange, Mumbai.
14.
The Company has paid all its statutory dues and satisfactory
arrangements have been made for arrears of any such dues.
Based on my examination and verication of the books, papers,

minute books, forms and returns led and other records produced to
me and according to information and explanations given to me by the
Company, I report that the Company has in my opinion, complied
with the provisions of the Companies Act, 1956 and the Rules
made thereunder, the Memorandum and Articles of Association of
the Company and also applicable provisions of the aforesaid laws,
standards, guidelines, agreements, etc.
15.
The Company, being a listed entity has complied with the provisions
of the Listing Agreement.
16.
The Company has provided a list of statutes in addition to the laws

as mentioned above and it has been observed that there are proper
systems in place to ensure compliance of all laws applicable to the
company.
(v)
(vi)
I further report that:

There are adequate systems and processes in the company
commensurate with the size and operations of the company to
monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
I report that, during the year under review:

1.
The status of the Company during the nancial year has been that of
Listed Public Company.
2.
The Company has three subsidiary companies. The company has not
been a Government company.
3.
The Board of Directors of the Company is duly constituted with

proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. There are no changes in the composition of
the Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Companies
Act, 1956.
54
for Savitha Jyoti Associates

Company Secretaries
Place
Date
: Hyderabad
: 14/04/2011
SAVITHA JYOTI
Practicing Company Secretary
Member Ship No. 3738
CP No.: 1796
CONSOLIDATED AUDITORS' REPORT
To
The Board of Directors,
Hyderabad.
We have audited the attached Consolidated Balance sheet of M/s. HERITAGE FOODS (INDIA) LIMITED and its subsidiary as at March
31,2011 and the consolidated Prot and Loss Account and the consolidated Cash Flow Statement for the year ended on that Date annexed
thereto. These consolidated nancial statements are the responsibility of the Companys management. Our responsibility is to express an
opinion on these nancial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in India which require that we plan and perform the
audit to obtain responsible assurance that the nancial statements are prepared, in all material respects, in accordance with an identied
nancial reporting frame work and are free from material misstatements. An audit includes assessing the accounting principle used and
signicant estimates made by the management, as well as evaluating the over all nancial statements. We believe that our audit provides
a reasonable basis for our opinion.
We report that the consolidated nancial statements have been prepared by the Companys management in accordance with the
requirements of Accounting Standards 21 consolidated Financial Statements {accounting standards (AS) 23,accounting for investments
in associates in consolidated nancial statements and accounting standard (AS) 27,nancial reporting of interest in joint ventures} ,
issued by the Institute of Chartered Accountants of India.
In our opinion and to the best of our information and according to the explanations given to us, the consolidated nancial statements give
a true and fair view in conformity with the accounting principles generally accepted in India:
a)
In the case of the consolidated Balance Sheet, of the state of affairs of the group as at 31st March, 2011
b)
In the case of the consolidated Prot and Loss Account, of the prot for the year ended on that date; and
c)
In the case of the consolidated Cash Flow Statement, of the cash ows for the year ended on that date.
For RAJU & PRASAD
(FRN:003475S)
S. Ranganathan
PARTNER
Place : Hyderabad
55
CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2011

Particulars
Schedule
Ref.
As at
31.03.2011
`
As at
31.03.2010
`
SOURCES OF FUNDS:
Shareholders Funds:
Share Capital
115295000
115295000
Reserves & Surplus
747923313
751520270
863218313
866815270
676188
444192
1755261114
Sub-total
Minority Interest
Loan Funds:
a.
Secured Loans
1766082368
b.
Unsecured Loans
94483665
89214577
TOTAL (a + b)
1860566033
1844475691
168011776
156038635
TOTAL
2892472310
2867773788
3174969597
2942381971

APPLICATION OF FUNDS:
Fixed Assets:
Gross Block

Net Block
Capital Work-in-Progress
957753713
790023064
2217215884
2152358907
119795971
87130122
2253910
2204910
Inventories
660678778
763056913
Sundry Debtors
144385638
120762544
Cash and Bank Balances
304818878
246349831
Loans and Advances
10
331094778
365018290
1440978072
1495187578
827008211
793156871
Investments
Current Assets, Loans and Advances:
Total Current Assets, Loans & Advances

Less: Current Liabilities and Provisions
A.
Current Liabilities
B.
Provisions
11
Net Current Assets

TOTAL
Singnicant Accounting Policies
19
Notes on Accounts
20

For Raju & Prasad
(Firm No. 003475S)
60763316
75950857
553206545
626079849
2892472310
2867773788
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
56

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
Particulars
INCOME:
Sales
Total Sales
Other Income
TOTAL INCOME
EXPENDITURE:
Materials Consumed
Purchase of Goods
Power and Fuel
Employee Remuneration
Interest
Other expenses
(Increase)/ Decrease in Stocks
TOTAL
PROFIT/(LOSS) BEFORE DEPRECIATION
AND AMORTISATION
Less: Depreciation & Amortization
PROFIT/(LOSS) FOR THE PERIOD
Less :Provision for taxation
Current tax
Deferred tax Liability
NET PROFIT/(LOSS) AFTER TAX
Less:Prior period Expenses / (Income) (net)
NET PROFIT/(LOSS)
Less: Taxation of Earlier Years
Schedule
Ref.
12
13
14
15
16
17
18
Less: Minority Interests share of prot

Amount available for Appropriation
Appropriations
Proposed Dividend
Provision for Tax on Dividend
Transfer to General Reserve
TOTAL
Basic and diluted earning per share of ` 10/- each
before extraordinary items
Basic and diluted earning per share of ` 10/- each
after extraordinary items

For Raju & Prasad
(Firm No. 003475S)
Year Ended
31.03.2011
Year Ended
31.03.2010
10960860649
10960860649
51688981
11012549630
9003847177
9003847177
29259221
9033106398
6960447646
1720451909
234918756
587455518
159656853
1079685605
37236265
10779852552
232697078
5429091170
1552874694
199773459
485097425
166746637
985545062
(88654633)
8730473814
302632584
199397717
33299361
196425392
106207192
6404279
11973140
14921942
3508745
11413197
432555
10980642
(73812)
11054454
24766416
35820870
19552323
30294795
56360074
(1465908)
57828982
2744911
55081071
(61807)
55142879
1114725
54028154
13835400
2244448
1500000
18241022
35820870
0.95
20753100
3446830
5000000
24828224
54028154
4.52
0.95
4.52
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
57
CONSOLIDATED SCHEDULES TO BALANCE SHEET
Particulars
SCHEDULE 1: SHARE CAPITAL
Authorised:
(Previous year 1,80,00,000 Equity Shares of `10/- each)
20,00,000 Convertible cumulative Preference
Shares of ` 10/- each (Previous year
20,00,000 Preference Shares of `10/- each)
Issued, Subscribed & paid-up
fully paid-up (Previous year 1,15,29,500 Equity
Shares of ` 10/- each fully paid-up)
SCHEDULE 2: RESERVES AND SURPLUS
Capital Reserves :
Capital Redemption Reserve
Warrants Money Appropriated
Securities Premium account
Defered Government Grants :
Opening Balance
Add: Subsidy received during the period
Less: Subsidy transferred to P&L A/c during the period
General Reserve:
Opening Balance
Add: Transferred during the year
Closing Balance
Surplus in Prot and Loss Account
TOTAL
SCHEDULE 3: SECURED LOANS
Term Loans from Banks
(Includes Interest accrued and due during the year ` 0.07 crores(Previous Year ` Nil)
(Term Loan due and repayable within one year is ` 31.68 Cr (Previous Year: ` 29.81 Cr)
Working Capital Loans from Banks
(Includes Interest accrued and due during the year ` Nil (Previous Year ` Nil)
Short Term Loans from Banks
(Includes Interest accrued and due during the year ` Nil (Previous Year ` Nil)
TOTAL
SCHEDULE 4: UNSECURED LOANS
Sales Tax Deferment
TOTAL
58
As at
31.03.2011
`
As at
31.03.2010
`
180000000
180000000
20000000
200000000
20000000
200000000
115295000
115295000
8100000
31868800
465975400
8100000
31868800
465975400
7177295
2500000
9677295
1009755
8667540
9756260
9756260
2578965
7177295
213570551
1500000
215070551
18241022
747923313
208570551
5000000
213570551
24828224
751520270
997901824
1165739754
618180544
589521360
150000000
1766082368
1755261114
94483665
94483665
89214577
89214577
87130122

139808929
Capital Work-inProgress (Previous

Year)
236898446
306677501
330923500
2644742000
PREVIOUS YEAR
Capital Work-inProgress
VEHICLES
14270997
5284277
90912553
INTANGIBLE
ASSET
20849754
274011651
176930434
OFFICE EQUIPMENT
15474410
16874287
112936202
FURNITURE &
FIXTURES
164776470
2942381971
1485752187
PLANT & MACHINERY
13688073
31997138
7670532
Additions
`
289577253
274011651
33283529
41424026
1077006
5900990
625381
30244461
3422408
153780
Deletions
`
GROSS BLOCK
TOTAL
125453385
790776135
LEASEHOLD
PROPERTY
CIVIL WORKS IN
BUILDINGS
LAND
PARTICULARS
As at
01.04.2010
`
142746787
SCHEDULE 5 : FIXED ASSETS
87130122
119795972
2942381971
3174969597
21081559
105183550
191879197
127785232
1620284196
135719051
822773274
As at
31.03.2011
`
150263538
607951733
790023064
5846197
53110324
76956686
20742106
490725382
32095560
110546809
196425392
199397717
2037129
19259991*
24316837
7740718
105501782
13373735
27167525
For the
Year
`
0
0
14354061
31667070
809118
4052253
419434
25417919
968346
On
Deletions
`
790023064
957753712
7074208
72370315
97221271
28063390
570809245
44500949
137714334
As at
31.03.2011
`
0
DEPRECIATION / AMORTISATION *
As at
01.04.2010
`
0
2152358907
2217215885
14007351
32813235
94657927
99721841
1049474952
91218102
685058939
2152358907
11028091
37802230
99973748
92194096
995026805
93357825
680229326
As at
01.04.2010
`
142746787
NET BLOCK
As at
31.03.2011
`
150263538
59
Particulars
SCHEDULE 6: INVESTMENTS
I.
Government Securities:
National Savings Certicates
II. Shares
1. Un-quoted: (Non-Trade, Long Term, at cost)
200000 Equity Shares of ` 10/- each fully
paid up in Heritage Finlease Ltd.
2. Quoted: (Non-Trade, Long Term, at cost)
a) 348 Equity Shares of ` 10/- each at a premium
of ` 220/- each fully paid up in Bank of Baroda
b) 363 Equity Shares of ` 10/- each at a premium
of ` 80/- each fully paid up in Andhra Bank
TOTAL
SCHEDULE 7: INVENTORIES
(As veried and certied by Management)
Stores, Spares and consumables
Raw Materials
Packing Material
Stocks under Process
Finished Goods
Tradable Goods
TOTAL
SCHEDULE 8: SUNDRY DEBTORS
Outstanding for more than six months:
Unsecured and considered doubtful
Other Debtors :
TOTAL
Less: Provision for doubtful debts
TOTAL
SCHEDULE 9: CASH AND BANK BALANCES
A. Cash on hand
B. Cheques on hand
C. Balances with Scheduled Banks in :
Current Accounts
Deposit Accounts
Margin Money
Unclaimed Dividend Accounts
D. Balances with other Banks in Current Accounts:
Prakasam Dist. Co-op. Central Bank Ltd., A.P.
TOTAL
60
As at
31.03.2011
`
As at
31.03.2010
`
141200
92200
2000000
2000000
80040
80040
32670
32670
2253910
2204910
24416398
229739594
67070652
1635695
165773083
172043356
660678778
37649938
289014615
59703961
1411800
239859364
135417235
763056913
15436117
4225944
19662061
11523587
10544689
22068276
128949521
148611582
4225944
144385638
109238956
131307232
10544689
120762544
22810648
4710
22600950
239182993
27962616
10624153
4233758
195184938
15885000
7993326
4645892
304818878
39725
246349831
Particulars
SCHEDULE 10: LOANS AND ADVANCES
(Unsecured and Considered good)
Advances recoverable in cash or kind or for value to be received
Less : Provision for doubtful advances
Total Advances (Unsecured and considered good)
Deposits
Tax Deducted At Source & Advance Tax
TOTAL
SCHEDULE 11: CURRENT LIABILITIES AND PROVISIONS
A. Current Liabilities:
Sundry Creditors:
Dues to Micro,Small and Medium Enterprises
Dues to Others
Creditors for Expenses
Liability towards Investor Education and Protection Fund :
Un-claimed Dividend
Other Current Liabilities
Interest accrued but not due on loans
Trade Deposits
TOTAL ( A )
B. PROVISIONS:
Proposed Dividend
Provision for tax on Dividend
Provision for Leave Encashments
TOTAL ( B )
TOTAL ( A + B )
Particulars
SCHEDULE 12: SALES
Domestic Sales (Net off Intersegment sales)
Less : Excise Duty
Export Sales
TOTAL
SCHEDULE 13: OTHER INCOME
Interest on Bank and Other Deposits
(TDS ` 175200/- (Previous period : ` 189964/Miscellaneous Receipts
Subsidy transferred from Capital Reserve
Lease Rental Income
Prot on sale of assets
Income on Investment: Dividend
Provision no more required
Foreign Exchange Gains
TOTAL
As at
31.03.2011
`
As at
31.03.2010
`
162130469
2214065
159916404
155498177
15680197
331094778
198838290
1867036
196971254
137864479
30182557
365018290
24282607
452075057
223749726
16276401
432068907
221561321
4233758
35246956
5180798
82239309
827008211
4645892
48773983
6550256
63280112
793156871
6404279
13835400
2244448
38279189
60763316
887771527
19552323
20753100
3446830
32198604
75950857
869107729
Year Ended
31.03.2011
`
Year Ended
31.03.2010
`
10817949941
961473
10816988468
21688250
122183931
10960860649
8918265281
464290
8917800991
86046186
9003847177
3844320
3792848
10745141
1009755
15589213
3622536
167035
16710981
51688981
10635070
498294
7248071
5767924
144766
1172249
29259221
61
CONSOLIDATED SCHEDULES PROFIT & LOSS ACCOUNT
Particulars
SCHEDULE 14: MATERIALS CONSUMED
a. Raw Materials :
Opening Stock
Add: Purchases
Total
Less: Closing Stock
Consumption (a)
b. Packing Materials :
Opening Stock
Add: Purchases
TOTAL
Less: Closing Stock
Consumption (b)
TOTAL (a + b)
c. Purchase of Tradable Goods
TOTAL
Year Ended
31.03.2011
`
Year Ended
31.03.2010
`
292379353
6565214900
6857594253
229739594
6627854659
136548272
5310083585
5446631857
292379353
5154252505
59703961
339959679
399663640
67070652
332592988
6960447646
1720451909
1720451909
42816668
291725958
334542626
59703961
274838665
5429091170
1552874694
1552874694
SCHEDULE 15: EMPLOYEE REMUNERATION

Salaries, Wages, Bonus & allowances
Contribution to Provident and Other funds
Contribution to Gratuity Fund
Staff Welfare
TOTAL
532431259
31626445
8612977
14784837
587455518
447147565
23981543
1422811
12545506
485097425
SCHEDULE 16: INTEREST

On Term Loans from Banks
On Working Capital Loans from Banks
On Other Loans
TOTAL
96256474
60450596
2949783
159656853
119129105
47383285
234247
166746637
99116676
157537211
15628973
53154475
6354609
28745038
6734912
9130618
184111
55688713
26235523
23930836
8480674
69942159
145724958
15178745
59543175
6144729
25430329
5945124
8004136
633921
49093746
25022395
23921314
10357511
5494220
12973879
22568617
5585675
11673543
21163379
1235360
110300
323193
1114030
110300
186309
SCHEDULE 17: OTHER EXPENSES

Stores, Spares and consumables
Rent
Rates and Taxes
Bank charges
Insurance
Travelling and Conveyance
Ofce Maintenance
House Keeping Expenses
Books and Periodicals
Electricity Charges
Safety and Security
Communication costs
Printing and Stationery
Repairs and Maintenance:
Buildings
Plant and Machinery
Others
Auditors Remuneration:
As Auditors
For tax audit
Tax Matters
62
CONSOLIDATED SCHEDULES PROFIT & LOSS ACCOUNT
Particulars
Audit expenses reimbursed
Legal and professional charges
Freight Outwards
Selling and distribution expenses
Advertisement
Warehouse and Logistics
Directors Remuneration
Directors sitting fees
Bad Debts Written Off
Provision for doubtful Debts
Bad and doubtful advances
Loss on sale of Assets
Loss on Impairment of Assets
Recruitment and Training Expenses
Miscellaneous expenses
Foreign Exchange Fluctuations
TOTAL
SCHEDULE 18: (INCREASE) / DECREASE IN STOCKS
Finished Goods ,Stocks under process and Tradable Goods
Opening Stocks
Finished Goods
Tradable Goods
TOTAL
Closing Stocks
Finished Goods
Tradable Goods
TOTAL
(INCREASE) / DECREASE IN STOCKS
Year Ended
31.03.2011
`
277438
30150111
397044456
55898865
15797370
18315080
8220000
510000
6731005
1845550
810211
5041705
41655
3200675
1692407
481141
1079685605
Year Ended
31.03.2010
`
117840
28682052
350916370
55895691
14183027
18456750
7896167
472500
440755
6265423
2523378
11156274
69734
2077671
1610437
985539547
1411800
239859364
135417235
376688399
1330178
163932491
122771097
288033766
1635695
165773083
172043356
339452134
37236265
1411800
239859364
135417235
376688399
(88654633)
63
CONSOLIDATED ACCOUNTING POLICIES
SCHEDULE 19 : SIGNIFICANT ACCOUNTING POLICIES

a)
Basis of preparation of nancial statements: The consolidated nancial statments of Hertiage Foods (India) Limited (referred to
as the Company) and its Subsidiary ,Heritage Foods Retail Limited, SKIL Raigam Power (India) Ltd , Heritage Conpro Limited
(collectively referred to as the Group) are prepared under historical cost convention on the accrual basis in accordance with the
Generally Accepted Accounting Principles (GAAP) in India, and materially comply with the mandatory Accounting Standards (AS)
issued by The Institute of Chartered Accountants of India (ICAI) and the applicable provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued
or revised Accounting Standards on an ongoing basis.
b)
Inter company transactions and balances and resulting unrealized prots are eliminted in full. Un realized losses resulting from such
transactions are also eliminated unless cost cannot be recovered. Unrealized prots and losses resulting from transactions between
the Company and the Associate are eliminated to the extent of the Companys interest in the associate.
c)
Minority Interests share of net prot of consolidated subsidiaries for the year is identied and adjusted against the income of the
group in order to arrive at the net income attributable to shareholders of the Company.
d)
Minority Interests share of net assets of consolidated subsidiaries as on March 31, 2011 is identied and presented in the consolidated balance sheet separate from liabilities and the equity of the Companys shareholders.
e)
Principles of Consolidation:
---
The Financial Statements of the Company and its Subsidiaries have been combined on a line-by-line basis by adding together
the book values of like items of assets, liabilities, income and expenses.
---
The Subsidiaries considered in the Consolidated Financial Statements are :

Country of
Incorporation
% voting power % voting power

held as at
held as at
March 31, 2011 March 31, 2010
Heritage Foods Retail Limited
India
99.48
98.81
SKIL Raigam Power (India) Limited
India
92.86
92.86
Heritage Conpro Limited
India
51.59
f)
Income and Expenditure: All items of income and expenditure shown in the Consolidated Financial Statements having material
bearing on the accounts are accounted on accrual basis.
g)
Revenue Recognition : Sales are recognised upon delivery of products and are recorded net of trade discounts and applicable taxes.
Sales also includes other operating income. Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable. Dividend income from investment in shares are recognized in the statement of prot and loss
account when the owners right to receive payment is established.
h)
Fixed Assets: Fixed Assets are carried at cost, less accumulated depreciation. Cost includes all expenditure incurred to bring the
assets to its present location and condition. The Group capitalized the directly attributable cost incurred till the commencement of
commercial operations to identiable and qualifying assets after considering the borrowing cost and making necessary adjustments
to taxes and foreign exchange variations as per AS-11.
i)
Intangible Assets: Intangible assets are stated at cost of acquisition less accumulated amortization. The depreciable amount of
intangible asset , considering the future economic benet is amortized over the useful life estimated by management not exceeding
ve years.
j)
Leased Assets: Operating leases: Civil works and improvement of enduring nature are capitalized and being written off over the
period of lease of such properties.
k)
Depreciation /
1. Depreciation on xed assets is provided on the basis of straight line method at the rates and the manner
Amortisation :
prescribed in Schedule XIV to the Companies Act, 1956. Civil works to the leased properties are depreciated
over the operating lease period. Depreciation on assets which are commissioned during the year is charged
on pro rata basis from the date of commissioning.
2. Cost of Intangible asset is amortised over the useful life estimated by management not exceeding 5 years.
l)
Capital Work-in-progress: Cost of capital work in progress is recognized at cost and includes capital advances, capital assets and
capital stores issued.
64
CONSOLIDATED ACCOUNTING POLICIES

m)
Inventories: Inventories are valued as under:

1)
Raw Materials
2)
Finished Goods
3)
Stores, Spares and Consumables
at cost
4)
Work - in - progress
Tradable Goods
ascertained
on FIFO basis
Cost has been ascertained on

FIFO basis.
5)
Cost has been

Cost has been ascertained on moving weighted
average basis.
n)
Impairment of assets: An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable cost as impairment
loss and is charged to prot and loss account in the year in which impairment is identied. Impairment loss of earlier years is
reversed in the event the estimated recoverable amount is higher.
o)
Investments: Un-quoted Investments are valued at cost. Quoted Investments are valued at lower of cost and market value as on the
date of Balance Sheet. The Group provides for diminution in value of investments.
p)
Government Grants : The Investment Subsidies (non-refundable) received from Government in lieu of promoters contribution
are treated as capital reserve. Subsidies received towards acquisition of assets are treated as deferred Government grants and the
amount in proportion to the depreciation is transferred to Prot and Loss account.
q)
Employee Retirement Benets:

a)
Gratuity : Accrued liability is determined on acturial valuation basis using PUC Method at the end of the year and provided
in accounts as per AS-15.
b)
Leave Encashment: Accrued liability for leave encashment including sick leave is determined on acturial valuation basis using
PUC Method at the end of the year and provided in accounts as per AS-15.
c)
Provident Fund : The company makes contribution to Provident Fund administered by the Central Government under the
Provident Fund Act ,1952.
r)
Foreign Exchange transactions: Transactions made during the year in foreign currency are recorded at the exchange rate prevailing
at the time of transaction. Foreign currency monetary items related to foreign currency transaction remaining unsettled at the year
end are translated at the contract rates, when covered by rm commitment forwardcover contracts and at the year end rates in other
cases. Gains and losses on foreign currency transactions are recognized in the prot and loss account as per AS-11.
s)
EPS : Earnings per share is calculated on the weighted average number of paid-up equity shares outstanding during the year.
t)
Segment Reporting: The reportable segments are identied on the basis of criteria prescribed in Accounting Standard (AS - 17)
on "Segment Reporting". Revenues and Expenses have been identied to segments on the basis of the operating activities of the
segment. Unallocated revenue, expenses, assets and liabilities are reported distinctly.
u)
Borrowing Costs: Borrowing costs directly attributable to the acquisition/construction of qualifying assets,till the time such assets are
ready for intended use, are capitalised as part of the cost of such assets as dened in Accounting Standard (AS) - 16 on "Borrowing
Costs". Other Borrowing costs are recognised as expense in the year in which they are incurred.
v)
Taxes on Income: Income Taxes are accounted for in accordance with Accounting Standard (AS) 22 on "Accounting for Taxes on
Income". Income tax expense comprises current tax (i.e, amount of tax for the period determined in accordance with the Income
Tax law) and deferred tax charge or credit (reecting the tax effects of timing differences between accounting income and taxable
income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using
the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax liability/assets are reviewed
as at each balance sheet date and written down or written up to reect the amount that is reasonably/ virtually certain (as the case
may be) to be realised. Taxes on distributed prots payable in accordance with the Guidance note on "Accounting for Corporate
Dividend Tax" regarded as a tax on distribution of prots and is not considered in determiniation of prots for the year.
w)
Cash Flow Statement: The Cash ow statement is prepared by the Indirect method set out in Accounting Standard (AS) - 3 on
Cash Flow Statements and presents the cash ows by operating, investing and nancing activities of the company. Cash and cash
equivalents presented in the Cash Flow Statement consists of cash on hand, with Banks in current accounts and demand deposits.
x)
Changes in Accounting policies: Accounting policies have been consistently applied except where a newly issued Accounting
Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in
use. Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the
Accounting policies as applicable.
65
CONSOLIDATED NOTES ON ACCOUNTS
SCHEDULE 20: NOTES ON ACCOUNTS

1.
Segment Reporting :
SEGMENT REPORTING FOR THE YEAR ENDED 31st MARCH, 2011
(` in Lakhs)
Particulars
1.
2009-2010
Segment Revenue
a.
Dairy
86059.64
68830.17
b.
Retail
23901.31
21349.22
c.
Agri
3109.47
3024.77
d.
Bakery
312.96
274.87
e.
HFRL
---
---
f.
SPV
---
---
g.
---
---
113383.38
93479.03

2.
2010 -2011
3774.77
3440.55
109608.61
90038.47
Segment Results
(Prot / (Loss) before Interest and tax)
a.
Dairy
4659.24
6489.23
b.
Retail
(2313.33)
(3268.07)
c.
Agri
(244.67)
(307.88)
d.
Bakery
(171.28)
(176.40)
e.
HFRL
(0.33)
(0.15)
f.
SPV
(0.37)
(8.63)
g.
(1.37)
1927.89
2728.09
Less: Interest
1596.57
1667.47
Add: Net Unallocable Income / (Expenditure)
1.67
1.45
Prot before Tax
332.99
1062.07
Less: Taxation for the year
183.77
498.47
Less: Earlier years Taxation and Expenditure

Net Prot
3.
12.79
118.46
550.81

(Segment Assets - Segment Liabilities)
66
30.76
As at
31/03/2011
As at
31/03/2010
a.
Dairy
14588.69
15031.47
b.
Retail
5880.81
5496.72
c.
Agri
3699.56
3787.49
d.
Bakery
1220.97
1234.04
e.
HFRL
(0.21)
(6.29)
f.
SPV
60.70
61.23

(`in Lakhs)
Particulars
g.
(0.06)
25604.66
Add: Unallocated Assets
924.00
731.59
Less: Unallocated Liabilities
452.43
8.36
25922.03
26327.89

Capital Expenditure
a.
Dairy
2106.76
2674.61
b.
Retail
522.67
(1583.84)
c.
Agri
90.56
33.45
d.
Bakery
20.13
1325.39
e.
HFRL
f.
SPV
g.
2740.12
2449.61
Segment Capital Expenditure

Add: Unallocated Capital Expenditure
Total Capital Expenditure
5.
2009-2010
25450.46
Total Segment Capital Employed
4.
2010 -2011
0.00
0.00
2740.12
2449.61
Depreciation/Amortisation/Impairment
Segment Depreciation
a.
Dairy
1127.94
1059.92
b.
Retail
599.80
604.76
c.
Agri
212.35
257.88
d.
Bakery
53.88
41.70
e.
HFRL
f.
SPV
g.
Add: Unallocated Depreciation/Amortisation

Total Depreciation/ Amortisation
6.
Signicant Non Cash Expenditure
0.00
0.00
1993.98
1964.26
163.31
180.68
(excluding depreciation & amortisation)

2.
Borrowing Cost as per AS-16 : During the year an amount of Rs.62.53 lacs of borrowing cost on loans obtained from Banks has
been capitalised.
67

3.
Related Party disclosures as per AS-18:
Name of the re- N Bhuvaneswari

lated party
Heritage Finlease N Lokesh

Limited
Description of the Key Management

Relationship be- Peronnel (Vice
tween the parties Chairperson &
Manging Director)
Description of the a) Receiving of
Services
nature of Transacb) Rental agreetions
ment
Heritage Conpro
Limited
SKIL Raigam
Power (India) Ltd
A Key Manament Key Management Subsidiary

Personnel ExecuPersonnel of
tive Director
Heritage Foods
(India) Ltd is a Director of Heritage
Finlease Ltd.
Subsidiary
Subsidiary
Investment
Investment
Investment
Receiving of
Services
Heritage Foods
Retail Limited
Investment
a) Share Capital a) Share Capital

a) Share Capital a) Managerial
Volume of the a) Managerial
Remuneration
` 20 lakhs
Remuneration
` 11.50 lakhs
` 2.60 lakhs
transactions
eiof ` 42.00
b) Dividend Reof ` 40.20
ther as an amount
lakhs
lakhs
ceived ` 1.60
or as appropriate
b) Ofce rent
lakhs
proportion
of ` 31.29
lakhs paid by
Company
NIL
Managerial
Remuneration
was approved by
Shareholders
NIL
NIL
NIL
The amounts or NIL

appropriate proportions of outstanding
items
pertaining to related parties at
the Balance Sheet
date
NIL
NIL
NIL
NIL
NIL
Provisions
for NIL
doubtful
debts
due from such
parties at that date
and amounts written off or written
back in the period
in respect of debts
due from or to related parties
NIL
NIL
NIL
NIL
NIL
Provision for dim- NIL

inution in value of
Investments
NIL
NIL
NIL
NIL
NIL
Any other elements of the related party transactions in the

nancial
statements
68
Managerial
Remuneration
was approved by
Shareholders
a) Share Capital
` 65 lakhs

4.
DEFERRED TAX : In accordance with Accounting Standard ( AS - 22) Accounting for Taxes on Income deferred tax has been
calculated as under
As on
31.03.2011
`
Particulars
a)
As on
31.03.2010
`
Deferred tax liability is as under

Opening Deferred Tax Liability
166684699
134615302
13746760
32069397
Add: Deferred tax liability during the year on account of :

i)
On Depreciation
ii)
On Foreign Exchange Fluctuation gain / (loss)
Closing Deferred Tax Liability

b)
13746760
32069397
180431459
166684699
10646064
8871463
Deferred tax asset is as under

Opening Deferred Tax Asset
Add: Deferred Tax Asset during the year
i)
Unabsorbed Business loss / depreciation
ii)
Provision for Leave Encashment
Closing Deferred Tax Asset

Total Closing Deferred Tax liability / (asset) thereon (a-b)
1773619
1774601
1773619
1774601
12419683
10646064
168011776
156038635
5.
IMPAIRMENT OF ASSETS : In accordance with AS-28 the Company has identied and accounted for loss on assets impaired to the
extent of ` 41655/-
6.
Foreign Currency Transactions:

Particulars
A.
Earnings in foreign exchange

Export Sales on FOB basis
B.
21574419
TOTAL
21574419
2239886
2220018
TOTAL
2239886
2220018
Software Maintenance
Travel Expenditure
21076550
35925926
Hedging Premium
1117446
Others
299264
Dividend in foreign currency
21076550
37342636
CIF Value of Imports
Capital Goods
C.
2009 - 2010
`
2010 - 2011
`
Expenditure in foregin currency (Excluding Loan Repayment)
Interest
TOTAL
69

7.
QUANTITATIVE INFORMATION & CAPACITY (Dairy Division)

2010 - 2011
Particulars
Quantity
2009- 2010
Value
Quantity
(` In Lakhs)
a)
b)
c)
d)
e)
f)
70
Licenced Capacity:
(Lakh Litres of Milk)
Installed Capacity :
Milk ( Lakh Litres )
Ghee ( MT )
Skimmed Milk Powder ( MT )
Doodh Peda (MT)
Panner (MT)
Curd (MT)
Lassi (Lakh Litres)
Flavoured Milk (Lakh Litres)
(As certied by Management)
Actual Production:
Milk (Lakh Litres)
Cream
Ghee (MT)
Butter (MT)
Curd (MT)
Doodh Peda (MT)
Khoa (Kgs)
Panneer (in MT )
Lassi (Lakh Litres)
Dairy Whitener (MT)
Malai Laddu (MT)
Milk Cake (MT)
Production at Third Party
Finished Goods Purchases
Butter (MT)
Dairy Whitener (MT)
Cheese (MT)
Turnover (Including exports):
Milk (Lakh Litres)
Cream (MT)
Ghee (MT)
Skimmed Milk Powder - FG (MT)
Skimmed Milk Powder - RM (MT)
Butter (MT)
Curd (MT)
Doodh Peda (MT)
Khoa (KG)
Panneer (in MT )
Lassi ( Lakh Litres)
Value
(` In Lakhs)
N.A
N.A
4456.46
7519.00
2920.00
810.30
1478.24
33000.00
117.00
6.70
36.50
39.42
4489.34
5035.00
2920.00
591.30
1533.00
29403.00
117.00
6.70
15.19
37.00
3096.98
1268.68
2117.58
392.88
4294.66
12847.27
26.42
257.94
2334.50
18.83
472.81
4.19
15.72
75.30
19.19
39.05
1196.86
2824.50
1288.88
2193.86
324.57
3949.21
9933.98
20.05
224.67
372.70
16.71
293.58
1.64
8.51
155.45
7.26
30.70
416.43
6.70
297.70
65.90
2.04
9.42
288.41
13.35
19.23
2697.17
578.14
2013.03
4.61
406.38
2690.18
12457.49
25.46
214.40
2269.70
17.35
392.95
3.60
64753.66
794.64
4427.73
6.56
577.63
4506.59
4110.97
437.27
319.62
4.14
873.05
599.16
179.92
2474.98
944.93
2030.90
3.50
106.44
1584.49
9590.35
19.34
185.59
372.20
15.19
233.94
1.30
53583.35
1286.73
4344.30
4.70
142.87
2736.28
2615.08
276.68
249.00
0.69
685.32
301.68
62.77
2010 - 2011
Particulars
g)
h)
Quantity

Cheese (MT)
Malai Laddu (MT)
Milk Cake (MT)
Conversion Charges Earned
Tradable Goods
TOTAL
Opening Stock of Finished Goods:
Milk (Lakh Litres)
Cream (MT)
Ghee (MT)
Butter (MT)
Curd (MT)
Khoa (KG)
Doodh Peda (MT)
Panneer (MT )
Lassi (Lakh Litres)
Cheese (MT)
Malai Laddu (MT)
Milk Cake (MT)
Tradable Goods
TOTAL
Closing Stock of Finished Goods :
Milk (Lakh Litres)
Cream (MT)
Ghee (MT)
Butter (MT)
Curd (MT)
Doodh Peda (MT)
Khoa (KG)
Panneer (in MT )
Lassi (Lakh Litres)
Cheese (MT)
Malai Laddu (MT)
Milk Cake (MT)
Tradable Goods
TOTAL
(` In Lakhs)
12.70
88.59
10.40
14.59
29.98
1174.89
2009- 2010
Value
1011.78
117.60
27.84
33.73
51.53
975.75
168.56
554.75
84532.48
Quantity
(` In Lakhs)
6.97
149.37
9.42
5.68
23.98
398.83
Value
556.41
173.90
21.72
10.29
38.65
273.03
163.46
73.19
67600.10
20.53
15.71
144.91
54.06
754.75
122.05
0.19
0.50
1.81
1.32
3.29
0.05
0.41
15.65
5.96
0.13
0.25
9.40
414.41
18.80
304.60
70.06
1382.43
26.51
1.88
0.00
2.26
58.05
4.53
2.23
23.66
23.94
14.14
0.14
0.37
6.77
17.99
2372.78
19.71
64.70
79.20
42.33
666.43
90.49
0.12
1.21
1.27
1.47
0.02
0.09
340.98
73.76
134.04
50.18
929.39
15.82
1.07
1.39
49.31
1.25
0.43
5.41
0.07
1603.08
20.72
53.62
125.19
57.11
230.80
170.93
0.27
2.63
1.53
6.43
0.08
1.50
0.57
2.89
0.34
0.57
19.40
466.36
76.70
296.72
30.98
427.86
46.28
2.95
3.68
75.87
9.90
3.15
97.16
0.85
8.43
0.55
0.94
15.93
20.97
1585.28
20.53
15.71
144.91
54.06
754.75
122.05
0.19
1.81
0.50
1.32
3.29
0.05
0.41
15.65
5.96
0.13
0.25
9.40
414.41
18.80
304.60
70.06
1382.43
26.51
1.88
2.26
58.05
4.53
2.23
23.66
23.94
14.14
0.14
0.37
6.77
17.99
2372.80
71
2010 - 2011
Particulars
Quantity
2009- 2010
Value
Quantity
(` In Lakhs)
i)
J)
Inter Segment Transfers :

Milk (Lakh Litres)
Cream (MT)
Ghee (MT)
Butter (MT)
Curd (MT)
Doodh Peda (MT)
Panneer (MT)
Lassi (Lakh Litres)
Ice Cream ( Lakh Litres)
Dairy Whitener (MT)
Cheese (MT)
Malai Laddu (MT)
Milk Cake (MT)
Tradable Goods
Others
TOTAL
Work-in-Progress
27.92
0.16
80.06
1.30
20.25
260.96
0.50
37.44
1.09
55.56
0.23
0.99
0.07
3.67
1.35
6.38
713.88
0.27
189.55
4.49
33.31
119.47
15.56
64.49
50.42
115.31
24.85
117.61
6.44
9.75
14.89
11.89
34.97
1527.15
15.99
654.33
0.14
162.81
1.89
35.80
86.08
8.47
49.63
49.41
70.28
9.74
73.00
0.10
10.37
2.36
9.79
5.86
1230.07
14.12
372.54
0.24
39.08
2177.35
74.69
0.16
1.45
64.80
2.69
0.34
652.42
388.92
0.07
3.83
0.30
0.15
0.42
11.97
320.79
0.38
17.18
2544.55
51.12
0.14
1.04
0.00
2.26
0.22
392.79
499.30
0.08
3.70
0.18
0.10
0.09
8.20
3076.26
63620.13
6581.89
70202.02
2803.97
44046.85
5013.37
49060.22
27.08
0.21
85.19
3.00
16.98
266.21
0.72
41.27
1.03
74.03
0.49
1.59
1.79
4.24
8.33
Captive Consumption (Incl. Losses):

Milk (Lakh Litres)
Ghee (MT)
Butter (MT)
Curd (MT)
Doodh Peda (MT)
Khoa (KG)
Panneer (MT)
Cream (MT)
Skimmed Milk Powder
Lassi (Lakh Litres)
Dairy Whitener (MT)
Cheese (MT)
Malai Laddu (MT)
Milk Cake (MT)
Raw Materials consumed: (Dairy)
l)
Milk (Lakh Litres)
Other Products
TOTAL
CONSUMPTION OF MATERIALS
a) Raw Materials (Dairy)
i)
Indigenous
ii) Imported
b) Spare Parts & Consumables (Dairy)
i)
Indigenous
ii) Imported
Value
(` In Lakhs)
k)
8.
72
%
100.00
70202.02
%
100.00
49060.22
100.00
950.97
100.00
669.59

9.
(` In Lakhs)
MERCHANDISE DETAILS
Opening
Value
Particulars
Purchases
Value
Sales
Value
Closing Stock
Value
i)
Retail Division
FMCG- Food
401.97
5919.18
6801.45
493.04
FMCG- Non -Food
548.64
8081.07
9283.15
716.88
Agri in Units & Bulk
403.56
5942.59
6828.35
508.56
988.36
ii) Agri Division

Fruits and Vegetables
23.74
2548.85
3044.56
39.83
64.92
iii) Bakery Division

2.06
187.99
312.96
2.05
Work in Progress
0.37
Trable Goods
1.84
Note: The quantitative details of the Retail Division , Bakery Division and Agri Divisions are not provided as per the general exemption given by Ministry of Corporate Affairs vide letter Dt.08.02.2011
10. EARNINGS PER SHARE:
2010 - 2011
a)
b)
c)
Calculation of weighted average number of equity shares of ` 10/-each :

Number of Shares at the beginning of the year
Number of Equity shares outstanding at the end of the year
Weighted average number of equity shares outstanding during the year
Net Prot / (Loss) after tax
Basic and diluted Earnings per share of Rs.10 each (`)
11529500
11529500
11529500
11193027
0.97
2009 - 2010
11529500
11529500
11529500
55959009
4.85
11. MAXIMUM BALANCES HELD DURING THE YEAR WITH NON-SCHEDULED BANKS:
During the Year During the Year
Ended
Ended
31.03.2011
31.03.2010
Name of the Bank

The Prakasam Dist.Co-Op.Central Bank Ltd.,A.P., India
0.40
The Company is dealing with the above banks for making payments towards milk purchases.
12. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006
The names of the Micro, Small and Medium scale business enterprises to whom the Company owes money which is outstanding
for more than 45 days and the particulars of the outstanding are given below
A V Thomas & Co Ltd
Abhiruchi Foods
Amit Industries
Anant Products
Arasan Sweets & Snacks
Ari Amman Foods
Ashish Engineers
Ashmit Packaging
Asura Food Products
Atlanta Print Systems (P) Ltd
Avis Press Pvt Ltd
Balaji Foods
Balaji Namkeens
Balaji Poly Plast Pvt Ltd
Barrier Films Pvt Ltd
Beardsell Limited
Best Food Enterprises
Bliss Foods
Brite International
Deccan Crowns & Cans Pvt Ltd
Deejay Multi Packs Pvt Ltd

Delicious Cashew Company
Eesha Packaging
Finecab Wires & Cables Pvt Ltd
Godrej Tyson Foods Ltd
Hi-Tech Printers
India Sweet Company Pvt Ltd
Infragro Industries Ltd
J M Plastic Industries
Jaishree Distributors
Janiya Dairy Products
Lotus Chocolate Company Ltd
Makers Polylms Pvt Ltd
Mars Tech Engineering Services
Micro Packaging works
Om Sri Sai Foods
Paragan Paper Packaging(Pvt)
Ltd
Paran Polymers Pvt Ltd.,
Poly Korp Pvt Ltd
Pragathi Plastoform Pvt Ltd

Prakruthi Health Care
Precission Foils Pvt Ltd
Prince Multiplast Pvt Ltd
Print n Pack
R.N. Enterprises
Rachana Marketing
Raghavendra Offset Printers
Raj Packaging Industries Ltd
Rajaram And Company
Relish Snacks Pvt Ltd
S L Polypack Pvt Ltd
S S Laminates
Sai Hari Teja Multi Poly Films
Sai Krupa Packaging
Sathavahana Packaging PVt Ltd
Shalimar Foods
Sree Designs
Sree Venkatasai Packaging
Industries
Sree Venkateswara Cashew

Chikky
Sree Venkateswara Swamy Saw
Mill
Sri Pumps Manufacturing Co.,
Sri Saibaba Chemical Industries
Srivatsa Enterprises
Stick Lables India Pvt Ltd
Sudhir Pandya
Sudhir Pandya (Gokul Gruh
Udyog)
Sumit Packaging
SVS Polymers
Tasty World
Thai Food Products
Universal Enterprises
Venkateshwara Bitumen
73
(Amount in `)
Principle
amount outstanding as at
31/3/2011
7057729.28
Interest amount interest paid by the company in

outstanding as at terms of section 16 of the Act,
31/3/2011
2006 and the amount of the payment made beyond the appointed day during the year;
187984
Nil
Interest due and

payable on delayed payments
made during the
year
The amount of
interest accrued
and
remaining unpaid asat
31/3/2011.
187984
187984
Interest remaining due until

scuh date when the interest
dues are actually paid to the
small enterprise (even if paid in
succeeding years)
Nil
13. Statement Pursuant to Section 212 of the Companies Act, 1956 related to subsidiary Companies
Sl
No.
Heritage
Conpro
Limited
01.04.2010 to 01.04.2009 to 01.04.2010 to 20.05.2009 to 01.04.2010 to
31.03.2011
31.03.2010
31.03.2011
31.03.2010
31.03.2011
Heritage Foods
Retail Limited
Name of the Subsidiary
SKIL Raigam Power

(India) Limited
1.
Financial period of the Subsidiary
2.
Shares of the subsidiary held by the Company on

the above date
(a) Number
115000 Equity 50000 Equity 650000 Equity 650000 Equity 260000 Equity
Shares of
Shares of
Face Value
Shares of
Shares of
Shares of
`10/- each
` 10/- each
` 10/- each
`10/- each
` 10/- each
(b) Extent of Holding
99.48%
98.81%
92.86%
92.86%
51.59%
3.
Net aggregate amount of prots / (losses) of the

subsidiary for the above nancial period of the
subsidiary so far as they concern members of the
company
(a) dealt with in the accounts of the Company
for the period ended 31st March 2011 (Rupees in Lakhs)
(b) not dealt with in the accounts of the Company for the period ended 31st March 2011
(Rupees in Lakhs)
Net Aggregate amount of prots/(losses) of the
subsidiary since it became a subsidiary so far
as they concern members the company:
(a) dealt with in the accounts of the Company
(b) not dealt with in the accounts of the Company
4.
74
(0.33)
(0.15)
(0.37)
(8.63)
(1.37)
NIL
NIL
NIL
NIL
NIL
(0.33)
(0.15)
(0.37)
(8.63)
(1.37)
NIL
NIL
NIL
NIL
NIL

14.
15.
16.
17.
18.
Persuent to the exemption granted by the department of Company Affairs, Government of India, the parent company is publishing
the consolidated and standalone Financial statements of Heritage Foods (India) Limited and its subsidaries. The Financial statements
and auditors report of the Individual subsidaries are available for inspection by the share holders at the registered ofce. However,
the information in aggregate on capital, rererves, total assets, total liabilities, details of investments, turnover, prot before tax,
provision for taxiation and Prot after taxiation for each subsidary are as follows :
SKIL Raigam
Heritage Foods
Heritage
Name of the Subsidiary
Power (India)
Retail Limited
Conpro Limited
Limited
Funds Employed:
A. Capital
11.56
70.00
5.04
B. Reserves
C. Liabilities
Secured Loans
Unsecured Loans
Minority Interest
Total Liabilities
D. Total Funds Employed
11.56
70.00
5.04
Application of Funds:
E. Assets
Net Block(Including Capital WIP)
Investments
Net Current Assets
(0.06)
60.94
3.67
Miscellaneous Expenditure
(to the extent not written off)
Prot & Loss Account
11.62
9.06
1.37
Total Assets (Net)
11.56
70.00
5.04
F. Turnover
G. Prot/(Loss) before Taxes
(0.33)
(0.37)
(1.37)
H. Provision for Taxation
I.
Prot/ (Loss) after Taxes
(0.33)
(0.37)
(1.37)
J.
Proposed Dividend
There is no extraordinary items incurred by the company during the year 2010-11.
Paise is rounded off to the nearest Rupee.
The company has presented the nancial results as per schedule VI of Companies Act,1956 and in or form as near as thereto.
The items which are not applicable as per schedule VI are not disclosed.
Previous Year gures are regrouped wherever necessary.
Signature to Schedules 1 to 20

For Raju & Prasad
(Firm No. 003475S)
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
75
CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011
(pursuant to clause 32 of Listing Agreement)
`
`
Particulars
A.
B.
C.
Notes:
CASH FLOW FROM OPERATING ACTIVITIES

Net Prot /(Loss) before tax
Adjustment for
Depreciation
Interest
Prot on sale of Fixed Assets
Loss on sale of Fixed Assets / Impairment of Assets
Prior period Income /(expenses)
Subsidy transferred to P&L
Interest received
Dividend received
Operating Prot before Working Capital Changes
Adjustment for :
Inventories
Trade and Other Receivables
Trade Payables
Cash Generated from operations
Direct taxes paid (incl.taxation of earlier years) (net of refund)
(net of refund)
Net Cash (used) / generated for / from Operations
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets
Proceeds from sale of Fixed Assets
Investment in Subsidiary
Purchase of Investments
Subsidy received
Interest received
Dividend received
Net Cash used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Equity Shares
Borrowings from Banks and others( Net )
Interest paid
Dividend paid
Net Cash (Used)/ generated for/ from Financing Activities
Net increase /(decrease) in cash and cash equivalents
Cash and Cash equivalents as at 1st Apr, 2010
Cash and Cash equivalents as at 31st March,2011

`
`
33293844
106207192
199397718
159656853
(3622536)
5083360
(3503230)
(1009755)
(3844320)
(167035)
385284899
196425392
166746637
(5767924)
11226008
1465908
(2578965)
(3792848)
(144766)
469786635
102378135
(3583622)
39313608
523393019
(5482518)
(269190453)
(8849616)
144358266
336104832
(21630875)
314473957
517910501
(278244694)
13471385
(6500000)
(22200)
0
3792848
144766
(306677501)
8296132
(910000)
(49000)
2500000
3844320
167035
(267357896)
(292829015)
7000000
48526541
(166746637)
1154000
16090342
(159656853)
(24199930)
(166612440)
58469046
246349831
304818878
(111220096)
(64104035)
310453868
246349831
1. Previous years gures have been regrouped / reclassied wherever necessary to conform to the current years classication.
2. Cash and Cash equivalents as at 31st March, 2011 include restricted cash and bank balance amounting to ` 32136374/- (Previous year ` 11520892/-)

For Raju & Prasad
(Firm No. 003475S)
S Ranganathan
Partner
Membership No.22738
N.Bhuvaneswari
N. Lokesh
Executive Director
Date : May 19, 2011

Place : Hyderabad
A.Prabhakara Naidu
Umakanta Barik
Company Secretary
76

ATTENDANCE SLIP
Regd.Ofce: 6-3-541/C, Panjagutta, Hyderabad - 500 082

(Please ll this attendance slip and hand it over at the entrance of the Meeting Hall)
DP ID*
Folio Number
Client ID*
Name (in BLOCK letters)
I certify that I am a registered shareholder/proxy for the registered shareholder of the Company. I hereby record my presence at the
19th Annual General Meeting of the Company to be held at National Institute for Micro, Small And Medium Enterprises, Yousufguda,
Hyderabad-45 on Thursday, the 29th September, 2011 at 11 a.m.
..........................................................................................
Signature of the Shareholder /Authorized Representative/Proxy **
* Applicable for investors holding shares in electronic form
No Gifts
will be
given
** Strike out whichever is not applicable

PROXY FORM
Regd.Ofce: 6-3-541/C, Panjagutta, Hyderabad - 500 082

DP ID*
Folio Number
Client ID*
I/we _______________________________________ resident(s) of ________________________ being a member/members of Heritage

Foods (India) Limited, hereby appoint Ms./Mr. ____________________________________________________ of _________________
_______________________________ or failing her/him Ms./Mr. _____________________________________ of __________________
________________________ as my/our proxy to attend and vote for me/us and on my/our behalf for or against any resolution at the
19th Annual General Meeting of the Company to be held on Thursday, the 29th September, 2011 at 11 a.m. and at any adjournment
thereof.
Afx a
Revenue
Stamp
Signed this ______________ day of ________________, 2011.
Signature of the First/ Sole holder
* Applicable for investors holding shares in electronic form

Note:
A Proxy need not be a member. The Proxy in order to be effective should be duly stamped, completed, signed and deposited
at the Registered Ofce of the Company not less than 48 HOURS before the commencement of the meeting.
77
78
NOTES
79
NOTES
80
Division wise Revenue ( `.in Crores)

Bakery 3.13
Agri 31.09
Retail 239.01
Dairy 860.60
Division Wise Revenue

Vs. Capital Employed
Division Wise Revenue

FY2010-11 Vs.2009-10
( `.in Crores)
( `.in Crores)
Unallocated
2.75
3.13
Bakery
4.71
12.21
3.13
Bakery
30.25
31.09
Agri
37.00
31.09
Agri
213.49
Retail
58.81
Retail
239.01
Dairy
688.30
Dairy
239.01
145.89
860.60
860.60
0
0
100 200 300 400 500 600 700 800 900
100 200 300 400 500 600 700 800 900

2009-10
2010-11
Product wise turnover to the % of the total

turnover of the Dairy Division
Capital Employed
Revenue
Milk - 76.07%
Cream - 0.92%
Ghee - 5.37%
S M P - 0.68%
Butter - 5.28%
Curd - 4.92%
Butter Milk - 0.53%
Flavoured Milk - 1.07%
Paneer - 0.83%
Ice Cream - 1.31%
others - 3.02%
Driving Growth Spreading Prosperity

NET WORTH ( ` IN CRORES)
TOTAL INCOME ( ` IN CRORES)

1200
140
1101.25
1000
799.26
100
800
628.16
80
600
80.77
86.87
86.53
2009-10
2010-11
69.30
60
347.56
400
115.70
120
903.31
40
200
10
2006-07 2007-08 2008-09 2009-10 2010-11
2006-07
2007-08
2008-09
OPERATING PROFIT ( ` IN CRORES)

50
47.03
39.26
40
30
23.66
20
12.17
10
3.43
0
2006-07
2007-08
2008-09 2009-10
GROSS FIXED ASSETS ( ` IN CRORES)

350
RESERVES & SURPLUS ( ` IN CRORES)
317.50
294.24
300
120
104.17
264.47
100
250
206.45
200
150
2010-11
128.88
60
100
40
50
20
75.35
80
75.01
69.24
59.31
0
2006-07 2007-08 2008-09 2009-10 2010-11
2006-07 2007-08 2008-09 2009-10 2010-11
Milk
Curd
Toned Double Cow

Full Cream Slim Milk
Curd Pouch
Full Cream
Skimmed Milk Powder
Dairy Whitener
Sweet
Buffalo Ghee
Cow Ghee
Savories
Butter Milk Pouch Jeera Butter Milk

Garlic Butter Milk
Mango
Eggs
Butter
Ice Creams
Water
Tea
Cups
Cones
Sugar
Balls
Atta
Pickle
Fruits & Vegetables
Ketchup
Jam
Rice
Fryums
Spices
(powder)
p
p
Osmania Coconut
Butter
Rice Papad Wheat Rings

Onion Rings
Pulses
TutiFruit
Dhaniya
Chilli
Turmeric
Red Chilli
Hand Wash Floral Lime

Agarbathi Lavender Sandalwood
Channa Dal Moong Dal

Tur Dal Urad Dal
Other Products :
Tissue Maize Flakes Special Curd Chillies Rice Muruku
Vadiam Alu Chips Garlic Rings Sago Flakes
Sago Coins Sago Papad Salt Rings Japan Carkers Fry Puffs
Bomby Pepper Papad Baby Papad Tomato Vadiam Soya Chunks
Soya Granules Rice Chutta Fry Salto Rings
Face
Sabduna
Dhaniya Jeera Mustard Almond

Badam Cashew Kismish
Green Chilli
Incense Sticks &

Liquid Hand wash
Cookies
Bread
Slim Milk
Chilli Sauce
Dryy Fruits
Cheese
Family Pack
Allu Bhujia Bhujia Sev

Taste Nuts Eggs
Spice
p
TonedMilk
Strawbery
Doodh Peda Milk Cake Malai laddu

Soanpapdi Sunundalu
Honey
Paneer
Sweets
Ghee
Toned Curd
Curd Bulk
Lassi
Dairy Whitener /
Skimmed Milk Power
UHT Milk (Tetra Pack)
Flavoured Milk
Butter Milk
We also Accept special Orders

For supplies Contact Heritage Parlour Franchisee..
TOLL FREE NO. : 1-800-425-2931

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19

HERITAGE FOODS (INDIA) LIMITED

The growing economic strength of modern India, along

During the year under reference the gross turnover was

During the tough economic environment, we focused

Crores, when compared to ` 5.72 crores prot of the

our efforts on gaining the knowledge and capabilities

to build tomorrows enterprises. So, we are working to

We are happy to announce a dividend of ` 1.20 per equity

sector during the year. This is the second time we have

We respect and value our customers. Our employees

received the prize from Govt. of India in a consecutive

are our value creators whose efforts and bonds, we

period of last three years. Your Company was able to

cherish. We create Best work environment, in which our

demonstrate the full potential of its assets, management

employees are motivated to actualize their full potential.

capability high quality of products and access to Indian

We provide the required support to them.

markets by achieving the turnover, gross and net prots.

I am grateful to the Board of Directors for their unstinted

consumers and provide an ideal platform to showcase

Interest and Tax (EBDIT)

Earnings before Depreciation,

Provision for Taxation

Prot /(Loss) after Tax

Cash Prot/ (Loss)

Equity Dividend (%)

(Including Tax on Dividend)

Equity Share Capital

Reserves and Surplus

Gross Fixed Assets

Net Fixed Assets

Book Value per share - `.

Debt* : Equity Ratio

* Long Term Debt

19th Annual Report 2010-11

Management Discussion and Analysis

Report on Corporate Governance

Ofce and Plant Locations

Corporate Governance Certications

Prot and Loss Account

Signicant Accounting Policies

Balance Sheet Abstract

Cash Flow Statement

Secretarial Auditors' Report

Consolidated Financial Statements

Attendance Slip and Proxy Form

Important Communication to Members

Bring Home Health and Happiness

Non Executive Independent Chairman

Non Executive Director

Vice Chairperson & Managing Director

19th Annual Report 2010-11

Sr.GM- Finance & Accounts

Sri K Durga Prasad Rao

Chief Operating Ofcer-Dairy Division

Sri S Jagdish Krishnan