AGRI MARINE EXPORTS LIMITED
ANNUAL REPORT 2004-2005
We have audited the attached balance sheet of Agri marine Exports Limited
as at March 31, 2005 and also the profit and loss account and cash flow
statement for the year ended on the date annexed thereto. These financial
statements are the responsibility of the company's management. Our
responsibility is to express an opinion on these financial statements based
on our audit.
We conduced our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and the disclosures in the financial
statements. An audit also includes assessing the accounting principals used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by the
Central Government of India in terms of sub section (4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters specified
in paragraph 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report that;
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those books;
(iii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion, the balance sheet, profit and loss account and cash
flow statement (read in conjunction with the Notes and Schedule attached
thereto) dealt with by this report comply with the accounting standards
referred to in subsection (3C) of Section 211 of the Companies Act, 1956;
(v) On the basis of written representations received from the, directors,
as on 31st March, 2005, and taken on record by the board of Directors, we
report that none of the directors is disqualified as on 31st March, 2005
from being appointed as a director in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with the notes thereon
Note No. 6 regarding accounting policy for foreign currency transactions
Note No. 4&5 regarding non-provision for bad and doubtful debts &
confirmation of balances
Note No. 7 regarding non-provision of Interest on loans from banks
Note No 8 regarding capitalization of interest pertaining to Term Loan from
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.
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2005;
(b) in the case of the profit and loss account, of the loss for the year
ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the year
ended on that date.
For Vivekanandan Associates
24th August 2005 S. DEHALEESAN
Mem. No. 27312
ANNEXURE TO THE AUDITORS' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS' REPORT TO THE MEMBERS
ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2005.
1. (a) The Fixed Assets register maintained by the company has to be
updated to show full particulars including quantitative details and
situation of fixed assets.
(b) We were informed that the management at reasonable intervals has
physically verified the Fixed Assets and discrepancies noticed on such
verification have been given effect in accounts.
(c) In our opinion, the company has not disposed off a substantial part of
fixed assets during the year and therefore paragraph 4(i) (c) of the
companies (Auditor's Report) Order, 2003 (hereinafter referred to as the
Order) is not applicable.
2. (a) The Company handled no raw materials or finished goods during the
year. Hence the compliance regarding physical verification of inventories,
its frequency of verification is not commented upon.
(b) No physical verification of inventories was conducted since the Company
did not carry any raw materials, finished goods during the year. Hence
commenting on the on reasonableness and adequacy in relation to the size of
the company and the nature of its business does not arise.
(c) As said earlier, the Company handled no raw materials, finished goods
during the year. However, the company is maintaining proper, records of
inventory of consumables used for processing and no material discrepancies
have been noticed on physical verification of inventories as compared to
the book records.
3. The company has not taken any loans secured or unsecured, to/from
companies, firms or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956. However, the Company has granted
unsecured loans of Rs. 11,80,751/- to firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 being a
company under the same management as per section 370 (1B) of the Companies
Act, 1956 and the terms and conditions are not prima facie prejudicial to
the interest of the company.
4. In our opinion and according to the information and explanation given to
us the internal control procedures are not commensurate with the size of
the company and nature of its business for purchase of raw material
including components. plant and machinery equipment and other assets and
for the sale of goods and services.
5. (a) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so
(b) In our opinion and according to the information and explanations given
to us, there are no transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of the
Companies Act, 1956 that exceed the value of rupees five lakhs in respect
of any party during the year.
6. In our opinion and according to the information and explanations given
to us, as the company has not accepted deposits from the public paragraph
4(i) of the Order is not applicable.
7. Although the company,has no formal internal audit system as such, its
internal control procedures ensure reasonable internal checking for
financial and other records and this needs to be strengthened.
8. The Central Government has not prescribed maintenance of cost records
under Section 209 (1)(d) of the Companies Act, 1956.
9. (a) According to the records, information and explanations given to us,
the Company is not regular in depositing with appropriate authorities
undisputed amount of provident, fund, employees' state insurance. However,
there were no arrears of dues to provident fund or employees' state
insurance remaining unpaid on the date of this report. There are no
undisputed amounts of sales-tax, excise duty and other statutory dues
applicable to it that were outstanding as on 31st March, 2005 for a period
of more than six months from the date they become payable except for
Rs.1.26,587/- towards Wealth Tax for the Assessment years 1996-97 to
2001-02 and Income tax Rs. 10,71,361/- (including Rs.9,09,241 towards
interest) for the Assessment year 1996-97.
(b) According to the information and explanation given to us the following
are the details of disputed Sales Tax, Excise Duty and Employees State
Insurance dues that have not been deposited with the concerned authorities.
Name of the Forum where Unpaid Amount
Statutory dues the dispute is in Rs.
SALES TAX Sales Tax Tribunal 3,89.067
INCOME TAX Income Tax Appellate
of Income Tax
10. The Company's accumulated losses as on 31st March 2005 were
Rs.11,56,20,880/- as against the Networth of Rs. 6,08,82,135/-. The Company
has not incurred cash losses in the current financial year but has incurred
cash loses during 2002-03, the immediately preceding financial year. The
Company has been declared as sick industrial undertaking under the Sick
Industrial Companies (Special Provisions) Act, 1985.
11. In our opinion and according to the information and explanations given
to us, the company has defaulted in repayment of dues to banks and
financial institutions as listed below.
Bank / Financial Period of
Institution default Amount (Rs.)
Indian Bank Since March 1997 7,37,21,809
Corporation Since April 1997 1,35,38,531
The above sums are as shown in the Books of accounts and do not include
interest payable to the Financial. Institutions shown elsewhere as deferred
liability (Rs. 1,35,77,143) and unrecorded interest of Rs. 7,06,28,705/-
(as reported in Note 7). The Company has arrived at `One Time Settlement'
with Industrial Development Bank of India and has remitted the contracted
sum. Therefore, the default in respect of such loan is not mentioned here.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities and,
therefore paragraph 4(xii) of the Order is not applicable.
13. The provisions of any special statute applicable to chit fund and
nidhi/mutual, benefit fund/society are not applicable to the company and
therefore paragraph 4 (xiii) of the Order is not applicable.
14. The company is not dealing or trading in shares, securities, debentures
and other investments and therefore paragraph 4 (xiv) of the Order is not
15. According to the information and explanation given to us, the Company
has not given any guarantee for loans taken by other from banks or
financial institutions and therefore paragraph 4 (xv) of the Order is not
16. The company has not availed term loans during the year.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our opinion,
short term funds of Rs.15,341/- has been used for fixed assets (long term
investments) no long term-funds were raised for short term investments.
18. The company has not made any preferential allotment of shares during
the year and therefore paragraph 4 (xviii) of the Order is not applicable.
19. The company has not issued any debentures during the year and therefore
paragraph 4 (xix) of the Order is not applicable.
20. The company has not raised arty money by way of public issues during
the year and therefore paragraph 4 (xx) of the Order is not applicable.
21. Based upon the audit procedures performed and as per the information
and explanations given to us by the management, we report that no fraud on
or by the company has been reported or noticed during the year.
For Vivekanandan Associates
24th August 2005 S. DEHALEESAN
Mem. No. 27312